


PossibilityofchemistryDenka Group
ESG management

Environment

SocialGovernancePossibilityofchemistry

Denka Sustainability Book

2023

Contents
Denka Group ESG management

GovernanceDenka Group ESG Basic Policy …………………… 02

Biography of our Directors ………………………… 33

Our Material Issues (Materiality)…………………… 03

Overview of our Board of Directors andAudit Committee Members………………………… 35

Environment
Achievement of Carbon Neutrality ………………… 05
Environmental Conservation and Minimization ofEnvironmental Impact ……………………………… 10

Enhancement of Corporate Governance………… 36
Placing the Utmost Priority on Safety ……………… 40
Quality Assurance Management…………………… 41
Risk Management…………………………………… 42

Policies……………………………………………… 44
Social■ Covered Period
This report covers FY2022 (April 1, 2022 to March 31, 2023)
in principle. and also includes additional information from

Initiatives…………………………………………… 45
Overview of our Employees ……………………… 26
Promotion of Diversity, Equity & Inclusion ………… 27

2023.Also, this report presents data on numerical targets forWork Style Reforms ………………………………… 28

and performance statistics from the past several fiscal years.

Health and Productivity Management …………… 29

Date of publication:December, 2023

Denka Sustainability Book 2023

01

Denka Group
ESG management

Denka Group ESG management

Denka GroupESG Basic Policy

Environment

SocialGovernance

The Denka Group recognizes the issues related with sustainability, meaning the quality of being able to continue over a medium- to long-term period, to be important management mattersaffecting its corporate viability. The Denka Group will take a proactive and spontaneous approach to tackling the sustainability-related issues which range from consideration for global
environmental problems such as climate change, respect for human rights, consideration for employee health and working environment, appropriate treatment of workers, maintenance of fair
and appropriate transactions with business partners and to crisis management at times of natural disaster and other emergencies.
Moreover, in terms of increasing medium- to long-term corporate value, for the realization of a sustainable society and the solution of challenges shared by all humanity, the Denka Group will
work in tandem with our business partners and supply chain to tackle the Sustainable Development Goals (SDGs) advocated by the United Nations and will strive to be a company capable ofcontributing to society by offering our innovation and solution as a chemical manufacturer.
Under the Denka Group Vision, consisting of Denka’s Core Value, Purpose, and Mission, which forms the basis of all our employees’ activities and represents the future of Denka, we have set
out the Denka Group ESG Basic Policy governing our handling of Environmental, Social and Governance (ESG) issues in the course of the Group’s business activities, and will strive to adhere toeach of the underlying principles of this policy and increase corporate value by developing an effective corporate governance system underpinned by strong moral compass.
Note: The letters “E,” “S” and “G” in the left column of the following table refer to Environmental, Social and Governance issues, respectively.

Tackling sustainability issues
Consideration for climate change and other global environmental issues, respect for human rights, considerationfor employee health and the working environment, fair and appropriate wages, fair and appropriatetransactions
with business partners, risk management for natural disasters, etc.

Initiatives

Social Issues
Denka Group Basic ESG Policy

E

Global warming
Marine plastic
pollution

S

Epidemics of emerging
and resurgent
infectious diseases
Global population growth
and the wealth disparity
Food andwater shortages

ESG information site

Denka Group basic ESG policy

G● Promote climate change countermeasures● Reduce the environmental impact and preserve/protectbiodiversity● Sustainable economic growth and solving social issues
Paris Agreement● Respect for human rights(COP 21)● Develop inclusive workplace environments with the utmost
priority on safety● Participate in, contribute to, and build trust toward creating
better local communities● Build relationships of trust with customers● Promote diversity and inclusion, nurture human resource
development, and reform working styles● Fair corporate activities
Action Plan on Business● Information disclosure and constructive dialogue withand Human Rights
stakeholders● Risk management● Protect and manage our tangible and intangible assets● Ensure the role of top management and the implementation ofthis policy

SDGs

The UN Global
Compact

https://denka_sustainability.disclosure.site/en/themes/727
Denka Sustainability Book 2023

02

Denka Group
ESG management

Denka Group ESG management

Environment

SocialGovernance

ESG Management Framework of the Denka GroupOur Material Issues (Materiality)

The Sustainability Committee (chaired by the President) has been established within the Executive
Division to supervise the proactive and active efforts of the Executive Division to address issues
related to sustainability (medium- to long-term sustainability). The committee meets five times a yearwith the President serving as chairperson, the Executive Officer in charge of the Corporate Planning
Department as vice chairperson, and the Executive Officer in charge of the Management Department
as a committee member, with Directors,excluding committee members, present as observers.

1. Materiality (14 items)

Materiality (14 items)

・We have classified materiality issues into two
categories, “responsibility and contributing toa sustainable society”, in which we contributeto society through our business activities, and“strengthening our business foundation”, which is arequirement for corporate survival and sustainablegrowth.

Responsibility and contribution toa sustainable society (5 items)

The committee deliberates and makes recommendations on sustainability initiatives implemented by
the Executive Division and the achievement of non-financial target KPIs (Key Performance Indicators).
In the implementation of deliberations and recommendations, from the perspective of ensuringtransparency and fairness in corporate decision-making and the realization of effective corporate
governance, the committee will consider the impact of risks and profit opportunities on our businessactivities, taking into account the level of consistency between our efforts to address sustainability
issues and our management strategies and issues. The results of these deliberations will be reported to
the Board of Directors.
The Portfolio Transformation Committee (chaired by the President) was established to further promotea change to our business portfolio based on three elements: specialty, megatrends, and sustainability.
By incorporating indicators such as CO2 emissions and labor productivity, we aim to achieve our targetof 100% three-star businesses by 2030.

・Sustainable growth through the creation of
new businesses
・Increasing healthy life expectancy andcorrecting health disparity
・Sustainable cities and fulfilling daily lives
・Achievement of carbon neutrality

・Responsibility and contribution to a sustainable
society (5 items) consists of items that the Denka
Group should address in order to resolve social
issues through its business operations, such as
global warming countermeasures, healthcare, andsustainable cities and lifestyles.

・Environmental conservation andminimization of environmental footprint
Strengthening our business foundation (9 items)

・Strengthening of HR development systems

・Strengthening our business foundation (9 items)
is based on the Denka Group ESG Basic Policy,
and issues related to human resources, a sourceof sustainable growth, and initiatives to fulfill social
responsibilities through supply chain interaction.

・Promotion of Diversity, Equity & Inclusion
・Increasing healthy life expectancy andcorrecting health disparity
・Process reforms

・Respect for human rights

・Place the utmost priority on safety・Supply chain management

General Meeting of Shareholders
Board of Directors

Audit Committee

・Improving product safety and quality

・Enhancement of corporate governanceNomination and Remuneration
Advisory Committee

Business Execution
Management Committee

Sustainability Committee

Portfolio Transformation Committee

Other committees and business execution divisions■ Management divisions : Report on the status of activities and non-financial KPI progress
twice a year
■ Business divisions : Report on responses to risks and opportunities related to sustainability
issues yearly in March

2. Incorporating into management（Setting management strategies and KPIs）
・Materiality is an essential element to address the risks and opportunities connected to issues ofsustainability in our management base from a medium- to long-term perspective and aiming to realize
our vision. It should form the cornerstone of our business activities.
・Under our new management plan, "Mission 2030," the entire Denka Group will work to resolve
global issues, such as climate change and contribute to the realization of a sustainable society by
establishing management strategies that are linked to materiality.
・The new materiality was reflected in each of the individual policies and measures in our management
strategy, and KPIs were formulated with an awareness of visualizing progress management. We aim
to achieve sustainable growth by resolving ESG issues and improving earnings, and accelerating thisvirtuous cycle.
ESG information site Our material issues (materiality)
https://denka_sustainability.disclosure.site/en/themes/729
Denka Report 2023

Our material issues (materiality)

Denka Sustainability Book 2023

03

Denka Group ESG management

Denka Group
ESG management

Environment

SocialGovernance

Human Rights Initiatives

The Denka Group Human Rights Policy

Response to Human Rights Risks

The Denka Group Human Rights Policy was approved by the Board of Directors and enacted on
September 11, 2023.
This human rights policy applies to all Group executives and employees, and its business partners
and suppliers are urged to support and respect it. Furthermore, we have sent a Self-Assessment
Questionnaire (SAQ) to major suppliers regarding various risks, including human rights risks, asking
for their response.
We will continue to promote awareness of and disseminate the Denka Group Human Rights Policy to
all Group employees and work systematically together with expert third parties on human rights due
diligence and redress mechanisms.

We have been encouraging the “maintenance of favorable human relationships” in line with the
Denka Group Ethics Policy. Accordingly, all Denka Group officers and employees are called upon
to respect individual human rights. The "Standards of Business Conduct" states the importancefor officers and employees of the Denka Group to maintain high ethical standards and act as
good corporate citizens in all the countries and regions in which the Denka Group operates, while
recognizing that laws, customs, traditions, and culture vary by country and region. It further states
the importance of ensuring that all officers and employees of the Denka Group are treated fairly andwithout discrimination in all aspects of their employment, including job assignments, promotions,transfers, and training opportunities, in accordance with the abilities and aptitudes required for the job
and applicable laws and regulations, regardless of ethnicity, race, gender, religion, nationality, age,physical disability, or gender identity. Moreover, the Standards of Business Conduct provide clear anddetailed guidelines regarding what practices must be observed and what constitutes prohibited action
with the aim of living up to our commitment to complying with labor laws, ensuring equal employment
and career opportunities without discrimination, and preventing workplace harassment. In particular,
these standards feature case studies of actual workplace incidents involving power harassment
and sexual harassment to be dealt with in a way conformant to guidelines issued by the Ministryof Health, Labour and Welfare. Thus, these standards include elaborative provisions designed toprevent harassment incidents from occurring within the Denka Group. Denka also signed the United
Nations Global Compact in June 2023. Denka supports the 10 principles established by the initiative,
respects other international human rights standards, and contributes to human rights issues throughits business activities.

ESG information site Denka Group Human Rights Initiatives
https://denka_sustainability.disclosure.site/en/themes/779

ESG information site Response to Human Rights Violation Risk
https://denka_sustainability.disclosure.site/en/themes/746
Denka Report 2023

Human Rights Initiatives

Denka Sustainability Book 2023

04

Denka Group
ESG management

Environment

Environment

SocialGovernanceAchievement of Carbon Neutrality
We aim to be carbon neutral by 2050 with respect to our own CO2 emissions (Scope 1 and 2), which
can be directly reduced through our own activities. We aim to reduce the environmental impact of
raw materials and processes, and to increase energy conservation and our use of renewable energy.
Because there are limits to what individual companies can do to help contribute to carbon neutrality,
in addition to our own efforts, we are actively seeking collaboration with surrounding companies andlocal governments to improve social infrastructure.

In fiscal 2022, emissions across the entire product value chain (Scope 3) decreased in energy
categories not included in Scope 1 and 2, mainly the transportation, delivery and disposal of our
products, although production increased due to the recovery in economic activity that continued fromthe previous year. We will continue to work with upstream and downstream suppliers to reduce
emissions through the development and provision of products and technologies that will further
contribute to the environment that draw on our unique technologies.
Current State of Greenhouse Gas Emissions from the Value Chain (Scope 3, Fiscal 2022)
Cat.9 : Downstream transportation and distribution

0 t-CO ／year

100%
88%

100

130,000 t-CO ／year80

2(Unit: 10,000 t-CO2/year)

79%

87%

Cat.2 ; Capital goods

250

120,000 t-CO ／year2

83%

Cat.3 : Energy-related activities
not included in Scope 1 or 2

130,000 t-CO ／year

Cat.1 : Purchased goods
and services

850,000 t-CO ／year

Cat.12 : End-of-life treatment ofsold products

60

40

218

194

215

2013

2019

2020

2021

2022

* Denka Group (consolidated)

2030

2

Current status of greenhouse gas emissions across the value chain (Scope 3, Fiscal 2022)

98（base year）

Category

0%

2050

0

FY2022

Percentage

Cate1

Purchased Goods and Services

Details

846,856

53.2

Cate2

Capital goods

116,783

7.3

Cate3

Energy-related activities not includedin SCOPE 1 and 2

128,465

8.1

Cate4

Upstream transportation and distribution

131,555

8.3

Cate5

Waste generated through business activities

18,398

1.2

Cate6

Business trips

546

0.0

Cate7

Employee commuting

Cate8

Upstream lease assets

Cate9

Downstream transportation and distribution

Cate10

Processing of sold products

Cate11

Use of sold products

Cate12End-of-life treatment of sold products

Cate13

Downstream lease assets

0.0

Cate14

Franchises

0.0

Cate15Investments
Total

ESG information site

Initiatives to Achieve Carbon-Neutral Status

Denka Report 2023

Environmental

2350,000 t-CO ／year

125

40%

204

20

0

1,590,000
t-CO2／year

2

247

2

Cat.4 : Upstream transportation and distribution

Medium- and long-term targets for reducing greenhouse gas emissions (Scope 1 + 2)(%)

200,000 t-CO ／year

Other

2

1,692

0.1
0.0

0

0.0
0.0
0.0

347,46621.8

0.0
1,591,761

100.0

https://denka_sustainability.disclosure.site/en/themes/713

Denka Sustainability Book 2023

05

Denka Group
ESG management

Environment

Environment

SocialGovernance

Energy consumption intensity (FY2018 base)

FY2020

FY2021

FY2022

Results

Results

Targets

Results

Targets

1.00

1.01

0.95

1.02

0.97

CO2 emissions intensity (from energy sources)(Unit：t-CO₂/t)

FY2020

FY2021

FY2022

Results

Results

Targets

Results

Targets

1.10

1.11

1.04

1.13

1.08

CO2 emissions intensity (from energy sources: FY2018 base)

FY2020

FY2021

FY2022

Results

Results

Targets

Results

Targets

0.96

0.97

0.92

1.00

0.95

ESG information site

Medium Term Environmental Plan

Denka Report 2023

Environmental

https://denka_sustainability.disclosure.site/en/themes/714

Denka Sustainability Book 2023

06

Denka Group
ESG management

Environment

Environment

SocialGovernance

Renewable Energy
For more than 100 years, Denka has been promoting the use of renewable energy. Specifically, we have engaged in technological pursuits on two fronts, namely (1) leveraging hydroelectric power generationand other technologies to create renewable energy while (2) fully taking advantage of this energy in chemical manufacturing and utilizing it as a valuable energy source. Toward the realization of a low-carbon
society, we are increasing our focus on renewable energy-related initiatives, one of our areas of strength.

Future Outlook for Our Renewable Energy Generation Capacity

FY2005

FY2022

111

140

141

3

7

13

114

147

154

Hydroelectric
Solar, etc.
Total

FY2023 (Target)* The above figures include 50% of the power output from power plants run by Kurobegawa Electric Power Company (a joint venture co-owned by Denka and Hokuriku Electric Power Company).

Breakdown of Energy Consumption by Source (FY2022 Results)

Purchased energy

45%

Hydroelectric

32%

Breakdown ofEnergy Consumption
by Source
FY2022 Results

Biomass

1%

Waste heat
Thermal 21%

1%

Denka Solar Power Shibukawa
ESG information site Initiatives to Achieve Carbon-Neutral Status https://denka_sustainability.disclosure.site/en/themes/713
Denka Report 2023 Environmental

Denka Sustainability Book 2023

07

Denka Group
ESG management

Environment

Environment

SocialGovernanceHydroelectric Power Plants (map) and their Maximum Outputs
Hydroelectric Power Plants (map)

Total maximum output of Denka’s in-house power generation (as of August 2022)
Facility

Itoigawa
Omigawa Omi

Kajiyashiki

Kubikiono

Oyashirazu
1

Nechi
16
12

2

Kotaki10
92

Kotakigawa

5,200

5,200

3

Oami

28,40028,400

4

Otokorogawa

9,800

9,800

5

Yokokawa No.1

10,00010,000

8

6

Yokokawa No.2

16,00016,000

7

7

Umikawa No.1

3,800

3,800

8

Umikawa No.2

4,700

4,700

9

Umikawa No.3

2,600

2,600

10

Umikawa No.4

990

14

Hydroelectric

3

The amount Denka isentitled to (kW)3,300

Omigawa

11
17

4
Hiraiwa

Maximum Output (kW)1

Umikawa Hayakawa
Himekawa

13

Map

5
6
15

Kita-otari

3,300

990

11

Himekawa No.6

26,000Kurobegawa ElectricPower Co.

12

Takigami

15,000Kurobegawa ElectricPower Co.

7,500
2,500

13,00013

Nagatoga

5,000

Kurobegawa ElectricPower Co.

14

Sasakura No.2

10,200Kurobegawa ElectricPower Co.

5,100

10,700Kurobegawa ElectricPower Co.

5,350

15

Kita-otari

16

New Omigawa

17

New Himekawa No.6

Total Maximum Output
Total In-house consumption(exc;uding output for FIT)

8,100
27,900Kurobegawa ElectricPower Co.

