Environmental and Social Report

2014Technologies to pass our global environment down to future generations.

Our "chemistry to respond to people's needs"
Surfactant Business
Surfactants, which have played a pivotal
role from the starting point of our company,
are used in a wide variety of industrial
ﬁelds, such as rubbers, plastics, colorants,
machines/metals, cosmetics/human-life
related industries, paper/pulp, ﬁber,
agrochemicals/agricultural materials, civilengineering, and energy-related industries.

Amenity Material BusinessOur amenity material business has been
supplying not only various materials used
to improve the amenities within our living
environment, such as sucrose fatty acid
esters, sodium carboxymethyl cellulose,
and polyvinylpyrrolidone, but also theperipheral applied technologies. They arewidely used in many ﬁelds surrounding ourdaily life including foods, pharmaceuticals
and cosmetics, and ﬁshery/livestockindustries.

To soundly
preserve the global
environment

Polyurethane BusinessTo securesecurity andreassurance
in life

Functional Chemicals Business Division
Plastic Materials Business Division
Electronic Materials Business Division

Because they are produced via various
reaction processes or process techniques,polyurethane resins are used in manyindustrial materials, such as urethane foam,elastomer, paints, adhesives, artiﬁcial
leather, civil engineering and building
materials, and electrical insulating
materials. Our company’s polyurethane
resins can serve as the raw material formany urethane products.

Functional Material Business

To realize
convenience andaffluencein society

1

Environmental and Social Report 2014

The usage of synthetic resins covers homeelectronic appliances, residential materials,
and other commodities of daily life. Ourfunctional material business has been
supplying radcure resins, polyurethane
resin water dispersions, ﬂame retardants,
and plastic additives, for which theintention is to enhance the performanceand added value of synthetic resins and to
facilitate environmental improvement.

Electronic Device Material BusinessTechnological innovation in the IT-relatedﬁeld, as symbolized by the popularizationof computers and cellular phones, hasb e e n c o n s t a n t l y s p u r re d o n p u b l i cdemand. By drawing on our unique
technologies, we have been devoted todeveloping various types of electronic
products, including conductive pastes,
ceramic materials, ionic liquids, and lithium
cells, and providing support fortechnological innovation in the ﬁeld ofelectronic devices.

CONTENTS
Message from the President .................................

3

About US
Company Overview ............................................

5

Medium-term Management Plan "Change 100 Plan" .....

6

Our Products Useful in Daily Life ............................

7

Environmentally Friendly Products & Technological Development ...

9

Selected Products ............................................. 10
Promoting Environmental & Social Activities
For CSR promotion / Corporate Governance .............. 11
Compliance / Internal Control / Risk Management ....... 12

Environmental and Social Report 2014: Editorial Policy
Dai-ichi Kogyo Seiyaku has published the "Environment & Safety
Report" annually since 2003, and delivered the report about RC(Responsible Care) activities. In 2008 we added new content ono u r s o c i a l a c t i v i t i e s t o t h e p re v i o u s c o n t e n t s o n o u renvironmental, safety, and health efforts, and renamed the report"Environmental and Social Report." Since then we havecontinued to improve our involvement in society.
This report aims to explain to our stakeholders the efforts taken
by Dai-ichi Kogyo Seiyaku on environmental and social activities,
and promote our communication. We always keep in mind that
we should do our best to disclose lucid and comprehensive
reports in a sincere manner.
Since 2010 we have posted our reports in English on our
website.

Environmental and Safety Activities (RC Activities)

A Summary of Dai-ichi Kogyo Seiyaku’s Environmental and Social Report
Basic Philosophy, Basic Policies, and Corporate Principles for Environmental and Safety Practices... 13
RC Promotion System/Management System .............. 14
Targets and Performance ..................................... 15
Environmental Accounting ................................... 16
Global Warming Prevention (Energy Conservation) ...... 17
Efforts to Reduce Emissions of Chemical Substances ... 18
Chemical Substance Management .......................... 19
Efforts to Reduce Waste ...................................... 20
Efforts to Occupational Safety ............................... 21
Efforts to Process Safety and Disaster Prevention ........ 22
Social Activities
Information Transmission Tools ............................. 23
Relations with Society & Local Communities ............. 24
Relations with Our Customers & Business Partners ..... 26
Relations with Our Shareholders & Investors ............. 28
Relations with Our Employees ............................... 29
On-Site Report
Yokkaichi Branch / Ohgata Branch ....................... 33/34
Shiga Branch / Yokkaichi Chemical Company, Limited.... 35/36
KYOTO ELEX CO., LTD./DAI-ICHI CERAMO Co., Ltd./Elexcel Corporation ...

37

P.T. DAI-ICHI KIMIA RAYA/CHIN YEE CHEMICAL INDUSTRIES, CO., LTD./SHUANG YI LI (TIANJIN) NEW ENERGY CO., LTD. ...

38

Posted on the website
Business of Dai-ichi Kogyo Seiyaku and History of Environmental and Social Activities
The emission amount of notification substances under the PRTR Law in FY2013

t Organizations Covered by this Report
Dai-ichi Kogyo Seiyaku
Head Ofﬁce, Laboratory, Tokyo Head ofﬁce, Osaka Branch, Nagoya Branch,
Kyushu Branch, Yokkaichi Branch, Ohgata Branch, and Shiga Branch
National Afﬁliates (*: located within the premises of Dai-ichi Kogyo Seiyaku)
Yokkaichi Chemical Company, Limited.
Gembu Co., Ltd.*DAI-ICHI KENKOU CO., Ltd.*DAI-ICHI CLEAN CHEMICAL, INC.* DAI-ICHI CERAMO Co., Ltd.*KYOTO ELEX CO., LTD.*
Elexcel Corporation
SUZAKU MICHI Co., Ltd.*In the description related to our performance, we use the following
deﬁnition and distinguish between "Dai-ichi Kogyo Seiyaku" and"Dai-ichi Kogyo Seiyaku Group."Dai-ichi Kogyo Seiyaku: Dai-ichi Kogyo Seiyaku and national afﬁliates
located within the premises of Dai-ichi Kogyo Seiyaku
Dai-ichi Kogyo Seiyaku Group: Dai-ichi Kogyo Seiyaku and allnational afﬁliatest Period Covered by this Report
Essentially, this report contains our activities and data for ﬁscal year
2013 (from April 1, 2013 to March 31, 2014). The data on Industrial
Accident Severity Rate (ASR) and Industrial Accident Frequency
Rate (AFR) were obtained from January to December 2013.
t Reference Guidelines"Environmental Reporting Guideline 2012" from the Ministry of theEnvironment"Environmental Reporting Guideline 2005" from the Ministry of theEnvironment“Environmental Accounting Guideline for Chemical Industries(November 2003)” from the Japan Chemical Industry Association(JCIA)

Environmental and Social Report 20142

Message from the President

Implement the approach to "chemistry to respond topeople's needs," and contribute to the realization ofa sustainable society through our business practices.
"Getting ahead of the times as a leading chemical manufacturer that offers industrial chemicals"
Actualize customer satisfaction and pursue the goal of being a company of importance.
The economy in Japan in FY2013 showed improvement in business
investment in addition to export and production on the background of thecheaper yen and high stock prices, and it is steadily recovering. However,
the effects of overseas economies, such as those in emerging countries,
are still unknown. In the chemical industry, the rising price of the baseingredient naphtha due to rising energy prices and the cheaper yen largely
strangles profits, and we still face a tough situation.
Under such circumstances, we attempted to expand sales of the coreproduct business in our group, and have been devoted to development of a
new market and new materials, stable securing of raw materials, securingof appropriate profit margins, and reduction of total expenses via a new
cost reduction plan, mainly in the future of growing fields, such as"environment," "energy," "electronic materials," and "life materials," inorder to overcome such a severe business environment.

"Change 100 Plan" Stage II
Move a step further. Our action is what leads the future.
The medium-term management plan: “Change 100 Plan” stage II sets the
management vision as follows: We should get ahead of the times as aleading chemical manufacturer that offers industrial chemicals, and realize
our company motto "contributing to the nation and society throughindustry." We should take responsibility in product innovation and progress
through this age of globalization. We should interpret global trends andwalk the paths of continuation and progress." We regard this plan as themilestone on the road to company image in 2025, and reveal plans basedon a long-range perspective.
In FY2013, we formulated the Yokkaichi district base realignment plan andactually launched it. When companies are called into question theircontinuation and progress in the current world of globalization, we judged
the necessity of applying our own fundamental technology andimplementing business investment for new businesses.
In the realignment of the Yokkaichi district, we will include integrated
development functions, such as development of our new business plans
and new materials, and position the Yokkaichi district as our "motherplant," a plant that takes a key role in moving toward the future. As
realignment of production bases including our affiliates, we intend to
implement this plan with unwavering resolve.
To carry out the practice task of "expanding into the peripheral fields" setas the management policy, it is vital to thoroughly review the businesses
3

Environmental and Social Report 2014

Messagefrom the President

and expand their peripheral fields for acquiring an expansion trend in a

Through control committee activities, such as with the Compliance Control

short period. We are considering expansion methods by looking at theCommittee, Risk Management Control Committee meetings, IT Systemsurroundings of current products themselves from a new point of view,

Control Committee, and Financial Reporting Control Committee, we makeretraining our "eyes of the customers" and looking widely at the current

efforts to review various internal regulations and maintain the internalmarket, as well as enhancing added values of our own peripheral

control system, as well as to instill CSR in our employees.

technology.

We will continue transparent and healthy management in order for theConcerning the task of creation of new businesses, we decided to use ourcompany to continue being trusted by our stakeholders and with a highown cellulose-applied technology and commercialize cellulose single

entity, as well as in order to continue as a company where all employees

nano-fiber, and began construction of demonstration facilities. Concerning

conduct fair and healthy business activities as members of society.

the task of strengthening overseas operations, we established the DKS Co.
Ltd. Representative Office Singapore in charge of market research mainlyin Southeast Asia in order to take advantage of the high quality we havecultivated in the domestic market, as well as our own technology to help
customers solve problems.

Engage in Responsible Care (RC) activities andfulfill our commitments as chemical manufacturer.

The medium-term management plan stage II provides ambitious prospects

Our group promotes the RC activities by placing them at the management

in anticipation of the process of targeting a company image in 2025, butbase as a chemical company. Through these activities, we ensure a secure

we should not make this plan to end up only as hopes and dreams. The

environment, safety, and health on a continuing basis, and aim at the

FY2014 will be the final year of the plan. We need to set up more specified

establishment of a trusting relationship within society, and the realization ofgoals to achieve and steadily complete each goal one by one. For this year,

a sustainable society.

while each employee seriously asks in their hearts whether they

In terms of environmental protection, we set the medium-term environment

implemented the goals or not, how they implemented them, and what theygoals, and continue to promote reduction of GHG emissions and theactually did, and we would like to proceed further together.

amount of waste generated. In FY2013, we installed a power generator
using methane gas (renewable energy) emitted as a by-product during
anaerobic treatment of environmental waste-water, and provided a proper

Promotion based on corporate social responsibility

response to preparation of facilities according to the revised Water
Pollution Control Law. Security and accident prevention is the mostTo establish a management base that gains the trust of society andimportant issue for chemical manufacturers. In order for no severe

conduct corporate activities based on corporate social responsibility (CSR),

accidents to occur, we reviewed our manufacturing sites based on the

we set up enhancement of the compliance system as the management"Guideline for Security and Accident Prevention" made by the Japan

policy. We are promoting it as the one of our most important tasks. We

Chemical Industry Association.

established our Code of Corporate Ethics in 2004. In this code, we declarethat each of our employees will observe all legal regulations andWe encourage you to look over this summary of our activities in FY2013

international rules and obey the spirit thereof, respect cultures andtitled “Environmental and Social Report 2014.” We hope this report will

customs in each country and region where we conduct business activities,

help you to deepen your understanding of our company. We would

and behave in a socially sensible manner.

appreciate and welcome any and all straightforward opinions and reviews.

In order to enhance our corporate governance further, we elected

Sincerely yours,

representative directors who were away from the execution-centered

June, 2014

position, and planned to enhance management and supervision of
execution in FY2013. As a result, we could further advance separation
between management and execution, and make each role and tasks of

OYANAGI Masatoshi, Ph.D.
President

directors and executive officers clearer.
Environmental and Social Report 20144

About US

Making Efforts on Environmental and Social Activities
Our company has been actively making efforts on environmental and social activities since the company’s establishment.
We received a commendation from outside organizations, and our activities have attained high reputation.

Company Overview
Overview

Business Segments & Main ProductsCompany Name:DKS Co. Ltd.

Head Ofﬁce:

5 Ogawara-cho, Kisshoin, Minami-ku,

Business Segments

Kyoto, Japan
Date Business Started: April 1909
Date Established:

August 1918

Representative:

OYANAGI Masatoshi, Ph.D. (President)

Capital:

7.1 billion and 41.7 million yen*

Number of Employees: 969 persons (consolidated)*

Main Products

Surfactants

Non-ionic surfactant, anionic surfactant,cationic surfactant, amphoteric surfactant

Amenity Materials

Sucrose fatty acid esters, cellulose type polymer,
vinyl type polymer, acrylic acid type polymer

Polyurethane Materials

Polyurethane polyol,
urethane prepolymer, urethane system

Functional Materials

Materials used for radcure resins,
water-borne urethane resin,
flame retardants, amide-type lubricant

Electronic Device
Materials

Conductive paste for electronic components,
injection molding pellets,
functional inorganic materials

514 persons (non-consolidated)*(*as of the end of March 2014)

Domestic Branches
DKS Co. Ltd.
t Head Ofﬁce, Laboratory (in Kyoto Central Branch)t Main Brancht Tokyo Head Ofﬁce

t Osaka Brancht Nagoya Brancht Kyushu Brancht Yokkaichi Brancht Ohgata Brancht Shiga Branch[Sales by Business Segment (Consolidated)]
Electronic
Device Materials
12.6%
Functional
Materials
19.5%

Affiliatest Domestic: 9 companies

54,614(Unit: million yen)

Polyurethane
Materials
17.5%

t Overseas: 8 companies
Total: 17 companies

Surfactants
37.3%

FY2013

Amenity
Materials
13.1%Management Index
Changes in Sales (million yen)
50,00056,24951,84351,24554,61440,0002,000

30,0001,500

20,0001,000

10,000

500

10

11

12

13 (FY)

Changes in Total Assets & Net Assets■Total Assets ■Net Assets(million yen)

55,41651,35744,291

57,570

1,742
1,544
1,239

09

47,741

30,00016,94912■ R&D Expense

13 (FY)
Ratio to Sales
(%)

6
4.2%

3.9%

4.0%

1,863

2,010

2,273

2,000

16,498

11

Changes in R&D Expenses (million yen)

2,500

15,31610

3,000

40,00020,000

2,374

0
09

50,000

2,439

2,500

44,3520

18,20019,886

1,500

4.5%
2,340

4.6%
2,506

5
4
3

1,000

2

10,000

500

1

0

0
09

5

Changes in Current Profits (million yen)

Environmental and Social Report 2014

10

11

12

13 (FY)

0
09

10

11

12

13 (FY)

About US

Getting Ahead of the Times of Chemistry
The medium-term management plan "Change 100 Plan" started in the year of the 100th anniversary of the company’s foundation.
We devote our efforts to converting the corporate culture, and proceeding towards expansion of our business while maintaining our business quality.

