DIC REPORT 2016

Complete Version

Innovation throughCompounding

DIC brings innovation tosociety through its corecompounding technologies
Building on fundamental pigment and resin dispersion
and compounding technologies realized throughthe production of printing inks, DIC has succeededin combining materials with different properties andperformance characteristics to develop groundbreaking
products and create new value. DIC’s mainstay productgroups, which include printing inks, polyphenylene
sulfide (PPS) compounds and liquid crystal (LC)materials, are the result of innovations made possible
by its compounding technologies.

Making it
Colorful

DIC helps make life colorful
Established in 1908 as a manufacturerof printing inks, DIC has built on its coreorganic pigments and synthetic resins
technologies to develop an extensive
range of materials and products andtransform itself into a global powerhouse.
Today, DIC provides not only printing inksand colorants but also a variety of otherproducts and services that deliver “color”
and “comfor t,” enriching and adding
vibrancy to people’s lives. The global DIC
Group employs a broad spectrum of highly
skilled individuals who are committed toworking together while at the same time
respecting diversity to create an evermore-vivid tapestry of value.

Specialty
Solutions
DIC Report 2016

1

Going forward, the DIC Group will accelerate innovation
on a global scale by capitalizing on its ability tocompound dissimilar materials and create new value
to transform its prowess in wide-ranging technological
GRPDLQVLQWRVLJQL¿FDQWFRPSHWLWLYHDGYDQWDJHVDIC draws on its expertise andcomprehensive strengths tooffer solutions
DIC strives to respond swiftly and flexibly tothe needs of its customers and markets and,as a specialist in providing solutions that
help resolve challenges, to provide value thatexceeds expectations.
DIC defines itself as a team of specialists
with proficiency in such diverse fields as
printing inks, fine chemicals, polymers,
compounds and application materials. The
DIC Group will continue to leverage its
competitive advantages, notably its specialized
technologies and know-how, to offer specialty
solutions that ensure it remains the partner ofchoice for its customers.

Connecting the DIC Group and its Stakeholders

DIC Group Communications Tools
The DIC Group uses a variety of tools to promote communication
with its many stakeholders to encourage greater awareness of theGroup’s activities. More detailed sustainability-related informationand data can be found on the DIC website.

3ULQWHG3')î)RUP3XEOLFDWLRQV

Reports on activities
DIC Report

DIC Report(summary version)(complete version)

Annual Report

Contents
The DIC Group: A Global Powerhouse

3

A Message from the President

5

The DIC WAY, The DIC Group’s Sustainability Program, Branding

7

New Medium-Term Management Plan: DIC108

11

Messages from Top Executives at Regional Headquarters

13

The DIC Group’s Business Portfolio

16

Special Feature

Product Development for a Sustainable Society
Report on sustainability
initiatives and corporate
SUR¿OH SXEOLVKHGDQQXDOO\

Report on sustainability
initiatives and corporate
SUR¿OH SXEOLVKHGDQQXDOO\(Printed report)(PDF-form report)

Repor t on operations
DQG¿QDQFLDOFRQGLWLRQ(PDF-form report)

Topic

DIC Website

Real-time information
DIC Global Website
WEB

http://www.dic-global.com/en/csr/

U m b r e l l a w e b s i t e p r ov i d i n g
information to the global public
about the DIC Group and reports
on its various activities; updated asnecessary

Aquacure Inkjet Inks Technology Delivers the Positive Print Characteristics of a Water-Based Ink 31

Corporate Governance32

Overview of Materiality Analysis

33

Sustainability Report

About this Report
The DIC Group publishes a combined corporate profile andsustainability report with the aim of presenting a clear, easy-tounderstand picture of the Group and its sustainability initiatives. For',&5HSRUWWKH*URXSSXEOLVKHGDVLPSOL¿HGVXPPDU\YHUVLRQ(printed), which focuses on key highlights, and a more detailed
complete version (PDF), which contains extensive quantitative data.
http://www.dic-global.com/en/csr/annual/

1RWH7KHGHVLJQDWLRQ³$VLD±3DFL¿FUHJLRQ´DVXVHGLQWKLVUHSRUWUHIHUVWR$VLD²
H[FOXGLQJ-DSDQDQG*UHDWHU&KLQD²DQG2FHDQLD

Links with the DIC Website
The ( WEB ) mark indicates that more detailed information and/or
data can be found on the indicated page of the DIC website.
DIC website

WEB

http://www.dic-global.com/en/

Scope of Reporting
In principle, this report provides information on DIC Corporation andconsolidated DIC Group companies in Japan and overseas. For informationon the scope of reporting for ESH-related initiatives, please visit the pertinent
page of the DIC website.
WEB

Compliance
Risk Management
Information Security

34

Environment, Safety and Health (ESH)
Quality
Human Resources Management
Sustainable Procurement

40

Business Models that Respond to Social Imperatives
New Technology Development and Value Creation
Harmony with the Community and Social Contributions
Communication with Stakeholders

DIC Report (Complete version) (PDF-form report)
WEB

22,QNMHW,QNVIRU,QGXVWULDODQG2I¿FH3ULQWHUVSEPAREL® Hollow-Fiber Membranes and Membrane Modules
Pigments for Cosmetics',&5HSRUWDQG,62$&RPSDULVRQ

36
39

75
77
85
88
91
95
98
102

DIC Report 2016 and the G4 Sustainability Reporting Guidelines: A Comparison 103
7KLUG3DUW\9HUL¿FDWLRQ1067KLUG3DUW\2SLQLRQ5HJDUGLQJ',&5HSRUW

107

DIC Group Milestones

108

Corporate Data110

http://www.dic-global.com/en/csr/pdf/dic_report_scope_en_2016.pdf

Reporting Period
Fiscal year 2015 (January 1–December 31, 2015)

Cover Design

Date of Publication
June 2016 (The next report is scheduled for publication in June 2017.)

The cover of this year’s DIC Report is a paper craft artwork that
communicates the appeal of the DIC Group’s “Color & Comfort”
EUDQGVORJDQDQGHYRNHVLQLWLDWLYHVEHLQJXQGHUWDNHQWREHQH¿W
the global environment, ecosystems and social systems, aswell as to ensure sustainable growth for the Group.

Guidelines Referenced*XLGHOLQHV UHIHUHQFHG LQ WKH SUHSDUDWLRQ RI WKLV UHSRUW ZHUH ,62  WKH,QWHUQDWLRQDO2UJDQL]DWLRQIRU6WDQGDUGL]DWLRQ¶VVWDQGDUGIRUVRFLDOUHVSRQVLELOLW\released in 2010; Japan’s Responsible Care Code; and the Global Reporting Initiative’s
G4 Sustainability Reporting Guidelines.

DIC Report 20162

The DIC Group: A Global Powerhouse
Net Sales

Corporate Data

1,000
800

Registered name:

0

820.0

830.1

703.8

734.3

705.6

’13 ’14 ’15（FY）

Operating Income (Billions of yen)
50

)

40

20

51.1

30
Notes: 1.The consolidated results for fiscal year 2013
comprise the accounts for the nine months ended
December 31, 2013, of DIC and its domestic
subsidiaries but one and the 12 months ended
December 31, 2013, of its overseas subsidiaries
and one domestic subsidiary.
2.Corporate data is as of December 31, 2015. Net
sales and operating income are for fiscal year 2015.

Global Network’11 ’1241.1(

174 Domestic: 31
Overseas: 143

200

40.2

Number of subsidiaries
and affiliates:

400

38.5

Date of foundation:
Date of incorporation:
Paid-in capital:
Number of employees:

600

DIC Building, 7-20,
Nihonbashi 3-chome,
Chuo-ku, Tokyo 103-8233,
Japan
February 15, 1908
March 15, 1937
¥96.6 billion
20,264(Nonconsolidated: 3,581)

35.0

Corporate headquarters:(Billions of yen)

10
0

’11 ’12 ’13’14 ’15（FY）

DIC has 174 companies in 64 countries and territories around the world.

Asia and Oceania

China

32

South &Southeast
Asia（including the ROK）

21

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

Net sales¥158.5 billion

Japan

Operating income

31¥13.9 billion

Japan

Oceania

DIC Corporation, DIC Graphics
Corporation and others

2

Net sales¥314.3 billion
Operating income¥24.5 billion

Central andSouth America
Sun Chemical Group and others

Net sales¥153.6 billion

Europe53

Operating income¥7.6 billion

Central & SouthAmerica

North America

14

Europe and Africa

16

Sun Chemical Group and others

Net sales¥193.7 billion
Operating income¥10.1 billion

DIC Report 20163

Africa5

The DIC Group:
A Global Powerhouse

Breakdown of Net Sales by Region

Breakdown of Operating Income by Region

Asia and Oceania

Asia and Oceania

19.3%

24.8%

North, Central andSouth America￥820.018.7%

billionJapan

North, Central andSouth America

38.3%

13.5%

￥51.1
billionEurope and Africa

Europe and Africa

23.6%

18.0%

Japan

43.7%

Note: Operating income as used here includes eliminations (approximately ¥4.9 billion). Accordingly, these percentages do not represent shares of reported operating income.

Printing Inks

Business Segments

Fine Chemicals

Polymers

Application Materials

The DIC Group has leveraged its organic pigments and synthetic resins, essential to the manufacture of printing inks,
to build an extensive business portfolio.

Printing Inks ▶ Page 17 Fine Chemicals ▶ Page 18
Net sales…………

Compounds

Polymers ▶ Page 19

Compounds ▶ Page 20 Application Materials ▶ Page 21¥412.6 billion Net sales………… ¥135.5 billion Net sales………… ¥194.6 billion Net sales…………… ¥63.6 billion Net sales…………… ¥57.5 billion¥19.0 billion Operating income… ¥13.1 billion Operating income… ¥16.0 billion Operating income…… ¥5.7 billion Operating income…… ¥2.1 billion

Operating income…

Application
Materials

Printing Inks

6.7%

47.8%

Breakdown of Compounds
Net Sales by 7.4%
Segment￥820.0billionPolymers

Fine Chemicals

15.7%

Application
Materials

3.8%

Breakdown ofCompounds
Operating Income 10.2%
by Segment
Polymers

28.6%

22.5%

Printing Inks

34.0%

￥51.1
billionFine Chemicals

23.4%

Notes:
1. Net sales and operating income as used here include intersegment transactions. For this reason, and because of the existence of transactions
that are not attributable to reportable segments, these figures differ from reported net sales and operating income figures.
2. Effective from January 1, 2016, DIC revised its segmentation. Figures for fiscal year 2015 have been restated to reflect the revised segmentation.

Principal Global
R&D Sites
Cincinnati(United States)

Polymer
Technical Center—
China
Printing Inks
Technical Center—
China

St. Mary Cray
Technical Centre(United Kingdom)

Qingdao DIC
Finechemicals(PRC)

Carlstadt(United States)
Eurolab(Germany)

Central ResearchLaboratories(Japan)Polymer
Technical Center—
Asia Pacific(Thailand)

Printing Inks
Technical Center—
Asia Pacific(Thailand)

DIC Report 2016

4

A Message from the President',&: Our New Medium-Term Management Plan Gets Under Way*XLGHGE\RXUQHZEUDQGVORJDQ³&RORU &RPIRUW´ZHZLOOFRQWLQXHZRUNLQJWRDFKLHYHVXVWDLQDEOHJURZWK

Representative Director,
President and CEO
DIC Corporation

Ź The DIC Group Today

Yoshiyuki Nakanishi

The DIC Group is a multinational organization comprising
174 companies in 64 countries and territories around theworld. Across our global operations, we continue to promote
development and innovation in a manner that contributes tosustainable growth for both our customers and society.
Today, the DIC Group operates in an environment
characterized by rapid, all- encompassing change.
Realignment in the chemicals sector is progressing at a
EHZLOGHULQJUDWH$JDLQVWWKLVEDFNGURSLQ¿VFDO\HDU
RXUFRQVROLGDWHGQHWVDOHVHGJHGGRZQWRELOOLRQZKLOHRSHUDWLQJLQFRPHURVHWRELOOLRQ
Under our previous medium-term management plan,',& ZH PDGH SURJUHVV LQ LPSOHPHQWLQJ VWUDWHJLHV
aimed at establishing a foundation for sustainable growth,
namely, in restructuring our printing inks businesses inNorth America and Europe and ensuring a more balanced¿QDQFLDOSRVLWLRQ+RZHYHULQWHUPVRIRXUVWUDWHJ\WRFUHDWH
next-generation businesses, challenges remain.

Ź DIC108,Q¿VFDO\HDUZHNLFNHGRII',&RXUQHZPHGLXP
term management plan. The vision for our future described
LQ',&LVDQH[WHQVLRQRIWKDWRXWOLQHGLQ',&DVDUH
our overarching goals. We have positioned the new plan as
the first phase of a growth scenario taking us up to fiscal\HDUDQGZLOOFRQWLQXHWRSUHVVIRUZDUGZLWKHIIRUWVDLPHGDWIXO¿OOLQJRXUPLVVLRQ³7KURXJKFRQVWDQWLQQRYDWLRQ
the DIC Group strives to create enhanced value and tocontribute to sustainable development for its customers andsociety.”

DIC Report 2016

5

A Message fromthe President

packaging, healthcare and low carbonization, throughwhich we will endeavor to contribute to, among others,
environmental protection, safety and security, and therealization of a smart society.

',& RXWOLQHV D PHGLXP WR ORQJWHUP URDG PDS WKDW
pays heed to global megatrends while organizing what
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QH[WPLOHVWRQHLQRXUHYROXWLRQ²LQWREDVLFVWUDWHJLHVIRU
business (comprising four business initiatives), cash flow
management and the establishment of a solid management
infrastructure. Guided by these strategies, the employees
and executives of the DIC Group pledge to work with the
DLPRIHQVXULQJWKDWZHDFKLHYHRXUWDUJHWVIRU¿VFDO\HDU2ISDUWLFXODUQRWHZHZLOOZRUNWRH[SDQGEXVLQHVVHVWKDWZLOOGULYHJURZWKLQFOXGLQJWKLQILOPWUDQVLVWRU 7)7 /&V DQG KLJKSHUIRUPDQFH PDWHULDOV VXFK DV IXQFWLRQDO
pigments. We will also actively pursue opportunities for
VWUDWHJLFLQYHVWPHQWV PHUJHUVDQGDFTXLVLWLRQV 0 $V etc.), to further strengthen our capabilities in areas in which
we have particular expertise. In addition, we will work tocreate next-generation businesses by promoting open
innovation, enabling us to make effective use of outside
UHVRXUFHVZKLFKZLOOIXUWKHULQFUHDVHUHVHDUFKHI¿FLHQF\Ź The Future of the DIC Group$V D ILUVW VWHS LQ IRUPXODWLQJ ',& ZH UHYLVLWHG RXUPDQDJHPHQWFRQFHSW³7KH',&:$<´ZKLFKLQFOXGHVRXU
mission and vision, and pondered the question of who weare and what role we are expected to play going forward.
This process led us to articulate three key corporate values:³0DNLQJ LW &RORUIXO´ ³,QQRYDWLRQ WKURXJK &RPSRXQGLQJ´
DQG³6SHFLDOW\6ROXWLRQV´ )RUPRUHLQIRUPDWLRQSOHDVH
VHHSDJH +DYLQJFKRVHQDQHZEUDQGVORJDQ³&RORU 
Comfort,” we pledge to work as one to promote sustainablegrowth. In these and all our efforts, we look forward to theongoing support and guidance of our stakeholders.

Ź Ensuring Sustainable Growth
As part of our commitment to realizing sustainable growth,
we classify our sustainability initiatives into four regionalgroupings: Japan, Greater China, the Asia–Pacific region
and the Sun Chemical Group. In recent years, awarenessof social imperatives pertaining to environment, society
and governance (ESG)-related issues has grown. This isevidenced by developments such as the Paris Agreement,
DGRSWHG LQ 'HFHPEHU  DQG -DSDQ¶V &RUSRUDWH
*RYHUQDQFH&RGHZKLFKHQWHUHGLQWRIRUFHLQ-XQHWR
which we, as a major corporation, are working to respond.
As an organization with global operations, we also recognize
the importance of welcoming diversity, ensuring safety andpromoting effective supply chain management to create asolid foundation for sustainable growth.
+DYLQJGHFODUHG',&*URXSVXVWDLQDELOLW\WKHPHVDQG
formulated theme-specific approaches, we are currently
promoting a variety of related initiatives aimed at creatingnext-generation businesses in such areas as electronics,$ERYH &HUHPRQ\WRFHOHEUDWHWKHWKDQQLYHUVDU\RIVXEVLGLDU\/LG\H&KHPLFDO&R/WG
LQ7DLZDQ $SULO
%HORZ 7RSPDQDJHPHQW(6+DXGLWDWWKH7RN\R3ODQW 6HSWHPEHU

DIC Report 2016

6

The DIC Way
The DIC WAY was formulated to represent the DIC Group’s fundamental management philosophy. As a first stepin formulating DIC108, DIC revised The DIC WAY to better reflect social imperatives, to create a simple, clear
message, in line with which the Group will continue to promote efforts aimed at enhancing corporate value andachieving sustainable growth.

The DIC WAY
MissionThrough constant innovation, the DIC Group strives
to create enhanced value and to contribute tosustainable development for its customers and society.

MissionVisionVisionSpiritSpiritColor & Comfort by Chemistry

Drive, Integrity, Dedication, Collaboration, Harmony

The DIC WAY, which represents the fundamental management philosophyof the DIC Group, comprises three elements: Mission, Vision and Spirit.
Mission:Our Mission defines what the DIC Group ultimately aspires to be.
Enhanced values we strive to create are “dignity and trust,” “customer satisfaction” and“harmony with society.”

Vision:Our Vision defines the broad direction in which the DIC Group’s business must advance toachieve our Mission.
This is set based on our history, corporate culture and the competency instilled into DIC
Group employees.

Spirit:Our Spirit sets out the specific principles of conduct that DIC Group employees should always
honor and which should serve as their guideposts in order to achieve our Mission, including
encouraging our employees to think and judge matters on their own before taking action.
In addition to our three founding precepts of “Drive,” “Integrity” and “Dedication,” in light ofthe demands of the times we have added “Collaboration” and “Harmony.”

DIC Report 2016

7

The DIC Group’s Sustainability Program
In recent years, the need to achieve sustainability in a manner that takes into account, among others, the environment,
ecosystems and socioeconomic issues, including global warming and the depletion of natural resources, has gained
increased recognition worldwide. Today, the DIC Group promotes a variety of sustainability initiatives worldwide and works tomaintain an accurate grasp of social imperatives pertaining to ESG-related issues.
The DIC Group launched its corporate social responsibility (CSR) program in fiscal year 2007, identifying multiple key
themes as a framework for its efforts. Having further clarified the overall direction of its sustainability-related initiatives,effective from fiscal year 2014 the Group changed the designation used across its program from “CSR” to “sustainability,”
which it feels is more appropriate for a globally active corporate entity. Corporations today are expected to operate in amanner that shows concern for the global environment and conforms with global business rules.

Basic Sustainability Policy
The DIC Group is dedicated to conducting its business while retaining a strong commitment to five key concepts: preserving
safety and health, ensuring fair business practices and respect for human rights, maintaining harmony with the environment
and advancing its protection, managing risks, and creating value for society through innovation.
DIC Group employees will continue working to deliver the value that its stakeholders—including its customers, suppliers,
local communities, shareholders and investors, and employees—expect, showing ingenuity and a sense of responsibility. The
Group itself will strive to remain an organization that contributes to sustainability for society and the global environment bycapitalizing on its businesses to achieve unfaltering growth, thereby enhancing its own sustainability.

Sustainability Framework and Themes
To foster concrete CSR measures, in fiscal year 2007 the DIC Group examined social imperatives, the activities of othercompanies and key relevant materials, including the results of a survey conducted by the Keizai Doyukai (Japan Associationof Corporate Executives). Based on its findings, and to ensure the compatibility of such measures with its operations,
corporate organization and functions, the Group identified 12 key themes as a framework for implementing its CSR program.
Subsequently, the Group partially revised these themes in response to changes in the external environment and the progressof its efforts. Today, the Group’s sustainability framework comprises 11 themes.
+DYLQJUHRUJDQL]HGLWVTXDOLW\DVVXUDQFHIUDPHZRUNWRIXUWKHUUHLQIRUFHFDSDELOLWLHVHIIHFWLYHIURP¿VFDO\HDUWKH*URXS
separated “quality,” formerly part of “Environment, safety, health and quality,” out as an independent theme and is promoting avariety of tailored initiatives. The Group has introduced a system whereby these are categorized as basic themes, themes that
GHPRQVWUDWHXQLTXHFDSDELOLWLHVDQGWKHPHVWKDWFRPELQHHOHPHQWVRIWKHSUHYLRXVWZRFODVVL¿FDWLRQVDQGFODUL¿HGWKHSRVLWLRQLQJWKHUHRI(DFK¿VFDO\HDUWKH*URXSIRUPXODWHVWDUJHWVDQGDFWLYLW\SODQVIRUHDFKRIWKHVHWKHPHVBusiness models that respond to social imperatives
New technology development and value creation
Harmony with the community and social contributions
Communication with stakeholders
Environment, safety and health
Quality
Human resources management
Sustainable procurement

Themes that demonstrateunique capabilities (A)Core and category-specific themes
Themes that combine
elements of (A) and (B)()

Compliance
Risk management
Information security

Basic
themes (B)Expanding the Scope of Sustainability Initiatives
To guide its efforts to promote sustainability as an integral part of its business activities, the DIC Group formulates themespecific medium-term targets in line with its basic sustainability policy and creates annual Group activity plans. The Marketing
Division, the Technical Administrative Division and individual product divisions, sites and overseas and domestic DIC Group
companies are then charged with pursuing effective sustainability programs by formulating their own annual activity plans,
ensuring that the Group’s basic sustainability policy and targets permeate their organizations and labor forces and linking
sustainability activities to business targets.

DIC Report 2016

8

The DIC Group’s Sustainability Program

System for Promoting Sustainability

Members of the Sustainability Committee

The DIC Group’s system for promoting sustainability
centers on the Sustainability Committee, which answers
directly to the president and CEO and is tasked with
reporting on the status of sustainability themes, as wellas with proposing policies and programs for advancing
sustainability and deliberating on related matters as avital component of corporate management.

([HFXWLYHRI¿FHULQFKDUJHRIWKH)LQDQFHDQG$FFRXQWLQJ'LYLVLRQ([HFXWLYHRI¿FHULQ
FKDUJHRIWKH&RUSRUDWH6WUDWHJ\'LYLVLRQ([HFXWLYHRI¿FHULQFKDUJHRIWKH*HQHUDO
Affairs and Legal Division, General Managers of product segments, General Manager of
the Production Administrative Division, General Manager of the Technical Administrative
Division, Executive officer in charge of the Purchasing and Logistics & Information
Systems Division, CEOs of regional headquarters, Corporate auditorsżFormulates Groupwide targets and activity plans
ĺ Submits to the Board of DirectorsżEvaluates sustainability initiatives

Board of Directors

Sustainability Committee

President and CEO

Corporate Communications
DepartmentżPromotes sustainability(coordinates and supports initiatives)
ż$GYDQFHVDZDUHQHVVRIVXVWDLQDELOLW\żServes as secretariat for the Sustainability Committee$VRI-DQXDU\

Sales administrative divisions, product divisions,
Production Administrative Division, Technical Administrative Division,
Corporate R&D Division, headquarters’ administrative divisions, offices,
domestic and overseas DIC Group companies

Sustainability themes

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FRPPXQLW\LQDPRUHSURDFWLYHPDQQHULQ'HFHPEHU
WKH',&*URXSSOHGJHGLWVVXSSRUWIRUWKHSULQFLSOHVSXWIRUWKE\WKH8QLWHG1DWLRQV 81 DQGEHFDPHDVLJQDWRU\WRWKH
8QLWHG1DWLRQV*OREDO&RPSDFW 81*& ,QDXJXUDWHGLQWKH81*&LVDYROXQWDU\LQLWLDWLYHIRUFRPSDQLHVWKDWVHHNWRDFKLHYHVXVWDLQDEOHGHYHORSPHQWZRUOGZLGH
0RUHWKDQFRPSDQLHVDQGRUJDQL]DWLRQVKDYHSOHGJHGWKHLUVXSSRUWIRUWKH81*&LQWKHEHOLHIWKDWJOREDOVXVWDLQDEOH
GHYHORSPHQWLVSRVVLEOHLIFRPSDQLHVDOLJQWKHLUEXVLQHVVSUDFWLFHVZLWKDQGIXO¿OOWKHLUVRFLDOUHVSRQVLELOLWLHVLQJOREDOO\accepted principles in the areas of human rights, labor, the environment and the prevention of corruption.

Applying the 10 Principles of
the UNGCThe DIC Group Code of BusinessConduct conforms with the 10
SULQFLSOHVRIWKH81*&7KH*URXSLV
capitalizing on its participation in thisprogram to advance its operations
around the world, while at the sametime giving ever-greater consideration
to the environment and human rights,
with the aim of ensuring sustainability
for global society.

3ULQFLSOHVRIWKH81*& RIÀFLDOYHUVLRQHuman rights

LabourEnvironment

Anti-corruption

Principle 1

Businesses should support and respect the protection of internationally proclaimed humanrights; andPrinciple 2

make sure that they are not complicit in human rights abuses.

Principle 3

Businesses should uphold the freedom of association and effective recognition of the right tocollective bargaining;

Principle 4

the elimination of all forms of forced and compulsory labour;

Principle 5

the effective abolition of child labour; and3ULQFLSOH

the elimination of discrimination in respect of employment and occupation.

Principle 7

Businesses should support a precautionary approach to environmental challenges;

Principle 8

undertake initiatives to promote greater environmental responsibility; andPrinciple 9

encourage the development and diffusion of environmentally friendly technologies.

Principle 10

Businesses should work against corruption in all its forms, including extortion and bribery.

Complying with ISO 26000
7KH',&*URXSRSHUDWHVLQDPDQQHUWKDWLVFRQVLVWHQWZLWK,62UHOHDVHGLQ1RYHPEHUZKLFKSURYLGHVEXVLQHVVHVDQG
organizations with guidelines for operating in a socially responsible manner.

DIC Report 2016

9

Branding

Having positioned 2016 as the inaugural year of its new branding program, the DIC Group is implementing abroad range of systematic, forward-looking measures directed at both internal and external stakeholders. As afirst step, the Group pondered the question of what value it brings to its customers and what role it is expected
to play. This process led to the establishment of a new brand slogan, which conveys the value that the Group
brings to its customers, and to the articulation of three corporate values.

Brand slogan

Based on the Group’s “Color & Comfort by Chemistry” management vision, the new brand slogan was chosenbecause it clearly and concisely conveys the value that the DIC Group brings to its customers and because its
suitability for global use will encourage greater brand awareness across the Group.
“Color & Comfort” expresses the DIC Group’s desire to help create a society that adds rich color and comfort
to people’s lives. Looking ahead, the Group will work to communicate the message of its new brand slogan in
a consistent manner to both internal and external stakeholders.

Three corporate values

Making it Colorful- DIC helps make life colorful -Innovation through Compounding- DIC brings innovation to society through its core compounding technologies -Specialty Solutions- DIC draws on its expertise and comprehensive strengths to offer solutions -The DIC Group has summarized the value that it brings to stakeholders in the form of three
corporate values, which the Group’s employees and executives will remain keenly aware of andincorporate into their actions and the proposals they make to customers. Through such efforts, theGroup will work to reinforce the DIC brand, as well as to increase corporate value.

DIC Report 2016

10

New Medium-Term Management Plan: DIC108
Based on its mission, vision and corporate values, DIC formulated its new medium-term management plan,
DIC108, which sets forth a growth scenario that outlines what needs to be done between now and fiscal year2018 to achieve sustainable growth.

■ The Future of the DIC Group
MissionThrough constant innovation, the DIC Group strives to create enhanced value and to contribute tosustainable development for its customers and society.

VisionColor & Comfort by Chemistry

Three corporate values that will underpin efforts to realize our Vision
Making it Colorful- DIC helps make life colorful -Innovation through Compounding- DIC brings innovation to society through its core compounding technologies -Specialty Solutions- DIC draws on its expertise and comprehensive strengths to offer solutions -Growth attributable tostrategic investments(M&As, etc.)

Growth Scenario and Positioning of DIC108

Next-generation
businesses

Ensure the sustainability of businesses
with stable earnings bases
t3FTQPOTFTUPFOWJSPONFOUBMDPODFSOTt3BUJPOBMJ[BUJPO
t4USBUFHJDJOWFTUNFOUT ."T FUD
2016

2017
DIC108Create business models that Achieve sustainablegrowth by revamping
address social imperatives
business portfolio
t&MFDUSPOJDT
t1BDLBHJOHt)FBMUIDBSF
t-PXDBSCPOJ[BUJPO

2018

2019

2020
DIC111

2021

2022

2023
DIC114

Businesses that will
drive growthBusinesses withstable earnings bases

2024■ Basic Strategies
Business
Translate the growth scenario
into reality through four businessinitiatives▶ Business initiative (1): Expand businesses that will drive growth▶ Business initiative (2): Pursue opportunities for strategic investments (M&As, etc.)▶ Business initiative (3): Rationalize operations in mature markets▶ Business initiative (4): Create next-generation businesses

FinancePursue an ideal financialbalance through cash flow
management

Ensure a balance among investment in growth, financial health and shareholder returns▶ Budget ¥150.0 billion for strategic investments▶ Keep debt-to-capital (D/C) ratio at around 50%▶ Increase dividend payout ratio to around 30%

Management Infrastructure
Support globalization and increase
sophistication with the establishmentof a solid management infrastructure

Operations:▶ Strengthen technical, R&D, purchasing, SSC* and IT configurations globally▶

Corporate governance:
Address challenges in accordance with the Corporate Governance Code* Shared services center

DIC Report 2016

11

New Medium-Term Management Plan: DIC108■ Business Strategy: Translate the DIC108 growth scenario into reality through four business initiatives
Business initiative

1([SDQGEXVLQHVVHVWKDWZLOOGULYHJURZWK &RQWULEXWLRQWRDQQXDORSHUDWLQJLQFRPHELOOLRQ

High-performance materials (TFT LCs, functional pigments, PPS compounds and inkjet inks)
DIC will concentrate management resources on high-performance materials with the potential for market growth over the medium term andexpand businesses by 1.7 times over the plan’s three years.

TFT LCs

Functional Pigments
ŶIntroduce new products in the area of processed pigments andexpand sales by increasing production capacity
([SDQGSRUWIROLRRISLJPHQWVIRUFRORU¿OWHUV Increase production capacity for pigments for optical materials
 Expand sales of pigments for cosmetics

ŶFocus on R&D for n-type TFT LCs
ŶSecure share of market for LCs for LCD manufacturers in
the PRCŶIncrease market share by bringing new products to market

PPS Compounds

Inkjet Inks

ŶExpand sales for automotive applications
 (VWDEOLVKJOREDOVXSSO\FRQ¿JXUDWLRQ Expand and improve sales and technical service facilities

ŶIntroduce new products Water-based inks for high-speed laser printers
 Inks for textiles
 Inks for coated papers
Ŷ(VWDEOLVKJOREDOSURGXFWLRQFRQ¿JXUDWLRQ

Packaging materials  *UDYXUHLQNVÀH[RLQNVSDFNDJLQJDGKHVLYHVDQG¿OPV
DIC will work to offer distinctive and innovative solutions for customers and brand owners by providing one-stop
services that tap into the DIC Group’s extensive range of packaging-related materials and technologies.
Business Initiative2

Pursue opportunities for strategic investments (M&As, etc.)&DSLWDOL]LQJRQDGUDPDWLFLPSURYHPHQWLQ¿QDQFLDOKHDOWKXQGHU',&',&ZLOOEXGJHWELOOLRQIRUVWUDWHJLFLQYHVWPHQWVLQFOXGLQJLQ0 $V
over three years. In addition to expanding business domains through the creation of next-generation businesses, the Company will work to increase thesales of its businesses by taking steps to prepare for a future business portfolio overhaul, the aim of which will be to expand businesses that will drive
growth, and by ensuring the sustainability of businesses with stable earnings, thereby translating DIC108’s growth scenario into reality.
Business Initiative3

Rationalize operations in mature markets &RQWULEXWLRQWRDQQXDORSHUDWLQJLQFRPHELOOLRQ

Publishing inks businesses in North America and Europe
DIC will seek to further enhance cost competitiveness by optimizing regional supply systems in line with production configurations streamlined
under DIC105 and to ensure a sustainable business structure even in an environment characterized by falling demand.

Mature businesses in Japan (Publishing inks, polymers and support departments)
DIC will implement a drastic restructuring in advance of an expected decline in demand and will allocate management resources to growthbusinesses and markets.

Business Initiative

4

Create next-generation businesses

DIC will address social imperatives by creating new value in such areas as materials for printed electronics, gas-barrier materials, health foods
and algae-derived oils, as well as promote open innovation to overcome dependence on in-house resources and expand technical domains.

■ Quantitative Targets of DIC108 WKHILUVW\HDURI',&ZLWKELOOLRQLWVWDUJHWIRUWKHSODQ¶VILQDO\HDU
7KH&RPSDQ\LVWDUJHWLQJUHFRUGKLJKRSHUDWLQJLQFRPHRIELOOLRQLQ

(Billions of yen)

Net sales
Operating income
Net income
ROE (Return on equity)
Ordinary investments
Strategic investments (M&As, etc.)
D/C ratio*
Dividend payout ratio

2015
Actual2016
Target2017
Target2018
Target¥820.0
¥51.1
¥37.4
15.0%
¥34.0
—
47%
21%

¥870.0
¥54.0
¥25.0
9.0%

¥920.0
¥58.0
¥30.0
10.0%
¥120.0¥150.0Around 50%
Around 30%¥960.0
¥65.0
¥40.0
12.0%

* D/C ratio: Interest-bearing debt / (Interest-bearing debt + Net assets)

DIC Report 201612

Messages from Top Executives at Regional Headquarters

through working proactively with government and industry tradegroups. In 2016, we are making further progress toward this goalby also working closely with our suppliers to reduce the overall
environmental footprint of their products and processes. Recent
successes include:Ɣ Switching to bio-sourced ethanol derived from corn
Ɣ Increasing the use of bio-sourced resins (tall oil or gum rosins) for publication inks
Ɣ Switching to reconditioned industrial containers for more and more of our packaging
Ɣ 6KLIWLQJVXSSO\RIFDUERQEODFNWRDQHZSURFHVVXVLQJVLJQL¿FDQWO\OHVVHQHUJ\
Ɣ 5HSODFLQJRXUDJLQJLQWHUQDOFDUÀHHWZLWKPRUHIXHOHI¿FLHQWYHKLFOHV
Ɣ Shifting internal distribution to intermodal (rail + truck) wherever feasible.

Working for You: Meeting Customer
Needs while Reducing
Environmental Impact
Sun Chemical Corporation
President & Chief Executive Oﬃcer

Rudi Lenz

Sun Chemical Corporation produces printing inks, pigments,
coatings and specialty materials for major industries acrossEurope, the Americas, the Middle East and Africa. With sales of$3 billion and over 8,000 employees, we operate 146 facilitiesin 37 countries. Sun Chemical made dramatic improvements
in operating income throughout DIC105, and we will continue
striving to meet and exceed the challenging DIC108 targets in
our regions.

We are committed to meeting our customers’ needs, while neverlosing sight of the business essentials, which are reliable, ontime delivery; consistent product quality; dependable service;and groundbreaking innovation.
Sun Chemical’s Pledge: As the world’s top producer of inks,
pigments and coatings, we will lead our industry by understanding
and minimizing the life cycle footprint of our products’ impact on
the environment.

Sun Chemical’s sustainability efforts are based on the conceptof eco-efficiency as defined by the World Business Council
for Sustainable Development: “The delivery of economicallycompetitive goods and services that satisfy customers’ needs
and bring quality of life, while progressively reducing ecologicalimpact and resource intensity throughout the life cycle.” In thepast year, we have made progress on most of our metrics throughcareful selection of materials and manufacturing processes and

Sun Chemical Corporation

DIC Report 201613

Messages from Top Executives
at Regional Headquarters

Taking on the Role ofDriving Growthunder a Global Model
DIC Asia Paciﬁc Pte Ltd
Managing Director

Kazunari Sakai

My feeling, in this the first year of DIC108, is that for us toachieve the medium-term management plan’s targets it is crucial
that we move closer to truly global management. Whether it be in
implementing our business programs or developing management
LQIUDVWUXFWXUHLWZLOOEHGLI¿FXOWWRUHDOL]HSURJUHVVXQOHVVZHDUH
global. I believe that the Asia–Pacific region has an important
UROHWRSOD\DVDWRXFKVWRQHIRUWKH*URXS¶VJOREDOL]DWLRQ
7KH',&*URXS¶VSUHVHQFHLQWKH$VLD±3DFL¿FUHJLRQFRPSULVHV
19 Group companies in 12 countries and territories. The region
is a mixture of many ethnicities, languages and religions,and the level of development varies greatly. Many of thesecompanies have fully local management teams. In many cases,
the administrative manager of each company is also a local
individual. Another feature of note is that there are many womenin these companies’ management teams. In other words, thesecompanies really personify diversity.
Going forward, the challenge is how to facilitate collaboration
at the regional level among such a diverse group of people.
In such promising areas as packaging inks and adhesives, forexample, we are promoting development and marketing basedon a regionally unified product strategy. Our ability to develop
a cooperative production configuration, including through theestablishment of mother plants, will be a key factor in determining
our success. On the administrative front, we are working to
SURYLGHHI¿FLHQWDJLOHVXSSRUWIRUORFDORSHUDWLRQV
Under DIC108, we will press ahead with these and otherstrategies with the aim of positioning DIC Group companies in
WKH$VLD±3DFL¿FUHJLRQDVDPRGHOIRUWKHJOREDO',&*URXSDIC Asia Paciﬁc Pte Ltd

DIC Report 201614

Messages from Top Executives
at Regional Headquarters

Promoting the Strengtheningof Marketing Functions andResponding to Demand throughSelection and Focus
DIC (China) Co., Ltd.
Chairman and General Manager

Hideki Inouchi

With a population of over 1.3 billion, the People's Republic of China
is seeing a sharp rise in purchasing power. The standard of living of
the middle class is greatly improving, as is clearly illustrated throughthe tourist shopping sprees we hear so much about. Meanwhile, theproblem of overproduction in the Chinese economy is a major issue,
which has been particularly apparent in such sectors as cement,
steel and coal. Economic growth is slowing, and this year’s National
People’s Congress adopted a GDP growth target of between 6.5%
and 7.0%—far lower than the double-digit growth seen in recent
years.
What this tells us is that although overall growth is slackening, there
are latent needs. If we can capture these needs, the PRC is still amarket in which robust growth can be expected. In other words, we
EHOLHYHWKDWWKHUHDUHVLJQL¿FDQWEXVLQHVVRSSRUWXQLWLHVEven though economic growth in the PRC is slower than in recent
years, in this the first year of DIC108 we are working to cultivate
promising high-end markets for which DIC Group technologies are
suited in line with two key DIC Group sustainability themes, namely,
Business Models that Respond to Social Imperatives and New
Technology Development and Value Creation. Through these efforts,
we aim to contribute to the achievement of DIC108’s targets.
With DIC108, the DIC Group’s focus has shifted from improving its
financial health to pursuing opportunities for strategic investmentsthat will support growth. Accordingly, we will explore chances toexpand investments, including M&A activities, in both the PRC
and adjacent areas. To this end, we will work to reinforce our local
marketing function.
Going forward, DIC (China) will work to identify businesses thatenable us to further strengthen our marketing capabilities, focus
resources on those businesses and concentrate efforts on locking in
demand.

DIC (China ) Co., Ltd.

DIC Report 201615

Providing Value in Five Business Segments

The DIC Group’s
Business Portfolio

The DIC Group has capitalized on its capabilities in organic pigments and synthetic resins, the principal material for printing inks, to build
a broad portfolio. Today, the Group classifies its products in five business segments: Printing Inks, Fine Chemicals, Polymers, Compounds
and Application Materials. Through its Advanced Technology Sales Administrative Division., Life & Living Sales Administrative Division
and Packaging & Graphics Sales Administrative Division—three sales administrative divisions organized in line with three key market
categories—and its affiliated companies, the DIC Group works to provide products that respond to the needs of society and its customers.

Markets
Electronics

Automobiles
Packaging

EnergyDigitalprinting

Livingenvironments

Coatings

Infrastructurebuilding

Application
Materials

Business segments

Printing Inks

Fine
Chemicals

Polymers

Compounds

The DIC Group’s
Basic Technologies
The DIC Group strives
constantly to contribute toa materially and spirituallyaffluent society through thedevelopment and provisionof environment-friendly
technologies and products. To
this end, the Group is leveraging
its basic technologies in theareas of optics and color,organic molecular design,
polymer design, dispersion
and applicability assessment(coating, printing and molding)to promote the development of
products in key target markets.

高分子
Polymer
designDispersion

設計

Organic
有機分子
molecular
設計design

Basic technologies

Applicability
応用評価
assessment
（塗工
・印刷・

成形加工）
(Coating/printing/molding)

光学・色彩
Opticsandcolor

DIC Report 2016

16

A Stable Business Since the Start

Printing Inks

Printing Inks Product Division
Offset inks
Gravure inks
Flexo inks
Can coatings
News inks
Packaging adhesives
Printing supplies

This segment focuses on printing inks, DIC’s mainstay businesssince its establishment. A global market leader, DIC boasts anextensive product portfolio ranging from publishing inks to inks andadhesives for packaging, enabling it to respond to the needs ofcustomers worldwide.

Outstanding color reproduction andreduced energy consumption

Ensuring safety for food and theenvironment

DAICURE HR series(High-sensitivity UV-curable offset inks)

FINART series(Gravure inks for food packaging)

As well as suitability for use with low-power
ultraviolet ( UV ) printers, DIC’s innovative
DAICURE HR high-sensitivity UV-curable
offset inks deliver outstanding color
reproduction, thus responding to the needsof customers seeking to switch from printing
with oil-based inks to UV-curable printing.

FINART gravure inks combine superb image
quality and suitability for high-speed printing,as well as respond to demand for the
reduction of solvents in food packaging,
thereby contributing to food safety and theenvironment.

DIC Report 201617

Optronics Materials andOther High-Value-Added Products

Fine Chemicals

Pigments Product Division
Organic pigments
Special effect pigments
Metal carboxylates
Sulphur chemicals (lubricant additives)

Liquid Crystal Materials Product Division
Products in this segment include a wide variety of materials
indispensable to digital devices, including LC materials and organic
pigments for color filters, which are expected to drive growth for DIC
in the years ahead.

Thin-film transistor (TFT) LCs
Supertwisted nematic (STN) LCs

A marked increase in brightness andreduced LCD energy consumption

Responding to the evolutionof LCDs

G58 series(Green pigments for color filters)

TFT LCs
The production of TFT LCs demands
advanced technological expertise. DIC is
one of only a few companies in the world
with such expertise. DIC’s technologies
ensure it is able to provide products that
respond to demands for faster response
times and greater long-term reliability.

In manufacturing the G58 series of green
pigments, DIC defied conventional wisdom byusing zinc, rather than copper, as the central
metal, which achieves a marked increase inbrightness and reduces energy consumed by
the liquid crystal displays (LCDs).

DIC Report 201618

DIC’s Second Core Business

Polymers

Polymers Product Division
Waterborne resins
UV-curable resins
Acrylic resins
Methacrylate resins
Epoxy resins
Phenolic resins
Fluorochemicals

Capitalizing on DIC’s world-class technologies and know-how, thissegment provides synthetic resins and resin-related products to awide array of industries.

Environment-friendly next-generation
adhesives that respond to diverse needs

Polyurethane resins
Polyester resins
Plasticizers
Unsaturated polyester resins
Polystyrene
Alkylphenols

Technologies that facilitate the controlof light for applications ranging
from display cases to optical fibers

TYFORCE series(Moisture-curing hot melt adhesives)

DEFENSA OP series(Low-refractive index UV-curable resins)

This series of solvent-free adhesives
delivers superb production efficiency andbonding strength. These resins have been
adopted for a wide range of applications,
including building materials, apparel andelectronic components.

Used for optical fiber cladding and opticalcoatings, the DEFENSA OP series’
low-refractive index UV-curable resins help
improve the performance of optical fibers
and the brightness of display cases.

DIC Report 2016

19

New Value Created through Dispersion
and Compounding Technologies

Compounds

Liquid Compounds Product Division
Inkjet inks
Fiber and textile colorants and artificial leather colorants
High-performance coatings and adhesive materials
Coatings for optical films

Solid Compounds Product DivisionThis segment leverages resin and pigment dispersion and compounding technologies accumulated since DIC’s founding to provide
products that respond to needs in the expanding global digitalprinting, automotive and electronics markets.

PPS compounds
High-performance compounds
Plastic colorants
High-performance optical materials

Contributing to the realization of lighter,more fuel-efficient vehicles

Helping customers realize
outstanding color
development and gloss
SunJet inkjet inks

DIC.PPS series(PPS compounds)

Advanced DIC Group pigment dispersion
technologies ensure excellent color
development and a glossy finish. With areputation for reliability, SunJet inkjet inks
enjoy popularity in markets around the world.

PPS compounds in the DIC.PPS series maintainexcellent rigidity, strength and electrical insulating
properties, as a result of which these compounds
have found application in components for hybrid,electric and other environment-friendly vehicles
as an alternative to metal materials.

DIC Report 201620

A Variety of Products Made Possible by
the Integration and Application of DIC Technologies

Application
Materials

Application Materials Product Division
Industrial adhesive tapes
Magnetic tapes and coated sheets
Hollow-fiber membranes and modules
Coextruded multilayer films
Health foods and natural colorants
Decorative boards, interior housing products andcoatings for building materials
Decorative sheets and decorative films
Processed sheet molding compounds (SMCs) andbulk molding compounds (BMCs)
Molded plastic productsThis segment encompasses a diverse range of products, including
industrial adhesive tapes, hollow-fiber membranes and modules, andcoextruded multilayer films, which are made possible through the integration of proprietary coating, printing, molding and other technologies.

