Financial Highlights

Corporate Data (As of March 31, 2008)
Registeredname

Corporate headquarters

DIC Corporation

Net Sales

DIC Building, 7-20, Nihonbashi 3-Chome,
Chuo-ku, Tokyo 103-8233, Japan

10,000Date of foundation

February 15, 1908

8,000

Date of incorporation

March 15, 1937

6,000

Paid-in¥82,423 million

4,000

Number of employees

4,250 (non-consolidated); 25,413 (consolidated)

2,000

Domestic operations

One branch, nine branch offices,14 sales
offices and 12 plants (non-consolidated)

Number of affiliates

211 (domestic: 48, overseas: 163)

capitalBillions of yen

9,748

10,02910,048

10,157

10,779

2004

2005

2006

2007 (Fiscal year)

482

495

514

2004

2005

2006

0
2003

Operating Income
500

Operations

400

The DIC Group is a global market leader with printing inks,
organic pigments and synthetic resins as its core businesses. The
Group currently classifies its businesses into five core operations.

438

Billions of yen

484

300
200
100
0
2003

Graphic Arts Materials Business Operation2007 (Fiscal year)

Printing inks, printing supplies, organic pigments

Net Income

Industrial Materials Business Operation

300

Synthetic resins, additives and chemicals

250

Billions of yen

310

225

200

High Performance and Applied Products Business Operation
Special compounds and colorants, building materials,petrochemical-related
products,chemical coatings,pressuresensitive adhesive materials, plastic molded products

150

106

100
50

64

53

0

Electronics and Information Materials Business Operation

2003

2004

2005

2006

2007 (Fiscal year)

Imaging and reprographic products, liquid crystal (LC) materials, engineering plastics

Total Assets

Others

10,000

Health care products, decorative materials

Billions of yen

10,168

9,988

9,695

9,918

9,783

2003

2004

2005

2006

2007 (Fiscal year)

8,000
6,000

Electronics andInformation Materials

4.8%

Others

6.1%

4,000
2,000

High Performance andApplied Products

0

12.0%

Breakdown of sales(as of March 31, 2008)
Industrial Materials
Business Operation

1

18.1%

Graphic Arts
Materials
59.0% Business
Operation* Note: These graphs have been prepared from the accounts maintained inaccordance with the provisions set forth in Japan’ s Commercial Code andSecurities and Exchange Law. The scope of consolidation differs from thatused for the purposes of this report. In fiscal 2007, DIC had 177 consolidated
subsidiaries and 34 affiliates.

CSR REPORT 2008

Editing Policy

Contents
Corporate Data/Description of Business,
Major Products/Financial Highlights

1

Editing Policy, Contents

2

mote corporate activities that reflect the needs of society,

A Message from the President

3

establishing “12 Themes of CSR.”

Features

6

The DIC Group has incorporated CSR into its management
policies since fiscal 2007 and is working ceaselessly to pro-

In connection with this, from fiscal 2008, the contents ofCentennial Anniversary Feature Part 1

the previous “Responsible Care Report” have been totally

100 Years of History and The Future

7

revised to become the “CSR Report.” The DIC Group strives

Centennial Anniversary Feature Part 2
Product Development of The DIC Group and Business Model to be Targeted

11

Centennial Anniversary Feature Part 3
Establishment of The DIC WAY and New Code of Business Conduct

13

The DIC Group Business Activity Highlights The DIC Group is Here15

to realize well-balanced reporting of overall CSR activities,
including Responsible Care activities.
In selecting the description contents of Report 2008, the
DIC Group conducted an “evaluation of importance” foreach item of society, economy and environment from both
perspectives of the importance of stakeholders and thoseof our Group and determined the items to be reported.
Our reporting on “Environment and Safety” in the Reportcovers the following.

CSR of The DIC Group19

Organizations and Promotion System of The DIC Group21

Toward Implementation of CSR of The DIC Group 22
Report on “Compliance”

23

Report on “BCP(Business Continuity Plan)” and “Information Security” 24

Scope of Report
Corporate Headquarters, Osaka Branch Office, Nagoya Branch Office(including offices of subsidiaries in the same building) of DIC andReport on “Creation of New Technologies and Values”

25

Report on “Environment and Safety”

27

Report on “Quality Policy and Quality Activities”

39

Report on “Supply Chain Management”

40

Report on “Human Resources Management”

41

DIC plants, research laboratories, domestic subsidiaries of DIC anddomestic affiliates and plants of affiliates, which operate on the same
premises of DIC plants.
<Plants and Research Laboratories>
Tokyo Plant, Suita Plant, Chiba Plant, Kyushu Branch Office’ s Ink
Production Department, Hokuriku Plant, Sakai Plant, Kashima Plant,
Yokkaichi Plant, Shiga Plant, Komaki Plant, Saitama Plant, Gunma

Report on “Coexistence with Society and Social Contribution” 45
Report on “Information Disclosure and Enlightenment”

47

Independent Review

49<Domestic Subsidiaries>

A History of Recognition and Honor

50

DIC Kitanihon Polymer Co., Ltd., DIC Kyushu Polymer Co., Ltd., DIC

Data Compilation

51

Plant, Tatebayashi Plant and Central Research Laboratories.

Kako, Inc., DIC Comfort Materials, Inc., DIC EP Corp., DIC Interior Co.,
Ltd., DIC Color Coating, Inc., DIC Colorants, Inc., DIC Precision Corp.,
DIC Engineering Corp., DIC Filtec, Inc., DIC Logitech Co., Ltd., DIC Plastics, Inc., DIC Molding, Inc., Topic Co., Ltd., Nippon Decor, Inc., Nihon
Packaging Material Co., Ltd., Nippon Plastic Pallet Co., Fuji Label Co.,
Ltd., Seiko PMC Corp.
<Domestic Affiliates, Plants of Affiliates>
SUNDIC Inc., Shiga Plant, DIC Bayer Polymer Ltd., Japan FormalinCompany, Inc., DH Material Inc., Sakai Plant

Reporting Period
April 1, 2007 to March 31, 2008 (FY2007)(A part of topics from FY2008 are described.)

Cover Design
The earth is a crystallization of a variety of “individuals.”
We asked the children of DIC employees, the “handsof the future, “ to come together and draw a single
picture with the concept of creating “one entire
picture (future)” by “everyone.”
The picture is entitled, “Rainbow to the Future.” We
believe it represents the origins of the manufacturing
spirit of a manufacturer to create something by hand.

2

A Message from the President
TOP COMMITMENT

The DIC Group will continue to realize ceaselessinnovations toward our next centennial anniversary.

Koji Oe, Representative Director, President & CEO

Succession of 100 Years of History
and Pursuit of New Missions
DIC Corporation celebrated its centennial anniversary on February 15, 2008. I would like to express my deepest gratitude forwill, as a unique chemical company which provides “Color,” continue to pursue its corporate ideals and missions in the 21st century, built on 100 years of history.

customers, business partners, local communities, society, public

Innovation is Required for Responding to Changes
in the Business Environment and Needs of Societyadministrations and employees).

The chemical industry, including the ink industry, now faces a great

The DIC Group has developed into a global company, with 211

turning point and we are now required to develop businesses on aaffiliates, not only in Japan (48 companies) but also in 60 countries

global scale, not restricted to only one country or region.

(163 companies) around the world. Although the DIC Group is not

The DIC Group has actively entered markets not only in Europe,

as familiar to consumers because it is a materials manufacturer of

the United States, the South East Asia, but also in China and India

chemical products, the DIC Group manufactures, as world-classand is developing unique businesses, rooted in each region.

product lines, PPS (polyphenylene sulfide) resins, magnetic tapes,

In order to continue sustainable development under anhollow fiber modules, liquid crystals (STN and TFT types), in addi-

increasingly more challenging economic environment, thetion to printing inks, organic pigments, and synthetic resins, all of

DIC Group must conform to the communities and societ-

the support and cooperation of all our stakeholders (shareholders,3

which contribute to the development of society. The DIC GroupCSR REPORT 2008

ies where it conducts its businesses and approach businesswith the posture of providing customers with reliable prod-

warming.

Along with such changes in business environment, the require-

Carrying out Activities for Diffusion of“The DIC Way” and CSR throughout the World.

ments of society to the DIC Group have significantly altered.

The DIC Group has worked toward programs such as compliance

Convenience used to have top priority. But now, society requires

and risk management for the purpose of sharing consciousness“safety and security” from corporations in addition to convenience.

among related parties on a global basis. We will continue to strive

This means that while pursuing convenience, such negative phe-with common recognition as a Group from a global perspective

nomena as environmental destruction and damage to health shallregarding problems arising on the earth.

not be tolerated.

The DIC Group formulated “The DIC WAY,” a new basic man-

I recognize that the roles of our chemical industry are very large foragement approach, in 2007, our centennial anniversary. “The DIC

realizing “safety and security” and responses to global warming,

WAY” consists of three principles of “Management Vision,” “Cor-etc. I believe it is now required to the chemical industry to trans-

porate Values” and “Principles of Conduct.” We incorporated CSR

form corporate activities into those providing society with “safety

into our management policies in order to fulfill social responsibili-

and security” by producing products and solutions which contrib-

ties through business activities under “The DIC WAY.” Based on

ucts and services.

“The DIC WAY,” we also established the “DIC Way Code of Business Conduct 2008” (hereinafter referred to as the “Code of Business Conduct”), common norms for business conduct with which
DIC employees should comply in any part of the world.
In order to thoroughly plant and root the “Code of Business Conduct” in every site around the world and diffuse CSR, we haveactively held explanation meetings in group companies both in Japan and abroad. For the purpose of securing diversity, we have not
adopted an approach to inform the Code of Conduct unilaterally,
but created opportunities to listen to opinions of local employees by conveying to them its importance and content. I ask eachand every employee to develop business from a global perspective
ute to the preservation of the global environment.
We cannot respond to the needs of society only by continuingwith a CSR consciousness.

it is necessary to deal with global environmental problems throughSignificance of CSR to DIC
To Become a “Good Neighbor”

innovation, incorporating such a theme as “fundamental process

It is important to develop human resources to promote innovation

reform” into our business strategies.

and CSR through “The DIC WAY.” In particular, we must develop

The DIC Group will make expeditious and concentrated efforts

personnel who have a sense of perspective regarding their duties

toward such innovations. For reduction of industrial waste (zeroand the changes in social needs regarding their responsible opera-

emissions), DIC has achieved targets ahead of schedule. We will

tions. It is not my wish that employees only stay at their desks,

accelerate our efforts to carry out countermeasures for global

captured by the work at hand. It is often necessary to step backprevious business activities. In order to satisfy social requirements,

4and look down from above and think about society as a whole.
I believe human resources, who will discover the path which thecompany will follow and carry out their duties with a level of sophistication that enables feedback, are extremely critical to companies.
For the chemical industry, it is difficult for the public to evaluate
the products manufactured. For example, it is impossible to imagine finished printings only by looking at ink. It is true that it is very
difficult to imagine finished products from our products, although
our chemical industry provides the core values of finished products.
The DIC Group will, as a leader of the chemical industry, continue

long-term.

to contribute as a member of society without becoming an entity

If we look at it from the perspective of changes in social environ-“difficult to understand.” For that purpose, it is important to makement, we must confront a low birth rate and an aging society.

efforts at securing business transparency and clearly disclose even

The DIC Group will enhance such programs as childcare leave andnegative information with a posture of how to improve such in-

employment of elderly people to secure a workplace environment

formation.

in which workers feel comfortable to work.

We also keep our eye on coexistence with local communities. Some

The DIC Group will also reinforce approaches in the promotionof DIC plants adopt approaches toward improvements throughof CSR not only for the primary supply-chain but for the entire

dialogue with the neighbors of plants by asking them to become

supply-chain. For example, in China, we are promoting efforts forour monitors. I believe each of these activities will constitute basic

regional coexistence, including environmental problems, at theefforts to have them regard us as a “good neighbor.”

manufacturing sites of companies producing raw materials, along

I think there should not be any gap between what we think in ourwith pigments DIC produces.

everyday life and what we think in our organization. If there is any
gap, we have to fill in that gap. The perspectives we should have

Lastly, the DIC Group raises its flag of “Color & Comfort by Chem-for that purpose are CSR and we have to actively bridge that gap.

istry” as its management vision. We aim to be a company respond-

Strengthening Activities from Mid andLong-Term Perspectives, being Conscious of CSR

ing to the creditability of our stakeholders by providing “Color”
and “High Performance and Applied Products,” based on chemical technologies and a global business foundation which we have

It is sometimes difficult in carrying on business to balance between

developed and by increasing corporate value as well as striving for

performing social responsibilities and increasing profits. From a

coexistence with local communities and contributing to society.

short-term point of view, innovation requires cost and may notachieve results soon. If we neglect necessary measures by placing too much emphasis on short-term profits, however, it will not
result in mid and long-term development. Even if it has a negative
impact for a short period of time, I believe challenging with courage will lead to innovation and profits will follow in the mid and5

Representative Director,
President & CEO

Koji OeFeatures■ Centennial Anniversary FeaturePart 1 100 Years of History and The Future...............

7

Part 2 Product Development of The DIC Group........

11

and Business Model to be TargetedPart 3 Establishment of The DIC WAY and................ 13
New Code of Business Conduct■ The DIC Group Business Activity
Highlights
The DIC Group is Here................................................

15

6

Centennial Anniversary FeaturePart 1: 100 Years of History and The Future

1908
Established Kawamura Ink Manufactory“Dragon” trademark of products and started
manufacturing of inks for wood prints,
lithographs, and typography.

1915

Started manufacturing of inks for offset
printing.

Kijuro Kawamura, Founder

1919

Started penetration in China throughexclusive distributor agreement withtrading company in Hankou, China.

1925

Started internal production of organic
pigments for first time in Japan.

1937

Incorporated as Dainippon Printing Ink
Manufacturing Co., Ltd.

Three-roll ink mill at
beginning of operations

Advertisement of
Kawamura Kijuro Shoten(1913)

1940

Developed aqueous gravure printing ink
for response to wartime printing needs.

1950

Initial public offering on Tokyo Stock
Exchange

1952

Incorporated Japan Reichhold Chemicals
Inc. (JRC) as joint venture with Reichhold
Chemicals Inc. of U.S.A.

Long Island Headquartersof Sun Chemical Corp.

1954

Entered into technological cooperationagreement with Sun Chemical Corp. of
U.S.A.

1958

Opened Hong Kong Sales Office as firstoverseas base after war.

1960

Incorporated Japan Vilene Co., Ltd., joint
venture manufacturing nonwoven cloth with
Carl Freudenberg & Co. KG. of West Germany.

1962

Merged with JRC and changed company
name to Dainippon Ink and Chemicals,
Incorporated (DIC).

1963
San Francisco Plant of Reichhold
Chemicals, Inc.

First phase construction of Chiba Plant
was completed, aiming at reinforcementof foundation as general chemical
manufacturer.

Completed Chiba Plant (1st Phase)Landscape of plants at incorporation of Dainippon Printing Ink
Manufacturing Co., Ltd. (1937)

7

CSR REPORT 2008

The DIC Group has worked at expanding its business fields, centering on chemicals and in particular, it haspromoted business activities corresponding to the needs of the times as the world’s leading company of graphic
arts materials. The DIC Group will further strive for businesses innovation in the future, even after entering its
100th year of operations in 2008.

1974

Commercialized “Spirulina,” high protein
spiral algae.

1979

Acquired Polychrome Corporation, US
printing materials manufacturer. Opened
Renaissance Tennis School in Makuhari
and entered into full-scale sports business.

1985

Incorporated Shenzhen China Japan Ink Co.,
Ltd., printing ink manufacturer as joint venturewith Chinese company (company name laterchanged to Shenzhen-DIC Co., Ltd.).

1986
Completed DIC Building (1967)

Acquired graphic arts materials divisionof Sun Chemical Corp. of United States
and became largest company in printing
inks and graphic arts materials field.

1967

1987

1968

1990

DIC Building, then the tallest building inJapan, completed in Nihonbashi, Tokyo.
Incorporated DIC-Hercules, joint ventureof chemicals for paper manufacturingwith Hercules Incorporated of U.S.A. (In1992, company name changed to Japan
PMC Corporation)

1969

Started production of polystyrene byoriginal technologies.

Acquired Reichhold Chemicals Inc. of UnitedStates and established world’s leading position in thermosetting synthetic resins.
Sun Chemical Corp., Headquarters

Kawamura Memorial Museum of Art
opened.

Completed plant ofShenzhen-DIC Co., Ltd. (1987)

1972

Released toners for copiers and penetrated into recording materials business.

1973

Developed high quality liquid crystal, adopted
for world’s first liquid crystal calculator.

Kawamura Memorial Museum of Art

8

Centennial Anniversary FeaturePart 1: 100 Years of History and The Future
Plant of DIC Zhangjiagang Chemical Co., Ltd.

Qingdao DIC Finechemicals Co., Ltd.

1996

Incorporated Qingdao DIC Finechemicals
Co., Ltd., research and development
company, in Qingdao, China. Emperor
visits Tokyo Plant; first and highest
honor in printing ink industry.

1999

A cquired Coates , the printing ink s
division of France’s Totalfina S.A., world’s
third largest printing ink company.

2001

Incorporated Nantong DIC Color Co.,
Ltd. for local production of organic
pigments, printing inks and ink
intermediary bodies.

2003

Acquired high-performance pigments businessof Sun Chemical Corp., subsidiary of Bayer USA.
Japan PMC merged with Seiko Chemicals andcompany name changed to Seiko PMC Corp.
Incorporated DIC Zhangjiagang Chemical Co.,
Ltd. for synthetic resins, conducive andmagnetic compounds in China.

