Zeon GroupCSR REPORT

2018

2
CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Contents
Labor Practices

Editorial Policy
Highlights

Basic Approach and Initiatives

P. 37

	Highlight 1CSR Implementation Plan measures
aimed at the realization of the Enterprise
Blueprint for 2020

Targets and Results

P. 38

Employment and Diversity

P. 40

Human Resource Development

P. 42

Human Resource System

P. 45

Creating Working Environments
That Protect HealthP. 47

Occupational Safety

P. 50

Safety and Accident Prevention

P. 51

	Highlight 2Catheters that contribute towards theenhancement of patients’ quality of life
through minimally-invasive treatment

P. 4

P. 6

Zeon’s CSR
Zeon CSR Policy

P. 8

CSR Management

P. 9Timeline of CSR Initiatives

P. 11

CSR Implementation Plan

P. 12

Corporate GovernanceTargets and Results

P. 18

Corporate Governance

P. 19

Risk Management

P. 21

Environment

Fair Operating Practices
Targets and Results

P. 53

Compliance

P. 54

CSR Procurement

P. 55

Fair and Appropriate Information Disclosure P. 56
Consumer Issues
Targets and Results

P. 58

Quality Assurance

P. 58

Human Rights

Environmental Philosophy
and Safety Philosophy

P. 22

Targets and Results

P. 61

Environmental and Safety Management

P. 24

Environmental and Safety Education

P. 26

Upholding Positive Working Environments
by Protecting Human Rights andProhibiting Discrimination

P. 61

Overview of Environmental Impacts

P. 28

Targets and Results

P. 29

Economic Indicators of Environmental
Performance (Environmental Accounting)

P. 30

Greenhouse Gas Emission Reductions
and Energy Conservation

P. 31

Chemical Substances Management

P. 32

Air, Water, and Waste Materials

P. 34

Chemical Product Safety Information

P. 35

Environmental Protectionand Safety in Logistics

P. 36

Protecting Human Rights in the Supply Chain P. 62
Community
Basic Approach and Initiatives

P. 63

Targets and Results

P. 63

CSR Core Projects

P. 64

3
CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Editorial Policy
Zeon Corporation and Zeon Group (“Zeon”) publish a
Corporate Report, which provides stakeholders with an
overview of Zeon’s business activities.
In addition to the Corporate Report, which functions as anannual report and company profile, Zeon also publishes a CSR
Report, which is intended to help stakeholders understandZeon’s approach to CSR and its environmental activities.
The 2018 version of the CSR Report has been restructured
on the basis of the core subjects of ISO 26000, theinternational standard for CSR.
Highlights of the 2018 CSR Report include an overview ofthe measures that Zeon is implementing to promote CSR, andof Zeon’s Medical Products Business.
Besides bringing together information about Zeon’s
CSR approach and CSR measures, the CSR Report is also
intended to function as a communication tool, with the aim of
fostering dialog with Zeon’s stakeholders, so that Zeon canplay an even more useful role in the world.
We look forward to hearing your frank comments andsuggestions regarding the CSR Report, which can provide a
useful reference for us in our future activities.

Reporting Period
April 2017 to March 2018 (includes some information
relating to the period in and after April 2018)

Reporting Scope
Zeon Corporation and Zeon Group companies inside andoutside Japan.
Some data covers only Zeon Corporation.

Reporting Scope for Environmental Data
Japan: Zeon Kasei Co., Ltd., Zeon Polymix Inc., Zeon Medical
Inc., Zeon North Co., Ltd., Tokyo Zairyo Co., Ltd., RIMTEC
Corporation, Zeon Yamaguchi Co., Ltd., Zeon Chemicals
Yonezawa Co., Ltd., Optes Inc., Tohpe Corporation
Outside Japan: Zeon Chemicals L.P. (ZCLP), Zeon Chemicals(Thailand) Co., Ltd. (ZCT), Zeon Advanced Polymix Co., Ltd.
(ZAP), Zeon Chemicals Singapore Pte. Ltd. (ZCS)

Reference Guidelines
Determined with reference to the 2007 Environmental
Reporting Guidelines promulgated by Japan’s Ministry of theEnvironment (MOE), and with reference to ISO 26000.
Direct inquiries to: CSR Promotion Department (publishingdepartment), Zeon Corporation
Shin Marunouchi Center Building, 1-6-2 Marunouchi, Chiyodaku, Tokyo 100-8246, Japan
Tel: +81-3-3216-0603 Fax: +81-3-3216-0604
http://www.zeon.co.jp/index_e.html

CSR Communication Tools
CSR Report 2018
(PDF)

Corporate Report 2018
(Printed booklet, PDF)
Zeon GroupCSR REPORT2018

CSR Activities website(HTML, limited reporting)Site Reports
(PDF)

4
CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Highlight 1 CSR Implementation Activities

CSR Implementation Plan
measures aimed at the realizationof the Enterprise Blueprint for 2020
CSR Code of Conduct
Zeon Group’s Goal of CSR
The Zeon Group’s goal of CSR is achieved when we are able to answer the question from thesociety asking “Does the Zeon Group meet the expectations of the society?” “Yes.” To meet the
expectations of the society means to be a company which provides value to the society and istrusted by the society. Every member of the Zeon Group aims to offer value to the society thoroughour products and services produced with our original technology and to become a company trusted
by the society by carrying out safe, secure and sincere activities.

Zeon CSR Policy and CSR Code of Conduct
To act in a manner that is trusted by the society, we have established the Zeon CSR Policy(cornerstone of values, ethics and actions which every member of the Zeon Group values).
<Zeon CSR Policy>■ We will ensure compliance and meet society’s needs for safety and security.
■ We will contribute to sustainably developing society and protecting the global environment
through our corporate activities.
■ We will ensure that each and every Zeon person is aware of CSR and acts accordingly.
The CSR Code of Conduct has been established based on the Zeon CSR policy and the corporate
philosophy.
The CSR Code of Conduct was formulated in January 2018.
http://www.zeon.co.jp/content/000257956.pdf

Zeon’s CSR Code of Conduct was revised in January 2018, for the first time in seven years.
Recently, several Japanese companies have experienced quality issue or problems with corporate governance, and there
have been growing calls for changes in working practices. The extent to which business enterprises are really meeting
society’s expectations, and the extent to which they provide meaningful value for society, have been called into question.
This revision of the CSR Code of Conduct has been undertaken to make clear Zeon’s commitment to meeting society’s
expectations, which represents Zeon’s fundamental approach to CSR, and to facilitate the making of improvements to the
CSR activities that Zeon undertakes. In this way, we are redefining, in the clearest possible way, the CSR vision for the Zeon
Group as a whole, in line with the ongoing globalization of the Zeon Group’s operations.
In order to realize the Enterprise Blueprint for 2020 and meet society’s expectations, we will be working to achieve theobjectives specified in our CSR Implementation Plan, which represents the practical guidelines for CSR, while continuing toemphasize the Sustainable Development Goals (SDGs) and ISO 26000, which are issues of great importance for society.

5
CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Highlight 1 CSR Implementation Activities

CSR Implementation Plan Measures
The Zeon Group’s CSR Implementation Plan has been formulated on the basis of ISO 26000, the international standard
for CSR. The CSR Implementation Plan specifies the progress that needs to be made in order to realize the Enterprise
Blueprint for 2020, in terms of ISO 26000’s Seven Core Subjects. Examination of the CSR Implementation Plan shows
what measures the Zeon Group is implementing in relation to the Seven Core Subjects, which embody society’s
expectations.
In the future, we will be working to further the dissemination of the CSR Implementation Plan both within and outside
the Zeon Group, and we will be implementing activities aimed at helping all stakeholders to understand Zeon’s CSR
measures.
●The Zeon Group’s CSR Implementation Plan
ISO 26000
Seven Core Subjects
Corporate Governance
Human Rights
Labor Practices
Environment
Fair Operating Practices

Enterprise Blueprint for 2020 =To meet the expectations ofsociety
Example in the Labor
Practices area:
Promoting diversity
and using fair,equitable humanresources practices toinvigorate theworkplace.
(Recruitment)

Consumer Issues
Community Involvement

Activities currently
being implemented

Items that need to be
implemented in the future

Example in the Labor
Practices area:
・Appropriate operation ofhuman resources
systems
・Support for employees’capability-building andcareer development
・Prevention of harassmentin the workplace
・Dialogue between
management and female
employees
etc.

Example in the Labor
Practices area:
Promoting diversity-oriented
management
・Proactive recruitment offemale employees
・Proactive recruitment offoreign nationals
・Promoting theemployment of seniorcitizens・Establishment ofsystematic employee
cultivation systems➡ See summary on P. 12

Measures Aimed at Supporting the Realization of the SDGs by 2030
With the realization of the Enterprise Blueprint for 2020 fast approaching, inorder to help realize the Sustainable Development Goals (SDGs) that are being
promoted by the United Nations, the Zeon Group is formulating targets for 2030
in line with both Zeon’s CSR Implementation Plan and the SDGs.
➡ For more details, see P. 12–17.

A Message from the CSR Division Manager
Last year, in the process of revising Zeon’s CSR Code of Conduct, we undertook
the redefining of Zeon’s CSR vision, which emphasizes “meeting society’s
expectations.”
The CSR Implementation Plan outlines the Enterprise Blueprint for 2020 in linewith ISO 26000’s Seven Core Subjects, collates the issues that are currently being
faced and that we will be facing in the future, and specifies the direction that wewill be taking in terms of implementing activities in line with society’s needs that are
explicitly linked to the SDGs.
While working to realize the Enterprise Blueprint for 2020, all Zeon Group
employees will be demonstrating a firm commitment to the CSR Implementation
Plan, so that we can confidently state that the Zeon Group is indeed meeting
society’s expectations.

Erisa Watanabe
Corporate Officer and the CSR Division Manager

6
CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Highlight 2 Zeon Products Making Contributions to Society

Catheters that contribute towards the enhancementof patients’ quality of life throughminimally-invasive treatment

2

ZEOSTENTTM plus

3

Extraction Balloon Catheter

1

OptoWire®

When used as a medical term, the word “invasive” refers to something that isharmful to the human body. It is most commonly used to refer to forms oftreatment that may cause physical harm; in the case of surgical procedures,using a scalpel is invasive, while in regard to pharmaceuticals, the possible
side-effects are invasive.
Minimally-invasive treatment is medical treatment that aims to reduce theinvasiveness of medical procedures as much as possible. One of the best
examples of minimally-invasive treatment is surgery using catheters. Withcatheter procedures, only a small incision needs to be made in order to insert acatheter into a vein or into the alimentary tract, so by comparison withtraditional surgery that required the making of a large incision in the abdomen,
the impact on the body is much reduced.
Because minimally-invasive treatment causes less harm to the patient’s body, itenhances patient QOL* by reducing the amount of time that patients need to spend in hospital,
and it can also be expected to lead to reduced medical expenses. Zeon Medical Inc., a member of theZeon Group which is engaged in the manufacturing and sale of medical devices, is contributing
towards the expansion of minimally-invasive treatment by developing a range of products, including
catheters, in its Cardiovascular and Endoscopic Accessory Businesses.
*QOL: Quality of Life

The Medical Device Market and Zeon Medical Inc.
The overall size of the global medical device market—including catheters—in 2016 was 36 trillion yen. The U.S. market
accounts for over 40% of this total; Japan is the second largest national market, with a market size in excess of 2.7 trillion yen in2015. The overall rate of growth of the Japanese market has been held back because of the periodic adjustments made topharmaceuticals pricing in Japan, but in absolute terms the trend is one of continued growth.
There is high demand for minimally-invasive treatment, which contributes to a reduction in overall healthcare expenses while
also helping to improve patients’ quality of life, and Zeon Medical’s business is expected to grow not only in Japan, but also in
the wider global market.

●The size of the Japanese medical device market(100 million JPY)

30,00027,47825,0005,304

20,00015,000

4,946

5,692

6,378

5,173

4,920
5,703

5,968

7,036

6,113

6,782

6,963

13,85014,103

14,853

14,987

2012

2013

2014

2015

6,124

5,536

10,00011,304

12,506

12,563

2010

2011

5,000
0

2009

■Other medical
devices■Diagnostic medical
devices
Includes OptoWire®
etc.
■Therapeutic medical
devices
Includes stents,
balloon catheters,
etc.

Source: Ministry of Health, Labour and Welfare (MHLW), “Statistics of Production by Pharmaceutical Industry”

7
CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Highlight 2 Zeon Products Making Contributions to Society

Heart(Cardiovascular Business)

Heart diseases such as myocardial infarction and angina are caused whenarteries running on the heart narrow and become obstructed. Zeon
Medical’s products are widely used in the diagnosis and treatment ofarterial blockage.

1 Measuring intravascular pressure
OptoMonitorⓇ for inter-arterial measurement of
intravascular pressure
OptoWireⓇ, a sensor-equipped guide-wire formeasuring intravascular pressure

Measuring the intravascular pressure of coronary arteries
allows quantitative diagnosis of the extent of arterial blockage.
OptoWireⓇ is the world’s first guide-wire type product toincorporate a fiberoptic sensor. This facilitates more precise
measurement and more accurate diagnosis. The small
touch-panel display design used for OptoMonitorⓇ makes it
possible to carry out measurements regardless of the location.

Balloon component

Helping the heart to function properly
MEISHUTM for IABP*
Using a balloon that expands and contracts in line with therhythm of the heart can provide temporary support for weakened
heart pumping function. The utilization of helium gas for theballoon ensures that the balloon can be rapidly expanded andcontracted safely.
MEISHUTM is relatively short and thick by comparison withconventional products, which makes it easier to have it expand
and contract in close proximity to the heart, thereby enhancing
the supporting function while maintaining safety.
*IABP: Intra-Aortic Balloon Pumping

Driving device

Since the device isshorter thanconventional
products, it is lesslikely to negatively
impact other arteries

can be inserted into the alimentary tract, making it possible to view the
Alimentary Tract Endoscopes
internal organs from the inside. An endoscope can guide a catheter into the body,(Endoscopic Business)so that treatment can be performed while being able to clearly view what is goingon. Zeon Medical’s products are widely used for removing polyps or cancerous tumors from the alimentary tract, for staunching
bleeding after operations, for crushing and removing bile duct stones from the bile duct, and for easing blockage of the bile duct.

2 Easing blockage of the bile duct 3 Removing bile duct stones
ZEOSTENT TM plus for bile duct

A stent is a small mesh-like metal tube that is used to expand
an artery, trachea, alimentary tract, bile duct etc. from the inside.
By placing a stent in the bile duct, it is possible to ease blockageof the bile duct and allow bile to flow more easily.
ZEOSTENTTM plus is made using shape-memory alloy so thatit expands by body temperature warming, making it easier toposition. The special mesh-like structure enables the stent tomaintain its tubular shape even inside the curving bile duct.
The device used to position the stent incorporates special
features that make it easy to use, and as a result the stent has
been very positively received by medical practitioners.
The mesh structure
allows the tubular
shape to be maintainedeven when bent.

The Extraction Balloon Catheter for removing
bile duct stones

The balloon at the end of the catheter is inflated inside
the bile duct to crush a stone stuck in the bile duct.
Zeon Medical’s balloon catheters have been speciallydesigned—in terms of balloon size, shape, andwater-squirting capability—to enhance their ability to
extract stones. In particular, Zeon Medical’s original
patented technology allows the balloon to be positioned at
an angle.

The balloon at the end of thecatheter is inflated inside the bile
duct to crape out the stones.

8
CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Zeon’s CSR
CSR Policy
CSR ManagementTimeline of CSR Initiatives
CSR Implementation Plan

P. 8
P. 9
P. 11
P. 12

Zeon CSR Policy
At Zeon, we regard CSR activity as all activities undertaken in order to continue being “a company trusted and valued by society.”
With each employee acting in awareness of CSR, we will thoroughly enact compliance and contribute to the global environment andsustainable development through corporate activities.

Corporate Philosophy
Corporate Philosophy (established April 1997)“Zeon is contributing to the preservation of the Earth andthe prosperity of the human race.”
In keeping with its name, which derives from the Greek words“geo” (the Earth) and “eon” (eternity), Zeon will contribute to
the sustainable development of people, society and the global
environment through innovative world-class technologies.

• ‌As an indispensable and valuable corporate citizen, we will
enhance our corporate value and meet the expectations ofsociety.
Third Principle• ‌We will establish Corporate Governance with CSR
management as a pillar• ‌All employees will act with thorough awareness of CSR andmeet the public's expectations• ‌All employees will fulfill Zeon’s CSR with enthusiasm• ‌We will pursue environmental preservation as well as safety
and quality assurance through the participation of every
individual and in every corporate activity.

CSR Policy
CSR Policy (established April 2010)
1. ‌We will ensure compliance and meet society’s needs forsafety and security
2. ‌We will contribute to sustainably developing society andprotecting the global environment through our corporate
activities
3. ‌We will ensure that each and every Zeon person is awareof CSR and acts accordingly

Each principle is further defined as follows.
First Principle• We‌ will comply with laws and regulations, firmly uphold thevalues and ethics required of a corporate member of society,and cause no distress to society• We‌ will undertake enterprise-wide environment and safety
initiatives to prevent accidents and provide a sense of
security to our employees as well as our local communities• We‌ will thoroughly address quality and product liability issues
to avoid impairing the safety and security of society
Second Principle• We‌ will contribute to the realization of sustainable
development and protect the global environment through ourcore business• We‌ will encourage proactive action across the world, refine
innovative technology, and continually create new products.

CSR Code of Conduct
The CSR Code of Conduct specifies what kind of actions
we should be working actively to implement, from theperspective of meeting society’s expectations (the CSR Codeof Conduct was revised in January 2018).
CSR Code of Conduct
http://www.zeon.co.jp/content/000257956.pdf

9
CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

CSR Management
At Zeon, we regard CSR activities as all activities undertaken to continue being “a company trusted and valued by society.” In
April 2010, we established the Zeon CSR Policy and the more specific CSR Code of Conduct. In January 2011, we establishedour current CSR Management Framework. In January 2018, Zeon’s CSR Code of Conduct was revised to reflect the impact of
globalization, etc.

CSR Management Framework
The CSR Management Framework comprises the CSR
Conference and eight committees.
Chaired by the President and held six times a year, the
CSR Conference is the chief decision-making body on mattersrelating to CSR.
The CSR Conference is held to review and finalize
committee activities, initiatives, and annual activity plans, andto give necessary instruction based on progress reports.
The committees report to the CSR Conference and advance
CSR activities in their specific areas. The eight committees
are the CSR Basic Policy Committee, the Risk Management
Committee, the Compliance Committee, the Information
Management Committee, the Environmental and Safety
Affairs Committee, the Quality Assurance Committee, the PL
Committee, and the Public Relations Committee.