(FIT)

8,100

(FIT)

13,950(FIT)

187,690

140,290－

117,250

Shibukawa

1,990

1,990

(FIT)

Isesaki

1,000

1,000

(FIT)

2,990

2,990

Thermal (LNG)

Omi

14,00014,000

Thermal (waste heat and biomass boiler)

Omi Cement

11,100

11,100

Thermal (Gas Turbines andCogeneration)

Omi (Tomi)

34,68534,685

Chiba

16,62016,620

Thermal (Diesel)

Shibukawa

1,000

1,000

77,40577,405

Solar

Total Maximum Output

Total Maximum Output
Total Maximum Output (including
output for FIT)
Total maximum output for in-house
consumption
ESG information site

Promoting the use of Clean Energy

Denka Report 2023

Environmental

220,685
194,655
https://denka_sustainability.disclosure.site/en/themes/678
Denka Sustainability Book 2023

08

Denka Group
ESG management

Environment

Environment

SocialGovernance

Government Subsidies Related to the Environment and Energy
Government Subsidies Related to the Environment and Energy
We proactively utilize subsidy programs to develop technologies that lead to ecological and energysaving solutions.
Making use of the subsidy program for the rationalization of business operators’ energy use by
Japan’s Ministry of Economy, Trade and Industry (METI), we are actively investing in energy saving
and CO2 reduction.
Over the course of the last five fiscal years (fiscal 2016 through 2020), Denka has been granted
subsidies for ten projects—including projects for the demonstration of advanced technologies—anddelivering results in accordance with their respective goals.

Energy Saving Initiatives
Utilizing the Ministry of Economy, Trade and Industry's "Energy Usage Rationalization BusinessSupport Subsidy", we have achieved the expected effects by introducing an electrolysis plant, highperformance lime furnace, and gas turbine power generation at the Omi Plant, and a high-efficiency
boiler at the Shibukawa Plant. The gas turbine power generation at the Chiba Plant started operatingin 2022.
Using subsidies from the Ministry of Economy, Trade and Industry and the Ministry of theEnvironment, we promoted energy conservation by switching to LED lighting at the Omi Plant andChiba Plant.

Environmental Load Reduction
Proposed and adopted as a consortium together with Kajima Corporation and Takenaka Corporation
for the NEDO Green Innovation Fund project "Concrete manufacturing technology development
project using CO2".
Based on the technology cultivated in the carbonation admixture "LEAF" in this project, we willdevelop materials using unused resources such as industrial waste that have not yet been effectively
utilized, clarify the mechanism of CO2 fixation, We mainly develop quality control and fixed quantity
evaluation methods.
Through this project, we aim to realize carbon-negative concrete and spread it in earnest both inJapan and overseas.
Similarly, the NEDO Stable Supply Support Fund project will promote research and development of
new processes for battery materials that do not emit CO2 from raw materials.
The Ministry of the Environment Project to Promote the Introduction of Advanced Resource Recycling
Facilities has begun commercializing the chemical recycling of polystyrene resin and is scheduled to
begin operation in the second half of fiscal 2023.

ESG Information Site

Government Subsidies Related to the Environment and Energy

List of Subsidized Projects
Category

Project

Site

1

Energy Saving

Introduction of energy-saving
equipment for electrolysis
plants and thermal power
facilities, and process
improvement for carbide
plants

Subsidy title, relevant authority

Fiscal year

Omi Plant

METI

Subsidy program for therationalization of business
operators’ energy use, etc.

FY2015through
FY20182

Energy Saving

Gas turbine power
generation, cement grinder
improvement, water pump
optimization

Omi Plant

METI

Subsidy program for therationalization of business
operators’ energy use, etc.

FY2018through
FY2020

3

Energy Saving

Introduction of highperformance boiler

Shibukawa Plant

METI

Subsidy program for therationalization of business
operators’ energy use, etc.

FY2018

4

Energy Saving

LED lighting

Omi Plant

METI

Subsidy program to support
project costs of facility
investments contributing to the
reduction of electricity demand

FY20195Energy Saving

Energy-saving business by
renewing high-efficiency andlarge-sized gas turbines

Chiba Plant

METI

Subsidy program for therationalization of business
operators’ energy use, etc.

FY2020through
FY2022

6

Environment &Energy Saving

LED lighting

Chiba Plant

MOE

Subsidy program for therationalization of business
operators’ energy use, etc.

FY2019

7

Environment

Project for Developmentof Concrete and Other
Manufacturing Technologies
Using CO2

Omi Plant

METI

NEDO Green Innovation Fund
Project

FY2022through
FY2026

8

Environment

Project for the Introduction ofAdvanced CO2-saving Plastic
Recycling Facilities

Toyo Styrene
Co.,Ltd

MOE

Project to Promote theIntroduction of Advanced
Equipment for Recycling
Resources to Build a
Decarbonized Society

FY2021through
FY2023

9Environment

Project to Ensure Supply
Based on the Economic
Security Promotion Act

Sustainability
Promotion
Department

METI

NEDO Green Innovation Fund
Project

FY2023through
FY2026https://denka_sustainability.disclosure.site/en/themes/646

Denka Sustainability Book 2023

09

Denka Group
ESG management

Environment

Environment

SocialGovernance

Environmental Conservation and Minimization of Environmental Impact
Overview of Environmental Impacts (totals for all production sites in fiscal 2022; fiscal 2021 figures are provided in parentheses for comparison)

Graph of inputs and outputs

INPUT

OUTPUT

Business Activities

310,000kℓ

Fuels

Products(339,000kℓ)

Electricity

1.24 billion kWh

Air emissions

CO 2 (from energy sources)
1.03 million t (1.11 million t)
CO 2 (from non-energy sources) 82 million t (85 million t)
SOx
33 t (46 t)
3,747 t (3,393 t)
NOx
68 t (109 t)
Soot and Dust
40 t (52 t)
PRTR substances

Water discharges

COD
PRTR substances

275 t (181 t)
21 t (31 t)

Soil discharges

PRTR substances

0 t (0 t)(1.33 billion kWh)

Water

58.45 million t(58.26 million t)

Denka Six Plants

External Waste

439,000 t (568,000 t)

Waste generated＊

Raw Materials
Recycled in-house

92,000 t (91,000 t)

Recycled externally

21,000 t (21,000 t)
Waste Reduction

122,000 t (121,000 t)

Final disposal（as landfill）

50 t (63 t)(water removal and incineration)

ESG information site

Overview of Environmental Impacts

Denka Report 2023

Environmental

8,800 t (7,000 t)

https://denka_sustainability.disclosure.site/en/themes/651

Denka Sustainability Book 2023

10

Denka Group
ESG management

Environment

Water Resources

Environment

SocialGovernance

Biodiversity

Preservation of Water Resources
Fiscal Year

Unit

Total water withdrawal
fresh surface water
groundwater
water supply (third party water sources)
Water withdrawal from water-stressed areas*

Megaliter

2020
Results
56,36929,052
24,856461
0

2021
Results
58,25732,88924,832536
0

2022
Results
58,451
32,70025,204547
0

Our Support of the Taskforce on Nature-Related Financial Disclosures (TNFD)* In FY2021 and FY2022 we use Aqueduct 3.0

Along with measures to combat climate change, coexistence with the natural environment is becoming
increasingly important to establish a sustainable society, and the creation of a framework for international
information disclosure is in full swing.
The Denka Group has set forth “Reduction of environmental burden and the preservation of biodiversity”
in our ESG Basic Policy. Based on this policy, we have commenced measures in accordance with thebeta guidelines issued by the TNFD(*), a biodiversity information disclosure framework, with the aim ofunderstanding the environmental impact of our business activities and maintaining and improving them.

Water Used

* TNFD: Taskforce on Nature-related Financial Disclosures
The official guidelines for biodiversity-related disclosure are scheduled to be released in the fall of 2023.

Megaliter
Megaliter
Megaliter
Megaliter

Denka (non-consolidated dasis)
Fiscal Year

Unit

Water Used

km3

Result2018
59,424

Result2019
56,852

Result2020
54,3697 basesResult2021
58,257

Result2022
58,451

Target2023
57,8748 bases

Domestic and Overseas Affiliates
Fiscal Year

Unit

Water Used

km3

Result2018
2,778
15 bases

Result2019
2,568
16 bases

Result2020
56,067

ResultResult2021
2022
50,46447,16617 bases

Target2023
50,393Result2018
62,20222 bases

Result2019
59,42023 bases

Result2020
110,436

ResultResult2021
2022
108,721
105,61725 bases

Target2023
108,267

Group‘s Total
Fiscal Year

Unit

Water Used

km3

Initiatives to conserve biodiversity
We expect that it will take some time to collect, organize, review, and make decisions on naturalenvironmental information. Using the LEAP approach* recommended in the TNFD guidelines, Denka began
taking action in September 2022 with a view to finding contact points between our business activities andbiodiversity and identifying priority issues.
More specifically, after conducting a surveys of the natural environment surrounding seven business sites
in Japan using public data and literature, we have begun extracting and assessing points of contact withnature, focusing first on our Omi Plant (Itoigawa, Niigata), which has 17 hydroelectric power plants in the
nearby mountains and has the greatest contact with the natural environment. Based on these surveys, wewill analyze the risks and opportunities that face us in relation to the natural environment and take concretemeasures to conserve biodiversity. In the near future, we will gradually expand the scope of our activities toother business sites and continue the cycle of the above activities with the aim of maintaining and improving
the natural environment from a long-term perspective.

Denka receives an A- rating in “Climate Change” and a B rating in “Water Security”
from CDP 2022
Denka announces that it was awarded an A- rating in Climate Change, and a B rating in Water Security
from the CDP 2022 scores released on December 13th, 2022.
CDP, an international non-profit organization headquartered in London, was founded in 2000 as acollaboration of institutional investors around the world, and provides an environmental information
disclosure system. It conducts surveys based on responses to questionnaires regarding its climate change,
water security and forest categories, and it announces the results of its assessments of the transparency ofenvironmental information disclosure and management's participation in these disclosures on a companyby-company basis. The CDP enhances environmental information disclosure through their platform to over
130,000 companies around the world.
For “Climate Change”, Denka will establish a further detailed KPI in it’s management plan, “Mission2030”,
and will plan a further pursuit of specific risks and opportunities for the company. For “Water Security”,
Denka will continuously engage on the disclosure of adequate environmental information, by attempting to
make improvements such as developing Denka’s water management to higher levels, gauging the impact
on water resources caused by our corporate activities with more precision, and contributing to minimalizing
the effects caused by these corporate activities.

ESG information site Preservation of Water Resources
https://denka_sustainability.disclosure.site/en/themes/655
ESG information site Fiscal 2022 Environmental Performance Data
https://denka_sustainability.disclosure.site/en/themes/649
ESG information site Efforts to Conserve Biodiversity
https://denka_sustainability.disclosure.site/en/themes/718* Details are provided in the Denka Report 2023 (P.56) “Our Support of the Taskforce on Nature-Related Financial Disclosures (TNFD).”

Denka Report 2023

Environmental

Denka Sustainability Book 2023

11

Denka Group
ESG management

Environment

Environment

SocialGovernance

Environmental Performance Data
CO2 emissions

Trends in “Production Volume and Energy Consumption Intensity” and “ CO2 emissions
intensity (from energy resources)”

In FY2022, production at our main plants, the Omuta Plant and the
Chiba Plant, was reduced, resulting in a significant reduction in CO2emissions.
In FY2023, we will continue to focus on reducing emissions throughenergy saving initiatives at each of our manufacturing plants and theefficient operation of our power plants.

In FY2022, production at the Omuta and Chiba Plants was severely reduced, resulting in a decline in company-wide production, and the impact of
the suspension of hydroelectric power plant construction and other factors led to a deterioration in energy consumption intensity compared to theprevious fiscal year.
In FY2023, following the revision of the Energy Conservation Act, we will focus on further energy conservation efforts while continuing to conserve
energy at each of our manufacturing plants and operate our power plants at high efficiency in order to make the transition to energy management
including non-fossil energy.

Trends in CO2 emissions

Production Volume and Energy Consumption Intensity

Fiscal Year

Unit

ResultResultResultResultResultResultTarget

2017

2018

2019

2020

2021

2022

2023

Thousand
From energy sources
tons
From non-energy
sources(Standard: FY2013)

Fiscal Year

1,207

1,147

1,073

980

1,116

1,029

1,107

Production
Volume

970

889

891

772

854

818

799

EnergyConsomption
Intensity

Thousandtons

Result Result Result Result Result Result Result Result Result Target Result
2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2022

From energy sources

From non-energy sources

1,207

1,000

2014

2015

2016

2017

2018

2019

2020

2021

2022

2022

1.24

1.25

1.17

1.18

1.12

1.14

1.06

1.10

1.11

1.08

1.13

%

100

101

95

95

90

92

85

88

89

87

91

0.92

1.00

0.94

0.94

0.83

0.93

1.00

0.84

1.00

0.99

0.95

0.95

0.91

0.94

0.90

0.94

0.95

0.91

0.96

CO2
emissions
intensity
index

Production Volume

CO 2 emissions intensity index

1,147

1,116

1,073

889

891

854

818

1.00
799

500

1.00 0.98

1.00 0.99

0.95 0.92

0.95 0.95

1.00

0.91

0.94 0.94

0.94

0.90

0.83 0.93

1.00

0.94 0.95 0.91

0.84

2019

2020

2021

2022

2023 (Fiscal year)

TargetESG information site

Fiscal 2022 Environmental Performance Data

Denka Report 2023

Environmental

0.00

1.00
100

0.96

0.50

2018

(%)

1.50

150

1.17 1.18

1,107
1,029

980

CO 2 emissions intensity(t-CO 2/t-CaC2)

1.24 1.25

970

2017

2013

t-CO2/
t-CaC2

0.95

1.50

772

0

Unit

0.98

Energy Consomption Intensity

Result Result Result Result Result Result Result Result Result Target Result

Fiscal Year

1.00

(Production Volume Energy Consomption Intensity)

1,500(Standard: FY2013)

CO2
emissions
intensity* FY2013 has been set to 1 as a benchmark(Thousand tons)

CO2 Emissions Intensity (from energy sources)101

1.12 1.14

1.06 1.10

1.11 1.08 1.13

100
95

95

90

92
85

88

89

87

91

0.50

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2022 (Fiscal year)

Results Results Results Results Results Results Results Results Results Targets Results

0.00

50

0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2022 (Fiscal year)

Results Results Results Results Results Results Results Results Results Targets Results

https://denka_sustainability.disclosure.site/en/themes/649
Denka Sustainability Book 2023

12

Denka Group
ESG management

Environment

Environment

SocialGovernance

Environmental Performance Data
PRTR Substances Emissions

Final waste disposal volume and emission
rate of domestic group companies

SOx Emissions

In FY2023, we expect a slight increase in emissions due to anincrease in the number of target substances, among other factors,
but we will continue to make systematic efforts to reduce emissions,focusing on reductions in atmospheric emissions.

In FY2020, the Gosen Site (formerly Denka Seiken) was added to
our list of stand-alone facilities and as a result of processing wastefrom the site in the cement kiln at the Omi Plant, the emission rate
for the entire Group has remained low.

In FY2022, emissions remained generally the same as in previous
years.

PRTR Substances

Final Disposal Amount and Waste Emission Ratio

SOx Emissions

Fiscal Year

Unit

ResultResultResultResultResultTarget

2018

2019

2020

2021

2022

2023

Denka

Ton

77

78

68

83

61

82

Affiliates

Ton

7

8

8

11

10

10

Fiscal Year
Amount of waste
generated
Amount of final
landfill waste

Denka
Denka

Emissions ratio

DenkaGroup’s Total

Amount of waste
generated
Amount of final
landfill waste
Amount of waste
generated
Amount of final
landfill waste

Group’s Total

Emissions ratio

Domestic Affiliates
Domestic Affiliates
Group’s Total

ResultResultResultResultResultTarget

2018

2019

2020

2021

2022

2023

Tons

121,433

110,265

103,104

120,927

121,687 122,046

Tons

49

42

73

63

50

48

Unit

%

0.04

0.04

0.07

0.05

0.04

0.04

Tons

1,854

1,362

538

549

384

436

161

43

38

18

23

111,627 103,642

121,476

Tons

196

Tons

123,287

ResultResultResultResultResultTarget

2018

2019

2020

2021

2022

2023

Ton

47

43

41

46

33

33

Ton

105

110

149

132

126

123

Fiscal year

Unit

Denka

Affiliates

122,071 122,482

Tons

245

203

116

101

68

71

%

0.20

0.18

0.11

0.08

0.06

0.06

*Emissions ratio (%) = amount of final landfill waste / amount of waste generated x 100*In Denka’s definition, “zero emissions” means an emission ratio lower than 1%.