2005

Increased polymerization capacity of PPS
polymers to 10,000t per year, world’s largest.
Sold all shares of Reichhold Group to
management of Reichhold by MBO.

Organic Pigments Plant of Nantong DIC Color Co., Ltd.

9

Printing Ink Plant of Totalfina S.A. (Coates)

2006

Established“Color & Comfort by Chemistry”
as new management vision.

2007

Established“The DIC WAY,” representing basic corporate values.
Full-scale adoption of liquid crystal materials for TFT in liquid
crystal TVs.

2008

Company name changed to DIC Corporation, at centennial
anniversary.

Nameplate of the Headquarters in Nihonbashi, Tokyo

CSR REPORT 2008

Toward Enrichment
DIC made a fresh start for new growth taking the opportunity of the company name change at the centennial anniversary.
DIC is committed, as the missions of DIC, to realize contributions to “Rich Colors” and “A society where we can live securely”
through chemistry. DIC will aim at realizing enrichment through ceaseless innovation.

Enrichment
We believe we can realize enrichment only
by a combination of “a society where we canlive securely” and “a colorful culture.”

Color

Comfort

DIC will provide people with inspiration by furnishing colors that appeal to sentiment and embrace
comfort.

DIC will support the foundations of living by providing high-performance materials that can beused safely and securely.

Chemistry
DIC will manufacture based on its knowledge of chemistry, utilizing experience in colors andmaterial design. DIC will aim at realizing a recycling society by working toward conservation,
improvement and rehabilitation of the global environment along with development of civilization.

Collaborative Inspiration
The concept of a new symbol mark is “Collaborative Inspiration.” It expressed a new idea by an exclamation mark,“!,” which is created by “D” of the DIC Group and “C” of
Clients (customers and vendors). The symbol mark means
we will further increase corporate values by actively incorporating and deepening new ideas to be created throughcollaboration among the DIC Group, customers, business
partners and employees within the Company.

10Centennial Anniversary FeaturePart 2: Product Development of The DIC Group and Business Model to be Targeted

Plastic Pallets & Containers Div.

Plastic mold goods

House interiorbuilding materials

Synthetic resin compounds
Colorants
Organic
pigments

Building Materials Div.
Special Compounds &Colorants Div.

Pigment Div.

Pressure-Sensitive Adhesive Materials Div.

Adhesives
Magnetic tapes
Protective coatings for optical disks

Imaging and Reprographic Products Div.

Liquid Color Div.

Printing
Inks

Printing Inks & Supplies Div.

News Ink Div.

Decorative sheets
Liquid crystal materials

Color & Comfort Div.

Liquid Crystal Materials Div.

Additives & Chemicals Div.

Polymer additives
Synthetic
resinsCoating Resins Div.

Specialty Resins & Chemicals Div.

Unsaturated Polyester Div.

Petrochemicals Div.

Petrochemicals products
Epoxy resins
Engineering plastics
Development into newfields11

Hollow fiber membrane
Health care foods

Functional Polymers Div.

Engineering Plastics Div.

Membrane Div.

Health Care Foods Div.

CSR REPORT 2008

The DIC Group has established its business foundation based on fine chemicals, starting from printing inks to organic pigments
and synthetic resins, and widely expanded businesses, which include high performance and applied products and electronics
and information materials by applying original technologies developed over many years.
We make every effort to create new value, providing the world with a variety of products and meticulous service, and further
contributing to sustainable development of customers, society and the global environment through ceaseless innovation.

Core Technologies

Palettes, crates for glass bottles
helmets, medical materials

Graphic arts

Organic Pigmentsfor printing inks

(including digital)

Dispersion

Organic pigments for inks,
paints, and plastics

Liquid crystals

Industrial double-sided adhesive tapes,
adhesives for printing, labels and stickers

Display films

Electronics

High-performance
optical materials(display devices)

Magnetic tapes/sheets, jet inks,
optical disk coatings, adhesives

Coating

UV-curable materialst
Coatings

Inks for offset printing, paper
coatings, fountain solution

Optronics

Optical films

Inks for newspaper printing
Glossy decorative metallic
sheets, hydraulic transfer films

Liquid inks

Synthesis

Liquid crystal (STN, TFT)

Films

Packaging

Coatings

Fluorochemical surfactants, firefighting
foam, resin modifiers, metal soaps (for tires)

High-performanceorganic pigments

Resins for inks and paints,
resins for optical materials
Resins for adhesives, resins for construction
materials, resins for synthetic leathers

Engineering plastics

Molding

Automobiles

Decorative systems

Polyester resins

Synthetic resins

Polystyrene resins,
multi-layered films

High-performance materials
Decorative systems

Epoxy resins
Engineering plastics(PPS resins, PBT resins)
Hollow fiber membrane degassing and aeration
modules, ultra-pure water antistatic devices
Spirulina, natural sweetener(Stevia), natural colorants

Housing and household
electrical appliances

Processing
Resins forelectronics materials
Engineering plastics

Electronics(electronic components)“Comfort” Business

Gravure and flexo printing inks, cancoatings, adhesives for packaging

Using our position as theultimate color professional
to shape the market

Jet inks“Color” Business

Printing inks

Wooden decorative boards, Nonflammable decorative
boards, on-demand prefabricated storage units
Textile colorants, resin colorants,
high-performance compounds

Target Markets

Develop innovative highperformance materials thatcreate comfortable spaces

Major Product Line

Industrial adhesive tapes

12Centennial Anniversary Feature Part 3:

Establishment of The DIC WAY and New Code of Business Conduct
The DIC WAY

Management
vision

The DIC SPIRITEnterprise,
Integrity
DiligencePrinciples ofconduct

Corporate
valuesThrough unceasing innovation, the DIC Group
strives to create new value directed atsustainable development for its customers, society
and the environment.

• We shall hone our sensitivity to changes in society and be aware of our mission toalways be ahead of the times.
• We pledge to incorporate the concepts of social and environmental sustainability
into our corporate activities.
• We vow to strive constantly to hone “The DIC SPIRIT.”• We shall respect the autonomy and initiative of each individual employee in
applying his or her talents to the pursuit of our values and realization of our vision.

1. Purpose of New Code of Business Conduct
The DIC Group and employees of the DIC Group are ex-

DIC Group shall comply, the DIC Group formulated “Thepected to be “model corporate citizens” in every respect of

DIC WAY Code of Business Conduct 2008” (hereinafter re-business activities by stakeholders, including shareholders,ferred to as the “Code”). Employees of the DIC Group will

customers, business partners and society, etc.

submit a written confirmation and comply with the Code.

Therefore, as uniform norms with which employees of the

2. History toward Establishment of the Code1

October 2001: “Compliance Program” of the DIC Group was established.

July 2003: Definition of “Compliance” of the DIC Group was changed to “carrying out fair and transparent business activities2

and responding to the credibility and expectations of customers, investors, employees, local communities and countries, etc.,” aswell as integration of previous “Compliance Program” and “Risk Control” into “Risk Management” for a unified operation.

3

April 2005: Developed into “Compliance Code of Business Conduct 2005,” being conscious of “OECD Guidelines for Multinational Enterprises.”

April 2008: A new corporate concept “The DIC WAY: Three Basic Principles of Management” (“Management Vision,” “Cor-4

porate Values,” and “Principles of Conduct”) was formulated at the centennial anniversary. In order to take the same vector as“The DIC WAY,” the previous “Compliance Code of Business Conduct 2005” was developed into the Code and established.

13

CSR REPORT 2008

DIC entered the 100th year from its foundation and at the same time as the changes in company nameand brand design, DIC formulated “The DIC WAY,” a new concept of management of the DIC Group andstarted its second foundation. “The DIC WAY” consists of three principles of “Management Vision,” “Corporate Values,” and “Principles of Conduct ” and placed “The DIC SPIRIT” at the core.

ishment on reporters, etc., and the obligation to preserve records of consulta-

3. Composition of the Codetions, reports and notifications are also provided for.

The Code provides for the following general principles.

4. Explanation Meetings of the Code

GENERAL STANDARDS OF CONDUCT(1) We shall strive to conduct our business operations in asound and efficient manner, in line with the DIC WAY.
(2) We shall comply with international rules and regulations
and the letter and spirit of all applaicable laws of eachjurisdiction in which the DIC Group does business.
(3) As responsible corporate citizens, we respect all social
norms, and conduct our business in a socially responsible
manner.
(4) We shall put proper internal controls into place andprepare all books and records in accordance withfair and proper accounting standards to ensure thereliability of financial reports.
(5) We shall act with a strong awareness of the environment,
safety, health and quality, throughout the entire cycleof business activity.
(6) We shall take a firm stance against demands from antisocial organizations.
(7) We shall not violate the principles set forth in this Code,even if such violation would appear to be profitable forthe DIC Group.
(8) We shall promptly report any violations of this Codeand strive to ascertain the cause of, and to prevent therecurrence of, any such violations.

DIC has held explanation meetings of the Code of Business Conduct not only
for DIC but for the DIC Group companies in Japan and abroad. For the Code, we
conducted explanation meetings in twenty countries in the US region, South East
Asia and Oceania region (Singapore, Thailand, Malaysia, Australia, New Zealand,
India, Sri Lanka, Indonesia, the Philippines, Pakistan, Vietnam and Korea), China
region (including Hong Kong and Taiwan) and European region (Germany, Spain,
Austria, the Netherlands) from December 2007 to June 2008. Prior to explanation meetings in each country, we prepared an English version, a Chinese version
and other local language versions to have them reviewed by local lawyers to
confirm that they were not inconsistent with local laws and conducted explanation meetings at each company. We made every effort to establish complianceconsciousness of employees by immediately answering questions and opinions
raised at the explanation meetings.
Particularly in China, we took special care by preparing “The DIC WAY Codeof Business Conduct Q&A” so that the Code would be understood more deeply
by Chinese employees.
We will prepare a Q&A in each language and promote improvement of thesystem in which the DIC Group employees can attend training sessions on the
Code at any time, by introducing e-learning.

We further established under the Code 10 norms (specifics) in total, which provide for more specifically, including “norms concerning human rights and working environment,” “norms concerning environment, safety and health,” and“norms concerning market competition and international transactions,” etc.
Protection of reporters, including methods of consultations on the Code, reports and notifications, confidentiality of names of reporters, prohibition of pun-

The DIC WAY Code of Business Conduct
Seminar, held in India on April 21, 2008.

Voice of An Employee ｜ The DIC WAY Code of Business Conduct Seminar
DIC Trading (HK) Sales Manager●

Mr. Wilson Yu

I believe this explanation meeting has great significance, which was held concurrently with the centennial anniversary of
DIC, when the company name was changed and a new management vision (The DIC WAY Code of Business Conduct 2008)
was formulated. A poster of The DIC WAY was posted in our company and I could understand the ideas, including CSR very
well. Although a previous explanation meeting was held in 2005, this meeting was more thorough and I could understandthe new direction of management of DIC and ideas of CSR.
DIC Trading (HK) enters its 50th year since its opening of the Representative Office and I will continue to make my best effort as a member of the DIC
Group, a global corporation, for development of DIC Trading (HK) and the DIC Group as a person in charge of sales in the expanding China region.

14

The DIC Group Business Activity Highlights

The DIC Group is HereWe will also contribute to state of the art cosmic ray research.

“Super-Kamiokande” ©Kamioka Observatory,ICRR(Institute for Cosmic Ray Research), The University of Tokyo

Hollow fiber membrane module
removing oxygen solved in water.

It plays a role as a degassing device of ultrapure water for the “Super-Kamiokande”

A hollow fiber membrane is a film of a straw shape. As it can provide a large

In 2002, Masatoshi Koshiba, Professor Emeritus of the University

space of film by a small volume, it can produce high capacity separation membraneof Tokyo, was awarded the Nobel Prize in Physics for his “contri-

devices. A hollow fiber membrane module is a bundle of hollow fiber membranes,

bution as a pioneer in astrophysics, particularly in the detection of

filled and sealed in a case.

cosmic neutrinos.” It is “Kamiokande” of the Institute for Cosmic

The hollow fiber membrane module of our company, “SEPAREL ” removes oxy-

Ray Research of the University of Tokyo that succeeded in observa-

gen solved in water and DIC started its business as degassing membrane modules

tion of neutrinos which came from the explosion of a supernova

for boilers and thereafter, usage expanded to degassing of ultra-pure water andthrough this research. “Super-Kamiokande,” which has improved

antistatics, etc., which are used in the semiconductor manufacturing process.

the capacity of “Kamiokande” under the same principles, has a®

tank holding 50,000t of ultra-pure water and about 11,200 of
photoelectron multipliers, which were installed inside.
“SEPAREL®,” the hollow fiber
membrane module has been
adopted in the ultra-pure water
degassing device of the “SuperKamiokande” and contributes
Production Dept. & Technical Dept.
Membrane Div.

Misao Takeuchi

15

to cutting-edge research.
“SEPAREL®,” hollow fiber
membrane module

CSR REPORT 2008

DC was founded in 1908 as a company which manufactured and sold printing inks. Now DIC widely develops businesses, including printing
inks, organic pigments, synthetic resins, high performance and applied products and electronics and information materials, etc., and provides an array of products and services, which support people’s livelihoods, while responding to the needs of society. There are many DIC
products which play important roles in places where consumers cannot see directly. Here, we will introduce some of these products.

Contribution to weight reduction and the environment: DIC actively works with Engineering Plastics (PPS)Polyphenylene sulphide (PPS) resin compounds, “DIC PPS” Series
PPS, one type of engineering plastic, is thermoplastic resin which offers excellent performance in heat resistance, flame resistance, chemical resistance and size stability. In general, it is widely used as a compound reinforced by glass fibers for automotive electric equipment parts, electrical and electronics parts.

PPS FZ-820
for Ignition Coil Cases

PPS/Elastomer alloy Z-230
for Water Heater

An ignition coil is an ignition device“Z-230” is PPS/Elastomer alloy de-essential for automobiles. It enables

veloped by DIC, the first of its kinda response to the latest ignition sys-in the world.

tems by clearing the requirements for

It significantly reduced the vulner-

properties of durability and adhesive-

ability of PPS resin and is applied toness under very severe conditions, repeated heating and cooling, whichelectromagnetic valves, controlling the flow rate in the water path ofare required by customers and contributes to lower fuel consumption bya water heater. PPS is used to replace metal materials and greatly con-trimming weight.

tributes to cost reductions by productivity improvement and energy“FZ-820” is adopted in about 90% of all stick coil type products andreduction from a lighter weight. “Z-230” is adopted in about 80%

about 26% of all automobiles aroundof all resin electromagnetic valves

the world.

and joints of water heaters.
Engineering Plastics
Technical Group,Engineering Plastics Div.

Manager, Engineering Plastics
Technical Group,Engineering Plastics Div.

Taku Shimaya

Shigeaki Nagano

DIC products play important roles in game consoles and mobile phones, which attract a lot of attention now.
Acrylic resin “ACRYDIC®” Series
UV-curable resin“ UNIDIC®” Series for coating
materials of household electrical appliances andIT equipment plastic parts
Designs of household electrical appliances, including flat-panel TVs,

Assistant Manager,
Coating Resins Technical Group 2,
Coating Resins Div.

Masahiro ItoManager,
Coating Resins Technical Group 2,
Coating Resins Div.

Katsumi Ota

audio products, game consoles, etc., and IT equipment, including
mobile phones, PCs and digital cameras, etc., are rapidly changing.
DIC resins are used for coating materials that protect the surface ofbase materials of plastic parts of these products. DIC resins have established a high degree of reliability as hard coating materials which
provide an excellent appearance and high durability among the numerous acrylic coatings and UV coatings.

16

The DIC Group Business Activity Highlights

The DIC Group is Here

We contribute to the “Quality” and “Environment” of Future Offset Printing“Presarto®” Series: New generation fountain solution for offset printing responds to the diversity and highspeed of printing “DIC Dampening Roller ECOPACK (DIC dampening roller cleaner ECO + DIC hydrophilictreatment agent ECO”

What is the process of offset printiang?

What is the “fountain solution” provided by DIC?

A plate for offset printing consists of two parts of an image

The fountain solution is a chemical added to water (dampening wa-

area (part where pictures and text are printed) and a non-imageter) supplied on the surface of a plate. Stability and quality of printing

area (blank part). To the image area oil is easy to attach (lipo-

are largely increased by adding the solution to the dampening water.

philic property) and to the non-image area, water is easy to at-

The “Presarto®” Series, the fountain solution for offset printing bytach (hydrophilic property). In printing, the plate is dampened by

DIC, offers excellent quality and enhanced line-ups including thosewater, thereby only the hydrophilic part becomes wet. Next, inks

types which do not use VOC (volatile organic compounds), a cause ofare spread and inks attach only to the lipophilic part and not to the

air pollution. It enjoys a sterling reputation among customers and ispart wet by water as inks have a lipophilic property. The plate isone of the rapidly growing products among DIC offset printing ma-

transferred to a rubber blanket (this process is called, “offsetting”)

terials.

and then the process of printing on paper starts.
Dampening roller

Ink roller
Plate cylinder

Printed basematerial
Offset Ink Technical Group 1,
Printing Inks & Supplies Div.

