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

S 0040 IC
Printed in Japan
Published in November 2013 by Denki Kagaku Kogyo Kabushiki Kaisha

DENKI KAGAKU KOGYO KABUSHIKI KAISHA CSR REPORT 2013

http://www.denka.co.jp/eng

CSR Report 2013

CONTENTS

CSR Vision/DENKA100 Corporate Philosophy .............. 2Contents ...................................................................... 3

Our CSR Vision

To Remain a Company That Deserves Trust

Society

4~13

Pursuing Lasting Trust as an
Outstanding Manufacturer

To Our Stakeholders ......................................................4

Occupational and product safety/
Human rights/Social contribution

Reports on Accidents at the Omi and Chiba Plants ......7

Toward its CSR vision, “pursuing lasting trust as an outstanding
manufacturer,” the DENKA Group promotes CSR activities from the

Corporate Governance ..................................................8

Pursuing Lasting Trust as an Outstanding Manufacturer

DENKA Group’s CSR .................................................. 10

economic, social and environmental perspectives.

Securing Worksite Safety ........................................... 12

The Group has established the DENKA Group Guidelines toguide its CSR activities.*

Environment

Economy* The DENKA Group Guidelines are presented on page 1 of the DENKA CSR Report2013 References (PDF format) posted on our website.

Disaster prevention

Corporate governance

Environmental preservation

Returns to shareholders

Green innovation

Information disclosure
CSR procurement

Sustainability for the Next 100 Years

14~25
Fiscal 2012 Overview ................................................ 14
Renewing DENKA100 Growth Strategies .................. 15
Our R&D Activities ...................................................... 16
DENKA’s Four New Divisions ...................................... 17

Continuously Enhancing Technologies to Create Products with
Value and Thereby Supporting Social Development

Environmental Management ...................................... 18
Initiatives to Secure Our Electricity Supply ................ 22
Recycling Business in Cement Production ................ 24

With Our Stakeholders

26~35

DENKA100 Corporate Philosophy
Initiatives with Employees .......................................... 26

Creating Valuable Things That

Initiatives at Supply Chain .......................................... 30

Benefit Society from Resources

Initiatives with Society ................................................ 32with Advanced Technologies

Communication with Shareholders and

To realize our CSR vision, we established the above corporate

Investors and Public Relations ................................. 34

philosophy, implementing the DENKA100 Companywide initiative

Consolidated Financial Highlights .............................. 35

encompassing six pillars,* namely: “The expansion of business
operations”; “Human resource development”; “R&D Promotion”;
the “GCP: Good Company Program”; “Promote further innovation”;
and “CSR: Corporate Social Responsibility.” The initiative looks toContents of the web-based DENKA CSR Report 2013 References

Third-Party Opinion .................................................... 36

achieve sustainable growth beyond fiscal 2015—the year we will

The DENKA Group Guidelines .................................................................................................... 1
Fiscal 2012 Responsible Care Activities and Targets for Fiscal 2013 ................................ 2
Information Security/System Administration/Online Information Management ................ 3
Product Safety Management System ....................................................................................... 4
Occupational Safety and Health Management System ......................................................... 6
ISO 14001 and 9001 Management Systems ......................................................................... 7
DENKA Group Products and Technologies That Contribute to Society ............................... 8
Utilization of Environment- and Energy-Related Subsidies/Life Cycle Assessment (LCA) Initiatives/Environmental Accounting ............................... 12
Consolidated Financial Statements ........................................................................................ 14
Global Reporting Initiative (GRI) Content Index ..................................................................... 16

About DENKA ............................................................. 38

mark the centennial of our founding.
We are committed to maintaining an earnest attitude and sincere conduct in our dealings, both of which have been our essential
traditions as a manufacturer. By fulfilling our roles and responsibility as a member of society, we will endeavor to garner its trust,
thereby achieving sustainable growth over the next 100 years.
* Please see page 10 for the details of six pillars of the DENKA100 initiative.

2

DENKA CSR REPORT 2013

Editorial Policy ............................................................ 39

DENKA CSR REPORT 20133

To Our Stakeholders

To Remain a Company That Deserves Trust

Report on Accidents at Our Plants

going back to the basics of safe operations, thoroughly

research initiatives. Examples of such products include aluminaFirst of all, I would like to express my sincere gratitude to

redeveloping our plant maintenance techniques and safety

fiber for vehicle exhaust gas purification; acetylene black for use

our stakeholders for their continued support. Herein, it is my

management methods. Simultaneously, we are working toin secondary lithium ion batteries (LiBs); special cement

pleasure to present the DENKA CSR Report 2013, which

cultivate a corporate culture that is conducive toadditives to meet infrastructure demand in emerging Asiansummarizes initiatives undertaken in fiscal 2012, ended Marchcommunications, facilitating mutual support among all plant

countries; and the diagnostic reagents and joint function

31, 2013, with the aim of fulfilling DENKA’s Corporate Social

staff to ensure the safety of day-to-day operations.

improvers to accommodate expanding healthcare needs.
With the aim of facilitating these growth strategies, our April

Responsibility (CSR).

2013 organizational revisions included the integration of six

we must report that two major accidents occurred at our plants.

Starting a New Phase of DENKA100 to
Accommodate a Changing Business Environment

At the Omi Plant, on June 17, 2013, an employee of one of

In April 2013, we started a new phase of DENKA100, a

material into four divisions that better suit market needs.

our subcontractors was struck by a heat blast from an electrical

Companywide initiative launched in 2007. Although steadyPursuing areas of operations where DENKA has uniquefurnace in the calcium carbide production facility, resulting inprogress has been made toward securing sustainable growth, itstrengths, we will develop core businesses that can drive us

death. We would like to extend our deepest condolences to thehas become unlikely that the DENKA100 numerical targets forforward over the next 100 years as we take a global perspective.

victim of this accident and sincerely express our apology to thebusiness performance such as that for operating income can bebereaved family. Also, on July 20, 2013, a fire broke out at theattained by the end of fiscal 2015. This is due to the harsh

Fulfilling Our Responsibility to the Environment

Chiba Plant during the demolition of a styrene monomer

operating environment caused by such factors as European

As a chemical company, DENKA makes products from natural

production facility. Although the fire did not cause human injury

debt problems, the deteriorating relationship between Japan

resources and by using energy. To remain a trustworthy corporate

or environmental damage and was extinguished the next day,and China and the repercussions of the Great East Japan

citizen and continue operations, it is essential not only to makewe would extend our deepest apologies to the plant’s neighbors

Earthquake. Taking the above into account, we moved the

products of value but also to take into consideration such issues

and others in the area as well as relevant authorities for any

target year of DENKA100 to fiscal 2017 while reestablishingas energy and resource saving. With this in mind, our important

Our Business, We Will Strive to

trouble and anxiety caused by this accident.

growth strategies. Moreover, in April 2013 we revised ourmanagement issues over the next 100 years include the further

organizational structure in line with market changes.

utilization of renewable energy sources through the increase of

Realize People- and Eco-Friendly

earnestly implement exhaustive countermeasures aimed at

Regrettably, before discussing our initiatives in fiscal 2012,

Making Safety an Integral Part ofOperations in Our Pursuit of“Lasting Trust as an Outstanding
Manufacturer.”

4

DENKA CSR REPORT 2013

Recognizing the critical nature of these accidents, we willbusiness divisions that were previously divided by type of

output from hydroelectric power plants, additional installation ofsuch plants and the construction of mega-solar power stations.

must be placed on safety and disaster prevention in all

Remaining On-Trend with Market Needs by
Renewing Growth Strategies and Implementing
Organizational Restructuringcorporate activities, the entire DENKA Group will rally its

New growth strategies established in concert with the next

improve the entirety of products’ life cycles while formulating thestrengths to regain the trust of society.

phase of DENKA100 consist of: “Create the most optimal pro-Medium-Term Environmental Plan aimed at systematicallyduction system”; “Scrutinize every cost element”; and “Focus

promoting energy saving and the reduction of emission of

Ensuring Safety: Going Back to the Basics

management resources on new growth drivers and develop

environment load substances and industrial waste.

Up to the present, DENKA’s focus has been on encouraging

next-generation products.”

preventing any recurrence, guided by the instruction of related
authorities. Reinforcing our awareness that the utmost priority

To reduce environmental burdens, we are continuously
implementing voluntary Responsible Care (RC) activities toFurthermore, DENKA proactively seeks to help to resolve

individual employees to master the basics of safe operations

We will accelerate global expansion to penetrate growthenvironmental issues by providing society with its technologicaland raising their safety awareness, striving to maintain worksite

markets with products that boast a competitive edge while

expertise on production and product development accumulated

safety by building on strong communication among employees.

maintaining cost competitiveness capable of prevailing on theover the years. One such attempt is the licensing of dry

Despite these efforts, the accidents occurred. Our assessment

global stage. Simultaneously, we devote our management

acetylene generation technology, which saves on the use ofof these accidents suggests insufficient hazard prediction and a

resources to four growth fields, namely, the environment, energy,

energy and water, to Chinese manufacturers. Also, welack of communication with subcontractors to ensure safety.

infrastructure and healthcare. While making the most of our

expanded our waste material recycling business at our cement

In addition to the Omi Plant, DENKA operates a number ofproprietary technologies in each of these fields, we will strive toplant in Omi. Cooperating with relevant government authorities

plants that include high-temperature and high-pressure facilities.

develop next-generation products that help to resolve socialand municipal bodies, in January 2013 we began accepting

Applying the lessons learned from these accidents, we areissues through the pursuit of “open innovation,” including joint

sludge generated during the filtration process of water supply

DENKA CSR REPORT 20135

To Remain a Company That Deserves Trustfacilities, after confirming such sludge conforms to safety

In fiscal 2012, DENKA revised its personnel system,

standards with regard to residual radioactivity and gaining theabolishing the seniority-based promotion and remuneration

understanding of local residents.

system in order to ensure that employees at all levels, from new

A Heat-Blast Accident at the Omi Plant’s Calcium Carbide
Production Facility

recruits to managers, are evaluated based solely on their quality

Ensuring Complianceof work and willingness to take on new challenges and are

To expand our business overseas, it is indispensable to maintainpromoted accordingly. At the same time, we establishedsufficient understanding of laws, regulations and social ethics ofrecruiting policies aimed at increasing the number of specialist

each country in which we operate. Drawing lessons from anfemale staff and proactively hiring international employees.

efforts aimed at deepening our employees’ understanding of

Looking Toward the Next 100 Years—Becoming a
Manufacturer That Deserves People’s Trust

legal systems and having them abide by the DENKA Group

Since July 2011, DENKA employees have continued to engage

Ethics Policy, which sets forth our voluntary ethics standards.

in volunteer activities aimed at supporting areas devastated by

As for human rights, the DENKA Group Ethics Policy strictly

the Great East Japan Earthquake. Group volunteer trips to suchprohibits forced labor, power harassment and sexual

areas have been organized on more than 30 occasions to date.

harassment. We have also set up internal and external

Also, DENKA has been holding experimental science classes for

consultation services and the Compliance Hotline System.

local children. Spearheaded by younger employees with a

Moreover, with the aim of ensuring compliance, including

strong sense of duty toward society, such science classes arerespect for human rights, across our supply chain, we launchedhelping nurture children’s interest in chemistry and are facilitating

the CSR Procurement Committee and formulated procurement

greater understanding of the DENKA Group’s business

policies and guidelines in fiscal 2013. These policies andoperations among local residents, including the parents andguidelines will be in effect by the end of fiscal 2013.

teachers of such children. We are thus expanding both the

As a response to mental health problems, which are

top of an electrical furnace in the calcium carbide production facility. The accident occurred while he was undertaking electrical
work and caused burns all over his body, resulting in death despite his being rushed to intensive care.
The accident did not involve fire or cause the dispersion of hazardous substances and had no impact on the environment ofsurrounding areas.

allegation of EU Competition Law violation with regard to salesof chloroprene rubber, we have reinforced our education-related

On June 17, 2013, at the Omi Plant, an employee of one of our subcontractors was struck by a heat blast that blew out from the

Although operations at the electrical furnace in question were suspended in accordance with an order from the Itoigawa City
Fire Department issued on June 17, 2013, the furnace resumed production on July 3, 2013, upon the lifting of said order.

A Fire at the Chiba Plant During the Demolition of a Styrene Monomer
Production Facility
On July 20, 2013, at the Chiba Plant, a fire broke out in a distillation tower during the demolition of a styrene monomer production
facility that had been nonoperational since May 2012. The Ichihara City Fire-Prevention Section, the Goi Joint Disaster Prevention
Council and DENKA’s in-house fire brigade were able to confine the fire to the facility, extinguishing it the next day. The fire
resulted in no human injury or property or environmental damage.

number of locations where we hold these experimental science
Further details of these accidents and updates can be found among the news releases posted on DENKA’s website.

becoming a social concern in recent years and are likely to beclasses and scope of their content.

discussed in a revision of the Industrial Safety and Health Act,We believe that improving business performance andwe have begun implementing the “Mental Health Promotion

fulfilling our responsibilities as a member of society must bePlan,” a program that includes reinstatement support for thoserealized in tandem—the two are inextricably linked and together

who have taken leave due to such problems.

constitute indispensable conditions to obtaining the trust of(Available only in Japanese.)
http://www.denka.co.jp/news/

In the DENKA CSR Report 2014, we will feature follow-up reports with regard to actions taken in response to these accidents.

society and ensuring our sustainable growth over the next 100

Creating Rewarding and Comfortable Workplaces

years. While staying true to our traditions of maintaining an

A company is built on the work of each employee. Therefore, weearnest attitude and sincere conduct in our dealings, DENKA

believe that it is important to ensure that each employee is able

will continue its pursuit of the lasting trust of society as an

to achieve an optimal balance between their work duties andoutstanding manufacturer.

private lives, a balance that has a bearing on the happiness of
their families. Striking such balance is not only essential to
improve labor productivity but also indispensable for a company
desiring to continue operating and achieving sustainable growth.
In line with this belief, we are enriching career development
programs while developing leave systems that accommodate

Shinsuke Yoshitaka

diverse lifestyles, allowing employees to engage in child raising,President & CEO

nursing care and volunteer activities without anxiety.

6

DENKA CSR REPORT 2013

DENKA CSR REPORT 20137

Corporate Governance

To Remain a Company That Deserves Trust

While Striving to Ensure Thorough Compliance, We Are Endeavoring
to Develop a Highly Transparent Management Structure, Giving Due
Consideration to the Latest Global Trends in Corporate Governance.

standards of this system, swiftly addressing any problems that arethat may arise. We set up the Compliance Hotline in keeping withdiscovered. We issued an internal control report following the sys-

the DENKA Group Ethics Policy. The hotline accepts calls on actions

tem’s implementation in fiscal 2008. In fiscal 2012, this documentthat may or do violate that policy. The Ethics Committee quickly

declared the effectiveness of our internal controls based on an eval-

addresses reports.

uation in line with assessment standards for generally accepted

The hotline’s mandate is to be fair and swift. It receives reports

Corporate Governance Structure

1. Board of Directors, Audit & Supervisory Board and Executive Officers

We adopted an Audit & Supervisory Board System as the basis of

Two of our ten directors are outside members. In April 2008, we

An independent accounting firm (ERNST & YOUNG SHINNIHON

union, which operate independently, as well as from the Ethics

our Corporate Governance System. The said board includes two

reformed this body to separate oversight and implementation byLLC) audited our report and determined that all significant aspects ofCommittee Administrative Office and general affairs sections within

outside members assessing our operations and management toeliminating ranks within the board while reinforcing its supervisory

our disclosure were proper. We will continue to maintain internal con-

all offices. People can send reports to an external law firm. They canensure that our business properly serves stakeholders.

functions. The Board of Directors appoints executive officers to run

trols for the purpose of ensuring the reliability of our financial reports.

also e-mail reports to internal auditors. During fiscal 2012, we

The Board of Directors similarly has two outside members. We

financial reports.

operations under the leadership of the president.

from the Audit & Supervisory Board Members Dept. and the labor

received two reports.

