CSR Report 2013

References
DENKI KAGAKU KOGYO KABUSHIKI KAISHA

Reference

The DENKA Group Guidelines
Based on our corporate philosophy, “to become a company that creates new value from resources by fully employing ourtechnological capabilities,” the DENKA Group established CSR action guidelines.

CONTENTS

1 The DENKA Group Guidelines
2 Fiscal 2012 Responsible Care Activities and Targets for Fiscal 2013
3 Information Security/System Administration/
Online Information Management

4 Product Safety Management System
6 Occupational Safety and Health Management System
7 ISO 14001 and 9001 Management Systems
8 DENKA Group Products and Technologies That Contribute to Society
12 Utilization of Environment- and Energy-Related Subsidies/Life Cycle Assessment (LCA) Initiatives

13 Environmental Accounting

1. We will promote sustainable social and business development out of aconviction that corporate social responsibility is the essence of business.

2. While constantly ensuring quality to maintain customer trust, we will contribute to sound social progress by developing and supplying products andservices that are safe and environment friendly.

3. We will operate fairly.

4. We will maintain a good level of communication with society and disclose
appropriate information.

5. We will comply with laws and regulations and operate fairly according tosocial norms.

6. We will maintain safe, clean and comfortable workplaces and respect allbasic human rights.

7. We will use, reuse and recycle resources to help protect the environment.

8. We will maintain security and disaster prevention measures, participate inenvironmental protection activities and communicate with society.

14 Consolidated Financial Statements
9. We will contribute to society as a good corporate citizen.

16 Global Reporting Initiative (GRI) Content Index
10. We will contribute to social development as a good member of the global
community.

Established April 1, 2007

DENKA CSR REPORT 20131

Reference

Reference

Fiscal 2012 Responsible Care Activities and Targets for Fiscal 2013

Information Security/System Administration/Online Information Management

Fiscal 2012 Responsible Care (RC) Objectives and Achievements(Assessment code: A = Reached target B = Partially missed target C = Missed target)
Key Area

Fiscal 2012
Goals

Relevant
Evaluation Page(s)Achievements

Environmental conservation

Prevent global
warming andsave energy

CO2 emissions intensity
CO2 emissions intensity (from energy sources): 1.25t/t(from energy sources): 1.00t/t Energy consumption intensity (fiscal 1990 base): 94%
Energy consumption intensity • CO2 emissions intensity rose and was substantially over target(fiscal 1990 base): 86% or
because of the higher CO2 emissions intensity of purchased
lowerelectricity. Also, energy consumption intensity rose due to a decreasein production volume.
Prevent air and SOx: 153t
SOx: 116t
water pollution NOx: 4,670t
NOx: 4,044t
Soot and dust: 133t
Soot and dust: 93t
COD (BOD): 564t
COD (BOD): 864t
• SOx emissions decreased due to the switchover of fuels at the Chiba
Plant from heavy oil to byproduct gas with low sulfur content.
• NOx emissions decreased due to the suspension of operations at
CM-3 and the switchover of fuels at the Chiba Plant from heavy oil to
byproduct gas.
• Soot and dust emissions decreased thanks to the replacement of dust
collector bag filters at the Omi Plant’s calcium carbide production
facilities and other actions.
• COD (BOD) emissions were in excess of target but down approximately
30% compared with the fiscal 2012 level thanks to the improved
wastewater treatment system used at the Omi Plant’s POVAL
production facilities.
Reduce waste Total waste generated:132,000t(zero emissions) 138,000t• Waste reduction efforts at each plant have made progress.
In-house and external reuse: 121,548t
126,600t• Failed to achieve the target despite the switchover to a special
cement additive product lineup and enhanced waste recycling at theOmi Plant
In-house and external
180t
landfill: 374t
• Maintained zero emissions through waste reduction efforts at eachplant
Use resources Raise the amount of waste
Recycled resource usage intensity: 560kg/t
efficiently
and byproducts used in one • Met the target by promoting efforts centered on recycling industrial
ton of cement (recycledwaste
resource usage intensity)

Community
relations

Disaster prevention

Occupational Safety
and Health

Product Safety

Compliancewith chemical
substance
management
policies

Managechemical
substancesand suppress
emissions
Ensure safe
transportation

Eliminateoccupational
accidents

Continuously provide
sufficient information on
product safety, such as
through SDSs*, while
complying with international
regulations on chemical
substances including
REACH**
Companywide emissions of
PRTR substances: 88t

Fulfill responsibilities as abulk shipper

Conduct risk assessments
and identify and eliminate
unsafe facilities, work
practices and behaviors• Revised the SDSs and labeling for products for EU and China toaccommodate GHS***• Made notifications under the Act on the Evaluation of Chemical
Substances and Regulation of Their Manufacture, etc. with regard tochemical substances subject to monitoring while registering such
substances in accordance with REACH regulations• Steadily implemented steps as necessary to comply with the TSCA†
regulations of the United States, K-REACH†† and other regulations
worldwide that conform with GHS
104t• Although we failed to meet the target, emissions of PRTR substances
decreased 25% year on year due to the use of solvent-free adhesives
for the Chiba Plant’s tape products.
• Addressed problems identified through inspection tours as a part ofthe improvement project (countermeasures in work involving heights,
stacking of containers, etc.)• Compiled examples of accidents in logistics operations into a booklet
while implementing training of persons in charge• Provided external transporters with training sessions, including Yellow
Card Training Programs, to enhance their ability to handle emergencies
All business sites continued to conduct risk assessments and hazard
prediction activities to identify and address unsafe work practices.
However, year-on-year safety records have deteriorated at the Group.

B

ManageMaintain and improve healthemployeehealthEliminate major Eliminate major accidents,
accidents
especially explosions, fires
and large-scale leaks ofchemical substances while
improving production control

Maintaincommunity
trust

Continue to engage
communities and build trust

Continuously implemented countermeasures against mental healthproblems and metabolic syndrome (education and development offollow-up structures).
• There were no major accidents.
• The number of facility-related incidents impeding operations was 11,
up from nine in the previous fiscal year. (Breakdown: four fires or theemission of smoke; three electricity-related problems; one waterleakage; two equipment failures; and one environmental accident
involving leakage of muddy water)• Based on an analysis of previous accidents, we implemented
measures to prevent recurrences and stepped up preliminary safetyassessments and change management.
• Addressed complaints about noise and odors through response desks
at each business site, deploying countermeasures and responding ingood faith to complaints• Engaged in community dialogue, hosted site tours and held children’s
chemistry classes• Included a third-party opinion in the DENKA CSR Report

DENKA CSR REPORT 2013

Major Challenges andGoals for Fiscal 2013 and Beyond

18 to 19 Reduce both CO2 emissions intensity (from energy sources)and energy consumption intensity 1% or more comparedwith fiscal 2012 level• Promote total CO2 reduction through such steps as
improving production processes and increasing yield ratio

Information Security
code of specific behavior that encompasses guidelines underIn recent years, the volume of information digitally processed by

18 to 20 SOx: 64t
NOx: 4,266t
Soot and dust: 123t
COD (BOD): 1,293t• Reduce BOD emissions at the Omi Plant through such
steps as the improvement of facility operation efficiency

the headings the Safe Management of Personal Information/

the Group’s information system has been rapidly expanding on the

Confidential Information Management and Respect for Intellectual

back of drastic advances in IT technologies. Accordingly, it is

Property Rights, both of which are strictly complied with. As subor-increasingly important to secure our information management

dinate regulations of these guidelines, DENKA established andsystem. DENKA created the Information System Management

developed the Personal Privacy Policy and the Regulation for

Guidelines in 2006 and the Information System Work Manual inProtecting Information regarding Corporate Secrets, which are thor-

2008 based on the Regulation for Protecting Information regarding

oughly disseminated through lectures and in-house newsletters.