Katsunori Tanaka

Blanket cylinder

mpression
cylinderOffset printing

DIC Fountain Solution “Presarto ®” Series

Approach to Labels toward “Safety and Security”
As “safety and security of foods” has attracted much attention

variety of labels, which incorporated the market demands for con-in recent years, demand for insect deterrent labels have rapidly

tributing to safe and secure living for consumers. (E.g., as “guard

increased.

for security,” “security labels” are also sold, which play a role in

Fuji Label Co., Ltd. has developed a label “from which insects willfalsification prevention because once the label is detached, it isevade only by labeling” in order to respond to such needs. Thiseasily detected.)label is a benchmark product which has the three large featuresof safety, faint odor and durability. It mixes special repellent in avarnishing agent for an overcoat, which is able to respond to anybase paper for labels and not choosey about adhesives. It protects
foods from such harmful insects as German cockroaches, houseflies, and Indian meal moths. It has been adopted in gas packaging
materials of large ham manufacturers.
In addition to the above, Fuji Label Co., Ltd. has developed a17

Label“ from which insects evade only by labeling”

CSR REPORT 2008

Approach to Color Universal Design
Along with the progress in color printing and display technology, brilliant colors and a multitude of colorations can be seen aroundus, which was unimaginable several years ago. However, how colors are seen by us differs by individual and the difference in colors
easily recognized by many of us may be difficult for the other people. DIC Color Design, Inc. providing services centering on color
wants to promote and diffuse the concept of “Color Universal Design” to convey information precisely to as many people as possible.
Museum/Museum Shop/Tea RoomMuseum/Museum Shop/Tea Room
Flower shop/Ticket window

Flower shop/Ticket window

Bus stop

Bus stop

Restaurant/Gift shop/Gallery

Restaurant/Gift shop/Gallery

Present position

Present position

DIC General Research Laboratories

DIC General Research Laboratories

Rest house

Rest house

An example of coloration not considering color universal design

An example of coloration considering color universal design

What is Color Universal Design?

Toward development of practical tools

People see color with significant variations. In Japan, there are more

DIC Color Design, Inc. produced, as part of its approach to color uni-

than 5 million people in total who see color differently from ordinary

versal design, “DIC UD Color Palette” which selected 24 colors based

people, due to their genetic types or eye diseases. Color Universal De-on the colors of the DIC Color Guide Series under the supervision ofsign is a user-oriented design system, which has been developed in

Kei Ito, Associate Professor, of the University of Tokyo. The figure atconsideration of people with various types of color vision, to allow in-

the right above is an example of actual use of the Color Palette. At theformation to be accurately conveyed to as many individuals as possible.

“Color Session 2008” held in April 2008, these were exhibited for ref-(Quoted from the Website of NPO Corporation, Color Universal Design

erence and a significant amount of feedback was received.

Organization)

We will continue examinations and aim to provide tools which can be

Most of those who have a different sense of color are so-called people

used as recommended colors in considering coloration which is easy towith color weakness. As examples of colorations which are difficult tounderstand for people with color weakness and at the same time does

convey information to people with color weakness are railway maps andnot give a sense of discomfort toatlases, using many colors, and direction boards using red and green.

ordinary people.

Light brown

OrangeLight green

Green

Yellow Yellow green

Dark green Brown

Dark red Dark brown

Red

Light gray Pale sky
Blue

VioletGray

Pale green

Sky blue

Pink

How people with an ordinary sense of color see

Light brown

OrangeLight green

Green

Yellow Yellow green

Dark green Brown

Dark red Dark brown

Red

Light gray Pale sky
Blue

VioletGray

Pale green

Sky blue

Pink

How people with color weakness see

Information and Technology Team,DIC Color Design, Inc.

Tomomi Takeshita* The above example is only an illustration of how people see colors and it does not fully represent how people with color weakness see colors.

18

CSR of The DIC Group“Basics of CSR” of the DIC Group are to “carry out social responsibility through business activities andcontribute to the development of society.” That is, we position CSR of the DIC Group to perform corporate
activities, fully paying attention to the environment (ecology) and carry out “social responsibility” throughbusiness activities, contributing to the environment and society under The DIC WAY.

Entire Group initiated CSR Activities
Expectations and requests from markets and society surrounding

stand the demands from society and provide stakeholders with

the DIC Group are ever-changing.

the values expected of the DIC Group.

As represented by the “problems related to global warming,”

DIC officially started CSR activities by establishing a department

consciousness of global environmental conservation has continued

exclusively committed to the promotion of CSR under the control

to increase and such social problems have emerged as the sharpof the CSR Committee, which was organized in April 2007.

lowering of birthrates, the aging of society and the depletion of

DIC and the domestic DIC Group companies have so far launchednatural resources along with structural changes in society.

efforts for CSR. Overseas Group companies will also work toward

We believe it is the mission of the DIC Group to precisely under-

CSR from now on.

Placement of DIC CSR Activities

The DIC WAY

For the purpose ofrealizing The DIC WAY

Management
Vision

The DIC SPIRITEnterprise,
Integrity
Diligence

Responding to the
expectations andrequirements of society
through businessactivities

Corporate
ValuesThe DIC Group
CSR
Communications(Information Disclosure)
Development ofa Sense of Credibility

Principles ofConduct

Stakeholders of
The DIC Group
Customers
Business partners
Shareholders/Investors
Communities/Society
Government/Public
Administration/International
Organizations
Employees of The DIC Group“Perspectives” of CSR of The DIC Group・ Triple bottom lines (balance among economy, environment and sociality)

Ke y w o rd s a re“Sustainable Development”
an d “In n o v a t io n ”

19・ Responsible Care・ DIC adopted OECD Guidelines for Multinational Enterprises and the UN
Global Compact as its benchmarks.

CSR REPORT 2008

In order to promote specific approaches, the DIC Group established “12 Themes of CSR.”(Major activities in 2007 are reported in “Toward Implementation of CSR of the DIC Group” on p.22 et seq.)

1. Environment, Safety and Quality

7. Human Resources Management

We work toward “reduction of environmentalloads,” “thorough labor safety” and “highly reliable products.”

We work toward making workplaces easy towork in and realization of diversity.

2. Compliance

We work toward coexistence with local communities and society as “model corporate citizens.”

8. Coexistence with Society and Social Contribution

We work toward compliance through permeationof our “New Code of Business Conduct” (The DIC
WAY Code of Business Conduct)

9. Creation of New Technologies and Values
We work toward value creation from the perspectives of environmental chemistry and sustainablechemistry.

3. Information Security
We work toward formulation of an information
security system.

10. Business Model for Customer Satisfaction

4. BCP (Business Continuity Plan)
We work toward establishment of BCP.

We work toward value creation, aiming at continued growth together with customers.

5. Reliability of Financial Reports

11. Sustainable Use of Biological Resources

We work toward improvement of an internal
control system and appropriate operation.

We work toward harmony with the environment
through reviewing the potential sustainable useof biological resources.

6. Supply Chain Management

12. Information Disclosures and Enlightenment of CSR

We work toward implementation of CSR throughthe supply chain.

We work toward continual information disclosure andenlightenment of CSR activities of the DIC Group.

“Stakeholders” supporting the DIC Group
Customers/Markets
Customers

Consumers

Shareholders/Investors

Suppliers

Rating/evaluationorganization
Investors

Partner companies

Shareholders

Consignees

The DIC GroupInternational Organizations (UN)
Local autonomous bodies
Government/Public Administration
International Organizations

Financial
institutions

Cooperating companies(logistics and waste
disposal companies)

Students
Employees
Educational institutions

NPO/NGO
Local communities(location of businessestablishments)

Business partners

Neighbors International Society

Research
Institutes

Employees/
Labor markets(places where ourbusiness is developed

Communities/Society

20Organizations and Promotion System of The DIC Group(1) Corporate GovernanceIn line with its management vision, “Color & Comfort by Chemistry”

decision making, execution and oversight by refining its internal control—which emphasizes leveraging its core businesses to fulfill our responsi-

systems.

bility as corporate citizen, as well as to bolster the trust of stakeholders

The Company appointed two outside lawyers as outside auditors andand achieve continuous growth in shareholder value—DIC approaches

for the purpose of reinforcing corporate governance, and appointed twoenhancing corporate governance as an key management priority.

outside directors in June 2008 to prepare a system which fully functions

To ensure transparent, sound management, DIC is striving to reinforce

to monitor management.

Annual Meetingof Stockholders

DIC’s Corporate
Governance
Organization

Board of Directors
Audit
Representative
director
Executive Committee
Department

CSR Committee

Internal Auditing
CSR Department

Board ofAuditors

Independent audit

Independent
auditors

Business Operations, administrative Dept., Sales Branches, factoriesGroup
companies

internal
audit(2) CSR Promotion System of The DIC GroupThe DIC Group has a system in which each administrative department is responsible for carrying out CSR according to each of the 12 themes under
the CSR Committee directly reporting to the President in order to promote specific approaches to CSR with all companies as one united body.

・Advisory Organ of CSR management of the Company
・Establishment of targets and policy for activities of all companies → put to the Board of Directors
・Evaluation of CSR activities of the Company

President

CSR Committee

Department responsiblefor implementation(each administrative department)

CSR Department

・Coaination of promotion of CSR・Comprehension of progress

Board of Directors

Graphics Arts
Materials
Business Operation

Industrial
Materials
Business Operation

High Performance andApplied Products
Business Operation

Electronics andInformation Materials
Business Operation

Color &
Comfort Div.

Business Operation Presidents
Division General Managers, Sales Branches and Factory Managers, Subsidiary Presidents
1. Environment/Safety/Quality
2. Compliance
3. Information Security
4. BCP (Business Continuity Plan)
5. Reliability of Financial Reports
6. Supply Chain Management
7. Human Resources Management
8. Coexistence with Society and Social Contributions
9. Creation of New Technologies and Values
10. Business Model for Customer Satisfaction
11. Sustainable Use of Biological Resources
12. Information Disclosure and Enlightenment of CSR[Supplementary Note 1] Color segment: indicating efforts mainly based on [ ● Economic perspective], [ ● Environmental perspective], and [ ● Social perspective].
[Supplementary Note 2] [Information Disclosure and Enlightenment of CSR] in the table has two perspectives of [Economic perspective] and [Social perspective].

21

Toward Implementation of CSR of The DIC Group

Report on “Compliance” ................................................. 23
Report on “BCP (Business Continuity Plan)” ................. 24“Information Security”
Report on “Creation of...................................... 25
New Technologies and Values”
Report on “Environment and Safety” ............................ 27
Report on “Quality Policy and Quality Activities” ........... 39
Report on “Supply Chain Management” ....................... 40
Report on “Human Resources Management” ............... 41
Report on“Coexistence with Society and Social Contribution” ............. 45
Report on“Information Disclosure and Enlightenment” ................ 47

22

Report on “Compliance”
The DIC Group is working toward the establishment and improvement of compliance consciousness of employees and continues to promote education and enlightenment actively through explanation meetings and introduction of e-learning.

(

From 2007, explanation meetings of“ The DIC WAY Code of Business Conduct) (hereinafter referred to as the“ Code”) have been held in Japan andoverseas. For details, refer to p. 14.

)

Major Efforts in 2007
(1) Efforts at Securing Fair Trade(3) Efforts at Responding to Statutory Regulations

DIC established the “Basic Policy for Compliance with the Anti-Monop-

The DIC Group responds to statutory regulations, including chemical substanceoly Law” and Affiliates in Japan and abroad have also adopted resolutions

regulations, countermeasures for polluted soils and safe trading regulations, etc.

on a similar basic policy to work toward securing fair trade throughout the

DIC established“ Internal Information Management Regulations” to manage

entire DIC Group. In the general statement of the Code, it is provided, “ifinternal information so that the DIC Group employees shall not commit insider

earning profits and the Code are contradictory, absolutely select to fol-trading violations, which have been frequently reported in the media recently

low the Code” and in specific statements of the Code, “Code of Market

and for the purchase and sale of listed shares of DIC and the DIC Group,

Competition and International Transactions” is specified, which prohibits

employees are instructed to obtain the prior approval of the administrative

involvement and participation of DIC employees in anti-competitive ac-

department.

tivities.

DIC also works toward prevention of violations, including providing seminars

DIC will work further toward securing fair trade of the DIC Group based

for the prevention of insider trading violations in DIC by inviting lecturers fromon the amendment trends of the Anti-Monopoly Law of Japan, enact-

the Tokyo Stock Exchange.

ment of the Anti-Monopoly Law in China and cases where large penalties
were imposed on Japanese corporations in Europe.

(4) Response to Inappropriate Marking of Printing Ink

For efforts at proper transactions with subcontractors under the Law

In February 2008, after an internal investigation of printing inks

Against Delay in Payment of Subcontract Proceeds, Etc., to Subcontractors

manufactured by DIC, it was found that some printing inks did notof Japan, we have proactively taken countermeasures such as assigning asatisfy the standards of“ Soy Seal” certified by the American Soybean

person in charge of subcontractor management. In addition, DIC has car-

Association and“ Eco Mark” certified by the Japan Environmentried out an explanation meeting for the person in charge of subcontrac-

Association. Shipment of these products was suspended and their marks

tor management to prevent cases of violations. We will further reinforce

were changed to appropriate ones as well as offering an explanation ofthorough self-checks and checking of the administration department andthe situations and an apology to customers.

follow-ups.

As a result of the investigation, the causes were determined that theoperation flow in which compliance with the standards of“ Eco Mark”(2) Efforts at Dealing with Anti-Social Groups

and“ Soy Seal” was invisible in the manufacturing and sales processes

It is unambiguously stipulated that a “decisive stance shall be taken

and that compliance with the standards of the“ Eco Mark” and the“ Soytoward anti-social groups” and prohibition of money laundering is also

Seal” was not incorporated into the management system (quality andstipulated. At the Board of Directors’ meeting held in March 2008, a

environment) of the manufacturing plants.

resolution was adopted that“ parting ways with anti-social groups” wasTherefore, we will place fur ther emphasis on improving theto be added to the basic policy for internal control of DIC, which wasconsciousness of individuals by providing basic education and also on theannounced to the stock exchanges. In order to secure its effectiveness,mechanisms for continuous prevention. We decided to strengthen the

DIC will prepare a“ Manual of Dealing with Anti-Social Groups,” which

quality assurance system, including reinforcement of the check system atwill be distributed to the DIC Group and explanation meetings will be

the stages of design, manufacture and inspection and incorporation ofheld.

social covenants into the management system (quality and environment).
We will make every effort to recover the credibility of DIC products.

23

CSR REPORT 2008

Report on “BCP (Business Continuity Plan)”
The DIC Group is promoting approaches to BCP (Business Continuity Plan) for the purpose of protection ofhuman life and early recovery and continuity (to avoid impact to the outside as practicable as possible) of
business in case of a large scale natural disaster, etc.

Major Approaches in 2007

Plans after 2008

The first stage of BCP is to secure safety of each facility,

Assuming that the Company has been forced to suspend

including production facilities and to confirm the safety of

production due to disasters, four Business Operations, Graphic

employees. A manual has been prepared to secure safety in case

Arts Materials Business Operation, Industrial Materials Businessof disasters at each business establishment of the DIC Group.

Operation, High Performance and Applied Products BusinessA safety confirmation system, using mobile phone mail, wasOperation and Electronics and Information Materials Businessintroduced in 2007 to confirm the safety of employees.

Operation and Color & Comfort Div. will consider an alternative

Presuming that it would become difficult for employees to return

production and continuity plan in line with its respective

home at the time of a disaster, including earthquakes while on

businesses, taking into account the responsibility for supplying

duty, disaster control goods (such as simple foods and drinking

major products.

water for three days) have been kept at each office since 2007.

Report on “Information Security”
With the rapid increase of digital data and spread of communication via internet, the risk on leakage of confidential information is rising. Whileleakage incidents on personal information frequently occurs in the world, to avoid becoming a victim nor an assailant, DIC Group is working
toward reinforcing its information security by identifying the necessity for information management (management of internal information, personal information, information consigned by other companies, equipment) and compliance obligations through the establishment of the “Codeon information security, intellectual properties rights and properties owned by the company” defined in “The DIC WAY code of conduct.”

Major Approaches until 2007

Plans after 2008

The“ Information Security Policy” was established in 2006

Drafted guidelines will be examined for applicability to the entire DIC

to specif y the improvement of the Information Securit yGroup after 2008, and plan to complete the formulation of the Information

Management System and the obligation of compliance with laws

Security Management System.

and regulations and the internal regulations. Based on this Policy,

To improving the information security consciousness of“ to protect secrets

in 2007, an Information Security Sub-Committee was organizedthat are needed to be protected” by each employee, education on specificunder the CSR Committee, which investigated the actual

information security will be conducted using Q&A and other materials on

situation of information management in DIC, and drafted theinformation security management. Education will start from DIC headguidelines for the information management system, information

quarter, and then followed by domestic affiliates.

management rules and regulations, and access management,

On the other hand, since 2004, we have implemented the prevention ofwhich DIC should have.

unauthorized access to PC, automatic update of computer security patches,
etc on our computer systems to become less dependent on person.

24Report on “Creation of New Technologies and Values”
Under the principle of “Sustainable Growth and Development,” the DIC Group has been addressing the development of technologies and products congruous with the global environment. This year, DIC, which entered its 100th year, set out an objective of “formulating a new businessbased on reinforcement of its core business” in order to leap forward as a company providing creative value in the global market in the next century. As measures for realizing this objective, the DIC Group will build up its research and development systems, consisting of business-specificR&D departments and corporate R&D departments, which will promote research and development activities in mutual collaboration.

Results until 2007
The results of major research and development by Business Operation and the progress were as follows.

Graphic Arts Materials Business Operation
For offset inks, we developed “DAICURE® RTX” high adhesive UV inks, which expanded the line-ups of UV inks.
For pigments, we released R-209 (dichloroquinacridone), which has transparency with high color saturation.
“EBStream™,” energy ray curable ink for paperware, based on our unique technologies, proved excellent in
performance in printing tests with real machines overseas. In the energy ray curable ink jet market, which has
undergone significant growth, we started sales of “SpectraRay™,” pigment dispersants. For high-performance
pigments, we added to our product line “SunPrizma™,” with pearly brilliance for cosmetics for makeup. Further,
we put sliver conductive screen inks on the market as ink for electronics use.