Compliance

ensure management transparency by separating the board’s over-

The abovementioned two outside directors and two outside mem-sight from executive implementation. On August 1, 2012, the Legalbers of the Audit & Supervisory Board are appointed as independent

Compliance is essential for sustainable growth. We accordingly adhere

Dept., which was previously under the Administrative Dept., hasdirectors/auditors under the rules of Tokyo Stock Exchange Group,

to internal rules and legislation and refrain from acts that violate moral

been put under the direct control of President with the aim ofInc. They maintain sufficient independence while retaining extensive

and ethical norms. In 2002, we codified conduct standards in the

Risk Management

strengthening its authority as well as broadening its functions.

knowledge in their area of specialty. This ensures that the Company’s

DENKA Group Ethics Policy. We established the Ethics Committee,

It is important to understand the diverse and numerous hazards ofmanagement receives supervision from an external viewpoint.

which the president chairs, to oversee compliance and enforce thecorporate activities through proper risk control.

2. Internal Auditing System

policy. We adopted compliance policies for the Legal, Environmental

The Internal Auditing Dept. conducts our in-house checks, withand Safety, Intellectual Property and other departments.

The chart below shows our corporate governance structure,including the Internal Auditing System.

The DENKA Group Ethics Policy specifically safeguards whistleblowers from discrimination and mistreatment.

In general, each business unit is responsible for identifying andmanaging its specific risks. To handle environmental, safety, productManagement Committee

assistance from the Legal, Environment and Safety, and Quality

In December 2007, DENKA and its overseas subsidiary DENKA

liability and export control issues that affect the entire Company, we

DENKA established the Management Committee, which is com-

Control Management departments. It also works closely with theChemicals GmbH (DCG) were notified of the decision made by the

maintain special sections and permanent committees and have also

posed of directors, members of the Audit & Supervisory Board andProduct Liability, Responsible Care and other committees based on

European Commission pertaining to an allegation of their EU

appointed a team of specialists to audit our Group subsidiaries.

selected executive officers, to streamline and accelerate deliberation

their specific functions. Each department and committee collabo-

Competition Law violation with regard to sales of chloroprene rubber

We formulated our Risk Management Guidelines to comprehen-

on important managerial matters. For such important matters as therates to educate on legislation and audit operations. The results areundertaken in Europe from 1993 to 2002. As we believed thesively tackle incidents that greatly affect corporate activities. We also

drawing up of a budget and capital investment, we set up special

reported to the Board of Directors as needed.

European Committee’s fact-finding was different from ours, we

set up the Crisis Measures Headquarters and the permanent Risk

objected to this decision and filed an appeal against it to theManagement Committee.

We inaugurated the Compliance Hotline System to supplement

committees or deliberative councils by function.

internal audits by swiftly identifying and addressing any violations.

European General Court in February 2008. However, the Court ren-Internal Control

3. Internal Control Reporting Systemdered a judgment in favor of the European Commission’s decision inInternal control systems are fundamental to meeting society’s

This system under Japan’s Financial Services and Exchange Act

February 2012 and we decided not to file any further appeals.

expectations and gaining its respect. We will continue to improveaims to ensure that financial statements are reliable.

ing our internal auditing system, we stepped up the implementationof in-house education centered on competition laws (e.g., the anti-

Corporate Governance Overview

out the Group, including overseas subsidiaries, with more than

General Stockholders’ Meeting

Audit & Supervisory
Board Members Dept.

Audits within Business Units

Conduct Audit/Auditing Staff

Compliance Hotline

Audit(Including Administrative Dept., Legal Dept., Environment and
Safety Dept., and Quality Management Dept.)

Financial Auditor (Auditing Firm)laws overseas while staying free of the violation of relevant domestic
laws for more than 20 years since 1992. We are striving to maintain

DENKA CSR REPORT 2013

Headquarters

Board ofDirectors

CrisisMeasures
Headquarters

Responsible Care Committee
Product Liability Committee
Export Control Committee

Monitor/Instruct

Monitor/Instruct

this status, continuously taking various measures aimed at preventing recurrence, including employee education.

Compliance Hotline System
This system covers any shortfalls in our internal control andPrime oversightBusinesses(including Sales and Manufacturing Divisions)
Administration(including Internal Auditing, Environment and Safety,
Legal and Accounting & Finance Departments)

compliance systems by enabling us to fix organizational problems

WEB

8

Safety Measures

ReportInternal Auditing Dept.

Group has not been charged with the violation of any competition

Major
crisesProxy Organizations
Ethics Committee

ReportInternal Audits

AssistantAffiliates

ceased is 2002, and for the more than 10 years since then the DENKA

Other
risks

Risk Management Committee

ReportVarious Business Sectors

Audit &
Supervisory Board

The year in which the said violation has been deemed to have

ReportExecutive Officers

ists lecturing.

Appointment/Dismissal

Executive Directors

Audit

ReportImplementation

Representative Directors

ReportElection/Dismissal

Appointment/Dismissal

Directors (Board of Directors)
Supervise

500 employees participating and external lawyers and other special-

Appointment/Dismissal

Appointment/Dismissal

Risk-specificcommittees
Report on Emergencies

monopoly laws), holding training sessions on 13 occasions through-Set up/thoroughgoing efforts aimed at ensuring compliance. While improv-

Instruct

We conduct checks of Groupwide business procedures to reduce
mistakes and possible risks in keeping with the implementation

Reportfollowing outlines details of the systems.

President

Upon serious reflection in light of this incident, we have made
Reportour systems in line with the policies of the Board of Directors. The

Risk Management Overview

The DENKA Group Guidelines and details of our information system management are available on pages 1 and 3 of the DENKA CSR Report 2013 References(PDF format) posted on our website.
DENKA CSR REPORT 20139

To Remain a Company That Deserves Trust

CSR Promotion Structure

DENKA Group’s CSR
To Achieve the Goals Set Forth in DENKA100, We Promote CSR Activities
from the Economic, Social and Environmental Perspectives in Our
Continued Pursuit of “Trust as an Outstanding Manufacturer.”

To promote its CSR activities, DENKA established its CSR promotion

CSR Promotion Structure

structure spearheaded by the president and consisting of the CSR &President

Responsible Care (RC) Committee

Corporate Communications Dept. and nine specialized bodies.

Safety Measures Headquarters

When major issues arise, specialized committees under the

CSR & Corporate
Communications Dept.

direct control of the president hold discussions and make decisions

Product Liability (PL) Committee
Ethics Committee

on the actions to be taken. The CSR & Corporate Communications

Security Export Control Committee

Since its founding in 1915, DENKA has sought to contribute to society’s development as a

Dept. has been systematically developing an in-house structure to

manufacturer in the chemical industry while always striving to be a company that garners

promote CSR, facilitating the understanding of all Group employees

Risk Management Committee

people’s trust.

to ensure their wholehearted engagement in CSR activities and

CSR Procurement Committee

In 1995, we began implementing responsible care (RC) activities, adopting a CSR ini-

publishing these activities’ results in the DENKA CSR Report.

Internal Auditing Dept.

tiative promoted across the entire chemical industry for the voluntary management of

Investor Relations Dept.

chemical substances. Since then, we have taken a systematic approach to advancing

As of July 2013environmental conservation, product safety, security and disaster prevention, and communication with local communities.

CSR Promotion Challenges, Goals and Performance

In 2007, we launched DENKA100, a key management initiative that guides efforts tofulfill our social responsibility in six areas, setting goals for fiscal 2015—the year we will

Stakeholders

Challenges

mark the centennial of our founding.

8 to 932 to 34
3
(Web*)

A

DENKA100
Toward greater
corporate value for the
next 100 years

Governmental/• Engage in public policies
External
and activities
Institutions• Utilize subsidy systems• Drew on the Government’s subsidy system to conduct R&D
to pursue R&D projects
and facility improvements that contribute to energy saving
and improve productionand environment conservation
technologies

12(Web*)A• Continue utilizing subsidy systems topursue R&D and improvement ofenergy-saving and other green
technologies

The Environment• Implemented the Fourth Medium-Term Environmental Plan
(fiscal 2010-2012)
1. Missed the target for energy consumption intensity:• Prevention of global
0.94 compared with fiscal 1990 level (target: 0.86)
warming (CO2 emissions • Promote RC activities
Due mainly to the suspension of a styrene monomer facility
reduction), curbing• Implement the Medium- 2. Missed the target for emissions of PRTR substances:chemical substanceTerm Environmental Plan 103 tons (target: 88 tons)
emissions, waste
and formulate a future
A 25% year-on-year decrease due to lower production
reduction, technologicalplan
volume and the use of solvent-free adhesives
innovation for energy
3. Achieved the target for the volume of final waste disposal:
conservation
179 tons (target: 374 tons)
Due mainly to an improvement in the internal recycling rate
at the Omi Plant’s Special Cement Additives Dept.

18 to 25
2
(Web*)

C
Missedthetargets• Implement the Fifth Medium-Term
Environmental Plan (systematicallyreduce emissions of CO2, environmental load substances and PRTR
substances)• Promote RC activities

Customers andSuppliers• Develop and market
environment-friendly• Launched the CSR Procurement Committee• Development andprovision of high-quality, products• Pursued product development aimed at energy saving andeconomic products• Supply reliable and safe
environmental load reduction
products• Business activities• Contributed to society by transferring energy-saving
through fair and open
• Prepare for the estatechnologies, such as calcium carbide manufacturing
trade
blishment of a CSR
methods (technology licensing in China)
procurement structure

30 to 31
4 to 5(Web*)B• Disclose the CSR Procurement
Policies and Guidelines to suppliers• Develop and market products aimed
at helping to resolve environmental
and social issues• Continue supplying reliable and safe
products

Shareholders andInvestors• Secure returns to shareholders through stable • Enhance CSR-related
business performance
information disclosureand ensure reliability• Establishment ofrelationships of trust• Execute the businessthrough information
plan
Exchanges

C
Delayedthe target • Enhance CSR-related information
disclosure and ensuring reliability
34 to 39 year set
forth in the • Continue executing the business planbusinessplan• Comfortable andrewarding workplaces

Junichi Kimura
Executive Officer, General Manager of Corporate Planning Dept.,
CSR & Corporate Communications Dept.

History of CSR Activities
The root of DENKA’s CSR activities goes back to RC activities

Society

Commenced the Companywide DENKA100 initiative
Established the CSR Promoting Dept.
(currently, CSR & Corporate Communications Dept.)
Published the first DENKA CSR Report

2015
2013
The centennial anniversaryof DENKA’s founding

2012

Published the first
DENKA Environmental Report

2007
2003

2017

History of CSR activities
History of RC activities

The establishment of the
CSR Procurement Committee

2000
1995

Launched the First Medium-Term
Environmental Plan

Started Responsible Care (RC)
activities

While building on preventive initiatives in the area of corporate governance, which constitutes the foundation for our ongoing operations, we are also pursuing proactive CSR activities to achieve
greater corporate value by helping to resolve social issues throughour business activities.

Six Pillars of Activities toward DENKA100
The Expansion of Business Operations
To secure sufficient management resources, we have set quantitative targets to beachieved in fiscal 2017, namely, consolidated operating income of ¥60 billion, an operating income ratio of 10%, and a 50% ratio of overseas sales to net sales.

GCP: Good Company Program
To be a “Good Company,” we work to solve material issues under the mottoes “leadership” and “full participation of employees” while striving to enhance our capabilities.

Human Resource Development
While boosting employee motivation, we will facilitate the development of humanresources who can independently think, learn and take action.

Promote Further Innovation
Through the effective use of resources, improvement of plant capacity, creation of highervalue-added products and enhancement of operational efficiencies, we are striving to promote technological innovation and strengthen our productive and organizational capabilities.

R&D Promotion
We will reinforce our R&D functions and foster collaborative relationships within the
Company to develop new products for future growth and cultivate new markets.

CSR: Corporate Social Responsibility
We faithfully address social, environmental and economic issues and steadily promote
CSR activities.

DENKA CSR REPORT 2013

• Continued seeking a third-party opinion• Enhanced the content of the CSR Report and the website

A: Achieved significant results
B: Observed some results
C: No results were observed* Reported in the web-based DENKA CSR Report 2013 References (PDF format).

WEB

10

Major Challenges and Goals
in Fiscal 2013 and Beyond• Undertake comprehensive reviews of
the status of social contribution
activities being implemented acrossthe Group• Continuously implement volunteer
activities to support disaster-strickenareas• Reinforce communication with local
communities through experimental
science classes

Employees

The New Phaseof DENKA100

Results• Strengthened the Legal Dept.’s authority and theimplementation of compliance education• Ensure thorough• Dispatched employee volunteers to Minami Sanriku-cho
compliance (reviewing
through the Disaster Area Volunteer Support Program• Maintain thorougheducational programs
General Public
compliance as a goodand strengthening of the • Participated in the Summer Holiday Chemical Experimentand Local
corporate citizen andShow for Children and hosted experimental science classes
Legal Dept.’s authority)
Communities
reinforce communication• Contributed to the revitalization of local community by•
Holda
Companywith local communities
supporting the NIIGATA Albirex BB Rabbits women’ssponsored “chemicalbasketball teamexperiment” show
• Contributed to social welfare through educational andcultural initiatives involving music (the Fureai Trio)trust as an outstanding manufacturer.

the Company launched the full-scale implementation of CSR activities.

Pages• Secure occupational safety and health(elimination of occupational accidents)• Ensure adherence to the “fundamental
actions required to maintain safety” byon-site workers, facilitating worksite
12 to 13Ccommunication, creating a vibrant and
26 to 29 Accidents
lively workplace and enhancing
6
did not
employee education(Web*) decrease• Apply a security capability evaluation
system
• Implement a program to strengthencountermeasures against mental
health problems

resolve social issues by drawing on our unique strengths and thereby continue to pursue

Target year for
DENKA100

Performance• Secure occupational• Activities of the Safety Measure Committee (reconfirming
safety and healththe importance of leadership and accelerated facility(elimination of occupaimprovement)tional accidents)• Held safety discussion meetings at worksites (to facilitate• Develop humancommunication), safety training sessions at each businessresources (nurturing asite and safety networking meetings aimed at eliminating
CSR mindset)
accidents specific to resin processing lines• Report on CSR activities • Revised personnel system, pursued diversity promotion,
at overseas business
reinforced human resource development (overseas training
bases
programs, etc.)

Constantly striving to be an exemplary corporate citizen, we seek ways to help tolaunched in 1995. Upon the start of the DENKA100 initiative in 2007,

Fiscal 2012
Goals

D: The level of activity deteriorated

Reports on our responsible care activities are available on page 2 of the DENKA CSR Report 2013 References (PDF format) posted on our website.
DENKA CSR REPORT 201311

Securing Worksite Safety

To Remain a Company That Deserves Trust

Aiming to Realize a “Workplace Free of Accidents and Disasters,”
We Facilitate a Safety-Oriented Corporate Culture throughWorksite Communication while Raising Safety Awareness among
All Employees.

reviewing safety management procedures, thoroughly enforcing theimplementation of preliminary evaluations and change management.** See page 6 of the web-based DENKA CSR Report 2013 References

Safety Review Meetings and Safety Networking Meetings
All six of the Group’s main domestic plants as well as the DENKA
Innovation Center hold annual safety review meetings to hear directly from on-site employees and identify root causes of accidents. In
fiscal 2012, these meetings were held in October and November.
Safety networking meetings are held at least once a year to
make sure that best practices are shared horizontally throughout theorganization. The fiscal 2012 meeting was held at the Omi Plant on
February 28 and March 1, 2013. In addition, the Chiba, Shibukawa,
Ofuna and Isesaki plants, all of which are involved in resin processing, hold their own annual safety networking meetings to eliminate
accidents specific to resin processing lines. One such meeting washeld at the Chiba Plant on July 17, 2012, to share information anddiscuss measures to prevent recurrences.
Safety Bulletin Boards, Safety Activity Newsletters andIn fiscal 2012, we installed electronic bulletin boards at the entranc-

Fiscal 2012 Occupational Safety Management Plan

Fiscal 2012 Safety Activities

es of all sites to display their daily safety records. Also, since fiscal

We recognize that the leadership of the managers and the heads of

In light of the occurrence of major accidents in fiscal 2011, in February

2011 we have issued safety newsletters to share unique safety

each section, a practical approach to daily operations and thorough2012 DENKA established the Safety Countermeasures Committee,

activities undertaken at each business site and need-to-know infor-

information sharing among all operators are essential to the pursuit

composed of safety managers at each production site and the gen-mation about safety. In fiscal 2012, the 12th edition of the newsletterof safety. Under this recognition, in fiscal 2012 we implemented theeral manager of the Personnel Department. The Committee had met

was issued. Similarly, we have compiled safety booklets since fiscal

following initiatives.

