DIC REPORT 2023
The DIC Group Integrated ReportComplete Version

“The DIC Way” was formulated to represent the
DIC Group’s fundamental management philosophy.
In line with The DIC Way, the DIC Group willcontinue to promote efforts aimed at enhancing
corporate value and achieving sustainable growth.

The DIC Way
MissionWe create enhanced value and utilize innovation to introduce
socially responsible and sustainable products.

VisionMissionWe improve the human condition by safely deliveringcolor and comfort for sustainable prosperity — Color & Comfort

Core Values

Core Values
EnterprisingEnterprising: Lead with a passion for excellence that is evident in thesolution-focused actions taken each day to drive value through innovation.*
Integrity: Be honest, forthright, and ethical in all dealings with customers,
suppliers, and coworkers.*
Dedication & Loyalty: Take responsibility for performance in the ofﬁce,
laboratory, and factory, by demonstrating commitment to customers,
suppliers, and coworkers.*

Integrity

Sustainability

Dedication & Loyalty

Company

Diversity: Respect other viewpoints and work collaboratively whilevaluing collective goals over personal interests to achieve excellence;
foster communication and cooperation with people from all backgrounds.*
Social Responsibility: Go beyond compliance to promote products andactivities that achieve socially responsible and sustainable developmentthat protect the environment.*

VisionDiversity

Social Responsibility*=Annotation

DIC Report 2021

1

SocietyDIC Group Communications Tools
The DIC Group uses a variety of tools to promote communication withits many stakeholders to encourage greater awareness of the Group’s
activities. More detailed sustainability-related information and data canbe found on the DIC global website.

Printed/PDF-Form Publications

Reports on activities
DIC Report(complete version)

Annual Securities
ReportComplete report(published annually)(PDF-form publication)

Report on resultsof operations and¿QDQFLDOFRQGLWLRQ
(published annually)(PDF-form publication)

Contents
DIC Group Milestones
A Message from the President
DIC Vision 2030 Long-Term Management Plan
The DIC Group’s Approach to Value Creation
Overview of Materiality
The DIC Group: A Global Powerhouse
Activities of Regional Headquarters 6XQ&KHPLFDO',&$VLD3DFLÀF',& &KLQD
The DIC Group’s Business Portfolio
Packaging & Graphic
Color & Display
Functional Products
New Business Development

Value Creation Essentials and Strategies

Connecting the DIC Group and its Stakeholders)LQDQFLDODQG1RQÀQDQFLDO,QIRUPDWLRQ
A Message from the CFO
12-Year Summary
Overview of Sustainability
A Message from the Head of the ESG Unit
The DIC Sustainability Index

DIC Global Website

Real-time information
https://www.dic-global.com/en/
Umbrella website providing information to
the global public about the DIC Group andreports on its various activities; updated
as necessary
WEB

In previous years, the DIC Group published a combined corporate
SUR¿OHDQGVXVWDLQDELOLW\UHSRUWZLWKWKHDLPRISUHVHQWLQJDFOHDU
easy-to-understand picture of the Group and its sustainability
initiatives. Since 2017, the Group has published the DIC Reportas an integrated report, which combines financial information,encompassing consolidated operating results and corporate
strategies, and nonfinancial (sustainability) information. The
Group currently publishes a detailed complete report (PDF), whichcontains extensive quantitative data.
DIC Report (Complete version) (PDF-form publication)WEB

https://www.dic-global.com/en/csr/annual/

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35
36
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42
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86
96
98
119
122
124
127

128
Corporate Governance
133
Risk Management'LUHFWRUV$XGLW 6XSHUYLVRU\%RDUG0HPEHUVDQG([HFXWLYH2IÀFHUV 134
136
A Message from an Outside Director
137
Financial Report for Fiscal Year 2022
139
Consolidated Balance Sheet
Consolidated Statement of Income/Consolidated Statement of Comprehensive Income 141
142
Consolidated Statement of Changes in Net Assets
143
Consolidated Statement of Cash Flows
144
7KLUG3DUW\9HULÀFDWLRQ147
DIC Report 2023 and the GRI Standards
151
Corporate Data

Note: $VXVHGKHUHLQWKHWHUP³$VLD±3DFL¿FUHJLRQ´²DJHRJUDSKLFGHVLJQDWLRQWKDWOLNH³(XURSHDQGWKH$PHULFDV´DQG
³*UHDWHU&KLQD´UHSUHVHQWVDJURXSLQJRIFRPSDQLHVRYHUVHHQE\DUHJLRQDOKHDGTXDUWHUV²UHIHUVWR$VLD H[FOXGLQJ-DSDQDQG*UHDWHU&KLQD DQG2FHDQLD7KHWHUP³$VLDDQG2FHDQLD´UHIHUVWR$VLD H[FOXGLQJ-DSDQ DQG2FHDQLD

Link with the DIC Global Website
The ( WEB ) mark indicates that more detailed information and/or
data can be found on the indicated page of the DIC global website.
DIC global website WEB https://www.dic-global.com/en/

Data

Scope of Reporting
In principle, this report provides information on DIC Corporation and consolidated
DIC Group companies worldwide. For information on the scope of reporting for
ESH-related initiatives, please visit the pertinent page of the DIC global website.
WEB https://www.dic-global.com/pdf/csr/environment/dic_report_scope_en_2023.pdf



New Value Creation
Sustainable Technology and Product Development
Digital Transformation (DX)Harmony with the Community and Social Contributions
Communication with Stakeholders
Environment, Safety and Health (ESH)
Climate Change
Quality
Human Resources Management
Sustainable Procurement
ComplianceBusiness Continuity Management (BCM) and Crisis
Management
Information Security

Value Creation Cornerstones

About this Report3Reporting Period
Fiscal year 2022 (January 1–December 31, 2022)

Date of Publication
June 2023 (The next report is scheduled for publication in June 2024.)

Cover Design

Guidelines Referenced

The cover of this year’s DIC Report takes its
inspiration from the natural world, employing
EULJKWO\FRORUHGÀRZHUVWRHYRNH',&¶VUHGH¿QHG
vision statement, which expresses the Company’s
goals of delivering greater value through broader
innovation, improving the human condition andpromoting sustainability for a brighter future.

Guidelines referenced in the preparation of this report were ISO 26000, theInternational Organization for Standardization’s standard for social responsibility,
released in 2010, and Japan’s Responsible Care Code.

DIC Report 2023

2

DIC Group Milestones

1908

1952

Established as
Kawamura Ink
Manufactory

Makes full-scale entry into the synthetic
resins business

1968

Commences sales of the DIC Color Guide®

DICカラーガイド®

Reichhold Chemicals’
San Francisco plant
Dragon product trademark

1957

1970

Enters the market for helmets andother molded plastic products

Founder Kijuro Kawamura

1915

Commences production of offset printing inks

1925

Begins production of organic pigments

1962

Enters the multilayered films business

1973

Enters the market for LCs

Changes name toDainippon Ink andChemicals Incorporated
(DIC)

1973

Establishes the Environment and Safety
Response Department

1986

1940

Acquires the graphic arts materials
division of Sun Chemical Corporation of
the United States

Develops water-based gravure inks
Previous corporate symbol

Diversiﬁes operations by building on capabilities inprinting inks, organic pigments and synthetic resins

Promotes expansion of printing inks business

Offset inks

Printing inks

Gravure inks

B u s i ne ss E x p a n s io nNews inks

The power of color

Organic
pigments

Improved ink performance

DIC Report 2023

3

Flexo inks
Packaging adhesives

Pigments for printing inks
Pigments for coatings
Pigments for plastics

Synthetic
resinsDIC Group Milestones

1990

Opens Kawamura Memorial Museum of Art

2008

2015

Selected for inclusion in the Dow Jones
Sustainability Indices (DJSI) Asia Pacific
Index

Changes name to
DIC Corporation

1995

Declares intention to uphold the principles
of Responsible Care2016

Launches branding program

New corporate symbol

2008

Brand Slogan

2009

2017

Develops groundbreaking series of green
pigments for color filters used in liquid
crystal displays (LCDs)

1999

Acquires Coates, the printing inks divisionof France’s TOTALFINA S.A.

Establishes DIC Graphics Corporation

2010

1999

Succeeds in developing 100% soybean
oil–based printing ink

2021

Joins United Nations
Global Compact (UNGC)

Acquires the Colors & Effects pigments
business from BASF SE of Germany

2015

2007

Launches CSR program (later changing thedesignation used across its program to“sustainability”)

2022

Completes reconstructionof corporate headquarters
building in Nihonbashi,
Tokyo

Leverages M&As to expand global presence and takes
steps to advance environmental protection

Enters capital and business alliance withTAIYO HOLDINGS CO., LTD.

Inaugurates DIC Vision 2030 long-term
management plan

Prepares for a new phase of growth

Packaging & Graphic

Packaging films

Jet inks

Polystyrene

Security inks

Color & Display

Thin-film transistor liquid crystals

Pigments for color filters(TFT LCs)

Pigments for cosmetics/effect pigments

Health foods

Naturally derived pigments

Functional Products

Acrylic resins

Polyester resins

Polyphenylene sulfide (PPS) compounds

Polyurethane resins

Waterborne resins

Industrial adhesive tapes

Epoxy resins

Ultraviolet (UV)-curable resins

Hollow-fiber membranes and modules

DIC Report 2023

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A Message from the President

President & CEO
DIC Corporation

Kaoru Ino

Beyond Color & Comfort:
Building a Trusted Chemical Company

DIC Report 2023

5

A Message from the President

maximizing financial profits. To realize this ideal, we will
increase profitability using a business model that provides awide range of industries with the high-value-added products
needed in a sustainable society. By investing these profits innew businesses, innovative technology development and M&As,
while simultaneously sharing these returns with our members,
shareholders and other stakeholders we will secure sustainablegrowth throughout the DIC Group. To that end, we have beenworking to optimize our business portfolio, promoting initiatives
WKDWGLUHFWO\OLQNWKHSXUVXLWRIVRFLDOEHQH¿WVWKDWHQKDQFHRXU
corporate value.

Fiscal Year 2022 Performance
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QHWVDOHVVXUSDVVHGWULOOLRQIRUWKHÀUVWWLPHLQ\HDUV
In 2022, the ongoing Ukraine crisis fractured the global
economy, while the People’s Republic of China (PRC)
FRQWLQXHGWRHQIRUFHLWV³=HUR&29,'´SROLF\VWLÀLQJORFDO
production as well as local consumption. However, despite themany economic disruptions affecting entire regions around the
ZRUOGWKH',&*URXSPDQDJHGWRVXFFHVVIXOO\ODXQFKLWV¿UVW
HYHUORQJWHUPPDQDJHPHQWSODQ',&9LVLRQIRU¿VFDO
years 2022 to 2030.

In recent years, the widely forecasted global warming has
progressed far faster than expected—a reminder that while“human beings need the earth, the earth doesn't need humanbeings.” The now obviously adverse effects of climate change
have made it clear to those with the power to shape society that
we must focus on the near future now. Carbon neutrality andrecycling—activities capable of both reducing new greenhousegas emissions and enhancing carbon capture—are required
to contribute to sustainability. Companies that are unable tocontribute to these efforts will be weeded out.

,Q¿VFDO\HDUWKHLQDXJXUDO\HDURI',&9LVLRQ',&
achieved net sales of ¥1,054.2 billion - up 23.2% year on year
VXUSDVVLQJWKHRQHWULOOLRQPDUNIRUWKH¿UVWWLPHLQ\HDUV0DMRUIDFWRUVLQÀXHQFLQJRXU¿QDQFLDOUHVXOWVLQFOXGHGRXUKLJKO\successful 2021 acquisition of Germany-based BASF Colors& Effects pigments business, and our ability to appropriatelyreflect increases in energy, logistics and raw materials costsin our product prices. While surpassing ¥1 trillion in net sales
is a significant milestone, these results illustrate how DIC
Group employees can effectively work together even in harsheconomic conditions.

Given current circumstances, the DIC Group should—
performing our role as a global chemical company—
proactively convey its capabilities to contribute to sustainability.
Until now, DIC has existed as a “to be” company, striving to
supply vital materials and products to global industries. Moving
forward, we must continue the process of transforming the DIC
Group into a “to do” company that actively delivers solutions
to the world’s most pressing problems. Furthermore, we will
evaluate corporate activities by their contribution to expandingsocial value, which will in turn lead to expanding financial
value. I believe this is our purpose.

Unfortunately, we did experience a fall in product shipmentsfrom July onward due to a fall in nesting demand, deteriorated
in a negative rebound from gains ascribed to pandemic-induced
stay-at-home lifestyles, notably for some high-value-added
SURGXFWVLQFOXGLQJSLJPHQWVIRUFRORU¿OWHUVDQGHSR[\UHVLQVIRUVHPLFRQGXFWRUVUHÀHFWLQJÀDJJLQJGHPDQGIRUWKHVHW\SHV
of products in some regions.
Due to the ongoing energy crisis and accelerated inflation
triggered by the crisis in Ukraine, economic activity throughout theEuropean Union (EU) shrank, especially in Germany. Beginningin October, EU ink and pigment shipments fell. Moreover, the
PRC’s economic slowdown reduced demand for all products. As
a result, we recorded operating income of ¥39.7 billion - down
7.5% year on year — and return on invested capital (ROIC)—aNH\SUR¿WDELOLW\DQGLQYHVWPHQWHI¿FLHQF\LQGLFDWRU²RI

Thus, we have revised our previous vision (“Providing color andcomfort through chemistry — Color & Comfort by Chemistry”) to“We improve the human condition by safely delivering color andcomfort for sustainable prosperity — Color & Comfort ”

Given heightened geopolitical risks, the outlook for the global
HFRQRP\LQ¿VFDO\HDULVLQFUHDVLQJO\XQFHUWDLQ+RZHYHU
we currently expect to see a full-fledged market recovery to
begin in the second half of the period.

Revising Our Vision in Response to Climate Change:KLOHZHQHHGWKHSODQHWWKHSODQHWGRHVQ WQHHGXV³
Inspiring our vision and long-term management plan
I believe that companies must strive to maximize social
value (e.g., contributions to sustainability) rather than merely

Our new “Beyond Chemistry”
poster

DIC Report 2023

6

A Message from the President

Though we remain a leading fine chemicals company, wedeliberately left out “chemistry” to demonstrate our proactive stancetoward solving problems beyond conventional chemistry. We’ve
also begun using the phrase, “Beyond Chemistry” in our brandcommunications.

1

To realize our Vision under our long-term management plan, DIC
Vision 2030, we will increase sustainable products as a percentage
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annual CO2 emissions by 50% from 2013 level by 2030.

Build a business portfolio that contributes tosustainable prosperity for society

Help achieve sustainability for the global
environment and for society2‫ ٴ‬Promote business portfolio transformation by expanding
businesses in growth markets and creating new businesses
to build a business portfolio that does not depend on ink‫ ٴ‬Advance sustainability strategies‫ ٴ‬Expand selection of sustainable products with the aim ofto help realize a carbon-neutral society

contributing to a society that is increasingly green, digital andemphasizes QOL and of enhancing corporate value

TargetIncrease sustainable products as a percentageof net sales to 60% by FY2030‫ق‬FY2020: 40%‫ك‬

TargetReduce annual CO2 emissions by 50% by FY2030

Contribute to a society that is increasinglyGreenz Achieve carbon neutralityz Realize a circular economy

Digitalz Propel the evolution of informationz
and communicationszz Drive the evolution of CASE (Connected,
Autonomous, Shared and Electric) vehicleszand Mobility as a Service (MaaS)QOLThe DIC Group aims to achieve carbon neutrality—
net zero CO2 emissions—by FY2050 and will seek
to reduce CO2 emissions by 50% from the FY2013
level by FY2030.

Deliver safety, peace ofmind and convenience
Prolong healthy life
expectancy
Embrace diverse values

z Promote the development of AI andthe Internet of Things (IoT) technologies

DIC Vision 2030 targets

health (ESH)-related issues and social changes.
In the area of Value Transformation, though DIC remains theworld's leading ink manufacturer, as digitalization reduces
newspaper and publishing ink markets, we are shifting theweight of our investments to the expected high-growth market
for packaging inks to achieve sustainable growth.

Business Portfolio Transformation
We are establishing DIC as a solution provider throughthe qualitative transformation of existing businesses andthe creation of new businesses that address social issues.
6LQFH¿VFDO\HDUWKH',&*URXSKDVDGRSWHGWKHIROORZLQJ
strategies to adapt to social changes and achieve sustainablegrowth: “Value Transformation,” which focuses on strengthening
the Group’s corporate structure through qualitative reformsof businesses, and “New Pillar Creation,” which emphasizes
creating new businesses in response to environment, safety and

In addition, we are integrating our existing ink, film andadhesive technologies to develop high-performance foodpackaging that better protects packaged goods, reducing foodloss by extending product shelf life. We are increasing ourpresence as a packaging solution provider.

DIC Report 2023

7

A Message from the President

While one can appreciate the convenience of plastics, marine
plastics has recently become a social issue. Thus, we believe
single-use plastics should be eliminated due to the damage
caused by their disposal. DIC's approach is to build and rapidly
adapt for practical use a closed-loop recycling system forpolystyrene that leverages a food container collection system
operated by a customer and DIC’s chemical recycling technology
to convert post-consumer polystyrene containers back into styrene
monomer, the raw material for polystyrene, that is comparable tovirgin styrene monomer. This business is essential to our efforts
to promote a circular economy—a business model consistent with
RXUJRDOVWRHQKDQFH¿QDQFLDOSUR¿WVE\HQKDQFLQJVRFLDOYDOXH

properties, they can contribute to energy-saving measures forvarious products such as automobiles, construction and machinery.
Moreover, the DIC Group is also actively developing a cosmetic
pigments business featuring pigments that can be used as theraw materials for lipsticks and eye shadows, together with U.S.
subsidiary, Sun Chemical Corporation.
In the field of health care, we have begun to challenge theskincare market as a unique initiative. For example, we haverecently developed and commercialized new skin care products
using SACRAN™, a new material with extremely high moistureretention capacity, secreted by freshwater blue-green algae
Suizenji nori. In addition to product development, we believe that
we can also contribute to the conservation of this endangered
algae that grows naturally only in the clear waters of the KoganeRiver in Fukuoka Prefecture.

Conversely, in New Pillar Creation, our Color Materials business
unit*1 has developed functional black pigments with excellent
light detection and ranging (LiDAR)*2 responsiveness and color
design indispensable for autonomous vehicles. Innovative
functional pigments and coating systems that combine theseproperties help overcome drawbacks of conventional carbon
black pigments that absorb signals, attracting the attention ofboth automakers and paint manufacturers around the world.

We will continue to promote the development of sustainableproducts with high added value that enhance our corporate value bycontributing to a society that is increasingly green, digital and Qualityof Life (QOL)-oriented.
*1 The Color Materials business unit now manages the Colors & Effects pigments businessacquired from Germany-based BASF in 2021.
*2 LiDAR is a sensing technology that detects and measures the shape and distance of objects.

As functional black pigments that combine outstanding LiDAR signal
response and visual appeal also offer additional heat-shielding

Conventional carbon black absorbs LiDAR near-infrared rays,
reducing responsiveness.

Business PortfolioTransformation
Designate and focus the allocation of management resources in five priority business areasthat contribute to an increasingly green, digital and QOL-oriented society

Five priority
business areas

SustainableenergySmart living

Healthcare

Color science

Sustainable
packaging

Value Transformation

New Pillar Creation

Strengthen corporate structure throughqualitative reforms of businesses

Create new businesses in response to
ESH-related issues and social changes

DIC Report 2023

8

A Message from the President

Our “One Company” Initiatives

Promoting Greater Member Cohesion

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optimal regional decisions with a global perspective

7RKHOSRXUPHPEHUVPDNHRXUYLVLRQWKHLURZQH[HFXWLYHVYLVLWHGVLWHVDQGHQJDJHGPHPEHUVGLUHFWO\The DIC Group currently operates a diverse range of businesses
LQFRXQWULHVDQGWHUULWRULHVHPSOR\LQJDSSUR[LPDWHO\
people at 190 Group companies. DIC must strive to discover
new way to work as a global organization to realize our visionXQGHUDXQL¿HGVWUDWHJ\8QWLOQRZ',&$VLD3DFL¿F3WH/WGKDV
focused solely on the Asia-Pacific region, DIC(China) on the
PRC and Sun Chemical Corporation, which joined the Group inRQ(XURSHDQG1RUWK$PHULFD

2XUDELOLW\WRDFKLHYHWKHWDUJHWVRI',&9LVLRQE\¿VFDO\HDU2030 will depend on each and every employee's understanding ofour vision and strategies with a sense of ownership. To that end,
we believe that it is vital to conduct direct dialogue from the same
point of view, rather than a top-down approach.
7KXVEHWZHHQWKH¿VFDO\HDUVDQGNH\H[HFXWLYHVLQFOXGLQJP\VHOIKHOGWRZQRXUPHHWLQJVDWORFDORI¿FHV9LVLWLQJmany business sites, we explained our thoughts and ourmessage, exchanging ideas in frank Q&A sessions. I had planned
to visit offices outside Japan as well, however, unable to travel
due to COVID-19 restrictions, we instead held remote meetings in
WKH35&WKH$VLD3DFL¿FUHJLRQ(XURSHDQGWKH8QLWHG6WDWHV

However, with global issues such as climate change, humanrights, health and the environment becoming ever morepressing issues, we believe it is essential for Group members
around the world to function as “One Company ´XQGHUDXQL¿HG
management strategy.
Our acquisition of the Colors & Effects pigments business
was our first meaningful step toward the future. Now, we’realso holding a Management Meeting once every two months,
where regional CEOs from each region can exchange ideas.
By appointing one DIC Asia Pacific executive officer andtwo Sun Chemical executive officers as global HQ executive
officers, management has created a system in which local
business leadership can take responsibility not only for regional
headquarters, but also for reforms across the entire Group. We
are also working to develop a single global enterprise resource
planning (ERP) system for more centralized management so
top management in each region can make more appropriate
management decisions from a Group-wide perspective.

Exchanging ideas and answering young employees' questions about DIC Vision 2030

Though this was the first time we introduced this approach,a member from one of our manufacturing sites asked me,“Should we take it upon ourselves to bring up issues such as
WKHKLJKHQYLURQPHQWDOLPSDFWRIWKHHIÀXHQWIURPHOHFWURQLFVrelated resins production?” And the the question itself seems toindicate that this person understands the new approach.

The CEO of Sun Chemical frequently implores Group members
to, “think globally and act locally.” Moving forward, we will further
accelerate personnel exchanges within the Group to maximize
ERWKRXUVRFLDOYDOXHDQG¿QDQFLDOEHQH¿WVRIWKHHQWLUH*URXS
as “One Company.”

I was inspired by the many enthusiastic opinions expressed.
For example, a participant from Sun Chemical commented,“Overall, I think it's a good management plan. I particularly
agree with the point of becoming a leading company insustainable packaging, and I would like to work on it myself.”$SDUWLFLSDQWIURP',&$VLD3DFL¿FQRWHG³$VLDQPDUNHWVDUH
growing, and I believe that our long-term business plan willdefinitely succeed. While I feel like we are lagging behind
Europe and the United States in terms of sustainability, I
know we will do our best.” A participant from DIC(China)
stated, “I agree with the notion of promoting strategies froma long-term perspective. The pace of change in the PRC
is rapid, so we should move ahead with things that can bebrought forward. And we need active support to do so.”Global Management Meeting

DIC Report 2023

9

A Message from the President

In February 2023, we established an “active floor” at our
corporate headquarters in Tokyo that supports some of theautonomous working styles attracting recent attention, as a
response to member telling us that office spaces that makepeople want to gather were needed.

Strengthening Human Resource Management)RFXVLQJRQV\VWHPVDQGRSHUDWLRQVWKDWPDNHRXUSHRSOHWUXO\ KDSS\ WR EH ',& *URXS PHPEHUV PXOWLSO\LQJ WKHEHQHÀWVRIZRUNVDWLVIDFWLRQDQGSURGXFWLYLW\Having experienced the advantages of unexpected insightfrom random conversations—even with those working indifferent departments—and being surrounded by opportunities
for inspiration, I continue to value conventional office spaces.
However, I also see the need for a new office space more
readily adaptable for diverse needs. Although we are still
experimenting with the concept, we hope that our members will
EHDEOHWRDSSURSULDWHO\FRPELQHUHPRWHZRUNDQGRI¿FHZRUN
according to their lifestyles, and fully utilize the functions of our
new office. We aim to enhance work styles, and will continue
promoting work style reforms as well as work environment
improvements as a driving force for creating new innovations.

Put simply, we want to make DIC a company where our people
are truly proud and happy to be. This is one of the mostimportant DIC Vision 2030 strategies. Through Group-wide
talent management, we will proactively generate social value by
improving both job satisfaction and productivity. To this end, weare maximizing investments in human resource development,
work environment improvements, and personnel system
reforms. By simultaneously enhancing both job satisfaction andproductivity, we can generate enhanced social value.
In 2020, we launched the Work Style Revolution 2020
(WSR2020) initiative in Japan. Here, we established threecommittees charged with job satisfaction reforms, workplacereforms, and process reforms, taking on the challenge ofcreating work styles more suited for a digital society.

,GHDVÀRZRQWKHFRUSRUDWHKHDGTXDUWHUV¶QHZ³DFWLYHÀRRU”

technologies from the development and manufacturing ofinks. Moreover, our technological prowess in the area of color
continue to provide social value, offering something no otherchemical company in the world can match.

To Our Stakeholders$V ZH VWULYH WR EHFRPH D XQLTXH JOREDO FRPSDQ\ WKDWLV WUXVWHG E\ VRFLHW\ ',& *URXS PHPEHUV DUH ZRUNLQJ
together to enhance our social value

As DIC seeks to become trusted by society—including all
stakeholders—where members are proud to say, “We can doit because we are DIC” and “Our company is indispensable tosociety.” With that in mind, we seek to incorporate the phrase,“becoming a unique global company that is trusted by society”
in our long-term management plan.

When tapped to serve as president in 2018, I was inspired tothink more deeply about what kind of company DIC should
become, how to best demonstrate the Group's unique features
DQGWKHGLUHFWLRQLQZKLFKZHVKRXOGSURFHHG7KLVZDVP\¿UVW
job as the DIC Group skipper. Here, I introduced the phrase,“becoming a unique global company that is trusted by society.”

Most recently characterized by increasing uncertainty,
the current global economy inspires us to reconsider the
preciousness of a peaceful, prosperous and sustainable world—and perhaps most urgently, the importance of doing the rightthing, in the right way. The DIC Group will continue to view
striving sustainable growth to enhance its social value as thedriving force behind its sustainable growth initiatives.

Initially established as a manufacturer of printing inks over
one hundred years ago, DIC has grown into a global company
providing chemical materials and products to a wide range of
LQGXVWULDO¿HOGVLQFOXGLQJDXWRPRELOHVHOHFWURQLFVHTXLSPHQWfood, and construction, by successfully leveraging ourimpressive technical know-how to develop many new derivative

DIC Report 2023

10

DIC Vision 2030 Long-Term Management Plan
,Q¿VFDO\HDU',&LQWURGXFHGDUHGH¿QHGYLVLRQVWDWHPHQW“:HLPSURYHWKHKXPDQFRQGLWLRQE\GHOLYHULQJVDIHO\FRORUDQGFRPIRUWIRUVXVWDLQDEOH
SURVSHULW\²Color & Comfort”DQGODXQFKHGDQHZORQJWHUPPDQDJHPHQWSODQ',&9LVLRQZKLFKZLOOJXLGHWKH',&*URXSWKURXJK¿VFDO\HDU

Basic Policy
Safely delivering Color & Comfort for sustainable prosperity to enhance shareholder value
and long-term corporate value—Establishing a business portfolio beyond ink products and implementing carbon neutrality initiatives—

DIC in the Future1

Build a business portfolio that contributes tosustainable prosperity for society

Help achieve sustainability for the global
environment and for society2‫ ٴ‬Promote business portfolio transformation by expanding
businesses in growth markets and creating new businesses
to build a business portfolio that does not depend on ink‫ ٴ‬Advance sustainability strategies to help

‫ ٴ‬Expand selection of sustainable products with the aim ofrealize a carbon-neutral society

contributing to a society that is increasingly green, digital andemphasizes QOL and of enhancing corporate value

TargetIncrease sustainable products as a percentageof net sales to 60% by FY2030‫ق‬FY2020: 40%‫ك‬

TargetReduce annual CO2 emissions by 50% by FY2030

Contribute to a society that is increasingly
Green

Digitalz Achieve carbon neutralityz Realize a circular economy

QOL

z Propel the evolution of informationz
and communicationsz Drive the evolution of CASE(Connected,zAutonomous, Shared and Electric) vehicles
and Mobility as a Service(MaaS)zz Promote the development of AI andIoT technologies

The DIC Group aims to achieve carbon neutrality—
net zero CO2 emissions—by FY2050 and will seek
to reduce CO2 emissions by 50% from the FY2013
level by FY2030.

Deliver safety, peace ofmind and convenience
Prolong healthy life
expectancy
Embrace diverse values

Basic Strategies
Business Portfolio Transformation
Designate and focus the allocation of management resources in five priority business areas that contribute to an increasingly green, digital and QOL-oriented society

Five priority
business areas
Smart living

Value Transformation

SustainableenergyStrengthen corporate structure throughqualitative reforms of businesses

Healthcare

New Pillar Creation

Sustainable
packaging

Color science–

Create new businesses in response to
ESH-related issues and social changes

Enhance the technology platform

Make strategic investments

Reinforce management of human capital

Shift to R&D that leverages computational science
Establish new basic technologies

Invest strategically, including in M&As, to transform thebusiness portfolio
Build a new business portfolio that takes ROIC into account

Build a strategic human resources portfolio thatmaximizes the value of human capital

Establish a more global management configuration

Promote IT and DX

Adopt a sophisticated global management modeland accelerate global expansion in five priority
business areas

Use digital technologies to provide new
added value and revamp the Group’sbusiness structure

Sustainability Strategies
Expand sustainable products

Reduce CO2 emissions

Respond to a circular economy

Work to expand sustainable products, that is,
products that demonstrate unique competitive
strengths and respond to ESH-related issues

Promote efforts to reduce CO2 emissions andhelp realize a carbon-neutral society

Advance efforts to respond to a circular economy,
thereby contributing to a sustainable society

DIC Report 2023

11

DIC Vision 2030 Long-Term Management Plan

Business Portfolio Transformation● ,GHQWLI\DQGFRQFHQWUDWHDOORFDWLRQRIPDQDJHPHQWUHVRXUFHVLQ¿YHSULRULW\EXVLQHVVDUHDVLQZKLFK',&FDQPDNHLPSRUWDQWFRQWULEXWLRQVWRD

VRFLHW\WKDWLVLQFUHDVLQJO\JUHHQGLJLWDODQG42/RULHQWHG● %DVHGRQPDUNHWJURZWKSRWHQWLDODQGGHJUHHRILPSDFWRQVRFLHW\LGHQWLI\¿YHSULRULW\EXVLQHVVDUHDVDWWKHLQWHUVHFWLRQRI(6+UHODWHGLVVXHVDQG',&¶VFRPSHWLWLYHVWUHQJWKV▶ Sustainable energy▶ Healthcare▶ Smart living ▶ Color science ▶ Sustainable packaging● (VWDEOLVKVXVWDLQDEOHHQHUJ\DQGKHDOWKFDUHDVQHZEXVLQHVVSLOODUV● 3URPRWH9DOXH7UDQVIRUPDWLRQLQVPDUWOLYLQJFRORUVFLHQFHDQGVXVWDLQDEOHSDFNDJLQJWRPDNHWKHVHEXVLQHVVHVPRUHVXVWDLQDEOH

Business Portfolio Transformation: Five Priority Business Areas

Sustainable energy

Healthcare‫ٴ‬Specialty materials that contribute to the realization of the high-performancesecondary batteries and fuel cells crucial to an electrified/hydrogenpowered society‫ٴ‬High-performance nutritional supplements that support the health of peopleof all ages
‫ٴ‬Healthcare-related products and services that deliver safety,
peace of mind and comfort, contributing to a future in whichpeople enjoy an improved QOL

e.g.

Materials for secondary batteries and fuel cells
Functional inorganic fillers

e.g.

High-performance nutritional products
Natural skincare materials

Smart living

Color science

Sustainable packaging‫ٴ‬High-performance materials and solutions
that contribute to the realization of a sustainable
society that coexists with a healthy global
environment‫ٴ‬Chemical solutions for modern lives that have
evolved and improved thanks to digitalization‫ٴ‬Color that is sustainable and ecologically sound‫ٴ‬Products with outstanding decorative properties
that facilitate the creation of comfortable spaces‫ٴ‬Functional materials that leverage dyeing
technologies to deliver convenience,satisfaction, safety and peace of mind

‫ٴ‬Materials that ensure tastier, more enjoyable andsafer merchandise reaches consumers‫ٴ‬Materials that deliver safety, peace of mind
and convenience, as well as help reduce food loss
‫ٴ‬Product design that contributes to a circular
economy, i.e., is conducive to recycling anduses plant-derived and renewable raw materials

Materials for 5G/6G-enabled
devices, resins for nexte.g. generation semiconductors,
bonding solutions forheterogeneous materials

Functional pigments (forLiDAR signal coatings, ande.g. heat-blocking coatings),
biomass pigments, natural
colorants for cosmetics

Materials with outstanding
barrier properties, biomasse.g. packaging, recycling systems(chemical recycling, material
recycling)

Five Strategies to Transform DIC’s Business Portfolio

Reinforce management of human capital

Make strategic investments

Enhance the technology platform● %XLOGDVWUDWHJLFKXPDQUHVRXUFHVSRUWIROLRWKDWPD[LPL]HVWKHYDOXHRIKXPDQFDSLWDO● ,QYHVWVWUDWHJLFDOO\LQFOXGLQJLQ0 $VWRWUDQVIRUPWKHEXVLQHVVSRUWIROLR● %XLOGDQHZEXVLQHVVSRUWIROLRWKDWWDNHV52,&LQWRDFFRXQW● 6KLIWWR5 'WKDWOHYHUDJHVFRPSXWDWLRQDOVFLHQFH● (VWDEOLVKQHZEDVLFWHFKQRORJLHV

Establish a more robust global
PDQDJHPHQWFRQÀJXUDWLRQ● $GRSWDVRSKLVWLFDWHGJOREDOPDQDJHPHQWPRGHODQGDFFHOHUDWHJOREDOH[SDQVLRQLQ¿YHSULRULW\EXVLQHVVDUHDV

Promote IT and DX● 8VHGLJLWDOWHFKQRORJLHVWRSURYLGHQHZDGGHGYDOXHDQGUHYDPSWKH*URXS¶VEXVLQHVVVWUXFWXUH

DIC Report 2023

12

The DIC Group’s Approach to Value Creation

Management capital (Inputs)

Foundation for corporate activities

One Company
Intellectual capitalThink Globally, Act LocallyPatents held: 16,000

DIC’s competitive strengths (Sources of value)
Social capital
190 Group companies in
63 countries and territories

Natural capitalFresh water withdrawn: 54,608,000 m3
Energy consumed: 14,569,000 GJ

Ability to realize new products
Product development that leverages ability to combine multiple technologies(Enjoys a leading share of the global markets for printing inks, pigments and PPS resins)
3
Ability
to propose
solutions
水使用量38,000千m
エネルギー消費量●千GJ
Proposals that
help resolve social imperatives(Responds to customer needs by capitalizing on specialized technological know-how)Technological foundation
Human capital

Existing basic technologies: Optics and color, organic materials design, polymer design,
dispersion, applicability assessment
New basic technologies: Biomaterials design, inorganic materials design

22,743 employees

Global operating foundation
Manufacturing capital

Resources and a network that span the globe
Extensive presence encompassing diverse regions, cultures and human resources

Annual capital
investment: ¥49.5 billion

The DIC Way
Social capitalCore values: Enterprising, integrity, dedication & loyalty, diversity and social responsibility

Cooperation with stakeholders
and communities

DIC Report 2023

13

The DIC Group’s Approach to Value Creation

This chart represents how the DIC Group is creating new value with the goal of achieving sustainable growth. The Group is leveraging its
competitive strengths, including its human and social capital, to expand its operations in priority business areas by promoting sustainability
strategies in line with DIC Vision 2030. Operating as “One Company,” that is, as a single, cohesive corporate entity, the Group aims tocontribute to a society that is increasingly green, digital and QOL-oriented, while at the same time expanding its global presence, including in
Asia, Europe and the Americas.

Evolution into the organization
envisioned in DIC Vision 2030

Value Transformation
DIC Vision 2030

Portfolio transformation

Resolution of social
imperatives (Outputs)

Strengthen corporate structure through qualitative reforms of businesses

Five priority
business areas
Sustainable energy

A society that isincreasingly green• Achieve carbon neutrality

Sustainability strategies• Realize a circular economy• Expand sustainable products• Reduce CO2 emissions

Healthcare• Respond to a circular economy

DIC NET ZERO 2050

A society that isincreasingly digital

DICグループは、「 2030年度 50%削減（2013年度比）」「2050年度カーボンネットゼロ」の実現を目指します

Smart living

Five strategies supportingtransformation of the DIC Group’sbusiness portfolio• Propel the evolution of informationand communications• Drive the evolution of CASE vehicles
and MaaS• Promote the development of AI
and IoT technologies

Color science

A society that isincreasingly
QOL-oriented• Enhance the technology platform• Establish a more rodust global management
configuration• Reinforce management of human capital

Sustainable packaging• Deliver safety, peace of mind
and convenience• Make strategic investments• Promote IT and DX• Prolong healthy life expectancy• Embrace diverse values

New Pillar Creation

Create new businesses in response to ESH-related issues and social changes

DIC Report 2023

14

Overview of Materiality
Material Issues and Related Initiatives
Transformation to a business portfolio that contributes to

1 sustainable prosperity for society

2 Contribution to the realization of carbon neutrality

Shift to a business portfolio focused on five priority business areasthat deliver social value.

Advance CO2 emission reductions in the market and provide
products and services that contribute to decarbonization.

(Focus on the five priority business areas set forth in DIC Vision 2030.)(For more information, please see pages 3–4, 7–8, 11–12 and 36–38.)(Work to reduce Scope 1 and 2 CO2 emissions and to lower product carbon footprint.)(For more information, please see pages 86–95 and 119–121.)of new businesses with the potential to
3 Creation
become mainstays

4 Promotion of efforts to maximize the value of human capital

Ensure a better future for people’s lives and the environment andrealize greater social benefits that enhance shareholder value.

Build a strategic human resources portfolio that maximizes the value of humancapital through medium- to long-term efforts to foster human resources.

(Identify areas at the intersection of ESH-related issues and social changes and the
DIC Group’s core competencies and foster new businesses.)(For more information, please see pages 27 and 37–38.)(Ensure mobility, improve engagement and organizational cohesiveness, andencourage ongoing efforts to increase diversity and reform work styles.)(For more information, please see pages 10 and 98–118.)

6 Promotion of DX

5 Establishment of a more robust global management configuration

Leverage digital technologies and data to provide new added value andstrengthen the DIC Group’s business structure.

Accelerate global expansion in priority business areas.
(Advance global management governance, foster and strengthen management
personnel, and create a global ERP system.)(For more information, please see pages 17–27.)(Innovate business processes, work styles and business models, and revamp the
DIC Group’s corporate culture and business structure.)(For more information, please see pages 31 and 41–43.)

7 Response to a circular economy

8 Creation of a sustainable supply chain

Contribute to the realization of a waste-free society that does not depend on
resource consumption as part of a greater global effort to address climate change.

Encourage responsible procurement that takes into account global human rights
issues, as well as environmental issues such as climate change and water risk.

(Foster products that help reduce CO2 emissions in categories 1 and 12 of Scope 3,
and advance chemical and material recycling.)(For more information, please see pages 22, 39–41 and 68–72.)(Promote awareness of the current status of raw materials and appropriate responses to country
risk and various supply disruption risks, and to issues regarding environmental soundness.)(For more information, please see pages 43, 93–94, 111 and 119–121.)

Identifying Material Issues
Step 1

Abstract issues

The DIC Group abstracts issues, referencing the GRI’s G4 Sustainability Reporting Guidelines and items
weighted by environmental, social and governance (ESG) assessment organizations, and considering issues
delineated in DIC Vision 2030 and The DIC Way, as well as social imperatives.

Step 2

Assess materiality

Abstracted issues are examined by relevant internal departments.

Step 3

Reflect perspectives ofoutside experts

Abstracted issues are discussed with objective outside experts, whose views are reflected.

Step 4

Identify material issues

Step 5Present to management
team/debate

Issues identified as material are submitted to the Sustainability Committee for deliberation.

Step 6

Finalize

Material issues are approved and finalized.

A proposal is prepared by the secretariat for discussion by the Sustainability Committee, which is responsible
for the implementation of concrete strategies.

DIC Report 2023

15

Overview of Materiality

Going forward, the Company will continue contributing to sustainable
prosperity for society through the development and provision ofsustainable products that respond to social imperatives by helping
decrease energy consumption and environmental impact.

■ Active Development of Businesses that Contributeto Sustainability
In fiscal year 2021, the Colors & Effects pigments business joined the DIC
Group, further reinforcing the Group’s diverse human resources portfolio
and global network. Backed by a stable global management framework that
capitalizes on these competitive strengths, Group employees around the world
are working to help address global social imperatives such as climate change
and marine plastics, establishing the Group’s reputation as a provider ofsolutions, in line with its fundamental objective of evolving as a unique global
company that is trusted by society.

■ Building of a Globally Optimized Digital

SCM Platform
DIC recently built a digital supply chain management (SCM)
platform that leverages advanced digital technologies to optimize
supply chains in its core businesses. Plans are to initially introduce
the new platform in certain markets and sectors of the color
materials and performance materials businesses and to achieve
IXOOGHSOR\PHQWZRUOGZLGHE\ILVFDO\HDU7KLVGLJLWDO6&0
platform will facilitate the elimination of structural and regionalboundaries in supply chains and secure the organizational
capabilities necessary to grow businesses on a global scale. Useof the platform to analyze potential demand fluctuations frommultiple perspectives will also elevate services for customers,
as well as the DIC Group’s ability to respond to emerging needs,
thereby driving the further improvement of customer value.

■ Introduction of Electric Power Generated Using

Renewable Energy
In fiscal year 2022, the DIC Group’s 36 sites in Japan, which
include corporate headquarters, branches, plants and a researchlaboratory, resolved to introduce green power, that is, purchased
electric power generated using renewable energy, as well as to
LQWURGXFH*UHHQ3RZHU&HUWL¿FDWHVDQG1RQ)RVVLO&HUWL¿FDWHVDOO
of which are recognized as having environmental value in terms of
reduced CO2 emissions. DIC’s corporate headquarters completed
its switch to electric power generated using renewable energy in
1RYHPEHU2WKHUVLWHVEHJDQFKDQJLQJRYHULQ$SULO7KH
Group expects this to support a reduction in annual CO2 emissionsof approximately 77,000 tonnes, equivalent to roughly 38% of CO2
emissions (Scope 1 and 2) from its sites in Japan.

■ Exploration of the Production of Biomass

Polystyrene',&UHDFKHGDQDJUHHPHQWZLWK,GHPLWVX.RVDQ&R/WGWR
build a new biomass plastics supply chain, as well as to begin
exploring the production of biomass polystyrene. Both DIC
and Idemitsu Kosan recognize stepping up efforts to address
climate change and advancing the sustainable, circular useof resources as key management responsibilities, prompting
the decision to explore production of low environmental impact
SRO\VW\UHQH7KHWZRFRPSDQLHVKDYHDJUHHGRQDEDVLFSROLF\of contributing to the reduction of CO2 emissions in the plastics
LQGXVWU\IRUWKHQHZVXSSO\FKDLQWKH\ZLOOEXLOG7KURXJKWKLV
partnership, the two companies will continue to strengthen
their cooperation with customers and suppliers, with the goalof ensuring the new supply chain’s carbon neutrality andcontributing to a circular economy.

7KH',&*URXSDLPVWRDFKLHYHFDUERQQHXWUDOLW\E\ILVFDO\HDU7RWKLVHQGWKH*URXSZLOOFRQWLQXHZRUNLQJDFWLYHO\WR
reduce its CO2HPLVVLRQVE\LQVWDOOLQJHQHUJ\VDYLQJHTXLSPHQWXQGHUWDNLQJHQHUJ\VDYLQJLQLWLDWLYHVDQGHPSOR\LQJUHQHZDEOH
energy at suitable sites.

■ Development of Waterborne Anode Binder for LiBs
In the period under review, DIC announced the developmentof WATERSOL®/%DZDWHUERUQHDQRGHELQGHUIRUOLWKLXPLRQ
EDWWHULHV /L%V $VDZDWHUERUQHSURGXFWZLWKDORZHQYLURQPHQWDO
impact, WATERSOL®/%KHOSVSURORQJEDWWHU\OLIHE\DPRQJRWKHUVsuppressing expansion and ensuring low internal resistance.

Other Management Issues
In the process of identifying material issues, the DIC Group also recognized the following as issues with the potential to significantly
impact its management. The Group will continue working to address/strengthen its response to these issues through its business activities.
Environmental

Product stewardship, reduction of environmental impact, intellectual property strategies

Environmental
and social

Strengthening of partnerships

SocialGovernance
Other

Communication with customers and markets, contribution to local communities, response to pandemics
Ability to optimize capital efficiency, business continuity, political and geopolitical change, information security,
response to tax-related risks, response to currency fluctuations
Ability to help realize colorful and comfortable lifestyles

DIC Report 2023

16

The DIC Group: A Global Powerhouse
63

EuropeAfrica15

30

Net sales

Japan

Asia
Net sales¥312.9 billion¥230.9 billion

Operating income

Operating income¥1.7billion¥13.8 billion

14

Net sales2

DIC (China) Co., Ltd., DIC Asia
Pacific Pte Ltd and others

Net sales

Operating income¥9.8 billion

Japan(Excluding Japan)

Sun Chemical Group and others¥233.7 billion

DIC Corporation, DIC Graphics
Corporation and others

Asia and Oceania
Europe and Africa

North, Central andSouth America
Sun Chemical Group and others

63

3

North
America¥379.4 billion
Operating income¥23.6 billion

Oceania

Central & SouthAmerica

Breakdown of Fiscal Year 2022 Net Sales by Region

Breakdown of Fiscal Year 2022 Operating Income by Region

Asia and Oceania

Asia and Oceania

20.0%

28.2%

North, Central andSouth America

20.2%¥1,054.2
billionNorth, Central andSouth America

Japan

32.8%

20.1%

Europe and Africa

Europe and Africa

27.0%

3.4%

¥39.7
billion

Japan

48.2%

Note: Operating income as used here includes eliminations (approximately ¥9.2 billion). Accordingly, these percentages do not represent shares of reported operating income.

Principal Group R&D Sites Outside Japan
Polymer Technical Center—China
Printing Inks Technical Center—China
Qingdao DIC Finechemicals (PRC)
Rochdale(United Kingdom)Midsomer Norton(United Kingdom)

Ludwigshafen
am Rhein(Germany)
Besigsheim(Germany)

Cincinnati(United States)

St. Charles(United States)

Peekskill(United States)

Fine Chemical
Technical Center—Korea

Tarrytown(United States)

Gallarta(Spain)R&D Sites (Japan)
Eurolab(Germany)

Tape Technical Center—China
DIC/Earthrise Algae
Research Center(United States)

Printing Inks
Technical Center—
Asia Pacific (Thailand)
Polymer Technical Center—
Asia Pacific (Thailand)

Carlstadt(United States)

Solid Compound
Technical Center—
Asia Pacific (Malaysia)
Pigment Technical Center—
Asia Pacific (Indonesia)

DIC Report 2023

17

Advancing DIC Vision 2030: Sun Chemical’s Activities
Collaborating and cooperating with colleagues to make progress toward
addressing climate change and social imperatives
Myron Petruch
President and CEO
Sun Chemical Corporation■ Realizing a Sustainable Society through the

To further strengthen sustainable product development,
Sun Chemical utilizes EcoVadis,* a third-party provider ofsustainability ratings, to score its suppliers. More than 71% of
suppliers (by addressable spend) are now on the EcoVadis
platform. Sun Chemical requires its suppliers to address any
GH¿FLHQFLHVLGHQWL¿HGE\(FR9DGLV$FKLHYHPHQWRID6LJQLÀFDQW5HGXFWLRQLQ
Greenhouse Gas Emissions
Validated by the Science Based Targets initiative (SBTi),*
Sun Chemical is committed to: (1) reducing greenhouse gas
emissions 27.5% by 2030 relative to the 2019 base year, (2)lowering greenhouse gas emissions from capital goods, fueland energy-related activities, upstream transportation anddistribution, waste generated in operations and end-of-life
treatment of sold products 13.5% by 2030 from the 2019 baseyear, and (3) working so that 80% of its suppliers by spend,
covering purchased goods and services, will have sciencebased targets by 2027.

* EcoVadis SAS is a French company that evaluates the supply chain sustainability of companies
in 160 countries.

■ )XUWKHU([SDQGLQJWKH6FRSHRI(IIRUWVWR$GGUHVVThe DIC Group has set a target of reducing CO 2 emissions(Scope 1 and 2) by 50% from the fiscal year 2013 level by
fiscal year 2030 and of achieving carbon neutrality by fiscal
year 2050. This will be accomplished by transitioning to green
power—including both purchased and generated on-site—
and advancing fossil fuel reductions, mainly through energyHI¿FLHQF\LPSURYHPHQWVSocial ,PSHUDWLYHVDVD0DUNHW/HDGHU
Sustainability is nothing new at Sun Chemical. For over a
decade, Sun Chemical has shown its commitment and market
leadership. With a cohesive strategy focused on operations,products and services, and collaboration, as well as anorganizational framework positioned around the 5Rs approach,
Sun Chemical has continued to strengthen its message andadvance its portfolio of enabling solutions in the marketplace tobe the clear sustainability partner of choice.

* The SBTi is a partnership that encourages companies to set science-based greenhouse gas
emissions reduction targets that are in line with the goal of the Paris Agreement.

■ Strengthening Development of Sustainable■ 6KDULQJ,GHDVDQG:RUNLQJ7RJHWKHU&ORVHO\DV

3URGXFWV%DVHGRQ',&9LVLRQ

´2QH&RPSDQ\µSustainable product development at Sun Chemical is definedas the design of products or processes that reduce greenhousegas emissions related to climate change, conserve virginresources and/or lower the accumulation of waste compared toconventional products or processes they replace. In line with
DIC Vision 2030, Sun Chemical uses the “5Rs” (reuse, reduce,
renew, recycle and redesign) to align its sustainability practices
through product development and supplier collaborations.
These approaches span all our business units—inks, coatings,
adhesives, color materials and advanced materials—and guidethe way we develop, manufacture and distribute products.

Sun Chemical’s actions in sustainability also allow for furthering
the idea of “One Company” throughout the DIC Group. Sharing
ideas across regions and collaborating on projects are a way
to highlight the commitment to global sustainability and local
diversity. Through this approach, both Sun Chemical and theoverall DIC Group are stronger as an organization.

DIC Report 2023

18

$GYDQFLQJ',&9LVLRQ',&$VLD3DFL¿F¶V$FWLYLWLHV
Leading the market by becoming a one-stop provider of products and services
based on the concept of sustainability
Paul Koek
Managing Director',&$VLD3DFL¿F3WH/WG■ )RFXVLQJRQ%XVLQHVV(IÀFLHQF\DQG'LJLWDOL]DWLRQ

■ 'HFDUERQL]LQJ0DQXIDFWXULQJIRUD%HWWHU)XWXUH

DPLG7XUEXOHQFH

IRUWKH3ODQHWDQG6RFLHW\

In 2022, the Asia–Pacific region faced a “perfect storm” ofchallenges, including the global supply chain disruptions, highraw materials costs, armed conflict and high energy costs,
coupled with high interest costs, weak Asian currencies andLQÀDWLRQDOODFWLQJLQFRQFHUWWRVLJQL¿FDQWO\LPSDFWFRQVXPHUV¶
buying power. To address these challenges, DIC Asia Pacificfocused on managing process efficiencies, driving businesssynergies, improving the product portfolio and streamlining
business activities. Additionally, we continued with digitalization
initiatives, further driving both standardization and consolidationof business processes and introduced customer relationshipmanagement (CRM) systems across all regional entities. We willcontinue to promote the use of IT and digitalization/automation
to support business visualization, as well as to enhance theaccessibility of information to drive the growth of our businesses.

DIC Asia Pacific has taken significant steps toward reducing
LWVFDUERQIRRWSULQWLQWKHUHJLRQ6SHFL¿FDOO\ZHDUHPDQDJLQJ
CO2 emissions and have implemented a comprehensive planacross all regional entities.
Our factories have made concerted efforts to reduce fuel/diesel
oil usage by replacing equipment and machines with electricalternatives, adopting new technologies to manage electricity
use better and improving waste management procedures.
Additionally, we are exploring automation in production to
reduce CO2 emissions further, and introducing the use of solar
to run some of the factory operations. We will continue toaccelerate our decarbonization efforts with the aim of ensuring abetter future for us and for the environment.

■ 0D[LPL]LQJ',&*URXS6\QHUJLHVDV´2QH&RPSDQ\µ■ )RVWHULQJD&XOWXUHRI6XVWDLQDELOLW\DQG

The Asia–Pacific region is highly competitive, and customers
here are primarily concerned with prices. As a result,sustainability goals have been put on the back burner.
+RZHYHUDW',&$VLD3DFL¿FZHVHHWKLVDVDQRSSRUWXQLW\WR
expand our operations and believe that improving our range ofsustainable products and services and deepening our consulting
activities, technical services and solutions will increase ourcompetitiveness and add value to our products.

7UDQVIRUPLQJ2XU%XVLQHVV3RUWIROLR
Our business portfolio has undergone a significant
transformation toward sustainability. Expanded sales ofsustainable products, such as functional coatings and barrier
adhesives, are prime examples. This reflects our efforts toanalyze market trends, respond to customers’ needs, promptly
address environmental regulations established by the Frenchgovernment and swiftly introduce mineral oil–free offset inks.

7RWKLVHQGDW',&$VLD3DFL¿FZHUHFRJQL]HWKHLPSRUWDQFH
of sustainable development and will prioritize programs andprocesses that will reduce greenhouse gas emissions, minimize
waste, conserve energy and water, and promote renewable
resources. We will continue to accelerate these initiatives and
GHHSHQFRRSHUDWLRQQRWRQO\LQWKH$VLD±3DFL¿FUHJLRQEXWDOVR
with our colleagues in the Americas, Europe and Greater China,
as well as with corporate headquarters in Japan, with the aimof maximizing Group synergies as “One Company’’ and driving
sustainable growth.

By incorporating sustainable practices into business operations inthis way, the overall sustainability of society is enhanced. One of
our top priorities is to work closely with our staff to provide better
education on sustainable products. This will create a culture ofsustainability within the organization, reduce our environmental
footprint, and enhance our competitiveness in the market.

DIC Report 2023

19

Advancing DIC Vision 2030: DIC (China)’s Activities
Charting dramatic progress by focusing on R&D capabilities
and sustainability strategies
Mao Jianwei
General Manager
DIC (China) Co., Ltd.

DIC (China) is also gradually taking steps to expedite the developmentof products tailored to the local market, introducing an incentive system
as well as CRM, sales force automation (SFA) and development
project management systems aimed at, among others, ensuring it
keeps abreast of customer needs. We have also begun introducing
digital marketing tools, and will continue to foster the development of a
ZLGHUDQJHRIRULJLQDOSURGXFWVWKDWUHÀHFWWKHGLVWLQFWLYHFKDUDFWHULVWLFVof the domestic market by encouraging greater cooperation between
our marketing and R&D teams so we are able to more swiftly identify
customer needs.

■ )RUWLI\LQJ5 'WR'ULYH%XVLQHVV3RUWIROLR7UDQVIRUPDWLRQAs the entry of foreign-affiliated firms into the PRC and the rapid
emergence of privately operated local companies have spurredfierce market competition, cutting-edge product development andtechnological innovation in the local market have become increasingly
indispensable for a company to establish a position as an industry
leader. We have seen an increasing number of global chemicals
companies establish R&D bases here, as well as invest in local
technological development capabilities. Against this backdrop, in 1996
DIC’s management at the time had the foresight to set up Qingdao
DIC Finechemicals Co., Ltd., the PRC’s first foreign-affiliated R&D
IDFLOLW\LQWKHFKHPLFDOV¿HOG,QUHFHQW\HDUVZHDOVRHVWDEOLVKHGWKH
Polymer Technical Center–China; the Printing Inks Technical Center–
China, the PPS compounds technical service center and the Tape
Technical Center–China. In 2022, the number of employees engaged
in technological development surpassed 200. The focus of their efforts
has also evolved from the in-house production of offerings developed
overseas to the development of original products tailored to the needsof the domestic market.

■ &RQWULEXWLQJWR6XVWDLQDEOH3URVSHULW\IRUWKH3ODQHWDQG6RFLHW\WKURXJK',&9LVLRQ
As part of its sustainability strategy for Greater China, DIC (China) is
encouraging companies in the region to promote various initiatives
aimed at achieving carbon neutrality. Nantong DIC Color Co., Ltd.,for example, achieved odor-free production by expanding its facilities
and improving related processes. In another example, Hainan DIC
Microalgae Co., Ltd., as the result of constructing a rainproof coverthat shields 20% of the area of its algae cultivation facility, had as of
October 2022 succeeded in reducing its annual total discharge of
wastewater by 40,901 m3, an achievement that has not only reduced
costs but also protects the environment.

■ (QKDQFLQJ2XU2SHUDWLQJ)RXQGDWLRQE\0DNLQJ6WUDWHJLF,QYHVWPHQWVDQG3URPRWLQJ';In July 2022, the DIC Group acquired Guangdong TOD New Materials
Co., Ltd. (TODNM). The purpose of this move was to boost its local
production capacity for waterborne coating resins, as well as tofurther reinforce its product development capabilities, and support
efforts to expand its local synthetic resins business in the PRC. The
technologies of TODNM—since renamed Guangdong DIC TOD Resins
Co., Ltd. (TOD)—complement the DIC Group’s existing technologies,
positioning us well to supply a broad range of customers with resinsthat both help reduce environmental impact and add functionality. The
acquisition also further strengthened the Group’s R&D, production andsales capabilities in the PRC, giving it a keen competitive edge in thelocal market for coating resins.

In line with the basic policy of DIC Vision 2030, DIC (China) and thecompanies of the DIC Group in the PRC will continue to fortify their R&D
efforts to accommodate the needs of domestic customers, devoting
their utmost efforts to responding effectively and providing ever-greater
value while at the same time striving to contribute to sustainability forour customers and society at large. We will also work closely with our
FROOHDJXHVLQWKH$VLD±3DFL¿FUHJLRQ(XURSHDQGWKH$PHULFDVDQGDW
corporate headquarters in Japan, to support the stable and sustainableevolution of the global DIC Group as “One Company.”

DIC Report 2023

20

Packaging & Graphic
Packaging Materials that Bring
Safety and Peace of Mind

SDGs Goals 12, 13 and 14

Masamichi Sota
0DQDJLQJ([HFXWLYH2I¿FHU
President, Packaging &Graphic Business Group

Comment
DIC is the only company capable of providing comprehensive packaging
solutions encompassing printing inks, coatings, adhesives and films. In
fiscal year 2022, our DUALAM™ system earned accolades from multiple
quarters. Going forward, we will continue working to develop a wide range
of environment-friendly products and to evolve as a solutions provider that
contributes to society by helping realize sustainable packaging.

Net Sales¥1,054.2
billionThis segment includes not
only printing inks but alsoadhesives, films and a broad
range of other packaging
materials and solutions, themarkets for which continue to
see robust growth in Asia andemerging economies.

Operating
Income¥39.7
billion

Packaging &Graphic

48.6%

Packaging &Graphic

41.4%

Note: Fiscal year 2022 consolidated net sales and operating income as usedhere include intersegment transactions. For this reason, and becauseof the existence of transactions classified as “others,” which are not
DWWULEXWDEOHWRUHSRUWDEOHVHJPHQWVWKHVH¿JXUHVGLIIHUIURP UHSRUWHG
net sales and operating income.

Main Products［Printing Materials］［Packaging Materials］*UDYXUHLQNVÀH[RLQNVRIIVHWLQNVQHZVLQNVMHWLQNV
metal decorative inks, printing plates, security inks

3RO\VW\UHQHSDFNDJLQJDGKHVLYHVPXOWLOD\HU¿OPV■ Segment Operating Results
Net Sales

Operating Income(Billions of yen)

439.8

(Billions of yen) 21.6

557.1

533.0
129.3

337.4

353.7

13.2

90.6

3.8

84.1

73.1

2021
Japan

2022
The Americas
and Europe

19.8
4.2

4.2

114.7

265.1

20.3

4.8

127.7

2023 (Forecast) (FY)

4.4

3.4

2021

China andAsia Pacific

11.2

12.7

Japan

2022
The Americas
and Europe

2023 (Forecast) (FY)

China andAsia Pacific

1RWH*UDSK¿JXUHVLQFOXGHLQWHUUHJLRQDOWUDQVDFWLRQVZLWKLQWKHVHJPHQW$FFRUGLQJO\WKHDJJUHJDWHVRIUHJLRQDOQHWVDOHVDQGRSHUDWLQJLQFRPH¿JXUHVIRUWKHVHJPHQWGLIIHUIURPWKH¿JXUHVSUHVHQWHGDERYHDIC Report 2023

21

■ Business Strategies Under DIC Vision 2030
Net Sales and Operating Income Targets

generation packaging materials with the aim of locking in new demand and expanding the
packaging materials business● Take the lead in the market for next-generation sustainable packaging by developing
products and proposing solutions compatible with a focus on the “5Rs”*● Accelerate shift to high-performance, high-value-added products by, among others, expanding
specialty products, promoting digitalization and responding to demand for smart packaging● Build existing businesses into stable revenue sources by securing organic growth andstreamlining operations in Asia

Net sales (Billions of yen)

● Looking ahead to the realization of a circular economy, work to develop sustainable next-

600

50

500

40

400

30

300
20

200

10

100
0

$¿YHWLHUZDVWHPDQDJHPHQWKLHUDUFK\ 7KH5VDUHUHXVHUHGXFHUHQHZUHF\FOHDQGUHGHVLJQ 

2021

2022

2025 (FY)0Operating income (Billions of yen)

Basic Strategies

Principal Measures
Develop packaging materials and propose
packaging solutions with a focus on the 5Rs

Propose packaging solutions that capitalize on
Group capabilities and deliver safety, peace ofmind and convenience

Provide solutions to needs arising from the
spread of digitalization● Hasten the global deployment of fast-curing● Develop functional films, including resealable● ([SDQG DSSOLFDWLRQV IRU ZDWHUEDVHG MHW

solvent-free adhesive DUALAM™
● Add depth to sustainable technologies, including
those essential to the push toward paper, monomaterial and biomass packaging, as well as
those for deinking● Build a closed-loop recycling system forpolystyrene employing chemical recycling

products and peelable offerings for container lid
films● Capitalize on technologies for reducing foreign
matter in packaging materials to improve safety
and peace of mind

inks that address needs resulting from thedigitalization of industrial printing● 5HVSRQGWRLQFUHDVHGXVHRIMHWLQNVIRUSULQWLQJon packaging (paper containers, corrugatedcardboard, labels, etc.) and on textiles

In the Packaging & Graphic business, the DIC Group works to help realize safe, secure and convenient lifestyles by offering packaging materials
suitable for a circular economy. With a focus on the 5Rs, the Group will continue striving to add depth to sustainable technologies, including thoseessential to the push toward paper, mono-material and biomass packaging, as well as those for deinkable, resealable and peelable materials, with theaim of providing market-leading next-generation sustainable products. The Group is also advancing efforts to build a closed-loop recycling system for
SRO\VW\UHQHHPSOR\LQJFKHPLFDOUHF\FOLQJOHYHUDJLQJMHWLQNWHFKQRORJLHVWRSURPRWHGLJLWDOL]DWLRQDQGUHVSRQGLQJWRGHPDQGIRUVPDUWSDFNDJLQJ
The Group will seek to build existing businesses into stable revenue sources by locking in demand and streamlining operations in Asia and otherpromising markets.

■ Key Development in Fiscal Year 2022
DUALAM™ Solvent-Free Adhesive Wins Kinoshita Prize from the JPIHigh marks given to innovative dual-coating method that surmounts technical issues posed by conventional solvent-free adhesives,Q¿VFDO\HDU',&¶VDUALAMVROYHQWIUHHDGKHVLYHZRQWKHDZDUGIRUSDFNDJLQJWHFKQRORJ\LQWKH-DSDQ3DFNDJLQJ,QVWLWXWH -3, ¶VWK.LQRVKLWD3UL]H/DPLQDWLQJDGKHVLYHVDUHXVHGWRERQGWRJHWKHUWKHOD\HUVRISDFNDJLQJ¿OPVIRUIRRGSURGXFWVDQGGDLO\QHFHVVLWLHV6ROYHQWEDVHG
adhesives account for approximately 70% of adhesives used in Japan to laminate packaging film layers. Nonetheless, the use of solvent-based
adhesives is not without problems, notably negative environmental impacts such as the emission of volatile organic compounds (VOCs) and CO 2.
Solvent-free adhesives have gained in popularity, but issues such as poor designability after lamination and incompatibility with continuous lamination—
key to high productivity—due to slow curing speeds have limited potential packaging applications.
',&VXFFHHGHGLQUHVROYLQJLVVXHVDVVRFLDWHGZLWKWKHXVHRIFRQYHQWLRQDOVROYHQWIUHHDGKHVLYHVLQ¿OPODPLQDWLRQE\GHYHORSLQJDUALAM™,
a solvent-free adhesive designed for dual coating, that is, the separate coating of the
FRPSRQHQWPDLQDQGFXULQJDJHQWVRQSULPDU\DQGVHFRQGDU\¿OPVUDWKHUWKDQUHTXLULQJ
mixing of the two agents in advance. In addition to expanding applications for solvent-freelaminating adhesives and significantly improving productivity by facilitating use in highspeed processing, DUALAM™ reduces energy used in the aging process and minimizes thedisposal of adhesive waste.
About the Kinoshita Prize
The Kinoshita Prize was created to commemorate the many years of contributions to the packaging industry by the late Matasaburo.LQRVKLWD-3,¶VVHFRQGFKDLUPDQ7KHSUL]HLVDZDUGHGDQQXDOO\LQSDFNDJLQJUHODWHGLQGXVWULHVWRWKRVHWKDWKDYHPDGH
distinguished contributions to packaging R&D, packaging improvement and streamlining, and creation in new areas of packaging.

DIC Report 2023

22

Flexible packaging manufactured using DUALAM™

Color & Display
SDGs Goals 3 and 13

Color and Display Materials
that Make Life Colorful

Yoshinari Akiyama
0DQDJLQJ([HFXWLYH2I¿FHU
President, Color & Display BusinessGroup

Comment
We are maximizing synergies with the recently acquired Colors & Effects pigments
business with the goal of expanding our position as a leading provider of products for
specialty applications such as displays, cosmetics and automobiles. In the healthcare
business, which accounts for approximately 2% of segment net sales, we will work to
SURPRWHZHOOEHLQJDQGLQFUHDVHVRFLHW\¶VHPSKDVLVRQ42/,QVRGRLQJZHDLPWR
IXO¿OOWKHUHGH¿QHG³&RORU &RPIRUW´YLVLRQVWDWHPHQWVHWIRUWKLQ',&9LVLRQ
We seek to contribute to a vibrant and sustainable society by providing products thatleverage the power of color materials. We are also committed to building a diverse,
global human resources portfolio.
Our guiding mantra is “Beyond Color Materials.”

Net Sales¥1,054.2
billionColor & Display

22.6%

Products in this segment include
a wide variety of materials
indispensable to displays, including
LC materials and organic pigments
IRUFRORU¿OWHUVDVZHOODVSLJPHQWVfor cosmetics, natural colorants andother materials that are safe andgentle for use by people.

Operating
Income¥39.7
billionColor & Display

10.4%
Note: Fiscal year 2022 consolidated net sales and operating income as usedhere include intersegment transactions. For this reason, and becauseof the existence of transactions classified as “others,” which are not
DWWULEXWDEOHWRUHSRUWDEOHVHJPHQWVWKHVH¿JXUHVGLIIHUIURP UHSRUWHG
net sales and operating income.

Main Products［Color Materials］［Display Materials］

Pigments for printing inks, pigments for coatings, pigments for plastics, pigments for
VSHFLDOW\DSSOLFDWLRQVSLJPHQWVIRUFRORU¿OWHUVSLJPHQWVIRUFRVPHWLFVKHDOWKIRRGV

7KLQ¿OPWUDQVLVWRUOLTXLGFU\VWDOV 7)7/&V VXSHUWZLVWHGQHPDWLFOLTXLG
crystals (STN LCs)

■ Segment Operating Results
Net Sales

Operating Income (Loss)(Billions of yen)(Billions of yen)

248.2
34.7

262.2

8.4
4.0

35.1

5.1

167.2
32.6

4.7

242.2

2.7

227.1
145.7

（0.3）

（2.8）

2021
Japan

5.8

6.9

2022

2023 (Forecast) (FY)2021

Overseas

Japan

2022

2023 (Forecast) (FY)

Overseas

1RWH*UDSK¿JXUHVLQFOXGHLQWHUUHJLRQDOWUDQVDFWLRQVZLWKLQWKHVHJPHQW$FFRUGLQJO\WKHDJJUHJDWHVRIUHJLRQDOQHWVDOHVDQGRSHUDWLQJLQFRPH ORVV ¿JXUHVIRUWKHVHJPHQWGLIIHUIURPWKH¿JXUHVSUHVHQWHGDERYHDIC Report 2023

23

■ Business Strategies Under DIC Vision 2030
Basic Strategies

Net Sales and Operating Income Targets
50

300
Net sales (Billions of yen)

Effects pigments business● Shift focus to materials with outstanding decorative properties and functionality and increase
the weighting of sustainable products that deliver both social value and economic value● Redefine “Spirulina business” as “healthcare business”● Redefine “LCs business” as “electronics business”

40
200

30
20

100
10
0

2021

2022

2025 (FY)0Operating income (Billions of yen)

● Establish an unrivaled competitive advantage by swiftly realizing synergies with the Colors &Principal Measures
Expand selection of sustainable materials,
functional materials and materials withoutstanding decorative properties

Enhance pigments for the cosmetics
business

Reinforce healthcare business byintroducing new products

Create new next-generation
EXVLQHVVHVZKLFKZLOOMRLQFRUH7)7
LCs● Focus on the expansion of effect pigments with

● Expand effect pigments for cosmetics● Expand portfolio beyond Spirulina and● Augment portfolio of materials for smart

outstanding decorative properties and sustainable
color materials that are safe and environment friendly● Emphasize functional pigments, including thosefor LiDAR signal coatings, which are key toautonomous driving vehicles● Enter the markets for red and yellow pigments for displays● Broaden portfolio of naturally derived

Linablue ® by adding new nutritional
supplements, natural colorants andcosmetics materials

ZLQGRZVDQG**HQDEOHGGHYLFHV
among others● Expand presence in the market for
products for electronics applications

products

7KH&RORU 'LVSOD\EXVLQHVVVDZWKHVFRSHRILWVRSHUDWLRQVH[SDQGVLJQL¿FDQWO\ZLWK',&¶V¿VFDO\HDUDFTXLVLWLRQRIWKH&RORUV (IIHFWVSLJPHQWVEXVLQHVVIURP
%$6)DVDUHVXOWRIZKLFKWKH&RPSDQ\EHFDPHRQHRIWKHZRUOG¶VOHDGLQJSLJPHQWVPDQXIDFWXUHUVERDVWLQJGLYHUVHWHFKQRORJLHVUDQJLQJIURPRUJDQLFV\QWKHVLVWRLQRUJDQLFPDWHULDOVGHVLJQ%\LQWHJUDWLQJ&RORUV (IIHFWV¶WHFKQRORJLHVDQGLQWHOOHFWXDOSURSHUW\ZLWKLWVRZQ',&ZLOOOHYHUDJHWKHUHVXOWLQJXQSDUDOOHOHGGHYHORSPHQW
capabilities to shift its focus to functional pigments, including pigments with outstanding decorative properties and pigments for automotive coatings that do not interfere
ZLWKDXWRQRPRXVGULYLQJYHKLFOHV¶DELOLW\WRGHWHFW/L'$5VLJQDOVDQGVZLIWO\UHDOL]HV\QHUJLHVWRHVWDEOLVKDSUHVHQFHXQULYDOHGE\DQ\RILWVFRPSHWLWRUVThe DIC Group will also broaden the emphasis of its Spirulina business to healthcare overall, encompassing naturally derived nutritional supplements, natural
colorants and cosmetics materials. In the area of LC materials, the Group will expand its presence in the market for electronics applications by augmenting its portfolio
RIPDWHULDOVIRUVPDUWZLQGRZVDQG**HQDEOHGGHYLFHVDPRQJRWKHUV■ Key Development in Fiscal Year 2022
DIC Steps Up Environmental Investments in Outdoor Algae Cultivation Facilities at Subsidiaries in the United States and the PRC
Efforts aimed at contributing to a sustainable global environment by realizing zero discharge of wastewater off-site,Q¿VFDO\HDU',&DQQRXQFHGWKDWLWZLOOPDNHDQHZHQYLURQPHQWDOLQYHVWPHQWRIELOOLRQDWVXEVLGLDULHV(DUWKULVH1XWULWLRQDOV//&LQWKH86VWDWHRI&DOLIRUQLDDQG
Hainan DIC Microalgae in the PRC, both of which produce edible blue-green algae Spirulina and Spirulina-derived natural blue food coloring Linablue®7KHREMHFWLYHRIWKH
investments is to enable both companies to achieve zero discharge of wastewater from their outdoor algae cultivation facilities.
,Q',&EHFDPHWKHZRUOG¶V¿UVWVXFFHVVIXOFRPPHUFLDOSURGXFHURI6SLUXOLQD6LQFHWKHQWKH&RPSDQ\KDVSXUVXHGLQQRYDWLRQVLQPDVVFXOWLYDWLRQWHFKQRORJLHVWRRSWLPL]HFXOWXUHFRQGLWLRQVDQGGLVFRYHUXVHIXODOJDHVWUDLQVDVZHOODVWRLPSURYHSURGXFWLRQHI¿FLHQF\WKHUHE\UHGXFLQJZDWHUDQGIHUWLOL]HUXVH+DYLQJSRVLWLRQHGVXVWDLQDELOLW\
including environmental issues, as a key management priority, DIC is working actively to help reduce CO2 emissions in its markets, as well as in society as a whole, by expanding
its selection of products and services that contribute to decarbonization.
(DUWKULVHDQG+DLQDQ',&0LFURDOJDHWKH',&*URXS¶VWZRPDMRU6SLUXOLQDSURGXFWLRQEDVHVDUHDOVRSXUVXLQJDPELWLRXVGHFDUERQL]DWLRQLQLWLDWLYHV(DUWKULVHKDVH[SDQGHG
its use of renewable energy, which now accounts for more than 50% of its total energy consumption, while Hainan DIC Microalgae has increased its use of biomass resources.
7KH*URXS¶VGHFLVLRQWRPDNHWKLVHQYLURQPHQWDOLQYHVWPHQWZDVSURPSWHGE\LWVGHVLUHWR
accelerate such efforts, with funds to be applied to facility upgrades and equipment installations
crucial to achieving zero discharge of wastewater.
In addition to this investment, DIC will seek to introduce new cultivation technologies for algae
and mycelia in collaboration with multiple biotech startups in which it has invested, as well as toexpand its portfolio of biobased products with applications in diverse areas.
Outdoor cultivation facilities at Earthrise in California

DIC Report 2023

24

Functional Products
Functional Products that
Add Comfort

SDGs Goals 6, 12 and 13

Takashi Ikeda
0DQDJLQJ([HFXWLYH2I¿FHU
President, Functional Products
Business Group

Comment
In the area of synthetic resins, we are working to increase our presence in Asia, primarily
in the market for use in industrial coatings, and to advance the development of sustainableproducts by promoting waterborne offerings and adopting biomass raw materials. For
GLJLWDODSSOLFDWLRQVZHDLPWRHQKDQFHSUR¿WDELOLW\E\H[SDQGLQJRXUOLQHXSRIPDWHULDOVDQG
processed products for use in semiconductors and high-speed communications. In resins for
robots, drones, wearables and other AI devices, we seek to provide PPS and other specialty
compounds, as well as precision processed materials, that impart new functions and value.
By working in cooperation directly with consumers and society as a whole, we are striving tohelp realize a better future for all.