Medium-term management plan "Change 100 Plan"
Stage II –Expansion Accompanied by Earnings– (from April 2012 to March 2015)
Management Vision
We "get ahead of the times as a leading chemical manufacturer that offers industrial chemicals," and realize the company motto "Contributing to the nationand society through industry."
We take responsibility in product innovation and progress through the age of globalization.
We interpret global trends, and walk the way of continuation and progress according to our company credo of "Quality First, Cost Reduction, R&D Efforts."
In the mature society of advanced countries, we set our sights on purification maintenance of global environment, and conversion fields to recyclable ornatural energy.
Looking over the developing society of emerging countries, we pursue our business opportunities under similar geographical conditions as those in China,
India, and ASEAN countries that represent the said countries.
Based on the solutions of our own development ability and technology, we implement the approach to "chemistry to respond to people's needs," and actualize
our company image from Kyoto, to the world, and to the future.

Management Policies

Numerical Targets

We maintain the quality of business contents we have secured in Stage I, and move
forward on expansion of our business.
(1) Expanding into the peripheral fields
We enhance increase of sales by horizontal development and deep digging to
expand the peripheral fields of "current products, technology, and customers."(2) Replenishing and revitalizing the production bases in JapanWe devote our efforts on the securing of and the replenishing of new production
bases and build the foundation of expansion and growth.
(3) Speeding up creation of new businesses
We create new business and invest facilities for our future business portfolio.
(4) Pursuing cost minimization
We promote activities on improvement of thorough productivity and new cost
minimization.
(5) Enhancing management and fostering human resources
We put our efforts on the launch of the DKS Productive Maintenance, fostering of
global human resources, and enhancement of management ability in Japan andoverseas.
(6) Strengthening overseas operations
We enhance development and management in China and Asian regions, andhave started to new expansion of business.

Performancein FY2013

Targetin FY2014

Consolidated Net Sales

54.6 billion yen

60 billion yen
or moreConsolidated Operating
Margin on Sales

4.5％

5 % or higher

Per Capita Sales

56.36 million yen 62.00 million yen

Cost of Sales Ratio

78.5％

77.8％

SG&A Expense Ratio

16.9％

16.9％

1.7 months

1.6 months

Inventory Turnover Rate

Expansion Accompanied by Earnings
2025

Mega Trendt Asia region: growth of population,
increase of incomet Advanced countries: recycled,
natural energy

Medium-termManagement Plan

DKS's Business Chance

Recognition of Our Possible Riskt Four strategy ﬁelds"Environment" "Energy" "Electronic Materials""Life Materials"
t Fulﬁllment and regeneration of domestic andoverseas production basest Asia region: China, Indonesiat Disruption of supply chain by natural
disasterst Finance, money and banking,exchange-rate ﬂuctuations

We approach the company's progression with the viewpoints of "5W1H plus 1."
We execute the points of Why (management vision), What (management policies), When (periodical index), Where (eachdepartment), Who (a person in charge), How, and How Much, and make efforts to accomplish our targets.
▼
For the overview of the "Change 100 Plan," please see our company's website (http://www.dks-web.co.jp).
Environmental and Social Report 20146

About US

Utilized in Various Fields
Our products will aid us in daily life as useful materials and through the members of various products.
This section introduces some examples from scenes in everyday society and the environment.

Our Products Useful in Daily Life
Silicon wafer detergent●DK BE-CLEAR CW

1 Surfactant Business

2 Amenity Material Business■Non-ionic surfactant■Cationic surfactant■Sucrose fatty acid ester ■Cellulose type polymer■Vinyl type polymer■Acrylic acid type polymer■Anionic surfactant■Amphoteric surfactant

Conductive paste for solar cells●DD-1200C

Rigid polyurethane foam forinsulator material●DK POLYOL

Bed, cushion (Soft orsemi-rigid polyurethane foam)● HIFLEX● DK FLEX

Optical sheets, Hard coating agent(Radcure resins)●NEW FRONTIER(Waterborne polyurethanes)●ELASTRON

Flame retardants for plastics●PYROGUARD

Semiconductor sealant materials●Allyl glycidyl ethers

Sealing material for electric insulation(Gas water heater control units)●EIMFLEX

Polymerizable emulsifier (Paint)●HITENOL

Materials for cosmetics(Shampoo, rinse, hair gel)●NEO-HITENOL●CATIOGEN ●CREEJUS●Phenoxyethanol●COSMELIKE

Food additives●DK ESTER●DK FOAMER ●CELLOGEN●NEW FRONTIER

Flame retardants for textile●PYROGUARD

Car seatbelts

Binders for lithium-ion batteries●ELASTRON●CELLBINDER

Epidermis material for car interior●SUPERFLEX

Hybrid vehicle electric components●EIMFLEX

Paint resin for cars
●SUPERFLEX

Emulsion polymerization
emulsifier (Tire rubber)●LAVELIN
7

Coating material for building
material, furniture, and home
appliances (Radcure resins)

Environmental and Social Report 2014

About US

3 Polyurethane Business

4 Functional Material Business

5 Electronic Device Material Business■Polyurethane polyol ■Urethane system■Urethane prepolymer■Materials used for radcure resin■Flame retardants■Water-borne urethane resin■Amide-type lubricant, plastic additives■Conductive paste for electronic components■Injection molding pellets

Detergents for linen supply●LINEN FINE

Detergent for cleaning

Binders for
agrochemicals

Binders for rockconsolidation

Elastic pavement
material

Spillage oiltreatment agent●CELLOGEN●GANBAN●RUBBER STYTER●SEACLE

Heavy corrosionpreventing agent

Feed additives forcultivation●PERMAGUARD●CELLOGEN

Injection waterstop material●FINE SHOT●POLYGROUT

Waterproof roofing
material

Water reducing agent andfluidizer for concretes●POLYFLEX●SELFLOW

Optical fiber connector● Zirconia compound for
ferruleBuildings strengthening
agent (Epoxy diluent)●EPOGOSEY

Environmental and Social Report 20148

About US

Environmentally Friendly Products & Technology
One of the missions of an industrial chemical manufacturer is to develop environmentally friendly materials.
We develop a great number of products using chemical technology know-how accumulated over many years.

Environmentally Friendly Products & Technological Development
Our Products and Technology Development
Responding to environmental requirements including global warming prevention, energy and resource saving, environmental
protection, and the prevention of environmental pollution, we are devoted to supplying environmentally friendly and compliant
products and developing related technologies.

Environmental Requirements Functions & Features

Our Product Line & Technology/Application
Development of DSC (dye-sensitized solar cell)
Lithium-ion battery

Clean Energy

Global Warming
Prevention
Halogen-free type

Energy Efficiency

Energy &Resource Saving

Binder for lithium-ion batteries

DD-1200C Series

Conductive paste for solar cells (lead-free)

DK BE-CLEAR Series

Waterborne washing agents

DK POLYOL 3000 Series

Materials/insulators for non-CFCs (water-blown type) polyurethane foam

COLOURSOL CT-171D

Accelerating/leveling agents for polyester

NEW FRONTIER Series

Solvent-free UV/EB-curable monomers/adhesives, coating agentsDK SYSTEM NF Series

System for non-CFC rigid polyurethane form･insulator

Anti-solidification agents for slag
Effective Resource Utilization
Extension of Life Span
Environmentally Responsive

Environmental
Protection andPrevention ofEnvironmental
Pollution

CELLBINDER Series

VOC* Reduction

Reduction of Environmental Impacts
Removal of Contaminants

ELEXCEL IL Series

Ionic liquids/energy device materials

EIMFLEX Series

Polyurethane resins for electrical insulation･sealing material

NOIGEN TDS Series, NOIGEN XL Series

Nonionic surfactants/emulsifiers, cleaning agents

REOCRYSTA Series

Cellulose single nanofiber water dispersions

SUPERFLEX Series

Polyurethane water dispersions/paints, coating, binders

EIMFLEX Series

Waterborne polyurethanes for electric insulating/sealing materials

ELASTRON/ELASTRON BN Series

Thermal-reactive polyurethane water dispersions, binders, adhesives

NEW FRONTIER Series

Solvent-free UV/EB-curable monomers/adhesives, coating agents

HITENOL KH Series

Polymerizable surfactants/emulsifiers for emulsion polymerization

SEACLE N-800

Spillage oil treatment agents for marine

DEOPELLET Series

Foul odor gas absorbents

Products Meeting Environmental Requirements
A New Thickener Using Cellulose Applied Technology
Cellulose single nanofiber/REOCRYSTA Series* VOC: Volatile Organic Compounds

Transparent gel spray

REOCRYSTA is the water dispersions of cellulose single nanoﬁber (CSNF), of which the ﬁberdiameter is controled to less than 10 nm. Many kinds of applications is expected in industry
ﬁelds as a next-generation material. CSNF derived from cellulose is a new material withrecyclable/renewable and environmentally friendly.
REOCRYSTA can be sprayed like liquid, though its ﬁber width is shorter than visible
wavelengths, and it forms transparent gel. We are promoting development of the technology
as a new thickener in the ﬁelds of cosmetics and paints/ink by utilizing this feature.

Voice from the Person in Charge

Waterborne Urethanes R&D TeamTAKEKAWA Tadashi
9

Environmental and Social Report 2014

Waterborne urethanes have the advantages of excellent ﬂexibility, toughness, andadhesion possessed by urethanes, and they are used for paints, adhesives, andcoating agents. Waterborne urethanes that do not include any volatile organic solvents
can be thought of as materials that take people and the global environment into
consideration. Performance may decrease when solvent-based materials are replacedwith water-based materials. However, we integrate our accumulated know-how of thetechnology of creating urethane and interface chemistry, and develop technology inresponse to the performance required. In order to satisfy customers' diversifying needs
for water-based treatment, we continuously devote our efforts to development.

About US

Selected Products
Numerous product lines developed using chemical technology know-how accumulated for long years. We support manyindustries behind the scenes as a industrial chemical manufacturer that offers chemicals and intermediate materials used inindustrial processes, and contribute to establishment of a comfortable, afﬂuent, and sustainable society.

Contribute to productivity and reduction of environmental impacts
UV/EB Curable Resin
NEW FRONTIER Series
About UV/EB Curing
UV/EB Curing is the technology that generates radicals by delivering
ultraviolet (UV) or electron beams (EB) for curing resins. Unlike theheat-curing method, UV/EB curing can be used to apply coating to basematerials easily affected by heat. It can also provide solvent-free paint/ink
compositions, which could prevent air pollution. Also, the high curing speed
makes processes faster, which can lead to improved productivity.

About the NEW FRONTIER Series
UV/EB curable (radcure) resin is used widely, ranging from building materials to electronic materials, such as wood paints,
planographic inks, plastic coatings, resist inks, optical disc adhesives, optical ﬁber coated resin, resin for LCD components
forming, and UV-curing inkjet inks.
We manufacture and distribute radcure resin materials, both monomers and oligomers as part of our NEW FRONTIER Series,
based on the acrylate (methacrylate) esteriﬁcation technology starting from the long-cultivated reactive surfactants
technology. Acrylate (methacrylate) monomers have the advantages of low contents of ionic impurities, low skin irritancy, low
cure shrinkage, hydrophile-hydrophobic balance provided, and ﬂexibility.
Concerning oligomers, we develop the NEW FRONTIER R Series for functional oligomer and polymerizable materials, with acentral focus on urethane acrylate based on the technology of creating urethanes.

Application Examples of the NEW FRONTIER Series● Coating agent● Photoresist● Inkt Scratch-resistancet High transparencyt Antireﬂection

Environmental and Social Report 201410

Promoting Environmental & Social Activities

Aiming to be a Trusted Company
We continue to maintain the corporate governance system in order to attain a level of high confidence from society.
We also operate our control systems appropriately so that the company organization is properly managed.

For CSR promotion
Our company motto

Contributing to the nation and society through industry

Our company credo

Quality First / Cost Reduction / R&D Efforts

We believe that it is important to gain a high degree of confidence from all stakeholders including the society, customers and business partners, stock holders
and investors, as well as employees through fair and transparent corporate activities based on corporate social responsibility (CSR). In order to realize ourcompany motto and credo and to promote our CSR, we have established the "Code of Corporate Ethics" and “Declaration of Action for Executives andEmployees” to practice and improve corporate governance, compliance, internal control, risk management, etc. Our company group aims to become an
important existence in the world by promoting CSR from views of economy, society and environment.

Code of Corporate Ethics
We confirmed that establishment of corporate ethics would contribute to
the practice of our company motto, "Contributing to the nation and society
through industry," and established our Code of Corporate Ethics. It statesthat we will observe all legal regulations and international rules and obey
the spirit thereof, respect cultures and customs in each country and region
where we conduct business activities, and behave in a socially sensible
manner, based on the six principles.

