DIC REPORT 2024
The DIC Group Integrated ReportComplete Version

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

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

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

Core Values

Core Values
EnterprisingEnterprising: Lead with a passion for excellence that is evident in thesolution-focused actions taken each day to drive value through innovation.*
Integrity: Be honest, forthright, and ethical in all dealings with customers,
suppliers, and coworkers.*

VisionIntegrity

Dedication & Loyalty: Take responsibility for performance in the ofﬁce,
laboratory, and factory, by demonstrating commitment to customers,
suppliers, and coworkers.*

Sustainability

Dedication & Loyalty

Company

Diversity: Respect other viewpoints and work collaboratively whilevaluing collective goals over personal interests to achieve excellence;
foster communication and cooperation with people from all backgrounds.*

Diversity

Social Responsibility: Go beyond compliance to promote products andactivities that achieve socially responsible and sustainable developmentthat protect the environment.*

Social Responsibility*=Annotation

DIC Report 2021

1

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

Printed/PDF-Form Publications

Reports on activities',&5HSRUW(Complete Version)

Complete report(published annually)(PDF-form publication)

Annual Securities
5HSRUW

Contents
DIC Group Milestones
A Message from the President
A Message from the CFO
DIC Vision 2030 Long-Term Management Plan
The DIC Group’s Approach to Value Creation
Overview of Materiality
The DIC Group’s Business Portfolio
Packaging & Graphic
Color & Display
Functional Products
New Business Development
12-Year Summary

Value Creation Essentials and Strategies&RQQHFWLQJWKH',&*URXSDQGLWV6WDNHKROGHUVFinancial Information
1RQÀQDQFLDO,QIRUPDWLRQ 
The DIC Group: A Global Powerhouse
Initiatives Aimed at Enhancing Corporate Value by Providing Value to Customers
Sun Chemical (The Americas and Europe)',&$VLD3DFLÀF $VLD²3DFLÀF5HJLRQ 
DIC (China)
Overview of Sustainability
A Message from the Head of the ESG Unit
New Value Creation/News from Sun Chemical
Sustainable Technology and Product Development
Digital Transformation (DX)Harmony with the Community and Social Contributions
Communication with Stakeholders
Environment, Safety and Health (ESH)
Climate Change
Quality
Human Resources Management
Sustainable Procurement
ComplianceBusiness Continuity Management (BCM) and Crisis Management
Information Security
Corporate Governance
5LVN0DQDJHPHQW'LUHFWRUV$XGLW 6XSHUYLVRU\%RDUG0HPEHUVDQG([HFXWLYH2IÀFHUVA Message from an Outside Director)LQDQFLDO5HSRUWIRU)LVFDO<HDU
Consolidated Balance Sheet

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

DIC Global Website

Real-time information
https://www.dic-global.com/en/
Umbrella website providing information to
the global public about the DIC Group andreports on its various activities; updated
as necessary$ERXWWKLV5HSRUWIn previous years, the DIC Group published a combined corporate
SUR¿OHDQGVXVWDLQDELOLW\UHSRUWZLWKWKHDLPRISUHVHQWLQJDFOHDU
easy-to-understand picture of the Group and its sustainability
initiatives. Since 2017, the Group has published the DIC Reportas an integrated report, which combines financial information,encompassing consolidated operating results and corporate
strategies, and nonfinancial (sustainability) information. The
Group currently publishes a detailed complete report (PDF), whichcontains extensive quantitative data.

Value Creation CornerstonesWEB',&5HSRUW(Complete version) (PDF-form publication)

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

/LQNZLWKWKH',&*OREDO:HEVLWH
The () mark indicates that more detailed information and/or
data can be found on the indicated page of the DIC global website.
DIC global website

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

6FRSHRI5HSRUWLQJ

5HSRUWLQJ3HULRG

5
11
13
15
17

19
21
23
25
26
27
28
29

30
31
32
33
36
37
41
44
46
49
54
88
99
101
121
124
126
128
130
136
137
139
140
142

Consolidated Statement of Income/Consolidated Statement of Comprehensive Income 144
145
Consolidated Statement of Changes in Net Assets

Data

In principle, this report provides information on DIC Corporation and consolidated
DIC Group companies worldwide. For information on the scope of reporting for
ESH-related initiatives, please visit the pertinent page of the DIC global website.
https://www.dic-global.com/pdf/csr/environment/dic_report_scope_en_2024.pdf

3Consolidated Statement of Cash Flows

Fiscal year 2023 (January 1–December 31, 2023)

146

7KLUG3DUW\9HULÀFDWLRQ',&5HSRUWDQGWKH*5,6WDQGDUGVCorporate Data

Date of Publication
June 2024 (The next report is scheduled for publication in June 2025.)*XLGHOLQHV5HIHUHQFHG
Guidelines referenced in the preparation of this report were ISO 26000, theInternational Organization for Standardization’s standard for social responsibility,
released in 2010, Japan’s Responsible Care Code and the Global Reporting
Initiative (GRI)’s GRI Standards.

147
150
154

Cover Design
The cover of this year’s DIC Report takes its
inspiration from the natural world, employing
EULJKWO\FRORUHGÀRZHUVWRHYRNH',&¶VUHGH¿QHG
vision statement, which expresses the Company’s
goals of delivering greater value through broader
innovation, improving the human condition andpromoting sustainability for a brighter future.
DIC Report 2024

2

DIC Group Milestones

1908

1952

Established as
Kawamura Ink
Manufactory

Makes full-scale entry into the synthetic
resins business

1968

Commences sales of the DIC Color Guide®

DICカラーガイド®

Reichhold Chemicals’
San Francisco plant
Dragon product trademark

1957

1970

Enters the market for helmets andother molded plastic products

Founder Kijuro Kawamura

1915

Commences production of offset printing inks

1925

Begins production of organic pigments

1962

Enters the multilayered films business

1973

Enters the market for LCs

Changes name toDainippon Ink andChemicals Incorporated
(DIC)

1973

Establishes the Environment and Safety
Response Department

1986

1940

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

Develops water-based gravure inks
Previous corporate symbol

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

Promotes expansion of printing inks business

Offset inks

Printing inks

Gravure inks

B u s in e s s Ex pa ns io nNews inks

The power of color

Organic
pigments

Improved ink performance

DIC Report 2024

3

Flexo inks
Packaging adhesives

Pigments for printing inks
Pigments for coatings
Pigments for plastics

Synthetic
resinsDIC Group Milestones

1990

Opens Kawamura Memorial Museum of Art

2008

2015

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

Changes name to
DIC Corporation

1995

2016

Declares intention to uphold the principles
of Responsible Care

Launches branding program
Brand Slogan

New corporate symbol

2008

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

1999

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

2009

Establishes DIC Graphics Corporation

Succeeds in developing 100% soybean
oil–based printing ink

Joins United Nations
Global Compact (UNGC)

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

2021

2022

Inaugurates DIC Vision 2030 long-term
management plan

2015

2007

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

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

2010

1999

2017

2023

Completes reconstructionof corporate headquarters
building in Nihonbashi,
Tokyo

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

Acquires Canadian photoresist polymers
manufacturer PCAS Canada Inc.

Prepares for a new phase of growth

Packaging & Graphic

Packaging films

Jet inks

Polystyrene

Security inks

Color & Display

Thin-film transistor liquid crystals

Pigments for color filters(TFT LCs)

Pigments for cosmetics/effect pigments

Health foods

Naturally derived pigments

Functional Products

Acrylic resins

Polyester resins

Polyphenylene sulfide (PPS) compounds

Polyurethane resins

Waterborne resins

Industrial adhesive tapes

Epoxy resins

Ultraviolet (UV)-curable resins

Hollow-fiber membranes and modules

DIC Report 2024

4

A Message
from the President
President & CEO
DIC Corporation

Takashi Ikeda

Brief Personal History
Takashi Ikeda was born in Osaka. In 1990, he completed a master’s degree at Keio University’s Graduate School of Science and Technology. Laterthat year, he joined Dainippon Ink and Chemicals, Incorporated (now DIC Corporation), and was assigned to the Chiba Plant, where he was involved in
R&D in the area of polymers. He later successfully applied for the Company’s inaugural in-house system for sponsoring employees’ participation in MBA
programs. In 2001, he earned an MBA from the Kellogg School of Management at Northwest University in the United States. He subsequently served as
General Manager of the Functional Products Business Planning Department. General Manager of the Composite Material Products Division and President
RIWKH)XQFWLRQDO3URGXFWV%XVLQHVV*URXSDQGLQ-DQXDU\ZDVQDPHGD0DQDJLQJ([HFXWLYH2I¿FHURI',&,Q-DQXDU\KHWRRNRQWKH
position of president and CEO.

DIC Report 2024

5

A Message from the President:HDUHUH¿QLQJRXU³&RORU &RPIRUWYDOXHSURSRVLWLRQ´E\RSWLPL]LQJ
our allocation of management resources and promoting bold
structural reforms.
& Graphic segment, which centers on printing inks, polystyrene,
packaging adhesives and multilayer films, among others, saw anincrease in operating income thanks to resolute efforts to adjust sales
prices and rationalize operations. This accomplishment is especiallyencouraging as this segment includes businesses that have been
mainstays since DIC’s inception.

Decisively Reviewing Resources and Practices to Evolve as an
Organization Driven to Achieve Growth,Q-DQXDU\,DVVXPHGWKHUHLQVDVSUHVLGHQWDQG&(2RI',&,
started with the Company in polymer research and during my career
KDYHZRUNHGLQPDQ\¿HOGVLQFOXGLQJSURGXFWGHYHORSPHQWEXVLQHVVplanning, new business launches and color consulting, rather thanbeing tied exclusively to a specific department or team. This has
enabled me to accumulate ample experience and, at the same time,
has earned me a reputation for being unconventional, individualisticand highly adaptable.

The Color & Display segment, which encompasses pigments,
QRWDEO\IXQFWLRQDOSLJPHQWVIRUXVHLQFRORU¿OWHUVDQGLQFRVPHWLFVand healthcare products, struggled badly amid persistent economic
stagnation in Europe. The principal concern here was a rapidly
ZRUVHQLQJSUR¿WVWUXFWXUHFRXSOHGZLWKVN\URFNHWLQJPDQXIDFWXULQJ
costs, at our main production base, located in Germany, attributable
to flagging market conditions and the protracted crisis in Ukraine.
Here, the issues are clear and we are taking steps to resolve them.

Having spent more than 30 years with DIC working in multiple
areas, I believe I am somewhat uniquely positioned to understandthe Company’s distinctive strengths and its potential to evolve andgrow. As I see it, the DIC Group is currently going through a period of
unprecedented change. To continue growing as a global manufacturer
RI¿QHFKHPLFDOVLWLVFUXFLDOWKDWZHDUHRSHQWRQHZZD\VRIWKLQNLQJ
and to ideas that diverge from what is commonly accepted in Japan’s
corporate culture.

In the Functional Products segment, which includes synthetic resins used
LQHOHFWURQLFVHTXLSPHQWDQGSRO\SKHQ\OHQHVXO¿GH 336 FRPSRXQGVmainly for automotive applications, the performance of products for use
in electronics equipment—the principal source of segment operating
income—remained sluggish. DIC Group products in this segment areused extensively and range from high-performance to general-purpose
offerings. As a consequence, segment results tend to be influenced
greatly by market conditions. At the moment, in the area of materials foruse in automobiles, we began to see signs of a recovery in the second
KDOIRI¿VFDO\HDUDVFXVWRPHULQYHQWRU\DGMXVWPHQWVSURJUHVVHG
across the supply chain, and we anticipate a full-fledged recovery in¿VFDO\HDU

Our current long-term management plan, DIC Vision 2030, which runs
IURP¿VFDO\HDUWKURXJK¿VFDO\HDURXWOLQHVVRPHDPELWLRXV
targets and has guided us over the past two years as we have
implemented initiatives aimed at transforming our business portfolio.
0\PLVVLRQLVWRHQVXUHWKDWWKHVHLQLWLDWLYHVWUDQVODWHLQWRSUR¿WDELOLW\and the realization of a corporate group that is resilient to challenges in
the operating environment. To this end, our objective going forward isto revamp the DIC Group into an organization driven to achieve growth
E\VHWWLQJFOHDUJRDOVFUHDWLQJPRUHHI¿FLHQWZRUNHQYLURQPHQWVDQG
FRQ¿JXUDWLRQVDQGGHFLVLYHO\UHYLHZLQJRXUUHVRXUFHVDQGSUDFWLFHV

6HHNLQJD3URPSW5HWXUQWR3URÀWDELOLW\E\2SWLPL]LQJWKH$OORFDWLRQ
of Management Resources and Promoting Bold Structural Reforms)LVFDO<HDU$<HDURI6LJQLÀFDQW&KDOOHQJHVIn recent years, we have emphasized a long-term perspective,
exploring various possible new businesses by investing in multiple
R&D themes and making acquisitions. While these efforts havethus far met with some success—including the expansion ofbusinesses, a shift of focus to high-growth areas, the development
and launch of groundbreaking new products, and joint R&D andthe commercialization of products in new businesses—the resulting
dispersal of management resources and delays in selecting fromamong diverse themes has meant that new businesses have not
EHFRPHSUR¿WDEOHDVTXLFNO\DVZDVRULJLQDOO\HQYLVDJHG

The DIC Group, like the entire global fine chemicals industry, faced
considerable difficulties in fiscal year 2023. The profitability of core
Group products, in particular, dipped sharply as a result of deteriorating
conditions in key markets in Europe and falling demand for use inelectronics equipment, primarily semiconductors. As a consequence,
while consolidated net sales edged down 1.5%, to ¥1,038.7 billion,
RSHUDWLQJLQFRPHIHOOWRELOOLRQDQGZHUHSRUWHGDQHWORVVDWWULEXWDEOHWRRZQHUVRIWKHSDUHQWRIELOOLRQ,QWKH¿UVWWZR\HDUV
of DIC Vision 2030, our focus was on propelling the Group into a newstage of growth by expanding existing businesses through M&As, as
ZHOODVE\FUHDWLQJQHZEXVLQHVVHVEXWRXUUHVXOWVLQ¿VFDO\HDUFODUL¿HGWKHQHHGWRGUDPDWLFDOO\UHYLVHWKLVSODQ7KHVL]DEOHQHWORVV
attributable to owners of the parent also reflected an impairment loss
on goodwill in relation to an acquired pigments business. Management
is acutely aware that it must take responsibility for this less-than-stellar
performance.

7DNLQJLQWRDFFRXQWWKHVLWXDWLRQZHFXUUHQWO\¿QGRXUVHOYHVLQZH
have begun analyzing contributing factors and are implementing
countermeasures. We took the decision to revise our targets for
Phase 1 of DIC Vision 2030 (fiscal years 2022 to 2025) to more
realistic levels and are highlighting measures that will yield a prompt
return to profitability, along with efforts to prioritize the balanced,
optimal allocation of management resources, rapidly creating nextgeneration and growth businesses, and initiating structural reforms in
our pigments business in the Americas and Europe.

Despite a poor performance on the net sales front, the Packaging

DIC Report 2024

6

A Message from the President

Achievements
to dateIssues that haveemerged・Investing in multiple development themes and making acquisitions
has facilitated the exploration of various possible new businesses.
・This has created the seeds for business portfolio transformation.

ThemesAchievements

Expand businesses
through M&As and shiftfocus to growth businessesƔ Acquired technologies for the manufacture of semiconductor photoresist polymers
Ɣ Expanded coating resins and secured a local production base forwaterborne resins in the PRC
Ɣ Obtained technologies for the manufacture of polymers containing
minimal harmful substances, gaining a foothold in the European market

Promote Value
Transformation

Ɣ Commenced production of environment-friendly waterborne polyurethane resin
Ɣ Developed and launched perfluoroalkyl or polyfluoroalkyl substance(PFAS)-free surfactants
Ɣ Made preparations to implement the closed-loop recycling of polystyrene
Ɣ /DXQFKHGQHDULQIUDUHG 1,5 UHÀHFWLYHEODFNSLJPHQWIRUDXWRPRWLYHFRDWLQJV

Conduct joint R&D andcommercialize products innew businessesƔ Launched lithium-ion battery (LiB) electrode binder and made progressin developing other battery materials
Ɣ Collaborated with various start-ups to add depth to and commercialize
biotechnologies (e.g., expanded algae business and launched skincare brand):LWKGUDZIURPXQSUR¿WDEOH
low-growth, noncore businesses
and rationalize businesses inneed of structural reformƔ Consolidated and rationalized production facilities in the publication inks businessƔ Divested papermaking chemicals and polymer sales subsidiaries
Ɣ Withdrew from the housing materials, building materials coatings,
alkylphenols and glass photomasks businesses%XLOGLQJ+LJKO\3URÀWDEOH%XVLQHVVHVE\)RFXVLQJ0DQDJHPHQW5HVRXUFHV
LQ$UHDVWKDW$OORZ8VWR5HDGLO\/HYHUDJH&RPSHWLWLYH6WUHQJWKV

・Dispersal of management resources in new growth businesses
・Delays in selecting from among diverse themes
・Need to respond to risks arising from changes in the operating
environmentƔ1HZJURZWKEXVLQHVVHVKDYHQRWEHFRPH
SUR¿WDEOHDVTXLFNO\DVHQYLVDJHG
Ɣ'HYHORSPHQWDQGLQYHVWPHQWFRVWVDUHULVLQJƔ5HDOL]DWLRQRIWKHH[SHFWHGEHQH¿WVRI
acquisitions has been held up.
Ɣ([LVWLQJEXVLQHVVHVKDYHVWDJQDWHG

The time has come to shift from exploring
SRVVLELOLWLHVWRGHOLYHULQJUHVXOWVto enter promising new businesses that were unfamiliar terrain
for us. However, because these business areas are disparate
and in some cases outliers, results have been highly variable.
For this reason, for the remainder of Phase 1 we have resolved
to prioritize smart living, which we are confident will achieveswift and dependable profitability because it is an area thatallows us to readily leverage our competitive strengths, notably
our basic technologies, product development capabilities andproduction technologies.

The basic strategy of DIC Vision 2030, which is to transform
our business portfolio, remains essentially unchanged. We
have identified five priority business areas that will enable us
to contribute to a society that is increasingly green, digital andquality of life (QOL)-oriented, each of which is an aspiration that
KDVJDLQHGFXUUHQF\ZRUOGZLGHDQGKDYHXQÀLQFKLQJO\VRXJKWFive Priority Business AreasƔ High-performance materials and solutions that contributeto the realization of a sustainable society that coexists witha healthy global environment
Ɣ Chemical solutions for modern lives that have evolved andimproved thanks to digitalization

ExamplesSmart living
・Materials for 5G/6G-enabled devices
・Resins for next-generation semiconductors
・Bonding solutions for heterogeneous materials.

Select appropriate investment targets in other priority business areas
・Identify investment targets to be given precedencein Phase 1 and strive to realize profitability.
・New strategic investments will be implemented in Phase
2 or later, when profits are expected to improve.

SustainableenergyHealthcare

Sustainable
packaging

Be bold in selecting targets

Select from among diverse themes

Withdraw from businesses in which leveraging
competitive strengths is determined to be difficult.

Select and focus investments on businesses that are
xpected to swiftly achieve viability and profitability.

For example, we have designated businesses centered on chemicals
DQGPDWHULDOVIRUHOHFWURQLFVDSSOLFDWLRQVDV³FKHPLWURQLFV´DQGZLOO
work to provide uniquely DIC solutions, concentrating on materials forsemiconductor packaging and cutting-edge electronic components,
both of which are expected to generate profits quickly and reliably.
,Q-DQXDU\ZHHVWDEOLVKHGWKH&KHPLWURQLFV%XVLQHVVDivision within the Functional Products Business Group, transferring
marketing, technical and production functions for certain products to
FUHDWHDQLQWHJUDWHGSURGXFWLRQVDOHVDQG5 'FRQ¿JXUDWLRQColorscience
Promote rationalization efforts toimprove profitability in the
Colors & Effects pigments business.

Looking ahead, we will continue to combine the technologies wehave cultivated in such areas as resins for electronics materials,
surfactants, bonding materials and functional films, among others,with the aim of commercializing products and establishing new
businesses in a comparatively short period of time. We also seek tobuild a new business model whereby we create new businesses byenvisaging future needs at the development, production and sales
stages and providing solutions and value (materials, devices andservices) directly to society.

DIC Report 2024

7

A Message from the President(VWDEOLVKPHQWRIWKH&KHPLWURQLFV%XVLQHVVDevelop products that contribute to society

Chemitronics
Reduce environmental impact

Electronics
ChemicalContribute to an increasingly
digital society

Connecting
DeviceBonding materials,
functional films, etc.

Resins for electronics
materials,surfactants, etc.

Promote recycling and reuse

Binders for storage batteries Bonding
materials for next
Materials that can be easily joined anddisassembled• Existing products, products under development, business channels• Design and production technologies for chemical materials, notably polymers- A solid track record as a producer of stable quality, ultrafor electronics applications

Create new businesses byenvisaging future needs andproviding solutions and value(materials, devices andservices) directly to society.

Promote initiatives to strengthen capabilities• Established the Chemitronics Business Division- Integrated information with the aim of adding depth to marketstrategies/created integrated
production, sales and R&D configurations and expedited decision making• Acquired PCAS Canada Inc.

Promoting Timely and Effective Structural Reforms in the Pigments%XVLQHVVLQWKH$PHULFDVDQG(XURSHDQGLQWKH3XEOLFDWLRQ,QNV%XVLQHVV

In publication inks, part of the Packaging & Graphic segment, we
DUHVWULYLQJWRPDLQWDLQSUR¿WDELOLW\E\UHLQIRUFLQJWKHHI¿FLHQF\RIRXU
SURGXFWLRQFRQ¿JXUDWLRQVRQDJOREDOVFDOHLQSUHSDUDWLRQIRUVKULQNLQJ
demand, a consequence of increasing digitalization, and changes
in the competitive environment. We have succeeded in maintaining
SUR¿WDELOLW\WRGDWHEXWPRUHZRUNPXVWVWLOOEHGRQH

Our pigments business, which is accounted for in the Color & Display
segment, and which in the Americas and Europe centers on the Colors& Effects business, has been buffeted by drastic changes in theoperating environment, and while we had formulated a backup plan to
PLQLPL]HSRWHQWLDOULVNV²VRPHWKLQJ,FDOOD³GRXEOHWUDFNVWUDWHJ\´²
LWLVFOHDUQRZWKDWWKLVZDVLQVXI¿FLHQW$PLGVXFKFRQGLWLRQVZHKDYH
identified that any advancement will hinge first and foremost on the
optimization of regional production configurations. Accordingly, we
have begun pushing ahead with structural reforms designed to curtail
costs, focusing on the merger and shuttering of large-scale production
facilities, labor force rationalization and product portfolio transformation,
WRFUHDWHFRQ¿JXUDWLRQVWKDWPD[LPL]HV\QHUJLHVIn Japan, we are working to augment the efficiency of production
facilities and are promoting the effective use of logistics capabilities.
Efforts in the Asia–Pacific region emphasize refining our production
configuration by consolidating related facilities close to demandcenters and transferring operations to mother plants. In Europe andthe Americas, we are fortifying production configurations by merging
certain facilities and shuttering others. We are also exploring ways to
LPSURYHSUR¿WDELOLW\WKURXJKWKHHIIHFWLYHXVHRIYDFDQWVLWHVUHVXOWLQJ
from the implementation of rationalization measures.

We anticipate that while costs related to these structural reforms will
EHDSSUR[LPDWHO\ELOOLRQRYHUWKHIRXU\HDUVIURP¿VFDO\HDU
through fiscal year 2026, the resulting annual upturn in operating
income is expected to exceed ¥10 billion. We will continue to promote
additional structural reforms thereafter to further boost profitability
through the ongoing streamlining of assets and personnel.
Issues to be addressed
and future plans

Low-dielectric resinsResins fornext-generation semiconductors

Provide value in the electronics market centered on our materials

Expand businesses that straddle the two areas by adopting
a “Direct to Society” business creation mechanism

Direct to Society

Surfactants that contain no perfluoroalkyl
and polyfluoroalkyl substances (PFASs)

The market for products for packaging applications is changing as
consumers become increasingly aware of sustainability and health as
fundamental issues. Accordingly, it is important for us as a producer ofmaterials to offer optimal solutions that take into account the entire life
F\FOHRIRXUSURGXFWVIURPSURGXFWGHVLJQWKURXJKWR¿QDOGLVSRVDO

・Emphasize measures that will yield swift and consistent results, and prioritize the balanced allocation of management resources.
・Pursue synergies with and accelerate rationalization efforts in newly acquired businesses.

Issues to be addressed

Future plans

Optimize the allocation of management resources.

Ɣ&RQFHQWUDWHWKHDOORFDWLRQRIPDQDJHPHQWUHVRXUFHVRQJURZWKEXVLQHVVHVZLWKWKHSRWHQWLDOWRTXLFNO\DFKLHYHYLDELOLW\DQGSUR¿WDELOLW\Swiftly create next-generation and growth businesses.

● Concentrate the allocation of management resources in the priority business area to be emphasized over the short term (smart living).

Pursue synergies with recently acquired
businesses to achieve intended results.

● Merge/shutter pigments production facilities in the Americas and Europe, promote large-scale labor force rationalization, and review

Accelerate rationalization efforts inbusinesses in need of structural reform.

Ɣ IQSXEOLFDWLRQLQNVUHLQIRUFHWKHHI¿FLHQF\RISURGXFWLRQDQGVDOHVFRQ¿JXUDWLRQVDQGSURPRWHDOOLDQFHVZLWKRWKHUFRPSDQLHVLQWKHVDPHLQGXVWU\Ɣ:LWKGUDZIURPWKHOLTXLGFU\VWDOV /&V EXVLQHVV E\WKHHQGRI¿VFDO\HDU 

Promote sustainability strategies in an
HI¿FLHQWPDQQHU

● Promote sustainability initiatives while prioritizing strategic initiatives.

and implement measures to leverage synergies that take into account changes in the operating environment.

We now expect these and other initiatives to yield operating income ofELOOLRQLQ¿VFDO\HDUWKH¿QDO\HDURI3KDVHRI',&9LVLRQ
2030. This is a downward revision from our initial forecast of ¥80.0
billion. However, with the implementation of decisive reforms we are

GHWHUPLQHGWRUHDOL]HUHFRUGOHYHORSHUDWLQJLQFRPHLQ¿VFDO\HDU
7KHFXUUHQWUHFRUGVHWLQ¿VFDO\HDULVELOOLRQ :HKDYH
also introduced a new dividend policy, which sets a minimum limit for
DQQXDOGLYLGHQGVRISHUVKDUHIURP¿VFDO\HDUIRUZDUGDIC Report 2024

8

A Message from the President

0DNLQJ 6WHDG\ 3URJUHVV LQ /RZHULQJ &22 Emissions and$FKLHYLQJ2XU7DUJHWRID5HGXFWLRQE\)LVFDO<HDU

something we must work consciously to address going forward.
I perhaps have a bit of a unique perspective. I am a Japanese national,
but I spent a good part of my formative years overseas. My childhoodand boyhood were spent moving every couple of years. I am used tobeing considered as something of an outsider. This taught me that themost important prerequisites for diversity are acceptance and respect.
At its root, diversity is embracing each other’s differences and making
sure that those differences are valued.

The overriding goal of our sustainability initiatives is the reduction of
CO2 emissions. In fiscal year 2023, we continued to make steadyprogress on this front across the DIC Group, including by switchingfrom coal to liquefied natural gas (LNG) boilers and shifting fully togreen power—purchased electric power generated using renewableenergy—at all Group sites in Japan, reporting a 26% decline in CO2
HPLVVLRQVIURPWKH¿VFDO\HDUOHYHO7DNLQJDORQJWHUPDSSURDFKWRZDUGFDUERQQHXWUDOLW\ZKLFKZHDLPWRDWWDLQE\¿VFDO\HDU
we are currently devising an extended road map to guide our efforts
that divides the time remaining before 2050 into three stages of up to
10 years each. At each stage, we will work to provide customers withproducts that help further lower their CO2 emissions, while providing
identical functionality and value. Over the long term, we intend to also
make use of carbon offsetting, thereby putting us in a position to deliver
both economic value and social value.

There are three immediate points to consider in evaluating whether
DQRUJDQL]DWLRQLVWUXO\GLYHUVH7KH¿UVWLV³YLVLEOHGLYHUVLW\´WKDW
is, does the organization’s labor force comprise individuals withdifferences that can be readily seen, such as gender or race.
7KHVHFRQGLVZKDWLVRIWHQWHUPHG³LQYLVLEOH´GLYHUVLW\RU³GHHSOHYHO´GLYHUVLW\LQFOXGLQJZKHWKHUWKHRUJDQL]DWLRQEULQJVWRJHWKHU
people with a wide range of experiences and career histories. Asa corporate employee—and this is also something I understandfrom my own background and involvement in various businesses
and positions—I realize that it is vital to have both specialized
knowledge and generalized capabilities, and it is for this reason that
DIC places an emphasis on autonomous, multitrack career building.
The third point is innovation driven by diversity in both its visible
and invisible forms, in other words, novel thinking that encourages
the diversification of business practices. This includes the
GLYHUVL¿FDWLRQRIEXVLQHVVSURFHVVHV,WLVHDV\WRIDOOLQWRWKHWUDS
of thinking there is only one way to do something, say, to promotesales or conduct R&D, but more diverse business processes often
UHVXOWLQXQH[SHFWHGEUHDNWKURXJKV',&EHOLHYHV¿UPO\WKDWGLYHUVH
human resources,experiences and career histories, as well as
novel business processes, are indispensable to the empowermentof work environments and to better labor productivity.

$QRWKHUVLJQL¿FDQWJRDOZHKDYHVHWLVWRFRQWULEXWHWRWKHFUHDWLRQ
of systems suitable for a circular economy that minimizes thegeneration of waste, a particularly pertinent challenge for packaging
materials manufacturers. To this end, we are advancing a variety
RILQLWLDWLYHVLQOLQHZLWKRXU³5V´ UHXVHUHGXFHUHQHZUHF\FOH
DQGUHGHVLJQ ,Q¿VFDO\HDUZHFRQGXFWHGDGHPRQVWUDWLRQ
test of a closed-loop recycling system for polystyrene developedin collaboration with a customer, a major step toward the system’s
practical deployment.
We are also formulating a road map for curtailing Scope 1 andScope 2 CO2 emissions by 50% from the fiscal year 2013 level by
fiscal year 2030, remaining mindful of the need to balance the twopriorities of resolutely achieving this target and ensuring robust costcompetitiveness. Also, as part of our commitment to contribute to thecreation of a circular economy, we will leverage DIC Group competitive
strengths and distinctive capabilities to encourage recycling and bolster
the competitiveness of our products and solutions.
)RUPRUHLQIRUPDWLRQSOHDVHVHH³0DQDJLQJ,QGXVWULDO:DVWH´RQ
pages 68–71.)(VWDEOLVKLQJWKH&RUSRUDWH9DOXH,PSURYHPHQW&RPPLWWHH
WR,QWHJUDWHD+LJK/HYHO%URDG9LHZSRLQWDQG7KLUG3DUW\
3HUVSHFWLYHLQWR0DQDJHPHQW'HOLEHUDWLRQVIn this era of increasingly complex operating conditions andsocial values, the pace of change is accelerating and its scope
expanding. In this environment, it is crucial that we continue toreform our business configurations and pursue enhancements
in corporate value. However, conducting all decision making andstrategic planning in-house, as was common in the past, has
become increasingly challenging. In particular, we recognize that
accurately ascertaining the DIC Group’s role in society and its
future direction from a long-term,objective perspective demands
input from a body that reasons and speaks from an independent
SRVLWLRQ ,W ZDV ZLWK WKLV FRQYLFWLRQ WKDW LQ$SULO  ZH
established the Corporate Value Improvement Committee, which
consists entirely of outside directors, with external experts invited
to serve as advisors as required. This committee explores avariety of management issues from a high-level, broad viewpoint
and advises the Board of Directors—the Company’s top decisionmaking authority—from a third-party perspective. Themes
for deliberation include general matters related to ensuring
management is conscious of capital costs and the Company’s
share price, in addition to measures to elevate return on invested(QKDQFLQJ+XPDQ&DSLWDO0DQDJHPHQWDQG(QDEOLQJ'LYHUVH
Human Resources with Acceptance as the Starting Point
With the goal of maximizing the value of human capital, DIC
Vision 2030 sets three strategic priorities, which are to foster
human resources, ensure mobility, and improve engagement andorganizational cohesiveness, in line with which we are advancing
system reforms and the creation of work environments that enable
employees in all countries, territories and regions to fully exercise
their abilities.
In my view, our ability to achieve this goal depends on our embraceof diversity. DIC was early to establish an expansive global
presence and, as a result, we are extremely diverse in terms of
ethnicity and national origin. However, if we look at other indicators,
such as the number of women at the executive or managementlevels, there is still considerable room for improvement. This is

DIC Report 2024

9

A Message from the President

capital (ROIC) and to make more effective use of owned assets,
as well as the operation of the Kawamura Memorial DIC Museumof Art, in Sakura in Chiba Prefecture. While this committee has
RQO\UHFHQWO\FRPHLQWREHLQJZHDUHFRQ¿GHQWWKDWWKHIUHHDQG
spirited exchange of opinions among participants, who bring uniqueinsights cultivated in a multitude of areas, will provide new ideas
and innovative interpretations that will help enrich decision making
and management’s ability to make judgments, ultimately reinforcing
both our corporate governance and corporate value.
)RUPRUHLQIRUPDWLRQSOHDVHVHH³&RUSRUDWH*RYHUQDQFH´RQ
pages XX–XX.),PSURYLQJ&RUSRUDWH9DOXHRYHUWKH/RQJ7HUPE\5HGHÀQLQJ2XU
´&RORU &RPIRUWµ9DOXH3URSRVLWLRQ³&RORU &RPIRUW´LVDFRQFHSWGHYHORSHGLQIRUDSURMHFWRI
which I was in charge. Prior to that, DIC had primarily been known
as a manufacturer of printing inks, pigments and resins. At thetime, we were looking for ways to update these core businesses
in response to social change. There was also an increasingawareness that we needed to upgrade our business and productportfolios. This inspired us to chart a shift in our identity from thatof an organization which simply sells products to one that delivers
YDOXHHQFDSVXODWHGLQRXU³&RORU &RPIRUW´EUDQGVORJDQTo explain this another way, a room that is too cold or too hot
will be uncomfortable. Installing air conditioning and insulating
the walls and floors will improve livability. This is Comfort.
,QWURGXFLQJSDLQWDUWZRUNDQGÀRZHUVZLOOEULJKWHQDQGHQOLYHQ
the room. This is the value of Color. So much more than simply
adding a tint or a shade, delivering Color enriches by providing
the joy and beauty sought by people now and in the future.
Similarly, delivering Comfort imparts the functionality that meetsthe needs of the times. These two concepts are the foundation
RIRXUUHGH¿QHG³&RORU &RPIRUW´YDOXHSURSRVLWLRQ,QILVFDO\HDUZHLQWURGXFHGWKHLGHDRI³%H\RQG&RORU
&RPIRUW´WKHQH[WORJLFDOVWHSLQWKLVYDOXHSURSRVLWLRQWR
encapsulate our pledge to provide value that exceeds color
DQGFRPIRUW7KLVLVURRWHGLQVRPHWKLQJZHFDOOWKH³&RORU &RPIRUW%DURPHWHU´ZKLFKPHDVXUHVSURGXFWVDQGVROXWLRQVLQ
terms of value provided as uncomfortable, functional (provides
HVVHQWLDO IXQFWLRQV IRU EHWWHU GDLO\ OLYLQJ RU ³&RPIRUW´  RU
HQULFKLQJ SURYLGHVDGGHGYDOXHIRUJUHDWHUMR\RU³&RORU´ Color & Comfort Barometer

In line with this philosophy, we are also promoting initiatives in
multiple areas that embody a new business creation mechanism
ZH KDYH GXEEHG ³'LUHFW WR 6RFLHW\´7KLV LQYROYHV ZRUNLQJ
directly with customers, end users and society at large todiscover latent needs, and to update our offerings regularly inaccordance with those needs, thereby enabling us to provide
new value.

Functional
Uncomfortable

Enriching0-+

Provides essential functions
for better daily living

Provides added value
for greater joy= Comfort= ColorTo Our Stakeholders
Looking ahead, we will redouble our efforts to conduct each of
our businesses with an awareness of capital costs and DIC’s
share price, and will strive to be an organization that meets the
expectations of all our stakeholders. To ensure the effective useof management resources, we will swiftly build a robust earnings
base by strengthening governance to return DIC to a growthtrajectory. In all our endeavors, I look forward to the ongoingsupport and guidance of stakeholders. Thank you.

Delivers “Color & Comfort” by updatingproducts and solutions in stepwith the times

DIC Report 2024

10

A Message from the CFO

In line with the revised version of DIC Vision 2030, we will strive to improveshareholder value through cash generation and optimal allocation.
Takeshi Asai
'LUHFWRU6HQLRU0DQDJLQJ([HFXWLYH2I¿FHU
Head of Finance and Accounting Unit
CFO

synergies with, as well as on accelerating rationalization efforts in,
newly acquired businesses.

■ Operating Results and Financial Condition
Fiscal year 2023 was a particularly harsh period for DIC as both net
VDOHVDQGRSHUDWLQJLQFRPHZHUHGRZQIURPWKHSUHYLRXV¿VFDO\HDUand, as a consequence of extraordinary losses, we posted a net loss
attributable to owners of the parent. The principal factors behind the
VLJQL¿FDQWGHFOLQHZHVDZLQRSHUDWLQJLQFRPHZHUHIDOOLQJVKLSPHQWV
of high-value-added digital materials and materials used in mobility
solutions, as well as the temporary suspension of operations at certain
production sites in the United States and Europe, to pare inventories
of pigments.

❷ ,PSURYH:RUNLQJ&DSLWDODQG$VVHW(IÀFLHQF\

A key focus in fiscal year 2023 was the reduction of inventories,
particularly those of pigments in the United State and Europe, efforts
that underpinned an improvement in working capital and shortened
the cash conversion cycle (CCC)*2FRPSDUHGZLWKWKHSUHYLRXV¿VFDO
year. Going forward, we will continue working to manage regional CCC
targets with the objective of optimizing working capital. Regarding
inventory management, in particular, the entire DIC Group will work as
RQHWRVHWEXVLQHVVVSHFL¿FWDUJHWVDQGUHJXODUO\PRQLWRUWKHSURJUHVV
of efforts. In addition, we will work to reduce cross-shareholdings andshrink assets in noncore businesses.

/RRNLQJDWRXU¿QDQFLDOSRVLWLRQZKLOHHIIRUWVWRFXUWDLOLQYHQWRULHVOHG
to a decrease in net interest-bearing debt, shareholders’ equity declined
as a result of the net loss attributable to owners of the parent, causing
the net debt-to-equity ratio (D/E) ratio*1 to deteriorate to 1.21 times.

❸ Promote Management that Is Conscious of Capital Costs'HVSLWHWKHGHWHULRUDWLRQRIRXUQHW'(UDWLRLQ¿VFDO\HDUWR
times, we will take bold steps to achieve a D/E ratio of 1.00–1.10 times.
Capital investments and strategic investments will stress profitability
and decisions regarding additional investments will be made witha view to potential for securing profits. Thanks to the progress ofstructural reforms in various businesses, a degree of leverage exists,
EXW¿QDQFLDOPDQDJHPHQWZLOOFRQWLQXHWRHPSKDVL]HPDLQWDLQLQJDQ$
credit rating.

■ Adoption of Policies for Cash Allocation
With the revision of DIC Vision 2030, we adopted policies for cash
allocation with the aim of optimizing our use of cash generated. Over
WKHWKUHH\HDUVEHJLQQLQJLQ¿VFDO\HDUZHZLOOJHQHUDWHFDVKE\promoting business transformation and structural reforms, improving
working capital and shrinking assets, and will work to ensure its optimal
DOORFDWLRQWRUHDOL]HDVRXQG¿QDQFLDOVWUXFWXUHDQGHQKDQFHUHWXUQVWR
shareholders. We will also strive to improve corporate value and push
the price-book value (P/B) ratio back above 1.0 times.

❹ Strengthen Returns to Shareholders

Owing to the deterioration of earnings in fiscal year 2023, annual
dividends per share for the period were ¥80.00, down ¥20.00 from¿VFDO\HDUFRPSULVLQJDQLQWHULPGLYLGHQGRIDQGD\HDUHQGGLYLGHQGRI)URP¿VFDO\HDUIRUZDUGZHZLOOVHWD
minimum limit for annual dividends per share of ¥100.00 to ensurestable returns to shareholders. Any additional cash generated throughthe swift, proactive implementation of key measures will also be applied
to shareholder returns.

❶ Expand and Stabilize Cash Provided by Operating Activities

While we have established a framework for strategic investments under
DIC Vision 2030, it is taking longer than expected for newly acquired
EXVLQHVVHVWREHFRPHSUR¿WDEOHSXVKLQJGRZQFDSLWDOHI¿FLHQF\DV
measured using return on invested capital (ROIC) and return on equity
52( ,Q¿VFDO\HDURXUIRFXVZLOOEHRQLPSURYLQJRXURSHUDWLQJ
performance by concentrating management resources on areas thatare expected to generate profits promptly and reliably; emphasizing
measures that will yield swift and consistent results; and pursuing*1 Net D/E ratio: Net interest-bearing debt / Shareholders’ equity*2 CCC is a metric that expresses the time (in days) it takes for a company to convert capital investments in raw
materials and inventory into cash.

DIC Report 2024

11

A Message from the CFO

Policies for Cash Allocation

Cash in (Targets for FY2024-2026)

Cash out (Targets for FY2024-2026)

Ordinary investments:
Approx. ¥150 billion

Cash provided byoperating activities:ELOOLRQĮ

Seek to expand and stabilize cash
provided by operating activities
through business portfoliotransformation and structural reforms
in newly acquired businesses.

Working capital:¥10 billion

If accelerated and proactive initiative are successful
in generating additional cash, such cash will also
be applied to returns to shareholders.

Additional returns toshareholders

ROIC (%)
ROE (%)
P/B ratio (%)

Capital Efficiency

FY2026(Targets)

4.0%–5.0% ≧ Weighted average cost of

0.8

capital-10.6%

Set minimum limit for annual dividends per
share of ¥100.

Ordinary dividends:¥30 billion

Shrink assets by
ELOOLRQĮFY2023(Actual)ROE

Promote financial management that emphasizes
maintaining an A credit rating, ensuring stable
operations and financing.

Reduction in interest
bearing assets:
Approx. ¥40 billion

Work to streamline the balance
sheet and improve asset profitability
by, among others, reviewing crossshareholdingsand promoting businessportfolio transformation.

1.5%・Make next generation strategic investments
in certain businesses.
・Decisions regarding additional strategic
investments will be made with a view to potential
for securing profits.

Strategic investments:
ELOOLRQĮ

Take steps to shrink working capital,
offsetting increases expected due toexpanded sales.

ROIC

Be conscious of capital cost and narrowing
replacement investments.

0.8

0.7
0.6

7.0%–8.0% ≧ Cost of equity

5.0

4.8

4.2

3.6

4.8

Net D/E
ratio

1.21 times

1.00–1.10 times

2020

2.6

1.5

1.3

2021

2022

2.7

2024 (FY)(Forecast)

2023

-10.6

Net interest-bearing debt (Billions of yen)
Shareholders’ equity (Billions of yen)
Net D/E ratio (Times)

Financial Health

1.15

1.21

Returns to Shareholders

Interim (Yen)
Year-end (Yen)

1.13

1.00

0.70

445.9
387.0

318.5
221.9

346.0 345.9

100

100

100

50

50

50

100
80

441.4

425.0
363.9

375.2

%
%

50

50

50

30
50

2020

2021

2022

2023

Dividend yield (%)*

3.8

3.5

4.3

3.6

Payout ratio (%)

71.5

216.8

53.7

-

* Dividend yield: Annual dividends / Closing price per share at fiscal year-end

2020

2021

2022

2023

2024

(FY)

(Forecast)

DIC Report 2024

12

50
50
2024 (FY)(Forecast)DIC Vision 2030 Long-Term Management Plan
,Q¿VFDO\HDU',&LQWURGXFHGDUHGH¿QHGYLVLRQVWDWHPHQW“:HLPSURYHWKHKXPDQFRQGLWLRQE\GHOLYHULQJVDIHO\FRORUDQGFRPIRUWIRUVXVWDLQDEOH
SURVSHULW\²Color & Comfort”DQGODXQFKHGDQHZORQJWHUPPDQDJHPHQWSODQ',&9LVLRQZKLFKZLOOJXLGHWKH',&*URXSWKURXJK¿VFDO\HDU

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

DIC in the Future1

Build a business portfolio that contributes tosustainable prosperity for society

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

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

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

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

TargetReduce annual CO2 emissions by 50% by FY2030

Contribute to a society that is increasingly
Green

Digitalz Achieve carbon neutralityz Realize a circular economy

QOL

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

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

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

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

Five priority
business areas
Smart living

Value Transformation

SustainableenergyStrengthen corporate structure throughqualitative reforms of businesses

Healthcare

New Pillar Creation

Sustainable
packaging

Color science–

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

Enhance the technology platform

Make strategic investments

Reinforce management of human capital

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

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

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

Establish a more global management configuration

Promote IT and DX

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

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

Sustainability Strategies
Expand sustainable products

Reduce CO2 emissions

Respond to a circular economy

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

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

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

DIC Report 2024

13

DIC Vision 2030 Long-Term Management Plan

Business Portfolio Transformation: Five Priority Business Areas

Sustainable energy

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

e.g.

Materials for secondary batteries and fuel cells
Functional inorganic fillers

High-performance nutritional products
Natural skincare materialse.g.

Smart living

Color science

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

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

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

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

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

6WUDWHJLHVIRUWKHUHPDLQGHURI3KDVH )LVFDO\HDUVt‫ك‬Concentrate management resources on areas that are expected to generate profits swiftly and reliably

Priority business area to beemphasized in Phase 1

6PDUWOLYLQJ

From the perspective of potential to swiftly
achieve viability and profitability, concentrate
the allocation of management resources inPhase 1 on the area of smart living.

‫ ٴ‬Emphasize reinforcing capabilities in electronics
materials• Establish the Chemitronics Business Division.
• Add depth to core business and strengthen peripheralbusinesses.
‫ ٴ‬Fully leverage synergies with newly acquired businesses嵣 Uncover synergies with PCAS Canada.

Focus on appropriate investment targets in other priority business areas• Identify investment targets to begiven precedence in Phase 1 andstrive to realize profitability.
• New strategic investments will be
implemented in Phase 2 or later,when profits are expected to improve.

SustainableenergyHealthcareColor
science

Sustainable
packaging

Be bold in selecting targets.

Select and discard diffused targets.

Withdraw from businesses in which
demonstrating competitive strengths
is determined to be difficult.

Choose and focus investments on
businesses that are expected to swiftly
achieve viability and profitability.

Promote rationalization
efforts to improve
profitability in the Colors &Effects pigments business.

*Phase 2 : Fiscal years 2026–2030.