Functional
Products

Net Sales¥1,054.2

28.8%

billion

Functional
Products

This segment provides coating
and composite materials withdiverse functions that addressenvironmental issues and areused widely in state-of-the-art
electronics products.

Operating
Income

¥39.7

48.2%

billionNote: Fiscal year 2022 consolidated net sales and operating income as usedhere include intersegment transactions. For this reason, and becauseof the existence of transactions classified as “others,” which are not
DWWULEXWDEOHWRUHSRUWDEOHVHJPHQWVWKHVH¿JXUHVGLIIHUIURPUHSRUWHG
net sales and operating income.

Main Products［Performance Materials］［Composite Materials］

Synthetic resins for inks and coatings, molded products, adhesives and textiles (polyester
resins, epoxy resins, polyurethane resins, acrylic resins, plasticizers, phenolic resins),
SDSHUPDNLQJFKHPLFDOVVXOSKXUFKHPLFDOV¿EHUDQGWH[WLOHFRORUDQWVPHWDOFDUER[\ODWHVVXUIDFHPRGL¿HUVIRUHOHFWURQLFVPDWHULDOV

3RO\SKHQ\OHQHVXO¿GH 336 FRPSRXQGVSODVWLFFRORUDQWVLQWHULRUKRXVLQJSURGXFWVLQGXVWULDODGKHVLYHWDSHVKROORZ¿EHUPHPEUDQHVDQGPRGXOHVPHGLFDOGLDJQRVWLF
products, high-performance optical materials■ Segment Operating Results
Operating Income

Net Sales(Billions of yen)(Billions of yen)

315.4

283.3

26.2

333.0

218.7

216.9

23.6

16.1
14.7

11.7

8.9

9.5

201.3

141.2

128.8

108.3

2021
Japan

2022

21.3

10.1

2023 (Forecast) (FY)2021

Overseas

Japan

2022

2023 (Forecast) (FY)

Overseas

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25

■ Business Strategies Under DIC Vision 2030
Basic Strategies

Net Sales and Operating Income Targets
50● Cultivate demand by directly communicating the appeal of materials, devices and services

to consumers and society● Supply polymers that help reduce environmental impact and impart functionality widely
across Asia

Net sales (Billions of yen)400

● Contribute to a carbon-neutral society by promoting a shift to biomaterials

40

300

30
200
20
100

0

10

2021

2022

2025 (FY)0Operating income (Billions of yen)

● Ensure the timely provision of functional materials that support digital innovation

Principal Measures
Propose high-performance products
for the semiconductor fabrication
DQGPRELOLW\¿HOGV

Develop sustainable products

Increase selection of products that
FRQWULEXWHWRDQLPSURYHG42/

Expand operations in promisinggeographic areas● Extend functional materials portfolio with forward-● Launch and expand sales of new● Augment portfolio of molding materials for● Concentrate efforts to expand coating

looking offerings for an increasingly digital society,including low-dielectric resins, organic–inorganic
hybrid resins and resins for optical materials● Augment lineup of industrial adhesive tapes and PPS
compounds, and offer bonding and disassembly
solutions for electronics devices and CASE vehicles

environment-friendly waterborne resins● Develop and offer biobased polymers

medical applications

resins business in the PRC and the Asia–
Pacific region on M&As

The Functional Products business will strive to offer forward-looking low-dielectric resins and other functional materials essential for an increasingly digital society, as
well as to promote a shift to biomaterials, with the aim of contributing to the realization of a carbon-neutral (green) society, enabling it to not only provide materials but
also cultivate demand by directly communicating the appeal of materials, devices and services to society.
,QWKH35&DQGWKH$VLD±3DFL¿FUHJLRQERWKRIZKLFKFRQWLQXHWRVHHVWURQJPDUNHWJURZWK',&ZLOOSURPRWHHIIRUWVWRH[SDQGLWVRSHUDWLRQVSDUWLFXODUO\LQWKHDUHD
of coating resins, including by securing new bases through M&As. In molding materials, DIC will seek to increase its selection of high-performance products for medical
DQGRWKHUDSSOLFDWLRQVWKDWZLOOKHOSUHDOL]HDVRFLHW\ZLWKDQLPSURYHG42/DVZHOODVWROHYHUDJHLWVGLYHUVHFRPSRXQGLQJGLVSHUVLRQPL[LQJDQGRWKHUWHFKQRORJLHVWR
provide solutions for the post-pandemic new normal.

■ Key Development in Fiscal Year 2022
GLOBINEX®:%,2%LRPDVV%DVHG3RO\HVWHU3ODVWLFL]HU(DUQV86'$&HUWLÀHG%LREDVHG3URGXFW$FFUHGLWDWLRQ',&¶VELRPDVVEDVHGSRO\HVWHUSODVWLFL]HUGLOBINEX®:%,2ZDVDFFUHGLWHGDVD&HUWLILHG%LREDVHG3URGXFWXQGHUWKH8QLWHG6WDWHV'HSDUWPHQWRI$JULFXOWXUH 86'$ ¶V%LR3UHIHUUHG3URJUDP7KH%LR3UHIHUUHG3URJUDPLVD86'$LQLWLDWLYHWKDWDLPVWRDVVLVWLQWKHH[SDQVLRQRIPDUNHWVIRUELRPDVVEDVHGSURGXFWV&HUWL¿FDWLRQXQGHUWKHSURJUDPSHUPLWVWKHXVHRIWKH86'$&HUWL¿HG%LREDVHG3URGXFWODEHOXVHRIZKLFKLVOLPLWHGWRSURGXFWVWKDWKDYHEHHQWHVWHGE\WKH86'$¶VDFFUHGLWLQJDXWKRULW\and determined to have a biomass content at or above a certain level.
3ODVWLFL]HUVDUHDGGLWLYHVWKDWLPSDUWÀH[LELOLW\DQGRWKHUNH\SURSHUWLHVWRWKHUPRSODVWLFUHVLQVSDUWLFXODUO\SRO\YLQ\OFKORULGHSULQFLSDODSSOLFDWLRQVIRUZKLFKrange from everyday items to industrial products and include automotive interior materials, sheath materials for home appliance power cables, inks for textiles
used in clothing, and food contact materials.
GLOBINEX®:%,2PDGHHQWLUHO\ZLWKSODQWGHULYHGUDZPDWHULDOVIXO¿OOVDOOWKHEDVLFSHUIRUPDQFHUHTXLUHPHQWVRIDSRO\HVWHUSODVWLFL]HULQFOXGLQJoil resistance and low migration, meaning it can easily be used in place of conventional petroleum-based polyester plasticizers. Substituting GLOBINEX®
:%,2IRUDSHWUROHXPEDVHGRSWLRQZLOOKHOSUHGXFH&22HPLVVLRQVDWWULEXWDEOHWR¿QLVKHGSURGXFWVWKHUHE\LQFUHDVLQJVDIHW\DQGSHDFHRIPLQG,Q
DGGLWLRQWR86'$&HUWL¿HG%LREDVHG3URGXFWDFFUHGLWDWLRQWKLVSURGXFWKDVHDUQHGWKH³%LRPDVV´%LRPDVV0DUNXQGHUWKH-DSDQ2UJDQLFV5HF\FOLQJ$VVRFLDWLRQ -25$ ¶V%LRPDVV0DUNODEHOLQJV\VWHPDIC believes that GLOBINEX®:%,2¶V86'$&HUWL¿HG%LREDVHG3URGXFWDFFUHGLWDWLRQZLOO
enhance its reputation as an environment-friendly product in key markets, notably the United States,
Europe and the PRC, leading to its adoption by manufacturers of a wide range of products, such as
automobiles, electrical and electronics equipment, apparel, toys and consumer products.
7KH86'$&HUWL¿HG%LREDVHG3URGXFWODEHODIC Report 2023

26

New Business Development
SDGs Goals 8, 9 and 11

New Businesses Created from the Perspectiveof ESH-Related Issues and Social Changes

Kiyofumi Takano
0DQDJLQJ([HFXWLYH2I¿FHU
General Manager, New Business
Development Headquarters

Comment

Global issues such as climate change and social disparities have become ever-more apparent, raising questions about current
socioeconomic systems. Rather than focusing solely on the pursuit of economic value in a one-on-one relationship with individual
customers, DIC seeks to contribute to the creation of an ecosystem through partnership with a broad range of stakeholders. We
are also seeing the emergence of disruptive digital technologies and biotechnologies, which we aim to commercialize by securing
outstanding solutions from third parties in a timely manner, rather than being determined to rely entirely on our own capabilities.

7KH1HZ%XVLQHVV'HYHORSPHQW+HDGTXDUWHUVHVWDEOLVKHGLQILVFDO\HDUKDVLGHQWLILHGIRXUSULRULW\DUHDVZKHUH(6+UHODWHGLVVXHVDQGVRFLDOFKDQJHVLQWHUVHFWZLWKWKH',&*URXS¶VFRUHFRPSHWHQFLHV7KH*URXSLVPDNLQJDFWLYHXVHRIH[WHUQDOUHVRXUFHVWRVHFXUHDFFHVVWRQHZWHFKQRORJLHVZLWKWKHDLPRIFUHDWLQJnew businesses with the potential to become mainstays.

■ Business Strategies Under DIC Vision 2030

Net Sales and Operating Income
Targets for Fiscal Year 2025

Basic Strategies● Create businesses that reflect the dynamics of socioeconomic systems, including those for

distributed energy and packaging materials recycling● Accelerate the creation of new businesses in strategic areas that leverage new basic

technologies, namely, inorganic materials design and biomaterials design technologies

Net Sales

Operating
Income33 billion¥¥

10 billion

Principal Measures
Sustainable energy

Smart living

Sustainable packaging

Healthcare● Commercialize materials for next-● Develop and expand sales of carbon● Realize the practical implementation of● Develop and boost sales of naturally

generation secondary batteries and fuelcells that support the move to clean
energy–powered automobiles● Develop and expand sales of new inorganic
fillers for use in automotive electronics that
help reduce vehicle weightfiber–reinforced plastic materials● Expand sales of silver seed film developed
to fabricate ultrafine wiring on printed
wiring boards that reduce transmission
loss in high-band communications

materials recycling for flexible packaging
films and commercialize recycled plastics● Develop and launch high-performance
barrier films

derived nutritional supplements● Expand portfolio of biomaterials, including

natural colorants and skincare materials■ Key Development in Fiscal Year 2022
The New Business Development Headquarters is fostering businesses in four priority areas (sustainable energy, smart living, sustainable packaging and healthcare). Fiscal
year 2022 brought several key developments involving healthcare startups. The following were particularly notable:
・DIC invested in U.S. company Back of the Yards algae sciences Inc. (BYAS), which owns proprietary technology for extracting active ingredients from biobasedmaterials, notably algae and mycelia.
・*UHHQ6FLHQFH0DWHULDOV,QFZKLFKGHYHORSHGWKHZRUOG¶V¿UVWLQGRRUPDVVFXOWLYDWLRQWHFKQRORJ\IRU6XL]HQMLQRULIUHVKZDWHUEOXHJUHHQDOJDHEHFDPHD
consolidated subsidiary.
・',&DQG&KHFNHUVSRW,QFRIWKH8QLWHG6WDWHVFRPPHQFHGMRLQWGHYHORSPHQWIRFXVHGRQHQJLQHHULQJLQJUHGLHQWV\VWHPVIRUPLFURDOJDHGHULYHGVXVWDLQDEOHVNLQFDUH
and personal care products.
Achievements in the other three areas included launching new products in its Hatte TotteÀH[LEOHZLUHOHVVVHQVRUVWKDWFDQEHXVHGWRGHWHFW&22, temperature and humidity
OHYHOV',&DOVRSDUWQHUHGZLWK6$36(DQGFRPPHQFHGDSLORWSURMHFWXVLQJEORFNFKDLQWHFKQRORJ\LQWKHFRQVWUXFWLRQRIDZDVWHSODVWLFVWUDFHDELOLW\V\VWHPDQGEHJDQZRUNLQJZLWK-DSDQHVH¿UP'$7$)/8&7,QFWRYHULI\FKDQJHVLQFRQVXPHUEHKDYLRUZLWKWKHDLPRIUHDOL]LQJWKHFORVHGORRSUHF\FOLQJRISODVWLFSDFNDJLQJFRQWDLQHUVDIC Report 2023

27

Financial Information
Net Sales, Operating Income and Operating Margin

Net Cash Provided by (Used in) Operating Activities and Free Cash Flow

Net sales(Billions of yen)(Billions of yen)

Net sales

Operating income

Operating margin (%)

1,100

60

1,054.2

1,000

51.0

50

900

Operating income(Billions of yen)

855.4
805.5

800

6.0%

600

44.8

30

25.8

20

12.6

60

5.0%

7.9

10

50

500

0

3.8%
400

40

300

30

200

48.4

41.3

39.7

42.9

-50

（102.8）（65.2）

2021

2022

-105

20

39.7

2018

2019

2020

(FY)

10

100
0

2018

2019

2020

2021

(FY)

2022

Note: 7KHLQFUHDVHLQQHWFDVKXVHGLQLQYHVWLQJDFWLYLWLHVLQ¿VFDO\HDUUHÀHFWVWKHLPSDFWRI',&¶Vacquisition of the Colors & Effects pigments business from BASF SE (acquisition cost: ¥128.9 billion).

0

Operating Income after Tax and ROIC*

Capital Expenditure and Investment

ROIC（%）(Billions of yen)

50

160

7

29.8

30

28.6

70

4.8%

34.8
30.9

81.1

80

6

5.0%

168.2

170

6.0%
5.2%

40

(Billions of yen)（%）
8

Operating income after tax (Billions of yen)

3.6%

5

60

4

50

45.1

40

3

28.6
20

1

0

0

2019

2020

2021

2022

(FY)

37.1

2019

2020

20
10
0

2018

37.5

30

2

10

2018

Shareholders’ Equity, Net Interest-Bearing Debt
and Net D/E Ratio*(Billions of yen)

Shareholders’ equity(Billions of yen)

1.15

1.00

1.1

445.9

1.0
0.9

0.75

346.0

0.70

71.5%

0.8
0.7

300

(Yen)

0.6

235.8

221.9

150

100

0.4

312.7

53.7%
36.9%

0.5

200

298.9

225
220
215
210

216.8%

1.2

0.82

244.7

（%）

Year-end dividend (Yen)

Payout ratio (%)(Times)Net D/E ratio (Times)

500

2022 (FY)

Returns to Shareholders* (Dividends per Share and Payout Ratio)
Interim dividend (Yen)

Net interest-bearing debt
(Billions of yen)2021

Note: 7KHLQFUHDVHLQFDSLWDOH[SHQGLWXUHDQGLQYHVWPHQWLQ¿VFDO\HDUUHÀHFWVWKHLPSDFWRI',&¶Vacquisition of the Colors & Effects pigments business from BASF SE (acquisition cost: ¥128.9 billion).

* ROIC: Operating income x (1 — Effective tax rate of 28%) / (Net interest-bearing debt + Net assets)

400

21.4

70

5.7%

5.4%

54.5

50.6

40

80

768.6
701.2

700

Net cash provided by operating activities
Free cash flow

318.5

345.9

387.0

0.3

100

50

125

40.3%
100

100

100

100

65

40

50

50

50

60

60

50

50

50

2018

2019

2020

2021

2022

0.2
0.1

0

0

0

2018

2019

2020

2021

2022

(FY)

Note: Net D/E ratio: Net interest-bearing debt/Shareholders’ equity

DIC Report 2023

28

(FY)

75
70
65
60
55
50
45
40
35
30
25
20
15
10
5
0

1RQ¿QDQFLDO,QIRUPDWLRQ
Global CO2 Emissions and CO2 Emissions per
Unit of Production (DIC Group)

Global Energy Consumption and Energy Consumption per
Unit of Production (DIC Group)(Kg CO2 /tonne)(Tonnes)
1,000,000

CO 2 emissions

CO 2 emissions per unit of production(Thousands of GJ)

400

15,00014,00013,00012,00011,00010,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0

900,000
800,000
700,000

282
245

242

236

551,000

589,000

720,000

600,000
500,000

593,000

300

200

400,000
300,000

100
200,000
100,000
0

2019

2020

2021

2022

0

(FY)

Note: CO2 emissions per unit of production is calculated using adjusted production volume (parentFRPSDQ\LQ-DSDQRQO\  1RWL¿FDWLRQVXEPLWWHGWR-DSDQ¶V0LQLVWU\RI(FRQRP\7UDGHDQG,QGXVWU\(GJ/tonne)

Energy consumption
Energy consumption per unit of production

5

4.559

4.423

6

5.695

4.189
4

10,717

10,37910,474

3

14,569

2

1

2020

2019

2021

(FY)

2022

0

Note: Energy consumption per unit of production is calculated using adjusted production volume(parent company in Japan only). 1RWL¿FDWLRQVXEPLWWHGWR-DSDQ¶V0LQLVWU\RI(FRQRP\7UDGHDQG,QGXVWU\The DIC Group aims to reduce its CO2HPLVVLRQVE\IURPWKH¿VFDO\HDUOHYHOE\¿VFDO\HDUDQGWRDFKLHYHFDUERQQHXWUDOLW\E\¿VFDO\HDU )RUPRUHLQIRUPDWLRQSOHDVHVHH³0HWULFVand Targets” on page 91 in the Climate Change section of this report.)

7KH',&*URXSDFWLYHO\SURPRWHVHQHUJ\VDYLQJDQGGHFDUERQL]DWLRQPHDVXUHVLQFOXGLQJLQWURGXFLQJKLJKO\HI¿FLHQWIDFLOLWLHVDQGSURPRWLQJSURFHVVLPSURYHPHQWV*RLQJIRUZDUGWKH*URXSSODQVWRIXUWKHUDGYDQFHLWV
use of renewable energy by shifting to biomass and other clean fuels and installing solar power facilities.

Number of Employees (DIC Corporation and the DIC Group)

Occupational Accident Frequency Rate (DIC Group)(Rate)(Number of people)

DIC Group

25,000DIC

2.50

22,474
20,62020,51322,743
2.00

20,24220,0001.50

15,0001.00
0.50

10,0005,000（17.2%）
3,538（17.5%）
3,593（18.1%）
3,662（16.4%）
3,681（16.5%）
3,744

0.00

2014

2015

2016

2017

2018

2019

2020

2021

2022 (FY)

Note: The frequency rate expresses the frequency of accidents resulting in workdays lost in a fiscal year,
calculated as the number of deaths or injuries per million work hours.
0
2018

2019

2020

2021

2022 (FY)

Frequency rate ＝Notes:
3HUFHQWDJH¿JXUHVLQSDUHQWKHVHVUHSUHVHQWWKHSURSRUWLRQRI',&*URXSHPSOR\HHVDFFRXQWHGIRUE\HPSOR\HHVRI',&&RUSRUDWLRQ
2. Employee numbers for DIC Corporation are calculated based on information in the Company’s Annual Securities Report and thus differIURPWKRVHLQWKH+XPDQ5HVRXUFHV0DQDJHPHQWVHFWLRQRIWKLVUHSRUWPatents in Force (DIC Group)
Patents held
(Number)

Female employees
Percentage of total (%)

70

57

40

5,000

5

8,000

4,000

4

6,000

3,000

3

4,000

2,000

2

2,000

1,000

5.9%
5.5%

41

6,000

10,000

6

6.3%

48

PAI

7.1%

52
50

7,000

Patents held in other countries and territories

12,0007

PAI

Patents held in Japan

14,000

（%）

8
61

60

× 1,000,000

7KH',&*URXSKDVVHWJRDOVIRU-DSDQWKH35&WKH$VLD3DFL¿FUHJLRQDQGWKH$PHULFDVDQG(XURSHDQGLV
working to eliminate occupational accidents.

Female Employees in Management Positions (DIC Corporation)70

Total work hours

A frequency rate of 1.00 means one occupational accident resulting in workdays lost in one year
at a site with 500 employees.

7KH',&*URXSLVDPXOWLQDWLRQDORUJDQL]DWLRQZLWKDJOREDOODERUIRUFHRILQFRXQWULHVDQGWHUULWRULHVThe Group will continue to capitalize on its diversity to drive innovation.

(Number of people)

Number of deaths or injuries due to occupational accidents

5.1%
4.4%

30
20
10

1

0

0

0

0
2018

2018

2019

2020

2021

2022

2023 (FY)

2019

2020

2021

2022

Mar. 2023

3DWHQW$VVHW,QGH[ 3$, 0HWULFWKDWPHDVXUHVWKHUHODWLYHTXDOLW\RILQGLYLGXDOSDWHQWIDPLOLHV 3DUWRI/H[LV1H[LV¶3DWHQW6LJKWSDWHQWDQDO\WLFVVROXWLRQ,Q¿VFDO\HDUWKHSHUFHQWDJHRIPDQDJHPHQWSRVLWLRQVDW',&RFFXSLHGE\ZRPHQZDVDQLQFUHDVHRI
percentage point from the previous period. The Company is working to create environments where diverse human resources
FDQIXOO\UHDOL]HWKHLUSRWHQWLDO )RUUHJLRQDOGDWDSOHDVHVHHSDJHLQWKH+XPDQ5HVRXUFHV0DQDJHPHQWVHFWLRQRIWKLVUHSRUW

7KHQXPEHURISDWHQWVKHOGE\WKH',&*URXSFRQWLQXHVWRJURZDVGRHVWKH*URXS VSDWHQWDVVHWV2ISDUWLFXODUQRWHWKHQXPEHURISDWHQWVKHOGLQRWKHUFRXQWULHVDQGWHUULWRULHVLVLQFUHDVLQJUHLQIRUFLQJWKH*URXS VJOREDO
competitive edge from the perspective of intellectual property.

DIC Report 2023

29

CFO メッセージ

長期的な株主価値向上に向け成長事業への投資を加速し

基盤投資

キャッシュフロー
の最大化

しゅうじ

投資

財務体

質

配当

財務経理部門長

700億円

成
長

ふるた

2,300億円

1.0倍

ポートフォリオ変革を推進します。
最高財務責任者
取締役 常務執行役員

戦略投資

ネット
D/Eレシオ

還元

配当性向30%

古田 修司

ROIC経営■ 運転資本の適正化による健全な財務体質の維持■ 基本方針当社は、2022年よりスタートした長期経営計画「DIC

2022年度は、中国および欧州での企業買収に加えて、Vision 2030」の目指す姿を実現するため、投資効率や稼

原料やユーティリティコスト上昇による在庫の積み上がりとぐ力を重視したROICを重要経営指標と定め、事業ポートフォ

それに伴う運転資本増加の影響により、有利子負債が大幅

リオの変革を推進しております。財務方針としては、「健全に増加しました。その結果、ネットD/Eレシオは1.15倍と目な財務体質」、「成長投資」、「利益成長に応じた株主還元」

標を大きく超過しました。当期においては、地域ごとに定めのバランスの取れた運用を目指すとともに、サステナブル

るキャッシュ・コンバージョン・サイクル※3 の目標管理を徹

ファイナンスへの積極的な取り組みを通じて、サステナブル

底し運転資本の適正化を図るとともにEBITDAの改善により戦略の推進を加速してまいります。

ネットD/Eレシオ有利子負債を削減し、ネットD/Eレシオを「DIC Vision 2030」では、ROIC以 外に経 営 指 標とし1.1倍以下とする予定です。

（財務健全性）、配当性向（株主還元）、て、ネットD/Eレシオ※1

ROICについては、高付加価値製品の売上比率を高める

EBITDA※2（キャッシュフロー創出力）を設定しました。これとともに低収益低成長事業からの撤退を図り事業ポートフォ

らを財務活動の経営指標と位置づけ、株主価値の最大化を

リオ変革を推進、同時に保有資産の見直しにより資産効率図ってまいります。

を改善し2030年度ROIC8%超の達成を目指します。なお、
社内業績評価指標の一部としてROICを採用しております。
ネット有利子負債
（億円）

財務体質

ROIC
（%）

ROIC※・EBITDA

自己資本（億円）

1.00
0.75

0.70

1.15

3,185

2,358

1.09

6.0
5.2

4,459

5.0

4,350
3,870

3,127

8.0 超

EBITDA（億円）

ネットD/Eレシオ
（%）

4.8
3.6

3,978

3.2

1,370

3,460 3,459

2,219

855

830

690

674
556

2019

2020

2021

2022

2019

2023
見通し

2020

2021

2022

2023

2025

2030

見通し

計画

計画

※ROIC：営業利益×(1-実効税率)/(ネット有利子負債+純資産)

DIC Report 2023

30

CFOメッセージ

樹脂メーカー「Guangdong TOD New Materials Co.,

■ 事業ポートフォリオ変革に向けた成長投資

Ltd.」を買収。事業基盤を強化し、環境負荷低減と機能性

当社は、「DIC Vision 2030」の実現に向け、2022年付与に供する製品を広く供給開始しております。

から2025年までの４年間に、「戦略投資」2,300億円と「基「基盤投資」については、CO2削減等のサステナビリティ

盤投資」700億円の総額3,000億円の投資枠を設定してお投資として、バイオマスボイラの導入や設備更新、IT・DXります。

の推進として基幹システム構築、サプライチェーン管理シス「戦略投資」については、2022年にはイタリアの接着剤・テム、品質管理システムの導入等、持続的な成長を支える

ポリマメーカー「Sapici S.p.A.」、中国のコーティング用ためのインフラ整備として投資を実施しました。

 最近の主な戦略投資の実績
パッケージング＆グラフィック

BASF Colors and Effects

カラー&ディスプレイ

2021/06 買収価格 約1,289億円
高機能顔料製品ポートフォリオ拡大
カラー＆ディスプレイ
2021/06 買収価格 約1,289億円
高機能顔料製品ポートフォリオ拡大
Guangdong TOD New Materials Co., Ltd.
カラー＆ディスプレイ

ファンクショナルプロダクツ

バイオスタートアップへの出資・共同事業化

2022/07「コーテ
コーティング用樹脂中国拠点拡大
ィング用樹脂中国拠点拡大」
ファンクショナルプロダクツ

Vaxa Technologies Ltd.
2021/04 イスラエル

サステナブルな藻類培養技術で付加価値の高い藻類製品を生み出すスタートアップへの出資

Back of the Yards Algae Sciences Inc.
2022/07 米国シカゴ

Vaxa Technologies Ltd.

藻類から有効成分を高効率で抽出する
独自技術を持つスタートアップへの出資

グリーンサイエンス・マテリアル株式会社

SAPICI S.p.A.
2022/01
2022/01
パッケージ向け接着剤ポートフォリオ拡大パッケージ向け接着剤ポートフォリオ拡大パッケージング＆グラフィック/
パッケージング＆グラフィック/
ファンクショナルプロダクツ
ファンクショナルプロダクツ

Debut Biotechnology, Inc.

グリーンサイエンス・マテリアル株式会社

Back of the Yards Algae Sciences Inc.

藍藻類抽出素材であるサクランⓇを生産する
スタートアップを連結子会社化

2023/01 熊本市

Debut Biotechnology, Inc.
2023/03 米国サンディエゴ

新しいバイオプロセスで製造された化粧品・
ニュートリション向けポリフェノールの共同事業化

主なサステナブルファイナンス実績■ サステナブルな事業推進に向けて年月

内容

2022 年
6 月・8 月農林中央金庫との間で、「サステナビリティ・リンク・ローン」

2022 年
7月

日本政策投資銀行（以下「DBJ」）
が実施する「DBJ環境格付」

当 社は、カーボンニュートラル 社 会 の 実 現に向けて、2030年度までにCO₂排出量50％削減（2013年度比）を掲の融資契約を締結

げております。2022年、CO₂排出量削減目標に連動して借入条件が変わる「サステナビリティ・リンク・ローン」※（以取得による資金調達を実施

下「SLL」）
を実施しました。環境問題をはじめとするサステナ

三井住友信託銀行との間で、「ポジティブ・インパクト・ファ

2023 年3月

ビリティを重要な経営課題と位置づけ、脱炭素に貢献する製イナンス」の融資契約を締結

品・サービスの拡大によって、市場および社会におけるCO₂
排出量削減への寄与に向け積極的に取り組んでまいります。
※日本格付研究所からSLL原則への適合性について第三者意見を取得

株主還元■ 安定的な株主還元

中間（円）
期末（円）
配当性向（%）

216.8「DIC Vision 2030」では、引き続き安定配当をベースと

71.5
53.7

して連結配当性向30%を中期的な配当水準の目安としてお

55.7

40.3

ります。2022年度の配当については、中間配当50円、期末配当50円、通期100円（対前年同額）となりました。2023

100

100

100

100

100

年度については、通年100円を見込んでいます。

40

50

50

50

50

60

50

50

50

50

2019

2020

2021

2022

3.3

3.8

3.5

4.3

2023
見通し

30

※１ ネットD/Eレシオ＝ネット有利子負債／自己資本※２ EBITDA=親会社株主に帰属する当期純利益＋法人税等合計＋支払利息-受取利息+減価償却費＋のれん償却額

利回り
（%）*

※3 キャッシュ・コンバージョン・サイクル＝企業が原材料や商品を仕入れて利益に変換するまでの日数を計算した経営指標* 配当利回り：年間配当金/期末の株価終値

DIC Report 2023

31

12-Year Summary
Key Financial Data
Period

114

115

116

117

118

119

120

121

122

123

124

125

Fiscal year

2011

2012

2013*3

2014

2015

2016

2017

2018

2019

2020

2021

2022

IncomeNet sales (Billions of yen)

734.3

703.8

784.0

830.1

820.0

751.4

789.4

805.5

768.6

701.2

855.4

1,054.2

Operating income (Billions of yen)

35.0

38.5

44.1

41.1

51.1

54.2

56.5

48.4

41.3

39.7

42.9

39.7

Operating margin (%)

4.8

5.5

5.6

4.9

6.2

7.2

7.2

6.0

5.4

5.7

5.0

3.8

23.7

23.0

19.8

25.3

26.8

26.2

27.4

28.4

27.9

26.2

28.0

29.9

9.1

8.8

8.8

10.9

12.2

11.2

12.4

12.9

12.5

12.0

13.5

15.1

Ordinary income (Billions of yen)

30.8

35.1

40.9

39.9

49.0

55.8

57.0

48.7

41.3

36.5

43.8

39.9

Net income attributable to ownersof the parent (Billions of yen)

18.2

19.1

28.8

25.2

37.4

34.8

38.6

32.0

23.5

13.2

4.4

17.6

EBITDA (Billions of yen)

61.5

65.2

69.1

77.0

94.0

82.6

86.1

81.4

67.4

55.6

69.0

85.5

EBITDA margin (%)

8.4

9.3

9.8

9.3

11.5

11.0

10.9

10.1

8.8

7.9

8.1

8.1

Total assets (Billions of yen)

675.1

693.0

761.7

803.7

778.9

764.8

831.8

801.3

803.1

818.0

1,071.5

1,261.6

Net assets (Billions of yen)

124.5

160.7

218.9

276.7

289.9

307.0

344.0

327.3

343.5

351.4

381.0

421.1

R&D and technology-related
expenses*1 (Billions of yen)
Of which, R&D costs(Billions of yen)

Financial Position

Equity ratio (%)

15.1

19.8

25.6

31.1

33.7

36.4

37.9

37.3

38.9

38.9

32.3

30.7

Net interest-bearing debt
(Billions of yen)

298.8

293.0

283.6

257.4

244.1

224.0

247.8

244.7

235.8

221.9

346.0

445.9

Net D/E ratio (Times)

2.93

2.14

1.45

1.03

0.93

0.80

0.79

0.82

0.75

0.70

1.00

1.15

31.2

41.4

33.9

46.4

29.1

62.5

54.2

51.0

50.6

54.5

44.8

7.9

(17.6)(23.7)(9.8)(27.4)(10.0)(32.2)(58.9)(38.4)(24.9)(33.0)(147.6)(73.2)

13.7

17.7

24.0

19.0

19.1

30.3

(4.7)

12.6

25.8

21.4

(102.8)(65.2)(7.1)(26.6)(32.8)(26.1)(24.8)(26.9)

11.4(11.8)(26.8)

6.3

99.5

83.9

29.6

22.5

15.0

16.4

15.1

16.7

17.7

18.6

16.7

41.4

37.6

62.6

Cash FlowsNet cash provided by operating
activities (Billions of yen)
Net cash used in investing activities(Billions of yen)
)UHHFDVKÀRZ %LOOLRQVRI\HQ
Net cash provided by (used in)¿QDQFLQJDFWLYLWLHV %LOOLRQVRI\HQ
Cash and cash equivalents(Billions of yen)

Per Share Information*2

Earnings per share (Yen)

197.90207.98292.26267.81

389.40366.72407.56338.40248.29139.8146.12

186.05

Price earnings ratio (PER)(Times)

8.4

9.5

10.9

10.9

8.5

9.7

10.5

10.0

12.2

18.6

62.8

12.5

Dividends per share (Yen)

40

60

60

60

80

100

120

125

100

100

100

100

20.2

28.8

20.5

22.4

20.5

27.3

29.4

36.9

40.3

71.5

216.8

53.7

ROIC (%)

5.8

6.3

6.1

5.7

6.9

7.3

7.2

6.0

5.2

5.0

4.8

3.6

Return on equity (ROE) (%)

17.3

16.0

16.1

11.3

14.6

12.9

13.0

10.4

7.7

4.2

1.3

4.8

27.0

26.6

27.1

33.6

32.1

31.3

33.6

32.1

35.0

34.0

38.6

49.5

29.7

27.4

25.9

33.8

32.9

32.4

31.5

32.8

33.1

32.6

37.4

47.1

Overseas sales ratio (%)

58.2

56.7

66.6

63.4

65.1

62.4

63.4

63.6

63.5

64.8

67.3

70.8

Average exchange rate (¥/US$)

79.77

79.93

97.06

106.32120.85109.96112.33110.46109.11106.37109.75130.59Average exchange rate (¥/EUR)

110.88103.11129.25141.41134.14122.06127.03130.46122.13121.43129.73137.71

Number of employees

20,455

20,273

20,034

20,411

20,264

20,481

20,628

20,62020,513

20,242

22,47422,743

Payout ratio (%)

Other Indicators

Capital expenditure(Billions of yen)
Depreciation and amortization(Billions of yen)

*1 Technology-related expenses are for DIC and DIC Graphics Corporation.
*2 Per share information has been adjusted to reflect the impact of the consolidation of shares.
*3 (IIHFWLYHIURP¿VFDO\HDU',&DQGLWVGRPHVWLFFRQVROLGDWHGVXEVLGLDULHVFKDQJHGWKHLU¿VFDO\HDUHQGIURP0DUFKWR'HFHPEHU$VDFRQVHTXHQFHUHSRUWHGUHVXOWVUHÀHFWWKHIDFWWKDWIRUWKHVHFRPSDQLHV¿VFDO\HDUZDVDWUDQVLWLRQDOLUUHJXODUQLQHPRQWKSHULRG)RUWKHSXUSRVHRIFRPSDULVRQ¿VFDO\HDU¿JXUHVKHUHKDYHEHHQDGMXVWHGWRUHSUHVHQWWKHPRQWKVIURP-DQXDU\±'HFHPEHU

DIC Report 2023

32

2YHUYLHZRI6XVWDLQDELOLW\,QOLQHZLWKLWVEDVLFVXVWDLQDELOLW\SROLF\WKH',&*URXSSURPRWHVDYDULHW\RIVXVWDLQDELOLW\LQLWLDWLYHVZRUOGZLGHDQGZRUNVWRPDLQWDLQDQDFFXUDWHJUDVSRIVRFLDOLPSHUDWLYHVSHUWDLQLQJWRHQYLURQPHQWDOVRFLDODQGJRYHUQDQFH (6* UHODWHGLVVXHV

Sustainability Program$PLGULVLQJHQYLURQPHQWDOFRQFHUQVLQFOXGLQJFOLPDWHFKDQJHDQG
LQFUHDVLQJO\XUJHQWVRFLDOLPSHUDWLYHVFRPSDQLHVWRGD\IDFHDQHYHU
PRUHGLYHUVHDUUD\RIFKDOOHQJHVLQFOXGLQJULVLQJDZDUHQHVVRIWKH
QHHGWRDFKLHYHVXVWDLQDELOLW\LQDPDQQHUWKDWWDNHVLQWRDFFRXQWWKH
HQYLURQPHQWHFRV\VWHPVDQGVRFLRHFRQRPLFLVVXHV,QILVFDO\HDU',&HVWDEOLVKHGWKH(6*8QLWDVSHFLDOL]HGGHSDUWPHQWWRIXUWKHUH[SDQG*URXS(6*LQLWLDWLYHVZRUOGZLGH  7KH IUDPHZRUN IRU VXVWDLQDELOLW\UHODWHG GLVFORVXUH LQ -DSDQLVHYROYLQJ(IIHFWLYHIURPSXEOLFO\OLVWHGFRPSDQLHVPXVWGLVFORVHQRQILQDQFLDODVZHOODVILQDQFLDOLQIRUPDWLRQLQWKHDQQXDOVHFXULWLHVUHSRUWWKDWWKH\DUHOHJDOO\UHTXLUHGWR¿OHZLWKWKH-DSDQHVHJRYHUQPHQW7KLVLVSURPSWLQJVLJQL¿FDQWUHODWHGFKDQJHVLQFOXGLQJWR
pertinent laws and regulations, as well as to business practices. In linewith its basic sustainability policy, the DIC Group continues to promote
DYDULHW\RIVXVWDLQDELOLW\LQLWLDWLYHVZRUOGZLGHDQGZRUNVWRPDLQWDLQDQDFFXUDWHJUDVSRIVRFLDOLPSHUDWLYHVSHUWDLQLQJWR(6*UHODWHGLVVXHVBasic Sustainability Policy（Partially revised in March 2019）
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JURZWK',&*URXSHPSOR\HHVZLOOFRQWLQXHZRUNLQJWRGHOLYHUWKHYDOXHWKDWLWVVWDNHKROGHUV²LQFOXGLQJLWVFXVWRPHUVVXSSOLHUVORFDOFRPPXQLWLHVVKDUHKROGHUVDQGLQYHVWRUVDQGHPSOR\HHV²H[SHFWVKRZLQJLQJHQXLW\DQGDVHQVHRIUHVSRQVLELOLW\7KH*URXSLWVHOIZLOOVWULYHWRUHPDLQDQRUJDQL]DWLRQWKDWFRQWULEXWHVWRVXVWDLQDELOLW\IRUVRFLHW\DVZHOODVWRWKHFRQVHUYDWLRQDQGLPSURYHPHQWRIWKH
JOREDOHQYLURQPHQWE\FDSLWDOL]LQJRQLWVEXVLQHVVHVWRDFKLHYHXQIDOWHULQJJURZWKWKHUHE\HQKDQFLQJLWVRZQVXVWDLQDELOLW\
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LPSHUDWLYHVDVFULWLFDO7KLVLVHYLGHQFHGE\WKHIDFWWKDWFRXQWULHVZRUOGZLGHKDYHUDWLILHGWKH3DULV$JUHHPHQWDQGWKH6'*VERWKRIZKLFKZHUHDGRSWHGLQ

■ Sustainability Framework and Themes○ Themes

WZRFODVVLILFDWLRQV7KH*URXSLPSOHPHQWVDEURDGUDQJHRIJOREDOLQLWLDWLYHVWKDWWDNHLQWRDFFRXQWLWVUHVSRQVLELOLW\WRHQVXUHSURSHUSURGXFWVWHZDUGVKLSDVZHOODVLWVSRVLWLRQDVDOHDGLQJPDQXIDFWXUHURI¿QHFKHPLFDOV

7KH',&*URXS¶VVXVWDLQDELOLW\IUDPHZRUNFRPSULVHVNH\WKHPHV
which are categorized as basic themes, themes that demonstrate
XQLTXHFDSDELOLWLHVDQGWKHPHVWKDWFRPELQHHOHPHQWVRIWKHSUHYLRXV

Sustainable technology and product development
New value creation
Digital transformation (DX)Harmony with the community and social contributions
Communication with stakeholders

Themes that demonstrateunique capabilities (A)Core and category-specific themes
Themes that combine
elements of (A) and (B)Environment, safety and health (ESH)
Climate change
Quality
Human resources management
Sustainable procurement

Basic
Basic
(B))
themes(BthemesComplianceBusiness continuity management (BCM) and crisis management
Information security()○ Deployment

Individual business groups, product divisions, sites, and DIC GroupFRPSDQLHVLQ-DSDQDQGLQRWKHUFRXQWULHVDQGWHUULWRULHVDUHFKDUJHGZLWKSXUVXLQJHIIHFWLYHVXVWDLQDELOLW\SURJUDPVE\IRUPXODWLQJWKHLURZQDFWLYLW\SODQVEDVHGRQWKH*URXS¶VSODQDVZHOODVZLWKHQVXULQJWKDWWKH*URXS¶VSROLFLHVSHUPHDWHWKHLURUJDQL]DWLRQVDQGODERUIRUFHVDQG
promoting sustainability initiatives that align with business targets.

,QOLQHZLWKLWVEDVLFVXVWDLQDELOLW\SROLF\WKH',&*URXSKDVIRUPXODWHG
DPHGLXPWHUP ¿VFDO\HDUV± SROLF\DQGFUHDWHVDQDQQXDODFWLYLW\SODQIRUHDFKRILWVNH\VXVWDLQDELOLW\WKHPHV7KH*URXSPDNHV
XVHRIWKHSODQGRFKHFNDFW(3'&$ F\FOHLQSURPRWLQJLQLWLDWLYHVDQG
reports on its achievements annually in the DIC Report.

DIC Report 2023

33

Overview of Sustainability■ System for Promoting Sustainability Initiatives

Members of the Sustainability Committee

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WKH6XVWDLQDELOLW\&RPPLWWHHZKLFKDQVZHUVGLUHFWO\WRWKHSUHVLGHQW
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VXVWDLQDEOHSURGXFWVUHGXFH&22 emissions and respond to a circular
economy.

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$FFRXQWLQJ8QLW+HDGRIWKH&RUSRUDWH6WUDWHJ\8QLW+HDGRIWKH*HQHUDO$IIDLUVDQG/HJDO8QLW+HDGRIWKH(6*8QLW+HDGRIWKH6&08QLW+HDGRI
WKH,76WUDWHJ\8QLW3UHVLGHQWVRIWKHEXVLQHVVJURXSV*HQHUDOPDQDJHUVRIWKHSURGXFWGLYLVLRQV*HQHUDO0DQDJHURIWKH3URGXFWLRQ0DQDJHPHQW8QLW*HQHUDO0DQDJHURIWKH7HFKQLFDO0DQDJHPHQW8QLW*HQHUDO0DQDJHURIWKH
5 '0DQDJHPHQW8QLW*HQHUDO0DQDJHURIWKH1HZ%XVLQHVV'HYHORSPHQW+HDGTXDUWHUV*HQHUDO0DQDJHURIWKH&RUSRUDWH3ODQQLQJ'HSDUWPHQW&(2VRIUHJLRQDOKHDGTXDUWHUVSUHVLGHQWVRINH\*URXSFRPSDQLHVDQG0HPEHUVRI
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Board of Directors
Sustainability Committee

President and CEO

ż Deliberates medium-term policies and key sustainability-related mattersż Formulates Groupwide targets and activity plans

Risk Management
Working Groupż Evaluates risk management initiatives

Departments/
divisions in charge
ż Formulates practical activity plansż Promotes sustainability themes
ż Promotes risk management themes

Sustainability
Working Groupż Evaluates sustainability initiatives

Sustainability
Department

Product divisions,
New Business Development Headquarters,
Production Management Unit,
Technical Management Unit,
R&D Management Unit,
headquarters’ administrative units, sites,
domestic and overseas Group companies

Sustainability themes

ż Promotes sustainability themes and supports sustainability initiatives
ż Responds to customer requests (conducts surveys and training sessions)ż Disseminates sustainability-related information (prepares the DIC Report, etc.)
ż Advances awareness of sustainability (in-house training, the DIC Group portal site)ż Serves as secretariat to the Sustainability Committee and the Sustainability Working Groupż Deals with external assessment organizations
ż Holds Sustainability Platform meetings■ Ensuring DIC Remains a Globally Trusted Corporate Citizen with a Proud Reputation○ Leveraging its Position as a Global Manufacturer of Fine

Chemicals to Support the UNGC
6HHNLQJWRIXO¿OOLWVUHVSRQVLELOLWLHVDVDPHPEHURIWKHLQWHUQDWLRQDO
community in a more proactive manner, in December 2010 the DIC*URXSEHFDPHDVLJQDWRU\WRWKH8QLWHG1DWLRQV*OREDO&RPSDFW
81*& DQGSOHGJHGLWVVXSSRUWIRUWKH7HQ3ULQFLSOHVRIWKH81*&,QDXJXUDWHGLQWKH81*&LVDYROXQWDU\LQLWLDWLYHIRUFRPSDQLHVWKDW VHHN WR DFKLHYH VXVWDLQDEOH GHYHORSPHQW &RPSDQLHV DQGRUJDQL]DWLRQVZRUOGZLGHKDYHSOHGJHGWKHLUVXSSRUWIRUWKH81*&LQ
WKHEHOLHIWKDWJOREDOVXVWDLQDEOHGHYHORSPHQWLVSRVVLEOHLIFRPSDQLHV 7HQ3ULQFLSOHVRIWKH81*& 2IÀFLDO9HUVLRQDOLJQWKHLUEXVLQHVVSUDFWLFHVZLWKDQGIXO¿OOWKHLUVRFLDOUHVSRQVLELOLWLHV%XVLQHVVHVVKRXOGVXSSRUWDQGUHVSHFWWKHSURWHFWLRQRI
Principle 1
internationally proclaimed human rights; andLQJOREDOO\DFFHSWHGSULQFLSOHVLQWKHDUHDVRIKXPDQULJKWVODERU
Human rights
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Principle 2
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3ULQFLSOH
○ Applying the Ten Principles of the UNGCUHFRJQLWLRQRIWKHULJKWWRFROOHFWLYHEDUJDLQLQJ
7KH',&*URXS&RGHRI%XVLQHVV&RQGXFWFRQIRUPVZLWKWKH7HQ
WKHHOLPLQDWLRQRIDOOIRUPVRIIRUFHGDQGFRPSXOVRU\ODERXU
Principle 4
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WKHHIIHFWLYHDEROLWLRQRIFKLOGODERXUDQG
3ULQFLSOH
this program to advance its operations around the world, while at the
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3ULQFLSOH
employment and occupation.
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KXPDQULJKWVZLWKWKHDLPRIHQVXULQJVXVWDLQDELOLW\IRUJOREDOVRFLHW\
Principle 7
environmental challenges;
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○ Complying with ISO 26000
Environment
Principle 8
responsibility; and7KH',&*URXSRSHUDWHVLQDPDQQHUWKDWLVFRQVLVWHQWZLWK,62
HQFRXUDJHWKHGHYHORSPHQWDQGGLIIXVLRQRI
Principle 9
HQYLURQPHQWDOO\IULHQGO\WHFKQRORJLHVUHOHDVHGLQ1RYHPEHUZKLFKSURYLGHVEXVLQHVVHVDQG
%XVLQHVVHVVKRXOGZRUNDJDLQVWFRUUXSWLRQLQDOOLWVIRUPV
Anti-corruption
Principle
10
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DIC Report 2023

34

A Message from the Head of the ESG Unit

We are working to leverage the capabilities of all employees to further
enhance sustainability for the DIC Group.
Kuniko Torayama([HFXWLYH2I¿FHU
Head of ESG Unit, In Charge of Diversity

The DIC Group has now embarked on the second year of its
DIC Vision 2030 long-term management plan. Sustainability has
been positioned more prominently under this plan, as evidenced
by its basic policy, which places a priority on two central
goals—“Build a business portfolio that contributes to sustainable
prosperity for society” and “Help achieve sustainability for the
global environment and for society”—through the Group’sbusiness activities. The Group’s sustainability program
encompasses initiatives in line with themes in three categories,
which are outlined below.

The third category involves initiatives aimed at responding
to and helping to realize a circular economy. Cognizance of
this as an issue is increasing in many regions. For example,
the European Commission has adopted a new Roadmap to a
5HVRXUFH(I¿FLHQW(XURSH:HZLOOFORVHO\PRQLWRUWKHVLWXDWLRQ
to determine whether our regional targets require updating,or rather simply that the speed with which such targets areachieved will vary. At the same time, we will focus on the early
practical implementation of DIC’s new closed-loop recycling
system for polystyrene.

■ Three Categories: Sustainable Products, Climate■ Improving Job Satisfaction and Productivity by

Shining a Spotlight on Employee Competencies

Change and Circular Economy

Through measures to encourage diversity spearheaded by theWork Style Revolution (WSR) 2020 Committee, which beganwith the objective of improving job satisfaction and productivity,
in Japan we are working to advance career opportunities for
women and to improve our ability to retain and effectively
utilize employees who are not Japanese nationals. In fiscal
year 2022, we launched a project designed to shine a spotlighton employee competencies. We then developed training ande-learning programs to help employees better reflect project
findings in their own work. We also introduced one-on-one
meetings between employees and their supervisors aimed at
UHDOL]LQJPRUHHIIHFWLYHZRUNVW\OHV,DPFRQ¿GHQWWKDWWKHVH
efforts will go a long way to boosting employee job satisfaction
and inspiring a sense of well-being.

,QWKH¿UVWFDWHJRU\3URGXFWVZHDUHZRUNLQJWRLQFUHDVHVDOHV
of sustainable products, that is, products that contribute to theresolution of social imperatives, to 60% of net sales by fiscal\HDU7KHPHVLQFOXGHGHWHUPLQLQJZKDWTXDOL¿HVDSURGXFW
as sustainable and what we can provide to customers throughour business activities. I look forward to working with Group
employees to achieve this target, bearing in mind of course thatsustainable products must evolve with the rapidly changing times.
The second category centers on our initiatives to address
climate change. Of particular note, we are actively shifting togreen power to meet our target of reducing Scope 1 and 2 CO2HPLVVLRQVE\IURPWKH¿VFDO\HDUOHYHOE\¿VFDO\HDU
2030. We are also accelerating efforts with a view to revising
manufacturing processes, promoting electrification and, overthe long term, generating our own clean energy. We of course
understand that day-to-day energy-saving initiatives at sites not
exclusively involved in production, including processing facilities
and offices, are also indispensable and will continue working
and sharing know-how with Group companies around the world.

Slow and steady wins the race. Recognizing that day-to-day
initiatives may not yield immediate results, I will neverthelesspress ahead with such initiatives, working together withcolleagues from across the DIC Group as a cohesive unit, in
WKH¿UPEHOLHIWKDWWKHDFFXPXODWLRQRIVXFKLQLWLDWLYHVZLOOKHOS
change not only DIC but society itself.

DIC Report 2023

35

The DIC Sustainability Index■ Promoting Steady Business Portfolio Transformation■ Comprehensive Efforts to Address the Critical

Issue of Climate Change

The DIC Sustainability Index is a tool designed to make theGroup’s product mix more resilient. From the perspective ofbuilding a sustainable society, DIC will clarify the sustainabilityof its inks, pigments and other products by quantifying social
contribution (horizontal axis) and environmental impact (verticalaxis). Mapping all DIC Group products on the index will make itpossible to formulate appropriate measures for the transformationof its business portfolio and at a certain stage elucidate the results
thereof. The index will further underpin the Group’s efforts to help
realize a sustainable society by ensuring it meets the DIC Vision
2030 target of increasing sustainable products as a percentage ofnet sales to 60%, thereby ensuring its resilience to various changes
in the external environment.

While a broad range of products have enhanced the convenience andaffluence of modern lives, it is also true that the production thereof
negatively impacts the global environment. A particularly pressing concern
is climate change. It has become increasingly obvious that the earth will
not be sustainable unless decisive steps are taken to achieve ambitious
targets. In the DIC Group’s case, these are a 50% reduction of Scope 1
and 2 CO2HPLVVLRQVIURPWKH¿VFDO\HDUOHYHOE\¿VFDO\HDU
and the achievement of carbon neutrality—net zero CO2 emissions—by¿VFDO\HDU
The DIC Sustainability Index expresses greenhouse gases generated in
the manufacturing process as emissions per unit of production, measured
as emissions of CO2 per tonne in kilograms. By taking into account various
issues, including regional differences, and relocating and consolidating its
production facilities, the DIC Group set ambitious reduction targets and will
promote comprehensive efforts to ensure achievement thereof.

DIC Sustainability Index
All DIC Group products will be mapped on the index■ Focus on Products that Demonstrate Unique

Low

Competitive Strengths
Environmental impact

How much does a product contribute to society? The horizontal axisof the DIC Sustainability Index makes it possible to judge a product’s
contribution to society by determining whether it is a distinctively DIC
offering or demonstrates the Group’s competitive strengths. The DIC Group
believes that all of the products it provides around the world contribute tosociety in some way. In some instances, however, the availability of othersimilar products inevitably limits the value—including the degree of social
contribution and the stability and sustainability of supplies—delivered by a
*URXS¶VRIIHULQJ$VDPDQXIDFWXUHURI¿QHFKHPLFDOVWKH*URXSEHOLHYHV
that it can contribute to a more sustainable society by focusing on productsthat demonstrate its unique competitive strengths and by further enhancing
such strengths, and has thus set related targets under DIC Vision 2030.
Going forward, the Group will continue working to provide distinctively DIC
products that are both sustainable and contribute to the realization of asustainable society.

Sustainableproducts

Commoditized products

Social contribution

The society to which DIC seeks to contributeGreenz Achieve carbon neutralityz Realize a circular economy

Digitalz Propel the evolution of information and communicationsz Drive the evolution of CASE vehicles and MaaSz Promote the development of AI and IoT technologies

QOL
z Deliver safety, peace of mind and conveniencez Prolong healthy life expectancyz Embrace diverse values

High

Value provided
by DIC products

Sustainable product examples

z Contain renewable materials
z Lower energy use, improve
insulation and reduce weightz Address the issue of marine
plastics
z Can be recycled
z Reduce wastez Prolong product life

Sustainableenergy嵣 Materials for next-generation secondary
batteries and fuel cells
嵣 Functional inorganic fillers

Sustainable
packaging嵣 Materials with outstanding barrier properties
嵣 Biomass packaging

Color science嵣 Biomass pigments
嵣 Functional pigments for heat-blocking coatings

Smart living

嵣 Materials for 5G/6G-enabled devices
嵣 Resins for next-generation semiconductors

Color science嵣Functional pigments for LiDAR signal coatings

Healthcare

嵣 High-performance nutritional products嵣 Natural skincare materials

Color science嵣 Natural colorants for cosmetics

z Contribute to high-capacity,
high-speed communicationsz Support the IoTz Contribute to health and comfort
z Help reduce food lossz Reduce emissions of VOCs andenhance safety

DIC Report 2023

36

New Value Creation

Cultivating Next-Generation Businesses
Goals and Achievements of Major Initiatives
Objective of initiatives

Create businesses withthe potential to become
new pillars.

SDGs Goals 8, 9 and 11(YDOXDWLRQVDUHEDVHGRQVHOIHYDOXDWLRQVRIFXUUHQWSURJUHVV.H\★★★ ([FHOOHQW★★ 6DWLVIDFWRU\★ = Still needs work

Goals for fiscal year 2022

Achievements in fiscal year 2022

Designate business areas where(6*UHODWHGLVVXHVDQGVRFLDO
changes intersect with DIC’s
core competencies as priorities
and establish next-generation
businesses that contribute to theresolution of social imperatives.

(IIRUWVFHQWHUHGRQSULRULW\EXVLQHVV
areas. In 3D printing materials andheat-dissipating fillers, the emphasis
was on establishing mass production
and launching new products.
In healthcare, the focus was on
establishing a mass production
technology for SACRAN™ andlaunching a new cosmetics business.

Promote open innovation (through
CVC, collaboration with academic
institutions and M&As) andstrategic investments with theaim of enhancing the DIC Group’s
technology platform and driving
the creation of new businesses
and products.

A strategic investment in U.S.
biotechnology startup BYAS andparticipation in a collaborative
JAIST project involving
collaboration among industry,
government and academia
strengthened capabilities
insufficient in existing assets,
thereby helping advance thecreation of new businesses.

■ Creating New Value

Evaluation

Goals for fiscal year 2023★★★

Designate business areas where(6+UHODWHGLVVXHVDQGVRFLDO
changes intersect with DIC’s
core competencies as priorities
and establish next-generation
businesses that both maximize
corporate profits and amplify social
value.

★★★

Promote open innovation andstrategic investments in areasthat will contribute to a societythat is increasingly green, digital
and QOL-oriented with the aimof driving the creation of new
products and services.

technologies essential to the creation of new businesses. A seamless
framework for cooperation between the two will further drive portfoliotransformation by facilitating the swift establishment of new businesses.
Next-generation and growth businesses are highly competitive andevolve rapidly. In addition to strengthening internal cooperation topromote the commercialization of new products in such areas, theGroup will make active use of external resources by promoting open
innovation by, among others, leveraging corporate venture capital(CVC) and connections in other industries, investing in startups, andcollaborating with academic institutions and other companies.
❶ JDA Aimed at Realizing New Method for Synthesizing Natural
Red Pigments
Recent years have seen a rapid increase in demand—notably for
use as food colorings and in cosmetics—for natural alternatives toconventional synthetic petroleum-derived pigments. Nonetheless, there
have been significant challenges to commercialization of pigments
derived from natural materials, including plants, due to unacceptably
low yields (the amount that can be extracted is often small), excessive
post-extraction waste generation and environmental concerns such as
H[WHQVLYHODQGDQGZDWHUUHTXLUHPHQWV
DIC is currently collaborating with U.S. synthetic biology company
Debut Biotechnology, Inc., with which it has a joint development
agreement (JDA), to realize a new method for synthesizing naturally
derived pigments. Debut possesses outstanding enzyme discovery anddesign technologies, as well as an advanced biomanufacturing platform(precision fermentation and cell-free manufacturing) using these
enzymes. By working together, DIC and Debut are seeking to achieve
the swift commercialization of high-purity and odorless plant-derived
SLJPHQWVWKDWDOVRRYHUFRPHHQYLURQPHQWDOTXDOLW\DQGVXSSO\issues.

The DIC Group’s redefined vision statement expresses its goals of
improving the human condition to realize sustainable prosperity. Seeing
its mission as being to achieve sustainable growth for itself and society,
the Group is pursuing various initiatives aimed at helping realize carbon
QHXWUDOLW\LQOLQHZLWKLWVEDVLFSROLF\RISURYLGLQJJUHDWHUVRFLDOEHQH¿WVthat enhance shareholder value and build long-term corporate value.
6HHNLQJWRIXO¿OOLWVPLVVLRQWKH',&*URXSVHWDWDUJHWLQLWV',&
Vision 2030 long-term management plan of increasing sustainableproducts to 60% of its net sales by expanding businesses ingrowth markets and creating new businesses to promote portfoliotransformation. Through the initiatives set forth in the plan, the Grouppledges to contribute to the realization of a society that is more green,
digital and QOL-oriented.

■ Portfolio Transformation
The COVID-19 pandemic has created a new normal that is expected
to significantly accelerate the transition to a digital society andfundamentally altered consumer behavior. Recent years have alsoheightened corporate awareness of the importance of achieving carbon
neutrality by 2050. Amid these paradigm shifts, the DIC Group has
LGHQWL¿HG¿YHSULRULW\EXVLQHVVDUHDVDWWKHLQWHUVHFWLRQRI(6+UHODWHG
issues and social changes and its core competencies: Sustainableenergy, healthcare, smart living, color science and sustainable
packaging.
7KH1HZ%XVLQHVV'HYHORSPHQW+HDGTXDUWHUVLVFKDUJHGZLWK
commercializing products in next-generation and growth businesses,
while the R&D Management Unit is in charge of establishing inorganic
materials design and biomaterial design technologies as new basic

DIC Report 2023

37

New Value Creation

both subjective and closely linked to human perceptions, and, bygiving numerical representation to colors, creating a common language
understood by everyone involved in the printing process. Going forward, the
DIC Group will continue to advance the creation of new products, services
and businesses that echo human sensibilities, as well as embody its “Color& Comfort” brand slogan, contributing to the realization of a sustainable
society in which people and the earth exist in harmony.

,QWKH¿UVWSKDVHRIWKH-'$WKHSDUWQHUVDFKLHYHGWLWHUVRQHWKRXVDQG
times higher than those typically achieved using traditional methods. In
the second phase, which commenced in July 2022, the two companies
will focus on developing and scaling up a sustainable and highly
HI¿FLHQWSLJPHQWSURGXFWLRQSURFHVVThe DIC Group adds color to people’s lives through the provision ofsuperior color materials. In line with its vision statement, “We improve thehuman condition by safely delivering color and comfort for sustainable
prosperity—Color & Comfort,” DIC will continue striving through this JDA
with Debut to offer safer and more environment-friendly products.

* A Japanese expression meaning “human sensibilities”❸ Development of the World’s First Indoor Mass Cultivation

Technology for Suizenji Nori
Blue-green algae, which absorbs CO 2 and produces multiple useful
substances through photosynthesis, is attracting increasing attention not
only from the perspective of sustainability but also as a material for use invarious industries, including healthcare, medicine and food. Suizenji nori(scientific name: Aphanothece sacrum) is a freshwater blue-green algae
indigenous to Japan that has been highly valued as an ingredient in highHQG-DSDQHVHFXLVLQHVLQFHWKH(GR3HULRG ± 0DFURPROHFXODU
polysaccharide SACRAN™,* extracted from Suizenji nori, is used widely incosmetics thanks to its outstanding moisture-retention capacity, skin barrier
IXQFWLRQVDQGDQWLLQÀDPPDWRU\SURSHUWLHV2ZLQJWRHQYLURQPHQWDOFKDQJH
Suizenji nori habitats have declined to the point where today the only place
LWJURZVQDWXUDOO\LVLQDQGDURXQGWKH.RJDQH5LYHULQWKHFLW\RI$VDNXUD
Fukuoka Prefecture.
In March 2021, DIC entered into a capital and business alliance withJapanese biotech startup Green Science Materials Co., Ltd. (GSM). In
fiscal year 2022, this alliance, which brings together DIC’s algae culture
technology, fostered over 40 years of producing edible blue-green algae
Spirulina, with the results of basic research in the cultivation of Suizenji
QRULFRQGXFWHGE\*60OHGWRWKHGHYHORSPHQWRIWKHZRUOG¶V¿UVWLQGRRU
mass cultivation for the rare freshwater algae. The companies are currently
working toward commencing mass indoor Suizenji nori cultivation, as wellas to global sales of SACRANH[WUDFWHGIURP6XL]HQMLQRULDVDXQLTXHO\Japanese cosmetic ingredient. DIC and GSM will also continue striving
to capitalize on the functionality of Suizenji nori to expand applications inareas other than cosmetics, including medicine, nutritional supplements,
personal care and apparel.
By strengthening its biobased materials business in the area of healthcare
and leveraging functional materials extracted from algae, the Company will
work to enhance its contributions to QOL, as set forth in its DIC Vision 2030
long-term management plan.

❷ The New DIC Human Sensitivity Lab: A Base for Developing

Products and Services Based on Human Sensibilities
With economic progress, people are increasingly making the conscious
FKRLFHWRSULRULWL]HVSLULWXDOZHDOWKRYHUPDWHULDODIÀXHQFH7RJHWKHUZLWK
7RN\REDVHG/HDYH$1HVW&R/WG',&HVWDEOLVKHGWKH',&+XPDQ
6HQVLWLYLW\/DEZKLFKZLOOZRUNWRWKHRUHWLFDOO\TXDQWLI\²DQGWRFUHDWH
new products, services and businesses that echo—human sensibilities.
%\VFLHQWLILFDOO\LOOXPLQDWLQJDQGWKHRUHWLFDOO\TXDQWLI\LQJWKHILYH
senses—the biological system used for sensation, that is, the gatheringof information about the world through the detection of stimuli—aswell as human sensibilities, which are emotional reactions that are
informed by habits, experiences and environmental factors, the DIC+XPDQ6HQVLWLYLW\/DEVHHNVWREXLOGWKHKansei* Technology Platform,
DSURGXFWDQGVHUYLFHGHYHORSPHQWSODWIRUP2QHVSHFL¿FGHYHORSPHQWWKHPHLQYROYHVFROODERUDWLQJZLWK-DSDQHVH¿UP.DQVHL$,&R/WGDVWDUWXSWKDWEHJDQDVSDUWRI7KH8QLYHUVLW\RI(OHFWUR&RPPXQLFDWLRQVto develop a new materials development system that uses measuring
WHFKQRORJLHVWRTXDQWLI\DQGREMHFWLYHO\SUHVHQWWKH³kansei value” ofthe tactility and texture of materials.
,Q',&ODXQFKHG-DSDQ¶V¿UVWFRORUVDPSOHERRNIRUWKHSULQWLQJ
industry, the DIC Color Guide ®, setting standards for colors that are

TOPIC* SACRAN is a trademark of GSM.

DIC Launches Skincare Brand fillwith, Which Pleases Users’ Sensibilities and Benefits Their Skin

,Q¿VFDO\HDU',&ODXQFKHGQHZVNLQFDUHEUDQG¿OOZLWK. Designed to pleaseusers’ sensibilities, ¿OOZLWK is the embodiment of “comfort.” In addition to moisturizing,these products resonate with the senses of sight, touch and smell, appealing to
UH¿QHGVHQVLELOLWLHVDQGHQYHORSLQJWKHXVHULQOX[XU\7KH\DUHGHVLJQHGWREHDQ
extension of the individual user, inspiring an emotional response and evoking the
progress of life and the changing of the seasons.
Drawing on the bounty of nature, ILOOZLWK cosmetics are crafted with carefully
selected natural ingredients, including fragrances, derived from plants and algae.
Particularly notable is a naturally derived macromolecular polysaccharide, extracted
from Suizenji nori blue-green algae, that boasts approximately 10 times the moistureretention capacity of hyaluronic acid.* Sales of ¿OOZLWK cosmetics, which are available
H[FOXVLYHO\YLDDQRI¿FLDORQOLQHVWRUHFRPPHQFHGLQ)HEUXDU\

Looking ahead, DIC will continue to offer ILOOZLWK cosmetics made withmacromolecular polysaccharide extracted from Suizenji nori that respond tochanging skincare needs, helping to support users’ physical and spiritual well-being.
2IÀFLDO%UDQG:HEVLWH

KWWSV¿OOZLWKVW\OHFRPVKRS* $VPHDVXUHGE\WKH-DSDQ$GYDQFHG,QVWLWXWHRI6FLHQFHDQG7HFKQRORJ\XVLQJDPRGL¿HGWHDEDJPHWKRGDIC Report 2023

38

Sustainable Technology and Product Development

Proposing Solutions that Leverage Core Technologies
Goals and Achievements of Major Initiatives
Objectives of initiatives

Enhance ability to develop
products and technologies
that facilitate contribution toa sustainable society.

Accelerate efforts to develop
products that contribute tosustainability.

SDGs Goals 9 and 11

Evaluations are based on self-evaluations of current progress. Key: ★★★ = Excellent; ★★ = Satisfactory; ★ = Still needs work

Goals for fiscal year 2022

Achievements in fiscal year 2022

・ Accelerate collaboration among global

・ Various facilities collaborated totechnology bases in the developmentof strategic products and newtechnologies.
・Make use of compounding
technologies, open innovation and
AI to hasten the development oftechnologies that create added value.

promote R&D・ Steps were taken to advance the useof AI and MI to reduce the numberof research themes and development
time, and to promote collaboration withspecialized third-party AI and biotech
firms.

Accelerate efforts to develop
products that contribute tosustainability.

Efforts led to the launch of multiple
new biomass products, including
a polyester plasticizer, UV-curable
clear varnish and packaging
materials suitable for recycling.

Evaluation

Goals for fiscal year 2023
・ Accelerate collaboration among global

technology bases in the development ofstrategic products and new technologies.
・ Make use of compounding technologies,
open innovation and AI to hasten thedevelopment of technologies that create
added value.

★★

Accelerate efforts to develop
products that contribute tosustainability.

★★

biomaterials design. The Group also actively promotes the use of AI
and materials informatics (MI), as well as the training of AI specialists.

■ Achieving Sustainable Growth:LWKWKHDLPRIUHDOL]LQJLWVUHGH¿QHGYLVLRQVWDWHPHQW³:HLPSURYH
the human condition by safely delivering color and comfort forsustainable prosperity—Color & Comfort,” the DIC Group strives to
add depth to its existing basic technologies in the areas of optics andcolor, organic materials design, polymer design and dispersion, and tofoster new technologies in the areas of inorganic materials design andTo build a portfolio of next-generation products and new technologies
and drive sustainable growth, the DIC Group continues working tointegrate Groupwide technological resources, as well as promotes open
innovation by, among others, collaborating with industry, government
and academia and making use of CVC.

([LVWLQJ%DVLF7HFKQRORJLHV
Biomaterials
designOrganic
materials
designOptics andcolor

Polymer
designInorganic
materials
designBiomaterials
designInorganic
materials
designOptics andcolor

Common basic
technologies

Dispersion

Computational science(AI and MI), Analysis

Dispersion

Applicability
assessment

Polymer
designAI and MI

Organic
materials
designApplicability
assessment(Coating,
printing,
molding)(Coating, printing, molding)

DIC’s rich lineup of basic technologies is
a competitive advantage

living that improve the environmental performance of the products inwhich they are used, making the use of DIC products a way customers
can contribute to addressing global environmental issues. In Japan, theGroup devotes approximately 54% of its technological resources to thedevelopment of such products.

■ 6SHFLÀF,QLWLDWLYHVDQG$FKLHYHPHQWVThe DIC Group is advancing the development and use of clean
technologies. This includes promoting the development of materials foruse in such areas as sustainable packaging, color science and smart

DIC Report 2023

39

Sustainable Technology and Product Development

PRGL¿FDWLRQFRQQHFWHGGLUHFWO\WREXVLQHVVHV',&*UDSKLFV&RUSRUDWLRQ¶VTechnical Division; the R&D Management Unit, which is responsible
for adding depth to existing basic technologies and fostering new basic
technologies; and the New Business Development Headquarters, which
is charged with creating strategic new businesses and commercializing
EXVLQHVVXQLWV¶QH[WJHQHUDWLRQSURGXFWV2YHUVHDVWKH*URXS¶V5 'LVFRQGXFWHGE\WKH6XQ&KHPLFDO*URXS¶VUHVHDUFKFHQWHUVLQWKH8QLWHG
States, the United Kingdom and Germany; Qingdao DIC Finechemicals Co.,
Ltd., in the PRC; printing inks technical centers, polymer technical centers,
solid compound technical centers and pigment technical centers in the PRC
DQGWKH$VLD±3DFL¿FUHJLRQWKH)LQH&KHPLFDO7HFKQLFDO&HQWHU±.RUHDDQG
an algae research center in the United States. These facilities are working
DVRQHZLWKWKHQHZ7DSH7HFKQLFDO&HQWHU±&KLQDHVWDEOLVKHGLQWR
promote the global development of products and technologies.

■ Sustainable Packaging
Highlights in the area of printing inks include the development and launchof a new series of low temperature–drying web offset inks that reduce
associated CO2 emissions attributable to use because less gas is required fordrying, a series of UV-curable clear varnishes that earned the Biomass Mark
from the Japan Organics Recycling Association (JORA), and antibacterial
and antiviral overprint varnishes. In materials for packaging, the DIC Group
expanded its lineup of products, introducing adhesives with barrier properties,
ordinary coatings and heat-resistant coatings that are compatible withrecyclable mono-material packaging. The Group also worked to expand salesof products that contribute to the reduction of food loss, including easy-peel¿OPVIRUWKHOLGVRISUHSDUHGIRRGFRQWDLQHUVXVHGE\FRQYHQLHQFHVWRUHVDQG
pulp molded containers for home-delivery frozen lunch boxes.

■ Accelerating the Expansion of Sustainable Products

In response to market demand and sustainability trends in the regions inwhich it operates, the Sun Chemical Group focused on developing new
integrated solutions for making packaging more recyclable, including barrier,temperature-resistant and protective coatings, adhesives, sealants andrecycle-friendly inks. These technologies are enablers for recyclability, for
reducing weight and for transitioning from plastic to paper packaging.

DIC has introduced the proprietary DIC Sustainability Index. (For more
LQIRUPDWLRQSOHDVHVHHSDJH 7KLVLQGH[LVXVHGWRVLPXOWDQHRXVO\assess all DIC Group products from the perspectives of environmental
impact and social contribution. The Group defines products that will help
it address key social imperatives as sustainable. The index is also used in
R&D to determine the focus of research and product development themes,
LQFOXGLQJWKHPRGL¿FDWLRQRISURGXFWVWRUHGXFHHQYLURQPHQWDOLPSDFW

■ Color Science
As well as the development of new products in the area of pigments for
FRORU¿OWHUVXVHGLQGLVSOD\VWKH',&*URXS¶VDFKLHYHPHQWVLQWKHDUHDRI
color materials included the commercialization of pigments for water-based
ÀH[RLQNVZLWKUHGXFHGFRQFHQWUDWLRQVRIKDUPIXOSULPDU\DURPDWLFDPLQHVThe Group also developed and began shipping samples of a new UV
dispersing ingredient for sunscreen, an active cosmetic ingredient containing
polysaccharide SACRAN™, extracted from Suizenji nori, a freshwater bluegreen algae.

■ Product Stewardship
The DIC Group views product stewardship as a key aspect of its operations.
The Group has established a global product stewardship team for printing
inks, adhesives and other products used in food packaging, which it supplies
to customers around the world. The team shares information on regulations
and relevant topics from various markets, as well as advances awarenessthereof and provides training. Knowledge thus gained is incorporated into
SURGXFWGHVLJQDQGLVXVHGWRSURGXFHFRPSOLDQFHFHUWL¿FDWHVDFURVVWKH
supply chain, which are sought by customers worldwide.

Overseas, the Sun Chemical Group inaugurated sales of a range of new
products. Among these were two new orange and eight new plant-derived
natural effect pigments for cosmetics, as well as eight new effect pigments forautomobile coatings that expand color choices available for use on vehicles.

The DIC Group also strives to maintain a solid grasp of laws and regulations
in different countries and territories, and of trends in environmental
initiatives, to ensure its ability to design products that comply with diverse
controls on the use of chemical substances. In addition, the Group conducts
environmental assessments on a continuous basis.

■ Smart Living
R&D in the area of synthetic resins centered on low-dielectric materials forelectronic circuit boards for 5G/6G-enabled communications devices andbiomass resins such as an all-sustainable alkyd resin composed of biobased
and recycled monomers and bioderived solvents. In metal carboxylates,
the DIC Group embarked on the provision of a new cobalt-free drier forcoatings in the particularly environment-conscious European market. In
DGGLWLRQ',&¶VELRPDVVEDVHGSRO\HVWHUSODVWLFL]HUZDVDFFUHGLWHG
DVD&HUWL¿HG%LREDVHG3URGXFWXQGHUWKH86'$¶V%LR3UHIHUUHG3URJUDP
which is expected to help boost its adoption by a broad range of industries,
including in the United States, Europe and the PRC, while in industrial
adhesive tapes the Group expanded its lineup of products for attaching
VPDUWSKRQHFRPSRQHQWVDQG¿[LQJSDQHOVLQWKHSURGXFWLRQRIFRPSXWHUV
that deliver excellent removability and reworkability.

■ Innovation through Compounding
Building on its fundamental pigment and resin dispersion and formulating
technologies, realized through the production of printing inks, the DIC
Group has succeeded in combining materials with different properties andperformance characteristics to develop groundbreaking products and create
QHZYDOXH,QWKHDUHDRIFRPSRXQGVIRU'SULQWLQJWKH*URXS¶VDQWLYLUDO
DQGDQWLEDFWHULDOWKHUPRSODVWLFSRO\XUHWKDQHUHVLQ 738 ¿ODPHQWIRUDGGLWLYHPDQXIDFWXULQJEHFDPHWKH¿UVWVXFKPDWHULDOWRHDUQFHUWL¿FDWLRQIURPWKH
Society of International sustaining growth for Antimicrobial Articles (SIAA).
In PPS compounds, the Group promoted the development of products withoutstanding insulating properties and thermal conductivity for use in motor
components for electric vehicles (EVs) and e-bikes. The Group will continue
to harness its distinctive compounding capabilities to transform its diverse
technologies into competitive advantages with the aim of driving innovation.