Zeon’s CSR Management Framework
President

CSR Headquarters

CSR Coordination
Division

CSR Promotion
Department

CSR Basic
Policy Committee

CSR Promotional Committees at
Offices and Group Companies

General Affairs
Department

Risk Management
Committee
CSR Conference

Quality Assurance
Department

Compliance
Committee

Antitrust Law Regulatory
Subcommittee

Legal Affairs
Department

Information Management
Committee

Export Security
Control Subcommittee

Department ofCorporate Communications

Environmental &Safety Affairs Committee

Corporate Governance
Subcommittee

Quality AssuranceCommittee
PL Committee
Public Relations
Committee

CSR Basic Policy Committee
Purpose of establishment: To enhance CSR activities
The CSR Basic Policy Committee provides guidance andsupport for the activities of the CSR Promotional Committees
at six Zeon locations and nine Group companies in Japan.
The Committee also defines the standards for responding tocommunity requests for support and established a frameworkfor supporting social contributions.
Social contribution projects (CSR Core Projects) have been
carried out since FY 2012.
• ‌Support for reconstruction of areas affected by the Great
East Japan Earthquake• ‌“Chemistry Classrooms,” where we communicate the appealof chemistry to children

Risk Management Committee
Purpose of establishment: To manage business continuity
risks
The committee is responsible for systematically preventing
potential risks and managing risks that emerge. It also aims toprovide disciplined response to minimize loss in the event thata crisis does occur.
For details on its activities, see Risk Management. (R P. 21)

10
CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Compliance Committee
Purpose of establishment: To prevent violations of laws
and regulations
The Compliance Committee is responsible for creatingcompliance education and training programs to be
implemented by managing business divisions. The Compliance
Committee has the following three subcommittees.
For more information about its activities, see Compliance.
(R P. 54)
Antitrust Law Regulatory Subcommittee
Established to prevent violations of antitrust law by officers
and employees of Zeon Group and to engage in free and faircompetition among businesses. Meetings are held as required.
Export Security Control Subcommittee
Established to ensure appropriate export and domestic
sales practices through compliance with Japan’s Foreign
Exchange and Foreign Trade Act and related laws in regard to
products sold and technologies licensed or provided by Zeon.
Meetings are held as required.
Corporate Governance Subcommittee
Established to exercise internal control over financial
reporting by Zeon Group. Meetings are held as required.

Information Management Committee
Purpose of establishment: Appropriate management of
information
Planning, implementation status management, andformulation of proposals for improvement, in regard to theappropriate management of information.

Environmental and Safety Affairs Committee
Purpose of establishment: Activities related to theenvironment and safety
The Environmental and Safety Affairs Committee plans andproposes specific environmental and safety initiatives andmonitors the progress of addressing environmental and safetyissues.
For more information about its activities, see Environment(R P. 22) and Occupational Safety. (R P. 50)

Quality Assurance Committee
Purpose of establishment: Support quality assurance
The Quality Assurance Committee reviews quality
assurance activities and their implementation, and examines
and takes action to improve issues related to quality
assurance.
For more information about its activities, see Quality
Assurance. (R P. 58)

PL Committee

Purpose of establishment: Activities related to productliability
Formulates plans for product liability related prevention
activities and training, and monitors the implementation of
emergency response measures.
For more information about its activities, see Quality
Assurance. (R P. 58)

Public Relations Committee
Purpose of establishment: Effectively communicate
information about Zeon
The Public Relations Committee aims to enhance Zeon’s
profile and image through accurate communication of ourcorporate philosophy, approaches, and activities. The
Committee also ensures timely and appropriate disclosure of
information by Zeon Group.
For more information about its activities, see Fair andAppropriate Information Disclosure. (R P. 56)

11
CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Timeline of CSR Initiatives
CSR Activities
1995:
1996:
1997:

1998:
1999:
2000:
2001:
2003:
2004:
2005:

2006:
2008:
2009:
2010:

2011:
2012:
2013:
2017:
2018:

Joined the Japan Responsible Care Council and declared our commitment to Responsible Care
Established Zeon’s Responsible Care Policy
Revised the companywide safety management system and established the Plant Technology Audit System
Established the Safety Philosophy
Held the first Zeon Safety Month and the All-Zeon Safety Conference (subsequently held each year in April)
Established the Code of Conduct (Zeon’s Seven Articles)
Established the Responsible Care Policy
Established the Risk Management Rules
Published the first Responsible Care Activity Report (1999 edition)
Established the Environmental Philosophy
Amended the Risk Management Rules and renamed them as the Risk Management and Compliance Rules
Established Zeon’s Seven Articles Code of Conduct
Established the Internal Reporting System
Published the Compliance Textbook I
Published an English version of the Responsible Care Activity Report
Conducted third-party verification for the Responsible Care Activity Report
Published the Compliance Textbook II (Q&A Edition)
Switched from publishing the Responsible Care Activity Report to publishing the CSR Report
Published the Compliance Textbook I (Revised Edition)
Signed the Responsible Care Global Charter
Established the CSR Policy and CSR Code of Conduct
Published the Compliance Textbook (Q&A Edition)
Revised the CSR Implementation System and established a new System
Published the CSR Textbook
Began using the CSR Matrix
Started the CSR Core Projects (comprehensive Zeon social contributions package)
Switched from publishing the CSR Report to publishing the Corporate Report
Revised the CSR Matrix based on ISO 26000
Along with publishing the Corporate Report, also published a PDF version of the CSR Report on the corporate website
Revised the CSR Code of Conduct

12
CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

CSR Implementation Plan
CSR Matrix
Based on the CSR Matrix used since 2011, we have established our goals for 2020 in each area and have worked to address
CSR issues as a group.
In 2017, we revised the CSR Matrix based on ISO 26000. We have defined our areas of activity in light of current social
circumstances, and have incorporated related initiatives into our new mid-term management plan that started in 2017. We are also
looking at how we can contribute to the United Nations’ Sustainable Development Goals (SDGs) as we incorporate CSR into ourbusiness activities.
1. Corporate Governance: Decision-making as an organization
Correlation with SDGs: Goal 16 (Peace, Justice and Strong Institutions) and Goal 17 (Partnerships for the Goals)

Enterprise Blueprint for 2020
To meet the expectations of society

Details of current activities(■: Completed, △: Ongoing)

Decision-making with accountability and‌to develop internal regulations in△ Systemtransparency
the CSR implementation framework(Create internal rules R Apply to routine• ‌Organizational decision-making is
work)
conducted appropriately based on internal
regulations△ ‌Operations address corporate governance• ‌Business divisions carry out their operations(details of results below)
using the PDCA cycle based on policies• ‌Zeon Corporation’s Basic Policy on Corporate• ‌The process of decision-making takes into
consideration social and environmental
impacts

Future initiatives and targets
1. ‌Continue implementing our CSR promotion
structure, and periodically revise its
operations based on society’s expectations

Governance (Japanese Only)

http://www.zeon.co.jp/content/200281514.pdf• ‌Corporate Governance Report (Japanese Only)

http://www.zeon.co.jp/content/200323153.pdf

Corporate governance• ‌Corporate governance functions effectively
and reasonably.

‌
corporate governance△ Report
reports (status of system for ensuring
appropriateness of business affairs)• ‌Many business processes are handledusing key business systems designed
based on internal regulations, and theoverall framework creates a very low levelof error in processes‌work systems△ Develop

1. ‌Improve internal control level at Zeon
Group companies‌
corporate governance activities△ Conductto satisfy Japan’s Corporate GovernanceCode• ‌When risks to corporate governance arise,systems operate to appropriately address
the risks under the proper authority
Risk management• ‌Established a global crisis management
structure• ‌The Compliance Hotline is operated
appropriately‌a risk table and periodically revise it■ Create‌risks using the risk table, and△ Evaluate
conduct the same across the Zeon Group(Japan/global)‌an internal reporting system■ Operate‌sending out information and■ Continue
conducting legal education using the CSR
Code of Conduct and compliance texts

Business continuity■ ‌Examine and establish business
continuity management (BCM)• ‌Independent business continuity
management (BCM) activities (establishing ■ ‌Create and periodically revise various
business continuity plans (companywidea BCM system, periodically revising BCM
BCP, division BCP, raw materials
through drills and other means, etc.) areprocurement BCP, etc.)
conducted throughout the Zeon Group, andhave become established and reinforced.

1. ‌Evaluate the risk table and give guidance
for improvements at divisions and Group
companies, and horizontally implement
successful cases
2. ‌Consider business risks broadly andmanage them in view of demands andsociety’s expectations.

1. Support‌for establishing an independent
BCM structure through drills and othermeans (support so that individualorganizations can create the situation of
conducting the PDCA cycle for BCM bythemselves)

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CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

2. Human Rights: Protect basic rights granted to all people
Correlation with SDGs: ‌Goal 1 (No Poverty), Goal 2 (Zero Hunger), Goal 3 (Good Health and Well-being), Goal 5 (Gender
Equality), and Goal 10 (Reduced Inequalities)

Enterprise Blueprint for 2020
To meet the expectations of society

Discrimination and vulnerable groups,
avoidance of complicity• ‌The section on respect for human rights
and prohibition of discrimination in the CSR
Code of Conduct has been shared with all
Zeon Group companies and Zeon Groupbusiness partners, and compliance with theprohibitions on child labor and forced labor
are confirmed

Details of current activities(■: Completed, △: Ongoing)

Future initiatives and targets‌
Zeon Group’s CSR Code of
1. ‌Provide information on the Zeon Group’s■ Release
Conduct and CSR Procurement Guidelines
CSR Code of Conduct and CSR
on the Corporate Report and the Zeon
Procurement Guidelines to businesscorporate website
partners (business, procurement, andmaterials purchasing departments)△ ‌Conduct CSR education throughmeans including having employees read
2. ‌Build a database of external reports
compliance texts, e-learning, and CSR
related to respect for human rights at
informational sessions
business partners (supply chain CSR
survey database) (CSR Implementation
Department)
3. ‌Establish a policy specific to human rights
and implement it across the Zeon Group

3. Labor Practices
Based on Japanese law and international standards, fulfill not only our minimum obligations but also establish better
work environments and systems for organizations and employees
Correlation with SDGs: ‌Goal 3 (Good Health and Well-being), Goal 4 (Quality Education), Goal 5 (Gender Equality), and Goal
8 (Decent Work and Economic Growth)Enterprise Blueprint for 2020
To meet the expectations of society

Employment• ‌Equal employment opportunities are
ensured. (employment)

Details of current activities(■: Completed, △: Ongoing)‌ a numerical target for women new△ Set
graduate hires‌of non-Japanese employees (mid△ Hiring
career employees, exchange students)△ ‌Expand re-employment system for
employees reaching the age of mandatory
retirement

Future initiatives and targets
1. ‌Further expand employment not tied togender, nationality, race, age, disability, orother attributes
2. ‌Build a supply chain CSR survey databaseof labor practices at business partners

FY 2017 results
No. of employees rehired after mandatory
retirement: 17 (94.4%)
Labor conditions and social protections• ‌Workplaces are re-energized by promoting
diversity and the fair and equitable
treatment of personnel (appointments)

1. Promote diversity-oriented management‌
implement of HR systems△ Appropriately‌for employee skills and career△ Support• Appoint‌
more women employees to higher
development
positions△ ‌Harassment prevention• ‌Appoint more employees who are non‌ D Committee activities by women members△M
Japanese nationals to higher positions(including dialogue between senior management• ‌Advance employment of older persons
and women employees)• ‌Create a systematic professional△ ‌Implementation of employment for people
development systemwith disabilities
FY 2017 results
Percentage of employees with disabilities: 2.07%

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CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Enterprise Blueprint for 2020
To meet the expectations of society

Labor conditions and social protections• ‌Promote work–life balance (harmony
between work and life) to enable people towork while also caring for children and/or
sick families

Details of current activities(■: Completed, △: Ongoing)

Future initiatives and targets‌flex-time systems
1. Further‌pursue dynamic work styles■ Introduce(Promote taking annual paid vacation)‌a shortened work-hours system■ Develop
for childcare and family caregiving‌ raft the general employer’s action plan■D
under the Act on Advancement of Measures
to Support Raising Next- Generation
Children and implement related notifications
to acquire the Kurumin mark in Japan△ ‌Childcare support systems (shortened working
hours, overtime restrictions and exemptions,sick care leave, breast feeding time, etc.)△ ‌Return-to-work program for employees
taking childcare and caregiving leave△ ‌Reduce long working hours△ ‌Implement a work-from-home system on a
trial basis

Occupational health and safety△ ‌Include health management in top policy
and take steps to maintain and improve the• ‌Policies for managing workplace healthphysical and mental health of employees
and safety and the health of employees
have been strengthened, work hours are•C‌ onduct mental health education and run acommittee for determining returning to work
appropriately managed, and the number ofpeople reporting physical and mental health • ‌Ensure labor hours management andissues is declining significantly.
prevent excessive work
• ‌Rate of abnormal results in routine physical • ‌Encourage leaving work on time and taking
exams is at or below standardof annual paid vacation• ‌Detect changes in health early throughstress checks• ‌Provide guidance to prevent lifestylediseases

1. Promote‌
improved physical and mental
health for all employees, who are thesource of the company’s strength• Enhance‌mental health education• Implement‌company policies and create
conditions for better health and well-being△ ‌Implement the Safety Management
Improvement Master Plan
△ ‌Fully implement deterioration
countermeasures and identify measures toprevent errors, and horizontally implement
measures arising from cases of accidents
at other companies and plants‌ liminate safety incidents: Regularly conduct△Eplant safety evaluations and audits△ ‌Eliminate occupational accidents△ ‌Improve safety in logistics△ ‌Conduct comprehensive emergencyresponse drills and monthly drills by ourself-defense emergency response teams■ ‌Conclude cooperation agreements with local
governments (Cooperative Agreement for
Disaster Prevention in Industrial Complexes)△ ‌Participate in community disaster readinessactivities

To improve safety capabilities
1. ‌Conduct four safety activities (“4R-KY”)
at all Group companies (supply chain
development)
2. ‌Reinforce specified sources of hazards toprevent safety accidents
3. ‌Enhance dialogue activities on safety,
the environment, and quality with local
communities

Occupational health and safety• ‌Increased trust in Zeon to protect local
communities’ safety and security byconducting emergency drills and otherinitiatives such as concluding disastercooperation agreements• ‌All worksites have earned public trustby maintaining a safety record of zeroincidents and accidents

Targets¡Plant safety evaluations conducted: 100%
¡Implement RC audits (once/year or more
for all 4 plants) ¡Eliminate safety incidents:
0 safety incidents ¡Eliminate occupational
accidents: 0 occupational accidents resulting
in lost work time ¡Zero serious accidents
without lost work time ¡Improve safety inlogistics: 0 accidents in logistics ¡Implement
the above guidelines at Group companies

FY 2017 results¡Plant safety evaluations conducted: 100%
¡Implement RC audits conducted (once/year or
more for all 4 plants) ¡Eliminate safety incidents:
2 safety incidents ¡Eliminate occupational
accidents: 2 occupational accidents resulting inlost work time¡Zero serious accidents without
lost work time ¡Improve safety in logistics: 0
accidents in logistics
HR development and training at workplaces △ ‌Provide training to enhance accident
prevention awareness (4 plants, 1 Group• ‌Have proactively enhanced awareness andcompany) (e.g., education using accident casemade further improvements in the areas ofstudies, hands-on training)
health and safety through comprehensive
education△ ‌Promote the 5S’s R 3S’s

1. Conduct‌
safety education companywide(supply chain development)
2. ‌Implement the 3S’s companywide (supply
chain development)

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CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

4. Environment: The organization takes responsibility for the environment, and promotes preventive measures
Correlation with SDGs: ‌Goal 6 (Clean Water and Sanitation), Goal 7 (Affordable and Clean Energy), Goal 9 (Industry,Innovation and Infrastructure), Goal 12 (Responsible Consumption and Production), Goal 13 (Climate
Action), Goal 14 (Life Below Water), and Goal 15 (Life on Land)

To meet the expectations of society

Details of current activities(■: Completed, △: Ongoing)

Future initiatives and targets

Pollution prevention
Climate change mitigation and adaptation• ‌All plants received public recognition for
their environmental impact reductions• ‌Proactively enhance awareness and makefurther improvements in the areas of theenvironment and energy conservation
through comprehensive education‌emissions of hazardous△ Reduce
substances, industrial waste, and impacts
on atmospheric and water environments△ I‌ mprove energy conservation in Responsible
Care audits, the Safety Management System,
the Environment Management System basedon ISO 14001, and the Energy Conservation
Implementation Committee

1. ‌Conduct environmental management using
the multiple systems noted on the left
2. ‌Implement activities companywide to
reduce environmental load
3. ‌Identify energy-saving measures andimplement them on an ongoing basis
4. ‌Conduct risk assessments of hazardous
chemical substances

FY 2017 results¡Zero environmental incidents¡Environmental impact reductions• ‌Per-unit energy consumption: +6%• ‌Per-unit CO2 emissions: +11%

Targets¡Zero environmental incidents¡Environmental impact reduction targets•P‌ er-unit energy consumption: -1% average per year•P‌ er-unit CO2 emissions: -1% average per year‌S-SBR for fuel-efficient tire, low■ Develop
temperature toners, ZEORORA® with zero
ODP, and binders for lithium-ion batteries

1. ‌Research and development,
manufacturing, and sales that addressenvironmental issues faced by societyEnterprise Blueprint for 2020

Climate change mitigation and adaptation• ‌Products with reduced environmentalload continue to be developed andlaunched in the market

5. Fair Operating Practices: Ethical organizational conduct in interactions with other organizations
Correlation with SDGs: ‌Goal 10 (Reduced Inequalities), and Goal 16 (Peace, Justice and Strong Institutions)Enterprise Blueprint for 2020
To meet the expectations of society

Fair competition• ‌Are complying with all laws and regulations,ordinances, agreements, and internal
regulations, and acting with high ethicalstandards based on being a model forsociety• ‌Management policies are broadly
understood and compliance awarenessis widespread. As a result, by proactively
conducting CSR activities and adapting toenvironmental changes, business continuity
as well as sustainable development areachieved

Details of current activities(■: Completed, △: Ongoing)■ ‌Enact and implement management regulations including
those on insider trading and appropriate disclosure△ ‌Comply with internal regulations including
the Export Security Control Regulations‌ ppropriately implement regulations to comply with△A
the Act on Prohibition of Private Monopolizationand Maintenance of Fair Trade (Antimonopoly Act)‌ ompliance with the Subcontract Act and the Act for△C
Securing the Proper Operation of Worker Dispatching
Undertakings (prevention of falsified contracts)△ ‌Regulations in the CSR Code of Conduct
and the CSR Procurement Guidelines‌ mployees read the CSR Textbook and△ECompliance Textbook and take e-learning courses△ ‌Conduct CSR education including holding
CSR informational sessions△ ‌Hold workshops on legal and regulatory compliance△ ‌Legal compliance inspections△ ‌Regularly revise internal regulations (tosatisfy legal amendments)

Future initiatives and targets
To reduce legal risks¡Compliance with internal regulations¡Ongoing legal training and information sharing using
the Compliance Textbook and other materials¡Education on the CSR Code of Conduct¡Ongoing compliance education¡Revise the Compliance Textbook andthe CSR Textbook and hold related
informational meetings¡Ongoing CSR briefings by the head of the
CSR division¡Support the establishment of compliancesystems at Zeon Group companies outside
Japan (develop in the supply chain)¡Shift from compliance to sustainability(promote understanding among management
and establish among employees)¡Become a signatory to the United Nations
Global Compact

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CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Enterprise Blueprint for 2020
To meet the expectations of society

Details of current activities(■: Completed, △: Ongoing)

Future initiatives and targets

Fair competition• ‌Information is disclosed quickly andappropriately, and market value has
increased (including negative information
regarding business conditions, CSR, risks,etc.).