Five Strategies to Transform the DIC Group’s Business Portfolio

Reinforce management of human capital

Make strategic investments

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

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

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

DIC Report 2024

14

The DIC Group’s Approach to Value Creation

Management capital (Inputs)

Finanncial capital
Consolidated total assets ¥1,244.9 billion
Invested capitalFoundation for corporate activities

One Company
Think Globally, Act Locally¥803.9 billion

Manufacturing capitalMore than 100 production sites worldwide
Annual capital
investment: ¥56.3 billion

DIC’s competitive strengths (Sources of value)
Ability to realize new products
Product development that leverages ability to combine multiple technologies(Enjoys a leading share of the global markets for printing inks, pigments and PPS resins)

Intellectual capital
28 R&D facilities
5,730 patent families

3
Ability
to propose
solutions
水使用量38,000千m
エネルギー消費量●千GJ
Proposals that
help resolve social imperatives(Responds to customer needs by capitalizing on specialized technological know-how)

Human capital
22,255 employees,
including 18,282 overseas (82%)

Social capital
185 Group companies in
62 countries and territories

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

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

Natural capital
Energy consumed: 12,977,000 GJ
Fresh water withdrawn: 47,215,000 m3

The DIC WayCore values: Enterprising, integrity, dedication & loyalty, diversity and social responsibility

DIC Report 2024

15

The DIC Group’s Approach to Value Creation

This chart represents how the DIC Group is creating new value with the goal of achieving sustainable growth. The Group is leveraging its
competitive strengths, including its six management capitals, to expand its operations in priority business areas by promoting sustainability
and portfolio transformation strategies in line with DIC Vision 2030. Through these efforts, the Group aims to contribute to a society that isincreasingly green, digital and QOL-oriented.

Evolution into the organization
envisioned in DIC Vision 2030

Resolution of social
imperatives (Outputs)

DIC Vision 2030
A society that isincreasingly green

Business portfolio transformation• Achieve carbon neutrality

Value Transformation

New Pillar Creation

Strengthen corporate structure throughqualitative reforms of businesses

Create new businesses in response to
ESH-related issues and social changes• Realize a circular economy

Five priority business areas
SustainableenergyColorscience

Smart living

A society that isincreasingly digital

Healthcare• Propel the evolution of informationand communications• Drive the evolution of CASE vehicles
and MaaS• Promote the development of AI
and IoT technologies

Sustainable
packaging

Five strategies supporting transformationof DIC Group's business portfolio●

Enhance the technology platform●

Make strategic investments●

Reinforce management of human capital●

Establish a more robust global management configuration●

Promote IT and DX

A society that isincreasingly
QOL-oriented

Sustainability strategies●

Expand sustainable products●

Reduce CO2 emissions●

Respond to a circular economy

DIC NET ZERO 2050

DICグループは、「 2030年度 50%削減（2013年度比）」「2050年度カーボンネットゼロ」の実現を目指します• Deliver safety, peace of mind
and convenience• Prolong healthy life expectancy• Embrace diverse values

DIC Report 2024

16

Overview of Materiality
7KH',&*URXSKDVDEVWUDFWHGDQGLGHQWL¿HGDQXPEHURILVVXHVDVEHLQJPDWHULDODQGUHTXLULQJLWVDWWHQWLRQ7KH*URXSFRQWLQXHVSURPRWLQJDYDULHW\RIPHDVXUHVWRDGGUHVVWKHVHLVVXHV

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

1 sustainable prosperity for society

2 Contribution to the realization of carbon neutrality
Advance CO2 emission reductions in the market and provide
products and services that contribute to decarbonization.

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

(Announce goal of achieving carbon neutrality by fiscal year 2050, work to reduce
Scope 1 and 2 CO2 emissions and to lower product carbon footprint.)(For more information, please see pages 88–98 and 121–123.)(Focus on the five priority business areas set forth in DIC Vision 2030.)(For more information, please see pages 3–4, 7–8, 13–14 and 36–39.)

of new businesses with the potential to
3 Creation
become mainstays

4 Promotion of efforts to maximize the value of human capital

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

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

(Identify areas at the intersection of ESH-related issues and social changes and the
DIC Group’s core competencies and foster new businesses.)(For more information, please see pages 25, 37–39.)(Ensure mobility, improve engagement and organizational cohesiveness, andencourage ongoing efforts to increase diversity and reform work styles.)(For more information, please see pages 7-8,9 and 101–120.)

6 Promotion of DX

5 Establishment of a more robust global management configuration

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

Accelerate global expansion in priority business areas.
(Advance global management governance, foster and strengthen management
personnel, and create a global ERP system.)(For more information, please see pages 19–25 and 29-32.)(Innovate business processes, work styles and business models, and revamp the
DIC Group’s corporate culture and business structure.)(For more information, please see pages 43-45 and 61.)

7 Response to a circular economy

8 Creation of a sustainable supply chain

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

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

(Foster products that help reduce CO2 emissions in categories 1 and 12 of Scope 3,
and advance chemical and material recycling.)(For more information, please see pages 28, 41–43 and 68–71.)(Promote awareness of the current status of raw materials and appropriate responses to country
risk and various supply disruption risks, and to issues regarding environmental soundness.)(For more information, please see pages 45, 96–97, 113–114 and 121–123.)

Identifying Material Issues
Step 1

Abstract issues

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

Step 2

Assess materiality

Abstracted issues are examined by relevant internal departments.

Step 3

Reflect perspectives ofoutside experts

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

Step 4

Identify material issues

Step 5Present to management
team/debate

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

Step 6

Finalize

Material issues are reported at the Board of Directors meeting and finalized.

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

DIC Report 2024

17

Overview of Materiality&RUSRUDWLRQ )3&2 WRHVWDEOLVKDFORVHGORRSUHF\FOLQJV\VWHPIRU
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■ Business Expansion through M&As and a Shift toPromising Business Areas

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DNH\VWUHQJWK²ZLOOHQKDQFHLWVDELOLW\WRUHVSRQGWRWKHQHHGVRIWKHVHPLFRQGXFWRULQGXVWU\ZKLFKFRQWLQXHVWREHGULYHQE\
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■ Start-Up of New Biomass Boiler at the Kashima Plant
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see a decline in its annual COHPLVVLRQVRIDSSUR[LPDWHO\
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reduce its COHPLVVLRQVE\LQVWDOOLQJHQHUJ\VDYLQJHTXLSPHQWXQGHUWDNLQJHQHUJ\VDYLQJLQLWLDWLYHVDQGHPSOR\LQJUHQHZDEOH
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WKHQ3UHVLGHQWDQG&(2.DRUX,QR■ Ongoing Project to Rebuild the DIC Group’s ERP System
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■ Efforts to Promote the Practical Implementation of Closed-

Loop Recycling System for Polystyrene Food Trays

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

Product stewardship, reduction of environmental impact, intellectual property strategies

Environmental
and social

Strengthening of partnerships

SocialGovernance
Other

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

DIC Report 202418

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

SDGs Goals 12, 13 and 14

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

This segment includes not
only printing inks but alsoadhesives, films and a broad
range of other packaging
materials and solutions, themarkets for which are seeing
robust growth in Asia andemerging economies.

A Comment from the Business Group President
newer area of focus—we are collaborating with jet ink printermanufacturers to offer solutions in this key market.

The Packaging & Graphic segment aims to deliver security
and peace of mind and contribute to sustainability forsociety by providing a wide range of products, from printing
inks—DIC’s original business—to materials used in printed
SDFNDJLQJLQFOXGLQJSDFNDJLQJDGKHVLYHVPXOWLOD\HU¿OPV
and polystyrene.

With demand for sustainable packaging expected to continue
expanding, we have identified sustainable packaging
materials as an important theme for the DIC Group going
forward. Accordingly, we will continue striving to add depth
to sustainable technologies, including those essential to thepush toward paper, mono-material and biomass packaging,as well as those for deinkable, resealable and peelable
materials, and to provide materials that respond to theneeds of an increasingly digital society.

The DIC Group is the only organization capable ofproviding comprehensive sustainable packaging solutions
HQFRPSDVVLQJLQNVFRDWLQJVDGKHVLYHVDQG¿OPV$VVXFK
we endeavor to propose sustainable packaging solutions
and to lock in demand, primarily in promising Asian markets.
We are also responding to shrinking demand for publication
inks by swiftly taking steps to optimize and rationalize
production configurations, while in the area of jet inks—a

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

3RO\VW\UHQHSDFNDJLQJDGKHVLYHVPXOWLOD\HU¿OPV

DIC Report 2024

19

■ Segment Operating Results
Net Sales

Operating Income(Billions of yen)

22.5

22.0

20.3
130.1

124.0

127.7

(Billions of yen)

577.9

541.9

533.0

Net Sales

4.9

4.6

4.2

¥1,038.7
billion

337.4

349.0

84.1

82.5

2022
Japan

371.1

The Americas
and Europe

12.7

4.2

4.9

12.7

90.9

2023

13.1

3.4

2024

(Forecast)(FY)

China andAsia Pacific

2022
Japan

2023
The Americas
and Europe

Packaging &Graphic

2024(Forecast)(FY)

China andAsia Pacific

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50.4%

Note: Fiscal year 2023 consolidated net sales and operating
income as used here include intersegment transactions.
For this reason, and because of the existence oftransactions classified as “others,” which are not
attributable to reportable segments, these figures differ
from reported net sales and operating income.

■ Structural Reforms in the Publication Inks Business
The DIC Group is working to maintain profitability across the publication inks business by optimizing its production configuration andimplementing rationalization measures in preparation for shrinking demand, customer migration and changes in the competitive environment.

)RUPHGEXVLQHVVDOOLDQFHVLQ-DSDQDQGVWUHDPOLQHGSURGXFWLRQFRQÀJXUDWLRQVLQRWKHUFRXQWULHVDQGWHUULWRULHV● -DSDQ)RUPHGDOOLDQFHVZLWKRWKHUFRPSDQLHVLQWKHVDPHLQGXVWU\LPSURYLQJWKHHI¿FLHQF\RISURGXFWLRQIDFLOLWLHVDQGSURPRWLQJHIIHFWLYHXVHRIORJLVWLFVFDSDELOLWLHV● Asia–Pacific region: Streamlined production configuration by merging facilities close to demand centers and transferring operations to mother plants● Europe: Optimized production across the region by merging certain production facilities and shuttering others

Will implement further rationalization measures in accordance with demand trends● -DSDQ3ODQVLQFOXGHVFDOLQJEDFNSURGXFWLRQFDSDFLW\UHRUJDQL]LQJVDOHVFRQ¿JXUDWLRQWRLPSURYHHI¿FLHQF\DQGGHYHORSLQJDOOLDQFHVLQWKHDUHDVRISURGXFWLRQDQGORJLVWLFV● (XURSHDQGWKH$PHULFDV,PSOHPHQWUDWLRQDOL]DWLRQPHDVXUHVRSWLPL]HGWRUHÀHFWWKHVSHHGRIPDUNHWPDWXUDWLRQH[SORUHHIIHFWLYHXWLOL]DWLRQRIVLWHVDVDZD\WRLPSURYH

SUR¿WDELOLW\■ Fiscal Year 2023 Highlights
Products
Business

Releases dramatically updated DIC Color Guide® and added a standard paint color sample bookhttps://www.dic-global.com/ja/news/2023/products/20231109120851.html (in Japanese only)%HJLQVSURGXFWLRQRIELRPDVVSRO\VW\UHQHZLWK,GHPLWVX.RVDQ&R/WGDQGREWDLQVFHUWL¿FDWLRQXQGHU,6&&3/86IRUELRPDVVSRO\VW\UHQHSURGXFHGDWWKH<RNNDLFKL3ODQW
https://www.dic-global.com/en/news/2023/products/20230308113337.html

Management

Enters business alliance with Sakata Inx Corporation (mutual use of production equipment and logistics facilities)

Management

Commences construction of new PRC printing inks facility in Nantong

SDGs

SDGs

https://www.dic-global.com/ja/news/2023/ir/20230130145839.html (in Japanese only)

https://www.dic-global.com/en/news/2023/ir/20231128095521.html

Begins providing brand logo for Lucida® tactile paving blocks to other tactile paving manufacturers free of charge
https://www.dic-global.com/ja/news/2023/csr/20231222140210.html (in Japanese only)Enters into comprehensive partnership agreement with the city of Yokkaichi, Mie Prefecture, aimed at promoting decarbonization and the ongoing advance of industry andaccelerates efforts to launch the closed-loop recycling of polystyrenee
https://www.dic-global.com/ja/news/2023/products/20230706093754.html (in Japanese only)■ Segment Intellectual Property Strategy,PSURYHSUHVHQFHLQWKHUHF\FOLQJHFRV\VWHPE\EXLOGLQJDSDWHQWSRUWIROLRWKDWLVQRWOLPLWHGWRXSVWUHDPDUHDVVXFKDV¿OPVLQNVDQG
adhesives, but also includes downstream areas such as recycling methods.

DIC Report 202420

Color & Display
Color and Display Materials
that Make Life Colorful

SDGs Goals 3 and 13

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

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

A Comment from the Business Group President
vehicles, and materials with heat-shielding properties.

The Color & Display segment works to bring color to society
and everyday life. The segment centers on color materials,
that is pigments, used to add color, and health foods suchas Spirulina, grown using the DIC Group’s proprietary algae
cultivation technology. In fiscal year 2021, the scale of thesegment increased significantly with DIC’s acquisition of theColors & Effects pigments business from BASF SE, as a resultof which today the DIC Group is one of the world’s premierpigment manufacturers with a broad portfolio of technologies
ranging from organic synthesis to inorganic materials design.

To date, our efforts to leverage synergies with the Colors &Effects pigments business in the areas of technology andproduction have not been as successful as we had envisaged.
Owing to this, as well as economic stagnation in Europe,
our principal geographic market, we struggled in fiscal year
2023 on the performance front. Recognizing the need for
PDMRUVWUXFWXUDOUHIRUPVDQGPHDVXUHVWRKHLJKWHQHI¿FLHQF\including the merging and shuttering of production facilities on
a global scale, we have embarked on a bold series of structuralreforms aimed at returning us to a growth trajectory. This is our
top priority.

Pigments are one of the products represented by the “color”
in our “Color & Comfort” vision statement. We have set a clear
vision for the DIC Group to shift its focus to materials that add
not only color but also functionality. In addition to pigments for
specialty applications such as displays and cosmetics, for which
we already enjoy a high global market share, we are turning
our attention to materials that deliver essential next-generation
functionality, including those for industrial-use light detection
and ranging (LiDAR) signal coatings, key to autonomous driving

We will also continue to expand our endeavors in the area of
healthcare products, which remains small at 1.3% of segment
net sales in fiscal year 2023. Strategies in this area include
broadening our focus in the area of naturally derived materials,
currently focused on Spirulina, to include nutrition, naturally
derived pigments and materials for cosmetics.

Main Products［Color Materials］［Display Materials］

Pigments for coatings, pigments for plastics, pigments for printing inks, pigments for specialty applications,
SLJPHQWVIRUFRORU¿OWHUVSLJPHQWVIRUFRVPHWLFVKHDOWKIRRGVQDWXUDOO\GHULYHGSLJPHQWV

7KLQ¿OPWUDQVLVWRUOLTXLGFU\VWDOV 7)7/&V 
supertwisted nematic liquid crystals (STN LCs)DIC Report 2024

21

■ Segment Operating Result
Net Sales

Operating Income

Net Sales(Billions of yen)(Billions of yen)
275.2
248.2
34.7

5.1

37.5

227.3
32.0

4.1

¥1,038.7
billion

5.2

3.0
3

（1.2）
△3

254.5

227.1

4.0

（8.9）

4.7

209.5

（13.0）
Color &
Display

2022
Japan

2023

2024

(Forecast)(FY)

Overseas

2022

2023

Japan

2024

(Forecast)

21.1%

(FY)

Overseas

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

Note: Fiscal year 2023 consolidated net sales and operating
income as used here include intersegment transactions. For
this reason, and because of the existence of transactions
FODVVL¿HGDV³RWKHUV´ZKLFKDUHQRWDWWULEXWDEOHWRUHSRUWDEOH
VHJPHQWVWKHVH¿JXUHVGLIIHUIURPUHSRUWHGQHWVDOHVDQG
operating income.

■ Structural Reforms in the Pigments Business in the Americas and Europe
The DIC Group is creating production configurations in the Americas and Europe that maximize synergies by promoting structural reforms and measures toheighten efficiency, including the merger and shuttering of production facilities and labor force rationalization, thereby improving earnings structures, particularly
for the recently acquired Colors & Effects pigments business.

Return to a growth trajectory by promoting structural reforms
Merged and shuttered production facilities

Bolster production efficiency and cut costs● Optimized pigments production configuration in Europe,*● Total structural reform–related costs for fiscal years 2023–2026 will be approximately

taking into account future demand* Downsized four and optimized 12 sites¥16 billion.
● As of fiscal year 2026, the annual improvement in operating income attributable torationalization is expected to be ¥10 billion-plus from the fiscal year 2022 level

Rationalized labor force● Reduce the total number of employees in the pigments business by 12%● Continue to promote additional structural reforms from fiscal year 2027 on to further● In addition to rationalizing operations, a policy since acquisition,

rationalized labor force* in response to the deterioration of thebusiness environment* Phased implementation began in fiscal year 2022. The largest-scale labor force

improve operating income● Seek to restore profitability by implementing structural reforms aimed at streamlining

assets and personnel reforms

rationalization to date began in fiscal year 2023.

Invest in strategic growth products● Bolster profitability and grow businesses by expanding production of perylene pigments,

Transformed product portfolio

effect pigments, and pigments for displays, demand for which is increasing for specialty
applications● Rationalized production of conventional pigments(azo, phthalocyanine, diketopyrrolopyrrole (DPP))● Expanded high-value-added products(perylene pigments, effect pigments, pigments for displays)

Strive to achieve sustainability● Establish a more competitive production structure by reducing CO 2 emissions throughthe optimization of locations and processes■ Fiscal Year 2023 Highlights
Products

Launches two new eXpand!® stir-in pigment preparations for the coatings market (Sun Chemical)

Products

Launches portfolio of biocide-free Xfast® dry stir-in colorants for water-based coatings (Sun Chemical)

Products
Research
SDGs

https://www.dic-global.com/en/news/2023/products/20230919084814.html

https://www.dic-global.com/en/news/2023/products/20231006103109.html

Introduces two new SunPURO® Naturals colors for cosmetics and personal care (Sun Chemical)
https://www.dic-global.com/en/news/2023/products/20231225092111.html

3XEOLVKHVDSDSHUZLWK.RFKL8QLYHUVLW\RQWKHDQWLDJLQJEHQH¿WVRISRO\VDFFKDULGHVGHULYHGIURPEOXHJUHHQDOJDH6SLUXOLQD
https://www.dic-global.com/en/news/2023/products/20230921122124.html

Cooperates with Tirol Choco Co., Ltd., to conduct food education class on edible blue-green algae Spirulina
https://www.dic-global.com/ja/news/2023/event/20230726155619.html (in Japanese only)■ Segment Intellectual Property Strategy
Secure an unparalleled competitive advantage in pigments for specialty applications, including displays and cosmetics, by building apatent portfolio focused on effect pigments and naturally derived pigments that will serve as core materials going forward.

DIC Report 2024

22

Functional Products
Functional Products that
Add Comfort

SDGs Goals 6, 12 and 13

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

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

A Comment from the Business Group President
new functions in robots and drones by combining sensors
and processing technologies with materials having uniqueperformance features.

The Functional Products segment encompasses a diverse
range of synthetic resins and other products in threebusinesses: Performance materials, composite materials and,EHJLQQLQJLQ¿VFDO\HDUFKHPLWURQLFV7KHVHSURGXFWV
are primarily for industrial applications, notably mobility
solutions and electronics.

Looking ahead, we will expand our lineup of environmentfriendly products, including PFAS-free surfactants, launchedin fiscal year 2023, and PPS compounds, which help makevehicles lighter. In addition, we will continue working to help
realize carbon neutrality by switching to bioderived raw
materials.

To further accelerate our efforts in the business area we have
dubbed “smart living,” we realigned the segment early in the
period, designating chemicals and materials for electronics
applications “chemitronics.” Our goal is to evolve as aprovider of solutions that contributes to an increasingly digitalsociety by extending products such as epoxy resins, crucial tosemiconductor fabrication, photoresist polymers and industrial
adhesive tapes used in smartphones. In this area, we arealso fostering new businesses that deliver comfort, imparting

Main Products［Performance Materials］［Composite Materials］

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

3RO\SKHQ\OHQHVXO¿GH 336 FRPSRXQGVSODVWLF
FRORUDQWVKROORZ¿EHUPHPEUDQHVDQGPRGXOHV
medical diagnostic products

DIC Report 2024

23

[Chemitronics]
Materials for semiconductor and substrate packaging
and for photoresists, resins for electronics components,
surfactants, adhesives and bonding materials, highperformance optical materials

■ Segment Operating Result
Net Sales

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

315.4

216.9

305.9

130.2

128.8

2022
Japan

23.6

292.2

177.8

202.9

¥1,038.7
15.4

14.7

141.9

2023

Net Sales

8.92024 (FY)(Forecast)

Overseas

7.0

6.8

8.5

.8

2022

2023

Japan

billion

15.6

Functional
Products

2024(Forecast)

28.5%

(FY)

Overseas

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

Note: Fiscal year 2022 consolidated net sales and operating income asused here include intersegment transactions. For this reason, andbecause of the existence of transactions classified as “others,”
ZKLFKDUHQRWDWWULEXWDEOHWRUHSRUWDEOHVHJPHQWVWKHVH¿JXUHVdiffer from reported net sales and operating income.

■ Initiatives Aimed at the Swift Creation of Next-Generation and Growth Businesses● Designate business centered on chemicals and materials for electronics applications “chemitronics” and concentrate the allocation of management resources in this business● Provide uniquely DIC solutions, focusing on materials for semiconductor packaging and cutting-edge electronics components, both of which are expected to grow in the future● 7DUJHWIRUWKHFKHPLWURQLFVDQGUHODWHGEXVLQHVVELOOLRQ±ELOOLRQLQFUHDVHLQRSHUDWLQJLQFRPHIURPWKH¿VFDO\HDUOHYHOE\¿VFDO\HDU

Chemitronics

Develop products that contribute to society
Reduce environmental impact

Electronics
Chemicals

Resins for electronics
materials, surfactants, etc.

Connecting
Devices

Contribute to an increasingly
digital society

Bonding materials,
functional films, etc.

Promote recycling and reuse

Surfactants that contain no PFASs

Low dielectric resins
Resins for next-generation semiconductors
Binders for storage batteries
Bonding materials for next-generation
batteries
Materials that can be easily
jointed and disassembled■ Fiscal Year 2023 Highlights
Products
Products
Research
Management
Management
SDGs

Develops MEGAFACE™ EFS series of environment-friendly high-performance PFAS-free surfactants
https://www.dic-global.com/en/news/2023/products/20230731182329.html

Releases HYDRAN™ GP series of environment-friendly waterborne polyurethane resins
https://www.dic-global.com/en/news/2023/products/20230627143917.html

1HDULQIUDUHG 1L5 ÀXRUHVFHQWG\HLVDGRSWHGIRUXVHLQ%ULJKW0DUNHUHPEHGGHGLQYLVLEOHÀXRUHVFHQWWDJVIRUREMHFWWUDFNLQJGHYHORSHGE\0DVVDFKXVHWWV,QVWLWXWHRI7HFKQRORJ\ 0,7
https://www.dic-global.com/en/news/2023/r_and_d/20230911102035.html

Acquires photoresist polymers manufacturer PCAS Canada Inc.
https://www.dic-global.com/en/news/2023/ir/20230531142948.html

Transfers all shares held in consolidated subsidiary SEIKO PMC, eliminating the company from the scope of consolidation
https://pdf.irpocket.com/C4631/cEro/Z8dG/wpz9.pdf

Collaborates with Meiji Holdings Co., Ltd., to develop CACAO STYLE LEATHER, a synthetic leather made from upcycled cacao bean skins
https://www.dic-global.com/ja/news/2023/csr/20231220090323.html (in Japanese only)■ Segment Intellectual Property Strategy
Strengthen patent protection not only in Japan but also in other countries and territories to expand share of the markets for innovative
products such as environment-friendly PFAS-free surfactants.

DIC Report 2024

24

New Business Development
New Businesses Created fromthe Perspective of ESH-Related Issues and Social Changes
SDGs Goals 8, 9 and 11

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

A Comment from the Business Group General Manager
DQGFRPSDQLHVGH¿QHYDOXH:HDUHDOVRH[SORULQJYDULRXV
business models while at the same time searching for partners
with whom we can work in all areas, including technology,
procurement, production and sales. Going forward, we willreconsider development themes initially formulated under DIC
9LVLRQWKHJRDOVRIZKLFKQRZDSSHDUGLI¿FXOWWRPHHW
transferring short- and medium-term themes to the businessgroups, reinforcing collaboration, and emphasizing effective
time management with clear targets and milestones for
medium- to long-term themes.

In addition to global-scale issues such as climate change andsocial disparities, escalating political tensions, including trade
IULFWLRQEHWZHHQWKH8QLWHG6WDWHVDQGWKH35&WKH5XVVLDQLQYDVLRQRI8NUDLQHDQGWKHFXUUHQW,VUDHOL±3DOHVWLQLDQFRQÀLFW
continue to have major business implications worldwide.
7KHDELOLW\WRFRPSHWHLVDOVRLQÀXHQFHGE\IDFWRUVVXFKDV
national and regional laws and regulations, subsidies, industry
standards and rules, while cutting-edge startups tend to
DWWUDFWIXQGLQJXQGHUVFRULQJDQLQFUHDVLQJO\GLYHUVL¿HGDQG
challenging competitive environment. Against this backdrop,
we are promoting new business development guided by three
key considerations: Technology, rules and how consumers■ Fiscal Year 2023 Highlights
Smart Living● 7UDQVIHUUHGHOHFWURQLFVUHODWHGWKHPHVVXFKDVVLOYHUVHHG¿OPWRWKHQHZ&KHPLWURQLFV%XVLQHVV'LYLVLRQZKHUHV\QHUJLHVDUHDQWLFLSDWHG● Expanded 3D dental printing materials and focused marketing on Europe, the Americas and the PRC● Produced mass production prototype material for LiDAR* antennas as an application for LC materials*A sensing technology that detects the shape and distance of surrounding objects

Sustainable Energy● In the area of battery materials, recognized as a promising market, shifted focus for market entry from electrode binders for next-generation secondary batteries,
originally slated for commercialization, to binders for LiBs, which offer more scope for leveraging polymer design capabilities and other competitive strengths
https://www.dic-global.com/en/news/2023/products/20230410175244.html

Healthcare● 0DGHDVHFRQGLQYHVWPHQWLQ'HEXW%LRWHFKQRORJ\,QFRIWKH8QLWHG6WDWHVDQGEHJDQH[SORULQJXVHRIMRLQWO\GHYHORSHGSRO\SKHQROVLQWKHDUHDRIVNLQFDUH● Promoted conservation activities for Suizenji nori, an endangered freshwater blue-green algae that grows naturally only around Mount Aso in Kyushu,
marketed SACRAN™, a polysaccharide extracted from farmed Suizenji nori and launched ¿OOZLWK, a SACRAN™-based cosmetics brandNote: SACRAN™ is a trademark of Green Science Materials, Inc.

https://www.dic-global.com/ja/news/2023/products/20230125095828.html (in Japanese only)
https://www.dic-global.com/ja/news/2023/csr/20230828105631.html (in Japanese only)

Sustainable Packaging● 7UDQVIHUUHGEDUULHU¿OPV5 'WKHPHWRWKH3DFNDJLQJ0DWHULDO3URGXFWV'LYLVLRQZKHUHV\QHUJLHVDUHDQWLFLSDWHGZLWKRWKHUSURGXFWVLQWKHGLYLVLRQ¶V¿OPVSRUWIROLR● 8VHGUHF\FOHGSODVWLFIURPGHLQNHGUROOVRISODVWLF¿OPWRPDNHFRORUHGSDFNDJLQJEDQGVDQGSRUWDEOHWHPSRUDU\SODVWLFLWHPV● (VWDEOLVKHGDSURFHVVIRUUHF\FOLQJZDVWHSODVWLFGHULYHGIURPÀH[LEOHSDFNDJLQJWKURXJKZHWFUXVKLQJDQGPDUNHWHGLWDORQJZLWKGHLQNHGPRQRPDWHULDO
constituent and other sustainable materials
https://www.dic-global.com/ja/news/2023/products/20230605133213.html (in Japanese only)

DIC Report 202425

12-Year Summary
Key Financial Data
Period

115

116

117

118

119

120

121

122

123

124

125

126

Fiscal year2012

2013(※3)

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

IncomeNet sales (Billions of yen)

703.8

784.0

830.1

820.0

751.4

789.4

805.5

768.6

701.2

855.4

1,054.2

1,038.7

Operating income (Billions of yen)

38.5

44.1

41.1

51.1

54.2

56.5

48.4

41.3

39.7

42.9

39.7

17.9

Operating margin (%)

5.5

5.6

4.9

6.2

7.2

7.2

6.0

5.4

5.7

5.0

3.8

1.7

23.0

19.8

25.3

26.8

26.2

27.4

28.4

27.9

26.2

28.0

29.9

32.2

8.8

8.8

10.9

12.2

11.2

12.4

12.9

12.5

12.0

13.5

15.1

17.2

Ordinary income (Billions of yen)

35.1

40.9

39.9

49.0

55.8

57.0

48.7

41.3

36.5

43.8

39.9

9.2

Net income (loss) attributableto owners of the parent (Billionsof yen)

19.1

28.8

25.2

37.4

34.8

38.6

32.0

23.5

13.2

4.4

17.6

(39.9)EBITDA (Billions of yen)

65.2

69.1

77.0

94.0

82.6

86.1

81.4

67.4

55.6

69.0

85.5

30.8

EBITDA margin (%)

9.3

9.8

9.3

11.5

11.0

10.9

10.1

8.8

7.9

8.1

8.1

3.0

Total assets (Billions of yen)

693.0

761.7

803.7

778.9

764.8

831.8

801.3

803.1

818.0

1,071.5

1,261.6

1,244.9

Net assets (Billions of yen)

160.7

218.9

276.7

289.9

307.0

344.0

327.3

343.5

351.4

381.0

421.1

399.3

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

Financial Position

Equity ratio (%)

19.8

25.6

31.1

33.7

36.4

37.9

37.3

38.9

38.9

32.3

30.7

29.2

Net interest-bearing debt
(Billions of yen)

293.0

283.6

257.4

244.1

224.0

247.8

244.7

235.8

221.9

346.0

445.9

441.4

Net D/E ratio (Times)

2.14

1.45

1.03

0.93

0.80

0.79

0.82

0.75

0.70

1.00

1.15

1.21

41.4

33.9

46.4

29.1

62.5

54.2

51.0

50.6

54.5

44.8

7.9

89.1

(23.7)(9.8)(27.4)(10.0)(32.2)(58.9)(38.4)(24.9)(33.0)(147.6)(73.2)(66.5)

17.7

24.0

19.0

19.1

30.3

(4.7)

12.6

25.8

21.4

(102.8)(65.2)

22.6(26.6)(32.8)(26.1)(24.8)(26.9)

11.4(11.8)(26.8)

6.3

99.5

83.9

(2.9)

22.5

15.0

16.4

15.1

16.7

17.7

18.6

16.7

41.4

37.6

62.6

84.6

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

Per Share Information*2

Earnings (loss) per share (Yen)

207.98292.26267.81

389.40366.72407.56338.40248.29139.8146.12

186.05(421.06)

Price earnings ratio(Times)

9.5

10.9

10.9

8.5

9.7

10.5

10.0

12.2

18.6

62.8

12.5

‒

Dividends per share (Yen)

60

60

60

80

100

120

125

100

100

100

100

80

28.8

20.5

22.4

20.5

27.3

29.4

36.9

40.3

71.5

216.8

53.7

‒

ROIC (%)

6.3

6.1

5.7

6.9

7.3

7.2

6.0

5.2

5.0

4.8

3.6

1.5

ROE (%)

16.0

16.1

11.3

14.6

12.9

13.0

10.4

7.7

4.2

1.3

4.8

(10.6)

26.6

27.1

33.6

32.1

31.3

33.6

32.1

35.0

34.0

38.6

49.5

56.3

27.4

25.9

33.8

32.9

32.4

31.5

32.8

33.1

32.6

37.4

47.1

50.8

Overseas sales ratio (%)

56.7

66.6

63.4

65.1

62.4

63.4

63.6

63.5

64.8

67.3

70.8

71.3

Average exchange rate (¥/US$)

79.93

97.06

106.32120.85109.96112.33110.46109.11106.37109.75130.59140.51

Average exchange rate (¥/EUR)

103.11129.25141.41134.14122.06127.03130.46122.13121.43129.73137.71151.98

Number of employees

20,273

20,034

20,411

20,264

20,481

20,628

20,62020,513

20,242

22,47422,743

22,255

Payout ratio (%)

Other Indicators

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

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

DIC Report 2024

26

Financial Information
Net Sales, Operating Income and Operating Margin
Net sales(Billions of yen)

Net sales

Operating income

1,100

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

Operating margin (%)

1,054.2

60

1,038.7

1,000

50

900

Operating income(Billions of yen)

855.4

54.5

50.6

44.8

40
30

701.2

700

70

25.8

22.6

21.4

20

5.7%

5.4%

600

89.1

80

768.6

800

Net cash provided by operating activities
Free cash flow

(Billions of yen)

60

5.0%

7.9

10
50

500

3.8%

0
40

400

-5

（102.8）（65.2）

2021

2022

30

300

1.7%
200

41.3

39.7

42.9

100

2019

2020

2021

2022

2023

2019

10

17.9

0

-105

20

39.7

Operating Income after Tax and ROIC*

30.9

28.6

5

60

3.6%

4

50

28.6

3

40

20

1.5%

2

10

12.9

1

2019

2020

2021

500

1.15
1.00

2021

2022

2023

(FY)

(Times)

1.21

1.2

（円）

1.1

445.9

2020

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

Shareholders’ equity(Billions of yen)

Net D/E ratio (Times)

2019

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

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

37.1

10

0

2023 (FY)

2022

37.5

20

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

Net interest-bearing debt
(Billions of yen)

73.3

30

0

0

81.1

80
70

4.8%

40

29.8

160

6

5.0%

168.2

170

7

(Billions of yen)

30

(Billions of yen)（%）
8

ROIC（%）
50

441.4

Interim dividend (Yen)

Year-end dividend (Yen)

150

1.0
0.9

400

0.75

0.70

346.0

0.8

100

0.7

300

221.9

100

100

100

100

50

50

50

80

0.6

235.8

40

0.5

30

200

0.4

312.7

318.5

345.9

387.0

363.9

100

50

0.3

60

0.2

50

50

50

50

2019

2020

2021

2022

2023
2023

Payout ratio (%) 40.3%

71.5%

216.8%

53.7%

-

0.1

0

0

2019

2020

2021

(FY)

Capital Expenditure and Investment

Operating income after tax (Billions of yen)

5.2%

2023

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

0

(FY)

2020

2022

2023

0

(FY)

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

DIC Report 2024

27

(FY)

Non Financial Information
Global CO2 Emissions and CO2 Emissions per
Unit of Production (DIC Group)
CO 2 emissions(Tonnes)Global Energy Consumption and Energy Consumption per
Unit of Production (DIC Group)

CO 2 emissions per unit of production(Kg CO2 /tonne)

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

400

1,000,000
900,000
800,000

282

700,000

245

242

236

593,000

500,000

551,000

589,000300

720,000

600,000

233
200

535,000

400,000
300,000

100
200,000
100,000
0

2019

2020

2021

2022

2023

(FY)

0

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

22,474
20,5132.50

22,255

10,717

14,5693

12,800

1

2019

2020

2021

2022

(FY)

2023

0

DIC Group
2.38

1.96

2.00

2.00

2.07

1.79

1.50

10,000

1.78

1.73

1.00
（17.5%）
3,593（18.1%）
3,662

2019

2020

（16.4%）
3,681（16.5%）
3,744（17.9%）
3,973

0.50

0
2021

2022

2023 (FY)

0.00

Notes:
3HUFHQWDJH¿JXUHVLQSDUHQWKHVHVUHSUHVHQWWKHSURSRUWLRQRI',&*URXSHPSOR\HHVDFFRXQWHGIRUE\HPSOR\HHVRI',&&RUSRUDWLRQ
2. (PSOR\HHQXPEHUVIRU',&&RUSRUDWLRQDUHFDOFXODWHGEDVHGRQLQIRUPDWLRQLQWKH&RPSDQ\¶V$QQXDO6HFXULWLHV5HSRUWDQGWKXVGLIIHU
IURPWKRVHLQWKH+XPDQ5HVRXUFHV0DQDJHPHQWVHFWLRQRIWKLVUHSRUWPercentage of total (%)

81

80

6,000

70

70

8

57

2019

2020

2021

2022

2023 (FY)Patents families held in Japan

8,000

PAI

7,000
6,000

5,000

8.1%

61

7

5,000

7.1%

52
48

2018

PAI

7,000

（%）
9

60

2017

Patents families held
(Number)

Female employees

90

2016

Patents Families Held (DIC Group)

Female Employees in Management Positions (DIC Corporation)(Number of people)

2015

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

7KH',&*URXSKDVVHWJRDOVIRU-DSDQWKH35&WKH$VLD3DFL¿FUHJLRQDQGWKH$PHULFDVDQG(XURSHDQGLVZRUNLQJWRHOLPLQDWHRFFXSDWLRQDODFFLGHQWV

7KH',&*URXSLVDPXOWLQDWLRQDORUJDQL]DWLRQZLWKDJOREDOODERUIRUFHRILQFRXQWULHVDQGWHUULWRULHV
7KH*URXSZLOOFRQWLQXHWRFDSLWDOL]HRQLWVGLYHUVLW\WRGULYHLQQRYDWLRQ

4,000
6

6.3%
5.9%

4,000
3,000

5

5.5%

3,000

5.1%
4

2,000

3

1,000

2

0

30
20

2,000
1,000
0
2019

10
0

10,474

2

1.89

40

10,3792.21

15,000

50

5

4.189
4

20,24220,000

5,000

6

5.577

Occupational Accident Frequency Rate (DIC Group)

DIC
22,743

4.559

4.423

(GJ/tonne)

5.695

7KH',&*URXSDFWLYHO\SURPRWHVHQHUJ\VDYLQJDQGGHFDUERQL]DWLRQPHDVXUHVLQFOXGLQJLQWURGXFLQJKLJKO\HI¿FLHQWIDFLOLWLHVDQGSURPRWLQJSURFHVVLPSURYHPHQWV*RLQJIRUZDUGWKH*URXSSODQVWRIXUWKHUDGYDQFHLWV
XVHRIUHQHZDEOHHQHUJ\E\VKLIWLQJWRELRPDVVDQGRWKHUFOHDQIXHOVDQGLQVWDOOLQJVRODUSRZHUIDFLOLWLHV

Number of Employees (DIC Corporation and the DIC Group)
25,000

Energy consumption per unit of production

Note: Energy consumption per unit of production is calculated using adjusted production volume(parent company in Japan only). 1RWL¿FDWLRQVXEPLWWHGWR-DSDQ¶V0LQLVWU\RI(FRQRP\7UDGHDQG,QGXVWU\

7KH',&*URXSDLPVWRUHGXFHLWV&22HPLVVLRQVE\IURPWKH¿VFDO\HDUOHYHOE\¿VFDO\HDUDQGWRDFKLHYHFDUERQQHXWUDOLW\E\¿VFDO\HDU )RUPRUHLQIRUPDWLRQSOHDVHVHH³0HWULFVDQG7DUJHWV´RQSDJHLQWKH&OLPDWH&KDQJHVHFWLRQRIWKLVUHSRUW(Number of people)

Energy consumption(Thousands of GJ)

2020

2021

2022

2023（FY）

1

2019

2020

2021

2022

2023

2024 (FY)3DWHQW$VVHW,QGH[ 3$, 0HWULFWKDWPHDVXUHVWKHUHODWLYHTXDOLW\RILQGLYLGXDOSDWHQWIDPLOLHV 3DUWRI/H[LV1H[LV¶3DWHQW6LJKWSDWHQWDQDO\WLFVVROXWLRQ

0,Q¿VFDO\HDUWKHSHUFHQWDJHRIPDQDJHPHQWSRVLWLRQVDW',&RFFXSLHGE\ZRPHQZDVDQLQFUHDVHRISHUFHQWDJHSRLQWIURPWKHSUHYLRXVSHULRG7KH&RPSDQ\LVZRUNLQJWRFUHDWHHQYLURQPHQWVZKHUHGLYHUVHKXPDQUHVRXUFHV
FDQIXOO\UHDOL]HWKHLUSRWHQWLDO )RUUHJLRQDOGDWDSOHDVHVHHSDJHLQWKH+XPDQ5HVRXUFHV0DQDJHPHQWVHFWLRQRIWKLVUHSRUW

7KHQXPEHURISDWHQWVKHOGE\WKH',&*URXSFRQWLQXHVWRJURZDVGRHVWKH*URXS VSDWHQWDVVHWV%\SURPRWLQJ
LQYHQWLRQDQGWKHDFTXLVLWLRQRIULJKWVWKH*URXSLVUHLQIRUFLQJLWVJOREDOFRPSHWLWLYHHGJHIURPWKHSHUVSHFWLYHRI
intellectual property.

DIC Report 2024

28

The DIC Group: A Global Powerhouse
60

EuropeAfrica

63

3

15

29

Net sales¥315.2 billion¥228.4 billion¥ (7.0) billion¥10.4 billion(Excluding Japan)

Operating income¥15.7 billion

Central & SouthAmerica

Oceania

Operating income

Breakdown of Fiscal Year 2023 Net Sales by Region

Americas and Europe

Breakdown of Fiscal Year 2023 Operating Income by Region

Japan

Americas and Europe

31.8%

8.1%

¥1,038.7¥17.9

billion48.0%

13¥358.9 billion

2Asia and Oceania

Operating loss

Operating income¥9.3 billion

Japan
Net sales

Europe and Africa
Net sales

North, Central andSouth America
Net sales¥227.7 billion

Japan

Asia

North
America

Asia and Oceania

Asia and Oceania

20.2%

billion

Japan

55.3%

36.6%

Note: Operating income as used here includes eliminations (approximately ¥10.6 billion). Accordingly, these percentages do not represent shares of reported operating income.

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

Ludwigshafen
am Rhein(Germany)
Besigsheim(Germany)

Cincinnati(United States)

St. Charles(United States)

Peekskill(United States)

Fine Chemical
Technical Center—Korea

Gallarta(Spain)Eurolab(Germany)

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

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

Carlstadt(United States)

R&D Sites (Japan)

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

DIC Report 2024

29

Initiatives Aimed at Enhancing Corporate Value by Providing
Value to Customers
Sun Chemical (The Americas and Europe)

We want our customers and employees to “Experience.Transformation” andcontinue striving to enhance both our reputation for excellence in the market
and our business results.
Myron Petruch
President and CEO
Sun Chemical Corporation

Large-area, Organic & Printed Electronics Convention (LOPEC),
held in Munich in March 2024, we showcased our range of
SunSens solutions, which include tailored functional materials
designed specifically for printed electrochemical sensors.
With applications including health diagnostics, environmental
monitoring and agricultural sensing, these materials are
FRQWULEXWLQJWRSURJUHVVLQFULWLFDO¿HOGV■ Driving Transformation into a Provider of Solutions
Sun Chemical, which oversees DIC Group operations in
the Americas and Europe, is transforming itself to provide
global leadership in the development of packaging solutions.
Specifically, we are working across four elements—brandevolution, efficiency, risk mitigation and sustainability—toprovide customers with a balanced perspective across our
packaging and graphics business portfolio. By defining anddifferentiating our brands to generate value, we will drive
productivity to create a competitive advantage across ourservice offerings. Our packaging solutions will mitigate risk bydefending and protecting our customers, and their customers,
while also emphasizing sustainability by helping reduce waste,conserve resources and promote a circular economy.

■ Advancing Sustainability Initiatives
We understand that environmental impacts, including
greenhouse gas emissions, are potentially present at all
points in the supply chain. This is why programs, including the
installation of solar panels, are key to providing a sustainableapproach by reducing energy generated by CO 2-emitting
power generation facilities at production and laboratory sites.
Such programs can reduce the overall environmental impactof, as well as greenhouse gas emissions from, its production
RSHUDWLRQVWRPHHWWKH',&*URXS¶VWDUJHWIRU¿VFDO\HDU
One example of this can be seen at our site in Germany, where
solar panels provide a significant amount of energy used.
Another such location is our site in Carlstadt, in the U.S. stateof New Jersey. Similar projects are also in progress elsewhere
where appropriate, based on site energy consumption and landavailability.

■ Improving Productivity
In the Americas and Europe, our manufacturing group is leading
the cross-functional project that includes product management,
operations, supply chain, R&D, IT and procurement functions
to drive the optimization of all pigments business production
assets. Focused on our site in Germany and encompassing allcolor materials manufacturing sites and processes, this project
concentrates on improvements to drive efficiency and cost
reductions throughout the production chain. By setting targets
for individual product families, this project takes an overall view
RIPDQXIDFWXULQJDQGZLOOLPSURYHWKHRSHUDWLRQDOHI¿FLHQF\DQG
SUR¿WDELOLW\RIWKHFRORUPDWHULDOVEXVLQHVV7KHSURMHFWZLOODOVR
enhance our competitive position in the color materials market
by offering our customers innovative and sustainable solutions.

■ Promoting Strategic Efforts to Expand Regional

Sales of Advanced Materials
An area of new business growth in advanced materials that weare giving particular attention in the Americas and Europe iselectronic materials solutions. Underscoring this, at the recent

DIC Report 2024

30

Initiatives Aimed at Enhancing Corporate Value by Providing
Value to Customers',&$VLD3DFLÀF
We are further increasing added value for customers by promoting solutions-based
PDUNHWLQJDQGLPSURYLQJSURGXFWLRQHI¿FLHQF\WKURXJKWKHFUHDWLRQRIPRWKHUSODQWVPaul Koek
Managing Director',&$VLD3DFL¿F3WH/WG

The primary markets of focus for Ideal Chemi Plast in India
are in the automotive and industrial sectors. With a threefold
increase in production capacity, the company aims to capture
the middle to high-end market segment, which typically relies onimported products. The company’s newly operational production
facility will enable the production of environment-friendly,
regionally tailored products developed at the DIC Group’s
3RO\PHU7HFKQLFDO&HQWHU±$VLD3DFL¿FLQ7KDLODQG

■ Driving Transformation into a Provider of Solutions
DIC Asia Pacific, which is responsible for DIC Group operations
LQWKH$VLD±3DFL¿FUHJLRQLVDFWLYHO\DGYDQFLQJWKHHVWDEOLVKPHQW
of a more structured, process-oriented organizational model. Thisprioritizes shifting to the cost-to-serve model,* aimed at mitigating
LQHI¿FLHQFLHVZLWKLQH[LVWLQJSURFHVVHV7RDFFRPPRGDWHWKLVZH
are also transitioning from a conventional sales and marketing
approach to a solutions-based methodology in this region.

■ Advancing Sustainability Initiatives* The cost-to-serve model seeks to reveal costs across an entire supply chain, including
for procurement, by allocating them to individual businesses, products and customers.
This ensures an accurate understanding of costs for each customer and product, as well as
insights into the factors that increase costs, thereby facilitating effective improvements.

In furtherance of the DIC Group’s objective to achieve a 50%
reduction in CO2 emissions from the fiscal year 2013 level by
fiscal year 2030, we have devised and executed numerous
measures aimed at emissions reduction. These include:■ Improving Productivity$VSDUWRIRXUHIIRUWVWREROVWHUFRVWHI¿FLHQF\ZHKDYHLQLWLDWHGWKH
transition to a regional mother plant framework, which will allow
bulk manufacturing, category buying and advance the cost-to-serve
model. Also known as a “hubbing strategy,” this will see the strategic
placement of mother plants in, for example, India, Indonesia andThailand, to manufacture standard products that are fit-for-purpose
across the region. This will allow us to improve efficiency andproductivity, as well as to drive synergies, across the region.

VZLWFKLQJIURPFRDO¿UHGWRJDV¿UHGERLOHUVDW',&*UDSKLFV¶
production facility in Karawang, Indonesia (pigments);• installing solar panels at sites in Malaysia, Thailand and India,
among others; and,• purchasing CO 2 -free electricity at DIC India’s Noida Plant.
We will continue to promote a variety of measures tailored to theconditions and needs of individual countries and territories tohelp ensure the Group’s ability to meet this target.