10 times by December 2012, and identified the problem to be a lack2011 and introduced examples of accidents and disasters experi-

1. Ensuring adherence to the required basics of safetyof leadership among the heads of each section in nurturing theenced in the past.

2. Raising safety awareness, facilitating mutual support among all staff

workplace culture, pursuing safety records and solving problems. In

3. Eliminating recurring accidents through information sharing

response, we are stepping up efforts to train leaders who can har-

4. Promoting safety activities best tailored to each siteness various ideas. We are also enriching employee training pro-

5. Enhancing the security management system

grams, such as educational sessions involving danger simulations.
Facility Security and Disaster Prevention

occupational accidents, including those attributable to unsafe behav-

In fiscal 2012, the DENKA Group experienced no major accidents,

ior and insufficient adherence to the basics of safety. Eight such acci-such as fires, explosions or leaks of hazardous substances, that could

dents resulted in absence from work. Approximately 80% of those

impact surrounding areas. However, the number of facility-related inci-

who suffered accidents were workers with less than ten years’dents impeding operations was 11, up from 9 in fiscal 2011. Four of

on-site experience. We will work to facilitate worksite communication

the incidents involved a fire or the emission of smoke; three were

Plant

November 2012, with the aims of strengthening chemical companies’ security measures against industrial accidents and facilitating discussion among chemical companies. On June 6, 2013,
DENKA’s president, Shinsuke Yoshitaka, attended the fifth
meeting, exchanging opinions with other industry leaders on such
topics as how to pass on technological expertise to younger
employees; human error due to overfamiliarity with operations;and conducting disaster drills in tandem with local communities
and enterprises.
Mr. Yoshitaka commented, “I consider safety to be an integral part of our business. Safety and productivity improvement
must be pursued simultaneously and with full commitment...We
focus on facilitating worksite communication and motivating
employees, especially the younger generation, to take a fresh
At the end of the meeting, the leaders agreed to step up thereinforcement of security measures under the strong leadershipof top management.

Safety Activities Undertaken
Thoroughly adopting the basics of safety and facilitating worksite communication

Omi

An initiative aimed at refreshing worker’s memories of accident countermeasures

Omuta

Applying a safety-level evaluation system (comprising eight evaluation axes)

Chiba

Implementing the safety and security reinforcement project

Shibukawa

Reviewing hazard source measures using guidelines focused on preventing
human errors

Ofuna

Implementing safety drills and danger simulations at safety training sessions

IsesakiEliminating typical accidents through facility improvement, training andinformation sharing

Facilitating a Safety-Oriented Corporate Culture
and Creating a Vibrant and Lively Workplace
Miyuki Nakamura, General Manager,

while reinforcing education for operators with less on-site experience.

electricity-related problems; one was water leakage; two were equip-

As for occupational health, in fiscal 2012 three workers suffered

ment failures and the last involved leakage of muddy water at a con-

Evaluation System

struction site and can be categorized as an environmental accident.

Mr. Higashi Ito, a special advisor to DENKA, presented lectures at

Environment and Safety Department

With the heads of each section spearheading on-site initiatives, we are promot-

The primary causes of these accidents were the inadequate

each site based on research into trends in safety activities conduct-

Occupational Safety Record

maintenance of facilities and the inappropriate implementation of

ed by the Japan Society for Safety Engineering (JSSE). Mr. Ito dis-

The number of accidents resulting in absence in 2012* is as follows.

safety management procedures. Currently, we are carrying out sys-cussed such matters as the latest approaches to and the role of top(The figures in parentheses are accident frequency rates.)

tematic inspections and repairs of facilities. At the same time, we aremanagement in safety activities, the preparation of crisis manage-

As for occupational accidents, we carried out a case analy-

ment systems, the importance of autonomous maintenance, the lim-sis, categorizing them by type, the nature of workers involved anditations of risk assessment and the importance of a safety-oriented

actions they took. We are putting particular emphasis on eliminat-

DENKA:

5 (0.92)
Accident Frequency Rates

Subcontractors: 3 (0.54)* The figures are recorded from January to December 2012 (based on regulations set forth by the Labor Standards Inspection Office and guidelines
issued by the Japan Chemical Industry Association).

Accident
frequency =rate(Frequency rate)

2.5

DENKA
Subcontractors

Manufacturer average
Chemical industry average× (1 million)

Total number of working hours

corporate culture.
In fiscal 2013, we will introduce the Security Capability

2.0

Evaluation System developed by the JSSE. Targeting facilities that

1.5

Number of deaths and injuries

The rate if 2.6 people per 1,000 DENKA employees suffered accidents would be about 0.9.

1.0

safety measures are thoroughly adopted
by all operators.

ing accidents resulting from carelessness through the implementation of safety drills and danger simulations.
As for facility-related accidents, we are utilizing the JSSE’s
Security Capability Evaluation System to identify and address
points of improvement to enhance the facilities’ capability in orderproblems inherent to the production of styrene, chloroprene rubber

to maintain security.

and calcium carbide and implement improvements.
0.5

91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 (Year)

DENKA CSR REPORT 2013

ing safety activities aimed at ensuring that

handle large volumes of hazardous substances, we will identify

012

JPCA Security Summits on several occasions beginning in

Unique Safety Activities Undertaken at Each Plant

Lectures on Safety and Security and the Security Capability

heat-related illness, versus one in fiscal 2011.

The Japan Petrochemical Industry Association (JPCA) hosted

approach toward safety.”

Accident Case Studies

Despite the above-listed initiatives, we recorded a number ofParticipating in the Fifth JPCA Security Summit

WEB

Information on our occupational safety and health management system and change management is available on page 6 of the DENKA CSR Report 2013
References (PDF format) posted on our website. Initiatives undertaken at each site and affiliate are featured in the “Site Reports” section of the web-basedreferences.
DENKA CSR REPORT 201313

Sustainability for the Next 100 Years

Fiscal 2012 Overview

In R&D activities, we are boosting our research capabilities

Renewing DENKA100 Growth Strategies

During fiscal 2012, ended March 31, 2013, the global economy wasin a bid to accelerate next-generation product development and

DENKA has implemented the DENKA100 Companywide initiative, which previously set targets for fiscal 2015, the year the Company will marksluggish due to the repercussions of the European debt crisis andto advance our core technologies. At the same time, a construc-the centennial of its founding, under six pillars “The expansion of business operations”; “GCP: Good Company Program”; “Human resource

decelerating economic growth in China. These factors, in turn,tion project is now under way to establish the DENKA Innovation

development”; “Promote further innovation”; “R&D Promotion”; and “CSR: Corporate Social Responsibility.” As for the expansion of businesscaused Japan’s economy to remain stagnant overall, despite a mar-Center main building as a base for joint research initiatives with

operations, the targets were operating income of ¥60 billion or more, an operating income ratio of 10% or greater and an overseas sales to net

ket rebound backed by a reversal in the trend of yen appreciation

external organizations.

sales ratio or 50% or greater. However, taking the recent economic trends into account, without changing the numerical targets, we changed

Furthermore, to continue to thrive for the next 100 years,

toward the end of the fiscal year.
Against this backdrop, the chemical industry was hindered from

DENKA is expanding the utilization of clean energy and its capacity

regaining profitability by such factors as a downturn in domestic

to secure electricity in-house. Specifically, the Company increased

and overseas demand and hikes in the prices of such raw materials

the maximum output of its Otokorogawa Power Plant and in July

as naphtha.

2013 launched in-house mega solar power generation facilities atGiven these circumstances, the DENKA Group has striven to

costs. However, consolidated net sales for fiscal 2012 decreased

structure of markets and changes in customer needs.

DENKA100 New Growth Strategies
New Growth Strategies

the Shibukawa and Isesaki plants.

1. Create the most optimal production system

expand its businesses and to secure profitability, working to increase
sales in Japan and overseas, revising product prices and cutting

the target year from fiscal 2015 to 2017. In fiscal 2013, we also formulated new growth strategies that give due consideration to the demand

Major Capital Expenditures (Fiscal 2012-2013)
Completion• Accelerating a shift to local production to ensure timely product supply to growing overseas markets while dedicating domestic plants toFacilities and Plants

produce specialty and high-performance products

Apr. 2012

DENKA IP (Seraya) (new)May 2012

Electronic packaging material production facilities (Isesaki) (renewal)

Aug. 2012

Silicon nitride production facilities (Omuta) (renewal)

income ratio contracted 0.2 of a percentage point to 5.5%. Among

Jul. 2013

TOYOKALON plant (Tuas) (new)the factors contributing to these results were lackluster sales ofJul. 2013

DENKA Solar Power Shibukawa (Shibukawa) (new)3. Focus management resources on new growth drivers and develop next-generation products

high-value-added products, including electronic circuit substrates

Dec. 2013*

DENKA ALCEN production facilities (Omi) (renewal)• Developing solution businesses in such growth fields as the environment, energy, infrastructure and healthcare

and fluorine-alloy films, and hikes in raw material prices, all of which

Mar. 2014*

DENKA Innovation Center main building (new)6.3% year on year to ¥341,645 million. Operating income also fell,
down 9.2% year on year to ¥18,817 million, and the operating

2. Scrutinize every cost element• Cutting costs through such steps as the streamlining of production processes, yield improvement and the reduction of raw material costs
and maintenance expenses• Reinforcing open innovation, including joint research initiatives (utilizing the DENKA Innovation Center and establishing the NIMS*-DENKA* Scheduled

offset the favorable performance in the healthcare business.

Center of Excellence for Next-Generation Materials)

On the other hand, in fiscal 2012 the Company undertook a

The DENKA Group will step up the abovementioned efforts

number of steps aimed at optimizing its production structure, accel-in line with three new growth strategies, namely, “Create the mosterating R&D activities and better securing and utilizing clean energy.

optimal production system”; “Scrutinize every cost element”; andFor example, we reorganized our styrene monomer business,“Focus management resources on new growth drivers and develop

Reforming our corporate culture and reorganizing business struc-

Working to reduce the impact of business activities on the environ-next-generation products.”tures to facilitate the aggressive, speed-oriented business approach

ment while striving to become a company that garners the lastingneeded to become a successful global company

trust of employees and local communities

integrating the relevant production facilities into a single plant. We* Japan’s National Institute for Materials Science

Reforms in Corporate Culture and Reorganization

also established new plants in Singapore to produce DENKA IP

Meanwhile, on July 26, 2013, the Chinese Ministry of Commerce

styrene copolymer resin and TOYOKALON synthetic fiber for wigs

announced its decision to raise the anti-dumping tax rate imposed• Revising the personnel system (fiscal 2012): Launching a new• Securing clean energy: Expanding the utilization of hydroelectricand hairpieces, accelerating the shift to local production to captureon the Company’s chloroprene rubber from 9.9% to 20.8%, enforc-

personnel system that puts greater value on the spirit of challenge

power generation and establishing mega solar power generation

growing overseas markets. Moreover, in May 2012 we entered into

ing the new tax rate the same day. This case had been under theand contribution to the Company, providing younger employees witha capital partnership agreement with NIPPON CARBIDE

examination of the ministry since June 2012, and we regret that ourmore career opportunities and promoting diversity (see pages 26-27)• Creating a healthy work environment: Improving the workplace

INDUSTRIES CO., INC., with the aim of creating synergies in such

petition to stop the tax hike was rejected. We will feature follow-up• Reorganizing business divisions (April 2013): Integrating six busi-

environment at plants and establishing company-sponsored hous-fields as the electronic material business.

reports on this case in the DENKA CSR Report 2014.

ness divisions into four divisions with the aim of creating new
products and businesses that are more on-trend with market
circumstances and responsive to customer needs (see page 17)

Landmarks in Fiscal 2012

facilities (see pages 22-23)

ing and corporate dormitories• Contributing to local communities and supporting employees’
volunteer activities (see pages 32-33)

Minimizing Disaster Risk

DENKA’S Styrene Monomer Unit 3 Ceases Operations

Celebrating DENKA CHLOROPRENE’s 50th Anniversary

As concerns are growing about a major earthquake hitting the

Examples of countermeasures:

In May 2012, DENKA’s styrene monomer production facility unit

Since its commercialization 50 years ago, DENKA CHLOROPRENE

Kanto area, DENKA formulated business continuity plans (BCPs)• Reinforcing building structures and fixtures

No. 3 (CM-3) ceased operations, bringing the curtain down

has been a mainstay of the Company’s elastomer business andto minimize the risk of disruption in its business operations,• Reinspecting firefighting equipment

on a history spanning the 29 years since 1983. The Company

today DENKA boasts a world-leading chloroprene rubber produc-

which might, in turn, significantly impact our stakeholders.

• Reviewing emergency response procedures and implementing

integrated its styrene monomer production facilities into a single,

tion capacity. On November 21, 2012, we held the “DENKA

Simultaneously, working groups were established at each plant inmore competitive plant dubbed CM-4, in a bid to strengthen its

CHLOROPRENE 50th Anniversary Celebration” to express our

the Kanto area, implementing a year-long project in fiscal 2012 to

The said working groups are assessing the earthquake resistance of

operating base for the styrene-related businesses.

gratitude for stakeholders who have supported this business.

mitigate the potential risk arising from earthquakes.

buildings, formulating and implementing renovation plans as needed.

Reinforced wall of the Ofuna Plant’s recreation facility

Reinforcing the Chiba Plant’s pipe rack modules

Plant tours at CM-3

14

Securing Sustainable Growth for the Next 100 Years

DENKA CSR REPORT 2013

President
Shinsuke Yoshitaka
greeting stakeholders

disaster drills

DENKA CSR REPORT 201315

Sustainability for the Next 100 Years

DENKA’s Four New Divisions

Our R&D Activities

To facilitate new growth strategies established in concert with the next phase of DENKA100, we integrated six business divisions that werepreviously based on type of material* into four divisions in line with market needs.

With a Spirit of “Open Innovation and Challenge,” We Will Develop
Technologies and Products That Meet the Needs of Society.

* Styrenic Division, Electronic Materials Division, Living & Environmental Products Division, Chemicals Division, Cement & Special Cement Additives Division,
Medical Science Division

The DENKA Group’s corporate philosophy is “creating valuable things that benefit society

Elastomers & Performance
Plastics Division

Infrastructure & Inorganic
Materials Division

Under new growth strategies established to address rapid changes in demandThis division supplies polymer

This division handles inorganic

structure in recent years, we will shift the focus of our R&D activities to growth drivers andchemical products, including

materials, including calcium car-

DENKA CHLOROPRENE synthetic

bide and calcium cyanamide fertil-rubber, styrene-based functional

izers, which the Company has

resins and acetyl chemicals, bol-produced since its founding inand healthcare in a bid to develop peripheral technology based on existing products

stering technological innovation in

1915, while providing infrastructure

while striving to create new businesses and products employing our competitive techno-such fields as automobiles, homedevelopers with Denka Cement,

logical edge.

appliances, construction materials

special cement additives and otherand food packaging.

solutions.

from resources with advanced technologies.” To realize this philosophy, the Group is
implementing DENKA100 Companywide initiatives.

next-generation product development.
Specifically, we target such growth fields as the environment, energy, infrastructure

While promptly addressing the anticipated needs of next-generation market, we will
also strengthen collaboration with our strategic partners and external research institutions
to realize the effective integration of our proprietary technologies and external input. In
these ways, we will go beyond the scope of a material manufacturer to expand into suchfields as components, finished products and the solution businesses.