△ ‌Hold financial results briefings△ ‌Publish various reports△ ‌Release information via the company
website△ ‌Hold briefings for individual investors andanalysts and respond to media inquiries△ ‌Hold press conferences for mass media
outlets and others

Social responsibility in the value chain• ‌Select business partners based on
the CSR Procurement Guidelines andperiodically confirm the Guidelines’ statusof implementation

1. ‌Develop and establish the CSR Code of■ Multiple-source
Conduct and CSR Procurement Guidelines‌with laws and regulations on△ Complyin the supply chain
competition including the AntimonopolyAct
2. ‌Build the supply chain CSR survey
database‌
the RoHS Directive, bans on△ Satisfy
substances, etc.
△ ‌Purchasing following the CSR Procurement
Guidelines

To enhance the corporate brand and value
1. ‌Improve the website (IR, CSR information)
2. ‌Strengthen the information communications
structure (PR)3. ‌Communicate information that supports
ESG investment

6. Consumer Issues: Not causing harm to consumers, and not causing consumers to have harmful effects on society
Correlation with SDGs: ‌Goal 9 (Industry, Innovation and Infrastructure), and Goal 12 (Responsible Consumption and
Production)

Enterprise Blueprint for 2020
To meet the expectations of society

Details of current activities(■: Completed, △: Ongoing)

Future initiatives and targets

Protecting consumers’ health and safety• ‌Both quality and cost are globally firstrate‌a quality management system based 1. ‌To maintain and expand conditions where△ Haveon ISO 9001
Zeon products are chosen‌quality assurance risks (product△ Manage¡Establish systems to definitively reducecomplaints, process abnormalities, and defects,
liability lawsuits, supply obligations, productprevent defective products from leaving Zeon,recalls, and credibility loss due to rumors)
create corporate quality trusted by customers,△ ‌Improve processes (reduce losses, improveand further improve customer satisfaction
consistency)¡Develop initiatives for chemical substance‌
activities for production△ Develop
regulations
innovations¡Develop Zeon’s quality management
system at Zeon Group companies outside
Japan and at outsourcing partners
2. ‌Measure customer satisfaction tounderstand the current satisfaction level,
set targets, and promote improvements

Sustainable consumption• ‌Developed and launched a series of
products that are beneficial to society△ ‌Develop business based on business plans 1. ‌Research and development,
manufacturing, and sales that address
consumer issues faced by society

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CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

7. Community Involvement and Community Development
Involvement in and contribution to the community in various forms, from dialogue with local residents to improvementof education and culture in the community and local employment creation
Correlation with SDGs: ‌Goal 4 (Quality Education), Goal 9 (Industry, Innovation and Infrastructure), Goal 11 (Sustainable
Cities and Communities), and Goal 17 (Partnerships for the Goals)

Enterprise Blueprint for 2020
To meet the expectations of society

Details of current activities(■: Completed, △: Ongoing)

Future initiatives and targets

Community involvement, education, and culture △ ‌Develop CSR Core Projects (social¡Develop the CSR Core Projects based on acontribution activities by Group as a whole,defined Zeon Group activity policy• ‌Zeon’s social contributions are understood,among locations, and at individual worksites)
receive recognition, and are supported
Community involvement• ‌An organization for promoting volunteer
activities among employees has been
established, and employees actively
volunteer in various ways‌and enhance the system for△ Upgrade
promoting volunteer activities (establish avolunteer leave system)‌
volunteer activities and promote△ Introduce
and support participation in them(volunteering to support reconstruction
from earthquakes, etc.)
FY 2017 results
Number of employees participating involunteer tours: 60(cumulative total of 425 employees)

Community involvement• ‌Guidelines for coexisting with local
communities have been created and areused, and good relations have been builtwith local communities

Technological development and access totechnologies• Explore‌the needs of society and cultivate
the seeds to meet these needs basedon unique technologies and unparalleledproducts to create new business and makecontributions to society¡Raise employee awareness for social

contributions• ‌Conduct CSR education including CSR
informational sessions• ‌Establish a social contribution policy for theentire Zeon Group (e.g., on water)¡Create a system to support volunteering(volunteer registration system, etc.)¡Create opportunities for social contributions
from exchanges with local councils of social
welfare, nongovernmental organizations
and non-profit organizations

and utilize disaster recovery■ Formulate‌¡Maintain and expand exchanges withlocal communities
support standards• ‌Support the reconstruction of the Tohoku‌and charity activities△ Donations(Furukawa Scholarship, expenses for
Regioncommunity promotions, Red Cross, etc.)• ‌Devise and implement ongoing measures tosupport recovery from disasters△ ‌Maintain good community relations andhave community exchanges• ‌Actively participate in community activities•S‌ ponsor and participate in community festivals¡Through dialogue with stakeholders
and events including summer festivals at plants
including local communities, identify• ‌Community cleanup activities
expectations from society, the current levelof meeting those expectations, and set• ‌Plant tours (receive plant visitors, internships)
targets¡Strategy for “reinforce” and “explore” in the
research and development division andbusiness divisions

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CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Corporate GovernanceTargets and Results			
P. 18
Corporate Governance			P. 19
Risk Management				P. 21

Targets and Results
Enterprise Blueprint for 2020
To meet the expectations of society

Details of current activities(■: Completed, △: Ongoing)

Future initiatives and targets

Decision-making with accountability
1. ‌Continue implementing our CSR promotion‌
to develop internal regulations in△ Systemstructure, and periodically revise its
the CSR implementation framework (Create
and transparency
operations based on society’s expectations
internal rules R Apply to routine work)• ‌Organizational decision-making is‌address corporate governanceconducted appropriately based on internal △ Operations(details of results below)
regulations• ‌Business divisions carry out their operations • ‌Zeon Corporation’s Basic Policy on Corporate
Governance (Japanese Only)
using the PDCA cycle based on policies• ‌The process of decision-making takes into
http://www.zeon.co.jp/content/200281514.pdf
consideration social and environmental• ‌Corporate Governance Report (Japanese Only)
impacts
http://www.zeon.co.jp/content/200323153.pdf
Corporate governance• ‌Corporate governance functions effectively
and reasonably• ‌Many business processes are handledusing key business systems designed
based on internal regulations, and theoverall framework creates a very low levelof error in processes• ‌When risks to corporate governance arise,systems operate to appropriately address
the risks under the proper authority‌
corporate governance△ Report
reports (status of system for ensuring
appropriateness of business affairs)‌work systems△ Develop‌
corporate governance activities△ Conductto satisfy Japan’s Corporate GovernanceCode

1. ‌Enhance level of internal control at Zeon
Group companies

Risk management• ‌Established a global crisis management
structure• ‌The Compliance Hotline is operated
appropriately‌a risk table and periodically revise it■ Create‌risks using the risk table, and△ Evaluate
conduct the same across the Zeon Group(Japan/global)‌an internal reporting system■ Operate‌sending out information and■ Continue
conducting legal education using the CSR
Code of Conduct and compliance texts

1. ‌Evaluate the risk table and give guidance
for improvements at divisions and Group
companies, and horizontally implement
successful cases
2. ‌Consider business risks broadly andmanage them in view of demands andsociety’s expectations.

Business continuity• ‌Independent business continuity
management (BCM) activities (establishinga BCM system, periodically revising BCM
through drills and other means, etc.) areconducted throughout the Zeon Group,and have become established andreinforced‌and establish business■ Examine
continuity management (BCM)‌and periodically revise various■ Createbusiness continuity plans (companywide
BCP, division BCP, raw materials
procurement BCP, etc.)

1. ‌Support for establishing an independent
BCM structure through drills and othermeans (support so that individualorganizations can create the situation of
conducting the PDCA cycle for BCM bythemselves)

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CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Corporate Governance
Basic Policy on Corporate GovernanceZeon Corporation aims to increase profits and enhance
corporate value on an ongoing basis while respecting andbalancing the various interests of its shareholders and otherdiverse stakeholders. To this end, we are continuing efforts toestablish a system that enables efficient and sound corporate
management through corporate governance.
Putting in place a corporate governance system allows us
to clarify the functions and roles of each organizational entity
within the company and to carry out rapid decision-making
and execution. We are also improving corporate transparency
through appropriate monitoring and disclosure of businessactivities and their effects.
Basic Policy on Corporate Governance (Japanese only)
http://www.zeon.co.jp/content/200281514.pdf
Corporate Governance Report (Japanese only)
http://www.zeon.co.jp/content/200323153.pdf

The main components of our Corporate Governance
System are summarized below.

Board of Directors
The Board of Directors meets, in principle, every monthwith corporate auditors in attendance to ensure compliancewith applicable laws and the Articles of Incorporation in theexecution of business. In addition to its statutory duties, therole of the Board of Directors is to make important decisions
about basic management policy, strategy, and other aspectsof business execution. Currently, the Board of Directors
consists of 11 directors, including three outside directors.

Executive Committee
The Executive Committee, in accordance with the Executive
Committee Rules, comprises the President and executive
officers ranked senior corporate officer and above,
meets twice a month in principle to examine and makedecisions on important business matters after due deliberation
involving consultation with attending full-time corporate
auditors. Important business matters stipulated in the Board of
Director Rules are examined and decided by the Board of
Directors.
Board of Corporate Auditors
The Board of Corporate Auditors comprises five members,
including three outside corporate auditors. The Board reports,
discusses, and adopts resolutions on important businessmatters. In accordance with the auditing guidelines establishedby the Board of Corporate Auditors, each corporate auditor
audits directors’ execution of their duties through various
means, such as attending Board of Directors meetings andmonitoring business operations, including at subsidiaries’
operations.

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CSR REPORT
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Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Corporate Governance System

General Meeting of Shareholders
Decisions/Supervision(appointments/dismissals)(Appointments/dismissals)(Appointments/dismissals)

Require for

AdviceDirector and Officer
Nomination and
Board of Directors
Compensation Committee Suggestions

Auditing(Dismissals)

Corporate Auditors (Board)

Decisions/Supervision(appointments/dismissals)

Auditing

Representative Director
Executive Committee

Internal audits

Financial Auditors
Financial
AuditsBusiness Execution &Internal Controls System

Collaboration

Department of Internal Auditing

Collaboration

Reporting

CSR Conference
CSR
Basic Policy
Committee

Risk Management Committee

Reporting(external)

Compliance Committee

External
lawyers

Information Management Committee
Environmental & Safety Affairs Committee

Quality Assurance Committee

Reporting(internal)

PL Committee
Public Relations Committee
Business execution divisions

Reporting(external)

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CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Risk Management
Risk Management Framework
The Risk Management Committee leads Zeon’s risk
management. Activities to prevent law violations and tocomply with laws and regulations are conducted under theCompliance Committee (For more information about theframework, see Compliance. [R P. 54])
The Information Management Committee implements
appropriate management of information, from the time when
information is obtained until the time when it is deleted.

Internal reports: ‌Cumulative total of eight incidents over the
past nine years (FY 2009–FY 2017)
The Risk Management Committee has appropriately dealt
with each of these incidents by conducting an investigation
into the reported details and instructing internal organizations
to institute measures accordingly.
*Zeon employees (including seconded employees), temporary employees, andexecutives of contractors that work at our worksites have the right to report mattersof concern.

Risk Management and Compliance System
CSR Conference

Internal Reporting Flowchart

Risk Management Committee

Internal

Prevention and control of risks
Crisis management

Supervisor

Compliance Committee
Prevention of legal violations
Education and training in compliance with laws

External
Risk Management
Committee

Outside lawyer
contact

Investigating the facts andtaking countermeasures

Receiving internal reports/
Recording facts/
Communicating the results

Antitrust Law Regulatory Subcommittee
Export Security Control Subcommittee
Corporate Governance Subcommittee

Information Management
Committee

Reporting person
Discovering risks/
Discovering complianceviolations

Compliance Hotline

Appropriate management of information

Report or contact

Risk Management Committee FY 2017 Results• ‌Handle incidents as they occur and take steps to prevent
their recurrence• ‌Enhance risk and crisis control measures
Example: Based on business continuity plans (BCPs), holdcomprehensive, companywide disaster drills that simulate amajor earthquake

Internal Reporting System
Zeon established its internal reporting system to quickly
collect information on potential risks and facilitate theirresolution. Per the rules on reporting risk-related information,
reports can be made not only to one’s supervisor or the
Risk Management Committee directly, but also by calling theCompliance Hotline, which connects the caller to an externallawyer. No person who reports* a matter of concern will suffer
any adverse consequences as a result of making a report.

Feedback

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CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Environment
Environmental Philosophy and
Safety Philosophy				P. 22
Environmental and Safety Management
P. 24
Environmental and Safety Education		
P. 26
Overview of Environmental Impacts		
P. 28
Targets and Results			
P. 29
Economic Indicators of Environmental
Performance (Environmental Accounting)
P. 30
Greenhouse Gas Emission Reductions
and Energy Conservation			P. 31
Chemical Substances Management		
P. 32
Air, Water, and Waste Materials		P. 34
Chemical Product Safety Information
P. 35
Environmental Performance in Logistics
P. 36
Environmental Data for Zeon Worksites and Group Companies ▶▶▶ http://www.zeon.co.jp/csr_e/report.html

Environmental Philosophy and Safety Philosophy
Philosophy and Policy for Safety and Environmental Activities
Responsible Care: A voluntary initiative by businesses that manufacture or handle chemical substances to achieve continuous
improvement in health, safety, and environmental (HSE) performance across the entire life cycle of such substances—fromdevelopment and manufacture, through distribution and use, and ending in final consumption or disposal—based on the principles
of independent decision-making and personal responsibility. These businesses publicly commit to Responsible Care in theirbusiness policies, implement HSE-related actions, and strive to improve their HSE performance.
At Zeon, we have practiced the Responsible Care philosophy as a member of the Japan Responsible Care Council (now theJapan Chemical Industry Association Responsible Care Committee) since its inception in 1995. In 1998, we established our own
Responsible Care Policy to define our conduct guidelines based on the Responsible Care philosophy.

Environmental Philosophy
Established in 2001, our Environmental Philosophy guides
our efforts to deliver products with consistent quality throughsafe and reliable production while reducing our environmental
impacts.

Safety Philosophy
A consistently safe work environment is the foundation of all
production activities. We formulated our Safety Philosophy in1997 to guide our safety activities.

Safety Philosophy (Established March 1997)
Environmental Philosophy (Established August 2001)
1. ‌Environmental protection is a mission of a socially
responsible organization
2. Our basic belief is that environmental protection can beachieved with innovative technology
3. Environmental protection will be achieved when all
employees work together with a sense of mission to
overcome challenges

1. Safety is the foundation of all business activities and thegreatest priority
2. Our basic belief regarding safety is that we can prevent all
accidents
3. Safety will be achieved by performing the 5Ss* and when
everyone takes responsibility for their own actions*5Ss:
Seiri (sort), Seiton (straighten), Seisou (scrub), Seiketsu (systematize), and Shitsuke(sustain)

23
CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Responsible Care Policy

Responsible Care Policy (Established June 1998)
1. Prioritize the environment and safety
Protecting the environment and ensuring safety are preconditions for all business activities and are the most important priorities.
We will work continuously to enact full accident prevention countermeasures, and provide education and training for all employees
to prevent safety and environmental accidents.
2. Collect and distribute the latest information on chemical products
We will collect, store and manage the latest information required for the appropriate handling, use and disposal of chemical
products, and distribute this information to employees and users.
3. Minimize the discharge of toxic chemicals and waste
We will work to reduce the discharge of hazardous chemical substances, minimize waste, and develop technology for recycling
and reusing materials.
4. Promote activities for conserving resources and energy
We will aim to dramatically reduce the amount of energy we use and help alleviate global warming by developing innovativetechnology and actively promoting resource and energy conservation activities that involve all employees.
5. ‌Take the environment and safety into account when developing new processes and products and performing quality
assurance
We will perform thorough environmental and safety evaluations from the initial stages of research, develop technology andproducts that take the environment and safety into account, and work to maintain and improve the quality of technology andproducts.
6. Live together with society
We will strictly observe regulations related to the environment and safety, whether the regulations come from the local community,
the national government, overseas, or organizations to which we belong. While cooperating in these activities, we will work toenhance our communication with the local community and society in order to convey a better understanding of Zeon’s activities
and further strengthen the trust that society has in our company.
7. Perform continuous improvements
We will continuously improve our environment safety management and technology by operating a Responsible Care Audit, theSafety Management System, an Environment Management System based on ISO 14001, and an Occupational Health and Safety
Management System.

24
CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Environmental and Safety Management
We have built Environmental and Safety Management Systems based on the Responsible Care philosophy, and our plants haveobtained ISO 14001 certification. Our goal is to ensure the safety of all persons at our worksites and plants.

Overview of Environmental and Safety Management Systems
President’s Annual Policy and Safety Management
Improvement Master Plan
These documents are created by top management.
Annual Environment and Safety Policy
The Environmental and Safety Affairs Department General
Manager creates this policy after the President’s Annual
Policy and the Safety Management Improvement Master
Plan are released. The Annual Environment and Safety Policy
is reviewed by the CSR Conference and finalized by the
President.
Annual Worksite Manager’s Policy and Annual Worksite
Safety Management Improvement Master Plan
Worksite managers create these documents after the
President’s Annual Policy and the Safety Management
Improvement Master Plan are released.
Annual Worksite Environmental and Safety (ResponsibleCare) Activities Plans
Worksite managers create the Activities Plans after thecompanywide Annual Environment and Safety Policy isreleased.

