Responsible Care
As a company that handles chemical substances, Nissan Chemical Group has a great responsibility to society. In order tofulfill this responsibility, we engage in Responsible Care (RC) activities. RC activities aim to voluntarily ensure environment, health and safety throughout the entire process from development of chemicals to manufacturing, distribution, use,
final consumption, disposal and recycling. These activities also serve as a form of communication with society throughthe announcement of their results.

Volume of industrial waste generated*50.0

Responsible Care Management20.0Mitigation of Climate Change and Environmental Conservation

Environment &Safety Committee(Report, annual plan development)

Changes in GHG emissions(1,000 tons-CO2e)

PLAN
Responsible Care CodeACT
Corrective actions
Annual results
report0(1,000 tons)

Nissan Chemical actively works to protect the environment, including taking efforts to reduce greenhouse gas (GHG) emissions,and have been promoting initiatives to mitigate climate change
which include energy savings, fuel conversion, and dinitrogenmonoxide emissions reduction. With regard to reducing our GHGemissions (Scope 1 and 2), we have set a FY2027 target of “reducing GHG emissions by at least 30% from FY2018 level” aiming forachievement of carbon neutrality in 2050.
In FY2022, although GHG emissions increased due to nitricacid plant trouble, etc., GHG emissions decreased from FY2021 asa result of melamine production shutdown and boiler fuel conversion at the Onoda Plant.

* International standard for environmental management system. All of our plants have acquired ISO 14001 third
party certification.

Environmental Protection /Safety and Disaster Prevention/
Occupational Safety and Health /Logistics Safety /Chemicals and Products Safety /Dialogue with Society

Implementationin accordancewith annual plan

400300

DO

△30％
114
19200
100

CHECK
Internal Audit

0230

2018

1009091

1825219

203

216

2020

2021

2019

29

CarbonNeutrality

RC audits are activities for checking RC
activities at each plant, laboratory andaffiliate. They are carried out by Environment, Safety & Quality Assurance
Department in accordance with the RC
audit guidelines. In these audits, the auditors check whether RC activities, aswell as internal audits and patrols, are carried out appropriately
and the PDCA cycle is implemented steadily, and complianceabout environment, health and safety (EHS) at each site. Environment, Safety & Quality Assurance Department clarifies visible orpotential problems related to EHS and promotes improvements inresponse after clarifying the problems, if any.
In FY2022, total of 27 RC audits were conducted for ourplants, research laboratories and affiliates.

2538.0

38.2

39.6

2018

2019

2020

2021

2022

181

2022

(FY)

Recycled volume/Final disposal volume*■Recycled volume ■Final disposal volume

10.0
8.0
6.0
4.0

8.7

0.902018(1,000 tons)

8.1

7.1

6.4

5.8

2.0

1.2

1.1

2019

Saitama Plant Bio-Garden*

1.2* A coined word combining biotope and garden.

2021

2020

5.72022(FY)

pose of “creating spaces with biodiversity, mainly waterfrontand community-based forests that are suitable to inhabit forplants and animals, to provide places where employees of theplant and local residents can relax”. Since then, this Bio-Park
has been operated by Toyama Plant and in April 2023, the “TulipViewing Mini Concert” was held at the Park to commemorate
the 15th anniversary of its opening. Approximately 100 people, including not only our employees but also local residents, retired
employees of the Nissan Chemical Toyama Plant, and their families, who cooperate with maintenance and management of thepark on a daily basis, visited the venue. Local brass bands also
performed and the concert was great success.

* Waste soil from plants was added to calculations from FY2021

FY2027 recycling rate target of “50%” by promoting recycling efforts at plants and refining the data at research laboratories. Going forward, we will continue to promote initiatives such as recycling.

254

Amount of plastic
waste

Recycling rate ofplastic waste

FY2021795t

44%FY2022830t

55%

Net Zero2027 Target 2050 Target(FY)

Efforts to Reduce Industrial Waste

Responsible Care Management
Web https://www.nissanchem.co.jp/eng/csr_info/responsible_care/management.html

35.0

121

■Dinitrogen monoxide (N2O) ■CO2 emissions from non-energy use■CO2 emissions from energy use

RC Audits

34.0

10.0

Efforts for Reducing Greenhouse Gas (GHG) Emissions

We have been engaged in RC activities since 1992. To achieve ourRC mid-term plan (2022-2027), established in FY2022, we manage
targets and make continuous improvements through PDCA (Plan,Do, Check, Act) in our RC management system based on ISO14001*
throughout the Company. In addition, we have established the Environment & Safety Committee, which is chaired by the officer responsible for the Environment, Safety & Quality Assurance Department, as the organization in charge of promoting RC activities,
and hold its annual meeting. The contents of the discussion, including targets for the next fiscal year, are reported to the management meeting. After approved at the management meeting,the contents are resolved at the Board of Directors.