Items of Code of Corporate Ethics
1. Offering of useful products and achievement of customer satisfaction
2. Securing of transparency in management
3. Blocking of relationships with antisocial forces
4. Promotion of harmony in terms of environmental
protection and with local communities
5. Strict management of intellectual
properties and information

Declaration of Action for Executives and Employees
The Declaration of Action for Executives and Employees specifies theguidelines of basic mental attitude and daily conduct for each of said
executives/employees (including employees on temporary assignment,
contract employees, and temporary staff) to observe the standards set in
the Code of Corporate Ethics. The “Declaration of Action for Executives andEmployees” is also available in card form. The card has been alreadyhanded out to all of our board members and employees. The Whistleblower
Hotline was set up in 2006. This hotline is a contact point for any employee
who has information about (alleged) violations of law and/or wants to reportan actual violation of the law. Whatever access mode is used (phone,e-mail, postal mail), theWhistleblower Hotline isdirectly connected to ourCompliance Control
Committee.

6. Respect of individual personality
Declaration of Action for
fo Executives and Employees
LeafletCorporate GovernanceWe basically consider that we should establish a management base thatgains the trust of society and conducts transparent and fair corporate
activities based on corporate social responsibility in order to continuously
enhance the corporate value. In order to support these activities, we haveestablished and will continue to strengthen our corporate management
system and other corporate governance systems.
All management decisions are made by the Board of Directors that includes
outside directors. All matters that are brought up to the Board of Directors
are first discussed at the management committee so that decisions arerational and conform to the laws and articles of incorporation.
We have also established the executive officers system for executive
officers to determine matters in need of decision by the Board of Directors
as well as perform other business executions. Executive officers include thePresident, Managing Executive Officers, Senior Executive Officers andExecutive Officers and are composed of Division Managers that are
appointed and supervised by the Board of Directors. Executive officers bear
the direct responsibility for the business results of the departments incharge and efforts are being made for the smooth and unified execution of
11

Environmental and Social Report 2014business by reporting business results and important matters at the
Executive Officer Committee.
Our auditors including outside auditors form the Audit and Supervisory
Board. The Board demands from the Directors and employees reporting ofnecessary for auditing the execution of business including the progress ofmanagement plans, decisions made by the Representative Director, statusconcerning risk management of losses and changes in importantaccounting policies. In addition, the Audit & Supervisory Board Member
conducts auditing on a daily basis by attending such meetings as
management committee, Risk Management Control Committee meetings,
Compliance Control Committee meetings, etc. Concerning important
auditing issues, opinions are exchanged regularly between the Audit andSupervisory Board and Representative Director for mutual awareness andstronger relationship of trust. Auditing of accounts is conducted by KPMG
AZSA LLC jointly attended by the Audit & Supervisory Board as needed.
We have also established the Internal Audit Department as a system toverify the internal control system concerning financial reports.

Promoting
Environmental &Social Activities

Corporate Governance System (in force as of March 31, 2014)
Shareholder Meeting
ReportElection

Election
Audit

Election

Coordination

Board of Directors

Audit & Supervisory Board

Accounting Auditor
Consent to appointment or dismissal
Judgment of appropriateness of accounting audit

Appointment/Supervision

ReportInternal Audit Department

President
Election

ReportManagement Committee
Instruction/
Supervision

Discussion/Report

Executive Officers

Review to
proposal/deliberation(

Legal Department

Control Committee
Compliance, Risk Management,
IT System, Financial Reporting
ReportReportAudit

RC (Environment, Safety&QA) Promotion Meeting)

Policy/Plan/Submission

Security & Export Management Headquarters
ReportPolicy/Plan/Submission

Each Business Division & Group Company

Compliance
Our company established a Compliance Control Committee in 2004. This committee has been engaged in establishing our own compliance system andperforming multiple activities to instill compliance practices within our company. We will continue to enhance further compliance practices.

Activities to Instill and Implement Compliance Practices
We set up the Whistleblower Hotline as a contact point for any employee
who has information about (alleged) violations of law and/or wants to reportan actual violation of the law. We have been conducting a “Research on
Compliance Awareness” once a year, in order to check to what extent thecompliance-based management philosophy is instilled in our employees. In
addition, compliance assessment has been undertaken on a sectoral basis.

We provide simple explanations about various laws via company intranet,
as well as e-learning programs using quiz-type games to firmly fix thisknowledge. In 2010 we designated every October as the corporate ethics
campaign month, and since then have conducted various events andeducational activities with the aim of improving our awareness ofcompliance.

Internal Control
We acknowledge that any enterprise must comply with laws andregulations, fulfill its obligations as a member of society through proper
business activities to ensure stakeholders’ interests are served, and makea positive contribution to society while gaining the confidence of said
society. In May 2006, the board of directors passed a resolution on“Systems for Ensuring the Proper Operation of the Dai-ichi Kogyo Seiyaku
Group.” We have been engaged not only in internal control in compliancewith Japanese Corporate Law but also in performing periodic reviews of
our internal control systems and their maintenance and operation, in orderto ensure the credibility of financial reports in accordance with the Financial
Instruments and Exchange Law. In addition to having set up appropriate

internal control committees, we have established our Information Security
Rules. Serving as the foundation of our economy and society, IT controls
currently play a larger role than they used to.
Thus, in order to reduce information system risks such as information
leaks, we have developed information security policies and standards forrisk measures and have defined procedures for information security
practices to ensure the information security of our company. In recognitionof the importance of internal control systems, our Financial Reporting
Control Committee and Internal Audit Department play a central role invarious internal control matters.

Risk Management
The risks companies face have become diversified and complicated, which
may result in increased adverse impacts on shareholders. Our company
places risk management as an important business challenge, and sets up
the Risk Management Control Committee consisting of representatives
from each branch and department. The Committee office members devotetheir efforts on operation and maintenance of the risk management systemevery day so that they obtain risk information both domestic and overseas
instantaneously, and comprehend the situation and take appropriate
measures. To address potential and/or evident risks to our businessactivities, we have established our Risk Management Procedures, Product

Liability (PL) Prevention & Management Procedures, and Information
Security Rules, etc. In FY2013 we conducted continuous risk
measurements in each sector and their progress management. In addition,
we prepared quick reference manuals for emergencies based on the risk
management procedures. Following the Business Continuity Plan (BCP)
concerning earthquake countermeasures in production branches, and theHead office, we prepared the BCP in the Tokyo Head Office. Also, we
repeatedly conducted safety confirmation training in all branches anddepartments in order to enlighten and raise our risk consciousness for
preparation in an emergency.
Environmental and Social Report 201412

Environmental and Safety Activities (RC Activities)

Aiming for a Society that can Develop in a Sustained Manner
We make efforts to conserve global environment through Responsible Care (RC) activities with the aim of protecting
the environment, safety, and health, as well as to establish a circulating society.
We are independently promoting Responsible Care activities that implement and improve environmental safetymeasures by making a pledge under the management policy of taking steps toward environmental, safety and healthconsiderations without simply being satisfied of abiding laws and regulations.
In terms of environmental protection activities, we have set a medium-term goal of reducing greenhouse gas andindustrial wastes during the period between FY2013 and FY2015. We started electrical supply using recycled biomass
fuel of methane gas generated during anaerobic treatment of wastewater at a small scale. We are also promoting
reduction of chemical substance emission and preparation for the changes in the Water Pollution Prevention Act.
In terms of our security and accident prevention activities, we have taken into account the serious accident that
occurred in the chemical industry. We have evaluated the possibility of similar accidents that may occur in our plants,
reviewed our emergency handling manual, and extracted and implemented measures for dangerous locations andprocesses. We are also organizing periodical emergency and evacuation drills to prepare for the event of an accident .
In terms of our occupational safety and health activities, we put more efforts into improving the level of power in the field
through continuous safety activities (KYT (risk prediction training), patrol, 5S and pointing and calling) for an
accident-free workplace with the Safety and Health Committee and Risk Assessment Committee.
Committed to the self-management spirit of Responsible Care activities, we will continue to make efforts in our safe andworry-free production activities to gain trust from society.

Executive Officer/Division Managerof the Production Control Division(in charge of Environment, Safety & QA)

MURAKAMI Osamu

Basic Philosophy, Basic Policies, and Corporate
Principles for Environmental and Safety Practices
Basic
Philosophy

Basic
Policies

Corporate
Principles

We have adopted the following business philosophy for all our business activities: “By providing quality products toensure customer satisfaction, we not only strive to be a prosperous company while moving forward with our employees
and serving local communities, but also contribute to creating an affluent society.” Based on this philosophy, we adopt
the following statement as our basic philosophy for environmental and safety practices: “Throughout the entire life cycleof our products, from development to disposal, we pay special attention to both human safety and health andenvironmental preservation, as well as contributing to sustainable development and the realization of our goal for anaffluent society.”❶ Throughout the entire life of our products, from development to disposal, we evaluate and reduce each product’s
load on the environment and do our best to ensure the protection of the environment.
❷ We maintain no-accident operations to ensure safety for the employees and the residents of the surrounding areas.
❸ We ensure the safety of raw materials and interim and final products, and prevent any health disorders of everyone
concerned, such as employees, carriers, customers, and general consumers.
❹ We not only obey relevant laws and regulations, but also actively and constantly examine and improve theenvironment and safety through self-management.
❶ We evaluate the effects of our business activities on the environment and human safety and, further, set andperiodically review our environmental targets/goals and safety targets to ensure continuing improvement of both ourenvironmental conservation activities and occupational safety and health activities.
❷ We obey any laws, regulations, and agreements related to both the environment and occupational safety and healthissues to ensure coexistence with our local communities.
❸ To reduce environmental impacts, we are devoted to performing all of our business activities in such a manner as toachieve resource and energy conservation, promotion of waste reduction and recycling, and improvement ofoccupational safety and protection of health.
❹ When developing our products and technologies, we are devoted to providing safe products while paying special
attention to environmental and safety matters, and fully understanding the extent to which the product will impact
the environment.
❺ We make our best efforts to help all of our employees to fully understand the environmental and safety policies andto improve their environmental and safety awareness by implementing environmental and safety training andworkplace communication activities. For this purpose, we ask our affiliate companies for their continued
understanding and support.

What Does It Mean?
Responsible Care (RC) Activities
Responsible Care (RC) activities refer to activities voluntarily conducted by the respective companies handlingchemical substances to ensure environment, safety, and health improvements. We also promote dialog andcommunication with the public by making the results of such activities publicly available throughout the entire
process, from the development of a chemical substance to manufacturing, distribution, use, final consumption, anddisposal/recycling.
13

Environmental and Social Report 2014

Environmental and
Safety Activities(RC Activities)

RC Promotion System
We have established an RC Promotion Conference with our president as its
chairman. At the conference, we deliberate on and decide agenda items
based on our Basic Philosophy, Basic Policies, and Corporate Principles forEnvironmental and Safety Practices.
In order to effectively promote our RC activities, we have established threedifferent conferences - the Environmental Conservation Conference, Safety
and Health Conference, and QA (PL) Conference - composed of branchmanagers and the heads of relevant departments and sections, andchaired by the person in charge of Environment, Safety & QA. At these

conferences, our company-wide targets and implementation plans andtheir results are deliberated on. We have also established, as a
sub-organization of our conferences, three company-wide committees the EMS Committee, SHMS Committee, and QMS Committee - as well as
three committees in each of our manufacturing branches - theEnvironmental Protection Committee, Safety and Health Committee, and QA(PL) Committee. The conferences have been held periodically to formulate
implementation plans for RC targets to manage the progress of theseplans, and to summarize obtained results.
■Environmental Protection Committee■Safety and Health Committee

Management Committee

Environmental Protection Conference

EMS*1 Committee

RC (Environment, Safety&QA) Promotion Conference

Safety and Health Conference

SHMS*2 Committee

Quality Assurance (PL) Conference

QMS*3 Committee

tKyoto Central Branch tProduction Branches
tTokyo Head Office tOffices■Quality Assurance (PL) CommitteetProduction Branches*1 EMS : Environmental Management System*2 SHMS : Safety and Health Management System*3 QMS : Quality Management System

Management System
We define our RC activities based on the RC Promotionand Management Regulations, Environmental
Conservation and Safety and Health Management
Regulations, and Quality Assurance Management
Regulations to address and implement them.
In each production base in Japan and overseas, wehave acquired the ISO14001 and ISO9001
certifications for the environmental and quality
management system international standards. We
enhance environmental conservation and improvementof quality by utilizing those certifications as a tool for
executing a PDCA cycle, and continue to improve our
performance. Our ISO accreditation sector performs aninternal audit once a year, and management review
twice a year with the aim of system improvement.

■Reviewing Policies
Review of annual policies■Proposals for Improvement
and Corrective and Preventative
Actions

PDCA Cycle■Audit & Assessment
Auditing performed by our
RC promotion departments
Assessment at Environmental
Protection/Safety and HealthConferences■Understanding the current
status & finding latentproblems

ACTION

PLAN

CHECK

■Implementation
Implementing RC activities using
management systems e.g. ISO standards
on a department-by-department basis■Recording Results & Preparing Reports■Establishing Annual
Policies & Goals■Establishing
Implementation Plans
Deliberated on & decided
at Environmental
Protection/Safety and
Health ConferencesDO

ISO Certification Status in Dai-ichi Kogyo Seiyaku Group

Overseas
affiliates

Our Departments

ISO9001

ISO14001
Acquisition of certification

Certification body

Acquisition of certification

June 2002

JCQA

Certification body

Ohgata Branch

July 2002

JCQA

Shiga Branch

March 2002

JCQA

Production Control Headquarters——

January 2000

JCQA

Business Administration Div.

——R&D Departments——

Yokkaichi Chemical Company, Limited.

March 1999

JCQA

KYOTO ELEX CO., LTD.

August 1998

JCQA

December 2001

JQA

June 2000

JQA

—

—

February 2011

JQA

TIANJIN DAI-ICHI FINE CHEMICALS CO., LTD.

December 2006

ZDHY

August 2001

ZDHY

CHIN YEE CHEMICAL INDUSTRIES, CO., LTD.

BSMI

Yokkaichi Branch

Affiliates

Domestic production branches

Business offices and affiliated companies

DAI-ICHI CERAMO Co., Ltd.