•Progress Management• ‌Safety Management Improvement Master Plan:
Progress verified by the CSR Conference• ‌Annual Worksite Safety Management Improvement
Master Plan: Progress verified by the worksite manager
during worksite inspections• Annual‌Worksite Environmental and Safety Activities
Plans: Progress verified by the worksite manager during
worksite inspections
Environmental and Safety Management Systems
Top management●President’s
Annual Policy●Safety
Management
Improvement
Master Plan
●Annual Environment
and Safety Policy●President’s
Annual Policy●Safety
Management
Improvement
Master Plan

●AnnualEnvironment
and Safety
Policy (draft)

Environmental and Safety Affairs Department●Deliberation●Decision-making●Confirmation

CSR
Conference●Progress
management
in implementing
the Safety
Management
Improvement
Master Plan

Worksites●Draft the Annual Worksite Manager’s Policy●Draft the Annual Worksite Safety Management Improvement Master Plan and progress management●Draft the Annual Worksite Environmental and Safety (Responsible Care) Activities Plans andprogress management

AuditsAudits assess whether our management systems arefunctioning normally.
Worksite Responsible Care audits cover environmental
and safety matters and are headed by the Environmental and
Safety Affairs Department General Manager. These audits have
two parts: the Responsible Care Audit and the Responsible
Care Dialogue.
Responsible Care Audits• ‌Audits using specialized indicators to monitor the progress of
Responsible Care activities.
• ‌These audits also include auditing conducted for worksitesthat have Certified Completion and Process Safety
Inspectors for High-Pressure gas.
• ‌The progress of improvements in areas where audits
uncovered such needs is verified using the Audit Findings
Improvement Plan and Progress Report.
Responsible Care Dialogues• ‌A venue for worksite members and management toconsider, discuss, and resolve worksite environmental andsafety issues that are difficult to identify through audits.
Responsible Care Audits at Group Companies
Group Company Responsible Care Audits cover Group
company Responsible Care activities and are headed by
the Environmental and Safety Affairs Department General
Manager. The progress of improvements in areas where audits
uncovered such needs is verified using the Audit Findings
Improvement Plan and Progress Report.
Internal Plant Audits
Internal plant audits are conducts at plants.
• ‌Plant manager inspections: Inspections of the progress of
Responsible Care implementation conducted by the plant
manager (at least once/year)• ‌Environmental Management System (EMS) internal audits

25
CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

ISO 14001 certification
Site

Year certified

Takaoka Plant

1998

Kawasaki Plant

1999

Tokuyama Plant

1999

Mizushima Plant

1999
Site

Year certified

Zeon Kasei

2004 (Head Office including research laboratory)

Zeon Polymix

2004

Optes Hokuriku Plant

2005

Optes Sano Plant

2005

Tokyo Zairyo

2006

Zeon Chemicals Yonezawa

2006

Zeon North

2007

26
CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Environmental and Safety Education
Systematic safety education
Environmental and safety education programs are
implemented in accordance with the annual plan set by each
worksite.
Company-wide environmental and safety education
supervised by the Environmental & Safety Affairs Department
is combined with worksite-specific environmental and safety
education tailored to the specific needs of each individual
worksite.

Training organized by the head officeEnvironmental and safety education supervised by
the Environmental & Safety Affairs Department, which is
conducted at company headquarters, is combined withenvironmental and safety education implemented at individual
worksites. Through these educational activities, we strive
to eliminate safety incidents and occupational accidents,
minimize damage should an incident or accident occur,and maintain Zeon’s status as an enterprise trusted by local
communities.
Manager and supervisor education
Training for newly-appointed section managers
This training is implemented for newly-appointed
manufacturing section managers, facilities management
section managers, and environmental and safety section
managers.
The content of the training includes safety activities basedon Zeon’s safety system, safety concerns and responsibilities
that safety managers should be familiar with, environmental
and safety related laws and environmental and safety relatedcompany regulations, an overview of the fundamental fourlaws , and the Safety Management System, etc.
Safety education provided by former plant managers
Education using accident case studies
Held since FY 2003, this education program aims toprevent the lessons of past accidents from fading frommemory, to apply these lessons in work operations, to raise
workers’ awareness of safety, and to increase their sensitivity
to potential risks.
Former plant managers give presentations to all plant
employees. They cover specific examples of accidents at Zeonand other companies to communicate the grim consequencesof such accidents, and provide instruction on how toanalyze risk factors as well as countermeasures to prevent
recurrences.
In FY 2017, the presentation of accident case studies
focused on instructors’ own actual experiences, adopting aformat whereby the instructors provided participants directlywith their own views on the lessons to be drawn from each
incident, etc.

Education using accident case studies

Education using accident case studies

Environmental and safety education for new employees
Newly-recruited employees at Zeon headquarters
Presentation of case studies of occupational accidents
that have occurred while newly-recruited employees were
undertaking factory placements, emphasizing the importanceof abiding strictly by the rules that have been established ineach workplace.
Newly-recruited employees at individual worksites
Education in basic matters relating to environmental andsafety issues.

27
CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Environmental and safety education and training
activities organized by individual worksites
Safety and environmental legislation education
Each individual worksite implements environmental andsafety education in accordance with the annual plan.
Training activities
Training is implemented in accordance with the annual
plan. We strive to improve emergency response capabilities byidentifying issues that arise following training implementation
and using these to make systematic improvements.
• ‌Comprehensive disaster response drills: These are held
once or twice a year, and involve the implementation ofdisaster response training and evacuation training based onearthquake or tsunami scenarios• ‌Individual training: Training for the individual self-directeddisaster response organization disaster response teams, andreporting training

Establishment of the “Safety Workshop”
A “Safety Workshop” has been established at theMizushima Plant, at which employees can acquire practicalexperience in the various types of safety rules. Using the“Factory Safety Rules Understanding Verification Sheet” drawn
up in accordance with the “Standards Governing Usage of theMizushima Plant Safety Workshop,” activities are conductedto check employees’ level of understanding of safety rules;
in addition, activities are held that make use of education
based on the exhibits in the Safety Workshop to deepen
understanding of factory rules among factory personnel(including the personnel of partner companies).

Display in the Safety Workshop showing how to use scaffolding

Adoption of hands-on safety education
The hands-on safety education program that was launched
in FY 2014 at the Kawasaki Plant was expanded in FY 2015
to include the Tokuyama Plant, the Mizushima Plant andthe Takaoka Plant, providing education for research facility
staff, the staff of partner companies that perform work inside
Zeon facilities on a long-term basis, and the employees ofneighboring Zeon Group companies. The hands-on safety
education provided in FY 2017 covered accidents in which
employees are caught or trapped by machinery, electrostatic
explosions and burns, shocks from residual pressure incouplers, accidents involving objects falling, and accidents
involving loose or cut safety belts.
In the future, we will continue to implement this type of
education systematically, including repeat education.

The hands-on safety education covering the dangers of getting caught in a roller

28
CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Overview of Environmental Impacts
We procure raw materials for chemical substances, and consume energy and water resources in the production and sales ofour materials and chemical substance products. While emitting substances that impact water and atmospheric environments is
unavoidable in product manufacturing, we are implementing an ongoing cycle of improvements to minimize these emissions.

INPUTOUTPUT

EnergyProducts

Head Office228,000 kL (crude oil equivalent)
Handled amount of substances
subject to the PRTR Act
885,000 tons
Water resources
18,266,000 m

3

1,671,000 tons

Takaoka Plant
Atmospheric emissions

Kawasaki Plant
Tokuyama Plant
Mizushima Plant

Substances subject
to the PRTR Act

25 tonsCO₂

577,000 tons

SOx

796 tons

NOx

324 tons
Water discharges

R&D Center

Total wastewater
discharge

15,928,000 m3

COD

137 tons

Total nitrogen

153 tons

Total phosphorus

1.7 tons

Industrial waste
Final landfill disposal
Recycled materials

1.9 tons
14,572 tons

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CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Targets and Results
The targets and results of our environmental conservation initiatives as part of our Responsible Care activities are as follows.
Enterprise Blueprint for 2020
To meet the expectations of society

Details of current activities(■: Completed, △: Ongoing)

Pollution prevention‌emissions of hazardous△ Reduce
substances, industrial waste, and impacts
Climate change mitigation and adaptation
on atmospheric and water environments• ‌All plants receive public recognition for their
Improve‌energy conservation in△environmental impact reductions
Responsible Care audits, the Safety• ‌Proactively enhance awareness and makeManagement System, the Environment
further improvements in the areas of theManagement System based on ISO
environment and energy conservation
14001, and the Energy Conservation
through comprehensive education
Implementation Committee

Climate change mitigation and adaptation• ‌Products with reduced environmentalload continue to be developed andlaunched in the market

Future initiatives and targets
1. ‌Conduct environmental management using
the multiple systems noted on the left
2. ‌Implement activities companywide to
reduce environmental load
3. ‌Identify energy-saving measures andimplement them on an ongoing basis
4. ‌Conduct risk assessments of hazardous
chemical substances

FY 2017 results¡Zero environmental incidents¡Environmental impact reductions• ‌Per-unit energy consumption: +6%• ‌Per-unit CO2 emissions: +11%

Targets¡Zero environmental irregularities¡Environmental impact reduction targets• ‌Per-unit energy consumption: -1% average
per year• ‌Per-unit CO2 emissions: -1% average peryear■ ‌Develop S-SBR for fuel-efficient tire, lowtemperature toners, ZEORORA® with zero
ODP, and binders for lithium-ion batteries

1. ‌Research and development,
manufacturing, and sales that addressenvironmental issues faced by society

There were no environmental irregularities in FY 2017.
We are taking steps to continue reducing our per-unit energy consumption and per-unit CO2 emissions by an average of 1% per
year.

30
CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Economic Indicators of Environmental Performance(Environmental Accounting)
We began introducing environmental accounting into our operations in FY 2000 in accordance with the Guidelines for Introducing
an Environmental Accounting System (Ver. 2000) published by Japan's Ministry of the Environment (MOE), and have released
environmental accounting statements since the 2001 edition of the Responsible Care Activity Report. This CSR report presents
key data from our environmental accounting statements in FY 2017 as recommended in the Environmental Accounting Guidelines
2005 (MOE), Environmental Accounting Guidelines for Chemical Companies (JCIA, 2003), and Environmental Conservation Cost
Categories 2003 (MOE).
Scope: Zeon Corporation in Japan (Zeon Head Office, Takaoka Plant, Kawasaki Plant, Tokuyama Plant, Mizushima Plant, R&D Center);
Period: April 1, 2017 to March 31, 2018

Environmental Conservation Costs
Environmental Conservation Expenses
We are developing technologies to minimize theenvironmental impact of our wastewater and reduce theamount of residual volatile substances in our products. We arefocused in particular on developing technologies, designingequipment, and standardizing operating procedures to reduce
emissions of butadiene and acrylonitrile, both hazardous air
pollutants, and to reduce the environmental impact of ourwastewater based on such parameters as total nitrogen (TN)and chemical oxygen demand (COD).
We are also working to develop eco-friendly products andinnovative, energy-efficient processes.
Environmental conservation costs

FY 2017 (million JPY)

Category

Investment
amount(1) Costs within the business area

Expense

372

2,464

• Pollution prevention costs

223

1,705

• Global environmental protection costs

Economic Effects
We strive to use oils and other byproducts from our
production and manufacturing processes in economicallyeffective ways such as converting them to fuel and recycling
them, or by other means. We are also working to recycle themetal resources in empty drums and containers. To conserve
energy, we recover heat generated in heat-intensive distillation
processes.

Economic Effects Resulting from Environmental
Conservation Measures
Effects

Unit: million JPY

Cost reductions from energy savings

10

Cost reductions from reducing emissions,recovery, and reuse of solvents and catalysts

2,287

Total

2,297

Breakdown
149

192• Resource recycling costs

0568(2) Upstream and downstream costs00(3) Management costs

35

145

(4) R&D costs

58

1,617

(5) Social activities costs

039(6) ‌Environmental damage
response costs

0

65

466

4,330

Total

Environmental Conservation Outcomes
Environmental Conservation Outcomes (Physical Outcomes)
Environmental impact indicators

FY 2017
results

Compared
to FY 2016

SOx emissions (tons)

796

+191

NOx emissions (tons)

324

+50

COD emissions (tons)

137

+18

CO2 emissions (tons)

576,817+91,186

Industrial waste sent to landfills (tons)

1.9

+0.2

Total emissions of substances
subject to the PRTR Act (tons)

25.2

-2.2

Environmental and Safety Investment
In addition to environmental investment related to facilities
to prevent pollution and conserve energy and resources, we
strive to improve safety through ongoing safety investment
aimed at improving safety and eliminating hazards.
Unit: million JPY
Environmental conservation

334

Safety related

2,359

Total

2,693

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CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Greenhouse Gas Emission Reductions and Energy Conservation
Initiatives to Reduce Greenhouse Gas (CO2) Emissions
By FY 2020, we aim to reduce CO2 emissions from fuels
defined in Japan’s Act on the Rational Use of Energy (“Energy
Conservation Act”) to 80% of FY 1990 CO2 emissions
levels. We added CO2 emissions reduction outcomes to theevaluation parameters of ZΣ* in FY 2010, and are working to
reduce CO2 emissions companywide.
In FY 2017, annual CO2 emissions totaled approximately
576,000 tons, which exceeded the target.
*ZΣ:
Initiatives to improve our corporate soundness that require the full mobilization ofZeon Group capabilities. These initiatives used to be called “ZΣ Activities,” but after
evolving and becoming established, they are now simply referred to as “ZΣ.”

Initiatives to Conserve Energy
In FY 2017, we consumed energy equivalent to burning
approximately 228,000 kiloliters of crude oil, or 64% of our
FY 1990 baseline. We plan to improve our per-unit energy
consumptions indicator* by an average of 1% per year going
forward.
In FY 2009, we achieved the JCIA target (for FY 20082012) of per-unit energy consumptions indicator of 80% of the
FY 1990 baseline, and have maintained this level through FY
2017. Since FY 2010, we have been implementing a plan to
improve our average annual per-unit energy consumptions by
1% per year.
*Per-unit energy consumptions indicator:
‌Guideline for making energy-efficiency comparisons. Here, energy-efficiency
comparisons use FY 1990 as the baseline. (FY 1990=100)

Change in CO2 Emissions
Emissions(1,000 tons)

700

Energy Consumption and Per-unit Consumptions Indicator

600

Usage
(1,000 kL)

Per-unit

300

110

500
400

517,803 506,348

552,940

576,817
485,631250

Target line (80% of the FY 1990 value = 509,000 tons)

300

200

200

150

100
0

100
2013

2014

2015

2016

2017

FY

194

193

215

194

90

Target (80% of FY 1990)
63

61

65
60

50
0

100

228

2013

2014

2015

Energy consumption(crude oil equivalent, 1,000 kL)

2016

80
70

64

60
2017

FY

50

Per-unit energy consumptions
indicator (FY 1990=100)

32
CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Chemical Substances Management
PRTR Initiatives Chemical Substances

Atmospheric Emission Reductions of Hazardous

We are implementing companywide initiatives to reducerelease and transfer of substances subject to Japan’s PRTRAct.

We are systematically reducing emissions of butadiene andacrylonitrile, which are among the substances requiring priority
action under the Japan’s Air Pollution Control Act.

Release and Transfer Volumes of Substances Subject to
the PRTR Act (FY 2017)

Butadiene Emissions

Amount released
into atmosphere:(25.2 tons)

Total release volume(25.2 tons)

Amount released
into water:(0)
Release andTransfer Volumes
Total(369.3 tons)

Amount released
into soil:(0)

Total transfer volume(344.1 tons)

Transfer volume:(344.1 tons)
Amount to landfill:(0)

Release of Substances Subject to the PRTR Act

33.5

5.0
4.0

3.7

3.3

3.0
2.0
1.0
0

2013

2014

2015

2016

2017

4.1

4.0

2016

2017

FY

15

36.7
30.1

11.7
27.4

25.2

11.9

10

20

5.5

5

10

2013

3.2

2.7

Atmospheric emissions(tons)

30

0

3.6

Acrylonitrile Emissions

Amount of release(tons)

40

Atmospheric emissions(tons)

2014

2015

2016

2017

FY

0

2013

2014

2015

FY

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CSR REPORT
2018

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Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Detailed Release and Transfer Volumes of Substances Subject to the PRTR Act (FY 2017, 4 plants + R&D Center)
Government
designatedno.

Substance

Handledamount(tons)

Released into Released into
Total
atmospherewater
release volume(tons)(tons)(tons)

Transfer
volume(tons)

2

Acrylamide

87.9

0.0

0.0

3

Ethyl acrylate

1,885

5.3

0.0

0.0

4

Acrylic acid and its water-soluble salts

58.6

0.0

0.0

6

2-Hydroxyethyl acrylate

24.0

0.0

0.0

7

n-Butyl acrylate

2,634

1.4

0.0

1.4

13.0

8

Methyl acrylate

17.3

0.3

0.0

0.3

0.0

9

Acrylonitrile

29,840

4.0

0.0

4.0

0.0

13

Acetonitrile

1.6

0.0

0.0

0.0

20

2-Aminoethanol (monoethanolamine)

6.6

0.0

0.0

0.0

28

Allyl alcohol

0.0

0.0

0.0

0.0

29

1-Allyloxy-2,3-epoxypropane

21.9

0.0

0.0

0.4

30

n-Alkylbenzenesulfonic acid and its salts (alkyl C=10-14)

1,364

0.0

0.0

36

Isoprene

167,537

2.4

0.0

2.4

0.1

0.0

0.0

5.3

0.0
0.0
0.0

0.0

53

Ethylbenzene

43.5

0.0

0.0

56

Ethylene oxide

860

0.0

0.0

59

Ethylenediamine

4.8

0.0

0.0

0.0

60

Ethylenediamine tetraacetic acid

17.0

0.0

0.0

0.0
0.0

0.0

65

Epichlorohydrin

0.0

0.0

0.0

68

1,2-Epoxypropane

30.2

0.0

0.0

80

Xylene

2,200

0.2

0.0

0.2

2.4

134

Vinyl acetate

162

0.1

0.0

0.1

0.0

0.2

190

Dicyclopentadiene

202

Divinylbenzene

131,428

0.2

0.0

6.0

0.0

0.0

0.0

1.1
0.0

203

Diphenylamine

4.8

0.0

0.0

207

2,6-Di-tert-butyl-4-cresol

308

3.8

0.0

3.8

0.0

0.0
0.0

0.0

218

Dimethylamine

0.3

0.0

0.0

220

Water-soluble salts of dimethyldithiocarbamic acid

20.9

0.0

0.0

230

N-(1,3-Dimethylbutyl)-N’-phenyl-p–phenylenediamine

41.0

0.0

0.0

232

N,N-dimethylformamide

150

0.0

0.0

0.0

1.5

240

Styrene45,734

0.6

0.0

0.6

32.1

243

Dioxins

0.0

0.0

0.0

0.0

259

Tetraethylthiuram disulfide

14.2

0.0

0.0

0.0

0.0
0.0

274

Tert-dodecanethiol

939

0.0

0.0

277

Triethylamine

19.3

0.0

0.0

0.0

296

1,2,4-Trimethylbenzene

261

0.0

0.0

0.0

297

1,3,5-Trimethylbenzene

300

Toluene

261

0.0

0.0

3,198

0.1

0.0

0.0

2.1

0.0
0.1

133.5

0.1

57.7

302

Naphthalene

328

0.0

0.0

308

Nickel

65.9

0.1

0.0

0.0

309

Nickel compounds

84.9

0.0

0.0

333

Hydrazine

0.2

0.0

0.0

338

2-Vinylpyridine

78.7

0.0

0.0

0.0

0.0

349

Phenol

95.8

0.0

0.0

0.0

0.0

3.2

84.9
0.0

351

1,3-Butadiene487,173

3.2

0.0

355

Bis (2-ethylhexyl) phthalate

114

0.0

0.0

0.0

392

n-Hexane

434

2.1

0.0

395

Water-soluble salts of peroxodisulfuric acid

137

0.0

0.0

400

Benzene

4,397

0.0

0.0

407

Polyoxyethylene alkyl ether

59.5

0.0

0.0

0.0

408

Polyoxyethylene octylphenyl ether

5.4

0.0

0.0

0.0

410

Polyoxyethylene nonylphenyl ether

14.3

0.0

0.0

0.0

411

Formaldehyde

0.0

0.0

0.0

0.0

0.0
2.1

15.3

0.0

0.0

0.0

414

Maleic anhydride

95.6

0.6

0.0

0.6

0.0

415

Methacrylic acid

2,283

0.9

0.0

0.9

0.0

417

2,3-Epoxypropyl methacrylate

6.9

0.0

0.0

0.0

420

Methyl methacrylate

394

0.0

0.0

0.0

436

α-Methylstyrene

227

0.0

0.0

0.0

The PRTR Act specifies amounts in kilograms to two significant figures; however, this report specifies amounts in tons.
0.0 indicates less than 0.005 tons. Dioxins are expressed in units of mg-TEQ.