■ $*OREDO5 '&RQÀJXUDWLRQWKDW8QGHUSLQV3URGXFWDevelopment
7KH *URXS¶V 5 ' RUJDQL]DWLRQ LQ -DSDQ FRPSULVHV WKH 7HFKQLFDO
Management Unit, which is responsible for product development and

DIC Report 2023

40

Sustainable Technology and Product Development■ Responding to a Circular Economy,QOLQHZLWKWKH³5V´ UHXVHUHGXFHUHQHZUHF\FOHDQGUHGHVLJQ whichseeks to advance the circular use of resources, the DIC Group is working
to expand its lineup of biomass products, crucial to the achievement ofcarbon neutrality, shift to recyclable materials, and develop biodegradable
and compostable materials. In addition, the Group is promoting thedevelopment of production processes using algae and bacteria, and of
biopolymers, as well as the realization of a closed-loop chemical recycling
process for polystyrene and an innovative deinking agent. The Group isalso taking active steps to help reduce waste plastic and marine plastics,
UHFRJQL]LQJWKHVHDVFKDOOHQJHVWKDWDVDPDQXIDFWXUHURI¿QHFKHPLFDOV
it has a responsibility to address.

■ Intellectual Property
Basic Approach
The DIC Group recognizes intellectual property as an importantmanagement resource and advances related initiatives, including thedevelopment of new technologies and branding, that are in conformancewith its business and technology strategies, with the goal of building
valuable intangible assets.
Actively Promoting Intellectual Property Strategies in Priority
Business Areas in Line with DIC Vision 2030
The analysis of patent information, a treasure trove of big data thatplays a key role in the formulation of business strategies, using DX isemerging as a mainstay of intellectual property strategies. With the aimof establishing new basic technologies and creating new sustainabilityrelated and other businesses, the DIC Group is promoting more extensive
use of patent landscapes, which combine analyses of patent data withbusiness information, yielding insights that assist its efforts to promote
new businesses, in tandem with marketing activities conducted bybusiness groups and technical teams.

The DIC Group is also capitalizing on AI and MI to actively implement
its intellectual property strategies, as well as to transform its intellectual
property portfolio by swiftly applying for related patents. To these ends,
the Group is working closely with its Data Science Center.
Protecting Corporate Value by Managing Intellectual
Property Risks
In line with its basic policy on compliance, the DIC Group works toprotect business earnings and minimize intellectual property risks byconducting exhaustive patent clearance searches in new markets andfor new technologies, promoting contract management, effectively
PDQDJLQJFRQ¿GHQWLDOLQIRUPDWLRQDQGDGYDQFLQJLQLWLDWLYHVWRSUHYHQWcounterfeiting, patent infringement and the use of similar trademarks.
Accordingly, the Group is building a configuration for intellectual
property management that conforms closely with business and productdevelopment strategies and fostering greater awareness of intellectual
property and related risks by providing training, including e-learning
programs offered at Group sites both in Japan and overseas.
Improving Corporate Value through Effective Intellectual
Property Governance
The DIC Group strives to bolster its corporate value by enhancing thevisibility of its intangible assets, as well as by accurately evaluating
LWVFRPSHWLWLYHQHVVDQGHQVXULQJFRPSOLDQFHZLWK-DSDQ¶VUHYLVHG
&RUSRUDWH*RYHUQDQFH&RGH',&¶VLQWHOOHFWXDOSURSHUW\LQLWLDWLYHV
are also attracting notice from external observers. The Company
is regularly among the top companies in the chemicals industry inJapan in terms of patent assets owned in a ranking conducted by an
LQGHSHQGHQW¿UP

With the focus of its core business areas shifting toward sustainabilityrelated areas, the DIC Group will also broaden its use of patent
landscapes to add depth to these businesses by identifying areas in which
it can demonstrate core competencies, evaluating potential M&A targets
in terms of ability to bolster business scale and analyzing the strategies
of competitors. One such areas is pigments, where patent landscapes
have enabled the Group to not only reinforce existing businesses but
also diversify into new areas such as cosmetics. Patent landscapes also
increased the effectiveness of M&A activities by clarifying to what degree
the acquisition of the Colors & Effects pigments business would be
EHQH¿FLDOLQH[SDQGLQJWKH*URXS¶VLQWHOOHFWXDOSURSHUW\SRUWIROLRLQWKLV
area. This is shown in the image at the top of the next column.

VOICE

3DWHQW5HVXOW&R/WGLQWKHUDQNLQJ',&ZDVHLJKWKWe developed antibacterial and antiviral overprint varnishes that contribute to a better QOL.

:LWKWKHDLPRIKHOSLQJHQVXUHWKDWWKHWDUJHWVRI',&9LVLRQDUHPHW',&*UDSKLFV¶3DVWH,QN7HFKQLFDO*URXSLVIRFXVLQJLWVHIIRUWVRQ
developing sustainable ink products that will help make society greener and more QOL-oriented. We recently developed a series of overprintYDUQLVKHVZLWKDQWLEDFWHULDODQGDQWLYLUDOSURSHUWLHVWKDWFDQEHFXUHGHYHQZLWKHQHUJ\HI¿FLHQW/('EDVHG89FXULQJV\VWHPV,QDGGLWLRQWR
the superb performance of a conventional product in terms of imparting decorative properties and protective coatings, these products earned
FHUWL¿FDWLRQIURP6,$$IRUWKHLUDELOLW\WRVXSSUHVVWKHJURZWKRIEDFWHULDDQGLQDFWLYDWHYLUXVHVPaste Ink Technical Group, DIC Graphics Corporation

DIC Report 2023

41

Tomokazu Yamada

Digital Transformation (DX)

Driving Business Model and Portfolio Transformation
Goals and Achievements of Major Initiatives
Objective ofinitiatives

Promote DX.

Evaluations are based on self-evaluations of current progress. Key: ★★★ = Excellent; ★★ = Satisfactory; ★ = Still needs work

Goals for fiscal year 2022

Achievements in fiscal year 2022

Evaluation

Goals for fiscal year 2023

Establish a framework that balances
the need for speed with that for the
management of risks.

A dedicated framework was established to oversee
important DX measures, including digital marketing andthe building of a standard SCM model, on a Companywide
basis. A system was created to lead these initiatives thatinvolves cooperation among business units, administrative
departments and production facilities.

★★★

Steadily advance DX initiatives acrossan increasing number of business
units/functional departments.

Advance DX measures across multiple
business units/functional departments.

As important DX projects currently being promoted involve
multiple departments, steps were taken to encouragecross-departmental cooperation and ensure smooth
implementation.

★★

Introduce digital initiatives that support
the exploration of business modeltransformation.

Begin exploring business modeltransformation.

Efforts were launched to explore the effective use of digitaltechnologies in business model transformation initiatives
being undertaken by business units.

★★★

Further strengthen the frameworkfor promoting DX in terms of humanresources, skills and expertise.

■ Basic Policy■ Market

The DIC Group promotes DX with the objective of providing new value andreinforcing its corporate structure and competitive advantages through theuse of digital technologies and data. The Group is advancing initiatives
in three key areas: Market,* production and technology, and supply chain
management (SCM). The Group is also working to realize a next-generation
digital integrated platform and securing and training human resources toestablish the infrastructure necessary to advance DX.

Through DX, the DIC Group seeks to enhance brand strength by creating
high-level customer experiences, as well as to achieve business modeltransformation. With the accelerating digitalization of its operations andthe increasing use of telework, the importance of digital media as achannel for contact with customers is growing. The Group is working toencourage continued patronage by extending proposals that incorporate
the customer’s perspective, thereby creating business opportunities, aswell as by improving customers’ experiences with the goal of encouraging
FRQWLQXHGSDWURQDJH,Q¿VFDO\HDUWKH*URXSZLOOIXUWKHUOHYHUDJH
digital marketing in the creation of new customer experiences. ThroughDX, the Group will also seek to stimulate collaboration within the DIC
Group to drive business model transformation.

* “Market” is used here in the sense of sales and marketing functions.

■ Framework for Promotion
The IT Strategy Unit’s Information Systems Department and the DX
Promotion Department capitalize on data and digital technologies,
eliminating boundaries between IT and DX, to promote processoptimization, work style reforms and the innovation of business models
over the short term, as well as the medium to long term. Looking ahead,the DIC Group expects to see an increase in the promotion of independent
DX initiatives by individual business units and functional departments.
Accordingly, the Work Style Revolution (WSR) 2020 Committee traces,
provides effective support for and conducts post-implementation monitoringof such initiatives to ensure optimization from a Groupwide perspective.

■ Production and Technology
On the production side, DIC is deploying digital technologies widely
at production sites with the aim of realizing smart factories that
reduce workloads and ensure safe, stable operations. The DIC Groupdeveloped a testing machine in fiscal year 2022 that utilizes reaction
simulation, an AI technology, to optimize small-lot, high-mix productionof resins using digital twins. Efforts to verify the machine’s effectivenessare currently underway. The Group is also accelerating the developmentof a database infrastructure and reinforcing its cyber security
management, which is essential to the realization of smart factories.

Framework for Promoting DX
Board of Directors
President and CEO

On the technology side, the DIC Group sought to expedite the
WUDQVIRUPDWLRQRILWVEXVLQHVVSRUWIROLRDVRXWOLQHGLQ',&9LVLRQ
by shifting the focus of its efforts to computational science, which uses$,DQG0, ,Q¿VFDO\HDUWKH*URXSHVWDEOLVKHGWKH'DWD6FLHQFH
Center, a specialized AI organization, through which it is working tohalve the development stage for new products and double the numberof development themes in play.

WSR 2020 Committee
ReportTrace, provide effective support for and conductpost-implementation monitoring of DX initiatives

IT Strategy Unit
Information Systems Department
DX Promotion Department
Business units/functional departments* MI applies statistical analysis and other informatics techniques to search large amounts of data for new materials.
DIC Report 2023

42

DX

Digital Twin Technology for Total Production Process Automation (Scope of DIC’s Cocreation with Hitachi)
Digitalization of operating status using
high-precision reaction prediction model

AI-based analysis

Use of process informatics todetermine optimal operating conditions

Frontline data

Theoretical model
Literature

Optimization of
production planning

Traceability

y=f(x)
Theoretical data

Cooperation
with suppliers

Raw material data

Operating data

Sampling data

Quality data

Demand prediction

Cyberspace
Physical world

Incorporation of
production data

Distributed control system
Raw materials

Provision of
Manufacturing execution system feedback on optimal
operating conditions

Sampling
Testing

Plant A

Production：Input of raw materials → Reaction → Postprocessing → Testing

Procurement

Sales/after-sales service

Optimization of the supply chain

Expertise cultivated to date Digitalization

Organization of data and generation of ideas

7HVWLQJDQGYHUL¿FDWLRQ)RUPXODWLRQRISODQ

Completion of new product/technology

Fewer cycles
Test data

Public databases

Internal and external
Documentation/rights technical data

of
ion
rat
e
l
ce
Ac

,GHQWL¿FDWLRQRIUHODWLRQVKLSV
Planning of optimal test

Grasp of causal relationships

Application of expertise tonext-generation products

comprehensive digital integration platform that will enable the use of digital
WHFKQRORJLHVDQGGDWDDVZHOODVIDFLOLWDWHÀH[LEOHDQGUDSLGV\VWHPOLQNDJH
with internal and external parties.

■ SCM,QDGGLWLRQWRLPSURYLQJWKHYLVLELOLW\RIWKHÀRZRIJRRGVDQGLQIRUPDWLRQ
through its supply chains, the DIC Group is promoting related reforms
designed to ensure supply chain–wide optimization. To this end, theGroup is leveraging digital technologies to realize real-time platform
linkage between sales and production data, as well as statistical demand
forecasting, which it began rolling out gradually in Japan, the PRC and the$VLD±3DFL¿FUHJLRQLQ¿VFDO\HDU

■ Securing and Fostering Human Resources
DIC is also focusing on taking advantage of digital technologies and data
to creating a human resources management foundation for promoting
business reforms, problem solving and decision making that encompasses
ERWKH[HFXWLYHVDQGHPSOR\HHV,Q¿VFDO\HDUWKH',&*URXSEHJDQ
offering training for future data scientists and other individuals whose jobs
UHTXLUHWKHXVHRIGDWD,Q¿VFDO\HDUWKH*URXSFUHDWHGDIUDPHZRUN
and team for driving digitalization in business units and introduced practicaleducation and training of staff for this purpose. The Group is also fosteringin-house human resources, as well as actively recruiting new graduatesand mid-career hires, to expand on-site data utilization using agile andother practices.

■ Updating Core Business Systems and Establishinga Global Digital Integration Platform
The DIC Group plans to update its core business systems in fiscal year
2024. Seeing this as an opportunity, the Group will respond to changes in its
operating environment, business structural reforms and advances in digitaltechnologies to build a global digital platform that will be capable of evolving
HYHQ\HDUVGRZQWKHURDG7KH*URXSZLOODOVRHVWDEOLVKDQH[WJHQHUDWLRQ

TOPIC

t
en
pm
elo
v
de

Digital Marketing Initiatives Are Advancing

Four years have passed since DIC introduced Salesforce cloud-based services
DQGPDUNHWLQJDXWRPDWLRQGXULQJZKLFKGLJLWDOPDUNHWLQJKDVEHFRPH¿UPO\cemented in all pertinent departments. Beginning with point-of-sales digitalmarketing, individual departments have stepped up efforts to include conducting
quantitative analyses of outcomes before determining subsequent actions. The
entrenchment of digital marketing has also spurred individual departments to
EXLOGDIUDPHZRUNIRUWKHVHDFWLYLWLHV2ZLQJWRWKHJUHDWHUSUHYDOHQFHRIRIÀLQH
PDUNHWLQJLQLWLDWLYHVFRPSDUHGZLWK¿VFDO\HDUWKH&RPSDQ\SURPRWHG
“hybrid” activities, which incorporate digital marketing into participation in
WUDGHVKRZVLQ¿VFDO\HDU2QHH[DPSOHZDVWKHXVHRIHPDLOPDUNHWLQJin conjunction with its trade show participation with the purpose of gaining
promising leads, which succeeded in increasing the number of business cards
received and creating a new point of contact with customers.

Digital marketing is not something that can be completed on a computer.
Maintaining a Companywide perspective, DIC will continue striving tocommunicate the appeal of its products by capitalizing on the expertiseand experience accumulated by sales and technical teams, thereby further
enhancing customer value.

DIC Report 2023

43

Trade show participation
incorporating digital marketingHarmony with the Community and Social Contributions

Adding Color & Comfort to Lifestyles

SDGs

Goals 3 and 4

Basic Approach to Social Contribution
Based on its Guidelines for Social Contribution Activities, established in fiscal year 2009, the DIC Group works to ensureharmony with local communities and individuals through activities aimed at building a strong relationship with society.

Guidelines for Social Contribution Activities
In line with its vision statement, “We improve the human condition by safely delivering color and comfort for sustainable
prosperity—Color & Comfort,” the DIC Group will promote social contribution in three areas: Business activities, culture andeducation, and communities and society.

Business activities
The DIC Group will offer products and services that contribute to the development of a sustainable society and protection of
the global environment from the perspective of “sustainability through business activities.”

Culture and education
The DIC Group will engage in initiatives that will contribute to the development and promotion of culture, the arts, science andeducation, including fostering next-generation human resources in areas such as the culture of color and chemistry.

Communities and society
The DIC Group will strive to coexist harmoniously with local communities to develop a relationship of mutual trust. Moreover, theGroup will provide an environment that enables employees to engage in voluntary initiatives in their respective local communities.

・2018
Taking into account nearly a decade of use, the participants in the original
project to create the Color Universal Design–Recommended Color Set
revised the set’s color values to further enhance usability. The organizations
also cooperated to publish a guidebook on effective use of the set and havesince worked to promote understanding and awareness.

■ Principal Initiatives○ CUD: The Future of Color and Comfort

The DIC Group is actively involved in R&D in the area of color universal design (CUD)
as well as in expanding public awareness and understanding of CUD’s importance.

・2007–2010
Under the supervision of the University of Tokyo, the DIC Group, theJapan Paint Manufacturers Association, the Industrial Research Instituteof Ishikawa and the Color Universal Design Organization embarked on a
project to create the Color Universal Design–Recommended Color Set.
Thanks to repeated verification tests, the organizations realized a set ofcolors that are relatively easy to distinguish regardless of ability to see
colors and can be reproduced using printing inks, coatings and digital
imaging, and embarked on efforts to encourage recognition and use.
・2011–2014
The DIC Group and architect Kengo Kuma collaborated to develop newtactile paving that ensures high visibility for visually impaired individuals
and is in harmony with the landscape. Subsequently, in spring 2018, two
new color options—a warm orangey yellow and a cool yellowish green—
were commercialized under the name Lucida®, which have since been
adopted for use in numerous buildings and stations.
・2015–2017
The DIC Group participated in a joint industry–academic research project, aspart of which Chiba University, the Central Research Laboratories and DIC Color
Design, Inc., gave presentations at academic conferences around the world
on joint research in the color appearance of red spot colors used for printed
warnings and other important information on packaging and on the use of color
in printed materials to enhance readability for seniors.

In 2018, the Japan Industrial Standards (JIS) announced a groundbreaking
new standard for safety colors that can be distinguished by people withdiverse types of color vision (JIS Z 9103). As a member of the originaldrafting committee, the DIC Group was involved in setting recommended
CMYK values for process printing and also cooperated in subsequent
activities aimed at advancing awareness.
・2019–2021',&EHJDQSDUWLFLSDWLQJDVDQH[SHUWLQWKH¿HOGRIFRORULQWKHYHUL¿FDWLRQ
of safety-related color schemes for applications such as disaster prevention
LQIRUPDWLRQ,QWKLVFDSDFLW\WKH',&*URXSWRRNSDUWLQYHUL¿FDWLRQWHVWLQJ
IRUWKHVHWWLQJRI5*%YDOXHVIRUVFUHHQGLVSOD\VIRUDFRORUVFKHPH ¿YHcolors) developed to convey heavy rain warning levels in an easy-tounderstand manner, which was announced in 2020 by Japan’s Cabinet
2I¿FH,QIRUPXODWLQJ&0<.YDOXHVIRUWKHVDPHFRORUVFKHPHDQQRXQFHG
in 2021, DIC Graphics cooperated by not only verifying candidate colors but
DOVRSULQWLQJDFRORUFKDUWIRUXVHLQWKHYHUL¿FDWLRQSURFHVV
・March–April 2022
In March and April 2022, the DIC Group published a two-part feature on
its efforts to contribute to society through color in the Japanese-language
space of its global website. Since then, the Group has continued working
to provide stakeholders with information on its initiatives to make society

DIC Report 2023

44

Harmony with the Community andSocial Contributions

more accessible to people with diverse types of color vision, as well as tointroduce key difference makers from both within and outside the Group.
・March 2023
DIC Color Design held a webinar on the value and purpose of CUD and
how it can be used to promote activities in accordance with the Sustainable
Development Goals (SDGs). Taking into account the challenges associatedwith color use and design in a diverse society, the DIC Group leveraged
its expertise in CUD, as well as related technologies, to people involved in
WKHSURGXFWLRQRIJRRGVDQGLQIRUPDWLRQWRHQVXUHWKDWFRORUDQG&8'IXO¿OO
their potential to contribute to the realization of the SDGs.

prevent the spread of infection, with the ultimate goal of restoring these
initiatives to pre-pandemic levels.
Looking ahead, the museum will continue to plan and stage exhibitions
centered around works from its collection. The museum will also
advance social contribution activities and enhance its digital presencewith a view to encouraging communication with the community.

Kawamura Memorial DIC Museum of Art

Museum entrance hall

○ Kawamura Memorial DIC Museum of Art

The Kawamura Memorial DIC Museum of Art, located adjacent to the Central
Research Laboratories in Sakura, Chiba Prefecture, was established in 1990 to
SXEOLFO\H[KLELWZRUNVRIDUWFROOHFWHGE\',&&RUSRUDWLRQDQGLWVDI¿OLDWHV7KH
museum’s extensive collection spans numerous genres, encompassing an oil
portrait by Rembrandt, a rarity in Japan, as well as works by impressionists suchas Monet and Renoir; modern European artists such as Picasso and Chagall;
early modern, modern and postwar Japanese artists; and luminaries of late-20th
century American art, including Mark Rothko, Cy Twombly and Frank Stella. In
addition to a standing exhibit from its permanent collection, the museum stages
special exhibitions multiple times a year to encourage a deeper understanding of
the works in its collection.

Outdoor terrace○ Visiting Science Lab Program

In line with the Japanese government’s efforts to further career education
initiatives, DIC conducts visiting science labs at public elementary schools.
Based on the theme of “Color & Comfort,” this program, which highlights how
science can help secure a brighter future for humanity and the planet, comprises
experiments that involve observing the mechanism of color printing, extracting
natural pigments from algae and dissolving recyclable adhesives.
Since launching this program in 2010, DIC has provided labs for approximately
3,300 students at 46 elementary schools and university facilities (as partof an event). Visiting science labs were suspended in fiscal year 2020, theprogram’s 10th year, as a result of COVID-19. While unfortunate, this provided
the opportunity for a careful reassessment of the program. A new, updated
version was unveiled in December 2022 when the Company participated in
Tohoku University’s Science Campus project. The program was well received
by participating students, who commented on the interesting nature of theexperiments and the joy of making new discoveries, as well as by parents andguardians and event organizers, who expressed appreciation at the opportunity
to understand principles they find mystifying, and to learn how companies
develop products that align with contemporary concerns. Going forward, the DIC
Group will continue to promote this and other programs that make science funfor children and which spark enthusiasm for chemistry.

Another appealing aspect of the museum is its location on a lushly forested
KHFWDUHVLWHDOLYHZLWKVHDVRQDOÀRZHUVDQGIROLDJHWKDWKDVEHHQRSHQWR
the public since the museum’s establishment. A total of 250 cherry trees—10
YDULHWLHVLQWRWDO²EORVVRPHYHU\VSULQJZKLOHLQVXPPHUZLOGÀRZHUVRIDOOFRORUV
bloom profusely.
In fiscal year 2023, the museum is celebrating its 34th anniversary. Two
special exhibitions are being held. “Rendez-vous dans le Midi” focuses on the
VRXWKRI)UDQFHDVDSODFHZKHUHDUWÀRXULVKHGLQWKHWKFHQWXU\H[KLELWLQJ
approximately 150 works by around 30 artists from museum and other collectionsin Japan through which it highlights the extensive interaction among artists activein the region, as well as the forms of expression and artistic techniques thatevolved. “Josef Albers: Pedagogical Experiments” will introduce works by the
painter, designer and art professor, who was active in Germany and the United
6WDWHV7KLVZLOOEHWKH¿UVWUHWURVSHFWLYHRI$OEHUV¶ZRUNVKHOGLQ-DSDQMany museum programs, including regularly scheduled guided tours,
the “mite!” (“look!”) online interactive art-viewing experience, artappreciation tours for students and other educational support activities,
and group museum visits were curtailed over the past three years
due to COVID-19. The museum is promoting the gradual resumptionof these and other activities, making adjustments as necessary to

DIC Report 2023

45

Harmony with the Community andSocial Contributionssite employees, including to reuse containers and logistics materials
deployed in production processes, rigorously separate and recycle
waste, and prevent the discharge of hazardous substances byadopting sealed lids for the storage of volatile solvents. The DIC
Group will continue to espouse a corporate culture that encourages
each and every employee to take on new challenges, thereby
helping secure a brighter future for humanity and the planet.
・Supporting Humanitarian Assistance for Ukrainian Refugees
DIC has donated approximately $300,000 to help provide
humanitarian assistance for refugees from the current crisis in
8NUDLQH,QDGGLWLRQWRDGRQDWLRQWRWKH8QLWHG1DWLRQV+LJK&RPPLVVLRQHUIRU5HIXJHHV 81+&5 ²WKH815HIXJHH$JHQF\²
the Company set up a joint fund with Sun Chemical, with bothcompanies contributing approximately €100,000. This fund forwards
donations to various nonprofit organizations for the provision ofassistance and relief, including housing and gifts for children, toemployees of the DIC Group and customer companies, as well as
WRUHIXJHHVZKRKDYHÀHGWKHFRXQWU\○ Initiatives Led by the Central Research Laboratories

The Central Research Laboratories provides support for education
through a variety of initiatives. These include assisting with the$QQXDO0HHWLQJRQ6FLHQWL¿F5HVHDUFKE\+LJK6FKRROVZKLFKLV
VSRQVRUHGE\&KLED8QLYHUVLW\¶V6HFWLRQRI&ROODERUDWLRQZLWK+LJK
Schools and features research presentations from across Japan.
,Q¿VFDO\HDU¿YHUHVHDUFKHUVDWWHQGHGWKLVHYHQWOLVWHQLQJto a total of 493 presentations, taking part in Q&A sessions andotherwise encouraging research by participating high school
students, who aspire to careers in the sciences.
The Central Research Laboratories also advances efforts thatleverage DIC’s unique capabilities. These include lectures for high
VFKRROVWKDWKDYHHDUQHG6XSHU6FLHQFH+LJK6FKRRO GHVLJQDWLRQLQFOXGLQJ6HLVKLQ*DNXHQ+LJK6FKRROLQ,EDUDNL3UHIHFWXUHDQG
6DNXUD6HQLRU+LJK6FKRRODQG)XQDEDVKL+LJK6FKRROLQ&KLEDPrefecture, as well as fashion design workshops for students from
6DNXUD+LJDVKL+LJK6FKRROLQ&KLED3UHIHFWXUH
* ³6XSHU6FLHQFH+LJK6FKRRO´LVDGHVLJQDWLRQDZDUGHGE\-DSDQ¶V0LQLVWU\RI(GXFDWLRQ
Culture, Sports, Science and Technology to high schools that implement curricula focused
RQWKHVFLHQFHVDQGPDWKHPDWLFVWKDWJRHVEH\RQGWKH0LQLVWU\¶VRI¿FLDOJXLGHOLQHVZLWKthe aim of fostering the next generation of talented engineers and scientists.

○ Matching Gift Program

DIC has a matching gift program in Japan whereby it matches thetotal amount collected through an annual year-end fundraising drive
spearheaded by its employees’ union. Funds raised through the2022 drive and matching gift program were donated to 19 children’s
homes and facilities providing support for disabled individuals.

・Highlights of Fiscal Year 2022
(GXFDWLRQDOVXSSRUWDFWLYLWLHVLQ¿VFDO\HDULQFOXGHGKROGLQJZRUNVKRSVDW6DNXUD+LJDVKL+LJK6FKRRODQG6XSHU6FLHQFH+LJK
6FKRROOHFWXUHVDW6HLVKLQ*DNXHQ+LJK6FKRRODPRQJRWKHUVThe Central Research Laboratories also continued to assist Super
6FLHQFH+LJK6FKRRO±GHVLJQDWHGVFKRROVWKURXJKSDUWLFLSDWLRQE\executive-level employees in the steering committees of Sakura
6HQLRU+LJK6FKRRODQG)XQDEDVKL+LJK6FKRROOther initiatives in fiscal year 2022 included once again hosting
WKH &KLED 3UHIHFWXUDO 'UHDP &KDOOHQJH +DQGV2Q 6FKRRO Dpopular program for elementary school children organized by
the prefecture’s Board of Education. The Central ResearchLaboratories also participated in the “Now I Get It! Technologiesof the Future” exhibition, held to coincide with schools’ summer
vacation with the aim of nurturing children’s curiosity about scienceand technology and encouraging the next generation’s interest in
work in the manufacturing sector.
○ Initiatives Led by the Kashima Plant

The Kashima Plant, in Ibaraki Prefecture, has accepted trainees in
FRRSHUDWLRQZLWK,EDUDNL+DVDNL+LJK6FKRRO¶VLQWHUQVKLSSURJUDP²
GXEEHG WKH +DNR 'XHO 6\VWHP²VLQFH  ,Q ILVFDO \HDU2022, three students from the school’s industrial chemistry andinformation sciences programs participated in lectures on productknowledge, safety and compliance, and in practical training at theplant, over a period of three months.
○ Social Contribution Activities at DIC Group Companies in

Other Countries and Territories

・New Sun Chemical Colombia Bottom-Up Environmental Project
Sun Chemical Colombia S.A.S. launched a zero-waste project todrastically reduce the volume of waste generated by its production
activities in a bid to lower its impact on the environment. A bottomup initiative, this project was inspired by suggestions put forth by

DIC Report 2023

46

Communication with Stakeholders

Promoting Disclosure and Communication

SDGs Goal 17

Basic Approach to Disclosure and Communication
The DIC Group places a priority on communication with its stakeholders worldwide, as outlined in Article 8 of its Policy on
Corporate Governance.

Article 8 (Ensuring Appropriate Information Disclosure and Transparency)
The Company shall ensure transparency and fairness; and in order to gain the correct understanding and trustfrom stakeholders, shall timely and appropriately disclose information relating to matters such as the DIC Group’s
management philosophy, management policies, business plans, financial condition and sustainability activities.
Guided by this policy, the DIC Group promotes communication with stakeholders through television advertisements, participationin exhibitions, websites and events. By communicating effectively with stakeholders, the Group strives to ensure an adequate
understanding of stakeholder expectations and to reflect such expectations in its business activities. The Group is also
expanding its awareness of the concept of stakeholder engagement, a key requirement under ISO 26000.

Basic
approach

Ties withcustomers

Ties withshareholders
and investors

Ties withbusiness
partners

Ties with society

Ties with
employees

Build trusting relationships. By
incorporating the demands ofcustomers, seek to develop
products that enhancecustomer satisfaction.

Ensure appropriate
disclosure and build
trusting relationships withshareholders and investors,
encouraging both toevaluate DIC as an attractive
investment.

Promote socially responsible
procurement across the
supply chain and build solid
relationships that will facilitatesustainable procurement.

Operate in harmony withthe community and build
positive relationships withlocal residents that will
underpin the long-termsustainability of operations.

Provide workplaces that are
conducive to job satisfactionand enable all employeesWRIXO¿OOWKHLUSRWHQWLDO2YHU
the long term, achieve true
diversity.

Deepen understanding
through effective publicity,
advertising and othercommunications efforts.

● DIC Report● News releases● Television advertisements● Corporate brand film
● Websites● DIC Report● News releases● Television advertisements● &RUSRUDWHEUDQG¿OP● Websites● Press conferences● DIC Report● DIC Report● News releases● Television advertisements● &RUSRUDWHEUDQG¿OP● Websites● DIC Report● News releases● Television● DIC Report● News releases● Television● Quarterly results● DIC Group Sustainable Procurement●Yuka Shoken Hokokusho● DIC Group Green Procurement● Product pamphlets● Digital marketing● Corporate profile DVDs(¿QDQFLDOGLVFORVXUHGRFXPHQWUHTXLUHG
of listed companies in Japan)● Timely disclosure● Notice of Convocation ofCommunications
tools

the Annual General Meetingof Shareholders● Shareholder newsletters● Sales activities● Participation in

exhibitions● Lectures on the SDGs
for customers

Opportunities forcommunication

announcements● Annual General Meetingof Shareholders

advertisements● Corporate brand film

Ties with the media

advertisements● Websites● Press conferences

Guidelines● Site reports

Guidelines● Supplier sustainable procurement

questionnaires● Feedback sheets● &RQÀLFW0LQHUDOV5HSRUWLQJ

Template● On-site inquiries● Results presentations● IR conferences● IR meetings● ,QGLYLGXDOLQYHVWRUEULH¿QJV● Production facility tours● Participation in projects involving

collaboration among industrial
concerns, government bodies andacademic institutions● Participation in community events● Environmental monitoring● Kawamura Memorial DIC
Museum of Art● Plant Bon Odori

DIC Report 2023

47

● Better Tomorrows(in-house digital
newsletter)● Intranet● DIC Pocket Book LQKRXVH*URXSGDWD¿OH ● Global linkage● The DIC Way Handbook● DIC Vision 2030 presentationmaterials/presentations● Branding questionnaire● The DIC Way Vision andCore Values Awards● Teams Plaza employee
communication website● WSR 2020 activities● Labor–management councils● Results presentations

for employees● DIC Group Code of BusinessConduct presentations● Sustainability presentations● DIC Family Day● Plant tours for employee families● The DIC Way digital presentations● DIC Vision 2030 presentations● Publication of news

releases on global website● Interviews with journalists● Newspapers● Economic publications● Industry publications● Web media● Social networking services

Communication with Stakeholders

The Group is also diversifying the digital marketing channels it uses toreach customers worldwide to include, among others, private websites
and various third-party media.

■ Ties with Customers
The DIC Group works to strengthen communication with its customers,
placing a priority on gaining their understanding of its efforts andinitiatives, in line with the basic policy of the DIC Vision 2030 longterm management plan. Principal avenues of communication include
exhibitions and events, support for business partners, workshops,
websites and social media.

,Q¿VFDO\HDUWKH',&*URXSZLOOIXUWKHUH[SDQGGLJLWDOFRQWHQW
and strengthen its efforts to communicate with customers using varied
approaches to disseminating information with the aim of improving
customer value. Use of digital tools will also be increased to invigorate
Groupwide collaboration in the area of marketing.

○ Exhibitions

In fiscal year 2022, the spread of COVID-19 once again encouraged
the DIC Group to use an online or hybrid format for certain exhibitions,presentations or other events.
Japan● The DIC Group chose a hybrid format for its participation in the 2022
Tokyo International Packaging Exhibition (TOKYO PACK 2022), held in
October, combing a physical booth with a virtual exhibition.
● The Group took part in both Sustainable Material Expo (SUSMA)
shows in fiscal year 2022 (April and December), which focused on
product solutions that contribute to the resolution of issues such as
marine plastics and to decarbonization and the achievement of carbon
neutrality via an on-site booth and a virtual platform.
● At the Fine Chemicals Japan 2022 next-generation chemical materials
exhibition in April, the Group exhibited new functional materials that help
FRQVHUYHHQHUJ\DQGUHGXFHWKHZHLJKWRI¿QLVKHGSURGXFWVLQWURGXFLQJ
its efforts to create new businesses to chemical manufacturers fromaround the world.
Other Countries and Territories● Sun Chemical, which oversees DIC Group operations in the Americas
and Europe, participated in a variety of exhibitions during the period.
Notable among these was In-Cosmetics Global 2022, held in Marchin Paris, France, where it displayed organic pigments for cosmetics,
shining a spotlight on sustainable solutions featuring natural materials.
● In Asia, DIC Asia Pacific and DIC South Asia Private Limited
collaborated to exhibit a wide range of high-grade resins for coatings,
applications for which are diverse, at PAINT INDIA 2022, one of India’s
largest exhibitions of coatings and related materials, which took placein May in Mumbai.

■ Ties with Shareholders and Investors
The DIC Group has established a policy for promoting constructive
dialogue with shareholders and investors and strives to ensure
fair, appropriate and timely disclosure, as well as to encouragecommunication, while also seeking to raise awareness of its
sustainability initiatives. Views and concerns expressed are shared withmanagement and incorporated into operations as appropriate.
,Q¿VFDO\HDUWKH',&*URXSHPSKDVL]HGHQKDQFLQJLQYHVWRUV¶
understanding of the DIC Vision 2030 long-term management plan,
which was announced in February. Two small group meetings were
held to provide details on the plan with institutional investors andsecurities analysts. Meetings were held online with institutional
investors in North America, Europe, the PRC and the Asia–Pacificregion to encourage greater familiarity with the Group’s management
strategies. Active efforts to advance communication with investors
around the world also included 105 one-on-one meetings conductedin person or by telephone. Oher channels used to explain DIC Vision
2030 included holding online seminars, appearing on information
programs for investors on television, and placing articles in investors’magazines.
The DIC Group also continued to expand its provision of information
via its global website to investors with whom direct communication
was not possible, publishing video recordings of its financial resultspresentations and holding online seminars for individual investors.
,QGLFDWLYHRIWKHKLJKPDUNVJLYHQWKHVHHIIRUWVLQ¿VFDO\HDU',&
won a grand prize in Daiwa Investor Relations Co. Ltd.’s Internet IR
Awards, the third consecutive year it has earned this honor.

○ Websites

To bolster communication with customers, the DIC Group expanded
WKHFRQWHQWRILWVJOREDOZHEVLWHDVZHOODVLWVRI¿FLDO35&DQG$VLD±
Pacific region websites. Improvements to the websites were also
made to ensure that information shared by the Group is conveyed in
an appropriate manner. Group company Sun Chemical also upgraded
its website, improving links to information about products it sells in
global markets with the goal of bolstering customer satisfaction. The
Group also made use of social media, including Twitter, LinkedIn and,QVWDJUDPDVDWRROWRDWWUDFWPRUHZHEVLWHWUDI¿F
○ Digital Marketing

The DIC Group actively promotes digital marketing activities. In addition
to expanding product information on Group websites, steps were
WDNHQLQ¿VFDO\HDUWRGLVVHPLQDWHLQIRUPDWLRQRQWRSLFVVXFKDV
sustainable solutions, basic technologies and packaging.

DIC Report 2023

48

Communication with Stakeholders■ Ties with Society
In addition to the business community, the DIC Group strives to communicate
effectively with ordinary citizens, including students.
○ Kawamura Memorial DIC Museum of Art

From mid-March through mid-September 2022, the Kawamura Memorial DIC
Museum of Art held “Color Fields,” an extended exhibition originally scheduled
for 2020 to commemorate the museum’s 30th anniversary and planned as
SDUWLFXODUO\¿WWLQJJLYHQWKH',&*URXS¶VKLVWRU\DVDSURYLGHURIFRORU7KLVZDV-DSDQ¶V¿UVWHYHUH[KLELWLRQRI&RORU)LHOGSDLQWLQJVDQGDWWUDFWHGDFRQVLGHUDEOH
interest. This was followed in October by “Affections: Objects of Man Ray,”
which provided visitors with an opportunity to better understand Man Ray, one of
the artists featured in the museum’s collection.

○ Communication with Local Communities

In line with the DIC Group’s “Color & Comfort” brand slogan, technical divisions
and site employees spearhead a variety of initiatives aimed at sparking
children’s interest in science and enabling them to experience the joy of making
new discoveries.

,Q¿VFDO\HDUWKHPXVHXPZDVDEOHWRRIIHUUHJXODUO\VFKHGXOHGJXLGHG
tours while taking precautions to prevent the spread of COVID-19, as well as
its “mite!” online interactive art-viewing experience. The museum will continue
working to expand its role as a community-based facility.

Based on the theme of “Color & Comfort,” the DIC Group unveiled an updated
visiting science lab program consisting of three components—observing themechanism of color printing, extracting natural pigments from DIC Spirulina
and conducting experiments to verify the water repellency and oil resistance of
HYDRECT water-based coating varnish—as part of Tohoku University’s Science
Campus project.

○ Calendar

For its original calendar for 2023—titled “Calendar 2023 The Museum andLight”—DIC focused on the relationship between architecture and light at the
Kawamura Memorial DIC Museum of Art. Photographs taken in line with thistheme capture a structure conceived with a priority on creating a delicatelybalanced internal space, with exhibit areas that match the nature and sizeof works in the museum’s collection and lighting design chosen to ensure a
comfortable viewing experience, as well as on the harmony the architecture
DFKLHYHVZLWKYDULRXVVRXUFHVRIOLJKWLQFOXGLQJQDWXUDOOLJKWUHÀHFWHGLQWHUQDO
lighting and light coming through window glass. Going forward, the Company
will continue to plan, design and produce attractive original calendars that arehighly rated by stakeholders.

As host of the Chiba Prefectural Dream Challenge Hands-On School programfor children, the DIC Group invited participants to take part in scientificexperiments at the Central Research Laboratories, observing color changes andreporting their impressions by, among others, including the experience in theirsummer free study projects.(Japanese schoolchildren are commonly assigned
such projects over summer vacation.) Adequate measures were taken toprevent the spread of COVID-19.

■ Monetary Contributions and Other Expenditures
The DIC Group conducts its operations while maintaining relationships with abroad range of industry associations and other external organizations.

○ Corporate Advertising

The DIC Group continued to promote active branding initiatives in line with its“Color & Comfort” brand slogan. DIC produced a new installment of its brandadvertisement for television featuring popular actress Riho Yoshioka that
introduces DIC products that help address social imperatives to communicate
the Group’s commitment to being an organization that pursues sustainable
prosperity for people and for the earth. Capitalizing on the increasing
GLYHUVL¿FDWLRQRIPHGLD',&DOVRIRFXVHGHIIRUWVRQGLJLWDODGYHUWLVLQJ○ Monetary Contributions

The DIC Group’s monetary contributions in fiscal year 2022 amounted toapproximately ¥101 million. This represents a significant increase from the
SUHYLRXV¿VFDO\HDUDWWULEXWDEOHWRWKHSURYLVLRQRIDVVLVWDQFHIRUKXPDQLWDULDQ
support for Ukrainian refugees. Monetary contributions in Japan consisted of adesignated donation of around ¥12 million to support education and research
DQGDSSUR[LPDWHO\PLOOLRQWRVSHFL¿HGSXEOLFVHUYLFHSURPRWLRQFRUSRUDWLRQV
and for other social contribution–related purposes. The Group made nocontributions to political organizations during the period.

○ Online Presence

To enhance communication with ordinary citizens, the DIC Group updated
and enhanced the content of its PRC and Asia–Pacific region websites.
As noted in “Ties with Shareholders and Investors” above, the Group’s
websites continue to be evaluated highly by external organizations. The
Group also continues working to enhance the accessibility of its websites tostakeholders around the world.

○ Participation in Industry Organizations,QLWVFDSDFLW\DVDPDQXIDFWXUHURI¿QHFKHPLFDOVWKH',&*URXSSDUWLFLSDWHV
in a variety of activities as a member of key industry organizations, including
providing specialized information, conducting investigations and collecting
materials. In Japan, the Group is a member of organizations ranging from theJapan Chemical Industry Association (JCIA), the Keidanren (Japan Business
Federation), the Japan Dyestuff and Industrial Chemicals Association (JDICA),
the Japan Thermosetting Plastics Industry Association (JTPIA) and the Japan
Printing Ink Makers Association (JPIMA) to the Global Compact Network
Japan (GCNJ). In fiscal year 2022, expenditures for participation in various
external activities (membership dues) across the global DIC Group amounted toapproximately ¥161 million.

Enhancing and expanding ESG information is another focus of the
DIC Group’s website improvement efforts. In addition to explaining its
sustainability policy in an easy-to-understand manner, the Company isincreasing its disclosure of related quantitative data in response to requests
from a variety of stakeholders.

DIC Report 2023

49

Communication with Stakeholders■ Ties with Employees■ External Assessments

The DIC Group continues to promote a variety of initiatives to facilitate
active communication with Group employees around the world,
including establishing an internal Group chat function, a Group intranet
and other new digital channels, thereby enhancing its communications
infrastructure.

,Q¿VFDO\HDU',&ZDVVHOHFWHGIRULQFOXVLRQLQWKH'RZ-RQHV
Sustainability Indices Asia Pacific Index, a leading benchmark forsustainability initiatives in the Asia–Pacific region and part of the
Dow Jones Sustainability Indices (DJSI), a global family of indices forsocially responsible investment (SRI). This was the eighth straight yearthat DIC was selected for inclusion.

○ Communication Across the Global DIC Group,Q¿VFDO\HDUWKH',&*URXSODXQFKHG7KH',&:D\9LVLRQDQG
Core Values Awards with the objective of fostering awareness of The
DIC Way, which represents the Group’s fundamental management
philosophy, among employees worldwide. Awards were conferred
twice in the inaugural year, with gold, silver and bronze award
winners selected from among hundreds of nominations received
from Group employees recommending outstanding colleagues who
embody the Group’s core values, helping encourage solidarity acrossthe DIC Group family. The Group also completed and began using
globally standardized materials templates, a key point of contact withstakeholders around the world, thereby helping ensure a consistentimage is conveyed to stakeholders worldwide.

DIC was also selected as a constituent of the MSCI Japan ESG
Select Leaders Index—an ESG investment index of leading Japanesecompanies—and the MSCI Japan Empowering Women Index (WIN),
both developed by U.S.-based MSCI Inc., for the sixth consecutive
year, and the FTSE4Good Index and the FTSE Blossom Japan Index
for the fifth consecutive year. In fiscal year 2022, the Company was
FKRVHQIRUWKH¿UVWWLPHIRULQFOXVLRQLQ)76(5XVVHOO¶V)76(%ORVVRP
Japan Sector Relative Index. In addition, DIC was selected for inclusionin the S&P/JPX Carbon Efficient Index, which weights constituentsusing disclosure of environmental information and carbon efficiency(carbon emissions per unit of revenue) within an industry group,
earning the second-highest “2” rating for the latter factor.

○ In-House Newsletter

The DIC Group publishes an in-house digital newsletter entitled Better
Tomorrows, which is compiled and published by teams in Japan,
the PRC and the Asia–Pacific region. Better Tomorrows provides
information that assists employees in advancing DIC Vision 2030 andhighlights Group technologies, products, businesses, employees andcorporate culture, serving as a key tool for improving communication
with each other.

In fiscal year 2022, DIC was thus once again included in the five
ESG investment indices targeting Japanese equities used by Japan’s
Government Pension Investment Fund (GPIF), which seeks stock
indices comprising companies with outstanding ESG performances(MSCI Japan ESG Select Leaders Index, MSCI WIN, FTSE Blossom
Japan Index, FTSE Blossom Japan Sector Relative Index and S&P/
-3;&DUERQ(I¿FLHQW,QGH[ ',&¶V(6*SHUIRUPDQFHDOVRUHVXOWHGLQLW
once again being selected as one of 300 constituents of Sompo AssetManagement Co., Ltd.’s annually updated SOMPO Sustainability Index.

○ Ties with the MediaDIC is reinforcing its publicity activities as a means of communicatingwith its many stakeholders, including its customers, shareholders,investors and local communities. This reflects its conviction that
promoting active disclosure that facilitates objective media coverage
is vital to securing stakeholders’ understanding of the DIC Group andits operations, and to promoting a sense of unity among employees.
In fiscal year 2022, DIC put out news releases regarding businessacquisitions, new products and capital investments, operating results
and sustainability initiatives, among others. The Company also
disseminated information on its long-term vision, as articulated in
DIC Vision 2030, through interviews with members of the media andother means, encouraging understanding of its commitment to deliver
value that exceeds the provision of fine chemicals with the goal ofcontributing to sustainable prosperity.
Press conferences held
LQÀVFDO\HDU

Interviews withjournalists
LQÀVFDO\HDU

75

57',&UHSRUWVWRWKH&'3DJOREDOQRQSUR¿WRUJDQL]DWLRQWKDWZRUNVRQ
behalf of institutional investors to collect and analyze information on
corporate initiatives to address climate change and other environmental
issues. In fiscal year 2022, DIC earned a score of B (Management
Level) in the CDP program’s climate change and water security sectors.
For the sixth consecutive year, DIC and DIC Graphics earned
certification in the large enterprise category of the 2023 Health &Productivity Outstanding Entities Recognition Program (dubbed the“White 500”), which is organized by the Ministry of Economy, Trade andIndustry and Nippon Kenko Kaigi (“Japan Health Council”).
:LWKWKHDLPRIGULYLQJVXVWDLQDEOHJURZWKLQ¿VFDO\HDUWKH',&
Group continued to participate in the ESG, GC Internal Promotion,
Reporting and other United Nations Global Compact (UNGC) working
groups administered by the GCNJ.

DIC Report 2023

50

Communication with Stakeholders

DIC Report 2023

51

Environment, Safety and Health (ESH)

Toward the Achievement ofa Sustainable Society

SDGs
Goals 3, 6, 7, 12, 13,
14 and 15

Policies, Targets and Framework
Basic Approach
The DIC Group promotes a broad range of ESH initiatives through its Responsible Care program.

■ Initiatives to Date
As a global organization that manufactures and sells chemical
substances, the DIC Group promotes a broad range of ESH initiatives
through its Responsible Care program. Having established its
Principle and Policy for the Environment, Safety and Health in 1992,
in 1995 DIC pledged to implement the precepts of Responsible Care.
Since reaffirming its support for Responsible Care managementin January 2006 by signing the CEO’s Declaration of Support for
the Responsible Care Global Charter, the Company has promoted
constant improvements. Today, the Group manages its Responsible
Care program in a uniform manner using standardized codes, guided
by its Environment, Safety and Health Policy, and works to implement
initiatives that exceed regulatory requirements, in line with annual
Responsible Care activity plans, and to fully disclose the results thereof.

Note: R e s p o n s i b l e C a r e d e s c r i b e s
voluntary management initiatives
under taken by companies that
manufacture or otherwise handlechemical substances, in line withthe principles of autonomous action
and self-assessment, pledging
in their management policies toprotecting the environment andensuring health and safety acrossthe entire life cycle of products,from development to manufacturing,
distribution, use and end-of-life
disposal, as well as to disclosing
related information and promoting
improvements.

DIC is a signatory to the International Council of
Chemical Associations (ICCA)’s Responsible Care
Global Charter.

Environment, Safety and Health Policy
As a responsible corporate citizen and as a company that manufactures and sells chemical substances, DIC recognizes that care for the environment, safety
and health is fundamental to the management of the Company. DIC is committed to the concept of sustainable development in all aspects of its businesses andcontributes to the global environment, including biodiversity, by creating environmentally sound products and technologies.
❶ We take responsibility for the environmental, safety and health implications of products throughout their life cycles.
❷ We continuously set goals and targets for environmental, safety and health improvements.
❸ We comply strictly with laws, regulations and agreements relative to the environment, safety and health. For countries lacking such laws, weprioritize safe operations and protection of the environment.
❹ We systematically provide education and training on the environment, safety and health.
❺ :HSUHSDUHV\VWHPVDQGDXGLWLQWHUQDOO\WREHQH¿WWKHHQYLURQPHQWVDIHW\DQGKHDOWKWe disclose these policies internally and externally and ask that all DIC Group companies observe them. The abovementioned “safety” also
encompasses security and disaster prevention.

■ Responsible Care Codes

with local communities regarding ESH) and “management systems”(ensure the uniform administration of the first six codes). In linewith these codes, the Group applies the PDCA cycle and conducts
annual ESH audits and management reviews to evaluate initiatives.

The DIC Group manages its Responsible Care program inaccordance with seven codes:* “Occupational safety and health”(protection of the safety and health of employees), “disasterprevention” (prevention of fires, explosions and the discharge ofchemicals), “environmental protection” (continuous reduction ofchemical emissions and the discharge of waste), “safety in logistics”(reduction of chemical risks associated with the distribution ofchemicals), “chemical substance safety” (management of risks
associated with chemicals), “dialogue with society” (communication* The seven Responsible Care codes were developed by the Japan Responsible CareCouncil (JRCC), which is part of the JCIA, as a framework for Responsible Care
programs with the goal of helping achieve a society that supports efforts to address
ESH-related initiatives.

DIC Report 2023

52

ESH

❶ Occupational safety and health (protection of the safety and health of employees)

Page 56❷ 'LVDVWHUSUHYHQWLRQ SUHYHQWLRQRI¿UHVH[SORVLRQVDQGWKHGLVFKDUJHRIFKHPLFDOV 

Page 62❸ Environmental protection (continuous reduction of chemical emissions and the discharge of waste)

Page 63❹ Safety in logistics (reduction of chemical risks associated with the distribution of chemicals)

Page 75❺ Ensuring the safety of chemical substances (management of risks associated with chemicals)

Page 77❻ Engaging with society (communication with local communities regarding ESH)

Page 81❼ 0DQDJHPHQWV\VWHPV HQVXUHWKHXQLIRUPDGPLQLVWUDWLRQRIWKH¿UVWVL[FRGHV 

Page 82

Audits andreviews
conducted
bymanagement

Act

Check

Responsible Care
Initiatives
Improve

Do

Plan

Implement/
manageFormulateplans■ Message from the President

Sustainability Committee

DIC’s president prepares a message for employees for Environment
Month and National Safety Week.

Production
Management Unit

Technical
Management Unit

Responsible Care Department
Support for ESH audits■ Responsible Care Education

Production and R&D facilities

As a company that manufactures and sells chemical substances,
DIC incorporates education regarding the importance of Groupwide
Responsible Care efforts into training for new employees (both new
graduates and mid-career hires). Ongoing education is provided as
SDUWRIUDQNVSHFL¿FWUDLQLQJIRUQHZO\SURPRWHGHPSOR\HHV

Safety and Environment Group

Product division
Individuals in charge of
Responsible Care

Technical

Individuals in charge of
Responsible Care

Production

Product division

Product division

TargetIndividuals in charge of
Responsible Care

FormatNew graduates

Lectures + hands-on safety training

Mid-career hires

Lectures

Regular employees

LecturesManagement-level and newly promoted employees

Lectures

Newly appointed CEOs of Group companies

Lectures

Employees newly assigned to overseas posts

LecturesInterns from technical colleges

Lectures■ Deployment of Responsible Care Initiatives

at Group Companies
The Responsible Care Department provides wide-ranging support
to DIC Group companies worldwide, regardless of operating scale,with the goal of enhancing Responsible Care initiatives Groupwide.
Of particular note, the department assigns representatives to assist
regional headquarters overseeing Group operations in Greater China
and the Asia–Pacific region, as well as supports local initiatives tofoster human resources.

■ Framework for Promoting Responsible Care
The Sustainability Committee, which answers directly to the president
and CEO, is responsible for setting Responsible Care initiatives.
Currently chaired by the president and CEO, the committee includes
business group presidents, administrative unit heads, CEOs of regional
headquarters and members of the Audit & Supervisory Board. The
committee approves Groupwide sustainability targets and policies, aswell as deliberates and evaluates medium-term sustainability policies
and annual sustainability activity plans. The PDCA cycle is used toevaluate voluntary Responsible Care initiatives implemented by Group
companies, plants and R&D facilities in line with these policies andplans in collaboration with the Safety and Environment Group. The
Responsible Care Department provides support to ensure the smooth
progress of these initiatives and conducts audits to ensure complianceand improve safety and environmental performance.

❶ Initiatives in JapanThe DIC Group has 12 companies and 36 sites in Japan. Safety
and Environment groups have been established at each site, which
are overseen by the Responsible Care Department. DIC and DIC*UDSKLFVKROG*0FRQIHUHQFHVZKLFKDUHJDWKHULQJVRI(6+RI¿FHUV
from principal sites who have been appointed group managers, fourtimes a year. Other domestic Group companies participate in twiceannual Responsible Care conferences. These various conferences
facilitate the discussion of efforts to prevent accidents and disasters,
share information on environmental challenges and ensure common
awareness of Groupwide rules.

DIC Report 2023

53

ESH

TOPIC

DIC and DIC Graphics Establish Horizontal ESH Framework'XULQJDPHHWLQJZLWKPDQDJHPHQWLQ¿VFDO\HDU(6+RI¿FHUVSURSRVHGWKDW
steps be taken to strengthen communication among DIC Group sites in Japan. This
OHGWRWKHHVWDEOLVKPHQWRIDKRUL]RQWDOIUDPHZRUNOLQNLQJRI(6+RI¿FHUVIURPDOO
of these sites.

regarding such initiatives and regular online meetings to facilitate face-to-faceexchanges. In addition to continuing with current activities, we look forward to
FUHDWLQJFKDQFHVIRUVLWH(6+RI¿FHUVWRPHHWLQSHUVRQBefore this, information sharing among site ESH officers frequently tended to
GHWHULRUDWHZKHQHYHUDQ\RQHUHWLUHGRUZDVUHDVVLJQHG6LQFH¿VFDO\HDUZH
have seen opportunities for communication among sites decline even further as aresult of COVID-19. New people, in particular, have been unable to network. With
the aim of improving this situation, we set up a horizontal framework to encouragecross-site interaction, primarily through online activities. This began with the ideathat a horizontal line through the Group’s vertical corporate organization would makeit easier to share information with each other and bolster site ESH initiatives. To
encourage communication, we have introduced online chats for sharing concerns

Manager, Safety andEnvironment Group,
Komaki Plant

Kazuhito Ishida

Safety and Environment
Group, Gunma Plant

Hiroshi Noguchi❷ ,QLWLDWLYHVLQWKH$VLD²3DFLÀF5HJLRQ❸ Initiatives in Greater China

7KH',&*URXSKDVFRPSDQLHVDQGVLWHVDFURVVWKH$VLD±3DFL¿Fregion. DIC has installed ESH country heads (individuals in chargeof ESH initiatives) in 10 countries and territories in the region under
the supervision of a regional ESH director, who has been installed at
DIC Asia Pacific, the Group’s regional headquarters, in Singapore.
An annual conference and regular quarterly meetings involving the
Responsible Care Department in Tokyo, the regional ESH director andthe ESH country heads are held to ensure effective communication.
The Responsible Care Department has also dispatched an ESH
manager from corporate headquarters to provide on-site guidance.
&RXQWU\KHDGVKROGFRXQWU\DQGWHUULWRU\VSHFL¿FPHHWLQJVSHULRGLFDOO\to consider initiatives, targets and challenges.

In Greater China, the DIC Group has 16 companies and 17 sites.
DIC has installed a regional ESH director at DIC (China), the Group’s
regional headquarters, in Shanghai. The Company has also reinforced
its regional ESH framework by assigning ESH coordinators to oversee
efforts in the southern and eastern parts of the country. An annual
conference and regular teleconferences involving the Responsible
Care Department in Tokyo, the regional ESH manager and theESH coordinators are held to ensure effective communication. The
Responsible Care Department has also dispatched an ESH manager
from corporate headquarters to provide on-site guidance.
The fiscal year 2022 Greater China Annual ESH and Energy
Conservation Conference was held in November. As in the previous
WZR¿VFDO\HDUVWKHFRQIHUHQFHZDVKHOGRQOLQHEHFDXVHRI&29,'
Participants, which included site ESH officers, the regional ESH
manager, the director in charge of regional Group operations andResponsible Care Department staff, discussed ESH policies, targets
DQGFKDOOHQJHVIRU¿VFDO\HDU

The fiscal year 2022 edition of the DIC Asia–Pacific Region Annual
ESH Conference was held in November. Unlike in fiscal years 2020
and 2021, when the conference was held online due to COVID-19,
ESH country heads, site ESH officers, the regional ESH manager,
the director in charge of regional Group operations and Responsible
Care Department staff gathered in person in Indonesia. Participants
GLVFXVVHG(6+SROLFLHVWDUJHWVDQGFKDOOHQJHVIRU¿VFDO\HDU

❹ Initiatives in the Americas, Europe and Africa

The Sun Chemical Group oversees all Responsible Care initiatives by
DIC Group companies in the Americas, Europe and Africa. With theaim of ensuring the DIC Group’s ESH policy and its values are sharedby all, the Responsible Care Department in Tokyo holds periodic online
conferences and ESH manager meetings with local Responsible Care
staff. The Responsible Care initiatives of the Colors & Effects pigments
business, the acquisition of which was completed in July 2021, are also
overseen by the Sun Chemical Group.

)UDPHZRUNIRU3URPRWLQJ(6+LQWKH$VLD²3DFLÀF5HJLRQRegional ESH Director for Asia‒Paciﬁc region
Regional ESH Manager for Asia‒Paciﬁc region

DIC Asia Paciﬁc Pte Ltd

ESH
country head

ESH
country head

ESH
country head

ESH
country head

ESH
country head

India

Oceania
Australia
New
ZealandThailand

Malaysia

Indonesia

Philippines
VietnamSingapore
Sri Lanka
Pakistan

DIC Report 2023

54

ESH

VOICE

Thoughts on Daily Efforts to Ensure Safety

What does “safety” mean? At my previous company, it was endless classes, protective gear to change into before starting work, frontline risks tocomprehend, safety notices on the walls and written rules. At DIC, it is the education and training I attend, the protective gear I put on, the risks I
identify, the safety notices that I am consistently aware of and the rules that I observe without fail. These may sound pretty much the same on thesurface, but in fact the safety culture of the two companies is really very different.
From Companywide emergency drills to itemized emergency response plans, the monthly sharing of case studies and meticulous on-site work
SURFHVVHV',&¶VDSSURDFKUHÀHFWVWKHSHRSOH¿UVWSKLORVRSK\WKDWXQGHUVFRUHVLWVVDIHW\FXOWXUH$OODURXQGXVWKHUHDUHSURWHFWLYHJXDUGVRQVKDUSFRUQHUHGFRQWUROSDQHOVDQGÀXRUHVFHQWODEHOVRQVWDLUVWRSUHYHQWIDOOV(YHU\GD\DWRXUPRUQLQJPHHWLQJNH\SDVVDJHVIURPPrinciples
of Safe Conduct are read aloud. An effective safety culture is a result of the daily accumulation of experience and know-how. In this environment,
my mindset changed. I began to see safety not as something being forced on me, but rather something that I do of my own accord. This is thesentiment conveyed in DIC’s safety slogan, “Safety is one’s own responsibility.”
Qingdao DIC Finechemicals Co., Ltd.

Yu Hezhi

headquarters develop their own region-specific activity plans, while
individual Group companies, in line with the concept of management
by objectives (MBO), translate these plans into reality by promoting avariety of Responsible Care initiatives.

■ Annual Activity Plans
The DIC Group formulates an annual Responsible Care Activity Planand oversees Groupwide initiatives. Based on the Group’s annual
plan, which is prepared by the Responsible Care Department, regional■ The DIC Group’s Annual Responsible Care Activity Plan for Fiscal Year 2022
❶ Occupational safety and health・The DIC Group’s fundamental objective remains the achievement of accident-free workplaces. With this in mind, set regionaltargets for total recordable incident rate (TRIR)*1 in fiscal year 2022 and implement related initiatives.
・Encourage safety and health awareness among all employees.
❷ Disaster prevention
・Encourage the horizontal deployment of measures based on the lessons learned from past major accidents and take steps toprevent their recurrence.
・Conduct risk assessments with the aim of reducing process risks.
・With the aim of reducing process safety accidents, continue calculating such accidents in accordance with the International Councilof Chemical Associations (ICCA) guidelines.
❸ Environmental protection
・Maintain/lower the impact of production activities on air and wastewater quality.
・Reduce the generation of and maintain/increase the resource recycling rate*2 for industrial waste.
・Continue to assess water risks affecting production activities. Consider approaches to managing targets for the reduction of water
consumption, among others.
・Implement initiatives aimed at improving environmental compliance.
❹ Safety in logistics
・Continue to provide information pertinent to the safe transport of chemicals.
❺ Chemical substance safety
・Promote the creation of a new global system for managing chemical substance information.
・Further expand deployment of the Wercs and Atrion at DIC Group companies overseas.
・Increase understanding of domestic and overseas laws and regulations governing chemical substances and prevent violations
thereof by further enhancing in-house legal and regulatory training, including at overseas Group companies.
❻ Dialogue with society
・Continue to publicize the results of Responsible Care activities.
❼ Management systems
・Make use of the ESH data collection system.
・Reinforce relations between corporate headquarters and regional headquarters to prevent accidents/disasters in Greater China
and the Asia–Pacific region.
・Rebuild environment- and safety-related management systems.
・Promote environment- and safety-related education.
*1 TRIR is calculated as (Number of casualties due to occupational accidents resulting in workdays lost + Number of casualties due to occupational accidents not resulting in workdays lost) /Million work hours*2 Resource recycling rate is calculated as (Volume of industrial waste recycled (material recycling) + Waste heat recovered) / Volume of industrial waste generated

DIC Report 2023

55

ESH

Occupational Safety and Health/Disaster Prevention

Occupational Safety and Health
Goals and Achievements of Major Initiatives
Objectives of initiatives

Ensure occupational safety
and health.

Prevent disasters.

Evaluations are based on self-evaluations of current progress. Key: ★★★ = Excellent; ★★ = Satisfactory; ★ = Still needs work

Scope of target

Goals for fiscal year 2022

GlobalReduce TRIR.
Targets:
DIC Group in Japan:
PRC:
Asia–Pacific region:
Americas and Europe:(Global DIC Group:

Global• Continue working to prevent
major accidents.
• Further promote the calculationof process safety accidents.

Achievements infiscal year 2022
DIC Group in Japan:
PRC:
Asia–Pacific region:
Americas and Europe:(Global DIC Group:

2.40
1.00
1.10
8.00
4.36)

Evaluation

2.23
0.79
1.21
6.33
4.00)

• Number of major accidents: 0• Process safety accident frequency
rate: 0.055

Goals for fiscal year 2023★★★

Reduce TRIR.
Targets:
DIC Group in Japan:
PRC:
Asia–Pacific region:
Americas and Europe:(Global DIC Group:★★★

• Maintain 0 major accidents.
• Achieve process safety accident
frequency rate of 0.110 (maintain at¿VFDO\HDUOHYHO 

2.10
1.00
1.00
8.00
4.65)

■ Policies

Basic Approach
Viewing the prioritization of operational safety as a core management tenet, the DIC Group works tirelessly to prevent
occupational accidents and disasters, as well as to bolster occupational health and safety levels.
local residents. With the aim of preventing such accidents, the Groupencourages Group companies to earn the International Organizationfor Standardization’s Occupational Safety and Health Management
6\VWHP 26+06 FHUWL¿FDWLRQDQGEDVHGRQWKHUHVXOWVRIVWULQJHQWULVN
assessments, prioritizes reducing risks in the workplace by promoting
adherence to Principles of Safe Conduct and training highly perceptive
safety personnel. The Group also strives to enhance safety throughefforts to reinforce its safety infrastructure and create a safety-oriented
corporate culture.

The DIC Group recognizes operational safety both as fundamental
to its businesses and the core component of Responsible Care. The
Group thus promotes active occupational safety and health, security
and disaster prevention measures to foster a “Safety First” philosophy
Groupwide and on the part of every employee. Because its operations
span diverse fields, the Group has numerous processes that use
hazardous and toxic materials, as well as rotating devices, not all ofwhich involve chemical reactions. Any accident using such materials or
GHYLFHVKDVWKHSRWHQWLDOWRVLJQL¿FDQWO\LPSDFWVRFLHW\LQJHQHUDODQG
damage the health of Group and/or partner company employees andWorkplace safety poster featuring DIC’s president and CEO in three languages for use at sites in Japan and overseas

DIC Report 2023

56

ESH

as well as to manage the progress of related efforts. Elsewhere, theResponsible Care Department and individual regional headquarters
ZRUNWRJHWKHUWRVHWUHJLRQDOWDUJHWVZKLOHVLWH(6+RI¿FHUVFRQGXFWVLWH
risk assessments, analyze accidents and promote remedial measures
to ensure the continuous improvement of occupational safety and healthoverseas. (For more information, please see “Policies, Targets andFramework” on page 52.)

■ Framework for Promotion
8QGHUWKHVXSHUYLVLRQRIWKH6XVWDLQDELOLW\&RPPLWWHHFKDLU ',&¶V
president and CEO), the Safety and Environment groups of DIC Group
companies, plants and R&D facilities, and the Responsible Care
Department collaborate to promote a variety of initiatives. In Japan, theResponsible Care Department meets regularly with site ESH officers
WRFRQ¿UPWKHVWDWXVRISULRULW\LVVXHVDQGWKHDFKLHYHPHQWRIWDUJHWVManagement Spearheads the Promotion of Safety Initiatives

TOPIC

Believing that it is important for management to take the lead in promoting the idea of “Safety First,” thePDQDJLQJH[HFXWLYHRI¿FHUZKRVHUYHVDVJHQHUDOPDQDJHURIWKH3URGXFWLRQ0DQDJHPHQW8QLWSUHSDUHV
a monthly memo for distribution to all sites, including those of Group companies, as part of a campaign
dubbed “Learning from the Past and Implementing Practical Solutions.” Each memo presents a recent
DFWXDORFFXSDWLRQDODFFLGHQWRULQWURGXFHVRFFXSDWLRQDODFFLGHQWVWKDWDUHOLNHO\WRRFFXUDWVSHFL¿FWLPHV²
HJKHDWVWURNHLQVXPPHURUVWDWLFHOHFWULFLW\±UHODWHGDFFLGHQWVLQZLQWHU²ZLWKDQDQDO\VLVRIFDXVHVDQG
suggestions for countermeasures. This memo is also read out once a month at a morning assembly at eachsite to promote awareness among employees and encourage a common understanding.

,Q¿VFDO\HDUWKH75,5IRUWKHJOREDO',&*URXSZDVEHORZ
its 4.36 target. None of the occupational accidents at global Group sites
resulted in fatalities. A total of 89 injuries resulting in workdays lost werereported, while injuries not resulting in workdays lost numbered 83.
Looking ahead, the Group will continue working to reduce occupational
accidents by promoting the sharing of information on and analyzing
the causes of accidents and disasters, conducting risk assessments,
promoting adherence to Principles of Safe Conduct and providing
occupational safety and health–related education and training. Some ofthese efforts are described in this report.

■ Principal Initiatives in Fiscal Year 2022
❶ Global DIC GroupThe DIC Group promotes a variety of initiatives around the world
with the aim of eliminating occupational accidents. Of particular note,
WKH*URXSVHWVWDUJHWVIRUWRWDOUHFRUGDEOHLQFLGHQWUDWH 75,5 ²
calculated as the number of casualties (i.e., fatalities and injuries) due tooccupational accidents, both those resulting in workdays lost and those
QRWUHVXOWLQJLQZRUNGD\VORVWSHUPLOOLRQZRUNKRXUV²IRUWKH',&*URXS
in Japan, the PRC, the Asia–Pacific region, and the Americas andEurope. In all regions, the number of employees used to calculate TRIR
is the number of direct regular, temporary and part-time employees.
Employees of on-site and outside contractors are not included.

200

6.00

150

4.50

100

3.00

50

1.50

TRIR

Casualties due to occupational accidents

TRIR and Casualties Due to Occupational Accidents (FY2019–2022)

0.00

0
2018

2019

2020

2021

2022

GlobalFatalities

Occupational accidents resulting in workdays lost

Occupational accidents not resulting in workdays lost

DIC Report 2023

57

TRIR

ESH

DIC Group (Japan)❷ DIC Group in Japan,Q¿VFDO\HDUWKH',&*URXSLQ-DSDQDFKLHYHGD75,5RI
EHWWHUWKDQLWVWDUJHWRIDQGDVLJQL¿FDQWLPSURYHPHQWIURPLQ
WKHSUHYLRXV¿VFDO\HDU1RRFFXSDWLRQDODFFLGHQWVUHVXOWLQJLQIDWDOLWLHV
were reported. There were four occupational accidents resulting in
workdays lost and 16 occupational accidents not resulting in workdays
lost. These numbers are broken down in the table below. At 0.45, thefrequency rate of occupational accidents was lower than the averagefor the manufacturing industry in Japan and for member companies of
the Japan Chemical Industry Association (JCIA). The severity rate was
0.015, which is also lower than the average for manufacturers in Japanand in line with that of JCIA member companies.

Occupational Accident Frequency Rate

Casualties

Illness/ill health

Total

Fatalities

0

0

0

Injuries resulting in
workdays lost

3

1

4

Injuries not resulting
in workdays lost

15

1

16

Total

18

2

20

Occupational Accident Severity Rate
0.15

2.50

2.00
0.10
1.50
0.05
1.00

0.00

0.50

18

0.00

18

19

DIC
JCIA

20

21

22 (FY)DIC

DIC Group (Global)

Note: The frequency rate expresses the frequency of accidents resulting in workdays lost in a
fiscal year, calculated as the number of deaths or injuries per million work hours.
Number of deaths or injuries due to occupational accidents
Total work hours

JCIA

20

21

22 (FY)

Overall manufacturing industry in Japan

Note: The severity rate expresses the number of workdays lost due to occupational accidents per
1,000 work hours.

Overall manufacturing industry in Japan

Frequency rate ＝

19

Severity rate ＝Total number of workdays lost due to occupational accidents
Total work hours

× 1,000

A severity rate of 0.10 means 100 workdays lost in one year at a site with 500 employees.

× 1,000,000

A frequency rate of 1.00 means one occupational accident resulting in workdays lost in one
year at a site with 500 employees.

❸ DIC Group in Other Countries and Territories

occupational accidents resulting in fatalities were reported. There
were 81 injuries due to occupational accidents resulting in workdays
lost and 65 injuries due to occupational accidents not resulting in
workdays lost. (For more information, please see page 83.)

The TRIR for the DIC Group in the PRC was 0.79, while that for theAmericas and Europe (the Sun Chemical Group) was 6.33, both in
OLQHZLWKUHJLRQDOWDUJHWV7KH',&*URXSLQWKH$VLD±3DFL¿FUHJLRQ
reported a TRIR of 1.21, falling short of the regional target. No

TOPIC

DIC Fine Chemicals’ Dahej Plant Achieves 4,500 Consecutive Days of Safe Operation

On March 24, 2022, DIC Fine Chemicals Private Limited’s plant in Dahej celebrated 4,500 consecutive days ofsafe operation, that is, with no injuries resulting in workdays lost. “Safety is the cornerstone of the DIC Group,”
VDLGWKHFRPSDQ\¶VVDIHW\DQGHQYLURQPHQWDORI¿FHUUHJDUGLQJWKLVDFFRPSOLVKPHQW³7KH'DKHM3ODQWKDV
established standards for the implementation of important safety procedures We see the well-being of ouremployees as our utmost priority. There are no words to express my appreciation to the team for their tirelessefforts to keep everyone safe.” The Dahej Plant was opened in 2010 as a production facility for sheetfed inks.

Employees at the Dahej Plant celebrate

DIC Report 2023

58

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■ Infrastructure for Preventing Occupational

to analyze the causes thereof and implement appropriate countermeasures.
The department in charge of safety and site Safety and Environment groups
hold regular meetings to dig deeper into the causes of accidents and debate theeffectiveness of countermeasures. Findings are deployed horizontally to Groupsites and companies with the aim of preventing recurrence, as well as sharedwith DIC Group companies worldwide. DIC has compiled such information
to create Accident Case Studies and Occupational Accident Case Study
databases, which are used in safety education for Group companies in Japan.

Accidents❶ Monthly Occupational Safety and Health Data
The DIC Group conducts its diverse businesses in accordance with a wide
range of national and regional legal systems, working conditions and practices.
However, to raise the level of occupational safety and health of the entire
Group, it is crucial to establish common standards and benchmarks and to alignregional initiatives. The DIC Group promotes the sharing of information related
to occupational safety and health across the global Group by aggregating
UHJLRQDOVWDWLVWLFDOGDWDRQDPRQWKO\EDVLV6SHFL¿FDOO\ORFDOGDWDLVJDWKHUHG
E\',& &KLQD IRUWKH35&',&$VLD3DFL¿FIRUWKH$VLD±3DFL¿FUHJLRQDQG
Sun Chemical for the Americas and Europe, which is then collated and analyzed
by the Responsible Care Department. This makes it possible to objectively
compare and evaluate the operational safety of individual Group companies,
establish precise targets for individual countries and regions, and formulate
SURJUDPVWRDFKLHYHLPSURYHPHQWV,Q¿VFDO\HDUWKH*URXSLQWURGXFHG
the DIC ESH Data Collection System (DECS), a cloud-based system forrecording data. (For more information, please see page 82.)