Enhancing waterproof
smartphone construction

A superfood that provides abalanced wealth of nutrients
DIC Spirulina

DAITAC WS#84 series(Double-sided adhesive tapes forwaterproof mobile communications devices)

Spirulina is an edible blue-green algae richin vitamins, minerals and ß-Carotene, as
well as protein. Spirulina’s nutritional value
and popularity as an ingredient not only inhealth foods but also for culinary
applications has earned it a reputation asa superfood.

One of the first series of waterproof tapes to be
developed and marketed for waterproof
smartphone construction, the DAITAC WS#84
series continues to support efforts to enhance theability of smartphones to resist water ingress.

DIC Report 201621

Special Feature
Product Development for a Sustainable Society

Innovative Products that Address Key
Social Imperatives and Respond to the Needs of Stakeholders$GGUHVVLQJLVVXHVUHODWHGWRFOLPDWHFKDQJHHQHUJ\IRRGVHFXULW\DQGGLVDVWHUSUHYHQWLRQLVRQHRIWKHPRVWVLJQL¿FDQWFKDOOHQJHVIDFLQJWKHZRUOGWRGD\
7KH',&*URXSLVOHYHUDJLQJWKHSRZHURIFKHPLVWU\WRSURYLGHSURGXFWVWKDWFDQKHOSUHVROYHVXFKLVVXHVDQGIXUWKHUGULYHVRFLDOVXVWDLQDELOLW\SocialImperatives
Energyconservation

3Rs (“Reduce,
Reuse, Recycle”)

Aging
society

Safety/Peace of mind

HumanrightsHighly informationoriented society

Comfortable
lifestyles

Reduction of substancesthat harm the environment

Reduction of
CO2 emissions

Improvementof convenience

Food loss
reduction

Better productquality&RORUVROXWLRQVIRUFXVWRPHUVLQ¿HOGVUDQJLQJIURPRXWGRRUVLJQDJHWRWH[WLOHV1,QNMHW,QNVIRU,QGXVWULDODQG2IÀFH3ULQWHUVSocialImperative

Reduce environmental impact
through on-demand printing

2XWGRRUGLVSOD\JUDSKLFVLQFOXGLQJELOOERDUGVSRVWHUVDQGEDQQHUVSURGXFWSDFNDJLQJSULQWHGPDWHULDOVLQWKHZRUNSODFHDQGWH[WLOHVXVHGLQJDUPHQWVEHGGLQJDQGLQWHULRUGHFRUDWLQJDUHMXVWDIHZRIWKHPDQ\WKLQJVWKDWPDNHRXUOLYHVFRORUIXO+RZHYHULQWKLVHUDRIPDVVFRQVXPSWLRQWKHXVHRIUHVRXUFHV
DQGHQHUJ\DQGWKHJHQHUDWLRQRIZDVWHLQWKHVHDQGRWKHUDUHDVDUHMXVWDIHZRIWKHPDQ\FULWLFDOLVVXHVIDFLQJPDQXIDFWXUHUVDQGFRQVXPHUV$WWKHVDPH
WLPHZLWKPDQXDOZRUNWKHRQO\ZD\WRVDWLVI\ORZYROXPHGLYHUVL¿HGRUGHUVSUREOHPVUHPDLQLQWHUPVRIVSHHGTXDOLW\DQGFRVW,QUHFHQW\HDUVWKHHPHUJHQFHRIGLJLWDOSULQWHUVKDVIXHOHGWKHSRSXODULW\RIRQGHPDQGSULQWLQJZKLFKDOORZVLWHPVWREHSULQWHGLQWKHTXDQWLW\GHVLUHG
DWWKHWLPHQHHGHGPDNLQJLWSRVVLEOHWRUHVSRQGSURPSWO\WRORZYROXPHGLYHUVL¿HGQHHGVZKLOHDOVRUHGXFLQJERWKUHVRXUFHVDQGHQHUJ\XVHDQGZDVWH
HPLVVLRQV,QSDUWLFXODULQNMHWSULQWHUV²ZKLFKZRUNE\MHWWLQJPLQLVFXOHGURSOHWVRILQNRQWRDVXEVWUDWHDUHVPDOOHUDQGPRUHHQHUJ\HI¿FLHQWWKDQODVHU
SULQWHUVDQGFDQUHSURGXFHLPDJHVDQGWH[WZLWKVXSHUESUHFLVLRQZLWKRXWWKHSULQWKHDGVHYHUWRXFKLQJWKHSULQWVXUIDFH²KDYHJDLQHGSRSXODULW\LQPDQ\GLIIHUHQW¿HOGV
7KHTXDOLW\RILPDJHVUHFUHDWHGE\LQNMHWSULQWHUVLVLQÀXHQFHGJUHDWO\E\WKHFKDUDFWHULVWLFVRIWKHLQNV,QDGGLWLRQWRGXUDELULW\LPDJHTXDOLW\DQGZHDWKHUDELOLW\LHUHVLVWDQFHWRPRLVWXUHDQG89OLJKWLQNVPXVWPD[LPL]HWKHSHUIRUPDQFHRILQFUHDVLQJO\KLJKVSHHGKLJKSUHFLVLRQLQNMHWSULQWHUVThe development and supply of inks optimally suited to different types of inkjet printers continue to drive the expansion of on-demand printing to an everEURDGHUYDULHW\RIPHGLDDQGDUHWKXVH[SHFWHGWRKHOSUHGXFHWKHHQYLURQPHQWDOLPSDFWRIRQGHPDQGSULQWLQJLQYDULRXV¿HOGVHow do inkjet printers work?
Cyan

Light
cyan

Light
Magenta magenta Yellow Key (Black)
C

C

LC

M

LM

Y

LC M LM Y

K

K

Sealant

DIC Report 2016

22

,QNMHW SULQWHUV ZRUN E\ MHWWLQJ PLQLVFXOH GURSOHWV RI LQN ZKLFK WKHDSSOLFDWLRQRIKHDWRUYROWDJHSURSHOVRQWRWKHVXEVWUDWH7KH\FDQEH
XVHGWRSULQWSKRWRJUDSKVZLWKVXSHUEGHWDLODQGDFFXUDWHFRORU,QNMHW
printers using solvent inks and specialized coating or lamination to yield
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FeatureDIC’s
Response

Aqueous inkjet inks that help reduce
environmental impact for a variety of industries

DIC uses its proprietary pigment dispersion technologies to develop inkjet inks that provide
water-and light-fastness with excellent color gamut and gloss/DUJHIRUPDWLQNMHWSULQWHUVIRULQGXVWULDODQGRI¿FHDSSOLFDWLRQVXVHDYDULHW\RIGLIIHUHQWLQNV7KH',&*URXSLQFOXGLQJERWK',&DQG6XQ
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LQZDWHU:KLOHDTXHRXVLQNMHWLQNVH[HUWOHVVRIDQLPSDFWRQWKHHQYLURQPHQWWKDQVROYHQWEDVHGSURGXFWVREWDLQLQJDVWDEOHGLVSHUVLRQRISLJPHQWVLQZDWHUKDVWUDGLWLRQDOO\EHHQSUREOHPDWLFPDNLQJLWGLI¿FXOWWRUHDOL]HH[FHOOHQWFRORUJDPXWDQGJORVV',&XWLOL]HGLWVSURSULHWDU\SLJPHQWGLVSHUVLRQWHFKQRORJLHVWRUHVROYHWKLVFKDOOHQJHFUHDWLQJLQNMHWLQNVWKDWFRPELQHWKHLQKHUHQWZDWHUDQGOLJKWIDVWQHVVRISLJPHQWVZLWKWKHVXSHUEFRORUJDPXWDQGJORVVUHTXLUHGIRUWKHSULQWLQJRISRVWHUVDQGSKRWRJUDSKV7KHFRPELQDWLRQRIGLJLWDOSULQWHUVDQGDTXHRXVSLJPHQWHGLQNVLVDOVRDWWUDFWLQJDWWHQWLRQIURPPDQXIDFWXUHUVRIWH[WLOHVXVHGLQ
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RIZDVWHZDWHU,QFRQWUDVWLQNMHWSULQWHUVFDQSULQWGLJLWDOGDWDGLUHFWO\RQWRIDEULFVHOLPLQDWLQJWKHQHHGIRUSODWHVWKHUHE\IDFLOLWDWLQJORZYROXPHGLYHUVL¿HGSULQWLQJDQGUHGXFLQJHOHFWULFLW\XVH0RUHRYHUSLJPHQWLQNVDUHFRPSDWLEOHZLWKPDQ\IDEULFW\SHVVXEVWDQWLDOO\UHGXFLQJZDVWHZDWHUJHQHUDWHG
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ZLWKHQYLURQPHQWIULHQGO\VROYHQWV,QNVFXUHG GULHG XVLQJKLJKLQWHQVLW\89OLJKW

Large-format inkjet printer for textile printing$OORZVORZYROXPHGLYHUVL¿HGSULQWLQJ

Generates less
ZDVWHZDWHUWKDQ
screen printing

Emits no volatileorganic compounds
92&V ZKHQ
XVHGZLWKDTXHRXV
pigmented inkjet
inks

Pigment particle

Pigment dispersion containing pigment particles
encapsulated in resin＋
Dispersant resin in water

Dispersion

Transparent resin

Extraction

Pigment particles

DIC Report 201623

Special
FeatureDIC Pigment Dispersion and Ink
Technologies Used in Inkjet inks

Combining multiple
sophisticated technologies
Corporate R&D Division/
Advanced Characterization Research Center

Fine Synthesis Technical Div. 1

Evaluation
technologies

Pigmenttechnologies

Resintechnologies

Dispersion
technologies

Polymer Technical Division 1,
Polymer Technical Division 2

Corporate R&D Division,
Dispersion Technical Division 2

Pigment Dispersion
and Ink Technologies
Key People
from DIC

We are providing integrated solutions that leverage DIC Groupcapabilities and meet advanced requirements.
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VWDELOL]DWLRQSURFHVVHVDVZHOODVWRGHVLJQUDZPDWHULDOVVXFKDVV\QWKHWLFUHVLQV,QGXVWULDODQGRI¿FHSULQWHUVDUHUDSLGO\LPSURYLQJLQWHUPVRIVSHHGDQGDFFXUDF\SURYLGLQJDQRSSRUWXQLW\IRUXVWRH[WHQGYDOXHE\RSWLPL]LQJRXUSURGXFWVDQHIIRUWWKDWLVVXSSRUWHGE\WKH
HYROXWLRQRIUHVLQVDQGSLJPHQWVDQGDGYDQFHGHYDOXDWLRQWHFKQLTXHV
General Manager, Dispersion Technical Division 2 Satoshi Idemura

We are collaborating with Sun Chemical and working to expand
markets for the Group’s inkjet inks.
In 2013, DIC and Sun Chemical consolidated their respective lines of printing inks forindustrial inkjet printers under the SunJetEUDQGQDPH',&H[FHOVDWDTXHRXVGLVSHUVLRQV
DQGLQNVZKLOH6XQ&KHPLFDO¶VIRUWHLV89FXUDEOHDQGVROYHQWEDVHGLQNV%\FRPELQLQJWKHVHVWUHQJWKVZKLFK',&DQG6XQ&KHPLFDOKDYHFXOWLYDWHGLQGHSHQGHQWO\E\GHYHORSLQJXQLTXHWHFKQRORJLHVDQGDFFXPXODWLQJNQRZKRZZHDUHZRUNLQJWRSURSRVHHIIHFWLYH
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:HUHFRJQL]HWKDWFXVWRPHUV¶QHHGVKDYHVKLIWHGWRLQFOXGHWKHUHGXFWLRQRIHQHUJ\DQG
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7RGD\ZHDUHVHHLQJDGUDPDWLFVKLIWWRRQGHPDQGSULQWHUVIRURIILFHXVHDQGWH[WLOH
SULQWLQJDPRQJRWKHUVDQGZHDUHH[SHFWLQJUDSLGJURZWKIRUSDFNDJLQJDSSOLFDWLRQV²RQH
RIRXUIRFXVDUHDV²LQWKHQH[WIHZ\HDUV%\H[SDQGLQJWKLVEXVLQHVVZHZLOODOVRFRQWLQXHKHOSLQJWRUHGXFHWKHHQYLURQPHQWDOLPSDFWRIRXUFXVWRPHUV¶RSHUDWLRQVManager in charge of jet ink products, Imaging and Reprographic Products Sales Department, Liquid Compounds Product Division Yoshiyuki Koizumi

DIC Report 201624

Special
Feature+ROORZ¿EHUPHPEUDQHVWKDWIDFLOLWDWHWKHUHPRYDORIJDVIURPDQGGLVVROYLQJRIJDVLQWROLTXLGV2SEPAREL® Hollow-Fiber Membranes and Membrane Modules
Rust causedby oxygen candegrade plumbing
pipes

SocialImperative

Eliminate gases dissolved in liquids,
which can adversely impact various processes)URPGDLO\OLIHWRLQGXVWULDOSURGXFWLRQZDWHUSLSHVSOD\DNH\UROHLQDWUXO\GLYHUVHUDQJHRIVLWXDWLRQV+RZHYHUR[\JHQQLWURJHQFDUERQGLR[LGHDQGRWKHUJDVHVGLVVROYHGLQZDWHUFDQKDYHPDQ\QHJDWLYH
FRQVHTXHQFHV2QHRIWKHVHLVUXVWIRUPHGZKHQLURQDQGR[\JHQUHDFWLQWKHSUHVHQFHRIZDWHUZKLFKFDQVKRUWHQWKHXVHIXOOLIHRISOXPELQJSLSHV2[\JHQFDQEHUHPRYHGZLWKFKHPLFDOVEXWVRPHFRQWDLQVXEVWDQFHVWKDWSUHVHQWKHDOWKKD]DUGVDQGVRWKH\SRVHDULVNWRLQGLYLGXDOVXVLQJWKHP$QRWKHUFRQVHTXHQFHRIR[\JHQLQOLTXLGLVWKHIRUPDWLRQRIEXEEOHVDUHVXOWRIÀXFWXDWLRQVLQSUHVVXUHZKLFKPD\DGYHUVHO\DIIHFWWKHRSHUDWLRQRISUHFLVLRQHTXLSPHQW)RUH[DPSOHEXEEOHVIRUPLQJLQMHWLQNV
FDQKDPSHUHMHFWLRQIURPQR]]OHVGDPDJLQJSULQWTXDOLW\ZKLOHLQVHPLFRQGXFWRUIDEULFDWLRQEXEEOHVLQSKRWRUHVLVWVDQGGHYHORSHUVFDQLPSHGHWKHIRUPDWLRQRIFLUFXLWSDWWHUQVFDXVLQJGHIHFWV$VWKHVHH[DPSOHVLQGLFDWHWKHUHLVDFOHDUQHHGIRUHIIHFWLYHDQGHQYLURQPHQWIULHQGO\ZD\VWRUHPRYHJDVHVGLVVROYHGLQOLTXLGVWKHUHE\UHGXFLQJUHODWHGUHVRXUFHDQGHQHUJ\ORVVHVDVZHOODVZDVWHDULVLQJIURPSURGXFWTXDOLW\LVVXHVDWWULEXWDEOHWKHUHWR

Examples of the adverse impact
of gases dissolved in liquids
Fe

Fe2 O3

Ink that has notbeen degasified

Ink that has notbeen degasified

O2

Ink does not eject vertically

In semiconductor
fabrication, bubbles arehighly detrimental to
the formationof circuit patterns

Bubbles in
jet inks canhamper ejection
from nozzles

Application ofphotoresist

Application ofdeveloper

Photoresist

Photoresis Developer

Silicon wafer

Silicon wafer

Air bubbles
cause defects

Photoresist underthe bubble
does not dissolve,
causing defects

Ink does not eject

Water that has not been degasified

Rust caused by oxygen

DIC’s
Response

Bubbles in jet ink impede
ejection from nozzles

Bubbles can impede the formationof circuit patterns+ROORZÀEHUPHPEUDQHVIRUGHJDVLÀFDWLRQ UHPRYDORIJDVHV
dissolved in liquid) and aeration (dissolving of gases into liquid)',&GHYHORSHGDSURSULHWDU\KROORZÀEHUPHPEUDQHZLWKJURXQGEUHDNLQJJDV
separation capabilities approximately 30 years ago.
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LWFRPSDWLEOHZLWKKLJKO\SHUPHDEOHOLTXLGVDIC Report 201625

Special
Feature+LJKJDVSHUPHDELOLW\
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180〜240µm

Achieves gas
removal toDSDUWVSHUELOOLRQ
level

30〜40µm

Liquid and gas flows
LiquidVacuumHollow-fiber
Gas molecules membranes

Degassed N2

Dissolved N2
Gas flow

Dissolution
Gas molecules
LiquidDegasified liquid

Dissolved O2
Ultrafine hollow fibers
Skin layer
・ Thin (approx. 1 μm), witha high permeability rate

Degassed O2
Hollow
fibersSEPAREL ® membrane modules are
EXQGOHVRIKROORZÀEHUPHPEUDQHV・ Compatible withhighly permeable liquids$SSOLFDWLRQVIRU',&·VKROORZÀEHU0HPEUDQHVDUH)RXQGLQ0HGLFLQH(YHU\GD\/LIHDQG,QGXVWU\
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PHPEUDQHGHJDVLILFDWLRQDQGDHUDWLRQPRGXOHV8VHVIRUSEPAREL®PRGXOHVLQFOXGHUHPRYLQJR[\JHQIURPSLSHVLQSRZHUSODQWVIDFWRULHVRIILFHEXLOGLQJVDQGFRQGRPLQLXPFRPSOH[HVWRSURWHFWDJDLQVWUXVWWKHUHE\SURQJLQJWKHLUXVHIXOOLYHV,QWKHDUHDRILQNMHWSULQWLQJWKHVHPRGXOHVDUHXVHGWRUHPRYHR[\JHQIURPMHWLQNVZKLFKKHOSVHQKDQFHSULQWTXDOLW\SEPAREL®PRGXOHVDOVRERDVW
RXWVWDQGLQJDHUDWLRQFDSDELOLWLHV,QVHPLFRQGXFWRUIDEULFDWLRQIRUH[DPSOHWKH\DUHXVHGWRGLVVROYHFDUERQGLR[LGHLQWRXOWUDSXUHZDWHUZKLFKIDFLOLWDWHVFRQWURORIWKHZDWHU¶VVSHFL¿FUHVLVWDQFHYDOXHSUHYHQWLQJGXVWIURPUHDGKHULQJGXHWRVWDWLFHOHFWULFLW\DQGWKHHOHFWURVWDWLF
GHVWUXFWLRQRIVXEVWUDWHSDWWHUQVDIC Report 201626

Special
FeatureKey People
from DIC

Our goal is to provide products that customers cannot do without.
SEPAREL®PHPEUDQHPRGXOHVDUHOLJKWDQGFRPSDFWDQGFDQEHLQVWDOOHGVLPSO\E\OLQLQJWKHPXSPDNLQJWKHPIDUPRUHÀH[LEOHDQGHDV\WRPRYHDURXQGWKDQWKHGHJDVL¿FDWLRQWRZHUVFRPPRQO\VHHQDWSURGXFWLRQIDFLOLWLHV0RUHRYHUXQOLNHZLWKFKHPLFDOGHJDVL¿FDWLRQWKHVHXQLWVDUHQRWKD]DUGRXVWRKXPDQKHDOWKRUWKHHQYLURQPHQW%HFDXVHWKHKROORZILEHUPHPEUDQHVXVHGLQWKHVHPRGXOHVDUHPDGHIURPUHVLQWKHUHDUHFRQVWUDLQWVLQWHUPVRIKHDWSUHVVXUHDQGVROYHQWUHVLVWDQFH:H
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of SEPAREL®DPRQJVXFKFXVWRPHUV,DPFRQ¿GHQWWKDWRQFHWKH\WU\RXUPHPEUDQHPRGXOHVWKH\
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Assistant Manager in Charge of Membranes Sales Department, Application Materials Product Division Ken Tamaoki

The secret is an exclusive dual-layer structure with a skin layer.
All aspects of the SEPAREL®PHPEUDQHEXVLQHVV²LQFOXGLQJSURGXFWLRQRIKROORZ¿EHUVGHYHORSPHQW
RIPRGXOHVFRPPHUFLDOL]DWLRQDQGPRGXOHSURGXFWLRQ²DUHFHQWHUHGDWWKH&KLED3ODQW7KHVH
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LQWROLTXLGWKHJUHDWHUWKHYDOXHUHDOL]HGE\SEPAREL®PRGXOHVHead Researcher, Polymer Processing Technical Group 5, Polymer Processing Technical Division Shigeaki Fujieda

TOPICS

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super-high sensitivity detector that operates on the same principle as its
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Special
Feature

5LFKFRORUDQGVXSHULRUVDIHW\FRQWULEXWHWRWKHFRVPHWLFVLQGXVWU\

3Pigments for Cosmetics

SocialImperative

Develop color materials that meet the stringent safety
and quality management standards required for use in cosmetics

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&RORUPDWHULDOVIRUFRVPHWLFVFDQEHRIPLQHUDOYHJHWDEOHRUV\QWKHWLFRULJLQ5HFHQWO\FRQVXPHUVGHPDQGORZKHDY\PHWDOVFRQWDPLQDWLRQLQWKHVHNLQGVRIFRORUDQWV)RUWKLVUHDVRQPDQ\FRXQWULHVDQGUHJLRQVKDYHHVWDEOLVKHGVDIHW\VWDQGDUGVIRUFRVPHWLFVDQGDUHZRUNLQJWRVWUHQJWKHQUHVWULFWLRQVRQKHDY\PHWDOFRQWDPLQDQWVLQFRORUPDWHULDOV:LWKSRSXODWLRQDQGHFRQRPLFJURZWKLQHPHUJLQJPDUNHWVH[SHFWHGWRGULYHXSGHPDQGIRUFRVPHWLFVLQWKH\HDUVDKHDGFRVPHWLFVPDQXIDFWXUHUVZRUOGZLGHDUHFRPLQJXQGHULQFUHDVLQJSUHVVXUHWRDGKHUHWRSHUWLQHQWODZVDQGUHJXODWLRQVDQGJXDUDQWHHWKHVDIHW\RIWKHLUSURGXFWVDVZHOODVWRSURPRWHDZDUHQHVVDQGFRPSOLDQFHDFURVVWKHLUHQWLUHVXSSO\FKDLQVDIC’s
Response

Superior color materials that comply with safety standards,
laws and regulations in countries and regions around the world

Sun Chemical provides pigments for cosmetics that are among the top in the world.
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DIC Report 201628

Special
FeatureSun Chemical’s Lineup of Pigments for Cosmetics
SunCROMA ®

Soft-Tex ®

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pigments, SunCROMA ®LVZLGHO\DFFHSWHGDVWKHFRORUVWDQGDUGIRUWKHFRVPHWLFVLQGXVWU\SunCROMA®SLJPHQWVDOVRFRPSO\ZLWKSHUWLQHQWODZVDQGUHJXODWLRQVLQWKH8QLWHG6WDWHV(XURSH
DQGRWKHUFRXQWULHVDQGUHJLRQVDURXQGWKHZRUOGProprietary technologies give Soft-Tex ® pigments
DKLJKO\XQLIRUPSDUWLFOHVL]HDQGHDV\GLVSHUVLRQSunPURO ®

INTENZA ®

The SunPURO ®OLQH¶VH[WUHPHO\ORZKHDY\PHWDO
content levels have earned it certification under)UDQFH¶V (&2&(57  FRQVLGHUHG WKH JOREDOVWDQGDUGIRULQJUHGLHQWVXVHGLQQDWXUDOFRVPHWLFVThe INTENZA ®OLQHFRPSULVHVK\EULGSLJPHQWVFRPELQLQJ)'$FHUWLILHGRUJDQLFFRORUDQWVDQG
SHDUOHVFHQWHIIHFWSLJPHQWV

DIC and Sun Chemical are Stepping Up Collaboration to Expand Markets and Enhance Product Appeal.
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from DIC

In the future, we hope to market “designed-in-Japan” pigments for cosmetics in global markets.
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Senior Manager of Product Planning, Pigments Product Division, Fine Chemicals Segment Yoshinari Akiyama

One day, people will automatically associate the DIC name with pigments for cosmetics.
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Manager Pigments Sales Department 1, Pigments Product Division, Fine Chemicals Segment Manabu OhiraI am working to expand sales channels with the aim of “Making it Colorful.”
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FRUSRUDWHYDOXHVRQHRIZKLFKLV³0DNLQJLW&RORUIXO´%RWKRIWKHVHSKUDVHVUHDOO\UHVRQDWHZLWKWKHYDOXHSURYLGHGE\FRORUPDWHULDOVIRUFRVPHWLFVDQGKDYHSURYLGHGH[WUDHQFRXUDJHPHQWWRWKRVHRIXVLQWKLVEXVLQHVV3LJPHQWVIRUFRVPHWLFVPD\VWULNHVRPHSHRSOHDVDQXQXVXDO¿WIRU',&EXWWKHVHSLJPHQWVDUHXVHGLQSURGXFWVIRUFRQVXPHUVVRHQKDQFLQJUHFRJQLWLRQRIWKH6XQ&KHPLFDOEUDQGQDPHZLOODOVRHQFRXUDJHIDPLOLDULW\ZLWKWKH',&QDPH/RRNLQJDKHDG,ZLOOFRQWLQXHZRUNLQJWRH[SDQGVDOHVFKDQQHOVSODFLQJDKLJKSULRULW\RQWKHSHUVSHFWLYHRIFRQVXPHUVZKRXVHFRVPHWLFVPigments Sales Department 1, Pigment Product Division, Fine Chemicals Segment Mari Samejima

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Special
FeatureMessage fromSun Chemical“Not just a pretty face”:LWKJOREDOGHPDQGIRUKLJKTXDOLW\RUJDQLFSLJPHQWVJURZLQJDWGRXEOHGLJLWUDWHVGULYHQE\
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SURMHFWVLQWKHFRVPHWLFVLQGXVWU\2XU³1RWMXVWDSUHWW\IDFH´FRQFHSWVKRZVRXUFXVWRPHUVWKDWZHKDYHDQH[WHQVLYHUDQJH
RILQRUJDQLFSLJPHQWVWUDGLWLRQDODQGIXQFWLRQDO¿OOHUVVRIWIRFXVSLJPHQWVHIIHFWSLJPHQWVG\HV DQG²ODVW EXW QRW OHDVW²WUHDWHG SLJPHQWV VXLWDEOH IRU DSSOLFDWLRQV LQ VNLQ FDUH
WRLOHWULHVDQGVSDWUHDWPHQWSURGXFWV7RJHWKHUZLWKRXUFDSDFLW\LQFUHDVHVDWERWKSURGXFWLRQVLWHVLQWKH8QLWHG6WDWHVDQGWKH
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KLJKYDOXHIDVWPRYLQJFRVPHWLFVZRUOGGlobal Director, Cosmetics, Sun Chemical B.V. Bart Vanderbiest

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DIC Report 201630

TopicAquacure Inkjet Inks Technology Delivers the Positive Print
Characteristics of a Water-Based Ink
The Sun Chemical Group, a core member of the DIC Group, is the leading manufacturer of printing inks
in terms of market share in both the Americas and Europe.

Today’s core inkjet technologies—aqueous, solvent and UV-curable—perform perfectly well across a wide variety
of products and applications. However, there are fundamental pros and cons with each chemistry. Being waterbased, aqueous inks have strong environmental credentials, provide a wide color gamut, offer excellent resolution
and are relatively inexpensive. However, printheads require increased maintenance, substrates need to becoated, which can cost more, and agueous inks require lamination in order to be suitable for outdoor use.
UV-curable inks have superb media flexibility, offer high durability and can adhere to both uncoated stocks and other challenging
materials such as vinyl, glass and wood. They cure almost instantly, enhancing image quality, reducing energy consumption andimproving productivity. On the downside, UV-curable inks have a limited color gamut, the structured ink film produces a noticeablyraised finish, and they need greater care in handling and transportation.
Solvent inks produce exceptionally durable finishes that are ideal for demanding outdoor applications. Nonetheless, the VOCs
released as the solvent evaporates require a ventilated environment, making these inks the least environment-friendly option. They arealso difficult to handle in a single-pass printer architecture, owing to the rate of evaporation at elevated temperatures and the inability
to exercise inactive nozzles during printing.
In an ideal world, inkjet users want a solution that combines the characteristics of aqueous and UV-curable inks while at the sametime providing consistent high-quality output with an extended color gamut. Such a hybrid composition would deliver odor-free prints,
provide excellent adhesion to a wide range of media, and offer enhanced resistance and high flexibility. It would also be environmentfriendly, with a reduced film weight, and have low migration properties.
SocialImperative

Sun Chemical addressed this imperative with the introduction of Aquacure, a functional aqueous technology
combining water-based and UV-curable solutions. Comprised of 60–90% water, Aquacure inkjet inks
deliver the positive print characteristics of a water-based ink, including low film weights, lack of odor, and an
impeccable health, safety and environmental profile. The UV-curable component provides the ink’s versatility
and durability, as well as ensuring reliable jetting through the printhead. Aquacure technology delivers adhesion to a broad range of
media, offers superb flexibility and has an extensive color gamut. The technology delivers significant advantages in the graphics sector,
but can also achieve migration limits and compliance for primary food packaging in combination with the appropriate press design.
Unlike 100% solids UV-curable inkjet inks, Aquacure can produce low film weights similar to those in conventional print processes.
Sun Chemical’s
Response

VOICE from the DIC Group

Business Director, Digital, Sun Chemical Corporation Peter Saunders

Aquacure provides a look and feel that converters and brand owners demand.
This newly developed aqueous chemistry offers functionality that digital printers have wanted from water-based
technology and will have a positive impact on both well-established and emerging inkjet market segments. Most
importantly, Aquacure uses between 70–80% renewable materials, is hazard- and odor-free, and is compliant for low
migration packaging. Aquacure provides a look and feel that converters and brand owners demand. To date, tests
involving key manufacturers have proven to be highly successful.

DIC Report 201631

Corporate Governance
Basic Approach to Corporate Governance
The DIC Group has prepared a Policy on Corporate Governance in which it discloses its basic approach to corporate governance as follows:7KH',&*URXSLGHQWL¿HVWKHSXUSRVHRIFRUSRUDWHJRYHUQDQFHDVEHLQJ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PRWLYDWLRQIRUPDQDJHPHQW¶VH[HFXWLRQRIEXVLQHVVDFWLYLWLHV:LWKWKHDLPRIDFKLHYLQJDKLJKHUOHYHORIWUXVWRQWKH
SDUWRIVKDUHKROGHUVFXVWRPHUVDQGRWKHUVWDNHKROGHUVDQGHQKDQFLQJFRUSRUDWHYDOXHWKH',&*URXSDOVRSURPRWHVRQJRLQJPHDVXUHVWRUHLQIRUFHLWV
PDQDJHPHQWV\VWHPDQGHQVXUHHIIHFWLYHPRQLWRULQJWKHUHRI

Outline of Policy on Corporate Governance (Chapter Headings)❶ Basic approach to corporate goveranance❷ Securing the rights and equal treatment of shareholders❸ Appopriate cooperation with stakeholders other than shareholders❹ Ensuring appropriate information disclosure and transparency❺ Responsibilities of the Board❻ Dialogue with shareholders❼ Other

WEB http://www.dic-global.com/en/about/pdf/governance_en.pdf
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System of Internal Control
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FUHDWLRQRIV\VWHPVWRIRVWHUEXVLQHVVHIILFLHQF\6SHFLILFLQLWLDWLYHVWRGDWHKDYHLQFOXGHGIRUPXODWLQJDFRGHRIEXVLQHVVFRQGXFWWKDWHQFRPSDVVHVDZKLVWOHEORZLQJV\VWHPYDULRXVULVNPDQDJHPHQWLQLWLDWLYHVLPSOHPHQWHGE\WKH6XVWDLQDELOLW\&RPPLWWHHWKHHVWDEOLVKPHQWRIYDULRXVLQWHUQDOUXOHVDQGPRQLWRULQJ LQWHUQDOFRQWURODXGLWVDQGHQYLURQPHQWDQGVDIHW\DXGLWV 7KH%RDUGRI'LUHFWRUVDOVRKHDUVDQQXDOUHSRUWVRQPHDVXUHVLPSOHPHQWHGLQOLQHZLWKWKHSROLF\RQLQWHUQDOFRQWURO

Corporate Governance Organization

Meeting of Shareholders
Appointment

Appointment

Audit

Board of Directors
Nomination Committee

Accounting
audit

President and CEO

Remuneration Committee
Sustainability Committee

Internal Control Department

Board of Corporate Auditors

Accounting auditors

Executive Committee

Product divisions, Marketing Division, Production Administrative Division,
Technical Administrative Division, Corporate R&D Division,
headquarters’ administrative divisions, offices

Internal audit

DIC Report 201632

Group companies

Overview of Materiality Analysis
The DIC Group conducts its operations in line with its mission, “Through constant innovation, the DIC Group strives to create enhanced value andto contribute to sustainable development for its customers and society.” In recent years, the Group has seen a rapid increase in requests fromDEURDGUDQJHRIVWDNHKROGHUVLQFOXGLQJVKDUHKROGHUVDQGLQVWLWXWLRQDOLQYHVWRUVUHJDUGLQJGLVFORVXUHRI¿QDQFLDODQGQRQ¿QDQFLDOLQIRUPDWLRQ
Stakeholders today place particular emphasis on information that measures performance from the perspective of critical ESG-related issues.
$FFRUGLQJO\WKH*URXSKDVDEVWUDFWHGDQGDQDO\]HGPDWHULDOLVVXHVWKDWLVLVVXHVZLWKSRWHQWLDOWRDIIHFWLWVSHUIRUPDQFHDQGKDVLGHQWL¿HG
WKRVHRISDUWLFXODUVLJQL¿FDQFH
,QDGGLWLRQWRHQVXULQJSURSHUSULRULWL]DWLRQWKH',&*URXSLVWDNLQJVWHSVWRHIIHFWLYHO\DQGHI¿FLHQWO\DGGUHVVWKHVHLVVXHV*XLGHGE\LWV',&PHGLXPWHUPPDQDJHPHQWSODQZKLFKFRPPHQFHGLQ¿VFDO\HDUDQGE\LWVORQJWHUPJURZWKVFHQDULRWKH*URXSZLOOFRQWLQXHZRUNLQJWRHQVXUHWKDWWKHVHHIIRUWVDUHEHQH¿FLDOWRWKHPDQDJHPHQWRILWVEXVLQHVVHVDQGWKDWWKH\UHVSRQGWRWKHH[SHFWDWLRQVRIVWDNHKROGHUV

(1) Materiality Analysis Process1

Abstraction of Issues',&DEVWUDFWHGLVVXHVRISDUWLFXODUVLJQL¿FDQFHIRUWKH',&*URXSEDVHGRQWKH*OREDO5HSRUWLQJ,QLWLDWLYH *5, ¶V*6XVWDLQDELOLW\
5HSRUWLQJ*XLGHOLQHVLWVRZQVXVWDLQDELOLW\WKHPHV *URXSVXVWDLQDELOLW\LQLWLDWLYHVWDNHLQWRDFFRXQW,62 DQGLVVXHV
delineated in DIC108, The DIC WAY or added by Sustainability Committee members, which it divided into three groupings:(QYLURQPHQW ( VRFLHW\ 6 DQGJRYHUQDQFH LQFOXGLQJHFRQRPLFLVVXHV  * 

2Materiality Analysis

Sustainability Committee members and heads of business units that spearhead the implementation of initiatives related tosustainability themes played a central role in assessing the materiality of the abstracted issues. This assessment was carried out
from the twin perspectives of importance to DIC Group businesses and importance to stakeholders. Based on this, and having
reviewed the results of assessments conducted by senior management at Group business units in the United States, Asia andelsewhere, the Company determined materiality for the DIC Group.
(a) Material importance to DIC Group businesses
DIC assessed issues with the potential for current or future impact on DIC as an organization, giving consideration to bothpotential risks and business opportunities.
(b) Material importance to stakeholders
7KH',&*URXSUHFRJQL]HV¿YHNH\VWDNHKROGHUJURXSV FXVWRPHUVVXSSOLHUVORFDOFRPPXQLWLHVDQGVRFLHW\HPSOR\HHVDQG
LQYHVWRUV $VVHVVPHQWVORRNHGDWOHYHORILQWHUHVWRQWKHSDUWRIVWDNHKROGHUVDQGSRWHQWLDOLPSDFWWith the aim of accurately identifying challenges for individual business units, DIC began by analyzing materiality for one of its
core businesses. The Company is currently conducting materiality analysis for the Group as a whole.

(2) The DIC Group’s Materiality Matrix',&KDVRUJDQL]HGWKHLVVXHVDEVWUDFWHGDQGDVVHVVHGWKURXJKWKHSURFHVVRXWOLQHGDERYHLQWR',&JHQHUDOPDWHULDOLW\categories, as shown in the table below. The Company plans to periodically review and amend its analysis of materiality while
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The DIC Group’s 22 Materiality Categories
Environment (E)Ɣ Practical application of measures to reduce environmental impact
Ɣ Contribution to the realization of a low-carbon society
Ɣ Promotion of products and services that contribute to environmental protection

Society (S)Ɣ Ability to foster and strengthen global human resourcesƔ Promotion of diversity
Ɣ Respect for human rights
Ɣ Efforts to address needs engendered by an aging society and falling birthrates

Ɣ Promotion of occupational health and safety and consumer healthƔ Contributing to colorful and comfortable lifestyles
Ɣ Harmony with and contribution to society
Ɣ Enhancement of brand strength/reputation (evaluation)

Ɣ Response to the growth of digital businessesƔ Response to economic globalization/efforts to reinforce governanceƔ Promotion of supply chain management
Ɣ Improvement of quality management capabilities
Ɣ Efforts to increase productivity
Ɣ Efforts to reinforce marketingƔ Provision of solutions
Ɣ Innovation through compoundingƔ Efforts to strengthen global technology development capabilitiesƔ Creation of next-generation businesses
Ɣ Promotion of open innovation

Governance(including economic issues) (G)DIC Report 201633

Compliance%DVLF7KHPHV7RZDUG)DLUDQG7UDQVSDUHQW&RUSRUDWH$FWLYLWLHV
Goals and Achievements of Major Initiatives (YDOXDWLRQVDUHEDVHGRQVHOIHYDOXDWLRQVRIFXUUHQWSURJUHVV.H\★★★ = Excellent; ★★ 6DWLVIDFWRU\★ 6WLOOQHHGVZRUN
Objectives of initiatives

Goals for fiscal year 2015

Achievements in fiscal year 2015

Evaluation

Goals for fiscal year 2016

Enhance awareness ofcompliance.

Hold presentations to explain the DIC
Group Code of Business Conduct inlocal languages and set up an e-learning
program to educate employees about
the code.

Presentations to explain the DIC Group Codeof Business Conduct were held at overseas
Group companies in local languages.
Regarding an e-learning program to educate
employees about the code, an independent
subcontractor was chosen and terms wereconfirmed.

★★

Create and commence implementation of a
DIC Group Code of Business Conduct
e-learning program. Create and commence
implementation of a proposal for responding toJapan’s Corporate Governance Code.

Conduct business fairly.

Continue to provide legal training pertaining toantitrust and anti-corruption legislation andestablish a system to confirm compliance.

Legal training pertaining to compliance withantitrust and anti-corruption legislation washeld on a continuous basis at overseas Group
companies.

★★

Eliminate violations of antitrust, anti-corruption
and other key legislation.

Basic Approach to Compliance&RPSOLDQFHLQWKH',&*URXSHQFRPSDVVHVQRWRQO\REH\LQJODZVEXWDOVRDFWLQJLQDPDQQHUWKDWLVLQNHHSLQJZLWKVRFLDOQRUPVDQG
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ZLWKQDWLRQDOODZVDQGLQWHUQDWLRQDOUXOHVEXWDOVRSUHVHQWVSULQFLSOHVHVVHQWLDOWRWKHSURIHVVLRQDOFRQGXFWRI',&*URXSHPSOR\HHV7KH',&*URXS&RGHRI%XVLQHVV&RQGXFWKDVVLQFHEHHQWUDQVODWHGLQWRGLIIHUHQWODQJXDJHVWRHQVXUHWKDW',&*URXSHPSOR\HHVZRUOGZLGHVKDUHWKH*URXS¶VYDOXHVDQGFRPPLWWKHPVHOYHVWRGRLQJZKDWLVULJKWDVZHOODVWRDFWLQJZLWKFRPPRQVHQVHDQGDQXQGHUVWDQGLQJRILQGLYLGXDOUHVSRQVLELOLWLHVLQDOODVSHFWVRIWKHLUZRUN
',&*URXS&RGHRI%XVLQHVV&RQGXFW WEB http://www.dic-global.com/en/csr/pdf/code_of_business_conduct_en.pdf

10 Principles Essential to Professional Conduct❶ Your Rights as an Employee: Respect, Dignity, Privacy❻ Your Relationship with Customers, Suppliers,and External Third Parties❷ Environment, Safety and Health❸ <RXU5HVSRQVLELOLW\WR$YRLG3RWHQWLDO&RQÁLFWVRIInterest and to Protect Group Property❹ Anti-Corruption and Anti-Bribery Policy❺ Your Relationship with Governments and Government2IÀFLDOV❼ Money Laundering and Anti-Terrorism❽ )RUFHG/DERU&KLOG/DERU&RQÁLFW0LQHUDOV
❾ Insider Trading❿ Proper Accounting and Internal Controls Relating

to Financial Reporting,QLWLDWLYHVWR3URPRWH&RPSOLDQFH,QDGGLWLRQWRWKH',&*URXS&RGHRI%XVLQHVV&RQGXFWWKH*URXSSURPRWHVFRPSOLDQFHWKURXJKWKHIROORZLQJLQLWLDWLYHV
❶ Provision of training focused on legal issues to improve compliance awareness for employees at point of hire, when promoted andbefore overseas transfers❷ $SSRLQWPHQWRIFRPSOLDQFHRI¿FHUVDWDOOUHJLRQDOKHDGTXDUWHUV²',&&RUSRUDWLRQ -DSDQ 6XQ&KHPLFDO&RUSRUDWLRQ WKH$PHULFDVDQG
(XURSH ',& &KLQD &R/WG WKH35& DQG',&$VLD3DFL¿F3WH/WG $VLDDQG2FHDQLD ²WRVSHDUKHDGJOREDOFRPSOLDQFHHIIRUWV
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VRFLDOO\DFFHSWDEOHPDQQHUDIC Report 201634

Compliance(VWDEOLVKLQJDQG2SHUDWLQJD:KLVWOH%ORZLQJ6\VWHP
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also incorporating internal and external opinions, to promptly identify and correct misconduct and other compliance violations as
TXLFNO\DVSRVVLEOH

DIC Group
employees
Japan, other countries/
territories, regions

Director in charge of compliance, Legal Department
External legal firm

Asia–Pacific region

Greater China

Sun Chemical
Corporation

Legal Department
Whistle-Blowing Committee

Whistleblowing
hotlines

Legal Department
Whistle-Blowing Committee

General manager, Legal Department,
CEO, CFO$QWLWUXVWDQG$QWL&RUUXSWLRQ/HJLVODWLRQ
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EXVLQHVVSUDFWLFHV7KH',&*URXS&RGHRI%XVLQHVV&RQGXFWLQFOXGHVUXOHVIRUFRPSO\LQJZLWKDQWLWUXVWOHJLVODWLRQDQGSURKLELWVLQYROYHPHQWLQEULEHU\RUFRUUXSWLRQ6LQFH¿VFDO\HDUWKH*URXSKDVKHOGSUHVHQWDWLRQVUHJDUGLQJDQWLWUXVWDQGDQWL
corruption legislation for relevant employees to ensure strict compliance with the laws of the countries and territories in which it
RSHUDWHV

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RIWKH',&*URXS¶V&RPSOLDQFHZLWK-DSDQ¶V$FWDJDLQVW'HOD\LQ3D\PHQWRI6XEFRQWUDFW3URFHHGV(WFWR6XEFRQWUDFWRUVDQGVWDQGDUGL]HGDXGLWSURFHGXUHVWKHUHE\FUHDWLQJDIUDPHZRUNIRUFRQGXFWLQJDXGLWVLQDPRUHHI¿FLHQWPDQQHU7KH*URXS
DOVRHQFRXUDJHGHPSOR\HHVLQUHODWHGSRVLWLRQVWRSDUWLFLSDWHLQSURJUDPVVSRQVRUHGE\H[WHUQDORUJDQL]DWLRQVLQFOXGLQJDZRUNVKRSRQSURPRWLQJDGKHUHQFHWRWKH$FWVSRQVRUHGE\WKH-DSDQ)DLU7UDGH&RPPLVVLRQDQGWKH6PDOODQG0HGLXP(QWHUSULVH$JHQF\

DIC Report 2016

35

Risk Management
Basic Themes

Reducing Business Risks and Preventing the Recurrence of Incidents*RDOVDQG$FKLHYHPHQWVRI0DMRU,QLWLDWLYHV (YDOXDWLRQVDUHEDVHGRQVHOIHYDOXDWLRQVRIFXUUHQWSURJUHVV.H\★★★ ([FHOOHQW★★ 6DWLVIDFWRU\★ 6WLOOQHHGVZRUN
Objectives of initiatives

Ensure business continuity for the',&*URXS

Goals for fiscal year 2015

Achievements in fiscal year 2015

Encourage awareness of the newrisk management policy across
WKH',&*URXS([SORUHUHDOLVWLF
and effective ways to operate therisk management system.
 (QVXUHSURGXFWGLYLVLRQ%&3V
align with systematic training
based on task force responsemanuals.

 Took ever y oppor tunit y to raiseawareness of r isk management
policy and system at all plants andGroup companies and elsewhere in
the organization.
The Risk Management Subcommittee
assigned a risk owner to each of 15
risks identif ied to under takemeasures. Reduced risks in many
themes.
)RUHDFKSURGXFWUHQHZHG%&3Vand undertook training and otheractivities.

Evaluation

Goals for fiscal year 2016★★

)RVWHUULVNPDQDJHPHQWIRUHDFK*URXSFRPSDQ\PDLQO\WKURXJKWKH
Risk Management Subcommittee.
5HJDUGLQJJRYHUQDQFHDWVXEVLGLDULHVSUHSDUHDV\VWHPWKDWLQFRUSRrates internal controls.
 &RQWLQXHWRSUHSDUHDQGUHQHZ
%&3VDQGLPSOHPHQWWUDLQLQJWRHQKDQFHYLDELOLW\3UHSDUHDQGUHQHZ
manuals and plan and undertake
various training programs to ensurethat the headquarters crisis management system functions effectively.

