Corporate Social Responsibility (CSR)
Contributing to Sustainability through Gas Technologies
With the aim of contributing to sustainability, the Taiyo Nippon Sanso Group works to ensure asolid grasp of its impact on the global environment of all of its business activities. Through gas
technologies that make use of the earth’s bounty, the Group also strives to help realize an
enduring society that enjoys both spiritual and material wealth.

Basic Approach• Environmental and Social Contribution across the Value Chain (P. 2)• Principal Challenges and Initiatives (P. 3）

Social Contribution Initiatives• Initiatives to Ensure Safe and Stable Supplies (P. 7)• Making Use of Intellectual Property (P. 9)• Relations with Customers (P. 10)• Relations with Employees: Cultivating Human Resources/Internal Communications/Work Style
Reforms/Health Management (P. 14)• Relations with Suppliers (P. 23)• Relations with Shareholders and Investors (P. 24)• Relations with Local Communities (P. 26)• Non-Financial Data (P. 30)

Environmental Initiatives• Environmental Management (P. 39)• Protecting the Environment (P. 41)• Environmental Data (P. 45)• Developing Environment-Friendly Products (P. 50)

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Basic Approach

Environmental and Social Contribution across the Value Chain
We work to ensure a solid grasp of our environmental and social impact on stakeholders through all of ourbusiness processes—from development and production through to supply, sale and use, that is, across ourentire value chain—and implement a variety of initiatives designed to avoid or mitigate related risks. Looking
ahead, we will also strive to contribute to a sustainable society by reinforcing collaboration not only withGroup companies but with all stakeholders.

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Basic Approach

Principal Challenges and Initiatives
As a member of the Mitsubishi Chemical Holdings Group, we promote a variety of environmental and social
contribution initiatives based on Management of Sustainability (MOS), a proprietary Mitsubishi Chemical
Holdings Group management method founded on the concept of management that advances sustainability.

The Taiyo Nippon Sanso Group’s ESG Initiatives
The Mitsubishi Chemical Holdings Group uses account processes set forth in globally recognized sustainability
guidelines and stakeholder perspectives to identify key, i.e., material, issues facing the Group, as well as toprioritize such issues, that is, conduct materiality assessments. We have identified those that are of material
importance to the Taiyo Nippon Sanso Group, taking into account the unique characteristics of its businesses, aswell as its impact on the environment and society. We are also promoting a variety of initiatives with the aim ofcontributing to the achievement of the Sustainable Development Goals (SDGs) for 2030, which were adopted at
the United Nations’ Sustainable Development Summit in September 2015.

Role of the Taiyo Nippon Sanso Group

Compliance• In adherence to high ethicalstandards, strive to conduct corporate
activities in a fair, impartial and sincere
manner by promoting and maintaining
compliance with relevant laws,
regulations, international norms andinternal rules.
See 2019

Management
issuesCorporate
governance

Process safety

2019

Principal initiatives
in fiscal year 2019

Material issues• Reinforce corporate governance byimproving management transparency
and fairness, as well as by increasing
management agility through efforts toenhance management oversightfunctions and accelerate decision
making.
• Strengthen independent systems for
ensuring process safety in line withour belief that selling gases iscommensurate with selling safety.

Pertinent SDGs

Integrated Report• Initiatives to ensure
safe and stablesupplies• Relations withcustomers

3

Material issues

Role of the Taiyo Nippon Sanso
Group

Principal initiatives
in fiscal year 2019

• Introduce effective air separation
units that help reduce electric power
Efficient use of
consumption and CO2 emissions.
resources and energy • Lower fuel consumption by tanker
trucks to reduce related CO2
emissions.

Globalenvironment

Climate change

Ensure access toaffordable,
reliable,sustainable andmodern energy
for all• Environmental
management• Fortify framework for mitigatingclimate change through the reduction • Initiatives toprotect the globalof greenhouse gas emissions andenvironment
other efforts.
• Environmental• Promote the reduction ofdata
greenhouse gas emissions and thecreation and expansion ofopportunities to mitigate/adapt toclimate change through the sale ofvacuum-insulated bottles andcookware.

Contribution tomaintenance ofphysical healthContribution to
medical care

Society• Contribute to health and medicalcare through the provision of
products for the medical field.

2019

Ensuresustainableconsumption andproduction
patterns

Take urgent
action to combat
climate change
and its impacts

See 2019
Integrated Report
Ensure healthy
lives andpromote wellbeing for all at allages• Provide industrial gases andResponse to food and related equipment that help resolve
agriculture-related
key issues by helping protect foodissuesresources and improve agricultural
productivity.
• Leverage the advantages of LPG,
including its low carbon footprint andthe disaster-resistant nature of its
distribution system, to create
Increase in consumer business opportunities and expand
satisfaction
business.
• Contribute to the realization of
comfortable and environmentfriendly lifestyles through the sale ofThermos-brand products.

Pertinent SDGs

• Developing
environmentfriendly products
See 2019
Integrated Report

Build resilient
infrastructure,promote inclusive
and sustainableindustrializationand foster
innovation

4

Material issues

Product and service
reliability

Role of the Taiyo Nippon Sanso
Group• Ensure that customers can use
products with peace of mind bystrengthening systems to ensure
quality and safety across the entire
product life cycle.

Principal initiatives
Pertinent SDGs
in fiscal year 2019
• Initiatives toensure safe andstable supplies• Relations withcustomers• Developing
environmentfriendly products

Human development
and training• Offer equal opportunities in hiring,placement, advancement and skill
development as well as seek tofoster and develop human resourcesfrom medium- and long-term
perspectives.

Occupational healthand safety• Promote health management inaccordance with relevant nationaland regional laws and regulations,create safe work environments while• Relations withat the same time maintaining andemployees
advancing the physical and mental
health of employees.

People(Taiyo Nippon
Sanso and its Respect for humanorganizational rights
structure)• Respect human rights in corporate
activities and require that business
partners do not violate human rights
or engage in any form of
discriminatory behavior (throughsuch measures as the promotion ofanti-harassment initiatives and theestablishment of hotlines).

• Recognize the importance of and• Relations withresponsibilities associated withcustomers
protecting information assets in
Promotion of
corporate activities and ensure
measures to improve
appropriate information
information security
management to prevent leaks ofand privacy
confidential information pertaining tocustomers, business partners, Taiyo
Nippon Sanso and other parties.

Diversity andinclusion

2019• Actively seek to secure diverse• Relations withhuman resources with diverse
employees
values without regard toconsiderations such as nationality,
age or creed and promote diversity
and inclusion in corporate activities.
(Examples: Advance career
opportunities for female employees,
expand hiring of foreign nationals,
promote the hiring of individuals withdisabilities)

Ensure healthy
lives andpromote wellbeing for all at allages

Promotesustained,
inclusive andsustainableeconomic
growth, full andproductive
employment anddecent work forall

Build resilient
infrastructure,promoteinclusive andsustainableindustrializationand foster
innovation

Ensuresustainableconsumption
and production
patterns

5

2019

Contribution tocommunities• Step up efforts to contribute tosociety through business activities
and deepen understanding ofcommunities while at the same timeworking continuously to respond tocommunities’ requests andexpectations.

• Relations withlocal communities

Stakeholder
engagement• Earn stakeholders’ trust throughrespect and close dialogue and byreflecting their views in corporate
activities, and work withstakeholders to realize a better
society.

• Relations with
employees• Relations with
suppliers• Relations withshareholders• Relations withlocal communities

6Social Contribution Initiatives

Initiatives to Ensure Safe and Stable Supplies
As “The Gas Professionals,” we work to provide safe and stable supplies of industrial gases to customers in awide range of industries.

Strengthening Framework for Ensuring Safe and Stable Supplies
We deliver gases to customers in a broad range of industries using various modes of transport depending on thecharacteristics of the gases themselves and the needs of the customer. To ensure safe and stable supplies, we are
stepping up efforts at all Taiyo Nippon Sanso Group production and supply facilities, as well as at the facilities ofour official dealers (“partner companies”) and at our customers’ premises, to strengthen our capabilities at the
production, supply and use stages. We are also working to enhance process safety at Taiyo Nippon Sanso Groupsites in Japan and overseas, including in the United States and Europe. In Asia and Oceania, in particular, we aretaking steps to correct unsafe processes identified through the implementation of voluntary safety reviews.

Ensuring Safe and Stable Supplies

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Competition Using an Air Separation Unit Simulator to Improve Operators’ Technical Capabilities
The stable, efficient production of industrial gases depends on the outstanding technical skills of air separation unit
operators. We stage an annual competition using an air separation unit simulator to showcase and further improve
the skill levels of more than 300 operators from approximately 30 companies across Japan. Using the air
separation unit simulator, which was developed for use in education and training and recreates the operating
environment of an actual air separation unit, participants compete in areas requiring specialized skills, includingtime required to reduce gas oxygen volume and time required to collect and increase liquid oxygen volume using
liquid nitrogen injection. Winners of local qualifying rounds take part in the final, which is held at our head office inTokyo. Through initiatives such as this, we continue working to improve core technological capabilities across theentire Taiyo Nippon Sanso Group.

Eight employees made it to the final of the fifth annual competition in March 2019.

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Social Contribution Initiatives

Making Use of Intellectual Property
Taiyo Nippon Sanso strives to make use of intellectual property, recognizing it as essential to supporting thecompetitiveness of its businesses.

Policy on the Use of Intellectual Property
We actively promote the strategic acquisition, maintenance and application of intellectual property with the aim of
ensuring a competitive advantage and contributing to profitability. In addition to respecting the intellectual property
rights of third parties, in line with our philosophy of legal and regulatory compliance, we take appropriate measures
to protect our intellectual property rights against infringement.

System of Compensation for Inventions
We have established a variety of systems to effectively manage intellectual property, centered on our Rules forManaging Intellectual Property. One of these is a system of compensation for inventions whereby employees
devising inventions in the course of performing their jobs are eligible to receive incentives when a patentapplication is filed, when the patent is registered and when the patent contributes to income. In recent years,
approximately 200 such incentives have been paid.

■ Number of Patents Registered in Japan■ Number of Patents Held Worldwide(Taiyo Nippon Sanso Corporation)

Note: Number of patents obtained by
Taiyo Nippon Sanso Corporation as of December 31■ Breakdown of Patent Portfolio in Japan by Business

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Social Contribution Initiatives

Relations with Customers
To ensure safe and stable supplies of industrial gases, we have established systems for process safety
management, as well as for quality management and assurance, and strive to appropriately manage
information.