Corporate Secrets. In cooperation with managers and persons in

The DENKA Group Ethics Policy established in 2002 includes a

Furthermore, DENKA strictly manages and respectfully handles
confidential information provided by third parties in accordanceManagement of Information Related to the
Information Systemcharge at each relevant department, we are appropriately handling
digitized information.

with the DENKA Group Ethics Policy.
A18, 20

Reduce the generation of waste and the volume of waste
sent to landfills

C18, 20

Promote reuse of waste material

Structure of Information Management Rules
DENKA Group Ethics PolicyA18, 20A

18,
Raise the recycled resource usage intensity, thereby
24 to 25 contributing to the development of a recycling-oriented
society
Strengthen the reuse of automobile shredder residue (ASR)
31
Continue to supply SDSs and other product safety
4 to 5 information while remaining compliant with such overseas(Web) regulations on chemicals as REACH

A

Information Management Structure
President

Chief Control Officer

Code of specific behavior

Cut final landfill waste: 177t
Maintain zero emissions

Safe Management of Personal Information/
Confidential Information Management andRespect for Intellectual Property Rights

Director in Charge

Chief control officer at each relevant department

General Manager

General administrator at each relevant department

Subordinate regulations

Personal Privacy Policy and Regulation for Protecting
Information regarding Corporate Secrets
Management of information
related to information systemB18, 20A

21

Companywide emissions of PRTR substances: 95t
Step up efforts at the Chiba Plant to reduce the emissionsof PRTR substances

Information System Management Guidelines (established in 2006)

Lectures on Information Security

C

Number of incidents of lost work time due to accidents
In Group: 5; accident frequency of 0.92
Among subcontractors: 3; accident frequency of 0.54

* Safety Data Sheet** Registration, Evaluation, Authorisation and Restriction of Chemical Substances† Toxic Substances Control Act†† REACH-related law adopted in the Republic of Korea

2C

DENKA Will Secure Information Security through Appropriate Control

A

B

Fulfill responsibilities as a bulk shipper

12 to 13 Attain zero accident rate for incidents resulting in lostwork time by implementing the following policies:6(Web) • Safety activities involving all employees• Facilitating worksite communication to create a lively
and vibrant workplace• Thorough implementation of safety education• Raising the safety awareness of each employee• Implementing safety activities tailored to local needs
12 to 13, Undertake activities to maintain and improve health
28

Manager

Administrator at each section or area in charge

preparations, in fiscal 2012 we established an information system

To disseminate in-house rules pertaining to information security, ouroperation structure that links two data centers (located in the east

information technology specialist course, covering the Information

and west of Japan) capable of supplementing each other’s opera-

System Management Guidelines and basic rules, is provided annu-

tional capacity at the time of wide-area disasters, including earth-ally at Headquarters as well as each branch and plant. With class-quakes and tsunami, thereby securing the continuity of oures of about 10 employees, the course aims to ensure the adoption

business operations.

of proper information management methods through practicaltraining as well as active discussion.

Online Information Management
DENKA utilizes the Tokyo Stock Exchange’s timely disclosure network (TDnet) service to disclose corporate information subject tothe timely disclosure rules. Although the Company presents thesame information on its website, DENKA makes sure that such

12 to 13 Eliminate major accidents, notably explosions, fires andlarge-scale leaks of chemical substances, and improve
6(Web) production control (in keeping with the characteristics ofspecific plants, target more stable operating conditions,enhance operational techniques and facilities)

information is protected from unauthorized access or theft prior tothe completion of timely disclosure. For example, the number of
personnel handling the management of managing the website isstrictly limited and they are appropriately educated. They initiate
Younger employees participating in a lecture on information management

A

32 to 33, Facilitate communication with local communities to garner37
their trust*** Globally Harmonized System of Classification and Labeling of Chemicals

Protection of Electronic Data

procedures for the uploading of said information only after confirming that the information has been successfully disclosed throughthe aforementioned service. Moreover, their workspaces are moni-

To secure the reliability and efficiency of information systems, wetored and equipped with protection systems. We have also set up

are utilizing external specialized data centers to manage and oper-

a procedure to handle emergencies, such as unintentional informa-

ate our information system equipment. As a part of emergency

tion disclosure and leakage.

DENKA CSR REPORT 20133

Reference

Reference

Product Safety Management System

Product Safety Management System

We thoroughly undertake management operations that fully consider safety,
environmental protection and quality in all our processes, from raw materials
procurement to research, production, logistics, consumption and disposal.
Product Safety Management
Product Safety Management Flowchart

Quality Symposia, SQC and Quality Engineering Education
We ensure product safety at each phase—from development and production
to use by customers—while focusing on maintaining and improving quality.

The DENKA Group holds periodic quality symposia aimed atenhancing quality management techniques while implementing
education programs on the statistical quality control (SQC) method

1. Verify the Safety of Raw Materials and Required Quality Level and

1. Development

Engage in Production Process Design
Verify raw material safety and required quality level
Production process design

We select and use raw materials for which safety can be verified while developing
products that conform with customer and legal demands. We establish production
processes that ensure consistent quality and thus trust in the products we develop.

2. Raw Materials
Green Procurement
Purchasing specifications

3. Outsourced
Raw Material
Production

and quality engineering across the board.

• Appoint persons to take charge of SQC promotion at each production site and nurture them as SQC trainers• Determine the required level of comprehension by job rank andcategory while incorporating such requirements into in-house

On February 14, 2013, the third quality symposium was held

education policies for Companywide application

and attended by representatives of the Company’s plants, research• Enrich the software used for statistical analysis

laboratories and affiliates. Under two themes, “the utilization of the

In addition, in fiscal 2013 we began to introduce quality engineer-

SQC method” and “how to resolve quality-related problems,” 10

ing (Taguchi methods) to upgrade the level of our quality manage-

2. Green Procurement /Purchasing Specifications

presentations were given that shared best practices in the area ofment techniques. The aim of quality engineering is to efficiently

We purchase and use raw materials based on the Negative List, which takes into

quality improvement.

ensure high product quality that is not influenced by usage condi-

consideration Japanese and international environmental management regulations,

We also reviewed in-house education programs on the SQC

tions or environmental factors. In fiscal 2012, prior to introducing

as well as purchasing specifications that outline the required characteristics of pur-method and implemented revisions pursuant to the following policies.

the new approach, we solicited the advice of external specialists

chased raw materials. Consequently, we are striving to manufacture superior prod-• Tailor these programs to best serve diverse levels of employee

on how to adopt the concept of quality engineering and imple-

ucts from quality raw materials and production processes.

understanding, offering introductory to advanced levels and there-

mented a pilot product development project under selected

3 & 5. Manufacturing Vendor Audits

by ensuring that the basics of the SQC method are firmly adopted

R&D themes.

We outsource some raw material production processes and the manufacture of

Vendor audits

semi-processed goods. We regularly audit manufacturing vendors based on our inhouse standards for quality, logistics, environmental management and product safety.

4. Maintain/Improve the Environmental Protection and Quality
We are undertaking environmental and quality management operations; gradually

4. Production

expanding the scope of our efforts to include new products; and working to mainISO 14001, ISO 9001 andGood Manufacturing Practices(GMP: see note 1)

tain and improve quality, environmental protection and safety.

6. Waste Contractor Audits
We commission waste contractors in line with the Waste Management and Public

Collaborating in Chemical Industry Initiatives
 High Production Volume Program (HPV) Long-Range Research Initiative

Through the HPV Program, we and other companies collaborate

The Japan Chemical Industry Association, the American Chemistry

under the auspices of the International Council of Chemical

Council and the European Chemical Industry Council oversee thisAssociations to evaluate the safety of around 1,000 substances

program. The program entails conducting long-term basic researchthat the Organisation for Economic Co-operation and Development

to correctly determine if and/or in what manner chemical substanc-has designated as priority substances.

es affect human health and the environment. Currently, these bod-

Cleansing Law, requiring them to issue manifests and confirm collection. We regu-

5. Outsourced
Processing
and Production

6. Disposal
Waste contractor
auditsVendor audits

7. ProductsManagement of environmentally hazardous
substances (Negative List)

larly evaluate the operations and financial positions of these vendors and visit theirwaste processing sites.

ies are engaged in long-term basic studies of such issues as Japan Challenge Programecological (environmental) toxicity due to exposure to chemical

Under this program, manufacturers are working with the Ministry of

substances, neural toxicity and cancer caused by exposure to

7. Management of Environmentally Hazardous Substances in Products

Health, Labour and Welfare, the Ministry of Economy, Trade andtoxic chemicals, and endocrine hypersensitivity due to exposure to

We established the Negative List, which lists substances that are considered to be

Industry and the Ministry of the Environment to collect, assess andchemical substances. As we did in fiscal 2010, we fully cooperated

harmful to people and the environment. We are taking steps to ensure product qual-

disclose safety information on around 700 chemical substances.

in the implementation of this program in the year under review.

ity and safety while reducing environmental load by placing restrictions on usage

We are participating in areas of the program that relate the sub-during the raw material phase and by decreasing the residual volume of harmful

stances that we use.

substances in our products. The Central Research Institute (which is in charge ofcertifying measurements) analyzes the amount of residual substances harmful to theenvironment contained within raw materials and products. Analytical data verifyingthat the amount of such substances is below regulatory limits is shared with the

8. Logistics
Yellow cards
Container labels (see note 2)

production, sales, and analysis and product management departments.

8. Displaying Yellow Cards and Yellow Card Container Labels
We require drivers to carry yellow cards that explain post-accident procedures. We
also label containers to ensure swift and proper remediation. We regularly informdrivers of our requirements and conduct emergency drills.