Basic Approach to Risk Management
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environment and the diversification of risks, and of swiftly mitigating damage. The Group recognizes risks in three principal
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EHKDQGOHGE\WKHUHOHYDQWGLYLVLRQGHSDUWPHQWV7KH5LVN0DQDJHPHQW6XEFRPPLWWHHZKLFKLVDVXERUGLQDWHFRPPLWWHHRIWKH
6XVWDLQDELOLW\&RPPLWWHHRYHUVHHVPDQDJHPHQWRIWKHVHULVNUHVSRQVHV

5LVN0DQDJHPHQW3ROLF\
7KH',&*URXSILUVWLQWURGXFHGULVNPDQDJHPHQWLQLWLDWLYHVLQE\FUHDWLQJWKH&RPSOLDQFH&RPPLWWHHDQGVHWWLQJXSUHSRUWLQJFKDQQHOV)ROORZLQJWKHHVWDEOLVKPHQWRIWKH5LVN0DQDJHPHQW6XEFRPPLWWHHLQ0D\WKH*URXSXQGHUWRRNLQLWLDWLYHVDLPHGDWUHVSRQGLQJWRVHULRXVQDWXUDOGLVDVWHUVDQGSURPRWLQJEXVLQHVVFRQWLQXLW\PDQDJHPHQW %&0 6LQFH¿VFDO\HDUWKH5LVN0DQDJHPHQW6XEFRPPLWWHHKDVIRFXVHGRQHVWDEOLVKLQJDULVNPDQDJHPHQWSROLF\DQGDULVNPDQDJHPHQW
V\VWHPHIIRUWVWKDWDUHGHVLJQHGWRIXUWKHUHQKDQFHFRUSRUDWHYDOXH*URXSZLGH,QDELGWRHQVXUHWKHHIIHFWLYHDQGVXVWDLQDEOH
implementation of initiatives, in January 2015 the Group introduced a newly formulated risk management policy.

Risk Management Policy❶ Risk management objectives

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GLYHUVL¿FDWLRQRIULVNVDQGRIVZLIWO\PLWLJDWLQJGDPDJH❷ 'HÀQLWLRQRIULVNDQGULVNPDQDJHPHQW

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5LVNPDQDJHPHQW,QLWLDWLYHVWRHQKDQFHFRUSRUDWHYDOXHE\PDQDJLQJDOOULVNVWRWKH',&*URXSIURPD*URXSZLGHSHUVSHFWLYH
❸ Risk management initiatives

7KH',&*URXSFRPSUHKHQVLYHO\HYDOXDWHVDOOULVNVEDVHGRQWKHLUSRWHQWLDOLPSDFWRQRSHUDWLRQVDQGOLNHOLKRRGRIRFFXUULQJDPRQJRWKHUVDQGSULRULWL]HVsystematic and effective responses.
7KH',&*URXSFRQVWUXFWVDQGYDOLGDWHVULVNPDQDJHPHQWV\VWHPVE\UHSHDWLQJWKHSODQ±GR±FKHFN±DFW 3'&$ F\FOH7KH5LVN0DQDJHPHQW6XEFRPPLWWHHVKDUHVUHVSRQVLELOLWLHVZLWKWKHULVNPDQDJHPHQWWHDPVRILQGLYLGXDOEXVLQHVVHVWRSURSHUO\GHSOR\ULVNPHDVXUHVZLWKLQWKH
',&*URXS7KHVXEFRPPLWWHUHJXODUO\UHSRUWVRQLWVDFWLYLWLHVWRWKH6XVWDLQDELOLW\&RPPLWWHHDIC Report 2016

36

Risk Management

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Risk questionnaires are distributed to directors
January: Ļ7KH5LVN0DQDJHPHQWSubcommittee creates a risk map
February: The subcommittee determines priority risks and risk ownershipĻ5LVNRZQHUVIRUPXODWHUHVSRQVHPHDVXUHVMarch: $OLVWRIUHVSRQVHPHDVXUHVLVSUHSDUHG
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production, development, investment and procurement.

8QOLNHULVNVWKDWVKRXOGEHGHDOWZLWKE\UHOHYDQWdepartments, these are risks that affect all Group
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management
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circumstances.

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on the aggregated results ofD TXHVWLRQ ULVN VXUYH\ RI
H[HFXWLYHRI¿FHUVThe 15 most crucial risks are
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Conference.

❶ &XUUHQF\DQGLQWHUHVWUDWHÀXFWXDWLRQV❼ 'HFOLQHLQGHEWUDWLQJV❷ Intellectual property❽ Information security❸ *RYHUQDQFHRIVXEVLGLDULHV❾ 2SHUDWLRQVRIRYHUVHDVEXVLQHVVXQLWV

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High

DIC Report 2016

37

Risk Management%&0'UDZLQJRQOHVVRQVIURPWKH*UHDW(DVW-DSDQ(DUWKTXDNHWKH',&*URXSQRZDFFRXQWVIRUDOOULVNVZLWKWKHSRWHQWLDOWRLQWHUUXSWEXVLQHVVFRQWLQXLW\WKURXJK%&07KHVHULVNVLQFOXGH QDWXUDOGLVDVWHUVVXFKDVODUJHHDUWKTXDNHVDQGIORRGVLQÀXHQ]DDQGRWKHUSDQGHPLFVH[SORVLRQV¿UHVOHDNVDQGRWKHUSODQWDFFLGHQWVDQGPDMRUFRUSRUDWHVFDQGDOV7KH*URXSFRPSUHKHQVLYHO\HVWLPDWHVWKHSUREDELOLW\RIHDFKULVNDQGLWVLPSDFWRQPDQDJHPHQWSULRULWL]LQJUHVSRQVHPHDVXUHVIRUPRUHVLJQL¿FDQWULVNV,Q-DSDQZKLFKLVFXUUHQWO\H[SHULHQFLQJDQDFWLYHSHULRGLQWHUPVRIYROFDQLFDQGVHLVPLFDFWLYLW\WKH*URXSGHSOR\VRQJRLQJQDWXUDOGLVDVWHUUHVSRQVHPHDVXUHV7KHVHLQFOXGHPDLQWDLQLQJKHDGTXDUWHUVIXQFWLRQVDQGWDVNIRUFHIUDPHZRUNVXSSRUWPHDVXUHVIRUGLVDVWHUVWULFNHQDUHDVDQGSURGXFLQJDQGUHQHZLQJ%&3VIRUHDFKNH\SURGXFW7KH*URXSIDFLOLWDWHV
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VOICE from the DIC Group:HDUHDGYDQFLQJ%&3LQLWLDWLYHVE\KROGLQJUHVSRQVHVLPXODWLRQPHHWLQJV
)RUDORQJWLPHWKH6DLWDPD3ODQWZDVWKH*URXS¶VRQO\IDFLOLW\SURGXFLQJ/&V,Q1RYHPEHUZHHVWDEOLVKHGDVHFRQG/&SURGXFWLRQIDFLOLW\LQ4LQJGDRLQ
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LQXVHDWWKH6DLWDPD3ODQWKHHGLQJDGYLFHWKDWZKDWLVLPSRUWDQWLVWRNHHSDQWLFLSDWLQJULVNVDQGFRQVLGHULQJHIIHFWLYHZD\VWRDGGUHVVWKHP:HDUHHQGHDYRULQJWRHPEHG%&3DFWLYLWLHVDVSDUWRIWKHFXOWXUHDWWKH4LQJGDR3ODQWE\FRQGXFWLQJUHJXODUPHHWLQJVWRVLPXODWHDGGUHVVLQJLQGLYLGXDOULVNVManager in charge of global production, Liquid Crystal Material Supply Department, Saitama Plant Takumi Yanagida

DIC Report 201638

Information Security
Basic Themes

Initiatives to Ensure Information Security
Goals and Achievements of Major Initiatives Evaluations are based on self-evaluations of current progress. Key: ★★★ = Excellent; ★★ = Satisfactory; ★ = Still needs work
Objectives of initiatives

Establish a global information security
framework.

Goals for fiscal year 2015

Achievements in fiscal year 2015

・In the Asia–Pacific region and Greater ・Regional headquarters in the Asia–Pacificregion completed the deployment of rules andChina, have regional headquarters deploy
guidelines for the subsidiaries they oversee.
rules and guidelines for the subsidiaries
The deployment is expanding in Greater China.
they oversee.
・Identify fits and gaps for basic information ・A comparative study of information security
rules, standards and promotion systems
security policies between the Sun
between the Sun Chemical Group and DIC is
Chemical Group and DIC and consider
currently under way.
ways to deploy policies.
・Maintain/improve rules and guidelines in ・ICT-related usage rules, which are ancillary
to guidelines in Japan, were revised to reflect
Japan by considering revisions andchanges in the business environment.
making updates to key rules.

Evaluation

Goals for fiscal year 2016★★

・Support ongoing efforts to uphold anddeploy information security management
configurations for the Asia–Pacific region
and Greater China.
・Promote ongoing measures to achieve
consistency between the Sun Chemical
and DIC Group information security
guidelines and management configurations
and encourage application.
・Revise and enforce rules that respond to
the growth of cloud computing and othernew ways of sharing information.

Presentations
for employees

Basic Approach to Information Security
The DIC Group has positioned information security as a key management priority, andestablished a 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 toits ability to conduct business. In line with this policy, the Group formulated and deployed
FRQ¿GHQWLDOLQIRUPDWLRQPDQDJHPHQWUHJXODWLRQVDQGLQIRUPDWLRQPDQDJHPHQWJXLGHOLQHVThese were prepared to ensure that directors and employees properly use the Group’s
information assets in the course of business and appropriately handle confidential
information. The Group will pursue continued improvement by conducting internal audits
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Measures tocombat software
vulnerabilities

Further
improvements

Computervirus measures

Cloud computing
responses

Basic Policy on Information Security
Basic policy
Confidential information management regulations
Preparation of
response measures
Information management guidelines
Implementation proceduresInternal audits

Globally Maintaining and Enhancing Information Security
7KH',&*URXS¶VUHJLRQDOKHDGTXDUWHUVIRUWKH$VLD±3DFL¿FUHJLRQDQG*UHDWHU&KLQDZKLFKDUHORFDWHGUHVSHFWLYHO\LQ6LQJDSRUHDQGLQWKH35&DUH
VSHDUKHDGLQJWKHGHSOR\PHQWRIFRQ¿GHQWLDOLQIRUPDWLRQPDQDJHPHQWUHJXODWLRQVDQGLQIRUPDWLRQPDQDJHPHQWJXLGHOLQHVDQGGHYHORSLQJLQIRUPDWLRQmanagement systems. In Europe and the United States, the DIC Group is reinforcing information security by sharing IT infrastructure risks, while inJapan the Group is updating rules to address security threats arising from cloud computing, smart devices* and other emerging technologies, andintends to continue revising rules in light of changing work practices and other developments attributable to the progress of digitization. Preparations arealso under way to deploy an e-learning program regarding the information management guidelines Groupwide.
* “Smart device” is a generic term for information devices other than PCs, mainframe computers, workstations and other conventional computing platforms.

Safeguarding Information Security Environments in Asia and Oceania,Q¿VFDO\HDUWKH',&*URXSEHJDQEXLOGLQJDXQL¿HGVHFXULW\V\VWHPDFURVV$VLDDQG2FHDQLDZLWKWKHDLPRIDPRQJ
others, combating computer viruses and software vulnerabilities. Through these and other efforts, the Group continues working
to safeguard information by reinforcing information infrastructure.

VOICE from the DIC GroupOur efforts focus on enhancing information security in Southeast Asia and Oceania.
I help enhance IT environments in Southeast Asia and Oceania, including maintaining and improving information security,
consolidating IT infrastructure and further aligning and expanding the operational and maintenance structure of our SAP system.
%HFDXVHZHDUHLQFKDUJHRIRYHUVHHLQJVXEVLGLDULHVLQWKHUHJLRQZHVRXJKWWRGHSOR\FRQ¿GHQWLDOLQIRUPDWLRQPDQDJHPHQW
regulations, as well as information management guidelines, among regional subsidiaries. As a regional headquarters that
FRRUGLQDWHVVXEVLGLDULHVLQFRXQWULHVZLWKGLYHUVHFXOWXUHVDQGFXVWRPVZHZLOOFRQWLQXHZRUNLQJWRLPSURYHLQIRUPDWLRQ
security by, among others, unifying security measures in the region.
Regional Chief Information Oﬃcer, DIC Asia Paciﬁc Pte Ltd

DIC Report 2016

39

Hidefumi ItoEnvironment, Safety and Health (ESH)&RUHDQG&DWHJRU\6SHFL¿F7KHPHV

Promoting Responsible Care
Basic Philosophy
As a company that manufactures and sells chemical substances, DIC sets standardized safety
regulations for ESH initiatives. The Company is working to exceed regulatory standards and fully
disclose results. Annual measures augment its core policy.

Initiatives to Date
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 management in January 2006 by signing the CEO’s Declarationof Support for the Responsible Care Global Charter, the Company has promoted constantimprovements. In 2014, DIC renamed its Principle and Policy for the Environment, Safety and
Health the Policy for the Environment, Safety and Health. The name was subsequently revised
to the Environment, Safety and Health Policy.

DIC is a signator y to the International
Council of Chemical Associations’
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 thatcare for the environment, safety and health is fundamental to the management of the Company. DIC is committed to the conceptof sustainable development in all aspects of its businesses and contributes 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, we prioritize 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.

Applying the PDCA Cycle to Eight Responsible Care Codes

The DIC Group manages its Responsible Care initiatives in a uniform manner using a management system comprising eight codes, six of which are
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listed). In undertaking these initiatives, DIC and DIC Group companies leverage the Group’s ISO 14001-certifed environmental management system.
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and safety management systems through ongoing efforts to enhance their Responsible Care capabilities.
❶ Environmental protection (continuous reduction of chemical emissions)❷ 3URFHVVVDIHW\DQGGLVDVWHUSUHYHQWLRQ SUHYHQWLRQRI¿UHVH[SORVLRQVDQGWKHGLVFKDUJHRIFKHPLFDOV❸ Occupational safety and health (protection of the safety and health of employees)❹ Chemical and product safety (management of risks associated with chemicals)❺ Safety in logistics (reduction of chemical risks associated with the distribution of chemicals)❻ Dialogue with society (communication with local communities regarding the environment, safety and health)❼ Compliance (strengthening export security control and detection framework and fostering of officers

responsible for chemical substance regulatory information)❽ Management system (for unifying the above codes as a system)

Reviews
conducted
bymanagement

Act

Check

Responsible Care
Initiatives
Improve

Do

Plan

Formulateplans

DIC Report 201640

Implement/
manageESH

Annual Activity Plan

The DIC Group formulates annual Responsible Care activity plans, translating them into English and Chinese. Based on the activity
plan for fiscal year 2015, the Group ensures specific activity plans for Group companies operating in each region to promote
Responsible Care initiatives and thereby contribute to an environment-oriented society through its manufacturing activities.
Initiatives in Fiscal Year 2015

During the term, the DIC Group engaged in Responsible Care initiatives based on the following plan.

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ƕOccupational health and safety/disaster prevention
In line with the DIC Group’s ultimate objective, which remains the achievement of “zero occupational accidents,” set targets for reducing the incidence of occupational
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ƕEnvironmental protection
In line with the DIC Group’s goal of reducing its impact on the environment, set targets for and implement initiatives aimed at
UHGXFLQJHQYLURQPHQWDOLPSDFWRQDUHJLRQDOEDVLV -DSDQ6XQ&KHPLFDO*URXS*UHDWHU&KLQDDQGWKH$VLD±3DFL¿FUHJLRQ ƕSafety in logistics
Promote the provision of information pertinent to the safe transport of chemical substances.
ƕChemical substance and product safety
Provide stakeholders with information to facilitate the appropriate handling of products throughout their life cycles.
ƕDialogue with stakeholders
Report on the results of the DIC Group’s Responsible Care initiatives via the DIC Report.
ƕManagement system
Make use of the PDCA cycle in promoting Responsible Care initiatives .
ƕCompliance
Comply with environmental and ESH- and quality-related laws, rules and agreements.

Framework for Promoting Responsible Care

Framework for Promoting Responsible Care
Product divisions

Each year, the DIC Group defines priority issues
to address and uses the PDCA cycle in voluntary
initiatives at the Group company, plant andresearch laboratory levels. The Responsible Care
Department provides support for these initiatives toadvance their progress and conducts regular audits
to ensure compliance and improve safety andenvironmental performance.

Production Administrative Division

Persons in charge of
Responsible Care

Production and R&D(plants and R&D centers)
Safety and Environment
Group

Implementation

Technical Administrative Division

Responsible Care Department
ESH audits

Responsible Care auditing framework

Responsible Care implementation framework

Support for Group Company Initiatives

The Responsible Care Department provides wide-ranging support to domestic and overseas Group companies (a total of 51
business sites), regardless of size, the goal being to enhance Responsible Care initiatives Groupwide.

DIC Report 2016

41

ESH

Information Disclosure and Dialogue with Stakeholders

The DIC Group strives to increase the transparency of its activities through the active disclosure of information and at the same time to raise
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websites, the DIC Report and other media, as well as actively engaging with society, including through the holding of community meetings.

Responsible Care Auditing
Basic Approach
Responsible Care Department specialists with expertise, experience and auditing capabilities regularly collaborate with executive
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in ESH audits at many sites each year to enhance Responsible Care performance across the DIC Group.
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and work together to enhance the effectiveness of Responsible Care initiatives.

Audits in Fiscal Year 2015

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domestic consolidated Group companies since fiscal year 2014 to verify efforts and support improvement activities. In fiscal year
2015, the Group conducted Responsible Care audits at 13 domestic Group companies. The audits were equivalent to those for parent
company sites. It also conducted regular safety and environment audits at nine DIC sites and four DIC Graphics sites to strengthen
collaboration between domestic Group companies and verify Responsible Care activities.
Similar efforts are also under way at overseas Group companies. Audits have become more stringent every year. Fiscal year 2015
saw Responsible Care audits at 14 companies in Greater China and three in the Republic of Korea (ROK). As well as assessing theoperational status of management systems, the audits included a greatly improved self-assessment checklist that covered 35 questions
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The Group invited ESH managers spearheading Responsible Care activities to DIC headquarters to enhance their skills, notably by
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of environmental regulations overseas*.
* A violation with a penalty exceeding $10,000

Outline of ESH Audits for Fiscal Year 2015
Japan
DIC

9

4

sites

Total:

A far more detailed self-assessment
checklist for Taiwan (Greater China)

DIC (Taiwan) Ltd. and
DIC Graphics Chia Lung Corp.

Overseas
Other Group companies

DIC Graphics

13

sites

26

sites

sites

Greater China

14

ROK

3

companies

Total:

33

16

AuditsAudits equivalent tothose at parent company sites

Reinforcing audits
every year

We are seeing clear improvements among DIC Group companies.
We have expanded the deployment of ESH management systems at companies, previously limited to Japan, to DIC Group
companies overseas, and have enhanced benchmarks to facilitate objective comparisons. In ESH audits, we encourage
improvements by verifying self-assessments from third-party perspectives. Group companies have clearly progressed solidly
over the past few years in terms of awareness and behavior. We look forward to working with colleagues across the Group to
set ever-higher targets and respond to society’s expectations.
Manager in charge of environment and safety, Responsible Care Department Takeshi Hosomi

DIC Report 2016

companies (of 17)

companies

AuditsVOICE from the DIC Group42

Asia–Pacific region

companies

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Objectives of initiatives

Goals for fiscal year 2015

Achievements in fiscal year 2015

Evaluation

Goals for fiscal year 2016

Ensure occupational safety andhealth. Promote hands-on safety
training.

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of risk assessment skills.
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safety training categories andenhance occupational safety andhealth training.

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stepped up training for lecturers.

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group meetings.

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gather to take turns reading passages from a
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Encourage the safety and
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hands-on safety training.
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management efforts.

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support.

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support continued.

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Prioritizing Safe Operations

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43

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Basic Approach$VDUHVSRQVLEOHPHPEHURIVRFLHW\DQGDFRPSDQ\WKDWPDQXIDFWXUHVDQGVHOOVFKHPLFDOVXEVWDQFHVWKH',&*URXSUHFRJQL]HVWKDWSURSHUFRQVLGHUDWLRQIRU(6+LVIXQGDPHQWDOWRLWVRSHUDWLRQVDQGZRUNVWRLQFRUSRUDWHWKLVDZDUHQHVVLQWRDOORILWVEXVLQHVVDFWLYLWLHV*XLGHGE\WKLVSKLORVRSK\WKH',&*URXSDQDO\]HVDFFLGHQWVDQGFRPPXQLFDWHVLQIRUPDWLRQWKXVGHULYHGEDVHGRQZKLFKLWXQGHUWDNHVULVNDVVHVVPHQWZLWKWKHDLPRIHQVXULQJRFFXSDWLRQDOVDIHW\DQGKHDOWK3ULQFLSDO,QLWLDWLYHVLQ)LVFDO<HDU
1 Making Regional Data Visible with Monthly Reports
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2 Reducing Risks%\XQGHUVWDQGLQJSRWHQWLDOULVNVLQSURGXFWLRQSURFHVVHVIDFLOLWLHVDQGGHYLFHVDQGWKHKD]DUGVRIFKHPLFDOVXEVWDQFHVWKH',&*URXSV\VWHPDWLFDOO\SUHSDUHGLQLWLDWLYHVWRSUHYHQWDFFLGHQWVDQGRFFXSDWLRQDOLQMXULHV7KH*URXSDOVRFUHDWHVULVNDVVHVVPHQWJXLGHOLQHVZKHQGHSOR\LQJQHZRUPRGL¿HGHTXLSPHQWRUFKDQJLQJSURGXFWLRQSURFHVVHVWRFRQWLQXHULVNUHGXFWLRQDFWLYLWLHVVOICE from the DIC Group
More visible data should increase awareness.
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Senior Manager, Responsible Care Department

DIC Report 201644

Masashi Hayakawa

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3 Training Skilled Safety Personnel to Predict Risks
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Principles of Safe Conduct and Environment and Safety Guidelines for the R&D DepartmentDVZHOODVVDIHW\GDWDVKHHWV 6'6V 
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4 Promoting Hands-On Safety Training+DQGVRQVDIHW\WUDLQLQJLVDQHIIHFWLYHDOWHUQDWLYHWRFODVVURRPEDVHGOHDUQLQJWKDWXVHVDFWXDOHTXLSPHQWWRVLPXODWHSRWHQWLDOULVNVLQWKHZRUNSODFHWKHUHE\KHLJKWHQLQJHPSOR\HHV¶DZDUHQHVVRIWKHLPSRUWDQFHRISURSHUVDIHW\,Q-DSDQWKH',&*URXSLQLWLDWHGDIXOOÀHGJHGKDQGVRQVDIHW\WUDLQLQJSURJUDPLQDQGKDVRIIHUHGWUDLQLQJWKDWEDVHVVLPXODWLRQVRQSUHYLRXVDFFLGHQWVLQFOXGLQJWKRVHLQYROYLQJEHLQJFDXJKWLQPDFKLQHU\HOHFWULFDOGLVFKDUJHVRU¿UHVIURPVWDWLFHOHFWULFLW\,QWKH*URXSRSHQHGWKH6DLWDPD+DQGV2Q6DIHW\7UDLQLQJ&HQWHUDIDFLOLW\ERDVWLQJHTXLSPHQWWKDWDOORZVWKH
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Number of Hands-On Safety Training Participants in Fiscal Year 2015
Domestic DIC Group(held 22 times)

Greater China(four companies)$VLD²3DFLÀFUHJLRQ
(four companies)

380

347

388
DIC Report 2016

45

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0RELOHOHFWXUHLQ4LQJGDRVOICE from the DIC Group
Understanding principles enables us to make independent improvements.
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DIC Report 2016

46

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Status of Occupational Accidents,Q¿VFDO\HDUWKHQXPEHURIRFFXSDWLRQDODFFLGHQWVDW',&DQG
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HIIHFWLYHQHVVRILWVVDIHW\LQLWLDWLYHV 7KHUHZDVRQHIDWDODFFLGHQW
DWD',&*URXSXQLWRYHUVHDV7KH*URXSZLOOFRQWLQXHWRSURPRWHRFFXSDWLRQDOVDIHW\DQGKHDOWKLQLWLDWLYHVJRLQJIRUZDUGZLWKWKHDLP
RISUHYHQWLQJWKHRFFXUUHQFHRIRFFXSDWLRQDODFFLGHQWV7KH'D\V$ZD\5HVWULFWLRQVDQG7UDQVIHUV '$57 UDWHLVFDOFXODWHGDV1(+[
 1 WRWDOGD\VDZD\IURPZRUN(+ WRWDODQQXDOKRXUVZRUNHGE\DOOHPSOR\HHV7KH
KRXUVLQWKHIRUPXODUHSUHVHQWVWKHHTXLYDOHQWRIHPSOR\HHVZRUNLQJKRXUVSHUZHHNIRUZHHNVSHU\HDU 

Frequency Rate',&',&*URXS -DSDQ',&*URXS *OREDO

FY2013 FY2014 FY2015 FY2013 FY2014 FY2015 FY2013 FY2014 FY2015

1XPEHURIZRUNGD\VORVW

84

80)UHTXHQF\UDWH 0.338 0.000 0.181 0.622 0.429 0.556--

2.133 2.375

6HYHULW\UDWH 0.001 0.000 0.005 0.018 0.006 0.018--'$57UDWH

2

0

3.5

1

0.1

1.3

6

4

16.0

9.6

5

6.2

--

88

--

17.8 20.3 21.8

Severity Rate

1.50

0.15

1.00

0.10

0.50

0.00

Workdays Lost Due to Occupational Accidents (Fiscal Year 2013–Fiscal Year 2015)

0.05

09

10

11

12

13

14

DIC

JCIA

Overall manufacturing industry

15

Frequency rate: This expresses the frequency of accidents resulting in lost time in a fiscal year,
calculated as the number of deaths or injuries per million work hours.
Frequency rate ＝

Number of occupational deaths or injuries
Total work hours

0.00

09

(Fiscal year)

× 1,000,000

A frequency rate of 1.0 means one occupational accident resulting in workdays lost in one
year at a site with 500 people.

10

11

12

DIC

JCIA

Overall manufacturing industry

13

14

15

(Fiscal year)

Severity rate: This expresses the number of workdays lost due to occupational accidents per
1,000 work hours.
Severity rate ＝Total number of workdays lost
Total work hours

× 1,000

A severity rate of 0.1 means 100 workdays lost in one year at a site with 500 people.

Safe Corporate Climate Cultivation Working Group

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Occupational Health

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47

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safety information

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2

Safe design
Process risk
management

Operation

MaintenanceManagementof change

Construction

Disaster and accident
predictions and responses

Education

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48

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VOICE from the DIC Group:HDUHGUDZLQJRQ',&·VH[SHUWLVHLQLPSURYLQJVDIHW\FRPSHWHQF\WRDVVLVWFRPSDQLHVLQRWKHULQGXVWULHV$VDVXSSRUWLQJPHPEHURIWKH6DIHW\&RPSHWHQF\(QKDQFHPHQW&HQWHU',&KDVSDUWLFLSDWHGLQWKHHVWDEOLVKPHQWDQG
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Senior Manager, Responsible Care Department Yasuaki Ohira

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49

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3UHYHQWLQJ*OREDO:DUPLQJ
Goals and Achievements of Major Initiatives Evaluations are based on self-evaluations of current progress. Key: ★★★ = Excellent; ★★ = Satisfactory; ★ = Still needs work
Objectives of initiatives

Reduce emissions of CO 2 at sites(Scope 1 and 2).

Reduce emissions of CO 2 whentransporting goods (Scope 3).

Goals for fiscal year 2015

Achievements in fiscal year 2015 Evaluation

DIC Group Reduce energy consumption perunit of production 1.0% from thefiscal year 2014 level.
 Reduce CO 2 emissions 1.0% fromthe fiscal year 2014 level.

DIC Group Increased 1.0% from a year
earlier (lowered by 1.1% inJapan)
 Unchanged (down 2.4% inJapan)DIC Group (Japan)
 Promote modal shift and improvetransport efficiency with the aim of
reducing energy consumed perunit of production.
 Reduce CO2 emissions from logistics.

DIC Group (Japan)
 Unchanged
 Increased 3.0%

Goals for fiscal year 2016
DIC Group Reduce CO 2 consumption per metric tonne ofproduction by 1.0% from the fiscal year 2015 level.
 Reduce CO 2 emissions by 1.0% from the fiscal
year 2015 level.

★

★

★

★

★

★

DIC Group (Japan)
 Reduce CO 2 consumption per metric tonne ofproduction by 1.0% from the fiscal year 2015 level.
 Reduce CO 2 emissions by 1.0% from the fiscal
year 2015 level.
 Reduce energy consumption by 1.0% by conserving energy.

DIC Group (Japan)
 Promote modal shif t and improve transpor tefficiency to reduce energy consumed per unit ofproduction.
 Reduce CO 2 emissions from logistics.

Note: )URP¿VFDO\HDUZHLGHQWL¿HGDQGLQFRUSRUDWHGHQHUJ\FRQVXPSWLRQ NLOROLWHUV DQG&22HPLVVLRQV PHWULFWRQQHV 
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Basic Approach&OLPDWHFKDQJHDSULQFLSDOFDXVHRIZKLFKLVJOREDOZDUPLQJLVDQLQFUHDVLQJO\SUHVVLQJLVVXHIRUWKHHQWLUHZRUOG7KH,QWHUJRYHUQPHQWDO3DQHORQ&OLPDWH&KDQJH ,3&& DOHDGLQJVFLHQWL¿FERG\GHGLFDWHGWRWKHDVVHVVPHQWRIFOLPDWHFKDQJHFRQWLQXHVWRXUJHLWVPHPEHUFRXQWULHVWRUHLQIRUFHDQGH[SDQGWKHDSSOLFDWLRQRIFOLPDWHFKDQJH
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LQLWLDWLYHVDLPHGDWUHGXFLQJJUHHQKRXVHJDVHPLVVLRQVIURPLWVSURGXFWLRQIDFLOLWLHVLQLWVDQQXDOVXVWDLQDELOLW\SROLF\IRU¿VFDO\HDU7KH&RPSDQ\LVDOVRFXUUHQWO\LPSOHPHQWLQJLQLWLDWLYHVWRUHGXFHLWVFRQVXPSWLRQRIHQHUJ\DQGWKXVLWVHPLVVLRQVRI&22DVZHOODVSURPRWLQJWKHDFWLYHGLVFORVXUHRIUHODWHGGDWD

❶ Undertake energy-saving initiatives Groupwide❷ Deploy effective strategies through working group activities❸ 2SHUDWHHQHUJ\VDYLQJFRJHQHUDWLRQV\VWHPV FRPELQHGKHDWDQGSRZHUJHQHUDWLQJIDFLOLWLHV❹ (PSOR\HQHUJ\IURPUHQHZDEOHUHVRXUFHV ELRPDVVZLQGSRZHUDQGVRODUSRZHU DWVXLWDEOHVLWHV
❺ Extend energy-saving initiatives to DIC Group companies overseas)UDPHZRUNIRU3URPRWLQJ(QHUJ\6DYLQJ,QLWLDWLYHV
DIC and DIC Group companies in Japan have established energy-saving promotion committees at each of their production and5 'VLWHV&RPPLWWHHDFWLYLWLHVLQFOXGHFRQ¿UPLQJWKHSURJUHVVRILQLWLDWLYHVHQJDJLQJLQGLVFXVVLRQVDQGFRQGXFWLQJSDWUROVDIC has also set up an energy-saving working group comprising members chosen from each production facility that fosters
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combination of site- and Group-level initiatives forms the framework under which the DIC Group works to reduce CO2 emissions.
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50

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1 Energy Consumption and CO2 Emissions by the Global DIC Group
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CO2 Emissions in Fiscal Year 2015 by Region

Global CO2 Emissions in Fiscal Year 2015
Declines in key indicators:
Results of energy-saving initiatives implemented by the DIC Group
Globalproduction volume

Energyconsumption

Energy consumption perunit of production- 2.0％ - 1.0％
657,457

Down

Fiscal year 2014

Asia–Pacificregion0％Americasand Europe

34%

Fiscal year 2015

Global CO2 Emissions and Change
from Base Year (Fiscal Year 2011)（Metric tonnes of CO2）
800,000

100

112

Global Energy Consumption and Change in Energy Consumption
per Unit of Production from Base Year (Fiscal Year 2011)(Kiloliter crude oil equivalent)

102

700,000

102

（％）
120

350,000

100

600,000

98

103

（％）

100

500,000
400,000

60

300,000

40

200,000

110
100

0

70

0

60

14

12

13

14

15 (Fiscal year)

Energy consumption
Change in energy
consumption per unit ofproduction from base year

Note: Energy consumption per unit of production (liters per metric tonne) is
calculated as energy consumption divided by production volume

0

13

from
fiscal year 201480

50,000Change in CO2 emissions
from base year

+1%

90

100,000

20

100,000

120

250,000

150,000

CO2 emissions

101

300,000

200,000
80

12

38%

Breakdown of
CO 2 Emissions in
Fiscal Year
2015

19%

from fiscal year 2014

metric tonnes

Japan

10%

+1.0％

657,152

metric tonnes

Greater China

15 (Fiscal year)

2 Energy Consumption and CO2 Emissions by the DIC Group in Japan
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DIC Report 2016

51

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Energy Consumption and Change in
Energy Consumption Per Unit of Production
from Base Year (Fiscal Year 2005)

DIC Group in Japan
CO2 Emissions and Change
from Base Year (Fiscal Year 2005)

-2.4%
from
fiscal year 2014

（Metric tonnes of CO2 ）400,000

101

96
86

350,000

83

（％）
120

180,000

fromfiscal year 2014

101

80

79

70

75

104

100

78

76

109

（％）

120

106

104

107

120,000

250,000

105

110
100

100,000

60

150,000

106

140,000
80

200,000

114

104

160,000

300,000-2.6%(Kiloliter crude oil equivalent)

90

80,00040

60,000100,000

80

20

50,00040,000

0

0

06

07

CO2 emissions

08

09

10

11

12

Reference: Adjusted CO2 emissions

13

15 (Fiscal year)

1470

20,00060

0Change from base year06

* Adjusted CO 2 emissions (Emissions attributable to electric power use recalculatedusing a fixed CO 2 emissions factor for electric power purchased.)

07

08

Energy consumption

09

10

11

12

13

14

15 (Fiscal year)

Change in energy consumption per unit of production from base year

Factors Contributing to Increase in CO2 Emissions by the DIC Group in Japan in Fiscal Year 2015
Impact on CO2 emissions
 PHWULFWRQQHVChange inweight*Impact of energy-saving initiatives-5,592-2.2％

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reduction in energy consumption.

Reduction of production volume-3,738-1.5％

3URGXFWLRQYROXPHDW',&DQGGRPHVWLFDI¿OLDWHVGURSSHGDQGUHVSHFWLYHO\from the previous year.

Change in CO2 emissions factor for electric power purchased-3,292-1.3％

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SUHYLRXV\HDU,QSDUWLFXODUWKHUHZDVDLPSURYHPHQWLQHPLVVLRQVDW7RN\R(OHFWULF3RZHU&R
,QFZKLFKZDVWKHVRXUFHRIRIWKHHQHUJ\WKDWWKHGRPHVWLF',&*URXSFRQVXPHG

Reduced operation of biomass boilers and others

7,323

2.9％

Increased maintenance of biomass boilers boosted the use of backup boilers that usedfossil fuels.

$GGLWLRQDOLQFOXVLRQRIHQHUJ\FRQVXPSWLRQDW
RI¿FHVDQGUHVHDUFKIDFLOLWLHV

2,689

1.1％

3UHYLRXVO\LGHQWL¿HGDQGLQFRUSRUDWHG&HQWUDO5HVHDUFK/DERUDWRULHVDQGRI¿FHVDQG
UHVHDUFKIDFLOLWLHVZLWKLQSODQWVLWHVDQGQHZO\DGGHGVLWHV

CO2 emissions from non-energy sources

1,615

0.6％

Increased boiler combustion volumes from oil byproducts of production processes.

Boundary changes-3,100-1.2％([FOXGHGIURPVFRSH PHWULFtonnes of CO 2 ĺ)XML/DEHO&R/WGDQG',&)LOWHF,QF
,QFOXGHGLQVFRSH PHWULFWRQQHVRI&2 2 ĺ.-&KHPLFDOV&RUSRUDWLRQOthers-1,958-0.8％Reduction factorĺ&KDQJHLQFRPSRVLWLRQRISURGXFWLRQLWHPVDQGRWKHUV,QFUHDVHIDFWRUĺ,QFUHDVHLQHQHUJ\FRQVXPSWLRQWKDWGLGQRWFRQWULEXWHWRSURGXFWLRQQRWDEO\H[WHQGHGFOHDQURRPÀRRUVSDFH

7RWDO

-6,053-2.4％

FactorNotes* Increase or decrease in percentage of total CO 2HPLVVLRQVIURP¿VFDO\HDU

3 Energy-Saving Initiatives in Japan in Fiscal Year 2015
All plants and R&D sites endeavor to conserve energy through the following initiatives to reduce base load energy consumption and by
DSSO\LQJWKH3'&$F\FOHWRLPSURYHWKHHI¿FLHQF\RISURGXFWLRQPHWKRGVWKHUHE\UHGXFLQJHQHUJ\XVHGDVZHOOas to shorten process times.
•(PSOR\KLJKO\HI¿FLHQWOLJKWLQJDQGDLUFRQGLWLRQLQJDQG
measures to cut waste• Introduce energy-saving controls on pumps and blowers•8VHPRUHHI¿FLHQWFRPSUHVVRUVDQGLPSOHPHQWPHDVXUHVto reduce pressure losses•3URPRWHPHDVXUHVWRLPSURYHWKHSRZHUIDFWRUVRIHOHFWULFHTXLSPHQW•$GRSWKLJKFRHI¿FLHQWRISHUIRUPDQFH &23 FKLOOHUVDQG
measures to prevent cold and hot water supply waste• Reduce boiler fuel through the recovery of waste heat
• Ensure appropriate warming times and temperatures for raw materialsHQHUJ\VDYLQJLQLWLDWLYHVDFFRXQWHGIRUDUHGXFWLRQLQHQHUJ\FRQVXPSWLRQHTXLYDOHQWWROLWHUGUXPVRIFUXGHRLO
493 initiatives

Equivalent toReductionin energy
consumption

12,530200-liter drums of crude oil,Q¿VFDO\HDUWKHVHLQLWLDWLYHVUHGXFHGHQHUJ\FRQVXPSWLRQE\NLOROLWHUV FUXGHRLOHTXLYDOHQWZLWKDQDVVRFLDWHGUHGXFWLRQLQ&22HPLVVLRQVRI
PHWULFWRQQHV HTXLYDOHQWWROLWHUGUXPVRIFUXGHRLORURIWRWDOHQHUJ\FRQVXPSWLRQE\WKH',&*URXSLQ-DSDQLQWKHSHULRG
:KLOHFRQWLQXLQJWRSURPRWHHQHUJ\VDYLQJPHDVXUHVWKH*URXSZLOOIRFXVRQVKDULQJH[FHOOHQWSUDFWLFHVDPRQJVLWHV7KH*URXSZLOODOVRUHLQIRUFHPDQDJHPHQWPDQXDOVIRUNH\HQHUJ\FRQVXPLQJHTXLSPHQWLQFOXGLQJERLOHUVFKLOOHUVDQGFRPSUHVVRUVWRRSWLPL]HSHUIRUPDQFHV
and step up initiatives both in Japan and overseas.
DIC Report 2016

52

ESH

7KH',&*URXSLQ-DSDQLPSOHPHQWHGWKHIROORZLQJNH\HQHUJ\VDYLQJLQLWLDWLYHVLQ-DSDQLQ¿VFDO\HDU
Impact in fiscal year 2015
Energy-saving initiative

Reduction in annual
energy consumption(kiloliters)

Reduction in CO2emissions(metric tonnes)

Yokkaichi Plant (DIC)

Reduced LNG consumption by improving usage of reactionary heating medium

158

303

Utsunomiya Plant (DIC Graphics)

Shortened operating times of cooling water pumps and air conditioners

152

275

3

Chiba Plant (DIC)

Reduced steam by reinforcing heat-retention management of product tanks

151

903

4

Komaki Plant (DIC)

Reduced steam losses by repairing steam pipework

126

252

5

Gunma Plant (DIC Graphics)

Changed electric heating temperature settings and shut equipment off
when not in use

109

220

6

Chiba Plant (DIC)

Conserved energy by upgrading P8 boiler and P12 chiller

99

200

7

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

Reduced boiler fuel usage by reducing usage of ash water

84

196

8

Iwai Plant (DIC, Seiko PMC Corporation)

Used turpentine oil effectively as boiler fuel

65

124

9

Tatebayashi Plant (DIC)

Optimized cooling water pumps and adjusted equipment operation

61

120

10

Sakai Plant (DIC)

Upgraded air conditioning systems on the second and third floors of
the No. 1 building (GHP → EHP)

37

70

11

Hokuriku Plant (DIC)

Reduced operating times for nitrogen generation devices by 95%

31

77

12

Yatsushiro Plant (KJ Chemicals Corporation)

Installed electric water heaters for baths

30

70

13

Saitama Plant (DIC)

Recovered steam from waste heat boiler

30

11

14

Harima Plant (DIC, Seiko PMC)

Upgraded spot coolers

26

53

15

Kansai Plant (DIC Graphics)

Reduced rolling mill power consumption by employing roll-free facilities

20

40

16

Kashima Plant (DIC)

Power reduction by changing technique used to remove suspended solids

19

40

17

Sodegaura Plant (DIC EP Corp.)