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CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Air, Water, and Waste Materials
Initiatives to Prevent Air and Water Pollution
We are working to reduce emissions of air pollutants through the adoption of heavy oil with low sulfur (S) content and conversion
to liquid natural gas (LNG).
The quality of our plant wastewater complies with the standards of the Water Pollution Prevention Act and agreements with local
authorities (voluntary management standards).

SOx Emissions

NOx Emissions

Amount of release(tons)

Amount of release(tons)

1,000

400

600

324

796

800
624
476

300

605

509

272

274

241

253

2014

2015

2016

119

119

119

2014

2015

2016

200

400
100

200
0

2013

2014

2015

2016

2017

FY

Total Wastewater Discharge

0

2013

FY

COD Discharge

Amount of release(million m3)

Amount of release(tons)

20

150

18
16

2017

16

16

129

16

15

137

100

10
50

5
0

2013

2014

2015

2016

2017

FY

Total Phosphorus Discharge

0

2013

Amount of release(tons)

3.0

200
2.4

158
1.6

1.5

1.6

1.7

153

142
124

1.7
100

1.0

50

0.5
0

167

150

2.0

FY

Total Nitrogen Discharge

Amount of release(tons)

2.5

2017

2013

2014

2015

2016

2017

FY

0

2013

2014

2015

2016

2017

FY

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CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Waste Reductions
In terms of reducing the amount of industrial waste destinedfor final landfill disposal, Zeon Corporation worksites aremaintaining a record of zero emissions (less than 0.1% of theindustrial waste generated in FY 2007) since achieving thistarget in FY 2011.
Zeon Group companies had a final landfill volume ofmore than 600 tons in FY 2007, but since FY 2012 this has
been reduced to around 10 tons, or roughly 0.4% of theindustrial waste generated in FY 2007. This is considered zero
emissions.
We aim to maintain a final landfill volume of 5 tons or less,the same as at Zeon Corporation worksites.

Final Industrial Waste Disposal at External Landfills
Landfill disposal volume(tons)

8
6.5

6
4
2
0

3.5

1.3

2013

2014

2015

1.7

1.9

2016

2017

FY

Chemical Product Safety Information
We collect and provide safety information on our chemical products. We also conduct hazard assessments.

Information for the Proper Handling of Chemical Products
We produce Safety Data Sheets (SDS) for all Zeon
products. SDS provide information including GHS*1
classification results, product hazards, and cautions forhandling, etc.
For some of our products, we disclose safety-related
information in the form of safety abstracts, which are releasedon the GPS/JIPS*2 website (ICCA GPS Chemicals Portal Site).
*1 GHS
Globally Harmonized System of Classification and Labelling of Chemicals*2 GPS/JIPS
Global Product Strategy / Japan Initiative of Product Stewardship. GPS is a newvoluntary initiative related to the management of chemicals, promoted by theInternational Council of Chemical Associations (ICCA). In Japan, the Japan Chemical
Industry Association (JCIA) promotes GPS under the IPS and encourages member
companies to participate.

Participation in Voluntary Chemical Industry Initiatives
Zeon provides financial support for research activities
by the LRI*3 involving chemical substance hazard reviews,
safety evaluations, and environmental impact surveys. Asa member of the Far East Section of the IISRP*4, Zeon also
participates in investigations of environmental issues, reviewsof countermeasures, and activities to implement them.
*3 LRI
Long-range Research Initiative: Activities to provide long-term support for researchon the impact of chemical substances on health and the environment. A program
under the auspices of the International Council of Chemical Associations (ICCA) thatis carried out with funding from LRI member companies and in cooperation withthe chemical industries of Japan, the United States and Europe (specifically, theJapan Chemical Industry Association, American Chemistry Council and European
Chemical Industry Council).
*4 IISRP
International Institute of Synthetic Rubber Producers

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CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Environmental Protection and Safety in Logistics
To more effectively use and recycle resources, we arepromoting recovery and recycling of wood, resin, and metal
pallets and containers used to transport various goods. We
also use a large number of recycled resin transportation
pallets.
Zeon has for some time now been working to promote theeffective utilization of resources and implementing measures
to reduce the environmental footprint of logistics operations,for example by reducing the weight of metal box pallets (byapproximately 7%) and promoting the recovery of metal box
pallets from overseas, as well as implementing flexible bag
recovery.

Compliance with the revised Energy Conservation Act
As a specified consigner under the revised Energy
Conservation Act, we are working to rationalize the use ofenergy together with partner companies involved in productand raw materials transportation. To date, we have studied
and implemented improvements in loading efficiency, modal
shift to rail and ship transportation, and truck and ship fuelefficiency.

Safety Initiatives in Logistics
At Zeon, we established Yellow Card Management Rules fortransporting hazardous products. These rules require drivers
to carry a Yellow Card* when transporting such products.
We also conduct reporting and communication training fordrivers, and each plant offers training on product handling toprevent accidents in logistics.
*Yellow Card
Document describing what to do if an accident occurs during transportation, asestablished by the Logistics Safety Management Policy of the Japan Chemical
Industry Association. The document is called a Yellow Card because it is printed on
yellow paper.

Lightweight metal box pallet

Folded pallets after use

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CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Labor Practices
Basic Approach and Initiatives		
P. 37
Targets and Results			
P. 38
Employment and diversity			P. 40
HR development				P. 42
Human Resources System			P. 45
Creating Working Environments
That Protect Health			P. 47
Occupational Safety			
P. 50
Safety and Accident Prevention		
P. 51

Basic Approach and Initiatives
Aiming to ensure that Zeon is “A company of which each and every one of its employees can be proud”
In our CSR Code of Conduct, we stipulate respect for human rights and prohibit discrimination. We strive to be a company that
understands and accepts diverse values, and where no person is discriminated against based on gender, age, nationality, or otherattribute.
Based on this policy, we aim to enable every employee* to work with pride by cultivating employees able to continually evolveby pursuing high goals based on independent thinking, building a human resource system in which employees take on challenges
without fear of failure and gain a sense of accomplishment, and creating a comfortable workplace environment that values dialogue.
*At Zeon, “employees” refers to all workers including full-time and part-time workers.

Zeon—A company of which each andevery one of its employees can be proud
Encourage employees tocontinually evolve by
pursuing high goals basedon independent thinking

Human resource system
in which employees takeon challenges without fearof failure and gain a senseof accomplishment

A comfortable working
environment thatvalues dialogue

Promoting diversity
Respect for human rights, prohibition of discrimination

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CSR REPORT
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Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Targets and Results
We have set Enterprise Blueprint for 2020 targets in each area of activity and are conducting initiatives needed to achieve our goals.
Enterprise Blueprint for 2020
To meet the expectations of society

Employment• ‌Equal employment opportunities are
ensured. (employment)

Details of current activities(■: Completed, △: Ongoing)△ ‌Set a numerical target for women new
graduate hires‌of non-Japanese employees (mid△ Hiring
career employees, exchange students)‌
re-employment system for△ Expanding
employees reaching the age of mandatory
retirement

Future initiatives and targets
1. ‌Further expand employment not tied togender, nationality, race, age, disability, orother attribute
2. ‌Build a supply chain CSR survey databaseof labor practices at business partners

FY 2017 results
No. of employees rehired after mandatory
retirement: 17 (94.4%)
Labor conditions and social protections• ‌Workplaces are re-energized by promoting
diversity and the fair and equitable
treatment of personnel (appointments)‌
implement HR systems△ Appropriately‌for employee skills and career△ Support
development△ ‌Harassment prevention‌Committee activities by women△ MD
members (including dialogue between
senior managers and women employees)‌of employment for people△ Implementation
with disabilities

1. ‌Promote diversity-oriented management• ‌Appoint more women employees to higher
positions• ‌Appoint more employees who are nonJapanese nationals to higher positions• ‌Advance employment of older persons• ‌Create a systematic professional
development system

FY 2017 results
Percentage of employees with disabilities: 2.07%
Labor conditions and social protections• ‌Promote work-life balance (harmony
between work and life) to enable people towork while also caring for children and/or
sick families

1. Further‌pursue dynamic work styles■ ‌Introduce flex-time systems(Promote taking annual paid vacation)■ ‌Develop a shortened work-hours systemfor childcare and family caregiving‌ raft the general employer’s action plan■D
under the Act on Advancement of Measures
to Support Raising Next-Generation Children
and implement related notifications toacquire the Kurumin mark in Japan△ ‌Childcare support systems (shortened
working hours, overtime restrictions andexemptions, sick care leave, breast feeding
time, etc.)△ ‌Return-to-work program for employees
taking childcare and caregiving leave△ ‌Reduce long working hours△ ‌Implement a work-from-home system on a
trial basis

Occupational health and safety
1. ‌Promote improved physical and mental△ ‌Include health management in top policy
and take steps to maintain and improve thehealth for all employees, who are the• ‌Policies for managing workplace healthphysical and mental health of employees
source of the company’s strengthand safety and the health of employees
have been strengthened, work hours are• ‌Conduct mental health education and run a• Enhance‌mental health education
appropriately managed, and the number ofcommittee for determining returning to work • Implement‌company policies and create
people reporting physical and mental health • Ensure‌labor hours management andconditions for better health and well-being
issues is declining significantly.
prevent excessive work
• ‌Rate of abnormal results in routine physical • Encourage‌leaving work on time and taking
exams is at or below standardof annual paid vacation• Detect‌changes in health early throughstress checks• Provide‌
guidance to prevent lifestylediseases

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CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Enterprise Blueprint for 2020
To meet the expectations of society

Occupational health and safety• ‌Increased trust in Zeon to protect local
communities’ safety and security byconducting emergency drills and otherinitiatives such as concluding disastercooperation agreements• ‌All worksites have earned public trustby maintaining a safety record of zeroincidents and accidents.

Details of current activities(■: Completed, △: Ongoing)‌the Safety Management△ Implement
Improvement Master Plan‌△ Fully implement deterioration countermeasuresand identify measures to prevent errors, andhorizontally implement measures arising fromcases of accidents at other companies andplants△ ‌Eliminate safety incidents: Regularly
conduct plant safety evaluations and audits△ ‌Eliminate occupational accidents△ ‌Improve safety in logistics△ ‌Conduct comprehensive emergencyresponse drills and monthly drills by ourself-defense emergency response teams■ ‌Conclude cooperation agreements withlocal governments (Cooperative Agreementfor Disaster Prevention in Industrial
Complexes)△ ‌Participate in community disaster readinessactivities

Future initiatives and targets
To improve safety capabilities
1. ‌Conduct four safety activities (“4R-KY”)
at all Group companies (supply chain
development)
2. ‌Reinforce specified sources of hazards toprevent safety accidents
3. ‌Enhance dialogue activities on safety, theenvironment, and quality with regional
companies
Targets¡Plant safety evaluations conducted 100%
¡Implement RC audits (once/year or more
for all 4 plants) ¡Eliminate safety incidents:
0 safety incidents ¡Eliminate occupational

accidents: 0 occupational accidents resulting
in lost work time ¡Zero serious accidents
without lost work time ¡Improve safety inlogistics: 0 accidents in logistics ¡Implement
the above guidelines at Group companies

FY 2017 results¡Plant safety evaluations conducted 100%
¡Implement RC audits conducted (once/year
or more for all 4 plants) ¡Eliminate safetyincidents:
2 safety incidents ¡Eliminate occupational
accidents: 2 occupational accidents resulting
in lost work time ¡Zero serious accidents
without lost work time ¡Improve safety inlogistics: 0 accidents in logistics
HR development and training at
workplaces• Have‌proactively enhanced awareness andmade further improvements in the areas ofhealth and safety through comprehensive
education‌
training to enhance accident△ Provide
prevention awareness (4 plants, 1 Group
company) (e.g., education using accident
case studies, hands-on training)‌
the 5S’s R 3S’s
△ Promote1. ‌Conduct safety education companywide(supply chain development)
2. ‌Implement the 3S’s companywide (supply
chain development)

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CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Employment and diversity
Zeon Group respects diversity, and strives to be a company in which everyone in our diverse team of employees is able to fully
demonstrate their capacities. Our employees today have a wide range of backgrounds and play an active role regardless of gender,
age or nationality.

Basic Information
Basic Information on Zeon Corporation Employees(non-consolidated, does not include non-permanent employees)
Men
No. of employees

Women

Total

1,402

198

1,600

Recentgraduates*1

28

10

38

Mid-careerhires*2

9

3

12

Average years of service

16.16

12.92

15.76

No. of newhires

As of March 31, 2017 (excluding those who left the company as of the end of March)
Includes 20 non-Japanese employees (9 men and 11 women)*1 Employees that joined the company in April 2017
*2 Mid-career hires that joined the company between April 2017 and March 2018

Hiring
The Zeon Group hired 67 recent graduates of high schools,
technical colleges and universities in FY 2018.

Employment of people with disabilities
In FY 2017, 2.07% of Zeon Corporation’s employees werepeople with disabilities, about the statutory minimum of 2.0%.
We will continue to expand employment for people
with disabilities while exercising the utmost care for safety,
particularly at our laboratories and plants, which handle
hazardous materials and use rotating and other industrial
equipment to manufacture chemicals.
Percentage of Employees with Disabilities
（%）

2.5

2

2.18

2.04

2.23

2.20

2.07

(Legal requirement: 2.0%)

1.5
1
0.5
0

June 2013 June 2014 June 2015 June 2016 June 2017

Re-employment of employees who havereached mandatory retirement age
Zeon has adopted a re-employment system (the “Master
System”) that allows motivated and skilled employees who
have reached mandatory retirement age to continue working.
In FY 2017, 17 out of 18 employees (94.4%) who reached the
mandatory age of retirement continued to work for the Zeon
Group.

Advancement of women
Established in January 2009, the MD Committee has now
been in operation for eight years. In FY 2017, the Committee,
consisting of 58 female employees from across the company,
promoted MD activities based on two “C’s” (CSR and Cost
reduction) and two “MD’s” (“muda-dori” and “mudo-dukuri,” orwaste-cutting and atmosphere creation in English). In addition
to waste-cutting proposals that can be directly measured inmonetary terms, the Committee is also conducting initiatives toimprove the work environment and facilitate communication,and is steadily promoting innovative activities in plants andother workplaces.
We have established targets to increase the number offemale employees as part of our General Employer Action Plan
based on the Act on Promotion of Women’s Participation andAdvancement in the Workplace.
We position the advancement of women in the workplaceas the first step in promoting diversity at Zeon. As such, weare developing a range of measures to enable women tocontinue working and advance their careers, including holding
workshops and expanding the adoption of systems that offer
flexible working styles.

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CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Zeon Corporation’ General Employer Action Plan (based on the Act on Promotion of Women’s Participation andAdvancement in the Workplace)
We have established the following action plan to create employment conditions that allow women to continue working and bepromoted to managerial positions.
1. Plan implementation period April 1, 2018 to March 31, 2021
2. Zeon Corporation’s issue We want to increase the number of female employees.
3. Goals and initiatives, and implementation time-frame
Target 1:
Achieve 30% women hires among new graduate hires		‌Starting in FY 2018, we will be holding recruitment seminars that focus on women’s work-styles.
Target 2:
Conduct career plan workshops
		‌Starting in FY 2018, we will be using career planning to strengthening women’s motivation to develop their careers.
Target 3:
Increase understanding for diversity management		‌Starting in FY 2018, we will be conducting an educational program for managerial level employees to promote
understanding of diversity.

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CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

HR development
Encourage employees to continually evolve by
pursuing high goals based on independent thinking

Basic Philosophy on Human Resources
Tap into, develop, and fully use the competencies ofeach employee.

Education and Training Framework
Education and training at Zeon is broadly divided into
core and specialized programs. The core program is for all
employees, and focuses primarily on developing awarenessof Zeon’s management philosophy, building a cooperationoriented attitude, and acquiring shared knowledge. We
also provide specialized education to develop the work
competencies needed in specific occupations company ranks,
as well as on-the-job training conducted at worksites.

Zeon’s concept of “being the worker I want to be”
embodies “people who continually evolve by pursuinghigh goals based on independent thinking.” Personnel areencouraged to set goals to become the worker they want tobe, and we are modifying our education and training systems
to allow them to bridge the gap between the current reality
and their goals and facilitate goal-driven actions on a daily
basis. By fairly evaluating what employees have accomplishedand rewarding them accordingly, we aim for them to set evenhigher goals. With every personnel continuing to improve anddemonstrating this in actions, we can create an even morecapable workforce across Zeon.

Management training

HR development at Zeon
Performancebased reward

The worker
I want to be(higher goals)

The worker
I want to be

Education &training

Evaluation

Actions &results

Education &training

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CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Education & Training System

Rank

Mid-careerstaff

Mid-career
staff

Newlyrecruitedemployees

Newlyrecruitedemployees

Zeon’s Ippeki Training Facility
We opened the Ippeki Training Facility in 1981 to create avenue that allows employees to concentrate on their educationand training, so as to improve their qualifications and skills.
Employees come to the training site from our worksites
throughout Japan for intensive education and training, andalso form personal relationships over the course of staying
at the site together with the instructors and other training
participants.