30.0

Sustainability

System40.0

Through our RC activities, we further promote the 3Rs (Reduce,Reuse, Recycle) and strive to reduce industrial waste emissions,while at the same time thoroughly implementing control measures to ensure the proper disposal of waste. In FY2022, the volume of industrial waste generated and the recycled volume increased slightly compared to FY2021, and the final disposal
volume increased significantly. This is because the waste soil generated from construction work at plants was disposed as industrial waste.
In line with the enforcement of the Act on Promotion of Resource Circulation for Plastics (enforcement date: April 1, 2022),
we have started counting the amount and recycling rate of plastic waste since FY2021. In FY2022, the amount of plastic waste increased slightly compared to FY2021. However, we achieved theBiodiversity Conservation
Our corporate philosophy is “Contribute to the protection of theglobal environment and the existence/development of humanity,
offering the value sought by society”. We at the Nissan ChemicalGroup engage in business activities that take into account biodiversity and help protect the global environment. We have set the“establish and operate Bio-Park at Nissan Chemicalʼs plants” as atarget for FY2027, and are promoting biodiversity initiatives. In
FY2022, a new Bio-Garden was completed at the Saitama Plant. It
is a garden that provides a habitat for living things in a form similar to the nature of a satoyama (woodland close to the living area).
We also established the “Nissan Bio-Park Nishi-Hongo” in2008 with the theme of returning to the lost nature, and the purTulip Viewing Mini Concert at Nissan Bio-Park Nishi-Hongo

Web itigation of Climate ChangeMhttps://www.nissanchem.co.jp/eng/csr_info/responsible_care/environment/reduction.html
Reduction of Industrial Waste and Pollutant Emissions
https://www.nissanchem.co.jp/eng/csr_info/responsible_care/environment/management.html
Water Resources Conservation
https://www.nissanchem.co.jp/eng/csr_info/responsible_care/environment/effective.html
Biodiversity Conservation
https://www.nissanchem.co.jp/eng/csr_info/responsible_care/conservation.html

Nissan Chemical Corporation73

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Nissan Chemical Corporation74Integrated Report 2023

Improvement of Products Quality

Responsible Care

Safety and Disaster Prevention

Our Quality Policy is “Providing products and services that satisfy customers”, and based on this policy, we set mid-term
quality targets and work on quality activities.

Lost-time injury frequency rate*
1.48
1.5
1.2

1.11

0.88 0.85 0.82

0.9

0.81

Nissan Chemical
Chemical industry

0.90 0.94 0.93

0.88

1.10

0.37

0.3

0.36 0.37 0.37

0.02011 1213

0.37 0.37
0.00

0.00
1415161718192021 2022 (Year)* Number of deaths and injuries due to occupational accidents per million actual working hours

Web

Promotion of Safety and Disaster Prevention, and Occupational Safety andHealthhttps://www.nissanchem.co.jp/eng/csr_info/responsible_care/safety.html
Management of Chemical Substances
https://www.nissanchem.co.jp/eng/csr_info/responsible_care/chemical.html

Management of Chemical Substances andProducts Safety
Risk Assessment in Products Lifecycle
We conduct a risk assessment (prior assessment) at each stepin handling chemical products, such as R&D, manufacture, salesand revision. The risk assessment is performed based on legal
and regulatory information, safety data evaluated by internal orexternal laboratories or obtained from SDS (Safety Data Sheet)for raw materials and literature, and data on physicochemical
properties and work environment conditions. Based on the results of risk assessment, we take appropriate measures; i.e., legal and regulatory compliance, improving facilities to reduce
worker exposure at manufacturing sites, improvement of operation procedures, clarification and documentation of the procedures, and the training, etc. Moreover, these results are reported to all the relevant people in the Company.
In addition, we also participate in Long-range Research Initiative, an international initiative promoted by Japan ChemicalIndustry Association (JCIA) that seeks to provide long-term support for research on the impact of chemicals on human healthand the environment. The activities we engage in aim to advanceresearch on the assessment of risks to human health and theenvironment.

Disaster drills (Toyama Plant)

Promotion of Occupational Safety and HealthThrough our RC management system, we prevent occupational
accidents, promote the good health of staff, and build a comfortable workplace environment in our efforts to improve the levelof safety and health at each business site. In addition, we carryout various drills and training sessions annually with the aim ofensuring safety, achieving stable operations, and improving ourprocess safety capability to make us ready to respond to emergencies or accidents in a reliable manner.
In 2022, there were 3 accidents requiring staff time off fromwork, and 4 accidents not requiring staff time off from work
were occurred. We will continue aiming to achieve zero accident
by promoting risk assessment, prior-work risk predictions, risk
predictions training, HHK*1, 5S*2, and appropriate wearing of protective equipment and by raising awareness of safety throughthe safety meeting and the occupational safety newspapers.