Reduced electricity use by production plant lines

13

27

1,211

2,981

1,295

2,611

2,506

5,592

No

Plant

1
2

Subtotal (17 initiatives)
Others (476 initiatives)
Total (493 initiatives)

Improving Yields by Expanding Use of System to Enhance the Visibility of Energy Consumption:LWKWKHDLPRIRSWLPL]LQJWKHXVHRIHOHFWULFSRZHURQDQLQGLYLGXDOIDFLOLW\EDVLV',&GHYHORSHGDV\VWHPWKDWPHDVXUHVPRQLWRUVDQGYHUL¿HVZDVWHDQG
LUUHJXODULWLHVLQXVHWKHUHE\HQKDQFLQJWKHYLVLELOLW\RIHQHUJ\FRQVXPSWLRQ,QLWLDOO\LQVWDOOHGDWWKH+RNXULNX3ODQWLQWKHV\VWHP²ZKLFKZRQWKH(&&-&KDLUPDQ¶V3UL]HDW-DSDQ¶V(QHUJ\&RQVHUYDWLRQ*UDQG3UL]HDZDUGVVSRQVRUHGE\WKH(QHUJ\&RQVHUYDWLRQ&HQWHU-DSDQ (&&- ²KDVVLQFHEHHQ
UROOHGRXWDW',&VLWHVDFURVV-DSDQ,Q¿VFDO\HDUWKHV\VWHPZDVLQVWDOOHGDWWKH.RPDNL3ODQW$V\VWHPWRHQKDQFHYLVLELOLW\ZKLFKDOVRDQDO\]HVHQHUJ\FRQVXPSWLRQGXULQJGLIIHUHQWSURGXFWLRQSURFHVVHVZDVLQVWDOOHGRQWKH9&DQG%SURGXFWLRQÀRRUVRIWKH&KLED.DVKLPDDQG6DNDLSODQWVUHVSHFWLYHO\WRUHSURGXFHRSWLPXP\LHOGVIRUPDWHULDOVLQSXWV,Q',&ORRNVWRLQVWDOOPRUH
DGYDQFHGYHUVLRQVRIWKHV\VWHPDWWKH<RNNDLFKL3ODQWOne outcome of efforts to enhance the visibility of energy consumption was an increase in the
QXPEHURIFDWHJRULHVRI6FRSH LQZKLFK',&UHSRUWVLQGLUHFWHPLVVLRQVRI&2 2 IURPRQH ³XSVWUHDPWUDQVSRUWDWLRQDQGGLVWULEXWLRQ´ LQ¿VFDO\HDUWRVL[ LQFOXGLQJ³FDSLWDOJRRGV´DQG³ZDVWHIURPEXVLQHVVHV´ LQ¿VFDO\HDU
6FRSHLVWKH*UHHQKRXVH*DV3URWRFRO¶VVWDQGDUGIRUFDOFXODWLQJLQGLUHFWJUHHQKRXVHJDVHPLVVLRQVUHVXOWLQJIURPSURGXFWLRQWUDQVSRUWEXVLQHVVWUDYHODQGFRPPXWLQJDPRQJRWKHUVDFURVVHQWLUHVXSSO\FKDLQV

CO2 Emission Changes in Supply Chain(Metric tonnes of CO2)
160,000

120,000

80,00040,00001213

Employee commutes
Business travel
Upstream transportation and distribution

14

15(Fiscal year)

Waste from businesses
Fuel and energy activities not included in Scope 1 and 2

Capital goods

DIC Report 2016

53

ESH

Reducing Energy Consumption and Increasing Product Quality through Kaizen Skill Improvement Training+DYLQJUHFRJQL]HGWKDWHQKDQFLQJWKHDZDUHQHVVRIHPSOR\HHVLQSURGXFWLRQDQGSURYLGLQJWKHPZLWKWKHWRROVWRFRQWLQXRXVO\LPSURYHWKHLUZRUNDUHFUXFLDOWRVWUHQJWKHQLQJIURQWOLQHFDSDELOLWLHVLQ',&EHJDQRIIHULQJWKH.DL]HQ6NLOO,PSURYHPHQW7UDLQLQJSURJUDP7KLVSURJUDP²ZKLFKLVVWUXFWXUHGDURXQGIRXUWKHPHVQDPHO\UHGXFLQJ
HQHUJ\FRQVXPSWLRQLQFUHDVLQJ\LHOGVHQKDQFLQJSURGXFWTXDOLW\DQGUDWLRQDOL]LQJRSHUDWLRQ²VHHNVWRIRVWHUSURIHVVLRQDOVZKRFDQLGHQWLI\DQGUHVROYHLVVXHVRQWKHLURZQLQLWLDWLYH3DUWLFLSDQWVVSHQGRQH\HDUSDUWLFLSDWLQJLQLQLWLDWLYHVDLPHGDWLPSURYLQJTXDOLW\FRQWUROPHWKRGVDQGWKHIROORZLQJ\HDUSXWWLQJWKHLU¿QGLQJVLQWRSUDFWLFH(DFK'HFHPEHUDFKLHYHPHQWVDUHSUHVHQWHGDWDEULH¿QJDWWHQGHGE\SHUWLQHQWSODQWJHQHUDOPDQDJHUVDQGGLUHFWRUV6LQFH',&KDVDOVRSURYLGHGWUDLQLQJIRUHPSOR\HHVZKRKDYHFRPSOHWHGWKH.DL]HQ6NLOO,PSURYHPHQW7UDLQLQJSURJUDPWRHTXLSWKHPZLWKWKHOHDGHUVKLSDQGHGXFDWLRQDOVNLOOVQHFHVVDU\WRVHUYHDVLQVWUXFWRUVIRUWKHSURJUDP$V
RIWKHHQGRI¿VFDO\HDUDFXPXODWLYHWRWDORIHPSOR\HHVIURP',&VLWHVLQ-DSDQKDGFRPSOHWHGWKHSURJUDPZLWKDSSUR[LPDWHO\VXEVHTXHQWO\JRLQJRQWRHDUQDFFUHGLWDWLRQDVSURJUDPLQVWUXFWRUVDGGLQJPRPHQWXPWR
energy-saving and other initiatives.
4.DL]HQ6NLOO,PSURYHPHQW7UDLQLQJ

Increasing Independent Electric Power Generation through Cogeneration and the Use of Renewable Energy

Increasing Cogeneration System-Based Independent Electric Power Generation:LWKWKHDLPRILQFUHDVLQJHQHUJ\HIILFLHQF\DQGDVDSUHFDXWLRQDJDLQVWQDWXUDOGLVDVWHUV
the DIC Group in Japan is promoting the systematic adoption of cogeneration and the use of
UHQHZDEOHHQHUJ\WKDWLVHQHUJ\IURPVRXUFHVWKDWDUHQDWXUDOO\UHSOHQLVKHG&RJHQHUDWLRQV\VWHPVEXUQIXHOWRGULYHWXUELQHVIDFLOLWDWLQJWKHSURGXFWLRQRIHOHFWULFSRZHUDQGWKHUHFRYHU\DQGUHXVHRIZDVWHKHDW VWHDPDQGKRWZDWHU WKHUHE\LPSURYLQJHQHUJ\HI¿FLHQF\:LWKFRJHQHUDWLRQV\VWHPVDOUHDG\LQRSHUDWLRQDWILYHGRPHVWLFSODQWV &KLED6KLJD
6DLWDPD*XQPDDQG7RN\R LQDXWXPQ',&LQVWDOOHGDQDWXUDOJDVWXUELQH±SRZHUHG
FRJHQHUDWLRQV\VWHPZLWKDFDSDFLW\RIN:KDWLWV.DVKLPD3ODQW$VRI'HFHPEHU
WKHWRWDOFRPELQHGPD[LPXPJHQHUDWLQJFDSDFLW\RIWKH*URXS¶VFRJHQHUDWLRQV\VWHPVLQ-DSDQZDVN:(OHFWULFSRZHUSURGXFHGWKURXJKFRJHQHUDWLRQLQ¿VFDO\HDUDPRXQWHGWRN:KHTXLYDOHQWWRRIWKHHOHFWULFSRZHUFRQVXPHGE\WKH',&
Group in Japan during the period.
',&SODQVWRXSGDWHWKHFRJHQHUDWLRQV\VWHPDWLWV&KLED3ODQWZKLFKFXUUHQWO\KDVD
FDSDFLW\RIN:KLQODWH7KLVLVH[SHFWHGWRLQFUHDVHWKHV\VWHP¶VJHQHUDWLQJFDSDFLW\E\N:K
Conceptual Diagram of Cogeneration System

Electric power
Waste heat (steam, hot water)
System process

Internal
combustion engine
Fuel

Cooling
Use of waste heat chiller
HeatingNatural gas,
heavy oil, other

Heat exchanger
Hot water supply
Heat exchanger
DIC Report 2016

54

1DWXUDOJDVWXUELQH±SRZHUHGFRJHQHUDWLRQ
V\VWHPDWWKH.DVKLPD3ODQWESHUsing Renewable Energy,Q-DSDQWKH',&*URXSDFWLYHO\SURPRWHVWKHXVHRIHQHUJ\IURPUHQHZDEOHVRXUFHVDWVXLWDEOHVLWHV7KHELRPDVVERLOHUDW
WKH.DVKLPD3ODQW JHQHUDWLQJFDSDFLW\N:DQGWRQVRIVWHDPSHUKRXU FRQWULEXWHVVLJQL¿FDQWO\WRWKLVHIIRUW',&
IRFXVHVRQLPSURYLQJWKHTXDOLW\RIZRRGFKLSVXVHGDVERLOHUIXHOZKLFKLQÀXHQFHVRSHUDWLQJUDWHVDVZHOODVRQHQKDQFLQJPDLQWHQDQFHSURFHGXUHV%\FRPELQLQJWKLVERLOHUZLWKWZRZLQGSRZHUIDFLOLWLHV HDFKZLWKDJHQHUDWLQJFDSDFLW\RI
N: DQGDVRODUSRZHUJHQHUDWLRQIDFLOLW\ N: ',&DLPVWRDFKLHYHDQRSWLPDOSRZHUPL[RISXUFKDVHGHOHFWULFSRZHU
cogeneration systems and renewable energy.
,Q¿VFDO\HDUWKHELRPDVVERLOHU¶VRSHUDWLQJUDWHVZHUHUHGXFHGRZLQJWRPDLQWHQDQFH$VDFRQVHTXHQFHUHQHZDEOH
HQHUJ\XVDJHYROXPHGHFOLQHGIURPD\HDUHDUOLHUWRNLOROLWHUV RIWKH',&*URXS¶VHQHUJ\FRQVXPSWLRQLQ
-DSDQ 7KH*URXS¶V&22HPLVVLRQVLQ¿VFDO\HDUWKXVGURSSHGPHWULFWRQQHV/HYHUDJLQJELRPDVVERLOHUPDQDJHPHQWWHFKQRORJLHVGHYHORSHGLQRSHUDWLQJIDFLOLWLHVDWWKH.DVKLPD3ODQWLQ'HFHPEHU
',&SODQVWRLQVWDOOERLOHUVDWWKH+RNXULNX3ODQWLQ,VKLNDZD3UHIHFWXUH
CO2 Emission Reductions at Kashima Plant (January–December 2015)
Reduction attributable to use ofwood biomass energy-26,227
Reduction attributable touse of wind power

metrictonnesof CO 2

Reduction attributable touse of solar power

Resultmetrictonnesof CO 2

-2,652 -51
metrictonnesof CO 2

Reduction in CO2 emissions(January–December 2015)-28,930 metric tonnesof CO2

Electric Power Used by the DIC Group in Japan in Fiscal Year 2015 by Energy Source(Thousand kWh)Electric power generatedusing renewable energy

350,000
300,000
250,000

19,732
46,97420,93844,26822,60239,472

19,561
38,839219,178

211,790

7%
Electric power produced
through cogeneration

200,000
150,000

220,195

227,430

14%Purchased
electric power

100,000
50,000

79%

0

12

13

14

Electric power generated using renewable energy
Electric power generated through cogeneration

15 (Fiscal year)
Purchased electric power

DIC Report 2016

55

Breakdown ofElectric Power
Used by the
DIC Group in Japanin Fiscal Year 2015
by Energy Source

ESH

Microreactors: Realizing Production Processes that Lower Environmental Impact
7RGDWHWKHPDMRULW\RIV\QWKHWLFFKHPLFDOVKDYHEHHQSURGXFHGLQEDWFKUHDFWRUVZKHUHWZRRUPRUHGLIIHUHQWFKHPLFDOHOHPHQWVDUHFRPELQHGFDXVLQJDFKHPLFDOUHDFWLRQDQGE\SURGXFWVDQGLPSXULWLHVDUHUHPRYHG%HFDXVHKHDWH[FKDQJHHI¿FLHQF\LVORZKHDWLQJDQGFRROLQJUHTXLUHVLJQL¿FDQWDPRXQWVRIHQHUJ\$OVRSUHFLVHWKHUPDOFRQWUROLVGLI¿FXOWDVDUHVXOWRIZKLFKLWLVGLI¿FXOWWRPDQDJHUHDFWLRQHI¿FLHQF\DQGTXDOLW\5 'DLPHGDWDGGUHVVLQJWKHVHFKDOOHQJHVRSHQHGWKHZD\IRUPLFURUHDFWRUVZKLFKHPSOR\DQXPEHURIXQLTXHSURFHVVHV:LWKPLFURUHDFWRUVWKH
LQWURGXFWLRQRIUDZPDWHULDOVDQGWKHUHDFWLRQDQGUHFRYHU\RIE\SURGXFWVDQGLPSXULWLHVRFFXUVLQDFRQWLQXRXVÀRZZLWKLQPLFURFKDQQHOVWKDWGHOLYHUVXSHUEKHDWH[FKDQJHHI¿FLHQF\,QDGGLWLRQWRDVLJQL¿FDQWUHGXFWLRQLQHQHUJ\XVHPLFURUHDFWRUVIDFLOLWDWHSUHFLVHWKHUPDOFRQWURO²WKHUHE\PLQLPL]LQJHOHFWULFSRZHUFRQVXPSWLRQDQGJUHDWO\LPSURYLQJUHDFWLRQHI¿FLHQF\DQGTXDOLW\²DQGWKHUHGXFWLRQRIZDVWH0LFURUHDFWRUVDOVRDOORZUHDFWLRQVDQGFKHPLFDOV\QWKHVLVSURFHVVHVWKDWDUHXQIHDVLEOHZLWKEDWFKWDQNUHDFWRUVGXHWRVDIHW\FRQFHUQVWKHEHQH¿WVRIZKLFKLQFOXGHVKRUWHUOHDGWLPHVIRUSODQWFRQVWUXFWLRQ+DYLQJUHFRJQL]HGWKHSRWHQWLDORIPLFURUHDFWRUVHDUO\RQ',&KDVSURPRWHGH[WHQVLYH5 'DLPHGDWGHYHORSLQJDFRPPHUFLDOO\YLDEOHXQLW,Q6HSWHPEHU
WKH&RPSDQ\¶V+RNXULNX3ODQWGHSOR\HGDPLFURUHDFWRUIRUXVHLQWKHSURGXFWLRQSURFHVVIRUÀXRULQDWHGVXUIDFWDQWVDFKLHYLQJDVLJQL¿FDQWLPSURYHPHQWLQ
UHDFWLRQHI¿FLHQF\WKDWUHGXFHGSURGXFWLRQWLPHWRRQHQLQWKWKHSUHYLRXVOHYHOWKHUHE\UHGXFLQJHQHUJ\FRQVXPSWLRQDQGHVVHQWLDOO\HOLPLQDWLQJWKHJHQHUDWLRQ
of waste during production.
%HFDXVHLWGHYHORSVDQGSURGXFHVDGLYHUVHUDQJHRIFKHPLFDOFRPSRXQGV',&SULRULWL]HVUHYROXWLRQL]LQJPDQXIDFWXULQJSURFHVVHVWRHQKDQFHWKHTXDOLW\RILWV
products and lower its impact on the environment. DIC will continue to realize production processes with low environmental impacts that contribute to its sustainability.
Conventional
Chemical Synthesis
Batch reactor

Conventional

Chemical Synthesis
Using a Microreactor
Microreactor

MixingChemical synthesis
using large plant

+HDWLQJDQGFRROLQJUHTXLUH
significant time and energy
Precise thermal control is difficult, which
negatively affects reaction efficiency and selectivity
&DSLWDOLQYHVWPHQWUHTXLUHPHQWVDUHVXEVWDQWLDOEnergy-saving

Chemicalelement

A

Highly efficient mixing
in microchannels

Chemicalelement

B

Heating, cooling andprecise thermal control

Synthetic chemical

+HDWLQJDQGFRROLQJUHTXLUHYHU\OLWWOHHQHUJ\
3UHFLVHWKHUPDOFRQWUROLVSRVVLEOH
facilitating selective organic synthesis
&DSLWDOLQYHVWPHQWUHTXLUHPHQWVDUHPLQLPDO

0LFURUHDFWRUDW',&¶V+RNXULNX3ODQW

Reconstruction of Global Corporate Headquarters,Q0D\',&FRPSOHWHGDWZR\HDUUHFRQVWUXFWLRQRILWVFRUSRUDWHKHDGTXDUWHUVWKH',&%XLOGLQJLQ7RN\R¶V1LKRQEDVKLGLVWULFWXQGHUWDNHQZLWKWKHDLPRIFHQWUDOL]LQJKHDGTXDUWHUVIXQFWLRQVDQGLPSURYLQJWKHEXLOGLQJ¶VHQYLURQPHQWDOHI¿FLHQF\● )ORRUVSDFHVTXDUHPHWHUV ÀRRUVDERYHJURXQGDQGIRXUEHORZ● 1XPEHURIHPSOR\HHV
(QYLURQPHQWDOHI¿FLHQF\&$6%(( (QYLURQPHQWDO(I¿FLHQF\$VVHVVPHQW &ODVV6
7KH&RPSUHKHQVLYH$VVHVVPHQW6\VWHPIRU%XLOW(QYLURQPHQW(I¿FLHQF\ &$6%(( KDV¿YHFHUWL¿FDWLRQOHYHOV&ODVV6 H[FHOOHQW 
&ODVV$ YHU\JRRG &ODVV% JRRG &ODVV% VOLJKWO\SRRU DQG&ODVV& SRRU .H\(QYLURQPHQWDO(IÀFLHQFLHV● CO 2HPLVVLRQVIURPEXLOGLQJRSHUDWLRQVDWWLPHRIEDVLFGHVLJQ PHWULFWRQQHVRI&2 2D\HDU ORZHUWKDQWKHEDVHOLQHRI7RN\R0HWURSROLWDQ*RYHUQPHQW¶V(QHUJ\(I¿FLHQF\&DUWH● +LJKHI¿FLHQF\WUDQVIRUPHUVDQGVRODUSRZHUJHQHUDWLRQIDFLOLWLHV N: DQGVWRUDJHEDWWHULHV $K● /LJKWLQJ+LJKO\HI¿FLHQW/('JULGOLJKWLQJ(FROXPL/('DQGDXWRPDWLFGLPPLQJFRQWUROV\VWHP● $LUFRQGLWLRQLQJ1DWXUDOYHQWLODWLRQDQGGLVWULEXWHGFRQWUROV\VWHPWKURXJKKLJKHIILFLHQF\HOHFWULFKHDWVRXUFHDLU
cooled heat pump air conditioner● CO2 control ventilation system used for underground car park
● Building energy management system used to conserve power● Rain and groundwater used to irrigate rooftop greenery and supply all toilets in the building(QHUJ\FRQVXPSWLRQE\',&¶VFRUSRUDWHKHDGTXDUWHUVLQ¿VFDO\HDUZDVHTXLYDOHQWWRNLOROLWHUVRIFUXGHRLODGHFOLQH
RIIURP¿VFDO\HDUGHVSLWHDLQFUHDVHLQÀRRUVSDFH
,Q¿VFDO\HDUWKHEXLOGLQJPDLQWHQDQFHFRPSDQ\DQG',&¶V3URGXFWLRQ0DQDJHPHQW'HSDUWPHQWDQG*HQHUDO$IIDLUVDQG+5'HSDUWPHQWFUHDWHGDQHQHUJ\VDYLQJSURPRWLRQIUDPHZRUNHQFRXUDJLQJHPSOR\HHVWRWXUQRIIOLJKWLQJDQGDLU
conditioning when not in use.

DIC Report 2016

56

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5 Energy Consumption and CO2 Emissions by the DIC Group Overseas'HVSLWHDGHFUHDVHLQSURGXFWLRQYROXPHHQHUJ\FRQVXPSWLRQE\',&*URXSFRPSDQLHVRYHUVHDVLQ¿VFDO\HDUZDVOHYHODWNLOROLWHUVRIFUXGHRLOHTXLYDOHQWZKLOH&22HPLVVLRQVURVHWRPHWULFWRQQHV7KHSULPHIDFWRUVEHKLQGWKLVZHUHVXUJLQJSLJPHQWSURGXFWLRQLQ,QGRQHVLDDQGKLJKHUHQHUJ\FRQVXPSWLRQSHUXQLWRISURGXFWLRQDWVLWHVLQ,QGLDWKH35& +DLQDQ DQG7DLZDQ 7DLSHL 
Energy Consumption per Unit of Production and Change in
Energy Consumption from Base Year (Fiscal Year 2011)

CO2 Emissions and Change from Base Year (Fiscal Year 2011)(Metric tonnes)

（％）
140

123

600,000

107

104

500,000

105(Kiloliter crude oil equivalent)

+1%

120

99

110

104

100,000

100,00060

CO2 emissions

40

Change in CO2 emissions
from base year

50,000

20

0

12

13

14

15

+3%

from
fiscal year 2014

90

300,000
200,000

（％）
120

100

150,000

80

107

110

200,000

fromfiscal year 2014100

400,000

250,000

0

Energy consumption

70

Change in energy consumption
per unit of production from base year

60

12

0
(Fiscal year)

80

13

14

15 (Fiscal year)

Proportional Changes in CO2 Emissions by Region
100%
90%
80%
70%
60%

9%
14%

10%
14%

16%
13%

18%
9%

19%
10%

37%

41%

37%

34%

33%

50%

Europe, the United States and Africa

40%
30%
20%

Asia –Pacific region
PRC
Japan

40%

36%

34%

39%

38%

11

12

13

14

15 (Fiscal year)

10%0%Energy-Saving Initiatives Overseas/DZVDQGUHJXODWLRQVDVZHOODVLQIUDVWUXFWXUHGLIIHUEHWZHHQFRXQWULHVDQGUHJLRQV7KH',&*URXSVWULYHVWRSURPRWHHQHUJ\VDYLQJVDQGHI¿FLHQWRSHUDWLRQVZKHUHYHULWLVDFWLYHDQGLQVRGRLQJVHWVSUHFHGHQWVIRUWKHJOREDOFKHPLFDOVLQGXVWU\'HVSLWHDGHFOLQHLQSURGXFWLRQYROXPHDQGWKHLPSDFWVRIHQHUJ\VDYLQJLQLWLDWLYHVEDVHGRQ0%2WKHHQHUJ\consumption of DIC Group companies overseas was unchanged. Energy consumption per unit of production increasedZKLOH&22HPLVVLRQVURVHWRPHWULFWRQQHV,QOLJKWRIWKHVHUHVXOWVLQ¿VFDO\HDU',&DQG',&*URXSFRPSDQLHVRYHUVHDVZLOOIRFXVPRUHRQZD\VWRSUHYHQWJOREDOZDUPLQJWKURXJKPRUHH[WHQVLYHHQHUJ\VDYLQJDFWLYLWLHVFROODERUDWLQJFORVHO\ZLWK',&¶V3URGXFWLRQ0DQDJHPHQW'HSDUWPHQW
Results of Energy-Saving Initiatives Overseas in Fiscal Year 2015
Reduction in CO2
Reduction in energy
emissionsconsumption (kl) (metric tonnes of CO2)

RegionNumber of
initiatives$VLD±3DFL¿F
region

47

327

760

Greater China

22

151

337

Americas andEurope

8

299

691

7RWDO

77

777

1,788

DIC Report 2016

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$VLD²3DFLÀF5HJLRQ,QWKH$VLD±3DFL¿FUHJLRQZKLFKDFFRXQWVIRURIWKH&22HPLVVLRQVRIWKH',&*URXSHQHUJ\RI¿FHUVIURPVLWHVLQFRXQWULHVJDWKHUELHQQLDOO\IRU
DFRQIHUHQFHRQHQHUJ\PDQDJHPHQWLVVXHVDQGSURJUHVVZLWKHQHUJ\VDYLQJSODQV 7KHFRQIHUHQFHLWVHOILVDQDQQXDOHYHQWKHOGLQFROODERUDWLRQZLWK',&*URXSFRPSDQLHVLQWKH35&ZLWKWKHORFDWLRQDOWHUQDWLQJDQQXDOO\EHWZHHQWKHWZRUHJLRQV 7KH¿VFDO\HDUFRQIHUHQFHZDVKHOGLQ0D\LQ-DNDUWD,QGRQHVLDZLWKRI¿FHUVLQDWWHQGDQFH
7KHREMHFWLYHRIWKHFRQIHUHQFHLVWRNHHSWDEVRQWKHHQHUJ\PDQDJHPHQWDQGFRQVHUYDWLRQHIIRUWVRIHDFKFRPSDQ\WRKHOSHQKDQFHWKHLUFDSDELOLWLHV
Recent gatherings have encompassed vigorous discussions about rollouts of measures based on the experiences of other Group companies.
(IIRUWVKDYHVWDUWHGUHFHQWO\LQWKHUHJLRQWRFKHFNRQHQHUJ\PDQDJHPHQWSURJUHVVDQGWKHSHUIRUPDQFHRIHQHUJ\FRQVXPLQJHTXLSPHQWDPRQJ*URXSFRPSDQLHV$VSDUWRIWKHVHHIIRUWVVLWHHPSOR\HHVNQRZQDVHQHUJ\VDYLQJPDVWHUVFRQ¿UPHQHUJ\VDYLQJSURPRWLRQIUDPHZRUNVDVVHVVHQHUJ\FRQVXPSWLRQIRUPXODWHSROLFLHVDQGPDQDJHJRDOVDQGHYDOXDWHWKHSHUIRUPDQFHVRINH\HTXLSPHQW7KH\DOVRFUHDWHUDGDUFKDUWVWRFODULI\VWUHQJWKVDQG
weaknesses and thereby encourage improvements.
Activities Radar Chart
Initial check (May 25, 2015)
Target line

Energy-saving promotion framework
Environmental management systems andEnergy management systems certification$VLD ± 3DFLI LF HQHUJ\ PDQDJHPHQW FRQIHUHQFH LQ
-DNDUWD,QGRQHVLD

Identifying consumption volume

Waste management status

Energy-saving policies,
goals, action plans and reviews

Air and water
management progress andchemical substanceleakage risks

Steam and thermal
equipment performances

Electricalequipment performances(QHUJ\VDYLQJDQDO\VLVDFWLYLWLHV 0DOD\VLD 

Water facilities performances

Air pressure equipment performances

Installing Inverters to Reduce Power Consumption of Cooling Water Motor by 10% (DIC Epoxy (Malaysia) Sdn. Bhd.)+LJKHOHFWULFSRZHUFRQVXPSWLRQZDVDQLVVXHDV',&(SR[\ 0DOD\VLD XVHVSRZHUIXOHOHFWULFSXPSVWRVXSSO\DQGFLUFXODWHFRROLQJZDWHULQPDQXIDFWXULQJHSR[\UHVLQ7KHFRPSDQ\¶VHQHUJ\VDYLQJSURMHFWIRFXVHGRQWKHXVHRILQYHUWHUVDVDZD\
to match water supply to demand and consume less electricity without compromising the efficiency of cooling devices. Six
LQYHUWHUVZHUHLQVWDOOHGUHGXFLQJHOHFWULFLW\FRQVXPSWLRQDURXQGE\ORZHULQJPRWRUIUHTXHQF\IURP+]WR+]

Cooling water pump

Cooling water
circulation pump C

Cooling water
circulation pump B

Cooling water
circulation pump A

Cooling water pump

Cooling water circulation pumps A, B and C

Output / frequency: 37 kW / 50 Hz

Output / frequency: 55 kW / 50 Hz

After inverter deployment

After inverter deployment

Output /frequency: 33.3 kW /45 Hz
Energy savings: 88.8 kWh daily

Output /frequency: 49.5 kW / 45 Hz
Energy savings: 132 kWh daily

DIC Report 2016

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TOPIC
Energy Management Instruction by DIC Production Management Department$VDSDUWRIJOREDOHQYLURQPHQWDOPDQDJHPHQWHIIRUWVVSHFLDOLVWVIURPWKH3URGXFWLRQ0DQDJHPHQW'HSDUWPHQWYLVLWSURGXFWLRQVLWHVLQ*UHDWHU&KLQDDQGWKH$VLD±3DFL¿FUHJLRQHYHU\\HDUWRDVVHVVSURJUHVVZLWKPDQDJHPHQWV\VWHPVDQGIROORZXSRQLPSURYHPHQWV,Q¿VFDO\HDUWKHVHVSHFLDOLVWVYLVLWHGQLQH
SURGXFWLRQVLWHV²WZRHDFKLQ,QGRQHVLDDQG6LQJDSRUHRQHLQ0DOD\VLDDQGIRXULQWKH35&7KHSULPHJRDO
was to reduce CO2HPLVVLRQVWKURXJKWKHPRUHHI¿FLHQWXVHRIHQHUJ\37',&*UDSKLFV¶SLJPHQWVSODQWLQ.DUDZDQJ,QGRQHVLDLVDFUXFLDOIDFLOLW\WKDWIXQFWLRQVDVWKH
PRWKHUSODQWIRUSKWKDORF\DQLQHSLJPHQW EOXH LQNZKLFKLVXVHGH[WHQVLYHO\LQSULQWLQJLQNVIRUIRRG
SDFNDJLQJDVZHOODVLQSDLQWVDQGSODVWLFV7KHIDFLOLW\KDGIRXQGLWFKDOOHQJLQJWRLPSURYHHQHUJ\management instruction at DIC Graphics’HI¿FLHQF\DVSLJPHQWPDQXIDFWXULQJSURFHVVHVXVHDVLJQL¿FDQWDPRXQWRIWKHUPDOHQHUJ\ IRUKHDWLQJ Energy.DUDZDQJ3ODQWPHGLDDQGGU\ERLOHUV DQGZDWHU IRUZDVKLQJ 
$V,QGRQHVLDIDFHVGLI¿FXOWLHVLQWHUPVRILWVGRPHVWLFQDWXUDOJDVVXSSO\LQIUDVWUXFWXUHDQGSULFHV',&KDVWRXVHFRDOIRUIXHOLQLWVORFDORSHUDWLRQV6SHFLDOLVWVIURPWKH3URGXFWLRQ0DQDJHPHQW'HSDUWPHQWSURYLGHGJXLGDQFHDERXWDPHWKRGWRUHLQIRUFHSURFHVVPDQDJHPHQWE\SXOYHUL]LQJFRDOXQLIRUPO\WRHQKDQFHFRPEXVWLRQHI¿FLHQF\7KH\DOVRRIIHUHGVXJJHVWHGPDQDJHPHQWWHFKQLTXHVWKDWFODULI\QXPEHUVLQSXULILFDWLRQIRUDFWLYDWHGVOXGJHWUHDWPHQWXVLQJEDFWHULD6SHFLDOLVWVSURYLGHGGHWDLOHGIROORZXS7KLVLQFOXGHGVXJJHVWLQJXSJUDGHVWRKHDWSXPSDLUFRQGLWLRQHUVWKDWKDUQHVVDWPRVSKHULFKHDWVXFKDVWKRVHLQXVHLQ6LQJDSRUHDQG0DOD\VLDDQGHQFRXUDJLQJHQHUJ\FRQVHUYDWLRQE\optimizing air compressor pressurization.

VOICE from the DIC GroupWe are rediscovering the importance of inputs and outputs.
6LQFH EHFRPLQJ SDUW RI WKH ',& *URXS LQ  ZH KDYH H[SDQGHG SODQW SURGXFWLRQ FDSDFLW\ ZKLOH ORZHULQJHQYLURQPHQWDO LPSDFW E\ GHSOR\LQJ DGYDQFHG WHFKQRORJLHV 6WLOO LW LV LPSRUWDQW WR PDNH GDWD WUDQVSDUHQW DQG
H[WHQVLYHO\ PDQDJH LQSXWV DQG RXWSXWV WR HQVXUH WKDW SLJPHQW SURGXFWLRQ LV H[WUHPHO\ HQHUJ\ HIILFLHQW :H ZLOO
continue pursuing higher goals by ensuring that all employees understand that saving energy lowers costs.
PT. DIC Graphics (Indonesia)
Manager LT Gan
Supervisor Suhaimi Moin

PRC

,QWKHJRYHUQPHQWRIWKH35&HQDFWHGWKHUHYLVHG(QYLURQPHQWDO3URWHFWLRQ/DZDQG$LU3ROOXWLRQ/DZWRVWUHQJWKHQRYHUVLJKWRYHUDLUZDWHUVRLODQGQRLVH7KHJRYHUQPHQWDOVRUHTXLUHGSODQWVDERYHFHUWDLQVFDOHVWRGLVFORVHHQYLURQPHQWDOLQIRUPDWLRQ,WZDVDJDLQVWWKLVEDFNGURSWKDWVSHFLDOLVWVIURPWKH3URGXFWLRQ0DQDJHPHQW'HSDUWPHQWYLVLWHGIRXUVLWHVLQWKH
VRXWKRIWKHFRXQWU\WRLQVSHFWHQYLURQPHQWDOPDQDJHPHQWV\VWHPVDQGWRIROORZXSRQLVVXHV7KHVLWHVZHUH',&*UDSKLFV*XDQJ]KRX /WG6KHQ]KHQ',&&R/WG',&6\QWKHWLF5HVLQV =KRQJVKDQ &R/WGDQG=KRQJVKDQ',&&RORXU&R/WG
0RVWSURGXFWLRQVLWHVLQ*UHDWHU&KLQDDUHSURJUHVVLQJZHOOZLWK3'&$F\FOHV7KDWVDLGUDSLGSURGXFWLRQGHFOLQHVDWVRPHORFDWLRQVDQGKHDY\HQHUJ\FRQVXPSWLRQWRPDLQWDLQDQGPDQDJHFOHDQURRPVDW/&PDWHULDOVPDQXIDFWXULQJVLWHVGURYHKLJKHUHQHUJ\FRQVXPSWLRQSHUXQLWRISURGXFWLRQ7KHVHLVVXHVDUHWREHDGGUHVVHGIURPQH[W¿VFDO\HDU

',&6\QWKHWLF5HVLQV =KRQJVKDQ &R/WG

=KRQJVKDQ',&&RORXU&R/WG',&*UDSKLFV *XDQJ]KRX /WG

DIC Report 2016

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Slashing Refrigerator Power Consumption by Optimizing Equipment at DIC Synthetic Resins (Zhongshan)(OHFWULFLW\ELOOVDFFRXQWIRUKLJKSURSRUWLRQVRIPDQXIDFWXULQJFRVWVVRFRQVHUYLQJWKHSRZHUFRQVXPSWLRQRINH\IDFLOLWLHVKHOSVWRJUHDWO\UHGXFHH[SHQVHV$WWKHFRPSDQ\¶VPHWDOFDUER[\ODWHVSODQWUHIULJHUDWRUVDFFRXQWIRURIWKHSODQW¶VHOHFWULFLW\FRQVXPSWLRQ7KHSULPH
factors are cooling water supplied by remote motors and water supply pumps that operate at full capacity when refrigerators are running.
7RHQVXUHWKDWHYHU\WKLQJSHUIRUPVHIILFLHQWO\',&6\QWKHWLF5HVLQV =KRQJVKDQ &R/WGNLFNHGRIIDSURMHFWLQ0D\WRUHYLHZ
SURFHVVHVDQGHTXLSPHQWDQGH[SORUHLPSURYHPHQWV7KLVUHVXOWHGLQWKHLQVWDOODWLRQRIDFRROLQJWRZHUDQGZDWHUSXPSQHDUUHIULJHUDWRUVWRUHFLUFXODWHFRROLQJZDWHU7KHFRPSDQ\DOVRLGHQWL¿HGDZD\WROLQNUHIULJHUDWRUFRPSUHVVRUVZLWKLFHZDWHUSXPSVDXWRPDWLFDOO\WXUQLQJWKHPRQZKHQWHPSHUDWXUHVH[FHHG&DQGWXUQLQJWKHPRIIZKHQUHIULJHUDWLQJZDWHUGURSVWR&)XOOVFDOHRSHUDWLRQVZLWKWKHQHZVHWXSZKLFKLVH[SHFWHGWRVODVKDQQXDOSRZHUFRQVXPSWLRQWRDURXQGN:KIURPN:KDWSUHVHQW FRPPHQFHGLQ-DQXDU\
',&6\QWKHWLF5HVLQV =KRQJVKDQ ORRNVWRUHFRXSWKHIDFLOLWLHVH[SDQVLRQFRQVWUXFWLRQFRVWVZLWKLQD\HDU
A cooling tower and water supply pump were installed nearrefrigerators and temperature management was automatedCooling tower([WHQVLRQ&RROLQJWRZHU

Cooling
water tank

Refrigerator
Ice watertankExtension 2. Ice water pumpUpgraded cooling tower and water supply pump

Cooling water pump
Motor building

Ice water pump

Approx. 300 meters
Metal carboxylates plant

Harnessing Residual Heat from Incinerating Waste Liquid at Resin Varnish Factory at Nantong DIC Color
1DQWRQJ',&&RORU&R/WGLQFLQHUDWHVZDVWHUHVLQYDUQLVKDWWKHSODQW7KHZDVWHJDVWHPSHUDWXUHIURPWKLVSURFHVVUHDFKHVEHWZHHQ&DQG&7KHSODQWLQVWDOOHGDKHDWH[FKDQJHUWRXVHWKLVKHDWIRUVKRZHUVDQGKRWZDWHULQSLJPHQWPDQXIDFWXULQJSURFHVVHV7KLVPRYHKDVFXWWKHIDFLOLW\¶VDQQXDOHOHFWULFLW\ELOOE\DURXQG5PE7KHSODQWLVSXVKLQJ
ahead with an in-house suggestion system to solicit further energy-saving ideas from all employees.

1HZKRWZDWHUWDQN OHIW DQGKHDWH[FKDQJHU ULJKW WRUHF\FOHZDVWHKHDW

VOICE from the DIC Group/RFDOH[HFXWLYHVSOD\DNH\UROHLQHQVXULQJWKHHIÀFLHQWSURPRWLRQRILPSURYHPHQWV3URYLGLQJJXLGDQFHLQ*UHDWHU&KLQDDQGWKH$VLD±3DFL¿FUHJLRQLQYROYHGQRWRQO\HQHUJ\PDQDJHUVEXWDOVRORFDOH[HFXWLYHVZKRDUHYLWDOIRU
GHFLVLRQPDNLQJRQFDSLWDOH[SHQGLWXUHDQGWKRVHRYHUVHHLQJPDFKLQHU\7KLVZDVFUXFLDOEHFDXVHGHVSLWHULJRURXVHIIRUWVWRVZLWFKRIIPDFKLQHU\ZKHQQRWLQXVHIDFLOLWLHVFRQWLQXHGWRLQFXUKXJHFRVWVEHFDXVHWKH\NHSWXVLQJROGHUPDFKLQHU\$OWKRXJKXSJUDGHVDUHH[SHQVLYHZHVRXJKW
understanding by using case studies to highlight ways in which energy-saving efforts elsewhere have led directly to cost savings.
Simply increasing the visibility of energy consumption by installing a meter made it much easier to encourage energy and cost reductions. In that
WKHUHDUHPDQ\VPDOOZD\VWRHQKDQFHHI¿FLHQF\DWSURGXFWLRQVLWHVZHLQWHQGWRFRQWLQXHLGHQWLI\LQJPRUHLPSURYHPHQWVE\SURYLGLQJHQHUJ\saving analyses while enhancing the skillsets of key local executives.
Manager in charge of eﬃciency, Production Management Department Kazuo Kawaguchi

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60

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Americas and Europe,Q2FWREHUWKH6XQ&KHPLFDO*URXS²ZKLFKKDVRSHUDWLRQVLQFRXQWULHVLQ1RUWK&HQWUDODQG6RXWK$PHULFDDQGFRXQWULHVLQ(XURSH²UROOHGRXWDQHZLQWHUQDO:HEEDVHGGDWDFROOHFWLQJV\VWHPFDOOHG(FR7UDFNZKLFKIDFLOLWDWHVWKHFROOHFWLRQDQGFHQWUDOL]HGPRQLWRULQJRIGDWDIRUNH\VXVWDLQDELOLW\PHWULFVUHODWHGWRHQHUJ\ZDWHUZDVWHDQGVDIHW\DWVLWHV,QDGGLWLRQWRLQFUHDVLQJWKHWUDQVSDUHQF\RIVLWHGDWDUHODWHGWRSURGXFWLRQHQHUJ\VDYLQJLQLWLDWLYHVDQG
CO2HPLVVLRQVDPRQJRWKHUV(FR7UDFNZDVGHVLJQHGWRHQFRXUDJHWKHVKDULQJRILQIRUPDWLRQDQGWKHKRUL]RQWDOGHSOR\PHQWRIPHDVXUHV7KHIXOOLPSOHPHQWDWLRQRIWKHV\VWHPDFURVVWKH6XQ&KHPLFDO*URXSLQ¿VFDO\HDUJUHDWO\LQFUHDVHGWKHWUDQVSDUHQF\RIFUXFLDOGDWDZKLFKLQWXUQDFFHOHUDWHGWKHF\FOHRIDQDO\]LQJGDWDIRUPXODWLQJUHVSRQVHVDQGGHSOR\LQJPHDVXUHVVLJQLILFDQWO\LQFUHDVLQJWKHSURJUHVVRIHQHUJ\VDYLQJLQLWLDWLYHV
2ISDUWLFXODUQRWHWKHPRXQWLQJRIVHQVRUVRQSURGXFWLRQHTXLSPHQWDQGDQDO\VLVRIUHVXOWLQJGDWDIDFLOLWDWHGWKHFDOFXODWLRQRIRSWLPXPHOHFWULFSRZHUDQG
operating times for individual processes.
,Q(XURSHWKH6XQ&KHPLFDO*URXSFRQWLQXHGWRDFWLYHO\SURPRWHWKHXVHRIUHQHZDEOHHQHUJ\,Q¿VFDO\HDU6XQ&KHPLFDO*URXSIDFLOLWLHVLQ(XURSH
XVHGN:KRIUHQHZDEOHHQHUJ\RIZKLFKZDVDFFRXQWHGIRUE\ZLQGSRZHUDQGE\VRODUSRZHUZKLFKVXSSRUWHGWKHUHGXFWLRQRIHQHUJ\consumption and CO2 emissions.

6XQ&KHPLFDOSURGXFWLRQIDFLOLWLHVDUHSURPRWLQJHQHUJ\PDQDJHPHQWE\DPRQJRWKHUVH[SDQGLQJXVHRIODQG¿OOJDV ELRJDV  8QLWHG6WDWHV 

6/RJRIRU6XQ&KHPLFDOLQLWLDWLYHDLPHGDWRSWLPL]LQJHQHUJ\DQGSURGXFWLRQSURFHVVHV 8QLWHG6WDWHVDQG(XURSHReducing Greenhouse Gas Emissions Attributable to Logistics,Q¿VFDO\HDUWKH',&*URXSFRQWLQXHGWRH[DPLQHLWVXSVWUHDPGLVWULEXWLRQ CO2 Emissions and Energy Consumption per Unit of Production Attributable to Logistics(GJ/10,000 km)
bases to identify those with low efficiency levels and implemented measures (Metric tonnes of CO )(%)
30
30,000
aimed at improving transport options for relatively short distances. Despite25
25,000WKHVHHIIRUWVHQHUJ\FRQVXPSWLRQLQORJLVWLFVHGJHGXSDQGDVVRFLDWHG
CO emissions
20
20,000(metric tonnes of CO )CO2HPLVVLRQVURVHDJDLQVWDLQFUHDVHLQWUDQVSRUWYROXPH7KH
Energy consumption
15
15,000principal factor behind these increases is the revision of the reporting boundary(GJ/10,000 km)
10
10,000Modal shift rate (%)
IRU6FRSHHPLVVLRQVDWWULEXWDEOHWRWKHWUDQVSRUWDQGVKLSSLQJRISURGXFWV',&
55,000
DOVRUHSRUWHGDQGHFOLQHLQWKHYROXPHRISURGXFWVVKLSSHGXVLQJPRGHV
00
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06 07 08 09 10 11 12 13 14 15
FRQWDLQHUVKLSDQGUDLOGHFUHDVHGDQGUHVSHFWLYHO\)DFWRUVEHKLQG
these declines included elimination of key sea routes previously used by the Company and a decrease in the number of rail containers in certain
DUHDV7KH',&*URXS¶VPRGDOVKLIWUDWHLQ¿VFDO\HDUZDVGRZQIURPLQWKHSUHFHGLQJSHULRG
2

22（Fiscal year）

7

Initiatives in Areas Other than Production,Q¿VFDO\HDU',&RQFHDJDLQSURPRWHGHIIRUWVLQOLQHZLWK-DSDQ¶V&RRO%L]DQG:DUP%L]FDPSDLJQVRI¿FLDOHIIRUWVWRUHGXFHHOHFWULFSRZHUFRQVXPSWLRQE\OLPLWLQJWKHXVHRIDLUFRQGLWLRQLQJLQVXPPHUDQGZLQWHUWKURXJKPHDVXUHVVXFKDVWKHLQWURGXFWLRQRIPRUHUHOD[HGRI¿FHGUHVVFRGHV7KH&RPSDQ\DOVRFRQWLQXHGWRSURPRWHHIIRUWVDLPHGDWUHLQIRUFLQJHPSOR\HHV¶DZDUHQHVVRIWKHLPSRUWDQFHRIORZHULQJHQHUJ\FRQVXPSWLRQLQFOXGLQJUHSODFLQJVXSHUDQQXDWHG
OLJKW¿[WXUHVDQGDLUFRQGLWLRQLQJHTXLSPHQWLQRI¿FHVDQGVLWHVZLWKQHZHUKLJKHI¿FLHQF\PRGHOVWKDWVDWLVI\VWDQGDUGVVHWE\WKH(&&-IRULWV7RS5XQQHUSURJUDPWXUQLQJRIIOLJKWVZKHQQRWQHHGHGDQGLPSOHPHQWLQJPDQGDWRU\&ZLQWHUDQG&VXPPHUDLUFRQGLWLRQLQJVHWWLQJV

8

Reporting to the CDP

7KH&'3 IRUPHUO\WKH&DUERQ'LVFORVXUH3URMHFW LVDJOREDOQRQSURILWRUJDQL]DWLRQ 132 WKDWZRUNVRQEHKDOIRILQVWLWXWLRQDOLQYHVWRUVWRPRWLYDWHFRPSDQLHVWRGLVFORVHLQIRUPDWLRQRQLQLWLDWLYHVWRFRPEDWFOLPDWHFKDQJHDQGNH\HQYLURQPHQWDOGDWD7KH&'3DQDO\]HVDQGHYDOXDWHVLQIRUPDWLRQUHSRUWHGE\DSSUR[LPDWHO\FRPSDQLHVZRUOGZLGHLQFOXGLQJLQ-DSDQDQGFRPPXQLFDWHVLWV¿QGLQJVWRVDLGLQVWLWXWLRQDOLQYHVWRUV',&KDVEHHQUHSRUWLQJWRWKH&'3VLQFH7KH&'3KDVUHFRJQL]HGWKH&RPSDQ\¶VFRQVLVWHQWHQYLURQPHQWDOLQLWLDWLYHVDQGLQ¿VFDO\HDUDZDUGHGLWDQRYHUDOOVFRUHRI$ SRLQWVIRUGLVFORVXUHDQGDSHUIRUPDQFHFODVVRI$ VLJQL¿FDQWO\H[FHHGLQJWKHDYHUDJHIRUFRPSDQLHVEDVHGLQ-DSDQZKLFKZDV&

DIC Report 2016

61

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VOICE from the DIC GroupWe are promoting energy conservation with the aim of achieving a balance between corporate growth and sustainability.
7KHDGRSWLRQRIWKH3DULV$JUHHPHQWDW&23LQ'HFHPEHUZDVDKLVWRULFDOPLOHVWRQH8QGHUWKHDJUHHPHQWHPHUJLQJHFRQRPLHV
DUHDOVRUHTXLUHGWRLPSOHPHQWPHDVXUHVWRFRPEDWJOREDOZDUPLQJ$VDFRQVHTXHQFHZHKDYHVHHQDWLJKWHQLQJRIUHJXODWLRQVJRYHUQLQJ
JUHHQKRXVHJDVHPLVVLRQVLQPDQ\FRXQWULHVDQGUHJLRQV2XUQHZPHGLXPWHUPPDQDJHPHQWSODQ',&SRVLWLRQV³ORZFDUERQL]DWLRQ´
DVDFUXFLDOWKHPHWRUHVSRQGWRVRFLDOLPSHUDWLYHVJRLQJIRUZDUG:HZLOOFRQWLQXHWRLPSOHPHQWLQLWLDWLYHVDLPHGDWHQVXULQJWKDWHPSOR\HHV
of the global DIC Group recognize the importance of energy conservation to our ability to achieve a balance between corporate growth andsustainability and at motivating them to achieve the targets that have been set.
General Manager, Production Management Department Michio Uchiyama

Looking Ahead:LWKWKHJRDORIGHHSHQLQJXQGHUVWDQGLQJRIWKHLPSRUWDQFHRIHQHUJ\HI¿FLHQF\DFURVVWKH*URXS',&KDVLQDXJXUDWHGD
QXPEHURILPSRUWDQWQHZLQLWLDWLYHV,Q-DSDQIRUH[DPSOHWKH&RPSDQ\KDVFUHDWHGDIRUXPIRU',&*URXSHQHUJ\RI¿FHUVDW
principal production facilities to meet regularly and established four key themes to guide the efforts of working groups: promote
HQHUJ\FRQVHUYDWLRQ PDLQWDLQRULPSURYHZDVWHZDWHUWUHDWPHQWIDFLOLWLHV DGYDQFHMRLQWSXUFKDVLQJRIHQHUJ\RQDUHJLRQDOEDVLV FDSLWDOL]HRQWKHOLEHUDOL]DWLRQRIHOHFWULFSRZHUDQGJDVLQGXVWULHV HQKDQFHHOHFWULFDOWHFKQRORJLHVWRHOLPLQDWHSUREOHPVDULVLQJIURPHOHFWULFDOLVVXHVDQGLPSURYHWKHSHUIRUPDQFHRISRZHUV\VWHPV7KURXJKHIIRUWVLPSOHPHQWHGLQOLQHZLWKWKHVH
WKHPHVWKH*URXSZLOOSUREHGHHSHULQWRLVVXHVRIFRQFHUQWRVRFLHW\DQGIRVWHUH[SHUWVLQNH\DUHDVWRIXUWKHUUHLQIRUFH
responsiveness Groupwide.
2QDQRWKHUIURQW',&ZLOOFRQWLQXHWRSURPRWHDZDUHQHVVDPRQJWKHPDQDJHPHQWRIRYHUVHDV*URXSFRPSDQLHVLQFOXGLQJE\FRQGXFWLQJVHPLQDUVRQWKHLPSRUWDQFHRIDGGUHVVLQJFULWLFDOUHODWHG(6*LVVXHV%\VWHSSLQJXSVXFKHIIRUWV',&DLPVWR
enhance the Group’s environmental performance both in Japan and overseas.