9. Customers
Safety data sheets (SDS)
MSDSplus (see note 3)
AIS (see note 3)

9. Safety Data Sheets (SDS)

Notes 1. Good Manufacturing Practices (GMP) refers to standards that Japan’s Ministry of Health, Labour and Welfare established in its Ministerial Ordinance onStandards for Manufacturing Control and Quality Control for Drugs and Quasi-drugs.
2. The Japan Chemical Industry Association created a labeling format to augment the Yellow Card system. The labels present emergency guideline numbers and United Nations identification numbers for different chemicals transported in relatively small amounts on the same vehicle. The labels aid in theproper handling of these chemicals in emergencies.
3. The Joint Article Management Promotion-consortium (JAMP*)’s Material Safety Data System plus (MSDSplus) and Article Information Sheet systems
provide standardized formats for presenting information on substances subject to management. MSDSplus is mainly for substances and agents thatare upstream in the supply chain. Article manufacturers produce Article Information Sheets based on that information. JAMP aims to spread its systems throughout Japan and Southeast Asia.
* JAMP is a cross-industry association established in Japan in 2006 to encourage companies to properly manage information on substances and compounds as well as on chemical substances in parts, plastics and other articles. JAMP also establishes mechanisms to disclose and present information on supply-chain products.

We produce these sheets for all products to ensure proper handling according tophysical and chemical hazards and health and environmental risks. The sheets
inform customers and help educate employees. We have begun disseminating information on environmentally hazardous substances contained in our products to customers through the MSDSplus—which supplements information conveyed on SDS
sheets—and Article Information Sheet systems.

4

DENKA CSR REPORT 2013

DENKA CSR REPORT 20135

Reference

Reference

Occupational Safety and Health Management System

ISO 14001 and 9001 Management Systems

We endeavor to maintain safe and comfortable workplaces.

We are pursuing ongoing improvement based on our quality andenvironmental management systems.

Occupational Safety and Health Management System

Status of ISO Certification Acquisition

DENKA conducts risk assessments to monitor the degree of risk ateach plant.

Plant Name

Certification
SystemCertification
NumberAcquisition
Date

OHSAS 18001

279788February 6,
2007

10-15-6

March 8,2010

SNG6011133

January 23,
2011

Based on assessment results, we comprehensively manage
risks and implement improvements. The status of certification

Chiba Plant

acquisition from external institutions is as follows.
Although the Shibukawa Plant has yet to acquire certification
for its occupational safety and health management system, theplant is implementing safety management and promotion activities

Omi Plant

OSHMS

DSPL
Seraya Plant

OHSAS 18001

We secured the following ISO certifications in fiscal 2012:

ISO 14001 (Environment)

ISO 9001 (Quality)

Date Certified

Registration
NumberDate Certified

Registration
NumberOmi Plant

October 16,
1999

2661116-2A(BV)

August 19,
1994

2936857(BV)

Chloroprene, acetaldehyde, POVAL, ASR,SAKNOHOL, special cement additives, cement,
alumina fiber, monochloro acetic acid, sodium
monochloroacetate, caustic soda, monosilane,
dichlorosilane, hexachlorodisilane

Omuta Plant

October 28,
2000

2832519(BV)

November 7,
19981897810(BV)

Fused silica, special cement additives, nitride
powder, ceramic substrates, steel additives,acetylene black, calcium aluminate cement,
FIRELEN, boron, boron carbide powder, thermallyconductive materials, heat sinks, phosphor

equivalent to those prescribed by a certified system.

Change Management
This encompasses establishing rules to assess risks and imple-

Chiba Plant

May 31,
1999

2229709(BV)

March 22,1995

2985010(BV)

Polystyrene, acrylonitrile styrene resins, methyl
methacrylate styrene resins, methacrylatebutadiene-styrene resins, methacrylate acrylonitrile
butadiene styrene resins, acrylonitrile butadienestyrene resins, styrene-maleimide copolymers,
styrene-butadiene copolymers, vinyl acetate,ethylene vinyl acetate copolymers, acrylic rubber,polystyrene sheet, acetic acid, styrene monomer,
toluene, ethyl benzene, rain gutters, vinyl tape,corrugated pipes, duct hosing, wall ducts,
polyvinyl chloride

Shibukawa Plant

May 21,
2001

2944628(BV)

October 23,
1996

1957684(BV)

Metal substrates, adhesives, emitters, thermallyconductive spacers, thermally conductive adhesive
sheets, electromagnetic shields, Elegrip Tape

Ofuna Plant

November 9,
2001

JQA-EM1895(JQA)

October 25,
1996

JQA-1429(JQA)

Packaging tape, plastic films,
polyvinyl chloride fibers

Pilot operation

Isesaki Plant

September 30,
2003

2770789(BV)

February 28,
2008

3038095(BV)

Stretch films, food packaging sheets, electronic
packaging sheets, cover tapes, DX FILMs

Commercial operation

Central ResearchInstitute

July 5,
2004

2988036(BV)——DSPL Merbau Plant

June 8,2001

SNG0190016(Lloyd’s)November 29,
2000

SNG0160194(Lloyd’s)

Acetylene black

DSPL Seraya Plant

May 28,2003

SNG0190023(Lloyd’s)

September 27,
2001

SNG0160242(Lloyd’s)

Polystyrene, methyl methacrylate styrene resins,
styrene-butadiene copolymers

DAPL Tuas Plant

March 2003

2003-0194(PSB)

April 2000

99-2-0984(PSB)

Manufacture of fused silica filler

Denka Advanced
Materials (Suzhou)Co., Ltd.

May 20,2008

310092-UK(BV)

September 19,
2007273428(BV)

Electronic packaging sheets, cover tapes

DENKA Polymer
Co., Ltd.

——

September 14,
2001

C2010-01748(PJR)

Plastic food packaging and plastic sheets

DENKA SEIKEN
Co., Ltd.

June 23,
2000

2737475(BV)

July 13,2005

12 100 25631
TMS (TUV)

Clinical chemistry diagnostic reagents,
immunological diagnostic reagents,
bacteriological and virological diagnostic reagents,
sterile cotton swabs

CRK Corporation——

November 19,
20092862476(BV)

Rubber compounds, rubber tape, rubber molding

Review process

ment measures where needed for changes in the 4Ms* during production. Preliminary safety assessments are important whenbuilding plants that use new processes. Change management

Assess process suitability
at planning stage

Determine facilities outline and budget
Deliberatecomes into play when we upgrade or modify facilities. Facilities andoperations departments conduct preliminary safety assessments
and gather with in-house third parties to discuss risks relating to

DecidePreliminary safety assessment

fires, explosions and worker safety.
In particular, we emphasize preventing key lapses in areas concerning disaster prevention and occupational health.
* The 4Ms: man, machines (facilities, equipment, tools), materials (raw materials and components) and methods (including work methods/operations,processing conditions and formulas)

Products Covered

Evaluate ways to reduce safety andsecurity risks and reflect them indetailed designs and equipment
production specifications

Detailed designs and orders
Implement and produce
Confirm upon completion

Confirm that instructions have been
implemented and deploy additional
measures

Undertake additional measures—

DSPL: Denka Singapore Pte., Ltd.
DAPL: DENKA Advantech Pte., Ltd.
Note: ISO 9001 is not applicable to the Central Research Institute.

6

DENKA CSR REPORT 2013

DENKA CSR REPORT 20137

Reference

Reference

DENKA Group Products and Technologies That Contribute to Society

DENKA Group Products and Technologies That Contribute to Society

Employing Proprietary Technologies, We Offer Products and Solutions
That Contribute to Environmental Load Reduction and Social Development.
Infrastructure & Inorganic Materials Division
Category

Department

CO2 emissions
Special Cement
reduction in
Additives Dept.
manufacturing process
Special Cement
Additives Dept.

Provide weight-saving
benefits for users
Inorganic Products
Dept.

Special Cement
Additives Dept.

CO2 emissions
reduction at theuse stage

Inorganic Products
Dept.

Agri-Products Dept.

Improve customers’
Special Cement
operational processes Additives Dept.

Cement Dept.

Reduce energy andresource consumption

Special Cement
Additives Dept.

Product Name

Special Cement
Contribute to society Additives Dept.
(support post-disasterreconstruction)

Agri-Products Dept.

8

DENKA CSR REPORT 2013

Details of Contribution Effects

Concrete Products and Technologies That Help Save Resources and the Environment

CO2-SUICOMConcrete precast products

During production, CO2-SUICOM supplemented with 2CaO/SiO2 undergoes carbonization,
absorbing CO2 and thereby contributing to CO2 reduction. Moreover, as 2CaO/SiO2 uses
slaked lime instead of limestone, even at the raw material stage no CO2 is generated.

CO2-SUICOM (CO2 absorption concrete)

SUQCEM

Concrete precast productsThis concrete reinforced with ultrahigh-strength fiber is lighter and thinner than ordinary
concrete, and can cut construction costs.

by DENKA, Kajima Corporation and the Chugoku Electric Power

Catalyst carrier for purifying
automobile exhaustsThis alumina fiber used in replacing steel automotive engine parts with aluminum parts
helps to reduce automobile weight and thus improve fuel efficiency and reduce CO2
emissions.

DENKA ALCEN

CO2-SUICOM is an environment-friendly concrete jointly developedCo., Inc. The usual concrete manufacturing process generates
emissions amounting to between 200 and 400 kilograms of CO2
per cubic meter of concrete. With CO2-SUICOM, we have suc-

1000, 2000

Concrete secondary products

Used as a high-strength additives to reduce the volume of CO2-emissions intensive
cement needed to make concrete

80N

High-strength cast-in-place
concrete

Used as high-strength additive to reduce the volume of CO2-emissions intensive cement
needed to make concrete

zero or less as this material hardens by absorbing CO2.