Industrial Materials Business Operation
For synthetic resins, DIC is positioning itself for expansion of the UV resin business and also developing high added value products
and environment-friendly products by composite technologies. For coating resins, DIC is focusing on development of new fields,
including coatings for optical films such as flat panel displays. For epoxy resins, a multifunctional polymer is being developed forsemiconductor sealants, which has high heat resistance, a new flame resistance, humidity resistance and a dielectric property, etc.,
and has started to develop its market. For polymer additives, firefighting foam concentrate for large water canon systems has beendeveloped and the first national type approval was obtained for firefighting foam in Japan as a 1% dilution type.

High Performance and Applied Products Business Operatio
For multi-layered films, DIC is focusing on self-adhesive protection films, which are used in the manufacturing process andtransportation of liquid crystal displays. For industrial adhesive tapes, with evaluation as the hardest surface rigidity in theindustry, adoption of adhesive films for splash prevention has been increasing for glass panels of thin model mobile phones.
For house interior building materials, we succeeded in weight reduction of storage components with next-generation materials
which are composites of a wood base and recycled paper core and we are promoting development for commercialization.

Electronics and Information Materials Business Operation
For imaging and reprographic materials, DIC places emphasis on protective coatings and adhesives forblue-ray disks. Mass production of TFT liquid crystals has progressed steadily for liquid crystal TVs. For engineering plastics, DIC has developed halogen-free PPS for connector materials, which are used in computersand sales of which have already started. For hollow fiber developed products, we have launched full-scale
marketing of degassing modules, which remove air bubbles in inks of ink jet printers for industrial use.

25

CSR REPORT 2008

R&D Organizations and Objectives in 2008
R&D departments of the DIC Group consist of business-specific R&D departments,

For development of new products, DIC will promote reduction in the use of hazardous

directly connected to business (Technical Departments, The DIC Group Technicalsubstances, development of less hazardous products, recyclable products, production

Departments) and the Corporate R&D Department which emphasizes fortification of basic

processes with higher safety and less waste, considering energy savings as well as

technologies and development of next-generation technologies and products (Corporate

continued implementation of environmental assessments. DIC will comprehend the trend

R&D Department, DIC Berlin GmbH R&D Laboratory and Qingdao DIC Finechemicals Co.,of statutory regulations and environmental measures of every country around the worldLtd.). Each research department deployed in Japan and overseas organically collaborates

and carry out product designs conforming to regulations of chemical substances in thewith each other and in particular, for the research themes of the Corporate R&D

pertinent country.

Department, the R&D Steering Committee, comprised of the Chief Technology Officer,

The DIC Group has introduced an environment-friendly products internal certification

the general manager of the technical administrative departments, the heads of DIC’s

system since 2003 and in 2007, net sales of environment-friendly products reached 39%

R&D facilities, and the general manager of the Technology & Production Managementof the total sales. As requirements and standards for environment-friendly products have

Department, etc., determines the value and direction from a group-wide perspective.

been increasing recently, DIC will review the certification standards in terms of market

For the next-generation technologies field, we will promote investigative and basic

concepts and LCA (lifecycle assessment) in 2008 and DIC will further vitalize development

research, setting“ electronics and information materials” and“ environmental harmony”

of products useful to society and of processes with less energy consumption andas the main themes and utilizing industry-government-academia collaborations.

environmental impact.

Improvement
research
Technical service
New productdevelopment

Sun ChemicalGroup

The DIC Groupin Japan

Business-specific productand technology
development,
performance improvement
and technical services,
R&D, basic research

Performance
improvement andtechnical services

Business Operation Technical
Administrative Departments
Unifying R&D directions and maximizing synergies
among business operation technical departments

Technical Departments
Business-specific product and technology development,
performance improvement and technical services

R&D Steering
Committee

Corporate R&D Department
Qingdao DIC Finechemicals Co., Ltd.
Currently striving to improve technological capabilities
with the aim of establishing an R&D center in the PRC

Objective basic
research
Pioneering
technology
development

DIC Berlin GmbH R&D Laboratory
Investigative and basic research aimed at realizing
new chemical products and composites that
capitalize on the ideas of researchers in Europe

DIC R&D Department
Fortification of basic
technologies
Development of nextgeneration technologies andproducts

Technology & Production
Management Department
Support for efforts to enhance theefficiency of overall R&D activities
Support for efforts toenhance cross-divisional
functions and efficiency
Support for efficientadministration
Mutual collaboration

Investigativeand basic
research

Universities (Japan and Overseas)

Kawamura Institute of Chemical Research

National Projects

Nanohybrid materials,
green chemistry, others

High-performance nanocomposites,
nanohybrid materials,
nanointerface-controlled materials

Ultraflexible displays, bio-nanofibers,
applications for sugar chain functions,medical materials, others

26

Report on “Environment and Safety”
Commitment of Implementation
DIC hereby declares its commitment to preserving the environment and guarding the safety and health ofpeople, in accordance with its Principle and Policy for the Environment, Safety and Health, and pledges toimplement the precepts of Responsible Care in its everyday operations.

Principle and Policy for the Environment, Safety and HealthPrinciple

As a responsible corporate citizen, DIC Corporations (DIC), recognizes that care for the environment, safety andhealth (ESH) is fundamental to the management of the Company. DIC is committed to the concept of sustainable
development and contributes to society by creating environmentally sound products and technology.

Policy1.

We establish ESH-related objectives and targets and pursue continual progress.

2.

We comply with laws, regulations and agreements relevant to ESH.

3.

We consider the ESH implications of each of our products throughout their life cycles in accordance with the ideals of Responsible Care.

4.

We instill in our employees a thorough understanding of this fundamental Principle and Policy.

5.

We organize our operations so as to promote the safeguarding of the environment, safety and health andconduct audits to monitor progress throughout the Company.

6.

We ensure that operations are conducted safely and materials are handled properly. We try to prevent
environmental pollution and avoid affecting the environment negatively by recycling waste, conserving energy
and other resources and using materials that are environmentally friendly.

7.

We place the utmost importance on ESH-related considerations at all stages of the new product planning andproduction process.

8.

We promote safety by providing customers with detailed instructions on the proper use and handling of all products.

9.

In our overseas activities, we conduct environmental impact assessments and strictly observe local ESH regulations. In theabsence of such regulations, we work with local officials and our business partners to develop environmental safeguards. We
also follow this procedure when dealing with toxic materials, applying the same stringent standards for their handling as
required in Japan. In addition, we promote the transfer of technology and know-how related to environmental protection.

10. We provide the public and appropriate authorities with ample information about our products and business activities sothat they may have an accurate understanding of our efforts to promote health, safety and environmental protection.

The above Principle and Policy shall be available to all employees and to the general public.
It is our goal that this Principle and Policy be followed at all DIC Group companies.
Established April 1, 1992
Revised February 1, 1996
Revised-2 April 1, 200827

September 2008
Representative Director, President & CEO

Koji OeCSR REPORT 2008

DIC’s Responsible Care (RC) Organization
DIC conducts Responsible Care activities as part of CSR program.
CSR Committee takes charge of RC activities, being promoted by both the implementation and the audit organization.

< Audit Organization >< Implementation Organization >DIC has established Environment and Safety committees and assigned
Environmental, Safety and Quality personnel to all DIC plants, R&D

DIC’s RC Dept. audits the Responsible Care activities of
DIC plants, branches and offices.

facilities and offices, thereby ensuring its Responsible Care policies are

The division presidents, plant managers and general

implemented in production, technology and sales activities. DIC has alsobranch managers also periodically conduct internal audits

assigned a Safety and Quality Management Supervisor to each salesof the activities.

office. All of DIC's principal plants have obtained ISO 14001 certification, the International Organization for Standardization’s (ISO’s) global
benchmark for environmental management systems, allowing them tomeasure Responsible Care efforts against internationally accepted criteria.

Implementation Organization

Board of Directors
President
Corporate Social Responsibility
Committee

Environment and
Safety Conference

Business operationpresidents
Division generalmanagers

Sales offices(Divisions, branches)
Safety and quality
management supervisors
Persons in charge ofcompliance audits
Implementation organization(Departments, sections)Internal branchandsales office audits

What The DIC Group Strives for
In activities of the DIC Group for management of the environment safety,
health and control of chemical substances, DIC checks their implementation based on the following “Responsible Care Codes”.
(1) Management System (all codes are applied commonly)(2) Environmental Protection (continuous reduction of emission volume ofchemical substances)(3) Process Safety and Disaster Prevention (prevention of accidents of fire, explosion, outflow of chemical substances)(4) Occupational Safety and Health (protecting the safety and health of workers)(5) Chemicals and Product Safety (risk management of chemical products)(6) Distribution Safety (reduction of risks of chemicals in distribution)(7) Interaction/Communication with the Public (communications with local
communities concerning environment, safety and health)

Responsible Care Dept.
Production/R&D(Plants, R&D centers)
Environment,safety
andquality departments
Plants, R&D centers,
environment and safety committees
Implementation organization(Branches,departments, sections)

Implementation/Support

Subsidiaries

Quality Conference

Audits by top executives

Division audits

Plants, environmentand safety audits

Internal branch andsales office audits

Internal Audit and Support Organizations

ColumnWhat is Responsible Care?
Responsible Care refers to initiatives carried out with the aim of protecting the environment, safety and health and to implementing and continually revising measures to accomplish this aim throughout the full life cycle of chemical products, from development andproduction to distribution and use through to final consumption and disposal.
Chemical substances - necessary and important to modern daily life. However, sometimes
these substances can turn dangerous, becoming hazardous to human health and safety
and the environment when handled improperly.
The task of preserving the environment and ensuring the health and safety of humans
has increased in step with the rise of global environmental problems and the rapid industrialization of developing countries. Adding to this situation the potential hazards linked toadvanced technology has made it difficult to ensure the ecological soundness and safety ofchemical operations and products simply by imposing laws and regulations. Thus, it is increasingly more important for companies that deal with chemical substances to undertakevoluntary measures to ensure environmental preservation and human safety and health.
Reflecting this trend, the world chemical industry started an initiative that promotes a
voluntary management system aimed at preserving the environment against and ensuring
the safety from chemical substances throughout the product’s life cycle, from development
through disposal. This initiative has been named “Responsible Care” (RC).

28

Production Input

Output Flow for Fiscal 2007
P34

Energy Consumption
DIC (Non-consolidated) Fiscal 2006: 116,360 ㎘

116,994 ㎘

DIC (Non-consolidated)from fiscal 2006

UP

DIC Group (Domestic) Fiscal 2006: 156,946 ㎘

DIC Group (Domestic)

157,925 ㎘

from fiscal 2006

Raw Materials

1,048

kilotons

UP

INPUT

+0.5%
+0.6%
DIC

P52

Total Water Consumption
DIC (Non-consolidated) Fiscal 2006: 14,577,000 m3

15,736,000 m

3

DIC Group (Domestic) Fiscal 2006: 16,030,000 m3

17,214,000 m

329

DIC (Non-consolidated)from fiscal 2006

UP

DIC Group (Domestic)from fiscal 2006

UP

+8.0%
+7.4%

CSR REPORT 2008

・ Data for DIC (Non-consolidated) comprises data for DIC plants and R&D facilities (including domestic subsidiaries, affiliatedcompanies and production facilities of affiliated companies that are located within DIC plants) listed on P.2.
・ Data for the DIC Group (domestic) is for DIC (non-consolidated) and above domestic DIC Group companies.

1,499 tons
P34

CO2 Emissions
DIC (Non-consolidated) Fiscal 2006: 244,000 tons

239 kilotons

Emissions of PRTR Chemicals
Released into the Atmosphere(includes emissions of certain chemicals
for which monitoring is voluntary)

P31

66 tons

P32

NOx Emissions

SOx Emissions

DIC (Non-consolidated)from fiscal 2006

DOWN

DIC Group (Domestic) Fiscal 2006: 324,000 tons

DIC Group (Domestic)

315 kilotons

from fiscal 2006

DOWN

206 tons

P32

-2.0%
-2.8%
Products

OUTPUT

1,018

P52

P33

P33

Industrial Waste Disposed of as Landfill
DIC (Non-consolidated)

Fiscal 2006: 312 tons

132 tons
DIC Group (Domestic) Fiscal 2006: 809 tons

541 tons

603 tons

14,014,000 m3

COD Emissions
into Water

Total Emissionsof Wastewater

DIC (Non-consolidated)from fiscal 2006

DOWN

DIC Group (Domestic)from fiscal 2006

DOWN

kilotons

-58%
-33%
30

Report on “Environment and Safety”

Reducing Emissions of Chemicals
Chemical companies deal with a considerably greater volume of chemical substances than companies in other industries and must therefore be extremely
vigilant in handling chemical substances. DIC targeted 480 chemicals in total that consist of 354 chemicals specified under Japan’s PRTR Law and 126 added by
the Japan Chemical Industry Association (JCIA) as voluntary targets. As DIC carries out various measures for reducing those emissions into atmosphere, bodies
of water and soil, DIC is steadily reducing those emissions. Dedicated to the ideals of environmental protection, complete safety, and good health for all, andfollowing guidelines based on these ideals, the entire DIC Group works for the reduction of emissions of targeted substances into the environment.

Chemical substances targeted for reduction

Reduction of Volatile Organic Chemicals (VOC) Emissions

Among these 480 targeted substances, in fiscal 2007 DIC group used

The Revised Atmospheric Pollution Prevention Law enterd into force

129 (DIC: 122, domestic subsidiaries: 73).

on April 1, 2006, thus starting regulation of VOC emissions. The reduc-The graph below shows the changes in the amount of emissions start-tion target for VOC emissions in this law is a 30% reduction in total

ing from fiscal 1997. The table in p.32 describes the substances which

VOC emissions from fixed emission sources such as plants from thewere released into the environment in amounts of 10 tons or greater

fiscal 2000 level by fiscal 2010, by an optimal mix of legal regulations

in fiscal 2007.

and voluntary measures taken by industry.

DIC will continue to make every effort to prevent environmental con-

In response to this, DIC set up its own VOC emission reduction target,

tamination by chemical substances, and to keep chemical substances

as shown below. As a result of the efforts DIC has made, this target

from being released into the environment.

was reached in fiscal 2007. The DIC Group will continue to strive to
reduce VOC emissions still further.

Amount of emissions of the 480 targeted substances
561 tons
393 tons (Reduction from fiscal 2000: 30%)

Fiscal 2007 (Actual)

DIC Group companies (Domestic)(Total emissions into the atmosphere: 1,441 tons)
Emissions into bodies of water 58 tons 1,499 tons
Emissions into soil 0.03 tons

Reduction from fiscal 2007:
9% (148 tons)

373 tons (Reduction from fiscal 2000: 34%)

DIC Group (Domestic)
Reference year Fiscal 2000

1,924 tons (estimated)(2003 for affiliates) (Actual)

Changes in air emissions of VOC of 480 substances in PRTR

'00

'01

'02

'03

'04

'05

'06

'07 (Fiscal year)

Based on previous JCIA standards (non-consolidated) (284 chemicals)
Based on PRTR Law and current JCIA standards (non-consolidated) (480 chemicals)
Based on PRTR Law and current JCIA standards (domestic DIC Group companies) (480 chemicals)

500
0

'00

(reference year)

DIC(Non-consolidated)

373

'99

421

'98

442

'97

440

1,000

470

1,500

561

430

500

517

573

537

601

660

2,000

652

749

696
856

895

(tons)

1,000

0

1,441 tons (Reduction from fiscal reference year: 25%)

1,727

1,500

1,499

1,647

1,822

1,948

2,000

(domestic subsidiaries - Reduction from fiscal 2003: 30%)

Fiscal 2007 (Actual)(tons)
2,500

1,347 tons (Reduction from fiscal 2000: 30%)

Target year fiscal 2010 (Target)

Emissions of PRTR Chemical Substances

'03

'04

'05

'06

'07

Target

1,347

430 tons

Reference year
Fiscal 2000 (Actual)
Target year
Fiscal 2010 (Target)

393(Total emissions into the atmosphere: 373 tons)
Emissions into bodies of water 57 tons
Emissions into soil 0 tons

Reduction from fiscal 2007:
17% (87 tons)

1,441

DIC (Non-consolidated)

DIC (Non-consolidated) Emissions of VOCs

1,552

(Chemicals Specified Under PRTR Law + Chemicals from JCIA Voluntary Scheme (126))'10 (Fiscal year)(targer year)

DIC Group (Domestic)

Notes:
1. PRTR Law : The PRTR Law is the popular name for the Law Concerning the Reporting, etc. of the Release to the Environment of Specific Chemical Substances and Promoting Improvements in Their Management. The law, which went into effectin fiscal 1999, required companies meeting certain standards to assess the release and transfer of PRTR chemicals from fiscal 2001 and report results to the government from fiscal 2002. DIC has assessed the release of PRTR chemicals andaggregated and disseminated data in accordance with the law retroactive to 1999.
2. PRTR : The PRTR is a scheme for assessing, aggregating and disseminating data on the sources of hazardous chemicals, amounts released to the environment and amounts transferred off-site from industrial establishments via waste products.