DIC Report 2016

62

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&RUHDQG&DWHJRU\6SHFL¿F7KHPHVReducing Emissions of Chemicals into the Environment
Goals and Achievements of Major Initiatives Evaluations are based on self-evaluations of current progress. Key: ★★★ = Excellent; ★★ = Satisfactory; ★ = Still needs work
Objectives of initiatives

Goals for fiscal year 2015

Control emissions of chemical
substances (Reduce emissions of
4 6 2 P R T R *1 - d e s i g n a t e dsubstances and 89 chemic al
substances and one substancegroup t argeted by JCIA*2 forvoluntary control).

DIC Group (Japan): Total emissions of
392 metric tonnes (+8% from fiscal year
2014)

Achievements in fiscal year 2015

DIC Group (Japan): Total emissions of 394
metric tonnes (+8% from fiscal year 2014)

Evaluation

Goals for fiscal year 2016★★

PRTR-designated substances: Establish
reduction targets for individual domestic
sites and promote related initiatives(cumulative total of targets for domestic
production facilities: 388 metric tonnes(-1.6% from fiscal year 2015)).

*1 The PRTR is a scheme for assessing, aggregating and disseminating data on the sources of hazardous chemicals, amounts released into the environment and amounts transferred off-site from industrial
establishments via waste products.
*2 The JCIA is a general incorporated association. As one of Japan’s major industry organizations, JCIA is a member of the International Council of Chemical Associations (ICCA) and pursues the healthy
development of the chemical industry with other chemicals industry organizations around the world.

Basic Approach
As chemicals companies handle a considerably greater volume and more diverse range of chemical substances than companies in otherindustries, they must be extremely vigilant to prevent discharges of such substances into the environment. DIC and DIC Group companies
in Japan have worked to reduce emissions into the air, water and soil of substances designated under the Pollutant Release and Transfer
5HJLVWHU 3575 VLQFH¿VFDO\HDUDQGRIVXEVWDQFHVWDUJHWHGXQGHUDYROXQWDU\VFKHPHFUHDWHGE\WKH-DSDQ&KHPLFDO,QGXVWU\$VVRFLDWLRQ -&,$ VLQFH¿VFDO\HDU,Q¿VFDO\HDU',&LQWURGXFHG0%2DW',&*URXSFRPSDQLHVLQ*UHDWHU&KLQDDQGWKH$VLD±
3DFL¿FUHJLRQZLWKWKHDLPRIIXUWKHUHQFRXUDJLQJHPLVVLRQVUHGXFWLRQV

Principal Initiatives in Fiscal Year 2015
,Q¿VFDO\HDUWKH',&*URXS¶VSULQFLSDOLQLWLDWLYHVIRFXVHGRQFODVVFKHPLFDOVXEVWDQFHVGHVLJQDWHGE\WKH3575
DQGFKHPLFDOVXEVWDQFHV  H[FOXGLQJFODVVVXEVWDQFHV DQGRQHVXEVWDQFHJURXS²FKDLQK\GURFDUERQVZLWKWR
carbons—targeted for study by the JCIA. During the period, DIC and DIC Group companies in Japan used and/or produced
DQGRIWKHVHVXEVWDQFHVUHVSHFWLYHO\LQDPRXQWVH[FHHGLQJPHWULFWRQQH%RWK',&DQG',&*URXSFRPSDQLHVin Japan sought to meet their emissions reduction targets for PRTR-designated substances by reviewing cleaning processes
for reaction tanks and local exhaust ventilation devices. However, solvent recovery equipment at three sites malfunctioned,
resulting in a decrease in the equipment’s hours of operation, as a consequence of which DIC reported a 10% increase and DIC
Group companies reported an 8% increase in emissions of these substances.
2YHUVHDV',&*URXSFRPSDQLHVWUDFNHGHPLVVLRQVRIWDUJHWHGVXEVWDQFHVDQGUHSRUWHG¿QGLQJVWRUHJXODWRUVLQOLQHZLWKSHUWLQHQWQDWLRQDODQGUHJLRQDOUHJXODWLRQV,Q¿VFDO\HDU',&*URXSFRPSDQLHVLQ*UHDWHU&KLQDDQGWKH$VLD±3DFL¿FUHJLRQLQWURGXFHG0%2XVLQJSHUWLQHQWQDWLRQDOWDUJHWVDQGJXLGHOLQHVWKHUHE\UHLQIRUFLQJWKHLUFRPPLWPHQWWRVXFKHIIRUWVThe Group will continue working to attain both facility- and operations-related reductions targets.
,QWKH-&,$UHYLHZHGFKHPLFDOVXEVWDQFHVGHVLJQDWHGXQGHUWKH3575DVDUHVXOWRIZKLFKWKHQXPEHURIWDUJHWHGVXEVWDQFHVSUHYLRXVO\ZDVUHYLVHGWR

Number of Targeted Chemical Substances Used and/or
Produced in Amounts Exceeding 1.0 Metric Tonne
in Fiscal Year 2015

Environmental Emissions of Targeted Chemical Substances(551 Substances, Including those Designated by the PRTR,
and One Substance Group) in Fiscal Year 2015

Emissions into the air

DIC

106

DIC

DIC Group (Japan)

Emissions into water
Emissions into soil

115

Emissions into the air
DIC Group (Japan)

Emissions into water
Emissions into soil

DIC Report 2016

63

tonnes
208 metrictonnes11 metric
tonnes0 metric
tonnes
382 metrictonnes12 metric
tonnes0 metric

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Emissions of Targeted Chemical Substances(551 Substances and One Substance Group)in Fiscal Year 2015

DIC
Substance

DIC Group (Japan)

Emissions
Emissions
into the environment into the environment

Ethyl acetate

64 metric
tonnes

107 metrictonnesToluene53 metric
tonnes62 metric
tonnes

Methyl ethyl ketone

34 metric
tonnes59 metric
tonnesStyrene5 metric
tonnes39 metric
tonnesAcetone12 metric
tonnes23 metric
tonnes

Propyl alcohol

4 metric
tonnes21 metric
tonnes

Butyl acetate

0 metric
tonnes12 metric
tonnesDIC Report 2016

64

ESH
&RUHDQG&DWHJRU\6SHFL¿F7KHPHVReducing Environmental Impact on Air, Water and Soil
Goals and Achievements of Major Initiatives Evaluations are based on self-evaluations of current progress. Key: ★★★ = Excellent; ★★ = Satisfactory; ★ = Still needs work
Objectives of initiatives

Goals for fiscal year 2015

Achievements in fiscal year 2015

Goals for fiscal year 2016★★

 Reduce VOC emissions into the air.
 ( V W D E O L V KU H G X F W L R QW D U J H W VI R U
individual domestic sites and promote
related initiatives (cumulative total of
WDUJHWVIRUGRPHVWLFSURGXFWLRQIDFLOLties: 379 metric tonnes (-1.6% fromfiscal year 2015)).

DIC Group (Japan): Total emissions of
382 metric tonnes (-22.0% from fiscal
year 2014)

DIC Group (Japan): Total emissions of
380 metric tonnes (+8.0% from fiscal
year 2014)

Reduce VOC emissions into
the air.

Evaluation

1 Addressing VOC Regulations

Emissions of VOCs DIC
into the Air in Fiscal<HDU

+10％

IURPÀVFDO\HDU

382

208

354

189

261

466

555

283

310

309

561

745

985

Having succeeded in achieving a voluntary target—set in fiscal Emissions of Targeted Chemical Substances into the Air
year 2007—for reducing emissions of VOCs into the air of 30% (551 Substances and One Substance Group)by fiscal year 2010 (using fiscal year 2000 as the base year) for (Metric tonnes)
1,000
the DIC Group in Japan, domestic Group companies continue topursue steady annual reductions through facility improvements
and emissions management. In fiscal year 2015, DIC emissions 500of VOCs into the air generated by DIC amounted to 208 metric
WRQQHVDQLQFUHDVHRIIURP¿VFDO\HDUZKLOHWKRVHE\domestic Group companies totaled 382 metric tonnes, up 8.0%.
0
00
10
11
12
13
14
The principal factor behind these increases is malfunctioning(Base year)
solvent recovery equipment at three sites, which resulted in a
DIC
DIC Group (Japan)
decrease in the equipment’s hours of operation.
Overseas, Group companies in Greater China and the Asia–
Pacific region are using MBO to promote ongoing emissions
reductions. In the PRC, in particular, the Group is updating
facilities and stepping up management practices in response to thetightening of regulations governing emissions of VOCs.

15 (Fiscal year)

DIC Group (Japan)+8％

IURPÀVFDO\HDU

Updated emissions treatment facilities

2 Managing Water Resources
Usable fresh water on the earth’s surface is said to account for only around 0.01% of the planet’s total fresh
ZDWHUUHVRXUFHV$FFRUGLQJO\¿QGLQJHIIHFWLYHZD\VWRFRQVHUYHDQGPDQDJHZDWHUUHVRXUFHVLVDFUXFLDOJOREDO
challenge. The DIC Group withdraws fresh water (tap water and industrial water) for use in production processes
and air conditioning and for drinking, among others. The Group also discharges wastewater—after purifying it in
OLQHZLWKLQWHUQDOVWDQGDUGVWKDWH[FHHGRI¿FLDOVWDQGDUGVLQWKHFRXQWULHVDQGWHUULWRULHVZKHUHLWKDVRSHUDWLRQV²
LQWRULYHUVDQGRWKHUIUHVKZDWHUERGLHV$WPDMRUVLWHVWKH*URXSUHFRYHUVSXUL¿HGZDVWHZDWHUDQGUHXVHVLWLQ
production processes, helping reduce both fresh water withdrawn and wastewater discharged by these sites.
In fiscal year 2015, the DIC Group promoted improvements to production processes and the sharing of
information Groupwide, as well as sought to integrate data relevant to fresh water withdrawn and used andZDVWHZDWHUGLVFKDUJHG1RQHWKHOHVVIUHVKZDWHUZLWKGUDZQE\WKHJOREDO',&*URXSDPRXQWHGWR
m3WLPHVWKH¿VFDO\HDUOHYHOFRPSULVLQJZLWKGUDZDOVE\WKH',&*URXSLQ-DSDQRIP3, up
WLPHVDQGE\*URXSFRPSDQLHVRYHUVHDVRIP3, an increase of 5.0%. Wastewater discharged by
WKHJOREDO',&*URXSLQ¿VFDO\HDUDPRXQWHGWRP3WLPHVWKH¿VFDO\HDUOHYHO7KH
principal reason behind the increase in fresh water withdrawn was the fact that domestic Group companies with
DEXQGDQWZDWHUULJKWV P3/year) were newly included in the scope of reporting.The principal reason
behind the increase in fresh water withdrawn was the fact that domestic Group companies with abundant water
ULJKWV P3/year) were newly included in the scope of reporting.
DIC Report 201665

)UHVK:DWHU:LWKGUDZQE\WKH*OREDO',&*URXSLQ)LVFDO<HDU

40,925,000㎥

1.6 times

WKHÀVFDO\HDUOHYHO:DVWHZDWHU'LVFKDUJHGE\WKH*OREDO',&*URXSLQ)LVFDO<HDU

29,396,000㎥

2.1times

WKHÀVFDO\HDUOHYHO

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3 Soil and Groundwater Pollution Studies
Japan’s Water Pollution Control Act was revised in 2012 to tighten structural standards governing equipment installed to prevent
groundwater contamination caused by chemical substances. In addition to complying strictly with this Act and with the Soil
Contamination Countermeasures Act, the DIC Group in Japan implements soil and groundwater surveys and countermeasures
as necessary and assesses related environmental and safety risks.

4 Reducing SOx, NOx and COD
SOx and NOx Emissions Volumes(Metric tonnes)
300

204
202

200

205
164

194
157
82

69

100

45

186
150
64

185
142

177
137

36 46

35 38

14

15

58

44

0

90

11

12

SOx emissions

DIC

DIC Group (Japan)

NOx emissions

DIC

DIC Group (Japan)

13(Fiscal year)

COD(Metric tonnes)

530

527

495

491

473

469

483

480

500

655

844

1,000

745

7DNLQJILVFDO\HDUDVWKHEDVH\HDU',&
Group companies in Japan have worked toreduce sulfur oxide (SOx) and nitrogen oxide(NOx) emissions—key causes of acid rain—fromboilers. The Group is also working to reduce
chemical oxygen demand (COD), an indicator ofwater quality deterioration in wastewater, thereby
enhancing its water quality management.
Overseas, Group companies are also
switching fuel from light oil to natural gas andreplacing light oil-fired and heavy oil-fired
boilers with waste wood–¿UHGELRPDVVERLOHUV
at sites with appropriate infrastructure.
In the area of water quality management,
the Group is also working to protect theenvironment, including promoting the reuseof water and installing closed-loop water
recycling and wastewater treatment systems
at its sites that purify water to a level thatexceeds the legally mandated standard.

0

90

11

(Base year)
DIC

12

13

15 (Fiscal year)

14

DIC Group (Japan)

5 &RPSO\LQJZLWK5HJXODWLRQV*RYHUQLQJ(PLVVLRQVRI'LR[LQV
In Japan, the DIC Group monitors emissions of dioxins from waste incinerators that produce these byproducts, a group ofcompounds with diverse possible isomers of varying toxicities. At present, the Group has six such facilities. Continuous efforts
to reduce emissions levels have enabled the Group to achieve results that greatly surpass standards specified in the Law
Concerning Special Measures Against Dioxins.
Dioxin Emissions from Domestic DIC Group Incinerators

Site

Chiba Plant (DIC)
Hokuriku Plant (DIC)

6FDOHRIIDFLOLW\ LQFLQHUDWLQJFDSDFLW\

Waste gasStandard (ng-TEC/Nm3)

Wastewater(PLVVLRQVUHSRUWHGLQÀVFDO
\HDU QJ7(&1P3)

Standard (ng-TEC/Nm3) (PLVVLRQVUHSRUWHGLQÀVFDO\HDU QJ7(&1P3)

3 metric tonnes/hr

5.0

1.21

10

0.16

0.28 metric tonnes/hr

5.0

0.00000039

100.00029

Approx.

DIC Interior Co., Ltd.

Approx.

0.1 metric tonnes/hr

10.0

0.063

NA

ー

Hokkaido Plant
 ',&.LWDQLKRQ3RO\PHU&R/WG

Approx.

0.2 metric tonnes/hr

10.0

0

NA

ー

Tohoku Plant
 ',&.LWDQLKRQ3RO\PHU&R/WG

Approx.

0.2 metric tonnes/hr

10.0

0.00000057

NAー

Harima Plant(Seiko PMC Corporation)

Approx.

0.2 metric tonnes/hr

10.0

＜0.07

NA

ー

DIC Report 2016

66

ESH
&RUHDQG&DWHJRU\6SHFL¿F7KHPHVReducing Industrial Waste
Goals and Achievements of Major Initiatives Evaluations are based on self-evaluations of current progress. Key: ★★★ = Excellent; ★★ = Satisfactory; ★ = Still needs work
Objectives of initiatives

Goals for fiscal year 2015

Achievements in fiscal year 2015 Evaluation

Reduce industrial waste
disposed of as landfill(achieve “zero emissions”).

Reduce industrial waste disposedof as landfill (maintain “zero emissions”):
DIC Group (Japan): 81.5 metrictonnes (+1.8% from fiscal year
2014)

Reduce industrial wasteg e n e r ate d by p r o du c t i o nfacilities.

D I C G r o u p (J a p a n): 2 9, 6 8 2
metric tonnes (-4.4% from fiscal
year 2014)

DIC Group (Japan): 28,963 metrictonnes (-6.7% from fiscal year 2014)

Promote recycling.

Promote recycling at DIC Group
companies and strive to improve
resource recycling.

DIC Group (Japan) resource recycling
rate: 89% (+4 percentage points fromfiscal year 2014)

DIC Group (Japan): 139.9 metrictonnes (+73.8% from fiscal year 2014)(“zero emissions” maintained)

★★

★★★

★★★

Goals for fiscal year 2016
Implement measures at each site with the following goal: Reduce industrial waste disposed of as landfill(for sites that have achieved “zero emissions,”
maintain that status) (cumulative total of targets
for domestic production facilities: 64.2 metrictonnes (-54% from fiscal year 2015)).
 Reduce industrial waste generated by production
facilities 1.0% (cumulative total of targets fordomestic production facilities: 29,127 metrictonnes (up slightly from fiscal year 2015)).

Promote recycling at DIC Group companies and strive to improve resource
recycling.

Basic Approach
7KH',&*URXSDLPVWRPLQLPL]HLQGXVWULDOZDVWHE\UHF\FOLQJDQGUHXVLQJPDWHULDOV6LQFH¿VFDO\HDU',&KDVEHHQLQYROYHG
LQD]HURHPLVVLRQVLQLWLDWLYH DLPHGDWUHGXFLQJLQGXVWULDOZDVWHGLVSRVHGRIDVODQG¿OO',&KDVGHSOR\HG]HURHPLVVLRQVLQLWLDWLYHVDW',&*URXSFRPSDQLHVLQ-DSDQVLQFH¿VFDO\HDU:LWKWKHDLPRIH[SDQGLQJHIIRUWVDFURVVWKHJOREDO',&*URXSLQ¿VFDO\HDU',&EHJDQWRLQWURGXFH0%2DWRYHUVHDV*URXSFRPSDQLHV',&VXEFRQWUDFWVWKHWUHDWPHQWRILQGXVWULDOZDVWHWREHGLVSRVHG
RIDVODQGILOODQGHQVXUHVWKDWZDVWHLVSURSHUO\WUHDWHGE\SURPRWLQJVWULFWFRPSOLDQFHDQGRQVLWHFRQILUPDWLRQE\GHVLJQDWHG
GHSDUWPHQWVDWHDFKRILWVSURGXFWLRQIDFLOLWLHV=HURHPLVVLRQVLQLWLDWLYHV',&LVSURPRWLQJLQLWLDWLYHVDLPHGDWUHGXFLQJWKHYROXPHRIZDVWHGLVSRVHGDVODQG¿OOIURPWKH¿VFDO\HDUOHYHO

Principal Initiatives in Fiscal Year 2015
5HGXFLQJ,QGXVWULDO:DVWH'LVSRVHGRIDV/DQGÀOO

7KH',&*URXSZRUNVDFWLYHO\WRUHGXFHLWVGLVSRVDORILQGXVWULDOZDVWHDVODQG¿OOE\UHF\FOLQJFLQGHUVGXVWDQGVOXGJHLQWRDPRQJRWKHUVURDGEHGPDWHULDOVDQGUDZPDWHULDOVIRUFHPHQWXVLQJWKHUPDOUHF\FOLQJWRUHFRYHUZDVWHKHDWDQGUHGXFLQJ
production losses by increasing yields.
Initiatives in Japan,QILVFDO\HDU',&SUHVVHGIRUZDUGZLWKDQXPEHURINH\RQJRLQJLQLWLDWLYHV+RZHYHUFRQWDPLQDWLRQZLWKKRXVHKROGPHWDODQGFRDWLQJVZDVWHQHFHVVLWDWHGWKHGLVSRVDORIZRRGFKLSVSURFXUHGDVIXHOIRUWKH.DVKLPD3ODQW¶VELRPDVVERLOHUDVODQG¿OODVD
FRQVHTXHQFHRIZKLFKZDVWHGLVSRVHGRIDVODQG¿OOLQ¿VFDO\HDUE\',&URVHWRPHWULFWRQQHVWLPHVWKH¿VFDO\HDUOHYHO PHWULFWRQQHV 7KH&RPSDQ\FRQWLQXHGWRDGYDQFHPHDVXUHVGHVLJQHGWRUHGXFHWKHYROXPHRIZDVWHLWGLVSRVHVRI
DVODQG¿OO7KHVHLQFOXGHGVHDUFKLQJIRUQHZSURFHVVLQJ¿UPVWKDWUHF\FOHUHFRYHUHGZDVWHPHWDODQGFRDWLQJV,QFRQWUDVWLQGXVWULDOZDVWHJHQHUDWHGE\GRPHVWLF',&*URXSFRPSDQLHVGHFOLQHGDSSUR[LPDWHO\IURPWKH¿VFDO\HDUOHYHOWKDQNVWRHIIRUWVWRPDNHHIIHFWLYHXVHRIZDVWHZDWHULQSURGXFWLRQSURFHVVHV$VDFRQVHTXHQFHWKHWRWDOYROXPHRILQGXVWULDOZDVWHGLVSRVHGRIDVODQG¿OOE\WKH',&*URXSLQ-DSDQZDVPHWULFWRQQHVWLPHVWKH¿VFDO\HDUOHYHO PHWULFWRQQHV ZLWKWKH
SULQFLSDOFRQWULEXWLQJIDFWRUEHLQJWKHLQFUHDVHDWWKH.DVKLPD3ODQWUHVXOWLQJIURPWKHLVVXHZLWKELRPDVVERLOHUIXHO,Q¿VFDO\HDUHDFK',&*URXSFRPSDQ\LQ-DSDQZLOOVWHSXSWKHLPSOHPHQWDWLRQRIPHDVXUHVDLPHGDWUHGXFLQJWKHWRWDOYROXPHRILQGXVWULDOZDVWHJHQHUDWHGE\LWVSURGXFWLRQIDFLOLWLHVE\IURPWKH¿VFDO\HDUOHYHODQGRUUHGXFHWKHYROXPHRILQGXVWULDOZDVWHWKH\GLVSRVHRIDVODQG¿OOZKLOHDWWKHVDPHWLPHSURPRWLQJ]HURHPLVVLRQVLQLWLDWLYHV',&DQGGRPHVWLF',&*URXSFRPSDQLHVDOVRFRQWLQXHGZRUNLQJWRHQVXUHWKHDSSURSULDWHGLVSRVDORIZDVWHSRO\FKORULQDWHGELSKHQ\OV 3&%V 
LQ¿VFDO\HDU,QDGGLWLRQWKHVHFRPSDQLHVSURPRWHGWKHVWULFWPDQDJHPHQWRIXQSURFHVVHGZDVWHLQFOXGLQJWUDQVIRUPHUVFDSDFLWRUVDQGVWDELOL]HUVWKURXJKSURSHUFROOHFWLRQDQGVWRUDJHLQGHGLFDWHGZDUHKRXVHVDIC Report 2016

67

ESH

（Metric tonnes）

DIC

48
106

44
86

49
80

116
139

03

104
158

01

04

metrictonnes

90
207

00

139

89
232

02

05

06

07

08

09

10

11

12

13

14

15（Fiscal year）

0（Base year）

metrictonnes

125
320

-7％

3,000

116
128
537

DIC Group (Japan)

6,000

312
991

IURPÀVFDO\HDU

DIC Group(Japan)

DIC

537
1,288

IURPÀVFDO\HDU

-11％

1,560
2,296

-4％

3,426
4,326

9,000

4,190

DIC Group companies in Japan

5,581

DIC

,QGXVWULDO:DVWH'LVSRVHGRIDV/DQGÀOO
7,981

Industrial Waste Generated
in Fiscal Year 2015

DIC Group (Japan)

Initiatives Overseas,QDGGLWLRQWRHQVXULQJWKHGLVSRVDORILQGXVWULDOZDVWHLQDPDQQHUWKDWFRPSOLHVZLWKQDWLRQDODQGUHJLRQDOOHJDODQGUHJXODWRU\UHTXLUHPHQWVWKH',&*URXS¶VRYHUVHDVSURGXFWLRQIDFLOLWLHVZRUNWRPLQLPL]HLQGXVWULDOZDVWHWKURXJKWKHYROXQWDU\UHF\FOLQJDQGUHXVHRIPDWHULDOV,Q
¿VFDO\HDURYHUVHDV*URXSFRPSDQLHVVRXJKWWRUHLQIRUFHHIIRUWVWRUHGXFHLQGXVWULDOZDVWHE\LQWURGXFLQJ0%2
,QILVFDO\HDU',&*URXSFRPSDQLHVLQWKH$PHULFDVDQG(XURSH*UHDWHU&KLQDDQGWKH$VLD±3DFLILFUHJLRQGHSOR\HG
PHDVXUHVDLPHGDWDFKLHYLQJUHGXFWLRQVLQLQGXVWULDOZDVWHJHQHUDWHGGXULQJYDULRXVSURGXFWLRQSURFHVVHVWKDWH[FHHGHGQDWLRQDOO\DQGUHJLRQDOO\PDQGDWHGOHYHOV1RQHWKHOHVVWKHWRWDOYROXPHRILQGXVWULDOZDVWHJHQHUDWHGE\',&*URXSSURGXFWLRQIDFLOLWLHVRYHUVHDVURVH/RRNLQJDKHDGUHJLRQDOKHDGTXDUWHUVLQWKHVHDUHDVZLOOIRFXVRQIXUWKHUUHLQIRUFLQJFRPSOLDQFHZLWKORFDOODZVDQGUHJXODWLRQVZKLOHDWWKHVDPHWLPHFRRSHUDWLQJZLWK',&¶V5HVSRQVLEOH&DUHDQG3URGXFWLRQ0DQDJHPHQWGHSDUWPHQWVWRDQDO\]HWKHUHDVRQVIRUWKLVLQFUHDVHZLWKWKHDLPRIOLPLWLQJWKHJHQHUDWLRQRILQGXVWULDOZDVWHDQGUHGXFLQJWKHYROXPHRILQGXVWULDOZDVWHGLVSRVHGRIDVODQG¿OO:DVWHZDWHUWUHDWPHQWIDFLOLW\ ',& 0DOD\VLD 6GQ%KG

DIC Report 2016

68

ESH

2YHUYLHZRI(QYLURQPHQWDO,PSDFWRIWKH',&*URXS¶V2SHUDWLQJ$FWLYLWLHV

Total energy consumption(crude oil equivalent)

OUTPUTDIC Group(Japan)INPUT

7KH',&*URXSTXDQWL¿HVLWVHQYLURQPHQWDOLQSXWV UHVRXUFHVFRQVXPHG VXFKDVHQHUJ\DQGZDWHUFRQVXPSWLRQDQGRXWSXWVWKDWLVHPLVVLRQVLQWRWKHHQYLURQPHQWDQGXVHVLWV¿QGLQJVWRIRUPXODWHFRPSUHKHQVLYHDQGHI¿FLHQWVWUDWHJLHVIRUUHGXFLQJLWV
HQYLURQPHQWDOIRRWSULQW
7KHFKDUWEHORZLVDFRPSUHKHQVLYHLOOXVWUDWLRQRIWKHHQYLURQPHQWDOLPSDFWRIWKH',&*URXS¶VGRPHVWLFRSHUDWLQJDFWLYLWLHVLQ¿VFDO\HDU7KHFKDUWVKRZVWKHHQYLURQPHQWDOLPSDFWIRUWZRLQSXWLWHPV WRWDOHQHUJ\FRQVXPSWLRQDQGWRWDOZDWHUFRQVXPSWLRQ DQGVL[RXWSXWLWHPV HPLVVLRQVRIFKHPLFDOVXEVWDQFHV LQFOXGLQJWKRVHGHVLJQDWHGXQGHUWKH3575 1 
DQGRQHVXEVWDQFHJURXS 2HPLVVLRQVRI&22HPLVVLRQVRI12[HPLVVLRQVRI62[&2'LQZDVWHZDWHUDQGLQGXVWULDOZDVWHGLVSRVHGRIDVODQG¿OO 

108,962㎘※

Production
volume-2.6

893,000
metric tonnes

382 +8.0% 38

26,039,000

1,471,000
metric tonnes（-2.2％）%
from fiscal year 2014

Industrial waste disposedof as landfill

2.3 times

139

3 the fiscal year 2014 level

12

-1.6

0

Emissions into the air
CO2 emissions

Total water
consumption

408,000 +1.4%

metric tonnes from fiscal year 2014

Industrial waste
disposed of as landfill%
from fiscal year 2014

27,090 +6.2
metric tonnes

 7KH 3575 LV D VFKHPH IRU DVVHVVLQJ DJJUHJDWLQJ DQG GLVVHPLQDWLQJ GDWD RQ WKH VRXUFHV RI KD]DUGRXV FKHPLFDOVDPRXQWVUHOHDVHGLQWRWKHHQYLURQPHQWDQGDPRXQWVWUDQVIHUUHGRIIVLWHIURPLQGXVWULDOHVWDEOLVKPHQWVYLDZDVWHSURGXFWV 7KH ³ VXEVWDQFHV DQG RQH VXEVWDQFH JURXS´ FRPSULVHV  FKHPLFDO VXEVWDQFHV GHVLJQDWHG E\ WKH 3575 DQG 
VXEVWDQFHVDQGRQHVXEVWDQFHJURXSWDUJHWHGIRUVWXG\E\WKH-&,$

DIC Report 2016

69

Wastewater
discharged

3,357,000+12.4 %

Emissions into soil

10,862,000㎥ +5.0

+74.0 %

metric from fiscal year 2014
tonnesSoil-related emissions oftargeted substances(551 substances andmetricone substance group)
tonnesAquatic emissions of targeted substances(551 substances and%metricone substance group)
tonnes from fiscal year 2014

OUTPUT

INPUT

176,594 ㎘ +0.0mfiscalyear 2014-16.0 % fromEmissions into soil

COD inmetric +59.0 %wastewater 844 tonnes from fiscal year 2014

the fiscal year
times 2014 level

Total energy consumption(crude oil equivalent)

metrictonnesEmissions into water
Wastewater discharged

fiscalyear 2014-4.3 % fromSOx emissions

metric tonnes from fiscal year 2014

30,063,000㎥

Production
volumemetrictonnesmetric tonnes from fiscal year 2014

Atmospheric emissions of targeted substances(551 substances and one substance group)from fiscal% year 2014

Total water
consumption

2.4

NOx emissions

249,000 -2.4% 177* Renewable energy is not included in the above figures.

（-1.5％）DIC Group(Overseas)

Emissions into the air
CO2 emissions

from fiscal year 2014%

from fiscal year 2014

m3

ESH
&RUHDQG&DWHJRU\6SHFL¿F7KHPHVManaging Chemical Substances in Products
Goals and Achievements of Major Initiatives (YDOXDWLRQVDUHEDVHGRQVHOIHYDOXDWLRQVRIFXUUHQWSURJUHVV.H\★★★ ([FHOOHQW★★ 6DWLVIDFWRU\★ 6WLOOQHHGVZRUN
Objectives of initiatives

Goals for fiscal year 2015

Respond to requirements relating
to chemical product information.

Provide education for employees of
DIC Group companies and affiliates
in the PRC regarding legal andregulatory compliance.

Comply with overseas regulat i o n s (e.g ., t h e EU R E AC H
regulation).

Achievements in fiscal year 2015

Evaluation

Goals for fiscal year 2016

 P r e p a r e d f o r t h e a s s i g n m e nt offull-time managers in charge of legal
and regulatory compliance to regional
headquarters.

★★

 Assign full-time managers in charge oflegal and regulatory compliance toregional headquarters.

 Reinforced local information gathering
configuration.

 Promote use of the Wercs at overseas
Group companies.

 Promoted use of the Wercs atoverseas Group companies.

 Comply with Taiwan’s Toxic Chemical
Substances Control Act and Occupational Safety and Health Act.

 Took steps to comply with Taiwan’s
Toxic Chemical Substances Control
Act and Occupational Safety and
Health Act.

★★★

 Expand local information gathering
configuration.

 Continue to promote use of the Wercs
at overseas Group companies.

★★★

 Continue taking steps to comply with
Taiwan’s Toxic Chemical Substances
Control Act and Occupational Safety
and Health Act.
 Promote the registration of chemical
substances to which REACH requires.

Promoting Safety for Chemical Substances and Products
Basic Approach and Framework for Implementation,QWKH81(FRQRPLF&RPPLVVLRQIRU(XURSHLVVXHGWKH¿UVWHGLWLRQRIWKH*OREDOO\+DUPRQL]HG6\VWHPRI&ODVVL¿FDWLRQ
DQG/DEHOOLQJRI&KHPLFDOV *+6 WKHLGHDEHLQJWRUHGXFHFKHPLFDOULVNVWKURXJKDQLQWHUQDWLRQDOO\KDUPRQL]HGDSSURDFKWRFODVVL¿FDWLRQRIFKHPLFDOVE\W\SHDQGWR[LFLW\WKHFOHDUGLVSOD\RILQIRUPDWLRQRQODEHOVIRUEHWWHUXQGHUVWDQGLQJDQGWKH
provision of SDSs.
7RUHVSRQGVZLIWO\WRUHTXHVWVWRUHGXFHULVNVE\SURYLGLQJFXVWRPHUVZLWKVXIILFLHQWLQIRUPDWLRQRQKD]DUGVDVVRFLDWHGZLWKFKHPLFDOVXEVWDQFHV',&HVWDEOLVKHG&,5,86 &KHPLFDO6XEVWDQFH,QIRUPDWLRQ&RPSUHKHQVLYH0DQDJHPHQW6\VWHP IRUGRPHVWLF
SURGXFWVLQ&,5,86FHQWUDOL]HVWKHPDQDJHPHQWRILQIRUPDWLRQDERXWUDZPDWHULDOVDQGFKHPLFDOVWRIDFLOLWDWHWKHSURYLVLRQRIUHOLDEOH6'6V7KHV\VWHPDOVRDXWRPDWLFDOO\FKHFNVYDULRXVODZVDQGUHJXODWLRQV7KHVHLQFOXGHVHFXULW\H[SRUWFRQWUROUXOHVWKH$FWRQWKH(YDOXDWLRQRI&KHPLFDO6XEVWDQFHVDQG5HJXODWLRQRI7KHLU0DQXIDFWXUHHWFWKH,QGXVWULDO6DIHW\DQG+HDOWK$FW
and the Poisonous and Deleterious Substances Control Act. In 2013, DIC began using the Wercs (a global SDS and label creation
V\VWHPGHYHORSHGZLWKNQRZKRZIURP',& IRUSURGXFWVIRUH[SRUW$VDUHVXOW',&QRZKDVDVWUXFWXUHWKDWHQDEOHVLWWRFRPSLOH
SDSs for more than 250,000 products that comply with national and regional laws and regulations and is accessible in all necessary
ORFDOODQJXDJHV,Q$SULO',&EHJDQXVLQJWKH:HUFVWRLVVXH6'6VDQGODEHOVIRUDOOH[SRUWHGSURGXFWV$VVSHFLDOL]HGH[SHUWLVHLQFKHPLFDOVXEVWDQFHPDQDJHPHQWLVHVVHQWLDO',&IRFXVHVRQWUDLQLQJLQWKHPDQXIDFWXUHLPSRUWand handling of chemicals in accordance with applicable laws and regulations and draws on its proprietary licensing system to
HQKDQFHWKHVNLOOVRIHPSOR\HHV
Framework for Promoting the Safety of Chemical Substances and Products

CIRIUS / The Wercs
Centralize management of
information on raw materials
Centralize management ofchemical substance information

Foster experts

Synergies

Licensing system

Raise employee expertise

Training

Proviside highly reliable SDSs and creation of GHS-compliant labels

DIC Report 2016

70

ESH

5HGXFLQJ5LVNVE\3URYLGLQJ,QIRUPDWLRQ:RUOGZLGH
Maximizing the Wercs Global SDS and Label Creation System,Q$SULO',&FHQWUDOL]HGWKHPDQDJHPHQWRILQIRUPDWLRQRQWKHFRPSRVLWLRQRIFKHPLFDOVXEVWDQFHVLQH[SRUWHGSURGXFWVand on chemical substance legislation in various countries and regions, switching to the Wercs, a new system that automatically
FUHDWHVSURGXFW6'6VLQWKHODQJXDJH²DQGLQFRPSOLDQFHZLWKWKHODZVDQGUHJXODWLRQV²RILQGLYLGXDOH[SRUWGHVWLQDWLRQVFUHDWLQJDIRXQGDWLRQIRULWVJOREDOLQIRUPDWLRQV\VWHPDQGKHOSLQJUHGXFHULVNVIRUFXVWRPHUVDIC employs CIRIUS to centrally manage raw materials and chemical substance information for products manufactured in-DSDQ&,5,86DXWRPDWLFDOO\FKHFNVWKH)RUHLJQ([FKDQJHDQG)RUHLJQ7UDGH$FWWKH6HFXULW\7UDGH&RQWURO/DZWKH$FWRQ
the Evaluation of Chemical Substances and Regulation of Their Manufacture, etc., and the Chemical Substances Control Law,
DVZHOODVWKH,QGXVWULDO6DIHW\DQG+HDOWK$FWDQGWKH3RLVRQRXVDQG'HOHWHULRXV6XEVWDQFHV&RQWURO$FWWRVZLIWO\VXSSO\highly reliable SDSs.
)RUSURGXFWVIRUH[SRUW',&WUDGLWLRQDOO\UHVSRQGHGWRUHJXODWRU\UHTXLUHPHQWVRQDFRXQWU\E\FRXQWU\EDVLVE\XVLQJVRIWZDUHDQGRXWVRXUFLQJSURFHGXUHVWRWKLUGSDUWLHV7KH:HUFVZKLFKLQFRUSRUDWHVNQRZKRZDFFXPXODWHGE\',&LQWKH
FUHDWLRQDQGXVHRI&,5,86ZDVGHYHORSHGZLWKWKHDLPRIH[SHGLWLQJWKHSURYLVLRQRIVXFKLQIRUPDWLRQ7KH:HUFVIDFLOLWDWHV
the translation of data into 46 different languages—including the languages of the 19 countries and territories to which DIC
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of countries and territories in the Americas, Europe, Asia and elsewhere.
Since switching to the Wercs for creating SDSs and issuing labels
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been prepared using the Wercs. DIC is also promoting deployment
RIWKHV\VWHPWR*URXSFRPSDQLHVLQ-DSDQZKLFKDUHXVLQJWKH
Wercs in tandem with CIRIUS to ensure the effective management of
FKHPLFDOVXEVWDQFHVDFURVVWKH*URXS¶VGRPHVWLFVXSSO\FKDLQIn addition, with the aim of promptly updating its labels to comply
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VHWWLQJXSDQRQGHPDQGODEHOSULQWLQJV\VWHPWKDWOLQNVWKH:HUFVDIC provides information on chemical substances using CIRIUS in Japanand the Wercs overseas.
with production lines.

On-Demand Label Printing System Flowchart

Product A

Product A

Information on composition is inputA
GHS separation caution warning

Product B

Product B

The Wercs

Product C

Product names,
lot numbers,
net andother information

B
Label
printing
systemLabelprinter

Product CC

SAP

DIC Report 2016

71

ESH

Complying with Laws and Regulations
Collecting, Analyzing and Communicating the Latest Information

The principal goal governing the management of chemical substances worldwide is the goal, agreed upon at the World Summit on Sustainable'HYHORSPHQW :66' LQZKLFKLVWRHQVXUHE\WKDWFKHPLFDOVDUHXVHGDQGSURGXFHGLQZD\VWKDWOHDGWRWKHPLQLPL]DWLRQRIVLJQL¿FDQWDGYHUVHHIIHFW5HFHQW\HDUVKDYHVHHQWKH(XURSHDQ8QLRQ(EU enact the Registration, Evaluation, Authorisation and Restriction
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',&FROOHFWVWKHODWHVWLQIRUPDWLRQRQFKHPLFDOVXEVWDQFHVWKURXJKLQWHUQDWLRQDOFRQVXOWDQWVDQGH[SHUWVQHZVZLUHVHUYLFHVDQGFKHPLFDOV
industry associations to ensure that it can respond swiftly and effectively to revisions in laws. The Company supplies the latest information
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H[LVWLQJH[SRUWHGSURGXFWV,Q¿VFDO\HDUVWHSVZHUHWDNHQDFURVV$VLDWRUHLQIRUFHWKHPDQDJHPHQWRIFKHPLFDOVXEVWDQFHV2ISDUWLFXODUQRWHWKH52.¶V$FW
RQWKH5HJLVWUDWLRQDQG(YDOXDWLRQRI&KHPLFDOV .5($&+ FDPHLQWRIRUFHZKLOHWKH35&SXEOLVKHGWKH&DWDORJRI+D]DUGRXV&KHPLFDOV ,QUHVSRQVH',&ZRUNHGVWHDGLO\WRVWUHQJWKHQFRPPXQLFDWLRQVZLWKORFDO*URXSFRPSDQLHVDQGWRDQDO\]HLQIRUPDWLRQDQGVXEPLW
applications for registration of pertinent chemical substances.
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volume chemical substances, i.e., those produced in volumes of up to 100 metric tonnes per year, as well as promoting ongoing efforts to
UHVSRQGWRVXEVWDQFHHYDOXDWLRQVE\WKH(XURSHDQ&KHPLFDOV$JHQF\ (&+$ DQGPHPEHUVWDWHVLQWKH(8DQGFROOHFWLQJLQIRUPDWLRQRQ
5($&+VXEVWDQFHVRIYHU\KLJKFRQFHUQ 69+&V UHVWULFWHGVXEVWDQFHVDQGDXWKRUL]HGVXEVWDQFHV8QGHU5($&+EXVLQHVVHVEHDUIXOOUHVSRQVLELOLW\IRUHYDOXDWLQJWKHVDIHW\RIFKHPLFDOVXEVWDQFHVWKH\SURGXFHDQGRUXVHZLWKQRGLVWLQFWLRQPDGHEHWZHHQ³H[LVWLQJ´DQG
³QHZ´VXEVWDQFHV5($&+DOVRSURKLELWVWKHXVHRIVSHFLILHGFKHPLFDOVXEVWDQFHVWKDWSRVHXQDFFHSWDEOHULVNVWRKXPDQKHDOWKGlobal Chemical Substance Management Flowchart
R&D

Production

Sales

Use/
consumption

Disposal

Collection and provision of data
Evaluation of safety(Impact on human health; impact on the environment (ecosystems))

Creation of highly reliable SDSs, issue of labels, production of user manuals

Safe use (regulations regarding volume, restrictions on use)
Training in Chemical Substance Management&RPSOLDQFHZLWKODZVDQGRUGLQDQFHVLVDIXQGDPHQWDOUHTXLUHPHQWIRU',&DVDFRPSUHKHQVLYHFKHPLFDOVPDQXIDFWXUHUDQGWKXVFHQWUDOWRULVNPDQDJHPHQW$FFRUGLQJO\WKH&RPSDQ\HQGHDYRUVWRLPSURYHHPSOR\HHVDZDUHQHVVDQGNQRZOHGJHRIFKHPLFDOVXEVWDQFHUHJXODWLRQVLQ-DSDQDQGRYHUVHDVE\KROGLQJZRUNVKRSVDQGPDLQWDLQLQJDSURSULHWDU\LQWHUQDOOLFHQVLQJV\VWHP(IIRUWVLQFOXGHSURYLGLQJVSHFLDOL]HGWUDLQLQJIRULQGLYLGXDOVLQYROYHGLQH[SRUWLQJFKHPLFDOVXEVWDQFHVLQOLQHZLWKWKH)RUHLJQ([FKDQJHDQG)RUHLJQ7UDGH
Act, and for individuals involved in importing substances in line with the Act on the Evaluation of Chemical Substances and Regulation of Their Manufacture,
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GHVLJQDWHGWUDLQLQJDQGSDVVHGLQKRXVHH[DPLQDWLRQV7KHOLFHQVHVDUHYDOLGIRUHLWKHUWZRRUWKUHH\HDUV/LFHQVHVSHUPLWWKHVHLQGLYLGXDOVWRHQJDJH
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Fiscal year 2015
VXEVHTXHQWH[DPVClass A licensees
Advanced course
As of fiscal year 2015, 1,339 employees had qualified for a Class A license, which requires
licensees
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71 individuals earned licenses.
Class B licensees
5HFRJQL]LQJWKHLPSRUWDQFHRIIRVWHULQJH[SHUWVZLWKVRSKLVWLFDWHGVSHFLDOL]HGNQRZOHGJH',&*URXSFRPSDQLHVRYHUVHDVDOVRSURPRWHGDYDULHW\RILQLWLDWLYHV,Q¿VFDO\HDUFRPSDQLHVLQ
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1,339
213

DIC Report 2016

72

71

ESH

Holding Seminars on the Wercs in Greater China and the Asia–Pacific Region,Q NHHSLQJ ZLWK WKH IXOOIOHGJHG JOREDO GHSOR\PHQW RI WKH :HUFV ',& KDVGLVSDWFKHG5HVSRQVLEOH&DUH'HSDUWPHQWRI¿FHUVWRKROG¿YHVHPLQDUVLQ*UHDWHU&KLQDDQGWKH$VLD±3DFLILFUHJLRQ 7DLZDQ7KDLODQG0DOD\VLDDQG,QGRQHVLD VLQFH¿VFDO\HDU
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intent of legal revisions and steadily amass basic data and update information.
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RIWKH:HUFVPDNLQJLWSRVVLEOHWRSURYLGHYDOXDEOHDQGWLPHO\LQIRUPDWLRQWRFXVWRPHUVDQGUHGXFHRYHUDOOVRFLDOULVNV7DNLQJWKHRSLQLRQVDQGLPSUHVVLRQVRIVHPLQDUSDUWLFLSDQWVLQWRFRQVLGHUDWLRQ
DIC will continue to promote efforts to improve operability and data transmission
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The Wercs seminar

VOICE from the DIC Group
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In light of heightened global awareness of safety and the need to comply with pertinent laws and regulations, the Wercs, a comprehensive software,
SURYLGHVDVLPSOHFRQYHQLHQWZD\WRFUHDWH6'6VDQGLVVXH*+6ODEHOV',& 0DOD\VLD FXUUHQWO\H[SRUWVDVLJQL¿FDQWYROXPHRILWVSURGXFWV7KH
LQWURGXFWLRQRIWKH:HUFVKDVPDGHLWSRVVLEOHIRUXVWRFUHDWH6'6VDQGLVVXH*+6ODEHOVLQPXOWLSOHGLIIHUHQWODQJXDJHV7KH:HUFVKDVDXWRPDWHGDQGHQKDQFHGWKHÀH[LELOLW\RISURFHGXUHVXVHGLQWKHFUHDWLRQRI6'6V,WKDVDOVRSURYLGHGXVZLWKDQHIIHFWLYHZD\
to manage global compliance over the long term.
8VLQJWKH:HUFVPDNHVLWSRVVLEOHIRUXVWRGLUHFWRXUWLPHHQHUJ\DQGHIIRUWVWRFRQWULEXWLQJWRIXWXUHJURZWKAssistant Manager, Technical Administration R&D Center, DIC (Malaysia) Sdn. Bhd. Chuah Joo Beng

VOICE from the DIC Group:HDUHZRUNLQJWRUHLQIRUFHLQIRUPDWLRQJDWKHULQJDQGWUDLQLQJV\VWHPVLQ*UHDWHU&KLQDDQGWKH$VLD²3DFLÀFUHJLRQ)LVFDO\HDUEURXJKWWKHIXOOÀHGJHGLPSOHPHQWDWLRQDQGRUVWUHQJWKHQLQJRIOHJLVODWLRQSHUWDLQLQJWRFKHPLFDOVXEVWDQFHVLQ7DLZDQWKH35&
DQGWKH52.',&DQGORFDO*URXSFRPSDQLHVKDYHZRUNHGWRJHWKHUFORVHO\WRUHVSRQGEXWWKHEXUGHQRIRUJDQL]LQJDQGFRQ¿UPLQJLQGLYLGXDO
registration lists and data is substantial. Regulations governing chemical substances vary considerably in different countries and regions in terms
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to discern trends promptly and capable local staff. Accordingly, we continue to promote a variety of measures, including joining local chambers of
FRPPHUFHDQGXVLQJORFDOFRQVXOWLQJ¿UPVWRJDWKHULQIRUPDWLRQDVZHOODVZRUNLQJWRIRVWHUKXPDQUHVRXUFHVDWORFDOVXEVLGLDULHV/RRNLQJDKHDGZHZLOOFRQWLQXHWRFRPPXQLFDWHFORVHO\ZLWKJRYHUQPHQWLQGXVWU\DQGDFDGHPLFRUJDQL]DWLRQVLQPXOWLSOH¿HOGVZKLOHDWWKH
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Senior Manager in charge of regulatory aﬀairs, Responsible Care Department Masato Akama

DIC Report 2016

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ESH
&RUHDQG&DWHJRU\6SHFL¿F7KHPHVReport on Other Initiatives
Goals and Achievements of Major Initiatives Evaluations are based on self-evaluations of current progress. Key: ★★★ = Excellent; ★★ = Satisfactory; ★ = Still needs work
Objectives of initiatives

Goals for fiscal year 2015

Achievements in fiscal year 2015

Evaluation

Goals for fiscal year 2016

Repor t on Responsible Careinitiatives and prepare businesssite reports.