Systems for Process Safety and Quality and Product Safety Management
In line with our Rules for Process Safety Management and Rules for Quality and Product Safety Management, wehold an annual Technological Risk Management Conference, which is chaired by the president. This conference is
responsible for making decisions on important process safety- and quality-related matters based on the
Presidential Policy Directive on Technology Risk Management. Group companies in Japan and overseas conduct
regional conferences to incorporate the decisions of the Technological Risk Management Conference into theirrespective annual action plans and promote the decisive implementation of related measures.
■ Process Safety and Quality and Product Safety Management Framework* Specified sites are mixed-purpose sites—primarily production and research facilities—that are under direct
divisional supervision and for which integrated process safety management is necessary.

Process Safety Management
In line with our belief that selling gases is commensurate with selling safety, we continue working to strengthen
independent systems for ensuring process safety and have created a Group process safety management system
headed by the president, which underpins a meticulous approach to this key challenge.
In Japan, to ensure our ability to respond promptly and effectively in the event of leaks or other emergencies during
the transport or use by customers of specialty gases, we have specified 55 sites across the country as emergency
response depots, equipping each with materials and equipment crucial to mitigating damage from such an incident,
thereby ensuring a high level of preparedness at all times. Training and drills for emergency response personnel
are conducted at least once annually. At present, we have approximately 330 registered emergency response
personnel.
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To ensure the safe use of our industrial gases, we offer customers safety seminars that provide information on theproperties, dangers and safe handling of various products. In addition, we have created a commendation systemfor parent company and affiliated company production sites to recognize the results of independent safety
initiatives.
Overseas, we endeavor to provide safe, stable supplies to customers by providing periodic training aimed at
improving employees’ technical skills, as well by conducting and improving safety patrols at production sites,
thereby ensuring consistent process safety. We also bring together process safety officers from overseas Group
companies for annual safety conferences. The fiscal year 2019 conference was held in Hanoi, the capital of
Vietnam, and focused on enhancing technical skills and awareness of safety.
As a common global initiative, in June 2018 we established the TNSC Technical Academy at our Kawasaki-Mizue
site in the city of Kawasaki. Designed with the goal of reducing mishaps and industrial accidents, the facility
provides hands-on hazard training using equipment that makes it possible to simulate the properties of pressurizedgases and key causes of industrial accidents such as falling, stumbling or being caught up in machinery. The
academy also displays cutaway models of various gas-related equipment and offers seminars focused on accident
case studies and developing a safety-oriented corporate culture. Looking ahead, we will step up efforts to provide
hands-on training with the aim of eradicating mishaps and industrial accidents from the workplace. We are also
working to create unified technical standards for the entire Nippon Sanso Group with the aim of ensuring stringent
process safety management worldwide.

Management Inspections and Safety and Environmental Audits
We conduct management inspections and safety and environmental audits at our own sites, as well as at sites
operated by affiliated companies to manage technological risks related to, among others, safety, the environmentand quality. Management inspections, which are conducted by the general manager of the pertinent Taiyo Nippon
Sanso division or branch, are designed to assess the status of safety and environmental initiatives from amanagement perspective.
Safety and environmental audits, the main goals of which include reinforcing compliance and preventing accidents,
are conducted by the Technical Audit Office, in principle every five years, at all Group companies in Japan andoverseas. In fiscal year 2019, safety and environmental audits were conducted at 24 sites belonging to 15
companies in Japan and five sites belonging to two companies in two countries overseas (Asia). Internal audits
also were conducted in the United States and Europe and information was shared with the Technical Audit Office.

Quality Management and Assurance
In line with the President’s Policy Directive on Technology Risk Management, we strive to grasp increasingly
sophisticated and diverse customer needs and social imperatives and to respond by providing optimum productquality. To this end, we promote extensive quality management and assurance initiatives aimed at ensuring a highlevel of quality for our products and services.
In light of recent increases in expectations regarding both quality management and quality assurance, we sought toreconfirm the effectiveness of initiatives implemented to date, as well as to ensure effective compliance, by once
again inspecting related systems at affiliated companies in Japan and subsequently expanding this effort to include
affiliated companies overseas.

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Quality Management System
We have established a quality management system based on ISO 9001, the International Organization forStandardization (ISO)’s standard for quality management systems, which we continue to leverage with the aim ofsteadily increasing customer satisfaction. Departments and affiliates involved in production—including those
involved in the production of industrial gases (oxygen, nitrogen and argon) and the air separation units and supply
equipment used in their production and storage, the production and installation of semiconductor fabricationequipment, the production of medical gases and medical gas supply systems, and all areas of our helium andhydrogen businesses—have acquired ISO 9001 certification. Departments handling sales and logistics for liquid
oxygen, liquid nitrogen, liquid argon and specialty gases have also earned certification, reflecting our goal of
creating a system that ensures not only the quality of our products but also the provision of stable supplies andeffective support.
As of April 1, 2019, a total of three divisions and 55 affiliates in Japan and overseas are currently certified under
ISO 9001, reaching our target for achieving ISO 9001:2015 compliance. Going forward, we will remain committed
to promoting the effective use of our quality management system with the goal of achieving continuous
improvements in customer satisfaction.

Site Analytical Management Certification System
Reliable analytical management is seen as critical to the quality of industrial gases. To ensure our ability to provide
optimum product quality, we have established a system for certifying production facility analytical management
performance and continue to take steps aimed at bolstering the analytical management capabilities of gas
production sites.

Product Safety
As outlined in the President’s Policy Directive on Technology Risk Management, we work to offer safer and morereliable products by minimizing safety risks over the entire life cycle of our products, thereby ensuring customers
can use our products with peace of mind.
For many products, we explore ways to reduce risks from the design stage and consider safety not only during use
but at all stages of a product’s life cycle, including production, transport, maintenance and scrapping. Productsafety assessments are subsequently conducted by individuals who have earned internal qualifications, after whicha declaration of conformity with product safety standards is made by representatives of the pertinent division oraffiliated company, thereby ensuring the safety of the products we provide.

Information Management
With corporate information leaks an increasingly critical issue, companies face an ever-greater responsibility to
manage and protect confidential customer information they accumulate through their business activities.
To create a framework for systematic management, our Information Management Committee, established in fiscal
year 2018, set forth Rules for Information Security Management to guide our handling of our own and ourcustomers’ information.
To maintain this system, we continue to promote initiatives across the Taiyo Nippon Sanso Group to strengthen
management practices, including holding periodic seminars to enhance management-level employees’ awarenessof changes to pertinent laws and regulations and providing guidance to affiliated companies.
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Approach to Information Management
1.

In line with the Rules for Information Security Management, the individual responsible for information security
oversees information security Groupwide and appoints information security officers and promotional staff foreach division and information security managers for each department.

2.

Department information security managers are charged with identifying confidential information and classifying
such information as either “highly confidential” or “proprietary.”

3.

Appropriate measures are taken to limit access to confidential information.

4.

Confidential information disclosed by customers will be managed at a level equivalent to or higher than ourown confidential information.

■ Information Security Management Framework

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Social Contribution Initiatives

Relations with Employees
Cultivating Human Resources
As stipulated in the “Respect for human rights” and “Prohibition of discrimination” sections of the Taiyo Nippon
Sanso Group Code of Conduct, we are committed to promoting diversity and inclusion and prohibit
discriminatory treatment based on factors such as nationality, race, gender or other factors. We also work
continuously to enhance our highly practical training programs with the aim of fostering the next generationof ”The Gas Professionals.”

Fair and Impartial Hiring Practices
The Taiyo Nippon Sanso Group seeks to secure diverse human resources and have eliminated such potentiallydiscriminatory factors as gender and age from our hiring practices. Our personnel system is based on three key
concepts: Put the right person in the right position, ensure impartial evaluations and training, and provide resultsbased compensation.

Evaluating Employee Performance and Determining Compensation
We have developed job/role-specific criteria for evaluating the performance of and determining compensation for
employees. Prioritizing a fixed cycle of actions (fulfill expectations/exercise capabilities → evaluate
performance/determine compensation → provide feedback → foster human resources) and repeating this cycle
both ensure fairness and impartiality and enhance job satisfaction.
In a bit to invigorate our organization and create a bold, forward-looking corporate culture, in April 2015 we
modified personnel systems for management-level employees. We began by seeking to ensure our ability to assign
the right people to the right positions in a timely manner by eliminating our vocational qualification system, anessential component of which is seniority, in favor of a system that focuses on performance. Additionally, toenhance profit sharing, we raised the percentage of annual remuneration accounted for by bonuses, thereby
creating a system of compensation that is more closely tied to the achievement of medium-term management plantargets.

Training “The Gas Professionals”
We believe that companies can provide a place for employees to gain experience, training that increases
knowledge and develops skills, and a framework that allows personnel to grow through varied work experiences.
Guided by this belief, in fiscal year 2008 we began to build a new educational system comprising programs
classified by type, i.e., hierarchical, selective, optional, theme-specific and divisional training.
Regardless of the positions to which they have been assigned, new graduates hired are given basic training for
new employees, as well as training on the front lines of manufacturing and sales, thereby ensuring they acquire theexpertise and experience demanded of all Taiyo Nippon Sanso employees. Training classified as hierarchical,
which is designed to impart crucial knowledge and professional skills, can be taken in the first five years of
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employment. In fiscal year 2018, we also began offering training for line managers. Given the rapid globalization of
the industrial gases business, we recognize the need to cultivate employees who are able to function in a global
business environment. In fiscal year 2017, we launched the Overseas Trainee Program, whereby employees aredispatched to overseas Group companies. (For details, see our 2019 Integrated Report.) We have also created an
incentive program for employees seeking to obtain nationally recognized qualifications and subsidies for
employees taking correspondence courses.

■ Employee Training Framework (Headed by the HR Division)

Steps have been taken recently tostrengthen the Overseas Trainee Program.

Life planning seminars provide information thathelps employees prepare for life after retirement.

Strategy and marketing training is provided
for employees in their fifth year.

Training for new employees includes
a Self-Defense Forces boot camp.

Internal Communications
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We are striving to invigorate internal communications with the aim of creating smoothly functioning, open
workplaces.

Holding Young Researchers’ Conferences
We hold young researchers’ conferences four times annually at our
Tsukuba and Yamanashi laboratories (The facilities host one
conference each independently and collaborate to host theremaining two.). The conferences provide an opportunity for young
researchers to present their research, thereby improving theircommunication skills, as well as to pose questions to otherresearchers, which increases their comprehension. To encourage
active discussion among young employees, there is a rule in placethat management members do not ask questions.

Conferences provide an opportunity
for communication for young
researchers from across the Group.

The Tsukuba Laboratory began conducting young researchers’ conferences since 1992, with more than 500
individuals having presented their research to date. Researchers participate actively in Q&A sessions and lead theexchange of opinions on individual presentations, underlining the importance of these events as a source of new
ideas and responses to issues.