Norihiro Shimizu
Managing Executive Officer, General Manager,
Research and Development Department

Accelerating the Development of Next-Generation Technologies through Collaboration
As a step toward strengthening business-academia collaboration,

The scope of the Company’s collaboration with external entities

on June 1, 2013, DENKA established the NIMS-DENKA Center ofincludes not only research institutions but also the R&D sections of

Excellence for Next-Generation Materials, with Japan’s Nationaldomestic and overseas business corporations, including our corpo-

Institute for Materials Science (NIMS). DENKA has long pursued
R&D efforts based on NIMS research, thereby creating such out-

Products:

Products:

Boasting over 70 years of history,

DENKA ALCEN is a crystalline alumina

DENKA BLACK is a highly pure, elec-

short fiber used as a thermal insulation

trically and thermally conductive car-material and for other purposes. Duebon black made from acetylene. In

to its high quality and thermally stable

recent years, this product has been

performance, this product is also

adopted for use in lithium-ion second-

increasingly used for exhaust gas puri-ary cells for electric automobiles.

fication and secondary batteries.

rate customers and suppliers. Under the slogan “Open Innovation

Electronics & Innovative
Products Division

Life Science & Environmental
Products Division

and Challenge,” we seek to build win-win relationships with ourThis division employs the fullThis division provides various prod-

partners to realize a fusion of core technologies that goes beyond arange of organic, inorganic anducts for better living, including phar-polymer chemistries to make finemaceutical products. These include

particles such as spherical fused

pipes, industrial tapes, synthetic

silica and phosphors, heat dissi-

fibers for wigs and food packaging

pating circuit substrates, packag-

materials, as well as high-molecularbusinesses through the combination of NIMS’s material researching materials for electronic

sodium hyaluronate preparations

expertise and DENKA’s technological capabilities.

components, functional adhesives

and diagnostic reagents*.

and electron guns.

*Manufactured by DENKA SEIKEN Co., Ltd.

standing products as the ß SiAlON Phosphor for white LEDs andthe DENKA LaB6 Cathode for electron microscopes. The establish-

mere combination of existing products. We thereby aim for thement of the new research center is aimed at accelerating suchcreation of innovative products and next-generation businesses.

efforts, leading to the creation of innovative products and new

Fiscal 2012 R&D Achievements
The ß SiAlON Phosphor ALONBRIGHT“TEMPLOC” Temporary Adhesiveß SiAlON Phosphor for white LEDs (product

On May 1, 2013, DENKA received the Fiscal

name: ALONBRIGHT), which was commer-

2012 Award of the Society of Polymer

cialized by DENKA based on NIMS research,

Science, Japan (Technology Category) for

Products:

Products:

TEMPLOC, a next-generation temporary fix-

TEMPLOC, a temporary fixative devel-

SOFRIA is a highly functional biaxiallyoped applying one of DENKA’s propri-oriented polystyrene sheet (OPS) used

etary adhesive technologies, is used

for food packaging. Stronger thanfor the machining of smartphones’

conventional OPS products, this prod-

touch-screen panels, and has contrib-

uct helps realize weight-saving pack-

was awarded the Fiscal 2012 Prize for
Science and Technology (Development

ing agent developed using its proprietary

Category) by the Minister of Education, Culture, Sports, Science andpolymer design technologies. More effective than conventional tem-Technology. Although the original aim of the research that resulted inporary fixing agents, such as waxes, TEMPLOC hardens with aß SiAlON Phosphor was to find a new material for use in engine

short exposure to ultraviolet light and can be easily peeled off byuted to a significant reduction in pro-aging while being easily crumpled,components, NIMS and DENKA focused on its superiority as a

immersing it in hot water, eliminating the need for organic solvents. It

cessing time as well as eliminating thecontributing to resource saving andgreen phosphor and succeeded in commercializing this use. Used in

is widely used in the cutting and polishing of various types of glass,need of organic solvents.

waste reduction.

liquid crystal television backlights, ALONBRIGHT significantly

silicon wafers and other electronic components, helping to enhance

improves picture quality while reducing environmental load.

productivity and reduce environmental load.
WEB

16

DENKA CSR REPORT 2013

Information on our products and technologies aimed at contributing to society and the utilization of environment- and energy-related subsidies is available on
pages 8 to 11 and 12 of the DENKA CSR Report 2013 References (PDF format) posted on our website.
DENKA CSR REPORT 201317

Sustainability for the Next 100 Years
왎 Production Volume and Energy Consumption Intensity

CO2 Reduction Initiatives
In fiscal 2012, energy consumption intensity deteriorated due to a

Environmental Management

Relative to the Fiscal 1990 Level

drop in production volume that reflected such factors as the suspension of operations at a styrene monomer plant. The CO2 emis-

From the Perspective of Responsible Care (RC), We Will Work to
Save Energy and Resources and Reduce Environmental Impact at All
Stages of the Product Life Cycle.

sion volume of DENKA’s six domestic business sites was

Production

1.4
1.32 1.31

successfully reduced to 1.33 million tons from energy sources and0.955 million tons from non-energy sources, below the initial targets

The DENKA Group takes a systematic approach to environmental management,of 1.34 million tons and 1.01 million tons, respectively. However,drawing up Medium-Term Environmental Plans, which set forth numerical targets

CO2 emissions intensity deteriorated from 1.06t-CO2/t-CaC2 in fiscal

mainly for energy and resource saving and environmental load substance reduction,2011 to 1.25t-CO2/t-CaC2 in fiscal 2012, due to the suspension ofthat it renews on a triennial basis. The latest, the Fifth Medium-Term Environmental

nuclear power generation, which increased the ratio of thermal

Plan, targets fiscal 2015 and calls for reducing energy consumption intensity 3%

power generation in the volume of purchased electricity.

Energy intensity

Production;
Energy intensity
1.36

1.2

1.20

Target

1.25

1.16

1.13
1.02

1.0

1.00
0.90

0.90

0.90

05

06

07

1.07
0.94

0.90

0.91

0.91

09

10

11

0.94

0.93

12

13

0.8

0.6

compared with the fiscal 2012 level. We will also continuously strive to reduce the0.4

emission of CO2 and other environmental load substances.
0.2

Fourth Medium-Term
Environmental Plan (final year)
Fiscal 2012

Performance

Fifth Medium-Term
Environmental Plan

0.0

Fiscal 2013

Fiscal 2015

TargetResults

TargetTarget

0.86

0.94

0.93

0.91

Emissions of PRTR
substances (tons)

88

103

95

88

Final landfill waste (tons)

374

180

177

176

Energy consumption
intensity (fiscal 1990 base)90

왎 CO2 Emissions Intensity (energy derived)
CO2 emissions intensity (left)

Hitoshi Watanabe

CO2 emissions intensity index (right)

100

Energy derived(%)

Emissions(1,000 tons)

100

1,500

Non-energy derived*

1,440

1.51

Target83

82
1.25 1.24

1.29

1.2

72
71
1.07

1.09

Target

1,380

1,340

1,320

85

Representative Director and

1,330
1,271

1,240

1,200
75

1,130

70
1.06

990

970

0.8

960

955

900

Overview of Environmental Burdens (totals of all production sites for fiscal 2012)(FY)왎 CO2 Emissions(t-CO 2 /t-CaC 2 )1.6

Senior Managing Executive Officer

08* Base year: Fiscal 1990

50
600

InputsBusiness Activities

Outputs
Products

Fuels

417,000 kl

Air emissions
CO2 (from energy sources)
CO2 (from non-energy sources)
SOx
NOx
Soot and dust
PRTR substances1

Electricity

1.36 billion kWh
Water

Plants

77.86 million t

1.33 million t
0.95 million t
116 t
4,044 t93 t
76 t

251,000 t

Water discharges
COD (BOD)
PRTR substances1

864 t
28 t

Raw materials

Soil discharges
PRTR substances10t

Waste generated2

132,000 t

External wastekl = kiloliter
kWh = kilowatt-hourt = metric ton
CO2 = carbon dioxide
SOx = Sulfur oxides
NOx = Nitrogen oxides
COD = Chemical oxide demand
BOD = Biochemical oxygen demand
PRTR = Pollutant Release andTransfer Register

0.4

25
300

0.0

0

90

08

09

10

11

12

13

08

Waste reduction (water removal and incineration) 10,165 t

112,000 t
This environmental impact data encompasses DENKA’s
plants and main affiliates within those facilities.

Main
affiliates

Omi Plant:
Chiba Plant:

09

10

12

11

13

(FY)

* Non-energy derived CO2 emissions are generated from raw materials
processing and waste disposal during the manufacturing process.

SOx

NOx

The emissions decreased by approximately 45% year on year

The emissions decreased approximately 5% year on year due tothanks to the use of byproduct gas recovered from nearby factory

such factors as the suspension of operation of a styrene monomer

Recycled
externallycomplex as a fuel for the Chiba Plant’s boilers. We will continue tofacility. Although the emissions are expected to rise in fiscal 2013 as

9,548 tutilize byproduct gas in fiscal 2013 to reduce SOx emissions.

production volume rebounds, we will strive to reduce emissions bysuch means as the continuous use of byproduct gas.

Final disposal(as landfill)

Recycled
in-house

0

(FY)

180 t

Denal Silane Co., Ltd. / Denak Co., Ltd. / JUZEN Chemical Corporation
Chiba Styrene Monomer Ltd., TOYO STYRENE Co., Ltd., Taiyo Vinyl Corp.

1 PRTR substances: Excluding those from TOYO STYRENE Co., Ltd. and Taiyo Vinyl Corp. inside the Chiba Plant
2 Waste generated: Excluding that from TOYO STYRENE Co., Ltd. inside the Chiba Plant(Tons)(Tons)

5,000

6,000

5,900
5,520

4,300

5,000

4,000

4,900

5,680 5,670

5,200Target5,010
4,470 4,330

4,000
3,040 3,040

3,000

4,240

4,044

4,266

2,870

3,000

Explanation of Input
쑺 Fuels are the sum of all fuels used at each production
site, converted into crude oil equivalents on a calorie
basis. They include fuels for in-house power plants.

18

DENKA CSR REPORT 2013

Explanation of Output
쑺 CO2 emissions from energy sources represents
emissions from in-house fuel production and fromelectricity purchases. CO 2 emissions from nonenergy sources cover mainly that portion that isderived from raw materials.

쑺 COD is the BOD discharge into rivers converted into
COD values.
쑺 External waste recycling covers materials converted
externally into resources or fuel.
쑺 Final disposal refers to material buried on Company
premises or at external landfill sites.

2,080

2,000

2,000

1,740
1,440

1,000

870

Target
260

217

116

64

10

11

12

13

0

90

03

04

05

06

07

08

09

1,000
0

(FY)

90

03

04

05

06

07

08

09

10

11

12

13

(FY)

DENKA CSR REPORT 201319

Sustainability for the Next 100 Years

Soot and Dust

Final Landfill Waste

Streamlining Logistics to Save More Energy

Installation of Automated Constant Temperature Storage

The emissions decreased approximately 30% compared with fiscal

In fiscal 2012, we cut final landfill waste approximately 30% year on

Response to the Law Concerning the Rational Use of Energy

At our Omi Plant, we installed a large automated constant tempera-

2011 thanks to the replacement of the exhaust gas filters at the Omi

year thanks to ongoing efforts at each plant. The Omi Plant’s

As a designated shipper,* we are dedicated to enhancing theture storage facility for chloroprene rubber that came fully online in

Plant’s calcium carbide production facilities. For fiscal 2013, we

cement production facilities have made particular contributions toefficiency of the transportation and storage of products while con-2011. The expansion of the plant’s product storage capacity allowed

expect soot emissions to increase with an upturn in the cement

this reduction through an improvement in the internal recycling rate.

stantly striving to improve the quality of our logistics operations for

us to better utilize the nearby ports, and now approximately 50% of

production volume. We will seek emission reduction through such

Consolidated emissions improved from 0.17% to 0.07%, maintain-

greater customer satisfaction.

the Omi Plant’s products for export are shipped from Fushikimeans as facility improvement.

ing the status of zero emissions (DENKA’s definition*).

In particular, following the enforcement of the Revised Law* Amount of final landfill waste/Amount of waste generated × 100 < 1(Tons)

300

Toyama Port and Naoetsu Port. As a result, we substantially reduced

Concerning the Rational Use of Energy, we have promoted ongoing,

logistics-related CO2 emissions and distribution costs as comparedacross-the-board energy saving activities involving such bodies as

to those generated by the previous distribution flow, which involved

the RC Promotion Committee and logistics sections at each plant,

transporting most of the plant’s output to Yokohama Port by truck.

297(1,000 tons)

40

250

with the Logistics Department spearheading the effort.

37.5

200

191

150

Under the DENKA100 initiative, in fiscal 2012 we began an

30

172
147

142

128

117

123

111

100

exhaustive review of the existing distribution structure with the aim

Target149

149

of further enhancing logistics efficiency. Specifically, we are consid-

20

93ering such measures as modal shifts while taking steps to improvethe utilization rate of storage facilities, for example by integrating

50
10
6.8

0

4.6

90

03

04

05

06

07

08

09

10

11

12

13

(FY)

4.9

2.9

2.9

06

07

08

0

90

03

04

05

warehouses. By eradicating redundant energy use and wasted

Target
3.7

0.5

0.3

0.2

0.2

0.2

09

10

11

12

13

space in existing logistics operations, we seek to comprehensively
In fiscal 2012, although the Company’s total transportation

COD (BOD)

volume was 533 million t-km, up 2.2% compared with fiscal 2011,

The emissions decreased approximately 19% year on year thanks to
the introduction of an anaerobic wastewater treatment process at

Fiscal 2012 PRTR Substance Emissions and Transfers

we were able to cut energy consumption intensity 1.7% year on

the Omi Plant’s POVAL production facilities. In fiscal 2013, although

The following table shows PRTR registered substances emitted andyear and managed to keep the CO2 emission volume to the samean anticipated production rise will result in the increase of COD

transferred in amounts exceeding one ton.

level as the previous fiscal year.

(BOD) emissions, we will strive to keep numbers down by further

Units: tons (excluding dioxins)

reinforcing wastewater treatment facilities.

Emissions

PRTR substances

Air

Water

Soil

AmountLandfill Total transferred(Tons)

n-Butyl acrylate

0

0

0

0

0

2

4,000

Acrylonitrile

2

0

0

0

2

9

Acetaldehyde

2

10

0

0

12

0

3,570

Inside the automated constant temperaturestorage facility* Designated under the Law Concerning the Rational Use of Energy: Business
operators whose annual transportation volume exceeds 30 million t-km are
obligated to fulfill specific requirements under said law.

Energy Saving Status(FY)

the Omi Plant. Since its opening in 1973, approximately ¥60 billion
2010

2011

2012

831,227

618,865

605,609521,131532,709

Japan’s Ministry of Land, Infrastructure, Transport and Tourism, a

0.02170.02400.02390.02500.0246

terminal development project is currently under way to accommo-—

110.3%

99.6%

104.8%

98.3%

date larger-size cargo vessels.

48,30039,50038,50034,70034,800

0

0

0

0

0

15

Ethyl benzene

3

0

0

0

3

38

Energy consumption intensity*

Ferric chloride

0

0

0

0

0

32

Change from fiscal 2011

TargetVinyl acetate

17

0

0

0

17

0

CO2 emissions (t-CO2)

1,293

Cyanamide

0

0

0

0

0

3

* Crude oil equivalent divided by cargo volume

N,N-Dimethylformamide

0

0

0

0

0

16

Styrene

18

0

0

0

18

107

Water soluble copper salt

0

5

0

0

5

0

1. Strengthening Logistics Safety

Toluene

28

1

0

0

29

32

To enhance safety of on-premises distribution at plants, staff mem-

Hydroquinone

0

1

0

0

1

0

bers selected from each plant conduct mutual inspection tours,

PRTR Substances

Fluorine compound

1

0

0

0

1

16

making the rounds throughout all plants to identify problems andIn fiscal 2012, the Company sought to decrease emissions of PRTR

n-Hexane

0

0

0

0

0

3

Boron and boron compounds

0

10

0

0

10

10

2-Ethylhexyl methacrylate

0

0

0

0

0

1

Methyl methacrylate

2

0

0

0

2

11

of the product mix. A year-on-year reduction in PRTR substance

Total (tons)

73

27

0

0

100

296

from our plants and affiliates with specialized training programs

emissions as a percentage was approximately 25%.