F-DAC

Concrete secondary products

Facilitating concrete’s hardening and setting, F-DAC shortens pre-curing and steam
curing time and thus reduces the CO2 emissions from the resulting concrete products.

SUQCEM (ultrahigh-strength fiber-reinforced mortar)

Slaked lime

Water treatment, construction
material and agricultural andindustrial applications

Slaked lime absorbs CO2 over the long term through carbonization, gradually turning
into limestone.

SULFEX, Synthetic
FLUX COMPOUND

Steel desulfurizing agent

Used in place of calcined lime, the most common desulfurizing agent, these products
reduce thermal loss during steel refining while helping to lower CO2 emissions fromtransportation by reducing slag ejection.

Calcium cyanamide Fertilizer

ceeded in reducing the volume of emissions generated virtually to

Jointly developed by DENKA, Kajima Corporation, Sumitomo (SEI)
Steel Wire Corporation and Sumitomo Mitsui Construction Co.,
Ltd., SUQCEM incorporates special steel fibers to achieve superiortensile strength and fracture toughness, thereby eliminating theneed for the steel reinforcement of concrete structures.

Studies have shown that calcium cyanamide fertilizers lower emissions of N2O, which has
a greenhouse effect 310 times greater than CO2. Also, a study has shown that the use ofthis fertilizer in tea plantations countrywide would have a GHG reduction effect equivalent
to planting 200 million cedar trees.

Slurry Shot Method (employing NATMIC US-32, US-50)
A construction method employing shotcrete and quick-hardening

Slurry shot method(NATMIC US-32,
US-50)

Shotcrete for tunnels

This method helps to reduce dust and concrete splash during the spraying process while
improving the workplace environment and decreasing material losses.

Clear shot method(NATMIC LSA, USS)

Shotcrete for tunnels

The low alkaline content of NATMIC LSA and USS results in an improved workplaceenvironment with reduced dust and less concrete splash, qualities that, in turn, reduce
the environmental burden and decrease material loss during the spraying process.

Portland cement

CementRecycling industrial waste as cement raw material

Super Cement

Emergency repair of roads
railways and airports

This ultraquick-hardening concrete gains practical strength over a short time period,
helping to ensure roads open to traffic in a timely manner.

F-DAC B-FORM

Concrete secondary products

Facilitating the hardening and setting of concrete, these products shorten pre-curing andsteam curing time while lowering costs by reducing fuel use and improving production
efficiency.

DENKA TECHNOCRETE SYSTEM(electrochemical
repair work)

Repair and maintenance ofconcrete structures

When concrete is damaged by salt or neutralization, the TECHNOCONCRETE method canbe used to repair it electrochemically, thereby extending the life of buildings andstructures while reducing life cycle costs and waste generation.

Our Inorganic Products That Are Used in a Wide Variety of Fields

Repair and maintenance ofsewage systems

The sulfuric acid generated inside sewage facilities deteriorates concrete. Therefore, theuse of this acid-resistant mortar for repair and maintenance work can enhance the facility
durability and cut life cycle costs.

Consisting mainly of alumina and silica,

It has been confirmed that AZUMIN,

this crystalline alumina short fiber iswhich incorporates humic acid as aused as a high-temperature heat insula-main ingredient, helps the roots of agri-

EIEN

Concrete precast products

Incorporating special cement additives ( 2CaO/SiO2), EIEN can densify the internal
structure of concrete by reacting with carbonate ions, thereby improving concrete durability
and thus reducing life cycle costs.

tor. In recent years, applications for

cultural crops absorb more nutrients

SUQCEM

Concrete precast products

SUQCEM’s extremely high durability due to its ultrahigh strength can reduce life cycle costs.

DENKA ALCEN are expanding, particu-

and water, thereby improving the yieldlarly for use in exhaust gas purificationof salt-damaged farmland after the

DENKA ALCEN

Fire resistant materials

As a high-temperature thermal insulator, this product reduces heat loss and thus saves
energy. Due to greater heat resistance than ceramic fibers, it eliminates the need for
frequent repair and maintenance work.

devices for automobiles.

desalination process.*

DENKA SOIL PACK
SP20, SP2000

Soil liquefaction
countermeasures

Soil stabilization materials that strengthen soft ground by causing dehydration. Simply by
mixing these products with the soil, the user can improve soft ground.

DENKA ES, ES-L

Soil liquefaction
countermeasures

Boasting high durability, these cement-based quick-hardening materials were especiallydeveloped to accelerate the solidification and hardening of cement in terrestrial grouting
work performed during construction.

DENKA Colloidal
Super

Soil liquefaction
countermeasures

A super-fine powder cement additive boasting high strength and durability as well as
excellent permeability

DENKA S packSoil liquefaction
countermeasures

Grout additive developed to be used as the primary injection material in the dual-tube
double packer grouting method

DENKA Silica Balls

Soil liquefaction
countermeasures

An injection material in slurry form incorporating an ultra fine silica powder and boasting
excellent permeability

CG1000, CG2000

Soil liquefaction
countermeasures

Cavity sealant material with plasticity

AZUMIN

Fertilizer

When mixed into desalinized soil, AZUMIN improves agricultural yields from farmland thathas suffered salt damage due to tsunami flooding.

SUNTIGHT T-K, T-F

Inorganic Products
Dept.

Application

agents for mortar. When mixed into cement, NATMIC products
trigger hydration reactions and rapidly harden cement, thereby
reducing concrete splash and preventing the flaking off of theconcrete surface.

DENKA ALCEN (alumina fiber)

AZUMIN (magnesium humate fertilizer)* Please visit the website of DENKA Azumin Co., Ltd. to see the performance of AZUMIN in areas affected by tsunami flooding following the Great
East Japan Earthquake.
http://www.denka-azumin.co.jp/howto/salt.html (only in Japanese)

Metal case
Catalyst carrier

Supporter

DENKA CSR REPORT 20139

Reference

Reference

DENKA Group Products and Technologies That Contribute to Society

DENKA Group Products and Technologies That Contribute to Society

Employing Proprietary Technologies, We Offer Products and Solutions
That Contribute to Environmental Load Reduction and Social Development.
Elastomers & Performance Plastics Division
Category

Department

Product Name

Technologies that
Chloroprene rubber
Elastomers &support environmentAcetylene Black Dept.
friendly products
Acetylene black
Improve customers’
Elastomers &Chloroprene latex
operational processes Acetylene Black Dept.
Elastomers &Acetylene black
Acetylene Black Dept.
CLEAREN
Reduce energy andresource consumption Performance Plastics
Dept.
MS Polymer

Application

Details of Contribution Effects

DENKA CHLOROPRENE(chloroprene rubber)

DENKA BLACK(acetylene black)

Boasting superior elasticity as well as oil

Incorporating graphitized particles withand flame resistance, this product ischain-like structure, this product boasts

Gaskets for photovoltaic panels

Improving the flame resistance of roof panel gaskets

Vibration insulation rubber forwind power generation

Used as a vibration insulation rubber for wind turbine nacelles

Charging cables for electricvehiclesImproving the flame resistance of charging cables

used in a wide variety of industrial fields,

electrical and thermal conductivity andLithium-ion secondary cells

Used as a conductive aid

such as automotive parts, wire cover-is used in dry batteries, lithium-ion sec-

Aqueous adhesives

Reducing the use of organic solvents in the fixing process and thereby contributing to the
reduction of VOCs and the improvement of the workplace environment

ing, industrial equipment, construction

ondary cells, power cables and semi-materials and adhesives. DENKA

conductor packaging materials.

Tire bladders

Incorporated in bladders used in the manufacture (vulcanization) of tires to improve heat
conductivity and thus shorten vulcanization time (contributing to energy savings)

Food packaging materials

CLEAREN has a processing temperature for sheet that is 50C° lower than that of thecompetitive material PET-G. It is also lightweight (20% lighter than PET-G) and thus
requires less energy in transportation per unit area and volume.

Transparent molded resin
products

Incorporating PS as an ingredient, MS Polymer is lighter than resins used for the same
applications that consist only of PMMA (6% lighter than PMMA). Therefore, MS Polymer
requires less energy in transportation per unit area and volume.

retains the global top share of the chloroprene rubber market.

Life Science & Environment Products Division
Category

Department

Technologies thatEnvironmental Film
support environmentDept.
friendly products

Product NameDX FILM

Household Packaging
SOFRIA
Provide weight-saving Materials Dept.
benefits for users
DENKA Polymer
Easy Disposal Pack
Co., Ltd.
Rain Oasis
Housing &Reduce energy andEnvironmental
resource consumption
Materials Dept.