,QEDFNRI¿FHRSHUDWLRQVZHKDYHEHJXQLPSOHPHQWLQJWKHFRQFHSWRI³VKDUHGVHUYLFHV´IRUUROHVLQ¿QDQFHDQGDFFRXQWLQJPDQDJHPHQW
7KLVVWUHDPOLQHVSHUWLQHQWSURFHVVHVDQGIRVWHUVJUHDWHUHI¿FLHQF\■ Promoting Strategic Efforts to Expand Regional

Sales of Resins
The coating resins market in South Asia, which centers on India,
primarily consists of small and medium-sized local players,rather than being dominated by major resin manufacturers.
Against this backdrop, in February 2024 DIC subsidiary Ideal
Chemi Plast Private Limited inaugurated a new production
facility in the state of Maharashtra, in mid-western India. This
move aligns with the DIC Group’s strategy for establishingitself as a dominant player in the Asian polymers market bycapitalizing on increased production capacity, an effort in which
Ideal Chemi Plast is playing a key role.

6WDWHRIWKHDUWJDV¿UHGERLOHUVLQ,QGRQHVLDDIC Report 2024

31

Solar panels installed in Malaysia

Initiatives Aimed at Enhancing Corporate Value by Providing
Value to Customers
DIC (China)
By focusing on ensuring a balance between growth and efficiency, we are
striving to increase our value to the DIC Group.
Mao Jianwei
General Manager
DIC (China) Co., Ltd.

In recent years, the importance of improving labor productivity has
penetrated not only at the management level but also across theregion. This is thanks to bold measures such as the merger and closure
RISURGXFWLRQIDFLOLWLHVDVZHOODVWKHUHYLHZRIZRUNÀRZV■ Driving Transformation into a Provider of Solutions
With the objective of transforming DIC (China) Co., Ltd., into a
provider of solutions in Greater China that emphasizes manufacturing
products that sell—i.e., that deliver the value our customers seek—
rather than simply on selling the products we manufacture, we
recognize the importance of securing a position close to end users
from which we can directly respond to social imperatives, allowing us
to offer solutions that address challenges further downstream. We arepromoting initiatives in all three business areas aimed at achieving
this objective. In the packaging & graphic business, we are extending
solutions across supply chains that meet customer needs for cost
reductions and mono-material products. In functional products, weare developing PPS products that respond to market demand byleveraging application technologies cultivated in Japan and Europe,
together with raw materials and production resources in the PRC,
targeting EV manufacturers, which are seeing their operations expand
globally. In color & display, we are studying changes in color trends in
key industries, as well as on the status of international and domestic
regulations pertaining to safety and health with the goal of proposing
new color materials and solutions that satisfy the requirements ofcustomers, enabling us to develop products that are compatible with
the need to help ensure sustainability.

■ Promoting Strategic Efforts to Expand Regional

Sales of Resins
Thanks to steps taken by Guangdong DIC TOD Resins Co., Ltd.
(TOD), acquired in July 2022, we have made considerable progressin implementing the DIC Group’s strategy for establishing itself as adominant player in the Asian polymers market. Of note, in addition toexisting production equipment for solvent-borne resins at its Shaoguan
and Wengyuan plants, TOD began building new production equipment
for waterborne resins that will be completed in fiscal year 2024,
positioning the company to bolster its status as a supplier of resinsfor industrial coatings. Going forward, the DIC Group in the PRC willcontinue to steadily further a variety of measures to expand sales in theeastern and northern parts of the PRC, which we have designated aspriority areas for expanding Group operations in this country.

■ Advancing Sustainability Initiatives
DIC Group companies across Greater China are taking a variety ofsteps to slash CO2 emissions in line with the target set by the Group for
VXFKHPLVVLRQVLQ¿VFDO\HDU',& &KLQD JDWKHUVPRQWKO\GDWD
on energy consumption and continuously monitors CO2 emissions, inaddition to which it regularly publishes information on energy saving
and emissions reductions with the aim of realizing facilities that qualify
IRU*UHHQ2I¿FHGHVLJQDWLRQ■ Improving Productivity
Given the sharp increase in regional labor costs in recent years, improving
labor productivity is crucial to maintaining and/or growing market
competitiveness. As regional headquarters, DIC (China) regularly compiles
data for indicators that illustrate the relationship between work hours andproduction output for individual subsidiaries, as well as for each businessgroup, in the region. This data is provided to relevant management teams,
thereby helping to raise awareness of labor productivity.

In addition, DIC Group companies are pressing ahead with plans to
VZLWFKIURPFRDO¿UHGWRJDV¿UHGERLOHUVIDFLOLWDWLQJDVKLIWIURPLQKRXVH
production using steam to external procurement, as well as to reduce CO2
emissions by replacing biomass boilers with electric hot air heaters, andpromoting energy-saving boiler renovation projects, including implementing
energy-saving modifications to energy-consuming equipment such as
water coolers and electric motors. We are also focusing on enhancing
the operations of solar power generating facilities and encouraging theincreased use of green power, including solar power.

We also plan and implement skills training and competitions to lift
the skill levels of regional employees. At the same time, we conduct
employee engagement surveys and have introduced various
performance-based incentive systems, as well as strive to create
harmonious working environments in an effort to enhance the potentialof employees.

DIC Report 2024

32

Overview of Sustainability
7KH',&*URXSGH¿QHVVXVWDLQDELOLW\LQLWLDWLYHVDVXQGHUWDNLQJV
that capitalize on its businesses to contribute to sustainability
IRUVRFLHW\DQGFRQVHUYDWLRQDQGLPSURYHPHQWRIWKHJOREDOHQYLURQPHQWDVZHOODVWRLWVRZQVXVWDLQDEOHJURZWK,QOLQH
with its basic sustainability policy, the Group promotes a variety
RIVXVWDLQDELOLW\LQLWLDWLYHVZRUOGZLGHDQGZRUNVWRPDLQWDLQDQDFFXUDWHJUDVSRIVRFLDOLPSHUDWLYHVSHUWDLQLQJWRHQYLURQPHQWDOVRFLDODQGJRYHUQDQFH (6* UHODWHGLVVXHV,Q¿VFDO\HDU
',&HVWDEOLVKHGWKH(6*8QLWZLWKWKHDLPRIIXUWKHUH[SDQGLQJ*URXS (6* LQLWLDWLYHV ZRUOGZLGH (IIHFWLYH IURP  WKHCompany also discloses sustainability information in its annual
VHFXULWLHVUHSRUWZKLFKLWLVOHJDOO\UHTXLUHGWR¿OHLQ-DSDQ7KH
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■ Sustainability Framework and Themes○ Themes

account its responsibility to ensure proper product stewardship,
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Sustainable technology and product development
New value creation
Digital transformation (DX)Harmony with the community and social contributions
Communication with stakeholders

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

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

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labor forces, as well as to promote sustainability initiatives that
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In line with its basic sustainability policy, the DIC Group has
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33

Overview of Sustainability

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■ System for Promoting Sustainability Initiatives
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and approves annual sustainability activity plans based on the
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versions of the basic sustainability policy and the distribution thereof
DFURVVWKH*URXSWRHQVXUHDZDUHQHVVBoard of Directors
President and CEO

Sustainability Committee◎ Deliberates medium-term policies and key sustainability-related matters◎ Approves Groupwide targets and activity plans

Risk Management Working Group【Units/divisions/departments in charge】
Product divisions, New Business Development Headquarters,
Production Management Unit,Technical Management Unit,
R&D Management Unit, headquarters’ administrative units,sites,
Group companies in Japan and in other countries and territories◎ Evaluates risk management initiatives

Sustainability Working Group◎ Execution of sustainability action plans◎ Evaluates sustainability initiatives

Sustainability Committee
secretariat◎ Promotes sustainability themes and supports sustainability initiatives◎ Responds to customer requests (conducts surveys and training sessions)◎ Disseminates sustainability-related information (prepares the DIC Report, etc.)◎ Advances awareness of sustainability (in-house training, the DIC Group portal site, etc.)◎ Supports the activities of the Sustainability Committee and the Sustainability Working Group◎ Deals with external assessment organizations■ The DIC Sustainability Index■ Responding to a Circular Economy

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34

Overview of Sustainability

The DIC Group’s “5Rs” Framework
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The DIC Group’s Circular Economy Message
The DIC Group contributes to the realization of a circular economy by
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to deploy sustainability initiatives across the Group and collaborates
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VXVWDLQDELOLW\IURPLWVSRVLWLRQDWWKHIRUHIURQWRILQQRYDWLRQ■ Ensuring DIC Remains a Globally Trusted

Corporate Citizen with a Proud Reputation○ Leveraging its Position as a Global Manufacturer of Fine

Chemicals to Support the UNGC
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The DIC Group Code of Business Conduct conforms with the
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Anti-corruption

DIC Report 2024

35

3ULQFLSOH

Businesses should support and respect the protection of
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Businesses should uphold the freedom of association and effective
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the elimination of discrimination in respect of
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Principle 7

Businesses should support a precautionary approach to
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3ULQFLSOHHQFRXUDJHWKHGHYHORSPHQWDQGGLIIXVLRQRIHQYLURQPHQWDOO\IULHQGO\WHFKQRORJLHV3ULQFLSOH%XVLQHVVHVVKRXOGZRUNDJDLQVWFRUUXSWLRQLQDOOLWVIRUPVLQFOXGLQJH[WRUWLRQDQGEULEHU\A Message from the Head of the ESG Unit

Guided by our longstanding vision statement, we will continue
advancing determined efforts to help realize a sustainable society.
Kuniko Torayama([HFXWLYH2I¿FHU
Head of ESG Unit

The DIC Group has embarked on the third year of the DIC Vision 2030 long-term
management plan. The plan’s sustainability strategies, one of its most importantcomponents, have been modified and upgraded with our recent leadershiptransition from former president and CEO Kaoru Ino to his successor Takashi
Ikeda. While certain aspects are still under consideration, we have begun to act
on several key initiatives in line with this strategy, which are outlined below.

■ Responding to a Circular Economy
One of our core sustainability strategies is to respond to a circular economy. To
this end, we intend to actively expand our selection of products incorporating
environmental design and the concept of circularity. Recognizing an effective
sustainability program as essential to long-term growth, we will be unwavering inour determination to promote related initiatives.

■ Returning to the Origins of Our Sustainability Program to■ Evolving as a Group that Leverages the Diversity of

Ensure the Achievement of Long-Term Targets

Employees in More than 60 Countries and Territories

It is important to understand that our sustainability program did not just comeinto being in recent years in tandem with trendy concepts such as “ESG” and“sustainable management,” but actually dates back to the management vision
set forth in The DIC Way, an articulation of our management philosophy:“We improve the human condition by safely delivering color and comfort forsustainable prosperity—Color & Comfort.” The DIC Way was adopted in 2008,
and while minor changes have been made along the way this vision statement
remains essentially unchanged at its core and continues to guide us in all we
do. Particularly key is our belief that for a company to be sustainable, it must
support the growth and evolution of society.

The DIC Group is headquartered in Japan, a country that unfortunately
continues to struggle with the challenge of empowering women. Accordingly,
the advancement of diversity is an area upon which I personally haveplaced a particular emphasis. Of particular note, thanks to ambitious
steps such as the introduction of a training program designed to transformthe mindsets of female employees and interviews with female executive
officers, we achieved the target we had set for the percentage of DIC
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years ahead of schedule. As a consequence, the Company was selectedunder the Ministry of Economy, Trade and Industry’s Next Nadeshiko:Companies Supporting Dual-career and Co-parenting program for fiscal
year 2024. This program recognizes companies exhibiting excellence inassisting all employees, both male and female, to balance job and childcare
responsibilities. While this is indeed a milestone and something of which I
am extremely proud, it is important that we do not rest on our laurels andcontinue striving to create working environments that truly enhance theability of employees to continue in their careers. I see my next challenge as
being to more effectively leverage the diversity of DIC Group employees in
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play a key role in the continued evolution of the entire Group.

In the revised version of DIC Vision 2030 announced in fiscal year 2024, ournew president and CEO reiterated that the long-term targets of our sustainability
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is, net zero CO2 emissions, remain in place despite the current harsh operating
environment. He has also promised to prioritize selected initiatives based on a newroadmap, to be drawn up in the near future. In response, the ESG Unit will explore
various measures, including shifting to green power, with the goal of driving
progress toward our preliminary target, which is to reduce CO2 emissions (ScopeDQG E\IURPWKH¿VFDO\HDUOHYHOE\¿VFDO\HDU7KHHOHFWULF
SRZHUQHHGVRIDOO',&*URXSFRPSDQLHVLQ-DSDQDUHFXUUHQWO\VDWLV¿HGHQWLUHO\by green power, so we will now turn our attention to other regions. The global DIC
Group operates in more than 60 countries and territories, and we are currently
exploring various approaches to the purchase of green power that take into
account regional characteristics, as well as scale and scheduling considerations,
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we will seek to drive initiatives aimed at ensuring we meet these targets and at thesame time remain mindful of the importance of cost-effectiveness.

There remain many ESG-related challenges that the DIC Group must
address as a cohesive entity going forward. We pledge to continue
to advance and improve our sustainability initiatives to ensure ourability to achieve growth over the long term and provide value to ourmany stakeholders.

DIC Report 2024

36

New Value Creation

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

Create businesses with thepotential to become newpillars.

SDGs Goals 8, 9 and 11

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

Goals for fiscal year 2023

Achievements in fiscal year 2023

Designate business areas
where ESH-related issues/socialchanges intersect with DIC’s
core competencies as priorities
and establish next-generation
businesses that both maximize
corporate profits and amplifysocial value.

Efforts centered on priority businessareas. In sustainable energy, sales
channels were strengthened for apreviously launched anode binder for
next-generation LiBs. In healthcare,biotechnology-related capabilities
were deepened through collaboration
with diverse start-ups. In sustainable
packaging, a newly launched deinked
recycled plastic was successfullycommercialized.

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

The promotion of open innovationin areas that will contribute to asociety that is increasingly green,
including a project in the area ofcarbon recycling that was selected
for sponsorship under the NEDOadministered Green Innovation Fund,helped advance the exploration ofsustainable biochemicals.

Evaluation

Goals for fiscal year 2024★★

Having designated business areas
where ESH-related issues/socialchanges intersect with DIC’s corecompetencies as priorities, identify
areas that are expected to becommercially viable and profitable
and strive to swiftly launch nextgeneration businesses.

★★★

Actively use external resources,
including through CVC andadvanced research in collaboration
with academic institutions, as well
as work with other companies withthe aim of driving the creation of
new businesses and products.

to significantly accelerate the transition to a digital society andfundamentally altered consumer behavior. Recent years have alsoheightened corporate awareness of the importance of achievingcarbon neutrality by 2050. Amid these paradigm shifts, the DIC*URXSKDVLGHQWL¿HG¿YHSULRULW\EXVLQHVVDUHDVDWWKHLQWHUVHFWLRQ
of ESH-related issues/social changes and its core competencies:
Sustainable energy, healthcare, smart living, color science andsustainable packaging.

■ Creating New Value
The DIC Group’s vision statement expresses its goals of improving thehuman condition to realize sustainable prosperity. Seeing its mission as
being to achieve sustainable growth for itself and society, the Group ispursuing various initiatives aimed at helping realize carbon neutrality,
in line with its basic policy of providing greater social benefits thatenhance shareholder value and achieving sustainable growth for bothsociety and the DIC Group.

Over the short term, the DIC Group will concentrate management
resources on smart living, which focuses on chemitronics, with theaim of swiftly creating new businesses. The R&D Management
Unit will step up its efforts in the smart living area by leveraging
new design technologies for inorganic materials and biomaterials,
among others, as well as its polymer design and organic
materials design technologies. The New Business Development
Headquarters is charged with transferring those new businessseeds thus developed that are seen as likely to yield synergies tothe business groups, reinforcing collaboration with the businessgroups to realize new businesses with the potential to quickly
DFKLHYHYLDELOLW\DQGSUR¿WDELOLW\6HHNLQJWRIXO¿OOLWVPLVVLRQWKH',&*URXSLVH[SDQGLQJEXVLQHVVHVin growth markets and creating new businesses to promote thetransformation of its business portfolio, guided by DIC Vision 2030.
Through these efforts, the Group strives to contribute to the realizationof a society that is increasingly green. digital and QOL-oriented.
In light of recent changes in the business environment, the DIC Groupwill review those themes for which it recognizes that there may bedifficulties in achieving original targets. For short- to medium-term
themes, the Group will strengthen collaboration among businessgroups, while for medium- to long-term themes it will emphasize
HIIHFWLYHWLPHPDQDJHPHQWZLWKFOHDUO\GH¿QHGWDUJHWVDQGPLOHVWRQHVThe Group will also continue working to create new value that will drive
its growth going forward.

Next-generation and growth businesses are highly competitive andevolve rapidly. In addition to strengthening internal cooperation topromote the commercialization of new products in such areas, the DIC
Group will make active use of external resources by promoting open
innovation by, among others, leveraging corporate venture capital(CVC) and connections in other industries, investing in start-ups, andcollaborating with academic institutions and other companies.

■ Portfolio Transformation
The COVID-19 pandemic created a new normal that is expected

DIC Report 2024

37

New Value Creation

by developing innovative technologies that help address social
imperatives.

❶ Commencement of Efforts to Develop Innovative Biomanufacturing

Technologies for Engineering Hydrogen-Oxidizing Bacteria that
Use CO2 and H2 as Feedstocks
As part of its effort to achieve carbon neutrality, DIC is participating
as one of six partners in a project focused on the development ofinnovative biomanufacturing technologies for engineering hydrogenoxidizing bacteria that utilize CO2 and H2 as feedstocks.This project
was selected for sponsorship under the Green Innovation Fund,
administered by Japan’s New Energy and Industrial Technology
Development Organization (NEDO), in the “Promotion of Carbon
Recycling using CO2 from Biomanufacturing Technology as a Raw
Material” category.

3K\VLFDOSURSHUWLHVRIHSR[\UHVLQPROGHGSURGXFWVDIWHUEHLQJUHPROGHG¿YHWLPHVHydrogen-oxidizing bacteria have one of the fastest CO2¿[DWLRQUDWHV
of any microorganism.DIC’s role entails developing and conducting
demonstration tests for optimal production processes using hydrogenoxidizing bacteria that have been genetically engineered to leverage
its outstanding CO2 fixation capacity to facilitate the highly efficient
production of biochemicals. These biochemicals are used as raw
materials for a variety of everyday applications, including plastics, inksand coatings, textiles and cosmetics.
Additionally, bacterial residues from the production process can beused as an alternative protein source for feedstock,demand for which
has been increasing in recent years.These new biomanufacturing
technologies will thus simultaneously further raise the decarbonization
value of businesses and contribute to the resolution of feedstockrelated issues.DIC and its partners look forward to contributing to
the achievement of carbon neutrality by commercializing sustainablebiochemicals engineering using hydrogen-oxidizing bacteria.

❸ Development of Nanosized MoS2 in Sheet Form that Delivers

an Excellent Lubricating Performance
Friction between the sliding surfaces of moving parts causes
energy waste and wear that shortens the useful life of cars,
trucks and other machines. Lubricants are used to reduce this
IULFWLRQDQGZHDU0RO\EGHQXPGLVXO¿GH 0R62) is a commonlyused solid lubricant because its crystal structure allows excellent
cleavage. However, most commercially available lubricants havelarge micrometer-sized MoS2.Disadvantages include unstabledispersions in which large particles can settle in the lubricant
DQGGLI¿FXOW\RIXVHEHWZHHQWLJKWO\¿WWLQJSDUWVUsing a unique production process, DIC succeeded indeveloping a nanosized MoS2 in sheet form with an average
particle diameter of approximately 250 nanometers and aparticle thickness of approximately 10 nanometers. Use of thisnew additive in commercially available engine oils or lubricating
JUHDVHV\LHOGVVLJQL¿FDQWDGYDQWDJHVLQFOXGLQJDFRQVLVWHQWO\VWDEOHGLVSHUVLRQIXUWKHUUHGXFWLRQLQWKHFRHI¿FLHQWRIG\QDPLF
friction and decrease in damage to sliding surfaces on test
samples.DIC anticipates leveraging the unique format andperformance features of this new nanosized MoS2 to encourage
its adoption for applications in such fields as energy andelectronics.

❷ Development of Essential Technology for a Ground-Breaking

Epoxy Resin Curing AgentWith the issue of waste plastics being an increasingly urgent
social imperative in recent years, efforts to step up the recyclingof thermoplastic products, including polyethylene terephthalate(PET) bottles, is accelerating around the world. This is possible
because of the heat-deformable nature of thermoplastics.
However, epoxy resins and other thermosetting plastics,
which are favored for applications requiring durability and heat
resistance—such as automobiles and electrical appliances—are
GLI¿FXOWWRUHF\FOHEHFDXVHWKH\KDUGHQZKHQKHDWHG

Looking forward to 2030, DIC is working to establish inorganic
materials design as a new basic technology for the DIC Group.
Nanosized MoS2 is one of the first achievements in this area.
The Company’s efforts to contribute to a sustainable society willcontinue to encompass helping to save energy and extend thelifespan of machines of many types.

DIC has succeeded in developing an essential technology fora ground-breaking epoxy resin curing agent that preserves theoutstanding conventional qualities of epoxy resins, including
excellent heat resistance, durability, adhesiveness, mechanicalstrength and electrical insulation, while also facilitating
remolding. The Company’s research has confirmed that thisnew technology will facilitate the production of a curing agent
that maintains a consistent recovery rate of over 90% for heat
resistance and mechanical strength even after a heat-cured
PROGHGSURGXFWLVUHF\FOHGLHFUXVKHGDQGWKHQUHPROGHG¿YH
times.
DIC aims to advance to the verification stage for this new
basic technology by 2027. Looking ahead, the Company will
accelerate the expansion of its lineup of sustainable products

Benefits of adding nanosized MoS2 to lubricating grease(Observation of damage to sliding surfaces on test samples)

DIC Report 2024

38

New Value Creation❹ Expansion of the TrinDy DT Series of 3D Printing Materials for Dental

Appliances
Technological innovations in printing processes, an increasingly diverse
UDQJHRIPDWHULDOVDQGDGYDQFHVLQSHUIRUPDQFHKDYHGULYHQVLJQL¿FDQW
growth in the 3D printing market, with applications expanding from thecreation of prototypes and mock-ups, for which it was originally used,
to include the production of practical and finished products for the
automotive, aerospace, medical and apparel industries.3D printing is
also attracting increased attention from a sustainability perspective for its
DELOLW\WRVLJQL¿FDQWO\UHGXFHZDVWHDQG&22 emissions attributable to thetransport of products by facilitating a shift to on-site production.
DIC has leveraged its distinctive polymer design technology, as well as
its technologies for designing and formulating composites, to expand
its TrinDy line of 3D printing materials. Recent achievements include
the TrinDy DT series of stereoscopic 3D printer materials that facilitate
the printing of dental appliances that are closer in terms of precision
produced by dental technicians, in addition to being quicker to produce.
In 2019, the TrinDy DT series earned certification under ISO 13485,

TOPICS

the International Organization for Standardization’s standard for quality
management systems for medical devices. Since then, DIC has
expanded its array of products for use in orthodontic appliances anddenture bases, earning high marks from dentists, dental clinics andlaboratories.
DIC recently began providing a new 3D printing material that holds
promise for use in various applications related to denture bases.This new
material boasts low water absorption and excellent stability over time
when in the oral cavity. This enables it to deliver an excellent balance ofstrength and toughness, as well as compatibility with materials commonlyused in dental prosthesis, including cold-curing resins and orthodontic
wax,and is biologically safe.
DIC will continue to provide 3D printing materials for dental applications
with the goal of contributing to advances in digital dentistry.The Company
will work to further cultivate next-generation and growth business,emphasizing the priority business area it has dubbed “smart living,” as
set forth in its DIC Vision 2030 long-term management plan.

DIC Invests in the UMI-Administered UMI III Fund

DIC recently invested in UMI III Investment Limited Partnership, known
generally as the UMI III Fund, which is administered by Universal
Materials Incubator Co., Ltd. (UMI). This is the Company’s second
investment in a UMI fund and follows its investment in UMI I Investment
Limited Partnership (the UMI I Fund) in 2016.

a framework that is expected to encourage open innovation thattranscends industry boundaries.
In DIC Vision 2030, the DIC Group seeks to contribute to a societythat is increasingly green, digital and QOL-oriented. The Group isfostering new basic technologies in such areas as inorganic materials
design and biomaterials design, and combining these with its exiting
basic technologies to create new businesses that go beyond the
SURYLVLRQRI¿QHFKHPLFDOVDVZHOODVWRGHYHORSQHZSURGXFWV7KH
Group will continue to make use of open innovation to broaden its
technology platform and advance initiatives aimed at swiftly creatingnext-generation and growth businesses.

80,LVDYHQWXUHFDSLWDO¿UPVSHFLDOL]LQJLQWKHPDWHULDOVDQGFKHPLFDOV
industries that seeks to strengthen Japan’s technological capabilities
by fostering outstanding materials and chemicals companies andcultivating an industry structure that can compete in the global arena.
The UMI III Fund, together with the simultaneously established
UMI III Decarbonization Investment Limited Partnership (the UMI III
Decarbonization Fund), will invest in the decarbonization area, wherematerials and chemicals technologies promise key solutions, creating

https://www.umi.co.jp/

NEWS from Sun ChemicalNews from Sun Chemical
The PigmentViewer App: Sun Chemical Enables Customers to “Experience. Transformation.” with Cutting-Edge Color Digitalization

Powered by Sun Chemical’s digital image rendering
technology, the PigmentViewer app allows users to study
effect and color pigments in a photorealistic format fromvarious angles, just like viewing a physical color sample
under a light source.

Overview and Features

The PigmentViewer app transforms the smartphone screen
into a virtual color test panel that allows users to view andcompare color pigment selections and the appearanceof effect pigments. Leveraging cutting-edge digitalization
technology and the rotational sensing of modern mobile
devices, the app makes it possible to simulate the coloristic
behavior of effect pigments when seen from different angles.

DIC Report 2024

39

New Value Creation

Development Process

Another goal of the development process was to create an app
that could be integrated with Sun Chemical’s Pigment Finder
digital pigment catalog. This enables users to access not only
product-related documents but also color and technical data.

Sun Chemical’s goal in developing the PigmentViewer app
is to facilitate the virtual digital rendering of effect and color
pigments as an element of its vision of communicating color
using digital tools. The development team set out to create aphotorealistic format that allows evaluation from various angles
under a light source, just like with a physical color sample.
One of the objectives of facilitating virtual color evaluation was
to avoid having to produce coated or printed physical color
samples. This also eliminates the need to dispose of color
samples that or no longer needed or color materials that havebeen discontinued. The online color pigment catalog can be
updated easily and continuously.
User Reactions

pigment color and chemical composition, make it simple for
XVHUVWR¿QGWKHSURGXFWWKH\DUHORRNLQJIRUDVZHOODVWRYLHZ
selected pigments side by side to compare different color andtechnical properties. The ease of use also allows the users that
Sun Chemical is targeting, including novices, to view detailed
specialized data, including color position, hue, chromacity andUHÀHFWDQFHFXUYHFor users, a major advantage of the PigmentViewer app isthat they can easily reference virtual pigment color samples
on the go. In addition to color evaluation, the app has gained
popularity for allowing easy online access to comprehensive
product catalogs and various related materials from asmartphone.
Users also appreciate the ease of use. Filter options, including

Outlookversion of the PigmentViewer app. This will expand the app
into a service that can be accessed easily from a wide range
of devices, rather than being limited to smartphones. Users will
also be able to download app content to a computer for useRIÀLQH

Going forward, Sun Chemical will take steps to further integrate
the PigmentViewer app with Pigment Finder.The company willcapitalize on existing technological advantages to adjust theapp by enabling users to view its entire portfolio of pigments or
selected product groups as a color fan. In addition, informationfrom Sun Chemical’s pigments formulation library on, among
others, trending colors, will be incorporated and the app
PRGL¿HGWRIDFLOLWDWHDFFHVVThe development team is also currently working on a desktop

Google PlayDIC Report 2024

40

App Store

6XVWDLQDEOH7HFKQRORJ\DQG3URGXFW'HYHORSPHQW

Proposing Solutions that Leverage Core Technologies*RDOVDQG$FKLHYHPHQWVRI0DMRU,QLWLDWLYHVObjectives of initiatives

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

Accelerate efforts
to develop productsthat contribute tosustainability.

SDGs Goals 9 and 12

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

Goals for fiscal year 2023

$FKLHYHPHQWVLQILVFDO\HDU

・ Accelerate collaboration among global

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

R&D. The new Tape Technical Center–
China was established.
• The active use of DS shorteneddevelopment times, while collaboration withindustrial concerns, government bodies
and academic institutions accelerated
development.

Accelerate efforts to develop
products that contribute tosustainability.

Efforts led to the launch of multiple new
products, including waterborne polyurethane
resins for use in the production of synthetic
leather with a performance comparable tothat of solvent-based offerings, PFAS-freesurfactants and barrier coatings made withnaturally derived raw materials.

Evaluation

Goals for fiscal year 2024
・ Accelerate collaboration among global

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

★★

Accelerate efforts to develop
products that contribute tosustainability.

★★

also actively promotes the use of AI and MI, as well as the training of AI
specialists.

■ Achieving Sustainable GrowthWith the aim of realizing its vision statement, “We improve the humancondition by safely delivering color and comfort for sustainable prosperity—
Color & Comfort,” the DIC Group strives to add depth to its existing basic
technologies in the areas of optics and color, organic materials design,
polymer design and dispersion, and to foster new technologies in theareas of inorganic materials design and biomaterials design. The GroupTo build a portfolio of next-generation products and new technologies anddrive sustainable growth, the DIC Group continues working to integrate
Groupwide technological resources, as well as promotes open innovation
by, among others, collaborating with industrial concerns, government
bodies and academic institutions and making use of CVC.

Existing Basic Technologies

Organic
materials
designOptics andcolor

Polymer
高分子
design設計

Biomaterials
designInorganic
materials
designBiomaterials
designDispersion

Inorganic
materials
designOptics andcolor

Common basic
technologies

Dispersion

Computational science(AI and MI), Analysis

分散

Applicability
assessment

Polymer
designAI and MI
Applicability
assessment

Organic
materials
design(Coating, printing, molding)

The DIC Group is accelerating business portfolio transformation by adding new
inorganic materials design and biomaterials design technologies to its existing fivebasic technologies and by promoting the use of AI and MI.

(Coating,
printing,
molding)

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

technological resources to the development of such products.

■ 6SHFLÀF,QLWLDWLYHVDQG$FKLHYHPHQWV■ 6XVWDLQDEOH3DFNDJLQJThe DIC Group is advancing the development and use of clean technologies.
This includes promoting the development of materials for use in such areas
as sustainable packaging, color science and smart living that improve theenvironmental performance of the products in which they are used, making
the use of DIC products a way customers can contribute to addressing global
environmental issues. In Japan, the Group devotes approximately 52% of its

In the area of printing inks, DIC launched a new highly sensitive UVcurable ink that is compatible with light-emitting diodes (LEDs) anddelivers improved printability. New heat sealants included a water-based
offering for pharmaceutical press-through packaging (PTP) film and a
product that exhibits stable strength at low temperatures, commonly

DIC Report 2024

41

6XVWDLQDEOH7HFKQRORJ\DQG3URGXFW'HYHORSPHQW■ $*OREDO5 '&RQÀJXUDWLRQWKDW8QGHUSLQV

used for polyvinyl chloride (PVC) container film. The Company alsobegan rolling out an overprint varnish that delivers the same level of heat
UHVLVWDQFHDVFRQYHQWLRQDOSURGXFWVGHVSLWHFRQWDLQLQJQRQLWUL¿HGFRWWRQRU
formaldehyde.

3URGXFW'HYHORSPHQW
The DIC Group’s R&D organization in Japan comprises the TechnicalManagement Unit, which is responsible for product development and
PRGL¿FDWLRQFRQQHFWHGGLUHFWO\WREXVLQHVVHV',&*UDSKLFV&RUSRUDWLRQ¶VTechnical Division; the R&D Management Unit, which is responsible
for adding depth to existing basic technologies; and the New Business
Development Headquarters, which is charged with creating strategic new
businesses and commercializing business units’ next-generation products.
Overseas, the Group’s R&D is conducted by the Sun Chemical Group’s
research centers in the United States, the United Kingdom and Germany;
Qingdao DIC Finechemicals Co., Ltd., in the PRC; printing inks technicalcenters and polymer technical centers in the PRC and the Asia–Pacificregion; the Solid Compound Technical Center–Asia Pacific; the Pigment
7HFKQLFDO&HQWHU±$VLD3DFL¿FWKH',&(DUWKULVH$OJDH5HVHDUFK&HQWHULQ
the United States; the Tape Technical Center–China; and the 3D Printing
Materials Laboratory–Korea. These facilities are working as one to promote
the global development of products and technologies.

,QHDV\SHHO¿OPV',&H[SDQGHGLWVWUDFNUHFRUGLQSURGXFWVWKDWFRQWULEXWH
WRWKHUHGXFWLRQRIIRRGORVVLQFOXGLQJVHDODQW¿OPVIRUWKHOLGVRISUHSDUHG
food containers used by convenience stores and molded containers forhome-delivery frozen lunch boxes, as well as developed a film for thelids of highly heat-resistant crystalline polyethylene terephthalate (CPET)
containers for high-temperature cooking.
Guided by its own sustainability strategy, the Sun Chemical Group promotes
the development of inks, coatings and adhesives that accommodate anincreasing concern for the recycling of packaging materials. These include
barrier coatings, release agents and heat sealants made with naturally
derived raw materials that comply with the EU’s Single-Use Plastics
Directive. Sun Chemical also developed a new water-based ink for printing
on film used for retortable pouches that delivers significantly improved
SULQWDELOLW\DQGDZDWHUEDVHGLQNWKDWHQDEOHVKLJKVSHHGÀH[RSULQWLQJRQ
shrink labels.

■ 3URGXFW6WHZDUGVKLSThe DIC Group views product stewardship as a key aspect of its
operations. The Group has established a global product stewardship teamfor printing inks, adhesives and other products used in food packaging,which it supplies to customers around the world. The team sharesinformation on regulations and relevant topics from various markets, aswell as advances awareness thereof and provides training. Knowledge
thus gained is incorporated into product design and is used to produce
compliance certificates across the supply chain, which are sought bycustomers worldwide.

■ &RORU6FLHQFH
Efforts in the area of organic pigments continued to focus on thedevelopment of pigments for color filters used in displays. DIC also
succeeded in developing new pigments for jet inks. Highlights in othercountries and territories include the Sun Chemical Group’s launch of aseries of small particle–size effect pigments with high image clarity andoutstanding brightness, which were developed to expand the color space
for automotive stylings and other coating applications. In addition, the Sun
Chemical Group developed a line of easily dispersible pigments for waterbased coatings that do not contain biocides, including preservatives andantifungal agents, as well as naturally derived colorants with antioxidant
properties that are suitable for makeup and skincare products.

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

■ 6PDUW/LYLQJ
R&D in synthetic resins led to the development of low-dielectricmaterials for electronic circuit boards for next-generation 5G/6G-enabledcommunications devices. DIC also launched an environment-friendly
waterborne polyurethane resin for use in the production of synthetic leather
that will help reduce odors, greenhouse gas emissions and volatile organic
compounds (VOCs) associated with finished products, as well as being
FRPSDUDEOHLQHI¿FDF\WRVROYHQWEDVHGUHVLQ,QWKHDUHDRIVXUIDFWDQWVthe Company succeeded in developing a series of environment-friendly
perfluoroalkyl and polyfluoroalkyl substance (PFAS)-free products thatare suitable alternatives to fluorosurfactants for diverse applications,
including displays, semiconductors, automobiles and coatings. Newly
developed additives include a series of algae oil–based sulfurized productsthat are more environment friendly than conventional offerings and help
lower friction and increase the oxidation stability of lubricant oils, which
are expected to see particularly high demand for use in the productionof automobiles (notably electric vehicles (EVs)) and metal processing. In
industrial adhesive tapes, the Company expanded its lineup of toluene-freetapes that boast high removability and peel off without leaving adhesive
residue and commenced mass production of tapes that can be peeled off
using UV light.

■ ,QWHOOHFWXDO3URSHUW\○ Basic Approach

To achieve the goals of DIC Vision 2030, the DIC Group is promoting
Value Transformation and shifting its focus to promising business areas bycapitalizing on its intellectual property—a key management resource—in amanner that conforms with its business strategies.
:LWKWKHDLPRIIXO¿OOLQJPDQDJHPHQWVWUDWHJLHVDQGLPSURYLQJFRUSRUDWH
value, the DIC Group will work to create a framework for the effective use of
LWVLQWDQJLEOHDVVHWVWKDWLVZRUWK\RIVWDNHKROGHUFRQ¿GHQFH7KHEXLOGLQJ
blocks of this framework include strategies for building a competitive
intellectual property portfolio, an intellectual property risk management
system and technology intelligence (TI) tools.
○ 6WUDWHJLHVIRU%XLOGLQJD&RPSHWLWLYH,QWHOOHFWXDO3URSHUW\3RUWIROLR

In advancing Value Transformation, the DIC Group will focus its allocation ofmanagement resources in chemitronics and other smart living businesses
that are expected to generate profits swiftly and reliably and will build an

DIC Report 2024

42

6XVWDLQDEOH7HFKQRORJ\DQG3URGXFW'HYHORSPHQW

implemented to those with a high probability of success and help prioritize
the balanced allocation of management resources. In particular, in the earlystages of promoting a new business or technological development theme,
providing core information, including a basic intellectual property landscapedetailing competitors, customers and risks, thereby making it possible tochoose those themes that are most likely to be successful. The Company
has also established a process for confirming whether efforts to realize
new businesses based on these themes proceed appropriately based on
intelligence derived at the technology development, commercialization andmass production stages. This framework ensures the Company’s ability toeffectively leverage TI across its businesses.

intellectual property portfolio that gives it a competitive advantage in this area.
To this end, the Group will use a method to analyze the external environment
surrounding intellectual property and envisage a network of top patentapplicants in a particular area to ascertain its competitive position in that
DUHDDQGLGHQWLI\FRPSHWLWRUV 3OHDVHVHH¿JXUH 7KLVPDNHVLWSRVVLEOH
to promote a portfolio building strategy designed to secure a competitive
advantage in unique technological spheres in which there are no competitors.
)LJXUH(QYLVDJLQJD1HWZRUNRI3DWHQW$SSOLFDQWVLQD3DUWLFXODU$UHD)LJXUH7KH,QWHOOHFWXDO3URSHUW\&HQWHU·V7,)XQFWLRQ

As an analysis of the potential for realizing new applications for its coretechnologies internally, the DIC Group can subdivide its technologies andexplore applications based on a wide range of information, including intellectual
SURSHUW\±UHODWHGLQIRUPDWLRQIRUHDFKHOHPHQWWKHUHRI 3OHDVHVHH¿JXUHThe DIC Group’s patent strategy is highly evaluated by external observers,
underscored by its position in the ranking of companies in the chemicals industry
in Japan in terms of patent assets owned conducted by Patent Result Co., Ltd.,and the global ranking of patent value growth conducted by LexisNexis.

○ ,QWHOOHFWXDO3URSHUW\5LVN0DQDJHPHQW6\VWHP

In line with its basic policy on compliance, the DIC Group conducts
exhaustive patent clearance searches in new markets and for new
technologies, promoting contract management, meticulously managing
FRQ¿GHQWLDOLQIRUPDWLRQDQGDGYDQFLQJLQLWLDWLYHVWRSUHYHQWFRXQWHUIHLWLQJ
patent infringement and the use of similar trademarks. The Group alsoestablished the Risk Management Working Group, a subordinate entityof the Sustainability Committee, as part of its effort to strengthen its
comprehensive framework for risk management, which also includes
minimizing intellectual property risks.

)LJXUH([SORULQJWKH3RWHQWLDOIRU5HDOL]LQJ1HZ$SSOLFDWLRQV
IRU&RUH7HFKQRORJLHVThe IP Portfolio Committee, which seeks to ensure the DIC Group’s
intellectual property portfolio aligns with its businesses, and the Patent
Reward Council, which deliberates on the use of patents as an incentive
for technological development, are the Group’s principal bodies forthe management of intellectual property. This, combined with effective
management supervision that facilitates the promotion of intellectual
property–related initiatives that respond to changes in the operating
environment and appropriate disclosure regarding investments in intangible
DVVHWVDQGRWKHUPDWWHUVKDVHQDEOHGWKH*URXSWRUHDOL]HDFRQ¿JXUDWLRQfor leveraging its intangible assets that has earned the trust of stakeholders.

○ 7,7RROVTI is value-added intelligence obtained by analyzing intellectual property
information and diverse technical information, and combining it withbusiness information as necessary, to facilitate the most competentdecision making. By extending TI to individual business groups and creating
a business promotion–related TI function within its Intellectual Property
Center, the DIC Group makes it possible to narrow down measures

VOICE:HGHYHORSHGDQHZVHULHVRIKLJKSHUIRUPDQFH3)$6IUHHVXUIDFWDQWVIRUSUHFLVLRQFRDWLQJVWKDWKDYHDUHGXFHGHQYLURQPHQWDOLPSDFW,QUHFHQW\HDUVFRQFHUQVUHJDUGLQJWKHDFFXPXODWLRQRI3)$6VDODUJHFODVVRIV\QWKHWLFRUJDQRÀXRULQHFKHPLFDOVLQWKHHQYLURQPHQWKDVSURPSWHG
increased interest in PFAS-free products. The DIC Group was early to embark on the development of PFAS-free alternatives to a variety of products,
many of which it has succeeded in commercializing, earning consistently high marks from customers. A particularly notable accomplishment is ourgroundbreaking PFAS-free surfactants, which deliver both outstanding surface smoothness and excellent recoatability, a combination generally
FRQVLGHUHGGLI¿FXOWWRDFKLHYH,QDGGLWLRQWKHIDFWWKDWWKH\DUH3)$6IUHHZHH[SHFWWKHVHQHZVXUIDFWDQWVWRDWWUDFWDWWHQWLRQDVDVXVWDLQDEOHRSWLRQ
that does not require precoating. Looking ahead, we will continue working to develop products that deliver new value to society.
Chemitronics Technical Group 2, Chemitronics Technical Division, Chemitronics Business Division, DIC Corporation

DIC Report 2024

43

Sawako Doi

Digital Transformation (DX)

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

Goals for fiscal year 2023

Achievements in fiscal year 2023

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

The following key DX initiatives were advanced across multiple
business units:
・Construction of digital tools designed to facilitate the sharing of
information across departments and leverage such information
to address customers’ needs began.
・Verification of the smart factory concept, which seeks to resolve
issues faced by multiple production facilities, was completed.
・Efforts to optimize supply chain procedures through collaboration
between sales and production teams commenced.

Introduce digital initiatives that support
the exploration of business modeltransformation.

A variety of key initiatives were advanced in relation to, among
others, digital marketing, smart production facilities, the use of MI*
and AI in product development, and the realization of recycling
processes for plastics.

Promote DX.

Foster humanresources.

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

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

In addition to training for individuals in all departments whose jobs
require the use of data, practical training was provided for midcareer and young employees aimed at equipping them to leadDX initiatives for a second consecutive year. Significant synergies
with measures to improve the digital literacy of all employees are
anticipated.

Evaluation

Goals for fiscal year 2024★★

Create processes and guidelines forconfirming/verifying effectivenessand work with business units toprioritize and implement key DX
initiatives.

★★★

Continue to explore and implement
digital initiatives crucial to businessmodel transformation and thus toachieving the targets of DIC Vision
2030.

★★★

Advance awareness of the need forand importance of realizing datadriven management and data-driven
operations (cultivate a corporate
culture in which these concepts are
firmly established) and continue
strengthening efforts to foster
human resources with advanced
digital capabilities.

*Materials informatics (MI) applies statistical analysis and other informatics techniques to search large amounts of data for new materials.

guidelines for promotion and the establishment of a management
system, are also underway.

■ Basic Policy
The DIC Group promotes DX with the objective of providing new value
and reinforcing its corporate structure and competitive advantages
through the use of digital technologies and data. The Group isadvancing initiatives groupwide, beginning with measures to expedite
the growth strategies outlined in the DIC Vision 2030 long-term
management plan in four key areas: Market,* production, technology
and supply chain management (SCM). The Group is also working torealize a next-generation digital integrated platform and securing andtraining human resources to establish the infrastructure necessary toadvance DX.

■ MarketThrough DX, DIC seeks to enhance brand strength by creating highlevel customer experiences, as well as to achieve business modeltransformation. Thanks to digitalization, information on, for example,
customer needs that was previously under the jurisdiction of individual
departments can be shared across organizational boundaries,
facilitating the provision of proposals for products and solutions thatincorporate the customer’s perspective, thereby improving customer
experiences. The Company is also leveraging digital marketing to
expand its sales channels, enabling it to extend a variety of proposals
to customers who may not be familiar with DIC Group offerings andgenerating new business opportunities. In fiscal year 2024, DIC willcontinue working to increase the effectiveness of its digital marketing
initiatives with the goal of providing new and better customer
experiences.

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

■ Framework for Promotion
The IT Strategy Unit’s Information Systems Department and DX
Promotion Department capitalize on data and digital technologies,
eliminating boundaries between IT and DX, to promote processoptimization, work style reforms and the innovation of businessmodels over the short term, as well as the medium to long term.
Looking ahead, DIC expects to see an increase in the promotion of
independent DX initiatives by individual business units and functional
departments. Accordingly, the IT Strategy Unit traces, provides support
for and conducts post-implementation monitoring of such initiatives toensure optimization from a Groupwide perspective. Efforts to developa Groupwide IT governance scheme, including the formulation of■ Production
In the area of production, DIC is capitalizing on accumulated expertise
to develop AI technologies that optimize the DIC Group’s proprietarybatch reaction*1SURGXFWLRQV\VWHP$VSDUWRIWKLVHIIRUWLQ¿VFDO\HDU2023 the Company obtained two patents in Japan for an AI engine
capable of creating highly accurate models even for complex processes
like chemical reactions. Looking ahead, the Company will continue to

DIC Report 2024

44

DX

deploy related primary technologies in the area of process informatics(PI)*2 with the aim of achieving higher levels of reliability—in terms ofsafety, quality and environmental performance—and productivity. DIC
is also making use of its exclusive AI technologies, as well as diverse
SURGXFWVSHFL¿FGLJLWDOWRROVWRUHDOL]HORZFRVWGLVWLQFWLYHO\',&VPDUW
factories.

■ SCM
In addition to improving the visibility of the flow of goods andinformation through its supply chains, the DIC Group is promoting
related reforms designed to optimize supply chains spanning multiple
regions, businesses and organizational constituents. To this end, theGroup has made use of digital technologies that can be automaticallylinked Groupwide to build a digital SCM platform that facilitates planningonline and in real time based on up-to-date demand data, which it
began full-scale operation of in the color materials and performancePDWHULDOVEXVLQHVVHVLQ¿VFDO\HDU*RLQJIRUZDUGWKH*URXSZLOO
continue to expand deployment of this platform in additional regions
and businesses as part of its effort to achieve supply chain reform.

*1 Batch reaction is a production method whereby all reactants (raw materials) are added to a reactor at
the start of the reaction and products are removed at the end once the reaction is complete.
3,LVGH¿QHGDVDQDSSURDFKWRH[SORULQJSURFHVVHVIRUV\QWKHVL]LQJWDUJHWPDWHULDOVWKDWOHYHUDJHV
a combination of conventional experimental, theoretical and computational science, as well as data
VFLHQFHZKLFKKDVVHHQUHPDUNDEOHDGYDQFHVLQUHFHQW\HDUVWRDQDO\]HGDWDLQDQHI¿FLHQWDQG
integrated manner.