Denka

Afiiliates

Domestic affiliates final landfill waste(ton)Group’s total emissions ratio

100

11
7

8
8
83

77

78

68

2018

2019

2020

2021

(Final landfill waste (tons))

Affiliates(Tons)

200

(%)

250

0.50

200

0.40

150

0.30

10
82

149

61

50

0

10

Denka

Denka final landfill waste
Denka’s emissions ratio

2022

2023 (Fiscal Year)

TargetESG information site

Fiscal 2022 Enviromental Performance Data

Denka Report 2023

Environmental

100

0.20

50

0.10

0

2018

2019

2020

2021

2022

0
2023 (Fiscal year)

Target

132

100

0

105

110

47

43

41

46

2018

2019

2020

2021

126

123

33

33

2022

2023 (Fiscal year)

Targethttps://denka_sustainability.disclosure.site/en/themes/649
Denka Sustainability Book 2023

13

Denka Group
ESG management

Environment

Environment

SocialGovernance

Environmental Performance Data
NOx emissions

Soot and Dust Emissions

COD (BOD)

In FY2022, emissions increased due to the increase in operating
hours of our cement kilns. In FY2023, we will continue efforts
to reduce emissions by further optimizing operations and othermeasures.

In FY2021, the coke dryer's filter cloth performance temporarily
declined. However, following replacement of the filter cloth,emissions were brought back to the same level as in previous years
and were maintained.

In FY2022, operation rates increased and COD trended upward.
Although the operation rate is expected to increase further, we will
strive to maintain the status quo by optimizing operations.

NOx emissions

Soot and dust emissions

COD (BOD)

ResultResultResultResultResultTarget

2018

2019

2020

2021

2022

2023

Tons

4,037

3,751

3,685

3,393

3,747

Tons

777

584

632

827

794

Fiscal Year

Unit

Denka

Affiliates

Denka

ResultResultResultResultResultTarget

2018

2019

2020

2021

2022

2023

Tons

81

76

66

109

68

Tons

26

16

17

14

16

Fiscal Year

Unit

3,735

Denka

600

Affiliates

Affiliates

Denka

6,000

794

632

827

600

100

0

2018

3,751

2019

3,685

2020

3,393

2021

3,747

2022

3,735

2023 (Fiscal year)

TargetESG information site

Fiscal 2022 Environmental Performance Data

Denka Report 2023

Environmental

2023

Tons

234

196

178

181

275

269

Tons

7

6

6

6

6

6

Affiliates

Denka

Affiliates(Tons)

500

400

26

300
16

81

2018

6

6

200

6

6
275

76

2019

68

66

2020

2021

2022

67

2023 (Fiscal year)

Target

6

7

16

109

50

0

Target2022

Affiliates

17

4,037

Result

2021

16

16

2,000

Result

2020

Denka

14
584

4,000

Result

2019

67

150

777

Result2018

Unit(Tons)(Tons)

ResultFiscal Year

100

0

234

2018

196

2019

178

181

2020

2021

2022

269

2023 (Fiscal year)

Targethttps://denka_sustainability.disclosure.site/en/themes/649
Denka Sustainability Book 2023

14

Denka Group
ESG management

Environment

Environment

SocialGovernance

Environmental Performance Data
Breakdown of emissions and transfers in fiscal 2022
The following table shows PRTR substances emitted and transferred exceeding one ton.

PRTR SubstancesNo.

n-butyl acrylate

Emissions

Amount Transferred(to the outside)

Air

Water

Soil

Landfill

7

0

0

0

0

1

Acrylonitrile

9

0

0

0

0

5

Acetaldehyde

12

0

4

0

0

0

Aniline

18

0

0

0

0

1

Ethyl benzene

53

3

0

0

0

24

Ferric chloride

71

0

0

0

0

61

N,N-Dimethylformamide

232

0

0

0

0

20

Styrene

240

16

0

0

0

72

Water soluble copper salt

272

0

3

0

0

0

Toluene

300

13

0

0

0

34

Carbon disulfide

312

1

0

0

0

0

Hydrogen fluoride and its water-soluble salt

374

1

1

0

0

27

n-Hexane

392

0

0

0

0

1

Boron and its compounds

405

0

10

0

0

7

maleic anhydride

414

0

0

0

0

2

Methyl methacrylate

420

4

0

0

0

8

38

18

0

0

264

200

22

0

0

0

Total (tons/year)
Dioxin (mg-TEQ/year)243

ESG information site

Fiscal 2022 Environmental Performance Data

https://denka_sustainability.disclosure.site/en/themes/649

Denka Sustainability Book 2023

15

Denka Group
ESG management

Environment

Environment

SocialGovernance

Environmental Performance Data
Scope of Calculation for Fiscal 2022 Results
Domestic Affiliates (6)Omi Plant
Omuta Plant

Denka Polymer

Chiba Plant
Environmental Performance Data

Shibukawa Plant
Ofuna Plant

Denka Elastlution
Denka Innovation CenterNon-manufacturing sectors(Head Office, branches,etc.)

Hinode Kagaku Kogyo
Denka Azumin

Isesaki Plant

Kyusyu Plastic

Gosen Site

Denka Astec*1*2Overseas Business Bases (11)Denka Singapore, Merbau
Denka Singapore, Seraya
Denka Advantech, Tuas
Denka Advantech, South
Denka Advanced Materials Suzhou
Denka Chemicals Development Suzhou
Denka Inorganic Materials Tianjin
Denka Electronics Materials Dalian
Denka Advanced Materials Vietnam
Denka Construction Solutions Malaysia
Denka Performance Elastomer

Overview on Environmental Impacts

○

○

○

―

―

Environmental Accounting

○

○

―

―

―

Production Volume and Energy
Consumption Intensity

○

○

○

―

―

CO2 Emissions Intensity(from energy sources)

○

○

○

―

―

CO2 Emissions(from energy and non-energy sources)

○

○

○

○

○

○

―

○

―

○

―

○

―

PRTR Substances Emissions○

Note: Excluding emissions from Toyo Styrene and Taiyo
Vinyl Corporation operating on the Chiba Plant’s premises○

Final Disposal Amount and Waste
Emission Ratio

Note: Excluding emissions from Toyo Styrene and Taiyo
Vinyl Corporation operating on the Chiba Plant’s premises

SOx (sulfur oxide) emissions

○

○

―

○

○

NOx (nitrous oxide) emissions

○

○

―

○

○

Soot and dust emissions

○

○

―

○

○

COD (BOD) emissions

○

○

―

○

○

Water used

○

○

―

○

○

Environment performance data
Ratio of main emissions and usage

○

○

―

○

○

*1 Including emissions from affiliates operating on the premises of seven domestic Denka plants: Denal Silane Co., Ltd., and Denak Co., Ltd. at Omi Plant, ; Toyo Styrene Co., Ltd., and Taiyo Vinyl Corp. at Chiba Plant*2 For the results from fiscal 2020 onward, emissions from Nakagawa Techno Industrial Co., Ltd. are included (change of name to Denka Astec Co., Ltd. in April 2021)
The performance data of other Group companies will be added to the total number of sites after
ESG information site Fiscal 2022 Environmental Performance Data https://denka_sustainability.disclosure.site/en/themes/649
investigating the status of their calculations.

Denka Sustainability Book 2023

16

Denka Group
ESG management

Environment

Environment

SocialGovernance

Performance Data of Each Site
Fiscal 2022 Emissions of major substances and percentage of water usage

Environmental Performance Data (Results of Fiscal 2022)
Omi Plant

Omuta Plant

Chiba Plant

Denka Construction Solutions Malaysia

0

Percentage of major emissions and usage
Shibukawa Plant

Denka Advanced Materials Vietnam

10

20

30

CO2 emissions
million(from energy sources) 1.21 tons

59 %PRTR substanceemissions

71 tons63 %NOx emissions

4,541 tons

64 %SOx emissions

159 tons

Soot and dust emissions

Water used

Waste

85 tons

50

Denka Advantech Tuas

Denka Performance Elastomer LLC

Others

60

70

80

15 %

90

8%
14 %

7%
9%

16 %

100

2% 2% 5%5%5% 3%1%

11 %3% 3% 3%

16 %

4% 3%

12 %

49 %

7%

43 %

282 tons

4% 2%

73 %

2,396 tons

14 %
73 %

Performance data of each site

10

20

30

10 %
40

50

4%

3% 5%

94 %

0
ESG information site

40

Kyushu Plastic Industry

78 %126,000 tons

Full landfill waste

Denka Singapore Seraya

77 %105,600 tons

COD (BOD) emissions

Gosen Site
Hinode Kagaku Kogyo

60

70

80

7%
9%
90

6%
3%

5%
100

https://denka_sustainability.disclosure.site/en/themes/650
Denka Sustainability Book 2023

17

Denka Group
ESG management

Environment

Environment

SocialGovernance

Performance Data of Each Site
Omi Plant

Chiba Plant

Fiscal YearUnit

CO2 emissions (from energy sources)

tons(×10,000)(CO2 emissions, fiscal 2013 base)

Results

Results

Results

Results

Results

Targets

2018

2019

2020

2021

2022

2023

Fiscal Year

Unit
tons

77

71

60

72

71

74

CO2 emissions (from energy sources)

0.92

0.85

0.72

0.85

0.85

0.88

(CO2 emissions, fiscal 2013 base)
PRTR substance emissions

Results

Results

Results

Results

Results

Targets

2018

2019

2020

2021

2022

2023

22

23

22

24

18

22

0.66

0.71

0.67

0.72

0.55

0.66

tons

57

60

52

60

44

64

(×10,000)

PRTR substance emissions

tons

10

9

7

14

10

10

NOx emissions

tons

3,148

2,851

2,860

2,462

2,905

2,815

NOx emissions

tons

135

154

156

162

127

160

SOx emissions

tons

40

38

35

37

26

25

SOx emissions

tons

4

4

5

7

6

7

Soot and dust emissions

tons

78

73

64

107

66

64

Soot and dust emissions

tons

2

2

2

1

1

2

Water used

km3

52,83450,13947,46551,063

51,91950,828Water used

km3

3,622

3,661

3,615

3,742

3,174

3,680

COD (BOD) emissions

tons

216

181

166

166

264

256

COD (BOD) emissions

tons

15

13

10

14

10

11

Waste

tons

90,49884,63170,59988,67992,09492,011

Waste

tons

10,41010,503

10,582

11,909

9,310

9,079

Final landfill waste

tons

0

0

0

0

0

0

Final landfill waste

tons

23

14

7

4

2

2

Results

Results

Results

Results

Results

Targets

2018

2019

2020

2021

2022

2023

0.9

0.9

0.8

1.0

0.8

0.9

Omuta Plant

Shibukawa Plant

Fiscal YearUnit

CO2 emissions (from energy sources)

tons(×10,000)(CO2 emissions, fiscal 2013 base)

Results

Results

Results

Results

Results

Targets

2018

2019

2020

2021

2022

2023

Unit
tons

12

9

10

10

8

9

CO2 emissions (from energy sources)(CO2 emissions, fiscal 2013 base)

0.86

0.65

0.74

0.73

0.60

0.65

PRTR substance emissions

tons

4

5

4

4

3

3

NOx emissions

tons

742

738

659

758

709

SOx emissions

tons

1

1

1

0

Soot and dust emissions

tons

2

1

1

1

Water used

km3

1,249

1,334

1,320

1,448

1,364

1,360

COD (BOD) emissions

tons

1

1

1

1

1

1

Waste

tons

18,86913,69319,012

17,587

17,703

18,342

Final landfill waste

tons

8

11

13

47

26

24

ESG information site

Fiscal Year

Peformance data of each site

(×10,000)

1.26

1.28

1.16

1.45

1.17

1.35

PRTR substance emissions

tons

5

4

5

5

3

4

754

NOx emissions

tons

10

8

9

10

6

6

0

0

SOx emissions

tons

3

1

1

1

1

1

1

1

Soot and dust emissions

tons

0

0

0

0

0

0

Water used

km3

1,275

1,298

1,302

1,302

1,305

1,305

COD (BOD) emissions

tons

2

2

2

2

1

1

Waste

tons

721

576

676

686

559

503

Final landfill waste

tons

0

0

33

0

0

0

https://denka_sustainability.disclosure.site/en/themes/650
Denka Sustainability Book 2023

18

Denka Group
ESG management

Environment

Environment

SocialGovernance

Performance Data of Each Site
Ofuna Plant

Isesaki Plant

Fiscal YearUnit

CO2 emissions (from energy sources)

tons(×10,000)(CO2 emissions, fiscal 2013 base)

Results

Results

Results

Results

Results

Targets

2018

2019

2020

2021

2022

2023

Fiscal Year

Unit
tons

0.8

0.7

0.6

0.8

0.6

0.9

CO2 emissions (from energy sources)

1.02

0.94

0.87

1.01

0.78

1.20

(CO2 emissions, fiscal 2013 base)(×10,000)Results

Results

Results

Results

Results

Targets

2018

2019

2020

2021

2022

2023

1.8

1.6

1.5

1.9

1.4

1.8

1.06

0.95

0.85

1.10

0.79

1.03

PRTR substance emissions

tons

1

1

1

1

0

1

PRTR substance emissions

tons

0

0

0

0

0

0

NOx emissions

tons

1

1

1

1

0

1

NOx emissions

tons

0

0

0

0

0

0

SOx emissions

tons

0

0

0

0

0

0

SOx emissions

tons

0

0

0

0

0

0

Soot and dust emissions

tons

0

0

0

0

0

0

Soot and dust emissions

tons

0

0

0

0

0

0

Water used

km3

49

52

39

36

36

36

Water used

km3

388

363

408

400

380

400

COD (BOD) emissions

tons

0

0

0

0

0

0

COD (BOD) emissions

tons

0

0

0

0

0

0

Waste

tons

363

373

343

263

192

251

Waste

tons

485

381

690

632

276

350

Final landfill waste

tons

1

3

1

1

1

1

Final landfill waste

tons

0

0

0

0

0

0

Results

Results

Results

Results

Results

Targets

2018

2019

2020

2021

2022

2023

0.2

0.1

0.1

0.2

0.2

0.2

－

－

－

－

－

－

Gosen Site

Innovation Center

Fiscal YearUnit

CO2 emissions (from energy sources)

tons(×10,000)(CO2 emissions, fiscal 2013 base)

Results

Results

Results

Results

Results

Targets

2018

2019

2020

2021

2022

2023

Fiscal Year

Unit
tons

1.7

1.8

2.3

2.3

2.3

2.2

CO2 emissions (from energy sources)

1.12

1.15

1.44

1.44

1.48

1.37

ー

(×10,000)

PRTR substance emissions

tons

0

0

0

0

0

0

PRTR substance emissions

tons

0

0

0

0

0

0

NOx emissions

tons

1

0

1

1

0

0

NOx emissions

tons

0

0

0

0

0

0

SOx emissions

tons

0

0

0

0

0

0

SOx emissions

tons

0

0

0

0

0

0

Soot and dust emissions

tons

0

0

0

0

0

0

Soot and dust emissions

tons

0

0

0

0

0

0

Water used

km3

321

312

214

260

266

258

Water used

km3

7

6

7

6

7

7

COD (BOD) emissions

tons

0

0

0

0

0

0

COD (BOD) emissions

tons

0

0

0

0

0

0

Waste

tons

1,030

923

1,118

1,102

1,488

1,444

Waste

tons

87

109

84

70

66

66

Final landfill waste

tons

158

121

18

10

20

20

Final landfill waste

tons

17

14

0

0

1

1

ESG information site

Performance data of each site

https://denka_sustainability.disclosure.site/en/themes/650
Denka Sustainability Book 2023

19

Denka Group
ESG management

Environment

Environment

SocialGovernance

Performance Data of Each Site
Denka Singapore Merbau Plant

Denka Advanced Materials Vietnam
Results

Results

Results

Results

Results

Targets

2018

2019

2020

2021

2022

2023

(×10,000)

0.4

0.4

0.4

0.3

0.4

NOx emissions

tons

0.5

0.5

0.5

0.5

SOx emissions

tons

0

0

0

0

Soot and dust emissions

tons

0

0

0

0

0

Water used

km3

65

57

59

62

56

Fiscal YearUnit

CO2 emissions (from energy sources)

tons

Results

Results

Results

Results

Results

Targets

2018

2019

2020

2021

2022

2023

(×10,000)

0.3

0.3

0.2

0.4

0.4

NOx emissions

tons

0

0

0

0

0

0

SOx emissions

tons

0

0

0

0

0

0

0

Soot and dust emissions

tons

0

0

0

0

0

0

55

Water used

km3

23

31

18

21

25

26

Fiscal Year

Unit

0.4

CO2 emissions (from energy sources)

0.5

0.5

0

0

tons

0.4

COD (BOD) emissions

tons

0.1

0.1

0.1

0.1

0.1

0.1

COD (BOD) emissions

tons

0

0

0

0

0

0

Waste

tons

453

299

194

130

279

265

Waste

tons

135

180

115

261

276

300

Final landfill waste

tons

11

0

0

0

0

0

Final landfill waste

tons

23

43

38

85

76

80

Results

Results

Results

Results

Results

Targets

Results

Results

Results

Results

Results

Targets

2018

2019

2020

2021

2022

2023

2018

2019

2020

2021

2022

2023

－

0.03

0.02

0.02

0.02

0.03

Denka Singapore Seraya Plant

Denka Construction Solutions Malaysia

Fiscal YearUnit

CO2 emissions (from energy sources)(×10,000)