December 2006

BSMI

April 1995

P.T. DAI-ICHI KIMIA RAYA——

September 2009

BVI

SHUANG YI LI (TIANJIN) NEW ENERGY CO., LTD.

——

March 2007

CQC
Environmental and Social Report 201414

Environmental and Safety Activities (RC Activities)

Improving Activities Towards the Targets
We set up the specified activity targets each fiscal year, and conduct the Responsible Care (RC) activities as such.
We also continue to launch investment in environmental-related systems and improve activities in this fiscal year.

Targets and Performance (Dai-ichi Kogyo Seiyaku Group)
Targets and Performance in FY2013
Target Items

Management Items

Evaluation ◎: Significant results ◯: Results according to targets △: Targets remain unachieved

Targets in RC Activities

Promoting energy saving

Energy consumption per unit 1 % improved compared to FY2012

Reducing GHG emissions

CO2 (*1)

Performance in FY2013
6.9 % improved compared to FY2012

Evaluation Reference page
◎

P17

△

P17

28 % reduction compared to FY2005

27.3 % reduction compared to

on average from FY2013 to FY2015

FY2005 in FY2013

Waste generation per unit

1 % improved compared to FY2012

17.9 % improved compared to FY2012◎

Recycling rate

Promoting recycling

88.9 %, 1.0 % decreased compared to FY2012△

Final disposal amount

80% reduction compared to FY2000 in FY2015

73.2 % reduction compared to FY2000△

Final disposal rate (*2)

1 % or less in FY2015

2.4%

△

13.6 % reduction compared to FY2012◎

14.9 % reduction compared to FY2012◎

10.5 % reduction compared to FY2012◎

Reducing industrial waste

P20

SOx emissions
Reducing emissions ofenvironmental impact
substances

NOx emissions

Emission/discharge control of environmental
pollutants in the air

Dust
COD

Emission/discharge control of environmental

23.1 % increased compared to FY2012△

Water discharge

pollutants in water

1.7 % reduction compared to FY2012○

Proper management of chemical substances PRTR Law-designated substances Emission reduction of PRTR Law-designated substances

1.5 % increased compared to FY2012△

P19

Promoting green procurement

Promoting green procurement ratio of office supplies

13.3 % increased compared to FY2012◎—

No occupational accidents (days away from work)

No accidents occurred○

Eliminating severe accidents associated with production facilities

No accidents occurred○

Promoting environmental management system

Maintained○

Eliminating disasters/accidents

P21

Environmental management system*1 Derived from energy in production and management sectors. *2 The rate of Final disposal amount to a waste amount.

Targets and Performance in FY2014
Target Items

Management Items

Promoting energy saving

Energy consumption per unit (*1)

1 % improved compared to FY2012

Reducing GHG emissions

CO2 (*2)

28 % reduction compared to FY2005 on average from FY2013 to FY2015

Waste generation per unit

1 % improved compared to FY2012

Recycling rate

Promoting recycling

Final disposal amount

80% reduction compared to FY2000 in FY2015

Final disposal rate (*3)

1 % or less in FY2015

Reducing industrial waste

Targets and Performance in FY2014

SOx emissions
Reducing emissions ofenvironmental impact
substances

NOx emissions

Emission/discharge control of environmental pollutants in the air

Dust
COD
Emission/discharge control of environmental pollutants in water
Water discharge

Proper management of chemical substances PRTR Law-designated substances Emission reduction of PRTR Law-designated substances
Promoting green procurement

Promoting green procurement ratio of office supplies
No occupational accidents (days away from work)

Eliminating disasters/accidents
Eliminating severe accidents associated with production facilities
Environmental management system

Promoting environmental management system*1 Including the electric power consumption rate for demand leveling evaluation, which was introduced by the revised Act on the Rational Use of Energy (enforced on April 1, 2014)*2 Derived from energy in production and management sectors. *3 The rate of Final disposal amount to a waste amount.

15

P18

Environmental and Social Report 2014

P14

Environmental and
Safety Activities(RC Activities)

Environmental Impact Accompanied with Business Activities

Input

Business Activities

OutputCO2
52,000 t
NOx
97.7 t
Air
SOx
2.5 t
Environment
Dust
1.8 t
PRTR Law-designated Substances 35.8 t

Energy24,300 kℓ oil equivalent

Raw Material

2,992,000 m3
23.7 tPRTR Law-designated Substances 0.4 t
Water discharge

Water
Environment COD

R&D
Material procurement
Water

Manufacturing

3,156,000 m3

Industrial
Waste

Distribution/Sales

Generated amount
12,644 tExternal waste reductions 1,100 tExternal recycling amount 11,241 tExternal landfill disposal amount 303 t
PRTR Law-designated Substances 345.6 t

Products

CO2 3,060 t

Environmental Accounting (Dai-ichi Kogyo Seiyaku Group)
In FY2013, investment for environmental-related systems
was spent mainly for pollution prevention, promotion of energy
conservation, and recycling of wastes. Environmental-related
costs increased in the ﬁelds of pollution prevention. The

economic beneﬁts herein include proﬁts on the actual salesof valuable resources and the amount of cost savings andare not based on estimated economic beneﬁts.

Investment and Costs of Environmental Conservation Activities
Category

Investment (yen in millions) Costs (yen in millions)

Upstream/downstream cost

Main Activity
Pollution prevention
Air pollution prevention, water pollution prevention
Global environment protection
Energy saving
Resource recycling
Resource saving, waste treatment/disposal
Lowering environmental impact in containers/packaging

0.0

0.7

Management activity cost

ISO acquisition/completing surveillance audit, greening each plant

0.7

54.8

R&D cost

Environmentally-conscious R&D

0.0

493.1

Social activity cost

Providing support grants for environmental protection to environmental protection groups or local communities

0.2

6.4

0.0

0.0

349.4

1,519.5

Costs within the plant premises

Environmental damage cost
Total

333.0

482.2

8.7

171.2

6.8

311.1

Economic Effects Generated by Environmental Protection Measures
Items

Activity

Economic Effects (yen in millions)

Profit on sale of valuable resources

Profit on sale of metal scrap, waste oil, and waste alkali, etc.

15.8

Amount of cost savings through energy conservation

Amount of cost savings in electric power and fuels

22.0

Amount of cost savings through resource saving

Amount of cost savings through reduction of water use /waste

6.4

Total

44.2

Environmental and Social Report 201416

Environmental and Safety Activities (RC Activities)

Promoting to Reduce Environmental Impact
We promote energy conservation towards global warming prevention.
We will also control emissions of pollutants and continue to make efforts to reduce them.

Global Warming Prevention (Energy Conservation)
Environmental performance data is described based on the calculation with the Dai-ichi Kogyo Seiyaku Group (total values in all domestic affiliates, including
Dai-ichi Kogyo Seiyaku Co., Ltd., and Yokkaichi Chemical Company Limited) because we acquired 100 % of Yokkaichi Chemical Company Limited in April, 2011.

Changes in Energy Consumption and CO2 Emissions
In FY2013, the Dai-ichi Kogyo Seiyaku Group recorded 24,300 kℓ ofenergy consumption, which resulted in a 0.4 % decrease compared to theprevious year. The energy consumption per unit resulted in a 6.9 %improvement to our target of 1 % compared to the previous year due to aincrease in production amounts. CO2 emissions were 52,000 tons, which
increased 0.2 % compared to the previous year because the actual
emission coefficient was increased per electric power supplier due to the

Changes in CO2 Emissions

30.4

200
27.2

Energy Consumption

25

24.1

24.4

24.3

175
150

20
15
122

125

125

130
121

100

10
100

75

5
0

05

10

11

12

FY201350

Index of energy consumption per unit

30

■Yokkaichi ■Ohgata ■Shiga ■Management sectors■Domestic affiliates
Index of energy consumption per unit

* Index of energy consumption per unit [2005=100].
* Domestic affiliates, including Yokkaichi Chemical Company Limited,
KYOTO ELEX CO., LTD. and DAI-ICHI CERAMO Co., Ltd.

(1,000 t)

70■Yokkaichi ■Ohgata ■Shiga ■Management sectors■Domestic affiliates■Derived from non-energy
71.3

60

57.5
49.8

50

CO2 Emissions

Changes in Energy Consumption(1,000 kℓ)

operation stoppage of the nuclear power plants.
Our medium-term goal is to reduce CO2 emissions by an average of 28 %from FY2013 to FY2015, compared to FY2005. However, CO 2 emissions
were reduced by 27.3% in FY2013, and we could not achieve our target
value. We continue to devote our efforts to reducing CO2 emissions towards
our medium-term goal of FY2013 to FY2015 through activities to improveenergy efficiency.

51.9

52.0

12

FY2013

40
30
20
10
0

05

10

11

* Carbon dioxide emissions in management sectors include fuels for company cars.

Efforts in Logistic Sectors
We outsource our logistic business for our products to external freightcompanies. We transport products by truck, rail, and ship, but the truck
transport is most frequently used because it can instantly respond to thecustomers' desired delivery date.
Related to environmental impact activities, we have been fulfilling our role
as a specified shipper under the Energy Saving Act to tackle the challengesof reducing impacts on the environment. The freight volume increased by
0.7 % in FY2013, but there were no changes in energy consumption andwe achieved a 0.3 % reduction of GHG emissions by promoting modal
shifting. Furthermore, we achieved a 0.7 % improvement in the energy
consumption per unit. Environmental impact reduction in logistic sectors
plays an important role not only in the aspect of global warming
countermeasures, but also in effects on air pollution and/or waste
generation. In the future, we will continue to move forward with ouractivities by promoting further modal shifting, and by making efforts toachieve a 1 % improvement in the energy consumption per unit comparedto the previous fiscal year, which is specified in the goals of the Energy
Conservation Law, through increase of loading rate for reserved services,and reduction of transporting of returned products. In addition, we shareenvironmental impact activities with our logistics partners and continue topursue better results year by year while implementing these activities byexecuting the PDCA cycle.

Environmental Impact to be Reported as a Specified Consigner
Items

FY2013Comparison to the Previous Year

31,446,000 ton·km
45,358 GJ+0.7 %±0.0 %

Energy Consumption per Unit 1.442 GJ/1000 ton·km−0.7 %

CO2 Emissions−0.3 %

Freight Volume
Energy Consumption Amount3,060 t-CO2* Calculated using the Improved Ton-Kilometer method, excluding the Yokkaichi Chemical Co., Ltd.

Efforts to Power Saving
We continued to make efforts on power saving in FY2013, in order to takemeasures against power shortages due to the operation stoppage of thenuclear power plants.
As for approaches for the entire company in general during the "Cool Biz"
campaign period (May to October), we suppressed the set temperature of
air-conditioning equipment, reduced the use of excessive lighting andturned off lights during unnecessary hours. At our Kyoto Central Branch(Head Office/Laboratory), we have installed a demand control system thatshowers air-conditioner outdoor units and reduces peak power usage in
17

Environmental and Social Report 2014

summer.
At our Yokkaichi Branch, we cleaned and maintained cooling towers withthe aim of reducing power consumption. At our Ohgata Branch, for power
generation we introduced a new generator that uses methane gas
generated during wastewater treatment. We will supply the generated
electric power to electric companies by using the renewable energy feed-in
tariff system.
We continue to address power saving in FY2014.

Environmental and
Safety Activities(RC Activities)

Efforts to Reduce Emissions of Chemical Substances
Air Pollution Prevention

Changes in SOx Emissions
12

SOx Emissions

Related to reduction of air-pollutant emissions in FY2013, we achieved a13.6 % reduction of SOx emissions, a 14.9 % of NOx emissions, and a
10.5 % of dust emissions compared to the previous year through operation
adjustment of the facilities based on the efficient production plan. We willcontinue to pursue more energy efficient operation techniques.
Note that the Yokkaichi Chemical Company does not have any facilities
related to SOx, NOx, and dust generation.

■Yokkaichi ■Ohgata ■Shiga

(t)
10.6

10
8
6.7

6
4

3.3

2.9

2.5

12

FY2013

2
0
09

(t)

NOx emissions

120■Yokkaichi ■Ohgata ■Shiga
121.3

110.4

109.2

11

Changes in Dust Emissions■Yokkaichi ■Ohgata ■Shiga

(t)

3.0

114.8
97.7

100
80
60
40

Dust Emissions

Changes in NOx Emissions

10

20

2.5

2.5
2.0

2.0

2.0

1.8

1.8

1.5
1.0
0.5
0

0

09

10

11

12

FY2013

09

10

11

12

FY2013

Water Pollution Prevention

Changes in Water Discharge Amount
Water Discharge Amount(1,000 m3)

3,000

3,131
2,711

■Yokkaichi ■Ohgata ■Shiga■Yokkaichi Chemical Company Limited
3,045
2,992
2,865

2,500
2,000
1,500
1,000
500
0

efforts to reduce the water and COD discharge amount by improving our
production processes and effluent treatment facilities, as well as reviewing
the cleaning methods of production facilities.

Changes in COD Discharge Amount(t)

COD Discharge AmountIn FY2013, the Dai-ichi Kogyo Seiyaku Group recorded 2,992,000 m3 in theamount of water discharge, which was a 1.7 % reduction compared to theprevious year. The COD discharge amount was 23.7 tons, which was a
23.1% increase compared to the previous year. We will continue to make

70

10

11

12

FY2013

64.1

60
50
40
30
20

21.9

21.8

19.3

10

11

12

23.7

10
0

09

■Yokkaichi ■Ohgata ■Shiga■Yokkaichi Chemical Company Limited

09

FY2013

Voice from the Person in Charge
Water pollution prevention activities at Shiga Branch

Plant Administration Section

KOBAYASHI Hideki

Wastewater is treated using the activated sludge process in the Shiga Branch. We maintaine and manage it
based on continuous automatic measurement monitoring and correction of such measuring equipment basedon the Water Pollution Prevention Act, prefectural and city ordinances, and the pollution prevention agreement.
Our Shiga Branch has the largest amount of water discharge among other branches. We are tackling our dailytasks with the recognition that stabilization of wastewater treatment facilities and regular conservation
activities are of utmost importance. Our activities during the last few years focused on identifying chemical
substances that have adverse effect on biological treatment and recycling them as wastes, expanding aeration
tanks, unifying the supply of wastewater load using process analysis, and reviewing management standards.
As a result, we were able to stabilize the quality of treated water as well as reduce COD emissions. Not limited
to water quality, we will continue to reduce environmental impact through our business activities by first
following environmental laws and regulations.
Environmental and Social Report 201418

Environmental and Safety Activities (RC Activities)

Reduction of Waste and Chemical Substances
We have been devoted to the reduction of waste and chemical substances.
We promote our activities based on the rules to regulate proper management of chemical substances.