31

CSR REPORT 2008

PRTR Chemicals with Emissions in Excess of 10 Tons in Fiscal 2007
(Tons)DIC Group(domestic)

Non-consolidated

ChemicalVolume manufactured
Volume manufactured
Volume emitted
Volume emitted
/used
/used

Ethyl acetate

15,713.5

121.0

16,635.0

570.0

Methyl ethyl ketone

10,280.1

38.2

10,843.4

366.2

Toluene13,482.3

59.3

14,366.6

298.5

Xylene9,116.3

43.4

9,777.4

47.6

362.8

36.0

762.8

36.0

148,282.3

14.8

159,460.3

26.1

Propyl alcohol

4,386.1

22.3

4,493.7

23.9

Acetone

1,198.4

8.1

1,284.0

16.9

Butyl alcohol

13,696.4

15.7

13,696.4

15.7

Methyl alcohol

34,326.0

7.5

35,230.2

15.1

N-Methylpyrrolidone
Styrene1,3-butadieneCompliance with Standards Governing the Emission of Halogenated Dioxins
Emission volumes from plants’ incinerators are monitored on a continuous basis. As of the end of fiscal 2007, DIC had two incineratorsand domestic DIC subsidiaries had five incinerators. All facilities fall intoa category of “specified facilities” under Japan’s Law Concerning Special Measures Against Dioxins, but all comply with standards governing
halogenated dioxins levels in exhaust gas and wastewater.
Halogenated Dioxins Emission Control Standards Applicable to Domestic DIC Group Incinerators
Incinerator
capacity

Exhaust Gas

Wastewater

Emissions recordedStandard
Standardin fiscal 2007
(ng-TEQ/Nm3) (ng-TEQ/Nm3) (pg-TEQ/L)

Emissions recorded
in fiscal 2007

(pg-TEQ/L)

Approx.3t/h

5

4.1

10

0.40

Hokuriku Plant Approx.0.3t/h

5

0.01

10

0.00

DIC Interior Co., Ltd. Approx.0.1t/h

10

1.6

—

—

KITANIHON DIC CO.,Approx.0.2t/h
LTD.(Hokkaido Plant)

10

0.00

—

—

10

0.00

—

—

Chiba Plant

1,783.5

13.8

1,783.5

13.8

n- Hexane

234.8

10.7

235.6

11.6

Butyl acetate

3,385.5

4.1

3,944.6

10.3

KITANIHON DIC CO.,Approx.0.2t/h
LTD.(Tohoku Plant)

201,269.6

34.9

240,482.0

47.0

Seiko PMC Corp.
Approx.0.2t/h(Harima Plant)10< 0.15——

1,498.6

DIC Comfort
Approx.0.2t/h
Materials, Inc.

10

0.28

—

—

othersTotal

457,517.4

429.9

512,995.5

Report on “Environment and Safety”

Environmental Impact Reduction (Emissions into the Atmosphere, Water and Soil)
Emissions of SOx and NOx
The graphs in the bottom show sulfur oxides (SOx) emissions, nitrogensystems.

oxides (NOx) emissions by DIC from fiscal 1990 through fiscal 2007.

NOx had been increasing since fiscal 2004 along with the increase of fuelSOx have also remained on an uptrend since fiscal 2004, owing primarily

consumption by the Company. However, in fiscal 2007, it has decreased

to a change in the fuel mix resulting from the installation of cogenerationfrom fiscal 2006 as a result of fuel conversion from heavy oil to LNG.

SOx Emission Volume

NOx Emission Volume

DIC(Non-consolidated)

35
61

44
69

48
66

'03

'04

'05

'06

'07

DIC Group (Domestic)

'04

'05

'06

185
206

254
275

37
52

'90

(reference year)

32
49
0

182
187

202
200

100

247
265

204

300

200

244
250

(tons)
400(tons)
300

100(fiscal year)

0'90(reference year)

DIC(Non-consolidated)

'03

'07

(fiscal year)

DIC Group (Domestic)32

Effluent Impact Substances (CODCr: Chemical Oxygen Demand)

Soil and Groundwater Analysis at Plant Sites

Increase in total CODCr Impact volume was due to the effect of an in-

DIC conducts soil analysis for plants to be closed and, when necessary,crease in discharged volume in connection with an increase in production

implements remedial measures. In fiscal 2007, neither was required at any

volume and a temporary increase due to effluent treatment of ground

domestic sites.

water necessiated during the construction period of the plant. The in-

When acquiring plants or sites overseas, DIC compares Japanese laws

crease in connection with construction work was only for fiscal 2007.

with those of the country in which the plant or site is located and con-

CODCr concentration of each Plant has been on a downtrend.

ducts soil analysis in line with the more stringent of the two. While the requirements vary under different laws, DIC will continue to weigh the stan-

Changes in the CODcr of effluents

dards of other countries against Japanese standards and apply the more

400

0

600
603

rigorous of the two for each type of analysis it conducts. When investing

448
451

418
422

441
442

600

473
474

800

745

(tons)

in overseas business, DIC conducts advance risk assessment for environment and safety. In fiscal 2007, DIC conducted soil analysis at a chemicals'90(standard year)'03

DIC(Non-consolidated)

'04

'05

'07 (fiscal year)'06

company in the PRC in which it plans to acquire an equity stake.

DIC Group (Domestic)

Report on “Environment and Safety”

Reduction of Industrial Waste
For industrial waste disposed of as landfill in fiscal 2007, DIC set a target of “reduction to less than 5%(370t) of fiscal 1999” and has been working for zero-emission since fiscal 2001. Although DIC did achieve
the stated target, DIC will continue activities for zero-emission by each business site and promote efforts
to expand as the DIC Group the scope of these activities to subsidiaries in Japan and overseas.

Industrial Waste

Municipal Waste

In fiscal 2007, DIC disposed of 132 tons of industrial waste as

DIC strives to lower emissions of waste and promote the separa-

landfill, a reduction of 58% from 2006, by such measures as re-tion of waste to facilitate recycling. In fiscal 2007, the volume ofcycling the residue after incineration of sludge etc. Further, themunicipal waste generated by DIC’s corporate headquarters andproportion of waste discharged from plants which was reused or

Osaka and Nagoya branches was 43.7% lower than in fiscal 2000,

recycled (recycling rate) was 73.4%.

while the recycling rate for paper and glass bottles and jars was

In fiscal 2007, industrial waste disposed of as landfill by domestic

71.1%. The graph below shows trends of municipal waste vol-DIC Group companies engaged in production amounted to 409

umes since fiscal 2000.

tons. As a result, industrial waste disposed of as landfill by theentire DIC Group in Japan totaled 541 tons.
Volume of Municipal Waste Waste Generated by Corporate
Headquarters and Osaka and Nagoya Branches

Volume of Industrial Waste Disposed of as Landfill

1,000

DIC(Non-consolidated)

33

'03

154

'02

132
541

'01

312
809

'00

DIC(Nonconsolidated)planed value

537
1,282

'99

(reference year)

21.0
17.9

15.7

16.4

600

1,560
2,229

3426
4,326

3,000

0

21.9

800

4,190

5,582

6,000

(kg/m2)25(tons)

7,981

7,552

(tons)
9,000

'05

'06

'07

'08 (fiscal year)'04

DIC Group (Domestic)

20

14.7

15.9

14.5

15

400

10

200

5

0

'00

'01

Total volume (left axis)

'02

'03

recycled (left axis)

'04

'05

'06

0
'07 (fiscal year)

Volume of waste per square meter of floor space (right axis)

CSR REPORT 2008

Report on “Environment and Safety”

Approaches to Global Warming Prevention
Global warming prevention is recognized as a most important task not only in Japan but throughout the world. DIC is acting in linewith the voluntary action plan targets* of Japan Chemical Industry Association (JCIA), expanding the scope of its activities overseas,and promoting new approaches to global warming prevention, centering on a reduction in energy consumption.
* Voluntary action plan targets of Japan Chemical Industry Association (JCIA): to reduce the average of energy consumption per unit production for the 5-year
period from fiscal 2008 to fiscal 2012 to less than 80% of fiscal 1990.

biomass-fired boilers. DIC will continue to work toward reduction of CO2

Energy Conservation

emissions volume carried with energy consumption volume, making a review

In fiscal 2007, DIC recorded energy consumption,calculated in volume ofof its manufacturing processes.

crude oil used, of 116,994 kl (sligthly increased from fiscal 2006).

Total emissions of CO2 of DIC in fiscal 2007 were 239 thousand tons, a

The index of energy consumption per unit of production was 93, up 1.0

decrease of 5 thousand tons from the previous fiscal year (emission index

percentage point, falling short of the Company’s stated goal of reducing ab-

decreased to 93 from 94 in the previous year). Total emissions of CO2 ofsolute energy consumption, calculated in volume of crude oil used, by at least

domestic subsidiaries with manufacturing operations in fiscal 2007 were 76

1.0% annually.

thousand tons, which resulted in total emissions of CO2 of the domestic DIC

In fiscal 2007, energy consumption by domestic DIC subsidiaries engaged

Group companies of 315 thousand tons.

in production, calculated in volume of crude oil used, amounted to 40,931
kl.Consequently, absolute energy consumption by the entire DIC Group in
Japan, calculated in volume of crude oil used, totaled 157,925 kl.

Energy related to Transportation
DIC is a specified shipper under the “Revised Energy Saving Law”, and ourEnergy Consumption (Calculated in Volume of Crude Oil Used)and Energy Consumption Index(Thousands of tons)

100

200

92

92

91

92

93

(Index)100

total transportation volume in fiscal 2007 was 239 million tkm, a decrease of
0.8% from the previous year.
DIC has actively developed a “modal shift,” which shifts transportation to

160

75

120

50

80

25

reduce CO2 emissions by thus reducing transportation energy. In fiscal 2007,00'07 (Fiscal year)

the modal shift accounted for 8.7% of total transportation, an increase of'90(Base year)

'03

'04

'05

'06

railway freight and marine transport away from motor carriage, striving to

1.4% from the previous year, which reduced CO2 emissions by 419t (equiva-

Energy consumption (non-consolidated) (left axis)
Energy consumption (domestic Group companies) (left axis)
Energy consumption index (non-consolidated) (1990=100) (right axis)

lent to 158.5kl of crude oil).
The green management certification acquisition ratio of carriers to which we

CO2 Emission Volume and Emission Index
DIC has been reducing CO2 emission volume in conjunction with an energy

consign transportation reached 25.7% in fiscal 2007, an increase of 7.7%
from the previous year. We recommend eco-driving to such carriers and provide seminars for environment and safety.

consumption reduction plan for its production activities, the main emission
source. In fiscal 2008, DIC started a full-scale operation of carbon-neutral

CO2 Emission Volume and Emission Index(Thousands of tons)

100

400

94

95

94

94

The effect of Cool Biz
DIC is actively participating in the national people’s movement to take mea-

93

(Index)
100

sures against global warming, and thus is engaging in energy consumption

300

75

reduction by setting its air conditioners at higher temperatures. At DIC Head-

200

50

quarters, the use of energy for air conditioning (motive and electric power)

100

25

expressed in terms of crude oil was up 4.0 kL (2.3%). This was due to a rise of00'07 (Fiscal year)

1.8℃ in outside temperature by DIC Headquarters during August compared'90(Base year)

DIC (non-consolidated) (left axis)

'03

'04

'05

'06

The DIC Group companies (Domestic) (left axis)

Carbon emission index (right axis)

to last year. DIC’s efforts in this area will be continuing in the future.

34

Report on “Environment and Safety”

Occupational Safety and Health Record
In order to eliminate work-related disasters during business activities, DIC continues such activities as audits of environmentand safety, holding disaster case study seminars and expanding deployment of near-miss information and disaster cases.
Occupational Accident Frequency Rate

Record in Fiscal 2007

(Frequency Rate)
7.00

In fiscal 2007 there was one accident resulting in lost work days ,1

6.00

in which an employee got his hand caught while replacing an air

5.00

duct filter and lost some skin (in fiscal 2006 there were 3 accidents.)
The occupational accident frequency rate2 was 0.13 (0.26 in fiscal

4.00
3.00
2.00

2006) and the occupational accident severity rate was 0.001 (0.001

1.00

in fiscal 2006.)

0.00

3

'70 '75 '80 '85 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 (Fiscal year)

DIC (non-consolidated)

The graphs on the right show DIC’s occupational accident frequency
and severity rates from fiscal 1970 through fiscal 2007, respectively.

(Severity Rate)
1.40

tional accidents resulting in lost work days in fiscal 2007 (4 in fiscal

1.20
1.00
0.80

while cleaning around a shaft of a disperser/stirrer which was rotat-

0.60

ing by inertia. In fiscal 2007, the DIC Group including domestic sub-0.40

sidiaries had an occupational accident frequency rate of 0.47, and an

0.20
0.00

occupational accident severity rate of 0.012.

Risk and Hazard Assessment and Education
In development for new products, DIC promotes efforts to reduce the volume of hazardous chemical substances used, realize

Manufacturing industry

Occupational Accident Severity Rate

Domestic subsidiaries engaged in production reported 4 occupa2006), including a case of bone fracture when an arm got caught

Chemical industry'70 '75 '80 '85 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 (Fiscal year)

DIC (non-consolidated)

Chemical industry

Manufacturing industry

Notes:
1. “Chemical Industry” and “Manufacturing Industry” include all companies in thechemical industry and manufacturing industry, respectively, as defined by the Ministryof Health, Labour and Welfare for the purposes of its Occupational Safety and Health
Statistics.
2. Figures for DIC are for the fiscal year (April 1–March 31). Figures for the chemicalindustry and the manufacturing industry are for the calendar year.

less hazardous products, facilitate recycling and develop safer pro-

Notes:

duction processes that generate less waste, and conducts environ-

1. Occupational Accidents with Lost Work Days: Occupational accidents are accidents
resulting in days away from work.

mental assessments. When formulating facility investment plans
and renovation, DIC adopts a process safety management (PSM)
program to identify and assess risk, for safer and less-environmental impact production systems.
For existing production equipments, DIC periodically adopts PSM
to identify and assess risk. Safety training for employees engaged
in R&D is based on the “Environment and Safety Guidelines” forthe R&D Department, an in-house publication that draws on DIC's
extensive experience and uses case studies. For employees in manufacturing positions, education focuses on the use of SDSs and“Principles of Safety Conduct”. Procedures and Attitudes for a Safe
Workplace, among others, to ensure the proper handling of chemical substances and the correct use of facilities and equipment.

35

2. Occupational Accident Frequency Rate
The occupational accident frequency rate is the number of injuries and deaths due
to occupational accidents per one million hours of labor. (Calculation: Number of
injuries and deaths ÷ Total work hours × 1,000,000).
An occupational accident frequency rate of 1.0, for example, corresponds to one
accident per year in a workplace with 500 employees.

3. Occupational Accident Severity Rate
The occupational accident severity rate is the number of work days lost per 1,000
hours of labor. (Calculation: Number of days lost ÷ Total work hours × 1,000). An
occupational accident severity rate of 0.1, for example, corresponds to 100 workdays lost per year in a workplace with 500 employees.

CSR REPORT 2008

“Safety Tree Rings”

Establishment of Overseas Environment and Safety System(1) C ollection of information about environment andDIC has established the “safety tree rings” as a way to recognize the achievements of its plants and R&D facilities, as well as certain affiliated companies, incontinuing free from occupational accidents for a year.
Each year, DIC celebrates plants and R&D facilities that achieve consecutive occupational accident-free years, that is, years
free from accidents resulting in lost worksafety activities of overseas group companies
In fiscal 2007, DIC started collection of information about the results ofenvironment and safety activities of overseas group companies. In fiscal
2008, DIC will analyze the data, while considering the differences in thestate of affairs, legal system and social environment of each country, toimprove environment and safety activities of the entire group.

days with a silver ring for their “safety
tree.” One tree comprises 20 rings at the
maximum. When a tree is completed,the process begins again as each silverring is replaced with a gold one for eachconsecutive accident-free year.
This photo is safety tree rings at Kyushu branch (formerly, Fukuoka Plant).
Record of “Safety Tree Rings” of Major Plants(2) E stablishment of Environment/Safety Activities
System in Overseas Group Companies (China)
DIC is establishing a system to achieve “Environmental Protection, Safety, andHealth” in its Group companies currently expanding operations in China. An internal audit of the entire environmental protection, safety, and health maintenancesystem was started at the end of fiscal 2006, and internal audits in 12 companies
were conducted by the end of fiscal 2007. Based on the results of these audits, fol-

Saitama Plant: five rings, Sakai Plant: six rings, Central Research

low-up audits were started at the end of fiscal 2007. Also, information on revisions

Laboratories: seven rings, Suita Plant: eight rings, Komaki

of laws and local ordinances, introduction of examples of safety promotion activi-

Plant: nine rings, Tokyo Plant: ten rings, Kashima Plant: tenties, and information on safety measures and educational methods are exchanged,

rings, DIC Kitanihon Polymer Co., Ltd. Hokkaido Plant (former

as wall as meetings with representatives of local organizations are held.

company name: Kitanihon DIC Co., Ltd. Hokkaido Plant): 14
rings, Hokuriku Plant: 20 rings (out of which 14 rings are gold),(3) Global Safety Meeting

Kyushu Branch: 20 rings (out of which 19 rings are gold)

DIC thinks it necessary to hold a meeting where personnel in charge of the environment and safety of the overseas group companies get together in order toAwards Received

develop environment and safety activities on a global scale and share information,and thus held a global safety

DIC was honored to receive several awards in fiscal 2007

meeting in May 2008. DIC willin recognition of its superb safety and health record.

further advance global environment and safety activities in

DIC Corporation, Tokyo Plant
F irst Prize (Safety and Health) from Minister of Health,
Labor and Welfare
DIC Corporation, Tokyo Plant Manager
Tokyo Fire Department, “Fire Chief Commendation”
DIC Kako Inc., Narita Plant (former company name: Shin DIC Kako Inc., Narita Plant)Chiba Association for Safety of Hazardous Materials,“Top Hazardous Substance Handling Office Commendation”
Nantong DIC Color Co., Ltd. (China)
Nantong Economic and Technology Development Zone Management
Committee, “Safety Production Excellent Company Commendation”
DIC Corporation, Kashima Plant
Mayor of Kamisu-shi, “Firefighting and Prevention Commendation”
DIC Corporation, Suita Plant
Mayor of Suita, “Firefighting and Prevention Commendation”

cooperation with Sun Chemical Group in Europe and theUnited States.