4.2

3.5

3.7

3.5

3.0

NOx emissions

tons

4.6

4.6

4.7

4.7

SOx emissions

tons

0.9

0.9

0.9

Soot and dust emissions

tons

0

0

Water used

km3

214

193

COD (BOD) emissions

tons

3.5

2.9

2.8

2.7

Waste

tons

1,220

1,180

1,563

1,027

Final landfill waste

tons

19

8

36

27

17

31

Results

Results

Results

Results

Results

Targets

2018

2019

2020

2021

2022

2023

tons

Fiscal Year

Unit

3.5

CO2 emissions (from energy sources)(×10,000)

3.9

4.4

NOx emissions

tons

－

0

0

0

0

0

0.9

0.7

0.8

SOx emissions

tons

－

0

0

0

0

0

0

0

0

0

Soot and dust emissions

tons

－

0

0

0

0

0

188

149

115

153

Water used

km3

－

6.9

3.4

3.8

4.0

6.1

2.4

2.2

COD (BOD) emissions

tons

－

0

0

0

0

0

749

1,280

Waste

tons

－

422

255

214

215

323

Final landfill waste

tons

－

422

255

211

210

315

Results

Results

Results

Results

Results

Targets

2018

2019

2020

2021

2022

2023

－

－

9.5

7.6

9.3

10.2
100

Denka Advantech Tuas Plant

tons

Denka Performance Elastomer LLC
Fiscal YearUnit

CO2 emissions (from energy sources)(×10,000)

Fiscal YearUnit

CO2 emissions (from energy sources)(×10,000)

1.7

1.4

1.4

1.4

1.7

1.4

NOx emissions

tons

513.1

342.6

386.4

586.8

516.7

344.8

NOx emissions

tons

－

－

84

90

104

SOx emissions

tons

0

0

0

0

0

0

SOx emissions

tons

－

－

1

1

1

1

Soot and dust emissions

tons

0

0

0

0

0

0

Soot and dust emissions

tons

－

－

9

9

10

10
48,000tons

tons

Water used

km3

78

67

62

102

88

75

Water used

km3

－

－

53,62147,892

44,909COD (BOD) emissions

tons

0

0

0

0

0

0

COD (BOD) emissions

tons

－

－

0

0

0

0

Waste

tons

228

158

219

281

261

222

Waste

tons

－

－

1,099

1,216

1,826

1,500

Final landfill waste

tons

211

140

200

263

243

206

Final landfill waste

tons

－

－

1,079

1,180

1,758

1,235

Results

Results

Results

Results

Results

Targets

2018

2019

2020

2021

2022

2023

Denka Advantech South Plant
Fiscal YearUnit

CO2 emissions (from energy sources)(×10,000)

0.3

0.2

0.1

0.3

0.2

0.3

NOx emissions

tons

1.7

1.4

0.7

1.6

0.8

1.5

SOx emissions

tons

0

0

0

0

0

0

Soot and dust emissions

tons

0.1

0.1

0.0

0.1

0.0

0.1

Water used

km3

15

7

5

8

6

7

COD (BOD) emissions

tons

0

0

0

0

0

0

Waste

tons

253

205

154

189

139

274

Final landfill waste

tons

21

17

10

20

17

34

ESG information site

tons

Performance Data of Each Site

https://denka_sustainability.disclosure.site/en/themes/650

Denka Sustainability Book 2023

20

Denka Group
ESG management

Environment

Environment

SocialGovernance

Performance Data of Each Site
Denka Advanced Materials (Suzhou)

Denka Inorganic Materials (Tianjin)
Results

Results

Results

Results

Results

Targets

2018

2019

2020

2021

2022

2023

Fiscal YearUnit

CO2 emissions (from energy sources)(×10,000)

0.1

0.1

0.1

0.1

0.1

0.1

NOx emissions

tons

0

0

0

0

0

0

SOx emissions

tons

0

0

0

0

0

0

Soot and dust emissions

tons

0

0

0

0

0

0

Water used

km3

2.0

1.5

1.7

1.5

1.3

1.4

tons

Results

Results

Results

Results

Results

Targets

2018

2019

2020

2021

2022

2023

(×10,000)

0.01

0.00

0.00

0.01

0.01

NOx emissions

tons

0.1

0

0

0

0

0

SOx emissions

tons

0

0

0

0

0

0

Soot and dust emissions

tons

0

0

0

0

0

0

Water used

km3

1.1

1.0

1.0

0.7

0.7

1.0

Fiscal YearUnit

CO2 emissions (from energy sources)

tons

0.01

COD (BOD) emissions

tons

0.1

0.2

0.1

0.0

0.1

0.1

COD (BOD) emissions

tons

0

0

0.1

0.1

0.2

0.2

Waste

tons

0.6

0.5

0.5

0.5

0.4

0.4

Waste

tons

18.0

4.0

0.6

0.6

0.5

7.5

Final landfill waste

tons

0.09

0.07

0.03

0.02

0.02

0.01

Final landfill waste

tons

0

0

0

0

0

0

Results

Results

Results

Results

Results

Targets

Results

Results

Results

Results

Results

Targets

2018

2019

2020

2021

2022

2023

2018

2019

2020

2021

2022

2023

0.03

0.02

0.02

0.02

0.01

0.01

0.07

0.06

0.07

0.08

0.09

Denka Chemicals Development Suzhou
Fiscal YearUnit

CO2 emissions (from energy sources)(×10,000)

tons

Denka Electronics Materials Dalian
Fiscal YearUnit

CO2 emissions (from energy sources)(×10,000)

tons

0.13

NOx emissions

tons

0

0

0

0

0

0

NOx emissions

tons

0

0

0

0

0

0

SOx emissions

tons

0

0

0

0

0

0

SOx emissions

tons

0

0

0

0

0

0

Soot and dust emissions

tons

0

0

0

0

0

0

Soot and dust emissions

tons

0

0

0

0

0

0

Water used

km3

0.6

0.7

0.4

0.5

0.4

0.4

Water used

km3

0.3

0.3

0.3

0.2

0.2

0.2

COD (BOD) emissions

tons

0

0

0

0

0

0

COD (BOD) emissions

tons

0

0

0

0

0

0

Waste

tons

8

1

16

19

20

12

Waste

tons

2.1

4.3

6.6

8.0

5.8

4.5

Final landfill waste

tons

0

0

2.3

0

6.9

7.0

Final landfill waste

tons

0.1

0.1

0.2

0.2

0.2

0.1

ESG information site

Performance Data of Each Site

https://denka_sustainability.disclosure.site/en/themes/650

Denka Sustainability Book 2023

21

Denka Group
ESG management

Environment

Environment

SocialGovernance

Performance Data of Each Site

Hinode Kagaku Kogyo

Denka Azumin
Results

Results

Results

Results

Results

Targets

2018

2019

2020

2021

2022

2023

Results

Results

Results

Results

Results

Targets

2018

2019

2020

2021

2022

2023

(×10,000)

0.6

0.6

0.5

0.5

0.5

0.5

PRTR substance emissions

tons

0

0

0

0

0

0

120

NOx emissions

tons

22

23

20

24

29

29

123

120

SOx emissions

tons

1

1

1

1

1

1

6

6

Soot and dust emissions

tons

4

0

2

0

0

0

1,101

1,200

Water used

km3

602

602

603

602

602

602

1

COD (BOD) emissions

tons

2

1

1

1

2

2

36

Waste

tons

113

78

80

66

47

75

Final landfill waste

tons

3.3

0.4

0.2

0.3

0.2

0.2

Results

Results

Results

Results

Results

Targets

2018

2019

2020

2021

2022

2023

Fiscal YearUnit

CO2 emissions (from energy sources)(×10,000)

2.0

1.9

1.9

1.8

1.8

1.7

PRTR substance emissions

tons

2

2

2

4

3

3

NOx emissions

tons

136

120

135

119

139

SOx emissions

tons

104

109

147

129

Soot and dust emissions

tons

12

7

7

5

Water used

km3

1,206

1,030

1,233

1,360

COD (BOD) emissions

tons

2

2

2

2

1

Waste

tons

121

42

56

36

36

Final landfill waste

tons

4

3

4

3

3

3

Results

Results

Results

Results

Results

Targets

2018

2019

2020

2021

2022

2023

tons

Denka Polymer

Unit

CO2 emissions (from energy sources)

tons

Kyusyu Plastic Industry

Fiscal YearUnit

CO2 emissions (from energy sources)(×10,000)

1.1

1.0

0.8

1.0

0.8

1.0

PRTR substance emissions

tons

0

0

0

0

0

NOx emissions

tons

0

0

0

0

SOx emissions

tons

0

0

0

Soot and dust emissions

tons

0

0

Water used

km3

29

27

COD (BOD) emissions

tons

0

0

0

0

Waste

tons

184

184

261

293

Final landfill waste

tons

0

0

0

0

0

0

tons

Fiscal YearUnit

CO2 emissions (from energy sources)(×10,000)

0.2

0.2

0.2

0.2

0.2

0.2

0

PRTR substance emissions

tons

5

5

6

7

7

7

0

0

NOx emissions

tons

0

0

0

0

0

0

0

0

0

SOx emissions

tons

0

0

0

0

0

0

0

0

0

0

Soot and dust emissions

tons

0

0

0

0

0

0

28

30

32

32

Water used

km3

149

160

171

159

151

160

0

0

COD (BOD) emissions

tons

0

0

0

0

0

0

172

195

Waste

tons

78

77

76

71

68

70

Final landfill waste

tons

18

25

29

16

11

15

Results

Results

Results

Results

Targets

2019

2020

2021

2022

2023

Denka Elastlution

tons

Denka Astec
Results

Results

Results

Results

Results

Targets

2018

2019

2020

2021

2022

2023

(×10,000)

0.1

0.1

0.05

0.06

0.06

0.06

tons

0

0

0

0

0

0

Fiscal YearUnit

CO2 emissions (from energy sources)
PRTR substance emissions

tons

NOx emissions

tons

0

0

0

0

0

0

SOx emissions

tons

0

0

0

0

0

0

Soot and dust emissions

tons

0

0

0

0

0

0

Water used

km3

74

72

73

73

74

74

COD (BOD) emissions

tons

0

0

0

0

0

0

Waste

tons

57

58

61

66

57

56

Final landfill waste

tons

12

12

5

0

0

0

ESG information site

Fiscal Year

Performance data of each site

中川テクノ
Fiscal Year

Unit

Denka Astec

CO2 emissions (from energy sources)(×10,000)

tons

0.007

0.006

0.005

0.005

0.005

PRTR substance emissions

tons

0.1

0.1

0.1

0.1

0.1

NOx emissions

tons

0

0

0

0

0

SOx emissions

tons

0

0

0

0

0

Soot and dust emissions

tons

0

0

0

0

0

Water used

km3

0.5

0.4

0.3

0.3

0.3

COD (BOD) emissions

tons

0

0

0

0

0

Waste

tons

4.3

4.5

17.5

4.3

4.3

Final landfill waste

tons

4.3

4.3

17.5

4.3

4.3

https://denka_sustainability.disclosure.site/en/themes/650

Denka Sustainability Book 2023

22

Denka Group
ESG management

Environment

Environmental Management (Acquisition Status by Certification)

Environment

SocialGovernance(As of the end of January, 2023)

The Denka Group operates environmental and quality management systems to proceed with continuous improvements.

Status of ISO14001 (Environmental Management System) certification acquisition
Site name

Status of ISO9001 (Quality Management System) certification acquisition

Register Number

Site nameRegister Number

Omi Plant

4569325-2A

Omi Plant

4267377

Omuta Plant

JP021970

Omuta Plant

JP023219

Chiba Plant

JP023535

Chiba Plant

JP022393

Shibukawa Plant

JP022052

Shibukawa Plant

JP023240

Ofuna Plant

JP022976

Ofuna Plant

4550693

Isesaki Plant

4608659

Isesaki Plant

JP022573

Gosen Site

4604419

Denka Singapore Seraya Plant

10216321

Denka Inovation Center

JP022417

Denka Singapore Merbau Plant

00014002

Denka Singapore Merbau Plant

0052469

Denka Advantech Tuas Plant

99-2-0984

Denka Advantech Tuas Plant

2003-0194

Denka Advantech South Plant

2015-2-2293

Denka Construction Solutions Malaysia

C536648

Denka Construction Solutions Malaysia

10000448229-MSC-JAS-ANZ-MYS

Denka Advanced Materials Vietnam

4410416940004

Denka Advanced Materials Vietnam

4410018940004

Denka Advanced Materials (Suzhou)

CN041503

Denka Advanced Materials (Suzhou)

CN041504

Denka Electronics Materials Dalian

CN036860

Denka Electronics Materials Dalian

CN036861

Hinode Kagaku Kogyo *1

KES2-0622

Denka Inorganic Materials (Tianjin)

19ACM8542Q

Denka Performance Elastomer

10001143 QM15

Denka Polymer

JUSE-RA-1970

Denka Elastlution

4271188

Kyushu Plastic Industry

4384075

Denka Astec Co., Ltd Kasai Plant

JA0107-22Q-1*1 We have acquired Kyoto Environmental Standard (KES) Step 2 certification according to ISO standards and are working
on continuous improvements.

* Call individual sites for the certified products from each site.

ESG information site

Acquisition Status by Certification

https://denka_sustainability.disclosure.site/en/themes/653

Denka Sustainability Book 2023

23

Denka Group
ESG management

Environment

Environmental Management (Acquisition Status by Certification)
Status of ISO13485 (Medical Devices and In-Vitro Diagnostic Medical Devices Quality
Management System) certification acquisition
Site nameSocialGovernance(As of the end of January, 2023)

ISO50001 (Energy Management) certification acquisition
Site nameRegister Number

Gosen Site

Environment

Denka Singapore Seraya Plant

Q5 055720 0003

Certification System
ISO50001

Register Number
10474031* Call individual sites for the certified products from each site.

Status of IATF16949 (Automotive Industry Quality Management System) certification acquisition
Site name

ISCC-PLUS (International Sustainability and Carbon Certification)

Register Number

Omuta Plant

Site name451115

Denka Singapore Seraya Plant

Certification System
ISCC-PLUS

Register Number
ISCC-PLUS-Cer-DE100-13931123* Call individual sites for the certified products from each site.

Status of Occupational Health and Safety Management System certification acquisition
Site name

Certification System

Register Number

Chiba Plant

ISO45001

JP020719

Omi Plant

OSHMS

10-15-6

ISO14001 and ISO45001 integrated into one management system
Site name

Certification System

Denka Singapore Seraya Plant

ISO14001 & ISO45001

Register Number
10348866

Status of ISO28000 certification acquisition
Site name

Certification System

Denka Singapore Seraya Plant

ESG information site

ISO28000

Acquisition Status by Certification

Register Number
53602

https://denka_sustainability.disclosure.site/en/themes/653
Denka Sustainability Book 2023

24

Denka Group
ESG management

Environment

Environment

SocialGovernance

Environmental Accounting
Environmental Conservation Costs
The main items of environmental investment in fiscal 2022 were environmental burden reduction (26%), global environmental conservation costs as a result of the introduction of energy-saving equipment (73%).

Conservation Cost Category1）Costs around our business area
Details

Environmental Conservation Costs (million yen)

Details of Effects(Subtotal)①Pollution prevention

Environmental burden reduction②Global environmental preservation

Energy saving③Recycling Resources

Investments

Expences

3,513

2,866

916

2,283

2,581

228

Effective use of resources

16

356

2）Upstream and downstream costs

Change of raw materials, etc.

003）Administrative costs

ISO Maintenance Management, Educational activities

4）R&D costs

Development of energy saving products, etc.

5）Social activity costs

Community relations

026）Environmental damage costs

Natural Restoration, Imposition on Pollution Load

8

81

0

0

3,648

3,821

7）Others
Total

2

29

125

842

Conservation Effects
Data on environmental burden has been summarized. Details can be found in the Fiscal 2022 Environmental Performance Data page of the ESG information site (https://denka_sustainability.disclosure.site/en/themes/649).

Environmental Burden

Units

CO2 emissions(from energy and non energy sources)

million tons

FY2020 Results
175

FY2021 Results
197

FY2022 Results

Effects185

12

SOx emissions

tons

41

46

33

13

NOx emissions

tons

3,685

3,393

3,747

-354

Soot and dust emissions

tons

66

109

68

41

COD (BOD) emissions

tons

178

181

275

-94

Water usedthousand tons

PRTR substance emissions
Waste
Final landfill waste
CO2 emissions from transportation

54,36958,25758,451

-194

tons

68

83

61

22

thousand tons

103

121

122

-1

tons

73

63

50

13

thousand tons

32

34

31

3

Economic Effects
Substantial economic benefits associated with environmental conservation measures include the following profit on sale of valuables, energy cost reduction through energy saving, and processing cost reduction through resource saving activities.