Contribute to society

Application

Details of Contribution Effects

DENKA DX FILM

Easy-Disposal Pack

In addition to weather, chemical and pollu-

Produced by DENKA Polymer Co., Ltd.,

Macromolecular Sodium
Hyaluronate

Lighter than its competitor A-PET when molded to the same thickness, SOFRIA is used asa material for food containers.

tion resistance properties characteristic of

this food packaging named “Kushatto

Made using high-molecular hyaluronic acid,Pack” is made of novel material to deliver

an active pharmaceutical ingredient thatFood packaging

As it can be easily compressed after use, the Easy Disposal Pack helps reduce the bulkof food packaging waste.

polyvinylidene difluoride (PVDF), this film hasa multilayered structure that gives it superiorsignificant weight savings. It can be easily

DENKA has developed independently, thisadhesiveness to substrates and is used for

crumpled, remaining in this form and thus

pharmaceutical product helps improve joint

Rainwater storage system

Used to collect rainwater through rain gutters. Collected rainwater may be used forwatering the garden, cooling pavements and washing cars, contributing to the effective
utilization of water resources.

such applications as the back sheet materi-

reducing waste volume.

function. (Manufactured and sold by Chugai

Photovoltaic back sheets

Food containers

Used for the back sheet material of photovoltaic panels, which generate clean energy

TOYODRAIN

Corrugated pipes for construction Used in construction and farmland development, TOYODRAIN contributes to the effective
and agricultural use
utilization of water resources.

Rain gutters

Housing materials

Macromolecular
Joint function improvement
Medical Science Dept. sodium hyaluronate
agent
preparation

al of photovoltaic cells for their protection.

Pharmaceutical Co., Ltd.)

Used in residential housing and buildings, rain gutters contribute to the effective utilizationof rainwater.
Helping enhance quality of life by improving joint function

Electronics & Innovative Products Division
Category

Department

Advanced Specialty
Materials Dept.

Technologies that
support environmentfriendly products

Product Name

Spherical alumina

LEDsInserted into a resin matrix as a heat-conducting filler for the purpose of effectively
dissipating the heat generated by LED chips and thereby enhancing LED’s luminanceBN powder

LEDs

Inserted into a resin matrix as a heat-conducting filler for the purpose of effectively
dissipating the heat generated by LED chips and thereby enhancing LED’s luminance

DENKA HITTPLATE is a thermally

Silicon nitride is a non-oxide ceramic

Molded BN products LED manufacturing equipment

Used in LED chip manufacturing equipment as an excellent, easy to cast insulation material

conductive insulated metal substrateboasting high heat resistance as well as

ALONBRIGHT

Phosphor for LEDs

Used in backlights for LCD TVs and LED lighting to reduce their energy consumption

developed to address the growing callsuperior anti-corrosion and wear prop-

Bearings for wind power
generation facilities’ turbines

Used in the bearings of wind power generation facilities’ turbines, which produce clean
energy, this high-strength ceramic improves the durability of these components andthereby significantly reduces the facility maintenance workload.

for the miniaturization and high-density

erties. Silicon nitride is used in automo-

integration of ICs, and is used in various

tive engine parts, industrial machinery

Used as a high-temperature heat dissipater in drive transistors as well as in electric
insulation substrates to improve inverters’ efficiency in using and controlling electricity,
they also facilitate the downsizing of these components.

power-saving devices.

components, electronic equipment andUsed as a high-temperature heat dissipater in drive transistors as well as in electric
insulation substrates to improve inverters’ efficiency in using and controlling electricity

ALONBRIGHT is a weather-resistant

TEMPLOC is a temporary fixing agent

nitride-type phosphor that retains itsthat hardens with a short UV exposure

fluorescent intensity even at high tem-and is easy to remove with hot water.

peratures. This product helps to reduce

Boasting adhering ability equivalent to or

the energy consumption of liquid crystal

greater than conventional thermoplastic

televisions, personal computers, mobile

adhesives, such as waxes, this productterminals and LED lighting.

significantly speeds up the machining

ALSINK, ANP

Railway industry, industrial
instruments, electric and hybrid
vehiclesAir conditioners, automotive
HITTPLATE
Thermally conductive parts
sheets
LEDs
Thermally conductive Automotive parts, smartphones
sheetsand tablets

Improve customers’
Adhesives &operational processes Solutions Dept.

10

DENKA CSR REPORT 2013

Details of Contribution Effects
Reducing the use of environmentally hazardous flame-retardant fillers

Silicon nitride

Electronic Products
Dept.

Application

Spherical fused silica Semiconductor encapsulant
fillerfillers

Used to improve LED luminance by effectively dissipating the heat generated by LED chips
Used as thermal materials to dissipate the heat generated by power semiconductor devices
for electric and hybrid vehicles, these materials contribute not only to the downsizing of
automotive components but also help in the creation of eco-friendly solutions.

TEMPLOC,SOLARLOC

Temporary adhesives for theprocessing of glass insmartphones

Unlike previous temporary adhesives removable only with organic solvents, these products
can be removed with hot water, thereby reducing potential health hazards for workers.

HARDLOC (SGA)

Metal adhesion(substitute for welding)An adhesive that hardens at room temperature and is capable of binding metal materials
together. This product can be substitute for welding and thereby contribute to energy savings.

Products That Support Environment-Friendly Technologies

wind turbine generator bearings.

process of electronic materials.

DENKA CSR REPORT 201311

Reference

Reference

Utilization of Environment- and Energy-Related Subsidies

Environmental Accounting

Developing technologies that reduce environmental burden and energy
consumption through the proactive utilization of the subsidy system

We apply environmental accounting covering investments and spending andtheir environmental and economic effects

Initiatives under the Government Subsidy Programs

Conservation Costs

As part of its activities to reduce environmental burden as well as• Among initiatives aimed at reducing environmental burden, the

The Company’s total environmental investments in fiscal 2012 was ¥3,776 million, of which environmental conservation costs associatedenergy consumption, DENKA actively utilizes subsidy schemes

Shibukawa Plant was able to considerably surpass its target forwith the introduction of energy-efficient facilities accounted for 36%, while the cost of environmental burden reduction measures and R&D

provided by the Japanese Ministry of the Environment (MOE) andCO2 emissions reduction, entitling it to CO2 emission credits. The

spending focused on developing energy saving-related products each represented 31%.

the Ministry of Economy, Trade and Industry (METI). It also utilizes

Omuta Plant succeeded in developing a method to recycle slaked

subsidies aimed at securing private-sector cooperation inlime, a byproduct of acetylene manufacture, into cement products.

government-led advanced technology pilot projects as well as at• The Omuta Plant won two governmental pilot projects for testingencouraging Japan-based production and R&D facility construction.

advanced silicon nitriding and boron nitride production facilities• During the fiscal 2010 to 2012 period, DENKA received subsidies

under the Innovation Center Establishment Assistance Program.

and approvals for subsidies for eight projects.
• As for energy-saving initiatives, the Omi Plant’s cement section

Coverage: Plants and Research Institutes

Category

Details

Investments

Expenses(Subtotal)

2,590

2,627

(1) Pollution prevention

Environmental burden reduction measures

1,165

2,120

(2) Conservation

Energy saving

1,347

65

(3) Recycling resources

Using resources effectively

77

442

1. Business site costs

Construction is now under way at the Chiba Plant to establish an

Conservation Costs (millions of yen)acetylene black production facility that utilizes the Domestic

2. Upstream and downstream costs

Changing raw materials

00Business Location Promotion Project Subsidy.

3. Administrative costs

Environmental education

2

39

in decreasing annual energy consumption well in excess of their

4. R&D costs

Products that contribute to energy saving

1,183

940

targets. Similarly, the Omi Plant’s POVAL production facilities are

5. Social activity costs

Environmental education

06

expected to reduce energy consumption in fiscal 2013.

6. Environmental damage costs

Community relations

1

102

and the Chiba Plant’s styrene monomer section have succeeded

7. Others
Project

Business Site

Subsidy (received in fiscal 2012)

1

Energy-saving initiative involving the introduction of new facilities(burners for cement calcining and induced draft fans for cooling)

Omi Plant

Subsidy program for the rationalization of business operators’energy use (ANRE,* METI)

2

Energy-saving initiative utilizing the latest technologies at petrochemicalplants (styrene monomer-related facilities)

Chiba Plant

Subsidy program for the rationalization of business operators’energy use (ANRE, METI)

3

Energy saving initiative involving the improvement of heat recovery at
the Omi Plant’s POVAL production facilities

Omi Plant

Subsidy program for the rationalization of business operators’energy use (ANRE, METI)

4

CO2 emissions reduction initiative through a fuel changeover from
A-class heavy oil to town gas and LPG

Shibukawa
Plant

Voluntary Emissions Trading Scheme (MOE)

5Development of a method to recycle slaked lime generated fromacetylene manufacture into cement products

Omuta Plant Environment Research and Technology Development Fund (MOE)

6 Demonstration of a high-frequency induction furnace for silicon nitriding

Omuta Plant Innovation Center Establishment Assistance Program (METI)

Demonstration of a boron nitride production facility
7(for use in next-generation high-heat conductive fillers)

Omuta Plant Innovation Center Establishment Assistance Program (METI)

Establishment of a production facility for a high-performance conducting
8
agent (acetylene black) for LiB

Omuta Plant Domestic Business Location Promotion Project Subsidy (METI)

Total

We calculated the environmental load data.
Environmental LoadUnits

CO2 emissions (from energy and non-energy sources)

228

9

SOx emissions

t

217

116

101

NOx emissions

t

4,240

4,044

196

Soot and dust emissions

t

128

93

35

COD (BOD) discharges

t

1,295

864

431

1,000t

81,30077,860

3,440

t

139

103

36

1,000t

138

132

6

t

228

180

48

1,000t

35

35

(0)

Water used

CO2 emissions from transportation

With Enhanced Cooperation Across the Entire Supply Chain, DENKA Is Striving
to Reduce Its Environmental Impact Through Product Life Cycle Assessment.