Dioxin (mg-TEQ)

37

97

0

0

134

0

covering such subjects as the basics of distribution, inventory man-

2,000
1,460 1,480

1,670 1,630

1,600

1,350

1,295

1,000

991

1,120
864

0

03

04

05

06

07

08

09

10

11

12

13

(FY)

substances to 88 tons through a reduction in the use of toluene.
However, we failed to meet the target due to such factors as nature

DENKA utilizes Himekawa Port for unloading raw materials used in2009

Aniline3,000

Promoting the Utilization of Himekawa Port

2008

Transportation volume(1,000t-km)

90

Loading of products onto containers

strengthen our logistics capabilities.

(FY)

has been invested in developing the port and, under the initiative of

The Logistics Ability Enhancement Project

Cargo handling at Himekawa Port

discuss countermeasures with the people on-site.
2. Capacity Development for Logistics Operations
For six months in fiscal 2012, we provided distribution operators

Promoting the Exhaustive Review ofLogistics Operations
Yoshihiro Ishikawa, General Manager,
Logistics Dept.

agement and problem solving.
(Tons)

In line with the latest phase of DENKA100

1,000

launched in April 2013, we began compre-

862

800

hensive reviews of distribution costs, aiming to achieve management targets for

600

fiscal 2017. The Logistics Dept. spear490

400

heads the across-the-board efforts to solve problems faced by
363

DENKA’s distribution segment and enhance logistics efficiency. As
242

200

232

Target

210
143

136

122

139

103

95

0

90

20

03

04

05

DENKA CSR REPORT 2013

06

07

08

09

10

11

12

13

WEB

Information on our responsible care activities, ISO 14001 management
system, utilization of environment and energy-related subsidies and environmental accounting is available on pages 2, 7, 12 and 13 of the DENKA
CSR Report 2013 References (PDF format) posted on our website.

we push forward reforms to streamline our logistics operations, we
Logistics safety inspection tour

seek to strengthen our logistics capabilities throughout the Group.
Training session for distribution operators(FY)

DENKA CSR REPORT 201321

Initiatives to Secure Our Electricity Supply

Sustainability for the Next 100 Years

Initiatives to Secure Electricity Supply andAugment In-House Generation Capacity

Mega Solar Power Generation

Because of the energy-intensive nature of the chemical industry,

energy, DENKA established mega solar power generation facilities atsince its founding DENKA has considered not only the securing of

its Shibukawa and Isesaki plants. With a combined maximum output

the electricity supply but also energy saving and the reduction ofof 3.2MW from the two facilities, we expect an annual power gener-

environmental burdens to be essential management issues. To theation amount of 3,600,000kWh. We commenced sale of electricity

present day, DENKA has focused on these issues as preconditions

to Tokyo Electric Power Company in July 2013.

of its sustainable operations.

Taking an Environment-Friendly Approach to Securing
Vital Resources for Our Operations, We Are Promoting
the Use of Clean Energy Sources Centered on
Hydroelectric Power Generation.

In response to the enactment of the feed-in-tariff law for renewable

Also, in October 2012, DENKA began leasing a portion of land it

DENKA has one of Japan’s largest hydroelectric power genera-owns in Tomakomai City, Hokkaido, to Mitsui Fudosan Co., Ltd. withtion networks privately owned by a chemical company. While striving

the aim of providing sites for mega-solar power generation business.

to exploit this valuable asset, we are seeking to augment the power
generation capacity of our hydroelectric power plants. To this end,
we are constantly upgrading power generation facilities and technologies for the more efficient use of water resources. We are also
looking to establish a new hydroelectric power plant.
In addition, we are proactively introducing biomass power generation and cogeneration facilities, which are highly effective for energy
saving and the reduction of environmental burdens, while proceedingwith the construction of mega solar power generation facilities.

Expanding the In-House Power Generation Ratio
While Further Utilizing Clean Energy*

Initiatives in Hydroelectric Power Generation
Since its founding, DENKA has been establishing its own hydroelec-

cleaner energy and reduce the burdens they put on the environ-

DENKA uses electricity generated by 15 hydroelectric power plants,

tric power plants in order to secure a stable electricity supply.

ment. DENKA is acting proactively to fulfill these demands andwhich include five that are jointly owned, three thermal power plants

Currently, DENKA owns one hydroelectric power plant along the Omi

thereby establish an even stronger operating base.

and a cement waste heat recovery power plant** as well as pur-River system, five along the Himekawa River system and four alongchased electricity. The in-house power generation ratio is approxi-

the Umikawa River system. In addition, Kurobegawa Electric Powermately 56% of total electricity use.

Company, which was jointly established by DENKA and Hokuriku

Hydroelectric power generation accounts for 32% of DENKA’s
electricity use, making it an essential electricity source. This clean

Electric Power Company, maintains five hydroelectric power plants.
The total maximum output of all these facilities is 114,650kW.
The run-of-river type hydropower generation system employedenergy source not only makes a significant contribution to the
reduction of CO2 emissions, it also offers a stable electricity supply.

Society today is increasingly demanding that companies use

at our in-house hydroelectric power plants uses the momentum ofAt thermal power plants, we have been changing over the fuelwater drawn from a river and flowing downward through a conduit.

used from heavy oil to natural gas in an initiative to reduce CO 2

As the flow of water is very strong, the facilities of this type are sub-emissions. In addition, we have improved the efficiency of naturalject to severe abrasion, making constant maintenance necessary.

gas power generation by adopting cogeneration*** facilities.

Moreover, these plants occasionally suffer extensive damage due to* Clean energy: Energy from sources that emit no or very small amounts of air
pollutants, such as CO2 and NOx when used** Cement waste heat recovery power plant: A power generation facility using
waste heat from cement factories*** Cogeneration: A system using waste heat generated from gas turbine
power generation that simultaneously produces steam

mudslides while requiring periodic inspections and snow removal in

Hayakawa

Total generated in-house

2

32%
44%

12

each hydroelectric power plant, we will consider the possibility ofbuilding a new hydroelectric power plant.
Mr. Sadaji Akutsu (right), the mayor of Shibukawa City, and Mr. Shinsuke Yoshitaka(left), president of DENKA, shaking hands at the completion ceremony

Shuichi Hirai, General Manager,
Electric Power Dept., Technology Div.

DENKA’s annual electricity consumption is
as much as 1,800 million kWh, an amount11

comparable to that used by 500,000
13(clean)Cement waste heat recovery power2%(clean)22

river ecosystem. While conducting surveys on the water intake of(clean)22%0%increased only during high-water season and will not impact the

Nechi
Kotaki

4
Hiraiwa

Thermal power (natural gas)

Thermal power (heavy oil)tion amount by approximately 3,500,000kWh. Water intake will be

7

HydroelectricTotal
consumption
1.78 billion
kWh8,400kW to 9,800kW. This boosted the total annual power genera-

856%Electricity purchased

raised the maximum output of its Otokorogawa Power Plant from

14

Kubiki-Ono 10
9Oyashirazu
1

DENKA obtained permission to increase its annual water intake andStepping up Electric Power Generation
That Utilizes Clean Energy Sources

Himekawa

Power Sources in Fiscal 2012

In fiscal 2012, after gaining the understanding of local residents,

Kajiyashiki

Umikawa

Omi

Power Plant

In winter, transmission lines are checked using helicopters.

Itoigawa
Omigawa

Increasing the Power Generation Capacity of Otokorogawa

Maintenance and Management of Power Plants

winter because of their locations in heavy snowfall areas.

DENKA Solar Power Shibukawa

1
2
3
4
5
6
7
8

Omigawa Power Plant(3,300kW)
Kotakigawa Power Plant(4,200kW)
Oami Power Plant(25,900kW)
Otokorogawa Power Plant(9,800kW)
Yokokawa Power Plant No. 1 (10,000kW)
Yokokawa Power Plant No. 2 (16,000kW)
Umikawa Power Plant No. 1 (3,800kW)
Umikawa Power Plant No. 2 (4,700kW)

3

households over the same time period.

5
6

Taking this into account, we are changing
over from heavy oil to natural gas at our thermal power plants to15

reduce CO2 emissions and are increasing the capacity of clean

Kitaotari
Kita-otari

power facilities, especially our hydroelectric power plants, where

9 Umikawa Power Plant No. 3(2,600kW)
10 Umikawa Power Plant No. 4(900kW)
11 Himekawa Power Plant No. 6* (26,000kW)
12 Takigami Power Plant*(15,000kW)
13 Nagatsuga Power Plant*(5,000kW)
14 Sasakura Power Plant No. 2* (10,200kW)
15 Kita-otari Power Plant*(10,700kW)

we are enhancing efficiency and increasing water intake. In fiscal
2013, we also commenced solar power generation. Looking
ahead, we will continue to proactively utilize environment-friendly
energy sources.

* Jointly owned with Hokuriku Electric Power Company

The total maximum output of DENKA’s in-house power generation: 114,650kW
DENKA CSR REPORT 2013

DENKA CSR REPORT 201323

Recycling Business in Cement Production

Sustainability for the Next 100 Years

Overview of Recycling System
Wastes and byproducts
Coal ash

Limestone

Foundry sandClay

The waste material recycling business at the Omi Plant involves the

SilicaWaste plastic

Gypsumbyproducts

Waste oil

Blast furnace slag

SludgeCementIncinerator ash

Dryer andraw materials
grinder

Construction soil
Ironmaterials

Volume of Waste Accepted
In-house sources

Amount processed(thousands of tons)

Fly ashWaterworks sludge

Raw materials

By Proactively Accepting Waste Materials,
We Are Striving to Protect the Environment
While Securing the Sustainable Development of
Our Cement Business.

Waste Material Recycling Business in Cement
Production

Used tires

Waste accepted
per unit of production(kg/ton)Waste accepted
per unit of production

External sources

600

1,000

560

utilization of coal ash from thermal power stations, waste soil from

Slag

Wood chips

Rotary kiln

Finishing mill

Biomass
boiler for
in-house
power
generation

Fiscal 2012 Topic

regarding the processing of waterworks sludge with Itoigawa City

Accepting Sludge from Niigata City’s Water Worksand started accepting the sludge on January 9, 2013.

The Great East Japan Earthquake resulted in the amassing of a sub-In relation to this move, DENKA is undertaking a variety of sur-stantial amount of debris in disaster-stricken areas. Moreover,veys and measurements and disclosing the results to citizens of

because of the nuclear accident that broke out at the Fukushima

Itoigawa City through the Itoigawa Municipal Office. We are also

Daiichi Nuclear Power Station following the earthquake, the pro-posting data on radioactive concentrations in cement products on

cessing of this debris has come to entail the treatment of waste

our website.* Airborne radiation information and data on the radio-

904

construction sites, sludge from waterworks facilities and waste sandsludge that may be radioactive. The Japanese government request-

active concentrations measured inside and around the Omi Plant arefrom die-casting foundries as raw materials for cement. The plant

ed member companies of the Japan Cement Association to ensure

available on the Itoigawa City official website.

also receives recycled oil, waste plastic and scrap wood for use as

the steady acceptance of such waste materials, including radioac-* http://www.denka.co.jp/cement/ (the Cement Department’s website; measurement results are available only in Japanese)

480

800

600

fuel sources.

360

624

In fiscal 2012, DENKA used 560 kilograms of recycled materials
for every metric ton of cement produced. Moreover, DENKA began

asked by several public water suppliers in Niigata Prefecture, includ400

240

to accept automobile shredder residue (ASR) to contribute to automobile recycling.

ing Niigata City, to cooperate in the processing of sludge generated
through water purification process. From the perspective of social

200

120

From the perspective of social contribution, in 2013 DENKA also

contribution, we decided to accept such sludge at our Omi Plant
following discussions with the local government body in Itoigawa

280

began accepting sludge from water purification facilities, on theCity, where the plant is located, on the condition that it meets a00condition that it meets the clearance level for radioactivity (below

03

04

05

06

07

08

09

10

11

12

clearance level of radioactivity of below 100Bq/kg, putting the(FY)

100Bq/kg), from Niigata City and other municipal bodies.
Going forward, we will proactively expand our facilities’ waste

tive sludge, for cement production. At the same time, DENKA wasutmost priority on the safety of local residents and our employees.
Breakdown of Waste Accepted in Fiscal 2012

On December 20, 2012, we entered into a basic agreement

Dryer and raw materials
grinder (raw material mill)

Finishing mill (cement plant’s ball mill)processing capacities as well as the types of waste materials we
accept. Simultaneously, we will strengthen cooperation with diverse
businesses that emit waste materials and local government bodies
to help realize a recycling-oriented society.

10%

4%

 Sludge

31%

8%

22%

 SlagAppreciation for DENKA Waterworks Sludge
Recycling BusinessAccepted Fly ash

Mr. Junichi Tsuchiya, Deputy General

Yoshihiro Ishikawa, Manager,

904,000

 Construction soilManager, Management and Planning Section,

Resource Recycle Promoting Section,

 Waste oil and plastic
and wood chips

Niigata City Waterworks Bureau

Cement Department

 Other

Ensuring environment-friendly operations isGiven its limited land area and natural

one of the goals of the Waterworks

resources, it is essential for Japan to mini-

Bureau. To achieve this goal, we sought tomize waste going to landfills and to seek

tons
24%

Used tire processing facility

utilize waterworks sludge as soil for horti-

methods of effective reuse. Our cement

cultural use and other applications. However, we have not been

business is turning such waste materials into valuable materials

able to reuse such sludge since the nuclear accident inand fuels for making superior recycling-oriented products.

Fukushima and have been forced to store it on the water purification facilities premises.

Coal ash silo

24

DENKA CSR REPORT 2013

Recognizing Our Cement Business’s
Social Responsibility

DENKA is one of the few cement companies with a plant on
the coast of the Sea of Japan. Looking ahead, we will strengthen

We are therefore deeply grateful for the cooperation ofcooperation with local communities as we expand our capacity to

Itoigawa City and its citizens as well as for DENKA’s decision toaccept recycling resources in order to further contribute to a

accept waterworks sludge and utilize it as a cement material.

recycling-oriented society.

Biomass boiler in cement plant

DENKA CSR REPORT 201325

With Our Stakeholders

Initiatives with Employees
New Personnel System to Encourage People to Take on New Challenges

Developing Comfortable Workplaces

Employing People with Disabilities

Diversity

We are creating safe workplaces so that people with disabilities can

DENKA recognizes that respecting the individuality of each person

realize their full potential. In fiscal 2012, the percentage of employ-

and allowing them to realize their full potential will, in turn, bolster theees with disabilities stood at 2.10%, exceeding the statutory

Company’s growth and development. Accordingly, we are actively

employment rate.

As a part of our human resource strategies to achieve the goals of DENKA100, we revised

pursuing diversity promotion initiatives. For example, we are proac-

our personnel administration system in fiscal 2012. Amid a rapidly changing businesstively hiring female employees and foreign students. We have set a

Work-Life Balanceenvironment, we seek to nurture a corporate culture that motivates people by setting hightarget of making female workers account for 20% of the new special-

Giving due consideration to the need to balance work and private

targets and rewarding those who proactively take action and take on new challenges.

ists recruited every year. As a result, 11, or 24.4%, of the 45 special-life, we are striving to develop comfortable workplaces and ensure

To this end, we abolished both the practice of seniority-based promotion and a personnel

ists hired in fiscal 2013 were female. As for the recruitment of foreign

healthy working styles by eliminating excessive overtime andmanagement system based on fixed job categories.

students, in fiscal 2013 we welcomed two new graduates from China

encouraging the full use of annual paid leave. Moreover, all employ-

Specifically, the new personnel system allows people to change their job category

and Taiwan and recruited another Chinese national as a mid-career

ees are allowed to take paid leave on a half-day basis, while the staff(the “Job-Category Transfer System”) and incorporates an education system aimed atrecruit. Moreover, we began having manager candidates who wereat Headquarters and branches are encouraged to leave work on

imparting advanced skills and techniques (the “Engineers’ Skill Improvement Plan.”) We

recruited in Singapore undergo long-term training in Japan.

time every Wednesday, our “No Overtime Work Day.”also established a remuneration system with greater emphasis on performance-based

In addition to childcare and nursing care leave plans, we estab-evaluations. As for managers, we shifted the focus of their competence evaluations to their

Reemploying Retirees

lished a volunteer leave plan that allows people to engage in volun-

leadership capabilities, drive to take on new challenges and ability to develop their staff.