Systems Working Together in an Orderly MannerEnterprise resource planning (ERP)
Digital twins created using proprietary AI
Scheduler

Data infrastructure

Data infrastructure

Programmable
logic controller (PLC)

Distributed control
system (DCS)

Programmable
logic controller (PLC)

Production facility B

Programmable
logic controller (PLC)

Recipe management

Maintenancemanagement system

Distributed control
system (DCS)

Distributed control
system (DCS)

Distributed control
system (DCS)

Distributed control
system (DCS)

Distributed control
system (DCS)

Distributed control
system (DCS)

Production facility A■ Updating Core Business Systems and Establishinga Global Digital Integration Platform

Statistical analysis tools

Distributed control
system (DCS)

Manufacturingexecution system (MES)

Planning level

Execution level

The DIC Group plans to update its core business systems in fiscal
year 2024. To this end, the Group has built a global digital platform and
RSHUDWLQJFRQ¿JXUDWLRQWKDWZLOOVWLOOEHFDSDEOHRIHYROYLQJZLWKVSHHG
and agility 10 years down the road. The Group also plans to establish
a next-generation digital integrated platform that will make extensive
use of digital technologies and data, as well as adapt to changes in its
operating environment and advances in digital technologies.

Control level

Production facility C■ Technology■ Securing and Fostering Human Resources

On the technology side, DIC continues seeking to accelerate thecreation of new value and products by shifting the focus of its efforts
WRFRPSXWDWLRQDODQGGDWDVFLHQFHZKLFKXVH$,DQG0,,Q¿VFDO\HDU
2021, the Company established the Data Science Center, a specialized
AI organization, through which it is working to halve the development
stage for new products and double the number of development themes
LQSOD\,Q¿VFDO\HDUDSSUR[LPDWHO\RIWHFKQRORJLFDOWKHPHV
explored by DIC were done so in collaboration with the Data Science
Center. In addition to leveraging predictive analysis of performanceusing AI and MI, these included using AI to determine experimentparameters, which succeeded in reducing work hours used in
conducting experiments. In fiscal year 2024, the Company will work
to further expand its use of AI and MI in the creation and collection ofdata, as well as to expand the range of areas in which it uses AI.

DIC is also focusing on taking advantage of digital technologies anddata to create a foundation for analyzing, evaluating and executing
problem-solving measures and business reforms in its various
businesses. In addition to training for individuals whose jobs require
the use of data, practical training was provided for mid-career andyoung employees aimed to foster human resources who grasp bothbusiness strategy and frontline challenges and equipping them to leadDX initiatives. Initiatives were also implemented to improve the digital
literacy of all employees. In addition, as part of its effort to reinforce its
framework for swiftly implementing measures that fully leverage digitaltechnologies, the Group is actively recruiting new graduates and midcareer hires in the areas of IT and DX.

TOPIC

Digital Marketing Initiatives Continue to AdvanceThe promotion of multifaceted digital marketing initiatives is leading to businesstalks between DIC and a broad range of new customers with which it did notpreviously have any direct point of contact. These efforts have enabled theCompany to quantitively analyze what product features particularly appealed
to customer needs, an achievement made possible by the use of digitaltechnologies. The Company is also capitalizing on digital marketing to maintain
and/or enhance relations with existing customers through the timely provision of
useful information.

visited the exhibition, while document viewings exceeded 1,000. Many
downloaded documents from multiple departments, underscoring the appealof the “Smart Living” theme in attracting visitors and encouraging them totake an interest in DIC’s broad, diverse product lineup, rather than focusing
RQVSHFL¿FSURGXFWVRILQWHUHVW',&ZLOOFRQWLQXHWRIXUWKHUDGYDQFHLWVGLJLWDO
marketing initiatives with the aim of building deeper relations with customers.

,Q¿VFDO\HDU',&KHOGWKH6PDUW/LYLQJ2QOLQH([KLELWLRQDYLUWXDOWUDGH
show that introduced cross-business DIC Group products and solutions in
the Smart Living business area created to address customer needs in two
categories, dubbed Innovation and Sustainability. More than 5,000 individuals

DIC Report 2024

45

Smart Living Online Exhibition

Harmony with the Community and Social Contributions

Adding Color & Comfort to Lifestyles

SDGs

Goals 3 and 4

Basic Approach to Social Contribution
Based on its Guidelines for Social Contribution Activities, established in fiscal year 2009, the DIC Group works to ensure
KDUPRQ\ZLWKORFDOFRPPXQLWLHVDQGLQGLYLGXDOVWKURXJKDFWLYLWLHVDLPHGDWEXLOGLQJDVWURQJUHODWLRQVKLSZLWKVRFLHW\Guidelines for Social Contribution Activities,QOLQHZLWKLWVYLVLRQVWDWHPHQW³:HLPSURYHWKHKXPDQFRQGLWLRQE\VDIHO\GHOLYHULQJFRORUDQGFRPIRUWIRUVXVWDLQDEOH
prosperity—Color & Comfort´WKH',&*URXSZLOOSURPRWHVRFLDOFRQWULEXWLRQLQWKUHHDUHDV%XVLQHVVDFWLYLWLHVFXOWXUHDQG
HGXFDWLRQDQGFRPPXQLWLHVDQGVRFLHW\Business activities
The DIC Group will offer products and services that contribute to the development of a sustainable society and protection of
WKHJOREDOHQYLURQPHQWIURPWKHSHUVSHFWLYHRI³VXVWDLQDELOLW\WKURXJKEXVLQHVVDFWLYLWLHV´

Culture and education
The DIC Group will engage in initiatives that will contribute to the development and promotion of culture, the arts, science and
HGXFDWLRQLQFOXGLQJIRVWHULQJQH[WJHQHUDWLRQKXPDQUHVRXUFHVLQDUHDVVXFKDVWKHFXOWXUHRIFRORUDQGFKHPLVWU\Communities and society
7KH',&*URXSZLOOVWULYHWRFRH[LVWKDUPRQLRXVO\ZLWKORFDOFRPPXQLWLHVWRGHYHORSDUHODWLRQVKLSRIPXWXDOWUXVW0RUHRYHUWKH
*URXSZLOOSURYLGHDQHQYLURQPHQWWKDWHQDEOHVHPSOR\HHVWRHQJDJHLQYROXQWDU\LQLWLDWLYHVLQWKHLUUHVSHFWLYHORFDOFRPPXQLWLHV■ Principal Initiatives○ CUD: The Future of Color and Comfort

Guided by its vision statement, the DIC Group is actively involved
in R&D in the area of color universal design (CUD), helping to bring
FRORUWROLIHWKURXJKHIIRUWVLQDYDULHW\RI¿HOGV
・Initiatives in Fiscal Year 2023
DIC began providing the brand logo and user manual for
Lucida® tactile paving blocks—which combine high visibility
for visually impaired individuals and is in harmony with the
HQYLURQPHQW²IUHHRIFKDUJHWRWDFWLOHSDYLQJPDQXIDFWXUHUVThis allows the use of Lucida® blocks together with blocks soldby other manufacturers made from different materials, including
FHUDPLFWLOHUHVLQDQGFRQFUHWHE\HQVXULQJWKHVDPHFRORU,Q
addition to ensuring the visibility and recognizability of tactile
paving, this helps secure aesthetic coherence for areas where
WKLVSDYLQJLVLQVWDOOHG
The Lucida® logo was developed by DIC Group company DIC&RORU'HVLJQ,QF7KHWDLORQWKH³8´HYRNHVWKHHQKDQFHGZDONDELOLW\PDGHSRVVLEOHE\WDFWLOHSDYLQJ*RLQJIRUZDUG
DIC will continue working to advance the creation of social
LQIUDVWUXFWXUHWKDWLQFRUSRUDWHV&8'Ceramic tile tactile paving blocks (manufacturer: Lixil Corporation)

DIC Report 2024

46

Harmony with the Community andSocial Contributions• 2007–2010
8QGHUWKHVXSHUYLVLRQRIWKH8QLYHUVLW\RI7RN\RWKH',&*URXSZRUNHGZLWKWKH-DSDQ3DLQW0DQXIDFWXUHUV$VVRFLDWLRQWKH,QGXVWULDO5HVHDUFK,QVWLWXWHRI,VKLNDZDDQGWKH&RORU8QLYHUVDO'HVLJQ2UJDQL]DWLRQDQ132WRFUHDWHWKH&RORU8QLYHUVDO'HVLJQ±5HFRPPHQGHG&RORU6HW
• 2011–2014
The DIC Group and architect Kengo Kuma collaborated to develop new tactile pavement that ensures high visibility for visually impaired individuals
DQGLVLQKDUPRQ\ZLWKWKHODQGVFDSH6XEVHTXHQWO\LQVSULQJWZRQHZFRORUV²DZDUPRUDQJH\\HOORZDQGDFRRO\HOORZLVKJUHHQ²ZHUH
commercialized under the name Lucida®• 2015–2017
7KH',&*URXSSDUWLFLSDWHGLQDMRLQWLQGXVWU\±DFDGHPLFUHVHDUFKSURMHFWDVSDUWRIZKLFK&KLED8QLYHUVLW\WKH&HQWUDO5HVHDUFK/DERUDWRULHVDQG
DIC Color Design gave presentations at academic conferences around the world on research regarding the color appearance of red spot colors
XVHGIRUSULQWHGZDUQLQJVDQGRWKHULQIRUPDWLRQRQSDFNDJLQJDQGRQWKHXVHRIFRORULQSULQWHGPDWHULDOVWRHQKDQFHUHDGDELOLW\IRUVHQLRUV• 20187DNLQJLQWRDFFRXQWQHDUO\DGHFDGHLQXVHWKH&RORU8QLYHUVDO'HVLJQ±5HFRPPHQGHG&RORU6HW¶VFRORUYDOXHVZHUHUHYLVHGDQGDJXLGHERRNZDVSXEOLVKHGWRIXUWKHUHQKDQFHWKHVHW¶VXVDELOLW\,QDGGLWLRQWKH-DSDQ,QGXVWULDO6WDQGDUGV -,6 DQQRXQFHGQHZVDIHW\FRORUVWKDWFDQEHGLVWLQJXLVKHGE\SHRSOHZLWKGLYHUVHW\SHVRIFRORUYLVLRQ -,6= $VDPHPEHURIWKHRULJLQDOGUDIWLQJFRPPLWWHHWKH',&*URXSZDVLQYROYHG
LQVHWWLQJUHFRPPHQGHG&0<.YDOXHVIRUSURFHVVSULQWLQJDQGFROODERUDWHGLQVXEVHTXHQWDFWLYLWLHVDLPHGDWDGYDQFLQJDZDUHQHVV
• 2019–2021
7KH',&*URXSFROODERUDWHGLQWKHYHUL¿FDWLRQRIFRORUVFKHPHVIRUGLVDVWHUDSSOLFDWLRQVLQFOXGLQJSUHYHQWLRQUHODWHGLQIRUPDWLRQ7KLVLQFOXGHGWDNLQJSDUWLQYHUL¿FDWLRQWHVWLQJIRUVFUHHQGLVSOD\VIRUDFRORUVFKHPH ¿YHFRORUV GHYHORSHGWRFRQYH\KHDY\UDLQZDUQLQJOHYHOVLQDQHDV\WRXQGHUVWDQGPDQQHUZKLFKZDVDQQRXQFHGLQE\-DSDQ¶V&DELQHW2I¿FH,QIRUPXODWLQJ&0<.YDOXHVIRUWKLVFRORUVFKHPHDQQRXQFHGLQ',&*UDSKLFVFRRSHUDWHGE\QRWRQO\YHULI\LQJFDQGLGDWHFRORUVEXWDOVRSULQWLQJDFRORUFKDUWIRUXVHLQWKHYHUL¿FDWLRQSURFHVV• 2022
The DIC Group published a feature article on its efforts to contribute to society through the provision of color in the Japanese-language space of
LWVJOREDOZHEVLWH6LQFHWKHQWKH*URXSKDVZRUNHGWRSURYLGHVWDNHKROGHUVZLWKLQIRUPDWLRQRQLWVLQLWLDWLYHVWRPDNHVRFLHW\PRUHDFFHVVLEOHWRSHRSOHZLWKGLYHUVHW\SHVRIFRORUYLVLRQDVZHOODVWRLQWURGXFHNH\GLIIHUHQFHPDNHUVIURPERWKZLWKLQDQGRXWVLGHWKH*URXS

0DQ\PXVHXPSURJUDPVLQFOXGLQJUHJXODUO\VFKHGXOHGJXLGHGWRXUV
DQGHGXFDWLRQDOWRXUVKDYHUHWXUQHGWRSUHSDQGHPLFOHYHOV7KH³PLWH´
³ORRN´ LQWHUDFWLYHDUWYLHZLQJH[SHULHQFHZKLFKPRYHGRQOLQHGXULQJ
WKH&29,'\HDUVZDVRQFHDJDLQDOVRKHOGRQVLWHLQWKHPXVHXP¶V
JDOOHULHVDOORZLQJSDUWLFLSDQWVWRWDNHDGYDQWDJHRIERWKIRUPDWV○ Kawamura Memorial DIC Museum of Art',&RSHUDWHVWKH.DZDPXUD0HPRULDO',&0XVHXPRI$UWDVDVRFLDO
contribution initiative particularly suited to an organization involved in
WKHSURYLVLRQRIFRORU(VWDEOLVKHGLQWRSXEOLFO\H[KLELWZRUNVRIDUW
collected by DIC Corporation and its affiliates, the museum is locatedadjacent to the Central Research Laboratories in Sakura, Chiba Prefecture
and boasts an extensive collection spanning numerous genres that
includes an oil portrait by Rembrandt, a rarity in Japan, as well as works by
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DV3LFDVVRDQG&KDJDOOHDUO\PRGHUQPRGHUQDQGSRVWZDU-DSDQHVHDUWLVWVDQGOXPLQDULHVRIODWHWKFHQWXU\$PHULFDQDUWLQFOXGLQJ0DUN
5RWKNR)UDQN6WHOODDQG-RVHSK&RUQHOO,QDGGLWLRQWRDVWDQGLQJH[KLELWthe museum stages special exhibitions multiple times a year to encourage a
GHHSHUXQGHUVWDQGLQJRIWKHZRUNVLQLWVFROOHFWLRQ

Looking ahead, the museum will continue to promote site environmental
initiatives, plan and stage exhibitions centered around works from its
collection, and advance social contribution activities with a view to
HQFRXUDJLQJFRPPXQLFDWLRQZLWKWKHFRPPXQLW\$QRWKHUDSSHDOLQJDVSHFWRIWKHPXVHXPLVLWVOXVKO\IRUHVWHGKHFWDUH
VLWHDOLYHZLWKVHDVRQDOÀRZHUVDQGIROLDJHZKLFKKDVEHHQRSHQWRWKH
SXEOLFVLQFHWKHIDFLOLW\¶VHVWDEOLVKPHQW$WRWDORIFKHUU\WUHHV²
YDULHWLHVLQWRWDO²EORVVRPHYHU\VSULQJZKLOHLQVXPPHUZLOGÀRZHUVRIDOOFRORUVEORRPSURIXVHO\.DZDPXUD0HPRULDO',&0XVHXPRI$UW,Q¿VFDO\HDUWKHPXVHXPFHOHEUDWHVLWVWKDQQLYHUVDU\7ZRVSHFLDOH[KLELWLRQVDUHEHLQJKHOG³&DUO$QGUH%HWZHHQ6FXOSWXUHDQG3RHWU\´
ZKLFKUDQIURP0DUFKWKURXJK-XQHZDVWKH¿UVWVRORH[KLELWLRQ
at a Japanese museum to fully introduce the works of Carl Andre, one of the
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8QLWHG6WDWHVLQWKHODWHV³.DWVXKLWR1LVKLNDZD6HUHQLW\LQ6WLOOQHVV´
VFKHGXOHGWREHKHOGIURP6HSWHPEHUWKURXJK-DQXDU\
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paintings, drawings and installations, by Japanese artist Katsuhito
1LVKLNDZDZKRKDVEHHQEDVHGLQ*HUPDQ\VLQFHWKHV

Regularly scheduled guided tour

DIC Report 2024

47

0XVHXPHQWUDQFHKDOO

Harmony with the Community andSocial Contributions

SDUWLFLSDWLQJVWXGHQWVZKRDVSLUHWRFDUHHUVLQWHFKQLFDO¿HOGV(GXFDWLRQDOVXSSRUWDFWLYLWLHVLQFOXGHGKROGLQJFRORUGHVLJQOHFWXUHVDW
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designated institutions through participation by executive-level employees
in the steering committees of Sakura Senior High School and Funabashi+LJK6FKRROZKHUHWKH\SURYLGHGDGYLFHIURPDFRUSRUDWHSHUVSHFWLYH
• The Central Research Laboratories also promoted initiatives timed
to coincide with schools’ summer vacations that sought to nurturechildren’s interest in science and technology, as well as in working in the
PDQXIDFWXULQJVHFWRU7KHVHLQFOXGHGKRVWLQJWKH&KLED3UHIHFWXUDO'UHDP
Challenge Hands-On School, a popular program for elementary school
FKLOGUHQRUJDQL]HGE\WKHSUHIHFWXUH¶V%RDUGRI(GXFDWLRQDQGSDUWLFLSDWLQJ
LQWKH³1RZ,*HW,W7HFKQRORJLHVRIWKH)XWXUH´H[KLELWLRQ○ Visiting Science Lab Program

In line with the Japanese government’s efforts to further career education
LQLWLDWLYHV',&FRQGXFWVYLVLWLQJVFLHQFHODEVDWSXEOLFHOHPHQWDU\VFKRROV6LQFHWKHODXQFKRIWKLVSURJUDPLQ',&KDVSURYLGHGODEVIRU
DSSUR[LPDWHO\VWXGHQWVDWIDFLOLWLHV HOHPHQWDU\VFKRROVDQG
XQLYHUVLW\IDFLOLWLHVWKHODWWHUDVSDUWRIDQHYHQW ,Q¿VFDO\HDUWKH&RPSDQ\SDUWLFLSDWHGLQ7RKRNX8QLYHUVLW\¶V6FLHQFH&DPSXVSURMHFWZLWKDODEIRUSDUWLFLSDQWVSULPDULO\¿IWKDQGVL[WK\HDUVWXGHQWV%DVHGRQWKHWKHPHRI³&RORU &RPIRUW´WKHODEKLJKOLJKWHGKRZ
science can help secure a brighter future for humanity and the planet, andcomprised experiments that involved observing the mechanism of color
printing, extracting natural pigments from algae and dissolving recyclable
DGKHVLYHV7KHSURJUDPZDVZHOOUHFHLYHGE\SDUWLFLSDWLQJVWXGHQWVZKR
commented on the interesting nature of the experiments and the joy of
PDNLQJQHZGLVFRYHULHVDQGVWXGLRXVO\WRRNQRWHV*RLQJIRUZDUGWKH',&*URXSZLOOFRQWLQXHWRSURPRWHWKLVDQGRWKHU³&RORU &RPIRUW´WKHPHG
programs that make science fun for children and which spark enthusiasm
IRUFKHPLVWU\○ Initiatives Led by the Kashima Plant

The Kashima Plant, in Ibaraki Prefecture, has accepted trainees incooperation with Ibaraki Hasaki High School’s internship program—dubbed
WKH+DNR'XDO6\VWHP²VLQFH,QILVFDO\HDUWZRVWXGHQWV
from the school’s industrial chemistry and information sciences programs
participated in lectures on product knowledge and safety, and in practical
WUDLQLQJDWWKHSODQWIURP2FWREHUWKURXJK1RYHPEHU$GGLWLRQDOO\LQ
FROODERUDWLRQZLWKWKH.DPLVX&LW\&RPPXQLW\0HGLFLQH3URPRWLRQ6HFWLRQ
the plant made itself available for on-site training for interns participating in
WKH¿VFDO\HDU2FFXSDWLRQDO+HDOWK)XQGDPHQWDOV:RUNVKRSZLWKWKH
aim of helping improve the skills of occupational physicians by enhancing
LQWHUQV¶XQGHUVWDQGLQJRISURGXFWLRQIDFLOLWLHV○ Initiatives at DIC Group Companies in Other Countries and Territories• P.T. Pardic Jaya Chemicals Invites University Students to Visit
the Company',&*URXSFRPSDQ\373DUGLF-D\D&KHPLFDOVLQ,QGRQHVLDLQYLWHG
XQLYHUVLW\VWXGHQWVWRYLVLWWKHFRPSDQ\$SSUR[LPDWHO\VWXGHQWV
participated in the visit, which included a production facility tour, to learn
DERXWWKHFRPSDQ\¶VEXVLQHVVDQGLWVSURGXFWLRQDFWLYLWLHV• Donations Provided for Turkey–Syria Earthquake Relief',&GRQDWHGPLOOLRQYLDWKH-DSDQHVH5HG&URVV6RFLHW\WRSURYLGHVXSSRUWIRUDOOWKRVHDIIHFWHGE\WKHPDMRUHDUWKTXDNHWKDWVWUXFN7XUNH\DQG6\ULDLQ)HEUXDU\DVZHOODVWRKHOSZLWKUHFRQVWUXFWLRQ
Group company Sun Chemical also provided support to the disasterVWULFNHQDUHDV○ Initiatives Led by the Central Research Laboratories

The Central Research Laboratories provides support for education throughDYDULHW\RILQLWLDWLYHV7KHVHLQFOXGHDVVLVWLQJZLWKWKH$QQXDO0HHWLQJ
on Scientific Research by High Schools, which is sponsored by Chiba
8QLYHUVLW\¶V6HFWLRQRI&ROODERUDWLRQZLWK+LJK6FKRROVThe Central Research Laboratories also advances efforts that leverage',&¶VXQLTXHFDSDELOLWLHV7KHVHLQFOXGHOHFWXUHVIRUKLJKVFKRROVWKDWhave earned Super Science High School* designation, including Seishin
Gakuen High School in Ibaraki Prefecture, and Sakura Senior HighSchool and Funabashi High School in Chiba Prefecture, as well as
fashion design workshops for students from Sakura Higashi High School
LQ&KLED3UHIHFWXUH

○ Matching Gift Program

DIC has a matching gift program whereby it matches the total amountcollected through an annual year-end fundraising drive spearheaded by its
HPSOR\HHV¶XQLRQ)XQGVUDLVHGWKURXJKWKHGULYHDQGPDWFKLQJJLIW
program were donated to 20 recipients, including facilities providing social
ZHOIDUHVHUYLFHVDQGWKRVHSURYLGLQJVXSSRUWIRUGLVDEOHGLQGLYLGXDOVIn addition, in an initiative aimed at assisting with regional revitalization
efforts, the Central Research Laboratories has cooperated with the Sakura)LOP&RPPLVVLRQVLQFHDWWKHUHTXHVWRIWKH6DNXUD&LW\JRYHUQPHQW
This includes allowing use of its site as a filming location and providing
VXSSRUWLQYDULRXVIRUPVIRUGUDPDVPRYLHVDQGRWKHUSURGXFWLRQV ³6XSHU6FLHQFH+LJK6FKRRO´LVDGHVLJQDWLRQDZDUGHGE\-DSDQ¶V0LQLVWU\RI(GXFDWLRQ
Culture, Sports, Science and Technology to high schools that implement curricula focused
RQWKHVFLHQFHVDQGPDWKHPDWLFVWKDWJRHVEH\RQGWKH0LQLVWU\¶VRI¿FLDOJXLGHOLQHVZLWKWKHDLPRIIRVWHULQJWKHQH[WJHQHUDWLRQRIWDOHQWHGHQJLQHHUVDQGVFLHQWLVWV

Highlights of Fiscal Year 2023
• Five researchers from the Central Research Laboratories attended the$QQXDO0HHWLQJRQ6FLHQWLILF5HVHDUFKE\+LJK6FKRROVOLVWHQLQJWRD
WRWDORIUHVHDUFKSUHVHQWDWLRQVE\KLJKVFKRROVWXGHQWVIURPDFURVV
Japan, taking part in Q&A sessions and otherwise encouraging research by

DIC Report 2024

48

Communication with Stakeholders

Promoting Disclosure and Communication

SDGs Goal 17

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

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

Basic
approach

Ties withcustomers

Ties withshareholders
and investors

Ties withbusiness
partners

Ties with society

Ties with
employees

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

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

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

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

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

Deepen understanding
through effective publicity,
advertising and othercommunications efforts.

● DIC Report● News releases● Television advertisements● Corporate brand film
● Websites● DIC Report● News releases● Television advertisements● &RUSRUDWHEUDQG¿OP● Websites● Press conferences● DIC Report● DIC Report● News releases● Television advertisements● &RUSRUDWHEUDQG¿OP● Websites● DIC Report● News releases● Television● DIC Report● News releases● Television● Quarterly results● DIC Group Sustainable Procurement● Annual securities report● Timely disclosure● Notice of Convocation of● DIC Group Green Procurement● Product pamphlets● Digital marketing● Corporate profile DVDs
● Feature articles

the Annual General Meetingof Shareholders

Communications
tools● Shareholder newsletters● Sales activities● Participation in

exhibitions● Lectures on the SDGs
for customers

Opportunities forcommunication

announcements● Annual General Meetingof Shareholders

advertisements● Corporate brand film

Ties with the media

advertisements● Websites● Press conferences

Guidelines● Site reports

Guidelines● Supplier sustainable procurement
questionnaires● Feedback sheets● &RQÀLFWPLQHUDOVUHSRUWLQJ
template● On-site inquiries●Quarterly results presentations● IR conferences● IR meetings● ,QGLYLGXDOLQYHVWRUEULH¿QJV● Production facility tours● Participation in projects involving

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

DIC Report 2024

49

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

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

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

Communication with Stakeholders■ Ties with Customers○ Key Individuals Responsible for Dialogue withThe DIC Group works to strengthen communication with its customers,
placing a priority on gaining their understanding of its efforts andinitiatives, in line with the basic policy of the DIC Vision 2030 longterm management plan. Principal avenues of communication include
exhibitions and events, lectures for business partners, websites andsocial media.

Shareholders and Investors
The president, vice president, CFO, head of the Corporate Strategy Unit
and the individual in charge of investor relations (IR) are responsible foradvancing ties with shareholders.

○ Exhibitions

With COVID-19 no longer considered a public health emergency, in¿VFDO\HDUWKH',&*URXSDFWLYHO\SDUWLFLSDWHGLQERWKLQSHUVRQ
and online exhibitions.
Japan● In May, the DIC Group participated in the 11th Cosmetic Ingredientsand Technology Exhibition Japan (CITE JAPAN 2023), an exhibition
aimed at contributing to the growth of the industry, where it displayed
and gave presentations on innovative Group materials, technologies
and services currently being deployed in cosmetics.
● The Group took part in the Sustainable Material Expo (SUSMA) show
held in October, which focused on product solutions that contribute to
the resolution of issues such as marine plastics and to decarbonizationand the achievement of carbon neutrality via an on-site booth and avirtual platform on its global website.
● Also in October, the Group held the Smart Living Online Exhibition,with the aim of highlighting solutions to issues and concerns related toinnovation and sustainability.
Other Countries and Territories● Sun Chemical, which oversees DIC Group operations in the Americas
and Europe, participated in a variety of exhibitions during the period.
Notable among these was in-Cosmetics Global 2023, held in March inBarcelona, Spain, where it displayed new effect pigments for cosmetics,
shining a spotlight on sustainable solutions featuring natural materials.
● ,Q$VLD',&$VLD3DFL¿FDQG6XQ&KHPLFDOSDUWLFLSDWHGLQ&KLQDSODV
2023, held in March in Shenzhen, in the PRC, collaborating toshowcase an extensive portfolio of pigments for use in plastics thatdeliver outstanding sustainability and achieve outstanding color.

○ Activities and Status of Implementation
Results
Four
presentations sessions

The president participated in the second-and fourthquarter results presentations

Small-groupmeetings

Threesessions

Two of the three sessions were conducted by thepresident

One-on-one
meetings

109

12 meetings were conducted by the management
team

Individual
investorEULHÀQJV

Appearance of the president on a televised IR information program, postingof a corporate presentation video on the DIC Group’s global website○ Breakdown of Participants in One-on-One Meetings with

Shareholders and Investors
Sell-side
analysts

25○ Websites

To bolster communication with customers, the DIC Group expanded
WKHFRQWHQWRILWVJOREDOZHEVLWHDVZHOODVLWVRI¿FLDO35&DQG$VLD±
3DFL¿FUHJLRQZHEVLWHV,PSURYHPHQWVWRWKHZHEVLWHVZHUHDOVRPDGH
to ensure that information shared by the Group is conveyed in an
appropriate manner. Group company Sun Chemical also upgraded its
website, improving links to information about products available it sells
in global markets, and promoted cooperation in responding to inquiries,
with the goal of bolstering customer satisfaction. The Group also
made use of social media, including X (formerly Twitter,) LinkedIn and,QVWDJUDPDVDWRROWRDWWUDFWPRUHZHEVLWHWUDI¿FProxy voting
representatives

4

Investors in
Japan

Investors
overseas

35

45○ Status of Feedback to Management and the Board of

Directors in Fiscal Year 2023
The content of constructive dialogue with shareholders and investors
was reported to the Board of Directors twice during the period.
● The content of dialogue with shareholders and investors wasreported to management monthly.
●■ Ties with Shareholders and Investors○ Policy Regarding Constructive Dialogue with Shareholders

The DIC Group promotes constructive dialogue with shareholders tounderpin sustainable growth and increase corporate value over the medium
to long term. Views and concerns expressed by shareholders are sharedwith management and incorporated into operations as appropriate.

DIC Report 2024

50

Communication with Stakeholders○ Principal Themes of Dialogue and Feedback to Management and the Board of Directors
Principal themes of dialogue/matters of concern expressed

Examples of actions taken in response• Factors leading to the deterioration of income in the overseas pigments
business and measures taken in response• Progress of eﬀorts to rationalize businesses in need of structural reform• Progress of eﬀorts to transform business portfolio, including by withdrawing
from noncore businesses• Strategies for improving price‒book value (P/B) ratio from the current level(below 1.0 times)• Financial discipline necessary to maintain ﬁnancial soundness• Policies regarding returns to shareholders• Disclosed costs and beneﬁts of plan for rationalizing the overseas
pigments business• Disclosed progress of eﬀorts to rationalize businesses in need ofstructural reform• Reinforced eﬀorts to bolster capital eﬃciency• Formulated policies for cash allocation• Established targets for shrinking cross-shareholdings• Set a minimum dividend limit and clariﬁed policy regarding returns
to shareholders• Established the Corporate Value Improvement Committee■ Ties with Society

disclosure of related quantitative data in response to requests from a variety
of stakeholders.

In addition to the business community, the DIC Group strives to communicate
effectively with ordinary citizens, including students.

○ Corporate Advertising

DIC produced a new installment of its brand advertisement for television
featuring popular Japanese actress Riho Yoshioka, which introduces DIC
products that help address social imperatives to communicate the Group’scommitment to being an organization that pursues sustainable prosperity forpeople and for the earth. In addition to television, the Company is expanding
its digital advertising, capitalizing on the reach of the internet and social
QHWZRUNLQJVHUYLFHVWRGHHSHQLGHQWL¿FDWLRQZLWKDQGXQGHUVWDQGLQJRIWKH
future DIC sees for itself and to effectively convey the Company’s growth andfuture outlook.

○ Kawamura Memorial DIC Museum of Art

In advance of International Women’s Day on March 8, 2023, the Kawamura
Memorial DIC Museum of Art participated in an online campaign titled#5WomenArtists, introducing works in its collection by artists Bridget Riley,Louise Nevelson, Rika Noguchi, Naoyo Fukuda and Nobuko Watanabe.
From March 11 through June 18, the museum held “Rendez-vous dans leMidi,” a special exhibition focusing on the history of the south of France
as a location where art unfolded in the 20th century, including the impactof two world wars. This was followed by “Joseph Albers: PedagogicalExperiments,” which ran from July 29 through November 5, a retrospectivethat examined Albers as a creator and as a progressive teacher of art.
During the exhibition, a workshop was also set up where visitors could
experience recreations of some of the classes taught by Albers at thelegendary Black Mountain College art school, as well as at Yale University,
which attracted enthusiastic praise participants ranging from families withchildren to individuals active in the fields of art, design and education.
The museum will continue seeking to provide a place of relaxation wherevisitors can experience art and nature in harmony.

Brand advertisement for television aired in Japan○ Calendar○ Communication with Local Communities

For its original calendar for 2024, titled “Calendar 2024 Paris,” DIC celebrated
the host city of the 2024 Summer Olympic and Paralympic games byfeaturing works chosen from the Kawamura Memorial DIC Museum of Art’s
collection that evoke the atmosphere, sophistication and cosmopolitan
diversity of the City of Light, which remains a magnet for artists from a wide
variety of cultural and ethnic backgrounds. The text portions, which wereprepared by the museum’s curators, also included anecdotes relating to theParis portrayed in the works included and to the artists themselves. Goingforward, the Company will continue to plan, design and produce attractive
original calendars that are highly rated by stakeholders.

In line with the DIC Group’s Color & Comfort brand slogan, whichemphasizes enhancing shareholder and corporate value, DIC’s sites
spearheaded a variety of initiatives aimed at enhancing communication withlocal communities by enabling participants to make new discoveries related
to color. Steps were taken at all sites to prevent the spread of COVID-19.
In fiscal year 2023, DIC participated in a regional cultural festival at thecommunity center in Kisarazu, Chiba Prefecture, holding a DIC color
workshop where visitors could create original cards using various shapes andcolors simply by selecting the colors they want from the DIC Color Guide®
and cutting the shapes using a craft paper punch.

○ Online Presence

To enhance communication with ordinary citizens, the DIC Group updated
DQGHQKDQFHGWKHFRQWHQWRILWV35&DQG$VLD±3DFL¿FUHJLRQZHEVLWHV7KH
Group also continues working to enhance the accessibility of its websites tostakeholders around the world.

DIC also hosted the Chiba Prefectural Dream Challenge Hands-On Schoolat the Central Research Laboratories’ convention hall. This program, which issponsored by the Chiba Prefecture Board of Education, is held every summer
DQGLVSRSXODUDPRQJORFDOHOHPHQWDU\VFKRROVWXGHQWV,Q¿VFDO\HDU
participants were invited to observe experiments involving color changes
and report their impressions by, among others, including the experience intheir summer free study projects. (Japanese schoolchildren are commonly
assigned such projects over summer vacation.)

Enhancing and expanding ESG information is another focus of the DIC
Group’s website improvement efforts. In addition to explaining its sustainability
policy in an easy-to-understand manner, the Company is increasing its

DIC Report 2024

51

Communication with Stakeholders■ Monetary Contributions and Other Expenditures

employees and corporate culture, serving as a key tool for
improving communication with each other.

The DIC Group conducts its operations while maintaining
relationships with a broad range of industry associations and otherexternal organizations.

■ Ties with the MediaDIC is reinforcing its publicity activities as a means ofcommunicating with its many stakeholders, including its customers,
shareholders, investors and local communities. This reflects its
conviction that promoting active disclosure that facilitates objective
media coverage is vital to securing stakeholders’ understanding of
the DIC Group and its operations, and to promoting a sense of unity
DPRQJHPSOR\HHV,Q¿VFDO\HDU',&SXWRXWQHZVUHOHDVHVregarding business acquisitions, new products, capital investments,
operating results and sustainability initiatives, among others. The
Company also disseminated information on its long-term vision, as
articulated in DIC Vision 2030, through interviews with membersof the media and other means, encouraging understanding of its
commitment to deliver value that exceeds the provision of finechemicals with the goal of contributing to sustainable prosperity.

○ Monetary Contributions
The DIC Group’s monetary contributions in fiscal year 2023
amounted to approximately ¥78 million. Monetary contributions inJapan consisted of a designated donation of around ¥9 million to
support education and research and approximately ¥18 million to
VSHFL¿HGSXEOLFVHUYLFHSURPRWLRQFRUSRUDWLRQVDQGIRURWKHUVRFLDO
contribution–related purposes. The Group made no contributions topolitical organizations during the period.
○ Participation in Industry Organizations
In its capacity as a manufacturer of fine chemicals, the DIC
Group participates in a variety of activities as a member of key
industry organizations, including providing specialized information,
conducting investigations and collecting materials. In Japan,
the Group is a member of organizations ranging from the Japan
Chemical Industry Association (JCIA), the Keidanren (Japan
Business Federation), the Japan Dyestuff and Industrial Chemicals
Association (JDICA), the Japan Thermosetting Plastics Industry
Association (JTPIA) and the Japan Printing Ink Makers Association(JPIMA) to the Global Compact Network Japan (GCNJ). In fiscal
year 2023, expenditures for participation in various external
activities (membership dues) across the global DIC Groupamounted to approximately ¥159 million.

Press conferences held
LQÀVFDO\HDU

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

70

66■ External Assessments
IQ¿VFDO\HDU',&ZDVVHOHFWHGIRULQFOXVLRQLQWKH'RZ-RQHV
6XVWDLQDELOLW\,QGLFHV$VLD3DFL¿F,QGH[DOHDGLQJEHQFKPDUNIRU
sustainability initiatives in the Asia–Pacific region and part of the
Dow Jones Sustainability Indices (DJSI), a global family of indicesfor socially responsible investment (SRI). This was the ninth straightyear that DIC was selected for inclusion.

■ Ties with Employees
The DIC Group continues to promote a variety of initiatives tofacilitate active communication with Group employees around theworld, including establishing an internal Group chat function, aGroup intranet and other new digital channels, thereby enhancing
its communications infrastructure.

DIC was also selected as a constituent of the MSCI Japan ESG
Select Leaders Index—an ESG investment index of leading
Japanese companies—developed by U.S.-based MSCI Inc., forthe seventh consecutive year, and the FTSE4Good Index and
the FTSE Blossom Japan Index for the sixth consecutive year.
The Company was chosen for the second consecutive year forinclusion in FTSE Russell’s FTSE Blossom Japan Sector RelativeIndex. In addition, DIC was selected for inclusion in the S&P/JPX&DUERQ(I¿FLHQW,QGH[ZKLFKZHLJKWVFRQVWLWXHQWVXVLQJGLVFORVXUH
of environmental information and carbon efficiency (carbon
emissions per unit of revenue) within an industry group, earning the
VHFRQGKLJKHVW³´UDWLQJIRUWKHODWWHUIDFWRU)RUWKH¿UVWWLPHWKH
Company’s gender diversity initiatives were recognized when it was
included in the Morningstar Japan ex-REIT Gender Diversity Tilt
,QGH[UDQNLQJLQ*URXSWKHKLJKHVWRIWKHLQGH[¶V¿YHUDQNV○ Communication Across the Global DIC GroupThe DIC Group launched The DIC Way Vision and Core Values
Awards with the objective of fostering awareness of The DIC Way,
which represents the Group’s management philosophy, among
HPSOR\HHVZRUOGZLGH$ZDUGVZHUHFRQIHUUHGRQFHDJDLQLQ¿VFDO
year 2023, with gold, silver and bronze award winners selectedfrom among hundreds of nominations received from Group
employees recommending outstanding colleagues who embody the*URXS¶VFRUH\DOXHV,Q¿VFDO\HDUDZDUGVZHUHSUHVHQWHG
in person at DIC’s anniversary ceremony and hold a programof presentations by recipients, helping further foster a sense ofsolidarity across the DIC Group family.
○ In-House Newsletter

The DIC Group publishes a digital newsletter entitled Better
Tomorrows, which is compiled and published by teams in Japan,
WKH35&DQGWKH$VLD±3DFL¿FUHJLRQ%HWWHU7RPRUURZVSURYLGHV
information that assists employees in advancing DIC Vision
2030 and highlights Group technologies, products, businesses,,Q¿VFDO\HDU',&ZDVWKXVRQFHDJDLQLQFOXGHGLQWKH¿YH
ESG investment indices targeting Japanese equities used by
Japan’s Government Pension Investment Fund (GPIF), whichseeks stock indices comprising companies with outstanding ESG
performances (MSCI Japan ESG Select Leaders Index, FTSEDIC Report 2024

52

Communication with Stakeholders

Blossom Japan Index, FTSE Blossom Japan Sector Relative Index,
6 3-3;&DUERQ(I¿FLHQW,QGH[DQG0RUQLQJVWDU-DSDQH[5(,7Gender Diversity Tilt Index). DIC’s ESG performance also resulted
in it once again being selected as one of 300 constituents of Sompo
Japan Nipponkoa Asset Management Co., Ltd. (SNAM)’s annually
updated SOMPO Sustainable Index.

water security sectors.
For the seventh consecutive year, DIC and DIC Graphics earned
FHUWL¿FDWLRQLQWKHODUJHHQWHUSULVHFDWHJRU\RIWKH+HDOWK 
Productivity Outstanding Entities Recognition Program (dubbed the“White 500”), which is organized by the Ministry of Economy, Tradeand Industry and Nippon Kenko Kaigi (“Japan Health Council”).

',&UHSRUWVWRWKH&'3DJOREDOQRQSUR¿WRUJDQL]DWLRQWKDWZRUNV
on behalf of institutional investors to collect and analyze informationon corporate initiatives to address climate change and other
HQYLURQPHQWDOLVVXHV,Q¿VFDO\HDU',&HDUQHGDVFRUHRIB (Management Level) in the CDP program’s climate change and:LWKWKHDLPRIGULYLQJVXVWDLQDEOHJURZWKLQ¿VFDO\HDUWKH
DIC Group continued to participate in the ESG, Reporting and other
UNGC working groups administered by the GCNJ.

TERMS AND CONDITIONSDIC Report 2024

53

Environment, Safety and Health (ESH)

Toward the Achievement ofa Sustainable Society

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

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

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

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

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

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

■ Responsible Care Codes

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

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

DIC Report 2024

54

ESH

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

Page 58❷ 'LVDVWHUSUHYHQWLRQ SUHYHQWLRQRI¿UHVH[SORVLRQVDQGWKHGLVFKDUJHRIFKHPLFDOV 

Page 63❸ Environmental protection (continuous reduction of chemical emissions and the discharge of waste)

Page 64❹ Safety in logistics (reduction of chemical risks associated with the distribution of chemicals)

Page 76❺ Ensuring the safety of chemical substances (management of risks associated with chemicals)

Page 79❻ Engaging with society (communication with local communities regarding ESH)

Page 83❼ 0DQDJHPHQWV\VWHPV HQVXUHWKHXQLIRUPDGPLQLVWUDWLRQRIWKH¿UVWVL[FRGHV 

Page 84

Audits andreviews
conducted
bymanagement

Act

Check

Responsible Care
Initiatives
Improve

Do

Plan

Implement/
manageFormulateplans■ Message from the President
DIC’s president prepares a message for employees for Environment
Month and National Safety Week.

TOPIC

Management Spearheads the Promotion of Safety Initiatives

Believing that it is important for management to take the lead in promoting a “Safety First” philosophy, the
PDQDJLQJH[HFXWLYHRI¿FHUZKRVHUYHVDVJHQHUDOPDQDJHURIWKH3URGXFWLRQ0DQDJHPHQW8QLWSUHSDUHVDmonthly memo for distribution to all DIC Group sites in Japan.

companies, plants and R&D facilities in line with these policies andplans in collaboration with the Safety and Environment Group. The
Responsible Care Department provides support to ensure the smooth
progress of these initiatives and conducts audits to ensure complianceand improve safety and environmental performance.

■ Framework for Promoting Responsible Care
Sustainability Committee

Production
Management Unit

Technical
Management Unit

Responsible Care Department■ Deployment of Responsible Care Initiatives

Support for ESH audits
Production and R&D facilities

at Group Companies

Safety and Environment GroupThe Responsible Care Department provides wide-ranging support to
DIC Group companies worldwide, regardless of operating scale, withthe goal of enhancing Responsible Care initiatives Groupwide. Of
particular note, the department assists regional headquarters in Greater&KLQDDQGWKH$VLD±3DFL¿FUHJLRQLQIRVWHULQJKXPDQUHVRXUFHV

Product division
Individuals in charge of
Responsible Care

Technical

Individuals in charge of
Responsible Care

Production

Product division

Product division
Individuals in charge of
Responsible Care

❶ Initiatives in JapanThe DIC Group has 16 companies and 39 production and R&D sites
in Japan. Safety and Environment groups have been established ateach site, which are overseen by the Responsible Care Department.
DIC and DIC Graphics hold GM conferences, which are gatheringsof group managers from principal sites who have been appointed
group managers, four times a year. Other domestic Group companies
participate in biennial Responsible Care conferences. These various
conferences facilitate the discussion of efforts to prevent accidents anddisasters, share information on environmental challenges and ensurecommon awareness of Groupwide rules.

The Sustainability Committee, which answers directly to the president
and CEO, is responsible for setting Responsible Care initiatives.
Chaired by the president and CEO, the committee includes businessgroup presidents, administrative unit heads, CEOs of regional
headquarters and members of the Audit & Supervisory Board. The
committee approves Groupwide sustainability targets and policies, aswell as deliberates and evaluates medium-term sustainability policies
and annual sustainability activity plans. The PDCA cycle is used toevaluate voluntary Responsible Care initiatives implemented by GroupDIC Report 2024

55

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TOPIC

Responsible Care Department Holds 50th Anniversary Group Safety Conference

7RFRPPHPRUDWHWKHWKDQQLYHUVDU\RILWV5HVSRQVLEOH&DUH'HSDUWPHQWLQ¿VFDO\HDUWKH&RPSDQ\KHOGDFHOHEUDWRU\Group safety conference to bolster safety consciousness across the Group. The conference’s opening ceremony was attended
by 17 representatives from corporate headquarters, including the president and CEO, the general manager of the Production
0DQDJHPHQW8QLWDQGHLJKWVLWHUHSUHVHQWDWLYHVDQGLQFOXGHGWKHKDQGLQJRXWRIDZDUGVWRLQGLYLGXDOVZKRGHPRQVWUDWHGD
particularly outstanding performance in the areas of safety health and disaster prevention. This was followed by a lecture on
safety given by a guest speaker. A commemorative publication summarizing the history and achievements of the DIC Groupin the area of sustainability produced by DIC was distributed to attendees, enabling them to learn more about the Responsible
Care Department since its inception.

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

The DIC Group has 21 companies and 22 production sites acrossthe Asia–Pacific region. A regional ESH director has been installed
DW',&$VLD3DFL¿FWKH*URXS¶VUHJLRQDOKHDGTXDUWHUVLQ6LQJDSRUH
who supervises ESH country heads (individuals in charge of ESH
initiatives) in key countries and territories in the region. In addition toan annual regional conference that is also attended by the Responsible
Care Department, monthly meetings are held with the Chemical
6XEVWDQFH,QIRUPDWLRQ0DQDJHPHQW*URXSHVWDEOLVKHGLQ¿VFDO\HDU
2023, to reinforce communication. Country heads hold regular countryand territory-specific meetings, convening representatives to local
subsidiaries and sites to discuss initiatives, targets and challenges.

In Greater China, the DIC Group has 16 companies and 20 sites.
To fortify the Group’s regional ESH framework, DIC has assigned
a regional ESH director to DIC (China), the Group’s regional
headquarters, and ESH coordinators to the southern and eastern partsof the country. In addition to an annual regional conference that is also
attended by the Responsible Care Department, monthly meetings
are held with the newly established Chemical Substance Information
Management Group , to reinforce communication.
❹ Initiatives in the Americas, Europe and Africa

The Sun Chemical Group oversees all Responsible Care initiatives by
DIC Group companies in the Americas, Europe and Africa. Periodic
regional conferences and online meetings are held between local ESH
staff and the Responsible Care Department to ensure the DIC Group’s
ESH policy and its values are shared by all.

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

DIC Asia Paciﬁc Pte Ltd

ESH
country head

ESH
country head

ESH
country head

ESH
country head

ESH
country head

India

Oceania
Australia
New
ZealandThailand

Malaysia

Indonesia

TOPIC

The DIC Group formulates an annual Responsible Care Activity Planand oversees Groupwide initiatives. Based on the Group’s annual
plan, which is prepared by the Responsible Care Department, regional
headquarters develop their own region-specific activity plans, while
individual Group companies, in line with the concept of management
by objectives (MBO), translate these plans into reality by promoting avariety of Responsible Care initiatives.