 Step up efforts to enhance the DIC
Group’s performance.
 Promote ongoing Responsible Careinitiatives tailored to local markets.

Steps were taken to establish a foundation for the creation of a system forstandardizing performance data thattakes into account both the laws andregulations of each country/region andlocal Group businesses.

★★★

 R e i n f o r c e a n d ex p a n d e f f o r t s t oenhance the DIC Group’s performance.
 Promote ongoing Responsible Careinitiatives tailored to local markets.

Implement measures for PCBs.

 Maintain system for storing and managing PCBs.
 Promote the proper disposal of equipment containing PCBs.

PCB waste was collected and stored in
an appropriate manner and disposed ofin accordance with the practices of theJapan Environmental Storage & Safety
Corporation (JESCO).

★★★

 Maintain system for storing and managing PCBs.
 Promote the proper disposal of equipment containing PCBs.

Protect the ozone layer.

 Reinforce framework for managing
equipment containing CFCs.
 Continue promoting efforts to avoid theadoption of new raw materials containing specified CFCs.

 The adoption of new raw materials
containing specified CFCs was avoided.
 In accordance with Japan’s revised Act
on Ensuring the Implementation of
Recovery and Destruction of Fluorocarbons concerning Designated Products,
the amount of CFCs leaked at domestic
DIC Group companies was ascertained.

★★★

 Reinforce framework for managing
equipment containing CFCs.
 Continue promoting efforts to avoid theadoption of new raw materials containing specified CFCs.
 Continue to ascertain the amount of CFCs
leaked at domestic DIC Group companies
and promote measures to prevent leakage.

Asbestos

Ensure awareness of the potential risks
associated with the discovery of asbestos during demolition or when retrofitting
equipment and appropriate responses.

Materials containing asbestos, including
insulation, were discovered during theremoval of equipment and were
removed and disposed of in a legally
appropriate manner.

★★★

Ensure awareness of the potential risks
associated with the discovery of asbestos during demolition or when retrofitting
equipment and appropriate responses.

Train raw materials and productsafety experts.

 Enhanc e the c apabilities of ESH
coordinators in Greater China and theAsia–Pacific region.
 Educate employees about chemicals u b s t an c e s i n r a w m at e r i a l s a n d
products and about compliance withrelated laws and regulations and build aframework for such activities.

 Support was provided for efforts toe n h a n c e t h e c a p a b i l i t i e s o f ES H
coordinators in Greater China and theAsia–Pacific region.
 In Greater China, the role of ESH
coordinators in industry organizations
was expanded.

★★★

 Provide support and direction for efforts
to enhance the capabilities of ESH
coordinators in Greater China and theAsia–Pacific region.
 Continue to provide and increase the sophistication of education, training and direction.
 Promote expert-led training for employees regarding laws and regulations.

DIC Report 201674

Quality&RUHDQG&DWHJRU\6SHFL¿F7KHPHV

Enhancing Product Quality and Customer Satisfaction
Goals and Achievements of Major Initiatives Evaluations are based on self-evaluations of current progress. Key: ★★★ ([FHOOHQW★★ 6DWLVIDFWRU\★ = Still needs work
Objectives of initiatives

Goals for fiscal year 2015

Achievements in fiscal year 2015

Evaluation

Goals for fiscal year 2016

Improve internal audits, viewing them as
an oppor tunit y to enhance qualit ymanagement.

Information on best practices and internal
audit methods, including for the domestic
DIC Group, was published in-house andinitiatives aimed at enhancing internal
audits were rolled out Groupwide.

★★★

Firmly establish and promote awarenessof product quality as essential to upholding a sound operating foundation.

Create a framework that will further
strengthen the DIC Group’s QMS.

A Quality Assurance Department was established within
DIC Corporation to coordinate quality management
across the DIC Group and quality assurance sections
were established within each product division, facilitating
the division of functions and creating a QMS that is bothprompt and meticulous.

★★★

Promote efforts to secure product quality
through collaboration between the
Quality Assurance Department andproduct division quality assurance
sections.

Secure product quality.

Basic Approach$ORQJZLWKLWV(QYLURQPHQW6DIHW\DQG+HDOWK3ROLF\WKH',&*URXSYLHZVWKHLPSURYHPHQWRISURGXFWTXDOLW\DVDWKHPHWKDWLVHVVHQWLDOWRXSKROGLQJDVRXQGRSHUDWLQJIRXQGDWLRQ$FFRUGLQJO\WKH*URXSVHHNVWRHQVXUHHYHU\HPSOR\HHVKDUHVWKHVHQWLPHQWFRQYH\HGLQLWV4XDOLW\3ROLF\DQGZRUNVFRQWLQXRXVO\WRHQKDQFHTXDOLW\DQGHQVXUHFXVWRPHUVDWLVIDFWLRQ

DIC’s Quality Policy“Contribute to the prosperity of customers and society by consistently providing reliable products.”

Framework for Implementation
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406DQGRQLWVRYHUDOOV\VWHPWRSURPRWHRQJRLQJHIIRUWVWRHQKDQFHTXDOLW\,QOLQHZLWKLWVEHOLHIWKDWWKHLPSURYHPHQWRISURGXFWTXDOLW\LVHVVHQWLDOWRXSKROGLQJDVRXQGRSHUDWLQJIRXQGDWLRQLQ
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1

Enhancequality

Product
divisions
QMS

Increasecustomersatisfaction

Production facilities certified under ISO 9001

Production Administrative Division
andTechnical Administrative Division

Initiatives Aimed at Increasing Customer Satisfaction

DIC’s system for ensuring
customer satisfaction

Aspects visible
to customers&ORVHFRRSHUDWLRQDPRQJUHOHYDQWGLYLVLRQVDQGGHSDUWPHQWVIURPSURGXFWSODQQLQJWKURXJKWRVKLSPHQWHQDEOHV',&WRGHYHORSDQGPDQXIDFWXUHSURGXFWVZLWKKLJKDGGHG
YDOXHZKLOHULJRURXVSURFHVVDQGLGHQWL¿FDWLRQPDQDJHPHQWHQVXUHSURGXFWTXDOLW\0HWLFXORXVULVNHYDOXDWLRQLVFRQGXFWHGDWWKHGHVLJQUHYLHZVWDJHWRJXDUDQWHHVDIHW\$IWHUSURGXFWVDUHVROGFXVWRPHUDQGPDUNHWDVVHVVPHQWVDUHJDWKHUHGDQGIHGEDFNWRGHYHORSPHQWGHSDUWPHQWVWRIDFLOLWDWHIXUWKHUTXDOLW\LPSURYHPHQWVRequests from customers/market and society
Information from customer
Requirements

Output from DIC
Products

Sales
strategies
Planning
andproposals

Qualityassurance
Design anddevelopment

Marketing

Production

Contents/composition
Container/mode of packing
Consideration of environment
Workability and conveniencein handling
Disposal after use
Safety level of raw materials
Conformity to laws and regulations
Productivity and capacity
Safety and stability of processes
Costs/stable supply

SDSs
Technical
documents

Labeling
Packaging
Sample for
evaluation test

Design review
Validation
Control of changes

Product evaluation
Trial production
Mass trial production

Contract /delivery specifications
COA (certificate of analysis)
SDSs
Catalogs
Product

Production/quality
confirmation Products

DIC website
Customer
お客様 相consultation
談 情報
information
Technical service
Quality validation

Requests for improvement
Requests for cost reduction
Dealing with customer
information
Top management diagnosis/
internal audit
Market requirements
Self-regulation of industry

Business activities of DIC aimed at delivering high-quality products that are safe and reliable

DIC Report 201675

Quality

New Efforts to Enhance Employee Education in the Area of Product Quality

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¿VFDO\HDUWKH&RPSDQ\EHJDQSURYLGLQJHGXFDWLRQUHJDUGLQJSURGXFWTXDOLW\WRDOO',&*URXSHPSOR\HHV%HJLQQLQJLQ¿VFDO\HDUWKH&RPSDQ\
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7UDLQLQJVHVVLRQPreventing the Recurrence of Problems

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GHWHUPLQLQJWKHFDXVHVRIDFFLGHQWVDQDSSURDFKWKDWFRQWLQXHVWR\LHOGVROLGUHVXOWV,Q¿VFDO\HDUWUDLQLQJLQZK\ZK\DQDO\VLVZDVLQWURGXFHGIRUEDFNRI¿FHIXQFWLRQVZLWKWKHJRDO
of reducing/preventing the recurrence of mistakes made in the receipt and placing of orders.
,Q',&EHJDQSXEOLVKLQJQuality NewsZKLFKSURYLGHVXVHIXOLQIRUPDWLRQRQTXDOLW\PDQDJHPHQWDQGZD\VWRHQKDQFHZRUNTXDOLW\,QDGGLWLRQWREHLQJSXEOLVKHGUHJXODUO\RQ',&¶VSRUWDOVLWHDQGGLVWULEXWHGGLUHFWO\WRUHOHYDQWSDUWLHVQuality News is used in employee
training.

Quality News Issue No. 71, SXEOLVKHGLQ'HFHPEHU

Change in the Number of Quality Problems
Change in the Number of Product Returns(%DVH\HDU)LVFDO\HDU)

0
ー10

（%）

-10
-57

ー30

(%DVH\HDU)LVFDO\HDU)

0
ー10

-32

ー20

Change in the Number of Complaints Received

-56

（%）

-10
-27

ー20

-46

ー30

ー40

ー40

ー50

ー50
12

ー60
12

13

14

13

-45

14

15 (Fiscal year)

15 (Fiscal year)

VOICE from the DIC Group2XUJRDOLVWRHQVXUHWKHVDWLVIDFWLRQRIFXVWRPHUVE\SURYLGLQJVDIHSURGXFWVDQGVHUYLFHVWKDWWKH\FDQXVHZLWKFRQÀGHQFH
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RIUHODWHGPHDVXUHV3URGXFWGLYLVLRQVZRUNWRHQKDQFHTXDOLW\DWDOOVWDJHVRIDSURGXFW¶VOLIHF\FOHIURPSODQQLQJGHYHORSPHQWDQGWKH
VHOHFWLRQRIUDZPDWHULDOVWKURXJKWRSURGXFWLRQGLVSRVDODQGUHF\FOLQJ7KH4XDOLW\$VVXUDQFH'HSDUWPHQWLVUHVSRQVLEOHIRUIRVWHULQJKXPDQUHVRXUFHVFRQGXFLYHWRDFKLHYLQJIXUWKHUTXDOLW\LPSURYHPHQWV$FFRUGLQJO\ZHIRFXVRQSODQQLQJDQGSURPRWLQJHGXFDWLRQDOSURJUDPVWKDWLQFUHDVHDZDUHQHVVRITXDOLW\DQGLPSURYLQJTXDOLW\PDQDJHPHQWVNLOOVGeneral Manager, Quality Assurance Department Yuuichi Kougo

DIC Report 201676

Human Resources Management&RUHDQG&DWHJRU\6SHFL¿F7KHPHVWorking to Enhance Job Satisfaction
Goals and Achievements of Major Initiatives Evaluations are based on self-evaluations of current progress. Key: ★★★ = Excellent; ★★ = Satisfactory; ★ = Still needs work
Objectives of initiatives

Foster and endorse the advancement of local staff overseas witht he aim of advanc ing global
management.

Encourage women in theworkplace with the aim of securing a diverse labor force andsupporting diverse working styles.

Promote the hiring of individuals
with disabilities with the aim of
securing a diverse labor force andsupporting diverse working styles.

Goals for fiscal year 2015

Achievements in fiscal year 2015

Assess the state of human rights
and labor practices based on the
results of voluntary inspections
and explore approaches for ongoing initiatives, including voluntary
inspections.

The results of voluntary human rights inspections
c onducted at 59 DIC Group c ompanies wereassessed and no violations were found to exist.
Going for ward, steps will be taken to disclose
information regarding the DIC Group Code ofBusiness Conduct and efforts to advance employee
awareness with the goal of demonstrating theGroup’s understanding of and commitment to humanrights to encourage stakeholder recognition thereof.

Continue to offer training programsand trainee initiatives.

 The number of Group employees taking advantageof training programs reached 98% of the Group’s
projection.
 A total of 10 trainees were dispatched from Group
companies in Japan to overseas Group companies.
 A total of 10 trainees were dispatched from overseas
Group companies to Group companies in Japan.

Establish and deploy an advisor
system to support the careers offemale employees.

Establish key performance indicators (K PIs) for advancing the
careers of female employees.
Increase the number of employeeswith disabilities to 2.2% of DIC’s totallabor force, exceeding Japan’s legally
mandated quota of 2.0%.

Evaluation

Goals for fiscal year 2016★★

Continue working to assess the stateof human rights and labor practices
based on the results of voluntary
inspections. Promote the creation of a
unified policy regarding personnel
systems, evaluation and remuneration for Group company presidents
and product division heads in Japan,
the Asia–Pacific region and Greater
China.

★★

 Continue to offer training programs for
employees and executive assistants at
DIC Group companies in Japan.
 Promote the hiring of foreign nationals and continue to implement
measures aimed at fostering global
employees.

Having identified current issues, DIC established KPIs for assessing
efforts to advance the careers of female employees and formulated
an action plan for increasing the percentage of management-level
positions occupied by women, expanding the range of jobs open to
women, encouraging male employees to take childcare leave andincreasing the number of new female graduates recruited, in linewith Japan’s Act on Promotion of Women’s Participation andAdvancement in the Workplace. Based on this, the Company
planned and implemented various measures, including establishingan advisor system to support the careers of female employees.

★★

Enhance measures for advancing
the careers of female employees
and increase the percentage of
new female graduates recruited to
30%-plus.

As of December 31, 2015, employees with disabilities
accounted for 2.1% of DIC’s total labor force.

★★

Increase the number of employees with disabilities to 2.2% of
DIC’s total labor force.

Basic Approach to Human Resources Management:LWKWKHDLPRIEHLQJDQRUJDQL]DWLRQWKDWHPSRZHUVDOOHPSOR\HHVWRUHDFKWKHLUIXOOSRWHQWLDOWKH',&*URXSLVFRPPLWWHGWRUHVSHFWLQJ
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were found to exist.
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KXPDQUHVRXUFHVPDQDJHPHQWSUDFWLFHVRIDOO*URXSFRPSDQLHVDQGSUHYHQWYLRODWLRQVIURPRFFXUULQJ%XLOGLQJ7UXVWZLWKWKH',&(PSOR\HHV¶8QLRQ',&¶VPDQDJHPHQWDQGUHSUHVHQWDWLYHVRILWVHPSOR\HHV¶XQLRQPHHWUHJXODUO\ZLWKWKHJRDORIHQVXULQJKHDOWK\LQGXVWULDOUHODWLRQVEDVHGRQPXWXDOWUXVW,QDGGLWLRQWKURXJKODERU±PDQDJHPHQWFRXQFLOVDQGFDVXDOPDQDJHPHQWFRQIHUHQFHV',&VKDUHVPDQDJHPHQWLQIRUPDWLRQDQGLWVYLVLRQIRUWKHIXWXUHZLWKXQLRQUHSUHVHQWDWLYHVDQGHQFRXUDJHVWKHIUDQNH[FKDQJHRIRSLQLRQVDIC Report 201677

Human Resources Management*OREDO+XPDQ5HVRXUFHV0DQDJHPHQW
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ORFDOHPSOR\HHVRYHUVHDVDVZHOODVWRKLUHLQGLYLGXDOVEDVHGRQEXVLQHVVFRQVLGHUDWLRQVZLWKRXWUHJDUGIRUQDWLRQDOLW\+DYLQJFUHDWHGDKXPDQUHVRXUFHVV\VWHPDQGLQWURGXFHGVSHFLDOL]HGWUDLQLQJIRUWKHQH[WJHQHUDWLRQRIH[HFXWLYHVDW*URXSFRPSDQLHVLQWKH35&WKH*URXSKDVUHFHQWO\WDNHQVLPLODUVWHSVIRUFRPSDQLHVLQ6RXWKHDVW$VLD2WKHUHIIRUWVLQFOXGH
FUHDWLQJJOREDOKXPDQUHVRXUFHVGDWDEDVHVDQGHVWDEOLVKLQJV\VWHPDWLFWUDLQLQJSURJUDPVBasic Personnel Statistics

Number of
employees

0DOH)HPDOH
7RWDO
0DOH

Average age)HPDOH
7RWDO

Averageyears ofemployment

0DOH

New
graduates
hired

0DOH

)HPDOH
7RWDO)HPDOH
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)LVFDO\HDU

)LVFDO\HDU

2,842
642
3,484
42.2
39.4
41.6
18.2
17.0
18.0
70
24
94

2,876
666
3,542
42.2
39.8
41.7
18.2
17.4
18.1
72
19
91

2,898
683
3,581
42.2
40.3
41.8
18.2
17.7
18.1
75
20
95

Retention
rate (after
three years)

0DOH)HPDOH
7RWDO

Separations(voluntary)(number ofindividuals)
Separation rate(voluntary)

0DOH)HPDOH
7RWDO
0DOH)HPDOH
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)LVFDO\HDU

)LVFDO\HDU

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

91.2%
100%
92.6%
23
7
30
0.8%
1.1%
0.9%

95.7%
100%
96.5%
37
8
45
1.3%
1.2%
1.3%

100%
100%
100%
14
10
24
0.5%
1.6%
0.7%

Integrating DIC Group Executive Evaluation Systems

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,QDGGLWLRQWKH*URXSDOVRLQWHJUDWHGLWVJOREDOSHUVRQQHOSROLFLHVWRHQVXUHWKDWUHPXQHUDWLRQLVLQNHHSLQJZLWKORFDOPDUNHWOHYHOVDQGLQGLYLGXDOMREUHVSRQVLELOLWLHV3URPRWLQJ'LYHUVLW\
7KH',&*URXSDFWLYHO\SXUVXHVGLYHUVLW\E\HPSOR\LQJDEURDGVSHFWUXPRILQGLYLGXDOVZLWKRXWUHJDUGWRFRQVLGHUDWLRQVVXFKDVJHQGHUQDWLRQDOLW\SK\VLFDOOLPLWDWLRQRUDJH7KH*URXSZRUNVWRIRVWHUDFRUSRUDWHFXOWXUHWKDWGUDZVRQLWVXQGHUVWDQGLQJDQGUHVSHFWIRUGLYHUVLW\WRSURGXFHFUHDWLYHLGHDVDQGWRLQFRUSRUDWHWKHFRQFHSWRIGLYHUVLW\LQWRPDQDJHPHQWWKHUHE\FUHDWLQJZRUNSODFHVWKDWHQKDQFHMREVDWLVIDFWLRQ

1Hiring Diverse Human Resources:LWKWKHREMHFWLYHRIVHFXULQJWDOHQWHGLQGLYLGXDOVZLWKDGYDQFHGVSHFLDOL]HGFDSDELOLWLHVJOREDOSHUVSHFWLYHVDQGODQJXDJHDELOLWLHV',&DFWLYHO\SURPRWHVWKHKLULQJRILQWHUQDWLRQDOVWXGHQWVFRPSOHWLQJXQGHUJUDGXDWHRUJUDGXDWHVWXGLHVDW-DSDQHVHXQLYHUVLWLHV-DSDQHVHDQGIRUHLJQQDWLRQDOVFRPSOHWLQJXQGHUJUDGXDWHRUJUDGXDWHVWXGLHVDWRYHUVHDVXQLYHUVLWLHVDQGH[SHULHQFHG
PLGFDUHHUFDQGLGDWHVZLWKH[WHQVLYHH[SHULHQFHDQGH[SHUWLVH$WSUHVHQWIRUHLJQQDWLRQDOVZRUNLQYDULRXVFDSDFLWLHVDW',&)LVFDO\HDUQHZKLUHVLQFOXGHGHLJKWIRUHLJQQDWLRQDOV2Nationalities ofForeign Employees

16

Breakdown by
Nationality

9

1
1
1
1

8

1HZKLUHVIRUÀVFDO\HDU
included 8 foreign nationals

Number of Foreign Nationals Currently Employed by DIC
United StatesIndonesia
Spain
ThailandGermany
ROK
PRC

DIC Report 2016

78

Sales
positions

7HFKQLFDO
positions

2

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Corporate
DGPLQLVWUDWLRQ division
DGPLQLVWUDWLRQ

51

Postedoverseas

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4

31

Human Resources Management

VOICE from the DIC GroupI want to use my ability to understand local thinking to serve as a bridge between Japan and overseas markets.
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2Expanding Career Opportunities for Women,QOLQHZLWKLWVFRPPLWPHQWWRSURPRWLQJGLYHUVLW\',&LPSOHPHQWVDYDULHW\RILQLWLDWLYHVWRH[SDQGFDUHHURSSRUWXQLWLHVIRUIHPDOHHPSOR\HHV6LQFH
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Initiatives Aimed at Expanding Career Opportunities for Women

7UDQVIRUPFRUSRUDWHFXOWXUH
DQGWKHPLQGVHWRIPDQDJHPHQWOHYHOHPSOR\HHV

2007
2015

● 0HVVDJHIURPWKH3UHVLGHQW● 6HPLQDUVWRSURPRWHDZDUHQHVV● ,GHQWLFDOXQLIRUPVIRUPDOHDQGIHPDOHHPSOR\HHV●7UDLQLQJIRUHPSOR\HHVLQDGPLQLVWUDWLYHSRVLWLRQV

Encourage the drive and
GHWHUPLQDWLRQRIIHPDOHHPSOR\HHV● 6HPLQDUVWRSURPRWHDZDUHQHVVDPRQJIHPDOHHPSOR\HHV

Expand opportunities for
IHPDOHHPSOR\HHV● $VVLJQPHQWRIIHPDOHHPSOR\HHVWRSURGXFWLRQDQGVDOHVSRVLWLRQV● ,QWURGXFWLRQRIUROHPRGHOV● ,QFOXVLRQRIIHPDOHHPSOR\HHVLQUHJXODUV\VWHPRIWUDQVIHUVUHDVVLJQPHQWVDQGMREURWDWLRQV● ,QFUHDVHLQQXPEHURIZRPHQKLUHG(VWDEOLVKV\VWHPVWRVXSSRUW ● (VWDEOLVKPHQWRIV\VWHPVWRVXSSRUWDKHDOWK\ZRUN±OLIHEDODQFH
Publication of the Libra work–life balance support guide and introduction of e-learninga healthy work–life balance ●SURJUDPIRUHPSOR\HHVWDNLQJOHDYH
IRU IHPDOH HPSOR\HHV DQG ● ,QWURGXFWLRQRIV\VWHPDOORZLQJPDQDJHPHQWOHYHOHPSOR\HHVWROLPLWWKHORFDWLRQVWRZKLFKencourage the use thereof
they will accept transfers
Policy for Advancing the Careers of
Female Employees
DIC is committed to creating awork environment in which all
employees can fully exercise theirabilities. To this end, theCompany pledges that female
employees shall enjoy equal
access to career opportunities as
their male counterparts and thatno gender-based restrictions or
barriers shall be applied.

Female Employees
in Management Positions

Stimulate an
appropriate
employee mindset
and corporate
cultureTransform
the mindset of
employees qualified
as candidates
for management
positions

Encourage the drive
and determination of,as well as expand
opportunities for,female employees

Create a Work Environment that
Helps Employees Balance Careerwith Childcare

DIC Report 2016

79

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2.6％)LVFDO\HDU

8.0％

Human Resources Management

TOPIC
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recently established the C$GYLVRU6\VWHPDSSRLQWLQJIHPDOHHPSOR\HHVZLWKH[SHULHQFHLQKDQGOLQJWKHGHPDQGVRIFDUHHUDQGFKLOGFDUHWRDGYLVHDQG
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3

Advancing the Employment of Individuals with Disabilities',&LVFRPPLWWHGWRFUHDWLQJLQFOXVLYHZRUNHQYLURQPHQWVWKDWKHOSLQGLYLGXDOVZLWKGLVDELOLWLHVHQMR\DFWLYHDQGIXOILOOLQJFDUHHUV$VRI0DUFK
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Percentage of DIC’s Labor Force Accounted forby Individuals with Disabilities
(%)

2.20%

2.30

2.20

2.22%
Percentage oflabor force accounted forby individuals with disabilities asof March 31, 2016

2.14%
2.10%
2.06%

2.10

2.06%

(Legally mandated quota revised)

2.00
Percentage oflabor force accounted
for by individuals
with disabilities

1.90Japan’s legally mandated quota

1.80

1.70

4

11

12

13

14

15 (Fiscal year)

Reemployment after Retirement and Support for Retirement Planning',& KDV GHSOR\HG D V\VWHP WKDW IDFLOLWDWHV WKH Number of Reemployed Individuals
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1

Enhancing Programs that Help Employees Balance the Demands of Work and Home

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DWWULEXWDEOHWRWKHQHHGWRFDUHIRUFKLOGUHQRUHOGHUO\IDPLO\PHPEHUVDIC Report 2016

80

Human Resources Management

Work and Childcare Balance Support Programs.XUXPLQ0DUN&HUWLÀFDWLRQ&KLOGFDUH/HDYH3URJUDP

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birth to assist with parenting.

Childcare While Working
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childcare schedules.

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and intranet.

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working hours.

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21

28

29

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3URJUDP

43

63

64

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2

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Reducing Extreme Overwork and Encouraging Employees to Take Annual Paid Leave',& KDV GHSOR\HG DQ HOHFWURQLF V\VWHP WR PDQDJH RQVLWHKRXUV ZRUNLQJ KRXUV DQG DSSURYHG RYHUWLPH KRXUV $V D
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for such leave.

Average Years of Employment(Including Individuals Seconded to Group Companies)
Average years of employment in fiscal year 2015
Male employees(Years)

25

15
10
5
0

94

09

Average Monthly Overtime Hours Worked and Annual Paid Leave Taken$YHUDJHDQQXDOSDLGOHDYHJUDQWHG$YHUDJHDQQXDOSDLGOHDYHXVHG
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12.3 hours
19.1 days
10.4 days
54.5 ％

12.3 hours
19.1 days
11.0 days
57.6 ％

12.1 hours
18.8 days
11.2 days
59.6 ％DIC Report 201681

Overall20

10

Male employees$YHUDJHPRQWKO\RYHUWLPHKRXUVZRUNHGSHUHPSOR\HH

Female employees

18.2 years 17.7 years 18.1 years

1112

Female employees

1314Overall

15 (Fiscal year)

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Annualevaluation

Feedback

Careerdevelopment
sheet

Individual

DIC Report 2016

82

Bonus

SalaryPromotion

Skillsdevelopment
Appropriate
appointment

Human Resources Management

2

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VOICE from the DIC Group
There is more to English than speaking, listening comprehension and reading!
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Functional Coatings Sales Department, Liquid Compounds Product Division Masayuki Aota

DIC Report 201683

Human Resources Management

TOPIC
On-the-Job Training
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Oversees Trainee Program
Destinations and Number of
Employees Dispatched in)LVFDO<HDU
Malaysia
VietnamUnited States
India
ThailandIndonesia
United Kingdom
PRC

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DIC Report 2016

84

2
1
2
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Goals and Achievements of Major Initiatives Evaluations are based on self-evaluations of current progress. Key: ★★★ = Excellent; ★★ 6DWLVIDFWRU\★ 6WLOOQHHGVZRUN
Objectives of initiatives

Goals for fiscal year 2015

Achievements in fiscal year 2015

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Goals for fiscal year 2016★★

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Basic Approach to Sustainable Procurement
With the aim of ensuring its extended supply chain functions in a socially responsible manner, the DIC Group established the DIC
Group Universal Purchasing Policy in 2008, based on which it also formulated purchasing management regulations, thereby creating a
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guidelines and implement improvements and initiatives necessary to ensure the sustainability of Group procurement. The DIC Group has
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to share information and liaise with suppliers on a global basis to facilitate the preferential procurement of critical raw materials.

The DIC Group Universal Purchasing Policy
Guided by an action policy established to realize the DIC Group’s basic sustainable procurement principles, the Purchasing Department adheres tothe following guidelines in dealing with suppliers:❶ 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
conventional commercial customs.
❷ An appropriate purchasing process and building of relationships of mutual trust

The DIC Group, as a good partner for suppliers, will build long-lasting, mutually trusted relationships with suppliers and work together with
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The DIC Group will take responsibility as an exemplary corporate citizen for environmental affairs, occupational safety, human health and
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❹ Challenging to the creation of a new value

In order to respond at a high level to a new value sought by society, the DIC Group will proactively 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 201685

Sustainable Procurement

Global Procurement Initiatives
The DIC Group continues to leveragecollaboration among Group companies inJapan, the Asia–Pacific region, Greater
China and the Americas and Europe withthe goal of creating an optimal global supply
chain, thus ensuring that its procurement
practices are safe, reliable and worthy of its
customers’ trust.

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Sun Chemical

Three-pronged configuration encompassing Japan,
the Asia–Pacific region and Greater China

Two-pronged configuration encompassing
the Americas and Europe

Global purchasing officers

Global category leadersJapan

Asia–PacificregionGreater China

Americas

Globalcategory leaders

EuropeGlobalcategory leaders

Globalcategory leaders

Collaboration

Globalcategory leaders

Globalcategory leaders
Globalcategory leaders

3URPRWLQJ&653URFXUHPHQW
Based on the DIC Group Universal Purchasing Policy, and
LQFRUSRUDWLQJUHTXLUHPHQWVFRQWDLQHGLQJXLGHERRNVSXWRXWE\external organizations including the Japan Electronics and Information
Technology Industries Association (JEITA), DIC formulated the',&*URXS&653URFXUHPHQW*XLGHOLQHVDVHULHVRIUHTXLUHPHQWVSHUWDLQLQJWR(6*UHODWHGLPSHUDWLYHVLQFOXGLQJWKHPDQDJHPHQWRI
chemical substances in and reduction of the environmental impact of
raw materials. With the aim of compelling suppliers to observe these
JXLGHOLQHVWKH*URXSFRQGXFWVDVVHVVPHQWVDQGRQVLWHLQTXLULHV
in accordance with the DIC Group Supply-chain CSR Deployment
Guidebook.

The DIC Group CSR Procurement Guidelines❶ Compliance with laws and social norms❷ 5HVSHFWIRUKXPDQULJKWVDQGFRQVLGHUDWLRQIRUZRUNHQYLURQPHQWV
❸ 6DIHW\DQGK\JLHQH❹ Promotion of sound business management❺ Consideration for the environment❻ Information security❼ $SSURSULDWHTXDOLW\DQGVDIHW\DQGLPSURYHGWHFKQRORJLHV❽ Flexible attitude to ensure stable supplies and respond to change❾ Contribution to local communities and society❿ 3URPRWLQJ&65DQGGHSOR\LQJLWLQWKHVXSSO\FKDLQ

6HOI(YDOXDWLRQVIn accordance with version 2* of the DIC Group Supply-chain CSR Deployment Guidebook, the DIC Group asks suppliers to
FRPSOHWHDTXHVWLRQQDLUHZKLFKLWXVHVWRDVFHUWDLQWKHVWDWXVRIVXSSOLHUV¶&65SURFXUHPHQWSUDFWLFHV7KHTXHVWLRQQDLUH
further segments the Group’s 10 procurement guidelines into 46 issues.
* Version 1 of the DIC Group Supply-chain CSR Deployment GuidebookZDVSXEOLVKHGLQLQ-DSDQHVH(QJOLVKDQG&KLQHVH9HUVLRQ SXEOLVKHGLQ-XO\LQFOXGHVQHZVHFWLRQVRQFRQÀLFWPLQHUDOVDQGELRGLYHUVLW\DGGHGLQUHVSRQVHWRFKDQJLQJVRFLDOLPSHUDWLYHV

$QDO\]LQJWKH5HVXOWV
of Questionnaires

Assessment Distribution Chart(566 Companies)
Number of companies

From November 2013 through December 2015, the DIC
Group conducted assessments for 566 suppliers using
version 2 of the DIC Group Supply-chain CSR Deployment
Guidebook DFFRXQWLQJ IRU DSSUR[LPDWHO\  RI LWVprocurement spending. The Group analyzed and assessed
TXHVWLRQQDLUHUHVSRQVHVDQGSURYLGHGIHHGEDFNWRDOO
FRPSDQLHVDORQJZLWKUHTXHVWVIRUFRUUHFWLYHPHDVXUHVshould significant issues be discovered. The DIC Group
DOVRFRQGXFWHGRQVLWHLQTXLULHVIRUVXSSOLHUVEHWZHHQ¿VFDO\HDUVDQG

250
200
150

118

100
50

67
18

33 33

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

Cumulative number of suppliers assessed(November 2013–December 2015)

566

297

300

ScoresFeedback sheet

Low

High

Note: %DVHGRQ',&¶VDQDO\VLVRITXHVWLRQQDLUHUHVSRQVHV RIVXSSOLHUVDVVHVVHGWRGDWHVFRUHGRU
higher on the Group’s 5.0-point scale.

Feedback provided

Equivalent to 90%-plus of procurement spending

DIC Report 201686

Sustainable Procurement&RQGXFWLQJ2Q6LWH,QTXLULHVWR$GYDQFH&65)URP¿VFDO\HDUWKURXJK¿VFDO\HDUWKH',&*URXSFRQGXFWHGRQVLWHLQTXLULHVIRUVXSSOLHUVZLWKWKHREMHFWLYH
RIKHOSLQJWKHPIXUWKHUWKHLUXQGHUVWDQGLQJRI&65,QDQRQVLWHLQTXLU\WKH*URXSDQGWKHVXSSOLHUFRQ¿UPWKHUHVSRQVHVSURYLGHGE\WKHVXSSOLHULQWKHDVVHVVPHQWTXHVWLRQQDLUHDQGH[FKDQJHYLHZVDSURFHVVWKURXJKZKLFKWKH*URXSDLPVWRHOLPLQDWHJDSVEHWZHHQLWVDVVHVVPHQWDQGWKDWRIWKHVXSSOLHU,IVLJQL¿FDQWSUREOHPVDUHIRXQGWRH[LVWWKH*URXSPD\DVNVXSSOLHUVWRWDNHFRUUHFWLYHDFWLRQDQGSUHVHQWH[DPSOHVRI*URXS&65LQLWLDWLYHVZLWKWKHJRDORIPDNLQJWKLVDEHQHILFLDO
experience for both parties.

Global Procurement Initiatives,QILVFDO\HDU',&DQGUHJLRQDOKHDGTXDUWHUVLQWKH35&DQGWKH
Asia–Pacific region collaborated to promote cooperation in both overall
VXVWDLQDELOLW\ DQG &65 SURFXUHPHQW DW SULQFLSDO *URXS FRPSDQLHV LQ
WKHWZRUHJLRQV6XEVHTXHQWO\WKH*URXSFRQGXFWHGDVVHVVPHQWVRI
suppliers in Greater China (including Taiwan). As of December 31, 2015,
 RI WKHVH FRPSDQLHV KDG VXEPLWWHG FRPSOHWHG TXHVWLRQQDLUHV DQGUHFHLYHGIHHGEDFN',&DOVRFROODERUDWHGZLWKWKH6XQ&KHPLFDO*URXSZKLFKIXQFWLRQVDVWKH',&*URXS¶VUHJLRQDOKHDGTXDUWHUVIRUWKH$PHULFDV
DQG(XURSHWRSURPRWHDZDUHQHVVRI&65SURFXUHPHQWE\FRQGXFWLQJ
assessments of 160 key suppliers in these two regions.

Presentation for purchasing officers in the Asia–Pacific region&RQÀLFW0LQHUDOV,Q-XO\WKH'RGG±)UDQN:DOO6WUHHW5HIRUPDQG&RQVXPHU3URWHFWLRQ$FWZKLFKFRQWDLQVDSURYLVLRQUHTXLULQJFRPSDQLHVWRUHSRUWRQWKHLUXVHRIFRQÀLFWPLQHUDOVZDVVLJQHGLQWRODZLQWKH8QLWHG6DWHV7KH',&*URXSUHFRJQL]HVWKHLPSRUWDQFH
RIDGGUHVVLQJWKHLVVXHRIFRQÀLFWPLQHUDOV$VVWDWHGLQLWV%DVLF3ROLF\FRQFHUQLQJ&RQÀLFW0LQHUDOVSUHVHQWHGRQLWVJOREDOZHEVLWHWKH',&*URXSUHIUDLQVIURPXVLQJJROGWDQWDOXPWXQJVWHQDQGWLQZKLFKDUHFODVVL¿HGDVFRQÀLFWPLQHUDOVWKDWLV
PLQHUDOVPLQHGLQFRQGLWLRQVRIDUPHGFRQÀLFWDQGDEXVHLQWKH'HPRFUDWLF5HSXEOLFRIWKH&RQJRDQGLWVQHLJKERULQJFRXQWULHV
0RUHRYHUVKRXOGDQ\UDZPDWHULDOVSXUFKDVHGIURPWKLUGSDUW\VXSSOLHUVEHIRXQGWRFRQWDLQFRQÀLFWPLQHUDOVWKH',&*URXSZLOOLPPHGLDWHO\WHUPLQDWHSURFXUHPHQWWKHUHRI7KH',&*URXSLVXVLQJWKH&RQÀLFW0LQHUDO5HSRUWLQJ7HPSODWHFUHDWHGE\
WKH(OHFWURQLF,QGXVWU\&LWL]HQVKLS&RDOLWLRQ (,&& DQGWKH*OREDOH6XVWDLQDELOLW\,QLWLDWLYH *H6, WRFRQGXFWFRQÀLFWPLQHUDOV
audits across its entire supply chain, an ongoing effort. As of December 2015, the Group had received responses for more thanRIWKHLWHPVFXUUHQWO\SURFXUHGE\*URXSSXUFKDVLQJGHSDUWPHQWVVOICE from the DIC GroupWe are promoting CSR procurement by conducting on-site inquiries for major suppliers.
I currently work in the Purchasing Department in the area of raw materials procurement. With the aim of realizing sustainable procurement, we periodically
FRQGXFWRQVLWHLQTXLULHVIRUVXSSOLHUVRISULQFLSDOUDZPDWHULDOV$FWXDOO\JRLQJWRWKHVXSSOLHUJLYHVRQHDPXFKFOHDUHULGHDRIWKHVXSSOLHU¶VLQLWLDWLYHVWKDQFDQEHJDLQHGVLPSO\E\UHDGLQJTXHVWLRQQDLUHUHVSRQVHV2QHFRPSDQ\,YLVLWHGZDVWDNLQJVWHSVWRLOOXPLQDWHOHJDODQGUHJXODWRU\ULVNVDQGKDGHVWDEOLVKHGVWXG\JURXSVWRH[SORUHLVVXHVUHODWHGWRFRPSOLDQFHDQGWKH$FWDJDLQVW'HOD\LQ3D\PHQWRI6XEFRQWUDFW3URFHHGV(WFWR6XEFRQWUDFWRUVDOORZLQJPHWR
VHH¿UVWKDQGWKHLPSRUWDQFHWKHFRPSDQ\SODFHGRQFRPSOLDQFHLQLWLDWLYHV,DOVRLQVSHFWHGWKHFRPSDQ\¶VSURGXFWLRQIDFLOLWLHVJLYLQJPHWKHRSSRUWXQLW\WR
observe its stringent process control systems and BCP measures, including dividing production among multiple facilities. This process enabled us to deepen
our relationship with this particular supplier.
Assistant Manager, Purchasing Department Miho Hayashi

DIC Report 201687

Business Models that Respond to Social Imperatives
Themes that Demonstrate Unique Capabilities

Establishing Solutions-Oriented Businesses
Goals and Achievements of Major Initiatives Evaluations are based on self-evaluations of current progress. Key: ★★★ = Excellent; ★★ = Satisfactory; ★ = Still needs work
Objective of initiatives

Goals for fiscal year 2015

Achievements in fiscal year 2015

Cultivate solutions-oriented businesses
Anticipate new social needs arising fromglobal megatrends and plan new
businesses that provide solutions to thoseneeds.

Having recognized the promise of heat
management, including the use of waste heatand thermal storage, the DIC Group identified a number of promising markets.In thearea of adhesives for damp surfaces, theGroup cultivated new customers in the PRC
and has had its technologies certified.

Strengthen the DIC brand
Make use of product guidebooks, exhibitions and other communications tools andopportunities to promote awareness of
the DIC brand.

The DIC Group participated in a number ofmajor trade shows in Japan and overseas,
including Convertech Japan 2015, the 2015
China Information Technology Expo (CITE2015) in the PRC and Touch Taiwan 2015.
The Group also staged private exhibitions forfour domestic customer companies in Japan.

Propose solut ions - or iented
businesses that respond to social
imperatives.

Evaluation

Goals for fiscal year 2016★★

With the aim of creating next-generationb u s i n e s s e s , e nt e r n ew m a r ket s a n dpromote the development of products that
integrate multiple technologies to propose
solutions that capitalize on the Group’s
supply chain.

★★★

Par ticipate in trade shows for key
customer industries in Japan andoverseas to strengthen the DIC brand.
(Examples: FINETECH JAPAN andTokyo Pack)

Capitalizing on the Changing Needs of Society
The DIC way of doing business starts with listening to what its customers say. DIC’s approach is to swiftly grasp the concernsof its customers to gain insights into emerging social needs and offer appropriate solutions. While the starting point is the voiceof its customers—an approach known as “customer-in”—the Group also takes a “market-in” approach, paying heed to issues of
JOREDOVLJQL¿FDQFHVXFKDVJOREDOZDUPLQJZLWKWKHDLPRISUHGLFWLQJWUHQGVDQGDQWLFLSDWLQJWKHIXWXUHQHHGVRIVRFLHW\

Promoting Business Activities with Roots in Issues of Concern to Society
The principal factor behind efforts to advance the of electric vehicles (EVs) is the need crucial issues such as global warming
and fossil fuel depletion. The practicality of EVs will depend on the resolving of a number of key technological challenges. These
include increasing the capacity of storage batteries, reducing the size and weight of powertrains*1 and improving the durability offuel cells. The DIC Group continues to promote research aimed at addressing such challenges, and is developing technologies
that will yield concrete, viable solutions, including innovative materials that boost battery capacity and improve the performanceof power devices*2 and fuel cells. In the information and communications field, the Group is promoting the development ofmaterials for printed electronics with the aim of providing solutions to needs arising from the growing trend toward wearable*3 andÀH[LEOH 4GHYLFHVZKLFKUHÀHFWVWKHLQFUHDVHGVRSKLVWLFDWLRQRILQIRUPDWLRQQHWZRUNV,QDGGLWLRQWRDXWRPRELOHVLQIRUPDWLRQDQG
FRPPXQLFDWLRQVDQGRWKHU¿HOGVWKDWQHFHVVLWDWHDGYDQFHGWHFKQRORJLHVWKH*URXSLVUHVSRQGLQJWRVRFLDOLPSHUDWLYHVLQVXFKDUHDVDVSDFNDJLQJJUDSKLFVDQGWKH¿HOGLWKDVGXEEHG³OLIHDQGOLYLQJ´DVZHOODVSURSRVLQJQHZEXVLQHVVHVZLWKWKHSXUSRVH
of further evolving its business model.
*1 In a motor vehicle, the powertrain is the group of components that transform stored energy into kinetic energy for the purpose of propulsion.
*2 A power device is a semiconductor used as a switch or rectifier in power electronics.
*3 Wearable devices are incorporated into accessories such as watches and glasses and worn on the body rather than carried like traditional mobile devices such as smartphones and tablet computers.
*4 Flexible devices are bendable, rollable and more durable than conventional devices made with glass or other stiff, breakable materials.