Global Safety Meeting

Distribution
DIC provides “yellow cards (tram cards)” to drivers of container trucks,
tank vehicles and other motor carriage may be expected, and also to drivers of ordinary delivery vehicles carrying mixed loads, to ensure a prompt
response in event of an emergency. DIC exclusively uses containers
and tank vehicles that comply with Japan’s Fire Defense Law standards,
United Nations standards, and other legal requirements.

36

Report on “Environment and Safety”

Stewardship of Chemical Substances in Products
Domestic and foreign legal regulations, customers, and each industry itself are demanding that companies handling chemical substances
provide a variety of information. DIC handles management of chemical substances in its products through preparation of Material Safety
Data Sheet (SDS) and information of a chemical substances contained in its products comprehensive management system (named CIRIUS).

DIC Group will use the system to respond to such requirements.

SDS
DIC prepares and distributes material safety data sheets (SDSs) that comply with Japan
Industrial Standards (JIS) for all chemical substances it sells in the Japanese market.

Complying with Overseas Laws and Regulations

To ensure its products are not a cause of environmental pollution, DIC also includes

The DIC Group investigated products exported to Europe, directly or indirectly,

information on safe handling and appropriate measures for disposal in its SDSs.

and narrowed down the candidate substances for preliminary registration in order

DIC has developed its original automated SDS preparation system which allows toto comply with REACH regulations in Europe, which was actually enforced as ofprepare uniform and reliable SDSs while referring to domestic regulations.

June 1, 2008. The DIC Group assigned a representative in charge of REACH in Eu-

Although the Revised Occupational Safety and Health Law enforced in December

rope, through which DIC obtains the latest information about guidance documents

2006 sets up transitional measures, these measures were removed at DIC on April 1,

and the operation trends of REACH to have it contribute to the strategies of the2008 and SDSs completely conforming to GHS* are provided. Product labels were also

divisions dealing with REACH as well as providing instructions to affiliates.

changed to completely conform to GHS.

The DIC Group has made new chemical substance registration with foreign coun-

DIC’s SDS distribution system offers domestic customers the option of downloading

tries, including the United States, China, Korea and the Philippines and manufac-

sheets by mail on the Internet. Customers requesting online distribution can view andtures and exports products in compliance with chemical substances regulations.

1

download DIC’s SDSs at any time from the DIC web site. DIC also produces cumulative,
itemized data on shipments to customers of PRTR chemicals.
For products exported from Japan for sale in overseas markets, DIC prepares SDSs

Education in Chemical Substance Regulations

required by regulation in receiving countries in local languages or English. DIC has in-

In Japan and overseas, DIC strives to enhance employee understanding of laws andtroduced software that incorporates EU Safety Data Sheet (SDS) requirements, thereby

regulations. In fiscal 2007, DIC continued its efforts in fiscal 2006 in carrying out a train-

enabling the preparation of SDSs that comply with EU guidelines —considered theing program on domestic laws and regulations for employees in R&D responsible for en-

global standard in multiple languages.

suring compliance. Further, DIC conducts hearings with R&D and sales divisions, includ-

DIC also provides “Green Procurement” information in response to requests for as-

ing division managers, regarding education in EU REACH regulations and its progress.

sistance from customers.

DIC also organized comprehensive training on the EU’s new REACH legislation for all
employees in R&D, sales, and administrative dept. Texts used in these programs are

CIRIUS

posted on the DIC intranet for employees to view and/or downloadwith the aim of further reinforcing employee awareness.

In order to respond to requests for provision of a variety of chemical substanceinformation quickly and accurately, DIC is promoting the formulation of the chemi-of raw materials to shipment of products. The system will automatically prepares

1. GHS: G lobally Harmonized System of Classification and Labeling of Chemicals
Recommendations of the United Nations Economic and Social Council forclassification of chemicals according to their type and level of dangerous
toxicity in accordance with globally uniform rules, and for the transmissionof information on already existing dangerous poisons by labeling that can
instantly be understood by persons handling the chemicals and by SDSs.

MSDSplus*2 and AIS*3 in addition to SDS automatic preparation function and SDS

2. MSDSplus: a document format for supplements to information transmitted through SDSs

cal substances information comprehensive management system (CIRIUS), which
uniformly manages all chemical substances information concerning procurement

distribution management function, originally developed by DIC. These are theforms of chemical substances information communication, standardized in Japanfor the purpose of dealing with REACH*4 regulations, and requests of customers
for submission of which, we think, will increase in the future. DIC and the domestic

37

NOTES

3. AIS: Data sheet of the chemical components of an article
4. REACH: “Registration, Evaluation Authorisation and Restriction of Chemicals”
REACH puts the onus on businesses to evaluate the safety of chemicals they
produce or use―a task that has traditionally been handled by public authorities. Under REACH, businesses bear full responsibility for evaluating thesafety of chemicals with no distinction made between “existing” and “new”
chemicals. REACH also prohibits the use of specified chemicals that poseunacceptable hazards to human health.

CSR REPORT 2008

Report on “Environment and Safety”

Environmental Costs/Safety and Health (ESH) Costs
DIC introduced the “Environmental Accounting System” in 1998 with the aim of enhancing the efficiency
and continual improvement of its environmental investments and activities.

ESH Costs
Prior to fiscal 1998, DIC disclosed environmental and safety andfor Establishment of an Environmental Accounting System (report-

health-related costs (expenses and investments) based on DIC’s

ed in 2000), published by Japanese Ministry of the Environment,

original standards. Since then, however, the Company has dis-

while it continues to calculate safety- and health- related costs

closed environmental costs prepared in line with the Preparation

using DIC’s original standards.

(1) Fiscal 2007 environment related costs
In fiscal 2007, capital investment by DIC was ¥1,633million, and that by domestic DIC Group companies was ¥1,689million (see p.53.) Further, costs incurred by
DIC were ¥10,390million, and those by domestic DIC Group companies were ¥10, 959million (breakdown of these costs are shown in the graphs below.)
Environment-relatedsocial activities

Environment-related
Measures tosocial activities
prevent
pollution and%protect/cycle
the environment

2%

Measures toprevent
pollution andprotect/cycle
the environment

2

32%

29%

Total
DIC Group(Domestic)

DIC(Non-Consolidated)(¥10,390million)

Environmental R&D

65%(¥10, 959million)

Other measures

4%

Environmental R&D

61%

Other measures

5%(2) Fiscal 2007 safety and health related costs
In fiscal 2007, capital investment by DIC was ¥415million, and that by domestic DIC Group companies was ¥482million (see p.54) Further, costs incurred by
DIC were ¥995million, and those by domestic DIC Group companies were ¥1, 117million (breakdown of these costs are shown in the graphs below.)

Safety and healthmanagement
activities
Safety and fire
prevention%
measures

Safety and fire
prevention
measures16%

Safety and healthmanagement
activities

32
DIC(Non-Consolidated)

19%(¥995million)

32%
Total
DIC Group(Domestic)( ¥1,117million)

Fees paid to
outside firms
for safety
data-related tests

32%

Safety-and healthrelated activities

20%

Fees paid to
outside firms
for safety
data-related tests

28%

Safety-and healthrelated activities

21%

38

Report on “Quality Policy and Quality Activities”
DIC Quality Policy

Contributing to the prosperity of customers and society by providing products that are always trusted

Customer satisfaction realization system of DIC

Part visible to customers

Flow of Customer First Policy of DIC
Requests from customers/market and society

SDS
Technical information

Indications
PackagesampleContract/delivery specifications
COA(Certificate of analysis)
SDS
Catalog
Products

Design review
Validation
Control of changes

Product evaluation
Trial production
Mass trial production

Production/→ products
qualityconfirmation

Information from customers

Requirements

Output from DIC
Products

Sales strategies

Quality assurance

Contents/composition
Container/mode of packing
Consideration of environment
Workability and convenience in handling
Disposal after use

Planning and framing
Design and Development

Marketing

Production

Hazard of raw materials
Conformity to laws and regulations
Productivity and capacity
Safety and stability of process
Cost/stable supply

DIC Website
Customer consultation information
Technical service
Quality validation

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

Business activities of DIC to deliver high quality products with safety and reliability

DIC Product Providing Process

Major Quality Activities and Review in Fiscal 2007

Planning and Framing
In product planning, manufacturing, sales, technology and administration(1) 13 manufacturing sites in Japan will promote continuous improve-

departments collaborate and determine the basic specification of prod-

ment to maintain the quality and environmental management sys-

ucts based on requirements from the market and customers.

tem and enhance its effectiveness, including responce and preven-

Development and Design Review

tion of complaints and claims, and environmental impact reduction

In development and design review, a quality target is determined based on thecustomer/market requirements and value creation is made, reflecting DIC particular(2) Sakai Plant applied for certification of JIS A5536 in connection withtechnologies and the accumulated data. Concurrently, it is confirmed that there is

the expiry of the transitional period to the new JIS Mark and it was

no problem with raw materials and products from a social perspective.

determined to have passed it and the Plant started contract proce-

Production and Quality Confirmation

dures.

In order to assure the quality of products, thorough process control and identification(3) Saitama Plant holds quality engineering instruction meetings every

control are made. For maintaining mutual benefit relationships with customers, DIC

month to realize concepts in product design, and is aiming to provide

will focus on reduction of use of resources, energy consumption and cost.

products with a stable performance under any use conditions.

Sales and Technical services(4) Ten Plants and two plants of subsidiaries renewed the certification

We will strive at improving product quality, listening to the voices of customers.

as green partners with SONY in the autumn of 2007. DIC positively

To have DIC products used with safe and reliable we provide information, data

responds not only to the requirements of a single customer but toand technical services through sales contact points and carry out activities to fur-the needs of markets and the supply chain.

ther improve customer satisfaction.

39

activities.

CSR REPORT 2008

Report on “Supply Chain Management”
The DIC Group recognizes as “business activities themselves are contributions to a sustainable society and global environment.” The
DIC Group provided for the DIC Group Basic Policy for Purchase based on the spirit of “The DIC WAY,” “to make every effort to create
new value contributing to sustainable development of customers, society and global environment through ceaseless innovation.”
DIC Group Basic Purchase Policy (Established in July 2008)

Purchase Activities of The DIC Group

1. We will conduct business in a fair and open manner with
our suppliers
The DIC Group will take a global perspective of its purchasing activities, and will stress fairness and transparency with all of its suppliers.
2. We will comply with all governmental laws and regulations, and will strive to build and maintain mutually beneficial relationships with our suppliers.
DIC Group Employees shall comply with governmental
laws and regulations in connection with all the businessareas for the DIC Group, and shall also comply with allcompany rules. DIC Group Employees shall seek both reasonable quality and price in commercial activities, and will
strive to build and maintain harmonious, mutually prosperous relationship with all suppliers worldwide.
3. We will stress conformity to the needs of the environment
and to the safety of citizens and employees.
The DIC Group, as a good corporate citizen, will assume
responsibility for the environment, for safety, for health,and for quality, and will be constantly vigilant to changes
in society, in order to conduct its purchasing operations infull consideration of the global environment.
4. We will continuously seek innovation and the creation ofvalue with our suppliers.
The DIC Group will strive for the creation of new value
and“ Sustainable Development,” with like minded suppliers, in order to fulfill the expectations of our stakeholders.

The DIC Group recognizes that it is the request from society forthe entire supply chain to perform social responsibility. In purchaseactivities, we ask vendors to understand the CSR of the DIC Groupand make every effort to be responsible not only for our products
but for the entire supply chain with mutual trust.

Approaches to CSR Procurement
The DIC Group is promoting approaches to CSR procurement, taking into consideration the environment, compliance and respectfor human rights, etc., with the aim of responding to the needsof customers and realizing a sustainable society with vendors.
The DIC Group will consider establishment of “CSR Procurement
Guidelines” (including Green Procurement Guidelines).

Supply Chain Management of The DIC GroupThe DIC Group is performing business in the supply chain of theentire product life cycle, including processes from product development to disposal.

Flow of businesses related to the entire lifecycle of products

Procurement of
raw materials

Technology, R&D

Materials and purchase

Sales

Inspection

Customers

Supplier

Overallcycle

Persons mainly
involved

Research anddevelopment

Manufacturing

Quality inspection

Manufacture
Consignee

Manufacture

Cooperating companies

Inspection

Communities and society

Sales and logistics

After-sales service

Disposal and recycle

Sales

Technical service

Disposer

Logistics

Sales

Manufacture

Customers

Customers

Communities and society

Approaches to raw materials, processes, products, services that reduce loads on global environment (quality and environmental management system)
Thorough diffusion of human rights, labor, compliance, internal control and information disclosure which reduce social loads

ColumnCommunication Activities of Information about Containment of Chemical Substances within the Supply Chain
DIC participated as a promoter in the Joint Article Management Promotion-Consortium (JAMP), which was organized in relation to establishment of the systemcommunicating information about containment of chemical substances advocated by the government and is strongly involved in formulation of such information
communication mechanisms as MSDS plus and AIS (Article Information Sheet).

40Report on “Human Resources Management”
DIC aims to be a company where every employee can maximize their individual capabilities depending on respective ability. DIC endeavors to create an appealing workplace which accommodates different lifestyles.

Efforts made until Today(1) Continuing working while raising children

Going forward, DIC will continue to monitor the effectiveness of these systems, as

DIC provides various systems supporting employees who wish to continue working

well as consider the introduction of additional systems where necessary.

while they raise their children, enabling them to continue to contribute to their department and the Company. Systems were introduced with the aim of creating a workplace(2) Promoting Opportunities for Female Employees

environment conducive to balancing the demands of work and childcare, playing an im-

Since fiscal 2006, DIC has been planning and promoting a number of initiatives

portant role in the Company’s efforts to promote opportunities for female employees.

aimed at ensuring that female employees have access to the same opportunities

Revision of the childcare leave system

as their male counterparts in the workplace, and that gender is not used as an● The maximum possible leave has been extended to until the child reach-excuse in personnel decisions.

es the age of 2 years 6 months, longer than the legally required term.

Designed to enhance employee understanding and contribute to positive chang-● It has been made a rule that employees who have taken childcare leave

es in DIC’s corporate culture, these initiatives also aim to encourage greater ambi-

shall return to their original job or a job equal in rank.
Number of Employees Taking Advantage of Childcare Leave System
Fiscal year

Number of Employees

2005

27

2006

28

2007

30

tion among female employees by providing awareness training, expanding therange of jobs open to women, increasing hiring of women and establishing adepartment to promote their career development.
Specifically, DIC conducts training for supporting ability development of female
employees (about 400 employees) and training for employees at managerial positions who have female subordinates (about 450 employees will attend). Among
new employees who joined the Company last spring, the number of female em-

Establishment of new system for working while child rearing

ployees out of 85 employees with academic careers above technical colleges or

The following work system is available up through the end of theuniversities is 27, which has significantly increased from the previous year. DIC ischild‘s third grade school year.

promoting the expansion of working fields of female employees by assigning and

1. Short workday system (fixed-term)
Workday reduced by as much as 2.5 hours
2. Short workday system (variable)
Workday reduced by as much as 3 hours
3. Late start system
Start time shifted by as much as 2 hours

developing four female employees for the first time to the site of shift work in a
Plant, where only male regular employees were previously assigned.

Establishment of new system for leave taking by child rearing partners
In order to allow men to participate in child rearing, male employees to whom a child is born are given an extra 5 days of paid leave(one week continuous leave system).

Provision of an economic support system● A system in which a portion of the employee‘s bonus is lent to the em-

ployee during an unpaid portion of the child rearing period● An in-company loan system supporting use of expensive day care facilities
Female employee training

41

CSR REPORT 2008(3) Acquisition of “Certification” under the Law for Measures
to Support the Development of the Next Generation

Future Tasks

DIC has proactively made efforts(1) Personnel Exchanges and Education for Global Management

through measures supporting bal-

DIC has adopted programs to delegate management of many overseas

ance between work and childcare,group companies to local staff as practicable as possible. To this end, DIC

recognizing the enforcement of theis working toward not only improvement of its training system for devel-Law for Measures to Support the De-

oping local staff but formulation of a comprehensive personnel affairs

velopment of the Next Generation

system, including enhanced welfare programs.

as an excellent theme which contrib-(2) Approaches to Succession of Technologies

utes to the promotion of activities offemale employees. As a result, DIC

Next Generation Certification Mark“ Kurumin”

Many employees who joined DIC during the high-growth period havecompletely performed the initial ac-continued to retire, which raises one of the management tasks of passing

tion plan and received certification of “Certified Employer 2008” by theon original technologies and know-how to the next generation. Deal-

Tokyo Labor Bureau as a company actively promoting measures for sup-ing with this task, DIC has established in major Plants “Succession Hall,”porting development of the next generation.

training facilities for equipment preservation, with the aim of preventing
accidents due to troubles of production facilities, maintaining safety op-(4) Promotion of employment of the elderly

erations and realizing quality improvements. At Succession Hall, skilled

With the aim of providing employment opportunities for capable senior

workers of the Plant, assigned as lecturers, give enthusiastic lectures ev-

citizens who want to continue working, in 1991 DIC became one of theery day to young employees who will assume responsibility for the next

first companies in Japan to introduce a reemployment system that enables

generation in order to convey skills of equipment preservation. At theemployees to continue working beyond mandatory retirement age. This

Plant, a total of 1,300 people, mostly employees, studied at Succession

system allows for reemployment up to the age of 65. In addition to broad-Hall and the skills developed there are fully utilized in production activities

ening the scope of opportunities for retirees, DIC has modified this systemof each site.

in accordance with revisions in 2006 to the Law Concerning Stabilizationof Employment of Older Persons.
Reemployment at DIC
Fiscal year

Number of
employees reemployed(Number reemployed/Number of applicants)

Reemployment rate (%)

2006

41

87.2

2007

43

95.6

2008(planned)

94

92.2

(5) Promotion of Employment of Disabled Persons
The employment rate of disabled people was 1.72% at the end of March
2008, not achieving the statutory employment rate of 1.8% by a slightmargin. DIC will aim at early achievement of the statutory employment
rate by actively promoting employment of disabled people through collaboration with Hellowork and schools for disabled children.