Occupation-based Specialized EducationManufacturing Duties (Production Operators)
We established the Monozukuri (Product Manufacturing)
Training Center in 2009 as an educational facility for all
manufacturing operatives; its goal is to develop humanresources to support production innovations in pursuit ofensuring safe and reliable production activities. To cultivate
operatives who understand and follow the rules and make
improvements on their own, the Center has a simulated plant
where trainees practice basic operations and basic processes
in addition to acquiring foundational knowledge.
New employees take the beginner-level training program

On-the-job
training

Transferring technical knowledge,
partnering with off-site educational programs

Deputymanagers

Research, technology,
clerical work, sales, planning and control,
manufacturing, engineering

Deputymanagers

Training staff for working abroad, TOEIC,
studying abroad,
MOT, MBANew
managers

Online educational courses, andsupport for obtaining qualifications

Managers

Information system, accounting,
CSR, compliance,
environmental safety, quality assurance, production

Business leadershipeducation

Managers

Leadership
OccupationProfessional
development Rank-based
SelfGlobal talent
basedskills (allandeducation
improvement education
specialized
levels)education
education

during their first to third years of employment. During the
program, they stay in the company dormitory to foster
friendships and build solidarity with their coworkers while
keeping a regular schedule. The curriculum at the Monozukuri
Training Center includes both a basic program, consistingof classroom lectures and tests, and a training program at
our training plant. The training at the simulated plant teaches
trainees how to operate, monitor, and stop machinery. The
training sessions are repeated until trainees become wellacquainted with basic operations (identifying and pointing
out items to be checked, reporting, maintaining open
communication, consulting supervisors, and detecting
hazards) and basic processes (such as work safety procedures
common to all worksites). Trainees also have opportunities
to learn the reasons why operations are done the way theyare. Tests are given the day after classroom lectures so thattrainees can review what they learned the previous day. One
trainee is selected to help administer the curriculum in aleadership position. This training system aims to accomplish
several objectives at the same time, namely skills acquisition,
developing independent thinking, and building leadership skills
and a spirit of cooperation. Various means are employed toensure that trainees take the training program seriously, suchas issuing yellow cards to trainees who do not follow company
rules.

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Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

We have also introduced the “Foster” system, in which
trainers (“Fosters”) separated from the new employee
instructors engage in training individual new employees forthe purpose of making product manufacturing training aroutine aspect of worksites. While we expect manufacturing
operatives to work on their own personal development,

we have introduced the “Foster” system to create an HR
development framework in which all worksite employees,
including senior staff members and supervisors, participate
in HR development. Another purpose of the program is for“Fosters” to achieve personal growth through instructing junioremployees.

Manufacturing Section Foster System Framework and Definitions of Roles
Manufacturing Section
managers
Manufacturing Section
education supervisor

Manufacturing FM■Foster Leader (Integrated CF or CF)
Person responsible for integrated management ofdeveloping the proficiency of group members

Integrated CF or CF= Foster Leader
Grade 2
Operative

Grade 3
Grade 4

FosterFoster*Multiple personnels may be placed as fosters on
a new employee group or team

Grade 5New
employee

What is a “Foster”?
We foster talent that can do work.
We foster talent that can do work.
➡ Performing the role of training group members.

New employee
instructor■Foster
Person providing and tailoring on-the-job and offthe-job instruction according to the proficiency level
management documentation■New employee instructor
Person responsible for developing and instructing new
employees in their first year of employment until they can
perform their duties independently

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CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Human Resources System
A Human Resources System in Which Employees Takeon Challenges and Gain a Sense of Accomplishment
At Zeon Corporation, we believe that our competitivenessderives from the sum total of the capabilities of our individual
employees. We strive to create a human resources systemthat provides employees with a sense of accomplishment bygiving them opportunities to challenge themselves to achieve
ambitious goals within the shared goals of the organizationand to have their performance reflected fairly in their pay andemployment conditions.

Performance
evaluation system

Performance-linked
bonus system

Human resources
system in which
employees take onchallenges and gain asense ofaccomplishment

Awards system
Compensation
systemfor inventions

Performance Evaluation System
Recognizing that a perfect score is impossible in apersonal performance evaluation system where people rateeach other, we are providing training to all evaluators andevaluated personnel to maintain and improve their evaluationcompetency.
At Zeon Corporation, we have placed priority on gaining
understanding and acceptance for evaluation results.
Expectations, required work and performance targets are
made clear to all employees at the beginning of the evaluation
term, and are shared among superiors and subordinates. At
the end of the evaluation term, we perform fair evaluations ofwork and performance (i.e. contribution to the organization)with the aim of shaping a corporate culture filled with a senseof accomplishment and aspiration (i.e. a spirit of challenge andcreative motivation).
We will continue our efforts to create an open and fair
performance evaluation system that encourages employees
to realize more creative work with added value and that
distributes opportunities and rewards in a fair manner.

Retirement
package system

Master system

Performance Evaluation Flowchart
Present theorganization’s goals
Primary evaluator

Set targets

Interim period(observe the degreeof growth)

Record targets

Confirm targets

Review targets

EvaluateePrimary evaluator

Evaluation meeting

Share targets

Decide on targets

Supervisor→Employee

Primary evaluator

Milestones

Milestone management

Supervisor↔Employee

Primary evaluator

Record performance

Primary evaluation

Secondary evaluation

Company-widelevel adjustment

EvaluateePrimary evaluator

Evaluation meeting

Human Resources

Feedback

Feedback

Feedback

Supervisor→Employee

Primary evaluator

Secondary evaluator

Performance
evaluation

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CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Performance-linked Bonus System

Retirement Package System

Since 2000, Zeon Corporation has adopted a bonus systemthat is linked to performance. The bonus is determined basedon three types of performance: company-wide, division, andindividual performance. As with the performance evaluation
system, we view bonuses as a means of giving employees
a sense of accomplishment by reflecting their performance
fairly in their compensation when they challenge themselvesto achieve ambitious goals individually, as a team, and as anorganization.

Zeon Corporation provides retirement packages anddefined-contribution (DC) pensions. The retirement package
takes into account the last 10 years of performance
evaluations before mandatory retirement and reflects theresults in a lump-sum payment upon retirement, with the
expectation that employees will remain motivated and feel asense of accomplishment right up until mandatory retirement.
The defined-contribution (DC) pension system includes
contributions from the company that can be matched by
employee contributions, and is one means of accumulating
assets for after retirement.

Award System (Zeon Challenge Award)
Our awards programs include the Employee of theMonth award, the winners of which are selected by division
managers each month, and the annual Zeon ChallengeAward (President’s Award), for which individual employees
and divisions define a specific challenge at the start of theyear and are judged on their progress toward meeting thatchallenge. The Zeon Challenge Award presentation ceremony
is broadcast to all sites via videoconferencing system to allow
as many people as possible to participate each year. Highperforming departments and individuals who narrowly missreceiving the Zeon Challenge Award are eligible, based on theiraccomplishments, for the Outstanding Achievement Award
from the President and Division Manager’s Award from thedivision manager.

(Awards)

18

16
13
12

11

10

14

8

8

6

4

2

2
2

2013

2014

4
0

Division Manager’s
Award

1

We are continuously working to create new technologies
based on our Basic R&D Philosophy: Contribute to society bycreating world-leading businesses through developing unique
technologies in the specific fields in which Zeon excels.
We strive to expand our intellectual property rights using thepatent first* principle, not only to protect (based on full respect
for others’ rights) the technologies we have created ourselves,
but also to contribute to industry growth.
In addition to the incentives awarded to the inventor of
an invention made in the course of work when the patentapplication is filed and when the patent is registered, we
have also adopted a system to award outstanding invention
incentives and performance incentives.
*Patent first
At Zeon, we define this as filing patent applications before developing andannouncing products and providing samples. In other words, we conduct productdevelopment after first considering possibilities for filing patents.

Number of Annual Awards
20

Compensation System for Invention Patents

2015

6

10

4
2

2016

Outstanding
Achievement Award

2

1
2017

FY

President’s
Award

Zeon Master System (Re-employment System)
Zeon has adopted a Group-wide re-employment system(the “Master System”) that allows motivated and skilledemployees who have reached mandatory retirement age tocontinue working. As a term of respect, we refer to these reemployed employees as “(Zeon) Master employees.” Master
employees are given the opportunity to continue working inorder to pass on their skills and train successors.

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CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Creating Working Environments That Protect Health
A Comfortable Working Environment That
Values Dialogue
Approach to Building Working Environments
Guided by the principles of motivation, reliability,
achievement, stability and safety, and security, we are
pursuing flexible work options premised on regulatorycompliance and giving special importance to CSR. We
continue to work to build more inclusive and supportive
working environments from five perspectives: supporting
flexible work styles for work-life balance, enhancing working
environments, encouraging dialog, improving health, andsupporting self-reliance.

Systems and Initiatives to Realize More Inclusive andSupportive Working Environments
We are implementing ongoing initiatives to build more
inclusive and supportive working environments. These include
reducing overtime work and developing systems for flexible
work options and to support childbirth, childcare, and familycare needs.
Systems and Initiatives
Flexiblework
stylesFlex-time system, a discretionary work hours
scheme for specialist and project-based work,
encouraging the taking of special leave, half-day
holidays, instituted days with no overtime, selfimprovement activities, training for managerial andsupervisory staff, surveys of actual conditions,
instruction forms for overtime work, labormanagement committee operations, labormanagement patrols

Supportforcombining
work andchildcare

Maternity leave before and after birth, childcare /caregiver leave system, leave to attend childbirth(for expecting fathers), leave to care for sickchildren, half-day leave (applicable to childcare andcaregiving), shortened working hours system, limits
on overtime work, exemption from late-night work,
breastfeeding time, childcare / caregiver leave
financial support system, childbirth cash payments

Health andwelfareEmployee savings scheme(incentives for retirement savings),
Asset
employee stock ownership scheme
accumulation (with financial incentives), definedcontribution (DC) pensions,matching contributions system

Motivation Reliability Achievement
Stability & Safety Security

Creating More Inclusive andSupportive Working Environments
Supporting flexible work styles
Enhancing working environments
Encouraging dialog Improving healthSupporting self-reliance

Housing
assistance

Housing assistance system(dormitory accommodation andcompany housing, rent subsidy
system, home ownership allowance,home rental for transferred
employees)

Marriage

Marriage cash payments,
honeymoon leave, spousal
allowance

ChildbirthChildbirth cash payments, maternity
leave, dependents and tuition
allowances

Holidays andbusiness
shutdowns

Carryover of accrued vacation time,“My Life” holidays (on reaching
the age of 50), “Refresh” holidays(Master employees), public-service
leave (for jury duty)

Recreationand training
facilities

Loans andself-help

Hakone Gora Facility, Izu Ippeki
Training Facility
Bereavement condolence
payments, bereavement leave,
study loans, disaster assistance,group medical insurance,compensation for absences fromwork (Zeon health insurancecooperative association), optionalgroup insurance, group life
insurance, etc.

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CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Support for Combining Work and Childcare
At present, 100% of female employees who give birthtake childcare leave. Among male employees, one or two
employees took childcare leave each year over the period
from FY 2014 to FY 2016. In addition, many employees haveused our system of shortened working hours to allow them tocombine working and raising children.
General Employer Action Plan based on the Act on Advancementof Measures to Support Raising Next-Generation Children
Based on Japan’s Act on Advancement of Measures to
Support Raising Next-Generation Children, we have drawn up
a General Employer Action Plan, and we report our activities tothe relevant authorities.
In FY2014, we achieved our targets within the plan
implementation period and received the Kurumin Mark from
the Minister of Health, Labour and Welfare, which is awarded
to companies that provide support for child-rearing.
The current Action Plan is as follows.
Zeon Corporation’s General Employer Action Plan
In order to more fully promote the establishment of anenvironment where each and every employee can display
their abilities to the fullest, we have formulated the following
Action Plan, as we believe that it is important to create an
atmosphere and a workplace environment that facilitates the
combining of work and childcare.
1. Plan implementation period:
The four-year period from April 1, 2018 to March 31, 2021
2. Details
Objective 1: We‌ will promote the creation of anenvironment that facilitates the use ofcompatibility support.
Action: From‌
April 2018 onwards, we will hold presentations
etc. regarding how to use the system, and will
promote understanding of the system.
Objective 2: We‌ will put in place a consultation system
in relation to compatibility support and work
styles.
Action: From‌
April 2018 onwards, we will implement a survey
to determine key requirements
From September 2018 onwards, we will establish theconsultation system and implement related education
Objective 3: ‌We will adopt measures that contribute to
the adoption of flexible work styles.
Action: ‌From April 2018 onwards, we will evaluate thepotential for adopting a work-from-home system.
End

Support for Combining Work and Family Care
Labor and management at Zeon work together to achievea balance between work and family responsibilities for
employees with family members requiring in-home care; wehave set up a consultation desk to support such employees.

Improving Working Environments, Encouraging
Dialog, and Supporting Self-reliance
Our focus is on encouraging dialog (communication) tocreate an atmosphere in which all employees display sensitivity
to each other based on shared awareness, and in so doing
enhance our worksite capabilities.
We consider communication, not only between managers
and employees, but also within the workplace and between
workplaces, to be the foundation of all corporate activity.
Through communication, we aim to remove barriers between
organizations, unify our direction, and help employees to feelsatisfaction and pride in their work.

Labor Agreements and Communication between Labor andManagement
Joint Declaration by Labor and Management Aimedat the Growth of the Company
1. ‌We will make mutual understanding and trust thecornerstone of all management-labor relations
2. W‌ e will perform our respective roles to strengthen company
infrastructure and build a company of which we can be proud3. ‌We will mutually strive to improve and promote ourcorporate culture as good partners

Zeon Corporation and its labor union have concluded alabor agreement for the purposes of maintaining peacefulrelations between the two parties and cooperating for thehealthy growth of the company and to maintain and improve
working conditions for union members. This agreement
stipulates rules for union activities, labor-management
negotiations, and complaint processing, as well as working
conditions such as wages and job hours.
We have also issued the Joint Declaration by Labor andManagement Aimed at the Growth of the Company, basedon the common understanding that both the company andthe labor union must cooperate and actively strive to mobilize
the abilities of everyone in Zeon Group to achieve initiatives forcompany growth.
Numerous opportunities for exchanging opinions havebeen set up, including consultations between labor andmanagement, RC dialog, and joint labor-management patrols,
as well as round-table meetings, which are now a permanent
part of the labor-management dialog. Consultations between
labor and management provide ample opportunity forforthright discussion. Both sides participate with a forwardlooking attitude and a spirit of friendly rivalry based on mutual
trust.
Going forward, we intend to actively provide opportunities
for dialog with the labor union and to implement various
policies to make Zeon a “company of which each of its
employees can be proud” through a beneficial partnership
between labor and management based on mutual respect foreach other’s positions.

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CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Dialog with Management
Opportunities for active engagement with management
are available in the form of policy briefings and other venues,
in which management members up to and including thePresident visit worksites to provide explanations and talk with
employees.
Submitting Complaints
Zeon’s labor agreement includes rules for making official
complaints.
We have established rules for preventing sexual
harassment, which is conduct subject to disciplinary action
under our employment regulations, and we have set up a
consultation desk specifically for resolving sexual harassmentrelated complaints.
We also conduct an educational program on the preventionof harassment for all staff as part of our diversity training.

Health Management Initiatives
Adopting an approach that takes individual physical andmental health as the foundation for health management, we
take steps to maintain and improve the physical and mental
health of employees.
In addition to healthcare guidance provided by nurses, we
also provide statutory medical examinations as well as detailed
medical examinations by industrial physicians. We are also
working in collaboration with a health insurance cooperative
association to prevent employee’s health conditions frombecoming serious illnesses.
In regard to mental health, besides providing mental healtheducation, several worksites have implemented stress checks
since FY 2016 to assist employees in better understanding
the physical and mental effects of stress. We have also set up
an educational system using self-care and e-learning courses
to encourage employees to check their stress levels at any
time, not just at the time when company stress checks are
conducted. In addition, we have assigned psychiatrists andpsychotherapists to support our industrial physicians.
Performing environmental measurements on chemical
concentrations, dust concentrations, noise levels, and otherconditions in work areas at our plants also helps us to make
improvements to workplace environments.
Starting in FY 2016, we have been making available an ICTbased health and prevention information service. The service
allows employees to check their medical data from a computeror smartphone at any time from anywhere; the service also
provides health information tailored to the person’s healthdata. We are also participating in health-promotion events toencourage employees to take an active interest in their healththrough the ICT-based health and prevention information
service.

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CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Occupational Safety
Initiatives to Prevent Occupational Accidents andProtect the Safety and Health of All Plant Workers
We emphasize communication between worksite managers
and workers to enhance worksite capabilities, with the goalof creating safe, stable production systems. We focus on
5S safety inspections*1, hazard detection*2 activities, andidentifying near-miss incidents*3, as well as hands-on safety
training.
*1 5S safety inspections
Inspections that evaluate operations where safety is an integral part of maintaining
the 5Ss (Sort, Straighten, Scrub, Systematize, Sustain), and that are designed toenhance visualization of safety-related issues at worksites and address hazards.
*2 Hazard detection (“Kiken Yochi” [KY] activities)
Actions taken by workers to analyze and understand unsafe conditions with the aimof recognizing activities that would place them in danger.
*3 Near-miss incidents
Events or phenomena that have the potential to result in an accident

Record of Occupational Accidents
Lost Work Time Accident Rate* (Zeon Corporation)

5S Safety Inspections
5S safety inspections assess operations where safety
is critical to maintaining the 5Ss (Sort, Straighten, Scrub,
Systematize, Sustain).
In FY 2017, we conducted 5S safety inspections on two
occasions. Environment and Safety officers from all plants
participate in the inspections so that they can learn about 5S
activities at other plants and develop them at their own plant.
The Environmental and Safety Affairs Department
conducted Group company inspections at 10 worksites.

Hazard Detection (Kiken Yochi) Activities
4R-KY (four-round kiken yochi) activities
4R-KY is a hazard detection method where employees
analyze and understand their work tasks before starting them,to avoid placing themselves in danger. The process is carriedout in four separate rounds.
KY trainers assigned to each workplace lead these
activities.

Frequency rate

1.20
1.00
0.80
0.60

0.94
×
0.82
0.46

1.06
×

1.06
×

×
1.15

1.02

Identifying Near-miss Incidents

×

0.94

0.76

0.81

0.88

0.81

0.47

0.46

0.40
0.20
0

0.00

2013
× Manufacturing

2014

2015

2016

Specialty Chemicals

2017

FY

Zeon Corporation*Lost work time accident rate
A safety indicator of the frequency of occupational accidents, calculated using thefollowing formula.
Frequency of lost work time accidents = Number of workers who experienced a lostwork time accident / Total working hours × 1,000,000 hours

Near-miss incidents are events that have the potential toresult in a major accident, injury or loss. The concept of nearmiss incidents comes from Heinrich’s Law: In a workplace,for every accident that causes a major injury, there are 29
accidents that cause minor injuries and 300 accidents thatcause no injuries (near misses). By collecting and sharing dataon potentially serious near-miss incidents, we will strive toprevent the occurrence of major accidents.

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CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Safety and Accident Prevention
Dialog between Management and Plants
To monitor progress on priority issues, senior managers at
Zeon visit plants on a regular basis to conduct inspections,hold informational meetings with workers, and brief workers
on annual policies. They also visit plants on other occasions tocommunicate directly with plant workers, who are on the frontline of the company’s operations. Senior managers visitedplants on 64 days in FY 2017.