❺ Promoting E-Learning–Based Safety and ESH Training at

Production Facilities
To enhance its capabilities in the area of occupational safety and health, and indisaster prevention, the DIC Group recognizes the importance of ensuring that allof its employees gain a broad understanding of chemical substances, production
SURFHVVHVDQGSHUWLQHQWODZVDQGUHJXODWLRQV,Q¿VFDO\HDUWKH*URXS
introduced an e-learning program in Japan. Initially structured around laws andregulations pertinent to the operational safety of production facilities, including
Japan’s Fire Service Act, Air Pollution Control Law and High Pressure Gas Safety
Act, the e-learning program’s focus was later expanded to include static electricity
as a non-regulatory component, with the appropriateness of the program’s
WUDLQLQJPDWHULDOVYHUL¿HGIURPWKHSHUVSHFWLYHRI5HVSRQVLEOH&DUH'HSDUWPHQWVSHFLDOLVWVVLWH(6+RI¿FHUVDQGSURGXFWLRQGHSDUWPHQWV(PSOR\HHVDUHDEOH
to take up to 16 classes. In fiscal year 2022, the Group introduced an online
occupational safety and health education service from Tokyo-based LaKeel, Inc.,
WKDWFHQWHUVRQWKHGLVWULEXWLRQRIVKRUW¿OPVRQWKHVXEMHFWStatistical Occupational Safety and Health Data
・Number of employees
・Number of casualties due to occupational accidents resulting in workdays lostand not resulting in workdays lost・Number of workdays lost・TRIR・Total work hours
・1XPEHURIDFFLGHQWVLQYROYLQJ¿UHVH[SORVLRQV・Occupational accident frequency rate

❷ Principles of Safe Conduct

8VLQJUHVRXUFHVVXFKDVFDVHVWXGLHVRIDFFLGHQWVDQGGLVDVWHUVLQWKHSDVWDIC has created rules and codes of conduct to ensure operational safety, which
it has compiled as a guidebook titled Principles of Safe ConductWKH¿IWKHGLWLRQ
of which was published in fiscal year 2019. English- and Chinese-language
versions have also been prepared for use by DIC Group companies in the Asia–
3DFL¿FUHJLRQDQG*UHDWHU&KLQD

Characters from
LaKeel’s online service❻ Accident and Disaster Calendar

In fiscal year 2022, the DIC Group compiled information on past
accidents and disasters into case studies in the form of a monthly
calendar that is visible to all employees on the first page of the DIC
Group portal site. Information posted includes date of occurrence, site,
type of event (i.e., heatstroke, chemical injury or other) and impact (i.e.,
resulted in workdays lost or did not result in workdays lost). This allowed
users to identify incidents of concern to them and view detailed datasummarizing conditions surrounding occurrence and the effectivenessof countermeasures. Displaying data for all accidents and disasters
on a monthly basis also sheds light on trends. Employees looking at
the calendar on any given day are able to learn about an accident ordisaster that occurred on that day in the past, bolstering awareness ofsafety and disaster prevention across the Group.

❸ Conducting Risk Assessments

By understanding potential risks in production processes, facilities and devices,and the hazards of chemical substances, the DIC Group systematically prepares
initiatives to prevent accidents and occupational injuries. In Japan, the Grouphas formulated guidelines for conducting risk assessments when deploying
QHZRUPRGL¿HGHTXLSPHQWRUFKDQJLQJSURGXFWLRQSURFHVVHVWRLGHQWLI\DQG
evaluate the impact on employees and the community from design through tooperation. With the aim of reducing risks associated with chemical substances,
VLQFH¿VFDO\HDUWKH*URXSKDVSURPRWHGWKHFUHDWLRQRIDIUDPHZRUNWR
facilitate the methodical implementation of risk assessments in line with thepolicy set by the Ministry of Health, Labour and Welfare. Of particular note,in fiscal year 2016 the Group formulated proprietary assessment guidelines,
including for assessment procedures, and is evaluating hazards associated withand the toxicity of chemicals set forth in Japan’s Poisonous and Deleterious
Substances Control Act, as well as considering measures to lower related risks,
including revising handling methods and upgrading facilities.
❹ Analyzing Accidents and Disasters and Providing Information

in a Timely MannerIn the event of an accident or disaster at a DIC Group site, the site in question
and the corporate headquarters’ department in charge of safety work together

Clicking on color-coded incidents
reveals detailed event data

DIC Report 2023

59

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TOPIC

DIC Graphics’ Gunma and Tokyo Plants Conduct Fall Prevention Training

DIC Graphics’ Gunma Plant, in collaboration with several affiliated andassociated companies, launched the Fall Prevention Project, which held
four sessions in fiscal year 2022. The first session, a fall prevention
seminar, featured a physiotherapist who introduced exercises to relieve
lower back pain that can be done while lying down or sitting. This wasfollowed by a seminar focusing on risk assessment self-checks (physicalfitness checks) and gauging awareness levels. Individuals displaying a
VLJQL¿FDQWJDSEHWZHHQSK\VLFDO¿WQHVVDQGDZDUHQHVVZHUHMXGJHGDV
being at particular risk of falls and were urged to exercise caution. Third
was a presentation by a nutritionist on dietary changes that can help
prevent locomotive syndrome, a condition involving decreased mobility
due to disorders of the musculoskeletal system. For the fourth session,
members of the Hitachi Transport System Track and Field Club wereinvited to give a seminar about functional training,* which centered oncorrect walking posture, how to maintain one’s center of gravity andawareness, and how to use one’s shoulder blades and hamstrings, among
others, as well as the importance of all of these factors. Also on offer wasa program developed by Hitachi Transport System, Ltd., directed at theprevention of falls caused by tripping and stumbling.

The Tokyo Plant also conducted fall prevention training. Here, too,
instructors were members of the Hitachi Transport System Track and Field
Club, a renowned corporate club that is active in competitions acrossJapan, including the New Year Ekiden, one of Japan’s preeminent longdistance running multistage relay races. The Club’s manager, Kenji Beppu,taught participants how to walk correctly, including how to improve their
posture, position their shoulders and raise their legs. Demonstrations wereJLYHQE\.HQWD8HGDDFXUUHQWPHPEHURIWKH&OXEZKRHDUQHGSUDLVHIRU
his excellent posture and lithe movements. Going forward, the DIC Groupwill continue to plan programs like this that help improve employee health.

Fall prevention training

for new employees. The Chiba, Sakai, Hokuriku, Tokyo, Kashima andother plants have also established their own hands-on safety training
equipment to further ingrain a safety-conscious corporate culture. In¿VFDO\HDUWKH*URXSGRZQVL]HGVL[W\SHVRIKDQGVRQWUDLQLQJ
equipment for lending to individual sites as part of a mobile training
initiative. The Responsible Care Department trains employees atindividual sites to serve as hands-on training instructors and has
established an instructor licensing system.

■ Hands-On Safety Training
7KH',&*URXS¶VIXOOÀHGJHGKDQGVRQVDIHW\WUDLQLQJSURJUDPEHJDQin 2012 with the introduction of a mobile initiative using equipment
WUDQVSRUWHGIURPVLWHWRVLWHXVLQJDWRQQHWUXFN6LQFH¿VFDO\HDU
2013, the Group has installed permanent training equipment at six
sites in Japan, as well as expanded deployment globally, including
LQWKH35&DQGWKH$VLD±3DFL¿FUHJLRQ7KLVSURJUDPKDVKHOSHGWR
almost halve the occupational accident frequency rate at Group sites
LQ-DSDQ%\VLPXODWLQJFRPPRQSURGXFWLRQÀRRUDFFLGHQWV²LQFOXGLQJ
those involving entanglement in rotating devices, falls from high places
DQGLQFLVHGZRXQGVFDXVHGE\FXWWLQJHTXLSPHQW²EDVHGRQDFWXDO
previous examples, the Group’s hands-on safety training seeks to
reduce employees’ willingness to take risks and foster their ability
to recognize danger. In doing so, the Group seeks to transform themindset of employees by encouraging them to think and act on theirown to protect themselves and each other from latent risks.

Training for new employees at the Saitama Plant

Hands-on safety training simulating an accident
involving a fall

❷ DIC Group Companies in Other Countries and Territories

In fiscal years 2020 and 2021, COVID-19 forced the DIC Groupto cancel hands-on safety training. However, the Group used theperiod to review and revise equipment and procedures to facilitate
implementation even during the pandemic. Ordinary in-person training
UHVXPHGLQ¿VFDO\HDU

DIC Group companies in other countries and territories are also
deploying hands-on safety training. In Greater China, hands-on safety
training equipment has been installed at Nantong DIC Color Co.,
Ltd., DIC Graphics (Guangzhou) Ltd. and Changzhou Huari New
Materials Co., Ltd., in the PRC and DIC Graphics Chia Lung Corp.
in Taiwan. In the Asia–Pacific region, equipment has been installedat DIC Compounds (Malaysia) Sdn. Bhd., PT DIC ASTRA Chemicals
in Indonesia, Thailand’s Siam Chemical Industry Co., Ltd., and DIC
India Limited’s Noida Plant. These companies provide hands-on safety
training for employees across their respective regions, as well as
training for instructors.

❶ DIC Group Companies in Japan

In fiscal year 2014, the DIC Group opened the Saitama Hands-On
Safety Center, a training facility that fosters skilled safety personnel
by incorporating hands-on safety training in the new employee andrank-specific training programs. In the same year, DIC and DIC
Graphics began including hands-on safety training and Kiken Yochi
Training (KYT) (“hazard prediction training”) in the training curricula

DIC Report 2023

60

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TOPIC

DIC Asia Pacific Holds Safety Day for Regional DIC Group Companies

7KH8QLWHG1DWLRQV¶DQGWKH,QWHUQDWLRQDO/DERXU2UJDQL]DWLRQ ,/2 ¶V:RUOG'D\IRU6DIHW\and Health at Work, part of its campaign to promote occupational safety and health, is
FHOHEUDWHGDQQXDOO\RQ$SULO,QOLQHZLWKWKLVLQLWLDWLYH',&$VLD3DFL¿FKHOGLWV¿UVWDQQXDO
6DIHW\'D\RQ0D\7KHWKHPHRI6DIHW\'D\LQ¿VFDO\HDUZDV³&$5(IRU
6DIHW\´ZLWKWKH¿UVWZRUGEHLQJDQDFURQ\PGUDZQIURPWKUHHNH\LGHDV
・Communication between colleagues and learning from each other・Awareness of environmental and safety issues
・Responsibility for actions and/or in actions
DIC Asia Pacific has set a target for its ESH program, encapsulated in the phrase “DIC
(6+²*RDO=HUR´ZKLFKORFDO*URXSHPSOR\HHVDUHXQLWHGLQZRUNLQJWRDFKLHYH6DIHW\'D\DFWLYLWLHVDW*URXSFRPSDQLHVDFURVVWKH$VLD±3DFL¿FUHJLRQFHQWHUHGRQD6DIHW\

Day town hall meeting, which included video messages from the managing director who
VHUYHVDVJHQHUDOPDQDJHURIWKH3URGXFWLRQ0DQDJHPHQW8QLWDQGWKHPDQDJLQJGLUHFWRU
RI',&$VLD3DFL¿FDQG6DIHW\'D\HYHQWVDQGDFWLYLWLHVZKLFKLQFOXGHGJDPHVTXL]]HV
competitions, an awards ceremony and performances devised by the individual company.

Safety Day 2022

personnel in charge of safety at plants belonging to DIC and
DIC Graphics created Safe Corporate Climate Cultivation
working groups, which regularly meet to discuss and exchange
proposals regarding safety policies and measures.

■ Efforts to Foster a Safety-Conscious

Corporate Culture❶ Safe Corporate Climate Cultivation Working Groups

In line with its “Safety First” philosophy, the DIC Group works tofoster a safety-conscious corporate culture. In fiscal year 2011,
Fiscal Year

Working Group Initiatives

2012

Working groups presented recommendations on safety policies and produced warning stickers to enhance awareness of workplace hazards.

2013

Working groups prepared safety posters featuring the president and CEO and started reading out key passages from Principles of Safe Conduct in workplaces with the aim of making
the practices therein routine.

2014

Working groups prepared an illustrated version of Principles of Safe Conduct for reading out in workplaces.

2015

Working groups edited Principles of Safe Conduct into a tear-off calendar version for workplace reading circles, which was distributed to sites. The calendar version was also translated
into English and Chinese.

2016

Working groups in the PRC began reading out key passages from Principles of Safe Conduct to foster a culture of safety.

2017

Working groups updated Principles of Safe Conduct.

2018:RUNLQJJURXSVSXEOLVKHGWKH¿IWKHGLWLRQRIPrinciples of Safe Conduct.

2019:RUNLQJJURXSVFRPPHQFHGSURGXFWLRQRIDYHUVLRQRIWKH¿IWKHGLWLRQRIPrinciples of Safe Conduct for workplace reading circles.

2020

7KHSXEOLFDWLRQRIDYHUVLRQRIWKH¿IWKHGLWLRQRIPrinciples of Safe Conduct for workplace reading circles was scheduled, but was postponed until 2021 as a result of COVID-19.

2021

6LWHPHHWLQJVZHUHKHOGDWSURGXFWLRQIDFLOLWLHVZLWKWKHSUHVLGHQWDQGYLFHSUHVHQWRI',&DQGWKHJHQHUDOPDQDJHURIWKH3URGXFWLRQ0DQDJHPHQW8QLWYLVLWLQJHDFKVLWHWRPHHWZLWKIURQWOLQHHPSOR\HHV$YHUVLRQRIWKH¿IWKHGLWLRQRIPrinciples of Safe Conduct for workplace reading circles was published.

2022

Manual for protective equipment was revised.

A tear-off calendar version of Principles of Safe Conduct for workplace reading circles (available in Japanese,
English and Chinese)

Reading out passages from Principles of Safe Conduct at the Komaki Plant❷ DIC Safety Pledge Day

DIC has declared September 6 “DIC Safety Pledge Day,” an annual
occasion for all of the DIC Group employees to pledge their commitment
to ensuring safe operations and not repeating past serious accidents anddisasters. On this day, each employee makes their pledge by writing apersonal declaration on a special card.

2022 safety declaration card

DIC Report 2023

61

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TOPIC

DIC Participates in National Industrial Safety and Health Convention

The general manager of DIC’s Responsible Care Department took the stage as a panelist at National Industrial Safety
and Health Convention 2022, which took place in Fukuoka, Japan, in November. The event, which focused on legal andregulatory changes in the realm of occupational health and safety made in 2022, featured panelists from government,
DFDGHPLDDQGLQGXVWU\QDPHO\WKH0LQLVWU\RI+HDOWK/DERXUDQG:HOIDUHWKH8QLYHUVLW\RI2FFXSDWLRQDODQG
Environmental Health, Japan; the Japan Industrial Safety & Health Association; and DIC, who discussed challenges
faced by companies in responding to legal revisions. Attendance at the event was high, with many attracted by the factthat it shone a spotlight on diverse related corporate initiatives. Participants could also take part from satellite facilities in
RWKHUSDUWVRIWKHFRXQWU\$VDPDQXIDFWXUHURI¿QHFKHPLFDOVWKDWKDQGOHVDEURDGUDQJHRIFKHPLFDOVXEVWDQFHV',&
presented past efforts to effectively manage chemical substances and comply with amended laws.

Disaster Prevention■ Policies

Basic Approach
In addition to establishing a safety management system to prevent major accidents, the DIC Group implements prompt,
effective countermeasures in the event an accident occurs.
$Q\¿UHH[SORVLRQRUOHDNRIDKD]DUGRXVVXEVWDQFHIURPDFKHPLFDOV
plant could have a tremendous impact on local residents and the rest of
the community and damage the health of employees, including those of
our partner companies. As well as operating and maintaining its facilities
in line with pertinent laws and regulations, the DIC Group regularly
conducts emergency drills and has earthquake and other response
measures in place in the event a major accident occurs.

Fiscal year Fiscal year Fiscal year Fiscal year Fiscal year
2018
2019
2020
2021
2022
Number of ICCA process
safety accidents

10

Process safety accident
0.175
frequency rate

■ Framework for Promotion

6

4

7

3

0.110 0.073 0.128 0.055❷ Risk Assessments at Chemicals Production Facilities

7KH',&*URXS¶VSURGXFWLRQIDFLOLWLHVKDYHDQDUUD\RIDSSOLFDWLRQVSHFL¿Fequipment, ranging from units where chemical reactions are conducted
to machine presses and other processing equipment. In 2013, theGroup formulated the DIC Process Risk Management (PRM) Guidelines,
which it uses to conduct systematic risk assessments at individual sites.
These guidelines outline timetables and implementation frameworks forassessing risks associated with chemical substances handled, production
processes, production formulas, machinery and work practices with theaim of comprehensively identifying and steadily reducing risks associatedwith R&D processes. Since fiscal year 2020, the Group has also usedKD]DUGDQGRSHUDELOLW\ +$=23 VWXGLHVGHYHORSHGWRDVVHVVWKHULVNRIDFFLGHQWVVXFKDVOHDNV¿UHVRUH[SORVLRQVDWFKHPLFDOVSURGXFWLRQIDFLOLWLHV6SHFLILFDOO\WKH*URXSGHSOR\V+$=23VWXGLHVWRDVVHVV
risks at facilities that have chemical reaction equipment, including the
Yokkaichi, Chiba, Kashima and Hokuriku plants.
❸ Third-Party Assessments by the Safety Competency
Enhancement Center
In 2013, DIC introduced an assessment system as a means of objectively
evaluating and enhancing its safety competency.* This system wasdeveloped by the Japan Society for Safety Engineering (JSSE), together
with chemicals industry engineers, as a common industry benchmark
and is currently used by all companies in Japan that are members of the
Safety Competency Enhancement Center. Assessments were conducted

8QGHUWKHVXSHUYLVLRQRIWKH6XVWDLQDELOLW\&RPPLWWHHFKDLU ',&¶V
president and CEO), the Safety and Environment groups of DIC Group
companies, plants and R&D facilities collaborate with the Responsible
Care Department to promote a variety of initiatives. The Responsible Care
Department holds meetings regularly with site Safety and EnvironmentJURXSVWRH[FKDQJHLQIRUPDWLRQDVZHOODVWRFRQ¿UPWKHVWDWXVRISULRULW\
issues and the achievement of targets, and to manage the progress ofrelated efforts. (For more information, please see “Policies, Targets andFramework” on page 52.)

■ Principal Initiatives in Fiscal Year 2022
❶ Process Safety Accidents

The International Council of Chemical Associations (ICCA) formulated
criteria for chemical process safety accidents that require reporting infiscal year 2017. Since fiscal year 2018, the DIC Group has reported
process safety accidents for the Group in Japan in line with theseVWDQGDUGV,Q¿VFDO\HDUWKH*URXSUHSRUWHGWKUHHSURFHVVVDIHW\DFFLGHQWV7KHSURFHVVVDIHW\DFFLGHQWIUHTXHQF\UDWH²WKHQXPEHU
RIVXFKDFFLGHQWVSHUZRUNKRXUV²ZDV%HJLQQLQJLQ
fiscal year 2023, the Group will set targets based on results for theimmediately preceding three years and implement measures to ensure
their achievement.

DIC Report 2023

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DWDOO',&3ODQWVEHJLQQLQJZLWKWKH.DVKLPD3ODQWLQ¿VFDO\HDUZKLFKZDVIROORZHGE\WKH<RNNDLFKLDQGWKH6DLWDPDSODQWVLQ¿VFDO\HDUWKH.RPDNL3ODQWLQ¿VFDO\HDUWKH&KLEDDQG7DWHED\DVKLplants in fiscal year 2019 and the Hokuriku Plant in fiscal year 2020.
These facilities have used assessment results to promote further
improvements. The Yokkaichi Plant, for example, subsequently launchedD+$=23VWXG\±EDVHGULVNDVVHVVPHQW

❹ Emergency Response Drills

In addition to daily security patrols and periodic equipment checks, the
DIC Group conducts regular emergency response drills based on business
continuity plans (BCPs), at production sites in Japan and overseas.

In December 2019, the Safety Competency Enhancement Center
provided DIC’s president and CEO with an overall report on the results ofassessments conducted at six production facilities, facilitating the sharingof understanding regarding safety and disaster-related issues across the
management team.

Comprehensive disaster drill at the Sakai Plant,a designated special disaster protection area

Comprehensive disaster drill at the Tokyo Plant* The assessment system encompasses questions about safety infrastructure (technicalconsiderations) and culture of safety (operation and management of organizational culture).

Environmental Protection■ Policies

Basic Approach
The DIC Group seeks to contribute to protection of the global environment by improving its own environmental performance,
as well as by complying with pertinent laws and regulations.

illustration of the environmental impact of the Group’s operating
activities in Japan and in other countries and territories. The chart
below shows environmental impact for two key items (total energy
consumption and total water consumption) and three output items(emissions into the air, emissions into water and emissions into soil)in three categories: CO2 emissions, total wastewater discharged
DQGLQGXVWULDOZDVWHGLVSRVHGRIDVODQG¿OO 'DWDIRUWKH',&*URXS
in Japan also includes emissions of targeted substances into theair, water and soil of NOx and SOx, as well as COD in wastewater.)
Beginning in fiscal year 2022, data for the DIC Group in othercountries and territories includes that for the Colors & Effects
pigments business, which joined the DIC Group in July 2021.

Environmental protection is among the most important of corporate
sustainability activities. The DIC Group’s efforts focus on a number ofareas, including addressing climate change, preventing environmental
pollution, managing industrial waste (responding to a circular economy),
managing water resources and biodiversity. As a manufacturer of¿QHFKHPLFDOVZLWKRSHUDWLRQVDURXQGWKHZRUOGWKH*URXSSURPRWHV
environmental protection with a global perspective.

■ Groupwide Environmental Performance

Production
volume2,328,000
tonnes（+18％）

Total energy used

14,569,000 GJ+39

OUTPUTDIC Group(Global)

INPUT

7KH',&*URXSTXDQWL¿HVWKHHQYLURQPHQWDOLQSXWV FRQVXPSWLRQ
of energy and other resources) and outputs (emissions into theenvironment) of its operating activities, and uses its findings toformulate far-reaching and efficient strategies for reducing its
environmental footprint. The chart below is a comprehensive

Emissions into the air
CO2 emissions

NOx emissions

770,000 +41% 172
tonnes from fiscal year 2021

Emissions of substances targeted under PRTRs

from fiscal% year 2021

200

Note: Renewable energy is not included in the above figure.

-16 %SOx emissions

tonnes from fiscal year 2021

Emissions into water

Fresh water
withdrawn

Total wastewater discharged

51,036,000

54,608,000 ㎥+57%
m3 from fiscal year 2021

COD in-9 %wastewater 854 tonnes from fiscal year 2021

fiscal
+51% fromyear 2021

Emissions of substancestargeted under PRTRs

33

DIC Report 2023

63

-3 %

tonnes from fiscal year 2021

fiscalyear 2021-8 % fromtonnes13

fiscalyear 2021+51% fromtonnesEmissions into soil
Industrial waste disposedof as landfill

17,214+16 %tonnes from fiscal year 2021

Emissions of substancestargeted under PRTRs

0

tonnesProduction
volumeTotal energy consumption

4,028,000 GJ-4862,000
tonnesOUTPUTDIC Group(Japan)

INPUT

ESH

tonnes200

1,465,000
tonnes

（+37％）%
from fiscal year 2021

13

tonnesIndustrial waste disposedof as landfill

±0

173

COD in-9 %wastewater 854 tonnes from fiscal year 2021

-3

Aquatic emissions of targeted substances(551 substances and%one substance group)
tonnes from fiscal year 2021

562,000 +63
tonnesFresh water
withdrawn

Total wastewater
discharged%
from fiscal year 2021%

from fiscal year 2021

24,901,000 +284
m3

from fiscal year 2021

0

tonnesEmissions into soil
Industrial waste
disposed of as landfill

17,041

Emissions into water

26,957,000 ㎥ +212

-13%

tonnesEmissions of substancestargeted under Japan’s PRTR

Emissions into the air
CO2 emissions

fiscalyear 2021+51% fromEmissions into soil%
m3 from fiscal year 2021

33

fiscalyear 2021-8 % fromtonnesSOx emissions-16 %Total wastewater discharged

26,135,000

OUTPUT

INPUT

10,540,000 GJ +68

172

Emissions into waterfrom fiscal
year 2021

Total energy consumption

NOx emissions

tonnes from fiscal year 2021

27,651,000 ㎥±0%+3%
from fiscal year 2021

Atmospheric emissions of targeted substances(551 substances and one substance group)from fiscal% year 2021

Fresh water
withdrawn

Production
volumeCO2 emissions

208,000

Note: Renewable energy is not included in the above figure.

（-1％）

DIC Group(Overseas)

Emissions into the air%from fiscal year 2021

tonnes+16 %the fiscal year 2021

Note: A PRTR is a scheme for assessing, aggregating and disseminating data on the source of hazardous chemicals, amounts released into the environment andamounts transferred off-site from industrial establishments via waste products.

DIC Report 2023

64

ESH

Preventing Environmental Pollution
Goals and Achievements of Major Initiatives
Objective of initiatives

Scope of target

Reduce emissions of VOCs into
the air.

Japan

Evaluations are based on self-evaluations of current progress. Key: ★★★ = Excellent; ★★ = Satisfactory; ★ = Still needs work

Goal for fiscal year 2022

Achievement infiscal year 2022

DIC Group (Japan): 325 tonnes(maintain at essentially level withfiscal year 2021; down 30% fromfiscal year 2000)

DIC Group (Japan): 200
tonnes

Evaluation

Goal for fiscal year 2023★★★

DIC Group (Japan): 280 tonnes(maintain at a level down 50%
from fiscal year 2000)■ Policies and Organization

Basic Approach
The DIC Group works to grasp the environmental impact of its operating activities and promotes systematic measures toreduce its environmental footprint. The Group also advances efforts aimed at preventing environmental pollution.
Since chemicals companies handle a considerably greater volume and morediverse range of chemical substances than companies in other industries,
they must be extremely vigilant to prevent discharges of substances into
the environment. Against this backdrop, the DIC Group works to grasp theenvironmental impact of its operating activities and promotes systematic efforts
to reduce its environmental footprint. The Group also advances efforts aimed
at preventing environmental pollution. In Japan, the Group has worked since¿VFDO\HDUWRUHGXFHHPLVVLRQVLQWRWKHDLUZDWHUDQGVRLORIVXEVWDQFHVGHVLJQDWHGLQSHUWLQHQWODZVDQGUHJXODWLRQV²LQFOXGLQJWKH$FWRQ&RQ¿UPDWLRQ
HWFRI5HOHDVH$PRXQWVRI6SHFL¿F&KHPLFDO6XEVWDQFHVLQWKH(QYLURQPHQW
and Promotion of Improvements in the Management Thereof, the Soil
Contamination Countermeasures Act, the PRTR Law, the Ozone Layer Protection
Law, the Act on Rational Use and Proper Management of Fluorocarbons andthe Law Concerning Special Measures for Promotion of Proper Treatment of
PCB Wastes—and of substances targeted for management under a voluntary
scheme created by the JCIA.*■ Principal Initiatives in Fiscal Year 2022
❶ Reducing Emissions of VOCs

The DIC Group in Japan succeeded in achieving its voluntary target for reducing
HPLVVLRQVRI92&VLQWRWKHDLUIRU¿VFDO\HDU²IURPWKH¿VFDO\HDUOHYHO²LQ¿VFDO\HDU7KH*URXSKDVVLQFHUDLVHGWKLVWDUJHWWRDUHGXFWLRQIURPWKH¿VFDO\HDUOHYHO,Q¿VFDO\HDU*URXSFRPSDQLHVin Japan reported total emissions of VOCs of 200 tonnes, a decline of 16% from¿VFDO\HDU7KHSULQFLSDOUHDVRQEHKLQGWKLVZDVDGHFUHDVHLQSURGXFWVWKDWDUHUHVSRQVLEOHIRUVLJQL¿FDQWHPLVVLRQVRI92&VIURPWKHSURGXFWPL[',&
Group companies in Greater China and the Asia–Pacific region continued tocarefully monitor their emissions. In the PRC, in particular, the Group is updating
equipment and stepping up emissions management practices in response to thetightening of pertinent local regulations.

* The JCIA is a general incorporated association. As one of Japan’s major industry organizations, the JCIA isa member of the ICCA and pursues the healthy development of the chemicals industry together with otherchemical–industrial organizations around the world.

Emissions of VOCs (Targeted Chemical Substances) into the Air(551 targeted substances, including those designated by Japan's PRTR*1, and one substance group*2)（Tonnes）
1,000

366

16

17

18

200

371

15

239

385

14

327

382

541

354

466

561

500

*1 A PRTR is a scheme for assessing, aggregating
and disseminating data on the source of hazardous
chemicals, amounts released into the environment
and amounts transfer red of f-site from industrial
establishments via waste products.

21

22

0

00

13

19

20

DIC Group (Japan) (FY2000 = DIC)

In fiscal year 2022, the DIC Group in Japan monitored 462 class
1 chemical substances designated by the PRTR and 89 PRTRdesignated substances (other than class 1) and one substance group(chain hydrocarbons with up to 4–8 carbon atoms). During the period,
Group companies in Japan used and/or produced a combined total of
126 of these substances in amounts exceeding 1.0 tonne.

DIC Report 2023

65

*2 The “551 substances and one substance group” comprises
462 class 1 chemical substances designated by Japan’s
PRTR and 89 PRTR-designated substances (other thanclass 1) and one substance group (chain hydrocarbons withup to 4–8 carbon atoms) targeted for study by the JCIA.
(FY)

ESH

Number of Targeted Chemical
Substances Used and/or Produced
in Japan in Amounts Exceeding
1.0 Tonne in Fiscal Year 2022

Environmental Emissions of VOCs (Targeted
Chemical Substances) (551 Substances,
Including Those Designated by Japan’s PRTR,
and One Substance Group) in Japan in Fiscal
Year 2022

126

Emissions
into the environment

Ethyl acetate

80 tonnes

Toluene30 tonnes

Emissions into the air

200 tonnes

Emissions into water

33 tonnes

Methyl ethyl ketone

22 tonnes

Emissions into soil

0 tonnes

N-methylpyrrolidone

16 tonnes

Propyl alcohol

13 tonnes

Total

234 tonnes

factors behind this result included an increase in production volume
and changes in the product mix. The Group will continue working to
reduce COD by promoting the effective management of water quality.

❷ Reducing SOx, NOx and COD

Taking fiscal year 1990 as the base year, the DIC Group in Japan
has taken steps to reduce SOx and NOx emissions from boilers. The
Group has also worked to reduce COD, an indicator of environmental
impact, in wastewater, particularly by installing biomass boilers and
PRGLI\LQJSURGXFWLRQSURFHVVHV,Q¿VFDO\HDUHPLVVLRQVRI62[by the Group in Japan amounted to 13 tonnes, a decline of more thanIURPWKH¿VFDO\HDUOHYHOZKLOHHPLVVLRQVRI12[ZHUH
WRQQHVGRZQIURP¿VFDO\HDU,QFRQWUDVWWKHGRPHVWLF',&*URXS¶V&2'ZDVWRQQHVORZHUWKDQLQWKHSUHYLRXV¿VFDO\HDU
EXWVWLOOKLJKDQGXSIURP¿VFDO\HDU3ULQFLSDOFRQWULEXWLQJDIC Group companies in other countries and territories are also
switching from diesel to natural gas, and from diesel- and heavy oil–fired boilers to biomass boilers. To reduce COD, these companies
are promoting the reuse of water and the installment of environmentfriendly closed-loop recycling and wastewater treatment systems that
purify wastewater to a level that exceeds that mandated by local laws.

COD in JapanSOx and NOx Emissions in Japan(Tonnes)（Tonnes）

12

8

17

18

19

21

22

15

16

17

18

854

20

940

16

9

13

723

15

14

12

500

14

0

90

172

850

42

186

810

38

182

783

46

100

183

831

156

202
186

844

177

530

204
202 185

1,000

745

200

DIC Group (Japan)
Substance

DIC Group (Japan)

DIC Group (Japan)

300

Targeted Chemical Substances for Which Emissions
Exceeded 10.0 Tonnes in Fiscal Year 2022

(FY)

0
SOx emissions

DIC Group (Japan) (FY2000 = DIC)NOx emissions

DIC Group (Japan) (FY2000 = DIC)

❸ Complying with Regulations Governing Emissions of Dioxins

In Japan, the DIC Group monitors emissions of dioxins from facilities that
produce these byproducts, in accordance with the Act on Special Measures$JDLQVW'LR[LQV$WSUHVHQWWKH*URXSKDV¿YHVXFKIDFLOLWLHV LQ-DSDQHDFKRI
which has achieved reductions that surpass the standards set forth in the Act.

90

14

DIC

DIC Group (Japan) (FY2000 = DIC)

20

22 (FY)

21

Dioxin Concentrations in Waste Gas and Wastewater Emissions from
DIC Group Incinerators in Japan
Waste gasSite ,Q¿VFDO\HDU',&,QWHULRU&R/WGVKXWWHUHGRSHUDWLRQVDVDUHVXOWRIZKLFKWKHQXPEHURIGLR[LQ
HPLWWLQJ',&*URXSIDFLOLWLHVLQ-DSDQGHFOLQHGIURPVL[WR¿YH

Standard(ng-TEC/Nm3)

Emissions
reported inÀVFDO\HDU
(ng-TEC/Nm3)❹ Ensuring the Appropriate Collection and Storage of PCBs

DIC Group companies in Japan work to ensure the appropriate collection,
storage and management of equipment containing polychlorinatedbiphenyls (PCBs), including older-model transformers and capacitors, inaccordance with the Law Concerning Special Measures for Promotionof Proper Treatment of PCB Wastes. These companies also ensure that
equipment containing PCBs is disposed of in accordance with the practicesof the Japan Environmental Storage & Safety Corporation (JESCO).
The DIC Group in Japan expects to complete disposal of waste with
KLJKFRQFHQWUDWLRQVRI3&%VLQWKH¿UVWKDOIRI¿VFDO\HDU(IIRUWVWR
manage and dispose of low-concentration PCB waste will proceed apace.

19

Chiba Plant (DIC)*

5

0.07

WastewaterStandard(pg-TEC/l)Emissions reported
LQÀVFDO\HDU
(pg-TEC/l)

10

0.030

10

2.4

Hokuriku Plant (DIC)

50.00000

10

0.0047

Hokkaido Plant(DIC Kitanihon Polymer Co., Ltd.)

10

Dormant

NA‒

Tohoku Plant(DIC Kitanihon Polymer Co., Ltd.)

10

0.028

NA

‒

Harima Plant(SEIKO PMC CORPORATION)

10

0.011

NA

‒

DIC Report 2023

66

ESH

❺ Responding to Asbestos Risks

The DIC Group in Japan strives to respond to potential risks associated withasbestos during demolition or when retrofitting equipment, as outlined in the
Ordinance on the Prevention of Health Impairment due to Asbestos and therevised Air Pollution Control Law.
❻ Soil and Groundwater Pollution

In addition to complying strictly with the Soil Contamination Countermeasures
Act, the DIC Group in Japan implements soil and groundwater surveys andcountermeasures as necessary to assess related risks. In fiscal year 2021,
a voluntary survey conducted at a third site belonging to the Hokuriku Plant
resulted in the site being designated as an “Area which Requires Measures.”
3XUL¿FDWLRQPHDVXUHVDUHFXUUHQWO\EHLQJLPSOHPHQWHGLQOLQHZLWKWKH$FWDV
well as with pertinent regulations.

DIC Report 2023

67

ESH

Managing Industrial Waste
Goals and Achievements of Major Initiatives
Objectives of initiatives

Scope of target• Reduce industrial waste
disposed of as landfill (achieve“zero emissions”).
Japan• Reduce industrial waste
generated by production
facilities.

Promote recycling.

Japan

Evaluations are based on self-evaluations of current progress. Key: ★★★ = Excellent; ★★ = Satisfactory; ★ = Still needs work

Achievements infiscal year 2022

Goals for fiscal year 2022
• Industrial waste disposed of as
landfill
DIC Group (Japan): 200 tonnes(essentially level with fiscal year
2021; down 95% from fiscal year 2000)• Industrial waste generated byproduction facilities
DIC Group (Japan): 45,000 tonnes(essentially level with fiscal year 2021)• Industrial waste disposedof as landfill: 173 tonnes• Industrial waste generated
by production facilities:
41,422 tonnes

Resource recycling rate*
DIC Group (Japan): 90%

Resource recycling rate:
91%

Evaluation

★★★

★★★

★★★

Goals for fiscal year 2023
• Industrial waste disposed of as
landfill
DIC Group (Japan): 200 tonnes(down 95% from fiscal year 2000)• Industrial waste generated byproduction facilities
DIC Group (Japan): 45,000 tonnes(essentially level with fiscal year
2022)
Resource recycling rate
DIC Group (Japan): 80%* Resource recycling rate: (Volume of industrial waste recycled + Waste heat recovered) / Volume of industrial waste generated■ Policies and Organization

Basic Approach
To promote the realization of a circular economy, the DIC Group strives to use resources effectively, as well as to reduce theimpact of its disposal of industrial waste.
WRUHGXFHLWVGLVSRVDORILQGXVWULDOZDVWHDVODQG¿OODQGWRERRVWLWVUHVRXUFH
recycling rate by increasing recycling (material and chemical) and recovering
waste heat from incineration. To ensure strict compliance, the Group has
introduced a system for managing electronic manifests (e-manifests), thereby
ensuring traceability. The Group also conducts on-site checks to ensure thepractices of subcontracted waste disposal companies.

In seeking to promote the realization of a circular economy, the DIC Group is
stepping up efforts to encourage the reuse, reduction and recycling of industrial
waste. Of particular note, the Group is striving to minimize production losses by
increasing throughput yields. The Group also works to fully grasp and effectively
manage industrial waste at production facilities from generation through todischarge, intermediate treatment and final disposal as landfill, as well as
DIC’s Efforts to Drive the Realizationand Expansion of a Circular Economy

Design

DIC will continue to promote the realization andexpansion of a circular economy through its
businesses by monitoring developments frommedium- to long-term perspectives.

“5R”* technologies and development efforts
that advance the circular use of resources* Reuse, Reduce, Renew, Recycle, and Redesign

Scope 1 and 2
Reduction/recycling of waste (Zero emissions initiatives)

Customer

Production
Scope 3 Category 1
Increase procurement rate forrecycled raw materials andProcurement
bioderived raw materials

Sale

Scope 3 Category 12
Increase recycling rate
Reduce disposal of

Supplierused products

Recycling
Materials procured throughsustainable supply chains

Realization of chemical
and material recycling

Resource recycling governanceUse of digital infrastructure,Q¿VFDO\HDUWKH',&*URXSLQ-DSDQPHWLWVWDUJHWIRULQGXVWULDO
waste generated by Group production facilities in Japan, whichDPRXQWHGWRWRQQHVDGHFUHDVHRIIURP¿VFDO\HDU
thanks to robust initiatives at individual facilities. The Group also
RXWSDFHGLWVWDUJHWIRULQGXVWULDOZDVWHGLVSRVHGRIDVODQG¿OOE\*URXS
companies in Japan, which totaled 173 tonnes, down 13% from theprevious period, as a result of which it also achieved a decline in
LQGXVWULDOZDVWHGLVSRVHGRIDVODQG¿OO*RLQJIRUZDUGWKH*URXSZLOO
continue to reinforce its zero emissions initiatives. Group companies
also pressed ahead with efforts to ensure the appropriate disposal ofequipment containing PCBs and of unprocessed waste. The disposal of
XQSURFHVVHGZDVWHZDVFRPSOHWHGLQWKH¿UVWKDOIRI¿VFDO\HDU

■ Principal Initiatives in Fiscal Year 2022
❶ DIC Group in JapanThe DIC Group in Japan has long promoted zero emissions initiatives
with the aim of reducing the total volume of industrial waste disposed
RIRIIVLWHDVODQG¿OOE\IURPWKH¿VFDO\HDUOHYHODWDUJHWLWDFWXDOO\DFKLHYHGLQ¿VFDO\HDU7KH*URXSLVFXUUHQWO\ZRUNLQJWRPDLQWDLQWKHDQQXDOLQGXVWULDOZDVWHLWGLVSRVHVRIDVODQG¿OODWWKLV
level (200 tonnes). With efforts to shift toward a circular economy
intensifying in recent years, the Group is now also working to reduce
waste generated and waste discharged by Group production facilities
DVZHOODVWRFXUEZDVWHGLVSRVHGRIDVODQG¿OODQGKDVVHWDWDUJHWIRU
the former.

DIC Report 2023

68

ESH

,QGXVWULDO:DVWH'LVSRVHGRIDV/DQGÀOO
（Tonnes）

7,981

9,000

DIC Group(Japan)

173
4,326

02

03

tonnesFiscal year 2022

320

232

207

158

106

86

80

139

183

148

204

217

167

199

173

991

1,288

3,000

537

2,296

4,190

5,581

6,000

07

08

09

10

11

12

13

14

15

16

17

18

19

20

21

22（FY）

0

00

01

04

05

06

（Base year）

DIC Group (Japan) (FY2000 = DIC)

Breakdown of Waste Generated by Production Facilities in Japan in Fiscal Year 2022
Volume generated (tonnes)

Type of waste
Cinders
Sludge763
11,246

Waste oil

10,254

Waste acid

469
1,677
5,220

Waste alkali
Waste plastics
Scrap rubber

1
1,996

Scrap metal
Waste glass, concrete and ceramic

48
0

Slag
Debris7
21

Dust
Waste paper

Toxic waste (specially controlled industrial waste)

736
708
0
7
0
0
0
1
33,153
8,268

Total waste (toxic and nontoxic)

41,422

Wood chips
Fiber waste
Animal and plant residues
Unwanted animal solid matter
Livestock excreta
Animal carcasses
Industrial waste from products containing mercury
Total for nontoxic waste (ordinary industrial waste, etc.)

annually in Japan, it is expected that they will be considered by the
Act as businesses with high-level emissions. The two companies are
FXUUHQWO\FROOHFWLQJSHUWLQHQWGDWDIRU¿VFDO\HDUDQGZLOOGLVFORVH
this information in the DIC Report beginning in fiscal year 2023.
Other domestic Group companies will also disclose fiscal year 2022
emissions data. Looking ahead, the Group will continue striving to
reduce its generation and increase its recycling of waste plastics.

❷ Initiatives Related to Waste Plastics

The Act on Promotion of Resource Circulation for Plastics, which cameinto force in April 2022, obliges companies to make efforts to recycle
plastic resources throughout a product’s life cycle, from design throughWR¿QDOGLVSRVDO&RPSDQLHVUHVSRQVLEOHIRUJHQHUDWLQJZDVWHSODVWLFVVSHFL¿HGE\WKH$FWDUHWDNLQJVWHSVWRFXUWDLOWKHYROXPHWKH\JHQHUDWH
and to expand recycling into new plastic resources. As both DIC and
DIC Graphics each generate more than 250 tonnes of waste plastics

DIC Report 2023

69

ESH

treatment and disposal. In fiscal year 2016, the DIC Group in Japan
introduced GENESYS ECO, a comprehensive industrial waste management
system, for use with the e-Manifest system. Deployment of this system was
FRPSOHWHGDWDOO*URXSSURGXFWLRQVLWHVLQ¿VFDO\HDUDQDFKLHYHPHQW
that has helped to both save labor and ensure legal compliance.

❸ Deployment of a Comprehensive Industrial Waste

Management System
Japan’s e-Manifest system helps manage the movement of industrial
waste by facilitating the electronic transmission of manifest information and
WUDFNLQJWKHÀRZRIZDVWHIURPJHQHUDWLRQWKURXJKWUDQVSRUWLQWHUPHGLDWH

Comprehensive Industrial Waste Management System
Groupwide management ofwaste by typeManagement in accordancewith specific rules

System provider

DIC Group in Japan
Generators（JWnet）
Disposers

Corporate headquarters
Substances of value

Sites

Industrial waste

General waste

Sites

Groupwide
management of information
Management of paper manifests and e-manifests

Management of permits and contracts❹ DIC Group in Other Countries and Territories❺ Generation and Disposal of Industrial Waste by the Global

In addition to ensuring that disposal of industrial waste complies with nationaland regional legal and regulatory requirements, the DIC Group’s production
facilities outside Japan work to minimize waste through the voluntary recycling
and reuse of materials. At production facilities in the Americas and Europe,*UHDWHU&KLQDDQGWKH$VLD±3DFL¿FUHJLRQWKH*URXSLVLQWURGXFLQJQHZZDVWH
treatment systems and promoting the horizontal deployment of best practices,
LQFOXGLQJWKRVHDLPHGDWLPSURYLQJSURGXFWLRQSURFHVVHV,Q¿VFDO\HDU
waste generated by DIC production sites in other countries and territories
WRWDOHGWRQQHVXSIURP¿VFDO\HDU7KLVVLJQL¿FDQWLQFUHDVH
UHÀHFWHGWKHLQFOXVLRQIRUWKH¿UVWWLPHRIGDWDIRUWKH&RORUV (IIHFWVSLJPHQWVEXVLQHVVLQUHVXOWVIRUWKH$PHULFDVDQG(XURSH:DVWHGLVSRVHGRIDVODQG¿OO
be these sites rose 16%, to 17,041 tonnes. Going forward, the Group’s regional
headquarters outside Japan will focus on reinforcing compliance with local laws
and regulations, as well as curbing the generation of industrial waste and the
GLVSRVDOWKHUHRIDVODQG¿OODIC Group
7KHGH¿QLWLRQRI³LQGXVWULDOZDVWH´²LQFOXGLQJZKHWKHULWHQFRPSDVVHVboth toxic and nontoxic substances, and both hazardous and
QRQKD]DUGRXVVXEVWDQFHV²YDULHVLQGLIIHUHQWFRXQWULHVDQGUHJLRQVDV
do the methods used to dispose of such waste. The DIC Group works
to ensure the management of industrial waste in a manner appropriate
for the degree of danger posed and in compliance with the laws of
the countries and territories in which its sites are located. The Group
works to fully grasp and manage industrial waste on a global basis,from generation at production facility through to discharge, intermediate
WUHDWPHQWDQG¿QDOGLVSRVDODVODQG¿OO7KHFKDUWEHORZLOOXVWUDWHVWKH
generation and disposal of industrial waste by the global DIC Group in¿VFDO\HDU$VWKLVVKRZVWKH*URXSEUHDNVGRZQDQGFDOFXODWHV
amounts at all stages of the industrial waste disposal process.

Industrial Waste Generated and Disposed of by the Global DIC Group in Fiscal Year 2022
Volume incinerated on-site
372 tonnes (0%)

Volume recycled on-site
151 tonnes (0%)
Waste heat recovered on-site
15,367 tonnes (13%)

Volume generated
118,273 tonnes (100%)Volume discharged byproduction facilities
102,383 tonnes (87%)

Volume disposed of as
landfill off-site
17,214 tonnes (15%)

Volume reused (outsourced)
63,646 tonnes (54%)

Volume recycled off-site
46,163 tonnes (39%)

Waste heat recovered on-site
17,484 tonnes (15%)

Volume incinerated off-site
21,523 tonnes (18%)
Note: Percentages in parentheses indicate portion of volume generated

DIC Report 2023

70

ESH

Managing Water Resources
Goals and Achievements of Major Initiatives
Objective of initiatives

Asses and manage water risks
at production facilities.

(YDOXDWLRQVDUHEDVHGRQVHOIHYDOXDWLRQVRIFXUUHQWSURJUHVV.H\★★★ = Excellent; ★★ = Satisfactory; ★ = Still needs work

Scope of target

Goals for fiscal year 2022

Achievement infiscal year 2022

Evaluation

GlobalTarget implementation rates forcountermeasures at high-risksites: 50% by fiscal year 2022,
100% by fiscal year 2024

The implementation rate forcountermeasures at fourhigh-risk sites was 50%.

★★★

Goals for fiscal year 2023

Target implementation rates forcountermeasures at high-risksites: 75% by fiscal year 2023,
100% by fiscal year 2024

■ Policies and Organization

Basic Approach
7KH',&*URXSPDLQWDLQVD¿UPJUDVSRIZDWHUULVNVUHOHYDQWWR*URXSRSHUDWLRQVDQGSURPRWHVDYDULHW\RILQLWLDWLYHVWRHQVXUHWKHHIIHFWLYHXVHRIZDWHUUHVRXUFHV
organization the Group established a consistent global framework forassessing water risks arising from both local water conditions and site
operations, which it has deployed to screen sites in Japan, the PRC
and the Asia–Pacific region. Specifically, the Group classified water
risks into categories such as drought, floods and water quality, andmapped them using two scales, namely, “regional water risks” and“operational water risks,” classifying those sites that register at theupper end of both scales as being high risk, as shown in the diagram
below. Regional water risks were assessed using the Aqueduct Water
5LVN$WODVZKLOHRSHUDWLRQDOZDWHUULVNVZHUHHYDOXDWHGXVLQJDTXHVWLRQQDLUHGHYHORSHGLQKRXVH6FUHHQLQJLGHQWLILHGVLWHVDV
being high risk.

)LQGLQJHIIHFWLYHZD\VWRFRQVHUYHDQGPDQDJHZDWHUUHVRXUFHVLVD
crucial global challenge. The DIC Group withdraws fresh water frommultiple sources for cooling production equipment, as well as for use
in products and as drinking water for employees. The Group also
discharges wastewater—after purifying it in accordance with internal
VWDQGDUGVWKDWH[FHHGRI¿FLDOVWDQGDUGVLQWKHFRXQWULHVDQGWHUULWRULHVLQZKLFKLWKDVRSHUDWLRQV²LQWRULYHUVDQGRWKHUIUHVKZDWHUERGLHV,Q
DGGLWLRQWRHYDOXDWLQJZDWHUULVNVDWHDFKRILWVSURGXFWLRQVLWHVDURXQG
the world and implementing countermeasures, the Group works to
SURWHFWDQGHQVXUHWKHHIIHFWLYHXVHRIZDWHUUHVRXUFHV■ Principal Initiatives in Fiscal Year 2022
❶ Assessing Water Risks%HWZHHQ¿VFDO\HDUVDQGWKH',&*URXSZLOOLPSOHPHQWDQG
FRQ¿UPFRXQWHUPHDVXUHVDWWKHVHKLJKULVNVLWHVDQGVHWDWDUJHWIRU
WKHLULPSOHPHQWDWLRQ,Q¿VFDO\HDUWKH*URXSZLOOUHYLVHLWVZDWHUULVNDVVHVVPHQWFULWHULDWRLGHQWLI\VLWHVZLWKORZHUULVNOHYHOVZKLFKLWZLOOGHVLJQDWHDVPHGLXPULVNVLWHV,Q¿VFDO\HDUWKH*URXS
implemented countermeasures at four high-risk sites, the same number
DVLQ¿VFDO\HDU

In recognition of the fact that water risks, which include drought,ÀRRGVDQGZDWHUTXDOLW\YDU\JUHDWO\IURPUHJLRQWRUHJLRQFRPSDQLHV
are increasingly expected to set targets that take into account local
water conditions in line with regional challenges as outlined recently
by the World Wide Fund for Nature (WWF).*1,Q¿VFDO\HDUWKH
DIC Group began using the Aqueduct Water Risk Atlas.*2+RZHYHU
Aqueduct assesses only regional water risks, that is, risks associatedwith a site’s location, which are caused by external factors, and does
not take into account operational water risks, which are attributable
to internal factors. Accordingly, under the guidance of a third-party*1 Targets were published in the World Resources Institute (WRI)’s Setting Site Water Targets Informed
by Catchment Context: A Guide for Companies.
*2 The DIC Group uses the WRI’s Aqueduct Water Risk Atlas to map water risks such as drought andÀRRGVDPRQJRWKHUVDWVLWHVZRUOGZLGH

Operational water risks

Water Risk Assessment Road Map (Fiscal Years 2021–2030)
2021

2024

Category

2030

Revise water risk
assessment criteria

Assess water
risks

Identify 16
high-risk sites

2025

Rank sites in terms ofpotential business impact

Regional water risks
Production site
Mapping of regional water risks and operational water risks

DIC Report 2023

71

Complete implementationof countermeasuresat high-risk sites

Identify
medium-risk sites

Rank sites in terms ofpotential business impact

Complete implementationof countermeasures at
medium-risk sites

ESH

Assessment of regional water risks using Aqueduct*URXSSXUL¿HVVXFKZDVWHZDWHUWRDOHYHOWKDWH[FHHGVWKDWPDQGDWHG
by law. For example, plant domestic wastewater (gray water) undergoes
primary treatment using a process such as oil–water separation before
being discharged off-site. Wastewater from production processes
DOVRJRHVWKURXJKVHFRQGDU\WUHDWPHQW²IRUH[DPSOHDQDFWLYDWHG
sludge process—before being cooled to a normal room temperature,undergoing oil–water separation and being discharged off-site. In some
FDVHVDWHUWLDU\SURFHVVVXFKDVDFWLYDWHGFDUERQWUHDWPHQWLVIXUWKHUHPSOR\HGWRUHPRYHKDUPIXOVXEVWDQFHV❷ Managing the Withdrawal of Water at and Discharge ofWastewater from Sites
Since fiscal year 2017, the DIC Group has used the Global
5HSRUWLQJ,QLWLDWLYH *5, ¶VJXLGHOLQH IRUFROOHFWLQJGDWDRQIUHVKwater withdrawn and wastewater discharged at each of its sites. In¿VFDO\HDUWKH',&*URXSLQ-DSDQZLWKGUHZP3
RIIUHVKZDWHUDQGGLVFKDUJHGP3 of wastewater, bothOHYHOZLWK¿VFDO\HDU
Water withdrawn at and wastewater discharged from DIC Group sites
LQRWKHUFRXQWULHVDQGWHUULWRULHVZHUHXSVKDUSO\IURPWKHSUHYLRXV
fiscal year, owing primarily to the addition of the Colors & Effects
pigments business to results in the Americas and Europe, soaringWRP3DQGWRP3UHVSHFWLYHO\$V
a consequence, fresh water withdrawn and total wastewater discharged
by the global DIC Group were up sharply in fiscal year 2022, with
WKHIRUPHULQFUHDVLQJWRP3, and total wastewater
GLVFKDUJHGFOLPELQJWRP3.

DIC’s Central Research Laboratories in Chiba Prefecture, Japan,
and subsidiary Siam Chemical Industry Co., Ltd., in Thailand
KDYH DFKLHYHG ]HUR GLVFKDUJH RI ZDVWHZDWHU %RWK FRQWLQXH
working to further reduce their impact on water resources. At theCentral Research Laboratories, groundwater is used to supply the
DSSUR[LPDWHO\P3 of water used by the site daily. The facility
has established a fully closed system, which means all water istreated and reused or disposed of on-site. The Central ResearchLaboratories has formulated a plan to install additional water
SXUL¿FDWLRQHTXLSPHQWZLWKWKHDLPRILPSURYLQJWKHTXDOLW\RIWUHDWHG
wastewater, thereby reducing the amount of water it withdraws.

* This guideline is included in the GRI’s G4 Sustainability Reporting Guidelines.

Total Fresh Water Withdrawn (Fiscal Years 2019–2021)
60,000Fresh water withdrawn (1,000 m3)

50,00040,00030,00020,00010,0000

2020

2021 2022
Japan

2020

2021 2022

Overseas

Surface water (rivers, etc.)

Groundwater

Tap water/industrial water

OthersRainwater

2020

2021 2022 (FY)GlobalWastewater generated by other organizations❹ Reporting to the CDP’s Water Security Program in 2022,Q¿VFDO\HDUWKH',&*URXSUHFHLYHGDVFRUHRI%LQWKH&'3¶V 
Water Security Program. Going forward, the Group will continue working
WRVWUHQJWKHQLWVZDWHUVHFXULW\LQLWLDWLYHVDQGHDUQDKLJKHUHYDOXDWLRQ❸ Efforts to Reduce Use of Water Resources and Address

Risks Related to the Discharge of Wastewater
Most of the water used by the DIC Group is for the cooling ofequipment. Accordingly, the Group uses cooling towers, among others,
to recycle water and reduce use of water resources. To lower risks
associated with wastewater generated by its production facilities, the7KH&'3IRUPHUO\WKH&DUERQ'LVFORVXUH3URMHFWLVDQRQSUR¿WRUJDQL]DWLRQWKDWRSHUDWHVD
global disclosure system that seeks to promote greenhouse gas emissions reductions, water
UHVRXUFHVPDQDJHPHQWDQGIRUHVWFRQVHUYDWLRQDIC Report 2023

72

ESH

Biodiversity
Basic Approach
7KH',&*URXSZRUNVWRJUDVSWKHLPSDFWRILWVRSHUDWLQJDFWLYLWLHVRQELRGLYHUVLW\DVZHOODVWRXVHODQGDQGQDWXUDOFDSLWDO
LQDVXVWDLQDEOHPDQQHU
❶ Biodiversity Preservation Initiatives since 2011

❷ Biodiversity Preservation Initiatives since 2011

The DIC Group has long recognized the importance of preserving
ELRGLYHUVLW\,QDOHFWXUHZDVJLYHQE\DQRXWVLGHH[SHUWRQWKH
UHODWLRQVKLSEHWZHHQFRUSRUDWHDFWLYLWLHVDQGELRGLYHUVLW\7KHOHFWXUHZDVDWWHQGHGE\H[HFXWLYHVIURPFRUSRUDWHKHDGTXDUWHUVDVZHOODVIURPSODQWVDQG*URXSFRPSDQLHVDFURVVWKHFRXQWU\DQGSURPSWHG
WKHODXQFKRIDZLGHUDQJHRIUHODWHGLQLWLDWLYHVH[DPSOHVRIZKLFKDUH
JLYHQEHORZ
① Initiatives designed to ensure an effective grasp of the relationshipbetween the Group’s operating activities and biodiversity at all
VWDJHVRILWVSURGXFWV¶OLIHF\FOHIURP5 'DQGWKHSURFXUHPHQWRI
UDZPDWHULDOVWKURXJKWRHQGRIOLIHGLVSRVDORUUHF\FOLQJ
② 2EWDLQLQJDWKLUGSDUW\DVVHVVPHQWRIPDQDJHPHQWRIWKHQDWXUDOIRUHVW DQG JDUGHQV RQ WKH VLWH LQ 6DNXUD &KLED 3UHIHFWXUH
occupied by the Central Research Laboratories and the Kawamura
0HPRULDO',&0XVHXPRI$UW

',&SULQWVWKH',&5HSRUWLWVFRQYRFDWLRQQRWLFHDQGDYDULHW\RISDPSKOHWVDQGRWKHUSULQWHGPDWHULDOVRQSDSHUFHUWL¿HGE\WKH)RUHVW6WHZDUGVKLS&RXQFLO )6& 

TOPIC❸ Participation in JBIB

,Q$SULO',&MRLQHGWKH-DSDQ%XVLQHVV,QLWLDWLYHIRU%LRGLYHUVLW\-%,% DJURXSRI-DSDQHVHFRPSDQLHVFRPPLWWHGWRSUHVHUYLQJELRGLYHUVLW\WKDWZRUNVDFWLYHO\WRFROOHFWXSWRGDWHLQIRUPDWLRQDQG
QHWZRUNZLWKRWKHUPHPEHUV$VSDUWRIWKLVLQLWLDWLYHWKH',&*URXSLV
conducting study sessions with outside experts and companies fromRWKHULQGXVWULHVZLWKWKHREMHFWLYHRISURPRWLQJPRUHDPELWLRXVHIIRUWVWRSUHVHUYHELRGLYHUVLW\

Biodiversity Initiatives at the Kawamura Memorial DIC Museum of Art

The satoyama* landscape of the extensive site occupied by the Kawamura Memorial DIC Museum of Art and the Central Research Laboratories makes it
DQLGHDOKRPHIRUQXPHURXVWUHHDQGÀRZHUYDULHWLHVDVZHOODVIRUDQDEXQGDQFHRIZLOGOLIH/RYHGE\WKHFRPPXQLW\WKHVLWHKDVZHOFRPHGDSSUR[LPDWHO\YLVLWRUVDQQXDOO\VLQFHWKHRSHQLQJRIWKHPXVHXPLQ2QWKLVVLWHRULJLQDOO\DFHGDUIRUHVWWKHPXVHXPLVSURPRWLQJDWKUHH\HDUSODQFRQFOXGLQJLQWRFUHDWHDWKLFNHWRIEURDGOHDIWUHHVJLYLQJFDUHIXODWWHQWLRQWRHQVXULQJDQHFRV\VWHPWKDWZLOOVXSSRUWFRH[LVWHQFHZLWKZLOGELUGVDQGVPDOODQLPDOV* SatoyamaLVD-DSDQHVHWHUPDSSOLHGWRWKHDUHDEHWZHHQPRXQWDLQIRRWKLOOVDQGDUDEOHÀDWODQG

0XVHXPVWDIIWDNHSDUWLQSODQWLQJVHHGOLQJVThe forest and gardens of the site occupied by the Kawamura Memorial',&0XVHXPRI$UWDUHDOZD\VDOLYHZLWKVHDVRQDOÀRZHUVDQGIROLDJHDIC Report 2023

73

ESH

Safety in Logistics

Responsible Logistics
Goals and Achievements of Major Initiatives
Objective of initiatives

Reduce CO2 emissions attributable
to logistics.

Scope of target

Japan

Evaluations are based on self-evaluations of current progress. Key: ★★★ = Excellent; ★★ = Satisfactory; ★ = Still needs work

Goal for fiscal year 2022

Achievements infiscal year 2022

Reduce energy consumption per unitof production attributable to logistics by
1% from fiscal year 2021 by promoting
modal shift and improving transport
efficiency.

• Energy consumption
per unit of production
attributable to logistics
was down 3%.
• CO2 emissions attributable
to logistics declined 5%.

Evaluation★★★

Goal for fiscal year 2023

Reduce CO2 emissions
attributable to logistics by 1.23%
from fiscal year 2022.

★★★

Basic Approach
The DIC Group works with logistics partners to minimize risks, including by supplying information needed for the safe shipping andtransport of chemicals.

to social imperatives associated with the transport of chemicals, in¿VFDO\HDU',&FRPELQHGWKHORJLVWLFVFRPSRQHQWVRILWVYDULRXV
departments to create a single Logistics Department.

■ Policies and Organization
Having positioned the reduction of CO 2 emissions attributable tologistics as a key aspect of its commitment to promoting Responsible
Care, the DIC Group sets annual targets and promotes related
initiatives on an ongoing basis. DIC’s logistics configuration—
components of which include transport between production facilities,
the transport of products to customers and international logistics—
previously centered on a dedicated subsidiary, which operated under
the direct supervision of DIC. In a bid to rationalize and increase theefficiency of logistics, in 2011 DIC transferred this subsidiary to alogistics partner—a third-party logistics (3PL)*1 firm—and began tooutsource its logistics. Since then, the Group has worked closely withthis and other logistics partners to improve the safety of, and reduce
CO2 emissions attributable to, its logistics activities. To respond better

The Logistics Department is charged with devising strategies tooptimize logistics in Japan and across Asia, and with capitalizing onexport controls and free trade agreements (FTAs)*2 in line with theForeign Exchange Law. The department consists of the Domestic
Planning Group, which implements measures to reduce import–export
costs, and the Overseas Planning & International Trade Administration
Group, which advances initiatives to enhance the safety and reduce
the environmental impact of logistics planning 3/VDUH¿UPVWKDWSURYLGHSDUWLDORUFRPSOHWHRXWVRXUFHGORJLVWLFVVHUYLFHV
*2 FTAs are agreements between two or more countries or customs territories to eliminate importtaxes, import quotas and other trade barriers for a set period of time, thereby encouraging trade.

',&·V/RJLVWLFV&RQÀJXUDWLRQ

Conﬁrmation of
execution

Regular safety
and environment
meetings

DIC’s Logistics
Department(Policy/initiatives/
discussions)Ɣ Loading and unloadingƔ Transport between production facilities
Ɣ Delivery of products(Ɣ Transport of purchased materials)
Others࡛ Domestic Planning Group࡛ Overseas Planning & International
Trade Administration Group

Overseas
Group companies
Supporteﬀorts

Product divisions

Logistics partners(Health and safety committees) Principal DIC production facilities

DIC Report 2023

74

ESH

the Company continued using larger trucks and taking decisive steps
to improve loading efficiency, as a result of which it achieved declines
in energy consumption and CO 2 emissions attributable to logistics ofDSSUR[LPDWHO\DQGUHVSHFWLYHO\■ Reducing Environmental Impact and Supporting

White Logistics
The operating environment for Japan’s logistics industry continues torecover from a temporary decrease in shipment volume attributable to
COVID-19, but the issue of driver shortages persists, owing to growing
popularity of e-commerce and restrictions on drivers’ working hours
resulting from a legal amendment dubbed the “2024 issue.” In addition, the-DSDQHVHJRYHUQPHQW¶VWDUJHWIRUDFKLHYLQJDUHGXFWLRQRIJUHHQKRXVH
gas emissions by fiscal year 2030, announced in April 2021, obliged
companies to step up efforts to lower the burden of logistics activities on
the environment.

DIC also continues to support the White Logistics movement, an initiative
put forward by the Ministry of Land, Infrastructure, Transport and Tourism,
among others, to improve working environments in the logistics industry.
The Company also works with logistics partners and shipping companies
to ensure business continuity. In fiscal year 2022, the Company began
using returnable pallets, which reduce the work associated with pallettransshipment, at another production facility.
DIC Group companies in other countries and territories also continue toactively advance the use of returnable pallets and other initiatives to lower
the environmental impact of their logistics activities.

Against this backdrop, DIC continues to promote the transport of products
using modes qualifying as “modal shift” in Japan with the aim of reducing
WKHHQYLURQPHQWDOLPSDFWRIWKHWUDQVSRUWRILWVSURGXFWV,Q¿VFDO\HDU

CO2 Emissions and Energy Consumption per Unit of Production
Attributable to DIC Group Logistics Activities in Japan(GJ/10,000 tonne km)(%)(Tonnes)

30,00030

25,00025

20,00020

CO2 emissions(Tonnes)

15,00015

Energy consumption(GJ/10,000 tonne km)

10,000

10

5,000

5

0
’11

’12

’13

’14

’15

’16

’17

’18

’19

’20

’21

0
’22 (FY)

health and safety committees also participate in each other’s meetings, aswell as meetings of logistics partners’ site general managers. The Logistics
Department also inspects the offices of logistics partners located onsite at its main domestic production facilities. In fiscal year 2022, issues
ZHUHSRLQWHGRXWDWIRXURIWKHVHRI¿FHVDIWHUZKLFKLPSURYHPHQWVZHUHFRQ¿UPHG,QDGGLWLRQ',&HQGHDYRUVWRPDLQWDLQDQGHQKDQFHVDIHW\E\requiring transport personnel to carry Yellow Cards.*■ Safety in Logistics○ Safety Management Initiatives
7KH¿UPVWRZKLFKWKH',&*URXSRXWVRXUFHVORJLVWLFVXVHFRQWDLQHUV
that comply with the Fire Service Act and other transportation laws,
as well as with related UN standards. The Group supplies informationneeded to display labels complying with the Globally Harmonized
6\VWHPRI&ODVVL¿FDWLRQDQG/DEHOLQJRI&KHPLFDOV *+6 DVZHOODV
provides safety data sheets (SDSs) and other documentation to ensure
safe shipping whether in Japan or overseas. The Group also holds
in-house presentations regarding transport of products requiring UN
numbers (i.e., hazardous substances) by sea and air to facilitate thesharing of information, including alerts.

* Yellow Cards are part of activities recommended by the JCIA. These cards contain information
about the correct actions to take if an accident occurs. They provide contact details to ensure
proper responses by transportation companies, firefighters and police officers if an accident
occurs during the transport of chemical substances. Transport personnel must carry these cards
at all times.

In Japan, the Logistics Department cooperates with logistics partners,
meeting regularly to discuss measures for improving the safety of bothloading and transport work. Of particular note, logistics quality issues suchas leaks, undelivered cargo and delivery errors are designated as incidents
for priority attention and decisive steps are taken to ensure improvements.
Other ongoing efforts include initiatives aimed at preventing the recurrenceof past accidents and regular logistics safety campaigns. Members of site

Regular meeting with a logistics partner

DIC Report 2023

75

ESH

TOPIC

7DNLQJ0HHWLQJVZLWK3/ÀUPV2QOLQH&29,'IRUFHG',&WRDGRSWDQRQOLQHIRUPDWIRULWVPHHWLQJVZLWK3/¿UPV7KLVIRUPDWKDVVLQFHWDNHQ¿UP
root. Despite the restrictions of the online format for safety training, the Company used photographs and videos
to reiterate the importance of robust safety and prevent memories of past accidents from fading. These efforts
contributed to a 9% decline in the frequency of accidents.

Online meeting with a 3PL firm

VOICE

We are working to contribute to the realization of sustainability through effective logistics.

$OWKRXJKWKHVWRUDJHVSDFHVKRUWDJHVDQGVRDULQJVKLSSLQJFRVWVRIUHFHQW\HDUVERWKFRQVHTXHQFHVRIJOREDOLQÀDWLRQDQGGHFOLQLQJFRQVXPSWLRQ
brought about by COVID-19, have stabilized, the operating environment for logistics services continues to deteriorate as a result of the crisis in
Ukraine, which has driven up fuel costs, and of frequent natural disasters and concerns over Taiwan.
In this environment, the Logistics Department remains keenly aware of the importance of prioritizing environmental and safety concerns to ensure
LWVDELOLW\WRFRQWULEXWHWRWKHUHDOL]DWLRQRIVXVWDLQDELOLW\$VVXFKZHZRUNFORVHO\ZLWKORJLVWLFV¿UPVDQGVKLSSLQJFRPSDQLHVWRUHGXFHERWKWKH
environmental impact of our logistics activities and the incidence of logistics-related accidents. Looking ahead, we will continue to cooperate with
our logistics partners to promote modal shift and support the White Logistics movement.
General Manager, Logistics Department, DIC Corporation

DIC Report 2023

76

Kenichi Tsuruta

ESH

Ensuring the Safety of Chemical Substances
Goals and Achievements of Major Initiatives
Objectives of initiatives

Scope of target

・Enhance functions of comprehensive

chemical substance information
management systems.
・Continue to expand deployment of
the Wercs and Atrion at DIC Group
companies in other countries
and territories.

・Japan・PRC・Asia–PacificregionEvaluations are based on self-evaluations of current progress. Key: ★★★ = Excellent; ★★ = Satisfactory; ★ = Still needs work

Achievements infiscal year 2022

Goals for fiscal year 2022

・Launch the new comprehensive

・Launch of the new comprehensive

global chemical substanceinformation management systemin the PRC.
・Promote deployment of the Wercs
and Atrion at DIC Group companies inother countries and territories.

global chemical substance information
management system in the PRC wasdelayed until fiscal year 2023.
・Deployment of the Wercs and Atrion atGroup companies in the PRC and theAsia–Pacific region proceeded.

Evaluation

Goals for fiscal year 2023

・Launch the new comprehensive global★

★★

chemical substance information
management system in the PRC.
・Continue promoting deployment of
the Wercs and Atrion at DIC Group
companies in the PRC and the Asia–
Pacific region.

・ Continue deploying new business flow
・ New processes and flows were deployed in・Deploy new business flow in the・Review business flow to ensurecompliance with laws andregulations around the world.
・Comply with laws and regulations inother countries and territories.

・Japan・PRC・Asia–PacificregionPRC.
・Address revisions to the ROK’s

K-REACH.
・Address revisions to labelingand reporting-related laws andregulations in the PRC.

the PRC.
・The re-registration of existing substancesin accordance with revisions to K-REACH
proceeded, focusing on substances with aregistration deadline of 2024.
・Revisions to labeling and reporting-related
laws and regulations in the PRC weremonitored and local sites were notified.

★★★

★★★

★★★

in the PRC and begin deployment in theAsia–Pacific region.
・ Continue promoting the re-registrationof substances in line with revisions to
K-REACH and ensure compliance with
Taiwan’s TCSCCA.
・ Address revisions to labeling and reportingrelated laws and regulations in the PRC. Gather
information and prepare for enforcement of newnational laws in that country.

Basic Approach
The DIC Group continues working to provide appropriate information to stakeholders to ensure the appropriate handling of its products overtheir entire life cycle.

Japan, which in 2006 compelled use of the system in the Industrial Safety and
Health Act. As part of its effort to ensure effective product stewardship, thefoundation of Responsible Care, DIC was early to respond to this development,
providing customers with crucial hazard-related information and encouraging
them to use such information to reduce risks.

■ Policies and Organization
In 2002, countries and territories participating in the World Summit on Sustainable
Development (WSSD) in Johannesburg, South Africa, including the United States,
EU member states and Japan, agreed on a goal for the management of chemical
substances to minimize the impact thereof on human health and the environment
by 2020. In 2015, the UN General Assembly set the SDGs, a collection of common
goals designed as a blueprint for global society.

Concurrent with the enforcement of the Industrial Safety and Health Act in 2006,
DIC began providing GHS-compliant SDSs.*2 In 2009, the Company developed
CIRIUS (Chemical Substance Information Comprehensive Management
System), a proprietary system that centralizes the management of information
on chemical substances in raw materials and products, as well as automaticallychecks various laws and regulations—including the Act on the Evaluation ofChemical Substances and Regulation of Their Manufacture, etc.—to facilitate
swift responses to customers’ requests for information. In 2013, the Company
began using the Wercs, an SDS and label creation system that facilitates
the translation of data into 46 languages, for products destined for overseas
markets, while in 2015 it also began deploying the Wercs outside Japan.
At present, the system is in use at 23 Group companies in 11 countries andterritories. DIC also continues to advance the creation of a new comprehensive
global chemical substance information management system dubbed CIGNAS(Chemicals Information Global Network Access System). In fiscal year 2021,
DIC replaced the Wercs and CIRIUS in Japan with CIGNAS. Current plans
are to begin using the new system at DIC Group companies in the PRC
DQGWKH$VLD±3DFL¿FUHJLRQLQ¿VFDO\HDUZLWKWKHDLPRIDFKLHYLQJIXOOGHSOR\PHQWUHSODFLQJWKH:HUFVE\¿VFDO\HDU7KH6XQ&KHPLFDO*URXS
has used Atrion International Inc.’s eponymous chemical substance information
management system since 2006, enabling it to provide highly accurate
information to its customers worldwide.

As a comprehensive chemicals manufacturer with operations around the world,the DIC Group created uniform standards for managing chemical substancesthat exceed legal and regulatory standards well before the WSSD. In line with
its Environment, Safety and Health Policy (established in 1992), the Group
views product stewardship* as the foundation of Responsible Care and works toprovide stakeholders with information on the appropriate handling of its products
over their entire life cycle. The Group also develops alternative offerings thatexert less of an impact on the environment and to this end promotes the
management of chemical substance information to contribute to the achievementof sustainability. To this end, the DIC Group has also established bases in the
35&DQGWKH$VLD±3DFL¿FUHJLRQEHWWHUSRVLWLRQLQJLWWRGLVVHPLQDWHLQIRUPDWLRQ
to Group companies around the world.
* 3URGXFWVWHZDUGVKLSLVDSKLORVRSK\WKDWHPSKDVL]HVDVVHVVLQJSURGXFWVSHFL¿FULVNVDQGVKDULQJ
findings and information on appropriate handling with stakeholders with the aim of reducing
the ESH impact of products over their entire life cycle, i.e., from the development of chemical
substances through to procurement, production, transport, sale, use and disposal or recycling.

■ Managing Chemical Substances
In 2003, the UN Economic Commission for Europe (UNECE) issued the firstedition of the GHS.*1 Many countries have since introduced the GHS, including

DIC Report 2023

77

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Recognizing the importance of specialized expertise in the manufacture,import and handling of chemical substances in accordance with applicablelaws and regulations, in 2000 DIC began providing related training. Since
2007, the Company has had a proprietary licensing system designed tomaintain and enhance the skills of employees who have become experts inchemical substance management.
7KH*+6ZDVIRUPDOO\DGRSWHGE\WKH81LQWRIDFLOLWDWHWKHXQLIRUPJOREDOFODVVL¿FDWLRQDQG
labeling of hazard information for chemicals.
*2 SDSs contain information on the hazards of chemicals to ensure their safe handling.

The DIC Group’s Global Chemical Substance Information Management Systems

Training

教育

Fostering experts

管理システムManagement system

Introduction of licensing system
Introduction of training framework

Business area

Compliance with laws and regulations in Japan and overseas
SDS creation system

CIRIUS
The Wercs

CIGNAS

Atrion
2000

2007

2009

2013

2016

2019

2021

Controller

SystemJapan

DIC

CIRIUS$VLD±3DFL¿FUHJLRQ35&

DIC

The Wercs

North America, Central and South America,
Sun Chemical
Europe, Africa
Australia

AtrionDIC

Individual divisions and departments make use of chemical substanceinformation in its particular work. Accordingly, the system is used not only
by experts in the management of chemical substances but also by diverse
other employees across the global DIC Group. The Group was thus awareof the importance of designing the interface so that even non-experts can
XVH&,*1$6ZLWKHDVH7KHQHZV\VWHPVWRUHVFRQ¿GHQWLDOLQIRUPDWLRQRQ
among others, the chemical composition of products and raw materials. For
this reason, and because of the wide range of individuals using the system,
meticulous attention to security was a key consideration in system designand development.