Category

Item

Details of Effects

Profits

Business income through recycling waste generated from main business activities or recycling used products

Sales profits

682

Energy cost reduction through energy saving

Energy saving

208

Reducing waste treatment costs by conserving or recycling resources

Effective use of resources

Cost Reductions

Effects (million yen)Total
ESG information site Environmental Accounting

16907

https://denka_sustainability.disclosure.site/en/themes/648
Denka Sustainability Book 2023

25

Denka Group
ESG management

SocialEnvironment

SocialGovernance

Overview of our Employees
Related Data

Human Resources Data (Consolidated Basis)
Nunber of employees*Based on Annual Securities Report（Foreign nationals）(Persons)
FY2019FY2020

FY2021

FY2022FY2018FY2019FY2020

FY2021

FY2022

6,133

6,316

6,351

6,358

6,406

53

47

78

94

103

900

934

971

998

1,027

5,206

5,308

5,380

5,334

5,346

Asia (Excluding Japan)

657

704

701

747

760

Americas

239

267

238

237

260

Europe

31

37

32

40

40

169

151

146

143

145

(Department Heads)

－

－

－

－

－

(Officers)

－

－

－

－

－

By Regions

Japan

Number of foreign nationals in manegerial positions

ESG information site

Work-related data

Number of Resignees (non-consolidated basis)

FY2018https://denka_sustainability.disclosure.site/en/themes/712

Number of people resigning within 3 years of recruitment (non-cosolidated basis)
FY2018FY2019Number of people (persons)

3

6

Percentage of Resigns (%)

4

6

FY2020

FY2021

FY2022

13

13

18

12

10

11

Labor Unions (non consolidated basis)
FY2018FY2019FY2020

FY2021

FY2022

Number of labor union members(persons)

2,702

2,793

3,437

3,310

3,385

Persentage of labor union members
(%)

83

83

83

81

81

Denka Report 2023

Social (Human Resources Value Creation Initiatives)
Denka Sustainability Book 2023

26

Denka Group
ESG management

SocialEnvironment

SocialGovernance

Strengthening of Human Resources development systems
Cultivation of future executive managaer candidates, building of company-wide,
integrated education framework, and fostering of a selfdirected learning culture
Average traning costs (Per person / year)(ten thousand yen)

FY2018FY2019FY2020

FY2021

FY2022

－

5.6

3.1

5.3

6.6

Promotion of Diversity, Equity & Inclusion
Fostering of workplace environments, systems, and culture that empowers individuals
with diverse ways of thinking to demonstrate their capabilities
Number of Employees by Gender and Average Age (non-consolidated basis)

Number of Employees
Male

FY2018FY2019FY2020

FY2021

FY2022

Persons

3,250

3,349

4,166

4,081

4,198

2,793

2,866

3,420

3,336

3,419

457

483

746

745

779

40.6

40.7

40.5

40.8

40.7

Persons

FemaleAverage Age

Number of women in manegerial positions (non-solidated basis)

Unit

Age

Average years of service (non-consolidated basis)(year)FY2018FY2019FY2020

FY2021

FY2022

17.1

17.1

16.5

16.8

16.4

Male

18.6

18.6

18.0

18.2

17.9

Female

8.0

8.2

9.5

10.2

10.2

Average years of service

Number of new recruits (non-consolidated basis)

Number of new recruits
G-category graduates (by gender)
Foreign national employees
Denka Report 2023

(persons)

FY2018FY2019FY2020

FY2021

FY2022

170

190

187

111

242

Male : 29
Female : 14

Male : 29
Female : 15

Male : 36
Female : 23

Male : 30
Female : 12

Male : 198
Female : 44

4

1

2

1

7

(persons)

FY2018FY2019FY2020

FY2021

FY2022

Manager or above

5

6

8

9

19

Department head

0

0

0

0

0

Officers

0

0

0

0

0

Number of foreign nationals in managerial positions (non-consolidated basis)(persons)

FY2018FY2019FY2020

FY2021

FY2022

2

0

3

3

3

Retiree Reemployement Rate (non-consolidated basis)(%)

FY2018FY2019FY2020

FY2021

FY2022

94

87

86

89

88

Percentage of employees with disabilities (non-consolidated basis)(%)

FY2018FY2019FY2020

FY2021

FY2022

2.29

2.24

2.19

2.16

2.08

Social (Human Resources Value Creation Initiatives)
Denka Sustainability Book 2023

27

Denka Group
ESG management

SocialEnvironment

SocialGovernanceWork Style Reforms
Promotion of system reforms to create workplaces that employees will “want to come to work again tomorrow”
Total Working Hours (non-consolidated basis)(hours)Number of employees who used our short hour working system (non-consolidated basis)(persons)

FY2018FY2019FY2020

FY2021

FY2022FY2018FY2019FY2020

FY2021

FY2022

1,943

1,931

1,928

1,953

1,916

33

53

60

79

71

Overtime hours (non-consolidated basis)(hours)Number of employees who accessed programs supporting extended careers (non-consolidated basis)(persons)

FY2018FY2019FY2020

FY2021

FY2022FY2018FY2019FY2020

FY2021

FY2022

140

135

133

172

151

123

86

94

93

83

Paid leaves (non-consolidated basis)

Number of employees who took nursing care leave (non-consolidated basis)(persons)

FY2018FY2019FY2020

FY2021

FY2022FY2018FY2019FY2020

FY2021

FY2022

11.8
62

12.7
67

13.1
69

14.1
75

15.7
80

0

0

0

0

0

FY2020

FY2021

FY2022

81

214

Number of days taken (days)
Percentage of paid leaves taken (%)

Number of employees who took half-day sick child care leave (non-consolidated basis)* The percentage of employees taking annual leave is calculated by dividing the number of paid vacation days used by the number of paidvacation days x 100.

Number of employees who took maternity leave (non-consolidated basis)(persons)

FY2018FY2019FY2020

FY2021

FY2022

19

25

22

23

25

FY2018FY2019FY2020

FY2021

FY2022

Persons

68

90

81

147

130

Persons

19

25

22

34

25

Persons

19

24

22

34

25

Percentage that took leave

%

100

96

100

100

100

Persons

49

65

65

113

105

Persons

2

3

6

23

46

%

4

5

9

20

44

Unit

Percentage that took leave

033(persons)

Number of employees who took volunteer activity leave (non-consolidated basis)

Number of employees newly eligible to takechildcare leave
Number of female employees newly eligible totake childcare leaveN umber of female employees who tookchildcare leave for the first time
Number of male employees newly eligible totake childcare leaveN umber of male employees who tookchildcare leave for the first time

FY2019－* Half-day nursing leave was revised in April 2022 and has been changed to hourly nursing leave.

Newly taken childcare leave (non-consolidated basis)

Unit

FY2018(persons)

FY2018FY2019FY2020

FY2021

FY2022

0

0

0

0

0

ESG information site

Work Related Data

Denka Report 2023

Social (Human Resources Value Creation Initiatives)

Childcare leave (non-consolidated basis)

FY2018FY2019FY2020

FY2021

FY2022

Persons

35

42

53

81

106

Persons

33

39

46

62

56

Persentage of female employees who reinstated

%

100

100

100

100

100

Number of Male employees who took childcare leave

Persons

2

3

7

19

50

Persentage of Male employees who reinstated

%

100

100

100

100

100

Number of employees who took childcare leave
Number of female employees who tookchildcare leave* Childcare leave can be taken in daily increments.
* The percentage of male employees taking childcare leave is calculated by dividing the number of male employees taking childcare leave by the
number of male employees with spouses who have given birth in the period under review ×100.

https://denka_sustainability.disclosure.site/en/themes/712

Denka Sustainability Book 2023

28

Denka Group
ESG management

SocialEnvironment

SocialGovernance

Health and Productivity Management
Encouraging our employees and their families to stay healthy is an important issue faced by Denka in its
business management. We are committed to promoting health management with the aim of increasing

Promotion system

corporate value by ensuring that our employees are both physically and mentally healthy as they engage in

In order to promote health management that is integrated with corporate management, Chief Human

their work, perform at their full potential, and increase their productivity.

Resource Officer(CHRO) serves as the Chief Health Management Officer and promotes health

In January 2021, we established Health Promoting Sec. as an organization for the implementation of thismanagement in cooperation with health insurance unions, industrial physicians and other medical staff, andinitiative. In April 2021, we issued a press release announcing the Declaration of Health and Productivity

labor unions.

Management, which articulates the philosophy and Denka Principles for our health management.

The secretariat provides annual feedback on the status of health issues and measures implemented ateach business site, including plants, in Japan. The secretariat also provides a range of support tostrengthen the promotion of health management at each business site.

Declaration of Health and Productivity Management

Representative Director, President

Declaration of Health and Productivity Management

April, 1 2021

Denka established The Denka Value, its corporate philosophy, and pursues its mission, “Taking on the challengeof expanding the possibilities of chemistry to create new value and contribute to sound social development.”
Leveraging the advantages Denka wields in its specialties, it pursues sound, sustainable growth.
In the pursuit of sound growth, Denka believes that its employees are important assets. Accordingly, Denka isactively committed to creating an environment where each individual employee is able to fully demonstrate theircapabilities, and to enhancing the health and well-being of its employees and their families.
As part of this commitment, Denka declares its determination to practice "health and productivity management"that organizationally supports the well-being of its employees to ensure they are able to maintain their physicaland mental health and continue working energetically.

Health Insurance Association

Chief Health Management Officer
Chief Human Resource Officer

Participate in health and productivity management promotion
meetings twice a month
Strengthening cooperation by collaboration in health

Health and Productivity Management
Promotion Secretariat
Health Support Office

Various forms of collaboration/advice to promote health andproductivity management

Industrial physicians/medical staff

Labor union

Person in charge of Health andProductivity Management at every site

Implementaiton of measures in collaboration
Various forms of collaboration for the promotion of health andproductivity management

Through the healthcare business, which is one of its businesses, Denka also contributes to the enhancement of
the health and QOL of our employees and people around the world.

Toshio Imai

Denka Company Limited
Representative Director, President

Denka Principles

Health and productivity management is also promoted in conjunction with initiatives related to worksite safety,
and health,security and disaster prevention. Specific policy, framework, initiatives and indicators, etc. aredisclosed below.

ESG information site

Prioritization of Safety

Denka Report 2023

Place the Utmost Priority on Safety

https://denka_sustainability.disclosure.site/en/themes/656

To protect the well-being of our human resources and their families, the entire Denka Group comes together toimplement activities for health and productivity management, including encour-aging employees and theirfamilies to stay healthy. These activities are based on our offices' ex-isting labor safety and health systems andalso involve the cooperation of health insurance asso-ciations and labor unions, with the new Health Promoting
Sec. playing a central role.
Denka will stay focused on the creation of an environment where each one of its employees is committed to theenhancement of their health to enrich their own lives and truly represent "The Denka Value."

ESG information site

Health Management

https://denka_sustainability.disclosure.site/en/themes/757

Denka Report 2023

Social (Human Resources Value Creation Initiatives)
Denka Sustainability Book 2023

29

Denka Group
ESG management

SocialEnvironment

SocialGovernance

Health and Productivity Management
Health Challenges and Goals

2) Actual Figures and Target Figures for Main Indicators

In order to achieve the goals of health and productivity management, namely "creating an environment where
each individual employee is able to fully demonstrate their capabilities" and "enhancing the health andwell-being of its employees and their families." we have created a Health Management Strategy Map that
illustrates the connections between goals and relationships of each policy through health management
investments.
In order to create a workplace environment that supports the wellbeing of our employees to enable them towork to their full potential, both physically and mentally for the realization of a company, which enables eachindividual employee to feel their own growth andmake employees want to come to work again tomorrow, wehave set the improvement goals. Specifically, the goal for mental health is to "reduce the number of highly
stressed employees," and to "increase the number of employees with ideal body weight" for physical health.
We have positioned improvements in "exercise habits" and "anti-smoking" as priority challenges and willcontinue to deploy measures to achieve the aforementioned improvement goals.
Based on the results of an analysis of health issues, we have added "increased risk of lifestyle-relateddiseases" and "employee aging" as priority issues, and have established goals of "enhancing approaches forprediabetes" and "reducing fall accidents" in order to further enhance related measures.

1) Health Management Strategy Map
Overview ofDenka as a whole

Increase in thenumber of
employees withlifestyle-relateddiseases andprediabetes

Increase infemaleemployees

Increase inolder
employees

Healthmanagement
investments

Effects of health management investments
Indicators related to thestatus of healthmanagement investment
measures

Indicators for changing
employeeawareness/behaviors

Improvement in thepercentage of specifichealth guidance
implemented

Implementationof specifichealth guidance

Increase in thenumber of
employees using
health support app

Introduction ofhealth support
app

Regular healthpromotion
seminars(4 times/year)

Increase in thenumber of employees
participating in healthpromotion seminars

Walkingcompetition(teams/individuals)

Increase in thenumber of employees
participating inwalking competition

Holdingmeasurement
sessions for fall
prevention(each business site)

Increase in the numberof employees
participating inmeasurement sessions
for fall prevention

Enhancement ofbenefits

Reduction of
overtime working
hours

Measure toenhance activities
to quit smoking

Increase in the numberof employees
participating in activities
to quit smoking

Ultimate health-related goals

Business management
issues to be solved
through health andproductivity
management

Increase in thepercentage of
employees following
a healthy diet

Indicators

Results

Targets

FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2025

FY2030

－

－

－

0.43

0.69

0.65

－

－

67.4

66.3

64.3

64.9

65.0

63.9

68.0

80.0

Absenteeism (%)
Employees with ideal
body weigh t(%)
Employees with highstress levels (%)
Good exercise
habits (%)

13.6

13.1

12.9

12.7

13.4

14.8

11.0

Below
10.0

31.3

32.7

33.1

33.0

32.9

32.5

37.0

Below
40.0

Smokers (%)

34.0

32.4

33.7

32.3

31.0

26.8

21.0

Below
12.0

* Absenteeism is calculated by dividing the number of sick leave days for all employees by the number of prescribed working days for all employees x 100.
* Absenteeism covers all employees, with an average of 5,265 employees in fiscal 2022.
* The number of employees within an appropriate body weight limit is calculated based on the number of employees with a healthy BMI divided by the number of
employees who have undergone medical exams.
* Employees with high stress levels are calculated based on the number of highly stressed employees divided by the number of employees who have received astress test.
Employees with high stress levels: Highly stressed employees requiring guidance by a doctor based on the result of a stress test.
* G ood exercise habits are calculated based on the number of employees who answered that they have good exercise habits during regular health checkups
divided by the number of employees receiving the checkups.

3) Relevant indicators
Reduction in thepercentage of
specific healthguidance
implemented

Reduction in thepercentage of
employees withdrinking habits

Indicators
Reduction ofabsenteeism

Increase in thenumber of employees
within appropriate
weight limits
Improvement in thepercentage of
employees who havegood exercise habits

Reduction ofpresenteeism

Decline in fall
accidents

Increased sleep
duration

Creating acompany where
employees feel
their own
growth and will
want tocome towork again
tomorrow

Improvement inwork engagement
Decline in
employees withhigh stress levels

High smoking
rate

The main target figures fluctuated due to restrictions on leaving home and the increased use of remote work
caused by COVID-19.
While reinforcing measures related to the improvement of each indicator, we will also assess the impact ofthe measures on indicator improvements.

Results
FY2017FY2018FY2019FY2020

FY2021

FY2022

Percentage of employees that had
periodic health exams (%)

－

－

99.9

99.7

99.6

100

Percentage of employees that had astress test (%)

95.2

98.0

98.1

98.3

93.2

94.6

Percentage of specific health guidance
implemented (%)

35.7

43.8

63.6

35.4

41.1

－

Total working hours (hours)

1,942

1,943

1,931

1,928

1,953

1,916

130

140

135

133

172

157

Total overtime hours (hours / person)
Number of paid vacation days used (days)

10.5

11.8

12.7

13.1

15.0

16.0

Percentage of paid annual vacation days
used (%)

55.0

62.0

67.0

69.0

73.0

80.0

44

53

47

87

94

103

Number of employees leaving thecompany (persons)

The percentage of employees who received a thorough examination after a periodic health exam was 61.1% in fiscal 2022.
Decline in thepercentage ofsmokers

ESG information site

Health Management

Denka Report 2023

Social (Human Resources Value Creation Initiatives)

https://denka_sustainability.disclosure.site/en/themes/757

Denka Sustainability Book 2023

30

Denka Group
ESG management

SocialEnvironment

SocialGovernance

Health and Productivity Management
Measures to Achieve Health and Productivity Management
1) Mental Health Care
① Stress Check
Stress tests are conducted once a year to help each employee understand his/her own stress condition and to support
self-care to prevent stress and reduce stressors.
In addition, we conduct interviews using industrial physicians for employees who have been diagnosed with high stresslevels in close cooperation with industrial medical staff.
Furthermore, group analysis is conducted on an organizational basis to identify overall health risks, status of highly
stressed employees, stress factors, etc., and then improvements are made in the workplace and work environment to
reduce risks.

② Support from external specialized organization
We have established an external 24-hour health counseling service by doctors and other specialists for our employees
and their families. In addition to mental health counseling, the service provides a wide range of health and medical
consultation services to support employees in managing their mental and physical health.

③ Enhancement of benefits
We have established various benefit plans for employees and their families with the aim of enriching employees'
personal lives and improving their health through refreshing both physically and mentally.
Employees can freely access a wide range of benefits, including accommodation, gourmet meals, leisure, sports, etc.,
to help them achieve a better work-life balance.