Against the backdrop of the rapid graying of Japan’s population, inteer activities in disaster-stricken regions. In fiscal 2012, two people

In these ways, we are creating a personnel system that places greater value on nurturing

2006 DENKA introduced a program to rehire retirees who have supe-took leave under this plan. In this way, we are assisting those who

next-generation human resources who can proactively think and take action.

rior technological knowledge and skills. By allowing them to work

are keen to contribute to society.

even after mandatory retirement age, we aim to facilitate the transfer

Also, we set up a 24-hour telephone healthcare consultationof their skills and expertise to younger employees. In response toservice for employees and their families, using an external special-

the April 2013 revision of the law pertaining to the employment ofized institution.

Kenji Nakano

the elderly, we also implemented various revisions in the personnel

Representative in China, Executive Officer in charge of Secretary Dept.,

system with the aim of encouraging a greater number of new retir-

Initiatives with Labor Unions

Administrative Dept., Legal Dept., HR Dept., DENKA100 Promoting Dept.

ees to return to employment, reemploying 88% in fiscal 2012.

Management maintains positive relationships with employee organizations, regularly meeting with officials of The Denki Kagaku Labor

Retiree Reemployment Rate
(Persons)

Nurturing Globally Capable Human Resources

100

Union and The Head Office Labor Union in an atmosphere of mutual
Rate of reemployment (right)

Number of mandatory retirees (left)
Number of persons reemployed (left)
99
90%

Enriching Overseas Training Programs for Younger Employees
DENKA100 has set the target of achieving a ratio of overseas sales

80

81%
75

secure human resources with superior communication skills and the80

to create a better workplace.

60

Other Initiatives

56

ability to accurately perceive the diverse needs of customers world-

DENKA’s fiscal 2012 personnel system revisions aim to increase49

wide. DENKA will therefore further enrich its overseas training pro40

grams, targeting mainly younger employees.

in a year, and are open to holding other meetings and negotiations

75

78
63

60

good faith. We hold regular meetings with these bodies three times
as needed. DENKA and labor unions are thereby working together

88%

83

76%

to net sales of 50% or greater. To expand globally, we need to

(%)

100

40

people’s motivation to work and their drive to take on new
challenges, thereby helping them realize their full potential. In addi-

From left: Denka offices in New York, Singapore and Shanghaition to the aforementioned “Job-Category Transfer System” and the
20

20

0

0

Voices of Trainees“Engineers’ Skill Improvement Plan,” we introduced an in-house“Meister Certification System” to accredit employees who have

26

Gaining Greater Awareness ofLearning the Secret of China’s

Overseas Operations

Development

Her Ryun

Kazutoshi Tatebayashi

Elastomers & Acetylene Black Dept.

Housing & Environmental Materials Dept.

Although many consider language to

My four weeks in Shanghai were full of

Sayaka Shima

before I had my daughter. I often find it hard to work the hours I

merely be a tool, during my overseas

discoveries and surprises. As I stood on a

Styrene & Acetyl Chemicals Dept.,

used to because of such demands on my time as taking mytraining in the United States I realized thatstreet amid sweltering heat, listening to

Elastomers & Performance Plastics Div.

daughter to her day-care center, picking her up from there andreal communication exists only where there is a certain level ofthe conversations of the people around me and blaring car horns, it

language skill. Also, experiencing life as an expatriate made me

suddenly hit me that I was in a truly “foreign” land. On the other

I left the workplace for a year using themanage thanks to the Company’s flexible attitude. I am always

recognize that I was very naïve about how things work overseas.

hand, when accompanying my senior colleagues on their sales

childcare leave system. Being able to see

thankful for that.

Exposed to real-life situations in the U.S., I regretted my pastrounds, I was impressed that many of the people I met weremy daughter growing bigger every day

ignorance about how refreshing and inspiring such experienceextremely hardworking and treated me with courtesy and kindness.

can be. One month in overseas training provided me with much to

I was glad to meet these people who are at the forefront of thethink about.

rapidly developing Chinese economy.

DENKA CSR REPORT 2013

2009

2010

2011

2012

distinguished skills.

(FY)

DENKA Helped Me Grow as a Professional and as a Mothertaking care of her when she gets sick. However, I am able tohelped me to grow as a mother.
I am grateful that I was able to return to the place I worked at

I want to devote my best efforts to work, so that I not only better contribute to the Company but also set an example to encourage those who want work at DENKA while raising their children.

DENKA CSR REPORT 201327

With Our Stakeholders

Employee Education

Plans for Fiscal 2013

Good Company Program (GCP) Activities

In line with the DENKA100 corporate philosophy and our CSR• Enriching first-year training programs for new employees (e.g.,Comprising one of the six pillars of DENKA100, GCP activities

vision, we are implementing the human resource policy presented

extending the training period)

involve organizational CSR activities aimed at the creation of abelow under the initiative of the Human Resource Development• Having employees undergo e-learning after mandatory job level-“Good Company,” with all departments across the DENKA Group

Center, which revises the content of human resource development

based training sessions to help them adopt what they learned atparticipating. Each department formulates its own theme for initia-

programs every year.

these sessions

tives to raise employees’ awareness and improve daily operations,• Introducing special-purpose education programs (e.g., leadershippresenting the results of such initiatives at meetings held every six“Nurturing people who have the ability, motivation and energy to excel

training for technological specialists and training on formulating

months. The results are evaluated by the evaluation committee andin today’s highly competitive and rapidly evolving business environment”

career plans)

GCP prizes are awarded for excellence.

• DENKA’s Policy for Human Resource Development

Branches/
Offices

Main Activities

Osaka
Hiroshima
Shikoku• Sales Capability Improvement Committee (training on the proper attitude
for sales personnel as well as on relevant laws and regulations and ICT
systems, holding study sessions on products and improving hospitality)• West Japan Disaster Prevention Team (preparing disaster responsemanuals, rehearsing the confirmation of employee’s safety andimplementing disaster drills)• Improving worksite environment and issuing an in-house newsletter Tonari
no Shibafu (The Grass Is Always Greener)

Nagoya• Revising disaster response standards that postulate a major earthquake
hitting the Tokai region and preparing disaster response manuals• Holding networking meetings to share information on DENKA’s automobilerelated products• Managing farmland for testing the fertilizer AZUMIN(cultivating spinach, carrots, onions, radishes and bok choy)• Implementing human resource development initiatives, saving energy andholding training sessions on safe driving techniques

Fukuoka• Holding product presentation meetings, lectures and plant tours andimplementing initiatives to improve daily operations• Participating in the “Safety Challenge 100 in Hakata” traffic safety initiative

Niigata• Preparing disaster response manuals, securing three days’ worth of
emergency supplies, holding a lifesaving course and evacuation drills• Inviting ex-employees to give lectures, holding cleanup activities at Niigata
Port and collecting PET bottle caps

Hokuriku• Holding study sessions on products and networking meetings to which
external delivery operators at cement stations and distribution bases areinvited• Issuing a newsletter themed on the economy, sightseeing spots andgourmet eating in areas adjacent to the Hokuriku bullet train route

Sapporo• Implementing cleanup activities in Sapporo City in line with a municipal
program that encourages volunteer cleanup activities• Implementing initiatives to improve daily operations, encouraging tidying up
and participating in the “Safety Rally” traffic safety initiative hosted by
Hokkaido Prefectural Police

TohokuAkita• Holding study sessions on products, implementing cleanup activities andparticipating in the Miyagi Prefecture’s “Safety 123” traffic safety initiative• Cleaning the statue of Dr. Tsuneichi Fujiyama* in Sankyozawa, Sendai City
* The founder of DENKA, who became the first in Japan to develop and apply
the calcium carbide mass-production method• Ideal for DENKA’s Human Resources“People who can proactively think, learn and take action to over-

Fiscal 2012 Topics

Fiscal 2012 GCP Activities Undertaken by Each Branch andcome challenges while maintaining an earnest attitude toward

Overseas Training Program for Second-Year Employees

Sales Officeenhancing their potential through their duties and self-development”

As the Company expands globally, it is increasingly essential for

DENKA’s seven branches in Osaka, Nagoya, Fukuoka, Niigata,

To realize the ideal presented above, we have developed four

DENKA employees to maintain the drive to move forward and take

Sapporo, Hokuriku and Tohoku and three sales offices in Hiroshima,human resource development program categories: mandatory jobon the challenge of new living and business environments in coun-

Shikoku and Akita are engaged in GCP activities.

level-based training, specialist courses, the DENKA Techno School

tries overseas. Such assignments require communication skills thatAt the branches and sales offices, because often each staff

and in-house symposia. Moreover, in fiscal 2013 we introduced aenable them to proactively negotiate with people who speak differ-member is assigned a highly specialized product or task, they holdnew category, special-purpose education.

ent languages.

frequent internal study sessions aimed at facilitating the mutualWith these needs in mind, in fiscal 2012 we launched an over-understanding of their duties. Also, branches and offices engaged inseas training course that entails a four-week overseas assignment toregional sales activities tend to implement GCP activities focused on

1. External Training Sessions for Executive Candidates

a city or country abroad, namely, Singapore, Shanghai or New York,

traffic safety, as they often use company vehicles to cover large

We began having executive candidates in managerial or higher posi-

and is mandatory for all administrative specialists who have been atsales areas, and disaster prevention, taking lessons from earth-tions participate in external training sessions. Each month, we rotate

DENKA for two years. The participants in first round of this program

quakes and flooding suffered in the past.

a few of them through training camp-style programs that bringwere 11 employees. While learning the local language, they accom-

together people from different companies so that they can develop

panied senior expatriates on visits to local business partners andtheir communication skills and ability to effect change.

production sites and were given opportunities to see the front-lines

2. Practical Training Program with External Specialistsof DENKA’s business in those countries. We hope that this exposure

We revised our training program for newly appointed managers. The

to diverse cultures and need to communicate in foreign languages

new program invites external specialists to give lectures accompanied

will help them grow to perform successfully on the global stage in the

New Initiatives in Fiscal 2012by practical training with an emphasis on hands-on experience as wellfuture. (Comments from the participants are presented on page 26.)

as group discussions, role-playing and psychological assessments.

Holding product presentation meetings and plant tours
Sessions
Traffic Safety
Activities

at DENKA’s and Group subsidiaries’ production sites
Participating in traffic safety events and training sessions hosted by police departments and traffic safety
associations

DisasterPrevention

Preparing disaster response manuals and implementing disaster drills

3. Training Program for Incumbent Managers
We introduced a training program for incumbent managers themedon strategic thinking, the creation of a vibrant workplace and business innovation.
4. Overseas Training Program for Younger Employees
We launched an overseas training program for younger employees.

Lecture at a businesssite in Singapore

With regard to administrative specialists, all those who have beenat the Company for two years are sent on four-week overseas

Holding Technological Symposia

assignments in Shanghai, Singapore or New York. This gives themWith the aim of sharing information on the latest technologies andthe opportunity to acquire overseas business experience while

market trends, in fiscal 2012 we began holding technological sympo-

exposing them to the realities of living overseas.

sia, gatherings of DENKA Group engineers who engage in R&D

5. Mental Health Training Sessions

activities and production technology development. By providing them

Mental health training sessions are already conducted at each plantwith a forum for sharing their research and development efforts, we

An Example of Unique GCP Activities

and we began holding such training sessions at other business sites,

aim to facilitate the exchange of opinion among researchers andTonari no Shibafu (The Grass Is Always Greener) Newsletter Compiled by Branchtargeting all Group employees, including those who are seconded tothereby strengthen our technological capabilities as an organization.

With the aim of facilitating mutual understanding among the branches and sales office staff, theNagoya Branch: Hilling at the fertilizer testing farmland; cultivating various types of vegetables to test
our fertilizer products

Niigata Branch: Confirming the emergency
supply stock

Tohoku Branch: Cleaning the statue ofDr. Tsuneichi Fujiyama in Sankyozawa !"#$%&'()*+,-./01$%&'()


23456





 

affiliates, in our efforts to develop a healthy working environment.

newsletter is compiled in-house by staff at the Osaka Branch and the Shikoku Sales Office. The
newsletter features such articles as “Getting to Know the Department Next Door,” “Introducing a
Newcomer” and “Landmark” which introduces local sightseeing spots. Although nearly 60 peo-





 






=>?

ple work at the Osaka Branch and each is in charge of a different product, the newsletter helps
facilitate mutual understanding and a sense of unity.

7

7
!89:;<

Tonari no Shibafu is a sister publication to Shikoku Tsushin SKI88, a newsletter compiled bystaff at the Shikoku Sales Office since fiscal 2010 to spotlight the region’s unknown specialties.
A training session for
new employees

28

DENKA CSR REPORT 2013

Technological symposium at DENKA’s Headquarters (January 23, 2013)

DENKA CSR REPORT 201329

Initiatives at Supply Chain

With Our Stakeholders

Giving Due Consideration to Product Life Cycles,

Product Safety Management Flowchart

We Strive to Reduce Environmental Burdens,Working in Concert With the Entire Supply Chain.
CSR Procurement and Green Procurement

Establishing CSR Procurement Policies and Guidelines

Under the DENKA Group Guidelines, which were formulated as the

In concert with the establishment of the CSR Procurement

basic policies for our CSR initiatives in 2007, we are striving toCommittee in 2013, the DENKA Group formulated its CSR

ensure just and fair procurement that gives due consideration to

Procurement Policies based on the DENKA Group Guidelines withcompliance, environmental conservation, human rights, occupational

the aim of clarifying its approaches to CSR procurement.

5. Outsourced
Processing
and Production

2. Raw Materials
Green Procurement
Purchasing specifications

1. Development
Verify raw material safety
and required quality level/
Production process design

3. Outsourced
Raw Materials
Production

Vendor audits

4. Production

7. Products

8. Logistics

9. Customers

ISO 14001, ISO 9001
and Good Manufacturing
Practices (GMP)

Management ofenvironmentally hazardous
substances (Negative List)

Emergency
Response Cards(Sheets & Labels)

SDS, MSDSplus
and AIS

Vendor audits

6. Disposal
Waste contractor audits* Please also see page 4 of the DENKA CSR Report 2013 References (PDF format) posted on our website for further detail.

Future Initiatives

safety and health, security and disaster prevention at worksites andMoreover, DENKA established the CSR Guidelines to communi-

contribution to society. In fiscal 2013, we established the CSR

cate its CSR Procurement Policies with suppliers whose coopera-

To step up the promotion of CSR procurement, plans call for using

Procurement Committee in order to step up our CSR-oriented pro-tion is essential for promoting CSR procurement throughout thequestionnaires targeting suppliers with the aim of benchmarking

curement initiatives, expanding their scope to involve not only the

supply chain. Suppliers that meet Guidelines’ conditions are eligible

them in accordance with criteria set forth in the CSR Procurement

Group members but also our supply chain as a whole.

for preferential selection.

Guidelines as well as providing suppliers with feedback about how
we evaluate their CSR initiatives.

The CSR Procurement Policies
1. We will maintain respect for human rights while striving to improve the workplace environment and occupational safety and health.
2. We will pursue environment-conscious procurement, striving to secure safety and to reduce our impact on the earth’s environment.
3. We will undertake procurement activities based on compliance with relevant laws, regulations and corporate ethics.
4. We will purchase raw materials and equipment and consign construction work by comprehensively taking into account such factors
as quality, prices and delivery time as well as suppliers’ technological capabilities, supply reliability and their environmental conservation initiatives.
5. We will sincerely engage with our suppliers and treat them as important business partners, fostering mutual understanding and trustworthy relationships with them through fair business transactions.
6. We will not accept from our suppliers nor provide them with any gifts or entertainment of value that are deemed in excess of social
norms or of an inappropriate nature.
7. We will not divulge any non-public information acquired in confidence from our suppliers in the course of procurement activities whileproperly managing and protecting their intellectual property rights.
8. We will maintain an equal partnership with all suppliers and provide them with equal opportunities for competition in a fair manner.

Status of Green Procurement Initiatives
We believe that good products are made only from good raw mate-

Chemical Substance and Quality Management

rials and through appropriately designed and controlled processes.

Fiscal 2012 Companywide Quality Policies

We also recognize that upstream management is basic to controlling

1. Ensuring a strengthened response to product liability (PL) andhazardous substances. With these in mind, we are clarifying the

2. Improving quality assurance levels Companywide

upstream management aimed at securing quality assurance and

3. Enhancing technologies to ensure built-in quality

compliance with laws and regulations.