■ Creating a New Chemical Substance Information

Management System and Framework
DIC’s Global Chemical Information Management Project (GCIP),
established to develop the CIGNAS system, is responsible for not only
system design and development but also reviewing and standardizing
procedures to be used globally for gathering information to ensure smooth
operation following launch. Key highlights to date include the following:• In fiscal year 2019, project team members visited 11 DIC Group
companies in three countries to deepen their understanding of thesecompanies' procedures for managing chemical substances. Findings
were incorporated into development efforts.
• ,Q¿VFDO\HDUWKHSURMHFWWHDPFRQGXFWHGRQOLQHLQWHUYLHZVZLWKcolleagues from 12 Group companies in five countries to clarify their
expectations of the new system.

○ A Global Framework
Techniques used to manage chemical substance information vary
greatly depending on country/territory and site, as does the quality ofmanagement. Given the expected further tightening of laws and regulations
governing chemical substances and the increasing number and changing
nature of substances used, implementing an organized global approachis essential. The DIC Group recognizes that introducing a new system isonly part of the solution, and so it has also commenced efforts to establish
a new information management framework to support administration of
the new system after creation and deployment. In fiscal year 2019, theChemical Substance Information Management Group was establishedat DIC’s corporate headquarters in Tokyo to oversee this process. In
April 2020, this group also began promoting initiatives in Shanghai. In-DQXDU\FROODERUDWLRQZDVH[SDQGHGWRHQFRPSDVVWKH$VLD±3DFL¿Fregion, with the Chemical Substance Information Management Groupin Tokyo providing appropriate support. Through such efforts, the Groupwill leverage know-how accumulated in Japan to integrate information
management, thereby ensuring consistent quality, securing complianceand strengthening governance.

The results of the above initiatives were reflected in CIGNAS’ system
UHTXLUHPHQWVDQGVWDQGDUGZRUNÀRZ&,*1$6LVFXUUHQWO\LQXVHDWDOOVLWHV
in Japan and will be deployed at DIC Group companies in the PRC and the$VLD±3DFL¿FUHJLRQLQWKHQHDUIXWXUH○ Designing and Developing CIGNASDIC applied capabilities, experience and expertise accumulated in thedesign, development and operation of CIRIUS and the Wercs to designingand developing its new CIGNAS system. The Company also recognized
WKDWDXQL¿HGJOREDOV\VWHPIRUPDQDJLQJFKHPLFDOVXEVWDQFHLQIRUPDWLRQ
will enhance its operational efficiency and thus created a framework fordata integration with its ERP system.

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78

ESH

DIC gathers the latest information on chemical substances in overseas markets
through local consultants, as well as through its global network, which includes
Sun Chemical and other DIC Group companies, ensuring its ability to respondeffectively to revisions to laws and regulations and to provide information toGroup companies and customers. As a leading member of the JCIA working
group charged with collecting Japanese companies’ opinions and proposals
regarding the enactment and revision of laws and regulations, DIC conducts
dialogue with government authorities, playing a leading role in ensuring the legal
and regulatory compliance of JCIA members. Thanks to effective monitoring of
regulatory trends and swift responses to revisions to pertinent laws, there wereno violations of legal violations requiring the registration or reporting of chemical
substances by the DIC Group in other countries and territories in fiscal year2022.

■ Complying with Laws and Regulations❶ Complying with Laws and Regulations in Japan
DIC recognizes legal and regulatory compliance as central to risk management.
In Japan, this includes fulfilling without exception obligations related to thereporting of new chemical substances set forth in the Act on the Evaluationof Chemical Substances and Regulation of Their Manufacture, etc., and theIndustrial Health and Safety Act, and to the keeping of records on manufacturing,
importing and sales laid out in the Poisonous and Deleterious Substances
Control Act. To enhance the reliability of its compliance efforts, the DIC Groupis promoting diverse initiatives, from collecting and analyzing information toformulating guidelines, promoting awareness among Group companies andcustomers, and advancing deployment of CIGNAS.

Outlook for Principal Initiatives in Fiscal Year 2023
The DIC Group will continue pressing ahead with preparations to re-registerchemical substances as required under the ROK’s revised K-REACH legislation,prioritizing substances with large volumes that are close to the re-registration
deadline. The Group will also prepare to meet the re-registration deadline for
Taiwan’s Toxic and Chemical Substances of Concern Control Act (TCSCCA).
Additionally, the Group will continue to gather information and take steps toregister chemical substances to ensure compliance with newly introduced
registration systems in other countries and territories. In India, the Group willkeep abreast of developments surrounding India’s move to mandate GHS
compliance and will submit opinions and proposals through the JCIA.

The Food Sanitation Act, which was amended in fiscal year 2018, stipulates
the adoption of a Positive List system, which allows only substances that havebeen evaluated for safety to be used in utensils, containers and packaging forfood. DIC manufactures a wide range of polymers, including polystyrene, inks
and other raw materials used in food packaging. Accordingly, the Company isproceeding with efforts to gather information and apply for the list in cooperation
with pertinent industry organizations. There were no legal violations by the DIC
Group in Japan requiring the registration or reporting of chemical substances in¿VFDO\HDU
Outlook for Principal Initiatives in Fiscal Year 2023
-DSDQ¶VUHYLVHG,QGXVWULDO6DIHW\DQG+HDOWK$FWZLOOFRPHLQWRIRUFHLQ¿VFDO
year 2023. The revised Act emphasizes the transition to a regulatory systemfor chemical substances based on autonomous management, notably on
establishing a system for implementing autonomous management andstrengthening the communication of information on hazards and toxicity. A
VLJQL¿FDQWQXPEHURIQHZFKHPLFDOVXEVWDQFHVZLOOEHDGGHGWRWKH$SSHQGHG
Table 9 of the Order for Enforcement of the Industrial Safety and Health Act.
It will also be possible to obtain SDSs without seeking approval of the otherparty simply by, for example, checking and scanning 2D barcodes printed oncontainers or viewing the appropriate website product page. The DIC Groupin Japan will continue working to ensure it manages chemical substances, aswell as prepares and distributes SDSs, in compliance with the revised Industrial
Safety and Health Act. DIC will also take decisive steps to address the WSSD
goal that will supersede the goal for 2020, which was expected to be discussed
at the International Conference on Chemicals Management (ICCM) but wasdelayed due to COVID-19, paying close attention to how the new goal isUHÀHFWHGLQSROLFLHVODZVDQGUHJXODWLRQV

■ Training and Systems
In line with the principles of product stewardship, the DIC Group recognizes theimportance of greater employee awareness and know-how to ongoing efforts
to improve the safety of chemicals and manufactured goods. The Group placesconsiderable emphasis on training for employees involved in the manufacture,import and handling of chemical substances in accordance with applicable laws
and regulations and endeavors to improve understanding and knowledge ofapplicable laws and regulations in Japan and other countries and territories,
which it provides through its program to foster experts and its proprietary
licensing system.
❶ Fostering Experts
As a comprehensive global chemicals manufacturer, the DIC Group recognizes
legal and regulatory compliance as central to risk management and promotes
training designed to foster experts in this area. DIC began offering an entryOHYHOFRXUVHRQODZVDQGUHJXODWLRQVJRYHUQLQJFKHPLFDOVXEVWDQFHVLQ¿VFDO\HDU$QRQOLQHIRUPDWZDVDGRSWHGLQ¿VFDO\HDUWRPDNHLWHDVLHU
for employees in the target group—mainly employees at sites with technicaldepartments—to participate in training. In fiscal year 2022, the Company
continued to provide training on the legal handling of chemical substances,
expanding participation in this training to include employees of DIC Group
companies. In fiscal year 2023, efforts will focus on designing courses andpreparing study materials to facilitate the creation of a practical program focusedon various chemicals-related laws and regulations.

❷ Complying with Laws and Regulations in OtherCountries and Territories
Recent years have brought the establishment and amendment of major laws
and regulations governing chemical substances across East Asia. Key examples
include revisions to the Republic of Korea (ROK)’s Act on the Registration and(YDOXDWLRQRI&KHPLFDOV .5($&+ LQ¿VFDO\HDUDQGWKH35&¶V&KLQD
5($&+OHJLVODWLRQLQ¿VFDO\HDU2WKHUFRXQWULHVWKDWFXUUHQWO\GRQRWKDYH
chemical substance registration systems, including Thailand, Vietnam, Turkey,
Russia and Eurasian Economic Community member countries, are also moving
in this direction, but in many cases progress is behind schedule.

❷ Licensing Systems in Japan
Under a proprietary licensing system, DIC provides mandatory specialized
training for individuals in Japan engaged in the export and import ofchemical substances and issues licenses to employees who have

Deployment of the GHS has been made mandatory in most countries, withlatecomer India now taking steps toward enacting a law obliging GHS compliance.

DIC Report 2023

79

ESH

completed training and passed in-house examinations. The period of validity
is two years for export licenses and three years for import licenses. Training forindividuals involved in exporting and importing chemical substances focuses on
the Foreign Exchange and Foreign Trade Act, while that for individuals involved
exclusively in importing centers on the Act on the Evaluation of Chemical
Substances and Regulation of Their Manufacture, etc., the Industrial Safety
and Health Act and the Poisonous and Deleterious Substances Control Act. To
renew a license, an employee must once again go through training and pass
WKHLQKRXVHH[DPLQDWLRQ,Q¿VFDO\HDUWUDLQLQJDQGH[DPLQDWLRQVZHUH
conducted online. As of the fiscal year-end, 342 employees held an importlicense; 166 held a Class B export license, requiring general knowledge; and1,512 held a Class A export license, which requires high-level specialized
expertise, while a further 113 had completed an advanced export license course,
an achievement requiring superior capabilities.

❸ Training at DIC Group Companies in Other Countries
and Territories
In response to the Group’s mandate for effective management of chemicalcompliance, Guangdong DIC TOD Resins Co., Ltd. (TOD), which becamea member of the DIC Group in July 2022, is actively promoting legal
compliance efforts and is working to build a management framework. DIC(China)’s Corporate ESH Department held two presentations on managing
new chemical substances for all TOD sales representatives with thegoal of deepening the company’s understanding of chemical compliancemanagement. These included explanations defining new chemical
substances, legal and regulatory requirements, and the DIC Group’s
compliance measures.
Looking ahead, the DIC Group will continue working to deepen chemicalcompliance management across the Group by providing education throughpresentations and training, as well as to share information on the latest
legal and regulatory developments, in response to requests from Group
companies in other countries and territories.

,Q¿VFDO\HDU',&ZLOOIXUWKHUHQKDQFHWKHFRQWHQWRIWKLVWUDLQLQJ:LWKWKH
importance of economic partnership agreements increasing, owing to, among
others, the entry into force of the Regional Economic Partnership (RCEP), the&RPSDQ\ODXQFKHGDOLFHQVLQJV\VWHPIRUHPSOR\HHVZKRSUHSDUHFHUWL¿FDWHV
of origin based on such agreements. DIC will also continue to expand related
WUDLQLQJLQ¿VFDO\HDU

Export Licenses

Import Licenses

Class A licenses

Advancedlicenses

1,512

113

342

Class B licenses

166
Presentation by Yundan Zhao of DIC (China)’s Corporate ESH Department on the
management of new chemical substances

VOICE

This is our key consideration in designing and administering CIGNAS.

7KHZRUNLQJJURXSUHVSRQVLEOHIRUGHVLJQLQJDQGDGPLQLVWHULQJ&,*1$6RIZKLFK,DPDPHPEHUZRUNVFRQWLQXRXVO\WRHQKDQFHWKHHI¿FLHQF\DQGHQVXUH
the stable operation of the system. CIGNAS, which was launched in Japan in November 2021, replacing CIRIUS, is already playing a crucial role as the DIC
Group’s global chemical substance information management system, including by supporting the issue of SDSs for use in other countries and territories.
Procedures for managing chemical substance information have increased and become more complex. In addition to inputting information on products
DQGWKHUDZPDWHULDOVDQGFKHPLFDOVXEVWDQFHVXVHGWKHUHLQZHQHHG&,*1$6WRIDFLOLWDWHWKHPRUHHI¿FLHQWRXWSXWRILQIRUPDWLRQUHTXLUHGE\LQWHUQDODQG
external stakeholders. Accordingly, we continue collaborating with technical teams and Responsible Care Department colleagues to guarantee that data
input and updated daily into CIGNAS is transformed swiftly into the information required for in-house chemical substance management, the provision of
information to customers and other purposes. I look forward to working with everyone in optimizing this new system.
Manager, Product Safety & Regulatory Group, DIC Coporation

Hitoshi Ishizuka■ Position on the Use of Animals in Testing■ Safe Product Transport

In line with the “3Rs” of animal use in research (replacement, reduction,
UH¿QHPHQW ZKLFKDUHJXLGHOLQHVGHVLJQHGWRHQVXUHWKHPRUHHWKLFDOXVH
of animals in testing, the DIC Group actively promotes safety evaluation
using quantitative structure–activity relationship (QSAR) models that do not
employ animals.

7KH',&*URXSKDVFUHDWHG<HOORZ&DUGVFRQWDLQLQJVLPSOL¿HG6'6V
This provides critical information to transport personnel, facilitating theappropriate responses in the unlikely event of an accident to protect
the environment and ensure safety. (For more information, please see
page 75.)

DIC Report 2023

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Engaging with Society
Basic Approach
DIC actively discloses information on its Responsible Care initiatives to stakeholders and promotes a variety of initiatives with the aim of
deepening mutual understanding as well as endeavors to respond appropriately to public concerns, and responding to issues of concern.

production facilities. In fiscal year 2022, Responsible Care
community meetings were held at plants located in industrial
complexes. Environmental presentations were also held at
production facilities located near residential areas. Other
efforts included preparing site reports, inviting junior and seniorhigh school students for hands-on lab lessons, participatingin community disaster drills and providing assistance for local
festivals.
At sites in other countries and territories, the DIC Groupalso seeks to advance dialogue and interaction with local
communities by participating in tree plantings and otheractivities aimed at helping prevent global warming andpreserving biodiversity. In fiscal year 2022, many of these
efforts were suspended as a consequence of COVID-19. The
Group looks forward to resuming active engagement withsociety at the earliest possible date.

❶ Information Disclosure

The DIC Group strives to increase the transparency of its
activities through the active disclosure of information and at
the same time promotes dialogue with stakeholders. In fiscal
year 2022, DIC disclosed information on the global Group’s
safety and environmental activities in its integrated report. DIC
5HSRUWLQFOXGHGDQH[WHQVLYHGDWD¿OHWRPDNHWKHUHSRUW
easier to understand for external stakeholders. For the firsttime, the English-language version of the report was publishedexclusively in an electronic format. DIC Group production
facilities publish site reports outlining their safety andenvironmental initiatives, as well as strive to provide information
to local residents and other stakeholders.
❷ Engaging with Society
In Japan, the DIC Group holds regular presentations on safety
and environmental initiatives for the communities around its

Bon Odori (Bon festival dance) at DIC Graphics’ Tokyo
3ODQWLQ¿VFDO\HDU

Site reportComprehensive disaster drill for the Sakai–Senboku Special
Disaster Protection Area hosted by the Sakai Plant in fiscal
year 2019

DIC Report 2023

81

(6+

0DQDJHPHQW6\VWHPV%DVLF$SSURDFKThe DIC Group operates management systems for occupational safety and health, safety and disaster prevention, environmental protection,
chemical and product safety, engagement with society and logistics safety.
Audits also look at the implementation of safety initiatives andthe progress of remedial measures undertaken in response
to issues cited in the previous year’s audit. DIC’s president
also takes part, underscoring senior management’s active
engagement in efforts to ensure ESH-related concerns are
DGGUHVVHG$VDUHVXOWRI&29,'LQ¿VFDO\HDUWHDPV
were limited to Responsible Care Department specialists andsite administrators. In other countries and territories, regional
headquarters’ ESH officers conducted audits together with
Responsible Care Department specialists and local site
administrators to ascertain the progress of initiatives with theaim of enhancing Responsible Care at individual sites.
❷ (6+$XGLWVLQ)LVFDO<HDU
In Japan, Responsible Care Department specialists lead ESH
audits not only at DIC but also at DIC Group companies tocertify initiatives and support efforts to improve performance.
,Q¿VFDO\HDUDXGLWVZHUHFRQGXFWHGDWSULQFLSDO*URXS
sites in Japan, 10 belonging to DIC and four to subsidiary
DIC Graphics. These consisted of systems audits, designed
to verify management levels; site inspections, which focus on
frontline facilities; and compliance audits, which are conductedby a third-party consulting firm. These audits helped improve
the level of safety and environmental management, identify
production line hazards and improve compliance with pertinent
laws and regulations. Systems audits were also conducted at
11 sites belonging to eight Group companies other than DIC
Graphics and the SEIKO PMC Group with the aim of enhancing
safety and environmental management.

■ 0DQDJHPHQW6\VWHPV&HUWLÀHG8QGHU,626WDQGDUGV❶ &HUWLÀFDWLRQ8QGHU,62

7KH',&*URXS¶VVLWHVDURXQGWKHZRUOGVHHNFHUWL¿FDWLRQXQGHU
ISO 14001, the International Organization for Standardization’s
standard for environmental management systems. As of
December 31, 2022, DIC Group companies responsible for 78%
of the Group’s production volume had acquired certification
under ISO 14001.
❷ &HUWLÀFDWLRQ8QGHU2+6$6DQGRU,62
For occupational health and safety management systems,
the DIC Group’s sites around the world seek certification
under OHSAS 18001, the Occupational Health and Safety
Assessment Series’ internationally accepted standard, and/or
ISO 45001, the International Organization for Standardization’s
standard, for such systems. In the Asia–Pacific region, forexample, the Group has 17 companies in 10 countries andterritories. In addition to diverse customs and languages, a key
challenge is differences in awareness regarding occupational
health and safety. For this reason, it was crucial to actively
support the implementation of an occupational health andsafety management system regionwide. As of December 31,',&*URXSVLWHVLQWKH$VLD±3DFL¿FUHJLRQKDGHDUQHG
FHUWL¿FDWLRQXQGHU2+6$6DQGRU,62JLYLQJWKH
*URXSLQWKHUHJLRQDFHUWL¿FDWLRQUDWHRI

■ ,QWURGXFWLRQRIWKH'(&6In fiscal year 2019, the DIC Group introduced the DIC ESH
Data Collection System (DECS), a cloud-based system forgathering occupational safety and health, climate change,
water resources, waste and other pertinent ESH-related data
to facilitate the centralized management thereof. The systemtargets more than 70 Group sites in Japan, the PRC and the$VLD±3DFL¿FUHJLRQ,QDGGLWLRQWRPDNLQJWKHFROOHFWLRQSURFHVV
PRUHHI¿FLHQWDQGOHVVODERULQWHQVLYHWKH'(&6KHOSVLPSURYH
WKHUHOLDELOLW\RIGDWDVXEPLWWHGIRUWKLUGSDUW\YHUL¿FDWLRQDIC Group companies in other countries and territories also
undergo ESH audits. In fiscal year 2022, audits were carried
RXWDWVLWHVEHORQJLQJWRFRPSDQLHVLQWKH$VLD±3DFL¿Fregion. Owing to COVID-19, these audits were limited toprincipal sites. In Greater China, audits were conducted at
14 sites belonging to 13 companies. This included three sites
in Taiwan that, because of COVID-19, were implemented
autonomously. In the Americas, Europe and Africa, ESH audits
were conducted at 66 sites belonging to Sun Chemical Group
companies.

■ (6+$XGLWV❶ )UDPHZRUNIRU3URPRWLRQThe DIC Group regularly conducts ESH audits to ensure theeffectiveness of Responsible Care initiatives at Group companies,
plants and R&D facilities. Because these audits assess avariety of factors, in Japan they are carried out by audit teams
composed of Responsible Care Department specialists, theH[HFXWLYHRI¿FHUUHVSRQVLEOHIRUSURGXFWLRQSURGXFWLRQDQG5 '
site administrators, and labor union–endorsed union members.

ESH audits were also implemented at 10 sites around the world
belonging to the SEIKO PMC Group, which manufactures
papermaking chemicals and resins for printing inks andreprographic products. The SEIKO PMC Group audits wereconducted online because of COVID-19.

DIC Report 2023

82

(6+

2XWOLQHRI(6+$XGLWV,PSOHPHQWHGLQ)LVFDO<HDUJapan$XGLWV&RQGXFWHGDW6XEVLGLDULHV·6LWHVLQ)LVFDO<HDU

Overseas

DIC

DIC Graphics

Other domestic DIC
Group companies

Greater China

Asia–Pacific region

10 sites

4 sites

11sites

14 sites

17 sites

Total

31sitesTotal

25 sites

Sun Chemical GroupSEIKO PMC Group66 sites

13 sites■ $GPLQLVWUDWLYH3HQDOWLHV,Q¿VFDO\HDUQRYLRODWLRQVRI5HVSRQVLEOH&DUH±UHODWHG
regulations with a significant financial penalty* were reported
across the global DIC Group.
* Penalty in excess of $10,000.H\'DWD

* *OREDO -DSDQ35&$VLD±3DFL¿FUHJLRQ$PHULFDVDQG(XURSHDQGRWKHUUHJLRQV

7KHPH)LVFDO\HDU)LVFDO\HDU)LVFDO\HDU


9

2.51

3.60

2.23

9

2.29

1.94

0.79

$VLD±3DFL¿FUHJLRQ

9

1.13

0.90

1.21

Americas and Europe

―

5.63

5.33

6.33

Global*

―

3.56

3.69

4.00

Persons/million work Japan
hours
PRC

9

0.55

1.31

0.45

9

1.27

1.45

0.53

,WHP

Occupational safety and health TRIR

Frequency rate for occupational accidents
resulting in workdays lost

Fatalities due to occupational accidents

8QLW%RXQGDU\

Persons/million work Japan
hours
PRC

Persons

Injuries due to occupational accidents resulting Persons
in workdays lost

$VLD±3DFL¿FUHJLRQ

9

0.91

0.79

0.99

Americas and Europe

―

2.96

2.70

3.36

Global*

―

1.79

1.89

2.07

Japan

9

0

0

0

PRC

9

0

0

0

$VLD±3DFL¿FUHJLRQ

9

0

0

0

Americas and Europe

―

0

0

0

Global*

―

0

0

0

Japan

9

5

12

4

PRC

9

5

6

2

9

8

7

9

$VLD±3DFL¿FUHJLRQ

Injuries due to occupational accidents not
resulting in workdays lost

Disaster prevention

Environmental pollution

Persons

7KLUGSDUW\YHULÀFDWLRQAmericas and Europe

―

50

45

70

Global*

―

70

74

89

Japan

9

18

21

16

PRC

9

4

2

1

$VLD±3DFL¿FUHJLRQ

9

2

1

2

Americas and Europe

―

45

44

62

Global*

―

69

71

83

Process safety accidents

Events

Japan

9

4

7

3

Frequency of process safety accidents

Events/Japan
200,000 work hours

9

0.073

0.128

0.050

Emissions of VOCs

Tonnes

Japan

―

327

239

200

Emissions of PRTR-designated chemical
substances (into the air, water and soil)

Tonnes

Japan

―

354

273

234

Emissions of NOx

Tonnes

Japan

―

182

186

172

Emissions of SOx

Tonnes

Japan

―

12.1

8.8

13.3

COD

Tonnes

Japan

―

723

940

854

DIC Report 2023

83

(6+

7KHPH
Total waste,WHP
Volume generated

8QLW
Tonnes(toxic and nontoxic)

Volume discharged by production facilities

Volume recycled

Waste heat recovered

Waste heat not recovered

TonnesTonnesTonnesTonnes(including from incineration)

9ROXPHGLVSRVHGRIDVODQG¿OO

Resource recycling rate

Toxic waste

Volume generated

Tonnes%Tonnes(subject to special control)

Volume discharged by production facilities

Volume recycled

Waste heat recovered

Waste heat not recovered

TonnesTonnesTonnesTonnes(including from incineration)

9ROXPHGLVSRVHGRIDVODQG¿OOFresh water withdrawn

Surface water

Groundwater

Rainwater

Tonnes1,000 m3

1,000 m3

1,000 m3

%RXQGDU\)LVFDO\HDU)LVFDO\HDU)LVFDO\HDU43,90042,914

41,422Japan

9

Overseas―

64,846

64,101

76,851

Global―108,745

107,015

118,273Japan

932,56430,541

31,627

Overseas―

59,792

57,18670,756

Global

―92,35587,727102,383Japan

9

19,034

17,733

16,725

Overseas―

24,59526,856

29,589Global

―43,63044,58946,314Japan

9

20,59820,434

20,849Overseas―

13,45815,832

12,001

Global

―34,05736,26632,850

Japan

9

4,100

4,548

3,675

Overseas

―

7,735

7,847

18,221

Global―11,835

12,394

21,895

Japan

9

167

199

173

Overseas―

19,05814,702

17,041

Global―19,224

14,902

17,214

Japan

9

90%

89%

91%

Overseas

―

59%

67%

54%

Global

―

71%

76%

67%

Japan

9

7,170

7,660

8,268

Overseas―

33,83237,93847,546

Global

―41,00245,59755,815

Japan

9

5,583

6,136

7,069

Overseas―

28,82031,06841,495Global

―34,402

37,20348,564

Japan

9

2,623

2,522

2,945

Overseas―

14,415

16,214

18,952Global

―17,03818,736

21,897

Japan

9

4,291

4,212

4,597

Overseas―

11,515

15,671

9,935

Global

―15,806

19,883

14,532

Japan

9

234

898

707

Overseas

―

5,856

3,623

15,375Global

―

6,090

4,521

16,083

Japan

9

22

28

19

Overseas

―

2,046

2,430

3,283

Global

―

2,068

2,458

3,303

Japan

9

9,168

8,922

9,789

Overseas

―

5,195

4,372

19,699Global

―14,364

13,29329,487

Japan

9

6,585

6,505

6,403

Overseas

―

1,799

1,840

2,278

Global

―

8,383

8,345

8,681

Japan

9

0

0

0

Overseas

―

129

191

163

Global

―

129

191

163

DIC Report 2023

84

7KLUGSDUW\YHULÀFDWLRQ

(6+

7KHPH
Fresh water withdrawn,WHP
Wastewater generated by otherorganizations

Tap water/industrial water

Others

Total

Wastewater discharged

Rivers

OceansWastewater treatment plants

Below ground

Third parties

Others

Total

Water consumed

ISO 14001

Total$FTXLVLWLRQRIFHUWL¿FDWLRQ%RXQGDU\

8QLW

Japan

1,000 m3

1,000 m3

1,000 m3

1,000 m3

1,000 m3

1,000 m3

1,000 m3

1,000 m3

1,000 m3

1,000 m3

1,000 m3

1,000 m3%

9

)LVFDO\HDU)LVFDO\HDU)LVFDO\HDU


0

0

0

Overseas

―

0

0

0

Global

―

0

0

0

Japan

9

11,134

12,178

11,441

Overseas

―

2,427

2,153

4,771

Global

―13,562

14,331

16,212

Japan

9

15

20

19

Overseas

―

70

77

47

Global

―

85

96

66

Japan

9

26,902

27,62527,651

Overseas

―

9,621

8,632

26,957

Global

―36,52436,25754,608Japan―

15,371

15,126

15,879Overseas

―

2,013

2,204

2,067

Global

―17,384

17,33017,946

Japan

―

6,763

7,341

6,888

Overseas

―

0

1

0

Global

―

6,763

7,342

6,888

Japan

―

3,084

3,627

3,367

Overseas

―

832

888

750

Global

―

3,915

4,515

4,117

Japan

―

2

1

1

Overseas

―

6

7

7

Global

―

8

8

8

Japan

―

0

0

0

Overseas

―

0

0

0

Global

―

0

0

0

Japan

―

0

0

0

Overseas

―

4,867

3,380

22,077

Global

―

4,867

3,380

22,077

Japan―

25,22026,094

26,135

Overseas

―

7,717

6,481

24,901

Global

―32,93732,57451,036

Japan

―

1,683

1,531

1,516

Overseas

―

1,904

2,151

2,056

Global

―

3,587

3,682

3,572

Global

―

79%

79%

78%

DIC Report 2023

85

7KLUGSDUW\YHULÀFDWLRQClimate Change

3UHYHQWLQJ*OREDO:DUPLQJ

SDGs Goals 7 and 13

Basic Approach
The DIC Group works to reduce CO2 emissions over the entire life cycle of its products and, through its business activities,
WRORZHUULVNVDVVRFLDWHGZLWKFOLPDWHFKDQJH
7KH',&*URXSFRPSULVHVFRPSDQLHVLQFRXQWULHVDQGWHUULWRULHVThe Group is committed to working as one to cut emissions to ensure
DFKLHYHPHQWRIWKLVWDUJHW3ULRUWRWKLVLQ0D\WKH*URXSGHFODUHG
its support for the Task Force on Climate-related Financial Disclosures(TCFD),*2 pledging to disclose climate-related information in line with the7&)'UHFRPPHQGDWLRQV■ Initiatives Aimed at Preventing Global Warming
In line with its goal of contributing to the realization of sustainability for the
global environment and for society, in June 2021 the DIC Group announced
DIC NET ZERO 2050, which sets a target of achieving carbon neutrality—
net zero CO2HPLVVLRQV 6FRSHDQG ²E\¿VFDO\HDU,Q-DQXDU\2023, the Group’s CO2 emissions target received official endorsementfrom the Science Based Targets initiative (SBTi),*1 which was establishedwith the purpose of driving CO2HPLVVLRQVUHGXFWLRQLQWKHSULYDWHVHFWRU
(Information regarding the impact of the acquisition of the Colors & Effects
SLJPHQWVEXVLQHVVZLOOEHFRPPXQLFDWHGWRWKH6%7LJRLQJIRUZDUG 

Goals and Achievements of Major Initiatives
Objective of initiatives*1 The SBTi is a partnership that encourages companies to set science-based greenhouse gas emissions
UHGXFWLRQWDUJHWVWKDWDUHLQOLQHZLWKWKHJRDORIWKH3DULV$JUHHPHQW7KH6%7LHQGRUVHVWDUJHWVVHWE\FRPSDQLHVIRUWKHQH[W¿YHWR\HDUVDV³VFLHQFHEDVHG´LIWKH\DUHFRQVLVWHQWZLWKZKDWFOLPDWHVFLHQFHVD\V
is necessary to limit average global warming to well below 2°C above pre-industrial levels and the pursuit of a
OLPLWRI&*2 The TCFD was established under the auspices of the Financial Stability Board and announced in June 2017with the objective of mitigating climate-related risks in financial markets that have the potential to affect
SHUIRUPDQFHRYHUWKHPHGLXPWRORQJWHUP(YDOXDWLRQVDUHEDVHGRQVHOIHYDOXDWLRQVRIFXUUHQWSURJUHVV.H\★★★ = Excellent; ★★ = Satisfactory; ★ = Still needs work

Goals for fiscal year 2022

Achievements in fiscal year 2022

DIC Group (global):
Reduce CO 2 emissions at DIC
Group sites (Scope 1 and 2) by 50%
from the fiscal year 2013 level by
fiscal year 2030 (average annual
GHFUHDVHRI 

DIC Group (global):
CO2 emissions: 720,444 tonnes
'RZQIURPILVFDO\HDU WRQQHV* Fiscal year 2013 emissions were calculated
including an estimate for the Colors & Effects
SLJPHQWVEXVLQHVVIRUWKDW\HDUDIC Group (Japan):
Reduce energy consumption per
XQLWRISURGXFWLRQE\IURPWKH
fiscal year 2013 level by fiscal year
2030 (average annual decrease of 

DIC Group (Japan):
Energy consumption per unit of
SURGXFWLRQ*-WRQQH
8SIURPILVFDO\HDU *-WRQQH
'RZQIURPILVFDO\HDU *-WRQQH

Reduce CO 2 emissions at
VLWHV 6FRSHDQG 

Evaluation

Goals for fiscal year 2023★★

DIC Group (global):
Reduce CO 2 emissions at DIC
Group sites (Scope 1 and 2) by 50%
from the fiscal year 2013 level by
fiscal year 2030 (average annual
GHFUHDVHRI ★

DIC Group (Japan):
Reduce energy consumption per
XQLWRISURGXFWLRQE\IURPWKH
fiscal year 2013 level by fiscal year
2030 (average annual decrease of 

Reference:
CO2HPLVVLRQVSHUXQLWRISURGXFWLRQLQ¿VFDO\HDU',&*URXSLQ-DSDQNJWRQQH
'RZQIURP¿VFDO\HDU NJWRQQH
'RZQIURP¿VFDO\HDU NJWRQQH
FRQGXFWLQJSDWUROV$Q(QHUJ\6DYLQJ:RUNLQJ*URXSKDVDOVREHHQVHW
■ Framework for Promotion
up at each site comprising members selected by the site itself to foster theexchange of information and research pertaining to new energy-saving
The DIC Group works to reduce CO 2 emissions through its businessmeasures, as well as to advance the horizontal deployment of effective
activities in four regions: Japan, the Americas and Europe (overseen
PHDVXUHVDFURVVGRPHVWLF*URXSVLWHV7KLVFRPELQDWLRQRIVLWHDQG
E\6XQ&KHPLFDO WKH$VLD±3DFLILFUHJLRQDQG*UHDWHU&KLQD'HVSLWH
Group-level initiatives forms the framework under which the DIC Groupdifferences in energy requirements and access to renewable energy
endeavors to reduce its CO2HPLVVLRQVdepending on region and site location, the Group is committed to working
as one to ensure it achieves its target of reducing its Scope 1 and 2 CO2
In the Americas and Europe, Sun Chemical is promoting efforts to reduce
HPLVVLRQVE\IURPWKH¿VFDO\HDUOHYHOE\¿VFDO\HDU
its CO2 emissions, a considerable challenge with the expansion of its
Recognizing climate change as a critical social imperative, the DIC Group
operating scale owing to the integration of the Colors & Effects pigments
is working to reduce CO2HPLVVLRQVIURPLWVVLWHV,PSRUWDQWPHDVXUHVEXVLQHVV,QWKH$VLD±3DFL¿FUHJLRQDQG*UHDWHU&KLQD*URXSFRPSDQLHVare encouraging a variety of independent energy-saving initiatives that alignare proposed to the Sustainability Committee to be deliberated and
ZLWKUHODWHG*URXSSROLFLHV',&¶V3URGXFWLRQ0DQDJHPHQW8QLWSURYLGHV
GHWHUPLQHG',&DQG',&*URXSFRPSDQLHVLQ-DSDQKDYHHVWDEOLVKHGDQVXSSRUWRQPXOWLSOHIURQWVLQFOXGLQJPDQDJLQJRYHUDOOSURJUHVV(QHUJ\6DYLQJ3URPRWLRQ&RPPLWWHHDWHDFKVLWH&RPPLWWHHDFWLYLWLHVLQFOXGHFRQ¿UPLQJWKHSURJUHVVRILQLWLDWLYHVHQJDJLQJLQGLVFXVVLRQVDQG
DIC Report 2023

86

Climate Change

Principal Efforts❶ 8QGHUWDNHHQHUJ\VDYLQJLQLWLDWLYHV*URXSZLGH
❷ 3URPRWH';WRRSWLPL]HHQHUJ\PDQDJHPHQWIRUSURGXFWLRQDQGXWLOLW\HTXLSPHQW
❸ $FWLYHO\HVWDEOLVKHQHUJ\VDYLQJIDFLOLWLHVLQFOXGLQJHI¿FLHQWFRJHQHUDWLRQV\VWHPVDQGQHW]HURHQHUJ\EXLOGLQJV =(%V ❹ (PSOR\HQHUJ\IURPUHQHZDEOHVRXUFHV²HJELRPDVVERLOHUVZLQGSRZHUDQGQHWVRODUSRZHU²DWVXLWDEOHVLWHV
❺ Conduct energy-saving analyses and support the deployment of energy-saving initiatives at DIC Group companies, including those in other
FRXQWULHVDQGWHUULWRULHV
❻ :KHQLQVWDOOLQJRUH[SDQGLQJIDFLOLWLHVSXUSRVHIXOO\VHOHFWHQHUJ\HI¿FLHQWRSWLRQVDQGIRUPXODWHUHODWHGUXOHVLQFOXGLQJIRULQYHVWPHQWLQ
HQYLURQPHQWDOYDOXHDQGWKHLQWURGXFWLRQRILQWHUQDOFDUERQSULFLQJ

elements of how organizations operate—governance, strategy, risk management,
DQGPHWULFVDQGWDUJHWV7KH',&*URXSLVHQKDQFLQJLWVHIIRUWVWRUHVSRQG
appropriately to risks and capitalize on opportunities associated withclimate change with the objective of earning the trust of stakeholders
WKURXJKLPSURYHGUHVLOLHQFHDQGWKHSURDFWLYHGLVVHPLQDWLRQRILQIRUPDWLRQ■ Disclosure in Line with the TCFD Recommendations:LWKWKHDLPRIKHOSLQJLQVWLWXWLRQDOLQYHVWRUVJUDVSFOLPDWHUHODWHGULVNVDQG
opportunities and reflect this in their investment decisions, the TCFD has
structured its recommendations around four thematic areas that represent core

TCFD Recommendations for Financial Disclosures
Governance

Strategy

Risk management

Metrics and targets

Governance around climate-relatedrisks and opportunities

Actual and potential impacts of climaterelated risks and opportunities on
EXVLQHVVHVVWUDWHJ\DQG¿QDQFLDOSODQQLQJ

3 U R F H V V H V  X V H G  W R  L G H Q W L I \assess and manage climaterelated risks

0HWULFVDQGWDUJHWVXVHGWRDVVHVV
and manage relevant climate-relatedrisks and opportunities

competitiveness are expected to transform the socioeconomic system
JRLQJIRUZDUG',&LVSURPRWLQJVXVWDLQDEOHEXVLQHVVVWUDWHJLHV
recognizing the importance of risks and opportunities associated with
FOLPDWHFKDQJH%HFDXVHWKHLPSDFWVRIFOLPDWHFKDQJHDUHOLNHO\
to surface over the medium to long term, the Company is working toenhance its understanding of the principal climate-related risks andopportunities (transition as well as physical) that are likely to have a¿QDQFLDOLPSDFWRYHUWKHPHGLXPWRORQJWHUP

❶ Governance

The DIC Group recognizes climate change as a key management
FKDOOHQJH,PSRUWDQWPDWWHUVLQFOXGLQJWKHVHWWLQJRIPHGLXPDQG
long-term targets for the reduction of CO2 emissions, are deliberated
and determined by the Sustainability Committee, which meets fourtimes annually and answers directly to the president and CEO, andthe details are reported to the Board of Directors, in line with theUXOHVJRYHUQLQJWKH%RDUGRI'LUHFWRUV ,QSULQFLSOHWKH6XVWDLQDELOLW\&RPPLWWHHUHSRUWVWRWKH%RDUGRI'LUHFWRUVRQDOORILWVGHOLEHUDWLRQV 
A system is thus in place that ensures appropriate supervision of the
6XVWDLQDELOLW\&RPPLWWHHLVSURYLGHGE\WKH%RDUGRI'LUHFWRUVBased on scenario analysis conducted in fiscal year 2020, theCompany will work to raise its awareness of foreseeable opportunities
and risks from a medium- to long-term perspective and at the sametime to formulate and execute effective strategies on an appropriate
WLPHOLQH,QILVFDO\HDU',&DOVRHVWDEOLVKHGWKH&OLPDWH
Change Subcommittee, which is tasked with helping facilitate theachievement of net zero CO2HPLVVLRQVE\ILVFDO\HDU7KH
activities of the subcommittee are reported to and debated by the
6XVWDLQDELOLW\&RPPLWWHH

To appropriately assess and manage climate change–related risks
and opportunities, thereby ensuring the effective management of its
operations, the Sustainability Committee consists of the president and&(2WKHJHQHUDOPDQDJHUVRIWKH3URGXFWLRQ0DQDJHPHQW8QLWDQG
7HFKQLFDO0DQDJHPHQW8QLWDQGWKHKHDGVRIWKH&RUSRUDWH6WUDWHJ\
8QLW*HQHUDO$IIDLUVDQG/HJDO8QLW)LQDQFHDQG$FFRXQWLQJ8QLWDQG(6*8QLWDVZHOODVWKHSUHVLGHQWVRIWKHEXVLQHVVJURXSVDQG
WKHJHQHUDOPDQDJHUVRIWKHSURGXFWGLYLVLRQVKey Risk Management Perspectives

Principal Climate Change–Related Issues Deliberated by the
Sustainability Committee in Fiscal Year 2022
Fiscal year

① Should carbon pricing or carbon border taxes be introduced in the future,
WKHUHLVDULVNWKDWUDZPDWHULDOVIXHODQGHOHFWULFSRZHUSULFHVZLOOULVHDQG
or that taxes will be imposed on exported products, making CO2 emissions
DIDFWRUWKDWGLUHFWO\DIIHFWVFRVWV

Principal issues② Should the Group be unable to respond to any sudden changes in demand
resulting from the shift to a circular economy to advance decarbonization,
there is a risk of a significant decline in profits generated by its businesses
FOLPDWHFKDQJH±UHODWHGWUDQVLWLRQULVN 

Report on and evaluation of sustainability initiatives in¿VFDO\HDU
2022

Submission of CO2 emissions reduction target forendorsement by the SBTi

③ Should climate-related disasters arising from the increasing seriousness or
frequency of extreme weather events occur, resulting in product supplies
becoming impossible or being delayed due to the suspension of operationsat production facilities and the instability of raw materials supplies, there isa risk that it will cause a significant decline in profits generated by Group
EXVLQHVVHVRUWKUHDWHQEXVLQHVVFRQWLQXLW\ H[WUHPHSK\VLFDOULVN 

Consideration of the purchase of green power❷ Strategy:LWK SUHVVXUH RQ WKH JOREDO FRPPXQLW\ WR DFKLHYH FDUERQ
neutrality by 2050 intensifying rapidly, changes to rules governing

DIC Report 2023

87

Climate Change

Principal Climate-Related Risks
Type

Description

Emerging regulations (Transition)

7KHUHLVDULVNWKDWHPHUJLQJUHJXODWLRQV HJWKHLQWURGXFWLRQRIFDUERQSULFLQJ ZLOOLQFUHDVHGLUHFWFRVWVDQGLPSDFWRQWKHRSHUDWLQJHQYLURQPHQWSUR¿WDELOLW\ HJIDFLOLW\FRVWVDQGUDZPDWHULDOVSULFHV 

Technology (Transition):LWKWHFKQRORJLFDOLQQRYDWLRQVWKHUHLVDULVNRISURGXFWVDQGVHUYLFHVEHFRPLQJREVROHWHDQGGHPDQGGHFOLQLQJ

0DUNHW 7UDQVLWLRQ

7KHUHLVDULVNWKDWDQLQVXI¿FLHQWJUDVSRIHYROYLQJFXVWRPHUFRQVXPHUSUHIHUHQFHVZLOOPHDQWKHORVVRIPDUNHWRSSRUWXQLWLHV7KHUHLV
DOVRDULVNWKDWEXVLQHVVHVZLOOVKULQNLIGHPDQGUHODWHGWRWKHUHDOL]DWLRQRIDFLUFXODUHFRQRP\FDQQRWEHPHW

0DUNHW 7UDQVLWLRQ

7KHUHLVDULVNWKDWEXVLQHVVHVZLOOEHDIIHFWHGLQFOXGLQJWKURXJKWKHORVVRIFRPPHUFLDOULJKWVLIUDSLGO\H[SDQGLQJPDUNHWFXVWRPHU
GHPDQGIRUSURGXFWVZLWKDUHGXFHGFDUERQIRRWSULQWFDQQRWEHPHW

Reputation (Transition),I',&¶VDWWLWXGHWRZDUGDQGDELOLW\WRUHVSRQGWRFOLPDWHFKDQJHLVVHHQE\H[WHUQDOREVHUYHUVDVLQVXI¿FLHQWIRUDPDQXIDFWXUHURI¿QH
FKHPLFDOVWKHUHLVDULVNWKDWLWVUHSXWDWLRQZLOOVXIIHU

$FXWH 3K\VLFDO

6KRXOGH[WUHPHZHDWKHUHYHQWVEHFRPHPRUHIUHTXHQWWKHUHLVDULVNWKDWRSHUDWLRQVDWSURGXFWLRQVLWHVZLOOEHDIIHFWHG

&KURQLF 3K\VLFDO,IWHPSHUDWXUHVUHPDLQSHUVLVWHQWO\KLJKWKHUHDUHULVNVRILQFUHDVHGSURGXFWLRQVLWHPDLQWHQDQFHDQGRSHUDWLQJFRVWVDQGRIGDPDJHWRKHDOWK8SVWUHDP 3K\VLFDO,QDGGLWLRQWRDULVNRIXQFHUWDLQW\UHJDUGLQJWKHVXSSO\RIUDZPDWHULDOVPRQRSROL]HGE\FHUWDLQVXSSOLHUVWKHUHDUH%&3ULVNVDQGULVNVWKDWFRVWVPD\LQFUHDVHGXHWRDPRQJRWKHUVULVLQJSULFHVIRUIXHODQGHOHFWULFSRZHURUWRWKHLPSRVLWLRQRIWD[HVRQH[SRUWHGSURGXFWVPrincipal Climate-Related Opportunities
Type

Description

Emerging regulations (Transition):LWKHPHUJLQJUHJXODWLRQVWKHUHLVDQRSSRUWXQLW\WRHVWDEOLVKQHZEXVLQHVVPRGHOVWKDWGHPRQVWUDWHWKHVXSHULRULW\RI',&¶VEXVLQHVVHV

Technology (Transition)

7HFKQRORJLFDOLQQRYDWLRQSURYLGHVRSSRUWXQLWLHVWRFUHDWHQHZORZFDUERQGHFDUERQL]HGEXVLQHVVHVWKDWUHVSRQGWRFOLPDWHFKDQJHDQG
WRLQFUHDVHSURGXFWFRVWFRPSHWLWLYHQHVVWKURXJKWKHXVHRIUHYROXWLRQDU\WHFKQRORJLHVWRLPSURYHSURFHVVHV0DUNHW 7UDQVLWLRQSK\VLFDO$FFXUDWHO\JUDVSLQJHYROYLQJFXVWRPHUFRQVXPHUSUHIHUHQFHV²HJVKLIWWRORZFDUERQEXVLQHVVPRGHOVFKDQFHWKDWFHUWDLQH[LVWLQJ
EXVLQHVVHVZLOOEHDYRLGHG²SURYLGHVWKHRSSRUWXQLW\WRGHYHORSQHZSURGXFWVDQGVHUYLFHVWKDWDQWLFLSDWHOLIHVW\OHFKDQJHV8SVWUHDPGRZQVWUHDP 7UDQVLWLRQSK\VLFDO

Addressing climate change (adaptation and mitigation) over products’ entire life cycles through organic collaboration with customers
DQGVXSSOLHUVSURYLGHVWKHRSSRUWXQLW\WRFUHDWHQHZEXVLQHVVHVDQGV\VWHPVStrategies for Reducing CO2 Emissions

CO2 Emissions by the Global DIC Group (Scope 1 and 2)

As an organization with a CO 2 emissions reduction
target, the DIC Group will promote a variety of related
LQLWLDWLYHVDVRXWOLQHGEHORZ7KH*URXSFXUUHQWO\SODQVto make environmental investments of approximately
ELOOLRQLQ-DSDQEHWZHHQ¿VFDO\HDUVDQG

Deployment ofenergy-saving initiatives

Shift to green
power generation

1,000

CO2 emissions (kt-CO2)

Notes:
 In Japan, Scope 1 CO2 emissions are calculated using emissions factors
VHWE\WKHFRXQWU\¶V0LQLVWU\RIWKH(QYLURQPHQW,QRWKHUUHJLRQVScopeHPLVVLRQVDUHFDOFXODWHGXVLQJHPLVVLRQVIDFWRUVVHWE\WKH8QLWHG
6WDWHV(QYLURQPHQWDO3URWHFWLRQ$JHQF\ (3$  ,Q -DSDQ S cope 2 emissions—attributable to the consumption ofpurchased electric power—are calculated using emissions factors ofelectric power utilities with which Group companies have contracts
or, in cases where such data is not available, using emissions factors
VHWE\WKHFRXQWU\¶V0LQLVWU\RIWKH(QYLURQPHQW6FRSHHPLVVLRQVLQ
1RUWK$PHULFDDUHFDOFXODWHGXVLQJWKH(3$¶V(PLVVLRQV *HQHUDWLRQResource Integrated Database (eGRID), while those in other regions arecalculated using emissions factors set by the International Energy Agency,($ 

Environmental
investments
1,200−21.8%

800−50%

Business
growth600

400

Implementation of initiatives
to reduce CO2 emissions

200

0
2013

2022

2030 (FY)

Scenario Analysis
Scenario information

2ºC scenario

4ºC scenario

Scenario details%DVHGRQWKH,($¶V:RUOG(QHUJ\2XWORRN :(2 6XVWDLQDEOH'HYHORSPHQW6FHQDULRDQG
(QHUJ\7HFKQRORJ\3HUVSHFWLYHV (73 &VFHQDULR%DVHGRQWKH,QWHUJRYHUQPHQWDO3DQHORQ&OLPDWH&KDQJH ,3&& 
5HSUHVHQWDWLYH&RQFHQWUDWLRQ3DWKZD\ 5&3 Time frame

2030

2030

Carbon price assumptionWRQQH—

DIC Report 2023

88

Climate Change

Results of Scenario Analysis

Opportunity

Implications for society andthe business environment

Risk

Risk and opportunity assessment

3RVVLEOHGLUHFWLPSDFWRQPDQXIDFWXULQJFRVWVELOOLRQ(Annual CO2HPLVVLRQVLQ¿VFDO\HDUWRQQHV
&VFHQDULRStrengthening of policies
and regulations

Introduction of carbon pricing (direct
implications for manufacturing and the
procurement of raw materials)

Reference:
3RVVLEOHLPSDFWRQSURFXUHPHQWFRVWVELOOLRQ $QQXDO
CO2 emissions 6FRSH&DWHJRU\ LQ¿VFDO\HDU
WRQQHV

Global movement to minimize use of oneway plastics and efforts by brand owners
seeking to reduce packaging

Demand for some plastics (one-way plastics) will decrease,
but increased demand for plastic alternatives will mean only anegligible impact on materials suitable for applications other
WKDQSODVWLFVIncrease in production and sales ofrecycled plastics:KLOHLWLVXQFOHDUZKDWZLOOKDSSHQYLVjYLVGHPDQG
changes, a failure to launch commercial distribution will
PHDQWKHORVVRIIXWXUHPDUNHWRSSRUWXQLWLHV&VFHQDULR
Changes in demand attributableto circular economy

DIC Group countermeasures• Take steps to maintain cost competitiveness, assuming global
LQWURGXFWLRQ 3URPRWHHQKDQFHGIXQFWLRQDOLW\WRPLQLPL]HWKHLPSDFWRI
carbon pricing in key businesses, including products forautomotive, electronics and display applications and for
KHDOWKFDUHDVZHOODVSLJPHQWVIRUFRVPHWLFV• 8VHWKH',&6XVWDLQDELOLW\,QGH[WRSURPRWHSURGXFWVWKDWKHOS
reduce CO2HPLVVLRQV LHDUHVXVWDLQDEOH • &DSLWDOL]HRQULVLQJGHPDQGIRU336FRPSRXQGVXQGHUSLQQHG
E\H[SDQGHGDXWRPRELOHSURGXFWLRQDQGWKHVKLIWWR(9V• 3URPRWHFRUHSURGXFWVDVDSSURSULDWHIRUXVHZLWKERWKSODVWLFVand plastic-alternative materials; differentiate with barrier and other
IXQFWLRQV• Foster businesses that respond to demand for materials that
DUHELRGHJUDGDEOHDQGRUXVHELRGHULYHGUDZPDWHULDOV• Seek tie-ups with customers and step up exploration of chemical
DQGPDWHULDOVUHF\FOLQJ

• Focus on adding value, including by advancing innovations in
PDWHULDOVDQGIRUPXODWLRQVWKDWHQKDQFHUHF\FODELOLW\Introduction of energy-saving and renewableenergy equipment
&VFHQDULR
Reduction of CO2 emissions
attributable to manufacturing

&VFHQDULR
Risk that operations at
production facilities will beinterrupted due to an increase
in climate-related disasters

&VFHQDULR
Response to changes inlifestyles attributable torising temperatures

Ongoing efforts to reduce CO2 emissions attributable to
SURGXFWLRQZLOODOVREHQHFHVVDU\• Continue investing in energy-saving and renewable energy
equipment with the aim of achieving the target for reducing
6FRSHDQGHPLVVLRQVE\IURPWKH¿VFDO\HDUOHYHOE\¿VFDO\HDU
• The reduction of CO2 emissions is expected to reduce costs
E\DQDYHUDJHRIELOOLRQDQQXDOO\EHWZHHQ¿VFDO\HDUV2013 and 2030 (estimated annual emissions reduction:WRQQHV 

Efforts to reduce CO2 emissions enough to keep the increase
LQJOREDODYHUDJHWHPSHUDWXUHRYHUWKHFXUUHQWFHQWXU\WR&
IURPWKHSUHLQGXVWULDOOHYHODUHDOUHDG\XQGHUZD\7KHUHLV
an increased risk that this target will be imposed across entire
VXSSO\FKDLQV• Consider the setting of a new science-based target conducive to
NHHSLQJWKHLQFUHDVHLQJOREDODYHUDJHWHPSHUDWXUHWR&• Apply internal carbon pricing system to increase investment inenergy savings and improve CO2HPLVVLRQVUHGXFWLRQSHUIRUPDQFH

 6WDEOHSURFXUHPHQWULVNVDIIHFWFHUWDLQEXVLQHVVHVLHWKRVH
dependent on raw materials procured overseas or monopolized
E\FHUWDLQVXSSOLHUV• For most products, coordination among departments will
IDFLOLWDWHWKHXVHRIDOWHUQDWLYHUDZPDWHULDOV• For key raw materials, promote two-company shared procurementLQPXOWLSOHUHJLRQVDQGHQKDQFH%&3UHVSRQVHV• For key products, ensure ample inventories of raw materialsDQGSURGXFWV 3URGXFWLRQVLWHVDUHVFDWWHUHGDFURVVWKHJOREHVRLPSDFWRQRYHUDOORSHUDWLRQVLVOLPLWHG&HUWDLQSURGXFWVIRUZKLFKproduction is concentrated at certain facilities may be
DIIHFWHG
• Countermeasures are required in areas where there are
FRQFHUQVWKDWZDWHUUHODWHGULVNVZLOOLQFUHDVH

 /RFDWHSULQWLQJLQNVDQGRWKHUSURGXFWLRQIDFLOLWLHVDURXQGWKHZRUOGto ensure complementary capabilities and cooperate with othercompanies to minimize the impact in the event port facilities are
GDPDJHGGXHWRVWRUPVXUJHVRUÀRRGLQJ
 6WUHQJWKHQPHDVXUHVIRUVLWHVORFDWHGLQFRDVWDODUHDV5HLQIRUFH
WKHHIIHFWLYHQHVVRI%&3VE\SURYLGLQJUHODWHGWUDLQLQJ ,PSOHPHQWPHDVXUHVWRDGGUHVVZDWHUUHODWHGULVNV

Increases in non-life insurance fees

,QVXUDQFHSUHPLXPVPD\LQFUHDVH

• Bolster profitability by reinforcing and expanding portfolio of
VXVWDLQDEOHSURGXFWVChanges in lifestyles and consumption
patterns attributable to rising temperaturesand resulting changes in demand• Demand for certain products may be affected by changing
consumption patterns attributable to rising temperatures,
but because demand sources are diverse the risk to overall
EXVLQHVVLVORZ
• The potential for increases in new demand as a consequenceof changes in lifestyles attributable to rising temperatures is
KLJK

• Rising temperatures present an opportunity in the form of increased
GHPDQGIRUWKHUPDOEDUULHU±UHODWHGSURGXFWV• Given that dietary preferences are also expected to change,
capitalize on expanding demand from beverage manufacturers and
IRUPDWHULDOVXVHGLQIUR]HQIRRGV• Take advantage of higher demand in the health foods and life
VFLHQFHV¿HOGVDWWULEXWDEOHWRLQFUHDVLQJKHDOWKFRQVFLRXVQHVVShift of focus to the achievement of net
zero CO2 emissions by fiscal year 2050

&VFHQDULR
Risk that supply chains will beinterrupted due to an increase
in climate-related disasters

Annual investment in energy-saving and renewable energy
HTXLSPHQWLVHVWLPDWHGDWELOOLRQ GLUHFWLPSDFWRQPDQXIDFWXULQJFRVWV 

Suspension of production at suppliers’
facilities due to frequent climate-related
disasters
Suspension of supplies of plant-derived
raw materials

Suspension of production at own facilities
due to frequent climate-related disasters
Depletion of groundwater resources

7KHVH¿JXUHVDUHEDVHGRQUHVXOWVLQ¿VFDO\HDUWKH\HDUWKHVFHQDULRDQDO\VLVZDVFRQGXFWHG$V&22HPLVVLRQVLQ¿VFDO\HDUDPRXQWHGWRWRQQHVWKHLPSDFWRIFDUERQSULFLQJXQGHUWKHVDPHFRQGLWLRQVZRXOGEHDVPXFKDVELOOLRQ

Initiatives for Fiscal Years 2020–2023● ,QWURGXFHLQWHUQDOFDUERQSULFLQJ
Quantify climate change risk and provide economic incentives for reducing CO2 emissions to accelerate the promotion of investments and innovations to
IXUWKHUDGYDQFHHPLVVLRQVUHGXFWLRQV,Q¿VFDO\HDULQWURGXFHLQWHUQDOFDUERQSULFLQJIRUQHZLQYHVWPHQWSURMHFWVDVDQLQWHUQDOIUDPHZRUNIRUIDFWRULQJ
the cost of related CO2HPLVVLRQVLQWRHVWLPDWHVRILQYHVWPHQWEHQH¿WV
● 3URPRWHIXOOVFDOHFROODERUDWLRQZLWK)3&RUSRUDWLRQ )3&2 LQWKHSUDFWLFDOLPSOHPHQWDWLRQRIDFORVHGORRSUHF\FOLQJV\VWHPIRUSRO\VW\UHQHXVHGLQSODVWLF
FRQWDLQHUVIRUIRRGSURGXFWVDPRQJRWKHUV
● (VWDEOLVKWKH&OLPDWH&KDQJH6XEFRPPLWWHHLPSOHPHQWYDULRXVPHDVXUHVDQGDQQRXQFHQHZWDUJHWVIRUDFKLHYLQJFDUERQQHXWUDOLW\E\¿VFDO\HDU
● 5DLVHIXQGVWKURXJKVXVWDLQDEOH¿QDQFH
● %XLOG=(%V*URXSFRPSDQ\',&.\XVKX3RO\PHU&R/WGFRPSOHWHGDQHZRI¿FHEXLOGLQJWKDWHPSOR\V=(%FRPSOLDQWFRQVWUXFWLRQPHWKRGV7KHQHZEXLOGLQJKDVHDUQHGFHUWL¿FDWLRQXQGHUWKHKLJKHVWRIIRXU=(%VHULHV¶UDQNV
● (PEDUNRQHIIRUWVWRUHGXFHWKHFDUERQIRRWSULQWRISURGXFWVDIC Report 2023

89

Climate Change

One successful project aimed at cutting fossil fuel use in
fiscal year 2022 was the installation of a thermal oxidizer on
WKHSUHPLVHVRI6XQ&KHPLFDO¶VIDFWRU\LQ&DOHSSLR0LODQLQ
Italy, that controls the emission of waste solvent vapor into the
DWPRVSKHUH7KLVXQLWFRQFHQWUDWHVZDVWHVROYHQWHPLVVLRQVLQD]HROLWHEHGVLJQL¿FDQWO\ORZHULQJWKHDPRXQWRIQDWXUDOJDV
required for its operation, facilitating an annual decrease in CO2
HPLVVLRQVRIWRQQHV$WLWV2VWHURGHVLWHLQ*HUPDQ\Sun Chemical installed a large-scale photovoltaic array thatsignificantly reduces the amount of purchased electric power
UHTXLUHGIRUSURGXFWLRQDWWKHVLWH7KLVZLOOORZHUDQQXDO&22
HPLVVLRQVE\WRQQHV*RLQJIRUZDUG6XQ&KHPLFDOZLOO
step up its green procurement plan, which combines efforts topurchase green power and use green power generated on-site,WRIXUWKHUUHGXFHLWVFDUERQIRRWSULQWRegional Initiatives in Fiscal Year 2022
Japan
The bulk of renewable energy used by DIC Group companies
in Japan is natural energy generated by a biomass boiler, as
ZHOODVZLQGDQGVRODUSRZHUIDFLOLWLHVDWWKH.DVKLPD3ODQW,Q
¿VFDO\HDUWKH',&*URXSLQ-DSDQXVHG*-RI
UHQHZDEOHHQHUJ\ HTXLYDOHQWWRNORIFUXGHRLO XS
IURP¿VFDO\HDUDQGHTXLYDOHQWWRRIWRWDOHQHUJ\VWHDPDQGHOHFWULFSRZHU XVHGE\WKHVHFRPSDQLHVThe use of renewable energy by DIC Group companies inJapan in fiscal year 2022 accounted for a reduction in CO 2
HPLVVLRQVRIWRQQHVHTXLYDOHQWWRRIWKHWRWDODQQXDOUHGXFWLRQDFKLHYHGE\WKH*URXSLQ-DSDQ+LJKOLJKWVRI
the period include the start of operations at a new solar power
IDFLOLW\ZLWKDJHQHUDWLQJFDSDFLW\RIN:DW*URXSFRPSDQ\
6(,.230&¶V0L]XVKLPD3ODQW/RRNLQJDKHDGWKH*URXSZLOO
continue taking decisive steps to advance its use of renewable
HQHUJ\ZLWKWKHDLPRIPHHWLQJLWV',&1(7=(52WDUJHW
Americas and Europe
To reduce its greenhouse gas emissions and contribute toachievement of the goals of DIC Vision 2030, Sun Chemical
KDVIRUPXODWHGDSODQWRVLJQL¿FDQWO\LQFUHDVHLWVSXUFKDVHVRI
green power, while at the same promoting energy savings andreducing its use of fossil fuels, and is advancing a variety of
UHODWHGLQLWLDWLYHV

Greater China',&=KDQJMLDJDQJ&KHPLFDOV&R/WGZDVWKHILUVW',&*URXSFRPSDQ\WRDGRSWDQRQVLWHSRZHUSXUFKDVHDJUHHPHQW8VLQJLWV
URRIDQGRWKHURQVLWHORFDWLRQVPDGHLWSRVVLEOHWRLQVWDOODN:
solar power generating facility without incurring initial investment
costs, greatly contributing to the reduction of CO2HPLVVLRQV

Reduction in Global CO2 Emissions Attributable to the Use ofRenewable Energy

Breakdown of Reduction in Global CO2 Emissions Attributable to
the Use of Renewable Energy in Fiscal Year 2022 (53,885 Tonnes)(Tonnes)(%)

60,0009Wind power

82,683 tonnes

50,000

Solar power
3,865 tonnes

7

13,74140,00013,067 14,113

6

12,777

4

11,037

10,00035,57821,971

37,512 39,742

2Electric power
generatedusing biomass

1

7,277 tonnes

327,8330
2019

Reduction attributable to theuse of heat generated using
renewable energy

2020

2021

2022

(FY)

Total reduction attributable tothe use of renewable energy(Contribution to reduction in CO2 emissions (%))

Reduction attributable to theuse of electric power generatedusing renewable energy

1RWH)RUPRUHLQIRUPDWLRQRQWKHVH¿JXUHVSOHDVHVHH³5HGXFWLRQLQ*OREDO&2 2 Emissions Attributable toWKH8VHRI5HQHZDEOH(QHUJ\ 7RQQHV ´EHORZReduction in Global CO2 Emissions Attributable to the Use ofRenewable Energy (Tonnes/%)
2013

2019

2020

2021

2022

Reduction attributable to the use of heat generated using renewable energy

21,971

27,83335,57837,51239,742

Reduction attributable to the use of electric power generated using renewable energy

11,037

12,777

13,741

13,067

14,113

Total reduction attributable to the use of renewable energy

33,00840,611

49,31950,57953,855

Reduction attributable to the use of renewable energy (%)

4.5%

6.4%

8.2%

7.9%

7.0%

703,443

593,093551,049 588,985

720,444

Total global CO2 emissions

Decrease in Global
CO2 Emissions
Attributable to the Use ofRenewable Energy

53,855 tonnes
Heat generatedusing biomass

0

2013

288 tonnes

530,00020,000

Small hydroelectric
power

DIC Report 2023

90

39,742 tonnes

Climate Change

Reduction in Global CO2 Emissions Attributable to the Use ofRenewable Energy (Tonnes/%) (Continued)

Reduction attributable to the use of heat generated using biomass

2019

2020

2021

2022

Change fromprevious fiscal year

27,83335,57837,51239,742

5.9%

Reduction attributable to the use of electric power generated using biomass

7,847

7,739

6,542

7,277

11.2%

Reduction attributable to the use of solar power

2,956

3,574

3,703

3,865

4.4%

Reduction attributable to the use of wind power

1,765

2,025

2,451

2,683

9.5%

209

403

371

288

-22.4%

40,611

49,31950,57953,855

6.5%

Reduction attributable to the use of small hydroelectric power
Total reduction attributable to the use of renewable energy

The use of renewable energy in fiscal year 2022 accounted for
a 7.0% reduction in global CO2 emissions by the DIC Group.
This is calculated by dividing the total reduction in CO2 emissions
attributable to the use of renewable energy by the aggregate ofglobal CO2 emissions plus the total reduction in CO 2 emissions
attributable to the use of renewable energy, or 53,855 tonnes /(720,444 tonnes + 53,855 tonnes).