Economic Effects
We calculated proceeds from selling waste, energy savings, reductions in waste treatment costs and yield improvements.
Category
Profits
Cost reductions

Life Cycle Assessment (LCA) Initiative

Total

We recognize that the development and provision of environment-

Current Initiatives:

friendly products is an important social mission. Life cycle assess-• Utilizing LCA as a mean to promote energy saving and CO2

ment (LCA) is one of the criteria used to evaluate products of thiskind. Taking this into account, we are promoting LCA for our mainstay products, with an eye to ensuring the sustainability of our cor-

Effects

237

Final waste disposal

Life Cycle Assessment (LCA) Initiative

Fiscal 2011 Results Fiscal 2012 Results

10,000t

Waste

Reference

03,714

Conservation Effects

PRTR substance emissions* Agency for Natural Resources and Energy (an organization under METI)

0
3,776

Item

Details

Effects (millions of yen)

Proceeds from selling waste from core operations and income fromrecycling waste

Sales profits

406

Lowering energy costs by conserving energy

Conserving energy

189

Reducing waste treatment costs by conserving or recycling resources

Using resources effectively

33
628

reduction while spreading it throughout supply chain• Promoting LCA aimed at developing environment-friendly products at six main domestic plants and one Group subsidiaryporate activities.

12

DENKA CSR REPORT 2013

DENKA CSR REPORT 201313

Reference

Reference

Consolidated Financial Statements
Consolidated Balance Sheets (Summary)

Consolidated Financial Statements

Consolidated Statements of Income (Summary)Millions of yen

As of Mar. 31,
2013

As of Mar. 31,
2012¥158,595¥153,637

Cash and deposits

10,8008,308

Notes and accounts receivable,
trade

77,11178,059Account item

AssetsCurrent assets

Consolidated Statement of Shareholders’ Equity for Fiscal 2012 (April 1, 2012, to March 31, 2013)

Millions of yen

Account item

Net sales

Fiscal 2012

Fiscal 2011

¥341,645¥364,712

Cost of sales

269,326

291,421

Selling, general andadministrative expenses

53,501

52,576

18,817

20,713Operating income

Shareholders’ Equity

Balance at April 1, 2012

208

208

Non-operating expense

4,407

4,326

(419)

17,82418,996

Impact of mergers with non-consolidated
subsidiaries

590

1,657

Purchase of treasury stock

17,233

17,338(1,956)(1,956)

Disposal of treasury stock

0

(0)

1

1

Cancellation of treasury stock(8)(6,403)

6,412—

Intangible fixed assets

1,243

1,770

Investment securities

42,66538,889

Income taxes—current

5,959

3,801

Reversal of revaluation reserve for land

Other

6,786

6,734

Income taxes—deferred

(132)

2,386

Allowance for doubtful accounts

(148)

(116)

Minority interests in income (loss)

151

(179)

Net changes of items other thanshareholders’ equity¥415,356¥402,552¥ 11,255¥ 11,330

Total assets

Net income

160,228

95(503)

Income before income taxes andminority interests(6,390)95

2,608Extraordinary losses

80,327

11,255

3,414

248,915

49,293

11,255Non-operating income

201,637

36,998Impact of changes in the scope of
consolidation

13,162

256,761

Total Shareholders’EquityNet income

54,527206,214

Treasury Stock(4,783)

10,474

Property, plant and equipment

Retained Earnings(4,783)60,712

Non-current assets

Capital Surplus

Dividends from surplus

Other

Ordinary income

Capital Stock

Changes of items during the period

Inventories

Allowance for doubtful accounts(4)

Total changes of items during the period—
36,998

Liabilities¥160,676

Notes and accounts payable,
trade

55,22652,367

Short-term loans

47,08545,323

Commercial paper

14,00013,000Current portion of corporate
bonds

10,00010,000Long-term liabilities

Consolidated Statements of Comprehensive Income
Millions of yen

4,457

4,815

49,28480,693(1,933)

165,043

Income before minority interests—

11,255

Impact of changes in the scope of
consolidation—

95

Impact of mergers with non-consolidated
subsidiaries—

208

Purchase of treasury stock—(1,956)

Disposal of treasury stock

—

1

4

20,73819,413

234,647

229,815Net Assets
165,043

160,228

Capital stock

36,99836,998

Capital surplus

49,28449,293Retained earnings

80,69380,327

Treasury stock(1,933)(6,390)

Accumulated othercomprehensive income

13,957

10,174

Minority interests

1,707

2,334

Total net assets

180,709172,737

Total liabilities and net assets¥415,356¥402,552

Changes of items during the period

Net income

1

Other long-term liabilities

Revaluation reserve for land

—

1,374

Foreign currency translation
adjustments

Cancellation of treasury stock

—

—

1,357

(493)

Reversal of revaluation reserve for land—(4)

Share of other comprehensive
income of associates accounted
for using equity method

80

(52)

Net changes of items other thanshareholders’ equity

Total other comprehensive income

3,820

1,095

¥15,227¥12,246

15,033

12,439Comprehensive Income

2,433

1

4

3,783

(626)

3,156

2,433

1

4

1,343

3,783

(626)

7,972

Balance at March 31, 2013

7,516

—

9,064

(2,623)

13,957

1,707

180,709(Breakdown)Comprehensive income attributableto owners of the parent
Comprehensive income
attributable to owners of theminority interests

Consolidated Statements of Cash Flows (Summary)

194

(193)

Millions of yen

Fiscal 2012

Fiscal 2011

Net cash provided by operating activities

40,21528,521

Net cash used in investing activities(25,864)(22,363)

Net cash used in financing activities(12,784)(4,050)Account item

153

(59)

Net increase in cash and cash equivalents

1,720

2,047

Cash and cash equivalents at the beginning of the year

8,207

6,160

Increase in cash and cash equivalents due to the new consolidation of subsidiaries

481—

Increase in cash and cash equivalents due to the merger of non-consolidated subsidiaries

270—

10,6808,207

Cash and cash equivalents at the end of the year

DENKA CSR REPORT 2013

1,343

Total changes of items during the period

Effect of exchange rate changes on cash and cash equivalents

14

172,737¥11,150

Deferred gains or losses onhedges34,725

2,334

10,174¥11,406

263

28,156(3,967)(4,783)

2,380

Long-term loans

9,059

Total Net
Assets—Valuation difference on
available-for-sale securities

15,000(1)

Minority
Interests

Dividends from surplus

Other comprehensive income

69,1395,083

Foreign Currency Total Accumulated
Translation
Other CompreAdjustments
hensive Income

Fiscal 2011

39,98515,000

Balance at April 1, 2012

Revaluation
Reservefor LandFiscal 2012

44,44063,894

Shareholders’ equity

366

Unrealized Deferred Gains
Gain on Otheror Losses
Securities
on Hedges

Account item

Bonds

Total liabilities(8)

Accumulated Other Comprehensive Income¥170,752

Other current liabilities(4)—

Balance at March 31, 2013

Current liabilities

Millions of yen

DENKA CSR REPORT 201315

Reference
SectionGlobal Reporting Initiative (GRI) Content Index
Please see below to find disclosure information listed in the Sustainability Reporting Guidelines Version 3.1 (G3.1).
Note: Ref. = References (PDF), Site = Site Reports (PDF)

SectionDisclosure

Location of Disclosure
PART I: Profile Disclosures

1. Strategy and Analysis
1.1 Statement from the most senior decision-maker of the organization

1.2

Description of key impacts, risks, and opportunities

2. Organizational Profile
2.1 Name of the organization
2.2
2.3
2.4
2.5
2.6
2.7

Primary brands, products, and/or services
Operational structure of the organization, including main divisions, operating companies,
subsidiaries, and joint ventures
Location of organization’s headquarters
Number of countries where the organization operates, and names of countries with either major
operations or that are specifically relevant to the sustainability issues covered in the report
Nature of ownership and legal form
Markets served (including geographic breakdown, sectors served, and types of customers/
beneficiaries)

2.8

Scale of the reporting organization

2.9

Significant changes during the reporting period regarding size, structure, or ownership2.10 Awards received in the reporting period