Enhancing Internal Communications
In Japan, we publish Best Scrum, a bimonthly in-house newsletter.
In addition to corporate information designed to promote awarenessof management policies, share operating results and enhance
understanding of Group operations, Best Scrum featuresinformation on the activities of individual divisions and Group
companies and on important new technologies. With the goal ofgiving Best Scrum a personal touch and encouraging
communications across the Group, employees across the country

Best Scrum

Konnichiwa

are encouraged to submit articles and comments for inclusion to
local communications managers.
We also produce Konnichiwa, a seasonal English-language newsletter for Taiyo Nippon Sanso Group companies
overseas. Each issue of Konnichiwa includes summaries of key articles from Best Scrum and a section introducing
employees in various countries who have made notable contributions to the Group’s development and growth,each of which is asked to convey a short message to his or her colleagues around the world.

Working with the Taiyo Nippon Sanso Employees’ Labor Union
The Taiyo Nippon Sanso Employees’ Union was established in May 2005, and a union shop agreement was
concluded in October of the same year. Our policy is to disclose information to the Taiyo Nippon Sanso Employees’
Union as much as possible and to consult and negotiate in good faith. Labor-management relations are healthy,
and both parties are committed to working and growing together.
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■ Labor-Management Negotiations
Matters discussed

Schedule

Collective
bargaining

This is a forum for consultation regarding wages, bonuses andRegularly held in earlyvarious working conditions based on labor union demands and forMarch (requested
discussions between labor and management on a wide range ofsubmission date) and April
topics, including important Company initiatives and business(specified response date)conditions.

Central Labor
CouncilThis is a forum for discussing various matters affecting union
members in general. In response to proposals from the Company,
the union’s central executive committee and the executive
general manager of the HR Division hold discussions, andUnscheduled (20-30
financial reports and information on important Company initiatives
times/year)
are presented. Principal matters discussed include amendments
to working conditions for union members, permanent
reassignments, early retirements and proposed temporarytransfers.

Branch Labor
CouncilThis is a forum for discussing matters related to union members
at regional sites. Discussions are held between branch executive
committees and local labor managers, i.e., branch generalmanagers, department general managers and department
managers. Matters discussed include provisions regarding
working hours in Japan’s Labor Standards Act and the relocationof sites.

Unscheduled (Frequency
varies from one region toanother.)Work Style Reforms
With the goal of creating positive work environments conducive to diversity and a healthy work-life balance,
we are promoting changes to existing workplaces that make it possible for employees to achieve balance totheir careers and responsibilities at home and that encourage job satisfaction and provide motivation. Our
efforts to advance work style reforms have also included promoting the creation systems that facilitate flexible
work arrangements.

Creating Positive Work Environments
With the aim of creating positive work environments for all of our employees, we have developed a variety of leavesystems to accommodate individual needs. These include a childcare leave system that includes reduced working
hours, flextime and other measures designed to assist employees with childcare responsibilities. Initially targeted at
employees with children under three years of age, eligibility was later expanded to include employees with children
up to the third year of elementary school. In fiscal year 2018, the possible reduction in working hours, previously
set at 2.0 hours, was lowered to 1.0 hour, making the system easier to use.
We have also made it possible for employees with children of elementary school age or younger to take special
childcare leave to provide nursing care in the event of illness, assist with childcare or attend school functions, ortake part in volunteer activities by using expired annual vacation days. Recognizing that the rapid aging of Japan’ssociety will increasingly require employees to assist with long-term nursing care, we established a system for
employees to assist with nursing care for elderly family members that enables employees in this position to takelong-term leave of up to 365 days. In addition, we created a “Refresh Holiday” system that gives employees special
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extra paid vacation days to celebrate their 10th, 20th and 30th years of employment.
Other moves designed to realize more flexible work styles include the adoption in fiscal year 2018 of a leavesystem that allows employees to accompany spouses on overseas assignments and a rehiring scheme for
employees that have resigned because of pregnancy or responsibilities associated with childcare or nursing care.
In fiscal year 2019, we introduced a flextime system that allows employees to take vacation time in hourly units.
■ Systems to Assist Employees with Childcare Responsibilities
Reduced working hours

Flextime

Eligibility

Employees with children up to the third year of
Employees with children up to three years of age
elementary school

Duration

Up to the end of the child’s third year ofelementary school

Up until the month the child turns three years ofage (i.e., until the day before the child’s birthday)

Terms

Start and/or end of working day can be
adjusted in either direction in 30-minuteintervals (maximum permitted reduction perday: two hours)

Flextime (Core time: 10:30-15:00)■ Number of Employees Making Use of Childcare Leave Systems
Fiscal year
2017

Fiscal year 2018

Fiscal year 2019

Special maternity leave
before/after birth

6

2

4

Childcare leave

7

7 (Female employees: 7）

7 (Female employees: 5）

Reduced working hours

9

11（Female employees: 11)

11 (Female employees: 11)

Flextime

00

1 (Female employees: 1)

42

39 (Female employees: 25;
male employees: 14)

75 (Female employees: 46;
male employees: 29)

Specialchildcare
leave

Cumulative
number ofindividuals
Cumulative
number of days

37.0

52.0 (Female employees: 34.0; 52.5 (Female employees: 33.0;
male employees: 18.0)
male employees: 19.5)

Promoting the Employment of Individuals with Disabilities
We provide information on opportunities for individuals with disabilities with the goal of further opening the door toemployment at our offices across Japan. Such efforts have led to the hiring of individuals to fill positions in a wide
range of areas, including general affairs, administration, accounting, sales, distribution, technological management,
production control, R&D and engineering. As of March 31, 2019, the percentage of our labor force accounted for byindividuals with disabilities exceeded the legal minimum of 2.2%. We will continue working to maintain our
employment of individuals with disabilities at above the legally mandated percentage.

Preventing Harassment
The Taiyo Nippon Sanso Group Code of Conduct forbids any act that may be construed as harassment. Our Rulesof Employment clearly stipulate the prohibition of harassment and the establishment of hotlines for employees to
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seek consultation or report complaints. In addition to providing training to raise awareness of the importance ofeliminating harassment, in January 2017 we formulated the President’s Policy on the Prevention and Eradication ofHarassment in the Workplace, calling on employees to help create positive workplaces by, among others,
disseminating information on the policy.

Establishing the Taiyo Nippon Sanso Helpline
We have established the Taiyo Nippon Sanso Helpline to facilitate the swift discovery/correction and prevent therecurrence of compliance violations while also protecting the privacy of whistleblowers. Use of the helpline isgoverned by the Guidelines for Use of the Taiyo Nippon Sanso Helpline, which also outline robust protections thatprohibit anything unfavorable to whistleblowers.

Providing a Working Environment that Encourages Innovation and Diversity
At our Shiba Office, home of the Innovation Division, an independent team within the Global Operations Division,
we strive to facilitate global business expansion and value creation by providing a working environment conduciveto the development of original ideas and new value and to job satisfaction for a wide range of human resources. As
part of this effort, we have established an open area on the eighth floor of the office based on the concept of “awork/lounge/office where employees can choose how and where they work.” The space is suitable for a wide range
of uses, including meetings, as a workspace and for presentations using large displays.
The Innovation Division brings together diverse human resources, including a number of foreign nationals. In
addition to facilitating in-house communication, the open area has also proven useful in encouraging innovationand diversity.

Eighth floor open area equipped with tables, counters, meeting spaces and large displays

Health Management
We strive to create work environments that support and motivate employees. To this end, we are promoting
measures in three areas: Healthy people, healthy workplaces, and healthy families and communities. We
have positioned safety and health in the workplace as a key priority in the Taiyo Nippon Sanso Group Code of
Conduct and have formulated the Rules for Occupational Health and Safety, in line with which we arepromoting a variety of initiatives.

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Taiyo Nippon Sanso’s Health Management Declaration— Creating a work environment that supports and motivates employees —On April 1, 2017, we announced the Taiyo Nippon Sanso Health Management Declaration, the subtitle of which is“Creating a work environment that supports and motivates employees.” This declaration reiterates our belief that
achieving sustainable growth depends on our ability to maximize our human resources, one of our most important
assets, by actively promoting initiatives that support employee wellness and work style reforms.

Taiyo Nippon Sanso’s Health Management Declaration
Creating a work environment that supports and motivates employees

We look for three key qualities in our employees, namely, health, integrity and resourcefulness. With the aim ofgiving form to the first of these, health, and recognizing that employee health is the driving force behind everything
we do, we hereby declare our commitment to promoting sound corporate management and helping realize aspiritually affluent society through the creation of a health-first corporate culture.
Recognizing the health and wellness of all of our employees as a crucial corporate asset, we will also strive torealize secure and pleasant workplaces. We also understand that the health and wellness of each individual
employee and of his or her family is a critical motivating factor for employees in both their professional and private
lives. Accordingly, we encourage employees to be proactive in maintaining their own health and ask for their active
participation in the creation of a health-first corporate culture.
April 1, 2017
Yujiro Ichihara
Representative Director, President CEO
Taiyo Nippon Sanso Corporation

In 2019, we earned certification in the large enterprise category (dubbed the “White 500”) of the Health &Productivity Outstanding Entities Program, marking the second consecutive year we have been so honored. The
program was established in 2017 by Japan’s Ministry of Economy, Trade and Industry (METI) and Nippon Kenko
Kaigi (“Japan Health Council”) to recognize companies with particularly excellent health management practices thatare consistent with community health issues and health promotion activities undertaken by Nippon Kenko Kaigi. In
addition, in October 2018 the initiatives of Group company Taiyo Nippon System Solutions Corporation, whichannounced a Healthy Business Declaration* in December 2017, were recognized with a silver commendation,
recognizing success in the first step of the Healthy Businesses Program.
Note: A Healthy Business Declaration is a declaration of a company’s commitment to promoting health at all
business sites with the aim of earning designation under the Healthy Business Program, which is operated by the
Tokyo Branch of the National Federation of Health Insurance Societies. Companies achieving a certain level ofsuccess are certified as Healthy Businesses. Step 1 of the program involves creating a workplace and work
environment that is conducive to health management.

2019

20

Promoting Employee HealthIn addition to arranging consultations with doctors for employees
who work long hours, employees on unaccompanied postings are
required to undergo annual medical and brain health checks inaddition to the annual health checks mandatory for employees. To
support employee wellness, in fiscal year 2018 we began
subsidizing employees using healthcare facilities or taking part in
health promotion programs and distributing wearable healthmonitoring devices to increase the visibility of individual health-

Stretching(Health of Working Women seminar)

related data. We have also collaborated with industrial physiciansand health insurance societies to assign such physicians to all sites
across Japan, enabling us to respond to health issues related to
extreme overwork, expedite support for employees who have taken
leave for the treatment of mental health issues returning to work,revise items covered in annual health checks to facilitate the early
detection of cancer, and introduce subsidies for employees
obtaining influenza vaccinations and treatment to quit smoking.
In a new initiative, in fiscal year 2019 we held the first Improving the Health of Working Women seminar at our
corporate headquarters in Tokyo. Three female speakers—a nutritionist, public nurse and trainer—were invitedfrom Pasona Inc., a personnel placement firm noted for promoting career advancement for women, to speak at theseminar, which focused on three central themes (female hormone-related issues, exercise and diet). Goingforward, we will continue working to create healthy working environments that enable female employees to pursue
successful careers.
We also conduct health checks for former employees who in the past worked with asbestos and have expressed adesire to receive such checks and have set up a system to compensate individuals whose health has been
negatively affected as a result of their work with asbestos.