The DIC Group’s Global Solar Power Generating Capacity(For Internal Consumption)

Installation of Solar Power Facilities in Japan(Fiscal Years 2018–2022)(kW)
Installed: Fiscal year 2017
(Start of operation: Fiscal year 2018)

1,600 kWInstalled: Fiscal year 2018
(Start of operation: Fiscal year 2019)

1,440 kW

10,000

261

9,000

700

8,000
Installed: Fiscal year 2019
(Start of operation: Fiscal year 2020)

1,277 kWInstalled: Fiscal year 2021
(Start of operation: Fiscal year 2022)

261 kW

SEIKO PMC
(Location: Mizushima Plant;
capacity: 205 kW)

Tatebayashi Plant(Location: Idle land; capacity: 1,250 kW)

DIC Kitanihon Polymer(Hokkaido Plant)(Location: Idle land; capacity: 250 kW)
DIC Kitanihon Polymer(Tohoku Plant)(Location: Idle land; capacity: 200 kW)

Saitama Plant(Location: New administrative building;capacity: 30 kW)

Komaki Plant(Location: Idle land; capacity: 120 kW)

6,000

Central Research Laboratories(Location: Laboratory roof;
capacity: 60 kW)

7,145

5,168

1,500

2,000
1,000

Sakai Plant(Location: Warehouse roof; capacity: 324.8 kW(for charging EVs)

6,445

3,000

Chiba Plant(Location: Laboratory roof;
capacity: 100 kW)

Kyushu Polymer(Location: New administrativebuilding; capacity: 56 kW)

2,240

5,000
4,000

Kashima Plant(Location: Idle land;
capacity: 1,600 kW)

DIC Kyushu Polymer(Location: Idle land; capacity:
309.5 kW)

1,277

7,000

2,928
300

1,128 1,428
300

02016 2017 2018 2019 2020 2021 2022 (FY)

Central Research Laboratories(Location: Laboratory roof;
capacity: 40 kW)

Capacity as of the end of the previous fiscal year
Capacity added during the fiscal year

Yokkaichi Plant(Location: New administrative building;capacity: 20 kW)

Energy Mix
DIC Group in Other Countries and Territories

DIC Group in Japan

15,00013,00013,00011,00011,0009,000(Thousands of GJ)(Thousands of GJ)

9,000

7,000

7,000

5,000

5,000
Purchased electric power

Purchased electric power

3,000

Natural gas

3,000

Natural gas
Coal

Coal
Renewable energy (electric power)

Renewable energy (electric power)

Purchased heat (steam + cold/hot water)

1,000

1,000

Purchased heat (steam + cold/hot water)

Petroleum-based fuels-1,000Petroleum-based fuels

Renewable energy (heat)

Renewable energy (heat)-1,0002013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (FY)2014 2015 2016 2017 2018 2019 2020 2021 2022 (FY)

❸ Risk Management

7KH6XVWDLQDELOLW\:RUNLQJ*URXSDVXEVHFWLRQRIWKH6XVWDLQDELOLW\&RPPLWWHHLVFKDUJHGZLWKLGHQWLI\LQJDQGGHEDWLQJSULRULW\ULVNV
Risks designated as priorities are submitted for consideration to the
6XVWDLQDELOLW\&RPPLWWHH

Processes Used to Identify and Assess Climate Change–Related Risks
The DIC Group recognizes risks related to its response to climatechange—a key component of its framework of sustainability themes,
the foundation of its sustainability activities—and works to evaluate,
DGGUHVVDQGPDQDJHWKHPHIIHFWLYHO\,Q¿VFDO\HDUWKH*URXSEHJDQDGGUHVVLQJFOLPDWHFKDQJH±UHODWHGULVN²XQWLOWKHSUHYLRXV¿VFDO\HDUWUHDWHGDVDFRPSRQHQWRI(6+²DVDQLQGHSHQGHQWULVNWKHPH

❹ Metrics and Targets

In light of accelerated global efforts to decarbonize, the DIC Group has

DIC Report 2023

91

Climate Change

The DIC Group achieved its goals for reducing its CO2 emissions andCO2 emissions per unit of production worldwide as a result of efforts
by Group companies to break down the target set forth in the threeyear management plan that concluded in fiscal year 2021—a 50%
GHFUHDVHIURPWKH¿VFDO\HDUOHYHOE\¿VFDO\HDU²LQWRDQ
DQQXDODYHUDJHGHFUHDVHRIIURPWKH¿VFDO\HDUOHYHO²DQG
the promotion of more ambitious energy-saving and decarbonization
LQLWLDWLYHVLQFOXGLQJWKHDGRSWLRQRILQWHUQDOFDUERQSULFLQJ6RPHRIWKHVHLQLWLDWLYHVDUHRXWOLQHGEHORZ

set new targets for the reduction of its CO2 emissions and pledged to
VWHSXSUHODWHGHIIRUWV',&QRZDLPVWRDFKLHYHFDUERQQHXWUDOLW\²QHW
zero CO2HPLVVLRQV²E\¿VFDO\HDUDQGZLOOVHHNWRUHGXFH&22
HPLVVLRQVE\IURPWKH¿VFDO\HDUOHYHOE\¿VFDO\HDU
7DUJHWVDUHIRU6FRSHDQGHPLVVLRQVFiscal year 2050

Achieve carbon neutrality (Scope 1 and 2)

Fiscal year 2030

Reduce CO2HPLVVLRQVIURPWKH¿VFDO\HDU
level (Scope 1 and 2)■ Principal Initiatives in Fiscal Year 2022

Going forward, the DIC Group will continue to implement a variety of
HQHUJ\VDYLQJPHDVXUHVLQFOXGLQJLQWURGXFLQJKLJKO\HI¿FLHQWIDFLOLWLHV
promoting process improvements and boosting capacity utilization
rates, while at the same time further advancing its use of renewableenergy by shifting to biomass and other clean fuels and installing solar
SRZHUIDFLOLWLHV❶ Energy Consumption and CO2 Emissions by the Global DIC

Group (Scope 1 and 2)
Energy consumption by the global DIC Group in fiscal year 2022
amounted to 14,569,201 GJ, while CO 2 emissions totaled 720,444
WRQQHV&22HPLVVLRQVSHUXQLWRISURGXFWLRQZHUHNJWRQQH
Both energy consumption and CO2 emissions were up sharply fromfiscal year 2021, owing to the acquisition of the Colors & Effects
SLJPHQWVEXVLQHVV7KH*URXSLQWHQGVWRREWDLQWKLUGSDUW\YHUL¿FDWLRQ
of its energy consumption and CO2 emissions (Scope 1 and 2) data,
LQFOXGLQJWKHLPSDFWRIWKLVFKDQJH

Global CO2 Emissions: Results and Forecast for Fiscal Year 2030

In addition, the Sustainability Committee has made the decision to
adopt CO2IUHHHOHFWULFSRZHUDWDOO',&*URXSVLWHVLQ-DSDQ7KH',&
%XLOGLQJ ',&¶VFRUSRUDWHKHDGTXDUWHUV DQGWKH1R',&%XLOGLQJLQ
Tokyo switched fully to CO2IUHHSXUFKDVHGHOHFWULFSRZHU5HPDLQLQJVLWHVZLOOEHJLQJUDGXDOO\FKDQJLQJRYHULQ¿VFDO\HDU

Global CO2 Emissions

Emissions(Tonnes)

Production volume(Tonnes)

100

300(Tonnes)
800,000

250

700,000

2013

2019

2020

2021

2022 (FY)

90
80
70

600,000

200

60

500,000

50

150

400,000

40
30
20

100

300,000

50

200,000

10

100,000

0013

19 20 21 22 23 24 25 26 27 28 29 30 (FY)

Production
volumeCO2 emissions(reported)

Target for reduction of
CO2 emissions

0

Global CO2 Emissions per Unit of Production(Tonnes)

2013

2019

Japan

CO2 emissions(including estimated emissions by
the Colors & Effects pigments business)

Americasand Europe

Greater Asia–PacificChinaregionOther

DIC Group
Globaloverseas DIC Group

Global Energy Consumption
2020

2021

2022 (FY)(Terajoules)

2013

2019

2020

2021

2022 (FY)16,000700

14,000600

12,000500

10,000

400

8,000

300

6,000
4,000

200

2,000

100

0

0

Japan
Japan

Americasand Europe

Greater
China

Asia–PacificregionDIC Group
overseas

GlobalDIC Group

DIC Report 2023

92

Americasand Europe

Greater Asia–PacificChinaregionOther

DIC Group Global
overseas DIC GroupClimate Change

Factors Contributing to Change in Global CO2 Emissions

DIC Group in other countries and territories

DIC Group in Japan

Factors

Impact on CO2 emissions (tonnes)

Decrease in production volume (-4.2% from fiscal year 2021)
Implementation of 473 energy-saving initiatives at sites
Reduction of emissions factor for electric power
Other factors (including start-up of biomass boiler)
Asia–Pacific region: Decrease in production (-9.4% from fiscal year 2021)
Asia–Pacific region: Implementation of 60 energy-saving initiatives at sites
Asia–Pacific region: Other factors (including start-up of biomass boiler)
Greater China: Decrease in production (-13.4% from fiscal year 2021)
Greater China: Implementation of 28 energy-saving initiatives at sites
Greater China: Other factors (including introduction of energy-saving facilities)
Sun Chemical Group: Decrease in production (-0.5% from fiscal year 2021)
Sun Chemical Group: Other factors (including production facility closure)
Other: Decrease in production volume (-9.1% from fiscal year 2021)
Acquisition of the Colors & Effects pigments businessChange in CO2 emissions (tonnes)
Global CO2 emissions in fiscal year 2021
Global CO2 emissions in fiscal year 2022

❷ Grasping CO2 Emissions Across the DIC Group’s Supply

Emissions

1

3XUFKDVHGJRRGVDQGVHUYLFHV2Capital goods

183,8753

Fuel- and energy-related activities(not included in Scope 1 or 2)

125,217

4

8SVWUHDPWUDQVSRUWDWLRQDQGGLVWULEXWLRQ

257,016

5:DVWHJHQHUDWHGLQRSHUDWLRQV

64,0296

Business travel

2,957

7

Employee commuting

6,597

9

Downstream transportation and distribution

10

3URFHVVLQJRIVROGSURGXFWV

12End-of-life treatment of sold products

15

Investments-3,396-16,6842.8-135-5,754-6,265-16,225-4,236-5,643-2,073-7,885

6.5

-169
-509
-13,638-14,147

-109

-109

186,539

186,539
131,459-31.6-2 2 . 3

588,985
720,444,Q¿VFDO\HDU*URXSFRPSDQ\',&.\XVKX3RO\PHU&R/WGFRPSOHWHG
FRQVWUXFWLRQRIDQHZRI¿FHEXLOGLQJWKDWLQFRUSRUDWHVQHW]HURHQHUJ\EXLOGLQJ(ZEB)*1FRQVWUXFWLRQZKLFKDLPVWRDFKLHYHYLUWXDOO\]HURHQHUJ\FRQVXPSWLRQ
7KHQHZRI¿FHEXLOGLQJZDVGHVLJQHGZLWKDYDULHW\RIHQHUJ\VDYLQJHTXLSPHQW
and fixtures, including solar power generation facilities, heat insulationPDWHULDOVDQG/('OLJKWLQJ¿[WXUHVDOORZLQJLWWRDFKLHYHDUHGXFWLRQLQSULPDU\energy consumption (energy saving + energy creation) of 111% and earning
LWFHUWL¿FDWLRQDVDWRSOHYHO=(% 2EXLOGLQJ',&.\XVKX3RO\PHUSDUWLFLSDWHG
LQWKH=(%GHPRQVWUDWLRQSURMHFWFRQGXFWHGE\WKH0LQLVWU\RI(FRQRP\Trade and Industry’s Agency for Natural Resources and Energy, earning that
FRPSDQ\FHUWL¿FDWLRQDVD=(%/HDGLQJ2ZQHU 3',&.\XVKX3RO\PHULVWKH
¿UVW*URXSFRPSDQ\WRSXUVXHVXFKDQLQLWLDWLYH7KH',&*URXSZLOOFRQWLQXHZRUNLQJDFWLYHO\RQEXLOGLQJ=(%FRPSOLDQWRI¿FHV

Greenhouse Gas Emissions Across the DIC Group’s Supply
Chain in Fiscal Year 2022
Category-7,469PDQGDWRU\&ZLQWHUDQG&VXPPHUDLUFRQGLWLRQLQJVHWWLQJVZRUNLQJ
with facility management companies to implement diligent energy-saving
PHDVXUHVDQGLQVWLWXWLQJD\HDUURXQGQRMDFNHWQRWLHGUHVVFRGHXQGHU
WKH:65SURMHFWChains (Scope 3)
The DIC Group recognizes the importance of reducing emissions ofgreenhouse gases across its supply chains and works to ensure a
JUDVSRIHPLVVLRQVLQDOOFDWHJRULHVRI6FRSH7KH*URXSKDVDOVRUHYLVHGLWVFDOFXODWLRQIRUHPLVVLRQVLQFDWHJRU\ 3XUFKDVHGJRRGVDQGVHUYLFHV ZLWKWKHDLPRIUH¿QLQJGDWDUHSRUWHGLQWKLVFDWHJRU\Category number

Decrease (%)-5,685

5,152,536

256*1 A ZEB is a building with considerably reduced annual energy consumption by saving as much energy as
SRVVLEOHYLDEHWWHUKHDWLQVXODWLRQVRODUVKDGLQJQDWXUDOHQHUJ\DQGKLJKHI¿FLHQF\HTXLSPHQWDVZHOODVFUHDWLQJHQHUJ\ HJZLWKSKRWRYROWDLFSRZHUJHQHUDWLRQ ZKLOHPDLQWDLQLQJFRPIRUWDEOHHQYLURQPHQWV
*2 The ZEB series consists of four ranks based on net reduction in primary energy consumption achieved:
ZEB (net energy saving of 100% or more), Nearly ZEB (buildings that achieve net energy saving of 75% ormore), ZEB Ready (buildings that achieve net energy saving of 50% or more) and ZEB-oriented (buildings
ZLWKDÀRRUVSDFHLQH[FHVVRIP2WKDWDFKLHYHQHWHQHUJ\VDYLQJRIRUPRUH $=(%/HDGLQJ2ZQHULVDQRZQHURID=(%EXLOGLQJWKDWSXEOLFO\GLVFORVHVLWVWDUJHWVIRUSURPRWLQJDZDUHQHVVRI=(%LQWURGXFWLRQSODQVDQGLPSOHPHQWDWLRQUHVXOWVDVZHOODVWKHUHVXOWVRIUHODWHGHIIRUWV

144,770
1,500,725
12,987■ Initiatives in Areas Other than Production

 2IÀFHVDQG5HVHDUFK)DFLOLWLHV
In fiscal year 2022, energy consumed by the DIC Group’s 21 offices andUHVHDUFKVLWHVLQ-DSDQ H[FOXGLQJWKH&HQWUDO5HVHDUFK/DERUDWRULHV URVHZLWKFRQWULEXWLQJIDFWRUVEHLQJDQLQFUHDVHLQWKHQXPEHURIVLWHVDQG
WKHLQFOXVLRQLQWKHFDOFXODWLRQIRUWKH¿UVWWLPHRIIXHOXVHGE\&RPSDQ\FDUV3ULQFLSDOHQHUJ\VDYLQJLQLWLDWLYHVLPSOHPHQWHGLQFOXGHUHSODFLQJDJHGOLJKW¿[WXUHVDQGDLUFRQGLWLRQLQJHTXLSPHQWZLWKQHZHUKLJKHI¿FLHQF\PRGHOVWKDW
satisfy standards set by the Energy Conservation Center, Japan (ECCJ) for
its Top Runner program, turning off lights when not needed and implementing

DIC Report 2023

93

Climate Change

Procurement Initiatives%DVHGRQWKH',&*URXS6XVWDLQDEOH3URFXUHPHQW*XLGHOLQHV',&
IRUPXODWHG WKH ',& *URXS 6XVWDLQDEOH 3URFXUHPHQW *XLGHERRN
version 3 of which was published in February 2020, which it uses tosurvey suppliers and encourage them to reduce their emissions of
JUHHQKRXVHJDVHV:LWKWKHREMHFWLYHRIEHWWHUXQGHUVWDQGLQJDQG
lowering the carbon footprint of DIC products, the Group is also making
provisional calculations of the carbon footprint of the raw materials it
uses, as well as seeking to expand its used of bioderived and recycled
UDZPDWHULDOV7KH*URXSLVDOVRZRUNLQJWRUHGXFHJUHHQKRXVH
gas emissions by using common tools such as EcoVadis to expand
GLDORJXHZLWKVXSSOLHUV

footprint that are consistent with those employed by Sun Chemical, as well
DVWRFUHDWHDQLQIRUPDWLRQVKDULQJPHFKDQLVP)RUFXVWRPHUVLQ-DSDQ
the Group set up a system for responding to inquiries related to products’
carbon footprint that is spearheaded by the Sustainability Department and
KHOGUHODWHGSUHVHQWDWLRQVIRUWHFKQLFDODQGVDOHVWHDPV
Avoided Emissions
7KHWHUP³DYRLGHGHPLVVLRQV´UHIHUVWR&22 emissions that can be
DYRLGHGWKURXJKWKHXVHRIDSURGXFW([DPSOHVLQFOXGHSURGXFWVWKDWFRQWULEXWHWRLPSURYLQJIXHOHI¿FLHQF\E\UHGXFLQJYHKLFOHERG\ZHLJKW
and products that help reduce energy used for heating and cooling
E\LPSURYLQJLQVXODWLRQ7KH',&*URXSLVZRUNLQJWRDSSURSULDWHO\calculate avoided emissions’ contribution to emissions across the
supply chain, as well as to quantify their importance to the value its
SURGXFWVGHOLYHU

Logistics Initiatives
In Japan, DIC Group companies are using fewer, larger trucks and
WDNLQJGHFLVLYHVWHSVWRLPSURYHORDGLQJHI¿FLHQF\DVZHOODVSURPRWLQJWKHXVHRIPRGDOVKLIWDQGWKHHI¿FLHQWFRPELQDWLRQRIWUXFNUDLODQG
PDULQHWUDQVSRUW*URXSFRPSDQLHVLQRWKHUFRXQWULHVDQGWHUULWRULHVDUHDGYDQFLQJLQLWLDWLYHVWDLORUHGWRORFDOFLUFXPVWDQFHV2YHUWKHORQJ
term, the Group expects that the expanded use of next-generation
YHKLFOHVDQG/1*FDUULHUVZLOOIXUWKHUKHOSUHGXFHJUHHQKRXVHJDVHPLVVLRQVDWWULEXWDEOHWRORJLVWLFVInnovation
By capitalizing on open innovation to promote the chemical recyclingof its products, as well as the recycling and conversion of recovered
CO2 into new raw materials, the DIC Group is working to realize
manufacturing that does not rely on fossil fuels, thereby helping
contribute to sustainability for the global environment and for society,
DVVHWIRUWKLQ',&9LVLRQ

Internal Carbon Pricing System,Q¿VFDO\HDUWKH',&*URXSLQWURGXFHGDQLQWHUQDOFDUERQSULFLQJ
V\VWHP,QVWLWXWLQJLWVRZQLQWHUQDOSULFHSODFHVDPRQHWDU\YDOXHRQ
greenhouse gas emissions (Scope 1 and 2) that the Company can thenIDFWRULQFRVW±EHQH¿WDVVHVVPHQWV7KLVZLOODOORZPRUHDFFXUDWHFDSLWDO
investment decisions by making it possible to quantify the impact ofemissions reductions while also raising awareness of the relationshipbetween capital investments and CO2HPLVVLRQV:LWKWKHJRDORI
expanding the applications of its internal carbon pricing system, DIC will
also look at using internal carbon pricing to factor the cost of emissions
LQWRFDOFXODWLRQVIRUHQHUJ\SURFXUHPHQWDQGUDWLRQDOL]DWLRQHIIRUWV■ Protecting the Ozone Layer+\GURIOXRURFDUERQV +)&V  DUH XVHG ZLGHO\ DV UHIULJHUDQWV LQ
HTXLSPHQWDQGIDFLOLWLHV:KLOHQRWDQR]RQHGHSOHWLQJVXEVWDQFH
2'6 +)&VKDYHDZDUPLQJSRWHQWLDO±WLPHVWKDWRI
CO2DQGWKHLUXVHLVH[SHFWHGWRDFFRXQWIRUD&LQFUHDVHLQWKH
JOREDODYHUDJHWHPSHUDWXUHE\WKHHQGRIWKHVWFHQWXU\$WWKHWK
0HHWLQJRIWKH3DUWLHVLQ.LJDOL5ZDQGDKHOGLQ2FWREHUWKH
3DUWLHVWRWKH0RQWUHDO3URWRFRORQ6XEVWDQFHVWKDW'HSOHWHWKH2]RQH
/D\HUUHDFKHGDQDJUHHPHQWWRSKDVHRXWWKHSURGXFWLRQDQGXVHRI
+)&V WKH.LJDOL$PHQGPHQW -DSDQVXEVHTXHQWO\DPHQGHGLWV$FW
RQWKH3URWHFWLRQRIWKH2]RQH/D\HU7KURXJKWKH&RQWURORI6SHFL¿HG
6XEVWDQFHVDQG2WKHU0HDVXUHVLQOLQHZLWKWKHDPHQGPHQWZKLFKDVRI6HSWHPEHUKDGEHHQUDWL¿HGE\3DUWLHV +DYLQJ
VXUSDVVHGWKHFRQGLWLRQRIUDWL¿FDWLRQE\DWOHDVW3DUWLHVWKH.LJDOL$PHQGPHQWHQWHUHGLQWRIRUFHRQ-DQXDU\

DIC Sustainability Index
The DIC Sustainability Index was established as a yardstick for
PHDVXULQJ WKH VRFLDO YDOXH RI ',& *URXS SURGXFWV7KH LQGH[¶V
vertical axis quantifies each product’s contribution to the reductionof environmental impact, which the Group is working continuously to
UHGXFH,QSDUWLFXODUWKH*URXSLVIRFXVHGRQUHGXFLQJJUHHQKRXVH
gas emissions (Scope 1 and 2) and ensuring steady progress toward
DFKLHYHPHQWRIWKHWDUJHWVLWKDVVHWIRU¿VFDO\HDUVDQGIn April 2015, Japan also revised its Fluorocarbons Recovery and'HVWUXFWLRQ/DZ7KHVDPHPRQWKWKH$FWRQ5DWLRQDO8VHDQG
3URSHU0DQDJHPHQWRI)OXRURFDUERQVHQWHUHGLQWRIRUFHFRPSHOOLQJ
stakeholders to ascertain and report leaks of fluorocarbons from
FRPPHUFLDOHTXLSPHQWDQGIDFLOLWLHVCalculating Products’ Carbon Footprint
To lower CO 2 emissions across its supply chain, the DIC Groupcalculates and works to minimize emissions associated with its
products from the sourcing of raw materials through to provision to the
FXVWRPHU7KH*URXSLVFXUUHQWO\GHYHORSLQJDVFKHPHWRFDOFXODWH
each product’s carbon footprint, which it believes will assist its efforts
to foster dialogue with suppliers and respond to customer expectations
DQGVRFLDOLPSHUDWLYHV,QUHVSRQVHWRUHTXHVWVIURPJOREDOFXVWRPHUV
the Group is also creating guidelines for calculating products’ carbon,Q¿VFDO\HDUOHDNHGÀXRURFDUERQVIURP',&*URXSVLWHVZHUH
equivalent to 439 tonnes of CO2 /HDNVLQH[FHVVRIWRQQHVSHU
VLWHRUSHUFRPSDQ\PXVWEHUHSRUWHGWRWKH-DSDQHVHDXWKRULWLHV 
The Company has worked to effectively manage fluorocarbons
VLQFHILVFDO\HDUZKHQWKH$FWRQ5DWLRQDO8VHDQG3URSHU
0DQDJHPHQWRI)OXRURFDUERQVHQWHUHGLQWRIRUFHDQGKDVPDQDJHG
WRNHHSOHDNVEHORZWKHOHYHOUHTXLULQJUHSRUWLQJ,Q¿VFDO\HDU

DIC Report 2023

94

Climate Change

WKH*URXS¶VHIIRUWVWRFRPSO\ZLWKODZVJRYHUQLQJOHDNHGÀXRURFDUERQV
were recognized in the Japan Refrigerant and Environmental
Organization’s second JRECO Fluorocarbon Rating, which selected
LWDVRQHRI$UDQNSHUIRUPHUVIURPDPRQJFRPSDQLHVVXUYH\HG*RLQJIRUZDUGWKH*URXSZLOOFRQWLQXHZRUNLQJWRHQVXUH
compliance with pertinent laws and regulations, as well as to reduceleaked fluorocarbons from its sites by, among others, choosing air
conditioning equipment with low environmental impact refrigerants,
LQFOXGLQJWKRVHFRQWDLQLQJQRÀXRURFDUERQVLeaked Fluorocarbons by the DIC Group in Japan (CO2 Equivalent)(Tonnes of CO2)

(%)

1,000

200

900

180

800

160

700

140

600

120

500

100

400

80

300

60

200

40

100

20

0

0

2015
DIC

2016

2017

2018

2019

2020

2021

2022 (FY)DIC Group companies in JapanKey Data
Category
Energy used (converted into GJ)

Energy consumed per unit of production

CO2 emissions

Unit
1,000 GJ*-WRQQH

TonnesBoundary

Fiscal year 2019

CO2 emissions (Scope 2)CO2 emissions per unit of production

TonnesTonnes.JWRQQH

Fiscal year 2021

Fiscal year 2022

Japan









35&

1,056

1,036

1,197

1,066

$VLD±3DFL¿FUHJLRQ

1,623

1,606



1,650

Sun Chemical



3,791

3,196

7,767

Other

69



63



Global

10,717

10,37910,474

14,569

Japan









35&









$VLD±3DFL¿FUHJLRQ









Sun Chemical









Other







Global









Japan





224,916

35&

63,00060,16370,34262,457$VLD±3DFL¿FUHJLRQ

123,227

144,107Sun Chemical

173,146

153,374

147,553

319,946

2,107

5,267





Other

CO2 emissions (Scope 1)

Fiscal year 2020

Global

593,093551,049



720,444Japan





135,612

35&

14,004



14,635$VLD±3DFL¿FUHJLRQ

66,19969,597



76,127Sun Chemical



51,503

121,361

Other

1,236

1,299



1,029

Global270,647

253,064

292,063

341,610

Japan

96,60090,231

79,77335&

47,06555,054

$VLD±3DFL¿FUHJLRQ

56,61353,63055,531

51,725Sun Chemical

119,366

103,091

96,050

Other



3,967



929

Global322,446

296,922

Japan

206

204

197

191

35&

332

331

279



$VLD±3DFL¿FUHJLRQ

515

549





Sun Chemical

200

190

173

313

Other

4,053

135

3,579

3,731

Global

245

242

236



DIC Report 2023

95

Quality(QKDQFLQJ3URGXFW4XDOLW\DQG&XVWRPHU6DWLVIDFWLRQ
Goals and Achievements of Major Initiatives
Objective of initiatives(YDOXDWLRQVDUHEDVHGRQVHOIHYDOXDWLRQVRIFXUUHQWSURJUHVV.H\★★★ = Excellent; ★★ 6DWLVIDFWRU\★ 6WLOOQHHGVZRUN

Goals for fiscal year 2022

Achievements in fiscal year 2022

Investigate the root causes
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steps to prevent recurrence.

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DV\VWHPIRUVZLIWO\FROODWLQJFRPSODLQWV
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Group companies in Japan.

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VRFLHW\DQGJXDUDQWHHDOHYHORI
quality that matches requirements.

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including a regular online “All About
Quality” lecture, continued. The
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methods included among the issues
that must be addressed.

Secure product quality.

Evaluation

Goals for fiscal year 2023★★

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quality and customers, taking into
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DLPRISURYLGLQJSURGXFWVWKDWDUH
trusted by customers and society.

★★

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employees.

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SURYLGHSURGXFWVDQGVHUYLFHVWKDWUHVSRQGWRWKHQHHGVRIFXVWRPHUVDQGVRFLHW\DWODUJH

DIC’s Quality Policy&RQWULEXWHWRWKHSURVSHULW\RIFXVWRPHUVDQGVRFLHW\E\FRQVLVWHQWO\SURYLGLQJUHOLDEOHSURGXFWV 8SGDWHGLQ0D\

To better leverage its agility and comprehensive capabilities, DIC
SUHYLRXVO\HPSOR\HGDPDWUL[OLNHTXDOLW\PDQDJHPHQWFRQ¿JXUDWLRQZLWK
product divisions on the vertical axis and the Technical Management
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product division quality assurance groups have been absorbed into the
Production Management Unit.

Customersatisfaction

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8QLWDQGHVWDEOLVKLQJDXQLILHGRUJDQL]DWLRQWKDWRYHUVHHVTXDOLW\
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quality control and quality assurance; and task the Quality Assurance'HSDUWPHQWDQGWKH4XDOLW\&RQWURO'HSDUWPHQWZLWKLGHQWLI\LQJLVVXHVIDFLQJVLWHVDQGSURGXFWGLYLVLRQVDQGGHYLVLQJWKHPRVWHIIHFWLYH
measures in response.

Product divisions■ Framework for Promotion

Trust

Expectations

Quality Assurance Department
Quality Control Department

QMS
administration

Sites

Peace ofmind

Satisfaction',&KDVDOVRHVWDEOLVKHGDQHZ4XDOLW\&RPPLWWHHWRHQDEOHWKH
SUHVLGHQWWREHGLUHFWO\LQYROYHGLQTXDOLW\PDQDJHPHQWIRUWKH',&
Group in Japan. In principle, the Quality Committee meets quarterly to
IRUPXODWH',&*URXSTXDOLW\SROLFLHVDQGLPSRUWDQWTXDOLW\PHDVXUHV$W
committee meetings, product division general managers and unit heads
UHSRUWRQWKHVWDWXVRIWKHVHPHDVXUHVDQGVXPPDUL]HUHODWHGDFWLYLWLHVDIC Report 2023

96

Quality

The Quality Assurance Department and the Quality Control Department
implement measures deliberated by the Quality Committee and in theirUHVSHFWLYHUROHVZRUNWRLPSURYHWKHRYHUDOOOHYHORITXDOLW\PDQDJHPHQW,Q
WKHHYHQWDQLVVXHRIQRQFRQIRUPDQFHDULVHVWKHGHSDUWPHQWVWDNHFRUUHFWLYH
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and quality inspection processes. The Quality Assurance Department, Quality
Control Department and site quality assurance groups conduct themselves daily
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VWDEOHGHOLYHU\RIVDIHW\DQGSHDFHRIPLQGWRLWVFXVWRPHUV❶ Initiatives Aimed at Increasing Customer Satisfaction❸ Compliance-Focused Initiatives■ Framework for Promotion

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nature, this program employs case studies as study materials and emphasizes
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7KH4XDOLW\$VVXUDQFH'HSDUWPHQW¶VSULQFLSDOUHVSRQVLELOLWLHVDUHDVIROORZV
① Plan and implement quality policies and important quality

measures, primarily at DIC Group companies in Japan;② (QVXUHWKHDSSURSULDWHPDQDJHPHQWDQGDXGLWLQJRIWKH

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responses; and④ )RVWHUDFXVWRPHUDQGFRPSOLDQFHIRFXVHGPLQGVHW$OVRLQILVFDO\HDUDTXDOLW\FRPSOLDQFHHOHDUQLQJSURJUDPZDVODXQFKHGIRU',&*URXSHPSOR\HHVLQ-DSDQWRSUHYHQWWKHUHFXUUHQFHRITXDOLW\LPSURSULHWLHV7KLVSURJUDPZKLFKXVHVDFWXDO*URXSLQFLGHQWVDVFDVHVWXGLHVFRQVLVWHQWO\HQMR\VDSDUWLFLSDWLRQUDWHRIRIHOLJLEOHHPSOR\HHV,QDQHZLQLWLDWLYHLQ¿VFDO\HDUWKH*URXSLQDXJXUDWHGDUHJXODURQOLQHOHFWXUHFDOOHG³$OO$ERXW4XDOLW\´ZKLFKLQWURGXFHVTXDOLW\UHODWHGWRSLFVDQG
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SODQQLQJGHVLJQDQGGHYHORSPHQWWKHSURFXUHPHQWRIUDZPDWHULDOVSURGXFWVWRUDJHSURGXFWLRQDQGVDOHVJLYLQJFRQVLGHUDWLRQWRWKHQHHGIRUHIIHFWLYH
SURGXFWVWHZDUGVKLSIn addition to conducting regular internal quality audits, the Quality Assurance
Department repeatedly monitors and inspects domestic sites to ensure that
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QHHGWRSODFHFXVWRPHUV¿UVWUHPDLQV¿UPO\URRWHGDFURVVWKH',&*URXS

❹ Mechanisms for Dealing Appropriately with Issues

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PHDVXUHVIRULPSOHPHQWLQJWKH*URXS¶VDQQXDOTXDOLW\DFWLYLW\SODQWRWKH4XDOLW\&RPPLWWHHZKLFKLVKHDGHGE\WKHSUHVLGHQWDQGWRPRQLWRUWKHVWDWXVWKHUHRI
7KHFRQIHUHQFHDOVRSOD\VDUROHLQLPSURYLQJTXDOLW\PDQDJHPHQWDFURVV
WKH*URXSE\DGYDQFLQJWKHKRUL]RQWDOGHSOR\PHQWRIEHVWSUDFWLFHVDQGFDVHVWXGLHVLOOXVWUDWLQJVLJQL¿FDQWLVVXHV,QILVFDO\HDUDXGLWWHDPVHQJDJHGLQULJRURXVGLDORJXHZLWKVLWHVUHJDUGLQJSULQFLSDODXGLWWKHPHVZKLFKLQFOXGHGWKHGHSOR\PHQWRIVLWHSROLFLHVUHJDUGLQJTXDOLW\DVZHOODVHGXFDWLRQDQGWUDLQLQJUHJDUGLQJTXDOLW\LQVSHFWLRQV,Q¿VFDO\HDUWKHIRFXVZLOOVKLIWWRUHDOL]LQJGHVLJQTXDOLW\WURXEOHVKRRWLQJ
LQSURGXFWLRQSURFHVVHVDQGSURFHVVFRQWUROPHWKRGVZLWKWKHDLPRIHQVXULQJ
even more stable production.

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In addition to proposing solutions that deliver value to customers, the product
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VLWHJHQHUDOPDQDJHUVDUHWDVNHGZLWKHQVXULQJWKHDSSURSULDWHIXQFWLRQLQJRIWKH',&*URXS¶V406DQGSURPRWHLPSURYHPHQWV,QUHVSRQVHWRLVVXHVRIQRQFRQIRUPLQJSURGXFWVVLWHTXDOLW\FRQIHUHQFHVLQYHVWLJDWHFDXVHVLPSOHPHQW
corrective measures and take steps to prevent recurrence. The Quality
Assurance Department and the Quality Control Department participate in these
FRQIHUHQFHVDQGUHVSRQGVZLIWO\DQGDSSURSULDWHO\WRLVVXHVDVUHTXLUHG

❷ Initiatives Aimed at Enhancing Product Quality

7KH4XDOLW\&RQWURO'HSDUWPHQW¶VSULQFLSDOUHVSRQVLELOLWLHVDUHDVIROORZV
① Plan, implement and evaluate quality-related education;② 0DQDJHDQGVXSHUYLVHWKHDSSURSULDWHLPSOHPHQWDWLRQRITXDOLW\UHODWHGSURFHVVHVE\SURGXFWGLYLVLRQVDQGXQLWVDVZHOODVE\
VLWHVLQ-DSDQLQFOXGLQJWKRVHRI',&*URXSFRPSDQLHVDQG
③ 3URPRWH';IRUSURFHVVHVUHODWHGWRTXDOLW\FRQWURODQG
quality inspections.
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H[SDQVLRQWKHUHSODFHPHQWRIDJHGHTXLSPHQWRUWKHWUDQVLWLRQWRQHZPRUH
cost-competitive products. For this reason, it is necessary to prevent the
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respond to complaints and criticisms.

❺ Collaboration with DIC Group Companies in Other Countries

and Territories
At present, all subsidiaries in other countries and territories have earned
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$VLD±3DFL¿FUHJLRQDQG6XQ&KHPLFDODIC Report 2023

97

Human Resources Management

Reinforcing Human Capital
Goals and Achievements of Major Initiatives
Objectives of initiatives

Foster human resources and build
a human resources infrastructurewith the aim of advancing global
management.

Support efforts to secure a diverse
labor force.

SDGs Goals 3, 4, 5, 8 and 10

Evaluations are based on self-evaluations of current progress. Key: ★★★ = Excellent; ★★ = Satisfactory; ★ = Still needs work

Goals for fiscal year 2022

Achievements in fiscal year 2022

Evaluation

Goals for fiscal year 2023

Foster human resources.
• Consider building a framework for talentmanagement with the expectation ofshifting to a global management system.
• Continue providing training for selected
employees.

• Cooperation among regional headquarters
to share and integrate human resources
information and training know-how
commenced.
• In addition to existing training programs,
leadership training for young employees waslaunched in Japan.

★★

Human resources• Promote department-specific humanresources portfolio planning.
• Systematically foster Group management
candidates and future global leaders.

Build a human resources infrastructure.
Formulate a vision of the ideal global humanresources system and a road map for its
establishment.

In collaboration with Sun Chemical, a study of a
global human resources system and a schedule
for deployment, including conducting a Fit–Gap
analysis, was drawn up.

★★

Advance career opportunities for women.
Advance diversity and inclusion bypromoting initiatives focused particularlyon the latter.

A training program designed to transform themindsets of mid-career female employees
was offered for the first time in four years,
with 13 individuals taking part. A networking
conference for employees who are foreign
nationals was held twice.

Promote the hiring of individuals withdisabilities.
• Continue working to reinforce relations
with special needs schools.
• Provide support to strengthen theretention rate for employees withdisabilities.
• Maintain the percentage of DIC’s totallabor force accounted for by individuals
with disabilities at 2.60%.

• As of December 31, 2022, the percentage of DIC’s
total labor force accounted for by individuals withdisabilities was 2.48%.
• Efforts to recruit new employees from special
needs schools continued in the recruitment period
beginning in April 2023.
• A manager in the General Affairs and HR
Department was put in charge of advancing efforts
to hire individuals with disabilities.
• DIC began providing support to Group companies
in Japan for the hiring of individuals with disabilities.
• An application was submitted in November 2022
for certification of a Group company as a specialpurpose subsidiary. (Certification was obtained in
January 2023.)★★

Guarantee human rights.
• Grasp global trends in human rights–related
issues and measures promoted by the
UN and individual countries and territories
to address such issues. Continue toprovide guidance to DIC Group companies
worldwide.
• Conduct human rights due diligence atGroup companies in India and the PRC.

Efforts to redesign the DIC Group’s human rights
due diligence, including determining an ideal
overall format and promoting collaboration with
relevant parties, got underway with the sharing
of information and exchanging of opinionswith departments in charge of compliance andpurchasing, as well as regional headquarters(DIC (China) and DIC Asia Pacific). Additionally,
human rights due diligence was conducted at DIC
Group companies in the PRC (19 companies)
and India (four companies), results of which weresatisfactory.

★★

Protect employee health.
• Prevent mental health disorders and takesteps to ensure the prompt identificationof issues.
• Implement measures to improve healthliteracy.

A health management strategy map was created
and the objectives of various measures wereclarified, after which both were announced
internally and to the public. Ongoing initiatives
included conducting online health promotion
seminars and physician-led interviews withextremely overworked employees. A new initiative
involved interviewing mental health industrial
physicians regarding workplace improvements
based on an analysis of the results of employee
stress checks.

Promote measures to protect thehuman rights and ensure the safety
and health of employees.

★★

Human resources infrastructure• Examine deployment of a global human resources
system in Japan and elsewhere in Asia.
• Build a management system for humanresources–related KPIs based on ISO 30414.

Diversity• Continue to implement measures to promote
diversity (training for female employees inleadership roles, career support for employees who
are foreign nationals).
• Continue working to reinforce relations between
corporate headquarters and the special-purpose
subsidiary.
• Increase the percentage of the total labor force
accounted for by individuals with disabilities atcorporate headquarters, sites, and subsidiaries
and affiliates.
Job satisfaction• Encourage one-on-one meetings to enhanceinternal communications.
• Make use of StrengthsFinder®* to build collective
team strengths.
• Advance career support measures to assist theefforts of employees to design their own careers.
• Enhance the “Job Challenge” system.
• Create workplace environments conducive to
new work styles.

Human rights
Human rights–related risks were reconsidered
and designated, and steps were taken to promoteawareness Companywide.
Health management
Continue to implement corporate healthmanagement measures.

★★

* CliftonStrengths® is a registered trademark of Gallup, Inc.
DIC Report 2023

98

Human Resources Management

Basic Approach to Human Resources Management
To ensure its vision statement, “We improve the human condition by safely delivering color and comfort for sustainable prosperity—Color & Comfort,”
permeates the work of all employees, the DIC Group aims to be a highly engaged organization in which a broad spectrum of individuals work together
with a sense of unity to amplify the social value. Recognizing human resources as capital critical to the execution of strategies, the Group is committed torespecting human rights and guaranteeing the safety of all employees, as well as to creating work environments that empower its diverse employees tofully realize their potential, and strives to create systems and an infrastructure that support autonomous growth. The Group also strives to foster humanresources who can play an active global role and contribute to greater organizational cohesiveness.
of human capital and calls for the building of a personnel management
platform that underpins these priorities.

1. Efforts to Reinforce Management of Human Capital❶ Building a Strategic Human Resources Portfolio thatMaximizes the Value of Human Capital
In line with The DIC Way, which represents its fundamental management
policy, DIC in Japan works with regional headquarters overseeing
operations in Greater China, the Asia–Pacific region, and the Americas,
Europe and Africa to promote the effective management of humanresources. The DIC Vision 2030 long-term management plan, announced
in February 2022, recognizes human resources as capital that is crucial to
WKHH[HFXWLRQRIPDQDJHPHQWVWUDWHJLHVLGHQWL¿HVWKUHHVWUDWHJLFSULRULWLHVfor building a strategic human resources portfolio that maximizes the value

The DIC Group is promoting the swift implementation of measures in linewith these strategic priorities, which are to foster human resources, ensure
mobility (hiring, retention and succession), and improve engagement
and organizational cohesiveness, seeing this as essential to building ahuman resources portfolio that will ensure the Group achieves the goalsof DIC Vision 2030. The Group is also working to build a new personnel
management platform by advancing initiatives to reinforce its humancapital from the perspectives of framework creation, risk management andcorporate culture/work style reform.

DIC Vision 2030: Three Strategic Priorities and a Personnel Management Platform
Three strategic priorities
Foster human resourcesz Global-based talent management and leadershiptrainingz Promote reskilling to maximize human resources

Ensure mobility (hiring, retention and succession)z Actively recruit people from different industries andpeople with digital capabilities
z Achieve optimal balance between specialists andgeneralists

Improve engagement and organizational cohesivenessz Promote communication and use empathy and trust to
cultivate solidarity
z Advance innovation by encouraging enthusiasm about
taking on challenges

Personnel management platform
Framework creation: Global HR system

Risk management: Safety and compliance‫ ٴ‬Facilitate autonomous, multitrack career building‫ ٴ‬Ensure occupational health and safety, and appropriate labor practices‫ ٴ‬Adopt global HR system to create standardized Group framework‫ ٴ‬Improve compliance and reinforce HR governanceCorporate culture : Value diversity and inclusion‫ ٴ‬Promote diversity, recognizing it as a source of competitiveness‫ ٴ‬Nurture inclusion, recognizing it as essential to making diversity a competitive advantage

Work style reform: Bolster job satisfaction and productivity‫ ٴ‬Implement reforms designed to increase job satisfaction, as well as workplace reforms and process reforms that reinforce productivity❷ WSR 2020

・Establish a foundation that empowers employees to fully exercise
their abilities.
・Adopt systems that ensure employees’ challenges and achievements are
HYDOXDWHGDSSURSULDWHO\DQGUHÀHFWHGWRWKHPD[LPXPGHJUHHSRVVLEOH
in their treatment.
・Support career development for individual employees based on a
performance-oriented approach.
Ɣ Workplace Reforms
Realize work environments that motivate employees to achieve Company,
department/division and individual objectives, and make it possible for them
to work comfortably and productively, anytime and anywhere, in collaboration
with team members, colleagues and related parties. To this end, establish aneffective remote work system by creating an infrastructure that fully deploys IT
technologies and by achieving improved employee IT literacy.
Ɣ Process Reforms
Dramatically improve the productivity of individuals, departments/divisions
and the entire Company and reinforce the Group’s competitiveness byleveraging DX to revamp existing work styles and business processes andby building new business models.

In fiscal year 2022, Work Style Revolution (WSR) 2020, which waslaunched two years earlier as a limited-time project to develop newwork styles with the aim of boosting employee job satisfaction andproductivity, was transformed into an all executive–led committee in which
all employees will participate. In addition to seeking to resolve existing
issues, the rapid advance of digitalization, together with the advent of
COVID-19 and projections for the post-pandemic “new normal,” highlighted
a need to revamp work styles to ensure job satisfaction and productivity
in a continuously evolving environment, a task to which all executives
have committed themselves. In fiscal year 2023, measures to reinforce
management human capital were also taken up, in line with DIC Vision
2030, as well as themes such as changes in corporate culture and related
issues, with the goal of strengthening the win–win relationship between DIC
and employees.
WSR 2020 Committee Reforms and Targets
Ɣ Job Satisfaction Improvement Reforms
Create workplaces that embody The DIC Way by encouraging enthusiasm about taking
on various challenges, evaluating performance fairly and recognizing personal value.

DIC Report 2023

99

Human Resources Management❸ Basic Personnel Statistics (DIC)

Number of
employees

MaleFemaleOverallMale

Average age

FemaleOverall

Averageyears ofemployment
New
graduates
hired

Male
FemaleOverallMale
FemaleOverallFiscal year 2020

Fiscal year 2021

Fiscal year 2022

2,669
691
3,360
42.7
42.5
42.7
18.3
20.1
18.6
59
22
81

2,659
686
3,345
42.9
42.8
42.9
18.2
20.2
18.6
42
18
60

2,646
709
3,355
42.7
42.6
42.7
17.7
19.5
18.1
44
22
66

Retention rate
(after three
years)

Male

Mid-career hires(percentage of
total new hires)

Male

Separations(voluntary)(number ofindividuals)

Male

FemaleOverallFemaleOverallFemaleOverallMale

Separation rate(voluntary)

Note: The number of employees refers to individuals registered as employees of DIC Corporation and thusGLIIHUVIURPWKH¿JXUHLQWKHDQQXDOVHFXULWLHVUHSRUWFemaleOverallFiscal year 2020

Fiscal year 2021

Fiscal year 2022

(Fiscal year 2017 hires)(Fiscal year 2018 hires)(Fiscal year 2019 hires)

93.0%
90.0%
92.1%
63
7
53.8%
54
12
66
2.0%
1.8%
2.0%

84.4%
81.8%
83.6%
109
30
67.8%
43
16
59
1.6%
2.3%
1.8%

92.3%
100%
94.0%
52
3
40.4%
33
16
49
1.2%
2.3%
1.5%

to launch a variety of global talent management initiatives. Beginning in¿VFDO\HDUUHJLRQDOKHDGTXDUWHUV¶SHUVRQQHOGHSDUWPHQWVDUHZRUNLQJto share and integrate their respective human resources information andtraining know-how, among others.

2. Three Priority Strategies❶ Foster Human Resources(1) Global-Based Talent Management
One of the basic strategies outlined in the DIC Vision 2030 long-term
management plan is to establish a more robust global management
FRQ¿JXUDWLRQ*XLGHGE\WKLVVWUDWHJ\WKH',&*URXSLVVWULYLQJWRLGHQWLI\diverse, capable human resources around the world to nurture as future
management candidates. The Group’s regional headquarters, which
oversee operations in Japan (corporate headquarters), the Americas and(XURSH*UHDWHU&KLQDDQGWKH$VLD±3DFL¿FUHJLRQDUHZRUNLQJWRJHWKHU &RQÀJXUDWLRQIRU)RVWHULQJ+XPDQ5HVRXUFHVThe DIC Group has formulated four basic policies for fostering humanresources, based on which it has developed training programs that ensure
employees maintain a high level of competence and the ability to respondflexibly to dramatic changes in business conditions while continuously
creating new value.

Four Basic Policies for Fostering Human Resources
PolicyDetails1

Build a systematic leadership pipeline.
This will enable DIC to identify future management candidates and young prospective leaders and to make focused investments in the training of such individuals.

2

Promote the global standardization of job skills.
The Company will devise an online learning platform designed to equip individual employees around the world with the specialized skills and know-how required toexpertly perform a diverse range of jobs. This platform will facilitate the formulation of an individually optimized learning environment that enables employees to takeas many courses as they need.

3

Support the efforts of employees to realize their own career paths.
DIC will assist the efforts of employees to design their own careers and provide crucial related support, including by ensuring the right people are in the right places.

4&XOWLYDWHVHOIVXI¿FLHQWHPSOR\HHVThe Company will seek to do this by nurturing individuals in various jobs and positions who understand what is expected of them and are able to routinize
responsibilities, and by empowering them to make changes.

Training Programs for Human Resources
Program

Details

1. DIC Leadership
Program

Objective: Build a systematic leadership pipeline
Enables expanded investment in training talented human resources and systematically fostering leadership candidates; seeks to support the acquisition ofadvanced management skills and global business skills by leadership candidates who will be critical to driving growth for DIC over the medium to long term

2. DIC Skills Improvement
Program

Objective: Promote the global standardization of job skills'HYLVHGWROLIWZRUNDQGMREVNLOOOHYHOVJOREDOO\E\SURPRWLQJMRERULHQWHGLQGLYLGXDOO\RSWLPL]HGWUDLQLQJUDWKHUWKDQRQHVL]H¿WVDOOKXPDQUHVRXUFHVdevelopment

3. DIC Career Development
Program

Objective: Support the efforts of employees to realize their own career paths
Allows individual employees to chart their own careers paths, as well as provides access to support from mentors both within and outside the Company;
one of two programs—the other being the DIC Skills Improvement Program—that supports the realization of career goals

4. DIC Action Learning
Set Program

2EMHFWLYH&XOWLYDWHVHOIVXIÀFLHQWHPSOR\HHV
Seeks to cultivate employees who are capable of acting on their own and driving change, and who understand what is expected of them and are able toroutinize responsibilities

DIC Report 2023

100

Human Resources Management○ Leadership Training
DIC chooses talented employees with the aim of systematically cultivating theleaders of the future and dispatches them to a variety of external institutions
providing training in diverse areas, including liberal arts. In fiscal year 2022,
the Company began offering the Prospective Leader Development Program,the target of which was expanded to include employees in their late 30s, one
component of which is “global leader skills” training, which, as its name implies,
is designed to impart the knowledge and skills critical to management.

necessary to spearhead the DIC Group’s digital transformation. Of note, in
addition to seeking experienced mid-career individuals who it expects will be able
WRKLWWKHJURXQGUXQQLQJLQ¿VFDO\HDU',&ZLOODGRSWUHFUXLWPHQWE\MRE
category for new graduates, underscoring its medium- to long-term perspective
toward growing and raising the overall level of its human resources portfolio.
(2) Support for Autonomous Career Building,Q¿VFDO\HDU',&ODXQFKHGDQLQKRXVHUHFUXLWPHQWV\VWHPGXEEHG³-RE
Challenge.” With the increased mobility of human resources in the labor market
as a whole, the Company saw the need for a system that gives employees theopportunity to seek jobs that suit them in-house, supporting their desire to forge
the career they desire while at the same time optimizing the allocation of humanresources across the DIC Group. In the four years since, approximately 50
LQGLYLGXDOVKDYHWDNHQDGYDQWDJHRIWKLVV\VWHP,Q¿VFDO\HDU',&SODQVto introduce a new system called “Job Challenge+ (Plus),” which will enable
employees to attempt a job in another department on a temporary basis while
continuing to serve in their current capacity.

○ Career Building
DIC extends support for career building that allows individual employees todesign their own careers and provides an arena for them to continuously expand
DQGSROLVKWKHLUVNLOOV,Q¿VFDO\HDUWKH&RPSDQ\LQWURGXFHGDVHQLRUOHYHOFDUHHUWUDLQLQJFRXUVHIRUHPSOR\HHVUHDFKLQJWKHDJHRI,Q¿VFDO\HDU2022, DIC added a new junior-level career training course for employees when
they reach 28 and a mid-level career training course for employees between theages of 38 and 42. The Company also provides “self-career dock” training on aperiodic basis.

(3) Promote Succession Planning
DIC promotes succession planning from the perspective of ensuring business
FRQWLQXLW\DQGIRVWHULQJKXPDQUHVRXUFHV,Q¿VFDO\HDUWKH&RPSDQ\KHOG
WKH¿UVWJOREDOKXPDQUHVRXUFHVPDQDJHPHQWPHHWLQJDQHZIRUXPIRUKXPDQ
resources and other departments to share information on human resources andrelated issues, with an important agenda item being succession planning for key
SRVLWLRQV/RRNLQJDKHDGVXFKLQIRUPDWLRQZLOOEHUHÀHFWHGLQHIIRUWVWRIRVWHU
human resources.

○ Reskilling to Maximize Human Resources
DIC views reskilling as a crucial component of its basic strategy of reinforcing
its management of human capital. Rather than a conventional, narrowly focusedprogram, the Company promotes reskilling in a broad range of areas. As apart of this effort, in fiscal year 2021 DIC began offering subscription-based
online programs such as GLOBIS Unlimited and Udemy Business, which allow
employees to freely choose the courses they need from a wide selection. With
WKHJRDORIHQKDQFLQJGLJLWDOOLWHUDF\LQ¿VFDO\HDU',&LQWURGXFHG6FKRR
for Business, an online course that enables employees to easily acquire wideranging IT-related and digital expertise, such as data-driven and value creation.

❸ Improve Engagement and Organizational Cohesiveness(1) Conduct Surveys to Assess Engagement
As a WSR 2020 initiative aimed at improving job satisfaction, DIC began
conducting periodic employee awareness surveys of DIC Group employees
LQ-DSDQLQ¿VFDO\HDU7KH¿QGLQJVRIWKLVVXUYH\DUHXVHGQRWRQO\WR
assess engagement with employees but also to identify issues to be addressedby the WSR 2020 Committee and Group human resources departments and to
HYDOXDWHWKHUHVXOWVRILQLWLDWLYHVDOUHDG\LPSOHPHQWHG7KH¿QGLQJVRIWKH¿VFDO\HDUVXUYH\ZHUHVOLJKWO\PRUHSRVLWLYHWKDQLQ¿VFDO\HDUWKH¿UVW
time the survey was conducted. DIC will continue working to improve employee
engagement through various WSR 2020 Committee initiatives.

❷ Ensure Mobility
Realizing business portfolio transformation, a basic strategy of DIC Vision
2030, necessitates diversifying the DIC Group’s human resources portfolio andmanaging it effectively and in accordance with business needs. DIC recognizes
that this requires creating a human resources system that ensures mobility
within the Group, enabling employees to fully exercise their abilities beyond
national, regional and departmental boundaries. To this end, the Company has
LGHQWL¿HGWKUHHNH\FRXUVHVRIDFWLRQ$FWLYHO\UHFUXLWLQGLYLGXDOVIURPGLIIHUHQW
industries and people with digital capabilities, support autonomous careerbuilding and promote succession planning.

(2) Promote Communication and Use Empathy and Trust to
Cultivate Solidarity
Robust communication is essential to increasing employee engagement. One
LVVXHKLJKOLJKWHGE\WKH¿VFDO\HDUHPSOR\HHDZDUHQHVVVXUYH\ZDVDODFNRIFRPPXQLFDWLRQEHWZHHQVXSHULRUVDQGVXERUGLQDWHV,QUHVSRQVHLQ¿VFDO
year 2022 DIC introduced a system of one-on-one meetings beginning with thegoal of promoting communications between these two key groups. In addition to
the concrete efforts necessary to establish this system, the Company developeda management communications training program for employees at that level,
as well as training for all employees in how to conduct one-on-one meetings
IRUVXERUGLQDWHVDVDSUHUHTXLVLWHWRKLJKHURI¿FH$TXHVWLRQQDLUHXVHGE\WKH
Company in December 2022 to gauge the actual status of one-on-one meetings
revealed that 67% of companies implemented meetings at least once every two
PRQWKVDQGWKDWRIVXERUGLQDWHVZHUHVDWLV¿HGZLWKWKHPHHWLQJV

Actively recruit individuals from different industries

1 and people with digital capabilities
Mobility of humanresources

2 Support autonomous career building
3 Promote succession planning(1) Actively Recruit Individuals from Different Industries andPeople with Digital Capabilities
7RDFFHOHUDWHWKHGLYHUVL¿FDWLRQRILWVKXPDQUHVRXUFHVSRUWIROLR',&LVVWHSSLQJup efforts to recruit experienced individuals, primarily from different industries.
,Q¿VFDO\HDUWKHSHUFHQWDJHRIQHZUHFUXLWVWKDWZHUHH[SHULHQFHGPLG
career hires exceeded 60%. (Calculation: Experienced mid-career hires / (Newgraduates + Experienced mid-career hires)). The Company is also intensifying
efforts to hire people with digital capabilities to secure the human resources

DIC Report 2023

101

Human Resources Management● Revision of Systems to Enhance the Performance-

3. Framework Creation: Personnel System, Global

Human Resources System and Work Style Reform❶ Promote Personnel System Reforms to Facilitate
Autonomous, Multitrack Career Building
In January 2022, DIC revised its personnel system for both management-level
and regular employees with the aim of enhancing organizational capabilities
to support qualitative reforms in existing core businesses and the successfulcommercialization of new businesses. In revising these systems, the Company
LGHQWL¿HGNH\SROLFLHVE\LPSURYLQJDGGHGYDOXHDQGSURGXFWLYLW\HQFRXUDJLQJD
performance- and challenge-oriented focus, and supporting career building, in
OLQHZLWKZKLFKLWGUDPDWLFDOO\UHYDPSHGLWVTXDOL¿FDWLRQEDVHGUHPXQHUDWLRQDQG
evaluation systems. Going forward, DIC will continue working to ensure thesesystems function effectively as a framework for all employees to work towardachieving the goals of DIC Vision 2030.
(1) Qualification-Based Remuneration System: Encouraging
Autonomous Career Building and Maximizing Performance● Job- and Performance-Oriented Qualification-BasedRemuneration System
To ensure employees clearly understand DIC’s mission and are able
to fully realize their potential, the Company defined rank- and jobspecific roles, necessary abilities, and performance expectations for
management-level and regular employees. At the same time, DIC
UHYLVHGLWVTXDOL¿FDWLRQEDVHGUHPXQHUDWLRQV\VWHPPDNLQJLWPRUHMRE
oriented, disclosing the roles and abilities expected of higher-ranking
employees to make it possible for individual employees to map out theirown career prospects. The new system also places greater emphasis on
performance, making it possible to reward employees who have achieved
significant results at an earlier stage of their career than ever before
regardless of their job or academic history.
● Multitrack Career Building,Q¿VFDO\HDU',&LQWURGXFHGDV\VWHPIRUIRVWHULQJVSHFLDOLVWVWKDW
is, employees with highly specialized or unique capabilities, to accompany
its existing system which seeks to cultivate generalists, as part of therevision of its qualification-based remuneration system, to facilitate
multitrack career building. As well, the Company created a scheme that
divides management-level employees, depending on their particular role/job, into either people managers or professionals, facilitating promotion inaccordance with individual strengths and aptitudes.
New Qualification-Based Framework

People managers

Specialists
Management-level
employees(Evaluated based on
performance of role)

Professionals

Regular employees(Evaluated based on exercise of abilities)

Job classification

Production

Sales/
marketingTechnology/
R&D

Administration

Multiple career paths

Newbusinesses

Oriented Nature of Evaluations
To further advance its emphasis on performance and evaluate the challenges
taken on by employees, DIC partially revised its approach to setting targets
and completing evaluation sheets, creating a mechanism to facilitate amore quantitative assessment of performance, and reviewed conduct andprocess assessment procedures to encourage autonomous action. This will
make it possible to evaluate the cumulative achievements of employees who
have acted autonomously to address complex challenges in a manner that
contributes to the achievement of long-term management objectives.
● Personnel Evaluation System as a Tool for Encouraging
Employees to Take On Challenges
To further encourage employees to take on challenges, DIC recently
introduced a mechanism whereby points are added to the evaluation of
employees who have taken bold steps that have yielded results over the
medium to long term, thereby further encouraging them to seek challenges
and drive innovation.
● Evaluation System as a Tool for Career Building
DIC recently adopted a career goal sheet for regular employees to plan andtrack their own career development. Using these sheets allows individuals
to take stock of their own careers at present and envision where they want
to be in the future by setting goals for one year and three years ahead. This
enables employees to design their own careers and set appropriate goals
with the assumption that their superiors will comment on career goal sheets
and incorporate them into one-on-one meetings to assist them in building
IXO¿OOLQJFDUHHUV&DUHHUJRDOVKHHWVDUHDOVRXVHGLQSHUVRQQHOH[FKDQJHV
and other cross-departmental initiatives.
● Fair and Impartial Evaluations
Individuals responsible for evaluating performance hold meetings withregular employees to ensure the integrity of evaluations and increase thevisibility of standards used to identify talented human resources. In addition
to promoting the fair and impartial administration of the evaluation process
in each department and division, these evaluator meetings will be used tosupport key aspects of career building, including job rotations and training.
❷ Create a Global Human Resources System and a Standardized
Group Framework
With the rapid expansion of its global operations, DIC recognizes that
securing and fostering human resources around the world and ensuring
the right people are in the right places across the DIC Group are essential
to bolstering the value of the Group’s human capital and effectively
carrying out its management strategies, and has thus sought to integrate
global human resources management. To this end, the Company has
promoted the adoption of harmonized personnel systems and management
DSSURDFKHV,Q-DQXDU\',&DQG',&*UDSKLFVXQL¿HGTXDOL¿FDWLRQ
standards for their approximately 1,300 management-level—i.e., manager
and above—employees, replacing traditional ability-based standards withrole-based standards. As a consequence, consistent duty- and role-based
standards are now used for the majority of such employees in Japan, the$PHULFDVDQG(XURSHWKH35&DQGWKH$VLD±3DFL¿FUHJLRQIn contrast, with a few exceptions that manage Group human resources, humanresources systems have not been integrated. Addressing this issue—which DIC
sees as critical to the achievement of global human resources management—
will require considerable effort going forward. With the growth of ESG
investment, DIC is also increasingly expected to provide accurate disclosure
UHJDUGLQJKXPDQFDSLWDODVDNH\FRPSRQHQWRIWKHQRQ¿QDQFLDOLQIRUPDWLRQ

Generalists(2) Evaluation Systems: Inspiring Employees to Achieve
Results and Take on Challenges

DIC Report 2023

102

Human Resources Management

investors demand. This further underscores the importance of centralizing themanagement of human resources information within the Group. Looking ahead,
DIC will continue working to build a global human resources system and achievea standardized Group framework.
Diversity❸ Step Up Work Style Reforms to Enhance Job Satisfaction
and Productivity(1) Implement Reforms to Improve Job Satisfaction
The WSR 2020 Committee is an all executive–led committee in which
all employees will participate. The committee is charged with creating
workplaces that embody The DIC Way by encouraging enthusiasm
about taking on various challenges, evaluating performance fairly andrecognizing personal value. To this end, the committee’s Job Satisfaction
Improvement Reform Working Group is spearheading the implementation
RIDYDULHW\PHDVXUHVIURP¿YHSHUVSHFWLYHVQDPHO\³GLYHUVLW\´³LQQHU
branding,” “communication,” “career support” and “sense of belonging.”

Inner branding

Communication

Job Satisfaction
Enhancement
ReformCareersupportSense ofbelonging

Deploying CliftonStrengths®
As a measure to improve job satisfaction and productivity, DIC has deployed CliftonStrengths®, a tool for assessing the strengths of employees,
DFURVVDOORI¿FHVDQGGHSDUWPHQWVRYHUDSHULRGRIDSSUR[LPDWHO\HLJKWPRQWKV,Q¿VFDO\HDUEULH¿QJVZHUHKHOGPRQWKO\WKDWIRFXVHGRQKHOSLQJSHRSOHXQGHUVWDQGWKHLURZQXQLTXHDWWULEXWHVE\FRPSOHWLQJWKH6WUHQJWKV)LQGHURQOLQHTXHVWLRQQDLUH,Q¿VFDO\HDUWKH&RPSDQ\will use CliftonStrengths® for team building within departments with the objective of creating workplaces where people value each other’s qualities
and methods and understand how different strengths can complement each other—in other words, workplaces that prioritize well-being and an
environment in which each and every employee is comfortable.

(2) Increase Productivity through Workplace Reforms
In January 2018, DIC launched the DIC Telework System, whichis available to all employees regardless of workplace. With
the emergence of COVID-19, use of the system became morewidespread. A significant number of employees continue to use
telework as they navigate the reality of the virus as a permanent partof life.

are divided into zones equipped for different types of activities. Other
notable features are enhanced communication capabilities, which
help address one of the main challenges of telework, and an open
plan design.
DIC has since embarked on the second phase of the plan, which
focuses on revamping work spaces used by administrative
departments. The Company aims to complete this phase in fiscal
year 2023.

Seeing the expanded use of telework as an ideal opportunity forwork style reform, the Company also began promoting a plan to
improve productivity and job satisfaction for employees opting to use
the system as a WSR 2020 Committee initiative. After two years ofplanning and deliberation, new work spaces for departments that are
SDUWRIWKH&RPSDQ\¶VEXVLQHVVJURXSV²WKH¿UVWSKDVHRIWKHSODQ²
opened at corporate headquarters in February 2023. These work
spaces are designed to optimize a hybrid of remote and on-site workand leverage the advantages of both. The concept behind these newwork spaces is Activity-Based Work (ABW), a work style emphasizing
autonomy that has garnered considerable attention in recent years.
ABW allows employees to choose the location, setting and support
function that best suits the nature of the particular task in which they
are engaged from a variety of options. Accordingly, the work spaces

DIC Report 2023

103

Human Resources Management

4. DIC’s Approach to Diversity

providing equal opportunities and prospects to all employees
demonstrating enthusiasm (equity) and enabling all employees
to exercise their capabilities and play an active role (inclusion).
The Company believes that achieving these three goals will help
employees feel a sense of being accepted and valued (belonging).

❶ Advance Efforts to Realize DEI&B
Viewing diversity, equity, inclusion and belonging (DEI&B) as
intertwined concepts, DIC is committed to creating workplaces that
respect the individuality of each and every employee (diversity),
What Is “Equity”?

Belonging
Belonging centers around an employee feeling a strongDI¿QLW\WRWKHFRPSDQ\DQGDZLOOLQJQHVVWRFRQWULEXWHWR
its growth.

“Equity” and “equality” are not synonyms. Equality refers to the idea that all people
should be treated the same irrespective of any individual differences. Equity➡

recognizes that people have differences that must be considered to ensure they havefair access to opportunities.

Diversity

Inclusion

A diverse company is one that employs a broad
spectrum of individuals without discrimination basedon characteristics such as gender, national origin,disability status, age, values or beliefs.

EQUALITY

EQUITY➡

DIC believes firmly that the added value created by diverse humanresources amplifies social value and that this, in turn, leads to long-term
improvements in its corporate value. The diverse individuals comprising theCompany’s labor force come from various backgrounds and bring with thema wide range of individual capabilities and skills. It is these “differences”
that will drive innovation going forward, enabling the DIC Group to live up to
its vision: “We improve the human condition by safely delivering color andcomfort for sustainable prosperity—Color & Comfort.”

A company is inclusive if each employee’s
experience, abilities and beliefs are recognized andrespected, encouraging empathy and teamwork.

&
EquityA company that is equitable ensures that all employees aretreated fairly and have the same access to opportunities byaddressing inequalities and imbalances.

male employees and efforts to advance career opportunities for women,
including pay differences for male and female employees. The Company
has set the key performance indicators (KPIs) shown in the table below.
As can be seen, in fiscal year 2023 the percentage of management
positions occupied by women increased by nearly a full percentage point,underscoring a gradual but steady march toward the target level.
To ensure these quantitative targets are met, DIC is stepping up efforts toreinforce awareness of the importance of valuing diversity and fostering
inclusion, moving forward with efforts to ensure psychological safety, whichis essential to embracing diversity, and to create a corporate culture that
supports well-being by inspiring job satisfaction and a sense of purpose.

DIC has established—and discloses other information regarding—quantitative targets not only for the diversity of its executives and employees
but also for key aspects of work–life balance such as childcare leave forDiversity KPIs
DIC

Achievements

1

Percentage of directors and Audit & Supervisory Board members accounted for by women and/or foreign nationals

2

3HUFHQWDJHRIH[HFXWLYHRI¿FHUVDFFRXQWHGIRUE\ZRPHQDQGRUIRUHLJQQDWLRQDOV

3Targets

15.4%

➡

16.7%

➡

Percentage of management positions occupied by women

7.1%

➡

8.0%

4

Percentage of new employees accounted for by foreign nationals

2.9%

➡

5.0%

5

Percentage of new recruits accounted for by women

33.3%

➡

Maintain at 30%

6Percentage of mid-career hires accounted for by women

21.6%

➡

January2023

20.0%
January
2026

20.0%

30.0%
Fiscalyear 2025

7

Percentage of male employees using the Childcare Leave Program

25.9%

➡

8

Percentage of employees using the Leave to Assist with Parenting Program

80.6%

➡

90.0%

9

Percentage of total labor force accounted for by individuals with disabilities

2.5%

➡

In excess of
the legally
mandated level

Regular employees (indefinite-term, full-time)

75.3%

➡

Non-regular employees (part-time, fixed-term)

52.2%

All employees

65.6%

Fiscal
year
2022

30.0%

Gender pay gap (pay for female employees as a percentage of that for male employees)

10

DIC Report 2023

104

Figures are only available for¿VFDO\HDU.3,VZLOOEH
set hereafter.

Human Resources Management

Diversity Across the DIC GroupThe DIC Group is a multinational organization that as of December 31, 2022,
comprised 190 companies in 63 countries and territories. Given the rapid paceof change in geopolitical, market and business conditions, it is more important
than ever before for the Group’s business and human resources to work
together across borders and cultures. In fiscal year 2022, human resourcesmanagers, as well as diversity, equity and inclusion managers, from Japan,
the Americas and Europe, the PRC and the Asia–Pacific region gathered fora global Diversity Team meeting, where they promised to reinforce global
FROODERUDWLRQEHWZHHQQRZDQG¿VFDO\HDUWRSURPRWH*URXSZLGHDFWLYLWLHV
and initiatives optimized for each region.

evolving environment. To this end, a cross-cultural communication workshop
was held on the theme of “cultural mapping”* with the goal of creating afoundation for global cooperation aimed at deepening diversity and inclusion
Groupwide going forward.
Since each region has its own challenges and measures, initiatives optimized
for each region include sharing diversity and inclusion practices among regions
to create educational materials for regional use in the future to promote
understanding of the Group as a whole. Through this and other efforts, DIC will
promote the creation of an environment that enables talented, diverse humanresources to excel, thereby capitalizing on diversity to drive innovation.
* Cultural mapping is a cross-cultural management framework advocated by Erin Meyer,
Professor of Management Practice at Institut Européen d’Administration des Affaires (INSEAD).

Groupwide activities include working together on a global basis, guided by The
DIC Way, to bolster know-how and awareness of cross-cultural communication
and respond effectively to differing diversity and inclusion–related issues in an
Employees by Region of Origin

2,810

1,405

Breakdown of Labor Force by Gender

3,663

Asia–PacificNorth America

2,299

504

Central & South America

1,135

270

Japan

3,891

932

Europe/Middle East/Africa

4,573

1,126

7

PRC

Employees by
Region of Origin

Europe/Middle East/Africa

1,967

Japan
Central & South America

4,823

15

North America

5,714

PRC

1,456

Asia–Pacific

3,024
0%

Employees in Management Positions and Percentage ofManagement Positions Occupied by Women by Region

10%

20%

Male

Total number of employees in management
positions (global)

3,893 (male: 3,287, female: 606)

Percentage of management positions
occupied by women (global)

15.57％

511

30%

40%

639
50%

Female

60%

70%

80%

90%

100%

Other

Number of persons
1,500

Total number of employees in management positions

1,264

Number of female employees in management positions

1,198

Number of male employees in management positions

984

1,000

801
721
590
442

500

327

309
131

173

129
44

0

242

183
66

67

115

North America

Central & South America

Japan

Europe/Middle East/Africa

PRC

Asia–Pacific18.17%

25.43%

5.22%

18.60%

21.68%

26.02%

Percentage ofmanagement positions
occupied by women

DIC Report 2023

105

Notes:
1. As of December 31, 2022,
the number of employees inmanagement positions identifying
as “other” was zero.
2. Figures are as of December 31,
2022. Because data for certain
DIC Group companies includedin the annual securities report is
QRWLQFOXGHGKHUHWKHVH¿JXUHVdiffer from those published in the
securities report.

Human Resources Management

VOICE

Diversity and the DIC GroupAs of December 31, 2022, the DIC Group had a global labor force of 22,743 in 63 countries and territories. As a multinational organization, weare diverse in terms not only of gender but also of culture, race, religion and beliefs. Looking ahead, we will work to expand interaction among
employees to further capitalize on the Group’s diversity to drive innovation and maximize synergies.
In Japan, the number of women in management positions is lower than elsewhere. We will do everything in our power to change this, implementing
various measures to increase this number as well as boost the percentage of management positions occupied by women, by creating working
environments that enable female employees to build successful careers.
❶ダイバーシティロードマップ
Executive Oﬃcer; Head of ESG Unit, In Charge of Diversity, DIC Corporation

Kuniko Torayama❶ Diversity Road Map

Road Map for Promoting Diversity
Diversity Initiatives● Fiscal years 2022–2023
Expand focus to encompass the many characteristics that make people unique・Transform mindsets and corporate culture by encouraging cross-cultural understanding,awareness of unconscious biases, etc.
・Support career advancement by dispatching employees to external training institutions
・Support a healthy work–life balance/promote work style reform through the WSR 2020 Committee

2023

2022

● Fiscal years 2019–2021
Implement measures to promote career opportunities for foreign nationals
・Establish a new personnel system/conducive work environments
・Transform awareness of inclusion
・Create support systems

Putting the right people in theright places around the world

Efforts to manage diversity
and make work environments
conducive to innovation

2019● Fiscal year 2023 forward
Global deployment
・Organize diversity teams at
Group companies worldwide
・Promote diversity across theglobal DIC Group

In-house directors and executive officers

Sun Chemical● Fiscal years 2016–2018
Target the expansion of career opportunities for women
・Transform mindsets and corporate culture・Support career advancement
・Support a healthy work–life balance/
promote work style reform

Initiatives to create work environmentsthat enable employees to maximize
their capabilities

Asia–Pacific region

Japan
Maximizing Groupcapabilities

2016

Measures to promote awareness and acceptance of diversity,
career opportunities for female employees, work style reform
measures and establishment of a framework
Greater China
Symbols represent employees： with diverse capabilities❷ Hiring of Foreign Nationals and Support for Retirement Planning

year 2019, DIC has worked actively to support the careers of non-Japaneseemployees by creating working environments that enable individuals to exercise
their capabilities and play an active role. To support these employees’ careers,
the Company promotes infrastructural and system improvements, including
establishing a consulting desk, translating key in-house materials into English
and, in December 2020, introducing biannual networking conferences. In¿VFDO\HDU',&DOVRLQWURGXFHGFURVVFXOWXUDOWUDLQLQJVHVVLRQVIRUQRQ
Japanese employees and the departments to which they are assigned.

With the objective of securing talented individuals with advanced specializedcompetencies, global perspectives and language proficiency, DIC actively
promotes the hiring of international students completing undergraduate or
graduate studies at Japanese universities, as well as Japanese and foreign
nationals who are completing undergraduate studies at overseas universities
or have extensive specialized experience and expertise. At present, 46 foreign
nationals are employed in various capacities at the Company. Since fiscal
Nationalities of Non-Japanese Employees(Full-Time, Part-Time and Temporary)
1
1
1
1
2

1
1

3
3
3

Breakdown by 19
Nationality

4

6

PRC
ROK
Malaysia
United StatesIndonesia
ThailandMongolia
TaiwanIndia
Spain
FranceGermany
New Zealand

Number of Foreign Nationals Currently
Employed at DIC
Sales
positionsTechnical
positions

Department/
divisionadministration

2

29

3

DIC Report 2023

106

Postedoverseas

7

Production

5

Total

46

Human Resources Management

VOICE

I am focused on discovering new themes and taking on new challenges with the aim of making a positive
impact on society.

In my previous job, I encountered the DIC Group’s technologies in areas such as pigments and LCs, which is how I came to know about theCompany. I used to work in the R&D department of a global chemicals manufacturer in Japan, so I had an interest in product development. Sincejoining DIC’s Chiba Plant, I have focused on exploring new research themes and different markets such as new resins for industrial-use coatings.
Sustainability, including the reduction of CO2 emissions, recycling and the use of biomass materials, is always a central consideration in my job in
SURGXFWGHYHORSPHQW)RUWKLVUHDVRQ,¶PDOZD\VSURXGWKDWZKDW,¶PGRLQJZLOOEHQH¿WVRFLHW\LQWKHIXWXUHThe DIC Group’s extensive global presence means there are also opportunities to work with R&D teams and new Group companies in othercountries and territories. I look forward to further expanding and enlivening exchanges and discussions with our overseas counterparts.
Functional Materials Technical Group 4, Functional Materials Technical Division, Chiba Plant, DIC Corporation

TOPIC

Fabien Nekelson

Networking Conference Held for Non-Japanese Employees

7KH¿IWKQHWZRUNLQJFRQIHUHQFHIRU',&*URXSHPSOR\HHVZKRDUHIRUHLJQQDWLRQDOV
was held in January 2023 at the Company’s corporate headquarters in Tokyo. These
FRQIHUHQFHVZKLFKZHUHODXQFKHGLQ¿VFDO\HDUDUHKHOGWZLFHDQQXDOO\WR
foster ties among non-Japanese employees. All previous conferences had been
FRQGXFWHGRQOLQHEHFDXVHRI&29,'VRWKLVZDVWKH¿UVWWLPHIRUSDUWLFLSDQWVWR
actually meet in person. Participants were divided into groups to exchange opinions
on the format of future networking conferences with the goal of making it an evenmore meaningful event. Gathering in the same space improved communication andfacilitated deeper discussions about what they expected of the conferences, andwhat they felt would be ideal in terms of frequency and timing.

non-Japanese employees may feel regarding their work environment or career, as
well as to help bolster their motivation.

DIC looks forward to continuing to hold this networking conference in the future,
incorporating the views of participants, as one way to ameliorate any anxiety that
❸ Expansion of Career Opportunities for Womenenvisage their own ideal work styles and professional growth to
KHOSHQVXUHWKH\HQMR\DFWLYHDQGIXO¿OOLQJFDUHHUV

In line with its commitment to promoting diversity, DIC
implements a variety of initiatives to expand career opportunities
for female employees. Having established a full-scale program
to support employees in balancing the demands of a careerand childcare in 2007, since fiscal year 2016 the Company
has pushed ahead with measures to transform employee
mindsets and its corporate culture, as well as to provide training
designed to encourage the drive and determination of female
employees and broaden the range of jobs open to women. In
fiscal year 2022, the Company dispatched female employees
to take part in training offered by a third-party provider with theaim of encouraging greater drive and determination, as well as
established an in-house mentoring program. Looking ahead, DIC
will continue to take various steps to assist female employees to
2008
4 at 1 site

2015
12 at 2 sites

2018
8 at 2 sites(1) Broadening the Scope of Positions Available to Female Employees
Since first assigning four female employees to line shift jobs
at the Chiba Plant in 2008, DIC has gradually increased thenumber of female employees in production and utility control
groups across Japan, including in assistant manager and teamleader positions. At present, there are 30 female employees—
including 11 performing shift jobs—in such positions at sevensites in Japan. The Company has already made changes toimprove site working environments, including establishing breakrooms and locker rooms for women, and will continue taking
similar steps with the goal of further broadening the scope of
positions available to female employees.

2020
24 at 6 sites

2023
30 at 7 sites

Site

Production Group

Utility Control Group

Chiba Plant

11
0
3
7
2
1
2
26

2
2
0
0
0
0
0
4

Hokuriku Plant
Sakai Plant
Saitama Plant
Kashima Plant
Komaki Plant
Yokkaichi Plant
Total

DIC Report 2023

107

Human Resources Management(2) Initiatives Aimed at Expanding Career Opportunities for WomenƔ Messages from the president
Transform corporate culture andthe mindset of management-level
employees

Ɣ Seminars to promote awarenessƔ Identical uniforms for male and female employeesƔ Training for female employees in administrative positions
Ɣ Awareness training for female employeesƔ Introduction of role models

Encourage the drive and determinationof female employeesƔ Seminars to promote awareness among female employeesƔ Women in DIC ForumƔ Leadership development program for female employees
Ɣ Joint leadership development program with companies in other sectors

2016 andbeyondBroaden the scope of positions
available to female employeesƔ Assignment of female employees to production, as well as to sales and other positions involving
work outside the Company
Ɣ Inclusion of female employees in the regular system of transfers, reassignments and job rotations
Ɣ Increased hiring of womenƔ Establishment of systems to support a healthy work–life balance

Establish systems to support a healthy
work–life balance and encourage theuse thereofƔ Publication of the Libra work–life balance support guide and introduction of e-learning program for
employees taking childcare leaveƔ Introduction of system allowing management-level employees to limit the locations to which they
will accept transfers
Ɣ Launch of telework
Ɣ([SDQVLRQRIHOLJLELOLW\IRUÀH[WLPHV\VWHPƔ Diversity seminars for executives and line supervisors

Create an executive-led support systemƔ Executive-led lunch seminars for female employeesƔ Executive roundtable discussions(3) Advancing the Employment of Individuals with Disabilities
In line with its basic management philosophy of valuing
diversity and inclusion, the DIC Group strives to create
workplaces that maximize the individual attributes andtalents of its diverse human resources. In addition
to actively promoting the hiring of individuals withdisabilities, the Group does its utmost to foster aworking environment that empowers employees tofully realize their potential. On January 1, 2023, DIC
Estate Co., Ltd., was certified as a special-purpose
subsidiary.* In addition, a manager in the General
Affairs and HR Department was put in charge ofadvancing efforts to hire individuals with disabilities.
* A special-purpose subsidiary is a company that prioritizes hiring ofindividuals with disabilities and is authorized by the Minister of Health,Labour and Welfare via Japan’s Hello Work public employment office.
Employees of a special-purpose subsidiary can be regarded as employedby the parent company in calculating the percentage of the latter’s labor
force accounted for by individuals with disabilities.

Percentage of DIC’s Total Labor Force Accounted
for by Individuals with Disabilities
2.65%
2.70%

2.6%

2.58%

2.60%

2.48%
Percentage of totallabor force accounted forby individuals with disabilities
as of December 31, 2022

2.41%

2.50%

2.48%

2.40%

2.30%
Percentage of total labor force accounted
for by individuals with disabilities

2.14%

2.20%

2.06%
2.10%

(Legally mandated quota revised)

2.04%(Legally mandated quota revised)

2.00%

1.90%
Japan’s legally
mandated quota

1.94%

1.80%

1.70%

14

DIC Report 2023

108

15

16

17

18

19

20

21

22 (FY)

Human Resources Management

VOICE

We are trying to create a workplace that is both diverse and inclusive.

,Q¿VFDO\HDU,ZDVWUDQVIHUUHGIURPWKH&KLED3ODQWWRWKH%XVLQHVV6XSSRUW'HSDUWPHQWRI',&(VWDWH,KDGQRH[SHULHQFHLQUHFUXLWLQJ
and hiring people with disabilities, but participating in training conducted by third-party organizations and tours at other companies helped me
acquire the necessary know-how and skills. My work has included many valuable experiences, including conducting interviews, giving tours to
representatives of other companies and taking in interns from special needs schools.
',&(VWDWHHPEDUNHGRQDQHZSKDVHLQLWVGHYHORSPHQWLQ-DQXDU\ZKHQLWHDUQHGFHUWL¿FDWLRQDVDVSHFLDOSXUSRVHVXEVLGLDU\7KH
Business Support Department is currently working to foster human resources in line with its policy of embracing diversity and inclusion. I
appreciate the work environment we have created, which ensures that all individuals, regardless of disability status, are recognized and valued fortheir efforts. I see our mission as being to pass on accumulated experience to the next generation of employees.
Business Support Department, DIC Estate Co., Ltd.

TOPIC

Takeshi Kuroda

Expanding Interaction with Students at Special Needs Schools

DIC Estate offers internship to a large number of high school students withdisabilities from special needs schools, as well as hires such students as
employees after they graduate. On the one-year anniversary of its employee
cafeteria, DIC Estate, in cooperation with the alma mater of some of these
employees, purchased baked sweets made by current students of the schoolfor sale to DIC Estate employees. This initiative strengthened the company’s
relationship with the school. The school reported that seeing those who
graduated before them in the workplace had also motivated many current
students to rededicate themselves to their studies. Going forward, DIC Estate
will continue promoting efforts to work with special needs schools not only inTokyo but also in the suburbs of the capital.

(4) Reemployment after Retirement and Support for Retirement Planning
DIC has deployed a system that facilitates the reemployment
until age 65 of individuals reaching retirement age (60) andwishing to remain with the organization. With available options
including full-time work, part-time work and work sharing, thissystem enables reemployed individuals to maximize theirexperience, and to make full use of their accumulated technicalabilities and specialized expertise, thereby contributing tosustainable growth for the DIC Group and the training ofsubsequent generations.
',&DOVRRIIHUVFODVVHVIRUHPSOR\HHVLQWKH¿QDO\HDUEHIRUH
retirement that helps them prepare for life after they havefinished their careers. These classes provide assistance withretirement planning and education regarding the national
pension system, as well as offer retirement lifestyle simulations.

Number of Reemployed Individuals
Fiscal year 2017 Fiscal year 2018 Fiscal year 2019 Fiscal year 2020 Fiscal year 2021 Fiscal year 2022

Number of retirees (A)

69

89

96

92

103

150

Individuals seeking
reemployment

55

74

81

80

87

132

Number of individuals
reemployed (B)

55

70

77

79

84

128

Reemployment rate (B) / (A)

79.7％

78.7％

80.2％

85.9％

81.6％

85.3％

and determining remuneration. The Group divides its operations
into four regions—Japan, the Americas and Europe, Greater China
DQGWKH$VLD±3DFL¿FUHJLRQ7KHSDUHQWFRPSDQ\ZKLFKLVGLUHFWO\
responsible for Group operations in Japan, works with regional
headquarters in each of the other three regions to reinforce humanresources governance across the entire Group.