2) Lifestyle-related Diseases① Specified health checkups and specific health guidance
We include specified health checkups as part of regular health checkups for all ages at all of our business sites inJapan. We have established a system that ensures that employees are able to check their own risk of lifestyle-relateddiseases once a year.
We are also working to improve the implementation percentage for specific health guidance through cooperation
between employer and health insurance association.

② Anti-Smoking Support
As an enhancement measure for anti-smoking activities, we introduced a remote smoking cessation counselling last
fiscal year. We aim to further reduce the percentage of smokers by adding smoking cessation clinic support andassistance in purchasing tools such as smoking cessation aids (patches, gum) to help smokers choose measures thatbest suit their individual circumstances.
In addition, we are gradually creating a smoke-free environment with a target of the removal of all smoking areas at
every site by 2026.

③ Introduction of health support app
As part of our population approach, we are deploying a health support app for smartphones.
The application supports employees for their active health improvement by tracking daily steps and physical condition,
improving health literacy through health-related quizzes and columns, and establishing daily excise habits throughindividual and team competition events in which participants compete in the number of steps taken.

3) Fall accident prevention① Holding Measurement sessions for fall prevention
As the average age of our employees increase, and ismost likely to continue to do so, we held measurement
sessions for fall prevention at all of our major businesssites in an effort to further enhance company-widemeasures to prevent fall accidents. In addition toameasurements, exercise guidance is provided based on
the results to help employees raise self awareness andstrengthen awareness of the importance of exercise they
will do.
We are also going one step further, working to visualize
the level of risk at each business site by tabulating theresults and using these to promote future activities.

4) Disease Prevention① Organizing health promotion seminars
Since 2023, the last week of May has been designated "Denka’s Health Week." During this week, we hold healthpromotion seminars daily to help employees gain the basic knowledge necessary for the prevention of diseases, suchas lifestyles and working styles in the era of a 100-year life expectancy, and not only lifestyle-related diseases but also
cancer, mental health, health issues specific to women, and anti-smoking. We also hold other health promotion
seminars several times a year.
* Denka’s Health Week seminar participants: Approx. 600* Number of participants of seminars of Health Issues Specific to Women : 175② Health Promotion Seminar Satisfaction Survey Results
Dissatisfied: 2％

Somewhatdissatisfied:
7％

Satisfied:36％
Somewhatsatisfied:
55％④ Labor and Management jointly sponsored walking contest
In collaboration with the labor union, a walking competition was held for domestic business sites to compete for the
average number of steps taken per team.
In addition to the President's Award given to the overall top teams, Labor Union and Perfect-Match Awards were given
to top teams of each site. The report on the award ceremony were posted at each site, making it more exciting foreveryone, including teams that ranked lower. The event contributed not only to improving physical fitness, but also to
encouraging communication.
In fiscal 2021, we started a walking held every year through co-hosting by labor and management. In May 2023,
approximately 2,000 employees participated.

ESG information site

Health Management

Denka Report 2023

Social (Human Resources Value Creation Initiatives)③ Subsidies by the health insurance association
As part of the healthcare program, the health insurance association provides complete medical checkups, cancer andgynecological screenings, and free flu vaccines for employees and vaccine cost subsidies for their families, as well as
free periodontal examinations.

https://denka_sustainability.disclosure.site/en/themes/757
Denka Sustainability Book 2023

31

Denka Group
ESG management

SocialEnvironment

SocialGovernance

Health and Productivity Management
5) External Initiatives
We are also actively engaged in promoting health management among our business partners and contributing
to the health of society as a whole.
① Development and provision of vaccines and other pharmaceutical products② Organizing study sessions and health events with partner companies and other external parties
Health management investment in fiscal 2022 totaled approximately 30,000 yen/employee.

Certification as Health & Productivity Management Outstanding
Organization, White 500

Declaration of Health KPI
We have started the centralized management of data from employee health checks, and based on theanalysis of this data, we will establish KPIs and implement measures aimed at preventing the onset andseverity of lifestyle-related diseases, etc., in collaboration with the health insurance association and the
Health Promoting Sec. Most recently, we have started providing employees with opportunities to visit
remote clinics to assist them to quit smoking and have further reinforced specific health guidance provided
to employees. Moving forward, we will continue to support the wellbeing of our employees to enable them
to work to their full potential, both physically and mentally.

This certification program is a system under which corporations that practice outstanding health andproductivity management, particularly good health management based on initiatives that meet local healthissues and health promotion initiatives promoted by the Nippon Kenko Kaigi. The top 500 organizations
certified by the Health and Productivity Management Organization receive White 500 certification.
In January 2021, we established the”Health Support Office”,as an organization for the implementation ofthis initiative. In April 2021, we formulated the Declaration of Health and Productivity Management, whicharticulates the philosophy and Denka Principles for our health and productivity management. We have
implemented a range of measures in collaboration with the health staff and insurance association. For
example, we have started the centralized management of data from employee health checks, and based on
the analysis of this data, we have established KPIs. Most recently, we have started providing employeeswith remote guidance on quitting smoking, deploying a health support app for smartphones, and holding
health promotion seminars regularly.
We will continue our efforts to comply with certification standards, and moving forward, we will continue tosupport the wellbeing of our employees to enable them to work to their full potential, both physically andmentally and feel their own growth.

ESG information site

Health Management

Denka Report 2023

Social (Human Resources Value Creation Initiatives)

https://denka_sustainability.disclosure.site/en/themes/757

Denka Sustainability Book 2023

32

Denka Group
ESG management

Governance

Environment

SocialGovernance

Biography of our Directors
Chairman and Director

Representative Director, President & CEO

Manabu Yamamoto

Toshio Imai

Career summary and significant concurrent positions, etc.

Career summary and significant concurrent positions, etc.

April 1981 Joined the Company

April 1982 Joined the Company

June 2004 General Manager of Functional Ceramics Div. of Electronics Materials Business Group of the Company

October 2006 General Manager, Styrene Div. of the Company

April 2009 Executive Officer, General Manager of Electronics Materials Div. of Electronics Materials
Business Group of the Company

June 2011 General Manager, Corporate Planning Dept. of the Company

April 2011 Senior Executive Officer of the Company

April 2013 Executive Officer, Assistant to General Manager, Elastomers & Performance
Plastics of the Company

April 2013 Managing Executive Officer, Head of Electronics & Innovative Products of the Company

April 2015 General Manager, Elastomers & Performance Plastics of the Company

June 2013 Director and Managing Executive Officer of the Company

April 2017 Managing Executive Officer of the Company

April 2015 General Manager of Corporate Planning Dept. of the Company

April 2019 General Manager, Denka Value-Up Promotion Dept. of the Company

April 2016 Director and Senior Managing Executive Officer of the Company

June 2019 Director and Managing Executive Officer of the Company

June 2016 Outside Audit & Supervisory Board Member of Koatsu Gas Kogyo Co., Ltd. (until June 2019)

April 2020 Director and Senior Managing Executive Officer of the Company

April 2017 Representative Director, President and Chief Executive Officer of the Company

April 2021 Representative Director, President and Chief Executive Officer of the Company (present)

April 2021 Chairman and Representative Director of the Company
April 2023 Chairman and Director of the Company (present)

Representative Director

Director

Outside Director

Kazuo Takahashi

Ikuo Ishida

Yoshiyuki Fukuda

Career summary and significant concurrent positions, etc.

Career summary and significant concurrent positions, etc.

Career summary and significant concurrent positions, etc.

April 1983 Joined the Company

April 1985 Joined the Company

October 2013 Deputy General Manager, Chiba
Plant of the Company

April 2009 General Manager, Functional Films
Dept., Electronics Materials Div. ofElectronics Materials Business Groupof the Company

April 1979 Joined The Industrial Bank of Japan, Limited
April 2004 General Manager, Business Division No.7 of Mizuho
Corporate Bank, Limited
March 2006 Executive Officer, General Manager, Corporate
Banking Division No.15 of Mizuho Corporate Bank,
LimitedApril 2007 Executive Officer, General Manager, Securities
Division of Mizuho Corporate Bank, Limited
April 2008 Managing Executive Officer in charge of Corporate
Banking of Mizuho Corporate Bank, Limited
April 2010 Managing Executive Officer, Chief Compliance Officer
and Chief Credit Officer of Mizuho Corporate Bank,
LimitedApril 2011 Managing Executive Officer, Head of Corporate
Banking Unit of Mizuho Corporate Bank, Limited
April 2012 Managing Executive Officer, Head of Corporate
Banking Unit (Large Corporations) and Corporate
Banking Unit of Mizuho Corporate Bank, Limited (until
March 2013)
April 2013 Deputy President and Deputy President-Executive
Officer, Head of Investment Banking Division, Head of
Public & Financial Institutions Group of Mizuho
Securities Co., Ltd. (until March 2014)
April 2014 Chairman of Shinko Asset Management Co., Ltd. (until
November 2015)
November 2015 President & CEO of Fund Corporation for the Overseas
Development of Japan’s ICT and Postal Services Inc.
(until June 2021)
June 2021 Outside Director of the Company (present)

April 2015 General Manager, Ofuna Plant of theCompany
April 2017 Executive Officer, General Manager,
Omuta Plant of the Company
April 2019 President of Denka Performance
Elastomer LLC
April 2021 Managing Executive Officer of theCompany
June 2021 Director and Managing Executive
Officer of the Company
April 2023 Representative Director and Senior
Managing Executive Officer of theCompany (present)

October 2011 General Manager, Advanced Fillers
Dept., Electronics Materials BusinessGroup of the Company
October 2013 General Manager, Advanced Specialty
Materials Dept., Electronics &Innovative Products of the Company
April 2017 Assistant General Manager, Electronics& Innovative Products of the Company
April 2019 Executive Officer and General
Manager, Electronics & Innovative
Products of the Company
April 2023 Managing Executive Officer of theCompany
June 2023 Director and Managing Executive
Officer of the Company (present)

Denka Sustainability Book 2023

33

Denka Group
ESG management

Governance

Environment

SocialDirector (Full-time Audit Committee Member)

Outside Director (Audit Committee Member)

Mizuhiro UchidaToshio Kinoshita

Career summary and significant concurrent positions, etc.

Career summary and significant concurrent positions, etc.

April 1984 Joined the Company

July 1983
July 1989
June 1994
July 1998

April 2008 General Manager, Business Planning Dept., Resin Process Div., Resin Process
Business Group of the Company
April 2010 General Manager, Purchasing Dept. of the Company
April 2014 Deputy General Manager, Chiba Plant of the Company
July2017 General Manager, Internal Auditing Dept. of the Company

April 2021 General Manager, Internal Control Dept. of the Company
April 2023 Assigned to the Audit Committee of the Company
June 2023 Director (Full-time Audit Committee Member) (present)

July

2005

July 2007
July 2013
June 2014
July 2014
August 2014
March 2015
June 2015
June 2015
July 2015
January 2018
June 2019

GovernanceRegistered as Certified Public Accountant
Partner, U.S. Coopers & Lybrand L.L.P (current PricewaterhouseCoopers) (until June 1998)
Representative employee of Chuo Audit Corporation (until July 2005)
Senior Managing Partner for North America, New York Head Office, U.S. PricewaterhouseCoopers L.L.P.
(until June 2005)
Management Board Member for International Business of Tokyo Office of ChuoAoyama
PricewaterhouseCoopers (until June 2007)
Chief Executive of The Japanese Institute of Certified Public Accountants (JICPA) (until July 2013)
Council Member of JICPA (until July 2016)
Outside Audit & Supervisory Board Member of Panasonic Corporation (until June 2022)
Representative Director of Global Professional Partners (present)
Outside Corporate Auditor of Weathernews Inc. (until August 2018)
Outside Director of Asatsu-DK Inc. (until December 2018)
Outside Audit & Supervisory Board Member of the Company
Outside Director of TACHI-S CO., LTD. (present)
Outside Director of Mizuho Bank, Ltd. (until September 2019)
Outside Director of ThreePro Group Inc. (current GiG Works Inc.) (present)
Outside Director (Audit Committee Member) of the Company (present)(Up to the Present)

Outside Director (Audit Committee Member)

Outside Director (Audit Committee Member)

Akio Yamamoto

Miyuki Matoba

Career summary and significant concurrent positions, etc.

Career summary and significant concurrent positions, etc.

April 1974 Joined Mitsui & Co., Ltd.

April 2000 Registered as a lawyer (Tokyo Bar Association)

April 1999 President of Mitsui & Co., Benelux S.A./N.V.

April 2013 Executive Governor of the Japan Federation of Bar Associations (until March 2014)

April 2004 Vice President of Synthetic Resin & Inorganic Chemical Products Business Unitof Mitsui & Co., Ltd.

October 2015 Senior Leader, Management Support Division of MOS FOOD SERVICES, INC.

April 2007 Executive Officer of Mitsui & Co., Ltd. (until March 2010), President of Mitsui &Co. (Thailand) Ltd.
April 2009 Representative Director and President of Mitsui Bussan Plastic Trade Co., Ltd.
(present Mitsui & Co. Plastics Ltd.) (until June 2014)
June 2014 Counselor of Mitsui & Co. Plastics Ltd. (until June 2015)

April 2018 Risk Management & Compliance Group Leader of MOS FOOD SERVICES,
INC. (until March 2019)
April 2019 General Manager, Risk Management & Compliance Office of MOS FOODSERVICES, INC. (until September 2020)
September 2020 Intellectual Property and Legal Div., General Affairs H.Q. of NITTO KOHKI CO., LTD.

June 2015 Outside Director of the Company

April 2021 General Manager, Intellectual Property and Legal Div., General Affairs H.Q.,
and compliance supervisor of NITTO KOHKI CO., LTD. (present)

June 2021 Outside Director (Audit Committee Member) of the Company (present)

June 2021 Outside Director (Audit Committee Member) of the Company (present)(Up to the Present)

Denka Report 2023

Round-table discussion with our Outside Directors

Denka Sustainability Book 2023

34

Denka Group
ESG management

Governance

Environment

SocialGovernance

Overview of our Board of Directors and Audit Committee Members

Year

Male (persons)(of which Audit Committee Members)

2019

2020

2021

2022

11

11

8

8

(4)

(4)

(3)

(3)

Female (persons)(of which Audit Committee Members)

1

1

1

1

(1)

(1)

(1)

(1)

Percentage of females (%)

8

8

11

11

Outside Director Ratio (%)

42

42

44

44

13

13

13

15

15

14

14

Directors

Number of meetings of the Board of Directors (times)

Number of meetings of the Audit Committee (times)

11(5 meetings of the Audit & Supervisory Board)* Company with Audit & Supervisory Board until June 20, 2019

Denka Report 2023

Round-table discussion with our Outside Directors

Denka Sustainability Book 2023

35

GovernanceDenka Group
ESG management

Environment

SocialGovernance

Enhancement of Corporate GovernanceWe consider compliance not only to comply with laws and regulations, the Articles of Incorporation, andinternal rules, but also and continue to comply with corporate ethics and social norms.
Compliance is a major premise of business activities. It is the cornerstone of the trust of our stakeholders
and is an important management issue.
We have established a group compliance system on a global level as a management foundation forincreasing the corporate value of the Denka Group into the future and continue to strive to strengthen
our system.

Global Common Business Conduct Standards -Standards of Business Conduct-

Compliance Basic Policy

Section 1 Basic Rules of Compliance

The Denka Group Ethics Policy codifies Groupwide standards of conduct. To ensure that this policy
guides the actions of all, the Ethics Committee chaired by the President oversees the overall compliancestructure and reports to management on compliance matters. Moreover, under the initiative of the Ethics
Committee, such key business units as the Legal, Internal Auditing, HR Strategy, Intellectual Property,
Environment and Safety, and Quality Assurance departments ensure thorough legal compliance in theirrespective areas of specialty. We also formulated the Standards of Business Conduct. Aiming to live up
to the global standard, this move is intended to provide all Group officers and employees at home andabroad with clear and detailed guidelines on the actions they are expected to take in accordance with theprovisions of the Denka Group Ethics Policy. Furthermore, we employ a “legal hazard map” to analyze
the significance of compliance-related risks that may affect each Group company with the aim ofenhancing the effectiveness and efficiency of compliance structures being developed and operated
within the Denka Group.

Established October 2019 / Revised July 2023

In order to enable all officers and employees of the Denka Group at home and abroad to act inaccordance with the Denka Group Ethics Policy, Denka has established the "Denka Group Standards ofBusiness Conduct" as an action guideline based on international standards that further clarifies andembodies the provisions of theDenka Group Ethics Policy. Provisions set forth in the Denka Group
Ethics Policy include the following.