4. Raising awareness of employees engaged in manufacturing

Prior to procurement, we agree with suppliers on purchasing
specifications that are in conformity with domestic and international

Fiscal 2012 Results

screening for substances subject to mandatory management, such

• Recorded no PL-related problems; the number of complaints

auditing at and give guidance to suppliers as necessary by using our
in-house developed Negative List.*5

30

Message from General Manager
Masato Mitani, General Manager, Quality
Control Management Dept., Technology Div.

employee training undertaken at each site in line with Companywide
quality policies and the introduction of a quality engineering
approach (Taguchi methods)• Raised awareness of on-site workers through strengthened initia-

In accordance with DENKA100, we focus

tives undertaken at production frontlines, such as quality control

on ensuring the proper management of(QC) circle activities

5. Product Quality and Safety: A supplier is required to include quality and safety assurance in its corporate policy. Such activities are
expected to take place under an established product quality management system.

raw materials and facilities, securing built-

6. Fair and Just Business Transactions: A supplier is required to include fair and just business transactions in its corporate policy.

ment techniques. In these ways, we arein quality and enhancing quality managemaking sure that legal requirements and customer needs are
precisely met from the product development stage.
Going forward, these efforts must involve our overseas busi-

8. Contribution to Society: A supplier is required to include proactive contribution to local communities and global society in its
corporate policy.

ness sites and their local partners. To enhance customer satisfac-

9. Severing Ties with Antisocial Forces: A supplier is required to not have any relationship with antisocial forces, whether they are
individuals or entities.

while preventing quality-related problems.

DENKA CSR REPORT 2013training themed on response to laws and regulations• Reinforced facility improvement and process management toensure built-in quality, based on clearly defined key processes

4. Environmental Conservation: A supplier is required to include environmental conservation activities in its corporate policy anddisclose the status of said activities to the general public. The said activities include the appropriate management of chemical
substances contained in its products and green procurement.

The DENKA Group Guidelines are presented on page 1 of the DENKA CSR Report 2013 References (PDF format) posted on our website.

decreased by 36% year on year
• Provided staff of manufacturing and R&D sections with practical• Promoted the adoption of the SQC method through reinforced

3. CSR Promotion: A supplier is required to recognize CSR as being integral to its business activities. This entails including sustainablesocial and business development in its corporate policy and establishing an in-house CSR promotion structure.

WEB

ods at each site

SDSs,*1 MSDSplus* 2 and AISs*3 while confirming the results of

2. Compliance with Laws and Regulations: A supplier is required to include compliance with law and regulations, as well as faircorporate activities in accordance with social ethics, in its corporate policy.

7. Risk Management: A supplier is required to make sure that any risk or contingencies it may confront are managed and controlled
through such means as the appropriate and timely information disclosure.

5. Facilitating the adoption of statistical quality control (SQC) meth-environmental regulations and other requirements. We also obtain

Moreover, with the aim of securing product safety, we conduct

1. Respect for Human Rights and Occupational Safety and Health: A supplier is required to include respect for fundamental humanrights and the pursuit of occupational safety and health in its corporate policy.

related laws and regulations

required characteristics of procurement items while implementing

as those under EU’s RoHS*4 regulations.

The CSR Procurement Guidelines*1 Safety Data Sheets*2 Material Safety Data Sheets*3 Article Information Sheets*4 Restriction of the Use of Certain Hazardous Substances in Electrical andElectronic Equipment*5 A list of chemicals that ranks substances regulated by laws and subject toreporting obligations under guidelines for the automobile, electric equipment and electronics industries by their level of hazardousness, based on
which their controlling methods are determinedtion, we are striving to achieve steady improvements in quality

WEB

Plans for Fiscal 2013 and Beyond• We are striving to ensure the upstream management of procurement items and product quality management from the development stage through the review of purchasing specifications andthe strengthening of the design review process.
• We will continue to promote the adoption of the SQC method.

Reports on our product safety management system and ISO 9001 management system are available on pages 4, 5 and 7 of the DENKA CSR Report 2013
References (PDF format) posted on our website.

DENKA CSR REPORT 201331

Initiatives with SocietyWith Our Stakeholders

Initiatives to Support Local Communities
The DENKA Group’s Educational Assistance: Example of Fiscal 2012 Activities
Category

Business unit

Name of event or school

Main content of experiment and education

Headquarters and
DENKA Innovation Center

Participated in the Summer Vacation Children’s Chemistry
Experiments Show (at Science Museum; welcomed 120 children)
Participated in Geomaru & Nuna to Omoshiro Science(welcomed 236 people)
Visited schools to hold chemistry classes for children(Meiji Elementary School and Haseba Kita Elementary School)and participated in the Omuta Eco-Town Fair
Invited children and their parents to host the Summer Vacation
Plant Tour and Experimental Science Class
Invited children to host experimental science classes (Shibukawa
Nishi Elementary School and Kanashima Elementary School)

Dissolving hyaluronic acid powder in water and making personalized magnets(using DENKA ES)

Omi Plant
Experimental
science
Omuta Plant
classes

Under the Keywords “Nurturing the Next Generation” and“Working with Local Communities,” We Cooperate with
Various Stakeholders in Our Ongoing Social Contribution
Activities and Post-Disaster Reconstruction Initiatives.

Chiba Plant
Shibukawa Plant
Omuta Plant
Internship

OthersFacilitating Greater Interest in Chemistry

Led by younger employees from the Headquarters and theTamana Technical High School

DENKA Azumin

Shibukawa City Municipal Komochi Junior High School andShibukawa Junior High School
Kurosawajiri Technical High School and Seiun High School

Headquarters

DENKA Scholarship System

Shibukawa Plant

Headquarters
Denka Chemicals Holdings
Asia Pacific (Singapore)

Observing phosphor’s luminescence, making an instant sherbet using a
super-cooling phenomenon, using thermography, personalizing PET bottles,
making key holders (using OPS sheets)
Personalizing PET bottles, using TEMPLOC adhesive and dilatancy experiment
Making slime (a viscous toy; using PVA), personalizing PET bottles, making
Cartesian divers, making bath powder and chromatography experiments
Observing objects through an electron microscope, practicing the use of X-ray
devices, discipline training, hands-on inspection of a fire truck, etc.
Presenting HITTPLATE and Emitter manufacturing process

The Fureai Trio concerts featuring Kyoko Yoshida and friends—
Providing college or university students who grew up in the vicinity of DENKA’s
domestic plants with rent assistance
Providing assistance for classical music classes at elementary schools

The National University of Singapore (NUS)

Providing lectures on Japanese culture at the Department of Japanese Studies

The Fureai* Trio

Blood Donation Activities (Shibukawa and Omuta)

With the aim of nurturing their interest in chemistry, we invite local

DENKA Innovation Center, DENKA held a class entitled “Wonder

On December 9, 2012, a concert for people with disabilities was

In Japan, 3,000 people are saved by blood transfusions every day

children to participate in tours and experimental science classes thatof Powder,” welcoming approximately 120 children to join inheld in Tokyo, featuring the Fureai Trio (Kyoko Yoshida and friends),

and the number of such people totals 1,200,000 per year.* Because

each plant holds.

experiments of dissolving DENKA’s hyaluronic acid powder in watera musical ensemble supported by DENKA. The concert was attend-

blood cannot be artificially produced or preserved for long, bloodand creating personalized magnets using DENKA ES, an “instant-ed by more than 400 people, who enjoyed the opportunity to hear atransfusions depend on the altruism of donors.

hardening cement.”

live performance, have a try at playing a real violin and participate in

The Summer Holiday Chemical Experiment Show for Children

The surprise and smiles on the faces of the children reminded

in the Summer Holiday Chemical Experiment Show for Children.

the DENKA employees leading these experiments of the significanceTo run the event, 40 volunteers from DENKA, six other support-

Blood Centers. Fiscal 2012 campaigns gained the participation of

Spearheaded by the “Dream Chemistry 21” committee* formed by aand reward of chemical manufacturing.

ing companies and the Japan Culture Center for Youths and

260 employees in total. While significant in terms of social contribu-

number of industry organizations, the event aims to provide elemen-* An NPO operated by the Chemical Society of Japan; the Society ofChemical Engineers, Japan; the Japan Association for Chemical Innovationand the Japan Chemical Industry Association with the aim of facilitating children’s interest in chemistry and chemical industry through the provision ofexperimental science classes and other events.

Children, which sponsored the concert, took part in setting up thetion, blood donation campaigns also present opportunities to moni-venue, guiding people and assisting violin performance workshops.

tor participants’ health status through biochemical and blood cell

DENKA will continue to support the activities of the Fureai Trio incount examinations.

tandem with various companies and organizations.

* Source: the Japanese Red Cross Society’s website

wonders and excitement of chemistry. Involving a number of creative
chemistry experiments hosted by various companies, the fiscal 2012

the performance by playing body percussion.

DENKA’s Omuta Plant and Shibukawa Plant hold annual blood

In fiscal 2012, DENKA participated for the first time in 15 years

tary and junior high school students with hands-on experience of theshow was held on August 4 and 5 at the Science Museum in Tokyo

The Fureai Trio concert

The event was a roaring successChildren having fun making magnets

there is a growing call for the provision of mental care for region’s

DENKA has pursued ongoing activities aimed at supporting

hard-hit people.
We believe that our volunteer activities, although only minor,

employees have participated in recovery efforts as volunteers.

will make a difference whenSince the launch of the “Disaster Area Volunteer Support

they are continued over the

Program” in August 2011 until May 2013, the Company had dis-long term. In line with thispatched 234 employees, mainly to Minami Sanriku-Cho, Miyagi

belief, we will pursue ongo-

Prefecture, on a total of 28 occasions.

ing efforts, together with

Although it has been three years since the earthquake, thepost-disaster reconstruction is only half completed. Moreover,people in local communities,
to support reconstruction.

The 28th round of volunteers (May 2013)

DENKA employees who planned and ran the classes

WEB

DENKA CSR REPORT 2013

Employees of the Omuta Plant donating their blood

Volunteers Supporting Disaster-Stricken Areas
areas hit by the Great East Japan Earthquake, and many of its

The children had a variety of questions and comments

donation campaigns on their premises to support local Red Cross* Fureai is a Japanese term
referring to the formationof emotional connections
between people of different backgrounds within acommunity

and attended by approximately 9,000 children and their parents.

32

Personalizing PET bottles (using an SBC resin film CLEAREN)

Initiatives undertaken at each business site and affiliate are featured in the “Site Reports” section of the web-based references.

DENKA CSR REPORT 201333

Communication with Shareholders and Investors and Public Relations

With Our Stakeholders

Consolidated Financial Highlights(Millions of yen)

In Addition to Timely Information Disclosure, We Are
Undertaking a Variety of Investor Relations Activities,
Maintaining Effective Communication with Shareholders
and Investors to Prove Worthy of Their Trust.

Fiscal 2008

Fiscal 2009

Fiscal 2010

Fiscal 2011

Fiscal 2012

Net sales

334,130

323,875

357,893364,712

341,645

Operating income

10,302

21,655

24,61820,713

18,817

Ordinary income

3,094

16,88823,052

18,996

17,824

Net income

1,439

10,474

14,355

11,330

11,255

Total assets

377,912400,407402,046

402,552

415,356

Total net assets

150,142

160,316

168,182

172,737

180,709

Total shareholders’ equity ratio (%)

39.1

39.4

41.2

42.3

43.1

Net income per share (yen)

2.89

21.33

29.24

23.22

23.63

Net assets per share (yen)300.60321.46337.35353.64376.99Net sales

Operating income

Ordinary income(Billions of yen)(Billions of yen)(Billions of yen)

30

30

400
357.9

Results Briefings

334.1

Public Relations

364.7
341.6

24.6

323.9

23.1

300

DENKA holds results briefings for analysts and institutional investors.

In addition to results briefings and corporate briefings, we undertake

A results briefing for the fiscal year ended March 31, 2013, was held

a variety of public relations activities, holding press conferences,

21.7

20.7

20

20
19.0

18.8

on May 9, 2013, with nearly 90 people attending.
During the briefing, we presented on our fiscal 2012 financial
results, performance forecasts for fiscal 2013, new growth strate-

preparing press releases, responding to mass-media coverage, dis-200

closing information through our website and undertaking advertising
activities, to facilitate effective communications with society.

17.8

16.9

10

10.3

10

100

gies and the diagnostic reagents business.

3.1

The fiscal 2012 results briefing(May 9, 2013)

Fiscal 2012 Public Relations Activities

0

0

08

1. Complete Renewal of Website

09

10

11

12

0

08

(FY)

09

10

11

12

08

(FY)

09

10

11

12

(FY)

On September 28, 2012, we made a complete renewal of our website. The homepage design and site structure were made more

Net income/Net income per shareuser-friendly, while website security* was enhanced.

(Billions of yen)

* For further detail, see page 3 of the DENKA CSR Report 2013 References(PDF format) posted on our website.

20

(Yen)

Net income
Net income per share

Total assets/Total shareholders’ equity ratio

Total net assets/Net assets per share(Billions of yen)(Billions of yen)

60

450

400.4

15

300
11.3
10.5

10

39.4

41.2

42.3

150

43.1

23.2

450

150.1

40

376.99100

300.60321.46337.35353.64

300

23.6

150

20

15

50

0

2.9

08

150

09

10

11

12

0

0

08

(FY)

09

10

11

12

0

0

08

(FY)

09

10

11

12

(FY)

In addition, plans for fiscal 2013 call for co-sponsoring basketball clinics that the team holds for elementary school students.

ual investors in Niigata City.

172.7

1.4

0

BB Rabbits.

On September 5, 2012, DENKA held a corporate briefing for individ-

39.1

30

5

Prefecture, we entered into a uniform supplier agreement with a

Briefing for Individual Investors

600

180.7

11.3

29.2

21.3

3. Supporting the NIIGATA Albirex BB Rabbits

local professional female basketball team, the NIIGATA Albirex

415.4
168.2

45

14.4

initiative undertaken by J-WAVE, an FM broadcasting station in Tokyo,

As a company with production sites and affiliates in Niigata

402.6

(Yen)

Total net assets
Net assets per share

200

160.3

Since July 2012, we have co-sponsored “Green Casting Days,” an

Presentation on the diagnostic
reagents business given by
Tetsuro Maeda, the presidentof DENKA SEIKEN Co., Ltd.

402.0

(%)

60

377.9

2. Co-sponsored J-WAVE “Green Casting Day”

with the aim of powering radio broadcasts with “green electricity.”

Total assets
Total shareholders’ equity ratio

After presenting an overview of DENKA, we introduced the cal-

Consolidated net sales by segment

Consolidated net sales in Japan and overseas

Otherscium carbide business, our mainstay business since our founding,

10.1%

and gave an overview of
the Omi Plant, our main
factory in Niigata Pre-

Life Science &Environmental Products

Fiscal 2012

22.6%

¥341.6billionElastomers &Performance Plastics
41.8%

Overseas
30.3%

Fiscal 2012

¥341.6Japanbillionfecture, and its products.

Electronics &Innovative Products

We also presented our

11.5%

14.0%

WEB

Consolidated financial statements are on pages 14 to 15 of the DENKA CSR Report 2013 References (PDF format) posted on our website.

Infrastructure &Inorganic Materials

69.7%

unique initiatives in hydroelectric power generation.
Individual investors listen to the presentation

34

DENKA CSR REPORT 2013

A NIIGATA Albirex BB Rabbits’ game at the Gosen City
Muramatsu Gymnasium

DENKA CSR REPORT 201335

Third-Party Opinion

The Focus on Challenges Specific to the Chemical Industry Draws Readers’ Attention
Prior to preparing this third-party opinion for the DENKA CSR Reportan indispensable part of DENKA’s reporting, in line with its emphasis

To enhance the reliability of its CSR reporting, since fiscal 20072013, I gave a lecture at DENKA on the latest trends in CSR activities

on building trust and ensuring sustainability.