Philippines
VietnamSingapore
Sri Lanka
Pakistan

Asia–Pacific Region DIC Group Company Holds Annual Safety Day in 2023

The International Labour Organization (ILO)’s World Day for Safety and Health at Work, part of its campaign to promote
occupational safety and health, is celebrated annually on April 28. In line with this initiative, DIC Group companies overseen by',&$VLD3DFL¿FKROGWKHLURZQDQQXDO6DIHW\'D\HYHQWV
DIC Lanka (Private) Ltd. held its annual Safety Day for 2023 in May. The day included a contest to design posters with
important safety messages and best practices that was judged by employees, as well as a safety quiz. To raise awarenessof the importance of safety, DIC (Lanka) employees also took an oath to foster a safety-conscious corporate culture, viewed
immersive training videos using a dedicated platform and took part in role-playing exercises.

DIC Report 2024

56

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VOICE

Safety message from the winner of DIC (China)’s 2023 safety knowledge quiz

DIC (China) holds an annual safety knowledge quiz for DIC Group employees in the PRC with the goal of improving know-how and encouraging
active participation in the effort to maintain a safe work environment. The following is a message from Chen Fei of DIC Zhangjiagang Chemicals
Co., Ltd., winner of the 2023 quiz.
—Thoughts on Safety Activities—:KHQ,¿UVWEHFDPHLQYROYHGLQVDIHW\UHODWHGLQLWLDWLYHV,WKRXJKWWKDW³VDIH´ZDVVLPSO\DVWDWHRIEHLQJ,QRWKHUZRUGVDVORQJDVZHZHUHDEOH
to manage things in a way that kept employees and equipment in a safe condition—i.e., as long as people were safe—our workplace was safe.
However, as I learned about the safety management policy of the DIC Group, and of DIC Zhangjiagang Chemicals, and as I gained experience inthe everyday management of safety and my related skills improved, I came to better understand safety management as a comprehensive system.
Today, I recognize that safety is something that can only be achieved by everyone making safe choices. The essence of safety is the creationof a risk-free environment. This entails choosing both safer behavior and safer equipment. Accordingly, the most important thing is to encourage
HPSOR\HHVWRPDNHVDIHFKRLFHV7RWKLVHQG',&=KDQJMLDJDQJ&KHPLFDOVKDVLGHQWL¿HG¿YHFUXFLDOSUHUHTXLVLWHV
7KH¿UVWLVWKDWPDQDJHPHQWLQFOXGLQJJHQHUDOPDQDJHUVPXVWSODFHDQHPSKDVLVRQVDIHRSHUDWLRQVDQGHQFRXUDJHDOOHPSOR\HHVWRLPSURYHWKHLU
safety awareness. The second is that we must teach employees the risks of making unsafe choices through risk management training and educational
programs dealing with occupational accidents conducted by external providers. Third, we must teach safe behavior by developing systems, standard
operating procedures and processes. Fourth, through training and other initiatives we must educate employees so that making safe choices becomes
second nature. Last, we must correct unsafe choices through safety inspections, behavioral observations and other measures.
In closing, I want to ask all employees to always check that what they are about to do is safe before they start! Consider whether there is not asafe and rational approach that could possibly be deployed across the workplace, thereby making it even safer for everyone.
DIC Zhangjiagang Chemicals Co., Ltd.

Chen Fei■ The DIC Group’s Annual Responsible Care Activity Plan for Fiscal Year 2023
❶ Occupational safety and health• The DIC Group’s fundamental objective remains the achievement of accident-free workplaces. With this in mind, set regional targets for total recordable
LQFLGHQWUDWH 75,5 LQ¿VFDO\HDUDQGLPSOHPHQWUHODWHGLQLWLDWLYHV
• Encourage safety and health awareness among all employees.
❷ Disaster prevention• Encourage the horizontal deployment of measures based on the lessons learned from past major accidents and take steps to prevent their recurrence.
• Conduct risk assessments with the aim of reducing process risks.
• With the aim of reducing process safety accidents, continue calculating such accidents in accordance with the International Council of Chemical Associations(ICCA) guidelines.
❸ Environmental protection• Maintain/lower the impact of production activities on air and wastewater quality.
• Reduce the generation of and maintain/increase the resource recycling rate* for industrial waste.
• Continue to assess water risks affecting production activities. Consider approaches to managing targets for the reduction of water consumption.
• Implement initiatives aimed at improving environmental compliance.
❹ Safety in logistics• Continue to provide information pertinent to the safe transport of chemicals.
❺ Ensuring the safety of chemical substances• Promote the creation of a new global system for managing chemical substance information.
• Further expand deployment of the Wercs and Atrion at DIC Group companies overseas.
• Increase understanding of domestic and overseas laws and regulations governing chemical substances and prevent violations thereof by further enhancing inhouse legal and regulatory training, including at overseas Group companies.
Engagingwith society❻• Continue to publicize the results of Responsible Care activities.
❼ Management systems• Make use of the ESH data collection system.
5HLQIRUFHUHODWLRQVEHWZHHQFRUSRUDWHKHDGTXDUWHUVDQGUHJLRQDOKHDGTXDUWHUVWRSUHYHQWDFFLGHQWVGLVDVWHUVLQ*UHDWHU&KLQDDQGWKH$VLD±3DFL¿FUHJLRQ
• Promote environment- and safety-related education.
* Resource recycling rate is calculated as (Volume of industrial waste recycled (material recycling) + Waste heat recovered (thermal recycling) / Volume of industrial waste generated

DIC Report 2024

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Occupational Safety and Health/Disaster Prevention

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

Ensure occupational safety
and health.

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

Scope of target

Goals for fiscal year 2022

GlobalReduce TRIR.
Targets:
DIC Group in Japan:
PRC:
Asia–Pacific region:
Sun Chemical Group:(Global DIC Group:

Achievements infiscal year 2022
DIC Group in Japan:
PRC:
Asia–Pacific region:
Sun Chemical Group:(Global DIC Group:

2.10
1.00
1.00
8.00
4.65)

Evaluation

2.09
2.06
1.11
4.53
3.00)

★★★

Maintain 0 major accidents.
Prevent disasters.

GlobalGoals for fiscal year 2023
Reduce TRIR.
Targets:
DIC Group in Japan:
PRC:
Asia–Pacific region:
Sun Chemical Group:(Global DIC Group:

0.90
1.00
1.00
8.00
4.47)

Maintain 0 major accidents.

Achieve process safety accident
frequency rate of 0.110 (maintain
DW¿VFDO\HDUOHYHO • Process safety accident frequency
rate: 0.124★★★

Achieve process safety accident
frequency rate of 0.110 (maintain
DW¿VFDO\HDUOHYHO 

Note: TRIR is calculated as (Number of casualties due to occupational accidents resulting in workdays lost + Number of casualties due to occupational accidents not resulting in workdays lost) / Million work hours■ Policies

Basic Approach
Viewing the prioritization of operational safety as a core management tenet, the DIC Group works tirelessly to prevent
occupational accidents and disasters, as well as to bolster occupational health and safety levels.
and local residents. With the aim of preventing such accidents, theGroup encourages individual Group companies to earn the International
Organization for Standardization’s Occupational Safety and Health
0DQDJHPHQW6\VWHP 26+06 FHUWL¿FDWLRQDQGEDVHGRQWKHUHVXOWVRI
stringent risk assessments, prioritizes reducing risks in the workplace bypromoting adherence to Principles of Safe Conduct and training highly
perceptive safety personnel. The Group also strives to enhance safety
through efforts to reinforce its safety infrastructure and create a safetyoriented corporate culture.

The DIC Group recognizes operational safety both as fundamental
to its businesses and the core component of Responsible Care. The
Group thus promotes active occupational safety and health, security
and disaster prevention measures to foster a “Safety First” philosophy
Groupwide and on the part of every employee. Because its operations
span diverse fields, the Group has numerous processes that use
hazardous and toxic materials, as well as rotating devices, not all ofwhich involve chemical reactions. Any accident using such materials
or devices has the potential to significantly impact society in generaland damage the health of Group and/or partner company employees

Workplace safety posters in three languages

DIC Report 2024

58

ESH

as an indicator. This is calculated as the number of fatalities or injuries
due to occupational accidents per million work hours. DIC GroupFRPSDQLHVLQ-DSDQ*UHDWHU&KLQDDQGWKH$VLD±3DFL¿FUHJLRQDVZHOO
as Sun Chemical, use total recordable incident rate (TRIR), an evenmore stringent indicator. TRIR is calculated as the number of casualties(fatalities and injuries) due to occupational accidents, both thoseresulting in workdays lost and those not resulting in workdays lost, permillion work hours. The number of employees used to calculate TRIR
is the number of direct, regular, temporary and part-time employees.
Employees of on-site and outside contractors are not included.

■ Framework for Promotion
Under the supervision of the Sustainability Committee chair (DIC’s
president and CEO), the Responsible Care Department promotes avariety of occupational safety and health initiatives in collaboration withsites via individual regional headquarters. In Japan, the Responsible&DUH'HSDUWPHQWPHHWVUHJXODUO\ZLWKVLWH(6+RI¿FHUVWRFRQ¿UPWKH
status of priority issues and the achievement of targets, as well as tomanage the progress of related efforts. Elsewhere, the Responsible
Care Department and individual regional headquarters work together
to set regional targets, while site ESH officers conduct site risk
assessments, analyze accidents and promote remedial measures toensure the continuous improvement of occupational safety and healthoverseas. (For more information, please see “Policies, Targets andFramework” on page 54.)

,Q¿VFDO\HDUWKH75,5IRUWKHJOREDO',&*URXSZDVEHORZ
its 4.65 goal. None of the occupational accidents at global Group sites
resulted in fatalities. A total of 76 injuries resulting in workdays lost werereported, while injuries not resulting in workdays lost numbered 56.
Looking ahead, the Group will continue working to reduce occupational
accidents by promoting the sharing of information on accidents anddisasters, conducting risk assessments, promoting adherence toPrinciples of Safe Conduct, analyzing the causes of accidents andformulating countermeasures, and providing occupational safety
and health–related education and training. Some of these efforts aredescribed in this report.

■ Principal Initiatives in Fiscal Year 2023
❶ Global DIC GroupThe DIC Group sets regional targets and promotes a variety of
initiatives around the world with the aim of eliminating occupational
accidents. Occupational accident frequency rate—the frequency ofoccupational accidents resulting in workdays lost—is generally used

200

6.00

150

4.50

100

3.00

50

1.50

TRIR

Casualties due to occupational accidents

TRIR and Casualties Due to Occupational Accidents (FY2019–2023)

0.00

0
2019

2020

2021

2022

2023

GlobalFatalities

Occupational accidents resulting in workdays lost

Occupational accidents not resulting in workdays lost

TRIR

*TRIR = (Number of casualties due to occupational accidents resulting in workdays lost + Number of casualties due to occupational accidents not resulting in workdays lost) / Million work hours X 1,000,000

DIC Group (Japan)❷ DIC Group in Japan,Q¿VFDO\HDUWKH',&*URXSLQ-DSDQDFKLHYHGD75,5RI
better than its target of 2.10 and an improvement from 2.23 in theprevious fiscal year. No occupational accidents resulting in fatalities
were reported. There were nine occupational accidents resulting in
workdays lost and 10 occupational accidents not resulting in workdays
lost. These numbers are broken down in the table to the right.

Casualties

Illness/ill health

Total

Fatalities

0

0

0

Injuries resulting in
workdays lost

9

0

9

Injuries not resulting in
workdays lost

9

1

10

Total

18

1

19

DIC Report 2024

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Occupational Accident Frequency Rate

Occupational Accident Severity Rate

2.50
0.15
2.00

1.50

0.10

1.00
0.05
0.50

0.00

19

20

DIC Group (Japan)
JCIA

21

0.00

23 (FY)

22

19
DIC

DIC Group (Global)

Overall manufacturing industry in Japan

Frequency rate ＝Total work hours

JCIA

21

22

23

Overall manufacturing industry in Japan

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

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

20

Severity rate ＝× 1,000,000

Total number of workdays lost due to occupational accidents
Total work hours

× 1,000

A severity rate of 0.10 means 100 workdays lost in one year at a site with 500 employees.
Note: Collection of data for JCIA and the DIC Group in Japan for fiscal year 2023 is currently in progress.

A frequency rate of 1.00 means one occupational accident resulting in workdays lost in one
year at a site with 500 employees.
Notes:
1. The number of employees used in this calculation includes direct regular, part-time and contract employees.
2. Collection of data for JCIA and the DIC Group in Japan for fiscal year 2023 is currently in progress.

reported. There were 66 injuries due to occupational accidents
resulting in workdays lost and 46 injuries due to occupational
accidents not resulting in workdays lost. (For more information,please see page 85.)

❸ DIC Group in Other Countries and Territories

7KH75,5IRUWKH6XQ&KHPLFDO*URXSZDVVLJQL¿FDQWO\EHWWHUWKDQWKHWDUJHWRI%RWKWKH35&DQGWKH$VLD±3DFL¿FUHJLRQ
fell short of their 1.00 targets, reporting a TRIR of 2.06 and 1.11,
respectively. No occupational accidents resulting in fatalities wereTOPIC

DIC Plastics’ Saitama Plant Wins Prize for Excellence in Safety in the JCIA Safety Awards

On May 31, 2023, DIC Plastic, Inc.’s Saitama Plant received a prize for excellence in safety in the JCIA Safety Awards, which were presented in a
ceremony at the Palace Hotel in Tokyo. These awards are given to establishments judged to serve as role models for the voluntary promotion of safety and
RFFXSDWLRQDOKHDOWKLQWKHFKHPLFDOVLQGXVWU\:LQQHUVLQ¿VFDO\HDUWKHWKWLPHWKHVHDZDUGVKDYHEHHQJLYHQRXWZHUHFKRVHQEDVHGRQWKHLU
performance up to December 31, 2022, with four establishments earning recognition. In selecting DIC Plastics’ Saitama Plant, the JCIA cited the facility’s
dedication to building a safety-conscious corporate culture, as a result of which as of the end of 2022 it had achieved 16 years and nine months of accidentfree operations. The DIC Group will continue to place a high priority on occupational safety going forward.

■ Infrastructure for Preventing Occupational Accidents
in the establishment of precise targets for individual countries andregions, and the formulation of programs for making improvements.
,Q¿VFDO\HDUWKH*URXSLQWURGXFHGWKHFORXGEDVHG',&(6+Data Collection System (DECS) in Japan, Greater China and the$VLD±3DFL¿FUHJLRQWRLPSURYHWKHHI¿FLHQF\RIGDWDFROOHFWLRQ )RU
more information, please see page 85.)

❶ Monthly Occupational Safety and Health Data

The DIC Group conducts its diverse businesses in accordancewith a wide range of national and regional legal systems,
working conditions and practices. However, to raise the level ofoccupational safety and health of the entire Group, it is crucial
to establish common standards and benchmarks and to alignregional initiatives. The DIC Group promotes the sharing of
information related to occupational safety and health acrossthe global Group by aggregating regional statistical data on a
PRQWKO\EDVLV6SHFL¿FDOO\ORFDOGDWDLVJDWKHUHGE\',& &KLQD 
for Greater China, DIC Asia Pacific for the Asia–Pacific region,and Sun Chemical for the Americas and Europe. This data isthen collated and analyzed by the Responsible Care Department.
This makes it possible for each Group company to objectively
compare and evaluate their own operational safety, which assists

Statistical Occupational Safety and Health Data
・Number of employees
・Number of casualties due to occupational accidents resulting in workdays lostand not resulting in workdays lost・Number of workdays lost・TRIR・Total work hours
・1XPEHURIDFFLGHQWVLQYROYLQJ¿UHVH[SORVLRQV・Occupational accident frequency rate

DIC Report 2024

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SURGXFWLRQSURFHVVHVDQGSHUWLQHQWODZVDQGUHJXODWLRQV,Q¿VFDO\HDU
the Group introduced an e-learning program in Japan. Initially structured aroundlaws and regulations pertinent to the operational safety of production facilities,
including Japan’s Fire Service Act, Air Pollution Control Law and High Pressure
Gas Safety Act, the e-learning program’s focus was later expanded to include
non-regulatory components such as static electricity, with the appropriateness
RIWKHSURJUDP¶VWUDLQLQJPDWHULDOVYHUL¿HGIURPWKHSHUVSHFWLYHRI5HVSRQVLEOH
Care Department specialists, site ESH officers and production departments.
(PSOR\HHVDUHDEOHWRWDNHXSWRFODVVHV&RPSHWHQFHLVFRQ¿UPHGWKURXJKWHVWLQJ6LQFH¿VFDO\HDUWKH*URXSKDVGHSOR\HGDQRQOLQHRFFXSDWLRQDO
safety and health education service from Tokyo-based LaKeel, Inc., that centers
RQWKHGLVWULEXWLRQRIVKRUW¿OPVRQWKHVXEMHFW❷ Analyzing Accidents and Disasters and Providing Information

in a Timely MannerIn the event of an accident or disaster at a DIC Group site, the site in question
and the corporate headquarters’ department in charge of safety work together
to analyze the causes thereof and implement appropriate countermeasures.
The department in charge of safety and site Safety and Environment groups
hold regular meetings to dig deeper into the causes of accidents and debate theeffectiveness of countermeasures. Findings are deployed horizontally to Groupsites and companies with the aim of preventing recurrence, as well as sharedwith DIC Group companies worldwide. DIC has compiled such information
to create Accident Case Studies and Occupational Accident Case Study
databases, which are used in safety education for Group companies in Japan.
❸ Principles of Safe Conduct

Using resources such as case studies of accidents and disasters in the past,
DIC has created rules and codes of conduct to ensure operational safety for DIC
Group compa QLHVLQ-DSDQWKH35&DQGWKH$VLD±3DFL¿FUHJLRQZKLFKLWKDV
published as a guidebook titled Principles of Safe Conduct7KH¿IWKHGLWLRQRIWKLVJXLGHERRNZDVSXEOLVKHGLQ¿VFDO\HDULQ-DSDQHVH(QJOLVKDQG&KLQHVH

Characters from
LaKeel’s online service❻ Accident and Disaster Calendar

Since fiscal year 2022, the DIC Group has compiled information on past
accidents and disasters into case studies in the form of a monthly calendar
WKDWLVYLVLEOHWRDOOHPSOR\HHVRQWKH¿UVWSDJHRIWKH',&*URXSSRUWDOVLWH
Information posted includes date of occurrence, site, type of event (e.g.,heatstroke, chemical injury or other) and impact (i.e., resulted in workdays lostor did not result in workdays lost). This allows users to identify incidents ofconcern to them and view detailed data summarizing conditions surrounding
occurrence and the effectiveness of countermeasures. Displaying data for
all accidents and disasters on a monthly basis also sheds light on trends.
Employees looking at the calendar on any given day are able to learn about anaccident or disaster that occurred on that day in the past, bolstering awarenessof safety and disaster prevention across the Group.

❹ Conducting Risk Assessments

The DIC Group identifies potential risks to occupational safety and health andimplements initiatives to prevent accidents and occupational injuries. In Japan,
the Group is working to further reduce risks posed by chemical substancesby revamping its risk assessment procedures and lowering the impact of such
VXEVWDQFHVRQWKHKHDOWKRIHPSOR\HHV2ISDUWLFXODUQRWHLQ¿VFDO\HDU',&
updated its risk assessment guidelines, including those for assessment procedures.
After providing pertinent training on the revised guidelines’ administration to
management-level employees at domestic DIC Group plants, DIC evaluateshazards associated with and the toxicity of chemicals set forth in Japan’s Poisonousand Deleterious Substances Control Act and consider measures to lower relatedrisks, such as revising handling methods and upgrading facilities.
❺ Promoting E-Learning–Based Safety and ESH Training at

Production Facilities
To enhance its capabilities in the area of occupational safety and health, andin disaster prevention, the DIC Group recognizes the importance of ensuringthat all of its employees gain a broad understanding of chemical substances,

TOPIC

Clicking on color-coded incidents
reveals detailed event data

Example of an accident report

Health and Safety Project Is Planned to Ensure the Health and Safety of Employees

6LQFH¿VFDO\HDU',&¶V*XQPD3ODQWKDVSURPRWHGDSURJUDPGHVLJQHGWRDGYDQFH
WKHKHDOWKRISODQWHPSOR\HHV3UHYLRXVO\IRFXVHGRQIDOOSUHYHQWLRQLQ¿VFDO\HDU
the program emphasized employee health under the designation “Health and Safety
Project.” Project groups worked together to implement three initiatives under the directionof the project leader.
7KH¿UVWLQLWLDWLYHZDVWRXVHWKHDSS6KLVHL.DUWH ³3RVWXUH&KDUW´ ZKLFKLQYROYHVXVLQJan iPhone to take photographs of a person performing six poses, which are then analyzed
using AI and scored for factors such as posture distortion, to produce a 3D avatar thatshows how the person’s posture can be expected to look in the future. The projec groups
then developed a program encompassing diagnostics and care to help individuals improve
posture-related issues, which was presented in a series of YouTube videos. The second
was to work with the company that operates the plant’s employee cafeteria, Wakana Co.,
Ltd., to plan a series of easy-to-prepare healthy microwavable meals. During the year,
recipes and preparation videos for a total of six dishes were created and displayed via

digital signage and on the Gunma Plant’s dedicated website. The third involved inviting
Shinichiro Okada, a licensed nursing care worker and physical therapist who is an
advocate of nursing care that deploys classical martial arts, to give a lecture on avoiding
lower back strain when moving one’s body and an on-site demonstration of how to safely
lift an 18-liter square can. Going forward, the DIC Group will continue to plan programs
that improve employee health.

Forward-facing
standing position

DIC Report 2024

61

Explanation of Shisei Karte’s
diagnostic process and results

ESH

deploying Principles of Safe Conduct. In Greater China, hands-on
safety training equipment has been installed at Nantong DIC Color
Co., Ltd., DIC Graphics (Guangzhou) Ltd. and Changzhou Huari New
Material Co., Ltd., in the PRC and DIC Graphics Chia Lung Corp. in
Taiwan. In the Asia–Pacific region, equipment has been installed at
DIC Compounds (Malaysia) Sdn. Bhd., PT DIC ASTRA Chemicals inIndonesia, Thailand’s Siam Chemical Industry Co., Ltd., and DIC India
Limited’s Noida Plant. These companies also provide hands-on safety
WUDLQLQJIRUHPSOR\HHVRIDI¿OLDWHGFRPSDQLHVDVZHOODVWUDLQLQJIRU
instructors, in their respective regions.

■ Hands-On Safety Training
The DIC Group provides hands-on safety training in Japan, Greater
China and the Asia–Pacific region. The purpose of such training is
to reduce employees’ willingness to take risks and foster their ability
to recognize danger by simulating actual accidents. This began as adomestic initiative in 2012, after which deployment was expanded to
LQFOXGH*UHDWHU&KLQDDQGWKH$VLD±3DFL¿FUHJLRQ,Q-DSDQKDQGV
on safety training has helped to almost halve the occupational accident
frequency rate at Group sites.

■ Efforts to Foster a Safety-Conscious Corporate Culture

The DIC Group’s hands-on safety training program focuses on simulating
FRPPRQSURGXFWLRQÀRRUDFFLGHQWV²LQFOXGLQJWKRVHLQYROYLQJHQWDQJOHPHQW
in rotating devices, falls from high places and incised wounds caused by
cutting equipment. The objective of this format is to transform the mindsetof employees by encouraging them to think and act on their own to protect
themselves and each other from latent dangers.

❶ Safe Corporate Climate Cultivation Working Groups

In line with its “Safety First” philosophy, the DIC Group works to foster
DVDIHW\FRQVFLRXVFRUSRUDWHFXOWXUH,Q¿VFDO\HDUSHUVRQQHOLQ
charge of safety at plants belonging to DIC and DIC Graphics created
Safe Corporate Climate Cultivation working groups, which meet
regularly to discuss and exchange proposals regarding safety policies
and measures, which are incorporated into Responsible Care initiatives.

❶ DIC Group Companies in Japan

In fiscal year 2014, the DIC Group opened the Saitama Hands-On
Safety Center, a training facility that fosters skilled safety personnel byincorporating hands-on safety training in the new employee and rankspecific training programs. In the same year, DIC and DIC Graphics
began including hands-on safety training and Kiken Yochi Training (KYT)(“hazard prediction training”) in the training curricula for new employees.
The Chiba, Sakai, Hokuriku, Tokyo, Kashima and other plants have alsoestablished their own hands-on safety training equipment and curricula tofurther ingrain a safety-conscious corporate culture. In fiscal year 2015,
the Group downsized six types of hands-on training equipment for lending
to individual sites as part of a mobile training initiative. The Responsible
Care Department trains employees at individual sites to serve as hands-on
training instructors and has established an instructor licensing system.

❷ DIC Safety Pledge Day

DIC has declared September 6 “DIC Safety Pledge Day,” anannual occasion for all of the DIC Group employees to pledge theircommitment to ensuring safe operations and not repeating past serious
accidents and disasters. On this day, each employee makes theirpledge by writing a personal declaration on a special card.

❷ DIC Group Companies in Other Countries and Territories

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

DIC Group companies in other countries and territories are also

Training for new employees at the Saitama Plant

Reading out passages from Principles of Safe
Conduct at the Komaki Plant

Hands-on safety training simulating an accident
involving a fall at the Saitama Hands-On Safety Center

Fiscal Year

Working Group Initiatives

2012

Working groups presented recommendations on safety policies and produced warning stickers to enhance awareness of workplace hazards.
Working groups prepared safety posters featuring the president and CEO and started reading out key passages from Principles of Safe Conduct in workplaces with the aim of making thepractices therein routine.

2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023

Working groups prepared an illustrated version of Principles of Safe Conduct for reading out in workplaces.
Working groups edited Principles of Safe Conduct into a tear-off calendar version for workplace reading circles, which was distributed to sites. The calendar version was also translated into
English and Chinese.
Working groups in the PRC began reading out key passages from Principles of Safe Conduct to foster a culture of safety.
Working groups updated Principles of Safe Conduct.
:RUNLQJJURXSVSXEOLVKHGWKH¿IWKHGLWLRQRIPrinciples of Safe Conduct.
:RUNLQJJURXSVFRPPHQFHGSURGXFWLRQRIDYHUVLRQRIWKH¿IWKHGLWLRQRIPrinciples of Safe Conduct for workplace reading circles.
7KHSXEOLFDWLRQRIDYHUVLRQRIWKH¿IWKHGLWLRQRIPrinciples of Safe Conduct for workplace reading circles was scheduled, but was postponed until 2021 as a result of COVID-19.
Site meetings were held at production facilities, with the president and vice present of DIC and the general manager of the Production Management Unit visiting each site to meet with frontline employees.
$YHUVLRQRIWKH¿IWKHGLWLRQRIPrinciples of Safe Conduct for workplace reading circles was published.
Manual for protective equipment was revised.
Accident records were revised to promote the effective horizonal dissemination of pertinent information and prevent the recurrence of past accidents.

DIC Report 2024

62

ESH

TOPIC

DIC Gives Presentations at the 5th China International Chemical Process Safety Symposium

The 5th China International Chemical Process Safety Symposium was heldin May in the PRC. During the symposium, Responsible Care Department
General Manager Shinobu Yamaguchi gave two presentations, at which hediscussed the DIC Group’s chemical process safety initiatives and the Group’s
management of chemical substance information, respectively. The symposium
serves as a platform for the exchange of information on the latest technologies
in the area of chemical process safety management, as well as on theoutcomes of initiatives promoted by participating companies. DIC was invited
to attend as a special guest of the China Chemical Safety Association, one of
the symposium’s organizers.

Disaster Prevention■ Policies

Basic Approach
In addition to establishing a safety management system to prevent major accidents, the DIC Group implements prompt,
effective countermeasures in the event an accident occurs.
Any fire, explosion or leakage of a hazardous substance from achemicals plant could have a tremendous impact on local residents
and the rest of the community and damage the health of employees,
including those of our partner companies. As well as operating andmaintaining its facilities in line with pertinent laws and regulations,the DIC Group regularly conducts emergency drills and has
earthquake and other response measures in place in the event a
major accident occurs.

on results for the immediately preceding three years and implements
measures to ensure their achievement.
,Q¿VFDO\HDUWKH*URXSUHSRUWHGVHYHQSURFHVVVDIHW\DFFLGHQWVThe process safety accident frequency rate—the number of such
accidents per 200,000 work hours—was 0.124, falling short of theGroup’s target of 0.11. The principal reason for the Group’s suboptimal
performance was the leakage of chemicals, which happened several
times. Looking ahead, the Group will assess risks associated withproduction processes and make necessary improvements.

■ Framework for Promotion
Under the supervision of the Sustainability Committee chair (DIC’s
president and CEO), the Responsible Care Department works with
the Safety and Environment groups of DIC Group companies, plants
and R&D facilities to promote a variety of initiatives. In Japan, theResponsible Care Department holds meetings regularly with site Safety
DQG(QYLURQPHQWJURXSVWRFRQ¿UPWKHVWDWXVRISULRULW\LVVXHVDQGWKH
achievement of targets, and to manage the progress of related efforts.
In other countries and territories, the Responsible Care Department
and individual regional headquarters work together to advance efforts
and site ESH officers, under the guidance of the pertinent regional
headquarters, conduct risk assessments, analyze accidents andpromote remedial measures to ensure the continuous improvementof occupational safety and health. (For more information, please see“Policies, Targets and Framework” on page 54.)

Note: In Japan, a process accident requires reporting if the four criteria listed below are met. (These
apply primarily to fires, explosions and the leakage of hazardous substances related to
manufacturing processes).
(1) The accident was related directly to a chemical substance or a chemical process.
(2) The accident involved production, logistics, storage, utilities or pilot plants.
 7KHDFFLGHQWFDXVHGWKHUHOHDVHRIPDWHULDORUHQHUJ\ HJD¿UHH[SORVLRQRU
implosion) from a process unit.
(4) The accident resulted in any of the following events: Occupational accident, equipment
damage, evacuation or the release of substances included in the Globally Harmonized6\VWHPRI&ODVVL¿FDWLRQDQG/DEHOOLQJRI&KHPLFDOV *+6 

Fiscal year Fiscal year Fiscal year Fiscal year Fiscal year
2019
2020
2021
2022
2023
Number of ICCA process
safety accidents
Process safety accident
frequency rate

6

4

7

3

7

0.110 0.073 0.128 0.055 0.124❷ Risk Assessments at Chemicals Production Facilities■ Principal Initiatives in Fiscal Year 2023

The DIC Group’s production facilities have an array of applicationVSHFL¿FHTXLSPHQWUDQJLQJIURPXQLWVZKHUHFKHPLFDOUHDFWLRQVDUH
conducted to machine presses and other processing equipment. In
2013, the Group formulated the DIC Process Risk Management (PRM)
Guidelines, which it uses to conduct systematic risk assessments at
individual sites. These guidelines outline timetables and implementation
frameworks for assessing risks associated with chemical substances❶ Process Safety Accidents

The International Council of Chemical Associations (ICCA) formulated
criteria for chemical process safety accidents that require reporting in¿VFDO\HDU6LQFH¿VFDO\HDUWKH',&*URXSKDVUHSRUWHG
process safety accidents for the Group in Japan in line with theseVWDQGDUGV%HJLQQLQJLQ¿VFDO\HDUWKH*URXSVHWVWDUJHWVEDVHGDIC Report 2024

63

ESH

handled, production processes, production formulas, machinery andwork practices. Since fiscal year 2020, the Group has also usedhazard and operability (HAZOP) studies developed to assess the riskof accidents such as the leakage of hazardous substances, fires or
explosions at chemicals production facilities. Specifically, the Group
deploys HAZOP studies to assess risks at facilities that have chemical
reaction equipment, including the Yokkaichi, Chiba, Kashima, Sakai
and Hokuriku plants.

floods, earthquakes and tsunami. An accident at, for example, a
FKHPLFDOVSURGXFWLRQIDFLOLW\LQYROYLQJD¿UHH[SORVLRQRUWKHOHDNDJH
RIKD]DUGRXVVXEVWDQFHVFDQDOVRKDYHDVLJQL¿FDQWLPSDFWRQORFDO
communities. In such a situation, it is necessary to collect, comprehendand share accurate information to facilitate appropriate decision-making
and prompt action. DIC has introduced the DIC BC Portal disaster
information system, a web-based system facilitating the collection andsharing of information when an accident or disaster occurs.

❸ Third-Party Assessments by the Safety Competency$UHFHQWQDWXUDOGLVDVWHUWKDWXQGHUVFRUHGWKHEHQH¿WVRIWKH',&%&
Portal was the 2024 Noto earthquake, a magnitude 7.6 earthquake thatstruck the Noto Peninsula of Ishikawa Prefecture on January 1, 2024,
at approximately 4:10 pm. An intensity of 7 on the Japan Meteorological
Agency (JMA) Seismic Intensity Scale was recorded in the cities of
Shika and Wajima, while an intensity of 5 Lower was recorded in thecity of Hakusan, where DIC’s Hokuriku Plant is located. The plant was
fortunately not operating at the time and there was no major damage.
The safety of employees was confirmed and damage to structures
were reported via the new portal. Previously, information on accidents,
disasters and resulting damage were made by telephone and email,among others, using an emergency contact network, but there were
issues with the speed, precision and the scope of information sharing.
The DIC BC Portal has thus allowed the Company to create a system
for sharing information swiftly and exactly, positioning it better to makeeffective decisions.

Enhancement Center
In 2013, DIC introduced an assessment system as a means ofobjectively evaluating and enhancing its safety competency.* Thissystem was developed by the Japan Society for Safety Engineering(JSSE), together with chemicals industry engineers, as a common
industry benchmark and is currently used by all companies in Japanthat are members of the Safety Competency Enhancement Center.
Between fiscal year 2014 and fiscal year 2020, assessments wereconducted at all DIC Plants in Japan. These facilities have usedassessment results to promote further improvements. The Yokkaichi
Plant, for example, subsequently launched a HAZOP study–based risk
assessment. In December 2019, the Safety Competency Enhancement
Center provided DIC’s president and CEO with an overall report on the
results of assessments conducted at six production facilities, facilitating
the sharing of understanding regarding safety and disaster-related
issues across the management team.

❺ Emergency Response Drills* The assessment system encompasses questions about safety infrastructure (technical considerations)and culture of safety (operation and management of organizational culture).

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

❹ The DIC BC Portal

Because of its location, topography and climate, Japan is vulnerable
to a variety of natural disasters, including typhoons, heavy rains,

Environmental Protection■ Policies

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

to formulate far-reaching and efficient strategies for reducing
its environmental footprint. The chart on the next page is acomprehensive illustration of the environmental impact of theGroup’s operating activities in Japan and in other countries andterritories. This chart shows environmental impact in fiscal year
2023 for two key items (total energy consumption and total water
consumption) and three output items (emissions into the air,emissions into water and emissions into soil) in three categories:
CO2 emissions, total wastewater discharged and industrial waste
disposed of as landfill. (Data for the DIC Group in Japan also
includes emissions of substances targeted under PRTRs into theair, water and soil of NOx and SOx, as well as COD in wastewater.)

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

■ Groupwide Environmental Performance
7KH',&*URXSTXDQWL¿HVWKHHQYLURQPHQWDOLQSXWV FRQVXPSWLRQ
of energy and other resources) and outputs (emissions into theenvironment) of its operating activities, and uses its findings

DIC Report 2024

64

Total energy used

12,800,000 GJ-12Production
volume2,071,000
tonnesOUTPUTDIC Group(Global)

INPUT

ESH

191

43,369,000

tonnesEmissions of substancestargeted under PRTRs

13

Total energy consumption

4,447,000 GJ

1,465,000
tonnes

（+37％）

8,353,000 GJ -21%
from fiscal year 2022

11,686-62%

133

23,886,000

15

tonnestonnes

167

-62

%

from fiscal year 2022

19,483,000m

30tonnesIndustrial waste
disposed of as landfill

11,518Emissions into water
Total wastewater
discharged

from fiscal year 2022

Emissions into soil

398,000 -29
tonnes-3%

tonnesEmissions of substancestargeted under Japan’s PRTR

Emissions into the air
CO2 emissions

fiscalyear 2022-60 % from

Industrial waste disposedof as landfill-9%m3 from fiscal year 2022

Aquatic emissions of targeted substances(551 substances and%one substance group)
tonnes from fiscal year 2022

13

fiscalyear 2022-23% fromEmissions into soil

COD in-10 %wastewater 768 tonnes from fiscal year 2022%
from fiscal year 2022

tonnesSOx emissions-5%

Total wastewater discharged

21,765,000 ㎥ -19

0

NOx emissions-34 %from fiscal year 2022

Emissions into water

Fresh water
withdrawn-32%

tonnes from fiscal year 2022

Emissions of substancestargeted under PRTRs

tonnes from fiscal year 2022

from fiscal
year 2022

Total energy consumption

Industrial waste disposedof as landfill-15

tonnes from fiscal year 2022

191

OUTPUT

INPUT-8%Emissions into soil%
m3 from fiscal year 2022

Atmospheric emissions of targeted substances(551 substances and one substance group)from fiscal% year 2022

25,450,000 ㎥

Production
volumeCO2 emissions

136,000
tonnesFresh water
withdrawn

fiscalyear 2022-60 % fromtonnesEmissions into the air

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

（-1％）

5

COD in-10 %wastewater 768 tonnes from fiscal year 2022

OUTPUTINPUTOUTPUT

788,000

SOx emissions

tonnes from fiscal year 2022

Total wastewater discharged

fiscal
-14 % fromyear 2022

+10

-5%

Emissions into water

47,215,000 ㎥

Production
volumeNOx emissions

fiscal-31%
year 2022-23% fromtonnes from fiscal year 2022 133 tonnes

Emissions of substances targeted under PRTRs

from fiscal% year 2022

Fresh water
withdrawn

DIC Group(Overseas)

CO2 emissions

535,000

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

（-11％）DIC Group(Japan)Emissions into the air-22%from fiscal year 2022

-32%

the fiscal year 2022

* DIC monitors 462 class 1 chemical substances designated by Japan’s PRTR and 89 PRTR-designated substances (other than class 1) and one substance group(chain hydrocarbons with up to 4–8 carbon atoms) targeted for study by the JCIA.

DIC Report 2024

65

tonnesESH

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

Goal for fiscal year 2023

Achievement infiscal year 2023

DIC Group (Japan): 280 tonnes(maintain at a 50% decrease fromfiscal year 2000).

DIC Group (Japan): 191
tonnesScope of target

Reduce emissions of VOCs into
the air.

Japan

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

Evaluation

Goal for fiscal year 2024★★★

DIC Group (Japan): 280 tonnes(maintain at a 50% decrease fromfiscal year 2000).

■ Policies and Organization

Basic Approach
The DIC Group works to grasp the environmental impact of its operating activities and promotes systematic measures toreduce its environmental footprint. The Group also advances efforts aimed at preventing environmental pollution.
The DIC Group in Japan succeeded in achieving its voluntary target
IRUUHGXFLQJHPLVVLRQVRI92&VLQWRWKHDLUIRU¿VFDO\HDU²
IURPWKHILVFDO\HDUOHYHO²LQILVFDO\HDU7KH*URXSKDVVLQFHUDLVHGWKLVWDUJHWWRDGHFUHDVHIURPWKH¿VFDO\HDU
level. Previously, the Group collected data for the 12-month period from
-DQXDU\WKURXJK'HFHPEHUEXWHIIHFWLYHIURP¿VFDO\HDUWKLVKDV
been changed to April through March of the following year, consistent
ZLWKWKHUHSRUWLQJSHULRGVSHFL¿HGLQWKHDIRUHPHQWLRQHGODZThe DIC Group operates globally and handles chemical substancesacross multiple regions. The Group must therefore comply withpertinent environmental laws and regulations in different countries
and territories, as well as advance initiatives to prevent environmental
SROOXWLRQ6SHFL¿FDOO\WKH*URXSZRUNVFRQWLQXRXVO\WRUHGXFHKDUPIXO
emissions into the air, water and soil. For example, in addition tolowering emissions of hazardous substances (NOx, SOx and dust) andchemical oxygen demand (COD), the Group works to curtail emissionsof substances targeted under various PRTR schemes.

,QILVFDO\HDU',&*URXSFRPSDQLHVLQ-DSDQUHSRUWHGWRWDO
emissions of VOCs of 191 tonnes, a decline of 5% from fiscal year
2022. The principal reason for this was decrease in products thatare responsible for significant emissions of VOCs from the productmix. DIC Group companies in the PRC and the Asia–Pacific region
also continue to conduct careful monitoring of VOC emissions. In the
PRC, in particular, the Group is updating equipment and stepping
up emissions management practices in response to the tightening of
pertinent local regulations.

■ Principal Initiatives in Fiscal Year 2023
❶ Reducing Emissions of VOCs

In Japan, the DIC Group has worked since fiscal year 2005 to
reduce emissions into the air, water and soil targeted under the
Act on Confirmation, etc. of Release Amounts of Specific Chemical
Substances in the Environment and Promotion of Improvements in theManagement Thereof (substances targeted by Japan’s PRTR) andof substances targeted for management under a voluntary scheme
created by the JCIA.
Emissions of VOCs (Targeted Chemical Substances) into the Air(551 targeted substances, including those designated by
Japan's PRTR*1, and one substance group*2)

Number of Targeted Chemical Substances
Used and/or Produced in Japan in Amounts
Exceeding 1.0 Tonne in Fiscal Year 20223（Tonnes）
1,000

200

191

19

116
239

00

327

541

500

561

DIC Group (Japan)

21

22

23* (FY)

020

DIC Group (Japan) (FY2000 = DIC)
* As used here (as a period for data collection), fiscal year 2023 refers to
the 12-month period from April 4, 2022 to March 31, 2023.

The DIC Group in Japan monitored 462 class 1 chemical
substances designated by the PRTR and 89 PRTR-designatedsubstances (other than class 1) and one substance group(chain hydrocarbons with up to 4–8 carbon atoms) in fiscal\HDU'XULQJWKHSHULRG*URXSFRPSDQLHVLQ-DSDQXVHG
and/or produced a combined total of 116 of these substancesin amounts exceeding 1.0 tonne.

Environmental Emissions of VOCs (Targeted
Chemical Substances) (551 Substances, Including
Those Designated by Japan’s PRTR, and One
Substance Group) in Japan in Fiscal Year 2023
DIC Group (Japan)
Emissions into the air

191 tonnes

Emissions into water

13 tonnes

Emissions into soil

0 tonnes

Total

204 tonnes

DIC Report 2024

66

*1 A PRTR is a scheme for assessing, aggregating
and disseminating data on the source of hazardous
chemicals, amounts released into the environment
and amounts transferred of f-site from industrial
establishments via waste products.
*2 The JCIA is a general incorporated association.
As one of Japan’s major industr y organizations,
the JCIA is a member of the ICCA and pursues
the healthy development of the chemicals
industr y together with other chemical – industrialorganizations around the world.
 7KH ³ VXEVWDQFHV DQG RQH VXEVWDQFH JURXS´
comprises 462 class 1 chemical substances
designated by the PRTR and 89 PRTR-designatedsubstances (other than class 1) and one substancegroup (chain hydrocarbons with up to 4– 8 carbon
atoms) targeted for study by the JCIA.

Targeted Chemical Substances for Which Emissions Exceeded
10.0 Tonnes in Fiscal Year 2023
DIC Group (Japan)
Substance

Emissions
into the environment

Ethyl acetate

78 tonnes

Toluene25 tonnes

Methyl ethyl ketone

19 tonnes

ESH

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

❷ Reducing SOx, NOx and COD

7DNLQJ¿VFDO\HDUDVWKHEDVH\HDUWKH',&*URXSLQ-DSDQKDV
taken steps to reduce SOx and NOx emissions from boilers. The Group
has also worked to reduce COD, an indicator of environmental impact,in wastewater, particularly by installing biomass boilers and modifying
SURGXFWLRQSURFHVVHV,QILVFDO\HDUHPLVVLRQVRI62[E\WKH
*URXSLQ-DSDQDPRXQWHGWRWRQQHVDGHFOLQHRIIURPWKH¿VFDO\HDUOHYHOZKLOHHPLVVLRQVRI12[ZHUHWRQQHVGRZQ
IURP¿VFDO\HDU,QFRQWUDVWWKHGRPHVWLF',&*URXS¶V&2'ZDVWRQQHVORZHUWKDQLQWKHSUHYLRXV¿VFDO\HDUEXWVWLOOKLJKDQG
XSIURP¿VFDO\HDU3ULQFLSDOFRQWULEXWLQJIDFWRUVLQFOXGHGDQ

DIC Group companies in other countries and territories are also
switching from diesel to natural gas, and from diesel- and heavy oil–fired boilers to biomass boilers. To reduce COD, these companies
are promoting the reuse of water and the installment of environmentfriendly closed-loop recycling and wastewater treatment systems that
purify wastewater to a level that exceeds that mandated by local laws.

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

133
500

100

8

0

90

19

12

9

13

20

21

22

SOx emissions

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

DIC Group (Japan) (FY2000 = DIC)

768

172

854

186

940

182

723

183

850

200

204
202

1,000

745

300

5
23 (FY)
0
90

19

20

21

22

23 (FY)

DIC❸ Complying with Regulations Governing Emissions of Dioxins

Dioxin Concentrations in Waste Gas and Wastewater Emissions
from DIC Group Incinerators in Japan

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

Waste gas
Site

❹ Ensuring the Appropriate Collection and Storage of PCBs

DIC Group companies in Japan work to ensure the appropriate collection,
storage and management of equipment containing polychlorinatedbiphenyls (PCBs), including older-model transformers and capacitors, inaccordance with the Law Concerning Special Measures for Promotionof Proper Treatment of PCB Wastes. These companies also ensure that
equipment containing PCBs is disposed of in accordance with the practices
of Japan Environmental Storage & Safety Corporation (JESCO). The DIC
Group in Japan completed disposal of waste with high concentrations
RI3&%VLQILVFDO\HDU(IIRUWVWRPDQDJHDQGGLVSRVHRIORZ
concentration PCB waste are proceeding apace.

Chiba Plant (DIC)*❺ Responding to Asbestos Risks

Emissions
reported inÀVFDO\HDU
(ng-TEC/Nm3)

50.1900Standard(pg-TEC/l)Emissions reported
LQÀVFDO\HDU
(pg-TEC/l)

100.0360102.7000

Hokuriku Plant (DIC)

50.0000100.0027

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

10

Dormant

NA‒

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

100.0030NA‒

Harima Plant(SEIKO PMC CORPORATION)

10

0.0100NA‒

The DIC Group in Japan strives to respond to potential risks associated
ZLWKDVEHVWRVGXULQJGHPROLWLRQRUZKHQUHWUR¿WWLQJHTXLSPHQWDVRXWOLQHG
in the Ordinance on the Prevention of Health Impairment due to Asbestos
and the revised Air Pollution Control Law.
❻ Soil and Groundwater Pollution

In addition to complying strictly with the Soil Contamination
Countermeasures Act, the DIC Group in Japan implements soil andgroundwater surveys and countermeasures as necessary to assess relatedrisks. In fiscal year 2021, a voluntary survey conducted at a third site
belonging to the Hokuriku Plant resulted in the site being designated as an³$UHDZKLFK5HTXLUHV0HDVXUHV´3XUL¿FDWLRQPHDVXUHVDUHFXUUHQWO\EHLQJ
implemented in line with the Act, as well as with pertinent regulations.

DIC Report 2024

67

Standard(ng-TEC/
Nm3)

Wastewater

ESH

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

Scope of target

Achievements infiscal year 2023

Goals for fiscal year 2023
• Industrial waste disposed of as
landfill
DIC Group (Japan): 200 tonnes(essentially level with fiscal year
2021; down 95% from fiscal year
2000)
• Industrial waste generated byproduction facilities
DIC Group (Japan): 45,000 tonnes(essentially level with fiscal year 2022)• Reduce industrial waste
disposed of as landfill (achieve“zero emissions”).
Japan• Reduce industrial waste
generated by production
facilities.