Class at Succession Hall

42

Report on “Human Resources Management”

The spirit and willingness of its employees to pursue new challenges is the driving force behind DIC’s ongoing evolution. DIC strives toprovide its employees with such challenges, as well as to ensure support through advanced personnel and compensation systems.

Employment Opportunities and Employee Development
A Performance-Based Employee Qualification System
With the aim of building a workplace that enables all employees to realize

Evaluation Process for Nonmanagement Employees

their full potential and ensuring the efforts of employees are fairly reflectedin salaries, DIC has long applied an employment system that rejects job cat-

As well, in 2002 DIC eliminated distinctions between career and noncareer
Individual

path employees and integrated its employee qualification system.

DIC’s Promotion System

Supervisor

Division targets

egory, academic record and other such factors unrelated to performance.

Promotions within DIC are determined once annually and based on the
results of an objective assessment procedure that includes a written test,

Individual targets

essay, interview and personnel evaluation. This ensures equal opportunity
feed backfor advancement for all employees exhibiting initiative and skill.
Interview

A Salary System that Motivates
Employees A salary system that motivates employees to perform is
one that emphasizes “pay for performance,” that is, evaluates thecapabilities and achievements of employees fairly and rewards them

Execution of duties

accordingly. DIC has created a system that eliminates or scales backthe seniorityand qualification-based components of salaries andstrengthens the capability- and performance-oriented aspects, in-

A Goal-Oriented Evaluation System
For the new salary system to truly motivate employees, it requires
an employee evaluation system that ensures the capabilities andResults evaluationin fiscal 2001 and nonmanagement employees in fiscal 2005.

Process evaluation

Career development sheet

troducing this system for management-level employees and higher

Annual evaluation

Semiannual evaluation

performance of each employee are evaluated appropriately. With

Not limited to evaluation, the system is used to promote personnel
development, with evaluation results used in a variety of ways toenhance individual capabilities.

43

SalaryBonusesvides feedback to individual employees on their evaluation results.

Promotion

focuses on goal-oriented management. Under this system, DIC pro-

Skill development

evaluation system, DIC has introduced a new evaluation system that

Appropriate assignment

the aim of enhancing the transparency of and satisfaction with its

CSR REPORT 2008

Mid and Long-Term Tasks (Toward Diversity Management)
The DIC Group, which is developing business on a global scale

flexibly correspond to markets, incorporating multifaceted ideas

with its 211 Affiliates in 60 countries throughout the world, willin times requiring capabilities that respond to changes.” The DIC

pursue diversity management (human resources management) toGroup will incorporate a variety of attributes, including race, sex,

seek true global management. Diversity management is “manage-age, etc., and their values and ideas to link to the growth of thement that increases creativity and motivation, bringing out theentire Group by flexibly responding to changes in the business en-

diversity of each person and carries out organization reforms tovironment.

Outline of Employee Training Programs

Management-level training programs
Programs aimed at training and reinforcing the competence of

DIC Management School

DIC Business College

Training for employees assigned
to posts related to overseas businessTraining overseas

management-level employees in an increasingly global corporate market

Programs for cultivating competent human resources in global markets
Programs aimed at strategically cultivating management- and staff-level human resources
for DIC Group companies overseas by imparting essential, comprehensive expertise

Self-development programs
Employee skill development courses offered by DIC Business School
Note: Assistance with course fees offered to employees upon completion

Level-specific programs
Programs aimed at developing expertise for employees at different
levels; and among employees whose positions/responsibilities havechanged due to promotion, etc.

Support for employees seeking
MBAs at overseas educational institutions

Correspondence courses

In-house seminar courses

e-learning courses

Training for new general managers

Training for new middle
management-level employees

Training for new section managers

Training for “S”-level employees

Training for new senior
management-level employees

Follow-up training for “J”-level employees

Training in coaching

Follow-up training for new employees

Training in mentoring

Training for new recruits

Voice of Participant ｜ Internal Seminar: Logical Communications Course
West Japan Sales Department, Plastic Pallets & Containers Div. ● Takeshi Ishizuka
I learned in this seminar that business letters should be written for readers, that is, they should be written so that readers canunderstand the contents correctly in a short time. In this seminar, I became able to convey my points precisely by (1) preparing
a memo for organization, structured in a tree and (2) documenting these points after logically comprehending the structureand fully organizing my points. Although I was confident in the pre-seminar assignment, even if it was difficult, I keenly felt
the difficulty in writing as I had many sentences corrected rigorously by the instructor. But I was very satisfied that I could learn
how to write specific and practical sentences. Now, I try to utilize the points I learned at the seminar even when I write a simple message memo.

44

Report on “Coexistence with Society and Social Contribution”
The DIC Group, as a corporate citizen, will seek to keep coexistence with local communities and citizens and carryout continual activities that contribute to society, placing focus on creating good relationships with society.

Main projects for fiscal 2007
Community with local residents・Open facilities

Kyogikai. Every year approximately 100,000 people visit the mu-

DIC’s plants and R&D facilities in Japan endeavor to work withseum.

the community and contribute to local environmental efforts

In fiscal 2007, the period for renovation of our art museum wasthrough a variety of initiatives, including participating in local

utilized to lend 100 major items in our collection successively tocleanup initiatives, inviting local residents and students for plantart museums in Hyogo, Shimane, and Aichi Prefectures, widen-

tours, exchanging opinions through community meetings, taking

ing the reputation of these works over various areas.

part in environment education programs and sponsoring local bon

As an educational activity, our art museum conducts “Art Edu-

odori dance events.

cation Support.” In this program, groups of elementary school

DIC’s domestic plants and R&D facilities open on-site athletic

age and older are given the opportunity not only to view pic-

facilities to local community residents.

tures and sculptures, but also to freely exchange opinions with

The site of Central Research Laboratories in Sakura, Chiba, which

all the other people in that class. Since this was started in 1998,

covers 30,000 m2, has a baseball ground and tennis courts that

more than 170 schools have participated, and the program has

are open to the residents of Sakura, as well as a huge public gar-been evaluated highly. In fiscal 2007 the museum was open

den full with flowers and trees to delight visitors year-round. The

only for 3 months due to the renovation, but still 43 groups withsite welcomes approximately 20,000 visitors each year.

1,328 children and students participated in this program.

Cultural and artistic activities
The Kawamura Memorial Museum of Art, established in May
1990 to exhibit the more than 1,000 works of art collected by
DIC and affiliated companies. In fiscal 2004, the museum's diverse standing collection and period special exhibitions, educational programs, and contribution to efforts to establish Sakura’s
reputation as a local center of art and culture, were recognizedwith the Mecenat Grand Prize, awarded by the Kigyo Mecenat
Kawamura Memorial Museum of Art renovated in fiscal 2007

Visitors to the Tokyo plant on Open House Day

45

Art education support by Kawamura Memorial Museum of Art

CSR REPORT 2008

Participation in social contribution activities of economic organizations

ter-affected areas of the Niigata-Chuetsu-Oki Earthquake, which

DIC participates in social contribution activities hosted by eachoccurred on July 16, 2007. In addition, each business establish-of the three economic organizations (Nippon Keidanren, Japan

ment and each of the group companies make regular donations

Chamber of Commerce and Industry and Japan Association of

to the Japanese Red Cross Society and local care facilities. In fiscal

Corporate Executives(Keizai Doyukai)).

2008, the DIC Group gave support to the victims of the Sichuan

In fiscal 2007, in exchange activities among schools, companies andGreat Earthquake and the Myanmar cyclone.

business executives hosted by the Japan Association of Corporate
Executives, former DIC Directors visited four junior and senior highschools in Japan (Seishingakuen High School and Junior High School

What We will Cope within Kashima-shi, Ibaraki-ken, Machida Municipal Tsurukawa Junior High(1) Establishment of Social Contribution Guidelines

School, Sumida Municipal Terajima Junior High School and (Private) De-

Each business establishment and each of the group companies ofnenchofu Gakuen) and delivered lectures, including their experiences.

DIC actively participates in environmental protection and culturalactivities in each region and makes donations and pays consola-

Support to “Xinmin DIC Elementary School,” Hainan Island Elementary Schooltion visits to local care facilities, etc. The DIC Group will establish

DIC set up a Spirulina manufacturing company (Hainan DIC

social contribution activity guidelines as guidelines for the entire

Microalgae Co. Ltd.) in Hainan, China in 1996. As there was no

Group with a view toward making efforts for social contribution

elementary school in the village where the new company was es-

activities in close collaboration with each business establishment

tablished, and local people long desired an elementary school (chil-and each of the group companies.

dren went to distant Xinmin Elementary School), The DIC Groupestablished a branch school (Xinmin DIC Elementary School) at(2) Promotion of Social Contribution Activities by Employees

the same time as the incorporation of the company and presented

DIC offers a volunteer leave and temporary retirement system

the school to the village. In 2006, the 10th anniversary of theand DIC will further review how the system should be for employ-school, DIC presented ping-pong tables, musical instruments andees to be able to participate in volunteer activities more easily.

uniforms for the drum and fife band and in 2007, books, including
encyclopedia and reference books.

(3) Establishment of “DIC High-Performance Materials Prize”
DIC established the “DIC High-Performance Materials Prize” inSupport for Disaster-Affected Areas

collaboration and cooperation with The Society of Synthetic Organ-

The DIC Group provides relief money, etc., as support to disaster-

ic Chemistry, Japan to strive for development of organic chemistryaffected areas. In fiscal 2007, it donated relief money to the disas-

research and fostering of chemical industries and researchers.

Presentation ceremony at Xinmin DIC Elementary School in fiscal 2007 (September 2007)

Participation in Oyama River environmental beautification activities near Komaki Plant.

46

Report on “Information Disclosure and Enlightenment”
We will work toward information disclosure and enlightenment through various communication tools while
deepening dialogues with everyone for the purpose of stakeholders having a deeper understanding of the
DIC Group and CSR for which the DIC Group strives.

Communicating with Shareholders and Investors
IR Policy

scale overseas IR activities in fiscal 2006, taking into consideration

DIC views investor relations (IR) as “two-way communications, that is,

the increasing number of overseas shareholders and participated in

the continuous disclosure to stakeholders of timely, accurate and im-

conferences held in New York, London and Hong Kong. In fiscal 2007,

partial information pertaining to its management philosophy and poli-

DIC participated in conferences in Europe, the United States, Singa-

cies, transparency of management, operating results and prospects ofpore and Hong Kong and visits to investors.

DIC (including negative information), and the concurrent gathering of
external opinions and information and reflection thereof in manage-

Enhancement of Finance and IR Site

ment.” As a listed company, DIC strives to fulfill its responsibility for

DIC maintains an IR information site on its website. Visitors can accessbeing accountable for its actions, thereby ensuring its acceptance as aand download necessary information in a timely manner such as finan-

contributing member of society and carries out activities so that DIC

cial results and conditions as DIC publishes its mid-term management

continues to exist and grow in the future.

plan, announcement of operating results and explanation materials, financial reports, letters to shareholders and annual reports (English).

Major Activities in Fiscal 2007
IR Activities

47

Relationship with Shareholders

For institutional investors and securities analysts in Japan, DIC holds

Since 2005, DIC has held annual general meeting of shareholders

explanation meetings of final results and interim results and small

on a day other than the “day when most annual meetings are held ingroup meetings. At the meetings, as a valuable communication forum

Japan.” In 2007, DIC shifted the venue of its annual meeting from its

more than simple performance reports, top executives themselves

registered address in Itabashi-ku, Tokyo to the more accessible Head-provide explanations on management strategies and Q&A sessions.

quarters in Nihonbashi, Chuo-ku, Tokyo, in consideration of atten-

We also started IR activities for individual investors. DIC started full-dance by more shareholders.

IR Conference in European 2008

IR Information Site

CSR REPORT 2008

In the Community and Society
Major Activities in fiscal 2007
Issue of Site Reports
DIC promotes preparation of site reports as media for reporting responsible care activities of its Plants. In fiscal 2007, reports
were prepared by all manufacturing establishments (12 Plants and1 branch manufacturing department).
Major Plants are regularly involved in operation of community
meetings, hosted by the Japan Responsible Care Council (JRCC). In
fiscal 2007, Sakai Plant participated.
“Site Report 2007” of Sakai Plant

Approaches to Employees -Toward Understanding and Establishment of CSRMajor Activities in Fiscal 2007
(1) Issuing CSR Guidebooks for Employees(2) Implementation of CSR ProjectIn the first year of introducing the CSR, for all employees of

For the purpose of every employee more concretely connecting

DIC Group(domestic) to understand and share CSR, which the

CSR of the DIC Group to their own business activities, a CSR project

DIC Group will strive for, “CSR Guidebook” was issued (October

was launched in October 2007. It aims at improving the conscious-

2007). Explanation meetings were held in each business establish-

ness of employees through lectures of experts and discussions,ment and each of group companies in Japan to link to facilitation

while dealing with such important themes of CSR as “response toof understanding of CSR activities which started in the DIC Group.

social requests” and “comprehension of risks” and reflecting the(Total 42 meetings from October 2007 to April 2008. About 2,800

proposals made in the above process to specific measures. In fiscal

employees participated).

2007, a company-wide project of DIC was carried out and in fiscal
2008, projects were started in each business division and businessestablishment.

CSR Project Residential Training(3) Information Sharing in the Company“DIC Plaza,” Group magazine, is issued quarterly with the aimof sharing management philosophy, policies and information andvitalizing communications in the Group. In “DIC NEWS EXPRESS,”
online news, employees can share important information in real
“DIC Plaza” and “CSR Guidebook”

time.

48

Independent Review

49

CSR REPORT 2008

A History of Recognition and Honor
General Awards Received

Environment and Safety Awards Received

1973

Received the Japan Society for the Promotion of the Machine Industry Prize

1973

Amagasaki Plant

Effort Prize (Minister of Labour)for development of “DIC-TRON,” automatic color separation device.

1974

Warabi Plant

Effort Prize (Minister of Labour)

Received the GATF Technology Award Grand Prix 1985 for

1976

Warabi Plant

First Prize (Hygiene) (Minister of Labour)development of ultra-high sensitive OPC printing plate.

1978

Mikawa Plant

Progress Prize (Minister of Labour)

Sakai Plant

Progress Prize (Minister of Labour)

Hokkaido Plant

Effort Prize (Minister of Labour)

Mikawa Plant

Effort Prize (Minister of Labour)

1985

1988
1989

Banner series advertisements received the Nikkei Advertising Award.
President, Shigekuni Kawamura received the Main-

1979

ichi Business Person Award.
1989

1990

Annual Report received the Special Prize in English

1981

Tokyo Plant

Effort Prize (Minister of Labour)

publicity contest.

1982

Mikawa Plant

First Prize (Safety) (Minister of Labour)

Sakai Plant

Effort Prize (Minister of Labour)Tokyo Plant

First Prize (Hygiene) (Minister of Labour)

Hokkaido Plant

First Prize (Hygiene) (Minister of Labour)

1986

Mikawa Plant

First Prize (Hygiene) (Minister of Labour)

1987

Sakai Plant

First Prize (Hygiene) (Minister of Labour)

1989

Amagasaki Plant

First Prize (Hygiene) (Minister of Labour)

1991

Sakai Plant

Progress Prize (Minister of Labour)

1992

Chiba Plant

Effort Prize (Minister of Labour)

Sakai Plant

Top Hazardous Substance Operation Commendation(Commissioner, Fire Defense Agency)

Chiba Plant

Top Plant for High-Pressure Gas Safety Commendation(Minister of International Trade and Industry)

Corporate advertisement received the Japan Advertisers Association INC. President Award.

1990

Banner series advertisements received the Nikkei Advertising Award for three consecutive years

1991“Hollow fiber technology” received the Technology Incentive Award of the Japan Chemical Industry Association

1991

Kawamura Memorial Museum of Art received theGold Prize of the Building Contractors Society

1992

DIC Americas received the GATF Grand Prix for the“waterless flat plate printing system”

1993

1984

1993

Annual Report received the Mercury Award, Silver Prize(Design Section) of International Media Conference.

1994

Polychrome received the GATF Grand Prix for CTX plate technology.

1995

DIC Building received the BELCA Award.

1996

Received the Recycling Promotion Council President Award for SMC scrap
wood recycling technology, jointly developed with Aisin Seiki Co., Ltd.

1996

1994

1996

Received Technology Award of the Japan Chemical Industry Association for“Development and commercialization of Tolan type liquid crystal.”