Caring for Mental Health
We have introduced an employee assistance program (EAP) provided by a third-party specialist and set up an
external counseling service. At the same time, we have continued to take steps to support mental health care,including establishing a support program for employees who have taken leave for the treatment of mental healthissues returning to work.

2019

21

■ Participants in Mental Health Care Training
PeriodManagement-level participants

Executive-level participants

Fiscal year 2015

25

38

Fiscal year 2016

37

38

Fiscal year 2017

32

24

Fiscal year 2018

32

28

Fiscal year 201935

29

Employee Welfare Program
We have created a welfare program that provides extensive support for employees. In addition to Company
housing or dormitory accommodations for individuals on temporary transfers, the program provides rent subsidies
for married employees, subsidies for employees who are homeowners and a mortgage system for employees
purchasing homes that includes a Company guarantee, a preferential interest rate and an interest subsidy. The
program also makes it possible for current employees and family members, as well as retired employees, to use
three Company-owned recreational facilities.

Occupational Health and Safety
In line with our Rules for Occupational Health and Safety, we promote a variety of efforts in Japan to ensure healthand safety in the workplace. Based on these rules, we have created an occupational health and safety team and an
Occupational Health and Safety Committee at each site. In addition, we continue to promote efforts to eliminate
workplace accidents. These include providing safety training and holding morning assemblies, offering Kiken Yochi
Training (KYT) (“hazard prediction training”) and introducing 5S (a workplace organization methodology based on
five words (Seiri (Sort), Seiton (Set in Order), Seiso (Shine), Seiketsu (Standardize) and Shitsuke (Sustain). We
also distribute Health and Safety News, an electronic newsletter that includes materials published by the Japan
Industrial Safety & Health Association (JISHA), among others, to raise employee awareness.
■ Site Occupational Health and Safety Management Framework

2019

22

Social Contribution Initiatives

Relations with Suppliers
Keenly aware of the importance of green procurement and CSR procurement, we also expect our business
partners to consider environmental and social issues in conducting their operations.

Maintaining Fairness and Impartiality in Selecting Suppliers
Across the Taiyo Nippon Sanso Group, procedures for choosing suppliers of raw materials and engineering
services are based on the principles of fairness and impartiality, thus ensuring equal opportunities for all parties
irrespective of country of origin, size or track record.
As active advocates of green procurement and CSR procurement, we regard concern for the environment andcompliance with relevant laws and regulations as essential to our operations and require that our suppliers do thesame. Accordingly, these two considerations are the principal standards we use to evaluate applicants.

Taiyo Nippon Sanso Major ClubIn April 2005, we launched an official dealer system, dubbed the Taiyo Nippon Sanso Major Club, with the aim of
responding accurately and effectively to the needs of end users across Japan. In addition to providing official
dealers (“partner companies”) with competitive products, we leverage our position to provide a wide range ofservices, including domestic and overseas sales support, technical assistance and management consultation.
The Taiyo Nippon Sanso Major Club—comprising the core Partners’ Club and two functional subgroups, the LP
Gas Club and the Medical Club—boasts a robust national network that is instrumental in ensuring our products aredelivered safely and reliably to end users. Each constituent club offers seminars and training sessions on
operational safety and other themes. In fiscal year 2019, the Medical Club conducted training sessions at six
locations, in which a total of 270 individuals participated. A training session held by the LP Gas Club members inTokyo welcomed 87 participants from 63 companies. Exchanges, training sessions and production facility tours
were also conducted for Partners’ Club companies in multiple other areas.
Going forward, we will continue working to reinforce customer satisfaction and enhance our reputation in society as
an organization worthy of trust through ongoing initiatives in collaboration with Taiyo Nippon Sanso Major Club
partners.
■ Taiyo Nippon Sanso Major Club

2019

23

Social Contribution Initiatives

Relations with Shareholders and Investors
We strive to ensure the timely disclosure of corporate and financial information and to ensure fair returns toshareholders.

Communication with Shareholders and Investors
In addition to our annual general meeting of shareholders, we conduct results presentations, facility tours and otherevents for institutional investors and sell-side analysts. Results presentations make use of visual aids to deepen
understanding of our operations, operating results and our forecasts for the future. Facility tours are designed toenhance understanding of what we do and include regularly scheduled visits to both production facilities andresearch laboratories. In March 2019, we conducted a tour of the Chiba Sanso Center Co., Ltd. with the aim of
introducing shareholders and investors to our industrial gases business. In September 2018, we conducted a tourof subsidiary Japan Fine Products Co., Ltd.’s Mie Plant in cooperation with Mitsubishi Chemical Holdings. We alsoorganized a joint IR seminar with Mitsubishi Chemical Holdings and Tanabe Co., Ltd., another member of the
Mitsubishi Chemical Holdings Group.
We also released a number of regular publications for shareholders and investors, including full-term and interim
business reports and a single integrated report that provides both financial information, such as that related tobusiness strategies and operations, and non-financial information, including that related to environmental
protection, social contribution and corporate governance, with the aim of giving readers an accurate overall pictureof the Taiyo Nippon Sanso Group.
Enhancing our corporate website is another key focus of our efforts. As well as various key documents, the website
provides a compact outline of our various businesses in a compact, easy-to-understand form and other content thatgive even first timers a clear view of the Group and its activities.
Corporate website’s IR section: https://www.tn-sanso.co.jp/en/ir/index.html

Tour of Japan Fine Products’ Mie Plant for
institutional investors and securities analysts

2019

Results presentation

24

Ensuring Fair Returns to Shareholders
Having positioned the provision of fair returns to shareholders as a key management responsibility, we strive tomaintain stable dividends, while at the same time ensuring our dividend payout ratio fairly reflects our businessperformance. Guided by the strategic policy set forth in our medium-term management plan, we will continue
working to enhance our performance.
■ Annual Cash Dividends per Share■ Distribution of Shareholders (As of March 31, 2019)■ Distribution of Shares Held (As of March 31, 2019)

2019

25

Social Contribution Initiatives

Relations with Local Communities
As a provider of industrial gases, we recognize that we have a mission to communicate the technologies andpotential of industrial gases, as well as to work actively with local communities.

Shanghai Taiyo Nippon Sanso Gas Wins Commendations for Work Safety
Shanghai Taiyo Nippon Sanso Gas Co., Ltd., headquartered in
Shanghai’s Xinzhuang Industrial Zone, recently received twocommendations from the zone’s Shanghai Municipal Administrationof Work Safety. The first commendation, in 2018, recognized top
performers in terms of occupational safety, and was given to 21 of
the 588 companies in the zone. The second, which was awarded tothe company’s tanker truck drivers, was one of three recognizing
contributions to safe transport in 2018. The company has received

Commendation for occupational safety andcontributions to safe transportsimilar commendations in the past, but, with the tightening of safety
regulations in China, these awards are evidence of the country’s
positive assessment of the Taiyo Nippon Sanso Group’s
occupational safety efforts. Looking ahead, we will continue topromote a variety of initiatives in line with our belief that sellinggases is commensurate with selling safety.

Kyushu Cryogenics Receives 2018 Minister’s Award for High Pressure Gas Safety
In 2018, Kyushu Cryogenics Co., Ltd., which has maintained an
accident- and disaster-free record since its establishment, washonored with a Ministry of Economy, Trade and Industry (METI)
Minister’s Award for High-Pressure Gas Safety,* earning recognition
for excellent production facilities (i.e, facilities where outstanding
measures have been implemented to ensure the safety ofstructures, equipment and production processes). As of November
30, 2018, the company, which began operating on July 1, 1984, hadAwards ceremony at Tokyo’s ANA Crowne
Plaza Hotel (October 26, 2018)

recorded approximately 12,570 days in operation with nooccupational accidents or disasters. Seeing this award as anopportunity to further enhance its spotless record, the company willcontinue to place a high priority on safety in the workplace, in linewith its president’s policy of ensuring the safe production and saleof high-pressure gases.
* The METI Minister’s Award for High-Pressure Gas Safety commends high-pressure gas production facilities thathave attained excellence through tireless efforts to prevent accidents and disasters as well as individuals who haverecorded exceptional achievements over many years in the area of high-pressure gas process safety.
2019

26

Matheson Tri-Gas Wins CGA Safety Awards
On April 24, 2018, the U.S. Compressed Gas Association (CGA) announced winners of its safety awards for 2018at its annual meeting, which was held in Florida. In addition to earning its second consecutive Fleet Safety
Excellence Award in the Bulk Vehicle Fleets category, Matheson Tri-Gas, Inc. won the Environmental Recognition
Program Award for its efforts in 2017 to reduce argon gas losses. Matheson Tri-Gas subsidiary WesternInternational Gas and Cylinders, Inc. won its second consecutive Fleet Safety Excellence Award in the Cylinder
Vehicle Fleets category.
The CGA was created to establish safety standards and promote safe practices in the industrial gases and medical
gases industries. The association presents awards annually to companies and individuals exhibiting industry
leadership in the areas of safety and environmental performance. Matheson Tri-Gas places a high priority on
companywide safety and environmental considerations. As evidenced by its CGA awards, the company continues
to earn recognition across the industry for its efforts.

Fleet Safety Excellence Award(Bulk Vehicle Fleets category)winner: Matheson Tri-Gas

Fleet Safety Excellence Award(Cylinder Vehicle Fleets category) winner:
Western International Gas and Cylinders

Welcoming Visits by High School Students
In response to a request from the nonprofit organization School
Support Center, we actively encourage visits to our facilities by
junior and senior high school students. In June 2018, we invited
seven year-two students from Okayama Prefectural Saidaiji SeniorHigh School to visit our corporate headquarters in Tokyo to learn
about our operations and technologies. In addition to asking
business-related questions, the students queried employees abouta variety of other topics, including job satisfaction and career
choice. Going forward, we will continue to assist in career education

Using items from everyday life to explain
what Taiyo Nippon Sanso doesby providing opportunities for students to learn about the industrial
gases field.

2019

27

Thermos Collaborates with Volunteer Environment al Initiative and Participates in TeamECO Work! 224 Event
In September 2018, 48 Thermos employees and family members
took part in Team ECO Work! 224 Thermos Zero Waste Action at
Teradomari Central Beach Resort, a post-season beach cleanup
initiative sponsored by the UX Niigata Television Network 21, Inc.,on the prefecture’s Teradomari coast. Thermos collaborates actively
with the UX Niigata Television Network 21’s Team ECO: Nature
Support Declaration project and has now participated in thisparticular volunteer initiative three times.