Safety Management Efforts Led by Top
Management
Each year, top management develops the Safety
Management Improvement Master Plan and leads initiatives toimprove our Safety Management System based on the belief
that ensuring safety is the highest priority.
We are carrying out the priority initiatives on an ongoingbasis using the following simple guidelines.
1. ‌Reliable operation of equipment and systems to prevent
errors (“Never rely on ‘maybe’ or ‘should’”)
2. ‌Plant degradation countermeasures and fail-safe
measures* (“Good judgement saves money”)
3. ‌Review of past accidents and recurrence prevention(“Never rely on ‘maybe’ or ‘should’”)
4. ‌Review of standards (“Always follow the rules. Change
rules that cannot be followed.”)*Fail-safe measures
Modifications to equipment or processes and other measures to prevent accidents
that would otherwise result from human error, such as mistakes made by new
employees and others lacking in knowledge or experience, or careless mistakes
made by experienced employees.

Safety Inspector Certification at All Sites
Certified Safety Inspector*1
Obtained by all plants (Takaoka Plant, Kawasaki Plant,
Tokuyama Plant, and Mizushima Plant)
Certified Completion and Process Safety Inspector*2
Obtained by Kawasaki Plant, Mizushima Plant, and Tokuyama
Plant
The certification renewal process includes reviews ofsafety inspection and completion inspection methods as wellas inspection management, and verification that our Safety
Management System meets the regulatory requirements
defined in Japan’s High Pressure Gas Safety Act and thatthese systems are operating properly.
To more reliably ensure safety at all plants, we employ our
Safety Management System, identify the sources of hazards,
and implement measures to mitigate risks at all of our plants.
*1 Certified Safety Inspector
Certification granted by Japan’s Minister of Economy, Trade and Industry basedon the High Pressure Gas Safety Act to allow qualified individuals to perform
safety inspections to determine whether specified facilities comply with technicalstandards, either while the equipment is running or while it is stopped.
*2 Certified Completion and Process Safety Inspector
Certification granted by Japan’s Minister of Economy, Trade and Industry basedon the High Pressure Gas Safety Act to allow qualified individuals to perform
completion inspections to determine whether manufacturing facilities or Class 1
storage facilities that have undergone specific modifications comply with technicalstandards.

Certification Status
Plant

Obtained Certified
Obtained Certified
Safety Inspector status Completion andProcess Safety
Inspector status

Takaoka Plant

2000(renewed in 2015)

Kawasaki Plant

1998(renewed in 2017)2008(renewed in 2017)

Tokuyama Plant

2007(renewed in 2016)2012(renewed in 2016)

Mizushima Plant

2006(renewed in 2016)2006(renewed in 2016)—

Improving Plant Safety
We conduct Plant Safety Evaluations and Plant Safety
Inspections to further raise the level of safety at plants andprevent serious accidents and injuries from occurring.
Plant Safety Evaluations
We verify plant safety at the design stage when commissioning
a new plant or upgrading an existing one.
Plant Safety Inspections
For existing plants, while inspecting work areas, we ensurethat all sources of danger have been identified and review pastdecisions regarding the need for safety measures.

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CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Occurrences of Accidents and Injuries
FY 2017: Safety incidents*2(High-pressure gas leak: 1;
Hazardous substance leak: 1)
Although these incidents did not result in injury to humans,
damage to equipment, or impacts on the environment, we
set up an accident investigation board for each incident. The
boards have investigated the direct and indirect causes of theincidents, and are developing countermeasures to prevent
recurrence.
*Safety incidents
Defined in company regulations as the occurrence of a fire, explosion, leak,damage, failure, runaway reaction, or similar event. Even if there has been no actual
occurrence, the possibility of such an event if actions had been delayed and theobservation of signs that could be deemed to indicate the potential for such an
event are also defined as safety incidents.

Disaster Preparedness Training
Worksites conduct disaster-response drills each year basedon various hypothetical scenarios. The drills include reportingand contracting simulations, first-aid treatment, and rescue
and firefighting activities. We conduct full-scale disasterresponse drills jointly with local firefighting agencies whenpossible.
These drills allow us to verify that our standards areadequate, and to verify the operability of emergency
equipment (e.g. fire trucks, fire hydrants, broadcasting
equipment, etc.). When we encounter problems, we takesteps to quickly resolve them, so as to maintain the highest
level of disaster-response preparedness.

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CSR REPORT
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Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Fair Operating Practices
Targets and Results 			P. 53
Compliance				P. 54
CSR Procurement				P. 55
Fair and Appropriate Information Disclosure P. 56

Targets and Results
Enterprise Blueprint for 2020
To meet the expectations of society

Details of current activities(■: Completed, △: Ongoing)

Future initiatives and targets

Fair competition• ‌Are complying with all laws and regulations,ordinances, agreements, and internal
regulations, and acting with high ethicalstandards based on being a model forsociety• ‌Management policies are broadly
understood and compliance awarenessis widespread. As a result, by proactively
conducting CSR activities and adapting toenvironmental changes, business continuity
as well as sustainable development areachieved■ ‌Enact and implement management
regulations including those on insider
trading and appropriate disclosure△ ‌Comply with internal regulation including
the Export Security Control Regulations△ ‌Appropriately implement regulations tocomply with the Act on Prohibition ofPrivate Monopolization and Maintenance ofFair Trade (Antimonopoly Act)△ ‌Compliance with the Subcontract Act andthe Act for Securing the Proper Operationof Worker Dispatching Undertakings(prevention of falsified contracts)△ ‌Regulations in the CSR Code of Conduct
and CSR Procurement Guidelines△ ‌Employees read the CSR Textbook andCompliance Textbook and take e-learning
courses△ ‌Conduct CSR education including holding
CSR informational sessions△ ‌Hold workshops on legal and regulatorycompliance△ ‌Legal compliance inspections△ ‌Regularly revise internal regulations (tosatisfy legal amendments)

To reduce legal risks

Fair competition• Information‌is disclosed quickly andappropriately, and market value has
increased(including negative information regarding
business conditions, CSR, risks, etc.)△ ‌Hold financial results briefings△ ‌Publish various reports△ ‌Release information via the company
website△ ‌Hold briefings for individual investors andanalysts and respond to media inquiries△ ‌Hold press conferences

To enhance the corporate brand and value

Social responsibility in the value chain• ‌Select business partners based on
the CSR Procurement Guidelines andperiodically confirm the Guidelines’ statusof implementation

1. ‌Develop and establish the CSR Code of■ ‌Multiple-source
Conduct and CSR Procurement Guidelines△ ‌Comply with laws and regulations onin the supply chain
competition including the Antimonopoly Act
2. ‌Build the supply chain CSR survey△ ‌Satisfy the RoHS Directive, bans on
database
substances, etc.
△ ‌Purchasing following the CSR Procurement
Guidelines¡Compliance with internal regulations¡Ongoing legal training and information

sharing using the Compliance Textbook
and other materials¡Education on the CSR Code of Conduct¡Ongoing compliance education¡Revise the Compliance Textbook andthe CSR Textbook and hold related
informational meetings¡Ongoing CSR briefings by the head of the
CSR division¡Support the establishment of compliancesystems at Zeon Group companies outside
Japan (develop in the supply chain)¡Shift from compliance to sustainability(promote understanding among
management and establish among
employees)¡Become a signatory to the United Nations
Global Compact

1. ‌Improve the website (IR, CSR information)
2. ‌Strengthen the information communications
structure (PR)3. ‌Communicate information that supports
ESG investment

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CSR REPORT
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Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Compliance
Compliance System
The Compliance Committee advances Zeon’s complianceefforts. The Compliance Committee has three subcommittees,
namely the Antitrust Law Regulatory Subcommittee, theExport Security Control Subcommittee, and the Corporate
Governance Subcommittee.

Zeon’s Risk Management and Compliance System

Compliance Committee
Prevention of law violations
Education and training in compliancewith laws
Antitrust Law
Regulatory Subcommittee
Prevention of violations of
the Antitrust Law
Export Security
Control Subcommittee
Proper security export control
Corporate Governance
Subcommittee
Reliability in financial reporting

Compliance Committee
FY 2017 Results• ‌Educated staff on global assignments on compliance withantitrust regulations and preventing bribery• ‌Conducted workshops on legal compliance at plants andsubsidiaries• ‌Checked the level of compliance understanding throughe-learning
Antitrust Law Regulatory Subcommittee• ‌Conducted reviews prior to the revision of product prices inbusiness divisions, carried out preliminary screenings when
meeting with executives of competitors, and reviewed thestatus of participation in industry bodies
Export Security Control Subcommittee• ‌Conducted seminars for ordinary employees and for
department personnel in charge• ‌Implemented numerous final assessments of control list
applicability and trade investigations

Corporate Governance Subcommittee• ‌Established controls for identifying the risk of and preventing
errors in consolidated financial statements. Evaluatedwhether the controls were functioning correctly• ‌Convened five times in FY 2017, and rectified one ineffective
controlInternal Reporting System
We established the Internal Reporting System to rapidlycollect information on potential risks and facilitate theirresolution.
(For more information about the Internal Reporting System,
see Risk Management. R P21)

Internal Audits
Internal audits are performed for the purpose of preventing
improprieties and errors in business operations.
The Department of Internal Auditing inspects and assesses
whether business operations in all departments are being
carried out appropriately and effectively in accordance withlaws and internal regulations, and orders improvements when
there are incidents of violations or non-compliance. In addition,
the Department of Internal Auditing carries out periodic followup audits on the progress of measures taken by departments.
FY 2017 results: 35 departments (12 departments at Zeon
Corporation, 13 Zeon Group companies inside Japan, 10
Zeon Group companies outside Japan)
FY 2018 plan: 37 departments (14 departments at Zeon
Corporation, 12 Zeon Group companies inside Japan, 11
Zeon Group companies outside Japan)
Information Security Audits
Information security audits are internal audits on thehandling of information assets. They are conducted for all
divisions and departments at Zeon using a self-inspection
format.

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CSR REPORT
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Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

CSR Procurement
In order to provide safe and reliable products, we procure raw materials based on the Zeon CSR Policy and the CSR Code of
Conduct.

Procurement Policies
Policies related to procurement are as follows.
We have been developing initiatives for CSR-based
procurement since FY 2012. We have established the CSR
Procurement Guidelines and Requests to Suppliers, which
integrate CSR perspectives into our existing QCD*.
*QCD
System of production management that controls and improves quality, cost, anddelivery.

CSR Procurement Guidelines
1. CSR procurement
We will promote procurement activities that are based on our
CSR Policy.
2. ‌Procurement of optimal raw materials, products, andservices
We will work to procure optimal raw materials, products,
and services that meet our standards for quality, cost,delivery time, supply stability, and technological development
capabilities in order to provide better products.
3. Consideration of the global environment
We will work to procure raw materials and products that haveless impact on the global environment.
4. Open approach to purchasing and partnerships
We will use a global perspective to search for suppliers fromacross the world, build partnerships through dialogue, andwork to create fair and equitable business opportunities.

Requests to Suppliers
We kindly ask that our suppliers:
1. ‌Follow corporate ethics and thoroughly implement
compliance.
2. ‌Respect human rights and give consideration to workplaceenvironments.
3. ‌Give consideration to the environment, and provide safe
raw materials, products, and services.
4. ‌Provide raw materials, products, and services withcompetitive quality and pricing, and abide by agreed
delivery dates.
5. ‌Actively provide information during the creation ofpartnerships. Also, implement strict management of
information disclosed by Zeon during our transactions. We
will implement the same strict management.

Procurement Initiatives
We forbid substances whose handling is prohibited andmonitor for the presence of substances governed by laws andthe RoHS Directive. We also proactively disclose informationon the substances contained in our products.
We conducted a customer questionnaire in FY 2013.
Looking ahead, we will consolidate our approach to supply
chain management and build a system for sharing our CSR
policies in order to embed CSR procurement throughout the
supply chain.

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CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Fair and Appropriate Information Disclosure
Communications Approach and Framework
We conduct public relations activities to promote accurate
understanding of our philosophies, approaches, and various
undertakings by stakeholders and the public, and thereby
increase our name recognition and become more known andtrusted in the world.
Public Relations Committee
The Public Relations Committee discusses and sets policy
related to internal and external information disclosure based on
CSR management.

Information Disclosure
Website• ‌Communicates information relating to the company, IR,products, and employment, etc.

Advertising and PR
We conduct locally based advertising and PR activities withthe aim of enhancing the Zeon brand.
TV commercials• ‌TV Commercials in Japan are broadcast in the Kanto
region and Toyama, Okayama, Yamaguchi, and Kagawa
prefectures• ‌TV commercials for Asia are broadcast throughout
Southeast Asia via satellite TV programs

New TV commercial

New advertisements
We are continuing to run ads in the series “The Future,
Zeon,” “That Aroma, Zeon,” and “That Driving, Zeon,” whichbegan in 2016.

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Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Communication with Shareholders
Policies related to constructive dialogue with shareholders
Dialogue with shareholders is led by the Department ofCorporate Communications and overseen by the director in
charge of CSR. The Department of Corporate Communications,the Corporate Planning Department, the Accounting and
Finance Department, the General Affairs Department, theLegal Affairs Department, and other departments exchange
information as appropriate to provide accurate and unbiased
information to shareholders.
We will continue to expand the avenues of dialogue apartfrom individual meetings. These include holding quarterly
briefings for investors, making financial statements available on
the Zeon Corporation website, and participating in company
seminars for individual investors. The Department of Corporate
Communications collects and analyzes feedback received
in dialogue with shareholders and makes reports to the
President as appropriate. Based on management regulations
including those on insider trading and appropriate information
disclosure, we strictly control unreleased important information
while engaging in dialogue with shareholders to prevent
information leaks.
General Meeting of Shareholders
On June 29, 2017 (Thursday), we held our 92nd Annual
General Meeting of Shareholders in a conference room at the
Head Office. To help investors have a clearer understandingof our business, on the day of the meeting we also set up abooth to introduce clients’ commercial products that containour products. We mail out notices approximately three weeks
prior to the meeting to allow investors who cannot attend themeeting to exercise their voting rights based on a full review ofthe proposals. We also publish the details of resolutions fromthe General Meeting of Shareholders on our corporate website.
In addition, audio files of quarterly financial results briefingsand videos of presentations given twice a year by top
management on the current status of management at Zeon
are available on our corporate website.

2017, included a special feature on Powder Slush Compounds(PSC), explaining the strengths of Zeon’s PSC products, which
continue to see steady annual sales growth for automotive
interior fittings applications, where quality standards are veryhigh.
We will continue to improve the Midyear Report to make it
more accessible and better meet shareholders’ needs.

93rd Midyear Report

Annual Report and other Midyear Reports, see
http://www.zeon.co.jp/ir_e/library/businessreport.html
Distributions
Our basic policy is to pay out steady dividends of excess
earnings to shareholders.
In principle, Zeon Corporation distributes excess earnings
twice annually, through interim and year-end dividends.
The General Meeting of Shareholders decides the year-end
dividend amount, and the Board of Directors decides theinterim dividend amount. Retained earnings are leveraged
for proactive capital investments, development of innovativetechnologies, and production innovations.
For more information about Zeon’s share price and dividends, see
http://www.zeon.co.jp/ir/stock/dividend.html (Japanese only)

Communication with Investors

Video of a presentation by President Tanaka

For more information about the General Meeting of
Shareholders, see
http://www.zeon.co.jp/ir_e/stock/meeting.html
For more information about financial results briefings, see
http://www.zeon.co.jp/ir_e/library/presentationmeeting.html
Communicating Information to Shareholders
Twice a year, we send a booklet to our shareholders
featuring updated business information and recent topics ofinterest, etc. The 93rd Midyear Report, issued in December

We actively engage in communication with institutional
investors and analysts both inside and outside Japan.
We held analyst briefing sessions to announce our FY 2017
quarterly results in July and October 2017, and in January and
April 2018. In addition to briefings on our current management
situation by the President, we also reviewed the initiatives ofour mid-term management plan SZ-20 Phase II in our second
quarter financial report, and provided an overview of our new
mid-term management plan SZ-20 Phase III, which began in
FY 2017, at the annual financial results briefing session. We
have also deepened understanding of our company throughtechnical seminars and giving plant tours.
To individual investors, we strive to provide up-to-date
information on our business. For example, we publish online
content for individual investors on our corporate website, andparticipated in a briefing session held for individual investors in
February.
Furthermore, we are working to distribute information forinvestors through various opportunities such as releasing avideo introducing Zeon on the TSE (Tokyo Stock Exchange) IR
Movie Square.

58
CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Consumer Issues
Targets and Results			
P. 58
Quality Assurance				P. 58*For chemical product safety, see Environment (→P. 35)

Targets and Results
Enterprise Blueprint for 2020
To meet the expectations of society

Details of current activities(■: Completed, △: Ongoing)

Future initiatives and targets

Protecting consumers’ health and safety• ‌Both quality and cost are globally firstrate‌a quality management system based 1. ‌To maintain and expand conditions where△ Haveon ISO 9001
Zeon products are chosen‌quality assurance risks (product△ Manage¡Establish systems to definitively reducecomplaints, process abnormalities, and defects,
liability lawsuits, supply obligations, productprevent defective products from leaving Zeon,recalls, and credibility loss due to rumors)
create corporate quality trusted by customers,△ ‌Improve processes (reduce losses, improveand further improve customer satisfaction
consistency)¡Develop initiatives for chemical substance‌
activities for production△ Develop
regulations
innovations¡Expand the adoption of Zeon’s quality
management system to include Zeon
Group companies outside Japan andoutsourcing partners
2. ‌Measure customer satisfaction tounderstand the current satisfaction level,
set targets, and promote improvements

Sustainable consumption• ‌Developed and launched a series of
products that are beneficial to society△ ‌Develop business based on business plans 1. ‌Research and development,
manufacturing, and sales that address
consumer issues faced by society

Quality Assurance
Quality Assurance Policies
In accordance with our basic philosophy and CSR Policy,
we define our basic policy for quality assurance as follows.
Basic Policy for Quality Assurance
1. ‌We contribute to society by providing high-quality products,
goods and services with excellent reliability and safety to
the market.
2. ‌We fully understand and predict user demands and provide
products, goods and services that users can use withsatisfaction.
3. ‌In each quality assurance step, we establish an internal
system that can assuredly evaluate high-quality products,
goods and services with excellent reliability and safety.
4. ‌We establish technologies that can produce products,
goods and services with the target quality in terms of
reliability and safety.