Efforts to Reduce Emissions of Chemical Substances
Emissions of PRTR Law-designated Substances
The Dai-ichi Kogyo Seiyaku Group had a total of 63 notification substances

amounts and changes in product composition, despite the use of recycled

under the PRTR Law in FY2013. The total amount of emissions was 36.2

Toluene, etc. Through changes in production techniques, improvement of

tons, which resulted in a 0.5 ton increase compared to the previous year. The

production processes and the introduction of recovery equipment, we will

breakdown was 35.8 tons to air, 0.41 tons to water, and none to land.

continue making efforts to reduce the emissions/discharge of PRTR

The amount of waste transfer recorded was 345.6 tons, a 35.6 ton increase

substances into the environment.

compared to the previous year (11.5 % more) due to increase in production

Emissions to Air: ■Dai-ichi Kogyo Seiyaku ■Yokkaichi Chemical Company Limited
Emissions to Water: ■Dai-ichi Kogyo Seiyaku ■Yokkaichi Chemical Company Limited

(t )

(t )

50

10

40
34.6

30

8

35.8

35.3

33.5

29.4

6
4

20

2

10
0.93

0

Emissions to Water

Emissions to Air

Changes in Emissions

0.26

09

10

0.34

11

0.35

12

0.41

FY20130* The results between FY2010 and 2013 show the total amount for the Dai-ichi Kogyo Seiyaku Group and the Yokkaichi Chemical Company Limited.
* For the emission amount of notification substances under the PRTR Law in FY2013 (among all notification coverage substances, those of which the emission
or transfer amount was 0.01 tons or more), please visit our webpage.
http://www.dks-web.jp/download/rc.html

Chemical Substance Management
We set forth the "Chemical Substance Management Regulation" with thesubstitute/reduction of harmful chemical substances, improvement of

aim of global environment protection, accident prevention, occupational

ambient environments, and control of chemical substances contained insafety, health assurance, as well as product safety. Based on thisproducts (Green procurement). We categorize our chemical substances into

regulation, we promote "proper management of chemical substances overthree classes based on domestic and international laws, global

the product life cycle." We have been making control regulations related toagreements, and requests from customers, and we define the control

the understanding of chemical substances in use as well as their amount,descriptions for each class.

Class and Description Related to Chemical Substances Management

19

Class AClass
Substances to be prohibitedClass B

Substances to be reduced

Chemical substances for which complete abolishment would be preferable from an environmental aspect, and those forwhich the formula contained in products needs to be changed.

Class C

Substances to be controlled

Chemical substances for which the amount in emissions or transfer needs to be reduced, those that need to be recycled,
and those for which the above substances in Class A and Class B are excluded.

Environmental and Social Report 2014

Description
Chemical substances prohibited to use on products

Environmental and
Safety Activities(RC Activities)

Efforts to Reduce Waste
The amount of waste generation in FY2013 recorded was 12,644 tons forInternal Disposal

External Disposal

the Group, which was a 1,777 ton reduction compared to the previous year
Internal Waste
Reductions(not included
in total amount)(12.3 % less). The waste generation per unit in production amounts (target:
1 % improvement compared to the previous year) was drastically decreased
by 17.9 % due to increase in production amounts. The external recycling
rate was 88.9 %, a decrease of 1.0 % compared to the previous year.
The final disposal amount (target: 80 % reduction compared to FY2000 in
FY2015) recorded was 303 tons, an increase of 25 tons compared to theExternal Waste
Reductions
1,100 t8.7 %External Recycling
Amount11,241 t
88.9 %

Generated Waste
Amount12,644 t
100 %previous year. This result was equivalent to a 73.2 % reduction compared to
FY2000. In addition, the final disposal rate to the amount of waste
generation was 2.4 %. To achieve the target of the final disposal rate of 1%

Internal Landfill
Disposal AmountExternal Final
Disposal Amount

0t
0%

303 t
2.4 %

or less as in FY2015, not only the Ohgata Branch, with a large amount ofdisposal, but each branch is making efforts to reduce the final disposal
amount. Furthermore, we continue to push forward the 3R (Reduce,
Recycle, Reuse) activities by improving our production processes andreviewing our treatment measures to use resources effectively.

Changes in External Recycling Amount & External Recycling Rate
■Yokkaichi ■Ohgata ■Shiga ■Kyoto■Yokkaichi Chemical Company Limited(t)
16,00014,421
13,395
12,644

Waste Amount

12,00010,67410,000
8,000
6,000
4,000
2,000

00

10

11

12

1,131

18,00089.9

10,602

10,500

60
50

40.1

40

8,000

30

6,000
4,000

4,284

20
10

2,000

0

00

10

11

12

FY2013

Changes in Final Disposal Rate
(%)
3.0

2.8

800
700
600
500
369

300

278

303

200

Final Disposal Rate*

2.5

398

70
11,2410■Yokkaichi ■Ohgata ■Shiga ■Kyoto■Yokkaichi Chemical Company Limited

900

400

80

12,96967.2

12,00010,00088.9

78.4

14,000

1,000

Final Disposal Amount

90

81.0

16,000FY2013

Changes in Final Disposal Amount
(t)
1,100

External Recycling Amount

15,77414,0000■Yokkaichi ■Ohgata ■Shiga ■Kyoto ■Yokkaichi Chemical Company Limited■ Dai-ichi Kogyo Seiyaku ■ Dai-ichi Kogyo Seiyaku Group
(%)
(t)
96.1
96.1
95.8
100
20,000External Recycling Rate

Changes in Waste Amount

2.4

2.5
2.0
1.9

1.5
1.0
1.0

0.5

100
0

00

10

11

12

FY20130

13

in FY2015* The rate of Final disposal amount to waste amount.

(Targets)

10

11

12

Environment-related Complaints
During FY2013, we received two complaints about the noise from the neighborhood. We took emergency measures and recurrence-prevention measures ineach case.
Environmental and Social Report 201420

Environmental and Safety Activities (RC Activities)

Ensuring Safety, Process Safety and Disaster Prevention
We strive to secure a safe and comfortable working environment.
We also engage in conducting emergency drills just in case of emergency events.

Efforts in Occupational Safety
We recognize that ensuring security is the foundation for effective
management and plays a fundamental role in any business activity. Taking
safety first and the respect of human life and dignity as our basis, we havebeen making efforts to eradicate the potential for and occurrence ofoccupational accidents. Furthermore, in order to ensure a safe andcomfortable working environment, we have been promoting the “5S”
activities (Seiri, Seiton, Seiso, Seiketsu, and Shitsuke in Japanese). In
FY2013, we had no "accidents with lost work days" cases and, therefore,
achieved our target of zero accidents in the Dai-ichi Kogyo Seiyaku Group.

For the case studies of accidents, after analyzing the cause of the accident,
we try to laterally disseminate the findings and solutions throughout all
sectors and departments to prevent a similar case from occurring again. In
addition, we have been placing significant emphasis on periodic
implementation of preventative measures and safety patrols by the managers
concerned in order to locate unsafe working conditions and operations that
may exist. Moreover, we continue to conduct activities related to risk
prediction, pointing and calling, risk assessment, and experience-based
safety education, and we aim for the actualization of zero accidents.

Industrial Accident Frequency Rate (AFR) & Industrial Accident Severity Rate (ASR) (From January 1 to Tuesday, December 31, 2013)
The industrial accident frequency rate (accidents with lost work days) of the Dai-ichi Kogyo Seiyaku Group declined gradually from FY2010, and it becamezero because no "accidents with lost work days" cases occurred in FY2013.
We continue to further enhance our conventional safety activities in order to achieve the industrial accident frequency rate of zero in FY2014.
Changes in Industrial Accident Frequency Rate
(Days Away from Work)
Dai-ichi Kogyo Seiyaku Group

Changes in Industrial Accident Severity Rate
Dai-ichi Kogyo Seiyaku
Chemical Industry

Dai-ichi Kogyo Seiyaku Group

3.47
0.20

3.0

Severity Rate

Frequency Rate

3.5

2.30

2.5

2.08

2.0
1.83

1.5

0.71

1.55

1.23

0.79

1.0
0.5

Dai-ichi Kogyo Seiyaku
Chemical Industry

0.25

4.0

0.82
0.64

0

04

05

06

07

08

09

0.10
0.07

0.06

0.05

0.05

0.75

0.72

0.15

10

11

12

0

13 yr.

* Frequency Rate = (“Days Away from Work” Accident)/(Man Hours) x 1,000,000
This is a numerical value representing the degree of frequency of victim
occurrence per 1 million hours.

0.04
0.02

0

04

0

0

05

06

07

08

0

0.03

09

10

0.05

11

0

0

12

13 yr.

* Severity Rate = (Days of Lost Work)/(Man Hours) x 1,000
This is a numerical value representing the degree of severity of an
occupational accident per 1,000 working hours.

Experience-based Safety Education
To improve awareness concerning occupational accident prevention, we
started experience-based safety education in FY2010 and haveincorporated it in the Production Department training in FY2013. Raising
the improvement of safety awareness on a daily basis as an assignment,
we provide this education program so that participants have the opportunity
to sense the danger of accidents through pseudo experiences. In detail,these exercises using pseudo-experience devices include solvent
explosions, getting caught in rollers and pipe pressure. These exercises aredesigned to raise the awareness concerning the various potential risks.
Some of the comments from participants upon finishing the training

include: "The power of even small devices are strong, allowing me to see
the real danger of large equipment." and "My awareness towards
accidents has increased by actually seeing and experiencing them formyself." With such comments, the training has proven to be effective in
accident prevention.
We would like to continue educating the importance of safety knowledge
and stable operation through education and training as well as implement
pseudo-experience education to heighten safety awareness amongindividuals.

Efforts to Distribution Safety
We are outsourcing our logistics business related to storage and transportof our products to an external freight companies. Under the spirit of
Responsible Care, the entire Logistics Department is working as one withcooperating outsource companies to secure safety of transport andenvironmental protection as well as guarantee quality service of transport
to our customers. With the aim of eliminating transportation accidents inparticular, we periodically perform conference activities using the following
documents as useful tools to provide not only all available information but
21

Environmental and Social Report 2014

also proper education and instruction for our logistics partners: "Safe
Driving and Maintenance of Traffic Order," "Revised Laws andRegulations," "Safety and Environmental Standards for Delivery Services,"and "Transport Specifications." In addition, we instruct drivers to keep the
Yellow Card (emergency contact card during product transportation) withthem during transportation of chemical products, and have developed alabel-type Container Yellow Card system by indicating the Emergency
Response Guidebook (ERG) number and UN number on the product label.

Environmental and
Safety Activities(RC Activities)

Efforts to Process Safety and Disaster Prevention
Preparation for Emergency
Just in case emergency events such as a fire/explosion, earthquake, leak,departments.

and/or power outage occur, we have established a security and accident

In order to prevent accidents and disasters inherent in chemical

prevention system for each branch, and conduct emergency drills

manufacturers from occurring, we intend to take measures based on theaccording to the annual program. We also collaborate with local

risk assessment of hazardous properties, such as the potential hazard, andcommunities and organize joint emergency drills, such as with local fire

make efforts to prevent disasters, such as fire and/or explosions.

Kyoto Central Branch

Yokkaichi Branch

Ohgata Branch

Shiga Branch

Funding for Process Safety and Disaster Prevention Measures
The FY2013 funding for our security and disaster prevention measures was 238.6 million yen. This funding was mainly allocated to explosion, fire, and leakprevention measures; mitigation measures for aging facilities; and occupational safety and working environment improvement measures.

Voice from the Person in Charge
Approaches to occupational safety and disaster prevention at our Shiga Branch
At our Shiga Branch, we are conducting the KYT (risk prediction training) at each workplace on a daily
basis to improve the capability of sensing potential that surrounds the workplace. Then we select several
issues from the KYT and share information through debate in the Safety and Health Committee meetings.
In the monthly Risk Assessment Committee, we secure an independent budget, extract and assess risks
as well as examine measures, and evaluate measures that have already been implemented. We promotethese activities using independent-minded employees. Concerning the evacuation and accident prevention
drills held three times a year, we encourage not only our employees but also suppliers working within the
Plant Administration Section

MIZUSAKI Kenzo

workplace to actively participate in the drills. We also put focus on first-aid fire fighting using water-based
fire extinguishers.

Environmental and Social Report 201422

Social Activities

Activities Open to Local Communities
To show our efforts to the public, we transmit information via various media, make presentations in exhibitions,as well as actively engage in local activities based in each branch.

Information Transmission Tools
Transmission Information
For the purpose of providing our stakeholders with accurate and useful information on ourcompany, we publish brochures such as our company’s prospectus our Magazine for Public
Relations titled "TACT", and our Social Activities Reports as "Environmental and Social Activities
Report" (this document), for instance. Our web page also offers not only this information but
information such as that of our technologies, products, and employment. In addition, we haveoffered a series of our Social Activities Reports as "Environmental and Social Activities Report"(this document) since FY2006 on our web page.
[Brochures]

Corporate Profile

Environmental anandd Social
S i l ReportRt

Magazine for Public Relations "TACT"

Exhibition Presentations
During FY2013, we made presentations at the following exhibitions.
June 2013

The 19th research convention concerning groundwater/soil pollution and its prevention measures at Kyoto University
DAI-ICHI CLEAN CHEMICAL, INC. introduced AMENICLEAN/AIR CHEM

September 2013

The 15th CHINA INTERNATIONAL OPTOELECTRONIC EXPO 2013
DAI-ICHI CERAMO Co., Ltd. introduced Zirconia compound

November 2013

The 11th Leading Industry Exhibition Mie 2013 at Yokkaichi DomeIntroduced Cellulose single nano-ﬁber (CSNF)

The 15th CHINA INTERNATIONAL OPTOELECTRONIC EXPO 2013

The 11th Leading Industry Exhibition

DAI-ICHI CERAMO Co., Ltd. introduced PIM (power injection molding)

The Leading Industry Exhibition Mie is a place where highly-motivatedcompounds jointly with their agencies in CIOE2013 held in Shenzhen,

companies and research organizations leading various industrial sectors

China, which was the world's largest exhibition related to opticalgather to create new businesses through collaboration and cooperation.

communications.