Team ECO Work! 224 participants

The Team ECO: Nature Support Declaration project is a volunteer initiative led by local residents and companies in
Niigata Prefecture. In addition to beautifying the environment, the initiative aims to deepen people’s love of natureand thus is a good fit with Thermos’ own environmental activities. The event also provides a valuable opportunity
for Thermos to communicate with local residents.

Lab Lessons Using Liquid Nitrogen
Our Taiyo Nippon Sanso Kids’ Science Class lab lessons seek to encourage children to take an interest in scienceby giving them the chance to participate in hands-on experiments using liquid nitrogen. These lab lessons enable
children to actually experience the use of liquid nitrogen by, for example, freezing roses, and continue to earn highmarks not only from participating children but also from their teachers and parents, as well as from local residents.
In 2018, we conducted a lab lesson featuring an explanation and demonstration of industrial gases followed by avariety of experiments, including testing roller coaster superconductivity and freezing inflated balloons for 16 fifthyear students as part of nearby Shinagawa Municipal Ushiroji Elementary School’s open house, in which weparticipate every year. Looking ahead, we will continue looking to expand opportunities to offer lab lessons to
broaden understanding of the Taiyo Nippon Sanso Group.

Experiment in freezing roses

2019

Experiment using the mechanism that
results in clouds to generate white smoke

28

Sergio Soccer Clinic 2018
Established as an event to commemorate the 80th anniversary of the founding of Taiyo Nippon Sanso’s
predecessor Nippon Sanso Corporation, the Sergio Soccer Clinic was first held in 1990 with the cooperation of the
Chiba-shi Football Association. The objectives of the first clinic—which took place at our Chiba multipurpose
athletics field, newly refurbished for the anniversary—were to create an event that would be enjoyed by the local
community and to contribute through sports to better health for children. Since 2005, we have also sponsored aclinic in Osaka in collaboration with the Osaka Football Association.
These clinics, which are attended by elementary-school-age teams affiliated with local football associations, include
coaching by Brazilian-born Sergio Echigo, a well-known soccer commentator and former professional player, as
well as a number of other players from the amateur and professional football worlds in Japan. Features include
friendly matches against a team made up of clinic instructors, as well as a round-robin tournament for participatingteams. In the two-plus decades since it started, the Sergio Soccer Clinic has welcomed more than 19,000 children.
It is our hope that the clinic will continue to contribute to the development of talented young players.

A total of 455 children from 48 teams affiliated with the Chiba-shi Football Association took part in the Sergio
Soccer Clinic in Chiba, which featured five coaches, including Sergio Echigo.

Sergio Echigo and six other coaches welcomed 316 children from 36 teams affiliated with the Osaka Football
Association to the 2018 Sergio Soccer Clinic in Osaka.

2019

29

Social Contribution Initiatives

Non-Financial Data
Key non-financial data for the Taiyo Nippon Sanso Group (environmental, social, governance and intellectual
property/R&D-related data) is provided in the Non-Financial Data.

Environmental Data
Greenhouse Gas Emissions□ Scope 1: Direct greenhouse gas emissions from sources that are owned or managed by a company□ Scope 2: Indirect greenhouse gas emissions resulting from the use of electric power, steam and heat
□ Scope 3: Indirect greenhouse gas emissions other than those included in Scope 2
Reporting boundary: Taiyo Nippon Sanso, directly owned consolidated subsidiaries in Japan and principal
consolidated subsidiaries overseas Greenhouse gas emissions in Japan are calculated using emissions factors
provided in Japan’s Act on Promotion of Global Warming Countermeasures. For greenhouse gas emissions
overseas, Scope 1 emissions are calculated using emissions factors set forth in Japan’s Act on Promotion of Global
Warming Countermeasures, while Scope 2 emissions are calculated using country-specific emissions published by
the International Energy Agency (IEA) in 2016. While not indicated below, Scope 3 emissions in categories 1, 2, 3,
4, 6, 7, 11 and 15 are also included.
（Years ended March 31）
Thousands of tonnes of CO2

2017

2018

2019

Scope 19

19

14

Scope 2

3,363

3,838

4,056

Scope 3

—

3,671

3,634

Contributions to Environmental Protection through Products*
Reporting boundary: Taiyo Nippon Sanso, directly owned consolidated subsidiaries in Japan
Contributions to the reduction of greenhouse gas emissions are calculated in accordance with the Japanese
Ministry of Economy, Trade and Industry’s Guidelines for Quantifying GHG Emissions Reduction Contribution(formulated in March 2018).
* I.e., by increasing sales of environment-friendly products such as hydrogen refueling stations, Scope-JET®, MG
Shield®, SF6 Recovery Service and Thermos products（Years ended March 31）
Thousands of tonnes

2017

2018

2019

Contribution to reduction in CO2 emissions

―

1,734

1,779

2019

30

Energy Consumption
Reporting boundary: Taiyo Nippon Sanso, directly owned consolidated subsidiaries in Japan and principal
consolidated subsidiaries overseas (except for fiscal year 2017, when the reporting boundary for fuel and heat was
Taiyo Nippon Sanso and directly owned consolidated subsidiaries in Japan)
The unit calorific values for fuel used are calculated based of values provided in Japan’s Act on the Rational Use ofEnergy.
（Years ended March 31）
Thousands of GJ

2017

2018

2019

Energy consumption

62,516

67,61372,014

Electric power

62,117

66,87570,890

Fuel

189

398

418

Heat

210

340

706

Environmental Impact
Reporting boundary: Taiyo Nippon Sanso and directly owned consolidated subsidiaries in Japan（Years ended March 31）
Tonnes

2017

2018

2019

NOx emissions

—

—

3

SOx emissions

—

—

1

Particulate emissions

—

—

1

VOC emissions

13

14

10

COD emissions

—

—

10

Nitrogen emissions in wastewater

—

—

11

Phosphorus emissions

—

—

1

Emissions of substances designated under the Pollutant Release
and Transfer Register (PRTR)

35

29

29

Fresh Water Withdrawn (Excludes seawater)
Reporting boundary: Gas production facilities of Taiyo Nippon Sanso and subsidiaries in Japan and principal
consolidated subsidiaries overseas（Years ended March 31）
Thousands of m3
Fresh water withdrawn

2019

2017

2018

2019

10,145

10,921

13,62331

WasteReporting boundary: Taiyo Nippon Sanso and directly owned consolidated subsidiaries in Japan（Years ended March 31）
Tonnes

2017

2018

2019

Waste discharged

2,917

2,910

3,023

Waste disposed of (landfilled)

385

379

362

Toxic waste discharged

149

240

156

Environmental Accounting
Reporting boundary: Taiyo Nippon Sanso and four directly owned consolidated subsidiaries in Japan (Japan Fine
Products Co., Ltd.; Taiyo Nippon Sanso Engineering Corporation; Nissan Unyu K.K. and Thermos K.K.)（Years ended March 31）
Millions of yen

2017

2018

2019

Investments

5,323

11,740

9,655

Costs

807

732

844

14

1,375

15

Environmental protection costs

Environmental protection benefits

Social Data
Employees (consolidated)（Years ended March 31）
Number of individuals

2017

2018

2019

15,86016,746

19,229

Japan

5,827

6,172

6,461

Overseas

10,033

10,574

12,768

Employees (consolidated)

2019

32

Employees (Registered Employees of Taiyo Nippon Sanso)（Years ended March 31）
Number of individuals

2017

2018

2019

Employees (registered employees of Taiyo Nippon Sanso)

1,890

1,940

1,983

Employees overseas

70

79

76

Employees overseas as a percentage of total labor force

3.7％

4.1％

3.8％

Male

1,716

1,746

1,758

Female

174

194

225

20s and below

312

330

355

30s

358

379

393

40s

721

664

631

50s

499

567

604

18.7

18.5

18.1

Male

18.9

18.8

18.6

Female

17.0

15.5

14.4

Average age

42.8

43.5

42.6

New hires

70

90

108

Separations (including retirees)

42

44

55

Union members (Taiyo Nippon Sanso is a union shop.)

995

1,048

1,106

Union members as a percentage of total labor force

52.6％

54.0％

55.8％

0

0

0

Employees by gender

Employees by age groupYears of consecutive service

Layoffs

Diversity (Registered Employees of Taiyo Nippon Sanso)（Years ended March 31）
2017

2018

2019

Female employees as a percentage of total labor force

9.2％

10.0％

11.3％

Female employees in management positions as a percentage ofthe management team

1.2％

1.5％

1.4％

Individuals with disabilities as a percentage of total labor force

2.0％

2.0％

2.2％

Number of individuals reemployed after retirement

46

51

57

2019

33

Work—Life Balance (Registered employees of Taiyo Nippon Sanso)（Years ended March 31）
Number of individuals

2017

2018

2019

9

7

7

Male

2

0

2

Female

7

7

5

0

0

0

56.7％

60.0％

61.3％

Employees using childcare leave systems

Employees using nursing care leave or long-term nursing care
leave
Usage rate for annual paid leave

Other (Registered employees of Taiyo Nippon Sanso)（Years ended March 31）
2017

2018

2019

2

0

4

Contributions to social contribution initiatives (thousands of yen)

49,021

57,62340,396

Employee job satisfaction (scale of 15) (calculated based on inhouse research)

3.79

4.00

3.74

Employees using volunteer leave system

Occupational Health and Safety
Reporting boundary: Taiyo Nippon Sanso, consolidated subsidiaries in Japan and overseas (principal production
departments) (Data used in fiscal year 2019 includes data for Europe for the three months ended March 31, 2019.)（Years ended March 31）
2017

2018

2019

Japan

0.71

0.45

0.71

Overseas

4.09

4.15

3.20

Frequency rate of occupational accidents resulting in lost
workdays (number of injuries/deaths due to occupational
accidents per million work hours)

2019

34

Governance DataManagement Configuration（Years ended March 31）
2017

2018

2019

10

7

6

Inside directors

8

5

4

Independent outside directors

2

2

2

Directors serving concurrently as executive officers

5

2

3

Percentage of directors serving concurrently as executive
officers

50.0％

28.6％

50.0％

Independent outside directors as a percentage of total Boardof Directors members

20.0％

28.6％

33.3％

Female directors as a percentage of total Board members

0.0％

0.0％

0.0％

Term of appointment (years)

1

1

1

Frequency of Board of Directors’ meetings (meetings/year)

13

11

15

Attendance at Board of Directors’ meetings

97.7％

98.9％

97.8％

Attendance of independent outside directors at Board of Directors’
meetings (percentage of directors)

100.0％

95.5％

96.7％

Number of directors attending less than 75% of Board of Directors’
meetings

0

00

Audit & Supervisory Board members

4

4

4

Inside Board members

1

1

1

Independent outside Board members

3

3

3

Independent outside Board members as a percentage of
total Audit & Supervisory Board members