Promote recycling.

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

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

Japan• Industrial waste disposedof as landfill: 167 tonnes• Industrial waste generated
by production facilities:
39,790 tonnes

Resource recycling rate:
90%

Evaluation

★★★

★★★

★★★

Goals for fiscal year 2024

• Industrial waste disposed of as
landfill
DIC Group (Japan): 200 tonnes(down 95% from fiscal year 2000)
Industrial waste generated byproduction facilities
DIC Group (Japan): 45,000 tonnes(essentially level with fiscal year 2023)

Resource recycling rate
DIC Group (Japan): 80%* Resource recycling rate: (Volume of industrial waste recycled + Waste heat recovered) / Volume of industrial waste generated■ Policies and Organization

Basic Approach
To promote the realization of a circular economy, the DIC Group strives to use resources effectively, as well as to reduce theimpact of its disposal of industrial waste.
stepping up efforts to encourage the “3Rs” of waste management (reuse, reduceand recycle). Of particular note, the Group is striving to minimize production
losses by increasing throughput yields. The Group also works to fully grasp andeffectively manage industrial waste at its production facilities from generation
DQGGLVFKDUJHRQVLWHWKURXJKWRLQWHUPHGLDWHWUHDWPHQWDQG¿QDOGLVSRVDODV
landfill, as well as to reduce the volume of industrial waste it disposes of as
ODQG¿OODQGWRERRVWLWVUHVRXUFHUHF\FOLQJUDWHE\LQFUHDVLQJUHF\FOLQJ PDWHULDO
and chemical) and recovering waste heat from incineration.

Illegal dumping of industrial waste may directly lead to serious environmental
pollution. It is thus important to ensure the proper handling of waste from
GLVFKDUJHWKURXJKWR¿QDOGLVSRVDO7KH',&*URXSZRUNVWRHIIHFWLYHO\PDQDJH
and dispose of industrial waste as appropriate, depending on degree of risk, incompliance with the laws of the countries and territories where its production
facilities are located.
In seeking to promote the realization of a circular economy, the DIC Group is
DIC’s Efforts to Drive the Realizationand Expansion of a Circular Economy

Design

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

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

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

Customer

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

Sale

Supplier

Recycling
Materials procured throughsustainable supply chains

Realization of chemical
and material recycling

Scope 3 Category 12
Increase recycling rate
Reduce disposal of
used products

Resource recycling governanceUse of digital infrastructure

GLVFKDUJHRQVLWHWKURXJKWRLQWHUPHGLDWHWUHDWPHQWDQG¿QDOGLVSRVDODVODQG¿OO7KHFKDUWRQWKHQH[WSDJHLOOXVWUDWHVWKHPDQDJHPHQWRILQGXVWULDOZDVWHE\WKHJOREDO',&*URXSLQ¿VFDO\HDU$VWKLV
shows, the Group breaks down and calculates amounts at all stages ofthe process.

■ Principal Initiatives in Fiscal Year 2022
❶ DIC Group in JapanThe DIC Group works to fully grasp and effectively manage industrial
waste at its production facilities around the world from generation and

DIC Report 2024

68

ESH

Industrial Waste Generated and Disposed of by the Global DIC Group in Fiscal Year 2023
Volume incinerated on-site
275 tonnes (0%)

Volume recycled on-site
109 tonnes (0%)
Waste heat recovered on-site
15,609 tonnes (14%)

Volume generated
108,604 tonnes (100%)Volume recycled off-site
40,994 tonnes (38%)

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

Volume discharged byproduction facilities
92,611 tonnes (85%)

Waste heat recovered on-site
28,452 tonnes (26%)

Volume disposed of as
landfill off-site
11,686 tonnes (11%)

Volume incinerated off-site
11,479 tonnes (11%)
Note: Percentages in parentheses indicate portion of volume generated

ZKLFKDPRXQWHGWRWRQQHVDGHFUHDVHRIIURP¿VFDO\HDU2022, thanks to robust initiatives at individual facilities. The Groupalso outpaced its target for industrial waste disposed of as landfill
by Group companies in Japan, which totaled 167 tonnes, down 3%
from the previous period, as a result of which it also achieved a
GHFOLQHLQLQGXVWULDOZDVWHGLVSRVHGRIDVODQG¿OO7KLVLVDWWULEXWDEOH
to the decrease in waste generated, resulting in a smaller volume
of waste requiring disposal as landfill. Going forward, the Group willcontinue to reinforce its zero emissions initiatives. Group companies
also pressed ahead with efforts to ensure the appropriate disposal ofequipment containing PCBs and of unprocessed waste. The disposal of
XQSURFHVVHGZDVWHZDVHVVHQWLDOO\FRPSOHWHGLQWKH¿UVWKDOIRI¿VFDO
year 2023.

❷ DIC Group in JapanThe DIC Group in Japan has long promoted zero emissions initiatives
with the aim of reducing the total volume of industrial waste disposed
RIRIIVLWHDVODQG¿OOE\IURPWKH¿VFDO\HDUOHYHODWDUJHWLWDFWXDOO\DFKLHYHGLQ¿VFDO\HDU7KH*URXSLVFXUUHQWO\ZRUNLQJWRPDLQWDLQWKHDQQXDOLQGXVWULDOZDVWHLWGLVSRVHVRIDVODQG¿OODWWKLV
level (200 tonnes). With efforts to shift toward a circular economy
intensifying in recent years, the Group is now also working to reduce
waste generated and waste discharged by Group production facilities
DVZHOODVWRFXUEZDVWHGLVSRVHGRIDVODQG¿OODQGKDVVHWDWDUJHWRI
45,000 tonnes for the former.
In fiscal year 2023, the DIC Group in Japan met its target forindustrial waste generated by Group production facilities in Japan,,QGXVWULDO:DVWH'LVSRVHGRIDV/DQGÀOO
9,000

7,981

（Tonnes）

DIC Group(Japan)

167

4,326

02

03

tonnesFiscal year 2023

537

320

232

207

158

106

86

80

139

183

148

204

217

167

199

173

167

1,288

3,000

991

2,296

4,190

5,581

6,000

07

08

09

10

11

12

13

14

15

16

17

18

19

20

21

22

23（FY）

0

00

01

04

05

06

（Base year）

DIC Group (Japan) (FY2000-2022 = DIC)DIC Report 2024

69

ESH

Breakdown of Waste Generated by Production Facilities in Japan in Fiscal Year 2023
Type of waste

Volume generated (tonnes)

Cinders857

Sludge10,023

Waste oil

9,917

Waste acid554

Waste alkali

1,624

Waste plastics

4,720

Scrap rubber

0

Scrap metal

2,112

Waste glass, concrete and ceramic

71

Slag

0

Debris

0

Dust

20

Waste paper0

Wood chips

0

Fiber waste

0$QLPDODQGSODQWUHVLGXHV

15

Unwanted animal solid matter0

Livestock excreta

0$QLPDOFDUFDVVHV

0

Industrial waste from products containing mercury

2

Total for nontoxic waste (ordinary industrial waste, etc.)

31,204

Toxic waste (specially controlled industrial waste)

8,585

Total waste (toxic and nontoxic)

39,790TOPIC

Processing Discarded Pallets into Materials with Value at the Chiba Plant

DIC continues working to reduce waste to rationalize waste-related costs and lower CO2HPLVVLRQV$VDSDUWRIWKLVHIIRUWWKH&RPSDQ\LVSURFHVVLQJGLVFDUGHGSDOOHWVLQWRPDWHULDOVZLWKYDOXHDWLWV&KLED3ODQWZLWKWKHDLPRIVKULQNLQJWKHYROXPHRILQGXVWULDOZDVWHGLVSRVHGRIE\WKHIDFLOLW\,Q¿VFDO\HDU2022, the plant processed approximately 130 tonnes of plastic and wooden pallets, rather than simply disposing of them as waste, with the former recycled
into raw materials and the latter sold on a secondhand basis to be reused. Because processing items that would otherwise be disposed of into materials withvalue shrinks the overall amount of waste, it also helps rationalize related costs and curb CO2 emissions.
$VRI¿VFDO\HDUPRUHWKDQRI',&¶VGLVFDUGHGSDOOHWVDUHSURFHVVHG
into materials with value. The Chiba Plant expects to have processed morethen 140 tonnes of pallets during the period. With increasing effectiveness ofprocessing at the Chiba Plant, the Company has begun to promote the horizontal
deployment of this approach and is currently also processing waste flexible
containers in a bid to further reduce waste.

plastic pallets

DIC Report 2024

70

wooden pallets

ESH

VSHFL¿HGE\WKH$FWDUHWDNLQJVWHSVWRFXUWDLOWKHYROXPHWKH\JHQHUDWH
DQGWRH[SDQGUHF\FOLQJLQWRQHZSODVWLFUHVRXUFHV%HJLQQLQJLQ¿VFDO
year 2023, DIC discloses plastic resource–recycling data, including
volume of waste plastic generated and recycling rate, for the DIC
Group in Japan in compliance with pertinent laws and regulations.

❸ Initiatives in Japan Related to Waste Plastics

7KH$FWRQ3URPRWLRQRI5HVRXUFH&LUFXODWLRQIRU3ODVWLFVZKLFKFDPH
LQWRIRUFHLQ$SULOREOLJHVFRPSDQLHVWRPDNHHIIRUWVWRUHF\FOH
SODVWLFUHVRXUFHVWKURXJKRXWDSURGXFW¶VOLIHF\FOHIURPGHVLJQWKURXJKWR¿QDOGLVSRVDO&RPSDQLHVUHVSRQVLEOHIRUJHQHUDWLQJZDVWHSODVWLFV

Plastic Recycling Rate and Resource Recycling Rate (Waste Recycled into Materials with Value + Waste)
Domestic
DIC Group company

Waste

Materials with value + waste

Volume discharged(tonnes)

Recycling rate

Resource
recycling rate

Volume discharged(tonnes)

Recycling rate

Resource
recycling rate

2,717

29.9%

98.6%

3,644

47.7%

99.0%

DIC Graphics Corporation

256

61.8%

91.7%

260

62.4%

91.9%

DIC EP Corp.

30

17.7%

93.7%

30

17.7%

93.7%

DIC Color Coatings, Inc.

28

5.0%

100.0%

28

5.0%

100.0%DIC Kitanihon Polymer Co., Ltd.

29

27.0%

27.0%

29

27.0%

27.0%

DIC Kyushu Polymer Co., Ltd.

14

5.0%

100.0%

14

5.0%

100.0%DIC Decor, Inc.

163

43.2%

44.2%

188

50.6%

44.2%

DIC Plastics, Inc.

30

45.0%

96.1%

82

80.1%

96.1%

6(,.230&&25325$7,21

65

56.1%

97.0%

84

66.0%

97.0%

KJ Chemicals Corporation

21

45.6%

97.3%

44

73.6%

97.3%

DIC Corporation

Target for materials with value + waste
DIC Corporation

Recycling rate

48.2% (fiscal year 2025)

DIC Graphics Corporation

Recycling rate

63.0% (fiscal year 2025)

territories totaled 68,815 tonnes, down 10% from fiscal year 2021.
:DVWHGLVSRVHGRIDVODQG¿OODWWKHVHVLWHVIHOOWRWRQQHV*RLQJIRUZDUGWKH*URXS¶VUHJLRQDOKHDGTXDUWHUVRXWVLGH-DSDQZLOO
focus on reinforcing compliance with local laws and regulations, as wellas curbing the generation of industrial waste and the disposal thereof
DVODQG¿OO

❹ Deployment of the Electronic Manifest System in Japan-DSDQ¶VH0DQLIHVWV\VWHPKHOSVPDQDJHWKHPRYHPHQWRILQGXVWULDO
waste by facilitating the electronic transmission of manifest informationand tracking the flow of waste from generation through transport,
LQWHUPHGLDWHWUHDWPHQWDQGGLVSRVDO,Q¿VFDO\HDUWKH',&*URXS
LQ-DSDQLQWURGXFHG*(1(6<6(&2DFRPSUHKHQVLYHLQGXVWULDOZDVWH
management system, for use with the e-Manifest system. Deploymentof this system was completed at all domestic Group production sites
LQ¿VFDO\HDUDQDFKLHYHPHQWWKDWKDVKHOSHGWRERWKVDYHODERU
and ensure legal compliance,❺ DIC Group in Other Countries and Territories

In addition to ensuring that disposal of industrial waste complies withnational and regional legal and regulatory requirements, the DIC*URXS¶VSURGXFWLRQIDFLOLWLHVRXWVLGH-DSDQZRUNWRPLQLPL]HZDVWHWKURXJKWKHYROXQWDU\UHF\FOLQJDQGUHXVHRIPDWHULDOV$WSURGXFWLRQIDFLOLWLHVLQWKH$PHULFDVDQG(XURSH*UHDWHU&KLQDDQGWKH$VLD±
3DFL¿FUHJLRQWKH*URXSLVLQWURGXFLQJQHZZDVWHWUHDWPHQWV\VWHPV
and promoting the horizontal deployment of best practices, including
those aimed at improving production processes. In fiscal year 2023,
waste generated by DIC production sites in other countries and

DIC Report 2024

71

ESH

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

Asses and manage water risks
at production facilities.

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

Scope of target

Goals for fiscal year 2023

Achievement infiscal year 2023

Evaluation

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

The implementation rate forcountermeasures at the threehigh-risk sites was 75%.

★★★

Goals for fiscal year 2024

Target implementation rate forcountermeasures at high-risksites: 100% by fiscal year 2024

■ Policies and Organization

Basic Approach
7KH',&*URXSPDLQWDLQVD¿UPJUDVSRIZDWHUULVNVUHOHYDQWWR*URXSRSHUDWLRQVDQGSURPRWHVDYDULHW\RILQLWLDWLYHVWRHQVXUHWKHHIIHFWLYHXVHRIZDWHUUHVRXUFHV)LQGLQJHIIHFWLYHZD\VWRFRQVHUYHDQGPDQDJHZDWHUUHVRXUFHVLVD
crucial global challenge. The DIC Group withdraws fresh water frommultiple sources for cooling production equipment, as well as for use inproducts and as drinking water for employees. The Group also discharges
wastewater—after purifying it in accordance with internal standards
that exceed official standards in the countries and territories in which it
KDVRSHUDWLRQV²LQWRULYHUVDQGRWKHUIUHVKZDWHUERGLHV,QDGGLWLRQWRHYDOXDWLQJZDWHUULVNVDWHDFKRILWVSURGXFWLRQVLWHVDURXQGWKHZRUOGDQG
implementing countermeasures, the Group works to protect and ensure the
HIIHFWLYHXVHRIZDWHUUHVRXUFHV

framework for assessing water risks arising from both local water conditions
and site operations, which it has deployed to screen sites in Japan, the35&DQGWKH$VLD±3DFL¿FUHJLRQ6SHFL¿FDOO\WKH*URXSFODVVL¿HGZDWHUULVNVLQWRFDWHJRULHVVXFKDVGURXJKWÀRRGVDQGZDWHUTXDOLW\DQGPDSSHG
them using two scales, namely, “regional water risks” and “operational
water risks,” classifying those sites that register at the upper end of bothscales as being high risk, as shown in the diagram below. Regional water
risks were assessed using the Aqueduct Water Risk Atlas, while operational
ZDWHUULVNVZHUHHYDOXDWHGXVLQJDTXHVWLRQQDLUHGHYHORSHGLQKRXVH
6FUHHQLQJLGHQWL¿HGVLWHVDVEHLQJKLJKULVN■ Principal Initiatives in Fiscal Year 2023

7KH',&*URXSUHVROYHGWRFRQILUPDQGLPSOHPHQWFRXQWHUPHDVXUHVDWKLJKULVNVLWHVEHWZHHQILVFDO\HDUVDQGDQGVHWWDUJHWVIRUUDWHRIFRPSOHWLRQ,Q¿VFDO\HDUWKH*URXSZLOOUHYLVHLWVZDWHUULVNDVVHVVPHQWFULWHULDWRLGHQWLI\VLWHVZLWKORZHUULVNOHYHOVZKLFKLWZLOOGHVLJQDWHDVPHGLXPULVNVLWHV%HWZHHQ¿VFDO\HDUVDQGWKH
Group also plans to implement countermeasures at medium-risk sites.
(Please see the diagram below.)❶ Assessing Water Risks,QUHFRJQLWLRQRIWKHIDFWWKDWZDWHUULVNVZKLFKLQFOXGHGURXJKWÀRRGVDQG
ZDWHUTXDOLW\YDU\JUHDWO\IURPUHJLRQWRUHJLRQFRPSDQLHVDUHLQFUHDVLQJO\expected to set targets that take into account local water conditions inline with regional challenges as outlined recently by the World Wide Fund
IRU1DWXUH ::)  ,Q¿VFDO\HDUWKH',&*URXSEHJDQXVLQJWKH
$TXHGXFW:DWHU5LVN$WODV +RZHYHU$TXHGXFWDVVHVVHVRQO\UHJLRQDO
water risks, that is, risks associated with a site’s location, which are causedby external factors, and does not take into account operational water risks,
which are attributable to internal factors. Accordingly, under the guidanceof a third-party organization the Group established a consistent global

The DIC Group is gradually implementing countermeasures at high-risksites, completing this process at four sites each in fiscal years 2021
DQGDQGDWWKUHHVLWHVLQ¿VFDO\HDU2QHKLJKULVNVLWHZDVFORVHGLQODWH¿VFDO\HDUDVDUHVXOWRIZKLFKWKHWRWDOQXPEHURI
such sites is currently 15.
*1 Targets were published in the World Resources Institute (WRI)’s Setting Site Water Targets Informed
by Catchment Context: A Guide for Companies.
*2 The DIC Group uses the WRI’s Aqueduct Water Risk Atlas to map water risks such as drought andÀRRGVDPRQJRWKHUVDWVLWHVZRUOGZLGH

Operational water risks

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

2024

Category

2030

Revise water risk
assessment criteria

Assess water
risks

Identify
high-risk sites

2025

Rank sites in terms ofpotential business impact

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

DIC Report 2024

72

Complete implementationof countermeasuresat high-risk sites

Identify
medium-risk sites

Rank sites in terms ofpotential business impact

Complete implementationof countermeasures at
medium-risk sites

ESH

Assessment of regional water risks using Aqueduct

plant domestic wastewater (gray water) undergoes primary treatmentusing a process such as oil–water separation before being discharged offsite. Wastewater from production processes also goes through secondary
WUHDWPHQW²IRUH[DPSOHDQDFWLYDWHGVOXGJHSURFHVV²EHIRUHEHLQJFRROHG
to a normal room temperature, undergoing oil–water separation and being
GLVFKDUJHGRIIVLWH,QVRPHFDVHVDWHUWLDU\SURFHVVVXFKDVDFWLYDWHG
FDUERQWUHDWPHQWLVIXUWKHUHPSOR\HGWRUHPRYHKDUPIXOVXEVWDQFHV❷ Managing the Withdrawal of Water at and Discharge ofWastewater from Sites
ISince fiscal year 2017, the DIC Group has used the Global Reporting,QLWLDWLYH *5, ¶VJXLGHOLQH IRUFROOHFWLQJGDWDRQIUHVKZDWHUZLWKGUDZQ
and wastewater discharged at each of its sites. In fiscal year 2023, theglobal DIC Group withdrew a total of 47,215,000 m3 of fresh water, downIURPILVFDO\HDUDQGGLVFKDUJHGDWRWDORIPRI
wastewater, a decline of 15%. Fresh water withdrawn and wastewater
discharged at Group sites in Japan amounted to 25,450,000 m3, a
GHFUHDVHZKLOHZDVWHZDWHUGLVFKDUJHGDWPZDVGRZQ)UHVKZDWHUZLWKGUDZQDWDQGZDVWHZDWHUGLVFKDUJHGIURP',&*URXSVLWHVLQRWKHUFRXQWULHVDQGWHUULWRULHVIHOOWRPDQG
WRPUHVSHFWLYHO\7KH',&*URXSZLOOFRQWLQXHWRDGYDQFHWKH
HIIHFWLYHPDQDJHPHQWRIZDWHUUHVRXUFHV

DIC’s Central Research Laboratories in Chiba Prefecture, Japan, andVXEVLGLDU\6LDP&KHPLFDO,QGXVWU\&R/WGLQ7KDLODQGKDYHDFKLHYHG
zero discharge of wastewater. Both continue working to further reduce
their impact on water resources. At the Central Research Laboratories,
groundwater is used to supply the approximately 40 m3 of water usedby the site daily. The facility has established a fully closed system, whichmeans all water is treated and reused or disposed of on-site. The Central
Research Laboratories has formulated a plan to install additional water
SXULILFDWLRQHTXLSPHQWZLWKWKHDLPRILPSURYLQJWKHTXDOLW\RIWUHDWHG
wastewater, thereby reducing the amount of water it withdraws.

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

Total Fresh Water Withdrawn (Fiscal Years 2021–2023)
60,000Fresh water withdrawn (1,000 m3)

50,00040,00030,00020,00010,00002021 2022 2023

2021 2022 2023

Japan

Overseas

Surface water (rivers, etc.)

Groundwater

Tap water/industrial water

OthersRainwater

2021 2022 2023 (FY)GlobalWastewater generated by other organizations

System for treating wastewater from research for reuse at theCentral Research Laboratories❸ Efforts to Reduce Use of Water Resources and Address Risks

Related to the Discharge of Wastewater
Most of the water used by the DIC Group is for the cooling of equipment.
Accordingly, the Group uses cooling towers, among others, to recycle
water and reduce use of water resources. To lower risks associated withZDVWHZDWHUJHQHUDWHGE\LWVSURGXFWLRQIDFLOLWLHVWKH*URXSSXUL¿HVVXFKZDVWHZDWHUWRDOHYHOWKDWH[FHHGVWKDWPDQGDWHGE\ODZ)RUH[DPSOH

❹ Reporting to the CDP’s Water Security Program in 2023

,QILVFDO\HDUWKH',&*URXSUHFHLYHGDVFRUHRI%LQWKH&'3¶V 
Water Security Program. Going forward, the Group will continue working to
VWUHQJWKHQLWVZDWHUVHFXULW\LQLWLDWLYHVDQGHDUQDKLJKHUHYDOXDWLRQ*The CDP, formerly the Carbon Disclosure Project, is a nonprofit organization that operates a global
disclosure system that seeks to promote greenhouse gas emissions reductions, water resources
PDQDJHPHQWDQGIRUHVWFRQVHUYDWLRQDIC Report 2024

73

ESH

Biodiversity
responsible management of biodiversity is crucial not only forthe environment but also for its own success over the longterm. Guided by this policy, which demonstrates its dedication
to ensuring a sustainable future, the Group will work tirelessly
to achieve its goals and help realize a healthier planet for
generations to come.

The DIC Group has formulated the DIC Group Biodiversity
Policy. This policy outlines the Group’s responsibilities, goals
and metrics for preserving biodiversity and was createdwith the aim of contributing actively to the conservation andprotection of biodiversity while also minimizing the Group’s
impact on the environment. The Group recognizes that the(Published on November 15, 2023)

The DIC Group Biodiversity Policy
Article 1 (Purpose)
The DIC Group is committed to environmental responsibility and sustainability. Recognizing the importance of
biodiversity* in maintaining a healthy and balanced ecosystem, we are dedicated to minimizing our impact on theenvironment while contributing actively to the conservation and protection of biodiversity. This policy outlines ourcommitment to biodiversity conservation and our related goals, as well as the measures we will take to achieve them.
We acknowledge that the responsible management of biodiversity is essential not only for the environment but also
for the long-term success of our business. This policy is a testament to our dedication to sustainability, and we willcontinue to work tirelessly to achieve our goals and contribute to a healthier planet for future generations.
* “Biodiversity” is the diversity of all living things, whether from terrestrial, marine or other aquatic, complex or other ecosystems, other habitats or other growthenvironments and includes diversity within species, among species and of ecosystems.

Article 2 (Compliance with Laws and Regulations)
The DIC Group complies with all national and international laws and regulations concerning biodiversity preservation,
HQYLURQPHQWDOSURWHFWLRQDQGQDWXUDOUHVRXUFHVPDQDJHPHQW:KHQDFRQÀLFWEHWZHHQQDWLRQDOODZDQGLQWHUQDWLRQDO
law arises, we seek ways to respect internationally recognized rules to the extent possible.
Article 3 (Biodiversity Assessment)
The DIC Group assesses the impact of its business on biodiversity and capitalizes on the results thereof to mitigate
negative effects.
Article 4 (Local Care)The DIC Group conducts its business while minimizing damage to local habitats and ecosystems.
Article 5 (Sustainable Procurement)
The DIC Group seeks to procure raw materials, products and services in a manner that minimizes negative impacts
on biodiversity. We use supplier management platforms (e.g., EcoVadis) and questionnaires to assess suppliers andencourage their corporate social responsibility initiatives.
Article 6 (Pollution Prevention)
The DIC Group employs technologies and practices that minimize the release of pollutants, chemicals and wastematerials into the environment, ensuring that its operations do not harm local ecosystems. We improve downstream
recyclability by applying the “5Rs”* and the principles of a circular economy.
* The 5Rs (reuse, reduce, renew, recycle and redesign) describes an approach to advancing the realization of a circular economy and the reduction of carbon footprintthat is incorporated into all DIC Group operations and product creation efforts.

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74

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Article 7 (Research and Technological Innovation)
The DIC Group contributes to the conservation of natural capital through biodiversity-friendly products and services,
including sustainable sourcing of raw materials. We contribute to industry collaborations with the aim of achieving
VXVWDLQDEOHSUR¿WV
Article 8 (Education and Training)
The DIC Group provides education and training programs for its employees and subcontracted companies toraise awareness about the importance of preserving biodiversity. Our goal is to foster a culture of environmental
responsibility across the DIC Group.
Article 9 (Reporting and Transparency)
The DIC Group maintains transparent communication regarding its biodiversity initiatives and performance. We
regularly report on our progress and engage with stakeholders.
Article 10 (Continuous Improvement)
The DIC Group will regularly review and update this policy to reflect emerging best practices and evolving
environmental standards. We are committed to the continuous improvement of our efforts to protect and enhancebiodiversity.
Article 11 (Community Engagement)
The DIC Group engages with local communities in promoting its biodiversity preservation initiatives. Building strong
relationships and understanding local perspectives enables us to work toward the common goal of protecting ourshared environment.

TOPICS

Helping Preserve Suizenji Nori

DIC Corporation has begun working with DIC Group company Green Science Materials, Inc. (GSM), which manufactures and sells SACRAN™,* apolysaccharide extracted from Suizenji nori, to support initiatives aimed at preserving this endangered species. Suizenji nori is a blue-green algae indigenous
to Japan that because of climate change and other factors that have altered freshwater ecosystems currently grows naturally only in the Kogane River inFukuoka Prefecture on the island of Kyushu. As a result, it has been declared endangered.
7KH',&*URXSLVWKH¿UVWLQWKHZRUOGWRVXFFHHGLQGHYHORSLQJDVXFFHVVIXOLQGRRUPDVVFXOWLYDWLRQWHFKQRORJ\IRU6XL]HQMLQRULSRVLWLRQLQJLWWRFRQWULEXWHWR
the conservation of, as well as to expand applications for, this algae species. However, the Group’s efforts have not stopped with the commercial cultivation
RI6XL]HQMLQRUL7KH*URXSH[SDQGHGLWVIRFXVWRLQFOXGHSUHVHUYDWLRQRI6XL]HQMLQRUL¶VQDWXUDOKDELWDW,Q¿VFDO\HDUWKH*URXSFROODERUDWHGZLWKORFDO
organizations to carrying out environmental cleanup activities in and around the Kogane River, which was affected by extremely heavy rains in July 2023.
Going forward, the DIC Group will continue to leverage its indoor mass cultivation technology for Suizenji nori to advance species conservation and at thesame time to provide support for initiatives aimed at preserving this endangered algae’s natural habitat, thereby contributing to biodiversity.

Suizenji nori

Environmental cleanup activities

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Safety in Logistics

Responsible Logistics
Goals and Achievements of Major Initiatives
Objective of initiatives

Reduce CO2 emissions attributable
to logistics.

Scope of target

Japan

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

Goal for fiscal year 2023

Achievements infiscal year 2023

Reduce CO2 emissions attributable
to logistics by 1.23% from fiscal year2022.

• Energy consumption
per unit of production
attributable to logistics
was down 2%.
• CO2 emissions attributable
to logistics declined 8%.

Evaluation★★★

Goal for fiscal year 2024

Reduce CO2 emissions
attributable to logistics by 1.23%
from fiscal year 2023.

★★★

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

logistics activities. To respond better to social imperatives associatedwith the transport of chemicals over the medium to long term, inJanuary 2016 DIC combined the logistics components of its various
departments to create a single Logistics Department with the goal ofstrengthening logistics management functions that had previously been
spread across multiple departments.

■ Policies and Organization
Having positioned the reduction of CO2 emissions attributable to thetransport of its products as a key aspect of its commitment to promoting
Responsible Care, the DIC Group sets annual targets and promotes
UHODWLYHLQLWLDWLYHVRQDQRQJRLQJEDVLV',&¶VORJLVWLFVFRQ¿JXUDWLRQ²
components of which include transport between production facilities,
WKHWUDQVSRUWRISURGXFWVWRFXVWRPHUVDQGLQWHUQDWLRQDOORJLVWLFV²
previously centered on a dedicated subsidiary, established in
1999, which operated under the direct supervision of DIC. In a bid
to rationalize and increase the efficiency of logistics, in 2011 DIC
WUDQVIHUUHGWKLVVXEVLGLDU\WRDORJLVWLFVSDUWQHU²DWKLUGSDUW\ORJLVWLFV(3PL) firms*1²DQGEHJDQWRRXWVRXUFHLWVORJLVWLFV6LQFHWKHQWKH
Group has worked closely with this and other logistics partners to
improve the safety of, and reduce CO2 emissions attributable to, its

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

',&·V/RJLVWLFV&RQÀJXUDWLRQ

Conﬁrmation of
execution

Regular safety
and environment
meetings

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

Overseas
Group companies
Supporteﬀorts

Product divisions

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

DIC Report 2024

76

ESH

promoted a variety of initiatives, including increasing transport using
a combination of truck, rail and ship, making use of larger trucks and
LPSURYLQJORDGLQJHI¿FLHQF\DVDUHVXOWRIZKLFKLWDFKLHYHGGHFOLQHVLQ
both energy consumption and CO2 emissions attributable to logistics. DIC
is also proceeding with the implementation of initiatives in line with logistics
guidelines* established by the Ministry of Economy, Trade and Industry andthe Ministry of Agriculture, Forestry and Fisheries.

■ Reducing Environmental Impact and Addressing

the 2024 Issue
Japan’s logistics industry continues to contend with a shortage of drivers,
owing to the growing popularity of e-commerce and restrictions on drivers’
working hours resulting from a legal amendment dubbed the “2024issue.” In addition, the Japanese government’s target for achieving a 46%
reduction of greenhouse gas emissions by fiscal year 2030, announcedin April 2021, obliged companies to step up efforts to lower the burden of
logistics activities on the environment.

DIC Group companies in other countries and territories also continue toactively advance the use of returnable pallets and other initiatives to lower
the environmental impact of their logistics activities.

Against this backdrop, DIC continues to promote modal shift in the transportof its products in Japan with the aim of curtailing drivers’ working hours
and reducing environmental impact. In fiscal year 2023, the Company* Formulated by the Japanese government and announced in June 2023, these are guidelines
for initiatives by shippers and logistics service providers for optimizing shipping and improving
productivity, thereby shortening waiting and handling times and bolstering the efficiency ofcommercial activity.

CO2 Emissions and Energy Consumption per Unit of Production
Attributable to DIC Group Logistics Activities in Japan
CO2 emissions(Tonnes)(Tonnes)

Energy consumption(GJ/10,000 tonne km)(GJ/10,000 tonne km)(%)

30,00030

25,00025

20,00020

15,00015

10,000

10

5,000

5
0

0
’12

’13

’14

’15

’16

’17

’18

’19

’20

’21

’22

Collaborating with logistics partners to improve loading efficiency’23 (FY)

IDFLOLWLHV,Q¿VFDO\HDULVVXHVZHUHSRLQWHGRXWDWWKUHHRIWKHVHRI¿FHV
after which improvements were confirmed. In addition, to ensure effective
responses to emergencies during transport, DIC requires transport personnel tocarry Yellow Cards,* making it possible to prevent the spread of damage in theevent of an accident.

■ Safety in Logistics○ Safety Management Initiatives

The firms to which the DIC Group outsources logistics use containers thatcomply with the Fire Service Act and other transportation laws, as well aswith related UN standards. The Group supplies information needed to display
labels complying with the Globally Harmonized System of Classification andLabeling of Chemicals (GHS) as well as provides safety data sheets (SDSs)
and other documentation to ensure safe shipping whether in Japan or overseas.
The Group also shares information on the transport of products requiring UN
numbers (i.e., hazardous substances) by sea and air to facilitate the sharing of
information, including alerts.

* Yellow Cards are part of activities recommended by the Japan Chemical Industry Association(JCIA). These cards contain information about the correct actions to take if an accident occurs.
7KH\SURYLGHFRQWDFWGHWDLOVWRHQVXUHSURSHUUHVSRQVHVE\WUDQVSRUWDWLRQFRPSDQLHV¿UH¿JKWHUVDQGSROLFHRI¿FHUVLIDQDFFLGHQWRFFXUVGXULQJWKHWUDQVSRUWRIFKHPLFDOVXEVWDQFHV7UDQVSRUW
personnel must carry these cards at all times.

In Japan, the Logistics Department cooperates with logistics partners, meeting
regularly to discuss measures for improving the safety of both loading andtransport work. In particular, logistics quality issues that inconveniencecustomers such as leaks, undelivered cargo and delivery errors as incidents forpriority attention and decisive steps are taken to improve performance, notably
by confirming targets, incident number, causes and preventative measures
Other ongoing efforts include initiatives aimed at preventing the recurrence of
past accidents and regular logistics safety campaigns. Members of DIC Groupsite health and safety committees also participate in each other’s meetings, aswell as meetings of logistics partners’ site general managers, with the objectiveof ensuring safe site operations. The Logistics Department also inspects theoffices of logistics partners located on-site at its main domestic production

Regular meeting with a logistics partner

Yellow Cards carried by transport personnel

DIC Report 2024

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TOPIC

Hybrid Meeting Format Takes Firm Root',&KDVDGRSWHGDK\EULGIRUPDWIRULWVPHHWLQJVZLWK3/¿UPVWKDWHQDEOHVSDUWLFLSDWLRQHLWKHUUHPRWHO\RULQSHUVRQ7KLVIRUPDWKDVVLQFHWDNHQ¿UPURRW,QVDIHW\WUDLQLQJWKH&RPSDQ\XVHGSKRWRJUDSKVDQGYLGHRVWR
encourage intuitive understanding and allow the horizontal sharing of case studies. These efforts contributed to a
GHFOLQHLQWKHIUHTXHQF\RIDFFLGHQWVLQ¿VFDO\HDU

Online meeting with a 3PL firm

VOICE

We are promoting logistics practices underpinned by an awareness of sustainability and BCPs.

The operating environment for logistics services is constantly in a state of flux. Issues faced in fiscal year 2023 included
geopolitical risks arising from the Red Sea crisis, low water levels in the Panama Canal caused by global warming, and in Japan,
the need to address the 2024 issue and the push to advance the White Logistics movement. In this environment, the Logistics
Department remains keenly aware of the importance of grappling earnestly with such issues and recognizes that promoting
logistics underpinned by an awareness of DIC’s business continuity plans (BCPs) is the only way to ensure the stable transport ofour products. To this end, we will adopt unconventional approaches to overcoming challenges and will continue working, throughour everyday actions, to contribute to the realization of sustainability.

General Manager, Logistics Department, DIC Corporation

DIC Report 2024

78

Kenichi Tsuruta

ESH

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

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

Goals for fiscal year 2023

Achievements in fiscal year 2023
・The new comprehensive global chemical

・ Enhance functionsof comprehensive
chemical substanceinformation
management
systems.

substance information management system
was launched in the PRC and preparations forthe fiscal year 2024 launch in the Asia–Pacificregion were implemented as planned.

・Launch the new comprehensive
・Japan・PRC・Asia–Pacific• Expand deploymentof CIGNAS at DIC
Group companies inother countries andterritories.

regionglobal chemical substance information
management system in the PRC andprepare for fiscal year 2024 launch in
the Asia–Pacific region.

in the PRC and begin deployment in theAsia–Pacific region.

・Review business flow
・Japan・PRC・Asia–Pacificregion• In the PRC, launching of the newcomprehensive global chemical substanceinformation management system wasprioritized, resulting in a delay in deploying
CIGNAS. Preparations for launch in the Asia–
Pacific region proceeded as planned.

• Continue promoting deployment of
CIGNAS at DIC Group companies in
the PRC and the Asia–Pacific region.

・Continue deploying new business flows

to ensure compliancewith laws andregulations aroundthe world.
• Comply with laws
and regulations inother countries andterritories.

Evaluation

・Launch the new comprehensive global★★★

• Continue promoting the re-registration ofsubstances in line with revisions to the
ROK’s K-REACH and take steps to achievecompliance with Taiwan’s TCSCCA.

• The re-registration of existing substances in linewith revisions to K-REACH continued and steps toachieve compliance with TCSCCA proceeded.
• Revisions to labeling and reporting-related laws andregulations in the PRC were addressed and local sites
were notified. Information was gathered and preparations
made for the enforcement of new national laws.

• Address revisions to labeling andreporting-related laws and regulations in
the PRC. Gather information and prepare
for the enforcement of new national laws.

chemical substance information
management system in the Asia–Pacificregion and prepare for its adoption byadditional DIC Group companies.

★

(PRC)
★★

(Asia–Pacificregion)・ Use of new processes and business flows commenced

in the PRC. Preparations for deployment in the Asia–
Pacific region proceeded.

Goals for fiscal year 2024

• Continue promoting deployment of
CIGNAS at DIC Group companies in
the PRC. With preparations in the Asia–
Pacific region complete, commence withprelaunch procedures.

・ Commence use of new business flows in

the Asia–Pacific region.
★★

★★★

★★★

• Continue promoting the re-registration ofsubstances in line with revisions to K-REACH
and take steps to achieve compliance with
Taiwan’s TCSCCA.
• Address revisions to labeling and reporting-related
laws and regulations in the PRC. Gather informationand prepare for enforcement of new national laws
and municipal regulations in Shanghai.

Basic Approach
The DIC Group continues working to assess risks over the entire life cycle of its products and to provide information to stakeholders to ensure products
are handled appropriately.
* 3URGXFWVWHZDUGVKLSLVDSKLORVRSK\WKDWHPSKDVL]HVDVVHVVLQJSURGXFWVSHFL¿FULVNVDQGVKDULQJ
findings and information on appropriate handling with stakeholders with the aim of reducing
the ESH impact of products over their entire life cycle, i.e., from the development of chemical
substances through to procurement, production, transport, sale, use and disposal or recycling.

■ Policies and Organization
In 2002, countries and territories participating in the World Summit
on Sustainable Development (WSSD) in Johannesburg, South
Africa, including the United States, EU member states and Japan,
agreed on a goal for the management of chemical substances tominimize the impact thereof on human health and the environment by
2020. In 2015, the UN General Assembly set the SDGs, a collectionof common goals designed as a blueprint for global society. As acomprehensive chemicals manufacturer with operations around theworld, the DIC Group has created uniform standards for managing
chemical substances that exceed legal and regulatory standards
well before the WSSD. In line with its Environment, Safety and
Health Policy (established in 1992), the Group views productstewardship* as the foundation of Responsible Care and works toprovide stakeholders with information on the appropriate handlingof its products over their entire life cycle. To help realize alternative
offerings that exert less of an impact on the environment, the DIC
Group promotes the management of chemical substance information
as a way to contribute to sustainable product development. To thisend, the Group recently established a base to administer efforts
in the PRC and created a new department in Japan to oversee
communication for the Asia–Pacific region, better positioning it todisseminate information to Group companies around across Asia.

■ Managing Chemical Substances
In 2003, the UN Economic Commission for Europe (UNECE) issued
WKH¿UVWHGLWLRQRIWKH*+6 1 Many countries have since introduced the
GHS, including Japan, which in 2006 compelled use of the system in the
Industrial Safety and Health Act. As part of its effort to ensure effective
product stewardship, the foundation of Responsible Care, DIC was early
to respond to this development, providing customers with crucial hazardrelated information and encouraging them to use such information to
reduce risks.
Concurrent with the enforcement of the Industrial Safety and Health
Act in 2006, DIC began providing GHS-compliant SDSs.*2 In 2009,
the Company developed CIRIUS (Chemical Substance Information
Comprehensive Management System), a proprietary system that
centralizes the management of information on chemical substances in raw
materials and products, as well as automatically checks various laws andregulations—including the Act on the Evaluation of Chemical Substances
and Regulation of Their Manufacture, etc.—to facilitate swift responses
to customers’ requests for information. In 2013, the Company began
using the Wercs, an SDS creation system used globally that facilitates the

DIC Report 2024

79

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translation of data into 46 languages, for products destined for overseas
markets, while in 2015 it also began deploying the Wercs outside Japan.
At present, the system is in use at 23 Group companies in 11 countries
and territories. DIC also continues to advance the creation of a newcomprehensive global chemical substance information management
system dubbed CIGNAS (Chemicals Information Global Network Access
System). In fiscal year 2021, DIC replaced the Wercs and CIRIUS in
Japan with CIGNAS. Use of the new system commenced at GroupFRPSDQLHVLQ*UHDWHU&KLQDLQ¿VFDO\HDUDQGLVH[SHFWHGWREHJLQDW*URXSFRPSDQLHVLQWKH$VLD±3DFL¿FUHJLRQLQ¿VFDO\HDUUHSODFLQJ
the Wercs in both regions. United States-based Sun Chemical, which
oversees Group operations in the Americas and Europe, and its groupcompanies have used Atrion International Inc.’s eponymous chemical
substance information management system since 2006, enabling it toprovide highly accurate information to its customers worldwide.
Recognizing the importance of specialized expertise in the manufacture,import and handling of chemical substances in accordance with applicablelaws and regulations, in 2000 the DIC Group in Japan began providing
related training. Since 2007, the Company has had a proprietary licensing
system designed to maintain and enhance the skills of employees who
have become experts in chemical substance management.
*1 7KH*+6ZDVIRUPDOO\DGRSWHGE\WKH81LQWRIDFLOLWDWHWKHXQLIRUPJOREDOFODVVL¿FDWLRQ
and labeling of hazard information for chemicals.
*2 SDSs contain information on the hazards of chemicals to ensure their safe handling.

The DIC Group’s Global Chemical Substance Information Management Systems

Training

教育

Fostering experts

管理システムManagement system

Introduction of licensing system
Introduction of training framework

Business area

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

CIRIUS
The Wercs

CIGNAS

Atrion
2000

2007

2009

2013

2016

2019

2021

Controller

SystemJapan, PRC

DIC

CIRIUS$VLD±3DFL¿FUHJLRQDICThe Wercs

North America, Central and South America, Sun Chemical
Europe, Africa(United States)
Australia

AtrionDIC

DIC has also established a working group to enhance CIGNAS byaddressing issues that arise as the system is being deployed. ThisZRUNLQJJURXSZLOOFRQWLQXHWRH[SORUHPRGL¿FDWLRQVWRWKHV\VWHP
to improve its performance.

■ Creating and Deploying a New Chemical

Substance Information Management System
DIC’s Global Chemical Substance Information Management Project(GCIP) applied capabilities, experience and expertise accumulated
in the design, development and operation of CIRIUS and the Wercs
to designing and developing the CIGNAS system with the objectiveof streamlining its operations. The Company recognized thus set
about creating a unified global system for managing chemical
substance information, thereby creating a framework for data
integration with its ERP system.

○ A Global Framework

Techniques used to manage chemical substance informationvary greatly depending on country/territory and site, as does thequality of management. Given the expected further tighteningof laws and regulations governing chemical substances and theincreasing number and changing nature of substances used,
implementing an organized global approach is essential. The DIC
Group recognizes that introducing a new system is only part of thesolution, and so it has also commenced efforts to establish a new
information management framework to support administration of
WKHQHZV\VWHPDIWHUGHSOR\PHQW,Q¿VFDO\HDUWKH&KHPLFDO
Substance Information Management Group was established at
DIC’s corporate headquarters in Tokyo to oversee this process. In
April 2020, this group also began promoting initiatives in Greater
China. In January 2023, collaboration was expanded to encompass
the Asia–Pacific region. Through such efforts, the Group willleverage know-how accumulated in Japan to integrate information
management, thereby guaranteeing consistent quality, securing
compliance and strengthening governance.

Individual divisions and departments make use of chemical
substance information in their particular work. Accordingly, thesystem is used not only by experts in the management of chemical
substances but also by diverse other employees across the global
DIC Group. The Company was thus aware of the importance ofdesigning the interface so that even non-experts can use CIGNAS
with ease to obtain the information they need. In addition, thesystem stores confidential information on, among others, thechemical composition of products and raw materials. For thisreason, and because of the wide range of employees acrossAsia using the system, meticulous attention to security was a key
consideration in system design and development.

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obliging GHS compliance. DIC gathers the latest information on chemical
substances in overseas markets through local consultants, as well as throughits global network, which includes Sun Chemical and other DIC Group
companies, ensuring its ability to respond effectively to revisions to laws andregulations and to provide information to Group companies and customers.

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

In Japan, DIC has registered 36 substances to comply with the EU’s
REACH regulations. Individual departments collaborate to implement
measures aimed at preventing shipments that violate the regulations.
The Company is also taking other necessary steps, including updating its
registration dossiers
As a leading member of the JCIA working group charged with collecting
Japanese companies’ opinions and proposals regarding the enactment
and revision of laws and regulations, DIC conducts dialogue withgovernment authorities, playing a leading role in guaranteeing thelegal and regulatory compliance of JCIA members. Thanks to effective
monitoring of regulatory trends and swift responses to revisions topertinent laws, there were no violations of legal violations requiring theregistration or reporting of chemical substances by the DIC Group in
RWKHUFRXQWULHVDQGWHUULWRULHVLQ¿VFDO\HDU

7KH)RRG6DQLWDWLRQ$FWZKLFKZDVDPHQGHGLQ¿VFDO\HDUVWLSXODWHV
the adoption of a Positive List system, which allows only substances that havebeen evaluated for safety to be used in utensils, containers and packaging
for food. DIC manufactures a wide range of polymers, including polystyrene,inks and other raw materials used in food packaging. Accordingly, theCompany is proceeding with efforts to gather information and apply for thelist in cooperation with pertinent industry organizations. There were no legal
violations by the DIC Group in Japan requiring the registration or reporting of
FKHPLFDOVXEVWDQFHVLQ¿VFDO\HDU

Outlook for Principal Initiatives in Fiscal Year 2024
The DIC Group will continue pressing ahead with preparations to reregister chemical substances as required under the ROK’s revised
K-REACH legislation, prioritizing substances that are close to the reregistration deadline. The Group will also prepare to meet the standard
registration deadline for Taiwan’s Toxic and Chemical Substances ofConcern Control Act (TCSCCA). Additionally, the Group will continue
to gather information and take steps to register chemical substances
to ensure compliance with newly introduced registration systems inother countries and territories. In India, the Group will keep abreast ofdevelopments surrounding India’s move to mandate GHS complianceand will submit opinions and proposals through the JCIA.