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CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Quality Assurance System

Framework Supporting Quality Assurance at Zeon

To consistently manufacture products that reflect theneeds and wants of customers and to ensure product quality,
Zeon is advancing integrated quality assurance activities
companywide, across manufacturing, sales, and engineeringfunctions, by strengthening cooperation between plants,
departments and research units (R&D Center).
Quality Assurance System
Customers
Customerrequests &requirements

Products &services

Sales(Businessdivisions)
Stableproduction

Product safety
reviews
Product standard
approvals

Product
judgments

Manufacturing(Plants)
Production
preparations

Product
planning

Quality
Assurance
Department
Design reviewof planning anddevelopment

To ensure a consistent supply of high-quality products toour customers, we have put in place various quality assurance
systems in accordance with internal regulations on quality
assurance and conforming to the ISO 9001:2015 international
standard for quality management systems.
1. ‌Acquisition of international quality standard
certifications by Zeon Corporation
In 2010, we integrated the ISO 9001 certifications obtained
throughout Zeon and have maintained this. In the 2017 regularinspection, we also received a transition inspection to the 2015
version and completed the transition.
2. ‌Status of Zeon Group Certifications for International
Quality Standards
Site

ISO
9001*1

Japan Zeon Kasei Co., Ltd.
Zeon Polymix Inc.
Technology
development(Research
center)Product
designMid- to Long-Term Initiative Policy andInitiatives from FY 2017
In our mid- to long-term management plan SZ-20, we set
the 2020 quality assurance goal of “global uniform quality
and cost compatibility.” For the three years of FY 2014 toFY 2016, we defined our quality assurance policy as “Aim tocreate mechanisms that will facilitate quality assurance even if
things change (even if Zeon or the world changes).” We thenconducted quality assurance activities to achieve this.
To develop this quality assurance policy across Zeon Groupover four years starting in FY 2017, we revised the policy
to read, “Aim to create mechanisms that will facilitate Zeon
Group quality assurance even if things change (even if Zeonor the world changes).” We are conducting quality assurance
activities across Zeon Group to this end.

3
p*

p

Zeon Medical Inc.

p

Zeon North Co., Ltd.

p

Tokyo Zairyo Co., Ltd.

p

Zeon Chemicals Yonezawa Co., Ltd.

p

Optes Inc.

p

Tohpe Corporationp

Outside Zeon Chemicals L.P.
Japan
Zeon Chemicals (Thailand) Co., Ltd.

ISO
13485*2p
p

Zeon Advanced Polymix Co., Ltd.

p

Zeon Chemicals Singapore Pte. Ltd.

p

*1 ‌ISO 9001 is the international standard for achieving ongoing improvements inenhancing customer satisfaction and quality management systems throughproduct and services quality assurance.
*2 ‌ISO 13485 is the global standard for quality management systems in the field of
medical devices for the purpose of continued manufacture and provision of safeand useful medical devices. The standard has added requirements specific to
medical devices while omitting some of the ISO 9001 requirements.
*3 ‌The logistical materials division has acquired certification limited to STEC®.

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CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Framework to Achieve Product Safety
1. Product safety reviews
We strive to ensure product safety in every possible aspect
by conducting product safety reviews (PSRs) using our own
checklists that consider product safety at every stage of the
product lifecycle, from initial product development throughplanning, design, manufacturing, sales, use, and disposal.
2. Chemical substance regulatory compliance
The regulatory environment for chemical substancesmanagement is undergoing major change globally, with laws
and regulations on chemical substances being amended notjust in the United States and Europe but also in Japan andSoutheast Asia. As a result, the number of regulations tocomply with is rising sharply. To comply with these regulationsat Zeon, we are creating a database of the substances in our
raw materials and products, even those present in minutequantities, and building a chemical substances management
system capable of continuously tracking the most up-to-date
regulatory information, safety information, and other relevant
information.

Audits
PL Audits
PL audits are audits performed by an auditing team led by
the director in charge of CSR and covering product liability(PL) and product safety. PL audits are conducted for productliability activities for products of Zeon business divisions
spanning all stages of development, manufacture, use, final
consumption, and disposal.

Quality Audits
Quality audits are audits performed by an auditing team ledby the head of the Quality Assurance Department that focus
on checking the progress of implementing quality improvement
activities. They are conducted at Zeon’s business divisions,plants, laboratories, and affiliated companies.

Internal Quality Audits
Internal quality audits are conducted for the purposes of
evaluating whether Zeon’s quality assurance management
system is operating effectively and efficiently based on ISO
9001:2015 and promoting ongoing improvements. The
audits are based on ISO 9001, and are structured so thatthe requirements of ISO 9001 are satisfied as long as Zeon’s
internal regulations are being complied with. The audits also
focus on customer satisfaction and overall optimization.
The audits are conducted for the whole of Zeon Group;
as far as possible, audits are conducted by an auditing teamcomprised of auditors from other divisions.

Communicating Safety Information
For more information about safety information for chemical
products handled by Zeon, see Chemical Product Safety
Information (R P. 35).

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CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Human Rights
Targets and Results			
P. 61
Upholding Positive Working
Environments by Protecting Human
Rights and Prohibiting Discrimination
P. 61
Protecting Human Rights in the Supply Chain P. 62

Targets and Results
Enterprise Blueprint for 2020
To meet the expectations of society

Discrimination and vulnerable groups,
avoidance of complicity• ‌The section on respect for human rights
and prohibition of discrimination in the CSR
Code of Conduct has been shared with all
Zeon Group companies and Zeon Groupbusiness partners, and compliance with theprohibitions on child labor and forced laboris confirmed.

Details of current activities(■: Completed, △: Ongoing)‌
the Corporate Report and release■ Publish
Zeon Group’s CSR Code of Conduct andCSR Procurement Guidelines on the Zeon
corporate website△ ‌Conduct CSR education throughmeans including having employees readcompliance texts, e-learning, and CSR
informational sessions

Future initiatives and targets
1. ‌Provide information on the Zeon Group’s
CSR Code of Conduct and CSR
Procurement Guidelines to business
partners (business, procurement, andmaterials purchasing departments)
2. ‌Build a database of external reports
relating to respect for human rights atbusiness partners (supply chain CSR
survey database) (CSR Implementation
Department)
3. ‌Establish a policy specific to human rights
and implement it across the Zeon Group

Upholding Positive Working Environments by Protecting
Human Rights and Prohibiting Discrimination
In the provisions of our CSR Code of Conduct, we emphasize respect for human rights and prohibit discrimination. We strive to
be a company that understands and accepts diverse values, and where no person is discriminated against based on gender, age,nationality, or other attribute.

Zeon Corporation CSR Code of Conduct (Excerpt)
As a member of the Zeon Group, I understand the Zeon
Group’s corporate philosophy and CSR Policy, and I
undertake to act in accordance with the following:(1-2 Labor laws and regulations)(iii) I‌ will not commit discrimination based on birth, nationality,
race, ethnic group, creed, religion, or sex/gender.
(4-3 Diversity)
I will value community values such as cultures, traditions,customs and religions.

Studying the CSR Textbook and theCompliance Textbook and E-learning
Employees periodically study the Compliance Textbook
in their department. Their level of compliance understanding
is checked using an e-learning course in July each year.
Questions are set respectively for management, business,
manufacturing, and R&D to assess whether the knowledge
and information needed to ensure compliance is sufficiently
understood.

(7-2 Human rights)
I will value human rights.
(7-3 Respect for each other)
I will value respect for each other.

Checking the level of compliance understanding through e-learning

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CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

CSR Education Including CSR Informational
Sessions
In FY 2017, the ninth CSR informational session was
held. The session topic was Zeon’s CSR Code of Conduct,
which was revised in January 2018. Besides explaining the
key aspects of the revisions, the session also addressed
the changes in society’s expectations which constitute thebackground to the revisions, and presented a number ofconcrete examples to explain what the Zeon Group needs todo, with the aim of enhancing understanding of the new CSR
Code of Conduct.
CSR informational session

Protecting Human Rights in the Supply Chain“Respect for human rights and considerations for work environments” forms part of the Requests to Suppliers section of the CSR
Procurement Guidelines.

Building a Database
We are continuing to conduct surveys of human rights
measures at our business partners, and we are working tobuild a supply chain CSR survey database.
Based on this database, we will examine whether there
are problems relating to the work environment (human rights,
health and safety, etc.), environmental destruction, conflictminerals, etc., and will collect and disclose information about
our supply chain.

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CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Community
Basic Approach and Initiatives		
Targets and Results			
CSR Core Projects			

P. 63
P. 63
P. 64

Basic Approach and Initiatives
We believe that contributing to the development of local communities and building strong relationships of trust are crucial toconducting stable business activities and creating improved products and services.

Zeon’s Approach to Social Contributions
We believe that social contributions are essentially carriedout through our core businesses. As a corporate citizen,
however, the complex set of issues faced by society andcompany activities are not independent of one another. We
are therefore undertaking social contribution activities outsideof our core businesses to engage with society from a broader
perspective.
In 2012, we launched CSR Core Projects, which are
initiatives we selected from proposals submitted by Zeon

Group companies. The CSR Core Projects are activities
that focus on social contributions outside the scope of ourcore business operations and provide employees with anopportunity to turn their attention toward social issues.
We plan and develop activities in three broad categories:
1) various activities related to supporting reconstruction
from the Great East Japan Earthquake, 2) shared projects
conducted across multiple Zeon’s plants and Group
companies, and 3) projects conducted independently by
Zeon’s plants and Group companies. We are developing
these activities with a focus on their synergistic benefits.

Targets and Results
Enterprise Blueprint for 2020
To meet the expectations of society

Details of current activities(■: Completed, △: Ongoing)

Future initiatives and targets

Community involvement, education, and culture △ ‌Develop CSR Core Projects (social¡Develop the CSR Core Projects based on acontribution activities by Group as a whole,defined Zeon Group activity policy• ‌Zeon’s social contributions are understood,among locations, and at individual worksites)
receive recognition, and are supported
Community involvement• ‌An organization for promoting volunteer
activities among employees has been
established, and employees actively
volunteer in various ways

Community involvement• ‌Guidelines for coexisting with local
communities have been created and areused, and good relations have been builtwith local communities

Technological development and access to technologies•E‌ xplore the needs of society and cultivate theseeds to meet these needs based on unique
technologies and unparalleled products to create
new business and make contributions to society‌and enhance the system for△ Upgrade
promoting volunteer activities (establish asystem for taking leave to volunteer)‌volunteer activities and promote△ Introduce
and support participation in them(volunteering to support reconstruction
from earthquakes, etc.)¡Raise employee awareness for social contributions•C‌ onduct CSR education including CSR
informational sessions• ‌Establish a social contribution policy for theentire Zeon Group (e.g., on water)¡Create a system to support volunteering(volunteer registration system, etc.)¡Create opportunities for social contributions
FY 2017 resultsfrom exchanges with local councils of social
Number of employees participating in volunteer
welfare, non-governmental organizations
tours: 60 (Cumulative total of 425 employees)
and non-profit organizations‌and utilize disaster recovery■ Formulate¡Maintain and expand exchanges withlocal communities
support standards•S‌ upport the reconstruction of the Tohoku Region‌and charity activities (Furukawa△ Donations
Scholarship, expenses for community• ‌Devise and implement ongoing measures
promotions, Red Cross, etc.)
to support recovery from disasters‌
good community relations and△ Maintain• ‌Actively participate in community activities
have community exchanges¡Through dialogue with stakeholders•S‌ ponsor and participate in community festivals
including local communities, identify
and events including summer festivals at plants
expectations from society, the current level• ‌Community cleanup activitiesof meeting those expectations, and set
targets•P‌ lant tours (receive plant visitors, internships)¡Strategy for “reinforce” and “explore” in the
Research and Development Division andbusiness divisions

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CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Furukawa Scholarship
The Furukawa Memorial Foundation is an incorporated
foundation with a 50-year history of granting scholarships
to Japanese and foreign students experiencing financial

hardship to encourage them to continue their education. We
are maintaining our involvement in the foundation to assist its
activities.
To date, the Foundation has awarded scholarships to a
total of 3,124 people.

CSR Core Projects
The CSR Core Projects are activities that focus on social contributions outside the scope of our core business operations.

Status of CSR Core Project Initiatives
Project

Detailed initiative

FY 2018 target

Support for Great East Japan Earthquake reconstruction
Participation in reconstruction volunteer
tours

Started in October 2012
60 tours as of March 2018 (total of 425
participants)
Disaster recovery assistance(Minamisanriku, Rikuzentakata), agriculturalassistance (Iwaki), fishing industry
assistance (Kesennuma), etc.

Eat and Root for Restoration! campaign

Support the recovery of industries by eating Continue the initiative
foods grown in the disaster-affected areas
Offer a menu of Tohoku-grown foods at theemployee cafeteria and Z Plaza (employee
lounge)Participate in building a forest embankment
to protect lives*

Support for and participate in tree planting for
Heisei-no-mori in Otsuchi Town (sponsoredby Yokohama Rubber and Otsuchi Town,
Iwate Prefecture) since FY 2013

The tree planting was concluded in FY
2015. Maintain our ties with Otsuchi Town
through activities including post-planting
maintenance

Summer vacation events and classes where
local residents conduct experiments while
touring our locations
Head Office: Children’s summer holiday
chemical experiment show (every year fromFY 2013 to FY 2017)
Tokuyama Plant: Experiment classrooms
during industrial tourism tours for parents
and children
Zeon Chemicals Yonezawa: Experimentclassrooms at the Youth Science Festival in
Yamagata
Takaoka Plant, Kawasaki Plant: Experimentclassroom activities during factory visits
Research & Development Center: Kawasaki City
Summer Holiday Self-directed Research Seminar

Hold chemistry classrooms (increase thenumber of events held at our locations)
Expand the conducted experiments (create
a new experiment package)Continue the initiative(Frequency target: 1–2 times per month)

Shared projects
Chemistry Classroom

Eco-cap recycling campaign (collecting used Began counting caps at all Zeon Groupplastic caps)
companies in FY 2012
Green purchasing of office supplies

Continue the initiative

Purchasing office supplies with minimalContinue the initiativeenvironmental impact (notebooks, bookbinding tape, folders, etc.). Of the 44 items
stipulated under the Green Purchasing Law,
we switched to 22 items (50%)

Independent projects
Topics selected by promotional committees Engaging with local communities
Participation in community events: Sponsor
and provide support for various events
Cleanup activities
Educational support: Internships, sending
instructors to schools, etc.

Continue the initiative*Forest embankment to protect lives
This activity creates a forest that will act as an embankment protecting local residents against tsunamis. This consists of combining debris from the disaster with soil to build an
elevated area along the coastline, which was damaged during the tsunami triggered by the Great East Japan Earthquake. Various trees native to the area are being planted on
the elevated ground to create a multilayer forest.

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CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Examples of Initiatives
Following are some examples of activities that are part of
the CSR Core Projects. Many other activities conducted withlocal communities are described in the Site Reports.
Volunteering to support Great East Japan Earthquake
reconstruction
We invite employees to sign up for restoration volunteer
tours open to the public and send employees on the tours
on an ongoing basis. We cover the full cost of the tours toencourage employee participation.
This initiative began in October 2012. In FY 2017, 60
employees participated in volunteer tours. They assisted withrepair work and searched for lost articles in Rikuzentakata City,
Iwate Prefecture; provided assistance for the fishing industry in
Kesennuma City, Miyagi Prefecture; and agricultural assistancein Iwaki City, Fukushima Prefecture.
We turn support into encouragement, and encouragement
into exchange. We intend to continue this initiative in light of
the risk that the memory of the devastation will be forgotten.

Chemistry Classrooms
Based on the motto of “nurturing future Nobel Prize winners
in chemistry,” we hold chemistry experiment classrooms invarious areas to communicate the appeal of chemistry tochildren.

RIMTEC: Participation in and presentation of awards at the Omoshiro Taiken (“FunExperience”) Day activity at Okayama Research Park
RIMTEC also received the 2016 Chemistry Communication Award from the Japan
Union of Chemical Science and Technology (JUCST) in recognition of this activity,
which has been conducted jointly with Okayama University since FY 2012.

Ogatsu Rose Factory Garden, Ishinomaki

Helping plant trees in a disaster-affected area
Since 2012, Otsuchi Town in Iwate Prefecture andYokohama Rubber Co., Ltd. have been conducting a treeplanting campaign at “Heisei-no-mori” in Otsuchi Town as amodel project for the creation of forest embankments that canhelp to protect lives in the local community. Zeon has also
been participating in this tree-planting campaign since 2013.
The fourth round of tree-planting in 2015 was the last round;however, we have continued to participate in related activities
by undertaking maintenance work for the trees planted on thesite and providing tree-planting education for local elementary
school children through extracurricular lessons.

Tree-planting education at Otsuchi Gakuen

Zeon Chemicals Yonezawa participated in the 2017 Youth Science Festival in
Yamagata. Staff and children together made aromatic air fresheners by using our
synthetic fragrances.

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CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Support for Education
Zeon’s plants and Group companies offer assistanceto educational institutions with internships for high school,
technical college, and university students, by welcoming plant
tours by school groups, and by sending special instructors togive lessons at schools.

Community dialog activity undertaken by Zeon Chemicals (Thailand) Co., Ltd. in
Thailand

Employees of Mizushima Plant visited local elementary and secondary schools togive lessons.

Holding and Participating in Community Events
Zeon attaches great importance to our ties with local
communities. Zeon’s plants and Group companies holdvarious events, including summer festivals, and welcome
opportunities to participate in community events.

Summer festival held at Takaoka Plant
Kawasaki Plant: plant tour

Dialog with Communities
Plants participate in community dialog as part of the
Responsible Care Council activities and communicate
information on environment-related improvements, safety, anddisaster preparedness during plant tours for representatives of
local government authorities and for community residents.

The Tokuyama Plant sponsors the Zeon Waraku Odori Dance Festival

Responsible Care community dialog at the Kawasaki Plant
We welcomed representatives of local residents’ associations, and representatives ofeight member companies of the Kawasaki district of the Responsible Care Committee.

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CSR REPORT
2018

Contents

Highlights

Zeon’s CSR

Corporate Governance

Environment

Labor Practices

Fair Operating Practices

Consumer Issues

Human Rights

Community

Community Cleanup Activities
With the goal of being useful to and benefitting local
communities, Zeon’s plants and Group companies conduct
community cleanup campaigns around their sites and beyond.

Maintaining a Harmonious Relationship with the Local
Community
We engage in collaborative activities with local communities
in each region.

Community cleanup activity near the Mizushima Plant

Zeon Chemicals L.P. (ZCLP) in U.S.A. has conducted volunteer activities anddonation drives for many years.

Many employees from Takaoka Plant, Optes, Zeon North, and Zeon Medical
participate in coastal clean-up activities

Thailand-based companies Zeon Advanced Polymix Co., Ltd. and Zeon Chemicals(Thailand) Co., Ltd. have conducted volunteer cleanups and charity activities formany years
The companies make donations to various groups including schools, nearby
temples, hospitals, and educational institutions

CSR REPORT 2018

Inquiries: CSR Promotion Department, Zeon Corporation
Shin Marunouchi Center Building, 1-6-2 Marunouchi, Chiyoda-ku, Tokyo 100-8246, Japan
Tel: +81-3-3216-0603 Fax: +81-3-3216-0604 http://www.zeon.co.jp/index_e.html

Date of publication: January 1, 2019