75.0％

75.0％

75.0％

Female Board members as a percentage of total Audit &Supervisory Board members

0.0％

0.0％

0.0％

17

13

18

Attendance at Audit & Supervisory Board meetings

100.0％

100.0％

100.0％

Attendance of independent outside Board members at Audit &Supervisory Board meetings (percentage of directors)

100.0％

100.0％

100.0％

Number of Board members attending less than 75% of Audit &Supervisory Board meetings

0

0

0

Average age of directors and Audit & Supervisory Board members

66.6

67.1

65.5

Number of executive officers

28

25

23

Female executive officers as a percentage of total executive
officers

0.0％

0.0％

0.0％

Directors (number of individuals)Frequency of Audit & Supervisory Board meetings (meetings/year)

2019

35

Activities of Committees（Years ended March 31）
2017

2018

2019

4

3

3

Inside Committee members

2

1

1

Independent outside Committee members

2

2

2

Frequency of Advisory Committee on Appointments andRemuneration meetings (meetings/year)

2

6

8

Attendance at Advisory Committee on Appointments andRemuneration meetings

100.0％

100.0％

100.0％

12

16

21

98.3％

99.6％

99.1％

Frequency of KAITEKI Promotion Committee meetings(meetings/year)

2

2

2

Attendance at KAITEKI Promotion Committee meetings

100.0％

100.0％

100.0％

Frequency of Technological Development Committee meetings(meetings/year)

2

2

2

Attendance at Technological Development Committee meetings

100.0％

100.0％

100.0％

Frequency of Investment Committee meetings (meetings/year)

1

2

2

100.0％

100.0％

97.3％

Compliance Committee members

33

33

33

Frequency of Compliance Committee meetings (meetings/year)

2

2

2

100.0％

100.0％

100.0％

Global Compliance Committee members

－

14

20

Frequency of Global Compliance Committee meetings(meetings/year)

－

1

1

Attendance at Global Compliance Committee meetings－

100.0％

100.0％

Risk Assessment Committee members

15

18

21

Frequency of Risk Assessment Committee meetings(meetings/year)

1

1

1

Attendance at Risk Assessment Committee meetings

100.0％

100.0％

100.0％

Technological Risk Management Committee members

18

19

19

Frequency of Technological Risk Management Committee
meetings (meetings/year)

2

2

2

Attendance at Technological Risk Management Committee
meetings

100.0％

97.6％

100.0％

Advisory Committee on Appointments and Remuneration
members

Frequency of Management Committee meetings (meetings/year)
Attendance at Management Committee meetings

Attendance at Investment Committee meetings

Attendance at Compliance Committee meetings

2019

36

Remuneration for Officers（Years ended March 31）
Millions of yen

2017

2018

2019

Remuneration for directors (excluding independent outside
directors)

455

331

249

Basic remuneration*

455

331

151

Performance-linked bonuses

―

―

97

25

25

25

25

25

25

103

102

102

103

102

102

Remuneration for independent auditors

160

162

212

Remuneration for audit services

157

161

209

Other remuneration for independent auditors

3

1

3

Remuneration for Audit & Supervisory Board members (excluding
independent outside members)
Basic remuneration
Remuneration for independent outside officers
Basic remuneration* In fiscal years 2017 and 2018, basic remuneration for directors included performance-linked bonuses.

Other Data
（Years ended March 31）
2017

2018

2019

Not adopted

Not adopted

Not adopted

Code of ethics

AdoptedAdoptedAdopted

Policy on transparency of tax affairs

Adopted(internal)

Adopted(internal)

Adopted(internal)

Taiyo Nippon Sanso Group Code of Conduct, Code of Conduct
Guidebook (rules for the prevention of corruption, bribery, conflictof interest transactions and leaks of trade secrets, etc.)

Adopted(internal)

Adopted(internal)

Adopted(internal)

Corporate political contributions (yen)

0

0

0

Violations of rules for the prevention of corruption

0

0

0

Monetary penalties incurred as a result of violations of guidelines
for the prevention of corruption (yen)

0

0

0

Anti-takeover measures

2019

37

Intellectual Property and Research and Development DataIntellectual Property
Registered patents as of December 31（Years ended March 31）
Patents

2017

2018

2019

Registered patents

1,029

1,094

1,147

Japan

701

738

774

Overseas

328

356

373

R&D
（Years ended March 31）
Millions of yen

2017

2018

2019

Research and development expenses

3,323

3,255

3,494

Gas business in Japan

2,660

2,612

2,846

Gas business in the United States

600

593

614

Thermos business

62

48

34

2019

38

Environmental Initiatives

Environmental Management
We have established a framework for promoting a broad range of initiatives with the aim of contributing toenvironmental protection.

Environmental Management Framework
In line with our Rules for Environmental Management, our Environmental Management Committee, which ischaired by the individual responsible for environmental management, meets once annually. We have established
an Environmental Technology Working Group and an Energy Saving Working Group as subsections of theEnvironmental Management Committee to guide our efforts to address particularly important challenges.
The Environmental Management Committee’s annual meeting formulates decisive initiatives to address issues
determined by the Technological Risk Management Conference and deliberates annual activity reports and activity
plans for the Company as a whole, corporate headquarters, branches, specified sites and working groups.
■ Environmental Management Framework* Specified sites are mixed-purpose sites—primarily production and research facilities—that are under direct
divisional supervision and for which integrated process safety management is necessary.

Environmental Training
We provide a wide range of environmental training to all employees with the aim of raising employee awareness ofenvironmental initiatives. Our environmental training program encompasses components focusing on
environmental targets, environmental laws and regulations and emergency responses, as well as training forinternal auditors.
New recruits are given basic Group training for new employees to promote the understanding of basic
environmental issues and encourage familiarity with the Taiyo Nippon Sanso Group’s environmental initiatives and
2019

39

achievements.

Certification under ISO 14001
A total of 11 Taiyo Nippon Sanso Group companies in Japan, including the parent company, and seven Taiyo
Nippon Sanso Group companies overseas, have obtained certification under ISO 14001, the International
Organization for Standardization (ISO)’s standard for environmental management systems.
■ Taiyo Nippon Sanso Corporation
1.

Certifying body: KHK-ISO Center

2.

Registration date: October 26, 2001

3.

Registration number: O1ER-162

4.

Organization registered: Taiyo Nippon Sanso Corporation and the Sagamihara and Oyama plants of Shin
Sagami Sanso Co., Ltd.

■ Principal Group Companies Certified under ISO 14001

Japan

Overseas

Thermos K.K.
Shizuoka Sanso Inc.
Japan Fine Products Co., Ltd.

Air Products Industry Co., Ltd.

Sogo Kariya Sanso Corporation
Taiyo Nippon Sanso Engineering Corporation
Taiyo Nippon Sanso Gas and Welding Corporation
Taiyo Nippon Sanso Higashikanto Corporation
Daiichikaimei Co., Ltd.

Ingasco, Inc.
Vietnam Japan Gas Joint Stock Company
Taiyo Nippon Sanso Engineering Taiwan, Inc.
Taiyo Nippon Sanso Taiwan, Inc.
Dalian Changxing Island Taiyo Nippon Sanso Gas Co., Ltd.

Nippon Ekitan Corporation
Nissan Tanaka Corporation
Funtaigiken Co., Ltd.

Acquisition of Green Management Certification
Green Management is an environmental certification system for companies engaged in transportation, including
those operating truck, bus and taxi fleets, administered by the Foundation for Promoting Personal Mobility andEcological Transportation. Efforts to reduce the environmental impact of their operations are screened based on thefoundation’s Green Management Promotion Manual, with companies judged to be implementing particularly key
initiatives earning Green Management certification and registered. A total of 11 of the 20 Taiyo Nippon Sanso Groupand subcontracted logistics companies* we use, including Nissan Unyu K.K., have earned Green Management
certification.
*For more information, see Environmental Data.

2019

40

Environmental Initiatives

Protecting the Environment
We promote a broad range of initiatives to combat climate change with the aim of helping mitigate global
warming, the central theme of our environmental protection efforts. Of particular note, we are taking steps toreduce energy consumed per unit of production at gas production facilities, promoting energy-saving
measures at various sites and striving to increase the efficiency of transport by tanker truck. We also promote
the development of products that reduce our impact on the environment and propose solutions and contributeto global environmental conservation.

Environmental Impact of Oxygen, Nitrogen and Argon Production
The production of the Taiyo Nippon Sanso Group’s core air separated gases (oxygen, nitrogen and argon) requires
a considerable amount of electric power. CO2 emissions attributable to the use of electric power used for thispurpose account for approximately 98% of total Group CO2 emissions.
Air separation units produce oxygen, nitrogen and argon simultaneously by separating atmospheric air into its
constituent gases. Air is first compressed, a process that is highly energy-intensive and thus uses a significant
amount of electric power. Compressed air is cooled almost to the point where the gases liquefy, after which it isready for the distillation column, where it is separated into its gas and liquid components using a thermal distillation
process. Nitrogen, which has a low boiling point, concentrates in the gas and is withdrawn from the top of thecolumn, while oxygen, which has a higher boiling point, concentrates in the liquid and is withdrawn from the bottomof the column. Argon, which has an intermediate boiling point, is withdrawn from the middle of the column.
■ Air Separation Unit: Simplified Process Flow

Preventing Global Warming
Our efforts to contribute to the prevention of global warming center on reducing energy consumption at gas
production facilities. We have established an Energy Saving Working Group as a subsection of our Environmental
Management Committee to guide these efforts. In fiscal year 2019, consumption of energy per unit of production by
2019

41

such facilities was up 0.2% from fiscal year 2006, the base year used for this measurement, reflecting changes in
the consumption of gases supplied by pipeline by major users.
Moreover, these facilities’ consumption of electric power per unit of production was down 27.2% from fiscal year
1991. Efforts by gas production facilities to reduce energy consumption included developing and installing energyefficient air separation units, replacing air separation unit components with new high-efficiency versions andoptimizing facility operations to better reflect demand. These facilities also promote initiatives in line with theCommitment to a Low-Carbon Society plan formulated by the Keidanren (Japan Business Federation) and theJapan Chemical Industry Association (JCIA)’s action plan for realizing a low-carbon society.
■ Consumption of Electricity by Gas Production Facilities in Japan

Reporting boundary: Gas production facilities belonging to and gas production companies managed by Taiyo
Nippon Sanso.
Notes:
1. For information on relevant companies/departments/sites, see Environmental Data.
2. Increases in fiscal years 2018 and 2019 reflect a change in the reporting boundary to include JFE Sanso Center
Co., Ltd.’s Kurashiki Plant.