Outlook for Principal Initiatives in Fiscal Year 2024
Japan’s revised Industrial Safety and Health Act will be fully enforced
effective from fiscal year 2024. The revised Act emphasizes the transition
to a regulatory system for chemical substances based on autonomous
management, notably on establishing a system for implementing autonomous
management and strengthening the communication of information on
hazards and toxicity. Moreover, in April 2024 additions to the list of chemical
substances that must be labeled and to items that must be noted on SDSs
will also be enforced, alongside rules regarding the optimization of content
denotation. The DIC Group in Japan will continue working to ensure it
manages chemical substances, as well as prepares and distributes SDSs
and labels, in compliance with the revised Industrial Safety and Health Act.
DIC will also take decisive steps to comply with the Global Frameworkon Chemicals, which was discussed at the International Conference on
Chemicals Management (ICCM), which was held in September 2023 after
a delay due to COVID-19 , paying close attention to how the new goal isUHÀHFWHGLQSROLFLHVODZVDQGUHJXODWLRQV

■ Training and Systems❶ Fostering Experts
As a comprehensive global chemicals manufacturer, the DIC
Group recognizes legal and regulatory compliance as central to risk
management and promotes training designed to foster experts in thisarea. DIC began offering an entry-level course on laws and regulations
governing chemical substances in fiscal year 2014. An online format
ZDVDGRSWHGLQ¿VFDO\HDUWRPDNHLWHDVLHUIRUWDUJHWHPSOR\HHV²
mainly employees at sites with technical departments—to participate in
WUDLQLQJ,Q¿VFDO\HDUWKH&RPSDQ\FRQWLQXHGWRSURYLGHWUDLQLQJ
on the legal handling of chemical substances, expanding participationin this training to include employees of DIC Group companies in Japan.
Beginning in fiscal year 2023, efforts focus on enhancing programcontent by designing pragmatic new courses that address the practicalrequirements of various chemicals-related laws and regulations.

❷ Complying with Laws and Regulations in OtherCountries and Territories
Recent years have brought the establishment and amendment of major
laws and regulations governing chemical substances across East Asia. Key
examples include revisions to the Republic of Korea (ROK)’s Act on theRegistration and Evaluation of Chemicals (K-REACH) in fiscal year 2019
DQGWKH35&¶V&KLQD5($&+OHJLVODWLRQLQ¿VFDO\HDU2WKHUFRXQWULHV
that currently do not have chemical substance registration systems, including
Thailand, Vietnam, Turkey, and Central and South American countries, arealso moving in this direction, but in many cases progress is behind schedule.

❷ Licensing Systems in Japan
Under a proprietary licensing system, DIC provides mandatory specialized
training for individuals in Japan engaged in the export and import of chemical
substances and issues licenses to employees who have completed training
and passed in-house examinations. The period of validity for export licenses is

Deployment of the GHS has been adopted and made mandatory in mostcountries, with latecomer India now taking steps toward enacting a law

DIC Report 2024

81

ESH

two years, while that for import licenses is three years. Training for individuals
involved in exporting and importing chemical substances focuses on theForeign Exchange and Foreign Trade Act, while that for individuals involve
exclusively in importing centers on the Act on the Evaluation of Chemical
Substances and Regulation of Their Manufacture, etc., the Industrial Safety
and Health Act and the Poisonous and Deleterious Substances Control Act.
To renew a license, an employee must once again go through training and
SDVVWKHLQKRXVHH[DPLQDWLRQ,Q¿VFDO\HDUWUDLQLQJDQGH[DPLQDWLRQV
were conducted online. As of the fiscal year-end, 334 employees held
an import license; 216 held a Class B export license, requiring generalknowledge; and 1,553 held a Class A export license, which requires highlevel specialized expertise, while a further 103 had completed an advanced
export license course, an achievement requiring superior capabilities.

Economic Partnership (RCEP), since fiscal year 2022 DIC has had a
OLFHQVLQJV\VWHPIRUHPSOR\HHVZKRSUHSDUHFHUWL¿FDWHVRIRULJLQEDVHGRQ
such agreements. At present, this license is held by 164 employees. In¿VFDO\HDUWKH&RPSDQ\ZLOOFRQWLQXHWRH[SDQGUHODWHGWUDLQLQJ
❸ Training at DIC Group Companies in Other Countries andTerritories
DIC (China)’s Corporate ESH Department works to facilitate the smoothpromotion of Responsible Care at DIC Group companies in Greater
China through the continuous improvement of health, safety and
HQYLURQPHQWUHODWHGLQLWLDWLYHV+LJKOLJKWVLQ¿VFDO\HDULQFOXGHGWKH
launch of CIGNAS at local Group companies. The GCIP Group in DIC(China)’s Corporate ESH Department held online presentations on theuse of CIGNAS for employees of the 12 companies deploying the system
11 times, providing detailed explanations of system functions, notably
SDS creation, chemical substance information confirmation, workflow
system operation and label printing system operation. Additionally, during
the prelaunch period, employees were encouraged to study on their own
and visits were paid to pertinent Group company sites as necessary to
conduct demonstrations and provide practical training to ensure problemfree operation.

Given the increasingly challenging security export control environment,
in fiscal year 2023 DIC significantly reinforced its training regarding
export sanctions that have been imposed on the Russian Federation (ClassA export license training) and U.S. legal issues (advance export license
WUDLQLQJ ',&ZLOOFRQWLQXHWRHQKDQFHWKLVWUDLQLQJLQ¿VFDO\HDU,QOLJKW
of the increasing importance of economic partnership agreements (EPAs),
owing to, among others, the entry into force of the Regional Comprehensive

Export Licenses
Class A licenses

1,553

Advancedlicenses

FTA-related licenses
Import Licenses

103 334Class B licenses

216

Explanation of CIGNAS given by Jiaojie Jiang of the GCIP Group of DIC(China)’s Corporate ESH Department

VOICE

We are part of the GCIP team.

My name is Jiaojie Jiang, and I am a member of the GCIP Group that was established in DIC (China)’s Corporate ESH Department. The DIC Groupis advancing the deployment of CIGNAS across Asia. In February 2023, the system was launched in the PRC. My job involves supporting the
FRPSDQLHVKHUHWKDWKDYHLQWURGXFHGWKHV\VWHP,Q¿VFDO\HDUWKH*&,3*URXSSURYLGHGLQVWUXFWLRQRQWKHV\VWHP¶VRSHUDWLRQDQGDOJRULWKP
sought to enhance understanding of pertinent laws and regulations, offered guidance on system use and responded to queries from individualcompanies. Responding to the needs of individual companies also contributed to my own personal and professional growth. We will continue working
with these companies to strengthen legal and regulatory knowledge, as well as to extend support and follow up with companies, to ensure thesmooth operation of CIGNAS and related systems and help improve the DIC Group’s chemical substance information management capabilities.
GCIP Group, Corporate ESH Department, DIC (China) Co., Ltd.

Jiaojie Jiang■ Position on the Use of Animals in Testing■ Safe Product Transport

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

7KH',&*URXSKDVFUHDWHG<HOORZ&DUGVFRQWDLQLQJVLPSOL¿HG6'6V
This provides critical information to transport personnel, facilitating theappropriate responses in the unlikely event of an accident to protect
the environment and ensure safety. (For more information, please see
page XX.)DIC Report 2024

82

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Engaging with Society
Basic Approach
DIC actively discloses information on its Responsible Care initiatives to stakeholders and promotes a variety of initiatives with the aim of
deepening mutual understanding as well as endeavors to respond appropriately to public concerns, and responding to issues of concern.
year 2023, such a presentation was held at the Saitama Plant.

❶ Information Disclosure

The DIC Group strives to increase the transparency of its
activities through the active disclosure of information and at thesame time promotes dialogue with stakeholders. DIC discloses
information on the global Group’s safety and environmental
activities in its DIC Report integrated report. The Englishlanguage version of the report is published exclusively as a
PDF that can be downloaded from the DIC global website.
❷ Dialogue with Local Communities
In Japan, the DIC Group holds regular presentations on safety
and environmental initiatives for the communities around its
production facilities. In addition, biennial Responsible Care
community meetings are held at plants located in industrial
complexes, while annual environmental presentations are held
DWSURGXFWLRQIDFLOLWLHVORFDWHGQHDUUHVLGHQWLDODUHDV,Q¿VFDOThe DIC Group also seeks to deepen communication, including
inviting junior and senior high school students for hands-on lab
lessons, participating in community disaster drills, providing
assistance for local festivals and other events and otherinitiatives tailored to local communities. Facilities in Japan also
share information with local residents by preparing site reportsthat detail their safety- and environment-related efforts.
At sites in other countries and territories, the DIC Groupalso seeks to advance dialogue and interaction with local
communities by participating in tree plantings and otheractivities aimed at preventing global warming and preserving
biodiversity.

Joint Kinki Regional Development Bureau–Sakai CityFRPSUHKHQVLYHGLVDVWHUGULOOKHOGDWWKH6DNDL3ODQWLQ¿VFDO
year 2023

Site report

TOPIC

Tokyo Plant Holds “Children’s Festival: Learning through Play” for the First Time in Four Years,Q¿VFDO\HDU',&¶V7RN\R3ODQWKHOGDFRPPXQLW\HYHQW³&KLOGUHQ¶V)HVWLYDO/HDUQLQJWKURXJK3OD\´IRUWKH¿UVWWLPHLQIRXU\HDUVGiven the long pause, secretariat members began preparing for the festival a full year in advance, organizing 10 activities for children
who had been unable to play outside for so long because of the pandemic. Unfortunately, it rained on the day of the festival, forcing the
FDQFHOODWLRQRIDQRXWGRRUHYHQWSODQQHGLQFRRSHUDWLRQZLWKWKHSROLFHDQG¿UHGHSDUWPHQWV2WKHUDFWLYLWLHVZHUHPRYHGLQGRRUVDQGZHQW
ahead, including a science lab, postcard-making lesson, capsule toy vending machine corner and ring toss, as well as an introduction to
DIC products (Spirulina and helmets). Visitors could also purchase sweets and drinks.
/RFDOFKLOGUHQPHPEHUVRIWKHQHLJKERUKRRGDVVRFLDWLRQDQGIDPLOLHVRI',&HPSOR\HHVZHUHDEOHWRPLQJOHIUHHO\DQGHQMR\ERRWKV
that attracted their interest. In the science lab, students from a nearby junior high school’s nature club used an emulsion made with DIC’s
HYDRECT WRFUHDWHFRDWHGNUDIWSDSHUDIWHUZKLFKWKH\GLVVROYHGWKH¿OPXVLQJDQDTXHRXVDONDOLQHVROXWLRQWRUHWXUQWKHSDSHUWR
a recyclable state. The lab was well received, with participants saying it had increased their interest in the recycling of everyday foodpackaging and that they looked forward to taking part again next year. Instructors also expressed satisfaction with the sophisticated level ofthe science lab and focus on experiments with real implications for the resolution of social imperatives.
Festival poster

The festival is a valuable opportunity for people living in the vicinity of the Tokyo Plant to learn about the DIC Group’s operations and for
SODQWHPSOR\HHVWRLQWHUDFWZLWKWKHORFDOFRPPXQLW\',&SODQVWRKROGWKLVHYHQWDJDLQLQ¿VFDO\HDUDQGLQVXEVHTXHQW\HDUVDQG
hopes it becomes a highly anticipated local event.
*HYDRECT is a highly recyclable coating varnish that boasts excellent resistance to water.

DIC Report 2024

83

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DIC

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Other domestic DIC
Group companies

9 sites

2 sites

9 sitesTotal

20 sites

Greater China

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12 sites

9 sites

Total

21sites

Sun Chemical GroupSEIKO PMC Group

13 sites

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DIC Report 2024

85

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DIC Report 2024

86

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DIC Report 2024

87

7KLUGSDUW\YHULÀFDWLRQClimate Change

Preventing Global Warming

SDGs Goals 7 and 13

Basic Approach
The DIC Group works to reduce CO2 emissions over the entire life cycle of its products and, through its business activities,
to lower risks associated with climate change.
purpose of driving CO2 emissions reduction in the private sector.
(Information regarding the impact of the acquisition of the Colors &Effects pigments business will be communicated to the SBTi going
forward.) The DIC Group comprises 185 companies in 62 countries
and territories. The Group is committed to working as one to cut
emissions to ensure achievement of this target.

■ Initiatives Aimed at Preventing Global Warming
In line with its goal of contributing to the realization of sustainability
for the global environment and for society, in June 2021 the DIC
Group announced DIC NET ZERO 2050, which sets a targetof achieving carbon neutrality—net zero CO2 emissions (Scope
1 and 2)—by fiscal year 2050. In January 2023, the Group’s
CO2HPLVVLRQVWDUJHWUHFHLYHGRI¿FLDOHQGRUVHPHQWIURPWKH6FLHQFH
Based Targets initiative (SBTi),* which was established with theGoals and Achievements of Major Initiatives
Objective of initiatives

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

* The SBTi is a global entity that encourages companies to set science-based greenhouse gas
emissions reduction targets that are in line with the goal of the Paris Agreement. The SBTi is apartnership of the CDP, the United Nations Global Compact, the World Resources Institute (WRI)
and the World Wide Fund for Nature (WWF).

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

Goals for fiscal year 2023

Achievements in fiscal year 2023

DIC Group (global):
Reduce CO 2 emissions at DIC
Group sites (Scope 1 and 2) by
50% from the fiscal year 2013
level by fiscal year 2030 (averageannual decrease of 2.9%).

DIC Group (global):
CO2 emissions: 534,889 tonnes• Down 41.9% from fiscal year 2013 (921,386 tonnes)** Fiscal year 2013 emissions were calculated
including an estimate for the Colors & Effects
pigments business for that year.)

DIC Group (Japan):
Reduce energy consumption
per unit of production by 17.0%
from the fiscal year 2013 level by
fiscal year 2030 (average annual
decrease of 1.0%).

DIC Group (Japan):
Energy consumption per unit of production: 3.811 GJ/
tonne• Down 8.6% from fiscal year 2013 (4.170 GJ/tonne)* To facilitate comparison, energy consumption was
calculated using the same method as in fiscal year 2013.

Evaluation

Goals for fiscal year 2024★★

DIC Group (global):
Reduce CO 2 emissions at DIC
Group sites (Scope 1 and 2)
by 50% from the fiscal year
2013 level by fiscal year 2030
(average annual decrease of
2.9%).

★

DIC Group (Japan):
Reduce energy consumption
per unit of production by 17.0%
from the fiscal year 2013 levelby fiscal year 2030 (averageannual decrease of 1.0%).

Reference:
CO2HPLVVLRQVSHUXQLWRISURGXFWLRQLQ¿VFDO\HDU',&*URXSLQ-DSDQNJWRQQH
'RZQIURP¿VFDO\HDU NJWRQQH
'RZQIURP¿VFDO\HDU NJWRQQH
engaging in discussions and conducting patrols. An Energy-Saving
and Decarbonization Working Group has also been set up at eachsite comprising members selected by the site itself to foster theexchange of information and research pertaining to new energysaving measures, as well as to advance the horizontal deploymentof effective measures across domestic Group sites. This
combination of site- and Group-level initiatives forms the framework
under which the DIC Group endeavors to reduce its CO2 emissions.

■ Framework for Promotion
The DIC Group works to reduce CO 2 emissions through its
business activities in four regions: Japan, the Americas and Europe
RYHUVHHQE\6XQ&KHPLFDO WKH$VLD±3DFL¿FUHJLRQDQG*UHDWHU
China. Despite differences in energy requirements and access torenewable energy depending on region and site location, the Groupis committed to working as one to ensure it achieves its target of
reducing its Scope 1 and 2 CO2HPLVVLRQVE\IURPWKH¿VFDO\HDUOHYHOE\¿VFDO\HDU

In the Americas and Europe, Sun Chemical is promoting efforts to
reduce its CO2 emissions in North, South and Central America, as
well as in Europe. In the Asia–Pacific region and Greater China,
Group companies are encouraging a variety of independent
energy-saving initiatives that align with related Group policies.
DIC’s Production Management Unit provides support on multiple
fronts, including managing overall progress.

Recognizing climate change as a key social imperative, the DIC
Group is working to reduce CO2 emissions from its sites. Importantmeasures are proposed to the Sustainability Committee to bedeliberated and determined. In Japan, an Energy-Saving Promotion
Committee has been established at each Group company site.
&RPPLWWHHDFWLYLWLHVLQFOXGHFRQ¿UPLQJWKHSURJUHVVRILQLWLDWLYHVDIC Report 2024

88

Climate Change

Principal Efforts❶ Undertake energy-saving initiatives Groupwide.
❷ Promote DX to optimize energy management for production and utility equipment.
❸ $FWLYHO\HVWDEOLVKHQHUJ\VDYLQJIDFLOLWLHVLQFOXGLQJHI¿FLHQWFRJHQHUDWLRQV\VWHPVDQGQHW]HURHQHUJ\EXLOGLQJV =(%V ❹ Employ energy from renewable sources—e.g., biomass boilers and net solar power—at suitable sites.
❺ Conduct energy-saving analyses and support the deployment of energy-saving initiatives at all DIC Group companies.
❻ :KHQLQVWDOOLQJRUH[SDQGLQJIDFLOLWLHVSXUSRVHIXOO\VHOHFWHQHUJ\HI¿FLHQWRSWLRQVDQGIRUPXODWHUHODWHGUXOHVLQFOXGLQJIRUHQYLURQPHQWDO
investments and the introduction of internal carbon pricing.

issue of particular concern to the DIC Group structures its disclosureusing a framework comprising four thematic areas: Governance,
strategy, risk management, and metrics and targets. The Group is
striving to improve its sustainability-related disclosure in the countries
and territories in which it operates, reviewing its approach as required
WRUHÀHFWFKDQJHVLQLWVRSHUDWLQJHQYLURQPHQW

■ Sustainability-Related Disclosure
Owing to amendments to Japan’s Cabinet Office Ordinance on
Disclosure of Corporate Affairs, a section was created in the annual
securities report that Japanese companies are required to file titled“Approach to Sustainability and Our Initiatives” and compelled thedisclosure of sustainability-related information. Climate change is an

Framework for Sustainability-Related Disclosure
Governance

Strategy

Risk management

Metrics and targets

Governance system for addressing
sustainability-related risks andopportunities

Sustainability-related risks andopportunities and related measures

Processes for identifying ,assessing
and managing sustainability-relatedrisks and opportunities

Metrics and targets used to assess
and manage sustainability-relatedrisks and opportunities%DVHGRQUHTXLUHGGLVFORVXUHLWHPVLQWKH$PHQGPHQWWRWKH&DELQHW2I¿FH2UGHURQ'LVFORVXUHRI&RUSRUDWH$IIDLUVSURPXOJDWHGLQUHVSRQVHWRWKH-XQHUHSRUWRIWKH:RUNLQJ*URXSRQ&RUSRUDWH
Disclosure of the Financial System Council.

❶ Governanceare expected to transform the socioeconomic system going forward.
The DIC Group is promoting sustainable business strategies,
recognizing the importance of risks and opportunities associatedwith climate change. Because the impacts of climate change arelikely to surface over the medium to long term, the Group is working
to enhance its awareness of the principal climate-related risks andopportunities (transition as well as physical) that are likely to have a¿QDQFLDOLPSDFWRYHUWKHPHGLXPWRORQJWHUPEDVHGRQDVFHQDULRDQDO\VLVLWFRQGXFWHGLQ¿VFDO\HDU,QDGGLWLRQWRLPSURYLQJWKH
Group’s understanding of foreseeable risks and opportunities from a
medium- to long-term perspective, this will also enable it to formulate
and execute effective strategies on an appropriate time line.

The DIC Group has established the Sustainability Committee, whichanswers directly to the president and CEO and is responsible forformulating responses to key social imperatives. The committee isalso tasked with reinforcing sustainability initiatives and deliberatingon critical related matters. Recognizing climate change as a key
management challenge, the committee deliberates on importantmatters, including the setting of medium- and long-term targets forthe reduction of CO2 emissions. Chaired by the president and CEO,the committee includes the executive vice president, the generalmanagers/heads of the Production Management Unit, TechnicalManagement Unit, Corporate Strategy Unit, General Affairs and Legal
Unit, Finance and Accounting Unit and ESG Unit, as well as theCEOs of overseas regional headquarters, presidents of the businessgroups and general managers of the product divisions. As part of
the auditing process, one Audit & Supervisory Board member also
participates. The committee meets four times annually and reportson the results of its deliberations on all agenda items to the Board of
Directors, ensuring appropriate supervision.

The DIC Group recognizes achieving net zero CO 2 emissions byfiscal year 2050 as a material issue. The Group will continue topromote decarbonization not only by reducing its own energy use but
also by providing information on the carbon footprint of its products.
Key Risk Management Perspectives

Principal Climate Change–Related Issues Deliberated by the
Sustainability Committee in Fiscal Year 2023
Fiscal year

① Should carbon pricing or carbon border taxes be introduced in the future,
there is a risk that raw materials, fuel and electric power prices will rise and/or that taxes will be imposed on exported products, making CO2 emissionsa factor that directly affects costs.

Principal issues② Should the Group be unable to respond to any sudden changes in demand
resulting from the shift to a circular economy to advance decarbonization,
there is a risk of a significant decline in profits generated by its businesses(climate change–related transition risk).

Report on calculation of product carbon footprint
Report on endorsement of CO2 emissions target by the SBTi
2023

Progress report on CO2 emissions plan for ﬁscal year 2022

③ Should climate-related disasters arising from the increasing seriousness or
frequency of extreme weather events occur, resulting in product supplies
becoming impossible or being delayed due to the suspension of operationsat production facilities and the instability of raw materials supplies, there isa risk that it will cause a significant decline in profits generated by Groupbusinesses or threaten business continuity (extreme physical risk).

202Report on registration of data for the GX-ETS (domestic
emissions trading scheme)❷ Strategy

With pressure on the global community to achieve carbon neutrality by
2050 intensifying rapidly, changes to rules governing competitiveness

DIC Report 2024

89

Climate Change

Strategies for Reducing CO2 Emissions

CO2 Emissions by the Global DIC Group (Scope 1 and 2)

As an organization with a CO 2 emissions reduction
target, the DIC Group will promote a variety of related
initiatives as outlined below. The Group currently plans tomake environmental investments of approximately ¥13
ELOOLRQLQ-DSDQEHWZHHQ¿VFDO\HDUVDQG

1,200

1,000

CO 2 emissions [kt-CO 2 ]Notes:
1. In Japan, Scope 1 CO2 emissions are calculated using emissions factors
set by the country’s Ministry of the Environment. In other regions, Scope 1
emissions are calculated using emissions factors set by the United States
Environmental Protection Agency (EPA).
2. In Japan, Scope 2 emissions—attributable to the consumption of purchased
electric power—are calculated using emissions factors set by the Ministry of
the Environment. Scope 2 emissions in North America are calculated using
the EPA’s Emissions & Generation Resource Integrated Database (eGRID),
while those in other regions are calculated using emissions factors in theInternational Energy Agency (IEA)’s Emissions Factors 2023 database.

Three initiatives toreduce CO2 emissions
Environmental
investments
Deployment of energysaving initiatives

800

Use of energy fromrenewable sources

Benefits of three initiatives to reduce
CO2 emissions in fiscal year 2023*1

600

400

CO2 emissions in fiscal year
2030 (kt-CO2)*2(-50% from fiscal year 2013)

42% from fiscal year 2013

200

0
2013

2022

2023

2030

*1 The benefits of three initiatives implemented to reduce CO2 emissions are calculated by estimating fiscal year 2023 emissions based on production volume andCO2 emissions in fiscal year 2022 and production volume in fiscal year 2023.
*2 CO2 emissions in fiscal year 2030 is an estimate for CO2 emissions in fiscal year 2022 if no initiatives had been implemented and business had expanded.

TCFD Scenario Analysis

Adaptation: Global warming continues through the mid 2040s, with therise in global temperature to above preindustrial levels exceeding 1.5°C
but remaining below 2.0°C. Adapting to rising global temperatures
requires strategies and actions to strengthen resilience. Insulation andheat shielding are effective approaches. The frequency of extreme
climate events may go from once in a century to once in a decade oreven once a year.

In fiscal year 2024, DIC revised the results of its previous scenario
analysis, conducted in fiscal year 2020, taking into account sharedsocioeconomic pathway (SSP) scenarios SSP1-1.9, SSP5-4.5 and
SSP5-8.5 in the Sixth Assessment Report (AR6), published by theUnited Nations Intergovernmental Panel on Climate Change (IPCC) in
March 2023, and the environmental scenarios explored in World Energy
Outlook (WEO) 2023, released by the IEA in October 2023. While
the time frame of the previous analysis concluded in 2030, this was
extended to 2050. Based on the outlook for the situation surrounding
climate change and energy, DIC established three scenario groups,
which it calls “transition,” “adaptation” and “limits to adaptation,”*1 andhas analyzed risks and opportunities, as well as formulated measuresfor each. For more information, please see pages 92–93.

Limits to adaptation: Global warming persists and the rise in global
temperature to above preindustrial levels exceeds 2.0°C in 2050
and approaches 5.0°C in 2100. Unpredictable weather and climate
extremes increase, leading to food insecurity and supply instability,and forcing people to migrate from the places people have lived for
centuries. Changes are complex and cascading, and have negative
impacts on quality of life across borders. Pandemics, conflicts andRWKHUQRQFOLPDWHULVNVPD\EHDPSOL¿HGE\WKHVHLPSDFWV•Three Scenario Groups
Transition: Countries immediately and decisively implement measures toreduce CO2 emissions with the goal of limiting the rise in global temperature
WR&DERYHSUHLQGXVWULDOOHYHOV7KHHI¿FLHQWXVHRIHQHUJ\LVUHTXLUHG
including through energy conservation and the joint transport of goods.
The use of carbon pricing*2 will begin and expand in many countries andterritories and the prices used will continue to increase.

*1 Relationship between adaptation and limits to adaptation: As temperatures rise, limits tothe capacity to adapt—key vulnerabilities—emerge. It is assumed that this will trigger anunremitting shift from the adaptation scenario to the limits to adaptation scenario.
*2 International carbon price forecast (per tonne of CO 2 emitted): $135 in 2030, $200 in 2050

Relationship Between SSP Scenarios and the DIC Group’s Newly Established
Scenario Groups
6

6
Limits to adaptation (Above 2.0℃)

5Adaptation (1.5℃‒2.0℃)
Transition (Below 1.5℃)

SSP5-8.5

4

4

3

SSP2-4.5

2

2
SSP1-1.9

1

0
2000

0
2010

2020

2030

2040

2050

2060

2070

2080

DIC Report 2024

90

Climate Change

Results of Scenario Analysis for the Three Scenario Groups
Transition

R = Response to risks, O = Response to opportunities

Risks

Opportunities

Countermeasures

7KHSURPRWLRQRIHQHUJ\HI¿FLHQF\and a shift to green electric power,both purchased and generated
on-site, helps reduce fossil fuelconsumption.

R: Apply reasonable carbon pricing
in appropriate regions to hasten
the reduction of CO2 emissions.
5$YRLGWKH¿QDQFLDOLPSDFWRI
CO2 emissions by promotingHOHFWUL¿FDWLRQDQGWKHXVHRI
renewable energy to reduce
Scope 1 and 2 emissions.
O: Promote enhanced functionality
and contribution to decarbonization
to deliver products that minimize
the impact of carbon pricing.

Policies and laws

Implementation of carbon pricing
around the world

・The implementation of policies
such as emissions trading, carbon
taxes and carbon border adjustment
mechanisms increases costs.
・The DIC Group’s Scope 1 and 2
emissions in 2030 are expected
to be 1,221 kt-CO2 ¿QDQFLDO
impact: $149 million) if nocountermeasures are taken or 461
kt-CO2 ¿QDQFLDOLPSDFW
million) if countermeasures are taken.

Demand for disclosure of
QRQ¿QDQFLDOLQIRUPDWLRQLQFUHDVHV
globally

Building and operating a system for
responding to disclosure requests
around the world incurs costs.

R: Act on a request to respond to
the EU’s Corporate Sustainability
Reporting Directive (CSRD) byproceeding with plans to release areport in 2026.

Technological innovations

Changes in demand occur andthe idea of a circular economy
dominates

・Demand for single-use plastics
decreases due to the introductionof global regulations on the use ofplastics.
・Demand for materials that areGLI¿FXOWWRUHF\FOHGHFOLQHVDevelopment focuses on productsthat are low-carbon or carbon
neutral・Demand for recyclable andcompostable plastics rises.
・The introduction of legally binding
regulations, taxes and levies
encourages the use of bioderived
and recycled materials.

O: Step up consideration ofchemical and material recycling
in collaboration with customers
and consumers.
O: Focus on using bioderived
materials and developing
sustainable materials that makeproducts easy to recycle.

Demand for products that are
low-carbon or carbon neutral—
thereby helping to reduce
emissions attributable to customers’
processes—increases.

O: Promote products that contributeto decarbonization (e.g., have
low emissions of VOCs, lowenergy consumption, etc.).

Behavioral changes

Necessity of responding to
demands to reduce CO2 emissions
attributable directly to production
and across the supply chain

Efforts to reduce CO2 emissions withthe aim of achieving the target rise intemperature of 1.5°C begin and thetrend toward demanding such efforts
spreads across supply chains.

R: Implement measures to reduce
Scope 1 and 2 emissions by
50% and Category 2, 3, 4, 5 and
12 Scope 3 emissions by 13.5%,
and achieve a supplierengagement rate of 80% in
Category 1 of Scope 3.
R: Give consideration to shifting toan SBT that corresponds to the
1.5°C target.
R: Continue to make investments inenergy-saving and renewableenergy facilities.

Necessity of addressing biodiversity
needs directly in production andacross supply chains

Products that do not take biodiversity
into account are removed from themarket.

R: Take biodiversity into
consideration in the purchasingof raw materials and at production
sites.

DIC Report 2024

91

Climate Change

Adaptation

Risks

Opportunities

Countermeasures

Acute

Increase in frequency of extreme
climate events from the current
once in a century to once in a
decade or even once a year

・Production at suppliers’ facilities issuspended due to frequent climaterelated disasters.
・Production at DIC Group facilities issuspended due to frequent climaterelated disasters and resulting concerns
about the safety of operation.
・Premiums for non-life insurance rise.

R: For key raw materials, promote two-company
shared procurement in multiple regions andstrengthen BCP responses.
R: For key products, ensure ample inventories ofraw material sand products.
R: Locate printing inks and other production facilities aroundthe world to ensure complementary capabilities.
R: Cooperate with other companies to minimize
impact in the event port facilities are damaged
GXHWRVWRUPVXUJHVRUÀRRGLQJ
R: Strengthen measures for sites located in coastal areas.

Countermeasures are needed in areas
where there are concerns regarding
increased water-related risks.

R: Implement measures to address water-relatedrisks and reinforce the effectiveness of BCPs by
providing related training

Chronic
Depletion of groundwater
resources

Changes in lifestyles andconsumption patterns as a result ofclimate change

Demand for existing products may
decrease as new lifestyles suited to hightemperatures become necessary.

Frequent poor harvests due to aloss of biodiversity

Supply of plant-derived raw materials will cometo a halt as a consequence of poor harvests.

New lifestyles suited tohigh temperatures bring
opportunities in such areas
as coatings, packaging
materials and healthcare.

O: Develop products that respond to increased
demand for insulated and heat-shielding offerings
as temperatures rise.
O: Leverage changes in dietary habits to develop/
expand long-life packaging for beverages andfrozen food products.
O: Expand operations in the areas of healthcare andlife science and promote health.
R: Strengthen resilience.

Limits to adaptation

Risks

Opportunities

Countermeasures

Acute
Sudden changes in weather patterns andextreme climate change that result in problems
in terms of public health and the environment

・Factory operations are disrupted as heatstroke
leads to a shortage of human resources.
・E x t r e m e t e m p e r a t u r e s l e a d t o p l a n t
PDOIXQFWLRQVFDXVHGE\¿UHDQGRYHUKHDWLQJ

R: Reinforce the effectiveness of BCPs
by providing related training.

The use of raw materials derived fromedible plants becomes difficult.

R: Switch from edible to nonedible biomass raw materials.

・Normal operations are disrupted by new
pandemics emerging as temperatures rise.
・Normal operations cease as the instability of
IRRGVXSSOLHVDQGKRXVLQJSURPSWVFRQÀLFWVand riots.

R: Reinforce the effectiveness of BCPs by
providing related training.
R: Formulate an emergency plan that
includes the strategic downsizing ofoperations; protection of core assets,
data and hazardous chemicals;
evacuation procedures; and support for
employees’ families.
R: Prepare emergency plans that are
better than those of competitors.

Chronic'LI¿FXOWLHVXVLQJHGLEOHSODQWVDVFKHPLFDO
raw materials or fuel from a food security
perspective$PSOL¿FDWLRQRIQRQFOLPDWHULVNVDVD
consequence of instability caused by climatechangePost-Scenario Analysis Initiatives (Fiscal Years 2020–2023)● Introduced internal carbon pricing.
Resolved to introduce internal carbon pricing to quantify CO2 emissions and climate change risks, as well as to provide economic incentives for reducing CO 2 emissions.
Beginning in fiscal year 2021, introduced internal carbon pricing for projects in Japan, the Asia–Pacific region and Greater China entailing capital investments of ¥50 million or
more. Built a system that factors reductions in costs related to CO2 emissions into the impact of capital investments,● Promoted full-scale collaboration with FP Corporation (FPCO) in the practical implementation of a closed-loop recycling system for polystyrene, used in plastic containers forfood products, among others.
● Raised funds through sustainable finance.
● Began introducing green power at 34 sites in Japan and promoting use of low-carbon energy by, among others, reducing CO2 emissions attributable to boiler operation at the
Karawang Plant by switching from a coal-fired to a low-carbon liquefied natural gas (LNG)-fired unit.
● Began providing information on the carbon footprint of products and expanding the scope of provision.
● Resolved to introduce a new biomass boiler at the Sakai Plant as part of a program of investment in energy-saving and renewable energy equipment.

DIC Report 2024

92

Climate Change

2023 amounted to 12,799,823 GJ, while CO2 emissions totaled
534,889 tonnes. CO2 emissions per unit of production were233.0 kg/tonne. The Group achieved its target for reducing its
consumption and CO2 emissions were down from fiscal year
2022, owing to the expanded use of green power in Japan anda switch from a coal-fired to a low-carbon LNG-fired boiler at
WKH.DUDZDQJ3ODQWLQ,QGRQHVLD7KHVHUHVXOWVDOVRUHÀHFWWKH
promotion of more ambitious energy-saving and decarbonization
initiatives, including the adoption of internal carbon pricing.

❸ Risk Management
Processes Used to Identify and Assess Climate Change–
Related Risks
DIC recognizes risks related to its response to climate change—a key component of its framework of sustainability themes, thefoundation of its sustainability activities—and works to evaluate,
address and manage them effectively.
The Sustainability Working Group, a subordinate entity of
the Sustainability Committee, is charged with identifying anddebating priority risks. Risks designated as priorities are
submitted for consideration to the Sustainability Committee.

The DIC Group continues to implement a variety of energyVDYLQJPHDVXUHVLQFOXGLQJLQWURGXFLQJKLJKO\HI¿FLHQWIDFLOLWLHV
promoting process improvements and boosting capacity
utilization rates, while at the same time further advancing its
use of renewable energy by shifting to biomass and otherclean fuels and installing solar power facilities. Some of these
initiatives are outlined below.

❹ Metrics and Targets
The DIC Group uses Scope 1 and 2 emissions as KPIs toevaluate transition risks. In light of accelerated global efforts
to decarbonize, the Group pledges to work actively to help
decarbonize society. DIC has set a long-term target for
reducing CO 2 emissions (Scope 1 and 2) by 50% from thefiscal year 2013 level by fiscal year 2030 and has pledged tostep up related efforts. The Group also aims to achieve carbon
neutrality—net zero CO2HPLVVLRQV²E\¿VFDO\HDU

In addition, the Sustainability Committee has made the decision
to adopt CO 2-free electric power at all DIC Group sites inJapan. In November 2022, the DIC Building (DIC’s corporate
headquarters) and the No. 2 DIC Building in Tokyo switched fully
to CO2-free purchased electric power. Remaining sites began
gradually changing over in April 2023, with a total of 34 sites
having completed this switch. Looking ahead, the Group will
also advance the use of green power at sites in other countries
DQGWHUULWRULHV7KH*URXSKDVREWDLQHGWKLUGSDUW\YHUL¿FDWLRQ
of its CO2 emissions (Scope 1 and 2).

■ Principal Initiatives in Fiscal Year 2023
❶ Energy Consumption and CO2 Emissions by the Global
DIC Group (Scope 1 and 2)
Energy consumption by the global DIC Group in fiscal year
Global CO2 Emissions: Results and Forecast for Fiscal Year 2030

Global CO2 Emissions

Emissions(Tonnes)（t-CO2）

1,000,000

900,000

900,000

800,000

2013

2020

2021

2022

Other

DIC Group
overseas2023

1,000,000

800,000

700,000

700,000

600,000

600,000

500,000

500,000
400,000

400,000

300,000

300,000

200,000

200,000

100,0000

100,000
0

13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

CO2 emissions(reported)

Target for reduction of
CO2 emissions

2013

2020

GlobalDIC Group

Global Energy Consumption

Global CO2 Emissions per Unit of Production（t-CO2/ton）Japan Sun Chemical Greater Asia–Pacific
Group
China
region50% reduction from the fiscal year
2013 level by fiscal year 2030

2021

2022

2023

(Terajoules)

2013

2020

2021

2022

2023

Greater Asia–PacificChinaregionOther

DIC Group
Globaloverseas DIC Group

16,000700.0

14,000600.0

12,000500.0

10,000
400.0

8,000

300.0

6,000

200.0

4,000

100.0

2,000
0

0
Japan

Sun Chemical
Group

Greater
China

Asia–Pacific DIC Groupregionoverseas

Japan

GlobalDIC Group

DIC Report 2024

93

Americasand Europe

Climate Change

Factors Contributing to Change in Global CO2 Emissions
Impact on CO2 emissions (tonnes)

DIC Group in Japan

Factors

Implementation of 473 energy-saving initiatives at sites-62,533

Reduction of emissions factor for electric power-6,373

Decrease in production volume-2,914

DIC Group in other countries and territories

Asia–Pacific region: Switch from coal-fired to LNG-fired boiler in Indonesia-1,407

Asia–Pacific region: Shift to green power-2,021

Asia–Pacific region: Energy-saving initiatives at sites-1,872

Asia–Pacific region: Decrease in production volume-13,548

Asia–Pacific region: Other factors (including reconstruction of facilities)-2,725

Greater China: Energy-saving initiatives at sites-2,708Greater China: Acquisition of business

7,770Greater China: Increase in production volume

2,693

Greater China: Other factors (including installation of new equipment)

1,786

Other: Decrease in production volume-44,269

15.8

9,541

-78,764-78,764

-244

-244

Change in CO2 emissions (tonnes)-185,555

Global CO2 emissions in fiscal year 2022

720,444

Global CO2 emissions in fiscal year 2023

534,889

Regional Initiatives
Japan
The bulk of renewable energy used by DIC Group companies
in Japan is natural energy generated by a biomass boiler, as
well as the use of wind and solar power (including throughpower purchase agreements (PPAs). In fiscal year 2023, the
DIC Group in Japan used 549,000 GJ of renewable energy(equivalent to 14,171 kl of crude oil), or 12.4% of total energy(steam and electric power) used by these companies. The use
RIUHQHZDEOHHQHUJ\E\',&*URXSFRPSDQLHVLQ-DSDQLQ¿VFDO
year 2023 accounted for a reduction in CO2 emissions of 38,069
tonnes, equivalent to 21.8% of the total reduction achieved by
the Group in Japan.

10.0-22,695

Asia–Pacific region: Power purchase agreement in India

Sun Chemical Group: Decrease in productio-71,820

Decrease (%)

25.8

renewable sources at an additional 33 sites had a significant
positive impact on CO2 emissions by the DIC Group, which were
GRZQWRQQHVRUIURP¿VFDO\HDU/RRNLQJ
ahead, the Group will continue taking decisive steps to advanceits use of renewable energy with the aim of meeting the goals of
DIC NET ZERO 2050.
EuropeIn an investment aimed at helping ensure sustainability by
reducing greenhouse gas emissions, Sun Chemical’s plantin Vienna replaced two older steam-generating boilers withVPDOOHUPRUHHI¿FLHQWXQLWV7KHLQWHJUDWLRQRIWKHQHZERLOHUV
into the plant’s existing heat recovery infrastructure resulted ina decrease in CO2 emissions of 300 tonnes. Other initiatives
to reduce CO2 emissions include projects to improve energy
HI¿FLHQF\WKDWKDYHKHOSHGFXUEHQYLURQPHQWDOLPSDFWDQGORZHU
costs. Sun Chemical will continue to focus on the recovery andreuse of waste heat as a particularly effective approach at manyof its facilities.

Total energy consumption by the DIC Group’s 20 offices andresearch sites (excluding the Central Research Laboratories)
in Japan in the period under review was down 1.6% from the
SUHYLRXV¿VFDO\HDU$NH\IDFWRUEHKLQGWKLVGHFUHDVHZDVWKH
implementation of energy-saving initiatives by these facilities,
including replacing aged light fixtures and air conditioning
HTXLSPHQWZLWKQHZHUKLJKHI¿FLHQF\PRGHOVWKDWFRPSO\ZLWKthe standards set by the Energy Conservation Center, Japan(ECCJ) for its Top Runner program; turning off lights when
not needed and implementing mandatory air conditioning
temperature settings; and working with facility managementcompanies to promote diligent measures to reduce energy
use. In addition, a year-round no-jacket/no-tie dress code wasinstituted under the WSR 2020 project.
The use of electric power generated using energy from

DIC Report 2024

94

Climate Change$VLD²3DFLÀF5HJLRQ
The coal-fired boiler at PT. DIC Graphics’ Karawang Plant
in Indonesia was replaced with a low-carbon LNG-fired unit.
The lower carbon content of the fuel used to fire this boiler

FRQWULEXWHGVLJQL¿FDQWO\WRDGHFOLQHLQUHJLRQDO&22 emissions.
The plant also has a biomass boiler fueled partially by palm
kernel shells.

Reduction in Global CO2 Emissions Attributable to the Use of Renewable EnergD

Breakdown of Reduction in Global CO2 Emissions Attributable to
the Use of Renewable Energy in Fiscal Year 2023

Reduction in Global CO2 Emissions Attributable to the Use ofRenewable Energy(Tonnes)(%)

120,000

18%
16%

Heat generatedusing biomass

100,000

14%
12%

80,00071,42810%

60 tonnes

60,00040,00018,332

8%

18,577

17,418Decrease in Global
CO2 Emissions
Attributable to the Use ofRenewable Energy

Green power

34 tonnes

107,620tonnes

Electric power
generatedusing biomass 1 tonnes

6%4%

20,00035,57837,51239,742

36,192

2%

Solar power 3 tonnes

0%

0

2020

2021

2022

Wind power 1 tonnes

2023

Small hydroelectric 2 tonnes
power

Reduction attributable to the use of heat
Reduction attributable to the use of electric power
generated using renewable energy
generated using renewable energy
Total reduction attributable to the use of renewable energy (Contribution to reduction in CO2 emissions (%))

1RWH)RUPRUHLQIRUPDWLRQRQWKHVH¿JXUHVSOHDVHVHH³5HGXFWLRQLQ*OREDO&2 2 Emissions
Attributable to the Use of Renewable Energy (Tonnes/%)” below.

Reduction in Global CO2 Emissions Attributable to the Use of Renewable Energy (Tonnes/%)
Unit

2020

2021

2022

2023

Reduction attributable to the use of heat generatedusing renewable energy (biomass)

t-CO₂

35,57837,51239,742

36,192

Reduction attributable to the use of renewableenergy (electric power generated on-site)

t-CO₂

18,332

17,41812,568

6,874

Reduction attributable to the use of (green power)

t-CO₂

0

0

6,009

64,554

Total reduction attributable to the use of renewable energy

t-CO₂

53,90954,92958,319107,620

CO2 emissions by the global DIC Groupt-CO₂

551,049

588,985

720,444534,889

Total reduction attributable to the use of renewableenergy + CO2 emissions by the global DIC Group

t-CO₂

604,959

643,914778,763642,509

Total reduction attributable to the use of renewableenergy (%)

%

8.9%

8.5%

7.5%

16.7%

Unit

2020

2021

2022

2023

Reduction attributable to the use of electric
power generated using renewable energy (biomass)

t-CO₂

7,739

6,542

7,277

1,100

Reduction attributable to the use of solar power

t-CO₂

8,165

8,054

2,320

3,072

Reduction attributable to the use of wind power

t-CO₂

2,025

2,451

2,683

928

Reduction attributable to the use of small hydroelectric power

t-CO₂

403

371

288

1,774

Reduction attributable to the use of renewableenergy (electric power generated on-site)t-CO₂ 18,332 17,418 12,568

6,874

The DIC Group’s Global Solar Power Generating Capacity(For Internal Consumption)

Installation of Solar Power Facilities in Japan(Fiscal Years 2018–2023)(kW)
10,000Installed: Fiscal year 2017
(Start of operation: Fiscal year 2018)

1,600kWInstalled: Fiscal year 2018
(Start of operation: Fiscal year 2019)

1,440kWInstalled: Fiscal year 2019
(Start of operation: Fiscal year 2020)

1,265kWInstalled: Fiscal year 2021
(Start of operation: Fiscal year 2022)

261kW

9,000
8,000
Tatebayashi Plant(Location: Idle land; capacity: 1,250 kW)

DIC Kitanihon Polymer(Hokkaido Plant)(Location: Idle land; capacity: 250 kW)
DIC Kitanihon Polymer(Tohoku Plant)(Location: Idle land; capacity: 200 kW)

Saitama Plant(Location: New administrative building;capacity: 30 kW)

Installed: Fiscal year 2022
(Start of operation: Fiscal year 2023)

282kW

SEIKO PMC
(Location: Mizushima Plant;
capacity: 205 kW)

Yokkaichi Plant(Location: New administrative building;capacity: 20 kW)

452

6,000

1,265

5,000

2,240

4,000
Kashima Plant(Location: Idle land;
capacity: 1,600 kW)

Central Research Laboratories(Location: Laboratory roof;
capacity: 60 kW)

DIC Kyushu Polymer(Location: Idle land; capacity:
309.5 kW)

Central Research Laboratories(Location: Laboratory roof;
capacity: 40 kW)

Kyushu Polymer(Location: New administrativebuilding; capacity: 56 kW)

3,000

1,600

2,000
1,000

1,160

0
2016 2017 2018 2019 2020 2021 2022 2023
Capacity as of the end of the previous fiscal year
Capacity added during the fiscal year

Chiba Plant(Location: Laboratory roof;
capacity: 100 kW)

KJ Chemicals(Power purchaseagreement: 282 kW)
Sakai Plant(Location: Warehouse roof; capacity: 324.8 kW(for charging EVs)

Komaki Plant(Location: Idle land; capacity: 120 kW)

DIC Report 2024

95

326

700

7,000

(FY)

Climate Change

Energy Mix
DIC Group in Japan

16,00016,00014,00014,00012,00012,00010,00010,000(Thousands of GJ)(Thousands of GJ)

DIC Group in Other Countries and Territories

8,000

8,000

6,000

6,000

Purchased electric power

4,000

Purchased electric power

4,000

Purchased heat (steam + cold/hot water)

Purchased heat (steam + cold/hot water)

Natural gas

2,000

Natural gas

2,000

Petroleum-based fuels

Petroleum-based fuels

Coal

0

Coal

Renewable energy (heat)2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 (FY)0

Renewable energy (electric power)❷ Grasping CO2 Emissions Across the DIC Group’s Supply
Chains (Scope 3)
The DIC Group recognizes the importance of reducing
emissions of greenhouse gases across its supply chains andworks to ensure a grasp of emissions in all categories of Scope
3. The Group has also revised its calculation for emissions in all
FDWHJRULHVZLWKWKHDLPRIUH¿QLQJGDWDUHSRUWHGLQWKLVFDWHJRU\Category

Logistics Initiatives
In Japan, DIC Group companies are using fewer, larger trucks
DQGWDNLQJGHFLVLYHVWHSVWRLPSURYHORDGLQJHI¿FLHQF\DVZHOODVSURPRWLQJWKHXVHRIPRGDOVKLIWDQGWKHHI¿FLHQWFRPELQDWLRQ
of truck, rail and marine transport. Group companies in othercountries and territories are advancing initiatives tailored to
local circumstances. Over the long term, the Group will explore
diversifying the transportation methods it uses with a view to
reducing emissions of greenhouse gases by advancing the useof next-generation modes of transport.