DIC Report 201688

Business Models that Respond to Social Imperatives

Enhancing Brand Strength
Established as a printing inks manufacturer, DIC has expanded its
business by leveraging its capabilities in organic pigments, synthetic
resins and fine chemicals, capitalizing on its wealth of elemental
technologies to develop a diverse portfolio of innovative products. To
encourage broader customer awareness of its distinctive products andtechnologies, DIC publishes and distributes market-oriented productguidebooks. DIC also strives to enhance its brand strength through
SDUWLFLSDWLRQLQWUDGHVKRZVERWKLQ-DSDQDQGRYHUVHDVZKLFKLQ¿VFDO
year 2015 included FINETECH JAPAN, Tokyo Pack and Touch Taiwan
2015. The Group also organizes private exhibitions for customers on an
individual basis.

The DIC Group's booth at FINETECH JAPANIdentifying and Fostering Promising Markets Based on Projections Needs and Future Trends:LWKWKHDLPRIUHDOL]LQJVXVWDLQDEOHJURZWKRYHUWKHPHGLXPWRORQJWHUP',&KDVLGHQWL¿HGSURPLVLQJQHZPDUNHWVDULVLQJ
from social imperatives in six key areas—resources, materials and energy; logistics and industrial equipment; electronic andelectrical equipment; pharmaceuticals and medical devices; general consumer products; and construction infrastructure— and is
striving to evaluate the possibility of cultivating demand in each. The Group is also working to identify key technologies, as wellas to discern technological issues that must be addressed, allowing it to accurately gauge growth and technology development
potential and determine which of these markets offer promise and which it will enter.

Global Efforts to Expand Business Domains and Cultivate Next-Generation Businesses
Once it has resolved provisionally to enter a promising new market, the DIC Group sets about clarifying necessary technologies,
systems and services, as well as key development themes. Engineering and sales departments work together to verify
theoretical value and ascertain the appropriate opportunity to enter the market and, bearing in mind its position in the supply
chain, to create an optimal business model that will enable it to provide innovative solutions and build a robust business.

Leveraging a New Corporate Organization
With the objective of enhancing customer convenience and emphasizing its comprehensive product and technological
FDSDELOLWLHVLQ¿VFDO\HDU',&DGRSWHGDQHZFRUSRUDWHRUJDQL]DWLRQWKDWLQFRUSRUDWHVWKHEHVWIHDWXUHVRILWVSUHYLRXV
matrix-like organization while clarifying the responsibilities of individual departments and enhancing speed, thus helps tomaximize synergies among Group companies, as well as to reinforce collaboration.
As part of this reorganization, DIC established a Marketing Division and a New Business Planning Department. The Marketing
Division oversees two activities: market-focused cross-portfolio strategies and marketing of products requiring a medium- tolong-term commitment before they contribute to business growth, as well as marketing of products and technologies that do notcome under the jurisdiction of existing product divisions. The New Business Planning Department is charged with designing new
business models for new businesses.

DIC Report 201689

Business Models that Respond to Social Imperatives

Current
businesses
Product divisions

Marketing of existing products andnew products that represent
derivations thereofMarketing of products under medium- tolong-term development and products andtechnologies that do not come under
the jurisdiction of product divisions

Marketing Division

New Business Planning Department

Designing business models
for new businesses

Futurebusinesses

VOICE from the DIC GroupOur goal is to promote multifaceted marketing with an emphasis on enhancing our value chain.
,Q¿VFDO\HDUWKH&RUSRUDWH0DUNHWLQJ'HSDUWPHQWDQGWKHWKUHHPDUNHWLQJGHSDUWPHQWVDWWDFKHGWRWKHVDOHVDGPLQLVWUDWLYHGLYLVLRQVZHUH
combined to create the new Marketing Division. Our focus is on three areas, which we have dubbed “industrial materials,” “life and infrastructure” and“packaging businesses.” Our core activities emphasize two perspectives, namely, DIC Group products and customers/regions. With the goal of helping
expand the Group’s operating foundation and contributing to consolidated net sales, we promote multifaceted marketing with an emphasis on enhancing
our value chain through efforts to respond to short- to medium-term shifts in needs of customers and markets and medium- and long-term changes
in social structure. I am in charge of marketing in the area of packaging businesses, which involves promoting the expansion of sales of oxygen- andvapor-barrier adhesives, laminating adhesive and other high-performance materials in global markets. My team also works to cultivate new markets andaccelerate R&D in line with next-generation themes by collaborating with the Sun Chemical Group to reinforce global marketing. In particular, we are
stepping up efforts to promote the cultivation of new markets by offering materials with barrier properties, migration solutions and other products that
respond to concerns relating to, for example, safety and security, as well as the environment. These efforts give us a broad overview of our value chain,positioning us to develop competitive solutions.
In charge of marketing for packaging businesses, Marketing Division Saki Urakami

DIC Report 201690

New Technology Development and Value Creation
Themes that Demonstrate Unique Capabilities

Proposing Solutions that Leverage Elemental Technologies
Goals and Achievements of Major Initiatives Evaluations are based on self-evaluations of current progress. Key: ★★★ = Excellent; ★★ = Satisfactory; ★ = Still needs work
Objectives of initiatives

Goals for fiscal year 2015

Achievements in fiscal year 2015

Enhance global R&D configuration.

In fiscal year 2015, a polymer technical center
was established in the Asia–Pacific region(Thailand), a PPS technical service center was
established in Germany and an algae research
center was established in the United States. In
January 2016, a polymer technical center was
also established in the PRC.

Ensure the swift launch and firm salesof products that combine multiple
technologies.

Limited-term projects were organized
and resourc es alloc ated thereto.
Approximately 10 new development
themes were suggested through thisinitiative, half of which have been
passed on to the commercialization
stage.

Enhance abilit y to develop
products and technologies thatfacilitate contribution to a sustainable society.

Promote development ofenvironment-friendly products
and services.

Evaluation

 Promote collaboration among DIC
technical departments.
★★

 Internal rules were formulated to assess theenvironment-friendly features of products from thedesign and development stages and steps weretaken to promote awareness of such features.

 P r o m o t e e nv i r o n m e nt - f r i e n d l yresearch themes.
 Ensure the swift launch ofenvironment-friendly products.

Goals for fiscal year 2016

 Expand the DIC Group’s global
R&D configuration.
Promote the integration of external
technologies.

★★

 Environment-friendly products accounted for
53% of all DIC Group products.

 Acc elerate the development of
low-carbon and other environmentfriendly products.

Achieving Sustainable GrowthWith the aim of achieving its Color & Comfort by Chemistry management vision, the DIC Group is leveraging its coretechnologies, including those in the areas of optics and color, organic molecular design and polymer design, as well as its
elemental technologies in such areas as synthesis, compounding and formulation, and surface treatment, to develop highvalue-added products. The Group is also building a portfolio of next-generation products and new technologies that will support
sustainable growth for such key applications as LCDs, electronics, digital printing and packaging, by integrating technologicalresources originating across the Group.
The DIC Group’s New/Elemental Technologies and Target Markets
Packaging

Digital printing
Target markets

Core productsElectronics

Coatings

Optronics materials

Packaging materials
Basic
Organic synthesis technologies Polymer synthesis

Crystallization Organic molecular

High-performancecomposites

Automotive

Coloring

designPolymer
designResin curing
Liquid/liquid dispersion

Optics and Technologies
Adhesion
Dispersion Solid/liquid dispersion
color
Applicability
Surface treatment
Compounding formulationassessment

Liquid inks

（ Coating/printing/） Rheology
molding

Film formation

Molding

Adhesive materials

EnergySensory materials

DIC Report 201691

Surface protection
materials

Living environments

Infrastructure buildingNew Technology Development and Value Creation

Leverage Compounding Technologies andOpen Innovation to
Develop Next-Generation Products

Expanded technical domains
Inorganic materials

Next-generation products

Biotechnology
Materials for printed electronics

Adhesive/Bonding

Electronics

Basic technologies
Compounding technologies

Optics and color
Organic molecular design

Inorganic nanotechnologies

Packaging

Polymer design
Dispersion

Open innovation

Applicability assessment

Healthcare(Coating/printing/molding)External resources
Partners

Areas (examples)

Universities/Research institutes

Inorganic chemistry

Startup companies

Life sciences

Companies from different industrial
sectors, device and finished products
manufacturers, etc.

Energy-related

Heat-resistant and heat-dissipating materials

Lowcarbonization

Gas-barrier materials
Next-generation packaging materials
Health foods
Materials for medical devices
Algae-derived oils
Products with a lower environmental impact

IoT, Big Data

6SHFL¿F,QLWLDWLYHVDQG$FKLHYHPHQWVThe DIC Group is encouraging a shift toward materials with a reduced environmental impact—notably water-based and solvent-freematerials—and is advancing the development of environment-friendly products for use in displays and packaging, as well as for infrastructureUHODWHGDSSOLFDWLRQVWKDWKHOSLPSURYHWKHHQYLURQPHQWDOSHUIRUPDQFHRIWKH¿QLVKHGSURGXFWVLQZKLFKWKH\DUHXVHG
Products for Use in Electronics Equipment,QWKHDUHDRISURGXFWVIRU/&'VWKH',&*URXSGHYHORSHGDQGFRPPHQFHGIXOOVFDOHSURGXFWLRQRIDQHZJUHHQSLJPHQWIRUZLGHFRORUJDPXWFRORU¿OWHUV7KH
*URXSDOVRGHYHORSHGDQGODXQFKHGQW\SH/&PDWHULDOVIRUIULQJH¿HOGVZLWFKLQJ ))6 PRGHZKLFKERDVWDKLJKOLJKWWUDQVPLWWDQFHUDWHIRUXVHLQ/&'VIRU
smartphones and other mobile devices.
Newly developed electronics materials include an innovative epoxy curing agent that combines low-dielectric properties and a high glass transition temperaturefor use in circuit boards for communications infrastructure applications, a cutting-edge highly heat-resistant novolac resin designed for use as a solder resist
LQVHPLFRQGXFWRUIDEULFDWLRQDQGDÀXRURVXUIDFWDQWWKDWFRPELQHVRXWVWDQGLQJOHYHOLQJSURSHUWLHVDQGUHFRDWLELOLW\LQWKLQ¿OPFRDWLQJVIRUXVHDVDSKRWRUHVLVW
leveling agent. The Group also expanded its range of environment-friendly nonhalogenated epoxy resins for use as semiconductor encapsulation materials byadding new grades, while sales of these resins for circuit board--related applications, which demand low-dielectric properties, progressed steadily.
Products for Packaging Applications

1HZ',&SURGXFWVUHOHDVHGLQ¿VFDO\HDULQFOXGHGDQRIIVHWLQNWKDWGULHVDWORZWHPSHUDWXUHVIDFLOLWDWLQJDUHGXFWLRQLQHQHUJ\FRVWVDKLJKVHQVLWLYLW\89FXUDEOH
ink*1 that uses an innovative resin and a sheetfed ink containing an anti-setoff agent, eliminating the need to use a spray powder to prevent ink set-off, that is, theXQZDQWHGWUDQVIHURILQNIURPDSULQWHGVKHHWWRWKHEDFNRIWKHQH[WVKHHWLQWKHVWDFN2YHUVHDVWKH6XQ&KHPLFDO*URXSLQWURGXFHGDQHZZDWHUEDVHGÀH[RLQNWKDWGRHVQRWFRQWDLQELVSKHQRO$ %3$ WRDGGUHVVJURZLQJFRQVXPHUFRQFHUQVUHJDUGLQJSRWHQWLDOKHDOWKULVNV,QWKHDUHDRIHQHUJ\FXUHGÀH[RLQNVWKH6XQ&KHPLFDO
Group developed a base ink system that responds to the needs of manufacturers of food packaging materials for low-migration inks*2.
1HZO\GHYHORSHGSURGXFWVLQWKHDUHDRIDGKHVLYHVIRUÀH[LEOHSDFNDJLQJLQFOXGHGDYDSRUGHSRVLWHGUHLQIRUFLQJDGKHVLYHWKDWLPSURYHVWKHEDUULHUSURSHUWLHVRIODPLQDWHGSDFNDJLQJ¿OPVZKHQXVHGZLWKDOXPLQXPYDSRUGHSRVLWHG¿OPOD\HUVDQHWKHUEDVHGDGKHVLYHRQO\DVPDOODPRXQWRIZKLFKQHHGVWREHDSSOLHGWRODPLQDWHGOD\HUVWRDFKLHYHDVXSHULRUVXUIDFH¿QLVKDQGDKLJKVROLGDGKHVLYH 3 that delivers exceptional resistance to the impact of package contents.
+LJKVHQVLWLYLW\89FXUDEOHLQNV,QNVWKDWFDQEHFXUHG GULHG ZLWKDQ/('RURWKHUORZHQHUJ\89OLJKWHPLWWLQJODPS/RZPLJUDWLRQLQNV7KHVHDUHLQNVWKHORZPROHFXODUFRPSRQHQWVRIZKLFKGRQRWPLJUDWHIURPWKHSDFNDJLQJVXEVWUDWHDQGFRQWDPLQDWHWKHIRRGSURGXFWLQVLGH/RZPLJUDWLRQLQNVTXDOLI\DV)RRG&RQWDFW0DWHULDOV )&0V *3 High-solid adhesives: Environment-friendly adhesives that use a reduced volume of organic solvent in laminate processing.

Products for Automotive Applications

In the area of industrial-use adhesive tapes, the DIC Group made solid progress in the development of double-coated tapes incorporating high-performancewaterborne adhesives for automotive interiors that addresses needs for lower VOC content and a reduced odor. In PPS polymers, the Group continued to
SURPRWHWKHLQFUHPHQWDOH[SDQVLRQRILWVSURGXFWLRQFDSDFLW\FRPSOHWLQJWKH¿UVWVWDJHRIWKLVHIIRUWZKLFKFHQWHUHGRQSURFHVVGHYHORSPHQW$QRWKHUIRFXVwas the development of groundbreaking proprietary production processes with the aim of reducing associated costs.

DIC Report 201692

New Technology Development and Value Creation$*OREDO)UDPHZRUNIRU3URGXFW'HYHORSPHQW
To maximize global R&D resources, DIC’s Technical Administrative Division and Corporate R&D Division cooperate with the
R&D components of DIC Group companies around the world, including DIC Graphics Corporation; the Sun Chemical Group’s
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35&,Q¿VFDO\HDUWKH*URXSHVWDEOLVKHGWZRSULQWLQJLQNVWHFKQLFDOFHQWHUVRQHLQ7KDLODQGIRUWKH$VLD±3DFL¿FUHJLRQ
and one in the PRC, as well as a PPS technical service center in the PRC and Germany. In the United States, a new algae
research center was opened that will capitalize on the Group’s accumulated expertise in the cultivation and use of Spirulina to
conduct comprehensive algae-related research in areas ranging from cultivation to practical application.

7KH',&*URXS·V5 '&RQÀJXUDWLRQ
Global DIC Group
Technical
services
R&D aimed at improving
existing products
R&D aimed at developing
new productsTechnical Administrative Division
DIC Graphics Corporation
Technology Planning
Department

Technical divisions
Fine Synthesis, Polymer, Adhesives,
Dispersion, Polymer Processing,Coating & Applied Materials

Sun Chemical GroupIntellectual
Property Center
Product Safety &Regulatory Group

Research aimed atcommercializing
newly developed
products

Basic research

Analysis Center

Product Innovation Center

Printing Inks Technical Center‒
Asia Paciﬁc/China
Polymer Technical Center‒
Asia Paciﬁc/China

Corporate R&D Division

PPS Technical Center‒China/Germany

Core Value Research Center

Investigative
research

Qingdao DIC Finechemicals

Core development
Algae Research Center

Advanced Characterization
Research Center

Process Engineering Research Center

Open Innovation Promotion Groupetc.

Collaborative research, contracted research,
participation in public research programs, others

Universities and research organizations in Japan and overseas, national projects (Japan)

3URPRWLQJ(QYLURQPHQW)ULHQGO\3URGXFWVConscious always of the importance of ensuring its products areenvironment-friendly, DIC promotes the development of products
and new technologies that are useful to society and works toincrease the weighting of environment-friendly products in its
portfolio, by reducing the volume of hazardous substances it
uses, focusing on products that are less hazardous and productsthat facilitate recycling, and realizing safer production processes
that generate less waste and use less energy. DIC also conducts
environmental assessments on a continuous basis and strives tomaintain a solid grasp of laws and regulations in different countries
and territories and of trends in environmental measures, thereby
ensuring its ongoing ability to engineer products that comply withdiverse regulations governing the use of chemical substances in
GLIIHUHQWPDUNHWV,Q¿VFDO\HDUHQYLURQPHQWIULHQGO\SURGXFWVDFFRXQWHGIRURIDOOSURGXFWVSXWRXWE\',&DQGVXEVLGLDU\DIC Graphics.

Evaluation Sheet for Environment-Friendly Products
Department:
Product to be Evaluated:
Evaluation
Certifying Standards
Item

Prepared by:

Prepared on:
Average off

Description

Coefficient

Subtotal

EnergyReduction of energy inConsumption
production, transportation, etc.
Reduction of use of nonMaterials to
renewable materials, nonbe Used
recyclable materials, etc.
Hazards

Product with lower toxicity, etc.

Amount of
Waste
Generated

Reduction of environmentallyconcerned substances, etc.

Remarks:
Evaluator

',&
L W G
G LW
W
I G L
WL
L
W I L GO
G W L  G',&LQWURGXFHGLWVV\VWHPIRUGHVLJQDWLQJHQYLURQPHQWIULHQGO\SURGXFWVLQDQGXVHVDproprietary evaluation sheet to designate products as “environment-friendly.”

DIC Report 201693

New Technology Development and Value Creation

Protecting Intellectual Property
Recognizing intellectual property as crucial to competitiveness, the DIC Group vows to respect the intellectual property of other companies.
At the same time, guided by an open/closed strategy the Group works to secure intellectual property rights for its own technologies and keepthem in a “black box.”
,Q¿VFDO\HDU',&ZDVIRXUWKLQDUDQNLQJRIFRPSDQLHVLQWKHFKHPLFDOVLQGXVWU\LQ-DSDQLQWHUPVRISDWHQWDVVHWVRZQHGLQDUHYLHZFRQGXFWHGE\DQLQGHSHQGHQW¿UP ',&UHJLVWHUVDQDYHUDJHRIQHZSDWHQWVDQQXDOO\:KLOHWKLVLVVPDOOFRPSDUHGWROHDGLQJFKHPLFDOV¿UPVWKH&RPSDQ\VFRUHGKLJKIRULWVRYHUDOOVFDOHRILWVSDWHQWDVVHWVXQGHUVFRULQJWKHTXDOLW\DQGKLJKSUR¿OHRIWKHSDWHQWVLWKROGV',&
will continue to actively protect its intellectual property portfolio with the aim of ensuring sustainable growth in the years ahead.
* Patent Result Co., Ltd.

VOICE from the DIC GroupWe are developing environment-friendly packaging materials.
The PASLIM series is a selection of adhesives with oxygen-barrier properties that reduce the amount of packaging material waste. In recent years, we have
VHHQDQLQFUHDVHLQWKHXVHRISDFNDJLQJPDWHULDOVFRPSULVLQJPXOWLSOHOD\HUVRISDFNDJLQJ¿OPODPLQDWHGWRJHWKHUWRSDFNDJHIRRGSURGXFWVZLWKWKHDLPRI
prolonging shelf life. PASLIM was developed as an adhesive that would prevent oxygen permeation. The use of PASLIM eliminates the need to use multipleOD\HUVIDFLOLWDWLQJWKHSURGXFWLRQRIODPLQDWHGSDFNDJLQJ¿OPVWKDWDUHGUDPDWLFDOO\WKLQQHUDQGOLJKWHUWKDQFRQYHQWLRQDO¿OPVEXWERDVWH[FHOOHQWR[\JHQEDUULHUSURSHUWLHV$VZHOODVSUHYHQWLQJIRRGGHWHULRUDWLRQWKLQQHUOLJKWHU¿OPVUHGXFHWKHDPRXQWRISDFNDJLQJ¿OPXVHGDQGORZHU&22 emissions attributableWRVXFK¿OPV:HZLOOFRQWLQXHZRUNLQJWRGHYHORSHQYLURQPHQWIULHQGO\SDFNDJLQJPDWHULDOVZLWKWKHDLPRIFRQWULEXWLQJWRWKHUHDOL]DWLRQRIDVXVWDLQDEOH
society.
Head Researcher, Adhesives Technical Group 1, Adhesives Technical Division Masamitsu AraiDIC Report 201694

Harmony with the Community and Social Contributions
Themes that Demonstrate Unique Capabilities

Adding Color and Comfort to Lifestyles
Basic Approach to Social Contribution%DVHGRQLWV*XLGHOLQHVIRU6RFLDO&RQWULEXWLRQ$FWLYLWLHVHVWDEOLVKHGLQ¿VFDO\HDUWKH',&*URXSZRUNVWRHQVXUHKDUPRQ\ZLWK
local communities and individuals through activities aimed at building a strong relationship with society.

The DIC Group’s Guidelines for Social Contribution Activities
In line with its Color and Comfort by Chemistry management vision, the DIC Group will promote social contribution
initiatives in three areas: business activities, culture and education, and communities and society.
Business
activities

The DIC Group will offer products and services that contribute to the development of a sustainable society andprotection of the global environment from the viewpoint of “CSR through business activities.”

The DIC Group will engage in activities that will contribute to the development and promotion of culture, the arts, science and education,
Cultureand education LQFOXGLQJIRVWHULQJQH[WJHQHUDWLRQKXPDQUHVRXUFHVLQDUHDVVXFKDVWKHFXOWXUHRIFRORUDQGFKHPLVWU\Communities The DIC Group will strive to coexist harmoniously with local communities to develop a relationship of mutual trust. Moreover, the Group will
and society provide an environment that enables employees to engage in voluntary contribution activities in their respective local communities.

Examples of Recent Initiatives
Publication of the Guidebook for the Universal Color Design–Recommended Color Set

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.
In November 2013, the Group—in cooperation with the Japan Paint Manufacturers
Association, the Industrial Research Institute of Ishikawa and the Color Universal Design
Organization and under the supervision of the University of Tokyo—published the
Guidebook for the Color Universal Design–Recommended Color Set. In developing thiscolor set, participating organizations capitalized on their particular expertise in color vision
characteristics to verify and adjust proposed colors, a process that facilitated the creationof a set of colors that are relatively easy to distinguish regardless of ability to see colors andcan be reproduced using printing inks, coatings and digital imaging devices.
At AIC 2015 TOKYO, the midterm meeting of the International Colour Association (ACI),
held in May 2015, the DIC Group gave a presentation on collaborative research on CUD
and printing inks involving Chiba University, the Central Research Laboratories and DIC
Color Design, Inc., and introduced the Color Universal Design–Recommended Color Set.
Research with Chiba University focused on the color appearance of red printing inks,
frequently used to print warnings and other important information on packaging for, among
others, food products and pharmaceuticals. Researchers created a number of red spot color
inks consisting of several base inks and prepared printing samples on various substrates,
which they asked colorblind individuals to evaluate for redness and discriminability
on a black background under differing illuminance levels. The results of evaluations
were announced at AIC 2015 TOKYO. This initiative earned high marks from the color
professionals in attendance for its unique approach, which maximizes the DIC Group’s
SRVLWLRQDVDSULQWLQJLQNVPDQXIDFWXUHU$,&72.<2DOVRPDUNHGWKH¿UVWWLPHWKDWthe Color Universal Design–Recommended Color Set has been introduced at an academic
FRQIHUHQFH7KHSUHVHQWDWLRQRIH[DPSOHVRIWKHVHWEHLQJXVHGWR¿QHWXQHFRORUVGUHZ
a positive response, with visitors from abroad commenting that they had never seen aresource that proposed practical color standards overseas.
The DIC Group will continue to promote research initiatives that contribute to society andadd color to lifestyles.
DIC Report 201695

Guidebook for the Color Universal
Design–Recommended Color Set

AIC 2015 TOKYO

Harmony with the Community and Social Contributions

Visiting Science Lab Program

In line with the Japanese government’s efforts to promote career
education initiatives, as well as to help curb a decline in the popularityof science among children, DIC and DIC Graphics conduct visiting
science labs at public elementary schools. Through this program,which focuses on, among others, experiments in pigment synthesis andoffset printing, the Group seeks to spark children’s interest in scienceand encourage them to realize the close relationship between scienceand their everyday lives.
In fiscal year 2015, the DIC Group’s visiting science lab program
was nominated and won silver in the category of initiatives chosen byelementary school students in the 2015 Education Support Grand Prix
IRUPHUO\WKH&65,QLWLDWLYH$ZDUGLQ(GXFDWLRQ VSRQVRUHGE\7RN\R
based Leave a Nest Co., Ltd. At the request of Tokyo University of
the Arts and Aichi University of the Arts, the Group also held labs forundergraduate and graduate students at both universities.

Visiting science lab at
Tokyo University of the Arts',& V(GXFDWLRQ6XSSRUW*UDQG3UL[FHU¿¿FDWH

Comment

Collaboration between industry and academia is crucial to fostering human resources and advancing technology.
When I heard that DIC conducted visiting science labs at elementary schools on themes related to pigments, I asked the Company whether they would
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University of the Arts. A knowledge of materials is important to the future of these students, so the purpose of the lab was to promote understanding of the
IDFWWKDWPRVWRIWKHSLJPHQWVXVHGLQPRGHUQGD\SDLQWVDUHFUHDWHGXVLQJWKHSRZHURIVFLHQFH)RUVWXGHQWVDYLVLWLQJVFLHQFHODEFRQGXFWHGE\SHRSOHIURPDPDMRUFRUSRUDWLRQLVDYDOXDEOHRSSRUWXQLW\WRREWDLQDYDULHW\RILQIRUPDWLRQIURPDGLIIHUHQWSHUVSHFWLYHWKDQWKDWRIWKHLUXVXDOFODVVHV,DPD¿UP
believer that collaboration between industry and academia is crucial to fostering human resources and advancing technology.
Associate Professor, Tokyo University of the Arts Takayuki Akimoto

Initiatives Led by the Central Research Laboratories

The Central Research Laboratories offers a variety of programs in such uniquely DIC topics as synthesis and chromatics to the students of local schools. In September
and December 2015, respectively, students from Chiba Prefectural Sakura High School and Seishin Gakuen High School in Ibaraki Prefecture, both of which haveearned the designation Super Science High School*, were invited to the Central Research Laboratories to participate in a lab lesson on the theme of “synthesis and
FUDIWVPDQVKLS´/HGE\UHVHDUFKHUVIURPWKHIDFLOLW\WKHHYHQW²ZKLFKWRRNSODFHLQDUHVHDUFKODERUDWRU\²LQFOXGHGDQLQWURGXFWLRQWRUHVHDUFKFRQGXFWHGXVLQJVWDWHRIWKHDUWDQDO\WLFDOHTXLSPHQWDKDQGVRQOHVVRQRQWKHXVHRIVDLGDQDO\WLFDOHTXLSPHQWDODELQZKLFKVWXGHQWVH[SHULPHQWHGZLWKV\QWKHVL]LQJRUJDQLFSLJPHQWVDQGD
lecture on DIC products, and was designed to help students better understand the concept of craftsmanship as it pertains to science. Lecturers also incorporated a career
education component into the event, taking time to talk to interested students about the challenges and rewards of being a researcher.
* Super Science High School is a designation awarded by Japan’s Ministry of Education, Culture, Sports, Science and Technology (MEXT) to senior high schools that implement
curricula focused on the sciences and mathematics that goes beyond the Ministry’s official guidelines with the aim of fostering the next generation of talented engineers and scientists.

Lab lesson for Chiba Prefectural Sakura High School students at the Central
Research Laboratories

Lab lesson for Seishin Gakuen High School students at the Central ResearchLaboratories

DIC Report 201696

Harmony with the Community and Social Contributions

Kawamura Memorial DIC Museum of Art

The Kawamura Memorial DIC Museum of Art, located adjacent to the Central Research Laboratories
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Corporation and its affiliates. In 2016, the museum celebrated its 27th anniversary. The museum
exhibits works from a collection that spans numerous genres, with a focus on 20th century Americanart, and encompasses works by Rembrandt; Impressionists such as Monet and Renoir; modern
European artists such as Picasso and Chagall; and early modern, modern and postwar Japaneseartists. Two exhibitions are scheduled for 2016: photographs taken by Cy Twombly, one of the most
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In addition to its standing exhibit from its permanent collection of more than 1,000 major works, themuseum stages special exhibitions several times a year that focus on pertinent literary works andother artifacts that evoke the cultural atmosphere at the time works were created to help visitors better
understand the collection. Another appealing aspect of the Kawamura Memorial DIC Museum of Art
LVLWVORFDWLRQRQDOXVKO\IRUHVWHGKHFWDUHVLWHDOLYHZLWKVHDVRQDOÀRZHUVDQGIROLDJHWKDWKDV
been open to the public since the museum’s establishment. In cooperation with the Chiba Biodiversity
Center, the museum has also established a biodiversity satellite, a special display area featuring
display panels explaining the importance of biodiversity, in one of the site’s rest cabins.
In a move aimed at promoting relations with the local community and fostering local culturalactivities, the museum has established an annex gallery on the museum site. This facility, which
serves as an exhibition space for local amateur artists, is also made available once a year toelementary and junior and senior high schools in the Sakura area for an exhibition of local students’works. The Kawamura Memorial DIC Museum of Art also accepts local junior high school students
for work experience programs and welcomes elementary and junior high school art classes, led byteachers, for museum tours, with the goal of further supporting art education.

Kawamura Memorial DIC Museum of Art

Nature trail traversing the museum site

Siam Chemical Industry Receives CWR-DIW Award,Q*URXSFRPSDQ\6LDP&KHPLFDO,QGXVWU\&R/WGZDVSUHVHQWHGZLWKD&65',:$ZDUGIRUE\WKH7KDL0LQLVWU\RI,QGXVWU\WKHIRXUWKFRQVHFXWLYH\HDULWKDVEHHQVRKRQRUHG7KH&65',:$ZDUGSURJUDPZDVHVWDEOLVKHGLQZLWKWKHJRDORIUDLVLQJWKHJOREDO
competitiveness of Thai companies. Awards are given annually to companies in recognition of CSR initiatives judged as exceptional fromthe perspective of the seven core subjects defined in ISO 26000, the International Organization for Standardization’s standard for social
responsibility.
6LDP&KHPLFDO¶VDZDUGZDVLQUHFRJQLWLRQRILWVHQHUJ\VDYLQJLQLWLDWLYHVDVZHOODVYROXQWHHUDFWLYLWLHVVXFKDVPDQJURYHSODQWLQJDQG
community support activities, including sponsorship for blood drives. Particularly high marks were given to the progress of efforts to minimize
emissions of greenhouse gases by reducing its consumption of energy, which include tracking consumption and providing pertinent information
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residents of local communities as well as protect the environment.
Matching Gift Program

DIC has a matching gift program whereby it matches the total
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through the 2015 drive and matching gift program were
donated to 20 children’s homes and facilities providing
support for disabled individuals.

Support for Reconstruction Following the Great East Japan Earthquake

Since 2011, DIC has provided support for reconstruction in areas
devastated by the Great East Japan Earthquake as a participant in the
IPPO IPPO NIPPON project, an initiative organized by the Keizai Doyukai(Japan Association of Corporate Executives) with the aim of assisting
local residents in rebuilding their lives. This initiative, which is scheduled
WRFRQWLQXHIRU¿YH\HDUVVHHNVWRVXSSRUWHIIRUWVWRUHEXLOGFRPPXQLWLHV
and stimulate local economies by delivering funds collected from corporate
and individual donors directly to schools andother facilities in need of support.
DIC has also donated funds via theJapanese Red Cross Society to assist withrecovery efforts in the wake of the 2016
Kumamoto Earthquake.

DIC employees visit child welfare facilit y Ryuyouen in
Komaki, Aichi Prefecture, to present a donation

IPPO IPPO NIPPON project logo

DIC Report 201697

Communication with Stakeholders
Themes that Demonstrate Unique Capabilities

Promoting Disclosure and Communication
Basic Approach to Promoting Communication
The DIC Group places a priority on communication with its stakeholders worldwide through direct dialogue in the form of, among others,
participation in exhibitions, websites and events. By communicating effectively with stakeholders, the Group strives to ensure an adequateXQGHUVWDQGLQJRIVWDNHKROGHUH[SHFWDWLRQVDQGWRUHÀHFWVXFKH[SHFWDWLRQVLQLWVEXVLQHVVDFWLYLWLHV7KH',&*URXSLVDOVRH[SDQGLQJLWV
awareness of the concept of stakeholder engagement, a key requirement under ISO 26000.

Ties withshareholders andinvestors

Ties with society

Ties with employees

Ties with the media

Build trusting relationships.
By incorporating thedemands of customers,
seek to develop productsthat enhance customer
satisfaction.

Ensure appropriate
disclosure and build
trusting relationships
with shareholders andinvestors, encouraging
both to evaluate DIC as
an attractive investment.

Operate in harmony withthe community and build
positive relationships
with local residents thatwill underpin the longterm sustainability ofoperations.

Provide workplaces thatare conducive to job
satisfaction and enable
all employees to fulfill
their potential. Over thelong term, achieve true
diversity.

Deepen mutual understanding
through effective publicity,
advertising and othercommunications efforts.

● Websites● Product pamphlets● Websites● Press conferences● Websites● Site reports● DIC Plaza● Press conferences● Interviews with journalists

Ties with customers

Basic approach● Corporate profile

Communications
tools

 '9'V● DIC Report● &RUSRUDWHSUR¿OH'9'V● DIC Reportannouncements●Yuka Shoken Hokokusho(¿QDQFLDOGLVFORVXUH
document required oflisted companies in Japan)● Shareholder newsletters● &RUSRUDWHSUR¿OH'9'V● DIC Report● Sales activities

Opportunities forcommunication● Annual report● Quarterly results● Participation in

exhibitions● General shareholders’meetings● Results presentations● IR conferences● IR meetings● DIC IR Day(in-house newsletter)● Intranet● DIC Pocket Book LQKRXVH*URXSGDWD¿OH ● DIC Report● DIC Report● Production facility tours● Labor–management councils● Newspapers

collaboration among industrial
concerns, government bodies andacademic institutions● Participation in community events● Environmental monitoringfor employees● Presentations on the DIC
Group Code of BusinessConduct● Sustainability presentations● Industry publications● Participation in projects involving● Results presentations● Economic publications

Ties with Customers,Q¿VFDO\HDUWKH',&*URXSWRRNSDUWLQQXPHURXVWUDGHVKRZVLQ-DSDQDQGRYHUVHDV6XFKHYHQWVSURYLGHGYDOXDEOHRSSRUWXQLWLHVIRU
the Group to communicate with its customers.
,Q-DSDQWKH',&*URXSSDUWLFLSDWHGLQWKH7RN\R+HDOWK,QGXVWU\6KRZKHOGLQ0DUFKH[KLELWLQJ6SLUXOLQDZKLFKLVDWWUDFWLQJ
attention as a superfood. In April, the Group took part in FINETECH Japan, where it exhibited polymer products that add value to displays and
PHPEUDQHVXVHGLQSHULSKHUDOHTXLSPHQWDPRQJRWKHUV$W&,7(-DSDQLQ-XQH',&KLJKOLJKWHGFRPSUHKHQVLYH*URXSVWUHQJWKVZLWKan exhibit introducing pigments for cosmetics from global market-leading pigments manufacturer Sun Chemical.
Overseas, the Group took part in display, packaging and coatings industry trade shows in multiple locations, including the United States,
Germany, the PRC, Taiwan and India, all of which involved close cooperation between pertinent sales administrative divisions in Japan andoverseas Group companies.
DIC Graphics held a private show at DIC’s corporate headquarters in Tokyo. The show welcomed not only individuals from DIC Graphics
customer companies but also trading company representatives and brand owners, among others, and featured a variety of products with thepotential to resolve key issues for users, particularly in the packaging industry. On another front, the Central Research Laboratories, a key
DIC Group R&D base located in Sakura, Chiba Prefecture, continued to welcome visitors to its showroom, which features displays illustrating
the key role Group products play in everyday life, an approach designed to deepen public understanding of the DIC Group and its operations.
In response to requests from sales departments and customers, the DIC Group holds study sessions on its sustainability initiatives asappropriate. In the period under review, Group printing inks customers from the PRC paid a visit to the Tokyo Plant, during which time was set
aside for a discussion on sustainability issues, enabling DIC to introduce supply chain, environmental and human rights--related initiatives andexchange information with visitors.
On another front, efforts were expanded to provide detailed product information via Group websites. Additionally, the Group responded tocustomer queries regarding its CSR procurement practices, notably pertaining to environmental safety, social issues and human rights.

DIC Report 201698

Communication with Stakeholders

Presentation on sustainability initiatives for guests (Tokyo Plant)',&*UDSKLFV¶SULYDWHVKRZ FRUSRUDWHKHDGTXDUWHUV

DIC’s booth at the European Coatings Show (Nuremberg, Germany)

Ties with Shareholders and Investors
The DIC Group strives to ensure fair, appropriate and timely disclosure and to communicate closely with investors and
LQFRUSRUDWHWKHLURSLQLRQVDQGUHTXHVWVLQWRLWVPDQDJHPHQWDQGRSHUDWLQJDFWLYLWLHV,Q¿VFDO\HDUWKH*URXSVRXJKWWR
enhance communication with domestic investors by holding two results presentations for institutional investors and securities
analysts, as well as by participating in investor relations (IR) conferences and IR meetings of various types. The Group also
KHOGLWV¿UVW',&,5'D\DQHZLQLWLDWLYHGHVLJQHGWRGHHSHQXQGHUVWDQGLQJRIJURZWKVWUDWHJLHVLQFRUH*URXSEXVLQHVVHV7KH
WKHPHRIWKH',&,5'D\ZDVWKH*URXS¶VSLJPHQWVEXVLQHVV
Overseas, the Group held IR meetings in North America, Europe and Asia, encouraging greater understanding of the Group’s
strategies through presentations by senior executives. The Group also provides information to individual investors via the DIC
website and conventional mass media to enhance familiarity with its operations.

5HVXOWVSUHVHQWDWLRQ )HEUXDU\

',&,5'D\ 6HSWHPEHU

Ties with Society
In addition to the business community, the DIC Group takes steps to enhance communication with ordinary consumers,
LQFOXGLQJVWXGHQWV,Q0D\WKH*URXSFUHDWHGDQ,QWURGXFWLRQWR',&GLVSOD\FRUQHUDWWKH,WDEDVKL3XEOLF/LEUDU\ZKLFKfocused on the Group’s efforts to develop environment-friendly products, one of its core sustainability initiatives, as well as on its
VRFLDOFRQWULEXWLRQHIIRUWVLQFOXGLQJWKH.DZDPXUD0HPRULDO',&0XVHXPRI$UW
',&¶VFDOHQGDUIRUHDUQHGDVLOYHUDZDUGLQWKHFRUSRUDWHFDOHQGDUVFDWHJRU\RIWKHWK$OO-DSDQ&DOHQGDU&RPSHWLWLRQsponsored by the Japan Federation of Printing Industries and Japan Printing News Co., Ltd. An annual event, the All Japan
Calendar Competition recognizes the best calendars produced by general companies, publishers and printing companies,
among others, in terms of printing technology, planning, design, functionality and creativity.

DIC’s display at the Itabashi Public Library (Takashimadaira, Tokyo)$ZDUGFHUWL¿FDWHIURPWKH$OO-DSDQCalendar Competition

DIC Report 201699

Communication with Stakeholders

Communications in the Field of Education)RUILYHGD\VLQ0DUFKWKH.DZDPXUD0HPRULDO',&0XVHXPRI$UW
staged SAKURAart, a group exhibition of artwork by students in Chiba
Prefectural Sakura High School’s industrial arts, photography, Japanesecalligraphy and fine arts clubs and its Super Science High School seminar.
The works of the Super Science High School* seminar students were produced
using traditional dyeing techniques, including natural vegetable dyeing andpigment dyeing, and processes such as aluminum casting, about which the
VWXGHQWVKDGVWXGLHG7KHHDUO\VSULQJHYHQWZHOFRPHGDSSUR[LPDWHO\
visitors, including Living National Treasure Bizen pottery master Jun Isezaki,
who showed particular interest in the pottery works on exhibit.

6$.85$DUWH[KLELWDWWKH.DZDPXUD0HPRULDO',&0XVHXPRI$UW* For related information, please see page 96.

Ties with Employees
The DIC Group promotes a variety of initiatives to encourage active
FRPPXQLFDWLRQ ZLWK LWV HPSOR\HHV DURXQG WKH ZRUOG )URP 0DUFKWKURXJK $SULO  WKH *URXS FRQGXFWHG DQ HPSOR\HH DZDUHQHVV
survey in Japan, the PRC and the Asia–Pacific region with theaim of formulating effective strategies for promoting a new global
branding program. DIC Plaza, the Group’s in-house newsletter,
which is published in Japanese and English, highlights the Group’s
global operations and introduces colleagues from around the world.
,QDQHZIHDWXUHWLWOHG³7KH)URQW/LQHRI6XVWDLQDELOLW\´ZDV
added with the goal of promoting understanding of sustainability
LQLWLDWLYHV:LWKDQDYHUDJHRILWHPVSRVWHGDQQXDOO\WKH*URXS¶Vintranet is another way for DIC to share information with employees
worldwide and promote understanding of its activities.
Senior management also promotes opportunities for directcommunication with employees. These include quarterly operating
results presentations for employees given by the president andCEO, executive vice president and executive officers in charge ofindividual businesses, the goal of which is to enhance understandingof the Group’s management strategies and the Group’s current
operating and financial status.
   )RXU YDULHWLHV RI RUQDPHQWDO VXQIORZHU QDPHG DIWHU DUWLVWV²9DQ*RJK9LQFHQW0DWHXVDQG0RQHW²DUHFXOWLYDWHGRQWKHJURXQGVRI
WKH.DZDPXUD0HPRULDO',&0XVHXPRI$UW,Q0D\DQHYHQW
was held at the museum that enabled Group employees and theirIDPLOLHVWRSDUWLFLSDWHLQWKHSODQWLQJRI9DQ*RJKVXQIORZHUVHHGVand enjoy the museum’s lush gardens.
On another front, the Group held sustainability presentations on
ORFDWLRQLQ0DUFKIRUHPSOR\HHVLQWKH35&DQGYLDWHOHFRQIHUHQFH
in October for employees in the Asia–Pacific region with the goal ofraising awareness of its sustainability program.
DIC’s new corporate headquarters building in Tokyo, which was
FRPSOHWHG LQ 0D\  ERDVWV DQ DGYDQFHG JOREDOVWDQGDUG
flexible communications infrastructure. This has created an open,
multipurpose space that accommodates a variety of working styles
and reinforces relationships among employees.

5HVXOWVSUHVHQWDWLRQIRUHPSOR\HHV )HEUXDU\

DIC Plaza6XQÀRZHUVHHGSODQWLQJDQGDUWDSSUHFLDWLRQHYHQW.DZDPXUD0HPRULDO',&0XVHXPRI$UW

DIC Report 2016100

Communication with Stakeholders

7LHVZLWKWKH0HGLD
DIC is reinforcing efforts to provide information with newspapers, magazinesand other media as a means of enhancing its ability to communicate withits many stakeholders, including its customers and shareholders, investors
and local communities. This reflects a conviction that effective, independent
publicity and advertising that facilitates objective media coverage is vital tosecuring stakeholders’ understanding of the DIC Group and its operations. In
ILVFDO\HDU',&SURYLGHGWKHPHGLDZLWKLQIRUPDWLRQRQDYDULHW\RINH\subjects, including new products, operating results, sustainability initiatives
and personnel systems. Increased media coverage brought positive responses
from stakeholders across the board.

External Assessments,Q ILVFDO \HDU  ',& ZDV VHOHFWHG IRU LQFOXVLRQ LQ WKH 'RZ -RQHV
Sustainability Indices Asia Pacific Index, a leading benchmark for sustainability
initiatives in the Asia–Pacific region and part of the Dow Jones Sustainability
Indices (DJSI), a global family of indices for socially responsible investment(SRI). This is the first time DIC has been included in the DJSI Asia PacificIndex.
DIC also reports to the CDP (formerly the Carbon Disclosure Project), whichworks on behalf of institutional investors to motivate companies to disclose
information on initiatives to combat climate change and key environmental
data. The CDP has consistently recognized the Group’s environmental
LQLWLDWLYHV DQG LQ ILVFDO \HDU  DZDUGHG LW DQ RYHUDOO VFRUH RI $ points for disclosure and a performance class of A-), one of the highest scoresamong materials manufacturers based in Japan.

DIC Report 2016

101

Press conferences
LQÀVFDO\HDU

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

59

89

DIC Report 2016 and ISO 26000: A Comparison
Core Subjects

No.