4.11• To Our Stakeholders (p.4-7)• To Our Stakeholders (p.4-7)• The DENKA Group’s CSR (p.10-11)• Fiscal 2012 Overview (p.14)• Renewing DENKA100 Growth Strategies (p.15)• Responsible Care Activities (Ref. p.2)
• Corporate Profile (p.38)• DENKA’s Four New Divisions (p.17)• Products and Technologies that Contribute toSociety (Ref. p.8-11)• Corporate Profile (p.38)• Main Subsidiaries (Site p.16-26)• Corporate Profile (p.38)• Corporate Profile (p.38)• Overseas Subsidiaries (Site p.16-21)• Corporate Profile (p.38)—• Consolidated Financial Highlights (p.35)• Corporate Profile (p.38)• Consolidated Financial Statements (Ref. p.14-15)• Fiscal 2012 Overview (p.14)• Our R&D Activities (p.16)• Site Reports p.3, 9, 15, 17, 25

3. Report Parameters
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.9

• Editorial Policy (p.39)• Securing Worksite Safety (p.12)
Date of most recent previous report (if any)
• Online CSR Report archive (PDF)
Reporting cycle (annual, biennial, etc.)• Online CSR Report archive (PDF)
Contact point for questions regarding the report or its contents• Inquiries (p.39)• The DENKA Group’s CSR (p.10-11)
Process for defining report content• With Our Stakeholders (p.26-34)• Environmental Management (p.18)
Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers)• Editorial Policy (p.39)• Environmental Management (p.18)
State any specific limitations on the scope or boundary of the report• Editorial Policy (p.39)
Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other • Initiatives to Secure Our Electricity Supply
entities that can significantly affect comparability from period to period and/or between organizations (p.22-23)
Reporting period (e.g., fiscal/calendar year) for information provided• Securing Worksite Safety (p.12-13)
Data measurement techniques and the bases of calculations, including assumptions and techniques• Environmental Management (p.18)
underlying estimations applied to the compilation of the Indicators and other information in the report• Site Reports p.2-13

Explanation of the effect of any re-statements of information provided in earlier reports, and the3.10 reasons for such re-statement (e.g.,mergers/acquisitions, change of base years/periods, nature ofbusiness, measurement methods)
Significant changes from previous reporting periods in the scope, boundary, or measurement
methods applied in the report
3.12 Table identifying the location of the Standard Disclosures in the report
3.13 Policy and current practice with regard to seeking external assurance for the report
4. Governance, Commitments, and Engagement
Governance structure of the organization, including committees under the highest governance body
4.1
responsible for specific tasks, such as setting strategy or organizational oversight
3.11• Securing Worksite Safety (p.12-13)• Environmental Management (p.18)• Site Reports p.2-13—• GRI Contents Index (Ref. p.16-19)• Third-Party Opinions (p.36-37)• Corporate Governance (p.8-9)

4.2

Indicate whether the Chair of the highest governance body is also an executive officer• Corporate Governance (p.8-9)• Executive Officers (p.39)

4.3(For organizations that have a unitary board structure) The number and gender of members of thehighest governance body that are independent and/or non-executive members• Corporate Governance (p.8-9)• Executive Officers (p.39)• Financial Reports (in Japanese)

4.4

Mechanisms for shareholders and employees to provide recommendations or direction to thehighest governance body

• Corporate Governance (p.8-9)• Communication with Shareholders and Investors
and Public Relations (p.34)

4.5
4.6
4.7

4.8

16

Linkage between compensation for members of the highest governance body, senior managers, andexecutives (including departure arrangements), and the organization’s performance (including social • Financial Reports (in Japanese)and environmental performance)
Processes in place for the highest governance body to ensure conflicts of interest are avoided• Corporate Governance (p.8-9)
Process for determining the composition, qualifications, and expertise of the members of the highest
governance body and its committees, including any consideration of gender and other indicators of • Corporate Governance (p.8-9)
diversity• To Our Stakeholders (p.4-7)• The DENKA Group’s CSR (p.10-11)
Internally developed statements of mission or values, codes of conduct, and principles relevant to• Fiscal 2012 Overview (p.14)
economic, environmental, and social performance and the status of their implementation• Renewing DENKA100 Growth Strategies (p.15)• Environmental Management (p.18)

DENKA CSR REPORT 2013

Disclosure
Location of Disclosure
Procedures of the highest governance body for overseeing the organization’s identification andmanagement of economic, environmental, and social performance, including relevant risks and• Corporate Governance (p.8-9)
4.9
opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, • Responsible Care Activities (Ref. p.2)
and principles• Corporate Governance (p.8-9)
Processes for evaluating the highest governance body’s own performance, particularly with respect
4.10• Environmental Management (p.18)
to economic, environmental, and social performance• Responsible Care Activities (Ref. p.2)
Explanation of whether and how the precautionary approach or principle is addressed by theorganization

Externally developed economic, environmental, and social charters, principles, or other initiatives to
4.12
which the organization subscribes or endorses• Risk Management (p.9)• Securing Worksite Safety (p.12-13)• Initiatives at Supply Chain (p.30-31)• Product Safety Management System (Ref. p.4-5)• Occupational Safety and Health Management
System (Ref. p.6)
• ISO 14001 and 9001 Management Systems(Ref. p.7)

Memberships in associations (such as industry associations) and/or national/international advocacy
organizations in which the organization: * Has positions in governance bodies; * Participates in• Product Safety Management System (Ref. p.5)
projects or committees; * Provides substantive funding beyond routine membership dues; or * Views
membership as strategic
4.14 List of stakeholder groups engaged by the organization• With Our Stakeholders (p.26-34)
4.15 Basis for identification and selection of stakeholders with whom to engage—
Approaches to stakeholder engagement, including frequency of engagement by type and by
4.16• With Our Stakeholders (p.26-34)
stakeholder group
Key topics and concerns that have been raised through stakeholder engagement, and how the• The DENKA Group’s CSR (p.10-11)
4.17
organization has responded to those key topics and concerns, including through its reporting• With Our Stakeholders (p.26-34)
PART II: Disclosures on Management Approach (DMAs) and Performance Indicators
Economic• To Our Stakeholders (p.4-7)• The DENKA Group’s CSR (p.10-11)• Fiscal 2012 Overview (p.14)
DMA Disclosure on Management Approach• Renewing DENKA100 Growth Strategies (p.15)• Our R&D Activities (p.16)• DENKA’s Four New Divisions (p.17)
Economic performance
Direct economic value generated and distributed, including revenues, operating costs, employee• Consolidated Financial Highlights (p.35)
EC1 compensation, donations and other community investments, retained earnings, and payments to• Consolidated Financial Statements (Ref. p.14-15)
capital providers and governments
Financial implications and other risks and opportunities for the organization’s activities due to• To Our Stakeholders (p.4-7)
EC2
climate change• Environmental Management (p.18)
EC3 Coverage of the organization’s defined benefit plan obligations—• Environment- and Energy-Related Subsidies
EC4 Significant financial assistance received from government(Ref. p.12)• Site Reports p.5
Market presence
Range of ratios of standard entry level wage by gender compared to local minimum wage at
EC5—significant locations of operation
Policy, practices, and proportion of spending on locally-based suppliers at significant locations of
EC6• CSR Procurement (p.30)
operation
Procedures for local hiring and proportion of senior management hired from the local community at
EC7—significant locations of operation
Indirect economic impacts• DENKA’s Four New Divisions (p.17)
Development and impact of infrastructure investments and services provided primarily for public• Initiatives with Society (p.32-33)
EC8benefit through commercial, in-kind, or pro bono engagement• Products and Technologies that Contribute toSociety (Ref. p.8-11)
EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts • Fiscal 2012 Overview (p.14)
Environmental• To Our Stakeholders (p.4-7)
DMA Disclosure on Management Approach• Environmental Management (p.18)
Materials
EN1 Materials used by weight or volume• Overview of Environmental Burdens (p.18)• Overview of Environmental Burdens (p.18)
EN2 Percentage of materials used that are recycled input materials• Recycling Business in Cement Production (p.24-25)
EnergyEN3 Direct energy consumption by primary energy source• Overview of Environmental Burdens (p.18)
EN4 Indirect energy consumption by primary source—• Environmental Performance (p.19)
EN5 Energy saved due to conservation and efficiency improvements• Streamlining Logistics (p.21)• To Our Stakeholders (p.4-7)• DENKA’s Four New Divisions (p.17)
Initiatives to provide energy-efficient or renewable energy based products and services, andEN6• Environmental Management (p.18)
reductions in energy requirements as a result of these initiatives• Products and Technologies that Contribute toSociety (Ref. p.8-11)
EN7 Initiatives to reduce indirect energy consumption and reductions achieved—
Water• Overview of Environmental Burdens (p.18)
EN8 Total water withdrawal by source• Site Reports
EN9 Water sources significantly affected by withdrawal of water• Initiatives to Secure Our Electricity Supply (p.22)
EN10 Percentage and total volume of water recycled and reused—
Biodiversity
Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of
EN11—high biodiversity value outside protected areas