1996“Development of functional polyisocyanate” received the Technology Award of the Japan Society of Color Material

Mikawa Plant

Top Hazardous Substance Operation Commendation(Commissioner, Fire Defense Agency)

Mikawa Plant

Safety Effort Award (JCIA)

Suita Plant

Effort Prize (Minister of Labour)

Chiba Plant

Top Hazardous Substance Operation Commendation(Commissioner, Fire Defense Agency)

Sakai Plant

First Prize (Safety) (Minister of Labour)

Warabi Plant

Top Hazardous Substance Operation Commendation(Commissioner, Fire Defense Agency)

Saitama Plant

Progress Prize (Minister of Labor)

Nagoya Plant

Effort Prize (Minister of Labor)

Amagasaki Plant

Top Hazardous Substance Operation Commendation(Commissioner, Fire Defense Agency)

Nagoya Plant

Top Hazardous Substance Operation Commendation(Commissioner, Fire Defense Agency)

Fukuoka Plant

Special Commendation (JCIA)

Mikawa Plant

Top Plant for High-Pressure Gas Safety Commendation(Minister of International Trade and Industry)

1997

Calendar was awarded for four consecutive years at the National Calendar Exhibition.

1997

Annual Report received the Mercury Award, Gold Prize of theTokyo Plant

Top Hazardous Substance Operation Commendation(Commissioner, Fire Defense Agency)

International Media Conference for two consecutive years.

Tokyo Plant

Safety Award (JCIA)

Fukuoka Plant

Top Hazardous Substance Operation Commendation(Commissioner, Fire Defense Agency)

Ishikari Plant

Top Hazardous Substance Operation Commendation(Commissioner, Fire Defense Agency)

1999

Received Technical Development Award of The Society of Rheology, Japan for

1997

1998

“Development of rheology measurement equipment for printing inks.”
2000

2001

“Naturalis 100,” 100% soy bean oil ink received the Outstanding Per-

1999

formance Award of the Nikkei Excellent Product/Service Awards.

		Plant

Received Best Poster Paper Prize by the SID International
Academic Society for research in PN liquid crystal.

2002

2003

2004

2004

2006

2007

Safety Effort Award (JCIA)

Nagoya Plant

Progress Prize (Minister of Labor)

2001

Safety Award (JCIA)

Mikawa Plant

First Prize (Safety)(Minister of Health, Labour and Welfare)

DIC

Chairman’s Award(Japan Industrial Safety and Health Association)“Ceryl,” silica/nylon nanocomposite fibrid received the Technology

Saitama Plant

Top Hazardous Substance Operation Commendation(Commissioner, Fire Defense Agency)

Award of The Society of Fiber Science & Technology, Japan

Saitama Plant

First Prize(Minister of Health, Labour and Welfare)2002 Tokyo Plant

Top Hazardous Substance Operation Commendation(Commissioner, Fire Defense Agency)

Mostly Classic magazine, received the Fujisankei Advertising Award Grand Prix.

Suita Plant

First Prize (Occupational Health)(Minister of Health, Labour and Welfare)“Mecenat Grand Prix” was awarded by the Associa-

Saitama Plant

Chairman’s Award(Reduce, Reuse and Recycle Promotion Committee)

tion for Corporate Support of the Arts for operation

2003 Kashima Plant

Top Hazardous Substance Operation Commendation(Commissioner, Fire Defense Agency)“Japanese Traditional Colors,” corporate series advertisement serially published inof the Kawamura Memorial Museum of Art.

Kashima Plant“Liberty,” environment-friendly sheetfed inks of Sun Chemi-

Yokkaichi Plant

cal, received the 2006 PIA/GATF InterTech Technology Award.
2006

Top Hazardous Substance Operation Commendation(Commissioner, Fire Defense Agency)

Kansai Polymer Sakai

2000 Mikawa Plant

Received the Technology Award, Special Technology Prize of the Japan
Chemical Industry Association for development of “Naturalis 100.”

Suita Plant

2004 Tokyo Plant

Incentive Prize (Occupational Safety)(Minister of Health, Labour and Welfare)
Chairman’s Award(Reduce, Reuse and Recycle Promotion Committee)
Incentive Prize (Safety)

Adviser, Okumura received a “Special Award” and Mr.

Fukuoka Plant

Hideki Kato received the “Network Polymer Merit Award”

2005 Komaki Plant

Top Hazardous Substance Operation Commendation(Commissioner, Fire Defense Agency)from the Synthetic Resin Industry Association.

DIC CO.,LTD.
2006		KITANIHON(Tohoku Plant)

Incentive Prize (Safety and Health (Ministry of Health, Labour and Welfare))

Sun Chemical received the Gold Prize as the Technol-

2007

Tokyo Plant

First Prize (Safety and Health) (Minister of Labor, Health and Welfare)

Director of Tokyo Plant

Fire Chief Commendation(Tokyo Fire Department)

ogy Achievement Award from EFTA.

Chairman’s Award(Reduce, Reuse and Recycle Promotion Committee)

50Data Compilation

Data of 1999 and before can be accessed in DIC‘s home page. Its address is as follows; please refer to it.

http://www.dic.co.jp/en/csr/index.html

Table 1 Emissions of PRTR Chemicals
DIC (Non-Consolidated)
Fiscal year

2000

2001

2002

2003

2004

2005

2006

2007

PRTR chemicals (480 chemicals) (tons)

749

652

660

601

573

537

517

430

Fiscal year

2000

2001

2002

2003

2004

2005

2006

2007

PRTR chemicals (480 chemicals) (tons)

—

—

—

(879)

(900)

1,822

1,647

1,499

DIC Group (Domestic)

Note: In fiscal 2003 and fiscal 2004, domestic DIC Group companies, excluding DIC, used 354 PRTR chemicals.

Table 2 SOx Emissions
DIC (Non-Consolidated)1990 (Base year)

2000

2001

2002

2003

2004

2005

2006

2007

SOx emission index

204

55

63

32

32

37

35

44

48

SOx emissions per unit of production (g/ton)

221

54

65

32

32

37

34

43

48

SOx emissions (tons)

100

24

30

14

14

17

15

19

21

Fiscal year

2000

2001

2002

2003

2004

2005

2006

2007

SOx emissions (tons)

—

—

—

49

52

61

69

66

SOx emissions per unit of production (g/ton)

—

—

—

48

51

44

50

48

Fiscal year

DIC Group (Domestic)

Note: SOx emissions per unit of production is the volume of SOx emitted per ton of production. The SOx emission index compares the change in emissions per unit of production with fiscal 1990 as the base year.

Table 3 NOx Emissions
DIC (Non-Consolidated)
Fiscal year

1990 (Base year)

2000

2001

2002

2003

2004

2005

2006

2007

NOx emissions (tons)

202

185

174

166

182

244

247

254

185

NOx emissions per unit of production (g/ton)

219

182

180

166

177

240

239

247

181

NOx emission index

100

83

82

76

81

109

109

113

83

Fiscal year

2000

2001

2002

2003

2004

2005

2006

2007

NOx emissions (tons)

—

—

—

187

250

265

275

206

NOx emissions per unit of production (g/ton)

—

—

—

182

245

188

200

151

DIC Group (Domestic)

Note: NOx emissions per unit of production is the volume of NOx emitted per ton of production. The NOx emission index compares the change in emissions per unit of production with fiscal 1990 as the base year.

Table 4 CODcr Emissions in Wastewater
DIC (Non-Consolidated)
Fiscal year

1990 (Base yesr)

2000

2001

2002

2003

2004

2005

2006

2007

CODcr emissions (tons)

745

615

545

471

441

473

418

448

600

CODcr emissions per unit of production (g/ton)

809

606

563

473

430

465

405

435

589

CODcr emission index

100

75

70

58

53

57

50

54

73

Fiscal year

2000

2001

2002

2003

2004

2005

2006

2007

CODcr emission index

—

—

—

442

474

422

451

603

CODcr emissions per unit of production (g/ton)

—

—

—

431

465

300

327

443

DIC Group (Domestic)

Note: CODcr emissions per unit of production is the volume of CODcr emitted per ton of production. The CODcr emission index compares the change in emissions per unit of production with fiscal 1990 as the base year.
Calculations for sites having no CODcr emissions data are based on biological oxygen demand (BOD) emissions.

51

CSR REPORT 2008

Table 5 Volume of Industrial Waste Disposed of as Landfill
DIC (Non-Consolidated)
Fiscal year

1999 (Base year)

2000

2001

2002

2003

2004

2005

2006

2007

—

127,758

117,682

125,680

118,708

120,084

111,414

119,581

124,180

7,552

7,981

5,582

4,190

3,426

1,560

537

312

132

100

106

74

55

45

21

7

4

2

Fiscal year

2000

2001

2002

2003

2004

2005

2006

2007

Volume generated (tons)

—

—

—

149,781

155,494

162,300

171,086

181,284

Volume disposed of as landfill (tons)

—

—

—

4,326

2,229

1,282

809

541

Volume generated (tons)
Volume disposed of as landfill (tons)
Zero emission index

DIC Group (Domestic)

Note: Industrial waste disposed of as landfill refers to the volume of industrial waste buried in landfill sites after reduction (through dessication or incineration) or directly. DIC has set a goal
for industrial waste disposal of 267 tons by fiscal 2007.
The zero emission index compares changes in the volume of industrial waste disposed of as landfill with fiscal 1999 as the base year. DIC’s zero emission index goal is a maximum of 5%.

Table 6 Energy Consumption
DIC (Non-Consolidated)
Fiscal year

1999(Base year)

2000

2001

2002

2003

2004

2005

2006

2007

Energy consumption (calculated in volume of crude oil used) (1,000 kl)

114

127

129

120

117

116

116

116

117

Energy consumption per unit of production (liters/ton)

124

126

133

121

114

114

113

113

115

Energy consumption index

100

102

108

98

92

92

91

92

93

Fiscal year

2000

2001

2002

2003

2004

2005

2006

2007

Energy consumption (calculated in volume of crude oil used) (1,000 kl)

—

—

—

180

151

159

157

158

Energy consumption per unit of production (liters/ton)

—

—

—

128

116

116

117

120

DIC Group (Domestic)

Note: Energy consumption per unit of production is the volume of energy consumed per ton of production, calculated in volume of crude oil used. The energy consumption index compares
the change in consumption per unit of production with fiscal 1990 as the base year.
DIC has set its target goal to be the reduction of its average annual energy use over the fiscal years 2008-2012 to 80% of its energy use in 1990, expressed in units of the energy source.

Table 7 CO2 Emissions
DIC (Non-Consolidated)
Fiscal year

1999(Base year)

2000

2001

2002

2003

2004

2005

2006

2007

CO2 emissions (1,000 tons)

234

256

241

240

244

244

248

244

239

CO2 emissions calculated in volume of carbon
released per unit of production (kg/ton)

254

253

249

241

238

240

240

238

235

CO2 emission index

100

100

98

95

94

95

94

94

93

DIC Group (Domestic)
Fiscal year

2000

2001

2002

2003

2004

2005

2006

2007

CO2 emissions (1,000 tons)

—

—

—

357

308

331

324

315

CO2 emissions calculated in volume of carbon released per unit of production (kg/ton)

—

—

—

255

238

243

243

239

Notes: 1. CO2 emissions per unit of production is the volume of CO2 emitted per ton of production, calculated in volume of carbon released. The CO2 emission index compares the change
in emissions per unit of production with fiscal 1990 as the base year.
2. CO2 emissions calculated using purchased electricity in fiscal 2005 is a coefficient.

Table 8 Water Consumption and Wastewater Emissions
DIC (Non-Consolidated)
Fiscal year

2000

2001

2002

2003

2004

2005

2006

482

386

339

346

362

335

315

325

Water consumption (industrial water, others) (1,000 m3)

17,17814,91813,58812,27014,24912,78914,262

15,412

Waste water emissions (1,000 m3)

13,771

11,813

10,985

10,906

11,81010,59412,015

13,138

2007

Water consumption (city water) (1,000 m3)

2007

DIC Group (Domestic)
Fiscal year

2000

2001

2002

2003

2004

2005

2006

Water consumption (city water) (1,000 m3)

—

—

—

664

692

851

818

817

Water consumption (industrial water, others) (1,000 m3)

—

—

—

12,683

14,665

13,77815,212

16,397

Waste water emissions (1,000 m3)

—

—

—

11,222

12,15911,52812,892

14,01452

Data Compilation2007 Environmental Costs Detailed Data

Table 1 Environmental Costs (Investments and Expenses) Figures in brackets [ ] are for the domestic DIC Group.
Category
1. Costs incurred through activities aimed at minimizing
environmental impact generated within the business area
through production and sales activities (costs within the business(a) Pollution prevention andenvironmental protection costs

Millions of yen

Scope

Investments

Expenses

Costs related to the preservation of air and water
quality, maintenance or improvement of waste
disposal and recycling activitie

1,071[1,126]

3,037[3,538]

Costs related to the preservation of air and water
quality

376
[391]

1,630
[1,853]

・Operating/maintenance expenses related to activities aimed at curbing air pollution (281) [432], global warming(285) [286], water pollution (876) [935], soil pollution prevention expenses (26) [35] and other expenses
・Investments in air pollution prevention activities (66) [66]; water pollution prevention activities (310) [310];other investments
Costs related to energy conservation and internaland external waste disposal(b) Resource recycling costs

695
[735]

29%
[32%]

1,407
[1,685]

・Operating/maintenance expenses for activities aimed at reducing energy and resource consumption (224)[240], water consumption(0.1) [1] and waste disposal (856) [1,117]; expenses related to the obligatory recycling of used merchandise (0.5) [0.5]・Investments in activities aimed at reducing energy consumption (678) [710], waste disposal activities(17) [42] and other investments
Costs related to environmental and safety promotion andeducation; environmental
management and auditing related toacquisition of ISO 14001 certification

2. Environmental costs related to management
activities (management activity costs) (Note 1)

Personnel/administrative expenses (255) [273], ISO 14001 maintenanceexpenses (12) [22],environmental impact measurement expenses (50) [71]and other expenses
3. Environmental costs related to technologicalactivities (technological activity costs) (Note 2)

Expenses and investments related to the development of productsthat reduce environmental impact (including personnel expenses)

4. Environmental costs related to social activities (social activity costs)

Costs of plant and office greening programs and sharedInternal maintenance expenses (53) [63], fees to external organizations(119) [123], investment in greening programs (25) [25] and other expenses

5. Costs related to damage inflicted on the environment (environmental damage costs) Environmental clean-up and other expenses
Levies on lake development (71) [71] and other expenses(Note 1)

443
[497]

4%
[5%]

538
[538]

6,653
[6,653]

65%
[61%]

25
[25]

186
[200]

0
[0]

71
[71]

Total DIC (Non-consolidated)

1,633

10,390Total DIC Group (domestic)[1,689][10,959]

2%
[2%]

100%

Notes: 1. The investment portion of management activity costs is included in costs within the business area.
2. Technological activity costs are costs related to the development of products that reduce environmental impact and include R&D costs of new products as well as improving/customizing existing products.

Table 2 Environment-Related Facility Investments and Technology Costs
Category
Environment-related facility investments

53

Millions of yen

Composition

Expenses

Investments in facilities to reduce environmental impact
and lower energy and resource consumption; other investments

1,633

Percentage of total facility investments

8%

Environment-related technology costs

Investments related to environmental conservation technologies
and the development of products that reduce environmental impact

Percentage of total technology costs

28%

7,191

CSR REPORT 2008

Table 3 Economic Effects of Environmental Conservation Measures Figures in brackets [] are for the domestic DIC Group.

Category

Millions of yen

Expenses

Income earned by waste recycling

114

[188]

Treatment cost reduction through waste recycling

310

[425]

Cost reduction through energy conservation

107

[107]

Total

531

[720]

Table 4 Impact of Measures to Protect the Environment
Category

Environmental Load Indices (Fiscal 1990 = 100)

1. Impact of environmental
protection measures
within the business area

2. Impact of upstream and downstream
environmental protection measures

CO 2 emissions (calculated in tons of carbon) per unit of production

Fiscal 1990 (Base year) = 100

93

SOx emissions per unit of production

Fiscal 1990 (Base year) = 100

21

NOx emissions per unit of production

Fiscal 1990 (Base year) = 100

83

COD cr emissions per unit of production

Fiscal 1990 (Base year) = 100

73

Energy used (calculated in volume of crude oil used) per unit of production

Fiscal 1990 (Base year) = 100

93

Emissions of solid wastes disposed of as landfill

1% (of the fiscal 1990 level)

Target under DIC’s reduction plan

2% (of the fiscal 1999 level)(base year for plan)

Fees paid for waste disposed of as landfill(fiscal 2006 actual payment base)25.5 million less than in fiscal 2006.

Emissions of PRTR chemicals (revised list)

50% of the fiscal 1999 level. (Note 1)

CO 2 emissions realized as a result of modal shifts were 419 tons more than would have been thecase with truck transport. (Note 2)

1. Figures represent emissions of PRTR chemicals based on a revised list of target chemicals that went into effect in fiscal 2001 and is retroactive to fiscal 1999.
2. Calculations are based on standards set forth by the Japan Federation of Freight Industries in its Report on Survey of Modal Shifts. A significantly greater
reduction in CO2 emissions was realized through the use of large-scale transport modes in fiscal 2007.

2007 Safety- and Health-Related Costs Detailed Data
Table 5 Safety- and Health-Related Costs Figures in brackets [Category
Safety and health management costs(a) Safety management costs(b) Health management costs] are for the domestic DIC Group.

323
(296)
(27)

[349]
[320]
[29]

32%

[32%]

195

[238]

20%

[21%]

[ー]

315

[318]

32%

[28%]

75 [110]

162

[212]

16%

[19%]

415 [482]995 [1,117]

340 [372]

Specific safety- and health-related costs
Fees paid to outside firms for safety
data-related tests
Safety and fire prevention costs
Total

Millions of yen

Expenses % of Total

Investmentsー100% [100%]54