ThemesRelevant Page

Organizational
Governance

6.2

Organizational governance

Human Rights

6.3.3
6.3.4
6.3.5
6.3.6
6.3.7
6.3.8
6.3.9
6.3.101: Due diligence
2: Human rights risk situations
3: Avoidance of complicity
4: Resolving grievances
5: Discrimination and vulnerable groups
6: Civil and political rights
7: Economic, social and cultural rights
8: Fundamental principles and rights at work

6.4.3
6.4.4
6.4.5
6.4.6
6.4.7

1: Employment and employment relationship
2: Conditions of work and social protection
3: Social dialogue
4: Health and safety at work
5: Human development and training in the workplace

The
Environment

6.5.3
6.5.4
6.5.5
6.5.6

1: Prevention of pollution
2: Sustainable resource use
3: Climate change mitigation and adaptation
4: Protection of the environment, biodiversity
and restoration of natural habitats

Fair Operating
Practices

6.6.3
6.6.4
6.6.5
6.6.6

1: Anti-corruption
2: Responsible political involvement
3: Fair competition
4: Promoting social responsibility inthe value chain
5: Respect for property rights

LabourPractices

6.6.7

6.7.3

ConsumerIssues

6.7.4
6.7.5
6.7.6
6.7.7
6.7.8
6.7.9

Community
Involvement
andDevelopment

6.8.3
6.8.4
6.8.5
6.8.6
6.8.7
6.8.8
6.8.9

1: Fair marketing, factual and unbiased
information and fair contractual practices
2: Protecting consumers' health and safety
3: Sustainable consumption
4: Consumer service, support, andcomplaint and dispute resolution
5: Consumer data protection and privacy
6: Access to essential services
7: Education and awareness

1: Community involvement
2: Education and culture
3: Employment creation and skills
4: Technology development and access
5: Wealth and income creation
6: Health
7: Social investment

Relevant Sections/Initiatives

P5–6 A Message from the President
P8–9 The DIC Group’s Sustainability Program
P13–15 Messages from Top Executives at Regional Headquarters
P32 Corporate GovernanceP34–35 Toward Fair and Transparent Corporate Activities
P36–38 Reducing Business Risks and Preventing the Recurrence of Incidents
P77–80 Working to Enhance Job Satisfaction
P88–90 Establish Solutions-Oriented Businesses
P98–101 Promoting Disclosure and Communication
P8–9 The DIC Group’s Sustainability Program
P34–35 Toward Fair and Transparent Corporate Activities
P77–84 Working to Enhance Job Satisfaction
P81

Reducing Extreme Overwork and Encouraging Employees to Take Annual Paid Leave

P85–87 Expanding Sustainable Procurement Worldwide
P95–97 Adding Color and Comfort to Lifestyles
P43–49 Occupational Safety and Health, Security and Disaster Prevention
P54 Reducing Energy Consumption and Increasing Product Quality through Kaizen Skill Improvement Training
P72–73 Complying with Laws and Regulations
P76 New Efforts to Enhance Employee Education in the Area of Product Quality
P77–84 Working to Enhance Job Satisfaction
P85–87 Expanding Sustainable Procurement Worldwide
P31 Aquacure Inkjet Inks Technology Delivers the Positive Print Characteristics of a Water-Based Ink
P40–42 Promoting Responsible Care
P43, 49 Occupational Safety and Health, Security and Disaster Prevention
P50–62 Preventing Global Warming
P63–64 Reducing Emissions of Chemicals into the Environment
P65–66 Reducing Environmental Impact on Air, Water and SoilP67–69 Reducing Industrial Waste
P70–73 Managing Chemical Substances in Products
P74 Report on Other Initiatives
P93 Promoting Environment-Friendly Products
P97 Kawamura Memorial DIC Museum of Art
P34–35 Toward Fair and Transparent Corporate Activities
P43, 49 Occupational Safety and Health, Security and Disaster Prevention
P50 Preventing Global Warming
P53 Improving Yields by Expanding Use of System to Enhance the Visibility of Energy Consumption
P61 Reducing Greenhouse Gas Emissions Attributable to Logistics
P65 Reducing Environmental Impact on Air, Water and Soil
P81 Reducing Extreme Overwork and Encouraging Employees to Take Annual Paid Leave
P85–87 Expanding Sustainable Procurement Worldwide
P31

Aquacure Inkjet Inks Technology Delivers the Positive Print Characteristics of a Water-Based Ink

P39

Initiatives to Ensure Information Security

P40–42 Promoting Responsible Care
P70–73 Managing Chemical Substances in Products
P75–76 Initiatives Aimed at Increasing Customer Satisfaction
P91–94 Proposing Solutions that Leverage Elemental Technologies
P99

Ties with Shareholders and Investors

P3–4 The DIC Group: A Global Powerhouse
P34 The DIC Group Code of Business Conduct
P45 Training Skilled Safety Personnel to Predict Risks, Promoting Hands-On Safety Training
P47 Status of Occupational Accidents
P54 Reducing Energy Consumption and Increasing Product Quality through Kaizen Skill Improvement Training
P72–73 Complying with Laws and Regulations
P75–76 Initiatives Aimed at Increasing Customer Satisfaction
P85–87 Expanding Sustainable Procurement Worldwide
P91–94 Proposing Solutions that Leverage Elemental Technologies
P95–97 Adding Color and Comfort to Lifestyles

DIC Report 2016102

DIC Report 2016 and the G4 Sustainability Reporting Guidelines: A Comparison
This report was prepared using the GRI’s G4 Sustainability Reporting Guidelines’ “In accordance—Core” option.
Sub-Category

AspectDMA/Indicator

Disclosure

Page(s)General Standard Disclosures

Strategy
andAnalysis

Organizational
3URÀOH

G4-1

Statement from the most senior decision-maker

G4-2

Description of key impacts, risks and opportunities

G4-3

Name of the organization

G4-4
G4-5

Primary brands, products and services
Location of the organization’s headquarters

G4-6

Number of countries where the organization operates

G4-7

Nature of ownership and legal form

G4-8

Markets served

G4-9

Scale of the organization

G4-10

Breakdown of employees

G4-11

Percentage of employees covered by collective bargaining agreements

G4-12
G4-13

Organization’s supply chain
Significant changes that occurred during the reporting period

G4-14

Whether/how the precautionary approach or principle is addressed by the organization

G4-15

Initiatives which the organization endorses

G4-16

Memberships of associations and national or international advocacy organizations
in which the organization participates

G4-17
G4-18
G4-19
,GHQWLÀHG0DWHULDO
Aspects andBoundaries

Stakeholder
Engagement

G4-28
G4-29
G4-30
G4-31
G4-32

“In accordance” option the organization has chosen

2 (About this Report)

G4-33

Organization’s policy and current practice with regard to seeking external
assurance for the report

G4-34

Governance structure of the organization

40 (Initiatives to Date) 7KLUG3DUW\9HUL¿FDWLRQ
9 (System for Promoting Sustainability)
32 (Corporate Governance)

G4-20
G4-21
G4-22
G4-23
G4-24
G4-25
G4-26

G4-35
G4-36
Governance

UNBC, JCIA, Keidanren, Keizai Doyukai,
Japan Printing Ink Makers Association

List of entities included in the organization’s consolidated financial statements or equivalent documents 3 (The DIC Group: A Global Powerhouse) 110–111 (Corporate Data)
Process for drafting the report content and the aspect boundaries
8 (Sustainability Framework and Themes)
Material aspects identified in the process for defining report content
33 (Overview of Materiality Analysis)
Within the organization: DIC Group; Outside the Group: material aspects, namely,environment (reducing impact on society) and society (Promotion of Occupational
Aspect boundary (within the organization) for each material aspect
Safety and Health, Respect for Human Rights); Some suppliers are also includedin economy and governance (promoting supply chain management)
Reasons for any restatements of information provided in previous reports
NA
Significant changes in scope and aspect boundaries
NA
List of stakeholder groups engaged by the organization
98 (Promoting Disclosure and Communication)
Basis for identification and selection of stakeholders with whom to engage
8 (Basic Sustainability Policy)
Organization’s approach to stakeholder engagement
98–101 (Promoting Disclosure and Communication)
Key topics and concerns that have been raised through99 (Ties with Shareholders and Investors)
stakeholder engagement
Reporting period
2 (About this Report)
Date of most recent report
2 (About this Report)
Reporting cycle
2 (About this Report)
Contact point for questions regarding the report or its contents
C4

G4-27

5HSRUW3URÀOH

5–6 (A Message from the President)
13–15 (Messages from Top Executives at Regional Headquarters)
13–15 (Messages from Top Executives at Regional Headquarters)
22–30 (Special Feature)
8 (The DIC Group’s Sustainability Program)
37 (Risk Management System)
3 (The DIC Group: A Global Powerhouse)
110 (Corporate Data)
16–21 (The DIC Group’s Business Portfolio)
3 (The DIC Group: A Global Powerhouse) 110 (Corporate Data)
3–4 (The DIC Group: A Global Powerhouse)
111 (Corporate Data)
3 (The DIC Group: A Global Powerhouse) 110 (Corporate Data)
3 (The DIC Group: A Global Powerhouse)
16–21 (The DIC Group’s Business Portfolio)
91–94 (Proposing Solutions that Leverage Elemental Technologies)
3 (The DIC Group: A Global Powerhouse)
16–21 (The DIC Group’s Business Portfolio)
110–111 (Corporate Data)[6–9 of Yuka Shoken Hokokusho ³$I¿OLDWHG&RPSDQLHV´ @78 (Global Human Resources Management)
Japan: 100% of employees belong to a labor union Overseas: Coverage by collective
bargaining agreements in each country/region complies with local laws and regulations
85–86 (Expanding Sustainable Procurement Worldwide)NA
36–38 (Reducing Business Risks and Preventing the Recurrence of Incidents)
40–42 (Promoting Responsible Care)
9 (Ensuring DIC Remains a Globally Trusted Corporate Citizen with a Proud
Reputation)
40 (Promoting Responsible Care)
61 (Reporting to the CDP)

G4-37

G4-38

Process for delegating authority for the economic, environmental and social topics
from the highest governance body to employees
Whether the organization has appointed an executive-level position or positions
with responsibility for economic, environmental and social topics
The organization’s process for consultation between stakeholders and the highest
governance body on economic, environmental and social topics
Composition of the highest governance body

G4-39

Whether the Chair of the highest governance body is also an executive officer

G4-40

Nomination and selection processes for the highest governance body

DIC Report 2016

103

9 (System for Promoting Sustainability)
9 (System for Promoting Sustainability)
9 (System for Promoting Sustainability)
9 (System for Promoting Sustainability)
32 (Corporate Governance)[30–32 of Yuka Shoken Hokokusho ³'LUHFWRUVDQG&RUSRUDWH$XGLWRUV´ @[33–36 of Yuka Shoken Hokokusho ³&RUSRUDWH*RYHUQDQFH´ @[30 of Yuka Shoken Hokokusho ³'LUHFWRUVDQG&RUSRUDWH$XGLWRUV´ @[33 of Yuka Shoken Hokokusho ³&RUSRUDWH*RYHUQDQFH´ @2–3, 6 (Basic Approach to Corporate Governance)

G4-41
G4-42

G4-45

Governance

G4-46
G4-47
G4-48
G4-51

EthicsandIntegrity

Report processes for the highest governance body to ensure conflicts of interest
are avoided and managed
The highest governance body’s and senior executives’ roles in the development, approval and updating of the organization’s
purpose, value or mission statements. Strategies, policies and goals related to economic, environmental and social impacts

The highest governance body’s role in the identification process

The highest governance body’s role in reviewing the effectiveness of the organization’srisk management processes for economic, environmental and social topics
The frequency of the highest governance body’s review of economic,
environmental and social impacts, risks and opportunities
The highest committee or position that formally reviews and approves theorganization’s sustainability report
Remuneration policies for the highest governance body and senior executives/How performance criteria in remuneration
policies relates to the highest governance body’s and senior executives’ economic, environmental and social objectives

G4-52

Process for determining remuneration

G4-56

The organization’s values, principles, standards and norms of behavior such as codes of conduct and codes of ethics
Internal and external mechanisms for seeking advice on ethical and lawful
behavior, and matters related to organizational integrity
Internal and external mechanisms for reporting concerns about unethical or
unlawful behavior, and matters related to organizational integrity

G4-57
G4-58

[25–26 of Yuka Shoken Hokokusho ³0DMRU6KDUHKROGHUV´ @[36–39 of Yuka Shoken Hokokusho ³&RUSRUDWH*RYHUQDQFH´ @9 (System for Promoting Sustainability)
8 (Sustainability Framework and Themes)
9 (System for Promoting Sustainability)
33 (Overview of Materiality Analysis)
37 (Risk Management System, The DIC Group’s Perspective on Risk)
9 (System for Promoting Sustainability)
9 (System for Promoting Sustainability)
32 (System of Internal Control)
9 (System for Promoting Sustainability)[36 of the Yuka Shoken Hokokusho ³&RPSHQVDWLRQIRU'LUHFWRUV´ @78 (Integrating DIC Group Executive Evaluation Systems)
32 (Basic Approach to Corporate Governance)
7 (The DIC WAY) 11 (New Medium-Term Management Plan: DIC108)
35 (Establishing and Operating a Whistle-Blowing System)
35 (Establishing and Operating a Whistle-Blowing System)

6SHFLÀF6WDQGDUG'LVFORVXUHVDisclosures on Management Approach
Economic

Economic
Performance
Indirect Economic Impacts
EnergyWater

Emissions

G4-DMADMA
G4-EC1
G4-EC7DMA
DMA
Direct economic value generated and distributed
Development and impact of infrastructure investments and services supported

DMA

DMA

50 (Preventing Global Warming)

Energy consumption within the organization
Energy intensity
Reductions in energy requirements of products and services
Total water withdrawal by source
DMA
Direct greenhouse gas emissions

50–62 (Preventing Global Warming)
50–62 (Preventing Global Warming)
50–62 (Preventing Global Warming)
65 (Reducing Environmental Impact on Air, Water and Soil)
50 (Preventing Global Warming)
50–62 (Preventing Global Warming)
53 (Improving Yields by Expanding Use of System to Enhance the Visibility of Energy Consumption)
61 (Reducing Greenhouse Gas Emissions Attributable to Logistics)
50–62 (Preventing Global Warming)
63–64 (Reducing Emissions of Chemicals into the Environment)
65–66 (Reducing Environmental Impact on Air, Water and Soil)
67 (Reducing Industrial Waste)
65 (Managing Water Resources)
69 (Overview of Environmental Impact of the DIC Group’s Operating Activities)
67–69 (Reducing Industrial Waste)
NA

G4-EN3
G4-EN5
G4-EN6
G4-EN8DMA
G4-EN15
G4-EN17

Other indirect greenhouse gas emissions

G4-EN19

Reduction of greenhouse gas emissions

G4-EN21

NOx, SOx and other significant air emissions

DMA(IÁXHQWV
and
Waste

Total water discharge by quality and destination

G4-EN23
G4-EN24

DMA

Total weight of waste by type and disposal method
Total number and volume of significant spills
Weight of transported, imported, exported or treated waste deemed hazardous
under the terms of the Basel Convention
DMA

G4-EN27

Extent of impact mitigation of environmental impacts of products and services

G4-EN25

Environmental
Products andServices

DMA
Compliance

G4-EN29

Transport

G4-EN30

Overall

G4-EN31

Supplier
Environmental
Assessment
Environmental Grievance
Mechanisms
Employment

DMA
G4-EN32
G4-EN33
G4-EN34
G4-LA1
G4-LA3

Labor Practices
andDecent Work

Labor/Management
Relations

G4-LA4DMA

Occupational
Health and Safety

DMA

G4-EN22

G4-LA6
G4-LA833 (Overview of Materiality Analysis)
11–12 (New Medium-Term Management Plan: DIC108)
3–4 (The DIC Group: A Global Powerhouse)
95–97 (Adding Color and Comfort to Lifestyles)NA
91 (Proposing Solutions that Leverage Elemental Technologies)
31 (Aquacure Inkjet Inks Technology Delivers the Positive Print Characteristics of a Water-Based Ink)
93 (Promoting Environment-Friendly Products)
70 (Managing Chemical Substances in Products)

DMA
Monetary value of significant fines and total number of non-monetary sanctions for
42 (Responsible Care Auditing)non-compliance with environmental laws and regulations
43, 49 (Occupational Safety and Health, Security and Disaster Prevention)
Significant environmental impacts of transporting products and other goods and
50 (Preventing Global Warming)
materials for the organization’s operations, and transporting members of the
53 (Improving Yields by Expanding Use of System to Enhance the Visibility of Energy Consumption)
workforce
61 (Reducing Greenhouse Gas Emissions Attributable to Logistics)
Website:Total environmental protection expenditures and investments by type
http://www.dic-global.com/en/csr/environment/accounting.html
DMA
85 (Expanding Sustainable Procurement Worldwide)
Percentage of new suppliers that were screened using environmental criteria
85–87 (Expanding Sustainable Procurement Worldwide)
Significant actual and potential negative environmental impacts
85–87 (Expanding Sustainable Procurement Worldwide)in the supply chain and actions taken
Number of grievances about environmental impacts filed,NA
addressed and resolved through formal grievance mechanisms
Total number of rates of new employee hires and employee turnover by
77–78 (Working to Enhance Job Satisfaction)
age group, gender and region
Return to work and retention rates after parental leave, by gender
80–81 (Enhancing Programs that Help Employees Balance the Demands of Work and Home)
Minimum notice periods regarding operational changes,$PLQLPXPQRWLFHSHULRGLVSURYLGHGDVVSHFL¿HGLQODERUDJUHHPHQWV
including whether these are specified in collective agreements
DMA
43 (Occupational Safety and Health, Security and Disaster Prevention)
Type of injury and rates of injury, occupational diseases, lost days and
47 (Status of Occupational Accidents)
absenteeism, and total number or work-related fatalities, by region and by gender
81 (Reducing Extreme Overwork and Encouraging Employees to Take Annual Paid Leave)
Health and safety topics covered in formal agreements with trade unions
82 Caring for Mental Health

DIC Report 2016

104

DMA

Training
and
Education

Labor Practices
andDecent Work

Diversity andEqual Opportunity

Programs for skills management and lifelong learning that support the continued
employability of employees and assist them in managing career endings

G4-LA11Percentage of employees receiving regular performance and career development
reviews, by gender and by employee category

82–83 (Securing and Fostering Human Resources)

DMA

77 (Working to Enhance Job Satisfaction)

DMA

Composition of governance bodies and breakdown of employees per employee category
according to gender, age group, minority group membership and other indicators of diversity
DMA

77–80 (Working to Enhance Job Satisfaction)[30–32 of Yuka Shoken Hokokusho ³'LUHFWRUVDQG&RUSRUDWH$XGLWRUV´ @85 (Expanding Sustainable Procurement Worldwide)

G4-LA14

Percentage of new suppliers that were screened using labor practices criteria

85–87 (Expanding Sustainable Procurement Worldwide)

DMA

G4-LA15

Human RightsNA
34 (The DIC Group Code of Business Conduct)85–87 (Expanding Sustainable Procurement Worldwide)
34 (The DIC Group Code of Business Conduct)
81 (Reducing Extreme Overwork and Encouraging Employees to Take Annual Paid Leave)
85–87 (Expanding Sustainable Procurement Worldwide)

87 (Conducting On-Site Inquiries to Advance CSR)

G4-LA16

Investment

G4-HR2

Non-Discrimination

G4-HR3

Child Labor

G4-HR5Forced orCompulsory Labor

G4-HR6

Indigenous Rights

G4-HR8

Total number of incidents of violations involving rights of indigenous peoples and actions taken

NA

DMA

DMA

85 (Expanding Sustainable Procurement Worldwide)

Supplier Human Rights
Assessment

G4-HR10Percentage of new suppliers that were screened using human rights criteria

86 (Self–Evaluations, Analyzing the Results of Questionnaires)

Human Rights
Grievance Mechanism

G4-HR12
DMA

Local Communities/
Anti-Corruption

G4-SO3Anti-Competitive Behavior

G4-SO4G4-SO5G4-SO7

Compliance

G4-SO8Supplier
Assessment
for Impacts onSociety

G4-SO9DMA

G4-SO10
G4-SO11
DMA

Customer Healthand Safety

G4-PR1
G4-PR2
DMA

Product
Responsibility

Significant actual and potential negative impacts forlabor practices in the supply chain and actions taken
Number of grievances about labor practices filed,addressed and resolved through formal grievance mechanisms
Total hours of employee training on human rights policies or procedures concerning aspects of humanrights that are relevant to operations, including the percentage of employees trained
Total number of incidents of discrimination and corrective actions taken
Operations and suppliers identified as having significant risk for incidents of childlabor, and measures taken to contribute to the effective abolition of child labor
Operations and suppliers identified as having significant risk for incidents offorced or compulsory labor, and measures taken to contribute to the eliminationof all forms of forced or compulsory labor

Labor Practices
Grievance Mechanisms

G4-HR11Society77 (Working to Enhance Job Satisfaction)
45 (Training Skilled Safety Personnel to Predict Risks, Promoting Hands-On Safety Training)
54 (Reducing Energy Consumption and Increasing Product Quality through Kaizen Skill
Improvement Training)
72–73 (Complying with Laws and Regulations)
76 (New Efforts to Enhance Employee Education in the Area of Product Quality)
77–84 (Working to Enhance Job Satisfaction)

G4-LA10G4-LA12Supplier Assessmentfor Labor Practices

DMA

Product andServiceLabeling

MarketingCommunications

G4-PR3G4-PR4DMA
G4-PR6
G4-PR7

Customer Privacy

G4-PR8Compliance

G4-PR9Significant actual and potential negative human rights impacts in the
supply chain and actions taken
Number of grievances about human rights impacts filed,addressed and resolved through formal grievance mechanisms
DMA
Total number and percentage of operations assessed forrisks related to corruption and the significant risks identified
Communication and training on anti-corruption policies and procedures
Confirmed incidents of corruption and actions taken
Total number of legal actions for anti-competitive behavior, anti-trust and monopoly practices and their outcomes
Monetary value of significant fines and total number of non-monetary sanctions for
non-compliance with laws and regulations
DMA
Percentage of new suppliers that were screenedusing criteria for impacts on society
Significant actual and potential negative impacts on society in the
supply chain and actions taken
Number of grievances about impacts on society filed, addressed and resolved
through formal grievance processes
DMA
Percentage of significant product and service categories for which health andsafety impacts are assessed for improvement
Total number of incidents of non-compliance with regulations and voluntary codes concerning thehealth and safety impacts of products and services during their life cycle, by type of outcomes
DMA
Type of product and service information required by the organization’s procedures for product and service informationand labeling, and percentage of significant product and service categories subject to such information requirements
Total number of incidents of non-compliance with regulations and voluntary codes
concerning product and service information and labeling, by type of outcomes
DMA
Sale of banned or disputed products
Total number of incidents of non-compliance with regulations and voluntary codes concerningmarketing communications, including advertising, promotion and sponsorship, by type of outcomes
Total number of substantiated complaints regarding breaches ofcustomer privacy and losses of customer data
Monetary value of significant fines for non-compliance with laws andregulations concerning the provision and use of products and services

DIC Report 2016

105NA
77 (Respect for Human Rights)

85–87 (Expanding Sustainable Procurement Worldwide)NA
95 (Adding Color and Comfort to Lifestyles)

34–35 (Toward Fair and Transparent Corporate Activities)NANA
42 (Responsible Care Auditing)
85 (Expanding Sustainable Procurement Worldwide)
85–87 (Expanding Sustainable Procurement Worldwide)
85–87 (Expanding Sustainable Procurement Worldwide)NA
75 ([Enhancing Product Quality and Customer Satisfaction)
75–76 (Enhancing Product Quality and Customer Satisfaction)
75–76 (Enhancing Product Quality and Customer Satisfaction)
70 (Managing Chemical Substances in Products)
70–73 (Managing Chemical Substances in Products)
75 (Enhancing Customer Satisfaction)NA
88 (Establishing Solutions-Oriented Businesses)
NA
NA
NA
NA

Third-Party Verification

The DIC Group commissioned SGS Japan Inc. to conduct third-party verification of its data forgreenhouse gas emissions, discharge of industrial waste and number of occupational accidents (including
number of accidents leading to workdays lost).

DIC Report 2016106

Third-Party Opinion Regarding DIC Report 2016

Counselor,
The Japan Research Institute, Limited

Eiichiro Adachi
In his current capacity, Eiichiro Adachi conducts
industry research and assesses corporate
performance from the perspective of social
responsibility. He also provides financial
institutions with corporate information forsocially responsible investing (SRI). A memberof the Market Evolution and Corporations in the
21st Century working group organized by the
Keizai Doyukai (Japan Association of Corporate
E xecutives), Adachi was involved in the
preparation of The 15th Corporate White Paperon “Market Evolution” and CSR Management:
Towar d B u i l d i n g I nt e g r i t y a n d C r e at i n g
Shareholder Value. He also served as a national
expert for Japan to the ISO 26000 working group.

This third-party opinion reflects my view ofthe sustainability initiatives and information
disclosure of the DIC Group, as understoodfrom reading this report, from my perspective
as an individual who provides corporate
information to financial institutions to assist
SRI. It is not intended as a comment onwhether or not the information herein has
been measured and calculated accurately toconform to commonly accepted standards
for the preparation of environmental or otherreports or a judgment on whether the reportcovers relevant important matters in full.

Once again this year, I had the honor or reviewing the DIC Report. The section
on DIC’s new medium-term management plan, DIC108, made a particularly
strong impression, clarifying how the Company positions its various businesses
by outlining four distinct business initiatives, which are to expand businesses
that will drive growth, pursue opportunities for strategic investments (M&As,
etc.), rationalize operations in mature markets and create next-generation
businesses. I sensed a shift in the Company’s focus toward building businessmodels that respond to social imperatives.
I would like to offer a few suggestions for enhancing reporting sustainability
initiatives, as well as disclosure.
First, I would like to see the Company further deepen its awareness of both
opportunities and risks. Page 8 outlines 11 key sustainability themes. Of course,
some of these themes contain elements that will serve as opportunities for thecreation of new businesses, while others contain elements that indicate a needfor strict risk management. Overall, the report leans more toward the former. A
bit less attention devoted to initiatives would make it possible to identify factors
with the potential to restrict businesses or harm competitiveness and ensure
adequate pertinent disclosure. Also, on page 33 the Group’s 22 materiality
categories are too general, and as such it is rather difficult to ascertain what theCompany views as particularly important. I propose that DIC narrow these down
further, based on its awareness of social imperatives, to create more concrete
categories that align better with the unique attributes of the Group’s businesses
and strategies.
Second, I would like to see a significant increase in the disclosure of initiatives
in overseas markets. The DIC Group includes 143 companies overseas, with61.7% of consolidated net sales and 56.3% of consolidated operating income
accounted for by operations outside Japan. Nonetheless, the report features
examples drawn overwhelmingly from its domestic operations, as a result of
which it is not easy to form a clear understanding of the Group as a whole. If
there are circumstances hindering efforts to promote the sharing of information,
perhaps consideration should be given to the idea of publishing site reports invarious regions.
Third, I would like to see the Company strengthen its environmental measures.
Minimizing the impact of operations on the environment is a particularly criticalchallenge for manufacturers of chemicals products. At the COP21 climate
summit held in December 2015 in Paris, participating countries adopted theParis Agreement, which reconfirmed an existing goal of limiting the increase inglobal average temperatures to well below 2 degrees Celsius from preindustrial
levels. With countries and regions seeking to move away from the idea of acarbon-constrained future and to promote decarbonization, we are seeing theimplementation of diverse measures around the world. From the information
on pages 52 and 57, it would appear that the efforts of DIC Group companies
in Japan and overseas to reduce CO 2 emissions have leveled off. From theinformation on page 63, we see that efforts to realize reductions in emissionsof chemicals into the environment have also come up short. Moreover, there
are no indications that the Group is seeking to replace chemicals that arenecessary for operations or chemicals in products with alternatives that haveless of an environmental impact, or other factors that would give readers a morecomprehensive understanding. In the next edition of DIC Report, I hope to see
further progress in the disclosure of such important information.

DIC Report 2016107

DIC Group Milestones
1957

1925

Enters the market for helmets andother molded plastic products

Begins production of organic pigments
Develops production method for organic pigments
and begins production for its own use, the first step inits evolution as a fine chemicals manufacturer.

Kawamura Ink
Manufactory
Established by Kijuro Kawamura
as Kawamura Ink Manufactory;
adopts the dragon as its
product trademark and begins
manufacturing inks.

1940
Dragon product trademark

D I C の 歩 み

108 Years of Achievement

創 業 か ら 1 0 7 年

1908
Established as

Commences production ofwater-based gravure inks
Amid wartime restrictions on use of volatile oils, develops
water-based gravure inks—one of several achievementsthat would later facilitate expansion into synthetic resins.

Enters the plastic products business with the aim of becoming an
integrated manufacturer with operations encompassing productionof everything from plastic raw materials to finished products.

1962

Changes Company nameto Dainippon Ink and Chemicals
Embarks on a new chapter in its history by absorbing
Japan Reichhold Chemicals, Inc., and changes
Company name to Dainippon Ink and Chemicals
Incorporated (DIC).

1952

Makes full-scale entry into thesynthetic resins business
Establishes Japan Reichhold Chemicals Inc., then thesecond-largest joint venture with an overseas firm in thehistory of the Japanesechemicals industry,
and makes a full-scale
entry into the synthetic
resins business.

DIC s previous
corporate symbol

1968

Commences sales of the
DIC Color Guide ®

DIC’s founder, Kijuro Kawamura
Reichhold Chemicals’
San Francisco plant

Launches the DIC Color Guide®, which becomes the defacto standard for color selection in numerous industries,
bolstering recognition of the DIC name.

1915

Commences production of offset printing inks
Becomes one of the first companies to conduct
research in the area of offset printing inks and succeeds
in producing a viable product in only one year.

Promotes expansion of
printing inks business

Diversiﬁes operations by building onbase in printing inks, organic pigments
and synthetic resins

Actively introduces technologies
from overseas and promotes
further diversif ication

2006

1990

Opens Kawamura
Memorial Museum of Art

1973

Establishes theEnvironment and Safety
Response Department
Creates department under the directsupervision of DIC’s president to oversee
safety and environmental initiatives(today’s Responsible Care Department);
creates Environment and Safety
Management Regulations and Interim
Emergency Countermeasures Department
and begins promoting decisive efforts,
including the implementation of plantsafety inspections.

Located in Sakura,Chiba Prefecture,adjacent to the Central ResearchLaboratories; established to exhibit works
of art collected by DIC and DIC Group
companies; now called the Kawamura
Memorial DIC Museum of Art.

1995

Declares intention to uphold theprinciples of Responsible Care

Takes an active role in the Responsible
Care movement since the start as one of
74 founding members of the Japan
Responsible Care Council (JRCC);
reinforces efforts to, among others, reduce
negative environmental impact ofoperations and lower energy consumption.

DIC Report 2016108

Becomes signatory to the
Responsible Care Global Charter
Signs the CEO’s Declaration of Support for
the Responsible Care Global Charter,
established by the International Council of
Chemical Associations, as befits its status asa member of the global community of finechemicals manufacturers.

Certiﬁcation of DIC as Signatory to
the Responsible Care Global Charter

サ ス テ ナ ビ リ ティ 活 動

Sustainability Initiatives

DIC Color Guide ®

2009

1970

1999

Establishes Crown Zellerbach Packaging Materials Japan
Co., Ltd., in a joint venture with Crown Zellerbach
Corporation of the United States and Nippon Kakoh Seishi
Co., Ltd., and enters the multilayered films business.

Amid rising awareness of environmental issues, develops
Japan’s first organic solvent-free sheetfed offset ink.

Enters the multilayered films businessEnters themarket for LCs

Establishes DIC Graphics Corporation
In October 2009, establishes a joint venture with Dai Nippon
Printing Co., Ltd. subsidiary The Inctec Inc. and integrates its
domestic printing inks business with the printing inks
business of The Inctec.

2015

New Champion
Naturalith 100
organic solvent-free
sheetfed offset ink

1973

Develops revolutionary
h i g h - p e r f o r m a n c e,
long-lasting nematicLCs, commencing its
evolution into one of
the world’s foremost
manufacturers of LCs.

Succeeds in developing 100% soybean
oil-based printing ink

Completes reconstruction of corporate
headquarters in Nihonbashi
In May 2015, completes the reconstruction of its corporate
headquarters—the DIC Building—in Nihonbashi, Tokyo, the role ofwhich was expanded to include oversight of the global DIC Group.

1999

Acquires Coates, the printing inks
division of France’s TOTALFINA
Establishes presence in India, Central and South America
and elsewhere by acquiring the Coates Group fromTOTALFINA S.A., France’s largest oil company.

Nematic LCs

1986

Acquires the graphic arts materials division of
Sun Chemical Corporation of the United States
Becomes world’s largest
manufacturer of printing
inks in terms of market
share and a leading namein the graphic arts materials
business.

2008

Changes Company nameto DIC Corporation

DIC Building

Marks centennial anniversary by changing Company name to
DIC Corporation and adopting a new corporate symbol.

Sun Chemical’s headquarters

2016

Launches DIC108 medium-term
management plan
Sets forth a growth scenario aimed at realizing sustainable growthand outlines what DIC must do between now and fiscal year 2018.

DIC’s new corporate symbol

Seeks to advance globalization ofcore businesses and diversify into new areas

Takes steps to advance environmental
protection and expands global presence

Prepares for a new phaseof growth

2010

2014

In December 2010, becomes a participant in
the United Nations Global Compact, with theaim of maintaining its reputation as a socially
responsible corporate entity.

Clarifies its overall policy of achieving sustainability
in a manner that takes into account, among others,
the environment, ecosystems and socioeconomic
issues, and changes the designation used across its
program from “CSR” to “sustainability.”

Changes designation to“sustainability”

In-house poster promoting sustainability initiatives

Joins United Nations
Global Compact

2007

Launches CSR program
Begins promoting CSR initiatives;
identifies fulfilling its responsibilities as amember of society through its businessactivities and contributing to the evolutionof society as the cornerstones of CSR.

DIC Report 2016

109

2015

Selected for inclusion in the
Dow Jones Sustainability
Indices Asia Pacific Index
Included for the first time in the DJSI
Asia Pacific Index, a global family of
indices for socially responsible investing
and a benchmark of global sustainability.

CORPORATE DATA
Corporate Data

Consolidated Financial Highlights

Registered name:

DIC Corporation

Registered address:

35-58, Sakashita 3-chome, Itabashi-ku,
Tokyo 174-8520, Japan

Corporate
headquarters：

DIC Building, 7-20, Nihonbashi 3-chome,
Chuo-ku, Tokyo 103-8233, Japan
Tel: +81-3-6733-3000

Net sales
Operating income
Ordinary income
Net income
Earnings per share (yen)Total assets

Date of foundation： February 15, 1908

¥830,078
41,07639,92525,19426.78
803,703¥819,999
51,06848,99537,394
38.94
778,857

200
0’11 ’12 ’13 ’14 ’15（FY）
※

51.1

41.1

20

40.2

Domestic facilities： Two branch ofﬁces and nine plants

38.5

30

400

35.0

40

600

820.0

50

800

830.1

20,264 (Nonconsolidated: 3,581)

Operating Income (Billions of yen)

1,000

705.6

¥96.6 billion

703.8

Paid-in capital：(Billions of yen)

Net Sales

734.3

March 15, 1937

Number ofsubsidiaries
and afﬁliates：

Fiscal year 2015
(Year ended
December 31, 2015)

Millions of yen, except for per share information

Date ofincorporation：

Number of
employees：

Fiscal year 2014
(Year ended
December 31, 2014)10
0’11 ’12 ’13 ※ ’14 ’15（FY）

Note: The consolidated results for ﬁscal year 2013 comprise the accounts for the nine months ended
December 31, 2013, of DIC and its domestic subsidiaries but one and the 12 months ended
December 31, 2013, of its overseas subsidiaries and one domestic subsidiary.

174 (Domestic: 31, Overseas: 143)

(Information is as of December 31, 2015.)

Executive Ofﬁcers

Board of Directors
Representative Director

Yoshiyuki Nakanishi

Representative Director

Masayuki Saito

Director

Yoshihisa Kawamura

Director

Hitoshi Wakabayashi

Director

Kaoru Ino

Director

Takao Suzuki*

Director

Yukako Uchinaga**

OutsideCorporate Auditors
Corporate Auditor

Jiro Mizutani

President and CEO

Yoshiyuki Nakanishi

Executive Ofﬁcer

Rudi Lenz

Executive Vice President

Masayuki Saito

Executive Ofﬁcer

Hideki Inouchi

Managing Executive Ofﬁcer

Yoshiaki Masuda

Executive Ofﬁcer

Masaya Nakafuji

Managing Executive Ofﬁcer

Toshio Hasumi

Executive Ofﬁcer

Koji Tanigami

Managing Executive Ofﬁcer

Hitoshi Wakabayashi

Executive Ofﬁcer

Shinsuke Toshima

Managing Executive Ofﬁcer

Kazunari Sakai

Executive Ofﬁcer

Sakae Yoshida

Managing Executive Ofﬁcer

Hideo Ishii

Executive Ofﬁcer

Taihei MukoseManaging Executive Ofﬁcer

Masami Hatao

Executive Ofﬁcer

Kiyotaka Kawashima

Managing Executive Ofﬁcer

Kaoru Ino

Executive Ofﬁcer

Masanobu Mizukoshi

Toshifumi Tamaki

Executive Ofﬁcer

Hiroyuki Ninomiya

Naoyoshi Furuta

Executive Ofﬁcer

Kazuo Hatakenaka

Corporate Auditor

Yoshiyuki Mase

Managing Executive Ofﬁcer

Corporate Auditor

Katsunori Takechi*

Executive Ofﬁcer

Corporate Auditor

Cindy Yoshiko Shirata*(Information is as of March 29, 2016.)* Outside

Headquarters/Branches in Japan
Corporate Headquarters
Headquarters
DIC Building, 7-20, Nihonbashi 3-chome,
Chuo-ku, Tokyo 103-8233, Japan
Tel: +81-3-6733-3000

Branch Ofﬁces
Osaka
5-19, Kyutaro-machi 3-chome, Chuo-ku, Osaka 541-8525, Japan
Tel: +81-6-6252-6161 Fax: +81-6-6245-5239
Nagoya7-15, Nishiki 3-chome, Naka-ku, Nagoya 460-0003, Japan
Tel: +81-52-951-9381 Fax: +81-52-962-3591

Chiba
12, Yawatakaigandori, Ichihara, Chiba 290-8585, Japan
Tel: +81-436-41-4141 Fax: +81-436-43-1059
Hokuriku
64-2, Minatomachi-So, Hakusan, Ishikawa 929-0296, Japan
Tel: +81-76-278-2332 Fax: +81-76-278-5354
Sakai
3, Takasago 1-chome, Takaishi, Osaka 592-0001, Japan
Tel: +81-72-268-3111 Fax: +81-72-268-1705
Kashima18, Higashifukashiba, Kamisu, Ibaraki 314-0193, Japan
Tel: +81-299-93-8111 Fax: +81-299-92-6384

PlantsYokkaichi
5, Kasumi 1-chome, Yokkaichi, Mie 510-0011, Japan
Tel: +81-59-364-1151 Fax: +81-59-364-1620

Tokyo
35-58, Sakashita 3-chome, Itabashi-ku, Tokyo 174-8520, Japan
Tel: +81-3-3966-2111 Fax: +81-3-3965-4320

Komaki151-1, Nagare, Shimosue, Komaki, Aichi 485-0825, Japan
Tel: +81-568-75-2751 Fax: +81-568-73-4120

Saitama
4472-1, Komuro, Ina-machi, Kita-Adachi-gun, Saitama
362-8577, Japan
Tel: +81-48-722-8211 Fax: +81-48-722-6087
Tatebayashi
6023, Tobukogyodanchi, Ohshima-cho,Tatebayashi, Gunma 374-0001, Japan
Tel: +81-276-77-2461 Fax: +81-276-77-2468

Laboratories
Central Research Laboratories
631, Sakado, Sakura, Chiba 285-8668, Japan
Tel: +81-43-498-2121 Fax: +81-43-498-2229

Art Museum
Kawamura Memorial DIC Museum of Art
631, Sakado, Sakura, Chiba 285-8505, Japan
Tel: +81-43-498-2672 Fax: +81-43-498-2139(Information is as of March 31, 2016.)

DIC Report 2016110

Principal Domestic Subsidiaries and Affiliates
Cast Film Japan Co., Ltd.
DC Katsuya Co., Ltd.
DIC Covestro Polymer Ltd.
DIC Color Coatings, Inc.
DIC Color Design, Inc.
DIC Decor, Inc.
DIC EP Corp.
DIC Estate Co., Ltd.
DIC Graphics Corporation
DIC Interior Co., Ltd.
DIC Investments Japan, LLC.

DIC Kako, Inc.
DIC Kitanihon Polymer Co., Ltd.
DIC Kyushu Polymer Co., Ltd.
DIC Lifetec Co, Ltd.
DIC Machinery & Printer s Supplies, Inc.
DIC Material Inc.
DIC Plastics, Inc.
Hamamatsu DIC Co., Ltd.
Japan Formalin Company, Inc.
KJ Chemicals Corporation
Mizushima Kasozai Co., Ltd.

Nippon Epoxy Resin ManufacturingCo., Ltd.
Oxirane Chemical Corp.
Renaissance, Inc.
Seiko PMC Corporation
SUNDIC Inc.
Techno Science, Inc.
Topic Co., Ltd.
YD Plastics Co., Ltd.

(Information is as of March 31, 2016.)

Principal Overseas Subsidiaries and Affiliates
Asia and Oceania (Excluding Japan)

Sun Chemical (Hai an) Limited

Aekyung Chemical Co., Ltd.

Sun Chemical Holding (Hong Kong) Ltd.

Unipessoal Ltda.

Changzhou Huari New Material Co., Ltd.

Sun Chemical Trading (Shanghai) Co., Ltd.

Sun Chemical Printing Ink d.o.o.

DIC Alkylphenol Singapore Pte., Ltd.

Suqian Lintong New Materials Co., Ltd.

Sun Chemical Publication A.E.

DIC Asia Paciﬁc Pte Ltd

Suzhou Lintong Chemical Science Corp.

Sun Chemical Publication Romania S.R.L.

DIC Australia Pty Ltd.

TOA-DIC Zhangjiagang Chemical Co., Ltd.

Sun Chemical Publications Bulgaria EAD

DIC (China) Co., Ltd.

Zhongshan DIC Colour Co., Ltd.

Sun Chemical S.A.

Sun Chemical Portugal-Tintas Graﬁcas

Sun Chemical S.A.S.

DIC Colorants Taiwan Co., Ltd.
DIC Compounds (Malaysia) Sdn. Bhd.

Europe and Africa

Sun Chemical (South Africa) (Pty) Ltd.

DIC Epoxy (Malaysia) Sdn. Bhd.

Benda-Lutz Skawina Sp. z.o.o.

Sun Chemical s.r.l.

DIC Fine Chemicals Private Limited

Benda-Lutz Volzhsky ooo

Sun Chemical, s.r.o.

DIC Graphics (Guangzhou) Ltd.

Benda-Lutz Werke GmbHSun Chemical, s.r.o.

DIC Graphics (Hong Kong) Ltd.

Coates Brothers (East Africa) Ltd.

Sun Chemical Sp. z.o.o.

DIC Graphics (Thailand) Co., Ltd.

Coates Brothers (West Africa) Ltd.

Sun Chemical Turkey

DIC Graphics Chia Lung Corp.

Coates Screen Inks GmbHSun Chemical Ukraine Ltd.

DIC (Guangzhou) Co., Ltd.

DIC Europe GmbHSun Chemical ZAO

DIC India Ltd.

DIC Holdings Austria GmbHSun Inkjet Ceramics, S.L.

DIC Korea Corp.

DIC Holdings B.V.

DIC Korea Liquid Crystal Co., Ltd.

DIC Performance Resins GmbH

North, Central and South America

DIC Lanka (Private) Ltd.

ECG Holdings Ltd.

Benda-Lutz Corporation

DIC (Malaysia) Sdn. Bhd.

Gibbon FineCal Ltd.

Camus Water Technologies LLC

DIC New Zealand Ltd.

Glenside Properties Limited

Coates Brothers (Caribbean) Ltd.

DIC Pakistan Ltd.

Hartman D.O.O.

DIC Imaging Products USA, LLC

DIC Philippines, Inc.

Hartmann Druckfarben GmbHDIC International (USA), LLC

DIC (Shanghai) Co., Ltd.

Hartmann-Sun Chemical EOOD

Earthrise Holdings Inc.

DIC Synthetic Resins (Zhongshan) Co., Ltd.

Kingfisher Colours Ltd.

Earthrise Nutritionals, LLC.

DIC (Taiwan) Ltd.

Lorilleux Maroc S.A.

Inmobiliaria Sunchem, S.A. de C.V.

DIC Trading (HK) Ltd.

Parker Williams Design Ltd.

Mondis Manufacturers Insurance

DIC (Vietnam) Co., Ltd.

Sun Branding Solutions Ltd.

DIC Zhangjiagang Chemicals Co., Ltd.

Sun Chemical AB

Guangzhou Lidye Resin Co., Ltd.

Sun Chemical AG

Corp.

Hainan DIC Microalgae Co., Ltd.

Sun Chemical AG (S.A., Ltd.)

Rycoline Products, LLC

Kangnam Chemical Co., Ltd.

Sun Chemical A/SSC Funding LLC

Lianyungang DIC Color Co., Ltd.

Sun Chemical A/S

SC (Puerto Rico) Ink

Lidye Chemical Co., Ltd.

Sun Chemical B.V.

Sinclair International Inc.

Nantong DIC Color Co., Ltd.

Sun Chemical d.o.o.

Sinclair S.A.S.

Nantong Shan Kai Ming Ke Trading Co., Ltd

Sun Chemical for Graphic Arts S.A.E.

Sinclair Sun Chemical Ecuador S.A.

PT DIC ASTRA Chemicals

Sun Chemical GmbHSun Chemical (Chile) S.A.

PT. DIC Graphics

Sun Chemical Group Coöperatief U.A.

Sun Chemical Corporation

P.T. Pardic Jaya Chemicals

Sun Chemical Group S.p.A.

Sun Chemical de Centro America, S.A. de C.V.

Qingdao DIC Finechemicals Co., Ltd.

Sun Chemical Holding B.V.

Sun Chemical de Panama, S.A.

Qingdao DIC Liquid Crystal Co., Ltd.

Sun Chemical Inks Ltd.

Sun Chemical do Brasil Ltda.

Samling Housing Products Sdn. Bhd.

Sun Chemical Inks A/S

Sun Chemical Inks S.A.

Seiko PMC (Shanghai) Commerce &Sun Chemical Lasfelde GmbHSun Chemical Ltd.

Trading Corp.

Sun Chemical Ltd.

Sun Chemical Management, L.L.C.

Seiko PMC (Zhangjiagang) Corporation

Sun Chemical N.V./S.A.

Sun Chemical of Michigan LLC

Shanghai DIC Ink Co., Ltd.

Sun Chemical Nyomdafestek Kereskedelmi

Sun Chemical Peru S.A.

Shanghai DIC Pressure-Sensitive

es Gyarto KFT (Sun Chemical KFT)

Sun Chemical S.A. de C.V.

Adhesive Materials Co., Ltd.

Sun Chemical Osterode Druckfarben GmbHSun Chemical Venezuela C.A.

Shenzhen-DIC Co., Ltd.

Sun Chemical Oy

Tintas S.A.S.

Siam Chemical Industry Co., Ltd.

Sun Chemical Pigments S.L.

Wiseman International Co., Ltd.

Company N.V.
New England Manufacturers Insurance(Information is as of March 31, 2016.)

DIC Report 2016111

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