Section 2 Protection of Environment and Health & Safety
Section 3 Compliance with Antitrust Laws
Section 4 Export Controls and Economic Sanctions
Section 5 Prohibition of Insider Trading
Section 6 Protection of Personal Data
Section 7 Maintaining and Improvement of Product Quality

Japanese

EnglishSection 8 Confidential Information and Intellectual Property Rights
Section 9 Anti-Money Laundering
Section 10 Anti-Corruption and Gifts & Entertainment
Section 11 Political Activities and Political Contributions
Section 12 Respecting Local Society -International Operations Policy-

Denka Group Ethics Policy
The "Denka Group Ethics Policy" establishes the code of conduct that officers and employees of eachDenka Group company must comply with to maximize the corporate value of the Denka Group. Denka
has established an Ethics Committee chaired by the president to ensure compliance with the Denka
Group Ethics Policy within the Denka Group. The Ethics Committee comprehensively supervises andreports to management on the Denka Group's compliance. Under the Ethics Committee, in accordancewith internal regulations, the Legal Department, which constitutes the Ethics Committee Secretariat, hasestablished group rules, which are the common rules of the Denka Group.
We are promoting the strengthening of the group compliance system on a global level, including theestablishment of policies and common company-wide rules for Denka, and the implementation of various
compliance trainings for the Denka Group.
In addition, the Internal Control Department, Human Resources Strategy Department, Intellectual
Property Department, Environment & Safety Department, Quality Assurance Department, and related
departments are grouped together in each specialized area. We are responsible for ensuring complianceat all levels.

Section 13 Respecting Human rights in workplace and supply chain
Section 14 Speaking-up and reporting concerns
The basic rules set forth in Section 1 include not only the purpose for which the standards of conduct
were established, but also the standards of conduct for matters that tend to be breeding grounds for
misconduct by officers and employees, such as the purpose for which corporate assets are protected
and used, accurate records, correct reporting, cooperation in audits and investigations, and thestandards of conduct when the interests of the company conflict with those of individuals. The“Standards of Business Conduct” have been prepared in both Japanese, English and Chinese are not
only distributed to executives and employees of Denka and its Group companies in the form of a booklet,
but are also made available on the Intranet.

Corporate Governance Reporthttps://sustainability-cms-denka-sustainability-s3.s3-ap-northeast-1.amazonaws.com/pdf/cgreport_2022.pdf
ESG information site M aintaining Strict Compliance with Laws, Regulations and Corporate Ethics
https://denka_sustainability.disclosure.site/en/themes/675
Denka Report 2023

Denka Group's ComplianceDenka Sustainability Book 2023

36

Denka Group
ESG management

Governance

Environment

SocialGovernance

Enhancement of corporate governanceUtilization of the Legal Hazard Map for the Strengthening of Compliance Structure

Improvement of Group policy (Group-wide regulations) and company-wide regulations

Having identified more than dozen legal fields closely
Risk identification using legal hazard maps
associated with the Group business operations, DenkaPutilizes a legal hazard map designed to assess themagnitude of compliance risks affecting the Group.
Employing this map, we formulate the Denka Global
Compliance Program, a Groupwide plan for providing
Solution
Evaluation A
D planningcompliance education in an effective manner.
Moreover, we continuously work to enhance ourcompliance structures via, for example, thedevelopment and review of Group Policies and otherCin-house rules applicable to all Group members as well
Implementation/ execution
as Denka’s Companywide rules.

Denka has formulated and revised its Basic Information Security Policy, the Denka Group ICT
Governance Policy, the Denka Group Information Security Policy, the Denka Group ICT System
Usage Policy, and the Denka Group Secrecy
Policy as group policies related to
Systematic diagram of our information management regulations
information security and ICT governance in
Hierarchy
Group Policy
Standards of conduct for theaccordance with ISO 27001, thetreatment of information assetsGroupinternational standard for information
Head office regulations
security. These policies were implemented in(Group)Regulations for the handling of
Denka
information
Head Office
April 2021. We will systematically conduct
training for officers and employees of the
ICT regulations (Group)
Regulations on the
Denka
introduction and management
Denka Group on each of our information
Head Officeof information systems
security polices and strive to ensure full
Detailed regulations/
Specific
awareness of these policies.
Denka Head Office procedures/guidelines
Individual bases/
departments

Legal Fields in Which Denka Group Companies Must Maintain Acute Compliance Awareness andExamples of Typical Compliance-Related Misconduct Associated with These Fields
Labor laws(e.g. Labor Standards Act)･ Overtime without supervisor
approval･ Power harassment･ The lack of a safe and hygienic
working environment

Unfair Competition Prevention Act

Foreign Exchange andForeign Trade Act･ Illicit acquisition and use ofanother company’s trade secret･ Unlicensed export of goods
named in the list of regulated items･ Leakage of a Denka trade secret
and illicit use by other company･ The provision to non-residents oftechnologies named in the list of
regulated technologies

Denka Global Compliance Program
Based on the "Legal Hazard Map," the Legal
Department provides training on generalcompliance as stipulated in the "Standards ofBusiness Conduct," and on labor laws, harassment
prevention, information security, including theprotection of personal and confidential information,compliance with competition law, and security
export controls, etc. to officers and employees ofDenka Group companies at home and abroad
through group training programs, webinars, andE-learning systems.

regulations/procedures for theuse of information systems

System to Review Contractual Legal Matters
In order for Denka Group to conduct fair and equitable transactions with customers, suppliers andother business partners, it is indispensable to review the content of contracts from a legal andbusiness perspective. For this reason, we have established and are operating a system to complete
the process from the review of contracts by the Legal Department before signing to the storage of theoriginal copy of signed contracts on the in-house intranet using our own IT system (commonly known
as the “Denka’s Lexcalibur” ―Legal Management
workflow). On the basis of this system, we strive tofind out and deal with risks that need to beaddressed early and efficiently, while improving
the convenience of contract review and storage oforiginal contract documents.

Internal intranet providing legal information(“Legal4Denka ”)
ESG information site M aintaining Strict Compliance with Laws, Regulations and Corporate Ethics
https://denka_sustainability.disclosure.site/en/themes/675
Traning at Malaysian subsidary

ESG information site S ystem to Review Contractual Legal Matters
https://denka_sustainability.disclosure.site/en/themes/638
Denka Report 2023

Denka Group's ComplianceDenka Sustainability Book 2023

37

GovernanceDenka Group
ESG management

Environment

SocialGovernance

Enhancement of corporate governancePrevention of Insider Trading
In order to maintain the fairness of securities transactions and trust in the securities market, and to prevent theunauthorized use of the Company's information assets, the Denka Group Ethics Policy clearly stipulates that
officers and employees of the Denka Group comply with laws and regulations concerning securities transactions
and prohibits insider trading. Our company has established “Regulations on Internal Information Management andInsider Trading Prevention,” which do not only prohibit information leaks, but also require prior notification whenbuying and selling company shares and those of other companies including business partners and prohibittransactions indiscriminately two weeks before the scheduled date of financial results announcement. In addition,
the Standards of Business Conduct stipulate to officers and employees of the Denka Group that insider trading is
prohibited, explaining that insider trading is not only a misuse of the Company's information assets, but also
undermines the fairness of securities trading.
Through the Denka Global Compliance Program, a group-level compliance training program, we require that all
officers and employees of the Denka Group at home and abroad comply with the laws and regulations governing
securities trading in their respective countries.
In addition, the General Affairs Department posts notices on the intranet prohibiting trading in the Company's
shares from two weeks prior to the announcement of financial results to the day of the results announcement, andregularly sends out e-mail reminders to all officers and employees regarding the prevention of insider trading prior
to this announcement.
In addition to the use of the intranet, etc., we will continue to systematically provide compliance training to officers
and employees of Group companies at home and abroad to ensure that they are thoroughly familiar with laws andregulations and internal rules concerning information protection and securities trading, and strive to ensure theappropriate management of information and prevent insider trading.
ESG information site C orporate Governance /Corporate Activities Deserving Stakeholder Trust
Prevention of Insider Tradinghttps://denka_sustainability.disclosure.site/en/themes/642

Information Protection and Management■ Strengthening Groupwide ICT Governance
We have been promoting operational process reforms encompassing all aspects of our corporate activities ranging
from R&D and manufacturing to sales and administration, with the aim of enhancing both operational efficiency
and corporate governance. These initiatives involve the utilization and upgrading of information & communication
technology (ICT) on a Groupwide basis.
At the same time, we have striven to protect the Denka Group’s informational assets from incidents arising fromthe use of ICT, including data leakage and falsification, and tosafeguard such assets from cyberattacks, which have become
increasingly sophisticated in recent years. To this end, we pursue thedevelopment of security infrastructure for the entire Group while
conducting risk management-based enhancement of our preventive
maintenance regimen. The above activities are guided by a robust setof in-house rules regarding information security.
Going forward, we will help all Group companies at home and abroad
strengthen ICT governance supporting their internal control systems
as we endeavor to avoid loss and improve our corporate value.

■ Basic Information Security Policy
Article 1 (Compliance with Laws and Regulations)
The Denka Group complies with all relevant laws, regulations, orders and other social norms in relation to information security.
Article 2 (Establishment of Information Security Governance Systems)
In accordance with the Denka Group Ethics Policy, the Group shall strive to establish information security governance systems throughthe formulation of regulations to ensure the safe and appropriate management and use of information assets.
Article 3 (Management of Information Security Governance Systems)
The Group shall strive to ensure the appropriate management of its information security governance systems to prevent unauthorizedaccess to company information systems, and the leakage, theft, falsification, destruction, or loss of information assets, through the useof ICT for internal business operations.
Article 4 (Information Security Training)
The Group shall continuously endeavor to ensure that all employees are fully aware of important rules and matters concerning themanagement of information assets and information security through e-learning and other forms of employee education.
Article 5 (Prevention and Response to Information Security Incidents)
The Group shall strive to prevent issues in relation to the security of its information assets. In the unlikely event that a problem does
occur, we shall take prompt action to address the problem and prevent recurrence.
Article 6 (Continuous Improvement of Information Security Governance Systems)
The group shall continuously review its activities related to information security governance systems and strive to improve systems toensure they meet the requirements of the times.
Article 7 (Enforcement)This policy will take effect on April 1, 2021.

■ Online Information Management
Denka shall ensure management transparency by disclosing corporate information in a timely and appropriatemanner in accordance with the Financial Instruments and Exchange Law and the timely disclosure regulations
stipulated by the Tokyo Stock Exchange. Denka will also proactively disclose information that it deems useful tostakeholders, even if such information is not required to be disclosed by law or regulation. We will also create as
many opportunities as possible, including financial results briefings, company briefings for individual investors, andour general meetings of shareholders, to further facilitate communication with our stakeholders and reflect theiropinions in our management and business activities. Further, by disclosing information that is required to bedisclosed under the regulations of the Tokyo Stock Exchange on our website only after it has been released by theTSE, we strive to prevent the unauthorized access to such information by third parties. In addition to limiting thenumber of website administrators and restricting access to work environments, we have established appropriate
defense systems and contingency procedures. We will continue to strengthen ICT governance at home and abroadof our group companies in accordance with internal controls, and these measures will help avoid losses and further
enhance corporate value.
ESG information site Information Protection and Management https://denka_sustainability.disclosure.site/en/themes/643

Intellectual Property Activities Policy[Basic Policy]
Respect the intellectual property rights of ourselves and others, and contribute to the Company’s management
through intellectual property activities.
[Major Intellectual Property Activities]･ We conduct regular investigations to prevent infringement of other companies' patent rights, and share thisinformation with related departments to strengthen prevention of infringement of such rights.
･ We acquire intellectual property rights to protect our intangible assets and take necessary legal action against
those who violate our rights.
･ We will proactively seek partners who can make use of intellectual property rights that contribute little to ourbusiness activities, with the aim of building a business ecosystem.
･ Through intellectual property activities, we collaborate with internal and external stakeholders to facilitate businesses.
ESG information site Protection of Intellectual Property Rights https://denka_sustainability.disclosure.site/en/themes/641
Denka Sustainability Book 2023

38

Denka Group
ESG management

Governance

Environment

SocialGovernance

Enhancement of corporate governanceCompliance with export controls and economic sanctions

Promotion of BCP Measures Through Raw Material Risk Evaluation

Regarding security export control that prohibits the export of products and technologies that lead tothe development and manufacture of weapons of mass destruction, Denka requires its officers andemployees to comply with export control laws and regulations through the "Denka Group Ethics
Policy" and the "Security Trade Control Regulations," which form part of our internal regulations.
Based on these regulations, we have established an Export Control Committee chaired by the
President, and maintain and manage a security trade control framework, overseen by the Legal
Department, which determines the applicability of products and technologies and reviews customertransactions. In addition, we strive to comply with the Foreign Exchange and Foreign Trade Act andthe Export Trade Control Order by conducting internal audits and attending seminars outside thecompany.
Furthermore, the "Standards of Business Conduct" requires that officers and employees of the
Denka Group comply with the export control laws and regulations of each country applicable to each
export transaction, as well as laws and regulations related to economic sanctions. The Legal
Department, which serves as the secretariat to the Export Control Committee, requires officers andemployees of the Denka Group in Japan and overseas to comply with export control laws andregulations and economic sanctions in each country through the “Denka Global Compliance
Program”. In addition, in order to realize a prompt internal approval process, working with relevant
departments, the Legal Department has been implementing a workflow, known by officers andemployees as the "Export Boss" workflow, to determine applicability and screen customertransactions and chemical substances using ICT tools in an effort to comply with security tradecontrol regulations. The Legal Department also conducts checks and monitoring to prevent
transactions with countries, regions and parties that are at risk of sanctions under economic
sanction-related laws and regulations in an effort to comply with economic sanctions.

At Denka, we regularly conduct objective risk evaluation of raw material procurement andcollaborate with the relevant departments to discuss countermeasures so that our raw material
supply chain does not stop during the occurrence of unforeseen situations such as large-scale
natural disasters (including earthquakes and damage from storms and floods), sudden geopoliticalevents, and pandemics. We are promoting the reduction of procurement risk and the strengtheningof our business foundation.

ESG information site

Security Export Control

https://denka_sustainability.disclosure.site/en/themes/640

ESG information site Promotion of BCP Measures Through Raw Material Risk Evaluation
https://denka_sustainability.disclosure.site/en/themes/741

Establishment of a Sustainable Supply Chain
We would like to fulfill our social responsibilities together with the suppliers that form our supply
chain. Therefore, we strive to establish good partnerships.
The partnerships shouldn’t be one-way relationships where we enforce our ideas but should be
relationships where we and the suppliers mutually understand each other’s situations, and then we
ask them to agree on our intentions regarding ESG Basic Policy and take their own actions. Or we
may ask the suppliers who are making excellent efforts on ESG for help to incorporate such efforts
in our ESG activities. Aiming for such ideal relationships, we have been steadily strengthening ouractivities to physically visit the suppliers since fiscal 2017 with the goal of further improving
partnerships.
In fiscal 2020, in order to prevent the spread of the COVID-19 pandemic, we continued to carry out
activities using online interviews, for example, and we deepened our mutual understanding. Such
activities not only strengthen our relationships with suppliers but also help strengthen the supply
chain. We would like to establish relationships with many suppliers in which we can be recognized bysociety and develop together.
ESG information site Strengthening of partnership with the supply chain
https://denka_sustainability.disclosure.site/en/themes/631

Denka Sustainability Book 2023

39

Denka Group
ESG management

Governance

Environment

SocialGovernance

Placing the Utmost Priority on Safety
Production Process-Related Accidents andOccupational Accidents
On June 14, 2023, at our Omi Plant, one employee from ourpartner company died and two others sustained injuries inan accident in which a pipe had burst during maintenancework at. We prays for the deceased and extend ourcondolences to the bereaved family. We also take thisopportunity to express our sympathies to the injured.
We sincerely apologize for the inconvenience andconcern we have caused to local residents, our manybusiness partners and other persons involved. In addition
to fully cooperating with the investigation by the relevant
authorities, we have established an Accident Investigative
Committee by inviting outside experts and professionals
to thoroughly investigate the cause of the accident andformulate measures to prevent recurrence.
In fiscal 2022, the number of occupational accidents was 24 (16less than the previous fiscal year) and the occupational accident
frequency rate was 0.7 (0.3 points less than the previous fiscal
year), giving a reduction in both measurements. As in theprevious year, one noticeable cause of accidents was a lack ofdue attention, such as the belief of workers in the safety of theirsurroundings. Therefore, we have not only invested in safetymeasures to make our facilities inherently safer, we have also
promoted education to improve safety awareness (non-technicalskills) and initiatives to ensure compliance with and enhanceawareness of basic actions.
Trends in the Number ofOccupational Accidents
40

No absence

23

24

30
20

20

災害件数

12

8

Number of Occupational Accidents

Number of Occupational Accidents

11

10

8

8
6
4

7

Denka

7
0.96

6

5
4

3

0.80

4

2

2

0.68

0.60

0.53

0.40

0.31

0.66

2018

2019

2020

Death

2021

0

2022

2018

2019

2020

2021

0.00

2022

0.67

0.42
0.28

0.20

2
0

Industry average(JCIA members, excluding their subcontractors)

1.20
1.00

9

6

0.11
2018

2019

2020

2021

2022

* Reported on a calendar year basis (January to December)based on regulations of the Labor Standard Inspection
Offices and Japan Chemical Industry Association

Reference: Number of Occupational Accidents at
Subcontractors

No absence

Reference: Number of Occupational Accidents at
Subcontractors
Number of Occupational Accidents

Number of Occupational Accidents
Absence20

Construction

Loading/unloading

8
2018

10
2019

11
2020

16

2021

15

15

24

9

10

13

15

10

0

災害件数

Accident Frequency Rates*

Manufacturing

31

30

5

Trend in the number of accidents in which aworker falls

20

35

15

Trend in the number of accidents in which aworker is pinned down or caught by machinery

40

40

25

Absence

Safety Performance

5

11

10

2022

ESG information site

Safety Performance

ESG information site

Production Process-Related Accidents and Occupational Accidents

Denka Report 2023

Place the Utmost Priority on Safety

9

4
4

0

9

2018

4
2019

4
2020

7

2021

4
7

10

3

2

2022

0

4

5
4

5

4

3

7

7

8

2019

2020

2021

4

2
2018

2022

https://denka_sustainability.disclosure.site/en/themes/693
https://denka_sustainability.disclosure.site/en/themes/694

Denka Sustainability Book 2023

40

Denka Group
ESG management

Governance

Environment

SocialGovernance

Quality Assurance Management
Policy (Quality Policy)

Activities to Improve Customers’ Satisfaction

The Denka Group handles a broad range of operations with an extensive product lineup ranging
from various organic and inorganic materials to electronic materials and pharmaceuticals. For
these diverse products, we have established a quality policy in conjunction with our "Mission 2030"
management plan and are implementing quality assurance activities.