2019

42

■ Other Initiatives

Challenges and targets

Principal initiatives

Progress as of
fiscal year 2019

Relevant companies/
departments/sites*1

Down 2.1%(from fiscal year
2018)

All Taiyo Nippon Sanso
sites (excluding gas
production facilities)●Cut unnecessary electric power

1. Promote energy-saving
measures at various sites
to reduce electric power
consumption(Target: Average annual
reduction of 1.0% over the
medium to long term)

consumption by office and lighting
equipment●Replace air conditioning, OA,
lighting, shared and otherequipment with energy-efficient
new models●Implement no overtime days andCool Biz (liberal summer dress
code to reduce use of air
conditioning)●Optimize shipping routes●Rethink delivery intervals
2. Increase the efficiency of ●Promote the weighing of cargo in
Down 29.1%
transport by tanker truck to(from fiscal year
thepresenceofthecustomer
reduce fuel used in the
1991)●
Introducenew-model
tankertransport of products
trucks●Reinforce green driving training

3. Contribute toenvironmental protection
through our products byincreasing sales ofenvironment-friendly
products

Take steps to bolster sales ofhydrogen refueling stations,
SCOPE-Jet®, MG Shield®, SF6
Recovery Service, Thermos
products, nitrogen supply systems
for laser processing andcombustion-type gas abatement
systems

Contribution to
overall reduction:
1,779,000 tonnesof CO2*2

Group and subcontracted
logistics companies*1

Taiyo Nippon Sanso anddirectly owned
consolidated subsidiaries
in Japan*1 For information on relevant companies/departments/sites, see Environmental Data.
*2 Contributions to the reduction of greenhouse gas emissions were calculated in accordance with the Japanese
Ministry of Economy, Trade and Industry’s Guideline for Quantifying GHG Emission Reduction Contribution(formulated in March 2018).

2019

43

Material Balance■ Environmental Inputs and Outputs of the Taiyo Nippon Sanso Group’s Operating Activities

2019

44

Environmental Initiatives

Environmental Data
We are promoting a broad range of initiatives with the aim of contributing to environmental protection.

Greenhouse Gases and Energy■ Greenhouse Gas Emissions (Scope 1 and Scope 2)

Reporting boundary: Taiyo Nippon Sanso,
directly owned consolidated subsidiaries inJapan and principal consolidated subsidiaries
overseas.

Reporting boundary: Taiyo Nippon Sanso,
directly owned consolidated subsidiaries inJapan and principal consolidated
subsidiaries overseas.

■ Electric Power Consumption■ Electric Power Consumed by Sites

Reporting boundary: Taiyo Nippon Sanso,
directly owned consolidated subsidiaries inJapan and principal consolidated
subsidiaries overseas.

2019■ Energy Consumption

Reporting boundary: Taiyo Nippon
Sanso sites (excluding gas production
facilities)45

■ Fuel Consumption by Tanker Trucks and Fuel Consumption per Unit of Production for the Transport of Products

Reporting boundary: Taiyo Nippon Sanso Group and principal subcontracted logistics companies
Notes:
1. Taiyo Nippon Sanso Group logistics companies: Kyushu Ekiso Co., Ltd., Kouei Circulation Co., Ltd., Taiyo Ekiso
Co., Ltd., Nissan Unyu K.K.
Principal subcontracted logistics companies: Art Konpoh Transportation Co., Ltd., SII Logistics Inc., Ekiso Co., Ltd.,
Eto Unyu Co., Ltd., Ookawa Unyu Co., Ltd., Kanagawa Sangyo Co., Ltd., Kotobuki Unso Co., Ltd., Tatsumi ShokaiCo., Ltd., Chiba Ekiso Co., Ltd., Tokai Unyu Construction Co., Ltd., Tohshin Sangyo Co., Ltd., Naruse Sanso Unyu
Co., Ltd., Nishinihon Maruesu Co., Ltd., Niyac Corporation, Marusan Unyu Co., Ltd.
2. Fuel consumption in the fiscal year 1991 base year was for Taiyo Nippon Sanso predecessor Nippon Sanso
Corporation.

SF6 Recovery Service (Taiyo Nippon Sanso Higashikanto Corporation)
Taiyo Nippon Sanso Higashikanto Corporation provides the SF6 Recovery Service. An integrated service
encompassing the recovery, reuse and detoxification of sulfur hexafluoride (SF6), a potent greenhouse gas, theSF6 Recovery Service capitalizes on proprietary technologies and is offered to customers across Japan. This is a
key example of our efforts to fully leverage our technologies to help achieve zero emissions of greenhouse gases
and, in so doing, to contribute to global environmental conservation.
In fiscal year 2005, Taiyo Nippon Sanso Higashikanto received a special jury award in the Ozone Layer Protection
and Global Warming Prevention Awards.
■ SF6 Recovered and Tonnes of CO2 Equivalent

SF6 recovery equipment

Taiyo Nippon Sanso Higashikanto website: https://www.tnhk.co.jp/ (available in Japanese only)

2019

46

Waste■ Industrial Waste Discharged

Reporting boundary: Taiyo Nippon Sanso
and directly owned consolidated
subsidiaries in Japan.

Water■ Fresh Water Withdrawn

Reporting boundary: Gas production facilities
of Taiyo Nippon Sanso and directly owned
consolidated subsidiaries in Japan, andprincipal consolidated subsidiaries overseas.

Pollutant Release and Transfer Register (PRTR)-Designated Substances■ Emissions and Transfer of PRTR-Designated Substances in Fiscal Year 2019
（kg）
Substance
Emissions
Ethylene oxide
33
Nickel compounds
0Arsenic and its inorganic0
compounds
Ethylbenzene
1,059
Ferric chloride
0
Xylene2,883
Chromium and chromium5(III) compounds
Chlorodifluoromethane
2,847(HCFC-22)
Chloroform
0
1,3-dioxolane
242
Dichloropentafluoropropane
10,120(HCFC-225)
2019

Transfer
Substance0
Dichloromethane
92
Selenium and its compounds

Emissions
4,750
0Transfer
2,000
67

199

Trichlorofluoromethane (CFC-11)

464

0

150
462
21

TolueneNickel1-bromopropane

807
1
6,242

21
9
0

77

n-hexane

0

156

490

Boron and its compounds

0

99

101
0

Manganese and its compounds
Methylnaphthalene

6
4

51
0

0

Total

29,4633,995
47

■ Emissions and Transfer of PRTR-Designated Substances

Reporting boundary: Taiyo Nippon Sanso anddirectly owned consolidated subsidiaries inJapan.

Environmental Accounting■ Environmental Protection Costs(Millions of yen)
Category

Principal initiatives

Fiscal year
2017

Fiscal year
2018

Fiscal year
2019

Investment Expenses Investment Expenses Investment Expenses

Pollution prevention
costs

Global environmental
conservation costs

Resource recycling
costs

Installation and maintenance ofabatement systems;
maintenance of purification
tanks; purchase of tanker
trucks

118

130

119

137

104

144

5,133

125

11,527

171

9,516

116

0

54

0

53

0

57

0

25

0

23

0

23

Introduction of energy-saving
air separation units
Introduction and maintenanceof low-emissions vehicles

Disposal/recycling of waste;
recovery/disposal of usedabsorbent agents from
customers

Upstream/downstream
Green procurement
costs
Administrative costs

Expenses involved inenvironmental management
system administration

0

74

0

75

0

75

R&D costs

R&D for environment-friendly
products

72

395

94

270

35

424

Community activity
costs

Environmental protection;
beautification; landscaping andother improvements; cleanup ofareas surrounding sites

0

4

0

3

0

4

0

0

0

0

0

0

5,323

807

11,740

732

9,655

844

Environmental
remediation costs
Total

2019

48

■ Environmental Protection Benefits(Millions of yen)
Benefits

Fiscalyear
2017

Fiscalyear
2018

Fiscalyear
2019ProfitProfit attributable to the recycling of waste fromprincipal business activities

11

12

12

Reduction in expenses

Reduction in energy expenses achieved throughenergy conservation initiatives

3

1,363

4

Total

14

1,375

15

Reporting boundary: Taiyo Nippon Sanso and four consolidated subsidiaries in Japan (Japan Fine Products Co.,
Ltd.; Taiyo Nippon Sanso Engineering Corporation; Nissan Unyu K.K. and Thermos K.K.)

Reporting boundary
Gas Production Companies Managed by Taiyo Nippon Sanso
Akita Ekisan Kogyo Co., Ltd.; Iwaki Sanso Center Co., Ltd.; Oita Sanso Center Co., Ltd.; K.K. Kameyama Gas
Center; Kita Nihon Sanso Corporation; Kyushu Cryogenics Co., Ltd.; Kyokuyo Semiconductors Co., Ltd.; Sakai
Gas Center Co., Ltd.; JFE Sanso Center Co., Ltd.; Shikoku Ekisan Co. Ltd.; Shunan Sanso Co., Ltd.; Shin Sagami
Sanso Co., Ltd.; Shin Nanyo Sanso Co., Ltd.; Shinyo Sanso Co., Ltd.; Sendai Sanso Center Co., Ltd.; Taiheiyo Gas
Center Co., Ltd.; Taiyo Nippon Sanso Higashikanto Corporation; Chiba Sanso Center Co., Ltd.; Tsurusaki Sanso
Center Co., Ltd.; TM Air Co., Ltd.; Nagoya Sanso Center Co., Ltd..; Hakodate Sanso Corporation; Fuji Sanso Co.,
Ltd.; Yahata Sanso Center Co., Ltd.
Taiyo Nippon Sanso Group Logistics Companies
Kyushu Ekiso Co., Ltd.; Koei Unyu Co., Ltd.; Taiyo Ekiso Co., Ltd.; Nissan Unyu K.K.
Principal Subcontracted Logistics Companies
Principal subcontracted logistics companies: Art Konpoh Transportation Co., Ltd., SEE Logistics Inc., Ekiso Co.,
Ltd., Eto Sanso Co., Ltd., Ookawa Unyu Co., Ltd., Kanagawa Sangyo Co., Ltd., Kotobuki Unso Co., Ltd., Tatsumi
Shokai Co., Ltd., Chiba Ekiso Co., Ltd., Tokai Unyu Kensetsu K.K., Tohshin Sangyo Co., Ltd., Naruse Sanso Unyu
Co., Ltd., Nishinihon Maruesu Co., Ltd., Niyac Corporation, Marusan Unyu Co., Ltd.
Principal Overseas Consolidated Subsidiaries
Matheson Tri-Gas, Inc.; Leeden National Oxygen Ltd.; Ingasco, Inc.; Taiyo Nippon Sanso Philippines, Inc.; Taiyo
Nippon Sanso Clark Inc.; Air Products Industry Co., Ltd.; Taiyo Gases Co., Ltd.; Vietnam Japan Gas Joint Stock
Company; Taiyo Nippon Sanso India Pvt. Ltd.; Shanghai Taiyo Nippon Sanso Gas Co., Ltd.; Suzhou Taiyo Nippon
Sanso Gas Co., Ltd.; Dalian Chanxhing Island Taiyo Nippon Sanso Gas Co., Ltd.; Dalian Taiyo Nippon Sanso Gas
Co., Ltd.; Yangzhou Taiyo Nippon Sanso Gas Co., Ltd.; Taiyo Nippon Sanso Taiwan, Inc.; Taiyo Nippon Sanso
Engineering Taiwan, Inc.; Fy Yang Gas Co., Ltd.; Supagas Pty Ltd

2019

49

Environmental Initiatives

Developing Environment-Friendly Products
We capitalize on gas control technologies cultivated over many years to promote the development of productsthat reduce our impact on the environment and propose solutions and contribute to global environmental
conservation.