We transmitted information regarding the direction of business in the

A zirconia compound is used for the ferrule material that is a connector

Yokkaichi district to the government, local companies, researchcomponent for optical communications. Many people visited our booth,organizations and students. We introduced three companies includingwhich made us realize the high level of interest in our product.

Dai-ichi Kogyo Seiyaku, Yokkaichi Chemical Company Limited and Elexcel
Corporation, as well as our new business of cellulose single nano-fiber.

23

Environmental and Social Report 2014

Social Activities

Relations with Society & Local Communities
We are moving forward with contributions to society by making use of resources of our Group. We are devoted to various local activities including joint
activities with industry groups, acceptance of plant visits, neighborhood cleanup activities and social activities such as participation in community events. Eachbranch holds a consultative meeting with other companies in order to promote local communication.

Communication with local communities
As part of information disclosure and communication with local people in
the neighborhood, we create opportunities to explain our approaches andbusiness activities concerning environmental protection and safetymeasures at our branch, to local people in the neighborhood community
association. We also make use of this opportunity to listen to their opinions
and proposals about risks associated with the chemical plant, as well as
information exchange. In addition, we explain our approaches to theadministration, as well as implementing joint activities with local

Patrol by local communities (Shiga Branch)committees.
Cooperating with the "knowledge" promoters of companies implemented
by the Minami-ku of Kyoto, we introduced various offices to the citizens
and provided a course and hand soap making class under the theme of"Chemistry that Surrounds Our Daily Lives." The event was participated by
35 persons, ranging from elementary kids to parents and even the elderly.
After explaining about our products and research laboratory in the
exhibition room, they enjoyed learning chemistry through experiments on
how detergent removes dirt and making original soap. This was the perfectopportunity to directly communicate with the local community.

Resident exchange meeting (Kyoto Central Branch)

Activities in Industry Groups
On August 29, our Kyoto Central Branch was recognized for its continuous
safety and security performance and energy-saving measures by the
Kansai Electric Safety Association. For the first time, we were awarded the"Outstanding Electrical Safety Award" for significant improvement andmaintenance of electrical safety.
Our Kyoto Central Branch was recognized for its appropriate electrical load
management, reduction of power use and CO2 emissions as a result of
installing a demand controller in 2008 and continuous increase of loadsuppression devices. Especially in terms of electricity-related accidents, wehave been accident free for 47 years.
Outstanding Electrical Safety Award (August 29, 2013)

Neighborhood Cleanup Activities and Participation in Community Events
We actively participate in local events as activities that are close to the local areas. Our Yokkaichi Branch joins the Yokkaichi Minato Festival every year, andShiga Branch and Ohgata Branch regularly engage in cleaning activities in the neighborhood as volunteers.

Cleanup of the Uryuugawa River (Shiga Branch)

Cleanup of the Coast (Ohgata Branch)

Yokkaichi Minato Festival (Yokkaichi Branch)

Environmental and Social Report 201424

Social Activities

Fulfilling Our Social Commitments
We develop our activities to bring up and support children, the leaders of tomorrow, through activities such as lecturing to elementaryand junior high school students, acceptance of students for internship, and field trips that include on-hand experience learning.
We build and operate the Quality Assurance system, as well as provide product information to customers.

Relations with Society & Local Communities
Lecture Delivery for Local Communities/Elementary and Junior High School Students
We give lectures for elementary and junior high school students with theintention of making opportunities for them to take interest in the fun ofchemistry and environmental issues. We do this with simple explanations of
the base knowledge of chemical materials. We encouraged each student tomake an experiment using the familiar chemical product detergent, and tounderstand why detergent can remove dirt, allowing them at the same time
to experience the fundamental effects of surfactants. Through our lectures,
we gave opportunities for the students to consider effective uses ofchemical materials, as well as the importance of water.

Lecture Delivery (Kyoto city)

We conducted lectures to the fourth grade students at Noso Elementary
School (Kyoto City) in September 2013, and second grade students at
Minato Junior High School (Yokkaichi City) in February 2014. We joined theevent titled "Science is fun! Learn about the environment andmanufacturing!" at the Yokkaichi children’s scientific workshops (organizedby the city education committee) in August 2013. We practice the class inan easy to understand way for people to enjoy studying their familiar
chemical products, using our know-how and experience accumulated
through our business.

Lecture Delivery (Yokkaichi city)

Yokkaichi child scientific workshops

Internship & Learning through Work
We have accepted students for internships, and over the years manytechnical college students have participated in our internship programs. For
one or two weeks during their summer holidays, we have participants
experience practical work in our workplaces, such as in our laboratories,
quality control department of each branch, etc. In order that they
understand our actual business operations and services, we are devoted toreviewing and improving each of our programs so that interns can reallyfeel "the meaning of work" during this short period.

We believe that accepting students for internships will help them not only
to expand their occupational awareness and improve their business ability,
but also to promote their understanding of workplace relationships andeffective information exchange while communicating with their schools. In
addition, we cooperate in terms of experience learning of our business
operations, as well as occupational interviews concerning the company andwork upon requests from neighborhood schools.

Acceptance of Technical College Students for Internship(persons)

10
8
6
4
2
0
09

10

11

Workplace Experience (Ohgata Branch)
25

Environmental and Social Report 2014

12

FY2013

Workplace Experience (Shiga Branch)

Internship (Shiga Branch)

Occupational Interview (Ohgata Branch)

Social Activities

Relations with Our Customers & Business Partners
Quality Assurance (QA) System ———————————————————————————————————
Our group has acquired the ISO9001 certification through a third party anddesign/development, manufacturing, and sales. Toward the realization of

introduced the quality management system based on the required"Customer First," which is one of our management principles, we define

standards. Under this system, we build and operate the QA system. We

the following Quality Policy, and continue to make efforts for improving ourconstantly strive to clarify the quality assurance process, as well aswork in order to upgrade quality in our products and service.

assigned roles, duty and authority in each QA department under our QA
system in order to implement in-depth quality control (QC) and provide(1) We will strive to design a product with high quality to meet customers’

accurate product information while responding to product complaints in a

expectations and to supply a highly reliable and safe product before thedue date requested by the customer, and at a reasonable cost.

quick and faithful manner. We have always been devoted to providing(2) We will pursue higher quality in our products and continue to improve

products that are safe for use.
We establish the quality-related management standards over the whole ofthe effectiveness of our Quality Manual in order to maximize customer

the processes, from product planning to customer ser vice via

satisfaction.

Process for New Product Development
When trying to develop products, suppliers must take into account a variety

and production, distribution, and industry property can be secured forof aspects of the customers’ needs in an accurate manner. We perform QA

all of the following processes: planning, designing, developing, andactivities by checking and assessing the progress from multiple viewpoints,

manufacturing.

so that regulatory requirements, environmental and security requirements,
Customer

Planning

Design- (M)SDS- Specifications for Delivery- Other Written Certificates

Development

Improvement

Response to(M)SDS
Indication

Commercialization

Investigation of raw materials
Safety of the process
Selection of production facilities
Environmental compliance
Regulatory compliance

Supplying productOffering services

Response to
Production Request

Function & Performance Evaluation
Property evaluation
Selection of containers
Safety evaluation
Environmental compliance
Regulatory compliance

Offer &
Assessment

R&D Prototype

Production Processes Composition & Packaging& Facilities

Design & Development

Validity Check

Needs

Items to be Assessed

Manufacturing

Provision of Product Information
We provide various product information as an opportunity for (prospective)
customers to better understand our products. We always respond torequests and inquiries from our customers quickly and adequately in goodfaith. For the purpose of introducing our existing products and/or new
products, we strive to be in close communication with customers andbusiness partners, not only through our everyday business negotiations, butalso with our brochures and technical documents.
We have been providing material safety data sheets ((M)SDS) for chemical
substances of all our products and answering inquiries about
environmental burden substances and/or the relevant laws and regulations.
We update sequentially our (M)SDS and GHS-compliant label indications
according to the revisions of the Industrial Safety and Health Law, thePollutant Release and Transfer Resister (PRTR) Law, and the revisions of
the Japanese Industrial Standards (JIS).

Product Brochures
churesEnvironmental and Social Report 201426

Social Activities

Aiming for Management that Responds to the Expectations of the People
We conduct quality management, and respond to product complaints in a quick and faithful manner.
We regard the shareholder meeting as an important opportunity for meaningful communication.

Relations with Our Customers & Business Partners
Quality Management System
We operate ISO9001 as a basic tool for our quality management
activities. We accept all information related to quality, from customers
through sales representatives, and/or directly in the QC section of eachbranch. Under this system, we unify management and promptly respondto quality-related information. Every month the QC section and
Production Departments hold a product quality review meeting in order tomaintain and improve quality, as well as decrease any defects. We use

Business
Administration
Division

Production Control
Division

Business Headquarters
Business Divisions
Sales
Department

R&D

Production
Department

Functional Chemicals Business Division
Logistics Department
Order receipt & shipping

QA (PL) Conference

QMS Committee

Plastic Materials Business Division

Product Quality
Review Meeting

Purchasing Department
Material procurement

our PDCA cycles in the quality assurance management system to review
and promote improvement and/or advancement measures. In the Quality
Assurance (PL) conference, we deliberate the issues brought up from the
QMS Committee, and summarize management reviews to examine how
the quality management system is suitable, adequate, and effective.

(Head of) Branch
QC Section

Environment,
Safety & Quality
Affairs Department

Electronic Materials Business Division
Each Branch

Customer

Response to Complaints and Quality Defects
Product quality complaint management is our top priority to assure stableproduct quality. Therefore, we have established our internal Proceduresfor Handling Product Complaints. We specify procedures to deliver
information from the sales department which receives information from
customers to the QC section and relative departments at each branch,and deal with quality-related complaints according to these procedures.
Our policies for handling product complaints focus on the following
practices: maintaining credibility by responding quickly and in good faith,thoroughly probing the cause of the complaint, and taking preventive

measures and recurrence prevention measures. We share quality defectand complaint information through the network, and conduct progress
management while setting the goals to reduce the number of complaints
and quality defects. In order to deal with abnormal events, we clarify theroot cause using our analyzing method (" Why-why analysis") and
implement recurrence prevention measures. In addition, each branch
implements the pointing and calling method thoroughly, and conducts a
product quality inspection patrol to improve product quality.

Product Liability (PL) Policy
We established our Product Liability (PL) Prevention & Management
Procedures and PL Accidents Prevention System to ensure the safety ofour products and to prevent product safety accidents from occurring. Our
fundamental policy is to secure the maximized product safety over thewhole processes consisting of R&D, manufacturing, and consumption,and the final disposal, as well as to develop, manufacture, and sell
products with higher safety and reliability, and to offer customer services
for them.

Partnership with Our Dealers
We are conducting sales activities with the cooperation of distributors bysearching needs and seeds built between our company and customers
and strengthening sales methods that demand solution to problems. We
are strengthening the sales of solutions by expanding our pipes for eachfield with Zenkoku Ichi-Ko Kai (DKS National Dealers Meeting) agencies
composed of main sales agents and distributors.
In the FY2013 Zenkoku Ichi-Ko Kai, we explained our businessperformance, medium-term management plan and a summary of the
Yokkaichi district realignment. We promote communication activity with
our dealers, such as information exchange, in order to realize mutual
prosperity based on our trusting relationship.
Zenkoku Ichi-Ko Kai (DKS National Dealers Meeting) in Kyoto

27

Environmental and Social Report 2014

Social Activities

Relations with Our Shareholders & Investors
Shareholder Meeting
We regard the shareholder meeting as an important opportunity to foster
communications between shareholders and management. 90
shareholders attended the annual shareholder meeting in 2013. After the
meeting, Chairman, Mr. Sakamoto, had the briefing session titled "To ourshareholders of chemistry to respond to people's needs," followed by ashareholders get-together with top management. We had meaningfulexchanges of opinions with our shareholders in a relaxed and friendly
atmosphere.

Shareholder Meeting

Get-Together of Shareholders and Top Management

Information Disclosure
Based on fair and timely disclosure to our investors, we disclose
information using the Timely Disclosure Network (TDnet) provided by the
Tokyo Stock Exchange and mass media (such as Japan National Press

Club). Our website provides IR information such as earnings summaries,
shareholder letters, securities report as well as notice of calling ofshareholder meetings, corporate information and press releases.

Shareholder letters

Our company's website
IR Information http://www.dks-web.jp/

Press Release

Environmental and Social Report 201428

Social Activities

Fostering Full-Fledged Employee/Corporate Member of Society
We organize our employment system in response to the demands of the times so that all employees can progress respectively,
and launch enhanced programs related to human resource development and education.

Relations with Our Employees
Our company recognizes that our employees are our greatest asset and that the growth of each individual employee will support the growth of our company. To
assist each of them in becoming a full-fledged employee/corporate member of society and gaining a sense of accomplishment and satisfaction from theirwork, we have been devoted to protecting the human rights of our employees and improving various human resource systems, human resource development
and education, and working environment development.

Our Company’s Human Resource Philosophy
Our fundamental human resource philosophy is rooted in the idea that our people are our greatest asset and must be nurtured and treasured. We
believe that by putting our belief into practice the growth of each individual employee will support the growth of our company and will allow ouremployees to be active, to grow, and to realize their potential in each workplace. This will help them in not only achieving their self-actualization but
also serving as a driving force for further developing of our company, as well as making the company’s presence permanent.

