Improvement of Products Quality

Responsible Care

Safety and Disaster Prevention

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

Lost-time injury frequency rate*
1.48
1.5
1.2

1.11

0.88 0.85 0.82

0.9

0.81

Nissan Chemical
Chemical industry

0.90 0.94 0.93

0.88

1.10

0.37

0.3

0.36 0.37 0.37

0.02011 12130.37 0.37
0.00

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

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

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

Disaster drills (Toyama Plant)

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

Management of reagentsand synthetic compounds

Disposal

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

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

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

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

Indicators

Fostering Quality Culture

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

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

The number of complaint cases

2520■FY2020■FY2021■FY2022

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

15105
Function or Foreign-substanceIngredient

Packaging

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

0●Development

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

System(Cases)

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

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

0.73

0.81

0.76

0.6

1.07

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

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

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

Nissan Chemical Corporation

75

Integrated Report 2023

Nissan Chemical Corporation

76

Integrated Report 2023

Sustainability

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