Management of reagentsand synthetic compounds

Disposal

Products LifecycleUse*1 HHK stands for Hiyari-Hatto (near miss incident) and Kigakari (alarming). It means the discovery of nearmiss
incidents that are not linked directly to serious injuries or accidents but could have resulted in such injuries
or accidents.

External communication*2 5S stands for Seiri, Seiton, Seisou, Seiketsu, Shitsuke. These words mean “Sort” “Set” “Shine” “Standardize”“Sustain” respectively

Response to revision of laws and regulations
Laws and regulations revision information service●Manufacture
Sales

Prevention of Quality Fraud and Data Tampering
In FY2020, we established and began implementing the guidelines aimed to prevent fraud and tampering regarding qualitycontrol. In FY2022, we confirmed the conformity of the contents
of notifications from authorities such as authorization documents, customer requests, and manufacturing records. No fraud
and inconsistency were found as a result.

Indicators

Fostering Quality Culture

Since the number of complaints increased in FY2020, we conducted improvement activities with narrowed down priorities,
resulting in a slight decrease in the number of complaints since
FY2021. The percentage of complaints attributable to contract
logistics suppliers, such as packaging and delivery, remains
high.The number of serious complaints was in a declining trendwith 3 cases in FY2020, 2 cases in FY2021, and 1 case in FY2022.
We aim to achieve zero cases in FY2023.

In 2021, we established the Quality Behavior Model aiming to enhance the quality of our employeesʼ behavior, and disseminatedit as our top message.
In FY2022, we conducted in-house training on “Non-conformity on Quality” for whole company, and a training on “Changecontrol” with the aim of reducing quality risks due to change forour all business departments and plants. We will continue to develop company-wide in-house training on quality compliance.

The number of complaint cases

2520■FY2020■FY2021■FY2022

Logistics and Supplier Management
We aim for total quality assurance, considering not only the quality of the manufactured products themselves, but also the packaging materials, transportation, attached documents, anddemonstration of function at the customers, as part of our products.
Since a high percentage of our abnormal quality attributableto packaging and transportation work process, we share our improvement targets with contract logistics suppliers and strive
for improvement. In addition, we have established internal
guidelines for suppliers including contract manufacturers, andconduct evaluations through quality audits to maintain appropriate management.

15105Function or Foreign-substance
Ingredient

Packaging

Delivery* Complaints with identical details are counted as one caseWastemanagementsystem

Raw materials and products
management system●The quality assurance office at each plant, which is independent
from the manufacturing divisions, inspect the quality of eachproduct. In addition, the quality assurance division at the head
office, which oversees the company-wide quality assurance activities, conducts quality audits at each plant and affiliated company. To promote quality assurance activities on a company-wide basis, the Quality Assurance Committee meets regularly
to report the results of quality activities, the results of quality
audits and the status of improvements, and complaints and status of corrective actions. The committee discusses the nextyearʼs action policy of quality assurance, etc. The reports andcontents of the discussions are reported to the Board of Directors, and quality management systems are in place under management review.

0●Development

our products and to take necessary corrective action. Customer
feedback is promptly communicated to each division to enable
response to customers and quality improvements.
Since April 2023, we have operated the new company-wide
electronic quality-information system that centrally manages
raw materials abnormalities, all internal quality problems andcorrective & preventive actions, supplier information and quality-related documents, as well as complaint-related information.

System(Cases)

Reagents management system●Synthetic compounds database●Laws and regulations check system●

Research[Quality Targets] - “Elimination of Quality Risks” with thorough governance- “Logistics and Supplier Management” to maximize quality performance- “ Visualization of Quality Management and Quality Activities” that leads to enhancement of corporate value

0.73

0.81

0.76

0.6

1.07

1.16Activities
Internal Network of Product-quality Intelligence
We have established an internal network to promptly collect andevaluate customer feedback (complaint information) regarding

Environmental data management system
Safety data sheet creation and management system●●

Improvement of Products Quality
Web https://www.nissanchem.co.jp/eng/csr_info/communication/customer.html

Nissan Chemical Corporation

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Nissan Chemical Corporation

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Sustainability

We carry out risk assessment, process risk predictions, and facility risk predictions by prior assessment for manufacture withthe aim of ensuring safety, achieving stable operations, and improving our process safety capability. As a result, there were noexplosions or other accidents in FY2022, but a small fire brokeout at the Toyama Plant. The accident occurred due to the leakage of the heating medium used in manufacturing because of afailure to close the valve. The temperature of the heating medium exceeded its ignition point because of added heat generated
by the oxidation of it, resulting in a small fire. Employees immediately put out the fire, and there was no human and property
damage, and no environmental and neighborhood impact. We
are taking thorough measures to prevent such a small fire fromhappening again, and deploying measures to all plants and laboratories. Our plants, laboratories, and affiliates carry out various
drills and training sessions such as earthquake fire prevention
drill every year, and are designed to make us ready to respondto emergencies or accidents in a speedy and reliable manner.