5. Human Resources Governance and Respect for Human Rights❶ Reinforcement of Human Rights GovernanceTo reinforce its human resources governance, DIC’s corporate
headquarters is involved in making decisions defining principal
management positions for the DIC Group, as well as for clarifying
authority for nominations and dismissals, evaluating performance

DIC Report 2023

109

Human Resources Management

Human Resources Governance for Principal DIC Group Management Positions
Authority for nominations and dismissals

Authority for performance evaluations

From the perspective of ensuring the sustainability of
its operations, corporate headquarters is involved indecisions regarding nomination and dismissal.

From the perspective of ensuring the DIC Group meets the target
of its management plan, corporate headquarters is involved indecisions regarding target setting and performance evaluations.

Rules governing authority/succession committee

Evaluation review committee

Regional remuneration committees

・DIC’s rules governing authority stipulate that authority
regarding appointments and dismissals lies withcorporate headquarters.
・The promotion process is monitored through thesuccession committee to determine succession.

The establishment and administration of the evaluation review
committee facilitates monitoring of efforts to standardize personnel
evaluation systems, and to ensure the appropriateness andfairness of target setting and performance evaluation.

The establishment and administration of regional
remuneration committees facilitates monitoring of theappropriateness and fairness of remuneration.

❷ Respect for Human Rights
The DIC Group actively supports global codes governing human rights,*
in line with which in fiscal year 2018 it formulated the DIC Group Human
Rights Policy and began promoting related initiatives. The DIC Group Codeof Business Conduct—which outlines standards that Group employees are
expected to observe—lays down provisions prohibiting human rights violations
and requiring respect for diversity, two philosophies that form the foundationof the Group’s corporate activities. Group employees are obliged to display
understanding of the code and provide written pledges to abide by it.

Authority for determining remuneration
Corporate headquarters is involved in decisions
regarding remuneration to ensure the adequacy
and fairness of compensation, as well as thetransparency of the decision-making process.

for the Ten Principles of the UNGC, which includes tenets regarding humanrights and labor. DIC also promotes awareness among DIC Group company
executives and employees, as well as works to enhance its inspection andmonitoring structure, to reinforce respect for human rights in human resourcesmanagement practices and to prevent the occurrence of violations.
* The International Bill of Human Rights, comprising the Universal Declaration of Human
Rights and the International Covenants on Human Rights (the International Covenant on
Economic, Social and Cultural Rights and the International Covenant on Civil and Political
Rights); the International Labor Organization (ILO)’s Declaration on Fundamental Principlesof Rights at Work; the UN’s Guiding Principles on Business and Human Rights; and the Ten
Principles of the UNGC.

,Q¿VFDO\HDU',&EHFDPHDVLJQDWRU\WRWKH81*&SOHGJLQJLWVVXSSRUW① The DIC Group Human Rights Policy(The DIC Group Human Rights Policy was updated on November 15, 2023. This is the previous version.)
As a member of society that recognizes the importance of respect for human rights and respects the basic human rights of all stakeholders, including its customers,
suppliers and employees, the DIC Group has formulated a human rights policy. Based on this policy, DIC works to increase the human rights awareness of its executives andemployees and to conduct its business activities in a manner that shows respect for human rights.
１．Positioning
This policy, which is in accordance with global human rights codes, articulates DIC’s fundamental stance on respect for human rights.
２．Scope of application
This policy applies to all executives and employees of the DIC Group. The Company shall also encourage its business partners and suppliers to adhere to thispolicy and cooperate with them to advance respect for human rights.
３．Responsibility to respect human rights
7KH&RPSDQ\VKDOOVWULYHWRIXO¿OOLWVUHVSRQVLELOLW\WRUHVSHFWKXPDQULJKWVE\HQVXULQJWKDWLWVEXVLQHVVDFWLYLWLHVGRQRWUHVXOWLQYLRODWLRQVRIWKHKXPDQULJKWVRI
stakeholders, as well as by preventing human rights abuses in the course of its business. In the event that its business partners or suppliers cause adverse humanULJKWVLPSDFWVWKURXJKWKHLUEXVLQHVVHVSURGXFWVDQGVHUYLFHVWKH&RPSDQ\²ZKLOHQRWGLUHFWO\FRPSOLFLW²VKDOOXVHLWVLQÀXHQFHWRHQFRXUDJHWKHUHVSRQVLEOH
parties to cease the practices responsible for such impacts.
４．Human rights due diligence*
7RIXO¿OOLWVUHVSRQVLELOLW\LQUHJDUGWRUHVSHFWIRUKXPDQULJKWVWKH&RPSDQ\KDVFUHDWHGDKXPDQULJKWVGXHGLOLJHQFHV\VWHPZKLFKLWVKDOOHPSOR\RQDQ
ongoing basis to identify and address human rights risks.
５．Corrective/remedial actions
Should the Company cause adverse human rights impacts or should it become evident that it has been complicit in causing such impacts, the Company shalltake appropriate corrective/remedial actions in response.
６．Compliance with applicable laws
The Company shall comply with applicable laws in the countries and territories in which it operates. The Company shall also respect international humanrights principles and work actively to promote these principles.
７．Disclosure and education/training
The Company shall periodically report publicly on the progress of initiatives implemented in line with this policy. To ensure the effectiveness of this policy, theCompany shall also provide appropriate training to its executives and employees.
８．Dialogue and discussion
The Company shall engage with stakeholders regarding initiatives implemented in line with this policy by creating opportunities for dialogue and promoting
discussion in good faith.
９．Identifying principal human rights challenges
7KH&RPSDQ\KDVVHSDUDWHO\LGHQWL¿HGSULQFLSDOKXPDQULJKWVFKDOOHQJHV,QOLQHZLWKWKLVSROLF\WKH&RPSDQ\VKDOOXVHGXHGLOLJHQFHDVDSSURSULDWH
5HFRJQL]LQJWKLVDVDQRQJRLQJSURFHVVWKH&RPSDQ\VKDOODOVRFRQWLQXHWRUHYLVHDQGDPHQGWKHVHFKDOOHQJHVWRUHÀHFWVRFLDOFKDQJHEXVLQHVVWUHQGVDQG
other factors.

* Human rights due diligence is an ongoing risk management process that a company needs to follow in order to identify, prevent, mitigate and account for how it addresses its adverse human rights impacts.

DIC Report 2023

110

Human Resources Management❸ Principal Human Rights Challenges Facing the DIC Group
Based on key global standards regarding human rights, the DIC Group
KDVLGHQWL¿HGWKHIROORZLQJDVWKHSULQFLSDOKXPDQULJKWVFKDOOHQJHVLW
faces and promotes appropriate human rights diligence in accordancewith its human rights policy. The Group will review these challenges

on a regular basis, taking into consideration factors such as socialchange and business trends, and will work methodically to strengthen
its human rights initiatives to ensure compliance with pertinent laws andregulations amid rapidly evolving global affairs.

(1) Eliminate discrimination
The DIC Group prohibits all types of discrimination, harassment and other practices that undermine the dignity of any individual. Potential targets of suchdiscrimination include Group employees, women, children, indigenous peoples, migrant workers, business partners and communities.
(2) Prevent child labor and forced labor
7KH',&*URXSSURKLELWVWKHXVHRIFKLOGODERUIRUFHGODERUVODYHODERUDQGODERUUHVXOWLQJIURPDQ\IRUPRIKXPDQWUDI¿FNLQJ
(3) Respect basic labor rights
The DIC Group respects basic labor rights, including freedom of association and employees’ rights to organize and to engage in collective bargaining.
 $GGUHVVWKHLVVXHRIFRQÁLFWPLQHUDOV
7KH',&*URXSSURKLELWVWKHXVHRIFRQÀLFWPLQHUDOV6KRXOGDQ\UDZPDWHULDOVSXUFKDVHGIURPWKLUGSDUW\VXSSOLHUVEHIRXQGWRFRQWDLQFRQÀLFWPLQHUDOVWKH
Group will respond by, among others, immediately terminating the procurement thereof.
(5) Respect the concept of equal pay for equal work
In principle, the DIC Group provides equal pay for equal work to both male and female employees.

❹ The DIC Group’s Human Rights Due Diligence System
To fulfill its responsibility to respect human rights, the DIC Group
continues to employ, as well as to make systematic improvements in,
its human rights due diligence system.

1）Commit

2）Identify andevaluate impacts3）Implement corrective/remedial
measures, provide training andgauge effectiveness

Demonstrate the Group’s
human rights policy and views

Identify and evaluate human rights risks in theGroup’s business and across its supply chain

Implement measures andgauge effectiveness・Formulate a human rights policy.
・Introduce section on human rights into the
DIC Group Sustainable Procurement Guidelines.
・Reinforce awareness of the policy.

・Encourage voluntary human rights inspections ・Implement corrective/remedial measures.
at Group companies.
・Plan and provide human rights training.
・Identify and evaluate the impact of human・Gauge the eﬀectiveness of measures.
rights risks.

❺ DIC Group Human Rights Due Diligence Initiatives(1) Addressing Human Rights Challenges in the Area of Procurement
The DIC Group has formulated and disseminates the DIC Group
Sustainable Procurement Guidelines and compels its suppliers to respecthuman rights and to take appropriate steps to ensure acceptable work
environments. The Group also surveys the status of suppliers’ efforts
through various follow-up procedures. For details, please see “Ascertaining
and Improving Suppliers' Sustainability” on page 120 of the “Sustainability
Procurement” section of this report.

4）Disclose information

Report periodically onhuman rights initiatives
・Provide information via the DIC global website.
・Include information in the DIC Report.
・Publicize using conventional mass media.

Group companies in India and 19 Group companies in the PRC. This process
revealed no serious violations. Going forward, the DIC Group will seek to raise
the level of its human rights due diligence initiatives by advancing awarenessof human rights, as well as by re-examining and designating business areas
with inherent human rights risks.
(4) Establishment of Whistle-Blowing Hotlines and Corrective Measuresby the Compliance TeamThe DIC Group has created whistle-blowing hotlines for Group employees.
,Q¿VFDO\HDUUHSRUWVZHUHUHFHLYHGUHJDUGLQJKXPDQULJKWV±UHODWHG
issues such as power harassment and discrimination. However, internal
investigations revealed no serious violations. Operational improvements andother appropriate corrective measures were subsequently implemented.

(2) Promoting the Responsible Procurement of Minerals
The DIC Group has formulated a Basic Approach to the Responsible
Procurement of Minerals, recognizing the high risk of human rights violationsin the procurement of these resources. In addition to the surveys describedabove, the Group also surveyed smelters and refineries used for minerals
contained in the raw materials it procures. For details, please see “BasicApproach to the Responsible Procurement of Minerals” on page 121 in the“Sustainable Procurement” section of this report.

(5) Contact Procedures
Procedures have been established for suppliers, customers, local communities
and other stakeholders to report human rights–related issues by telephoneor via the DIC Group’s global website. The Group strives to respond swiftly to
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year 2022.

(3) Implementation of Human Rights Due Diligence at DIC Group Companies
In fiscal year 2022, human rights due diligence was implemented at four

DIC Report 2023

111

Human Resources Management(6) Building Trust with the DIC Employees’ Union
DIC’s management and representatives of its employees’ union meet regularly
with the goal of ensuring healthy industrial relations based on mutual trust.
In addition, through labor–management councils and casual management
conferences, DIC shares management information and its vision for the futurewith union representatives and encourages the frank exchange of opinions.
A total of 72.3% of parent company employees belong to the DIC Employees’
Union (99.3% of eligible employees).

promote knowledge of its related leave programs, DIC has
prepared the Childcare and Nursing Care Handbook, which
is distributed to employees of Group companies across the
FRXQWU\',&KDVDOVRPRGL¿HGWKHUXOHVRIWKHVHSURJUDPV
to make them easier to use, including making it possible tobreak up nursing care leave and to take such leave in onehour units, and extending the period over which they may
VKRUWHQWKHLUZRUNGD\WRIXO¿OOQXUVLQJFDUHUHVSRQVLELOLWLHV
originally one year, to three years.

6. Work–Life Balance/Occupational Safety and Health❶ Work–Life Balance
DIC views a healthy work–life balance as essential toboth self-realization and sustainable corporate growth.
Accordingly, from the perspective of corporate healthmanagement,* the Company continues to expand systems
intended to facilitate such a balance. Against a backdropof growing global awareness of the concept of “humancapital management,” DIC respects the diversity of its
labor force and seeks to enable each individual to exercise
their capabilities, recognizing its employees as important
corporate assets. DIC has promoted initiatives meant toenable all employees to achieve both active and satisfying
careers and a fulfilling life outside of work, in line with its
belief that positive workplaces lead to higher productivity.

 6LJQLÀFDQWO\([SDQGLQJWKH)OH[WLPH6\VWHP
To facilitate flexible work styles, in fiscal year 2017 DIC
UHVROYHGWRVLJQL¿FDQWO\H[SDQGLWVÀH[WLPHV\VWHPDQGLQ$SULO
2018 made the system applicable to all areas of operations
other than production floors. The system makes it possible
for employees to determine the time at which they end theirworking day to the extent that it does not hinder business
HI¿FLHQF\DVZHOODVWRVLPXOWDQHRXVO\PDNHXVHRIWHOHZRUN
with the aim of encouraging the independent execution ofduties and an enhanced capacity for self-management.
(4) Introducing a Leave to Accompany Spouse Overseas Program
To ensure its ability to secure and retain talented humanresources and enhance employees’ work–life balance, inJanuary 2019 DIC introduced a program allowing employees
to take leave to accompany spouses on overseas work
assignments. This system helps employees achieve anappropriate work–life balance without having to leave their jobs.

* An approach to employee health management that emphasizes a corporate
management perspective and the implementation of strategic measures.

(1) Enhancing Programs that Help Employees Balance the Demandsof Career and Childcare
In 1986, DIC blazed a trail for chemicals manufacturers inJapan by implementing a childcare leave program. Sinceestablishing a program to support employees in balancing
the demands of a career and childcare in 2007, the Company
has continued promoting measures that make it easier for
employees to make use thereof. In accordance with the
October 2022 amendment of the Child Care and Family
Care Law in Japan, the Company introduced a new paternity
leave system and is actively encouraging male employees
to take childcare leave. In 2008, DIC acquired the Kurumin
Mark, which recognizes companies that promote initiatives
designed to assist employees in raising children.

(5) Establishing a System to Help Employees Balance Medical
Treatment and WorkIn January 2020, DIC introduced a system to support
employees undergoing medical treatment who wish tocontinue working. To guarantee this system functions
effectively, the Company formulated guidelines to ensure
employees making use of this system receive the ongoingsupport necessary to balance medical treatment and workthrough job-related accommodations and considerations.

The Company has also deployed a system that gives
regular employees the option to accept or refuse transfers
requiring relocation and, since 2012, a system that allows
management-level employees to limit the locations to which
they will accept transfers, making it easier for individuals who
are unable to accept transfers that involve relocation becauseof childbirth, childcare, nursing care or other responsibilities.
(2) Retaining Employees with Nursing Care Responsibilities
In 2016, the Japanese government revised the Child Careand Family Care Law to make it easier for individuals to take
OHDYHRUWLPHRIIDVZHOODVLQFUHDVLQJEHQH¿WVIRUWHPSRUDU\absences from work, for individuals who find themselveswith nursing care responsibilities. To encourage use and

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112

Human Resources Management(6) Programs that Help Employees Balance the Demands of Work and Home

Childcare Leave Program

The maximum length of leave is until the child reaches the age of 2 years and 6 months, which is one year longer
than the legally mandated leave period.

Outpatient care leave: Employees can take leave for outpatient care, including regular medical examinations andhealth guidance.

Special maternity protection leave: Female employees take up to 10 days of special leave during pregnancy or theyear after giving birth to protect the health of both mother and child.

Paid leave programs for pregnancy
and childcare/HDYHWR$VVLVWZLWK3DUHQWLQJ3URJUDP0DOHHPSOR\HHVFDQWDNH¿YHFRQVHFXWLYHGD\VRISDLGOHDYHGXULQJWKH
eight weeks following their child’s birth to assist with parenting.
Pediatric nursing care leave: Employees can take leave to provide nursing care for a child until the end of the child’s
third year of elementary school, which is beyond what is mandated by law. This includes XSWR¿YHGD\VRISDLGOHDYHSHU¿VFDO\HDU

Childcare While Working Program

Employees can shorten their workday by up to three hours until the end of a child’s third year of elementary school.
Employees can also stagger their working hours to accommodate childcare schedules.

Economic support system

This system enables employees on unpaid childcare leave to borrow a portion of their bonuses in advance to pay for,among others, fertility treatment or infant care facility fees.

Return to previous (or equivalent)
position

Employees returning from childcare leave must be allowed to return to their previous position or to a position
equivalent thereto.

Information sharing to promote
program participation

DIC’s views on support for work and childcare balance, as well as a guide to its various available systems and how tomake use of them, are posted on the Company’s websites and intranet.

Nursing care leave system

Employees can take such leave for up to one year, exceeding the statutory maximum of 93 days. As of January 2018,
employees may also break up leave into a maximum of six units.

Nursing Care While Working system

Employees not wishing to take leave while providing nursing care can shorten their workday by up to two hours for a
maximum period of three years. As of January 2018, employees may also request to be excused from doing overtime
without restriction.

Leave to accompany spouseoverseas

Employees can take leave in the form of a temporary overseas assignment to accompany a spouse who isscheduled to be abroad for more than one year. The period of the leave must be more than one year, with amaximum length of three years. Employees may make use of this system once during their careers.

Relocation limitation system

Management-level employees may limit the locations to which they will accept transfers that involve relocating
because of childbirth, childcare, nursing care or other responsibilities.

System to help employees balance
medical treatment and work

Employees undergoing medical treatment who wish to keep working can access necessary support in the form of jobrelated accommodations and considerations.

Half-day and hourly annual paid
leave system

Employees may take annual paid leave in half-day units. They may also take up to five days of annual paid
leave in one-hour units.

Saved paid leave system

Expiring annual paid leave can be saved for up to 30 days and used for a variety of purposes, including injury or illness,
nursing care for a family member, care for a sick child and fertility treatment.

DIC Report 2023

113

Human Resources Management(7) Use of the Childcare Leave and Leave to Assist with
Parenting Programs
Owing to the introduction of various programs to help employees in balancing
the demands of work and home and the creation of an environment thatencourages employees to take advantage of such thereof, the percentage of
DIC employees who return to work after making use of the Childcare Leave
Program is currently 100%. In addition, the number of individuals using the

Number of employees using
the Childcare Leave Program

Leave to Assist with Parenting Program, which enables male employees
to take time off in the weeks after the birth of a child to assist their partner,
has risen. Thanks to efforts to enhance these systems, the average years of
employment for female employees has increased and continues to exceed
the average for male employees. In fiscal year 2022, DIC began actively
promoting a new paternity leave system.

Fiscal year
2017

Fiscal year
2018

Fiscal year
2019

Fiscal year
2020

Fiscal year
2021

Fiscal year
2022

35
（0）

21
（4）

28
（4）

22
（3）

25
（4）

55
（28）

77

81

86

84

77

87

Number of employees using
the Leave to Assist with Parenting Program

Note: Figures in parentheses are the number of male employees included in the total number of employees using the Childcare Leave Program.

(8) Average Years of Employment (Including Individuals Seconded to Group Companies)
Average years of employment in fiscal year 2022
(Years)25

Male employees

Female employees Overall

19.3

years

20.5 years 19.6 years

17

18

20
15
10
5
0

12

13

14

Male employees

15

16

19

20

22 (FY)

21

Female employees(9) Reducing Extreme Overwork and Encouraging
Employees to Take Annual Paid Leave
DIC has deployed an electronic management system thattracks employee working hours based on sign in/sign out data
extracted from IC cards. To prevent extreme overwork, if an
employee appears likely to exceed the overtime limit (including
weekends) agreed upon by labor and management, or if theirmonthly overtime has exceeded 70 hours, their supervisor and
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The supervisor is required to submit a report outlining theemployee’s work responsibilities and factors behind the
H[FHVVLYHKRXUVDQGSUHVHQWLQJVSHFL¿FPHDVXUHVWRDPHOLRUDWH
the situation, which is shared with the DIC Employees’ Union.
This process is designed to curb/reduce excessively long
working hours. In addition, employees are encouraged to takeannual paid leave, with sites recommending appropriate timing
for leave and having employees plan dates for such leave.

(10) Average Monthly Overtime Hours Worked and Annual Paid Leave Taken
Fiscal year 2017 Fiscal year 2018 Fiscal year 2019 Fiscal year 2020 Fiscal year 2021 Fiscal year 2022
Average monthly overtime hours
worked per employee

12.2 hours

12.0 hours

10.8 hours

10.1 hours

12.3 hours

12.4 hours

Average annual paid leave granted

18.8 days

18.6 days

18.7 days

18.7 days

18.9 days

18.8 days

Average annual paid leave used

12.0 days

12.5 days

13.3 days

11.8 days

12.1 days

13.4 days

Usage rate for annual paid leave

63.8％

67.2％

70.9％

63.1％

64.0％

71.3％

❷ Employee Safety
Measures to Prevent the Spread of COVID-19
Between February 2020, when COVID-19 first emerged, andDecember 31, 2022, a total of 40 internal notifications weresent under the heading “Measures to Prevent the Spread of
COVID-19.” Efforts ranged from promoting internal initiatives
to prevent infection to detailed instructions regarding individual
employee behavior.

DIC Report 2023

114

Human Resources Management❸ Corporate Health Management(1) Corporate Health Management Initiatives
In line with its Health Management Declaration, the DIC Group
works actively to support the physical and mental health of its
employees, as well as to create a work environment conducive
to job satisfaction. Looking ahead, the Group will continue topromote imaginative and original health management measures,
recognizing that the health of its employees is essential to therealization of sustainable growth.

(2) Framework for Promoting Health Management
The DIC Group in Japan promotes health management througha framework that is based on collaboration with the DIC Health
Insurance Society and under the supervision of the president
and CEO. Going forward, the Group will step up efforts to workwith related organizations and promote effective initiatives
across the DIC Group.

Health Management Declaration
The DIC Group recognizes that the achievement of its mission to create enhanced value
and utilize innovation to introduce socially responsible and sustainable products depends
on the creation of working environments conducive to the physical and mental health of theemployees responsible for the implementation of related initiatives.
The DIC Group declares that it will work as one to maintain or improve the health of its
employees, as well as to create a work environment conducive to job satisfaction.
Representative Director, President and CEO
DIC Corporation
Kaoru Ino

Framework

Director, Health management
Representative Director, President and CEO

Manager, Health management
Director in charge, General Affairs and HR Dept.

Supervisor, Health management promotion

Healthcare professionals
Industrial physicians
Infirmary and other medical staff

Health management promotion team

General manager, General Affairs and HR Dept.
ReportJudgment

ProposalApproval

Cooperation

Site general affairs departments
Cooperation

DIC Employees’ Union

Health management promotion organization
Internal and external counselors

General Affairs and HR Dept.

Site health and safety committees
DIC welfare fundCollaboration

DIC Health Insurance Society

DIC Report 2023

115

Human Resources Management(3) Health Management Strategy Map

Mental health

Physical health

Health investments
Indicators for healthinvestments/initiatives

Indicators for employee
awareness and behavior

Increased participationin annual physicals

Participation in annual physicals(FY2022 rate: 100%)

Understanding of the need forand participation in annual physicals

Follow-up after
annual physicals

Participation in physician-led
interview/acceptance of guidance fromnurses in the event of an adverse finding(FY2022 rate: 100%)

Increase in
examination/re-examination rate

Physician-led interviews
with extremely
overworked employees

Follow-up for employees whosemonthly overtime exceeds 70 hours(FY2022 rate: 100%)

Use of checklist, recognition ofhealth risks through consultation withphysicians, healthier eating habits andreduced overtime hours

Collaboration with company
operating employee cafeterias
to improve employee eating habits

Provision of healthy menu choices

Greater consumption ofhealthy menu choices

Efforts to prevent lifestyle-relateddiseases in collaboration with the
DIC Health Insurance Society

Increase in acceptance ofspecific health guidance

Improvement in scores for routine
tests conducted as part ofannual physicals

Staging of various
health-related seminars

Improvement inunderstanding/satisfaction

Increase in application ofknowledge gained from seminars

Promotion of antismoking measures

Implementation ofantismoking measures

Reduction of smoking rate

Initiatives aimed at preventing
the spread of infectious diseases

Provision of e-learning program on
preventing the spread of infectious diseases
and in-house influenza vaccination clinics

Greater understanding of
infectious diseases

Establishment of help desks toprovide follow-up services

Increase in awareness of help desks

Prevention of absence

Education aimed at the prevention
and early detection ofmental health issues

Participation in seminars/findings ofpost-seminar surveys to gauge
comprehension and satisfaction

Stress checks and provision offollow-up guidance

Increase in participation/consultation
with physicians by employeeswith high stress levels

Follow-up services forlong-term absentees

Implementation of programs for
employees returning to work

Promotion of use ofannual paid leave

Increase in use of annual paid leave

Reduction of overtime hours

Reduction of overtime hours

Work style reform

Increase in health literacy

Decline in number of individuals
taking long-term leave formental health–related reasons

Decrease in recurrence

Satisfaction with system use

Decrease in separation rate
attributable to use of systems
Greater work engagement

Implementation of
one-on-one meetings

Deployment of StrengthsFinder

Decrease in absenteeism

Decline in presenteeism

Efforts to encourage use of childcare
and nursing care leave systems
Establishment of a system tohelp employees balance
medical treatment and work

Indicators forhealth goals

Increase in implementation

Improvement in mutual
understanding of/satisfaction due toincreased opportunities
for communication

Use of mentoring program

DIC Report 2023

116

Challenges
addressed
through healthmanagement

The DIC Group recognizes that the achievement of its mission to create enhanced value and utilize innovation to introduce socially responsible and sustainable products
depends on the creation of working environments conducive to the physical and mental health of the employees responsible for the implementation of related initiatives.

Health investment benefitsHuman Resources Management(4) Key Health Management Initiatives
CategoryNo.

healthGoal

Prevention of serious illness through early detection

Annual physicals help medical staff grasp changes in physical condition and provide
appropriate guidance.
Target for percentage of employees participating in annual physicals: 100% (Fiscal\HDU¿VFDO\HDU2

Follow-up after annual physicals

Prevention of serious illness and job separation through early
detection/consultation with physicians

Based on the results of annual physicals, industrial physicians and nurses extend guidance
RQKHDOWKPDLQWHQDQFHHQFRXUDJHIXUWKHUH[DPLQDWLRQLQWKHHYHQWRIDGYHUVH¿QGLQJVDQG
provide directions on the prevention of lifestyle-related diseases.
Percentage of employees undergoing thorough examinations (Fiscal year 2021:¿VFDO\HDU

3

Support for employees returning after taking leave
due to illness

Prevention of prolongation, recurrence and job separation

Attending physician, industrial physicians, nurses, workplace colleagues and HR staff
work together to support a smooth return to work for employees from leave.
Target for percentage of employees taking leave again: 0% (Fiscal year 2021: 5.1%,¿VFDO\HDU

4

Physician-led interviews with extremely overworked
employees

Reduction of overwork and management of health risks

Efforts are ongoing to prevent the onset of brain and heart disorders by implementing
more stringent management of employee working hours than is called for in standards
governing long working hours set forth in Japan’s Industrial Safety and Health Act.

5

Collaboration with company operating employee
cafeterias to improve employee eating habits

Prevention of lifestyle-related diseases (including for family
members)

Active efforts are made to support employee health by offering healthy menu choices andproviding dietary education, including information on improving eating habits.
7DUJHWRUORZHU )LVFDO\HDU¿VFDO\HDU

6

Efforts to prevent lifestyle-related diseases in collaboration
with the DIC Health Insurance Society

Awareness of health risks and prevention of serious illness

Based on the results of annual employee physicals, the DIC Health Insurance Society
and DIC collaborate to make recommendations to those requiring guidance.

7

Holding of various health-related seminars

Improvement of productivity through the maintenance andimprovement of health

Efforts focus in promoting employees’ health awareness, including for their families,
through the organization of seminars on common health issues, webcasts of pastseminars, as well as on women’s health management.

8

Staging of various events

Stimulation of communication; improvement of productivity throughthe maintenance and improvement of health

Various events are staged to promote health maintenance and improvement, including sports
tournaments, vascular age measurement events, walks and family site tours.

9

Efforts to encourage regular exercise

Improvement of productivity through the maintenance andimprovement of health; prevention of injuries

Various activities are encouraged, including radio calisthenics, exercises to reduce lower back pain
and stretching exercises, before starting work and during the day.
3HUFHQWDJHRIHPSOR\HHVSDUWLFLSDWLQJ )LVFDO\HDU¿VFDO\HDU

10

Promotion of antismoking initiatives

Prevention of damage to health and loss of productivity attributableto smoking

Antismoking initiatives seek to prevent exposure to passive smoke, promote awarenessof the risks of smoking and support employee efforts to quit smoking with the goal of
reducing the percentage of employees who are smokers.
Target for percentage of employees who are smokers: 15% (Fiscal year 2021: 21.9%,¿VFDO\HDU

11

Education aimed at the prevention and early detection ofmental health issues

Helping ensure the happiness of employees and their families;
improvement of productivity through the maintenance andimprovement of health,QGXVWULDOSK\VLFLDQVDFWLYHO\FRQGXFWUDQNVSHFL¿FDQGVHOIFDUHWUDLQLQJGHVLJQHGWR
prevent and swiftly detect mental health issues.

12

Stress checks and provision of follow-up guidance

Improvement of productivity through realization of comfortable work
environments; prevention of mental health issues

Stress checks are conducted even at Group companies not legally required to doso. Following checks, individuals discovered to have a high level of stress meet with
doctors and where appropriate participate in training provided by industrial physicians
specializing in mental health, among others.
Target for percentage of employees undergoing stress checks: 95% or higher (Fiscal\HDU¿VFDO\HDUTarget for percentage of employees with a high level of stress: 10% or lower (Fiscal\HDU¿VFDO\HDU

13

Promotion of use of annual paid leave

Improvement of productivity through realization of comfortable work
environments; prevention of mental health issues

Efforts are ongoing to create an environment that makes it easy for employees totake paid leave, and include recommending appropriate timing for leave and having
employees plan leave dates.

14

Reduction of overtime hours through the institution of a“no overtime day”

Improvement of productivity through realization of comfortable work
environments; prevention of mental health issues

A mandatory “no overtime day” has been instituted every Wednesday and on payday(once monthly at month-end in Japan) with the objective of curbing overtime andencouraging physical and mental reset.

15

Efforts to encourage use of childcare and nursing careleave systems

Prevention of job separation because of childcare or nursing care
responsibilities

Efforts are ongoing to acquire the next-generation Kurumin Mark and to publish anddistribute a handbook on balancing work and nursing care responsibilities, among
others.

16

Establishment of a system to help employees balance
medical treatment and work

Prevention of job separation because of medical treatment

A system has been established to support employees undergoing medical treatment
who wish to continue working, along with guidelines for use of the system. Efforts topromote the system’s use are ongoing.

17

Initiatives to prevent the transmission of infectious diseases

Improvement of productivity through realization of comfortable work
environments; prevention of mental health issues

Efforts are ongoing to prevent the transmission of infectious diseases, including the
LPSOHPHQWDWLRQRIPDVVLQÀXHQ]DYDFFLQDWLRQFOLQLFVDQGWKHSURYLVLRQRIDUHODWHG
e-learning program.

18

Dissemination of health-related information through healthfocused newsletter

Improvement of productivity through realization of comfortable work
environments; prevention of mental health issues

Nursing staff from DIC’s Healthcare Office and infirmary issue health-related
QHZVOHWWHUVDQGZRUNWRGLVVHPLQDWHKHDOWKPDQDJHPHQWLQIRUPDWLRQWKDWUHÀHFWVWKH
unique characteristics of each site.

19

Establishment of help desks to provide follow-up services

Improvement of productivity through realization of comfortable work
environments

Permanent internal and external help desks have been set up that enable employees
to report or seek advice on mental health, harassment or other issues and actively
follow up on reported matters.

Mental health

Establishmentof systems

Other

Details

Improve participating in annual physicals

1

Employee

Initiative(5) Mental Health Management Initiatives
DIC takes steps to create work environments in which employees feel physicallyand mentally supported. The Company places a particular priority on caring forpsychological and emotional well-being and has established a comprehensive
mental health program, highlights of which include engaging an in-houseoccupational psychologist, promoting initiatives aimed at warding off mental healthproblems and extending support to ensure a smooth return to work for employees
taking leave. In particular, access to counseling provided by an occupational
psychologist has had a considerably positive impact in terms of ensuring
employees get treatment and are able to return to work as quickly as possible.

',&KDVDOVRRIIHUHGYROXQWDU\VWUHVVFKHFNVVLQFH¿VFDO\HDUZHOOEHIRUH
the passage of related legislation in Japan in fiscal year 2016, as part of anactive effort to help prevent mental health disorders. Participation in stresschecks is high most years. The Company also promotes follow-up initiatives. Of
note, the Company offers self-care training and line care training for supervisors
led by an in-house physician specializing in mental health, as well encourages
individual department heads to speak with industrial physicians with theobjective of making concrete improvements to workplace environments. DIC will
pursue the continued systematic promotion of these initiatives going forward.

DIC Report 2023

117

Human Resources Management

Mental Health Initiatives• Guidance from an in-house occupational psychologist• Internal and external help desks• Line care training* for supervisors• Mental health self-checks as part of training for new employees• Creation of new online version of the Kokoro no Kenko (“Psychological Health”) self-check handbook• Flexible process to support employees returning to work after taking leave* Line care training: Training for supervisors to help them recognize promptly when an employee is unwell and respond
appropriately by, for example, recommending guidance or counseling or making workplace improvements.

Kokoro no Kenko
self-check handbook

TOPIC',&(DUQV:KLWH&HUWLÀFDWLRQIRUWKH6L[WK&RQVHFXWLYH<HDU',&HDUQHGFHUWL¿FDWLRQLQWKHODUJHHQWHUSULVHFDWHJRU\RIWKH+HDOWK
& Productivity Outstanding Entities Recognition Program (dubbed the“White 500”), which is organized by the Ministry of Economy, Trade andIndustry and Nippon Kenko Kaigi.* This is the sixth consecutive year theCompany has been certified under this program, which seeks to shinea spotlight on outstanding enterprises working to advance health andproductivity management, creating an environment that ensures suchenterprises gain enhanced public recognition—i.e., from employees,
MREVHHNHUVUHODWHGFRPSDQLHVDQG¿QDQFLDOLQVWLWXWLRQV²DVRUJDQL]DWLRQV
that approach employee health and productivity from a management
perspective and promote strategic initiatives. The Company greatly
exceeded the industry average for all four criteria used: “Management
philosophy,” “organized framework,” “systems and implementation of
measures” and “evaluation and improvement.” DIC earned particularly high
PDUNVIRUVHWWLQJVSHFL¿FSULRULW\LVVXHVDQGYHULI\LQJWKHHIIHFWLYHQHVVRI
measures implemented, and for making necessary improvements.

In its DIC Vision 2030 long-term management plan, the DIC Group set
forth a basic strategy of reinforcing its management of human capital andworks actively to support the physical and mental health of its employees,
as well as to create work environments conducive to job satisfaction inline with its Health Management Declaration. Looking ahead, the Groupwill continue to promote imaginative and original health management
measures, recognizing that the health of its employees is essential to therealization of sustainable growth.
* Nippon Kenko Kaigi (“Japan Health Council”) is an organization that liaises
with private companies, with the full backing of the government, to put effective
measures in place to prolong the healthy life expectancy of citizens and to ensure
sound medical services in Japan.

(6) Initiatives to Support Employee Health
DIC analyzes the results of employees’ annual physicals andprovides assistance to employees for whom lifestyle improvements
have been recommended by providing introductions to hospitals
and clinics, and individual guidance on lifestyle improvements.
With the aim of promoting healthy eating, the employee cafeteria
at DIC corporate headquarters in Tokyo offers a heathy cafeteria
menu dubbed “DIC Irodori Care+” (“DIC Colorful Care Plus”). DIC’s*HQHUDO$IIDLUVDQG+5'HSDUWPHQWWKH+HDOWKFDUH2I¿FHDQGWKH
company responsible for the operation of the cafeteria collaborated
to develop this menu based on the health needs of employees.
The Company also devised innovative ways of presentation,
including producing distinctive signage that encourages recognition
DQGQDPHVWKDWFOHDUO\FRPPXQLFDWHWKHKHDOWKEHQH¿WVRIPHQX
selections, such as reduced calories or low cholesterol. DIC Irodori
Care+ also makes use of familiar meal components like kobachi(small bowl) side dishes transformed into a nutrient-packed“Supplement Bowl” to promote greater awareness of food’s role in
improving overall health.
DIC will continue implementing measures designed to help ensure
the physical and mental health of its employees as part of its
commitment to creating work environments that empower them tofully realize their potential.

Healthy cafeteria menu selection

DIC Report 2023

118

Sustainable Procurement

Promoting Socially Responsible Procurement across Supply Chains
Goals and Achievements of Major Initiatives
Objective of initiatives

SDGs Goal 12

Evaluations are based on self-evaluations of current progress. Key: ★★★ = Excellent; ★★ = Satisfactory; ★ = Still needs work

Goals for fiscal year 2022

Achievements in fiscal year 2022

Promote initiatives aimed at expanding
the use of sustainable raw materials
over the medium to long term
(calculate the carbon footprint of raw
materials and continue to search forbioderived and recycled raw materials).

・A system was established forgrasping CO2 emissions data (thecarbon footprint) for major raw
materials.
・Research conducted for bioderived
materials led to a review of product designs.

Continue conducting assessments
to better ascertain the sustainabilityof DIC and Sun Chemical suppliersand ensure a grasp of their overall
ESG initiatives.

DIC completed assessments of suppliers
accounting for more than 80% of its
procurement spending in Japan. Sun
Chemical completed assessments ofsuppliers accounting for approximately
71% of its procurement spending.

Evaluation

Goals for fiscal year 2023★★

Advance initiatives aimed at expanding
sustainable procurement over the
medium to long term, including
assessing and reducing CO2 emissions
associated with raw materials andsearching for bioderived and recycled
raw materials.

★★

Continue conducting sustainability
assessments of suppliers in Japanand Sun Chemical suppliers, andexpand the scope of this initiative
to include the PRC and the Asia–
Pacific region, to ensure a graspof, and encourage improvement of,
suppliers’ sustainability initiatives.

Promote sustainableprocurement.

Basic Approach to Sustainable Procurement
Having recognized the increasing importance of addressing issues essential to sustainable procurement, including compliance with laws and social
norms, consideration for the environment and respect for human rights, the DIC Group formulated the DIC Group Universal Purchasing Policy andcontinues to advance related initiatives on a global scale. Based on this policy, the Group also established the DIC Group Sustainable Procurement*XLGHOLQHVZKLFKFODUL¿HVLWVH[SHFWDWLRQVRIVXSSOLHUVDQGDGYDQFHVVXVWDLQDEOHSURFXUHPHQWDFURVVLWVVXSSO\FKDLQVE\HQVXULQJDVVHVVPHQWVare conducted to ascertain the status of suppliers’ sustainability and by encouraging awareness-raising efforts.
For more information, please visit WEB https://www.dic-global.com/en/csr/stakeholder/partner.html

The DIC Group Universal Purchasing Policy
Guided by an action policy established to realize the DIC Group’s basic sustainableprocurement principles, the Purchasing Department adheres to the following guidelines indealing with suppliers:

The DIC Group Sustainable
Procurement Guidelines❶ Compliance with laws/social norms❷ Human rights and work environments❶ Fair and transparent business practices

The DIC Group will implement fair and open purchasing activities with
suppliers based on global perspectives, without the constraints of conventionalcommercial customs.
❷ An appropriate purchasing process and the building of relationships of

mutual trust

The DIC Group, as a good partner for suppliers, will build long-lasting, mutually trusted relationships
ZLWKVXSSOLHUVDQGZRUNWRJHWKHUZLWKWKHPIRUPXWXDOKDUPRQ\DQGEHQH¿WZKLOHFRPSO\LQJZLWK
relevant regulations/social norms, domestic and overseas, and pursuing adequate quality and prices.
❸ Satisfying environmental/safety needs

The DIC Group will take responsibility as an exemplary corporate citizen for environmental
affairs, occupational safety, human health and product quality, always take into accountchanges in society and implement environment-friendly purchasing activities.
❹ Challenge the creation of new value

In order to respond at a high level to a new value sought by society, the DIC Group willproactively challenge the creation of such value together with suppliers, with whom the same
goal can be shared, and strive to grow together with them in a sustainable manner.

DIC Report 2023

119

❸ Safety and health❹ Consideration for the environment❺ Information security❻ Appropriate quality and safety and technologicalimprovements❼ 6WDEOHVXSSOLHVDQGÀH[LEOHUHVSRQVHVWRFKDQJH❽ Promotion of sustainability and sustainableprocurement initiatives

Sustainable Procurement

Efforts to ascertain/improve suppliers’ sustainability
・Assess using the DIC Group Sustainable Procurement Guidebook
・Assess using EcoVadis

DIC Group

Responsible mineral procurement

Suppliers,QYHVWLJDWHVPHOWHUVDQGUH¿QHULHVXVHGIRUPLQHUDOVFRQWDLQHGLQ
raw materials (using CMRT, etc.)

Sustainable procurement initiatives
・Survey and promote the reduction of CO2 emissions associatedwith raw materials
・Advance the adoption of bioderived and recycled raw materials\HDUWKURXJK¿VFDO\HDUEHFDXVHRI&29,'EXWWKH*URXSLQWHQGVWRUHVXPHRQVLWHLQTXLULHVJUDGXDOO\IURP¿VFDO\HDUDVZHOO
as to begin also conducting inquiries online. The Group will also expand
the scope of assessments conducted using the DIC Group Sustainable
Procurement Guidebook beyond Japan to suppliers in the PRC and the$VLD±3DFL¿FUHJLRQ■ Ascertaining and Improving Suppliers’ Sustainability
The DIC Group uses the DIC Group Sustainable Procurement Guidebook
and the EcoVadis* platform to assess the status of its suppliers’
sustainability initiatives.
* The web-based sustainability rating platform provided by EcoVadis SAS assesses theperformance of companies, providing sustainability scorecards and benchmarks, and has
been used to evaluate more than 100,000 companies worldwide.

Outline of the DIC Group Sustainable Procurement Guidebook(Version 3, published in February 2020)
WEB

https://www.dic-global.com/pdf/about/purchase/dic_sc_csr_en.pdf

・DIC Group Universal Purchasing Policy
・DIC Group Sustainable Procurement Guidelines
・DIC Group Green Procurement Guidelines
・DIC Group Sustainable Procurement Self-Evaluation Sheet

Feedback sheet○ Global Sustainable Procurement Efforts

In Japan, the DIC Group Sustainable Procurement Guidebook is used toassess suppliers’ sustainability and promote improvements. In addition
to encouraging awareness of its expectations of suppliers, outlined in the
DIC Group Sustainable Procurement Guidelines, which are included in
the guidebook, the DIC Group conducts surveys using the guidebook’s
self-evaluation sheet to ascertain the status of suppliers’ sustainability
initiatives. The self-evaluation sheet consists of 45 questions segmented
into the same eight categories as the DIC Group Sustainable
Procurement Guidelines.

Assessment Distribution Chart

33%

13%

,Q¿VFDO\HDUWKH',&*URXSFRPSOHWHGDVVHVVPHQWVRIVXSSOLHUV
accounting for more than 80% of its procurement spending in Japan
using version 3 of the DIC Group Sustainable Procurement Guidebook.
In addition to analyzing and assessing responses to self-evaluation sheetquestions and providing feedback to each supplier, the Group follows up
with on-site inquiries or written comments for suppliers whose initiatives
ZHUHIRXQGWREHLQVXI¿FLHQW2QVLWHLQTXLULHVZHUHVXVSHQGHGIURP¿VFDO

4%

32%

11%

6%

1%
Below 2.0

2.0‒2.5 2.6‒2.9 3.0‒3.5 3.6‒3.9 4.0‒4.5 4.6‒5.0
ScoresSelf-evaluation sheet scale (0–5.0 points)

DIC Report 2023

120

Sustainable Procurement

Additionally, the DIC Group in Japan uses the DIC Group Green
Procurement Guidelines, also contained in the DIC Group Sustainable
Procurement Guidebook, to oblige suppliers to ensure the stringent
management of chemical substances and compliance with pertinent
laws and regulations, as well as to promote the reduction ofenvironmental impact. Using the appropriate survey form, the Group
DOVRFRQ¿UPVVXSSOLHUV¶RZQJUHHQSURFXUHPHQWHIIRUWVDVFHUWDLQVWKH
status of manufacturers’ responses to requests for improvements andfollows up as necessary.

In line with this approach, the DIC Group uses the conflict minerals
reporting template (CMRT) and the extended minerals reporting template(EMRT)* for minerals contained in procured raw materials. To date,
VXUYH\VXVLQJWKH&057KDYHEHHQVHFXUHGUHJDUGLQJPRUHWKDQRI
the raw materials the Group currently procures in Japan. Surveys using
the EMRT have also been conducted for major raw materials containing
target minerals. The Group will continue to expand and update its surveys
in the future.
* The CMRT and EMRT are standardized reporting templates developed by the
Responsible Minerals Initiative (RMI) to survey smelters and refineries used
for minerals contained in raw materials, with the CMRT targeting tin, tantalum,
tungsten and gold and the EMRT targeting mica and cobalt. This facilitates thetransfer of information on minerals across entire supply chains.

In the Americas and Europe, Sun Chemical continues to assess thesustainability of suppliers using EcoVadis rather than the DIC Group
Sustainable Procurement Guidebook. In fiscal year 2022, the company
completed assessments of suppliers accounting for approximately 60%* of
its procurement spending.

■ Advance Assessments of New Raw Materials
The DIC Group conducts advance assessments of new raw materials to
FRQ¿UPWKDWWKHUHDUHQRLVVXHVUHJDUGLQJOHJDORUUHJXODWRU\FRPSOLDQFH
safety or other issues related to the sustainable procurement of raw
materials. In Japan, for example, the Group mandates the submission of a
DIC Raw Materials Survey,*1 a safety data sheet (SDS), a chemSHERPA*2
and a CMRT.

Going forward, the DIC Group will capitalize on the distinctive features of
the DIC Group Sustainable Procurement Guidebook and EcoVadis, as wellas advance information sharing and hold global procurement meetings
to encourage greater understanding and coordinate efforts by regional
headquarters to encourage improvements in the sustainability of suppliers.

*1 A DIC Raw Materials Survey is a questionnaire the aim of which is to confirm
basic information on the constituents of raw materials and their compliance withpertinent laws and regulations.
*2 An acronym for “chemical information sharing and exchange under reporting
partnership in supply chain,” chemSHERPA is a scheme developed in Japan for
the transfer of information on raw materials throughout supply chains.

■ Ensuring the Sustainable Procurement andUse of Raw Materials○ Surveys of CO2 Emissions Associated with Raw Materials
In response to social imperatives and the expectations of its customers, in¿VFDO\HDUWKH',&*URXSEHJDQVXUYH\LQJ&22 emissions associatedwith raw materials, to calculate the carbon footprint of its products, that is,
total CO2 emitted over its products’ life cycles. The Group will continue to
conduct these surveys to collect relevant data, enabling it to accurately
calculate and take steps to reduce its products’ carbon footprint.

Global procurement meeting■ Responsible Procurement of Minerals○ Supplier Engagement
The DIC Group seeks to work with its suppliers to encourage the reductionof CO2 emissions associated with purchased raw materials with the goal oflowering climate change risk and achieving Science Based Targets initiative
6%7L FHUWL¿FDWLRQRILWVWDUJHWIRUUHGXFLQJ6FRSHHPLVVLRQV$VD¿UVW
step, in fiscal year 2023 the Group will commence supplier engagement
to confirm the setting of medium- to long-term CO2 emissions reduction
targets, as well as to publicize and raise awareness these efforts.

The DIC Group has formulated the Basic Approach to the Responsible
Procurement of Minerals, recognizing the importance of procuring these
critical resources in a responsible manner and engaging with suppliers toaddress this challenge across its supply chains.

Basic Approach to the Responsible
Procurement of Minerals* For more information on the SBTi, please see page 86.

To avoid any complicity in the funding of armed groups,
or in child labor or other human rights abuses, in areas ofconflict—including the Democratic Republic of Congo andits neighboring countries—or high-risk areas,* the DIC
Group surveys suppliers of minerals such as tin, tantalum,
tungsten and gold to ensure the responsible procurement
thereof across its entire supply chain. Should it discover
the use of minerals mined in conditions of conflict or as aresult of human rights abuses, the Group will take immediate
corrective actions.

○ Promoting the Use of Bioderived and Recycled
Raw Materials
The DIC Group actively promotes the use of bioderived and recycled raw
materials. This includes using the Group’s global supply chain to conduct
raw material surveys and sharing the results with technical groups,
prompting product design reviews.

DIC Report 2023

121

Compliance

Toward Fair and Transparent Corporate Activities
Goals and Achievements of Major Initiatives
Objectives of initiatives

SDGs Goal 16(YDOXDWLRQVDUHEDVHGRQVHOIHYDOXDWLRQVRIFXUUHQWSURJUHVV.H\★★★ ([FHOOHQW★★ 6DWLVIDFWRU\★ = Still needs work

Goals for fiscal year 2022

Achievements in fiscal year 2022

Evaluation

Goals for fiscal year 2023

(QKDQFHDZDUHQHVVRI
compliance.

• Achieve target of percentage of
employees participating in the
HOHDUQLQJSURJUDP  • Implement legal training focusedon compliance and corporate
JRYHUQDQFH 'HWHUPLQHPRVWDSSURSULDWHIRUPDW• ([FOXGLQJFHUWDLQUHJLRQVZKHUHQHZ',&
Group member companies had yet toestablish an e-leaning environment, thepercentage of employees participating
LQHOHDUQLQJH[FHHGHG
• Training provided included risk
management training for DIC
executives and compliance training for
WKH&(2VRI*URXSFRPSDQLHVLQRWKHU
countries and territories.

★★

• Achieve target of percentage of
employees participating in the
HOHDUQLQJSURJUDP  
(VWDEOLVKDJOREDOV\VWHPRIVHOI
inspection and reporting to ensurecompliance.

Conduct business fairly.

Achieve target of zero violations ofantitrust and anti-corruption laws.

Zero violations of antitrust and anticorruption laws were reported.

★★

Achieve target of zero violations ofantitrust and anti-corruption laws.

Basic Approach to Compliance
Compliance in the DIC Group encompasses not only obeying laws but also acting in a manner that is in keeping with social
norms and the expectations of customers, communities and other stakeholders. With the aim of ensuring sustainable growth
IRUEXVLQHVVHVWKDWDUHERWKIDLUDQGWUDQVSDUHQW',&IRUPXODWHGWKH',&*URXS&RGHRI%XVLQHVV&RQGXFWDXQL¿HGVHWRI
guidelines the adherence to which it considers to be the foundation of compliance. DIC compels all DIC Group employees
to comport themselves in accordance with the code.

■ The DIC Group Code of Business Conduct■ Initiatives to Promote Compliance

The DIC Group’s Board of Directors approved the DIC Group Codeof Business Conduct in July 2014. The code not only mandates
compliance with national laws and international rules but also presents
10 principles essential to the professional conduct of DIC Group
employees. The Group held presentations for all existing Group
employees when the code was established, while new employees
receive training at point of hire. The goal of such training is to ensure
employees worldwide share values cherished by the Group andapproach their responsibilities with a sense of responsibility and acommitment to doing the right thing.

The DIC Group promotes compliance through the following
initiatives:① Legal training that emphasizes improving complianceawareness is provided for employees at point of hire,
when promoted and before transfer overseas. In addition,
to promote awareness of the DIC Group Code ofBusiness Conduct, e-learning related to the code, as wellas to compliance, is provided in Japan and at DIC Asia
3DFL¿F',& &KLQD DQGLQWKH$PHULFDVDQG(XURSH
② Compliance officers are appointed at all regional
KHDGTXDUWHUV²',& LQ -DSDQ 6XQ &KHPLFDO WKH$PHULFDV DQG (XURSH  ',& &KLQD  35&  DQG ',&
$VLD3DFLILF $VLDDQG2FHDQLD ²WRVSHDUKHDGJOREDO
compliance efforts. The DIC Group vows that it will not
violate the principles of the DIC Group Code of BusinessConduct, even if such a violation would appear to
SUR¿WWKH*URXS$VDFRUSRUDWHFLWL]HQWKH*URXSDOVR
pledges to respect social norms and act in a sound andsocially acceptable manner. In fiscal year 2022, there
were no serious violations of compliance laws.

10 Principles Essential to Professional Conduct❶ <RXU5LJKWVDVDQ(PSOR\HH5HVSHFW'LJQLW\3ULYDF\❷ (QYLURQPHQWSafety and Health❸ <RXU5HVSRQVLELOLW\WR$YRLG3RWHQWLDO&RQÀLFWVRI,QWHUHVWDQGWR
Protect Group Property❹ Anti-Corruption and Anti-Bribery Policy❺ <RXU5HODWLRQVKLSZLWK*RYHUQPHQWVDQG*RYHUQPHQW2I¿FLDOV❻ <RXU5HODWLRQVKLSZLWK&XVWRPHUV6XSSOLHUVDQG([WHUQDO7KLUG3DUWLHV❼ Money Laundering and Anti-Terrorism❽ )RUFHG/DERU&KLOG/DERU&RQÀLFW0LQHUDOV❾ Insider Trading❿ 3URSHU$FFRXQWLQJDQG,QWHUQDO&RQWUROV5HODWLQJWR)LQDQFLDO5HSRUWLQJDIC Report 2023

122

Compliance

Compliance E-Learning
Fiscal year 2018
Fiscal year 2019
Fiscal year 2020

International antitrust legislation$YRLGLQJFRQÀLFWVRILQWHUHVW• Preventing harassment• Insider trading• Trademarks and intellectual property• Information security and Japan’s Act on the Protection of Personal
Information, etc.
•(QVXULQJFRPSOLDQFH ',&*URXS&RGHRI%XVLQHVV&RQGXFW• The DIC Group’s whistle-blowing systempresentations regarding antitrust and anti-corruption legislation toensure strict compliance with the laws of the countries and territories inwhich it operates.

○ Establishing and Operating a Whistle-Blowing System

The DIC Group has established a compliance whistle-blowing system
independent from channels for communication used in the conduct
RIEXVLQHVV 7KLVV\VWHPDOVRHQFRPSDVVHVH[WHUQDOKRWOLQHVWKDW
can handle reports of compliance-related issues and questions in theODQJXDJHVRIPRUHWKDQFRXQWULHV 7KH*URXSKDVDOVRGHYLVHG
strict rules under this system to protect whistle-blowers from retaliation
and works to ensure the system functions in a proper manner.

○ Promoting Compliance with Legislation Regarding the Timely

Payment of Subcontractors
With the aim of enhancing understanding of the importance ofappropriate and fair transactions with subcontractors, the Legal
Department held presentations on legislation regarding the timely
payment of subcontractors, incorporating case studies, for thepurchasing departments of domestic DIC Group companies,
and offered e-learning, principally for employees in charge ofsubcontractors. In addition, DIC has prepared the Manual for Internal
Auditing of the DIC Group’s Compliance with Japan’s Act Against
Delay in Payment of Subcontract Proceeds, Etc., to Subcontractors
and created a framework for conducting audits in a more efficientmanner. The Group also encourages employees in related positions toparticipate in programs sponsored by external organizations, including
a workshop promoting adherence to the Act sponsored by the Japan)DLU7UDGH&RPPLVVLRQDQGWKH6PDOODQG0HGLXP(QWHUSULVH$JHQF\When a report is received, the DIC Group responds swiftly andappropriately, giving due consideration to pertinent laws while also
incorporating internal and external opinions, to identify and correct
violations and where necessary to take disciplinary action. Detailsof reports and steps taken in response are reported to the Board of
Directors. The Group will continue to use its whistle-blowing system toensure the prompt discovery and correction of misconduct.
In fiscal year 2022, approximately 41 reports were received oncompliance issues and labor-related matters such as power
harassment and discrimination, but none were judged to be serious. In
accordance with revisions to Japan’s Whistleblower Protection Act, DIC
amended its rules for handling reports from and ensuring protection for
whistle-blowers.

○ Taxation Compliance,Q1RYHPEHUWKH',&*URXSIRUPXODWHGDQRI¿FLDODSSURDFKWR
tax. As an organization with global operations, the Group engages
in fair and appropriate tax planning that reflects the nature of its
businesses. The Group is also aware of risks associated with transfer
price taxation and the use of tax havens, and of its obligation to pay
appropriate taxes in the proper jurisdictions as appropriate for its
operations. The chart below shows a breakdown of taxes in Japan and
RYHUVHDVLQ¿VFDO\HDU

DIC Group
employees
Japan, other countries/
territories, regionsAsia–Pacific region

Director in charge of compliance,
Legal Department, External legal firm

Legal Department
Whistle-Blowing Committee

Fiscal year 2021 •(QVXULQJFRPSOLDQFH SURGXFWTXDOLW\• Information security and the revision of Japan’s Act
on the Protection of Personal Information, etc.
Fiscal year 2022 • Preventing discrimination and harassment•(QVXULQJFRPSOLDQFH SURGXFWTXDOLW\• Information security and Japan’s Act on the Protection of
Personal Information, etc.

Whistleblowing
hotlines

https://www.dic-global.com/en/csr/philosophy/management/tax.html

Greater China

Sun Chemical
Corporation

Legal Department
Whistle-Blowing Committee

Income Taxes in Fiscal Year 2022
Japan

General manager, Legal Department,
CEO, CFO¥1,111

Overseas

million¥11,338
million○ Antitrust and Anti-Corruption Legislation

Total¥12,449
millionThe DIC Group has formulated a basic policy to comply with antitrust
legislation and made Groupwide efforts to ensure fair businesspractices. The DIC Group Code of Business Conduct includes rules
for complying with antitrust legislation and prohibits involvement in
FRUUXSWLRQ6LQFH¿VFDO\HDUWKH*URXSKDVKHOGPRUHWKDQ

DIC Report 2023

123

Business Continuity Management (BCM) and Crisis Management

Reducing Business Risks and Preventing the Recurrence of Incidents
Goals and Achievements of Major Initiatives
Objective of initiatives

Evaluations are based on self-evaluations of current progress. Key: ★★★ ([FHOOHQW★★ 6DWLVIDFWRU\★ = Still needs work

Goals for fiscal year 2022

Achievements in fiscal year 2022

Evaluation

Periodically revise BCPs
and reinforce cooperation
among product divisions
and sites.

• All product division BCPs were updated based on a new
BCP template created in fiscal year 2021 based on theassumption of the outbreak of a novel infectious disease.
• A periodic revision of BCPs was conducted, as scheduled.
• The headquarters task force conducted a drill jointly witha product division and a production facility based on thepremise of an accident (a fire) at a production facility.
• Steps were taken to ensure the stable operation of the
DIC BC Portal system, including reviewing criteria for
activating the system, as well as initial reporting rules,
preparing a manual for night-shift personnel,
and developing training environments for sites.
• Training employing the DIC BC Portal system was offeredat multiple sites.

★★★

Periodically revise BCPs andreinforce cooperation amongproduct divisions and sites.

Strengthen efforts to create
a global crisis management
configuration and promote
BCP initiatives.

• The DIC Group’s safety handbook for employees from Japantaking overseas business trips was revised and updated.
• A manual was prepared for the evacuation of expatriate
employees in the event a major geopolitical risk becomesmanifest.

★

Strengthen efforts to create
a global crisis management
configuration and promote
BCP initiatives.

Ensure the continuity of
DIC Group businesses.

Goals for fiscal year 2023

Basic Approach to BCM and Crisis Management
The DIC Group accounts for all risks with the potential to interrupt business continuity through BCM, including those related to natural
GLVDVWHUVVXFKDVPDMRUHDUWKTXDNHVW\SKRRQVDQGÀRRGVLQIHFWLRXVGLVHDVHVDQGSDQGHPLFVDQGIDFLOLW\DFFLGHQWVVXFKDVH[SORVLRQV¿UHVDQGOHDNV7KH*URXSFRPSUHKHQVLYHO\HVWLPDWHVWKHSUREDELOLW\RIHDFKULVNDQGLWVLPSDFWRQPDQDJHPHQWSULRULWL]LQJUHVSRQVH
PHDVXUHVIRUPRUHVLJQL¿FDQWULVNV7KH*URXSKDVDOVRHVWDEOLVKHGDWDVNIRUFHIUDPHZRUNHQFRPSDVVLQJDKHDGTXDUWHUVWDVNIRUFH
business task forces and on-site task forces, as well as prepared risk-specific manuals for use Groupwide, and continues to promote
efforts that include producing and revising business continuity plans (BCPs) for key products, formulating BCM and crisis management
countermeasures, and updating information.

■ Framework for Promoting BCP

DIC’s Framework for Promotion

Having prepared crisis management rules and risk-specificmanuals for use across the DIC Group in the event of a majordisaster, DIC has formulated BCPs for individual product divisions.

The DIC WAY
Common across the DIC GroupThe DIC Group also recognizes the need to ensure it canfulfill its supply responsibilities in the event of damage to its
facilities from a large-scale disaster and thus incorporates thisperspective into its BCPs. Specifically, the Group formulates%&3VIRUNH\SURGXFWVZLWKDYLHZWRIXO¿OOLQJLWVUHVSRQVLELOLWLHV
to society and responding to customer expectations. In
addition, DIC conducts BCP-focused joint product division–
production facility exercises assuming the implementation of
WKHVH%&3VWRFRQ¿UPWKHHIIHFWLYHQHVVRIPDQXDOVLGHQWLI\issues and implement ongoing improvements.

Basic sustainability policy
Risk management policy

Rules for managing
emergency supplies

Rules for crisis management in
the event of a major natural orother disaster

Site and subsidiary rules/
regulations, firefighting plans, etc.
Site-specific

Task force manuals

BCM system manuals

Production division–specificGroup company–specific

Product division
BCP manuals

DIC Report 2023

124

Group company
BCP manuals

BCM and Crisis Management■ BCM in Fiscal Year 2022

BCP template based on the assumption of widespread outbreak of anovel infectious disease.

As in the previous period, curbing the spread of COVID-19 once
DJDLQUHTXLUHGGHFLVLYHVWHSVLQ¿VFDO\HDUDQGWKH',&*URXS
continued working to implement effective measures that reflected
evolving circumstances.

■ Conducting Emergency Response Exercises and Drills
In addition to annual headquarters task force–led training, the DIC
Group has developed and works to maintain a system designed toensure its ability to minimize damage in the event of a disaster, as
well as to facilitate the swift restoration of operations. This system
includes a wide range of exercises and drills, including employee safety
FRQ¿UPDWLRQGULOOVVLWHWRVLWHHPHUJHQF\UDGLRZDUQLQJGULOOVDQGVLWH
VSHFL¿FFRPSUHKHQVLYHGLVDVWHUGULOOV:LWKWKHUROORXWRIWKH',&%&
Portal system, steps were taken to develop training environments forsites and to advance its use in the sharing of information among sites
on emergency response exercises and drills conducted.

Responding effectively to accidents and disasters depends on
employees having a correct understanding of BCM and of how
to properly execute the DIC Group’s BCPs. This in turn requires
education and training. In an average year, training includes conducting
workshops and map-based simulation exercises—originally developed
for senior management—for headquarters task force members under
the supervision and guidance of experts, as well as BCP-focused joint
production division–production facility exercises.
In fiscal year 2022, the DIC Group conducted a drill based on the
SUHPLVHRIZKLFKZDVD¿UHEUHDNLQJRXWDWDSURGXFWLRQIDFLOLW\UDWKHU
than the usual premise of a natural disaster, resulting in damage
affecting a number of production lines. The drill included using online
meetings involving corporate headquarters, product divisions andproduction facilities in combination with the DIC BC Portal system toreport and discuss responses and included an exercise in dealing withlocal governments and residents.

■ Crisis Management○ Efforts to Reinforce Safety Measures in Other Countries

and Territories
Opportunities for employees to travel to other countries and territories
on business, which had come to a temporary halt, are recovering to prepandemic levels. Given the increasing risks not only of the outbreak of an
infectious disease but also of terrorist attacks and insurgencies, the DIC
Group has prepared a safety manual for use by employees embarking on
RYHUVHDVEXVLQHVVWULSV,Q¿VFDO\HDUWKH*URXSUHYLVHGWKLVPDQXDO
focusing on sections related to infectious diseases, terrorism, demonstrations
and riots, and the operation of vehicles, and began deploying the newversion. The Group also prepared a manual for the evacuation of expatriate
employees in the event a major geopolitical risk becomes manifest.

The DIC Group also sought to address issues associated with the
DIRUHPHQWLRQHG',&%&3RUWDOV\VWHPLQLWV¿UVW\HDUVLQFHUROORXWLQ
fiscal year 2021. This focused on making improvements to ensure
VWDEOHRSHUDWLRQ6SHFL¿FDOO\WKH*URXSUHYLHZHGFULWHULDIRUDFWLYDWLQJthe system, as well as initial reporting rules, preparing a manual fornight-shift personnel, and developing training environments for sites.
To increase the system’s effectiveness, presentations were held at
individual sites to encourage understanding and utilization.

■ Improving the Effectiveness of BCPs andPreventing Them from Becoming Empty
Formalities
The DIC Group works to refine its BCP templates to prevent theseplans from becoming mere formalities. In fiscal year 2022, as in theprevious period, the Group adjusted its BCP templates in anticipationof the future evolution of Group companies, to comply with therequirements of ISO 22301, the ISO’s standard for business continuity
management systems. To bring its BCPs closer in line with the ISO
standard, the Group incorporated measures to prevent production
bottlenecks that obstruct business continuity.

Safety manual for employees embarking on
business trips to other countries and territories

Safety manual for company representatives
posted to other countries and territories■ Community Efforts to Cope with Major Disasters
Japan is one of the most earthquake-prone countries in theworld. As a consequence, ensuring earthquake readiness, that is,
the ability to prevent and mitigate the impact of earthquakes, isrecognized as a critical challenge for society as a whole.

The DIC Group also conducts annual status update meetings, attended
by relevant executives, to verify the content of revised product division
BCPs, thereby ensuring they remain relevant. The fiscal year 2022
status update meeting included interviews regarding bottlenecks arisingfrom revision of the format of BCPs designed to ensure business
continuity in the event of a major disaster and the creation of the new

Tokyo’s Nihonbashi district, home to DIC’s corporate headquarters,
is noted for its tightly clustered large commercial complexes and

DIC Report 2023

125

BCM and Crisis Management

office buildings. A comprehensive neighborhood disaster drill isconducted annually on an empty lot near the DIC Building, but
JLYHQWKHUDSLGVSUHDGRI&29,'LQ¿VFDO\HDUWKHGULOOZDV
replaced by disaster response awareness training, provided by the¿UHGHSDUWPHQWWKDWKDVMXULVGLFWLRQRYHUWKHDUHDZLWKWKHJRDORI
maintaining existing know-how and skills.
The DIC Building, designed with state-of-the-art earthquakeresistant technologies, has been designated as a temporary shelter
for people stranded in Chuo-ku, the ward in which Nihonbashi
is located, while DIC, as a member of Chuo-ku’s management
council for emergency shelters for stranded individuals, promotesa variety of initiatives aimed at assisting people stranded in thewake of a serious earthquake or other disaster. The Company also
participates in drills in collaboration with local authorities designed
to guarantee the effective sharing of information regarding
evacuations, among others, even in the midst of post-disasterchaos. DIC will continue to play an active role in community-based
efforts to reinforce local disaster preparations. In doing so, theCompany seeks to help ensure Tokyo’s disaster resilience.

■ Responding to Novel Infectious Diseases
The DIC Group revised its existing BCP template, premised on
WKHRXWEUHDNRIDQHZVWUDLQRILQÀXHQ]DLQ¿VFDO\HDUZLWKthe objective of ensuring its preparedness to respond in the eventof a widespread outbreak of a novel infectious disease. This new
template was created and deployed at corporate headquarters
in fiscal year 2022, forming the basis of new BCPs, which werecompleted by all of the product divisions during the period.
In fiscal year 2022, DIC also continued to promote actions
designed to help thwart the further spread of COVID-19 and protect
employees from infection. These included encouraging employees
to make use of telework arrangements, including by normallyineligible temporary staff, and staggered working hours, as wellas mandating individuals remain at home when they or any of thepeople they live with feel unwell, and avoiding holding meetingsand events.

DIC Report 2023

126

Information Security,QLWLDWLYHVWR(QVXUH,QIRUPDWLRQ6HFXULW\
Goals and Achievements of Major Initiatives(YDOXDWLRQVDUHEDVHGRQVHOIHYDOXDWLRQVRIFXUUHQWSURJUHVV.H\★★★ ([FHOOHQW★★ 6DWLVIDFWRU\★ = Still needs work

Objective of initiatives

Goals for fiscal year 2022

Achievements in fiscal year 2022

(VWDEOLVKDJOREDO
information security
framework.

In light of the results of theinformation security risk
assessment, formulate andimplement security measures,
BCPs and emergency response
drills appropriate for a cloudbased information system.

• A road map for information security measures was formulated
based on the findings of an information security risk
assessment.
• Steps were taken to formulate a plan for the deployment of a
global security framework, advance the transition to cloudbased computing under a next-generation IT project anddeploy a system created to address incidents when they occur.

Evaluation

Goal for fiscal year 2023★★

Based on the information security
road map devised in fiscal year
2022, decisively implement actionplans for themes determined to
be of particular importance.

Employeetraining/
drillsBasic Approach to Information Security
The DIC Group has positioned information security as a key management priority andestablished the Basic Policy on Information Security, which is founded on its recognition
that protecting information assets that belong to or are managed by the Group is essential
to its ability to conduct business. In line with this policy, DIC has formulated and implements
confidential information management guidelines. The DIC Group works to ensure that
directors and employees use the Group’s information assets properly in the course of businessand handle confidential information appropriately. The Group also pursues continuous
LPSURYHPHQWVE\FRQGXFWLQJLQWHUQDODXGLWVWRFRQ¿UPFXUUHQWLVVXHVDQGLGHQWLI\ULVNV

Strengthening of
measures tocombat targetedcyber attacks

Further
improvements

Response to the
expanded use ofdigital technologies

Response to the shift tocloud-based computing

Basic Policy on Information Security
Basic policy
Confidential information management regulations
Preparation of
response measures
Information management guidelines
Implementation proceduresInternal audits

security with the approval of the Sustainability Committee and manages
the progress of related efforts. The Group is currently exploring the idea of
establishing a system for ensuring information security for the entire global DIC
Group, including Sun Chemical.

■ Promoting and Enhancing Information

Security on a Global Basis
The DIC Group’s approach to information security management rests
on four pillars: Regulations and guidelines, management framework,
information security infrastructure, and employee education and training. In
response to increasingly diverse cyber threats, the Group currently plans to
deploy measures implemented in Japan to reinforce information security byenhancing its internet security infrastructure and updating endpoint security
systems in key overseas markets.

○ Information Security Infrastructure

Against a backdrop of increasingly active and sophisticated cyber attacks,
including ransomware and targeted threats, the DIC Group is working to respondto rapid changes in working environments attributable to work style reforms,
including the expansion of remote work and the increased use of cloud-based
services. The Group previously contracted a third-party organization to conduct
a risk assessment to evaluate the effectiveness and comprehensiveness of its
information security measures from a multifaceted perspective. Based on the
results of this assessment, the Group formulated a road map for information
VHFXULW\ZLWKWKHDLPRIUHVSRQGLQJÀH[LEO\DQGDSSURSULDWHO\WRHPHUJLQJF\EHU
risks, thereby permanently reducing risks to its businesses and management.

○ Regulations and Guidelines

In line with its Basic Policy on Information Security, the DIC Group updates its
FRQ¿GHQWLDOLQIRUPDWLRQPDQDJHPHQWUHJXODWLRQVZKLFKVWLSXODWHWKHVFRSHRI
management and related standards, rules and responsibilities, and information
management guidelines, which outline procedures for implementation, as wellas its information and communications technology management guidelines,
which govern the management of information and communications technology
environments, regularly and as required to address new security risks in a timely
manner. The Group also creates and revises rules in response to the increasing
prevalence of digital technologies and the shift to cloud-based computing.

○ Employee Education and Training

The DIC Group offers an e-learning information security program for employees
LQ-DSDQWKH$VLD±3DFL¿FUHJLRQDQGWKH$PHULFDVDQG(XURSHZLWKDFFHVVWRLQIRUPDWLRQZKHWKHURQOLQHRURIÀLQH*LYHQWKHLQFUHDVLQJO\DGYDQFHGQDWXUHRI
cyber attacks and crimes, the Group also promotes ongoing efforts to improve
employees’ awareness of information security and ability to respond effectively
should an issue arise.

○ Management Framework

7KH,QIRUPDWLRQ6HFXULW\&RPPLWWHHZKLFKLVOHGE\WKHFKLHILQIRUPDWLRQRI¿FHU(CIO), meets regularly (twice annually) as part of a system to facilitate the timely
update of rules and guidelines to accommodate new technologies and risks, andto ensure changes are communicated effectively across the DIC Group. The
committee formulates annual targets and initiatives for strengthening information○ Customer Privacy and Customer Data

To date, there have been no substantiated complaints regarding breachesof customer privacy and no incidents of leaks or the loss of customer data.

DIC Report 2023

127

Corporate Governance
Basic Approach to Corporate Governance
7KH',&*URXSGH¿QHVFRUSRUDWHJRYHUQDQFHDVDPHFKDQLVPWRHQVXUHHIIHFWLYHGHFLVLRQPDNLQJSHUWDLQLQJWRLWVPDQDJHPHQWSROLF\RIDFKLHYLQJVXVWDLQDEOH
FRUSRUDWHJURZWKDQGH[SDQVLRQWKURXJKVRXQGDQGHI¿FLHQWPDQDJHPHQWZKLOHDWWKHVDPHWLPHJXDUDQWHHLQJWKHDSSURSULDWHPRQLWRULQJDQGDVVHVVPHQWRIDQG
motivation for management’s execution of business activities. With the aim of achieving a higher level of trust with its shareholders, customers and other stakeholders
and enhancing corporate value, the Group also promotes ongoing measures to reinforce its management system and ensure effective monitoring thereof.

■ Policy on Corporate Governance■ Corporate Governance System

DIC has prepared a Policy on Corporate Governance, which it has
published on its global website.

As a company with internal auditors, DIC has a Board of Directors and an
Audit & Supervisory Board. The Company has also instituted an executive
RI¿FHUV\VWHPDQGKDVHVWDEOLVKHGD1RPLQDWLRQ&RPPLWWHH5HPXQHUDWLRQCommittee, Executive Committee, Sustainability Committee, Quality&RPPLWWHHDQG:RUN6W\OH5HYROXWLRQ :65 &RPPLWWHH

Policy on Corporate Governancehttps://www.dic-global.com/pdf/ir/management/governance/governance_en.pdf

Corporate Governance System

General Meeting of Shareholders
Appointment

Appointment

Board of Directors

Audit

Appointment

Audit & Supervisory Board

Nomination Committee
Remuneration Committee

Cooperation

Audit

Accounting auditors
Accounting audit【Execution of business】
President and CEO
Sustainability Committee
Quality Committee
WSR 2020 Committee

Cooperation

Cooperation

Executive Committee

Business groups, New Business Development Headquarters,
Production Management Unit, Technical Management Unit,
R&D Management Unit, headquartersʼ administrative units, sites,
Group companies

Internal Control Department
Internal audit Responsible Care Department
Quality Assurance Department❶ Board of Directors❹ Executive Committee

From the perspective of making business decisions in a timely manner andreinforcing corporate governance, the Board of Directors consists of nine
directors, three of whom are outside directors (one of whom is female).
The Board of Directors typically meets once monthly to make decisions on
matters delegated to it under the Companies Act of Japan and on importantbusiness matters stated in the regulations for meetings of the Board of
Directors, as well as to receive status reports on the execution of business
operations and supervise the execution of the business.