Human Resource Development Policies
In order to foster people who can fully understand our company’s management philosophy and the management policies based thereon and cancontribute to the realization of such philosophy and policies, we require that our employees have the following basic skills and attitudes:
1. Profound expertise, technique, and broad vision 2. Energetic attitude and behavior 3. Flexibility in thinking 4. Fruitful in terms of creativity

General Business Owner Action Plans
Our company has established General Business Owner Action Plans, which are intended to help our employees balance their careers and child-rearing.
These action plans have been shared with the public and within the organization.

General Business Owner Action Plans (summary) (From April 2010 to March 2015)
Target 1: Familiarizing our employees with our child-rearing support system and enlightening them
Target 2: Implementing measures to reduce overtime work
Target 3: Implementing measures to promote taking annual paid leave
Target 4: Performing community contribution activities related to children and child-rearing practices
Target 5: Expanding opportunities to obtain working experience including internship

Our Personnel System■ Employment System
In response to the declining birthrate and aging society, and in order topromote a healthy work/life balance, we have developed the following
personnel systems, each of which takes into account employees’
child-rearing and nursing care. We discussed the period extension ofchild-rearing short-time work in the union-management consultation, andhave implemented it since FY2013.
- Childcare Leave System- Childcare Part-time Work System- Nursing Care Leave System■ In-house Achievement Award System
Through our employee incentive programs, we have been running not
only a performance incentive system such as patent and personal
achievement awards (twice per year), but also Division Manager’s andlength of service awards.

Number of Employees Who Have Used the Personnel
Systems During the Last Five Years■Childcare Leave System(persons)■Childcare Part-time Work System

12
10
8
6
4

FY2013 First Half Achievement Award Winners

2
0

09

10

11

12

13

(FY)

■ Retiree Reemployment System
We have introduced a reemployment system for our company’s retirees
since FY2006. By drawing on their many years of skills, techniques, andexperience, they still remain active as “senior challenge staff.”
We have changed our system according to the law revision since FY2013.

29

Environmental and Social Report 2014

■ Efforts to Prevent Harassment
As for activities to prevent sexual, power, and moral harassment, we
provide related education programs in hierarchical training courses, andtake care of any (alleged) harassment incidents by established contact
points.

Social Activities

Human Resource Development & Education
We recognize that the growth of employees lead to the advancement of ourcompany. To realize this human resource philosophy, we are promoting
human resource development and education programs.
In programs for our employees, we focus on three pillars of in-house
education (OJT) through work, external education (OFF-JT) of skills andabilities necessary for performing tasks and self-enlightenment support.
In addition, we are dedicated to supporting voluntary capacity building of

our employees by providing them with in-house lectures and briefing
sessions. We renovated the former Head Office in Shichijo Sembon, where
the company was founded, as a training facility to provide education. We
have introduced correspondence education courses and a support systemfor obtaining qualifications to promote capacity building of our employees
through self-enlightenment.

Education Training System
Since FY2011, we have reviewed our past training programs and contents
to improve managerial skills and human resource development. Then we
established the new education training system. In order to enrich ourprograms, we have especially added programs for the training course byposition and department training for external education.

On the Job Training (OJT)
Department training

Director

Training course by position

Production

Management

Self-development
support program

CommonWorkshop practiceCorrespondence education courses/e-learning

Support for the TOEIC examination

Support system for obtaining qualifications

English conversation class for beginner/advanced levels

Compliance Education

Human rights education

Domestic study program

Staff dispatching to outside conferences or seminars

Mental health care education

Accounting training (advanced)

Experience-based safety training

Foremantraining

Follow-up
training

Skills improvement
training

Sales development workshop

New sales staff training

Practice and application of sales business*1

Accounting training (basics)

Follow-up training

Brother andsister system

New employee

Third-year training

Presentation
training

Professional Training

Experiment Planning
Method Training

Advanced Professional Training

Logical thinking
training

New manager training

Safety and health education

Accounting training

Development training for research management post

Third-year management post training

Engineer training

The management

Fifth-year management post training

Coaching practice training

General staff

Sales

Management workshop

Corporate manager development training

On the Job Training (OJT)

Research*2

New employee training*1: LT (Logical thinking)*2: Brother and sister system: The system which a young senior colleague and a new employee make a pair, and a young senior colleague undertakes the guidance of
the way of advancement of the work one-to-one.

Third-year management post training

Voice from the Person
in Charge

Correspondence
education courses

Experiment planning method

Personnel Section MATSUYOSHI Kenichi

We have entered our third year of personnel training and education based on the new education/training
system. In FY2013, we made efforts so the trainees surely gain the necessary skills through the Brother& sister system where young senior colleagues train new employees, and the education training courseby position where issues are set before and after training. I believe both of these programs benefit inmajor growth of our employees.
My goal is for each department to raise human resources that bear the future as well to be recognizedfrom the outside as a top industrial chemical company with a high level of employees. To realize mygoal, I will strengthen training of young employees in FY2014.

Environmental and Social Report 201430

Social Activities

Expanding Opportunities of Our Own Activities
We promote such employee-centered efforts as meeting for presentation of research results, and improvement activities with theparticipation of all employees.
Furthermore, we conduct regular health checks and have mental health care programs to support our employees' health in both
body and mind.

Relations with Our Employees
DKPM Activities
DKPM (DKS Productive Maintenance) activities based on the 5S (Seiri, Seiton,
Seisou, Seiketsu and Shitsuke) are activities for improving productivity, businessefficiency, quality control and safety awareness that are the key elements of amanufacturer. These activities are also the base that supports the strategies of
medium-term management plan stage II and the purpose of these activities is tostrengthen the corporate culture and build a foundation for control andimprovement. Following the declaration of the activities by the President in April
2012, all employees including top management participated in them, and theemployees are promoting the activities under the guidance of consultants.
Quarterly execution plans, maintenance management diagnosis, performance
reports and on-site diagnosis by the top management became mandatory. The
best teams are rewarded accordingly. One of the affiliates, Yokkaichi Chemical
Company Limited has been conducting the activities under the name of YGPM for
more than 20 years starting in 1990.

DKPM diagnosis by top management (Ohgata Branch)

In-house Seminars and Briefings
In FY2013, the following in-house seminars and briefings were held:■ Seminars (by a visiting lecturer)- Chemistry concerning the particulate stabilization dispersion system- China patent system - key points for creating specifications with consideration
for its features■ Briefings- Assessment for the research department: information management system andintellectual property rights- Publicity of database of contract review requests- About checkpoints of contracts
In-house seminar

Meeting for Research Presentation
We hold meeting for research presentation twice every year, which provides
company-wide technical forums for our researchers to present and discuss theirlatest findings in R&D and production technology developments. The meetings for
Research Presentation are composed of three sections: a special seminarpresented by a visiting lecturer, verbal presentations, and poster presentations. In
FY2013, we held the 78th and 79th meetings for research presentations in Julyand January, respectively.
At a convivial meeting following the meeting for research presentation,
participants vote on the best research presentation and a winner is awarded.

The 78th Meeting for Research Presentation

In-house Magazine
We publish the in-house magazine “DKSCOM” every other month to introduce
various articles including messages from top management, regarding
management policy, and covering our employees' performance.
Our editorial policy is as follows:(1) Convey management policies and information to each employee and sharethem.
(2) Promote communication between managers and employees.
Every year, each employee creates a challenge card and posted in the in-housemagazine. Each card represents the challenge of each employee for the year andis posted at the workplace.

C
ChallengeC
Card

The FebFeb. - Mar
Mar. 2014 issuee31

Environmental and Social Report 2014

Social Activities

Family Service Day
As our first effort, we held a Family Service Day (February) at the Yokkaichi Branch
as an event for family members to become familiar with the workplace as well tostrengthen the bond of families. Total of 34 persons from 10 families participatedin the event.
The day was full of smiles as participants took a tour of the plant, learned about
our products as well as how to make hand soap, and participated in a sampling
party. We would like to see such events being held at other branches as well.

Family Service Day (Yokkaichi Branch)

Healthcare & Occupational Safety■ Health Checkup
As a result of encouraging and motivating all our employees to get regular medical
checkups, their checkup-participation rate in FY2013 increased to 100 % of ourgoal. To achieve early detection of cancer and ensure the promotion of good
health for our employees, we conducted medical checkups including X-ray
examination of the stomach, abdominal chocardiography, dental checkup, and PSA
examination at all our branches.
Since FY2010 we have recommended reexamination and second checkup
participation for employees who received results with abnormal findings in order toensure that they do not fail to attend reexamination, and help them understand theclinical results. Consequently, the rate of reexamination and second
checkup-participation was 68 % in FY2012, and 76 % in FY2013.
We will also make further efforts to achieve 100 % participation in FY2014. We
will continue to promote this activity in order to prevent any current symptoms
from leading to serious illness and/or keep any illness or other problems fromincreasing in severity.

Health Checkup (Kyoto Central Branch)■ Health Promotion
As part of health promotion, we held a seminar for prevention of lifestyle-relateddiseases. With a physiotherapist of Kansai Rosai Hospital as a lecturer, we had
blood viscosity checked, followed by a lecture that included exercises to help
prevent lifestyle-related diseases. We would like to continue implementing such
health promotion activities for the maintenance and promotion of health.
■ Mental Health CareAs for mental healthcare activities in FY2013, we introduced an outside consultant
and opened a consultation service. Targeting employees and their family
members, non-work related consulting can be also accepted.
The consultant visited the Yokkaichi, Ogata, and Shiga Branches, providing
lectures regarding counseling as well as counseling demonstrations. Information
was also transmitted outside our branches regarding the counseling course andoutside consultants.

Seminar for Prevention of Lifestyle-Related Diseases(Kyoto Central Branch)

Explanation by an outside consultant
Environmental and Social Report 2014

32

On-Site Report

Yokkaichi Branch
Located in the coastal area of northwestern Mie Prefecture, our Yokkaichi Branchis blessed with natural surroundings that include the lush, green Suzuka Mountain
Range, the water-filled Kiso Three Rivers, and Ise Bay. In order to protect thisnature-rich region and its richly endowed environment, we strive to integrate
environmental consciousness into all our business activities and continue to
implement environmental protection practices. Following air pollution reduction
through fuel conversion in recent years, we introduced electric vehicles as part ofcompany activities with a focus on environmental consciousness and energy
conservation. We are also implementing security and accident prevention
measures to cope with the recent increase in plant accidents as well as accident
prevention and fire prevention drills on a regular basis to prepare for earthquakes
and plant accidents. We actively carry out local emergency drills, and promote ouractivities with the goal of being the branch coexistent with the local community.
We will continue to advance and contribute to society by focusing on complianceand actively making efforts to reduce environmental impact.

RC promoting member

Environmental Impacts in FY2013
(kℓ)

1,945

(t-CO2 )3,945

Generated Waste Amount

(t)

5,671

Final Disposal Amount

(t)

0.1

PRTR Emissions

(t)

34.72

(1,000m3 )

490.5

(t)

0.6

Energy Consumption (Crude oil equivalent)

Address: 7 Chitose-cho, Yokkaichi City, Mie Pref.

CO2 Emissions

Area of the Site: 17,647 m2
Main Products:
Polyurethane polyol, urethane prepolymer,
UV-curable monomers/oligomers, cationic surfactant
anionic surfactant, oiling/ﬁnishing agent

Water Discharge Amount
COD Emissions

Changes in CO2 Emissions and Energy Consumption per unit
(1,000 t)

CO2 Emissions

Index of Energy Consumption per unit [FY2005=100]

117.6

Changes in waste amount and the final disposal rate
10,000

100

8,000

15

80

6,000

10

60

4,000

40

2,000

20

5
0

103.5

5.4

09

105.3

5.9

10

102.0

104.3

4.2

11

4.3

12

3.9
FY201320

Waste amount

(t)

120

25

Final disposal rate (%)

10

8,897
7,175
6,075

0

8

7,775
5,671

4
2
0.15

0.09

0.36

0.07

0.00

09

10

11

12

FY2013

Efforts in Environmental and Social Activities
This branch located in the industrial complex has promoted communication with local
communities through activities concerning environmental protection and security andaccident prevention, as well as active participation in local events. As for activities
concerning environmental protection, we made efforts to reduce CO 2 through theactivity of shutting down lighting. We also joined a cleanup work for driftage on the
coast at the Toshi Island in Mie Prefecture, which was organized by the Mie Prefectureindustrial waste disposal promotion association.
In addition, we have devoted ourselves to helping bring up children by joining the"Yokkaichi science seminar for children", giving delivery lectures, and donating
newspapers for elementary students. The "Yokkaichi children science seminar" isorganized by the Yokkaichi city education committee based on the idea of making fulluse of the characteristics of the city's industrial location, which helps children develop
their intellectual curiosity and inquiring minds for science.

33

Environmental and Social Report 2014

6

Cleanup activities in TOUSHIJIMA

0On-Site Report

Ohgata Branch
Endowed with lush green natural surroundings, our Ohgata Branch is situated in
Niigata Prefecture and faces the Sea of Japan. While enjoying the blessings ofthis region, we are devoted to the production of a wide range of products,
including sodium carboxymethyl cellulose (CMC), waterborne urethanes, various
industrial detergents, and resin additives. “Throughout the entire life cycle of our
products, from development to disposal, we will pay special attention to bothhuman safety and health and environmental preservation and also contribute tosustainable development and the realization of an affluent society.” We adopt theabove statement as our basic philosophy for environmental and safety practices.
Currently, we intend to launch biomass fuel generation facilities while putting
focus on waste reduction practices. The Ohgata Branch will continue to actively
participate in environmental protection energy programs and energy-saving
activities, while looking forward to the realization of a more livable planet and aspiritually affluent society.

RC promoting member

Environmental Impacts in FY2013
(kℓ)

8,365

(t-CO2 )18,620

Energy Consumption (Crude oil equivalent)

Address: 230 Saigata, Ohgata-ku, Joetsu City, Niigata Pref.