4.13

DENKA CSR REPORT 201317

Section

Disclosure
Description of significant impacts of activities, products, and services on biodiversity in protected
EN12
areas and areas of high biodiversity value outside protected areas
EN13 Habitats protected or restored
EN14 Strategies, current actions, and future plans for managing impacts on biodiversity
Number of IUCN Red List species and national conservation list species with habitats in areas
EN15
affected by operations, by level of extinction risk
Emissions, effluents and waste
EN16 Total direct and indirect greenhouse gas emissions by weight
EN17 Other relevant indirect greenhouse gas emissions by weight
EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved
EN19 Emissions of ozone-depleting substances by weight
EN20 NOx, SOx, and other significant air emissions by type and weight
EN21 Total water discharge by quality and destination
EN22 Total weight of waste by type and disposal method

Location of Disclosure• Site Reports p.3• Site Reports p.3• Site Reports p.3—• Environmental Management (p.18-19)• Site Reports p.2-13—• To Our Stakeholders (p.4-7)• Environmental Management (p.18-19)• PRTR Substance Emissions (p.20)• SOx and NOx Emissions (p.19)• Environmental Management (p.18-19)• Site Reports p.2-13• Environmental Management (p.18-19)• Site Reports p.2-13• Securing Worksite Safety (p.12)

EN23 Total number and volume of significant spills
Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the
EN24—
Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationallyIdentity, size, protected status, and biodiversity value of water bodies and related habitats significantly
EN25—
affected by the reporting organization’s discharges of water and runoff
Products and services• DENKA’s Four New Divisions (p.17)• Products and Technologies that Contribute to
EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation Society (Ref. p.8-11)• Initiatives to Secure Our Electricity Supply(p.22-23)
EN27 Percentage of products sold and their packaging materials that are reclaimed by category• DENKA Polymer (Site p.22)
Compliance
Monetary value of significant fines and total number of non-monetary sanctions for non-compliance
EN28—
with environmental laws and regulations
Transport
Significant environmental impacts of transporting products and other goods and materials used for
EN29• Streamlining Logistics (p.21)
the organization’s operations, and transporting members of the workforce
Overall
EN30 Total environmental protection expenditures and investments by type
• Environmental Accounting (Ref. p.13)
Social: Labor Practices and Decent Work• To Our Stakeholders (p.4-7)
DMA Disclosure on Management Approach• Initiatives with Employees (p.26)• Site Reports
Employment• Corporate Profile (p.38)
LA1 Total workforce by employment type, employment contract, and region, broken down by gender• Site Reports
LA2 Total number and rate of new employee hires and employee turnover by age group, gender, and region • Initiatives with Employees (p.26-29)
Benefits provided to full-time employees that are not provided to temporary or part-time employees,
LA3• Initiatives with Employees (p.26-29)
by major operations
LA15 Return to work and retention rates after parental leave, by gender• Initiatives with Employees (p.27)
Labor/management relations
LA4 Percentage of employees covered by collective bargaining agreements• Financial Reports (in Japanese)
Minimum notice period(s) regarding significant operational changes, including whether it is specified
LA5—
in collective agreements
Occupational health and safety
Percentage of total workforce represented in formal joint management-worker health and safety
LA6—committees that help monitor and advise on occupational health and safety programs
Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related
LA7• Securing Worksite Safety (p.12)
fatalities by region and by gender
Education, training, counseling, prevention, and risk-control programs in place to assist workforce
LA8—
members, their families, or community members regarding serious diseases
LA9 Health and safety topics covered in formal agreements with trade unions• Initiatives with Employees (p.27)
Training and education
LA10 Average hours of training per year per employee by gender, and by employee category—
Programs for skills management and lifelong learning that support the continued employability of
LA11• Employee Education (p.28)
employees and assist them in managing career endings
LA12 Percentage of employees receiving regular performance and career development reviews, by gender —Diversity and equal opportunity
Composition of governance bodies and breakdown of employees per employee category according
LA13• Employing People with Disabilities (p.27)
to gender, age group, minority group membership, and other indicators of diversity
Equal remuneration for women and men
Ratio of basic salary and remuneration of women to men by employee category, by significant
LA14—
locations of operation
Social: Human Rights• To Our Stakeholders (p.4-7)
DMA Disclosure on Management Approach• The DENKA Group Guidelines (Ref. p.1)
• CSR Procurement (p.30)
Investment and procurement practices
Percentage and total number of significant investment agreements and contracts that include
HR1—
clauses incorporating human rights concerns, or that have undergone human rights screening
Percentage of significant suppliers, contractors and other business partners that have undergone
HR2• CSR Procurement (p.30)
human rights screening, and actions taken

18

DENKA CSR REPORT 2013

SectionDisclosure
Location of Disclosure
Total hours of employee training on policies and procedures concerning aspects of human rights thatHR3—
are relevant to operations, including the percentage of employees trained
Non-discrimination
HR4 Total number of incidents of discrimination and actions taken—
Freedom of association and collective bargaining
Operations and significant suppliers identified in which the right to exercise freedom of association andHR5—collective bargaining may be violated or at significant risk, and actions taken to support these rights
Child labor
Operations and significant suppliers identified as having significant risk for incidents of child labor,
HR6• CSR Procurement (p.30)
and measures taken to contribute to the effective abolition of child labor
Forced and compulsory labor
Operations and significant suppliers identified as having significant risk for incidents of forced or comHR7• CSR Procurement (p.30)
pulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor
Security practices
Percentage of security personnel trained in the organization’s policies or procedures concerning
HR8• The DENKA Group Guidelines (Ref. p.1)
aspects of human rights that are relevant to operations
Indigenous rights
HR9 Total number of incidents of violations involving rights of indigenous people and actions taken—
Assessment
Percentage and total number of operations that have been subject to human rights reviews and/or
HR10—
impact assessments
Remediation
Number of grievances related to human rights filed, addressed and resolved through formal
HR11• Compliance Hotline System (p.9)
grievance mechanisms
Social: Society• To Our Stakeholders (p.4-7)
DMA Disclosure on Management Approach• Initiatives with Society (p.32-33)• Site Reports
Local communities
Percentage of operations with implemented local community engagement, impact assessments,
SO1—
and development programs• To Our Stakeholders (p.4)• Reports on Accidents at the Omi and Chiba
SO9 Operations with significant potential or actual negative impacts on local communities
Plants (p.7)• Securing Worksite Safety (p.12-13)• To Our Stakeholders (p.4)
Prevention and mitigation measures implemented in operations with significant potential or actual• Reports on Accidents at the Omi and Chiba
SO10
negative impacts on local communities
Plants (p.7)• Securing Worksite Safety (p.12-13)
Corruption
SO2 Percentage and total number of business units analyzed for risks related to corruption—
SO3 Percentage of employees trained in organization’s anti-corruption policies and procedures• Corporate Governance (p.8-9)
SO4 Actions taken in response to incidents of corruption• Corporate Governance (p.8-9)
Public policy• Environment- and Energy-Related Subsidies
SO5 Public policy positions and participation in public policy development and lobbying(Ref. p.12)
Total value of financial and in-kind contributions to political parties, politicians, and related institutions
SO6—
by country
Anti-competitive behavior
Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and
SO7• Corporate Governance (p.9)
their outcomes
Compliance
Monetary value of significant fines and total number of non-monetary sanctions for non-complianceSO8—with laws and regulations
Social: Product Responsibility• Initiatives at Supply Chain (p.30-31)
DMA Disclosure on Management Approach• Product Safety Management System (Ref. p.4-5)• ISO 9001 Management System (Ref. p.7)
Customer health and safety
Life cycle stages in which health and safety impacts of products and services are assessed for• Initiatives at Supply Chain (p.30-31)
PR1 improvement, and percentage of significant products and services categories subject to such
• Product Safety Management System (Ref. p.4-5)
procedures• ISO 9001 Management System (Ref. p.7)
Total number of incidents of non-compliance with regulations and voluntary codes concerning health • Initiatives at Supply Chain (p.30-31)
and safety impacts of products and services during their life cycle, by type of outcomes• Product Safety Management System (Ref. p.4-5)
Product and service labellingType of product and service information required by procedures, and percentage of significant
PR3• DENKA’s Four New Divisions (p.17)
products and services subject to such information requirements
Total number of incidents of non-compliance with regulations and voluntary codes concerning
PR4• Initiatives at Supply Chain (p.30-31)
product and service information and labeling, by type of outcomes
PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction • Initiatives at Supply Chain (p.30-31)
Marketing communications
Programs for adherence to laws, standards, and voluntary codes related to marketing• Information Security/System Administration/
PR6
communications, including advertising, promotion, and sponsorship
Online Information Management (Ref. p.3)
Total number of incidents of non-compliance with regulations and voluntary codes concerning• Information Security/System Administration/
PR7
marketing communications, including advertising, promotion, and sponsorship by type of outcomes
Online Information Management (Ref. p.3)
Customer privacy
Total number of substantiated complaints regarding breaches of customer privacy and losses ofPR8—customer data
Compliance
Monetary value of significant fines for non-compliance with laws and regulations concerning thePR9—provision and use of products and services

PR2

DENKA CSR REPORT 201319