The Executive Committee was established as a body to advise on
important matters related to the execution of the DIC Group’s business.
The committee meets twice monthly in principle and consists of executive
RI¿FHUVDQGRWKHUVGHVLJQDWHGE\WKH%RDUGRI'LUHFWRUVIURPDPRQJWKH
President and CEO, the Executive Vice President, the heads of the units,
and the general managers of the management units and product divisions.
As part of the auditing process, one Audit & Supervisory Board member
also attends Executive Committee meetings. Details of deliberations at
meetings and the results thereof are reported to the Board of Directors.

❷ Nomination Committee

To ensure objectivity in the nomination of directors, Audit & Supervisory
Board members and executive officers, among others, the Nomination
Committee was established to provide recommendations to the Board of
Directors regarding the appointment and dismissal of directors, Audit &6XSHUYLVRU\%RDUGPHPEHUVDQGH[HFXWLYHRI¿FHUV7KHFRPPLWWHHPHHWV
DVQHFHVVDU\DQGFRQVLVWVRI¿YHGLUHFWRUVWKUHHRIZKRPDUHLQGHSHQGHQW
outside directors, with an independent outside director serving as chair.

❺ Sustainability Committee

The Sustainability Committee, which functions as an advisory body, met
IRXUWLPHVLQ¿VFDO\HDUWRIRUPXODWHVXVWDLQDELOLW\SROLFLHVDQGDFWLYLW\plans, and evaluate and promote sustainability initiatives, as well as toapprove the content of Group sustainability policies and bolster expertiseand skills crucial to sustainability. The committee consists of executive
RI¿FHUVDQGRWKHUVGHVLJQDWHGE\WKH%RDUGRI'LUHFWRUVIURPDPRQJWKH
President and CEO, the Executive Vice President, the heads of the units,
the general managers of the management units and product divisions, andthe CEOs of regional headquarters. As part of the auditing process, one
Audit & Supervisory Board member also attends Sustainability Committee
meetings. Details of deliberations at meetings and the results thereof arereported to the Board of Directors.

❸ Remuneration Committee

To ensure objectivity in the determination of remuneration for directors
and executive officers, the Remuneration Committee was establishedand has been entrusted with responsibility for determining remuneration,DPRQJRWKHUVIRUGLUHFWRUVDQGH[HFXWLYHRI¿FHUV7KHFRPPLWWHHPHHWV
DVQHFHVVDU\DQGFRQVLVWVRI¿YHGLUHFWRUVWKUHHRIZKRPDUHLQGHSHQGHQW
outside directors, with an independent outside director serving as chair.

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128

Corporate Governance❻ Quality Committee➓ Accounting Auditors

In addition to reporting on the status and progress of quality
management, the Quality Committee functions as a deliberative bodyfor the DIC Group’s quality policy, principal initiatives and important
issues in Japan. In principle, the committee meets once quarterly and
FRQVLVWVRIH[HFXWLYHRI¿FHUVDQGRWKHUVGHVLJQDWHGE\WKH%RDUGRI
Directors from among the President and CEO, the Executive Vice
President, the heads of the units, and the general managers of the
management units and product divisions. As part of the auditing
process, one Audit & Supervisory Board member also attends Quality
Committee meetings. Details of deliberations at meetings and theresults thereof are reported to the Board of Directors.

The Company has engaged Deloitte Touche Tohmatsu LLC as its
independent auditors. The Company strives to ensure an environmentthat facilitates the accurate disclosure of information and fair auditing.
The Audit & Supervisory Board members, accounting auditors andinternal auditing department conduct audits from their respective
independent positions, but also liaise periodically to facilitate close
cooperation, thereby ensuring the effectiveness of audits.

Meeting Data
Number of and attendance at meetings of the Board of Directors,
1RPLQDWLRQ&RPPLWWHHDQG5HPXQHUDWLRQ&RPPLWWHHLQ¿VFDO\HDU%RDUGRI'LUHFWRUV1XPEHURIPHHWLQJVDWWHQGDQFH
1RPLQDWLRQ&RPPLWWHH1XPEHURIPHHWLQJVDWWHQGDQFH
5HPXQHUDWLRQ&RPPLWWHH1XPEHURIPHHWLQJVDWWHQGDQFH

❼ WSR 2020 Committee

7KH:65&RPPLWWHHZDVHVWDEOLVKHGWRGHOLEHUDWHZRUNVW\OH
reform–related measures and investment plans, among others, withthe aim of enhancing Group employee job satisfaction and productivity.
In principle, the committee meets once quarterly and consists ofexecutive officers and others designated by the Board of Directors
from among the President and CEO, the Executive Vice President, theheads of the units, and the general managers of the management units
and product divisions. Details of deliberations at meetings and theresults thereof are reported to the Board of Directors.

■ Rationale Behind Current Corporate

Governance System
The Company has instituted an executive officer system, a move
aimed at separating decision making and implementation and thereby
accelerating business execution and clarifying responsibilities. The
Company has appointed three highly independent outside individuals to
its Board of Directors to reinforce its monitoring of business execution.
The Company also has a Nomination Committee and a Remuneration
Committee, which include three outside directors, to ensure objectivity
in the nomination of, and in determining remuneration for, directors andexecutive officers. Four Audit & Supervisory Board members, which
include one attorney and one certified public accountant as outside
members, conduct audits in liaison with the accounting auditors andthe internal auditing department. This structure ensures the effectivefunctioning of the Company’s corporate governance system.

❽ Audit & Supervisory Board

The Audit & Supervisory Board comprises four members, including
two who are outside (one of whom is female). In principle, the Audit& Supervisory Board meets once monthly. Board activities include
debating and determining auditing policies and auditing plans.
Members also report on the results of audits conducted.
Board members attend important meetings, including those of theBoard of Directors, Executive Committee and Sustainability Committee,
meet with representative directors on a periodic basis to exchange
information and opinions, and collect business reports from directors,
executive officers and employees. In addition, the Company has
HVWDEOLVKHGDQ$XGLW 6XSHUYLVRU\%RDUG0HPEHUV¶2I¿FHWRZKLFKLW
assigns dedicated personnel to assist the Audit & Supervisory Board
members in their duties.

■ System of Internal Controls❶ Status of the System of Internal Controls and theEstablishment of a Framework for Risk Management
In striving to conduct its operations in accordance with The DIC Way,
the DIC Group has prepared and operates a system of internal controls
based on the Companies Act of Japan to ensure the appropriatenessof its operations.
① The Company shall work to set forth the DIC Group Code ofBusiness Conduct as the standard regarding compliance, which
directors and employees should comply with, and to disseminate
the same.
② The Company shall, as part of its compliance activities,
HVWDEOLVKDQLQWHUQDOQRWL¿FDWLRQV\VWHPDVDFKDQQHODYDLODEOHIRU
the employees of the DIC Group and set up multiple notification
channels independent from channels used in the execution ofbusiness, thereby creating a structure that can quickly respond to
GRPHVWLFDQGLQWHUQDWLRQDOQRWL¿FDWLRQV
③ To ensure that the duties of directors are performed properly
and efficiently within the DIC Group, the Company shall establish
regulations for company organization and authority.
④ The Company shall formulate long-term management plans andthe annual budget based on DIC Group management policies andmanagement strategies, and, through dissemination of the same,
ensure common goals are shared within the DIC Group. The Company
shall make progress reports to the Board of Directors.

The Company’s three outside Audit & Supervisory Board members
have extensive experience in and knowledge of finance andaccounting, which they are able to leverage in the performance of
their duties. Full-time Audit & Supervisory Board member Hiroyuki
Ninomiya oversaw corporate accounts at the Company for many years
and was general manager of the Accounting Department and Headof the Finance and Accounting Unit. In addition to providing expertisein corporate law, outside Audit & Supervisory Board member Keita
Nagura provides tax accounting services pursuant to Article 51 of the&HUWL¿HG3XEOLF7D[$FFRXQWDQW$FW2XWVLGH$XGLW 6XSHUYLVRU\%RDUG
PHPEHU.HLNR.LVKLJDPLLVTXDOL¿HGDVDFHUWL¿HGSXEOLFDFFRXQWDQW
and has engaged in the audit of companies for many years.
❾ Internal Auditing Department

The internal auditing department—comprising local teams of
employees covering Japan, the Asia–Pacific region, the PRC, andEurope, the Americas, the Middle East and Africa—is charged withinternal auditing, which includes monitoring the effectiveness of internal
controls, based on annual auditing plans, and selects audit targets
based on risk assessments.

DIC Report 2023

129

Corporate Governance⑤ Information pertaining to the performance of duties by directors■ Outside Directors and Outside Audit &shall be recorded, retained and managed appropriately in accordancewith the regulations for document management. The Company shallestablish regulations for systems of information management and shall
SUHSDUHDV\VWHPIRUSUHYHQWLQJOHDNDJHRIFRQ¿GHQWLDOLQIRUPDWLRQRI
the DIC Group.
⑥ The Company shall formulate a risk management policy and shallidentify, assess, prioritize and address any risks that may have a
VLJQL¿FDQWLPSDFWRQPDQDJHPHQWRIWKH',&*URXS
⑦ The Company shall determine an administrative department foreach subsidiary from the standpoints of business execution andmanagement, and shall supervise the execution of business by
dispatching a director to each subsidiary.
⑧ The Company shall clarify important matters, including thosepertaining to subsidiaries, that must be approved by or reported to
the Company.

Supervisory Board Members❶ Number and Role of Outside Directors and Outside Audit &Supervisory Board Members
The Company currently has three outside directors and two outside
Audit & Supervisory Board members. In addition to attending meetingsof the Board of Directors, the three outside directors—who haveextensive experience in corporate management—serve as members of
the Nomination Committee and the Remuneration Committee, enablingthem to provide supervision with an independent point of view, thereby
helping to reinforce the Company’s corporate management. The two$XGLW 6XSHUYLVRU\%RDUGPHPEHUV²RQHDFHUWL¿HGSXEOLFDFFRXQWDQW
and the other an attorney—advise management of the DIC Group froman expert, multifaceted and independent perspective, thereby helping
to reinforce the auditing function.

❷ Basic Policy toward Eliminating Demands by Antisocial Elements
This basic policy, which is outlined in the DIC Group Code of Business&RQGXFWLVWRVWDQG¿UPO\DJDLQVWDQWLVRFLDOHOHPHQWVDQGLQQRZD\
to acquiesce to demands presented by such elements. The General
Affairs and HR Department is responsible for coordinating efforts
to respond to extortion or other demands presented by antisocial
elements, while individuals have been put in charge of efforts ateach site and within each Group company. These individuals workin close collaboration with legal counsel and the police to ensure theCompany’s responses are resolute. The Company has also preparedand distributed a manual on appropriate responses to such demands
with the aim of raising awareness among employees.

❷ Independence Standards for Outside Directors and Outside Audit& Supervisory Board Members
The Company recognizes the need to appoint individuals to the positionof outside director and outside Audit & Supervisory Board member,which are shown below. The Company’s outside directors and outside
Audit & Supervisory Board members are individuals who, based on
WKHVHVWDQGDUGVDUHXQOLNHO\WRKDYHFRQÀLFWVRILQWHUHVWZLWKRUGLQDU\shareholders and who comply with criteria for the independence of
directors and Audit & Supervisory Board members set by the Tokyo
Stock Exchange.

Independence Standards for Outside Directors and Outside Audit & Supervisory Board Members
7KH&RPSDQ\GRHVQRWUHFRJQL]HLQGLYLGXDOVZLWKWKHFRQQHFWLRQVOLVWHGEHORZDVEHLQJLQGHSHQGHQWLQWKHDSSRLQWPHQWRIRXWVLGHRI¿FHUV
1. Individuals who are executives of the Company or of one of its consolidated subsidiaries (collectively, the “DIC Group”) at present or have been inWKHSUHFHGLQJ\HDUV Individuals to whom any of the following items have applied in the preceding three years:❶ $SULQFLSDOEXVLQHVVSDUWQHURIWKH',&*URXS DEXVLQHVVSDUWQHUZLWKZKLFKWUDQVDFWLRQVLQDVLQJOH¿VFDO\HDUH[FHHGRIWKH',&*URXS¶V
consolidated net sales in that year) or an executive of a business partner to which this description applies❷ $QLQGLYLGXDOIRUZKLFKWKH',&*URXSLVDSULQFLSDOEXVLQHVVSDUWQHU DEXVLQHVVSDUWQHUZLWKZKLFKWUDQVDFWLRQVLQDVLQJOH¿VFDO\HDUH[FHHG
RIWKHSDUWQHU¶VFRQVROLGDWHGQHWVDOHVLQWKDW\HDU RUDQH[HFXWLYHRIDQHQWLW\WRZKLFKWKLVGHVFULSWLRQDSSOLHV❸ $VKDUHKROGHUZKRKROGVRUPRUHRIWKHYRWLQJULJKWVRIWKH&RPSDQ\RUDQH[HFXWLYHRIDVDLGVKDUHKROGHUWRZKLFKWKLVGHVFULSWLRQDSSOLHV❹ $SULQFLSDOOHQGHUWRWKH',&*URXS DOHQGHUIURPZKLFKORDQVLQDVLQJOH¿VFDO\HDUH[FHHGRIWKH',&*URXS¶VWRWDODVVHWVLQWKDW\HDU RUan executive of a said lender to which this description applies❺ $QLQGLYLGXDOZKRKDVUHFHLYHGFRQWULEXWLRQVIURPWKH',&*URXSLQDVLQJOH¿VFDO\HDUWKDWH[FHHGPLOOLRQRUDQLQGLYLGXDOZKREHORQJVWR
an entity to which this description applies❻ An accountant who serves as an accounting auditor or accounting advisor for the DIC Group or an individual who is an employee, partner or
DVVRFLDWHRIDQDXGLW¿UPWRZKLFKWKLVGHVFULSWLRQDSSOLHV❼ Any individual to whom ❻GRHVQRWDSSO\EXWZKRKDVUHFHLYHGUHPXQHUDWLRQIURPWKH',&*URXSWKDWH[FHHGVPLOOLRQLQD\HDUH[FOXGLQJUHPXQHUDWLRQUHFHLYHGDVDGLUHFWRURUH[HFXWLYHRI¿FHURIWKH',&*URXSDVDSURYLGHURISURIHVVLRQDOVHUYLFHVVXFKDVFRQVXOWLQJDFFRXQWLQJRUOHJDOVHUYLFHVRUDQLQGLYLGXDORIDQRUJDQL]DWLRQWKDWUHFHLYHGUHPXQHUDWLRQLQH[FHVVRIRILWVFRQVROLGDWHGQHWVDOHVLQD¿VFDO\HDUDV
compensation for professional services❽$QH[HFXWLYHRIDQRWKHUFRPSDQ\LQWKHHYHQWWKDWDQH[HFXWLYHRIWKH&RPSDQ\LVDSSRLQWHGWRDQRXWVLGHRI¿FHUSRVLWLRQDWWKDWFRPSDQ\6SRXVHVDQGUHODWLYHVZLWKLQWKHVHFRQGGHJUHHRINLQVKLSRILQGLYLGXDOVOLVWHGLQRUDERYH
$QLQGLYLGXDOZKRVHWHUPDVDQRXWVLGHRI¿FHURIWKH&RPSDQ\H[FHHGVHLJKW\HDUVDIC Report 2023

130

Corporate Governance❸ Support System for Outside Directors and Outside Audit &Composition of the Board of Directors

Supervisory Board Members
Prior to meetings of the Board of Directors, relevant materials are
distributed to all outside directors and outside Audit & Supervisory%RDUGPHPEHUV,QDGGLWLRQWKHH[HFXWLYHRI¿FHUVLQFKDUJHSURYLGH
explanations of the agenda to outside directors, while full-time Audit& Supervisory Board members provide explanations as necessary tooutside Audit & Supervisory Board members.

In-house
Outside

38.5%
61.5%

■ Other Initiatives to Enhance the Corporate

Governance System❶ Composition of the Board of Directors

To enable the Board of Directors to resolve major operations-related
issues as well as to facilitate the effective oversight of management,
the Board of Directors comprises outside directors, who maintainindependence, and other individuals having a thorough knowledge ofthe businesses of the DIC Group, with consideration given to ensuring
a balance among necessary knowledge, experience and capabilities.
The Board is of an appropriate scale based on the presumption that
authority will be delegated to management. Additionally, in light of the
DIC Group’s global operations, the Company also strives to ensure
diversity in the Board’s composition. The Board currently has two
female members (one director and one outside director.)

Composition of the Board of Directors
In-house Outside

Total

Percentage ofoutside members

Directors

6

3

9

33.3%

Audit & Supervisory
Board members

2

2

4

50.0%

Total

8

5

13

38.5%

Skills Matrix for Directors and Audit & Supervisory Board Members
The table to the right is a skills
matrix summarizing the knowledge,
experience and capabilities ofcurrent directors and Audit &Supervisory Board members.

Expertise/Experience
Name

Position

Masayuki
Saito

Chairman of theBoard of Directors

●

●

Kaoru
Ino

Representative Director
President and CEO●●

Toshifumi
Tamaki

Representative Director
Executive Vice President●

Yoshihisa
Kawamura

Director●TakeshiAsai

Director
Managing Executive Ofﬁcer

●

●

Shuji
FurutaDirector
Managing Executive Ofﬁcer●●

YoshiakiTamuraOutside Director

●

●

●

●

●

KunikoShoji

Outside Director

●

●

●

●

●

Outside Director●

Masami
FujitaHiroyuki
Ninomiya
AkihiroIkushima
Keita
NaguraKeiko
Kishigami

Corporate
Finance/
Legal Affairs/ International
Management Asset Building Risk Management Experience

Sustainability

●
●

IT/DX

Personnel/
Labor

●

●

●

●

●

●

●

❷ Remuneration for Directors and Audit & Supervisory Board Members

●

●

●

●

●

●

●

Audit & Supervisory
Board Member(Full-time)
Audit & Supervisory
Board Member(Full-time)
Audit & Supervisory
Board Member(Independent)
Audit & Supervisory
Board Member(Independent)

Production/
Quality●●●●

Marketing/Sales/ Technology/
Purchasing
R&D

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

eligible for bonuses and stock compensation, in addition to basic
remuneration, while other directors and outside directors are eligible forbasic remuneration only. Remuneration for Audit & Supervisory Board
members consists of basic remuneration only, which is determined inaccordance with internal rules established by the Audit & Supervisory
Board, with consideration given to ensuring a balance with remuneration
for directors and to prevailing market rates.

Remuneration for directors is determined by the Remuneration
Committee, taking into account prevailing market rates, and consists ofbasic remuneration; bonuses, which are linked to consolidated operating
results and achievement of individual targets; and stock compensation,
which is linked to the achievement of medium- to long-term performancetargets. Directors who serve concurrently as executive officers are

DIC Report 2023

131

Corporate Governance

Remuneration for Directors and Audit & Supervisory Board Members in Fiscal Year 2022
Total
remuneration(Millions of yen)

Composition of remuneration (Millions of yen)Basicremuneration

Bonuses

Stockcompensation

Number of directors and Audit &Supervisory Board members

Directors (excluding outside directors)

342

230

54

58

6

Audit & Supervisory Board members(excluding outside Audit & Supervisory Board members)

60

60

―

―

2

2XWVLGHRI¿FHUV

72

72

―

―

5

1RWH7KHWRWDODPRXQWRIVWRFNFRPSHQVDWLRQLVWKHWRWDOPRQHWDU\YDOXHRIVKDUHVFRUUHVSRQGLQJWRWKHSRLQWVJUDQWHGIRU¿VFDO\HDUEDVHGRQWKH&RPSDQ\¶VSHUIRUPDQFHEDVHGVWRFNFRPSHQVDWLRQSODQ❸ Evaluating the Effectiveness of the Board of Directors

As measurable targets for ensuring diversity, the Company has set targets forpercentage of directors and Audit & Supervisory Board members accounted for
E\ZRPHQDQGRUIRUHLJQQDWLRQDOVSHUFHQWDJHRIH[HFXWLYHRI¿FHUVDFFRXQWHG
for by women and/or foreign nationals, percentage of management positionsin Japan occupied by women and percentage of mid-career hires accounted
IRUE\ZRPHQSXEOLVKLQJDFWXDO¿JXUHVLQLWVLQWHJUDWHGUHSRUWDORQJZLWKRWKHU
yardsticks such as mid-career hires as a percentage of total new hires.

DIC analyzes and evaluates the effectiveness of the Board of Directors annually
via a self-evaluation conducted by directors and Audit & Supervisory Board
PHPEHUV,QILVFDO\HDUDOOGLUHFWRUVDQG$XGLW 6XSHUYLVRU\%RDUG
members were surveyed regarding self-evaluations, Board administration andother issues, and interviewed on an individual basis, with responses analyzed
and evaluated by the Board of Directors.

❷ Sustainability Initiatives

Owing to the aforementioned efforts, it was confirmed that free and lively
discussions had been held, led by outside directors and outside Audit &Supervisory Board members, and that appropriate deliberations had been
conducted by the Board of Directors. In addition, regarding issues identified
LQWKHHYDOXDWLRQFRQGXFWHGLQ¿VFDO\HDULWZDVMXGJHGWKDWGLVFXVVLRQVSHUWDLQLQJWRWKHSURJUHVVRIWKH&RPSDQ\¶V',&9LVLRQORQJWHUP
management plan and of major investment projects had been enhanced throughimprovements such as the creation of multiple opportunities for explanation anddeliberation and the development of global internal control and risk management
V\VWHPV$FFRUGLQJO\WKHHIIHFWLYHQHVVRIWKH%RDUGRI'LUHFWRUVZDVFRQ¿UPHG

DIC promotes sustainability initiatives in line with key themes that reflect its
EHOLHIWKDWDVDPDQXIDFWXUHURI¿QHFKHPLFDOVLWKDVDUHVSRQVLELOLW\WRDGGUHVV
ESG-related issues, and discloses the progress thereof in its integrated report.
,Q-DQXDU\WKH&RPSDQ\UHDIILUPHGLWVVXSSRUWIRU5HVSRQVLEOH&DUH
management by signing the CEO’s Declaration of Support for the Responsible&DUH*OREDO&KDUWHUZKLOHLQ'HFHPEHULWEHFDPHDVLJQDWRU\WRWKH
81*&,Q0D\',&GHFODUHGLWVVXSSRUWIRUWKH7&)'DQGLQ$SULO
LWMRLQHGWKH-DSDQ%XVLQHVV,QLWLDWLYHIRU%LRGLYHUVLW\ -%,% ,Q)HEUXDU\
WKH&RPSDQ\¶VWDUJHWIRUDFKLHYLQJFDUERQQHXWUDOLW\E\¿VFDO\HDUVHWLQ
-XQHUHFHLYHGRI¿FLDOHQGRUVHPHQWIURPWKH6%7LDVEHLQJFRQVLVWHQWZLWKlevels that climate science says are necessary to limit average global warming
WRZHOOEHORZ&DERYHSUHLQGXVWULDOOHYHOV,QUHFRJQLWLRQRIWKHVHDQGRWKHU
initiatives, DIC has been selected for inclusion in the Dow Jones Sustainability,QGLFHV '-6, $VLD3DFL¿F,QGH[IRUHLJKWFRQVHFXWLYH\HDUV,QILVFDO\HDUWKH&RPSDQ\ZLOOVHHNWRIXUWKHUEROVWHUWKH%RDUGRI
Directors’ effectiveness by reviewing the progress of priority measures set
IRUWKLQ',&9LVLRQDVZHOODVE\WDNLQJVWHSVWRVWUHQJWKHQWKH%RDUG¶V
supervision of the risk management system, as part of its ongoing effort topromote improvement.

■ Other Initiatives

Change❶ Ensuring Diversity in the Promotion of Core Human Resources

Year

With regard to ensuring diversity, DIC works to foster a corporate culture thatdraws on its understanding and respect for diversity to produce creative ideas
and to incorporate the concept of diversity into management, thereby creating
workplaces that enhance job satisfaction for employees. Respect for diversity isalso stipulated in the Company’s Basic Sustainability Policy.

&KDQJHVWHUPRIRI¿FHRIGLUHFWRUVIURPWZR\HDUVWRRQH\HDU$GRSWVH[HFXWLYHRI¿FHUV\VWHP



Abolishes system of retirement allowances for executives

Establishes committee to determine compensation for directors andAudit & Supervisory Board members



The Company’s policy for fostering human resources and creating work
environments in a manner that ensures diversity is to “promote efforts toensure diverse human resources are in the right places and the creation ofwork environments that enable employees to maximize their capabilities.”
An executive officer has been put in charge of diversity to create an
HIIHFWLYHFRQ¿JXUDWLRQ

Appoints two outside directors



Establishes Remuneration Committee and Compensation Committee

Establishes Sustainability Committee

Formulates Policy on Corporate Governance (including
independence standards for outside directors and outside Audit &Supervisory Board members)

Increased number of outside directors from two to threeAdopts system of performance-based stock compensation

Establishes Quality Committee(VWDEOLVKHV:65&RPPLWWHH

In its long-term management plan, the Company identifies “ensure
mobility (hiring, retention and succession)” as a strategic priority forreinforcing management of human capital. From the perspectiveof business strategy, as well as to advance diversity, the Company
actively promotes the hiring of experienced mid-career individuals fromdifferent industries and with digital capabilities.

DIC Report 2023

132

Risk Management
Basic Approach to Risk Management
7KH',&*URXSZRUNVWRH[SDQGLWVRSHUDWLRQVLQOLQHZLWKWKHJURZWKVFHQDULRVHWIRUWKLQWKH',&9LVLRQORQJWHUPPDQDJHPHQWSODQAt the same time, in this age of unprecedented uncertainties caused by technological innovation, diversifying values, wars and pandemics,
effectively managing risks is crucial to increasing corporate value. The Group strives to address changes in its operating environment and
WKHGLYHUVL¿FDWLRQRIULVNVLQDQDSSURSULDWHDQGÀH[LEOHPDQQHU7KH*URXSDOVRSURPRWHVLQLWLDWLYHVDLPHGDWSURPSWO\PLQLPL]LQJWKH
impact of latent risks on its businesses should such risks manifest.

■ Risk Management Policy

departments, the DIC Group recognizes risks in three
SULQFLSDOFDWHJRULHV7KH¿UVWWZRDUHH[WHUQDOO\FDXVHGULVNV
and corporate risks, which are managed by the Sustainability
Committee and its subordinate entity, the Risk Management
Working Group, while the third is business risks, which are
PRQLWRUHGDSSURSULDWHO\E\DPRQJRWKHUVWKH([HFXWLYH
Committee, an entity established to deliberate important
PDWWHUVUHODWHGWRWKHH[HFXWLRQRIEXVLQHVVDFWLYLWLHVBased on the aforementioned basic approach, the DIC Grouphas established a risk management policy. This policy has twocomponents.
① The DIC Group shall identify, assess, prioritize and address any risks
that may have a significant impact on its management based on
potential impact on management and likelihood of occurrence, andUHVSRQGLQDGHOLEHUDWHV\VWHPDWLFDQGHI¿FLHQWPDQQHU
② The DIC Group shall establish a Group risk management system andensure its effectiveness by repeating the PDCA cycle.

Each fiscal year, the DIC Group identifies risks based on
their potential to hinder achievement of the goals of the
DIC Vision 2030 long-term management plan as priority
risks. Each risk is assigned an owner, that is, the division or
department responsible for implementing countermeasuresand validate their effectiveness using the PDCA cycle, withthe aim of minimizing impact should the risk materialize.
These efforts are overseen by the Board of Directors.

■ Framework for Risk Management
In addition to appointing a new director in charge of risk
management, the DIC Group recently established a new
Risk Management Working Group, a subordinate entityof the Sustainability Committee, as part of its effort tostrengthen its comprehensive risk management framework.

■ Risk Management Initiatives
Among the broad range of risks recognized as a result ofvoluntary risk management efforts in divisions and/or

Board of Directors

Risk communication
Sustainability Committee
Director in charge of risk management
Risk Management Working Group
Chair: Director in charge of ESG
Members: Business group presidents,
administrative unit heads, others
Secretariat: Legal Department, Accounting Department,Internal Control Department, others

Risk owners
Risk communication

BCM and Crisis
Management Working Group
Chair: General Manager,
General Affairs and HR Department

DIC Report 2023

133

'LUHFWRUV$XGLW 6XSHUYLVRU\%RDUG0HPEHUVDQG([HFXWLYH2I¿FHUV(As of May 2023)| Directors

1

Masayuki Saito

Chairman of the Board of Directors

2

Kaoru Ino

Representative Director

3

Toshifumi Tamaki

Representative Director

4

Yoshihisa Kawamura

Director

5

Takeshi Asai

Director

6

Shuji Furuta

Director

7

Yoshiaki Tamura

Director*

8

9

Masami Fujita

Director*

8

Kuniko Shoji

Director*

6

3* Outside

5

1

7

2

9

4

| Audit & Supervisory Board Members
1

Hiroyuki Ninomiya

Full-Time Audit & Supervisory Board Member
2

Akihiro Ikushima

Full-Time Audit & Supervisory Board Member
3

Keiko Kishigami

Audit & Supervisory Board Member*
4

Keita Nagura

Audit & Supervisory Board Member** Outside3

1

2| 2XWVLGH$XGLW 6XSHUYLVRU\%RDUG0HPEHU3URÀOHV

| 2XWVLGH'LUHFWRU3URÀOHV
Masami Fujita

Keiko Kishigami

Michiko Chiba

April 2019 Executive Vice President, SHINKO ELECTRIC INDUSTRIES CO., LTD.
June 2019 Representative Director and President, SHINKO ELECTRIC INDUSTRIES CO., LTD.
June 2021 Representative Director and Chairman, SHINKO ELECTRIC INDUSTRIES CO., LTD.

December 1997 Partner, Century Audit Corporation(currently Ernst & Young ShinNihon LLC)
May 2004 Representative Partner (currently Senior Partner), Ernst &Young ShinNihon (currently Ernst & Young ShinNihon LLC)
September 2018 Board Member, WWF Japan

October 1989 Joined Showa Ota & Co. (currently Ernst & Young ShinNihon LLC)
July 2010 Senior Partner, Ernst & Young ShinNihon LLC
September 2016 Founded Chiba Certified Public Accountant Office

Yoshiaki Tamura

4

January 2007 Executive Officer, Asahi Glass Co., Ltd. (currently AGC Inc.)
March 2013 Representative Director and Executive Vice President, AGC Inc.
March 2017 Executive Fellow, AGC Inc.

Keita Nagura
April 1998 Registered as an attorney (Osaka Bar Association); Joined Yodoyabashi Godo Law Office(currently Yodoyabashi & Yamagami Legal Professional Corporation)
February 2002 Changed registration as an attorney to the Dai-Ichi Tokyo Bar Association

DIC Report 2023

134

Directors, Audit & Supervisory Board Members
DQG([HFXWLYH2IÀFHUV| ([HFXWLYH2IÀFHUVKaoru Ino

Toshifumi Tamaki

Masaya Nakafuji

Kazuo Hatakenaka

Kiyotaka Kawashima

President and CEO

Executive Vice President

Senior Managing Executive
OfficerManaging Executive Officer

Managing Executive Officer

Chairman, DIC (China) Co., Ltd.
Chairman, DIC (Shanghai) Co., Ltd.

General Manager, Technical Management
Unit

Assistant to President and CEO

Head of General Affairs and Legal Unit
In Charge of Risk Management, Osaka
Branch and Nagoya Branch

Masamichi Sota

Kiyofumi Takano

Yoshinari Akiyama

Myron Petruch

Takeshi AsaiManaging Executive Officer

Managing Executive Officer

Managing Executive Officer

Managing Executive Officer

Managing Executive Officer

President, Packaging & Graphic
Business Group
General Manager,
Printing Material Products Div.

General Manager, New Business
Development Headquarters

President, Color & Display Business Group
General Manager, Color Material
Products Div.

President and CEO,Sun Chemical Corporation

Head of Corporate Strategy Unit
In Charge of Kawamura
Memorial DIC Museum of Art
Vice Chairman of the Board,
Sun Chemical Corporation

Shuji Furuta

Takashi Ikeda

Koji AsadaPaul Koek

Masahiro Kikuchi

Managing Executive Officer

Managing Executive Officer

Managing Executive Officer

Executive Officer

Executive Officer

Head of Finance and Accounting Unit
CFO

President, Functional Products
Business Group
General Manager,
Composite Material Products Div.

Head of IT Strategy UnitManaging Director,
DIC Asia Pacific Pte Ltd

Deputy Managing Director (AP Region
Non Graphic Business and South Asia),
DIC Asia Pacific Pte Ltd

Yuji Morinaga

Toshiro Ariga

Yuji Kikuchi

Tomoyuki Tanaka

Kuniko Torayama

Executive Officer

Executive Officer

Executive Officer

Executive Officer

General Manager, Packaging Material
Products Div.

General Manager, R&D Management Unit
General Manager, Central ResearchLaboratories

General Manager, Performance
Material Products Div.

General Manager, Corporate Planning
Dept.

Masaaki Kusaka

Takao Iribe

Yoshiharu Ootoshi

Kevin Michaelson

Executive Officer

Executive Officer

Executive Officer

Executive Officer

General Manager, Legal Dept.

Head of SCM Unit
General Manager,
Supply Chain Planning Dept.

General Manager, Production
Management Unit

Vice President and CFO,Sun Chemical Corporation

DIC Report 2023

135

Executive Officer
Head of ESG Unit
In Charge of Diversity

A Message from an Outside Director

We are leveraging nimble innovation to help resolve
social imperatives.
Kuniko Shoji
Outside Director-XQH([HFXWLYH2I¿FHU7HUXPR&RUSRUDWLRQ-XQH'LUHFWRUDQG6HQLRU([HFXWLYH2I¿FHU7HUXPR&RUSRUDWLRQ-XQH$GYLVRU7HUXPR&RUSRUDWLRQVWUDWHJLHVRI',&9LVLRQLVWRUHLQIRUFHPDQDJHPHQWRI
human capital. Helping employees become more engaged
and fostering human resources are strategically important
REMHFWLYHVDQG,DPIXOO\LQIDYRURIWKHYDULRXVPHDVXUHVbeing promoted to these ends. I recognize that neither
RI WKHP ZLOO EH DFKLHYHG RYHUQLJKW 3URYLGLQJ XQVWLQWLQJ
training on an ongoing basis is also essential to nurturing the&RPSDQ\¶VQH[WJHQHUDWLRQRIOHDGHUV

■ Highly Effective Corporate GovernanceFour years have passed since I took up the position of outside
GLUHFWRULQ,UHPHPEHULQLWLDOO\EHLQJVXUSULVHGWKDW',&
had a more vibrant and open atmosphere than I had expectedfrom an organization that has been around for more than
100 years. I am reminded on a daily basis of the integrity and
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&XVWRPHUVVHHWKLV,WKHOSVHDUQWKHLUWUXVWDQGLVVXUHO\RQH
RIWKHUHDVRQVEHKLQGWKH&RPSDQ\¶VFHQWXU\SOXVKLVWRU\$W
%RDUGRI'LUHFWRUV¶PHHWLQJVZHDUHDEOHWRH[FKDQJHRSLQLRQVRQDJHQGDLWHPVIUHHO\ZKLFKHQVXUHVWKHTXDOLW\RIGLVFXVVLRQV
LVH[FHOOHQW,QP\YLHZWKHHIIHFWLYHQHVVRI',&¶VFRUSRUDWH
governance is extremely high.

■ Boldly Taking On Challenges to Ensure Another

100 Years,Q ILVFDO \HDU  ZH IRXQG RXUVHOYHV DW WKH PHUF\ RI
&29,'+LVWRU\LVDVHULHVRIFKDOOHQJHV1RPDWWHUWKH
HUD WKHUH ZLOO DOZD\V EH H[LJHQW LVVXHV WR FRQIURQW DQGGLIILFXOWFKRLFHVWRPDNH7KHDELOLW\WRUHOLVKFKDOOHQJHVZLWKRXWIHDURIIDLOXUHLVRQHWKDWZLOODOZD\VEHUHTXLUHGRIEXVLQHVVOHDGHUV',&¶VORQJKLVWRU\LVDVDJDRIFKDQJH
RIJURZLQJVRPHEXVLQHVVHVDQGVKULQNLQJRWKHUVWRGULYHJURZWK,WLVP\KRSHWKDWLQORRNLQJDKHDGWR',&¶VVHFRQG
FHQWXU\ LQ EXVLQHVV HPSOR\HHV ZLOO FRQWLQXH WR DFWLYHO\GHEDWHDQGGHHSHQWKHLUJUDVSRIWKH&RPSDQ\¶VUDLVRQG¶rWUHIURPWKHSHUVSHFWLYHRIKRZ',&FDQFRQWULEXWHWR
VRFLHW\LQWKHIXWXUHDQGWKDWWKLVZLOOIXUWKHUXQGHUVFRUHMREVDWLVIDFWLRQ,WLVP\KRSHWKDWHPSOR\HHVIHHOHPSRZHUHGWR
DGGUHVVFKDOOHQJHVEROGO\ZLWKRXWEHLQJDIUDLGRIFKDQJH

■ Working to Resolve Social Imperatives with a

Sense of Urgency:KLOHWKHUHLVXQGHQLDEO\DFXOWXUHRIVLQFHULW\ZKLFKLV
VRPHWKLQJ,GH¿QLWHO\DSSODXG,GRIHHOWKDWGHWHUPLQDWLRQto execute plans and achieve targets is lacking to a certain
degree. If one is passionate about seeing things through to
FRPSOHWLRQWKDWHQHUJ\ZLOOLQVSLUHRWKHUV(YHQWXDOO\WKLV
develops into a major competitive advantage. Seeing things
WKURXJKDOVRUHTXLUHVLQQRYDWLRQ,WKLQNWKHUHLVDWHQGHQF\to see innovation as something difficult to generate fromWKHJURXQGXSEXWRIWHQLWLVMXVWDPDWWHURIFKDQJLQJRQH¶VDSSURDFKRIIRUH[DPSOHFRPELQLQJWZRPDWHULDOVWKDW
already exist rather than starting from zero.

,QWKHFXUUHQWHUDVXVWDLQDELOLW\LVVHHQDVDQLQFUHDVLQJO\critical corporate value. It is vital that our employees find
ZKDWWKH\GRUHZDUGLQJDQGWKDWWKH\ZRUNWRJHWKHUDVRQH
WRDGGUHVVVRFLDOLPSHUDWLYHV7KHUHDUHRSSRUWXQLWLHVLQ
FKDOOHQJHV,ORRNIRUZDUGWRHYHU\RQH¶VHIIRUWVLQWKH\HDUVDKHDGDQG,SOHGJHWRFRQWLQXHGRLQJZKDWHYHU,FDQWR
support everyone.

,EHOLHYHWKDWWKHNH\WRIRVWHULQJDQHPSOR\HH¶VSDVVLRQIRUWDNLQJRQFKDOOHQJHVLVWRLQVWLOOERWKWKHFRQ¿GHQFHWKDWZRUNLQJIRU',&ZLOOOHDGWRSHUVRQDOJURZWKDQGWKHGHVLUHWRFRQWULEXWHWRJURZWKIRUWKH&RPSDQ\2QHRIWKHEDVLFDIC Report 2023

136

Financial Report for Fiscal Year 2022
■ Analysis of Results of Operations
Overview of Operating Results(Billions of yen)

FY2021

FY2022

Change (%)

Change (%)
Local currency basis

Net sales

855.4

1,054.2

23.2%

16.2%

Operating income

42.9

39.7

-7.5%

-5.1%

Ordinary income

43.8

39.9

-8.7%

-

Net income attributable to owners of the parent

4.4

17.6

303.4%-EBITDA*

69.0

85.5

23.8%

-

¥/US$1.00 (Average exchange rate)

109.75130.5919.0%-¥/EUR1.00 (Average exchange rate)

129.73137.71

6.2%-* EBITDA: Net income attributable to owners of the parent + Total income taxes + (Interest expenses – Interest income) + Depreciation and amortization + Amortization of goodwill

Operating income decreased 7.5%, to ¥39.7 billion. This was despite theprogress of efforts to pass on higher costs, particularly for raw materials,
by modifying sales prices for many products, and was due largely tofalling shipments of high-value-added products, notably digital materials
and materials used in mobility solutions, which pushed down results in
the Color & Display and Functional Products segments. The absence ofELOOLRQLQRQHWLPHH[SHQVHVUHFRUGHGLQWKHSUHYLRXV¿VFDO\HDULQ
association with the integration of the Colors & Effects pigments businessnarrowed the margin of decline.

In the fiscal year ended December 31, 2022, consolidated net sales
climbed 23.2%, to ¥1,054.2 billion. This sharp increase, coming amid
global economic turmoil caused by a multiplicity of escalating geopoliticalULVNVLQFOXGLQJULVLQJLQÀDWLRQDU\SUHVVXUHZRUOGZLGHWKHSURWUDFWHGFULVLV
in Ukraine and restrictions on movement in the People’s Republic of China(PRC) under a stringent “zero-COVID” policy, was attributable to ongoing
efforts to adjust sales prices in response to elevated energy, logistics
and raw materials costs, as well as to the influence of yen depreciation
on results denominated in other currencies after translation. In the Color& Display segment, the margin of improvement in net sales was boosted
by the addition of a full year of sales from the Colors & Effects pigments
business, which was not included in the scope of consolidation until the
VHFRQGKDOIRIWKHSUHYLRXV¿VFDO\HDU1RQHWKHOHVVVKLSPHQWVRIKLJK
value-added products were down in all regions from the third quarter
forward, that is, from July through December, as demand for digitalmaterials, used principally in electrical and electronics equipment anddisplays, continued to deteriorate in a negative rebound from gains
ascribed to COVID-19–induced stay-at-home lifestyles, as well as to thefact that automobile production–related markets, plagued by semiconductor
shortages, remained in recovery mode. Shipments of pigments also fell
from the third quarter forward, owing to waning economic conditions in
Europe, a leading market for these products.

Ordinary income, at ¥39.9 billion, was down 8.7%.
Net income attributable to owners of the parent soared 303.4%, to¥17.6 billion. The foremost factors behind this jump were one-time costs
associated with the acquisition of the Colors & Effects pigments business,
together with the reversal of deferred tax assets in the United States andthe recording of an equivalent amount as income taxes–deferred, in thepreceding period.
Earnings before interest, taxes, depreciation and amortization (EBITDA)
rose 23.8%, to ¥85.5 billion.

Segment Results(Billions of yen)

Net sales

Operating income (loss)

Change Change (%)(%)[Local currency basis]

Change (%)

FY2021

FY2022

Change
(%)

14.9%

21.6

20.3

-6.0%

0.3%

48.5%

34.4%

4.0

5.1

29.1%

37.7%

315.4

11.3%

6.5%

26.2

23.6

-9.9%

-13.6%

-34.9

-42.4

-

-

-8.9

-9.4

-

-

855.4

1,054.2

23.2%

16.2%

42.9

39.7

-7.5%

-5.1%

FY2021

FY2022

Packaging & Graphic

439.8

533.0

21.2%

Color & Display

167.2

248.2

Functional Products

283.3

Others, Corporate and eliminations
Total

DIC Report 2023

137

[Local currency basis]

Financial Report for Fiscal Year 2022

Packaging & Graphic
FY2021

FY2022

Change (%)[Local currency basis]

Change (%)

Net sales¥439.8 billion¥533.0 billion

21.2%

14.9%

Operating income¥21.6 billion¥20.3 billion

-6.0%

0.3%

results denominated in other currencies after translation. The inclusion of thesales of Italian adhesives manufacturer Sapici S.p.A., the acquisition of which
was completed in January 2022, also bolstered segment sales.

Segment sales advanced 21.2%, to ¥533.0 billion. Sales of packaging inks,
used primarily on packaging for food products, increased, supported by efforts
in all regions to modify sales prices. Nonetheless, shipments in Asia weredown, as those in the PRC remained listless, hampered by that country’s
relentless zero-COVID measures. In publication inks, which center on inks
for commercial printing and news inks, demand in Japan failed to recover for
use in pamphlets and event-related printed materials, while demand in Europe
fell amid weakening economic conditions, causing shipments in both areas
to slump, although sales rose thanks to assertive sales price adjustments
worldwide. In jet inks, used in digital printing, demand was down for industrial
applications, including outdoor signage (billboards and posters) and banners, aswell as for commercial printing, but sales were up as yen depreciation boosted

Segment operating income fell 6.0%, to ¥20.3 billion, despite edging up 0.3%
on a local currency basis. Continued efforts to counter higher energy, logistics
and raw materials costs globally by modifying sales prices met with successoverseas, mainly in the Americas and Europe, but a decline in shipments
combined with the depreciation of emerging market currencies to push down
results in those markets after translation. Against this backdrop, moves by
Sapici to expand its sales of adhesives in Europe led to steady growth in the,WDOLDQFRPSDQ\¶VSUR¿WVColor & Display
FY2021
Net sales
Operating income

FY2022

Change (%)[Local currency basis]

Change (%)¥167.2 billion¥248.2 billion

48.5%

34.4%

¥4.0 billion¥5.1 billion

29.1%

37.7%

Segment sales climbed 48.5%, to ¥248.2 billion. Owing to the addition of sales
from the Color & Effects pigments business, sales of pigments for coatings,
plastics and cosmetics increased significantly. Demand for pigments forcosmetics rallied in the Americas and Europe, both of which were swift toeliminate COVID-19 mask rules, while signs of recovery were also seen in$VLD,QGLVSOD\PDWHULDOVVDOHVRISLJPHQWVIRUFRORU¿OWHUVIHOOPDUNHGO\DV
production cuts by display manufacturers, together with attendant inventory
adjustments, depressed shipments. In pigments for specialty applications,
VDOHVRISLJPHQWVIRUDJULFXOWXUDOXVHVZHUH¿UPDOWKRXJKVKLSPHQWVRIWKRVH
for building materials, used in autoclaved aerated concrete, remained on a
downtrend in Europe, the principal market for these products.

Segment operating income, at ¥5.1 billion, was up 29.1%. This gain was
due largely to the absence of ¥4.0 billion in one-time expenses recorded in
WKHSUHYLRXV¿VFDO\HDULQDVVRFLDWLRQZLWKWKHLQWHJUDWLRQRIWKH&RORUV 
Effects pigments business. If this factor was discounted, operating income
would have been pushed down by, among others, dwindling shipments of
KLJKYDOXHDGGHGSURGXFWVQRWDEO\SLJPHQWVIRUFRORU¿OWHUVDQGVSHFLDOW\applications, a decline in income in the C&E pigments business attributableto waning economic conditions and mounting energy costs in Europe, anda decrease in shipments of thin-film transistor liquid crystals (TFT LCs)
from the third quarter forward.

Functional Products
FY2021

FY2022

Change (%)[Local currency basis]

Change (%)

Net sales¥283.3 billion¥315.4 billion

11.3%

6.5%

Operating income¥26.2 billion¥23.6 billion-9.9%-13.6%

ÀDJJLQJVKLSPHQWVIRUXVHLQPRELOLW\VROXWLRQVDVDUHVXOWRIVDOHVSULFH
PRGL¿FDWLRQVDQGULVLQJVKLSPHQWVIRUDSSOLFDWLRQVRWKHUWKDQDXWRPRELOHV
including housing equipment.

Segment sales rose 11.3%, to ¥315.4 billion. In digital materials, usedprincipally in electrical and electronics equipment and displays, shipmentsof epoxy resins—the principal application for which is semiconductor
devices—declined dramatically worldwide, hampered by the PRC’s strictzero-COVID measures and slowing growth in the market for electronic
devices, but sales advanced thanks to efforts to modify sales prices.
Sales of industrial-use tapes, used mainly in smartphones and othermobile devices, were also up, bolstered by persistent moves to lock indemand. While demand for industrial materials,* used primarily in mobility
solutions, particularly automobiles, tumbled both in Japan and overseas,
sales price adjustments pushed up sales of core products. Sales of
SRO\SKHQ\OHQHVXO¿GH 336 FRPSRXQGVDOVRH[SDQGHGQRWZLWKVWDQGLQJ

Segment operating income decreased 9.9%, to ¥23.6 billion. This was
despite headway made in adjusting sales prices for numerous products
to pass on increases in energy, logistics and raw materials costs amid
falling shipments, particularly of epoxy resins and other high-value-added
products in the area of digital materials, which came up short.
* DIC uses the term “industrial materials” to describe products for use in mobility solutions,
namely automobiles, railroads and shipping, and for general industrial applications suchas construction equipment and industrial machinery.

DIC Report 2023

138

Financial Report for Fiscal Year 2022

■ Consolidated Financial Statements
Consolidated Balance Sheet

As of December 31, 2021 and 2022

（Millions of yen）

2021

2022

AssetsCurrent assets
Cash and deposits

38,25363,380Notes and accounts receivable—trade237,916

247,520

0HUFKDQGLVHDQG¿QLVKHGJRRGV

132,773

182,572

Work in process

9,651

11,656

Raw materials and supplies

91,199116,522

Other

36,28242,432

Allowance for doubtful accounts(3,959)(4,116)542,114659,967

288,987

330,046

Accumulated depreciation(185,949)(201,304)

Buildings and structures, net

103,039

128,742

Machinery, equipment and vehicles

461,394

497,171(351,875)(378,061)

109,519

119,110

7RROVIXUQLWXUHDQG¿[WXUHV

74,04180,714

Accumulated depreciation(59,111)(63,626)

7RROVIXUQLWXUHDQG¿[WXUHVQHW

14,93017,089Land

64,21966,353

Construction in progress

15,97822,242

Total property, plant and equipment

307,684

353,536

Goodwill

20,182

33,641

Software

4,002

10,277

Customer-related assets

3,107

9,609

Other

25,022

25,238

Total intangible assets

52,31378,764

Investment securities

59,28963,819Deferred tax assets

17,32016,4191HWGH¿QHGEHQH¿WDVVHWV

69,71564,383

Other

23,201

24,849Allowance for doubtful accounts

(156)

(98)

Total investments and other assets

169,370

169,371529,367

601,671

1,071,481

1,261,637

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

Accumulated depreciation
Machinery, equipment and vehicles, net

Intangible assets

Investments and other assets

Total non-current assets
Total assets

DIC Report 2023

139

Financial Report for Fiscal Year 2022

Consolidated Balance Sheet

As of December 31, 2020 and 2021

（Millions of yen）

2021

2022

Liabilities
Current liabilities
Notes and accounts payable—trade145,816

154,964

Short-term loans payable

10,437

26,056−30,000Current portion of bonds payable

20,00030,000Current portion of long-term loans payable

37,13135,928

Lease obligations

1,092

4,607

Income taxes payable

5,640

5,650

Provision for bonuses

6,125

5,555

Other

79,334

97,133

305,575

389,892

Bonds payable

140,000

110,000

Long-term loans payable

171,443

260,259

Lease obligations

4,112

12,479Deferred tax liabilities

10,725

14,443

1HWGH¿QHGEHQH¿WOLDELOLW\

35,98928,742

Asset retirement obligations

7,689

8,449

Other

14,94016,286

Total non-current liabilities

384,897

450,657

Total liabilities

690,473

840,549

Capital stock

96,55796,557

Capital surplus

94,46894,234Retained earnings

214,665

222,796

Treasury shares(1,780)(1,785)403,910

411,802

5,449

5,360

92

694

Foreign currency translation adjustment(55,456)(17,286)

5HPHDVXUHPHQWVRIGH¿QHGEHQH¿WSODQV(8,067)(13,573)

Total accumulated other comprehensive income(57,983)(24,805)

Non-controlling interests

35,081

34,091

Total net assets

381,008

421,088

1,071,481

1,261,637

Commercial papers

Total current liabilities
Non-current liabilities

Net Assets
Shareholders’ equity

Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

Total liabilities and net assets

DIC Report 2023

140

Financial Report for Fiscal Year 2022

Consolidated Statement of Income

Years ended December 31, 2021 and 2022

（Millions of yen）

2021
Net sales
Cost of sales*URVVSUR¿W
Selling, general and administrative expenses
Freightage and packing expenses
Employees’ salaries and allowances
Provision of allowance for doubtful accounts
Provision for bonuses
5HWLUHPHQWEHQH¿WH[SHQVHVResearch and development costs
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Foreign exchange gains(TXLW\LQHDUQLQJVRIDI¿OLDWHV
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Settlement income
Gain on sales of non-current assets
Gain on sales of investment securities
Insurance income
Gain on sales of shares and investments in capital of subsidiaries and DI¿OLDWHV
Total extraordinary income
Extraordinary losses
Severance costs
Loss on disposal of non-current assets
Impairment losses
Loss on withdrawal from business
Acquisition-related expenses
Loss on disaster
Provision for environmental measures
Total extraordinary losses
Income before income taxes and non-controlling interests
Income taxes—current
Income taxes—deferred
Total income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of the parent

Consolidated Statement of Comprehensive Income

2022
855,379
678,061
177,318

1,054,201854,979
199,221

15,87048,950
287
2,431
(552)
13,50353,935
134,425
42,893

16,70161,005769
2,356(2,908)15,144
66,472
159,539
39,682

1,223
401
250
2,943
2,017
6,835

1,968
465
750
2,368
2,223
7,774

2,176
3,794
5,970
43,758

4,512
2,998
7,510
39,946

−
482
−
−
769
1,251

1,077
957
445
340
−
2,819

522
3,139
1,563
−
6,911
463
300
12,897
32,112
13,60912,04125,650
6,462
2,097
4,365

3,514
2,407
1,107
559
−
−
−
7,586
35,17912,4494,081
16,531
18,6491,039
17,610Years ended December 31, 2021 and 2022

（Millions of yen）

2022

2021
Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
5HPHDVXUHPHQWVRIGH¿QHGEHQH¿WSODQVQHWRIWD[
Share of other comprehensive income of associates accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests

DIC Report 2023

141

6,462

18,6492,549(2,376)27,0105,616
1,334
34,13440,596(94)
598
38,266(5,545)358
33,58452,23336,894
3,702

50,7881,445

Financial Report for Fiscal Year 2022

Consolidated Statement of Changes in Net Assets Years ended December 31, 2021 and 2022
Fiscal year ended December 31, 2021

（Millions of yen）

Shareholders’ equity
Capital stock

Capital surplus

96,557

94,468

Balance at January 1, 2021

Retainedearnings

Treasury shares

Total
shareholders’ equity(1,800)409,003219,778

Change in FY2021
Dividends from surplus(9,479)(9,479)4,365

Net income attributable to owners of the parent

4,365

Purchase of treasury shares

(9)

(9)

Disposal of treasury shares29

29

Net changes of items other than shareholders’ equity−−(5,114)20(5,094)96,557

94,468214,665(1,780)403,910

Total change in FY2021
Balance at December 31, 2021

（Millions of yen）

Accumulated other comprehensive income

Balance at January 1, 2021

Valuation difference
on available-for-salesecurities

Deferred gains orlosses on hedges

Foreign currencytranslation
adjustment

Remeasurements
RIGHÀQHG
EHQHÀWSODQV

Total accumulated
other comprehensive
income

2,903

2,468

(82,321)(13,562)(90,511)

Non-controllinginterests

32,873Total
net assets

351,364

Change in FY2021
Dividends from surplus(9,479)4,365

Net income attributable to owners of the parent
Purchase of treasury shares(9)29

Disposal of treasury shares
Net changes of items other than shareholders’ equity

2,546(2,377)

26,865

5,494

32,528

Total change in FY2021

2,546(2,377)

26,865

5,494

32,5282,208

29,643

Balance at December 31, 2021

5,449

92

(55,456)(8,067)(57,983)

35,081

381,008

Fiscal year ended December 31, 2022

2,208

34,736（Millions of yen）

Shareholders’ equity
Capital stock

Capital surplus

96,557

94,468

Balance at January 1, 2022

Retainedearnings

Treasury shares

Total
shareholders' equity(1,780)403,910214,665

Change in FY2022
Dividends from surplus(9,479)Net income attributable to owners of the parent

17,610(9,479)17,610Purchase of treasury shares(6)

Change in ownership interest of parent due totransactions with non-controlling interests

(6)

(234)

(234)

Net changes of items other than shareholders’ equity

−

(234)

8,131

(6)

7,892

96,557

94,234

222,796(1,785)

411,802

Total change in FY2022
Balance at December 31, 2022

（Millions of yen）

Accumulated other comprehensive income

Balance at January 1, 2022

Valuation difference
on available-for-salesecurities

Deferred gains orlosses on hedges

Foreign currencytranslation
adjustment

Remeasurements
RIGHÀQHG
EHQHÀWSODQV

Total accumulated
other comprehensive
income5,449

92(55,456)(8,067)(57,983)

Non-controllinginterests

35,081Total
net assets

381,008

Change in FY2022
Dividends from surplus(9,479)Net income attributable to owners of the parent

17,610)Purchase of treasury shares(6)

Change in ownership interest of parent due totransactions with non-controlling interests
Net changes of items other than shareholders’ equity

(234)
(88)

602

38,170(5,506)33,178(989)

32,188

Total change in FY2022

(88)

602

38,170(5,506)33,178(989)

40,080

Balance at December 31, 2022

5,360

694

(17,286)(13,573)(24,805)

34,091

421,088

DIC Report 2023

142

Financial Report for Fiscal Year 2022

Consolidated Statement of Cash Flows Years ended December 31, 2021 and 2022
（Millions of yen）

2021
Net cash provided by (used in) operating activities
Income before income taxes and non-controlling interests
Depreciation and amortization
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Interest and dividends income(TXLW\LQ HDUQLQJV ORVVHVRIDI¿OLDWHVInterest expenses
Loss (gain) on sales and retirement of non-current assets
Impairment losses/RVV JDLQ RQVDOHVRIVKDUHVDQGLQYHVWPHQWVLQFDSLWDORIVXEVLGLDULHVDQGDI¿OLDWHV
Loss (gain) on sales of investment securities
Decrease (increase) in notes and accounts receivable—trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable—trade
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of shares and investments in capital of subsidiaries resulting in change in scope of consolidation
3URFHHGVIURPVDOHVRIVKDUHVDQGLQYHVWPHQWVLQFDSLWDORIVXEVLGLDULHVDQGDI¿OLDWHV
Purchase of investment securities
Proceeds from sales and redemption of investment securities
Proceeds from sales of businesses
Payments for transfer of business
Other, net
Net cash provided by (used in) investing activities
1HWFDVKSURYLGHGE\ XVHGLQ ÀQDQFLQJDFWLYLWLHVNet increase (decrease) in short-term loans payable
Increase (decrease) in commercial papers
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of bonds
Redemption of bonds
Cash dividends paid
Cash dividends paid to non-controlling interests
Net decrease (increase) in treasury shares
Purchase of shares and investments in capital of subsidiaries not resulting in change in scope of consolidation
Repayment of lease liabilities
Other, net
1HWFDVKSURYLGHGE\ XVHGLQ ¿QDQFLQJDFWLYLWLHV
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the period
Cash and cash equivalents at end of the period

DIC Report 2023

143

2022
32,11237,394656(1,386)632(1,624)(2,943)
2,176
2,657
1,563
(769)
−
(15,963)(34,348)
34,261
2,676
57,093
3,358(1,963)(13,676)
44,81235,17947,126
1,666
(60)
(660)
(2,433)(2,368)
4,512
1,450
1,107
−
(445)
4,318
(55,521)(764)(9,641)
23,465
3,772(4,444)(14,857)
7,935

(402)
3,433
(35,935)909(2,706)(124,095)
11,618
(142)
1,589
95
−
(1,975)(147,612)(2,173)
2,065(40,817)
1,383(4,580)(30,732)
2
(325)
749
−
(16)
1,285
(73,160)(650)−
89,070(36,277)
60,000−(9,479)(1,475)20−(1,223)(438)
99,549(531)(3,782)
41,35437,572

13,71530,000127,913(49,623)−(20,000)(9,479)(681)(6)(1,999)(5,807)(85)
83,9486,265
24,98937,57262,560Third-Party Verification

The DIC Group has received the above third-party verification regarding greenhouse gas emissions, waste generation, number ofaccidents (number of lost work days, etc.) and ratio of female managers.

DIC Report 2023

144

Third-Party Verification

The DIC Group has received the above third-party verification regarding greenhouse gas emissions, waste generation, number ofaccidents (number of lost work days, etc.) and ratio of female managers.

DIC Report 2023

145

Third-Party Verification

The DIC Group has received the above third-party verification regarding greenhouse gas emissions, waste generation, number ofaccidents (number of lost work days, etc.) and ratio of female managers.

DIC Report 2023

146

DIC Report 2023 and the GRI Standards
Statement of Use,QWKLVUHSRUW',&&RUSRUDWLRQSUHVHQWVLQIRUPDWLRQLQDFFRUGDQFHZLWKWKH*5,6WDQGDUGVIRU¿VFDO\HDU -DQXDU\±'HFHPEHU 7KHUHSRUWDOVRFRQWDLQVVRPHLQIRUPDWLRQIURPEHIRUHDQGDIWHU¿VFDO\HDU

GRI 1 used

GRI 1: Foundation 2021

Applicable GRI Sector Standards

The Company complies with applicable sector standards as soon as they are made public.

Standard

DisclosuresPage(s), etc.

General Disclosures
GRI 1:

Foundation 2021

GRI 2:

General Disclosures 2021

1

The Organization and its reporting practices

2-1

Organizational details

17 (The DIC Group: A Global Powerhouse), 151 (Corporate Data)

2-2

Entities included in the organization’s sustainability reporting

2 (About this Report), 6–8 of the Annual Securities Report

2-3

Reporting period, frequency and contact point

2, back cover

2-4

Restatements of information

NA

2-5

External assurance

144–146 (Third-Party Verification)

2

Activities and workers

2-6

Activities, value chain and other business relationships

2-7

Employees

17 (The DIC Group: A Global Powerhouse), 119–121 (Sustainable Procurement)
100 (❸Basic Personnel Statistics (DIC)), 105 (Diversity Across the DIC Group), 151 (Corporate Data)

2-8

Workers who are not employees—

3

Governance

2-9

Governance structure and composition

34 (System for Promoting Sustainability Initiatives), 128–132 (Corporate Governance), 52–57 of theAnnual Securities Report2-10

Nomination and selection of the highest governance body

128 (Corporate Governance System), 134–135 (Directors, Audit & Supervisory Board Members andExecutive Officers), 52–57 of the Annual Securities Report

2-11

Chair of the highest governance body

52 of the Annual Securities Report

2-12Role of the highest governance body in overseeing themanagement of impacts

15 (Overview of Materiality)

2-13

Delegation of responsibility for managing impacts

34 (System for Promoting Sustainability Initiatives)

2-14

Role of the highest governance body in sustainability reporting

—

2-15

Conflicts of interest

63 of the Annual Securities Report

2-16

Communication of critical concerns

123 (Establishing and Operating a Whistle-Blowing System)

2-17

Collective knowledge of the highest governance body73 (Biodiversity), 108 ((2) Initiatives Aimed at Expanding Career Opportunities for Women)

2-18

Evaluation of the performance of the highest governance body

—

2-19

Remuneration policies

131–132 ( ❷ Remuneration for Directors and Audit & Supervisory Board Members), 69–70 of the Annual
Securities Report

2-20

Process to determine remuneration

128 (❸ Remuneration Committee), 131–132 (❷ Remuneration for Directors and Audit & Supervisory
Board Members)

2-21

Annual total compensation ratio—

4

Strategy, policies and practices

2-22Statement on sustainable development strategy

5–10 (A Message from the President)

2-23

Policy commitments

34 (Ensuring DIC Remains a Globally Trusted Corporate Citizen with a Proud Reputation),
123 (Establishing and Operating a Whistle-Blowing System)

2-24

Embedding policy commitments

110 (❷ Respect for Human Rights), 122–123 (Toward Fair and Transparent Corporate Activities),
129–130 (System of Internal Controls)

2-25

Processes to remediate negative impacts

123 (Establishing and Operating a Whistle-Blowing System)

2-26

Mechanisms for seeking advice and raising concerns

123 (Establishing and Operating a Whistle-Blowing System)

2-27

Compliance with laws and regulations

No violations of laws or regulations were reported.

2-28

Membership associations

49 (Participation in Industry Organizations)5

Stakeholder engagement

2-29

Approach to stakeholder engagement

47–51 (Communication with Stakeholders)

2-30

Collective bargaining agreements

112 ((6) Building Trust with the DIC Employees’ Union)

GRI 3:

Material Topics 2021

3-1

Process to determine material topics

3-2

List of material topics

15–16 (Overview of Materiality) (unchanged from fiscal year 2021)

3-3Management of material topics

15–16 (Overview of Materiality), 34 (System for Promoting Sustainability Initiatives) and other related pages

15–16 (Overview of Materiality)

DIC Report 2023

147

Related information/Reasons for omission

Society
GRI 201:

Economic Performance 2016

201-1

Direct economic value generated and distributed

17 of the Annual Securities Report, 30 (A Message from the CFO), 137–143 (Financial Report for Fiscal Year 2022)

201-2

Financial implications and other risks and opportunities
due to climate change

87–92 (Disclosures in Line with the TCFD Recommendations)201-3

Defined benefit plan obligations and other retirement plans

125 of the Annual Securities Report

201-4

Financial assistance received from government

132 of the Annual Securities Report

GRI 202:

Market Presence 2016

202-1

Ratios of standard entry level wage by gender compared to local —minimum wage

202-2

Proportion of senior management hired from the local community

GRI 203:

Indirect Economic Impacts 2016

203-1

Infrastructure investments and services supported—

44–46 (Harmony with the Community and Social Contributions)203-2

Significant indirect economic impacts—

44–46 (Harmony with the Community and Social Contributions)

GRI 204:

Procurement Practices 2016

204-1

Proportion of spending on local suppliers

GRI 205:

Anti-corruption 2016

205-1

Operations assessed for risks related to corruption—

122–123 (Compliance)

205-2

Communication and training about anti-corruption policies and procedures

122–123 (Compliance)

119–121 (Sustainable Procurement)

205-3

Confirmed incidents of corruption and actions taken

There were no confirmed incidents of corruption during the period.

122–123 (Compliance)

GRI 206:

Anti-competitive Behavior 2016

206-1

Legal actions for anti-competitive behavior, anti-trust, andmonopoly practices

There were no reportable legal actions in the period under review.

122–123 (Compliance)

GRI 207:

Tax 2019

207-1

Approach to tax

The DIC Group’s Approach to Tax
https://www.dic-global.com/en/csr/philosophy/tax.html

207-2

Tax governance, control, and risk management

The DIC Group’s Approach to Tax
https://www.dic-global.com/en/csr/philosophy/tax.html

207-3

Stakeholder engagement and management of concerns The DIC Group’s Approach to Tax
related to tax
https://www.dic-global.com/en/csr/philosophy/tax.html

207-4

Country-by-country reporting

—

—

—

Environment
GRI 301:

Materials 2016

301-1

Materials used by weight or volume

—

301-2

Recycled input materials used

—

301-3

Reclaimed products and their packaging materials—

GRI 302:

Energy 2016

302-1

Energy consumption within the organization

63–64 (Groupwide Environmental Performance)

302-2

Energy consumption outside of the organization

—

302-3

Energy intensity

29 (Global Energy Consumption and Energy Consumption per Unit of Production (DIC Group)), 95 (Key Data)

302-4

Reduction of energy consumption

29 (Global Energy Consumption and Energy Consumption per Unit of Production (DIC Group)), 95 (Key Data)

302-5

Reductions in energy requirements of products and services

NA

GRI 303::DWHUDQG(IÁXHQWV

41 (Responding to a Circular Economy)

303-1

Interactions with water as a shared resource

71–72 (Managing Water Resources)

303-2

Management of water discharge–related impacts

72 (Managing Water Resources)

303-3

Water withdrawal

84–85 (Key Data)

303-4

Water discharge

85 (Key Data)

303-5

Water consumption

85 (Key Data)

GRI 304:

Biodiversity 2016

304-1

Operational sites owned, leased, managed in, or adjacentto, protected areas and areas of high biodiversity value
outside protected areas

304-2

6LJQLÀFDQWLPSDFWVRIDFWLYLWLHVSURGXFWVDQGVHUYLFHV —on biodiversity

73 (Biodiversity)

304-3

Habitats protected or restored—

73 (Biodiversity)

304-4

IUCN Red List species and national conservation list —species with habitats in areas affected by operations

73 (Biodiversity)

GRI 305:

Emissions 2016

305-1

Direct (Scope 1) GHG emissions

95 (Key Data)

305-2

Energy indirect (Scope 2) GHG emissions

95 (Key Data)

305-3

Other indirect (Scope 3) GHG emissions

93 ((2) Grasping CO2 Emissions Across the DIC Group's Supply Chains (Scope 3))

305-4

GHG emissions intensity

95 (Key Data)—

DIC Report 2023

148

305-5

Reduction of GHG emissions

86 (Climate Change), 92–93

305-6

Emissions of ozone-depleting substances (ODS)

94 (Protecting the Ozone Layer)

305-7

Nitrogen oxides (NOx), sulfur oxides (SOx),
DQGRWKHUVLJQLÀFDQWDLUHPLVVLRQV

66 (Reducing SOx, NOx and COD), 83 (Key Data)

GRI 306:

Waste 2020

306-1

Waste generation and significant waste-related impacts

306-2

0DQDJHPHQWRIVLJQLÀFDQWZDVWHUHODWHGLPSDFWV

—

306-3

Waste generated

69–70 (Industrial Waste Generated and Disposed of by the Global DIC Group in Fiscal Year 2022), 84 (Key Data)

306-4

Waste diverted from disposal

70 (Industrial Waste Generated and Disposed of by the Global DIC Group in Fiscal Year 2022), 84 (Key Data)

306-5

Waste directed to disposal

70 (Industrial Waste Generated and Disposed of by the Global DIC Group in Fiscal Year 2022), 84 (Key Data)

GRI 308:

Supplier Environmental Assessment 2016308-1

New suppliers that were screened using environmental criteria

308-2

Negative environmental impacts in the supply chain and actions taken 120–121 (Global Sustainable Procurement Efforts)—

121 (Advance Assessments of New Raw Materials)

Society
GRI 401:

Employment 2016

401-1

New employee hires and employee turnover

401-2

Benefits provided to full-time employees that are not 113 ((6) Programs that Help Employees Balance the Demands of Work and Home)
provided to temporary or part-time employees

401-3

Parental leave

GRI 402:

Labor/Management Relations 2016

402-1

Minimum notice periods regarding operational changes

GRI 403:

Occupational Health and Safety 2018

100 (Basic Personnel Statistics (DIC))
98–118 (Human Resources Management)

114 ((7) Use of the Childcare Leave and Leave to Assist with Parenting Programs), 98–118 (Human Resources Management)

—

403-1

Occupational health and safety management system

52–54 (ESH), 56 (Occupational Safety and Health)403-2+D]DUGLGHQWLÀFDWLRQULVNDVVHVVPHQWDQGLQFLGHQWLQYHVWLJDWLRQ

57–58 (Principal Initiatives in Fiscal Year 2022), 62 (Disaster Prevention)

403-3

Occupational health services

115–118 (❸ Corporate Health Management)

403-4

Worker participation, consultation, and communication on 56–61 (Occupational Safety and Health)occupational health and safety

403-5

Worker training on occupational health and safety

56–61 (Occupational Safety and Health), 62 (Disaster Prevention)

403-6

Promotion of worker health

115–118 (❸ Corporate Health Management)

403-7

Prevention and mitigation of occupational health and —safety impacts directly linked by business relationships

403-8

Workers covered by an occupational health and safety management system —403-9

Worker-related injuries

56 (Occupational Safety and Health), 83 (Key Data)403-10Work-related ill health—

GRI 404:

Training and Education 2016

404-1

Average hours of training per year per employee

—

404-2

Programs for upgrading employee skills and transition assistance programs

100–101 (Human Resources Management), 109 ((4).Reemployment after Retirement and Support for Retirement Planning)

404-3

Percentage of employees receiving regular performance 102–103 (3. Framework Creation: Personnel System, Global Human Resources System and Work Style Reform)and career development reviews

GRI 405:

Diversity and Equal Opportunity 2016405-1

Diversity of governance bodies and employees

100 (❸ Basic Personnel Statistics), 104-105 of Executives,
58–62 of the Annual Securities Report405-2

Ratio of basic salary and remuneration of women to men

NA

GRI 406:

Non-discrimination 2016406-1

Incidents of discrimination and corrective actions taken

GRI 407:

Freedom of Association and Collective Bargaining 2016

407-1

Operations and suppliers in which the right to freedom of
association and collective bargaining may be at risk

GRI 408:

Child Labor 2016

408-1

Operations and suppliers at significant risk for incidents of child labor

GRI 409:

Forced or Compulsory Labor 2016409-1

Operations and suppliers at significant risk for incidents offorced or compulsory labor

GRI 410:

Security Practices 2016

410-1

Security personnel trained in human rights policies or procedures

GRI 411:

Rights of Indigenous Peoples 2016

411-1

Incidents of violations involving rights of indigenous peoples

GRI 413:

Local Communities 2016413-1

Operations with local community engagement, impact
assessments, and development programs

—

413-2

Operations with significant actual and potential negative
impacts on local communities—

98–103 (Human Resources Management)—

122–123 (Compliance (Establishing and Operating a WhistleBlowing System))—

112 ((6) Building Trust with the DIC Employees’ Union)

No suppliers were found to be at risk.

120–121 (Sustainable Procurement)

No suppliers were found to be at risk.

120–121 (Sustainable Procurement)—NA

47–51 (Communication with Stakeholders)

DIC Report 2023

149

GRI 414:

Supplier Social Assessment 2016414-1

New suppliers that were screened using social criteria

—

414-2

Negative social impacts in the supply chain and actions taken

119–121 (Sustainable Procurement)

119–121 (Sustainable Procurement)

GRI 415:

Public Policy 2016

415-1

Political contributions

GRI 416:

Customer Health and Safety 2016

416-1

Assessment of the health and safety impacts of productand service categories

96–97 (Quality)

416-2

Incidents of non-compliance concerning the health andsafety impacts of products and services

NA

GRI 417:

Marketing and Labeling 2016

49 (Monetary Contributions)

417-1

Requirements for product and service information and labeling

75 (Safety in Logistics), 77–78 (Ensuring the Safety of Chemical Substances), 80 (Safe Product Transport)

417-2

Incidents of non-compliance concerning product andservice information and labelingNA

79 (Complying with Laws and Regulations)

417-3

Incidents of non-compliance concerning marketing
communications

NA

48 (Digital Marketing)

GRI 418:

Customer Privacy 2016

418-1

Substantial complaints concerning breaches of customer
privacy and losses of customer dataNA

127 (Information Security)

DIC Report 2023

150

Corporate Data
About the Company
Registered name:

DIC Corporation

Corporate headquarters:

DIC Building, 7-20, Nihonbashi 3-chome, Chuo-ku,
Tokyo 103-8233, Japan

Date of foundation:

February 15, 1908

Date of incorporation:

March 15, 1937

Paid-in capital:¥96.6 billion

Number of employees:

22,743 (Nonconsolidated: 3,744) (As of December 31, 2022)

1XPEHURIVXEVLGLDULHVDQGDI¿OLDWHV

190 (Domestic: 30, overseas: 160) (As of December 31, 2022)

Composition of Labor Force

Number of Employees

Segment

Number of employees

Packaging & Graphic

10,688

Color & Display

4,630

Functional Products

5,485

Others546

Corporate

1,394

Total

20,51322,47422,743 Number of people

5,852

5,869

20,242

5,929

5,914

8,457

8,308

6,127

2019

Japan
Europe and the Americas
Asia and Oceania

10,684

10,697

6,020

5,938

6,177

2020

2021

2022

22,743

The 2030 Agenda for Sustainable Development
At the UN Sustainable Development Summit in September
2015, a proposal titled “Transforming our world: the 2030
Agenda for Sustainable Development,” later summarized as
the Sustainable Development Goals (SDGs), was adopted
with the participation of more than 150 UN member states.
The agenda, which succeeded the Millennium Development
Goals (MDGs), encompasses 17 goals and 169 targets. All
UN member states are expected to mobilize efforts to attainthe 17 goals, essential to sustainable development for theplanet, by 2030. The DIC Group pledges to contribute
through its business activities to the success of the SDGs.

For more information on the SDGs, please visit:https://www.un.org/sustainabledevelopment/development-agenda/

DIC Report 2023

151

（Contact）

Corporate Communications Dept.
Sustainability Dept.
DIC Building, 7-20, Nihonbashi 3-chome, Chuo-ku, Tokyo 103-8233, Japan
Tel: +81-3 - 6733 - 3034

Fax: +81-3 - 6733 - 3038

https://www.dic-global.com/en/