CO2 Emissions

Area of the Site: 86,963 m2
Main Products:
CMC, waterborne polyurethanes, industrial detergents,
polyvinyl pyrrolidone

Generated Waste Amount

(t)

739

Final Disposal Amount

(t)

54.6

(t)

0.34

(1,000m3 )

546.1

(t)

18.0

PRTR Emissions
Water Discharge Amount
COD Emissions

Changes in CO2 Emissions and Energy Consumption per unit
CO2 Emissions

Changes in waste amount and the final disposal rate

Index of Energy Consumption per unit [FY2005=100]

(t)

120

5,000

100

97.3

100

4,000

80

18.6

80

3,000

60

10

60

2,000

5

40

1,000

20

0

(1,000 t)

25
20
15

0

110.6
100.7
19.5

09

97.9

99.1

20.9

18.1

10

11

18.3

12

FY2013

Waste amountFinal disposal rate (%)

40

1,595
29.40

09

1,136

956

15.43

14.86

10

11

961
9.72
12

739

20

7.39
FY20130Efforts in Environmental and Social Activities
The Ohgata Branch sets the environmental goals in the environment management
system and continue to make efforts to reduce environmental impact, etc. We aim topromote 3R (Reduce, Reuse and Recycle) of industrial wastes and converting some of
the wastes to valuables through segregation. Concerning wastewater treatment, we
aim to save resources by preserving and improving the water quality and using
activated sludge as fuel. We also utilize renewable energy of methane gas emitted
during anaerobic treatment as heat.
We will also improve the relationship with the local community through communication.
In order to conduct corporate activities that are appreciated, we will further deepen ourcommunication with the local community by participating in local events and waste
collection, emergency drills with the fire department and association of disasterprevention, and meetings with local residents.

Meeting with local residents

Environmental and Social Report 201434

On-Site Report

Shiga Branch
Nestled to the west of Mt. Kinugasa, our Shiga Branch lies in thegreen Higashi-Omi area known to be one of the birthplaces of Omi
merchants, and looks out over Japan’s mother lake, Lake Biwa. We
have been paying close attention to the environmental aspects of all
our business activities and implementing environmental protection
practices through continual improvement of our business activities.
Our focus is placed on fostering communication with local
communities so that our plant can peacefully coexist with them.
Up to now, we have made efforts to practice environmental protection
such as reducing carbon dioxide emissions through fuel conversion
and by introducing a cogeneration system, and improving
wastewater treatment to reduce impact of COD.
In FY2013 in particular, we actualized stable operation of wastewater
treatment facilities that were substantially improved last August, andachieved a reduction of the impact of COD. We will continue toemphasize compliance to gain further trust from the local community.

RC promoting member

Environmental Impacts in FY2013
(kℓ)

6,580

(t-CO2)

12,710(t)

3,100Energy Consumption (Crude oil equivalent)

Address: 427 Gokasho Hiyoshi-cho, Higashi-Omi City, Shiga Pref.

CO2 Emissions

Area of the Site: 105,753 m2

Generated Waste AmountFinal Disposal Amount

(t)

3.3

PRTR Emissions

(t)

0.41

(1,000 m3)

1,336.8(t)

3.6Main Products:
Sucrose fatty acid esters, food additives,
metal surface treatment agents, surfactants,
water-soluble polyester polyol,solvent-substitute waterborne/non-waterborne detergents

Water Discharge Amount
COD Emissions

Changes in CO2 Emissions and Energy Consumption per unit
(1,000 t)

CO2 Emissions

(t)

170

5,000

150

4,000

25

162.2

157.3
20

146.5

15
10

12.3

12.4

12.7

11.2

5

130

3,000

110

2,000

90

1,000

70

0
09

10

11

12

Waste amountFinal disposal rate (%)

10

154.4

147.4

12.6

Changes in waste amount and the final disposal rate

Index of Energy Consumption per unit [FY2005=100]

8
2,864

2,980

3,100

2,581

2,164

4
2

0.48

0.42

0.41

0.17

0.11

09

10

11

12

FY201300

FY2013

Efforts in Environmental and Social Activities
Every July, we implement an "Environment/Safety Patrol" along withpeople of the Higashi-Omi City Life Environment Division andexecutives of the local community.
First, we explain an overview of our branch and activities concerning
safety and environment using slides. By explaining potential risks
such as danger, noise, and foul smells that can be imagined withchemical plants, as well as our measures against any such potential
risks, we were able to listen to the daily concerns of the local
community, and reach a deeper mutual understanding throughdiscussion. We also provided a tour centering on the plant andwastewater treatment facilities. We will continue such activities that are
deeply rooted with the community.

35

Environmental and Social Report 2014

6

Environment/Safety Patrolwith people from the local community

On-Site Report

Yokkaichi Chemical Company Limited.
Yokkaichi Chemical Company Limited. was established in 1959 in
the ﬁrst industrial complex of Japan. Ever since, we have
responded to various demands as a backbone ﬁne-chemical
manufacturer producing many own products.
Following the RC declaration in 2002, we are conducting
production activities that take into consideration the environment
for all processes from development to waste disposal. Other thanour corporate philosophy, safety policy, environmental policy andquality policy, we have established a human resource training
policy in 2012 for continuous growth. We are devoted to further
conducting fair and transparent business activities and fulﬁllingsocial responsibilities while emphasizing compliance with stringent
attention to environmental requirements, and enhancing thoroughsafety and coexistence with the global environment.

RC promoting member

Address: Headquarters/Yokkaichi Plant:
2-1, Miyahigashi-cho, Yokkaichi City, Mie Pref.
Rokuromi Plant:
710, Rokuromi, Oaza, Yokkaichi City, Mie Pref.

Environmental Impacts in FY2013
Energy Consumption (Crude oil equivalent)

Area of the Site: approx. 30,000 m2 (Headquarters/Yokkaichi Plant),
approx. 26,000 m2 (Rokuromi Plant)
Operations: Manufacturing, processing and sales of various
chemical products made from Ethylene oxide andother petrochemical industry products

Changes in CO2 Emissions and Energy Consumption per unit
CO2 Emissions(1,000 t)

20(t-CO2)

14,307(t)

3,053

Final Disposal Amount

(t)

244.3

PRTR Emissions

(t)

0.69

(1,000 m3)

588.3

(t)

1.5

Water Discharge Amount
COD Emissions

Changes in waste amount and the final disposal rate

Index of Energy Consumption per unit [FY2005=100]

Waste amount

123.8

123.7

115.0

120

(%)

5,000

10
8.00

100.1

100

4,000

6.90

16.4
15
10

13.4

14.7

3,000

14.3

17.1

60

40
09

2,826

80

5
0

Final disposal rate

(t)

121.1

25

6,339

Generated Waste Amount

CO2 Emissions

URL: http://www.yg-chem.co.jp/

(kℓ)

10

11

12

FY2013

7.07

8
6.40
3,053

2,615

2,624

6

2,000

4

1,000

2

0

0
10

11

12

FY2013

Efforts in Environmental and Social Activities
We have established various policies concerning safety, quality andenvironment and are conducting RC activities on a company-wide
scale by establishing annual plans for security, accident prevention
and occupational safety and health based on ISO systems of quality
and environmental management. Furthermore, we have been
implementing total productive maintenance activities (YGPM activities)
such as business improvements and the 5S of plants for over 20 years
ever since November 1990. In November 2013, a local survey washeld by the Ministry of Economy, Trade and Industry based on theenergy saving law. We received high recognition for our efforts as a
Type 1 Designated Energy Management Factory. We are also
communicating with local people by participating in workshops andevents.

Emergency drill

Environmental and Social Report 201436

Domestic and overseas
affiliates involvedin manufacturing

KYOTO ELEX CO., LTD.
Company Overview
Our company was established in July 1986 for the development, manufacturing and sales ofconductive pastes using precious metals (silver, palladium, and white gold) and copper as
main raw materials by applying the dispersion technologies of Dai-ichi Kogyo Seiyaku andmetal powder technologies of DOWA Electronics. By providing various pastes, we contributeto the improvement of quality and functionality of electronic devices and components usedin solar batteries, smart phones, LED, medical and office automation devices.

RC promoting member

Environmental and Social Activities
While environmental and safety concerns continue to rise, environmental regulations suchas REACH of Europe are becoming stricter each year in the field of electronic materials.
Our company focuses especially on the development of products that contribute to the fieldof environmental protection. We have succeeded to commercialize the world’s first silver
paste for solar batteries that do not contain lead which is considered to environmentallyhazardous. Not only is the paste used in Japan, it is used all over the world. As the demand
for natural energy increases, we will continue our development to improve the performanceof lead-free solar batteries that are more environmentally friendly.

Address:
1 Ogawara-cho, Kisshoin, Minami-ku, Kyoto, Japan
URL:
http://www.kyoto-elex.co.jp/
Operations: Manufacturing and sales of silver paste, silver- palladium paste, silver- white gold paste,copper paste, resin-type copper paste,
resin-type silver paste, aluminum paste andglass paste as well as commissioned
manufacturing of various conductive materials

DAI-ICHI CERAMO Co., Ltd.
Company Overview
Our company started as Dai-ichi Ceramo in 1988 when Ceramics Research Groupseparated from Dai-ichi Kogyo Seiyaku. We mainly develop, manufacture and sell PIM(power injection molding) compounds. Currently, we also sell our products to overseas. We
supply optimized compounds by working closely with customers and conducting injection
molding assessments. We are working hard on a daily basis to contribute to the growth ofcustomers and the industrial world by carrying forward technological reform based on our
accumulated knowledge.

Environmental and Social Activities
Since we are located within the premises of our Shiga Branch, we are also conducting
environmental preservation activities by working with the Branch. We are also working to
reduce wastes through complete segregation and converting some of the wastes tovaluables. We are devoted to further improving the natural and social environments whileemphasizing compliance with stringent environmental requirements.

RC promoting member

Address:

432 Gokasho Hiyoshi-cho, Higashi Ohmi City,
Shiga Pref.
URL:
http://www.dai-ichi-ceramo.co.jp/
Operations: Manufacturing and sales of power injection
molding (PIM) compounds

Elexcel Corporation
Company Overview
We have been refining our technologies in order to answer to the current demands for thedevelopment of lithium polymer batteries and lithium-ion second batteries of high safety.
Other than independent research, we use our cumulated battery technologies and battery
production technologies to manufacture prototype batteries, and accept evaluation and/or
trial production operation concerning materials and components based on lithium-ion
second batteries.

RC promoting member

Environmental and Social Activities
As part of our business, we develop lithium second batteries that use safer and cheaperiron phosphate as electrode material. We are contributing to energy saving and resourcesaving technologies through our development, which can be applied to energy storage as
renewable energy, as well as to the the field of disaster countermeasures. Located at the
Keihanna Plaza of the Kansai Science City, we aim to contribute to the society byinteracting with venture firms and participating in Keihanna EV conferences.
37

Environmental and Social Report 2014

Address:

13th Floor, Laboratory, Keihanna Plaza,
1-7 Hikaridai, Soraku-gun Seikacho, Kyoto
URL:
http://www.elexcel.co.jp/
Operations: Commissioned evaluation of battery materials,
small-lot production of lithium-ion batteries,
research and development

Domestic and overseas
affiliates involvedin manufacturing

P.T. DAI-ICHI KIMIA RAYA
Company Overview
Our company was established in 1996 as a fiber processing agent manufacturer.
Overcoming many obstacles including the monetary crisis and riot in Jakarta, we are also
carrying forward business that fits the diversifying needs of the Indonesia market throughmanufacturing and sales of resin additives, synthetic water retention agents for paper
making and food additives besides fiber processing agents.
RC promoting member

Environmental and Social Activities
Through the neighborhood council of the KIIC industrial district where we are located, weare conducting volunteer activities for the location community. We provide baby foods every
month to babies living nearby and donate goats and cows to five of the nearby villages
during Muslim festivals.

Address:
Headquarters/Plant: Kawasan, Java, Indonesia
Operations: Production & sales of textile agents, plastic
additives, paper processing agents, and foodadditives

CHIN YEE CHEMICAL INDUSTRIES, CO., LTD.
Company Overview
Our company was established in 1976, mainly manufacturing and selling fiber andchemical surfactants for the market of Taiwan. Since then, we have been contributing to
the field of the electronics industry through manufacturing and sales of lubricants forplastics, printed circuit board flame retardants and heat-resistant hardeners. Recently, we
have also been providing high-frequency materials for printed wiring boards andheat-resistant resin that demand high transmission performance.

RC promoting member

Address:

Environmental and Social Activities
We comply with ISO9001 and ISO14000 that are international standards of theenvironment and quality management system, and operate accordingly. As environmental
measures, we have been reducing and reusing wastes by improving manufacturing
processes.

Headquarters in Taipei City, Plant in Taoyuan
County, Taiwan
Operations: Manufacturing and sales of fiber and chemical
surfactants, lubricants for plastics, flame
retardants and chemical products for electronicmaterials; import, manufacturing and sales ofcivil engineering chemical agents; import andsales of Dai-ichi Kogyo Seiyaku products

SHUANG YI LI (TIANJIN) NEW ENERGY CO., LTD.
Company Overview
Our company was established in the 2005 as a manufacturer manufacturing and selling
lithium-ion batteries in the Tianjin Economic-Technological Development Area of Tianjin
C i t y, C h i n a . We h a v e b e e n s e l e c t e d a s a h i g h - t e c h c o m p a n y i n t h e Ti a n j i n
Economic-Technological Development Area as well as recognized for our social
contributions.
RC promoting member

Environmental and Social Activities
We are making efforts to save energy by efficiently using our air compression system
according to the production volume. We also collect used batteries in the company as wellas those used at home to improve awareness concerning reducing environmental pollution.

Address:
Headquarters and Plant in Tianjin City, China
Operations: Manufacturing and sales of lithium-ion
batteries used in electric bicycles, electric
tools, UPS, EV, HEV, etc.

Environmental and Social Report 201438

Cover: Jizo River in Samegai/Maibara City
In the Samegai district located at the base of Mt. Ryozen, a mountain at the northern end of Suzuka mountain range, springwater can be found flowing along the city side. Many tourists gather in the beginning of summer to see the beautiful whiteflowers of water buttercups that only grow in spring water. In Shiga Prefecture where our Shiga Branch is located, Lake Biwa
with a rich ecosystem can also be found. The approximate 460 large and small rivers are a valuable source of water for the
14.5 million people living in the Kinki region.

Published in June 2014
The next issue will be published in June 2015.