With the aim of accurately satisfying requests from customers and utilizing their feedback in quality
assurance activities, annual customer satisfaction surveys are undertaken by the Electronics &Innovative Products Division.
Through these surveys, we analyze customer reviews and opinions from the aspects of productreliability, our quality response capabilities and partnerships with customers, thereby pushing ahead
with systematic improvements. Negative feedback received from our customers through customer
satisfaction surveys is used as a reference to examine and implement strategic responses to improve
quality.
A large number of our customers have called for more communication, including the exchange of
information and technologies and as a result, we are currently working to facilitate more detailed
communication with our customers.

Quality Policy (Fiscal 2023)
Recognizing that quality assurance of products and services is an important management
issue, the Denka Group undertakes compliance, thorough product safety, and continuous
quality improvement activities to provide superior products and services through technologies
that can be performed better than anyone else, thereby contributing to customer satisfaction
and trust, problem resolution, and sustainable growth.

Our response and approach to responsible mineral procurement
Minerals from conflict areas such as the African continent can be a source of funds for those who
promote conflicts, and therefore regulations have been established such as regulations pursuant
to the Dodd-Frank Wall Street Reform and Consumer Protection Act in the U.S. and similar
regulations in Europe. Although we are not directly obligated to comply with these regulations, weare investigating the use of conflict minerals in our products about which there have been requests
for investigations from our customers driven by societal demands. We report the investigation resultsin the CMRT (Conflict Minerals Reporting Template) format, which is an international template forinvestigations.

ESG information site

Quality Management

ESG information site

Activities to Improve Customers’ Satisfaction

https://denka_sustainability.disclosure.site/en/themes/736
https://denka_sustainability.disclosure.site/en/themes/702

ESG information site Our Response and Approach to Responsible Mineral Procurement https://denka_sustainability.disclosure.site/en/themes/703
Denka Report 2023

Risk Management

Denka Sustainability Book 2023

41

Denka Group
ESG management

Governance

Environment

SocialGovernanceRisk Management
Denka’s Board of Directors recognizes that responding to the changing business environment and various
social issues is an important management issue that leads to reductions of risks and to profit opportunities.
The Board of Directors has established The Denka Group Basic ESG Policy as Denka’s basic policy toproactively address these issues, and is working to improve the corporate value of the Denka Group overthe medium to long term by appropriately responding to each risk, such as by strengthening compliancesystems at the corporate group level and by transforming our business portfolio, challenging ourselves tocreate new businesses to solve social issues.
Risk Management

https://denka_sustainability.disclosure.site/en/themes/676

1●Whistleblowing

Eligible individuals
Officers and employees(including temporary
workers) serving Denka
Group companies in Japanand overseas and their
cohabiting families.

(the whistleblower’s
identity is kept
secret)External contacts

7●FeedbackCompliance Hotline System○ External law firms○ Specialist

organization forhandling harassment
incidents

3●ReportSecretariat
for the Ethics
Committee

6●Feedback(the whistleblower’s
identity is kept
secret)EthicsCommittee

4●Instruction

Internal contacts■ - The Denka Group Helpline System - Global Compliance Hotline System Based on Consumer
Affairs Agency Guidelines
In order to further ensure compliance-focused management across the entire Denka Group and to identify
and correct compliance related issues as early as possible, in October 2018, based on the guidelines set
forth by the Consumer Affairs Agency, the Denka Group formulated its Group Policy on whistleblowing(Compliance Hotline Regulations) for each of the major Denka Group companies in Japan and overseas,
which are also covered by the Denka Group Ethics Policy. Based on this policy, the Ethics Committee has
established and is currently managing the Denka Group Helpline, which serves as an improved version of
the former compliance hotline s-ystem. The Legal Department and the Audit Committee Department serveas the Ethics Committee secretariat, accepting whistleblowing and providing advice in Japanese and otherlanguages from officers and employees of Denka Group companies and their family members bytelephone, e-mail, fax, letter, and other means. In addition, to ensure that officers and employees of the
Denka Group in Japan and overseas feel comfortable using the helpline, we have established several
external helpline, including outside attorneys, to accept whistleblowing and provide advice in both
Japanese and other languages. Further, in compliance with the Law for the Prevention of Power
Harassment (Revised Law for the Comprehensive Promotion of Labor Measures), we have also establisheda "help desk for workplace harassment" to receive whistleblowing and provide advice on harassment and toaddress acts of harassment.
Based on this policy, an investigation team consisting of the secretariat and related departments conducts
fact-finding investigations while protecting the confidentiality of the identity of the caller. When a problem is
identified, in accordance with internal regulations, the relevant department and related departments work
together to address and correct the problem as soon as possible, including disciplinary action, and provide
feedback on the results of the investigation and any corrective measures to whistleblower. The policy
stipulates that (1) appropriate whistleblowing using the compliance hotline system is a legitimate work
action that contributes to the early detection of risks and the enhancement of corporate value; (2) in theoperation of the Helpline, Denka imposes confidentiality obligations on the secretariat, investigation team,people working in conjunction with the team, management, and other company personnel, to ensure theanonymity of whistleblowers; and (3) Denka Group officers and employees are strictly prohibited fromdisadvantageous treatment or retaliation against whistleblowers.
The Ethics Committee encourages Denka Group officers and employees to proactively utilize this helplineby sending out messages from the President, distributing a handbook featuring instructions about how to
use the helpline, posting posters in Japanese and other languages at each office and plant of the Denka
Group in Japan and overseas, and making the information available through the intranet. Use of thehelpline is also encouraged by distributing information about the compliance hotline system and contact
points to all officers of the Denka Group in all compliance training in accordance with the Denka Global
Compliance Program.

2●Report1●Whistleblowing

Helpline

ESG information site

Compliance Hotline System Flow

5
●Investigationand correction○ Audit Committee Dept.

and Legal Dept.

Business units
and individuals
subject toinvestigation○ Administrative

departments at eachproduction bases○ Labor union

Number of reports（件）

FY2020

FY2021

FY2022

20

23

23

Other

Breakdown ofCompliance Hotline System

7％

Misconduct

11％

Harassment

36％

Personnel,
labor and work
discipline

46％(The above classifications are based on the content of the whistleblowing at the time of receipt
and do not necessarily reflect identified facts.)

ESG information site Compliance Hotline System https://denka_sustainability.disclosure.site/en/themes/674
Denka Report 2023

Risk Management

Denka Sustainability Book 2023

42

Denka Group
ESG management

Governance

Environment

SocialGovernanceRisk Management
Our Stance against Corruption and Money Laundering■ Measures to Prevent Corruption
The Denka Group Ethics Policy prohibits officers and employees from engaging in bribery or other illegal
activities as well as from providing or receiving entertainment or gifts of excessive value or the nature ofwhich violates social norms, laws and regulations. In addition, the Standards of Business Conduct stipulatethat the officers and employees of the Denka Group must comply with the anti-corruption laws of thecountries and regions in which the Denka Group operates, including the Foreign Corrupt Practices Act in
the United States, the Bribery Act 2010 in the United Kingdom, and the Unfair Competition Prevention Act
in Japan, and prohibit them from engaging in any form of bribery, including bribery through a third party.
Further, the Standards of Business Conduct require that officers and employees of the Denka Group limit
entertainment and gifts to the extent that is legal and socially acceptable, and to select the best business
partners for the company based on objective criteria rather than personal gain. Denka also alert ourselves
about bribery when engaged in transaction overseas and entering a new field of business. Before entering
into M&A proceedings, Denka conducts due diligence to ensure that there is no risk of corruption in theacquired company, and provides education at overseas subsidiaries. Our subsidiaries in Singapore have inplace strict internal rules on providing or receiving gifts or entertainment in compliance with the laws andregulations of the country.

■ Response to anti-social forces, money laundering and other crimes
The Denka Group Ethics Policy strictly prohibits the provision of benefits to anti-social forces. In addition,
the Standards of Business Conduct stipulate that Denka Group officers and employees must not have any
relationship with anti-social forces, must respond resolutely to unreasonable demands, including legal
action, and must not engage in or cooperate with criminal activities such as drug trafficking, terrorism, arms
smuggling, fraud, or money laundering. Through the Denka Global Compliance Program, Denka educatesofficers and employees of the Denka Group at home and abroad about cutting ties with antisocial andcriminal forces, including the prevention of bribery and money laundering. In addition to these measures,the Legal Department is working to stipulate anti-social force exclusion clauses and anti-corruption clauses
in various contracts. In Japan, the Administrative Department is working together with outside lawyers,
police authorities, and professional organizations to lead efforts to ensure that the Denka Group has no
relationship with anti-social forces.

Denka Report 2023

Risk Management

Denka Sustainability Book 2023

43

Denka Group
ESG management

Policies

Environment

SocialGovernance

Policies
Denka Group Visionhttps://www.denka.co.jp/eng/vision/

G Corporate GovernanceDenka Group ESG Basic Policy

Denka Corporate Governance Guideline

The Denka Group Human Rights Policy

BCP (business continuity plan) policies

CSR Procurement Policies and Guidelines

Basic policy on the development of internal control systems

R&D Policy

Basic Strategy for Capital Policy

https://denka_sustainability.disclosure.site/en/themes/727
https://denka_sustainability.disclosure.site/en/themes/779
https://denka_sustainability.disclosure.site/en/themes/732
https://www.denka.co.jp/eng/rd/strategy/

https://sustainability-cms-denka-sustainability-s3.s3-ap-northeast-1.amazonaws.com/pdf/en/2021/cgguideline.pdf
https://denka_sustainability.disclosure.site/en/themes/704
https://denka_sustainability.disclosure.site/en/themes/637

https://sustainability-cms-denka-sustainability-s3.s3-ap-northeast-1.amazonaws.com/pdf/en/2021/cgguideline.pdf

Publications on the Protection of Personal Information
https://www.denka.co.jp/eng/privacypolicy/

E Environment
Responsible Care (RC) Activity Policies (environment related)
https://denka_sustainability.disclosure.site/en/themes/748

Environmental Policy

https://denka_sustainability.disclosure.site/en/themes/748

Achieving carbon neutrality

https://denka_sustainability.disclosure.site/en/themes/715

The Denka Group’s Policies on the Prevention of Environmental Pollution
https://denka_sustainability.disclosure.site/en/themes/717

Compliance • Corporate ethics
Compliance Basic Policy

https://denka_sustainability.disclosure.site/en/themes/675

Basic Information Security Policy

https://denka_sustainability.disclosure.site/en/themes/643

Denka Group ICT Governance Policy

https://denka_sustainability.disclosure.site/en/themes/675

Denka Group Information Security Policy

https://denka_sustainability.disclosure.site/en/themes/675

Denka Group ICT System Usage Policy

https://denka_sustainability.disclosure.site/en/themes/675

Denka Group Secrecy Policy

https://denka_sustainability.disclosure.site/en/themes/675

S Social

Group Policy on Whistleblowing(Compliance Hotline Regulations)
https://denka_sustainability.disclosure.site/en/themes/674

Declaration of Health and Productivity Management

https://denka_sustainability.disclosure.site/en/themes/757

Work Style Reforms

https://denka_sustainability.disclosure.site/en/themes/747

Declaration of Partnership Building

Prioritization of Safety
Basic Policy for Workplace Safety, Health, Security and Disaster Prevention
https://denka_sustainability.disclosure.site/en/themes/687

https://denka_sustainability.disclosure.site/en/themes/758

Denka Group Social Contribution Policy

https://denka_sustainability.disclosure.site/en/themes/719

Improving product safety and quality
The Denka Group’s Quality Policy

https://denka_sustainability.disclosure.site/en/themes/696

Denka Sustainability Book 2023

44

Initiatives

Denka Group
ESG management

Environment

SocialGovernanceInitiatives
Signatory to the UN Global Compact
The Denka Group signed a petition expressing its endorsement of the United Nations Global Compact(UNGC) and was registered as a participating company on June 8, 2023. UNGC is the world’s largest
sustainability initiative that aims to build a sound global society through the collaboration among the United
Nations and companies and organizations. Companies and organizations that sign the UNGC are required
to support the 10 principles of human rights, labor, environment, and anti-corruption advocated by the
UNGC, and strive to realize them through their business activities.
Denka has set forth the Denka Group ESG Basic Policy to address issues related to sustainability. In
addition, the Company has promoted three growth strategies in its “Mission 2030” management plan:business value creation, human resources value creation, and management value creation. The Company
is working to pursue sustainability in its business activities and strengthen its management foundation. By
signing the UNGC, we will clarify our corporate stance toward the realization of a sustainable society andput the 10 principles advocated by the UNGC into practice in our business activities.

Our Support of the Task Force on Climate-Related Financial Disclosure (TCFD)
In September 2020, Denka announced its support of the TCFD and began participating in the TCFD
Consortium.
Going forward, we will carry out ongoing assessments focused on risk and opportunities arising fromclimate change and other relevant factors, including changes in government policies, regulations andmarket conditions as well as technological breakthroughs in the course of across-the-board initiatives
aimed at realizing the low-carbon society and decarbonized economy envisioned by the Paris Agreement.
ESG information site Responding to the TCFD Recommendations
https://denka_sustainability.disclosure.site/en/themes/750

WIPO GREEN Approach to Environmental Issues
In July 2022, Denka participated as a partner in WIPO GREEN, a global platform for environment-related
technology operated by the World Intellectual Property Organization (WIPO).
We are developing heat dissipation materials that contribute to energy saving and longer life by being
used as heat countermeasures in automobiles such as xEVs and digital home appliances, and phosphor*materials that contribute to the spread of LEDs and play a role in reducing energy consumption. We havea variety of environment-related technologies, such as food packaging materials that reduce the amountof plastic used in pursuit of thinner, lighter weight products.We are leading the way in the development offlexible organic thermoelectric conversion elements and modules using conductive materials and haveregistered these technologies in the WIPO GREEN database.

Positioning environmental management at the core of our management, we focus not only on reducing
CO2 emissions within our company, but also on developing and providing products that contribute to theenvironment and technologies that reduce environmental impact. By participating in WIPO GREEN, we
will create innovation through interaction with other partners who are interested in our environment-related
products and technologies, and contribute to the decarbonization of society as a whole.
Going forward, we will continue to use the SDGs as our compass to do “what we can do better than anyone
else to become a company that is irreplaceable to society and that helps create a world where everyone
can live a better life.”
ESG information site Partner participation in WIPO GREEN
https://denka_sustainability.disclosure.site/en/themes/755

Participation in GX League
The GX League aims to promote discussion and practice for the creation of new markets in industry andgovernment by a group of companies that will lead the transformation of the entire economic and social
system, including stakeholders, to quickly transition to carbon neutrality. Denka has participated in thisinitiative since its full-scale launch in April 2023.
ESG information site Participation in GX League
https://denka_sustainability.disclosure.site/en/themes/760

Participant in the Clean Ocean Material Alliance (CLOMA)
The Clean Ocean Materials Alliance (CLOMA), established in 2019, is an alliance of diverse companies toaccelerate innovation in the prevention of marine pollution from plastic waste.
The Denka Group is actively developing and providing new solutions to reduce the global environmental
impact and promote the efficient use of plastics, taking advantage of its strengths in integrated
manufacturing facilities and product development capabilities ranging from synthetic resin materials topolymer processing and molding.
ESG information site Initiatives to Counter the Plastic Waste Issue
https://denka_sustainability.disclosure.site/en/themes/680
Denka Report 2023

Environmental

https://wipogreen.wipo.int/wipogreen-database/articles/146811
Denka Sustainability Book 2023

45

■ Inquiries
Corporate Planning Dept., Denka Company Limited
Nihonbashi Mitsui Tower, 1-1 Nihonbashi-Muromachi, 2-chome,
Chuo-ku, Tokyo 103-8338, Japan
Tel.: +81-3-5290-5510
Fax: +81-3-5290-5149
e-mail: denkareport@denka.co.jp

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