Products that Contribute to the Reduction of Energy Consumption and CO2 Emissions
Reduction of energy consumption

Reduction of air pollution

We promote the development of oxygen combustion technologies
for a broad range of applications, contributing to the reduction ofenergy consumption and emissions of substances harmful to theenvironment. For example, we have developed a combustion
technology whereby high-purity oxygen is added to atmospheric air,increasing the oxygen concentration to 21% or higher, which boosts
combustion efficiency. This facilitates a higher burner flame
temperature while at the same time lowering the concentration of

The Innova-Jet® Swing burner directNOx, thereby reducing NOx in emissions and thermal losses. A

flames efficiently and evenly over avariety of applications are being explored for this as a technology

wide area via self-induced oscillation.

contributes to the reduction of both energy consumption and CO2
emissions, including high-temperature heating furnaces and melting
furnaces.
This achievement has its origins in an oxygen burner technology introduced from U.S. firm Air Reduction Company
in 1970 in which fuel (mainly heavy oil) and oxygen were injected into a nozzle tip, diffused and combusted.
Attaching a nozzle and oxygen burner to a smelting or sintering furnace thus made it possible to improve
productivity. In the United States, the technology was commonly used in aluminum smelting, but in Japan it firstbecame popular as a way to reduce energy consumed by electric furnaces, after which use expanded to include
other industrial furnaces, including aluminum melting furnaces, refractory cement melting furnaces and aluminumoxide kilns. We have responded by developing a lineup of products suited to diverse needs, including the SCOPEJet® swing burner, which substantially reduces power consumption, and Innova-Jet®, which achieves a significant
reduction in NOx generation during oxygen-enriched combustion.

NeoKelvin ® -Turbo 10 kW Large-Capacity Turbo-Brayton Refrigerator for Superconducting
Power Cables
Reduction of energy consumption
In the area of superconducting power cables, practical development is expected to yield benefits in the form of astable power grid and reduced costs. Of particular note, efforts to achieve commercialization are progressing
overseas, fueled by growing demand for electric power. In response to rising needs, in May 2013 we launched the
NeoKelvin®-Turbo 2 kW, a Turbo-Brayton refrigerator developed specifically for this application that uses neon gas
as a refrigerant. In July 2016, we commenced sales of NeoKelvin ®-Turbo 10 kW, a large-capacity Turbo-Brayton
2019

50

refrigerator.
While NeoKelvin®-Turbo 2 kW is only capable of cooling test-scale
superconducting power cables several hundred meters long,
NeoKelvin®-Turbo 10 kW facilitates the cooling of cables upwardsof 1.0 km. A prototype of the NeoKelvin®-Turbo 10 kW is currently
being used to cool cables in a superconducting power cableverification test being conducted jointly by Korea Electric Power
Corporation and LS Cable & System Ltd. on the Korean island of
Cheju. In July 2019, actual transmission of electric power through

The NeoKelvin®-Turbo 10 kW Turbo-

these cables began, marking the first time a Turbo-Brayton

Brayton refrigerator

refrigerator has been used commercially for coolingsuperconducting power cables.

Energy-Efficient Ultralarge-Scale Air Separation Unit
Reduction of energy consumption
Air separation units take in atmospheric air and produce gases,
notably oxygen and nitrogen, through liquefaction and separation.
Our ultralarge-scale air separation unit offers distinct advantages
over its predecessors in terms of energy efficiency, reducing energy
consumption per unit of gas produced by approximately 15%. This
accomplishment reflects three key improvements:
1.

Increased operating efficiency, achieved by boosting the sizeof the unit as a whole and of the air compressor;

2.

Reduced air compressor power requirements, attributable tothe use of a low pressure-loss packed column; and3.

Ultralarge-scale air separation unit

Reduced air compressor energy consumption, a result of theuse of a downflow condenser reboiler.

Nitrocube ® RE-LT Series of High-Performance PSA Nitrogen Generators
Reduction of energy consumption
Pressure-swing adsorption (PSA) nitrogen generators capitalize on
differences in the properties of the adsorbent used to continuously
extract nitrogen while alternately pressurizing and depressurizing
compressed air. In addition to achieving performance improvements
by modifying our in-house adsorbent technologies and bycombining a newly developed proprietary gas separation processwith a control technology that optimizes the action of thecompressor in accordance with the amount of nitrogen generated,
we succeeded in reducing energy consumption. Thanks to these

LT-F nitrogen supply system for laser

energy-saving technologies, Nitrocube® RE-LT series’ PSA nitrogencutting machines

generators are eligible for a tax scheme in Japan designed to help
strengthen small and medium-sized enterprises.
2019

51

JN Series and MG Series of Nitrogen Generators
Reduction of energy consumption

Reduction of air pollution

Reduction of noise and vibration

We install nitrogen generators at the sites of customers that
consume a large volume of nitrogen. We use an environmentfriendly production process that unlike conventional processes does
not require the use of chlorofluorocarbon refrigerators. The JN
series of nitrogen generators are standardized units with advanced
noise reduction features. Thanks to process modification, the MG
series delivers increased nitrogen yield, achieving a reduction inenergy consumption per unit of gas produced of approximately
20%. We also provide high-volume supply systems that achieve a

Nitrogen generator

reduction of approximately 30%.

Vacuum-Insulated Products
Reduction of energy consumption
The Thermos business of subsidiary Thermos K.K. dates back to 1978 and capitalized on its vacuum insulation
technologies to develop the world’s first vacuum-insulated stainless steel bottle. The Thermos lineup also includes
portable vacuum insulated mugs for hot and cold beverages and sports-use vacuum-insulated beverage bottles, aswell as the Shuttle Chef series of vacuum-insulated thermal cooking pots, all of which have earned certification
under Japan’s Eco Mark system. In line with its goal of providing solutions that enhance lifestyles and areenvironment-friendly, Thermos continues to promote the development of a variety of products that reduce resource
use and contribute to environmental protection.
■ Cold Retention: Vacuum-Insulated Container vs. PET Bottle ■ Heat Retention: Shuttle Chef vs. Standard Pot

Shuttle Chef Components
2019

52

Package-Type Hydrogen Refueling Station
Prevention of global warming
The

Reduction of air pollution

package-type hydrogen refueling station

integrates the four major components of a hydrogen refuelingstation-dispenser, pre-cooler, hydrogen compressor and storage
into a single unit. These compact (9m × 2m × 2.6m) units can beused not only as permanent stations, but also as truck-mounted
mobile stations. The package format significantly reduces the costof installation, while the simplification of components means thecost of fabrication is only half that of conventional permanent
stations. Because it can be used as a mobile station, a single Hydro
Shuttle® offers promise for multiple applications, including on-sitehydrogen refueling station
mounted on a truck

stations equipped with hydrogen production facilities, off-sitestations that supply hydrogen produced at facilities elsewhere andtravelling stations that transport hydrogen from one location toanother.
In December 2017, we opened Nimohys Hydrogen Station Setagaya, operated by Nippon Mobile Hydrogen Station
Services, LLC (nicknamed “Nimohys”), in Tokyo. This is our second such station, joining Nimohys Hydrogen Station
Minami-Rokugo in the city’s Ota ward. Looking ahead, we will continue to promote the establishment of additional
stations.

Biogas Refining Units
Prevention of global warming
Our biogas refining units, which employ ordinary-pressure
regenerative PSA, are capable of increasing the purity of methanegas to 98% or higher. We recently developed a low-cost compact
unit suitable for the small- and medium-scale decentralized biogas
plants used by dairy farmers and food processing factories.
Because high-purity methane gas separated and refined frombiogas is suitable for applications that conventionally depend on citygas, it offers promise as carbon-neutral energy that can beproduced locally for local consumption. In Japan, tests are currently
under way to determine the feasibility of supplying methane
produced from biogas and city gas using the same distribution

Biogas refining unit

networks, underscoring the potential of biogas-derived methane tocontribute to environmental preservation.

Sun Cutter ® HL-1 Gas Cutting Fuel Gas
Prevention of global warming
Gas cutting is a process that uses fuel gases and oxygen to cut steel. We have developed and launched Sun
2019

53

Cutter® HL-1, a flammable gas for this application, the principal component of which is hydrogen. Because it emits
almost no CO2, Sun Cutter® HL-1’s environmental impact is minimal. It also enhances work environments bysuppressing radiant heat. It also delivers an excellent cutting performance thanks to a cutting speed 1.4 times
faster than existing products, lower thermal distortion and improved cut surface quality.
■Index of CO2 Emissions (LPG=100)

Sun Cutter® HL-1

Cutting steel with Sun Cutter® HL-1

New Compact Combustion-Type Exhaust Gas Abatement System
Prevention of global warming

Reduction of air pollution

Fuel-powered combustion-type exhaust gas abatement systems contribute to the prevention of global warming andreduced environmental impact by efficiently decomposing perfluorocarbon (PFC) gases used in electronics
manufacturing, which have a long atmospheric lifetime. Leveraging related combustion technologies, we developed
a new burner that can be installed near the dry pump outlet downstream in the chemical vapor deposition (CVD)system that isolates chambers, reducing the need for previously essential nitrogen and exhaust piping for exhaustgas dilution. By reducing necessary utilities, this unit achieves a reduction in CO2 emissions attributable to exhaustgas abatement systems of 50%60% compared with existing offerings.

2019

New compact combustion-type exhaust

New compact combustion-type exhaust gas

gas abatement system: Exterior of burner

abatement system: Flames in burner
54

NACS HEAT® Liquefied Gas Cylinder Heating System
Prevention of global warming

Reduction of air pollution

We recently added NACS HEAT®, a liquefied gas cylinder heating system for use with our U-NACS II automatedcylinder cabinet. This energy-efficient system achieves significantly higher energy conversion efficiency thanconventional systems using heating blankets or jacket heaters, the new system. In addition, an interlock functionthat links the system to the cabinet itself ensures a safe and stable supply.
Comparison with conventional systems
Electric power consumption: -50%

Facility costs: -50%

Supply capacity: 2-3 times

Space required: -30%

NACS HEAT® used with a 1,860-liter cylinder

2019

Installing NACS HEAT® on a 47-liter cylinder

55