DENKA has been subject to third-party audits by specialists in theand corporate information disclosure, made 35 recommendations

Other impressive articles in this report included one discussing

chemical engineering field and, since fiscal 2011, has been engag-

with regard to the first draft of this report and, in a separate dialogue,

the Company’s promotion of clean energy sources centered on

ing CSR experts in dialogue. The results of such audits and dialogue

exchanged opinions pertaining to these recommendations.

hydroelectric power generation. Because chemical product manufac-

are presented as third-party opinions in the DENKA CSR Report.

The sight of heads of departments participating in the lecture

turing is energy-intensive, securing an electricity supply and saving

For this year’s report, as in the previous year we invited Mr. Tamio

and dialogue impressed upon me how strong DENKA’s commit-

energy are essential management issues for chemical companies

Yamaguchi, a leading authority on CSR in Japan, to join us in dia-ment to CSR and corporate information disclosure is. Also, theseeking sustainable growth. The Company’s initiatives since its

logue as well as to present a lecture on CSR, with the aim of reflect-

Company set clear objectives for these events, namely, “brushingfounding to secure electricity have resulted in an in-house power

ing his recommendations in the report.

up this report based on recommendations” and “enhancing CSR

generation ratio of 56%, which is significant given the recent con-

On July 30, 2013, we invited Mr. Yamaguchi to give a lecture on

activities Companywide by providing third-party feedback to eachcerns over the electricity supply in Japan. Looking ahead, I expect

global trends in CSR and approaches to localizing CSR efforts.

department,” which suggests its determination to make the most

DENKA to report on the initiatives aimed at expanding the use of

Mr. Yamaguchi’s presentation covered the latest trends in businessof the process of preparing this report. Because of that, I haveclean energy sources, including not only hydroelectric and mega

initiatives aimed at “Creating Shared Values (CSV)” by addressing

growing expectations for DENKA’s future initiatives and the reports

solar power generation but also biomass power generation.

the social and environmental issues that countries worldwide areit will make.

Lastly, I would like to close this third-party opinion by presenting

Participants in this lecture and dialogue included heads ofdepartments, including environment and safety managers.

confronting and efforts to enhance information disclosure.

Compared with the previous year, the DENKA CSR Report 2013a recommendation for the method of corporate information disclo-

Then a dialogue was held on September 3, 2013, whichis structured differently, focusing on the three aspects of building

sure. As stated in the “Editorial Policy,” the articles were selected for

involved a question-and-answer session based on comments Mr.

trust, ensuring sustainability and collaborating with stakeholders

this report based on materiality of information, adopting a style that

Yamaguchi had made with regard to the first draft of this report. We

while taking into consideration the challenges confronting today’s

is more consistent with recent trends in integrated reporting. In fact,

discussed such issues as the importance of maintaining a consis-

chemical industry. When it comes to report structures, styles include

the fourth version of the Global Reporting Initiative (GRI)

tent report structure based on a clear editorial policy and the grow-those organized around stakeholders or the triple bottom lines. I

Sustainability Reporting Guidelines (G4) was issued in May 2013

ing trend among overseas stakeholders to pay more attention tobelieve that the structure DENKA has chosen, which draws readers’and an integrated reporting framework will be released by the

how companies address human rights issues, factors that should, in

attention, might provide a good model for future corporate reporting.

International Integrated Reporting Committee (IIRC) by the end ofturn, be reflected in our CSR reports, as well as how to handle
potential risks in environmental accounting.

The dialogue held at Headquarters on September 3, 2013;
Mr. Yamaguchi (left above) and representatives of DENKA deliberated
the issues to be addressed to enhance the Company’s CSR reporting.

I also noted that the content of the web-based references has

2013. It is true that incorporating these external guidelines into CSR

been enriched even further. On the other hand, such important sec-

reports is essential. However, I have to mention that reporting for-tions as corporate governance, compliance and emissions informa-mats under these guidelines also include significant changes fromtion, which were presented only as online references in the fiscal

the previously adopted formats, while differences are seen even2012 edition, were included in the print edition of the DENKA CSR

between GRI and IIRC on the definition of materiality and theReport 2013. Moreover, in certain sections of the printed booklet,assessment of impact. I believe that, to simultaneously enrich thethe icon WEB appears, indicating the availability of online resources

content of CSR and investor information disclosure, it is essential toFirst of all, we would like to express our appreciation to Mr.

On the other hand, Mr. Yamaguchi has proposed utilizing exter-

to enhance reader convenience.

carefully examine these two guidelines and establish an in-house

Yamaguchi for his invaluable comments and beneficial advice with

nal guidelines and establishing an in-house consensus for enriching

regard to the DENKA CSR Report 2013.

the content of information disclosure to stakeholders. These propos-

One of the more remarkable articles in this report is theconsensus with regard to corporate information disclosure on suchannouncement of two accidents that occurred in June and July

matters as the quantity and quality of information, means of disclo-2013. Even though the accidents occurred after the coverage peri-sure and management thereof.

Response to the Third-Party Opinion

Prior to receiving the third-party opinion from Mr. Yamaguchi, we

als suggest the importance of taking a more systematic approach towere given a number of recommendations with regard to the first

addressing the challenges facing DENKA in meeting its corporate

od of this report, DENKA provided statements covering these inci-

Given the Company’s proactive approach toward corporate

draft of this report, especially pertaining to its structure and content.

social responsibility. As we are now seeing a growing trend towarddents in the message from the president, recognizing them as

information disclosure, I am confident that DENKA will be capable of

Also, during the dialogue Mr. Yamaguchi made some valuable sug-

integrated reporting, we anticipate that society’s expectations

material subsequent events. These statements briefly touch on theputting the abovementioned recommendation into practice.

gestions about the posting of quantitative information on workplace

regarding corporate information disclosure will continue to change.

accidents and do not go into detail, however, DENKA states its

diversity and work-life balance while enlightening us about the

While being mindful of these changes, our stance will remain

intention of providing readers with follow-up reports in the DENKA

importance of reporting on activities aimed at protecting humanunchanged with regard to the steady and ongoing pursuit of CSR

CSR Report 2014 on the actions taken in response to these acci-rights, a matter that is attracting growing attention among today’s

activities to enhance the substance of our Groupwide CSR initiatives.

dents. As the chemical industry has seen an increase in the number

overseas stakeholders.

We would also like to express our gratitude to the readers of the
DENKA CSR Report 2013 and are delighted to hear their frank opin-of accidents over the last two years, DENKA’s approach is sugges-

In recent years, we have been struggling to improve our reporttive of the Company’s sense of crisis and its sincerity. In the next

structure and better allocate information to the print edition and online

ions and comments. Spurred by the guidancereferences, keeping in mind Mr. Yamaguchi’s pointed observations.

and advice of our stakeholders, we will step up

We considered the important social challenges confronting us andGroupwide CSR activities and fulfill our social

decided to organize the contents of the print edition around the

responsibility as a company.

report, I would like DENKA to closely examine any insufficiency inhazard prediction and safety communication mentioned in the top
message. I also expect that the Company will continue providing
stakeholders with follow-up reports on steps being implemented toprevent such accidents from recurring and evaluations of their effectiveness over the next several years. I believe these matters are

36

A Dialogue Held Prior to the Preparation of the Third-Party Opinion

DENKA CSR REPORT 2013

Tamio Yamaguchi
Representative of Junkan Workers Club** An NPO dedicated to fostering the harmonious coexistence of society and natural
ecosystems through research conducted from a global perspective. It studies andspearheads local community efforts for creating a recycling-oriented society joining
citizens, businesses and governments, presenting recommendations through CSR
workshops and other means.
URL: http://www.nord-ise.com/junkan/ (Japanese only)

three pillars of building trust, ensuring sustainability and collaboratingwith stakeholders. We are very grateful that our efforts were evaluat-

Noriyuki Shimizu

ed highly by Mr. Yamaguchi in the third-party opinion he has made.

General Manager, CSR & Corporate Communications Dept.

DENKA CSR REPORT 201337

About DENKA

Corporate Data (As of March 31, 2013)

Executives (As of June 21, 2013)

Established: May 1, 1915

Board of Directors/Audit & Supervisory Board/Executive Officers

Paid-in capital: ¥36,998,436,962
Employees: 5,206 (consolidated) and 2,832 (non-consolidated)

Directors

Executive Officers

Sites

Representative Director .................................... Shinsuke Yoshitaka

President & Chief Executive Officer ................... Shinsuke Yoshitaka

Representative Director .................................... Hitoshi Watanabe

Senior Managing Executive Officer.................... Hitoshi Watanabe

Director ............................................................ Tetsuro Maeda

Senior Managing Executive Officer.................... Mitsukuni Ayabe

Director ............................................................ Mitsukuni Ayabe

Managing Executive Officer .............................. Shinji Sugiyama

Director ............................................................ Shinji Sugiyama

Managing Executive Officer .............................. Hideyuki Udagawa

Director ............................................................ Hideyuki Udagawa

Managing Executive Officer .............................. Manabu Yamamoto

Director ............................................................ Manabu Yamamoto

Managing Executive Officer .............................. Shohei Tamaki

Outside Director ............................................... Kozo Tanaka

Managing Executive Officer .............................. Norihiro Shimizu

Outside Director ............................................... Tadashi Hashimoto

Managing Executive Officer .............................. Toshiharu Kano

• Head Office:Nihonbashi Mitsui Tower, 1-1, Nihonbashi-Muromachi 2-chome, Chuo-ku, Tokyo 103-8338, Japan
Tel: +81-3-5290-5055• Branches
Osaka, Nagoya, Fukuoka, Niigata, Hokuriku (Toyama), Sapporo, Tohoku (Sendai)• Sales Offices
Nagano, Gunma (Takasaki), Hiroshima, Shikoku (Takamatsu), Akita• Research Institutes

Managing Executive Officer .............................. Sanshiro Matsushita
Head Office (Nihonbashi Mitsui Tower)Central Research Institute (DENKA Innovation Center) (Machida, Tokyo)
Polymer & Processing Technology Institute (Ichihara, Chiba)• Plants
Omi (Itoigawa, Niigata), Omuta, Chiba (Ichihara, Chiba), Shibukawa, Ofuna (Kamakura, Kanagawa), Isesaki

Audit & Supervisory Board Members

Executive Officer ............................................... Kazuyuki Koyama

Standing Corporate Auditor .............................. Hideo Oishi

Executive Officer ............................................... Akihiko Okuda

Standing Corporate Auditor .............................. Jiro Hiroe

Executive Officer ............................................... Kenji Nakano

Outside Corporate Auditor ................................ Toshiaki Tada

Executive Officer ............................................... Masaharu Suzuki

Outside Corporate Auditor ................................ Tsunehiro Sasanami

Executive Officer ............................................... Ken Koizumi
Executive Officer ............................................... Tetsuya Shinmura

Overseas Subsidiaries & Offices

Executive Officer ............................................... Junichi Kimura

New York, Düsseldorf, Singapore, Shanghai, Beijing, Guangzhou, Suzhou, Hong Kong, Taiwan, Seoul

Executive Officer ............................................... Toshio Imai

Major Affiliates
DENKA Polymer Co., Ltd. (Koto-ku, Tokyo)

Editorial Policy

DENKA SEIKEN Co., Ltd. (Chuo-ku, Tokyo)
CRK Corporation (Takasaki, Gunma)
Hinode Kagaku Kogyo (Maizuru, Kyoto)
DENKA Azumin Co., Ltd. (Hanamaki, Iwate)

DENKA set up its CSR Promoting Dept. (currently, the CSR & Corporate

Coverage

Communications Dept.) in April 2007 as part of DENKA100, aThis report generally covers fiscal 2012 (April 1, 2012, through March 31,

Companywide initiative targeted for its centennial in 2015, and has report-

2013). It also includes information on subsequent initiatives undertaken in

ed all of its CSR activities since October 2007.

fiscal 2013 while presenting numerical targets for and performance statis-

With an eye on the challenges confronting today’s chemical industry,tics from the past several fiscal years.

the DENKA CSR Report 2013 focuses on three aspects: building trust,Shareholder Information (As of March 31, 2013)
Total number of authorized shares

1,584,070,000

Shares of common stock issued

481,883,837

Number of shareholders

40,796

Major Shareholders
Number of Percentage
shares held of shares(thousands) held (%)

The Master Trust Bank of Japan, Ltd. (Trust Account)

31,551

6.64

Japan Trustee Service Bank, Ltd. (Trust Account)

25,508

5.37

Japan Trustee Service Bank, Ltd. (Trust Account 9)19,492

4.10

National Mutual Insurance Federation ofAgricultural Cooperatives

15,965

3.36

Trust & Custody Services Bank, Ltd.
(Mizuho Corporate Bank, Ltd. Retirement Benefit
Trust Account re-entrusted by Mizuho Trust andBanking Co., Ltd.)

15,275

Mitsui Life Insurance, Co., Ltd.

11,9082.50

Mitsui Sumitomo Insurance Co., Ltd.

6,916

1.45

3.21

Shareholder Composition
Other domestic corporations
6.8%

Securities companies
3.0%

Individuals andothers22.0%

Financial institutions
40.4%

Foreign corporations
and individuals
27.6%

Notes:
1. Treasury stocks (7,042,507 shares) are not accounted for in the list ofmajor shareholders on the left.
2. The calculation of percentage of shareholding excludes treasury stocks.

ensuring sustainability and collaborating with stakeholders. Starting with a

Scopemessage from the president, the report begins with a review of two major

Unless stated otherwise, the data in this report is based on information on

accidents that the DENKA Group decided to report on to fulfill its responsi-

the business sites of DENKA and key affiliates listed below, and financial

bility to stakeholders, namely, a heat-blast accident at the Omi Plant and ainformation presented hereto includes consolidated data.

fire at the Chiba Plant. It then goes on to highlight our efforts “To remain a• Business sites: The Omi, Omuta, Chiba, Shibukawa, Ofuna and Isesaki

company that deserves trust” by featuring our corporate governance, CSR

plants and the Central Research Institute (DENKA Innovation Center)

activities and initiatives to secure worksite safety. The articles themed on• Key affiliates: Denal Silane Co., Ltd., Denak Co., Ltd., JUZEN Chemical“Sustainability for the next 100 years” then follow and present our initiatives

Corporation at the Omi Plant, and Chiba Styrene Monomer Limited

aimed at achieving sustainable growth, with particular focus on DENKA100

Company, TOYO STYRENE Co., Ltd., and Taiyo Vinyl Corporation at the

new growth strategies and the two priority issues for achieving long-term

Chiba Plant

growth, namely, securing our electricity supply and recycling initiatives atour cement plant. The report closes with introducing collaborative initiatives

Website-Only Contents

we have pursued “With our stakeholders”—employees, suppliers, local

To introduce its CSR initiatives to stakeholders, DENKA utilizes both thecommunities and shareholders and investors.

DENKA CSR Report printed booklet and web-based references, which are

The DENKA CSR Report 2013 also includes consolidated financial

prepared in PDF format and posted on its website. While the former

highlights for investors’ interest while putting greater emphasis on repre-

presents the latest examples of DENKA’s initiatives aimed at achieving

senting a management viewpoint, a style that is more consistent withsustainable growth, the latter covers information on its long-standing

recent trends in integrated reporting. The overall content of the report has

CSR activities.

been selected by giving due consideration to materiality.
In preparing this publication, we referred to the Environmental Reporting

In addition, the Global Reporting Initiative (GRI) Content Index has been
newly added to the web-based references to the DENKA CSR Report 2013.

Guidelines 2012 of Japan’s Ministry of the Environment and Version 3.1 of
the Sustainability Reporting Guidelines of the Global Reporting Initiative.

The Nomura Trust and Banking Co., Ltd. (Trust Account)

5,474

1.15

 Inquiries:

Mitsui & Co., Ltd.

5,437

1.14

CSR & Corporate Communications Dept. DENKI KAGAKU KOGYO KABUSHIKI KAISHA

Japan Trustee Service Bank, Ltd. (Trust Account 4)

5,267

1.10

TEL. +81-3-5290-5511

FAX. +81-3-5290-5149

Nihonbashi-Mitsui Tower, 1-1, Nihonbashi-Muromachi 2-chome, Chuo-ku, Tokyo 103-8338, Japan

www.denka.co.jp/eng

38

DENKA CSR REPORT 2013

DENKA CSR REPORT 201339