Emissions1

Purchased goods and services

2

Capital goods

164,0433

Fuel- and energy-related activities(not included in Scope 1 or 2)

136,579

4

Upstream transportation and distribution

259,5425

Waste generated in operations

69,692

6

Business travel

2,893

7

Employee commuting

6,825

9

Downstream transportation and distribution

10

Processing of sold products

12End-of-life treatment of sold products

15

Investments

Renewable energy (electric power)raw materials it uses, as well as seeking to expand its used of
bioderived and recycled raw materials. For more information,please see “Ensuring the Sustainable Procurement and Use of
Raw Materials” on page 123.

Greenhouse Gas Emissions Across the DIC Group’s Supply
Chains in Fiscal Year 2023
Category number

Renewable energy (heat)2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 (FY)

4,658,043

Calculating PCF
To achieve carbon neutrality, it is crucial to reduce CO 2
emissions across the supply chain. To this end, it is necessary
to calculate and reduce the CO2 emissions of each DIC Group
company and product. Despite the existence of international
standards for calculating product carbon footprint (PCF),
including those provided by ISO 14067:2018 and the GHG
Protocol, certain aspects of these standards are vague, so
companies trying to calculate PCF must make their own
interpretations and determine their own specific method for
calculation. The DIC Group has shared information, including
on guidelines from the European nonprofit Together for
Sustainability (TfS) and Japan’s Ministry of Economy, Tradeand Industry and Ministry of the Environment, to develop a
consistent Groupwide method for calculating PCF. In fiscal
year 2023, the DIC Group calculated PCF for 1,809 products(DIC:179, Sun Chemical: 1,630) and provided this information
to customers.

308
144,565
1,268,613
17,626

Procurement Initiatives
Based on the DIC Group Sustainable Procurement Guidelines,
DIC formulated and promotes awareness of the DIC Group
Sustainable Procurement Guidebook, encouraging suppliers
to reduce their emissions of greenhouse gases. The Groupalso surveys suppliers to assess the status of their emissions
reduction efforts and their reduction targets, and to enhance
understanding. With the objective of better grasping andlowering the carbon footprint of DIC products, the Group is also
making provisional calculations of the carbon footprint of the

Avoided Emissions
The term “avoided emissions” refers to CO2 emissions that can

DIC Report 2024

96

Climate Change

be avoided through the use of a product. Examples include
SURGXFWVWKDWFRQWULEXWHWRLPSURYLQJIXHOHI¿FLHQF\E\UHGXFLQJ
vehicle body weight and products that help reduce energy
used for heating and cooling by improving insulation. In recent
years, avoided emissions have attracted attention as a way toenvisage the positive impact of corporate activities on climatechange. While there remains room for improvement in termsof the precision of calculation methods and the reliability ofcalculations, DIC is promoting the use of avoided emissions as
a way for it to clarify its contributions to decarbonization acrossits supply chains.

among 1,653 companies surveyed. DIC has earned an A rank
every year since this program began.
Going forward, the DIC Group will continue working to ensurecompliance with pertinent laws and regulations, as well as toreduce leaked fluorocarbons from its sites by, among others,choosing air conditioning equipment with low environmental
LPSDFWUHIULJHUDQWVLQFOXGLQJWKRVHFRQWDLQLQJQRÀXRURFDUERQVLeaked Fluorocarbons by the DIC Group in Japan (CO2 Equivalent)(Tonnes of CO2)
1,000

Innovation
By capitalizing on open innovation to promote the chemical
recycling of its products, as well as the recycling and conversionof recovered CO2 into new raw materials, the DIC Group is
working to realize manufacturing that does not rely on fossil
fuels, thereby helping contribute to sustainability for the global
environment and for society, as set forth in DIC Vision 2030.

900
800
700
600
500
400
300
200

■ Protecting the Ozone Layer

100
0
2016

Hydrofluorocarbons (HFCs) are used widely as refrigerants
in equipment and facilities. While not an ozone-depleting
substance, HFCs have a warming potential 100–10,000 times
that of CO2 and their use is expected to account for a 0.5°C
increase in the global average temperature by the end of
the 21st century. At the 28th Meeting of the Parties in Kigali,
Rwanda, held in October 2016, the Parties to the Montreal
Protocol on Substances that Deplete the Ozone Layer reached
an agreement to phase out the production and use of HFCs
(the Kigali Amendment). As of January 11, 2024, the Kigali$PHQGPHQWKDGEHHQUDWL¿HGE\3DUWLHV,QFOXGLQJ-DSDQDICIn April 2015, Japan revised its Fluorocarbons Recovery
and Destruction Law. The same month, the Act on Rational
Use and Proper Management of Fluorocarbons entered into
force, compelling stakeholders to ascertain and report leaksof fluorocarbons from commercial equipment and facilities. In
April 2020, a revised version of the Act on the Rational Useand Proper Management of Fluorocarbons came into effect,
introducing direct penalties for violations in instances whereÀXRURFDUERQVDUHQRWUHFRYHUHGE\XVHUVIn fiscal year 2023, leaked fluorocarbons from DIC Groupsites in Japan were equivalent to 452 tonnes of CO2. (Leaks
in excess of 1,000 tonnes per site or per company must bereported to the Japanese authorities.) The Company has
worked to effectively manage fluorocarbons since fiscal year
2015, when the Act on Rational Use and Proper Managementof Fluorocarbons entered into force, and has managed tokeep leaks below the level requiring reporting. In fiscal year
2023, the Group’s efforts to comply with laws governing leaked
fluorocarbons were recognized in the Japan Refrigerant andEnvironmental Organization’s third JRECO Fluorocarbon
Rating, which selected it as one of 76 A-rank performers from

DIC Report 2024

97

2017

2018

2019

2020

DIC Group companies in Japan

2021

2022

2023 (FY)Climate Change

Key Data
Category

Unit

Energy used(converted into GJ)

1,000 GJ

Energy consumed perunit of production

GJ/tonne

Boundary

Fiscal year 2019

Fiscal year 2020

Fiscal year 2021

Fiscal year 2022

Fiscal year 2023

Japan

4,184

3,827

4,183

4,028

4,447

PRC

1,056

1,036

1,197

1,066

1,110

$VLD±3DFL¿FUHJLRQ

1,623

1,606

1,835

1,650

1,178

Sun Chemical

3,784

3,791

3,196

7,767

6,017

Other

69

118

63

58

48

Global

10,717

10,37910,474

14,56912,800

Japan

3.706

3.733

3.656

3.687

4.391

PRC

5.574

5.698

4.749

4.881

3.914

$VLD±3DFL¿FUHJLRQ

6.810

7.151

7.389

7.331

5.825

Sun Chemical

4.371

4.705

3.739

7.603

7.557

133.4403.030

108.223110.776102.070

Other

CO2 emissions

CO2 emissions (Scope 1)CO2 emissions (Scope 2)CO2 emissions per unit ofproduction

TonnesTonnesTonnesKg/tonne

Global

4.423

4.559

4.189

5.695

5.577

Japan

232,028

209,018

224,916

208,231

136,412PRC

63,00060,16370,34262,457

71,998$VLD±3DFL¿FUHJLRQ

122,812

123,227

144,107

127,851

83,583

Sun Chemical

173,146

153,374

147,553

319,946

241,182

Other

2,107

5,267

2,068

1,958

1,715

Global

593,093551,049

588,985

720,444534,889

Japan

135,428

118,786

135,612

128,458

112,591

PRC

14,004

13,09815,287

14,63522,896$VLD±3DFL¿FUHJLRQ

66,19969,597

88,575

76,12744,028Sun Chemical

53,78050,28351,503

121,361

97,600

Other

1,236

1,299

1,085

1,029

944

Global270,647

253,064

292,063

341,610

278,059

Japan

96,60090,23189,304

79,77323,821

PRC

48,99647,06555,05447,822

49,102$VLD±3DFL¿FUHJLRQ

56,61353,63055,531

51,72539,555Sun Chemical

119,366

103,091

96,050

198,585

143,582

Other

871

3,967

982

929

771

Global322,446

297,986

296,922

378,834

256,830

Japan

206

204

197

191

135

PRC

332

331

279

286

254

$VLD±3DFL¿FUHJLRQ

515

549

580

568

413

Sun Chemical

200

190

173

313

303

Other

4,053

135

3,579

3,731

3,616

Global

245

242

236

282

233

DIC Report 2024

98

Quality

Enhancing Product Quality and Customer Satisfaction
Goals and Achievements of Major Initiatives
Objective of initiatives

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

Goals for fiscal year 2023

Achievements in fiscal year 2023

Cultivate a deeper understanding of
quality and customers, taking into
account the role of departments
responsible for quality, with theaim of providing products that are
trusted by customers and society.

・Organizational changes were
implemented in January 2024.
・Business-specific efforts were promoted
to deepen understanding of quality andcustomer needs.

Create a scheme for fostering
individuals’ sense of ownership overtheir own work and apply it to tasks
performed by management-level
employees.

・Certain noncore tasks werereassigned to other employees.
・Flexible work assignments were
implemented together withassociated efforts to increase
employee motivation.

Evaluation

Goals for fiscal year 2024★★

Ensure that understanding of thefunctions and roles of departments
responsible for quality permeates
the entire Group.

★★

Create a scheme for fostering
individuals’ sense of ownership overtheir own work and apply it to tasks
performed by management-level
employees.

Secure product quality.

Basic Approach
In line with The DIC Way and its basic sustainability policy, the DIC Group positions its Environment, Safety and Health
Policy and its Quality Policy as two inseparable aspects of its operations. Accordingly, the Group works continuously toprovide products and services that respond to the needs of customers and society at large.

DIC’s Quality Policy

Contribute to the prosperity of customers and society by consistently providing reliable products (Updated in May 2015)■ Framework for Promotion

Guided by DIC’s quality policy, the president and CEO speaks toemployees annually regarding the importance of quality assurance.
In addition, the Group offers awareness enhancement and training
programs while reiterating the belief articulated by the director in chargeof production departments that safe operations and quality assurance
are the foundation of everything the DIC Group does. The Groupalso strives to promote the improvement of quality by ensuring theappropriate administration of its quality management system (QMS).

Customersatisfaction

Having created the position of deputy general manager in charge of
quality control in each of the management units, in fiscal year 2024',&ZLOOUHYDPSLWVTXDOLW\PDQDJHPHQWFRQ¿JXUDWLRQ7KLVZLOOLQFOXGH
having quality assurance groups at individual sites report directly to thegeneral manager of that site, while the corporate headquarters’ Quality
Assurance Department and Quality Control Department focus on
identifying issues facing sites and product divisions, devising the mosteffective measures in response and reinforcing governance.

Product divisions

In terms of practical measures, the president and CEO convenes
meetings of DIC’s Quality Committee on a quarterly basis, thus
maintaining direct involvement in quality management for the DIC
Group in Japan with a view to playing a role in quality management for
the global DIC Group. The Quality Committee formulates Group quality
policies and deliberates important quality measures. At committee
meetings, product division general managers and unit heads report on
the implementation status of these measures and summarize related
activities. Meeting results are reported to the Board of Directors, which
provides appropriate supervision.

To leverage its agility and comprehensive capabilities, the DIC Groupin Japan employs a matrix-like quality management configuration withproduct divisions on the vertical axis and the Technical Management Unit
and Production Management Unit on the horizontal axis. The Quality
Assurance Department is part of the Production Management Unit.

Trust

Expectations

Quality Assurance Department
Quality Control Department

QMS
administration

Sites

Peace ofmind

Satisfaction

DIC Report 2024

99

Quality❸ Compliance-Focused Initiatives■ Quality Assurance and

Recognizing compliance as the top priority for the Group, DIC believes thata corporate climate in which each employee works to ensure its quality isessential to its ability to provide products that satisfy its customers, as well
DVWRFRQWULEXWHWRVRFLHW\,Q¿VFDO\HDUWKH',&*URXSODXQFKHG,62
9001 Top Management Training for technical and sales department leaders
who have many opportunities to interact with customers, beginning withproduction facility general managers. Rather than being conceptual in nature,
this program employs case studies as study materials and emphasizes
the importance of each individual thinking and acting as if quality is their
responsibility even if they are not directly involved in production.

Quality Improvement Initiatives
The Quality Assurance Department and the Quality Control Department
implement measures deliberated by the Quality Committee and in theirrespective roles work to improve the overall level of quality management. In
the event an issue of nonconformance or inappropriate conduct arises,* thedepartments take corrective measures to prevent recurrence and improvecustomer satisfaction.
❶ Initiatives Aimed at Increasing Customer Satisfaction

The Quality Assurance Department’s principal responsibilities are as follows:

Also in fiscal year 2020, a quality compliance e-learning program waslaunched for DIC Group employees in Japan to prevent the recurrence ofquality improprieties. This program, which uses actual Group incidents ascase studies, consistently enjoys a participation rate of 100% of eligible
employees. In a new initiative, in fiscal year 2022 the Group inaugurated
a regular online lecture called “All About Quality,” which introduces qualityrelated topics and external case studies. Going forward, the Group willcontinue to expand training designed to give employees a greater sense ofownership over their own work.

① Plan and implement quality policies and important quality

measures, primarily at DIC Group companies in Japan;② Ensure the appropriate management and auditing of the

QMS;③ Evaluate the seriousness of complaints and criticisms, and ofissues of nonconformance*, and promote effective external
responses; and④ Foster a customer- and compliance-focused mindset.
* Issues of nonconformance or inappropriate conduct refer to instances when a product fails to fully meetstandards, conditions, etc. (nonconformance) or when a shipped product does not comply with laws,
regulations and/or DIC’s agreement with the customer (inappropriate conduct).

❹ Mechanisms for Dealing Appropriately with Issues

In addition to the Quality Committee meetings, led the president, DIC Groupquality conferences, which are conducted by the deputy general manager incharge of quality control in Japan, concentrate on transforming key policies
and measures for the Group in Japan into specific strategies, as well as
to communicate these strategies and monitor their implementation. The
conferences also play a role in improving quality management across theGroup by advancing the horizontal deployment of best practices across sites
and product divisions.

To provide high-quality products that customers feel secure using, the DIC
Group promotes a variety of quality improvement initiatives during productplanning, design and development, the procurement of raw materials,
production, product storage and sales, giving consideration to the need for
effective product stewardship.
In addition to regular quality audits and internal audits, the DIC Group in Japan
PRQLWRUVDQGLQVSHFWVVLWHVDVDSSURSULDWHWRHQVXUHRSHUDWLRQVFRQ¿UPZLWKthe QMS and makes improvements to systems and procedures to further earn
the trust of customers. This ensures that an awareness of the need to place
FXVWRPHUV¿UVWUHPDLQV¿UPO\URRWHGDFURVVWKH',&*URXS%HJLQQLQJLQ¿VFDO
year 2023, quality audits focus on realizing design quality, troubleshooting in
production processes and process control methods, among others, with the aimof ensuring even more stable production.

Product division quality conferences, which are led by product division
general managers and focus on raising customer satisfaction, are also
held. As well as proposing solutions that deliver value to customers, theproduct divisions quality conferences are in charge of BCM initiatives andthe management of changes, both matters of importance to customers. Sitequality conferences, which are conducted by site general managers, aretasked with ensuring the appropriate functioning of the DIC Group’s QMS
and promote improvements. In response to issues of nonconformance, sitequality conferences investigate causes, formulates plans for and oversee
the implementation of corrective actions, steps to prevent recurrence andpre-emptive measures. The Quality Assurance Department and the Quality
Control Department participate in these conferences and respond swiftly andappropriately to issues as required.

❷ Initiatives Aimed at Enhancing Product Quality

The Quality Control Department’s principal responsibilities are as follows:① Plan, implement and evaluate quality-related education;② Manage and supervise the appropriate implementation of quality-

related processes by product divisions and units, as well as bysites in Japan, including those of DIC Group companies; and③ Promote DX for processes related to quality control andquality inspections.

❺ Collaboration with DIC Group Companies in Other Countries

and Territories
At present, all subsidiaries in other countries and territories haveearned certification under ISO 9001, the International Organization forStandardization’s benchmark for quality management, in line with which
WKH\FRQGXFWDYDULHW\RISURGXFWTXDOLW\±UHODWHGLQLWLDWLYHV,Q¿VFDO\HDU
2024, DIC will consider a new framework that strengthens cooperation
ZLWKWKH',&*URXSLQWKH35&DQGWKH$VLD±3DFL¿FUHJLRQDQGZLOOJDWKHU
information with a view to collaboration with Sun Chemical in the future.

By recognizing and sharing best practices from sites, the DIC Group is
promoting the improvement of operating efficiency and procedures, as wellas preventing human error, thereby promoting the evolution of quality control
and quality inspection processes. The Quality Assurance Department, Quality
Control Department and site quality assurance groups conduct themselves
daily with confidence and pride in their role as “gatekeepers of quality,”
ensuring the stable delivery of safety and peace of mind to its customers.

DIC Report 2024

100

Human Resources Management

Reinforcing Management of Human Capital
Goals and Achievements of Major Initiatives
Objectives of initiatives

Foster human resources.

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

Goals for fiscal year 2023

Achievements in fiscal year 2023

Evaluation

Goals for fiscal year 2024

Systematically foster Group management
candidates and future global leaders.

・The dispatch of employees to external training institutions
and provision of in-house training for next-generation leaders
proceeded as planned. (DIC)• Deliberations on how best to proceed to uncover andprovide training for management candidates began with
regional headquarters. (DIC Group)★

Human resources• Systematically foster Group management
candidates and future global leaders.
• Promote reskilling and the improvementof management capabilities (promote
DX training, basic skill improvement
and enhance people management
capabilities) (DIC and DIC Graphics)

Enhance the “Job Challenge” system.

The “Job Challenge +” program (internal recruitment
system) was introduced. A total of 12 individuals took
advantage of this new system, beginning in July, totake on jobs in other departments concurrently with
their existing responsibilities. (DIC)★★

Enhance the “Job Challenge” and “Job
Challenge +” systems. (DIC)

Promote department-specific humanresources portfolio planning.

Despite promoting department-specific humanresources portfolio planning for key Group positions,estimating the quality and number of humanresources that will be required over the medium to
ORQJWHUPSURYHGGLI¿FXOW ',&★

・Promote department-specific humanresources portfolio planning.
(DIC Group)• Implement the strategic mid-career
hiring. (DIC)

Encourage one-on-one meetings to enhanceinternal communications.

With the aim of establishing one-on-one meetings as standard,monitoring of implementation and deployment of best practices
were implemented and a dedicated one-on-one meeting portalsite was created. (DIC and DIC Graphics)★★

Deploy CliftonStrengths®* for team building.

Team building activities were conducted to promote the sharing
of individual strengths with employees’ own departments andteams. (DIC and DIC Graphics)★★

Advance career support measures to assist theefforts of employees to design their own careers.

A support system involving interviews with in-house career
consultants was launched and interviews were conductedwith 102 individuals. Follow-up interviews were conductedwith participants in age group–specific career training (335individuals). (DIC Group in Japan)★★

Advance career support measures to assist
the efforts of employees to design their own
careers. (DIC Group in Japan)

Examine deployment of a global humanresources information system in Japanand elsewhere in Asia.

A global human resources information system
is necessary over the medium to long term fromthe perspective of effective global organizational
management. However, due to cost and other
FRQVLGHUDWLRQVGHSOR\PHQWLQ¿VFDO\HDUZDV
postponed and remains under consideration. (DIC
Group in Japan)★

Continue to consider the introduction ofa global human resources information
system. (DIC Group in Japan)

Build a management system for humanresources-related KPIs based on ISO 30414.

&RUHKXPDQFDSLWDOPDQDJHPHQW.3,VZHUHLGHQWL¿HGD
list was created, and data that can be collected now andthat will be collected in the future was determined. Plans
are to disclose a portion of this data publicly. (DIC Group)★★

Build a management system for humanresources-related KPIs. (DIC Group)

Continue to implement measures topromote diversity (training for female
employees in leadership roles, career
support for employees who are foreign
nationals).

With the goal of creating role models, a mentoring
system for female employees was established withfemale employees in management positions as
mentors. Issues facing employees who are foreignQDWLRQDOVZHUHLGHQWL¿HGWKURXJKWZRRQWZRLQWHUYLHZV
between employees and the diversity secretariat. (DIC)★★

Advance collaboration between DIC
and its special-purpose subsidiary.
Increase the percentage of the total labor
force accounted for by individuals withdisabilities at corporate headquarters,
VLWHVDQGVXEVLGLDULHVDQGDI¿OLDWHV

The percentage of the total labor force accounted for byindividuals with disabilities was 2.36%, falling short ofthe 2.4%-plus target level. (DIC Group in Japan)★

Ensure mobility (hiring,
retention and succession).

Improve engagement andorganizational cohesiveness.

SDGs Goals 3, 4, 5, 8 and 10

Reinforce human resources
system/ governance

Promote diversity.

DIC Report 2024

101

Encourage one-on-one meetings to enhanceinternal communications, team building andpeople management capabilities. (DIC and
DIC Graphics)

Continue to implement measures topromote diversity (training for female
employees in leadership roles, career
support for employees who are
foreign nationals, job opportunities forindividuals with disabilities). (DIC Groupin Japan)Human Resources Management

Guarantee human rights.

Reconsider and designate human rights–
related risks and take steps to promoteawareness Companywide.

Efforts to promote human rights awareness were promoted at 65
sites belonging to 13 DIC Group companies in Japan. In tandemwith self-inspections for compliance with labor laws, human rights
due diligence was conducted with survey items added regarding
foreign nationals, who are at high risk of human rights violations in-DSDQ1RLVVXHVZHUHLGHQWL¿HGDVDUHVXOWRIKXPDQULJKWVGXH
diligence. (DIC Group in Japan)★★

Create workplace environments conducive to
new work styles.

,Q-DQXDU\WKHFRQVWUXFWLRQRIQHZDFWLYHÀRRUVIRUEXVLQHVVJURXS
employees—phase one of an overall plan to renovate corporate
headquarters—was completed. In February, activity-based working(ABW), a new work style that allows employees to choose from avariety of locations, settings and support functions according to thenature of the work they are performing, was launched. A review
was conducted after three months and improvements to facilities
and administrative procedures were made based on feedback
received regarding perceived issues. (DIC)★★

Continue to implement corporate healthmanagement measures.

Steps were taken to strengthen the system for post-corporate
health check follow-ups by nurses and human resources
departments for individuals determined to require additional testingor treatment to prevent their condition from worsening.
Stress check results were analyzed and applied to implement
workplace improvements. The status of health management
measures was communicated widely to the general public. (DIC)★★

Support a healthy work–lifebalance.

Conduct human rights due diligence inline with updates to the DIC Group Human
Rights Policy.

Continue to implement corporate healthmanagement measures. (DIC)* CliftonStrengths® is a registered trademark of Gallup, Inc.

Basic Approach to Human Resources Management
To ensure its vision statement, “We improve the human condition by safely delivering color and comfort for sustainable prosperity—Color & Comfort,” permeates thework of all employees, the DIC Group aims to be a highly engaged organization in which a broad spectrum of individuals work together with a sense of unity to amplify
the social value. Recognizing human resources as capital critical to the execution of strategies, the Group is committed to respecting human rights and guaranteeing
the safety of all employees, as well as to creating work environments that empower its diverse employees to fully realize their potential, and strives to create systems
and an infrastructure that support autonomous growth. The Group also strives to foster human resources who can play an active global role and contribute to greaterorganizational cohesiveness.

priorities for building a strategic human resources portfolio that maximizes
the value of human capital and calls for the building of a personnel
management platform that underpins these priorities.

1. Reinforce Management of Human Capital❶ Build a Strategic Human Resources Portfolio that Maximizes

the Value of Human Capital
In line with The DIC Way, formulated to represent the DIC Group’s
fundamental management policy, DIC in Japan works with regional
headquarters overseeing operations in Greater China, the Asia–Pacificregion, and the Americas, Europe and Africa to promote the effective
management of human resources. In the DIC Vision 2030 long-term
management plan, announced in February 2022, the Group’s basic strategy
for human resources and diversity is to reinforce its management of humancapital. The plan recognizes human resources as capital that is crucial
WRWKHH[HFXWLRQRIPDQDJHPHQWVWUDWHJLHVDQGLGHQWL¿HVWKUHHVWUDWHJLF

The DIC Group is promoting the swift implementation of measures in linewith these strategic priorities, which are to foster human resources, ensure
mobility (hiring, retention and succession), and improve engagement andorganizational cohesiveness, seeing these as essential to building an ideal
human resources portfolio that will ensure the Group achieves the goalsof DIC Vision 2030. The Group is also working to build a new personnel
management platform by advancing initiatives to reinforce its humancapital from the perspectives of framework creation, risk management, andcorporate culture/work style reform.

DIC Vision 2030: Three Strategic Priorities and a Personnel Management Platform
Three strategic priorities
Foster human resourcesz Global-based talent management and leadershiptrainingz Promote reskilling to maximize human resources

Ensure mobility (hiring, retention and succession)z Actively recruit people from different industries andpeople with digital capabilities
z Achieve optimal balance between specialists andgeneralists

Improve engagement and organizational cohesivenessz Promote communication and use empathy and trust to
cultivate solidarity
z Advance innovation by encouraging enthusiasm about
taking on challenges

Personnel management platform
Framework creation: Global HR system

Risk management: Safety and compliance‫ ٴ‬Facilitate autonomous, multitrack career building‫ ٴ‬Ensure occupational health and safety, and appropriate labor practices‫ ٴ‬Adopt global HR system to create standardized Group framework‫ ٴ‬Improve compliance and reinforce HR governanceCorporate culture : Value diversity and inclusion‫ ٴ‬Promote diversity, recognizing it as a source of competitiveness‫ ٴ‬Nurture inclusion, recognizing it as essential to making diversity a competitive advantage

Work style reform: Bolster job satisfaction and productivity‫ ٴ‬Implement reforms designed to increase job satisfaction, as well as workplace reforms and process reforms that reinforce productivity

DIC Report 2024

102

Human Resources Management

WSR 2020 Committee Reforms and Targets
Ɣ Job Satisfaction Improvement Reforms
Create workplaces that embody The DIC Way by encouraging enthusiasm
about taking on various challenges, evaluating performance fairly andrecognizing personal value.
Ɣ Workplace Reforms
Realize work environments that motivate employees to achieve Company,
department/division and individual objectives, and make it possible for them
to work comfortably and productively, anytime and anywhere, in collaboration
with team members, colleagues and related parties.
Ɣ Process Reforms
Dramatically improve the productivity of individuals, departments/
divisions and the entire Company and reinforce the Group’s
competitiveness by leveraging DX to revamp existing work styles andbusiness processes and by building new business models.

❷ WSR 2020

In fiscal year 2022, Work Style Revolution (WSR) 2020, launchedin fiscal year 2020 with the aim of ensuring job satisfaction andproductivity, was transformed into an all executive–led committee
in which all employees participate. In addition to seeking to resolve
existing issues, all executives have committed themselves to afundamental revamping of work styles in response to a continuously
evolving environment. In fiscal year 2023, measures to reinforce
management of human capital were also taken up, in line with DIC
Vision 2030, as well as themes such as changes in corporate culture
and related issues, with the goal of strengthening the win–win
relationship between DIC and employees.

❸ Basic Personnel Statistics (DIC)
Fiscal year 2021
Number of
employees

MaleFemaleOverallMale

Average age

FemaleOverall

Averageyears ofemployment
New
graduates
hired

Male
FemaleOverallMale
FemaleOverall

2,659
686
3,345
42.9
42.8
42.9
19.8
21.1
20.1
42
18
60

Fiscal year 2022

2,646
709
3,355
42.7
42.6
42.7
19.3
20.5
19.6
44
22
66

Fiscal year 2023

Fiscal year 2021

Fiscal year 2022

Fiscal year 2023

2,798
759
3,557
42.4
42.2
42.3
18.3
19.2
18.5
59
28
87

(Fiscal year 2018 hires)(Fiscal year 2019 hires)(Fiscal year 2020hires)

84.4%
81.8%
83.6%
109
30
67.8%
43人
16人
59人
1.6%
2.3%
1.8%

91.5%
72.7%
86.4%
218
53
75.7%
57
13
70人
2.0%
1.7%
2.0%

Retention rate
(after three
years)

Male

Mid-career hires(percentage of
total new hires)

Male

Separations(voluntary)(number ofindividuals)

Male

FemaleOverallFemaleOverallFemaleOverallMale

Separation rate(voluntary)

Note: The number of employees refers to individuals registered as employees of DIC Corporation and thusGLIIHUVIURPWKH¿JXUHLQWKHDQQXDOVHFXULWLHVUHSRUWFemaleOverall

93.0%
90.0%
92.1%
63
7
53.8%
54
12
66
2.0%
1.8%
2.0%

of external institutions providing training in diverse areas, including
liberal arts. In addition, to expand the scope of efforts to foster
leaders across the DIC Group, the Company is collaborating with
regional headquarters to explore the creation of a leadershiptraining program that is aligned with its talent pooling process.

2. Three Strategic Priorities
The DIC Group’s basic strategy for human resources and diversity is to
UHLQIRUFHLWVPDQDJHPHQWRIKXPDQFDSLWDO7KLVUHÀHFWVWKH*URXS¶VEHOLHI
that maximizing the value of human capital is crucial to promote businessportfolio transformation and establishing a more robust global management
FRQ¿JXUDWLRQWZRRIWKHSULQFLSDOVWUDWHJLHVRIWKH',&9LVLRQORQJ
term management plan. In line with this basic strategy, the Group is
promoting measures in line with three strategic priorities, which are to foster
human resources, ensure mobility (hiring, retention and succession), andimprove engagement and organizational cohesiveness.

(3) Reskilling to Maximize Human Resources
DIC extends support for career building that allows individual
employees to design their own careers and provides an arena forthem to continuously expand and polish their skills. In addition to
traditional self-development programs aimed at the acquisition ofskills, the Company offers subscription-based online programs
that emphasize reskilling and allow employees to freely choose
the courses they need from a wide selection. In fiscal year 2023,
the Company’s average spending on education and training per
employee amounted to ¥89,439.

❶ Foster Human Resources(1) Global-Based Talent Management
One of the basic strategies outlined in DIC Vision 2030 is to
HVWDEOLVKDPRUHUREXVWJOREDOPDQDJHPHQWFRQ¿JXUDWLRQ*XLGHG
by this strategy, corporate headquarters in Japan and regional
headquarters overseeing operations in the Americas and Europe,*UHDWHU&KLQDDQGWKH$VLD±3DFL¿FUHJLRQZRUNWRJHWKHUWRSURPRWH
DYDULHW\RIJOREDOWDOHQWPDQDJHPHQWLQLWLDWLYHV,Q¿VFDO\HDU
the Group began formulating a competency model for managementlevel human resources and launched global talent pooling.

Average Spending on Education and Training per Employee (DIC)(2) Leadership Training
DIC chooses talented employees with the goal of systematicallycultivating the leaders of the future and dispatches them to a variety

DIC Report 2024

103

Fiscal Year

2021

2022

2023

Total (Yen)69,346

96,57889,436

Human Resources Management(1) Surveys to Assess Engagement$VD:65LQLWLDWLYHDLPHGDWLPSURYLQJHQJDJHPHQWVLQFH¿VFDO
year 2021 DIC has periodically surveyed employees of the DIC Group’s
13 companies in Japan regarding this topic. The findings of thesesurveys are used not only to assess engagement with employees but
also to identify issues to be addressed and formulate countermeasures.

❷ Ensure Mobility (Hiring, Retention and Succession)
DIC recognizes that the realization of business portfolio transformation
depends on not only fostering human resources but also on ensuring andimproving mobility for DIC Group employees.
(1) Active Recruiting of Individuals from Different
Industries and People with Digital Capabilities
To accelerate the diversification of its human resources portfolio, DIC is
stepping up efforts to recruit experienced individuals, primarily from different
industries. In fiscal year 2023, the percentage of new recruits that wereexperienced mid-career hires exceeded 70%. (Calculation: Experienced
mid-career hires / (New graduates + Experienced mid-career hires)). The
Company is also intensifying efforts to hire people with digital capabilities.
Of note, in addition to seeking experienced mid-career individuals who it
expects will be able to hit the ground running, DIC will adopt recruitment by
job category for new graduates, underscoring its commitment to raising theoverall level of its human resources portfolio.

(2) Cultivation of Solidarity through Communication,
Empathy and Trust
One issue highlighted by previous engagement surveys was a lackof communication between superiors and subordinates. In response,
in fiscal year 2022 DIC introduced a system of one-on-one meetings
with the goal of promoting communications between these two keygroups. In fiscal year 2023, the Company deployed a Companywide
communications training workshop for management-level employees
called “Interactive session: Modern people management practices.” DIC
also began conducting companywide workplace team-building activities,
aimed at nurturing interpersonal relations, using the CliftonStrengths ®
DVVHVVPHQW¿UVWLQWURGXFHGE\',&LQ¿VFDO\HDUZKLFKWRGDWH
has been taken by approximately 80% of employees.

(2) Support for Autonomous Career Building
As a part of its support for career building, DIC provides “self-career dock”
age group–specific training, the objective of which is to encourage career
independence. In fiscal year 2023, the Company created the position ofcareer support manager within its human resources department. DIC also
has nationally qualified in-house career consultants that conduct careerdevelopment interviews with interested employees. The Company also
follows up age group–specific career training by conducting “self-career
GRFN´LQWHUYLHZVZLWKDOOSDUWLFLSDQWV,Q¿VFDO\HDUFDUHHUGHYHORSPHQW
interviews were conducted with 102 employees, while “self-career dock”
interviews were conducted with 335 employees.

3. Talent Management: Personnel System, Global

Human Resources Framework and Group Human
Resources Governance❶ Personnel System Reforms Aimed at Facilitating
Autonomous, Multitrack Career Building
In tandem with its formulation of DIC Vision 2030, in January 2022
DIC revised its personnel system with the objective of enhancing
organizational capabilities to support qualitative reforms in existing corebusinesses and the successful commercialization of new businesses. In
UHYLVLQJWKLVV\VWHPWKH&RPSDQ\LGHQWL¿HGNH\SROLFLHVE\LPSURYLQJ
added value and productivity, encouraging a performance- andchallenge-oriented focus, and supporting career building, in line withZKLFKLWGUDPDWLFDOO\UHYDPSHGLWVTXDOL¿FDWLRQEDVHGUHPXQHUDWLRQDQG
evaluation systems. To ensure these systems function effectively as aframework for talent management for all employees, since fiscal year
2022 the Company’s human resources team and individual businessgroups meet regularly to discuss human resources management, thereby
strengthening communication regarding personnel-related issues.

7RVXSSRUWHPSOR\HHV¶GHVLUHWRIRUJHWKHFDUHHUWKH\GHVLUHLQ¿VFDO
year 2019 DIC launched an in-house recruitment system dubbed “Job
Challenge.” In fiscal year 2023, DIC introduced a new system called“Job Challenge +,” which enables employees to attempt a job in anotherdepartment on a temporary basis while continuing to serve in theircurrent capacity. During the period under review, 12 individuals took
advantage of this new system to broaden their careers by taking on jobs
in other departments concurrently with their existing responsibilities.
(3) Promotion of Succession Planning
DIC promotes succession planning from the perspective of ensuringbusiness continuity and fostering human resources. The Company
holds a global human resources management meeting as a forum forhuman resources and other departments to share information on humanresources and related issues, with an important agenda item being
succession planning for key positions. Key positions have also been
GH¿QHGIRUWKH',&*URXSLQ*UHDWHU&KLQDDQGWKH$VLD±3DFL¿FUHJLRQ
and a system has been established to create and ensure the successful
implementation of succession plans in both regions.

❷ 4XDOLÀFDWLRQ%DVHG5HPXQHUDWLRQ6\VWHP(QFRXUDJLQJ
Autonomous Career Building and Maximizing PerformanceƔ -REDQG3HUIRUPDQFH2ULHQWHG4XDOLÀFDWLRQ%DVHG
Remuneration System
To ensure employees clearly understand DIC’s mission and are able
to fully realize their potential, the Company defined rank- and jobspecific roles, necessary abilities, and performance expectations for
management-level and regular employees. At the same time, DIC
revised its qualification-based remuneration system, making it more
job-oriented, disclosing the roles and abilities expected of higherranking employees to make it possible for individual employees to map
out their own career prospects. The new system also places greater
emphasis on performance, making it possible to reward employees
ZKRKDYHDFKLHYHGVLJQL¿FDQWUHVXOWVDWDQHDUOLHUVWDJHRIWKHLUFDUHHU
than ever before regardless of their job or academic history.

❸ Improve Engagement and Organizational CohesivenessTo increase job satisfaction and productivity for DIC Group
employees in Japan, DIC promotes initiatives to improveengagement and organizational cohesiveness, spearheaded by the
WSR 2020 Committee, in which all executives participate, with theultimate goal of strengthening the win–win relationship between the
Company and employees.

DIC Report 2024

104

Human Resources Management

Ɣ Promotion of Multitrack Career Building
DIC has established systems for fostering both generalists and specialists tofacilitate multitrack career building. As well, the Company created a schemethat divides management-level employees, depending on their particular role/job, into either people managers or professionals, facilitating promotion inaccordance with individual strengths and aptitudes.

Ɣ Fair and Impartial Evaluations
Individuals responsible for evaluating performance hold meetings withregular employees to ensure the integrity of evaluations and increase
the visibility of standards used to identify talented human resources.
In addition to promoting the fair and impartial administration of theevaluation process in each department and division, these evaluatormeetings will be used to support key aspects of career building, including
job rotations and training.

New Qualification-Based Framework❹ Creation of a Standardized Global Human Resources

People managers

Specialists
Management-level
employees(Evaluated based on
performance of role)

Professionals

Regular employees(Evaluated based on exercise of abilities)

Job classification

Production

Sales/
marketingTechnology/
R&D

Administration

Multiple career paths

Newbusinesses

Generalists❸ Evaluation Systems that Inspire Employees to Achieve

Results and Take on Challenges
Ɣ Performance-Based Evaluations
To further advance its emphasis on performance and evaluate thechallenges taken on by employees, DIC partially revised its approach tosetting targets and completing evaluation sheets, creating a mechanism
to facilitate a more quantitative assessment of performance, andreviewed conduct and process assessment procedures to encourage
autonomous action. This will make it possible to evaluate the cumulative
achievements of employees who have acted autonomously to addresscomplex challenges in a manner that contributes to the achievement of
the targets of the DIC Vision 2030 long-term management plan.
Ɣ Personnel Evaluation System as a Tool for Encouraging
Employees to Take on Challenges
To further encourage employees to take on challenges in addition to their
existing responsibilities, DIC recently introduced a mechanism whereby
points are added to the evaluation of employees who taken bold steps
that have not only yielded short-term results but also contributed tomedium- to long-term growth, thereby further motivating them to seek
challenges and drive innovation.
Ɣ Personnel Evaluation System as a Tool for Career Building
DIC has adopted a career goal sheet for employees to plan and track
their own career development. Using these sheets allows individuals totake stock of their own careers at present and envision where they want
to be in the future by setting goals for one year and three years ahead.
This enables employees to design their own careers and set appropriate
goals with the assumption that their superiors will comment on careergoal sheets and incorporate them into one-on-one meetings to assist
WKHPLQEXLOGLQJIXO¿OOLQJFDUHHUV&DUHHUJRDOVKHHWVDUHDOVRXVHGLQ
personnel exchanges and other cross-departmental initiatives.

Framework
With the rapid expansion of its global operations, DIC recognizes that
securing and fostering human resources around the world and ensuring theright people are in the right places across the DIC Group are essential tobolstering the value of the Group’s human capital and effectively carryingout its management strategies, and has thus sought to integrate global
human resources management. To this end, the Company is promoting the
adoption of harmonized personnel systems and management strategies
around the world. In January 2018, DIC and DIC Graphics unified
TXDOL¿FDWLRQVWDQGDUGVIRUWKHLUDSSUR[LPDWHO\PDQDJHPHQWOHYHO²
i.e., manager and above—employees, replacing traditional ability-based
standards with role-based standards. As a consequence, consistent dutyand role-based standards are now used for the majority of such employees
LQ-DSDQWKH$PHULFDVDQG(XURSHWKH35&DQGWKH$VLD±3DFL¿FUHJLRQIn contrast, with a few exceptions that manage Group human resources,
human resources systems have not been integrated. Addressing thisissue—which DIC sees as critical to the achievement of global humanresources management—will require considerable effort going forward.
With the growth of ESG investment, companies are also increasingly
expected to provide accurate disclosure regarding human capital, as a key
FRPSRQHQWRIWKHQRQ¿QDQFLDOLQIRUPDWLRQLQYHVWRUVGHPDQG7KLVIXUWKHU
underscores the importance of centralizing the management of humanresources information within the Group. Looking ahead, DIC will continue
formulating and disseminating related Group KPIs, as well as working toachieve the goals it has set.
❺ Group Human Resources GovernanceWith the objective of further fortifying its management foundation overthe medium to long term and improving management transparency, the
DIC Group is reinforcing its human resources governance as it pertains
to individuals in principal positions, including the CEOs of regional
headquarters, Group company presidents and heads of regional functional
departments. In particular, the committee responsible for evaluating theperformance of and determining remuneration for individuals in principal
SRVLWLRQVLQWKH$PHULFDVDQG(XURSH*UHDWHU&KLQDDQGWKH$VLD±3DFL¿Fregion meet annually. Management members from corporate headquarters
participate in evaluations. Remuneration is reviewed annually after
YHUL¿FDWLRQRISUHYDLOLQJPDUNHWUDWHV
,QDGGLWLRQEHJLQQLQJLQ¿VFDO\HDUWKH',&*URXSLQWURGXFHG*URXS
succession guidelines in Greater China and the Asia–Pacific region.
Succession plans for individuals in principal positions are formulated andimplemented by DIC in collaboration with regional headquarters and Group
companies to ensure the appropriate organizational regeneration.

Percentage of employees participating in one-on-one meetings (as of September 30, 2023): 60%
3HUFHQWDJHRISDUWLFLSDWLQJHPSOR\HHVVDWLVÀHGZLWKRQHRQRQHPHHWLQJVDIC Report 2024

105

Human Resources Management

4. DIC’s Approach to Diversity❶ Advance Efforts to Realize DEI&B
Viewing diversity, equity, inclusion and belonging (DEI&B) as intertwined
concepts, DIC is committed to creating workplaces that respect theindividuality of each and every employee (diversity), providing equal
opportunities and prospects to all employees demonstrating enthusiasm(equity) and enabling all employees to exercise their capabilities and play
an active role (inclusion). The Company believes that achieving thesethree goals will help employees feel a sense of being accepted and valued(belonging).

What Is “Equity”?

Belonging
Belonging centers around an employee feeling a strongDI¿QLW\WRWKHFRPSDQ\DQGDZLOOLQJQHVVWRFRQWULEXWHWR
its growth.

“Equity” and “equality” are not synonyms. Equality refers to the idea that all people
should be treated the same irrespective of any individual differences. Equity➡

recognizes that people have differences that must be considered to ensure they havefair access to opportunities.

Diversity
A diverse company is one that employs a broad
spectrum of individuals without discrimination basedon characteristics such as gender, national origin,disability status, age, values or beliefs.

EQUALITY

EQUITY➡

The DIC Group believes firmly that the added value created by diverse
human resources amplifies social value and that this, in turn, leads tolong-term improvements in its corporate value. The diverse individuals
comprising the Group’s labor force come from various backgrounds andbring with them a wide range of individual capabilities and skills. It is these“differences” that will drive innovation going forward, enabling the DIC
Group to live up to its vision: “We improve the human condition by safely
delivering color and comfort for sustainable prosperity—Color & Comfort.”

Inclusion&

A company is inclusive if each employee’s
experience, abilities and beliefs are recognized andrespected, encouraging empathy and teamwork.

EquityA company that is equitable ensures that all employees aretreated fairly and have the same access to opportunities byaddressing inequalities and imbalances.

career opportunities for women, including pay differences for male andfemale employees. The Company has set the key performance indicators(KPIs) shown in the table below. Diversity initiatives are progressing
steadily, evidenced by the fact that some targets have already beenachieved. Seeking to disclose information on its diversity initiatives, in earlyfiscal year 2024 DIC established a public-facing website, the content of
which includes a message from the president and CEO.
The DIC Group continues to communicate the importance and necessityof inclusion, as well as to promote understanding of such concepts as
psychological safety and unconscious bias, which is essential to embracing
diversity, and to create a corporate culture that supports well-being byinspiring job satisfaction and a sense of purpose.

In Japan, DIC has established quantitative targets not only for the diversityof its executives and employees but also for key aspects of work–lifebalance such as childcare leave for male employees. The Company isalso exploring the feasibility of disclosing information on efforts to advance
Diversity KPIs
DIC
1

Achievements

Percentage of directors and Audit & Supervisory Board members accounted for by women and/or foreign nationals

2

3HUFHQWDJHRIH[HFXWLYHRI¿FHUVDFFRXQWHGIRUE\ZRPHQDQGRUIRUHLJQQDWLRQDOV

3

15.4%
January2024

Targets➡

20.0%
January
2026

19.0%

➡

Percentage of management positions occupied by women

8.1%

➡

8.0%

4

Percentage of new employees accounted for by foreign nationals

5.0%

➡

5.0%

5

Percentage of new recruits accounted for by women

32.2%

➡

Maintain at 30%

6Percentage of mid-career hires accounted for by women

19.6%

➡

7

Percentage of male employees using the Childcare Leave Program

8

Percentage of employees using the Leave to Assist with Parenting Program

9

Percentage of total labor force accounted for by individuals with disabilities

Fiscal
year
2023

20.0%

30.0%
Fiscalyear 2025

33.6%

➡

79.0%

➡

90.0%

2.4%

➡

In excess of the legally
mandated level

30.0%

Gender pay gap (pay for female employees as a percentage of that for male employees)
Regular employees (indefinite-term, full-time)
10

76.4%

Non-regular employees (part-time, fixed-term)

52.4%

All employees

67.1%

DIC Report 2024

106➡

Figures are only available for¿VFDO\HDU.3,VZLOOEH
set hereafter.

Human Resources Management

Diversity Across the DIC Group

Kuniko Torayama([HFXWLYH2I¿FHUHead of ESG Unit,
In Charge of Diversity,
DIC Corporation

The DIC Group is a global organization that as of December 31, 2023, consisted of 185 companies in 62 countries
and territories and had a global labor force of 22,255, of which 16,198, or 73%, were in other countries andterritories. Given its global presence, diversity within the Group has come to exist across multiple variables besides
gender, including cultural background, race, religion and ideology. These differences can become issues if simply
left as such. Through various diversity initiatives, we are striving to transform these differences into strengths,
enabling us to realize an organization that empowers all employees to reach their full potential while working
together as colleagues. Because the challenges faced vary depending on location, we continue to prioritize thosethat we feel are most pressing in each country and territory. The global diversity team meets regularly to exchange
ideas, and to share both best practices and failures, with the aim of improving initiatives Groupwide and buildinga “One DIC” approach. I think that we are making progress on this important front, and I strongly believe that ourefforts will help the Group realize true diversity, equity and inclusion and work environments where everyone feels
a sense of belonging.

$VLD²3DFLÀF5HJLRQ

Clifton Tang
Regional Human
Resource Director,',&$VLD3DFL¿F3WH/WG

The DIC Group in the Asia–Pacific region comprises 21 companies spanning 12 countries and territories.
Operating in such a highly diverse cultural environment and with of 25 different nationalities, the challenges
can be overwhelming. With our commitment to the “One DIC” approach, we have launched various successful
initiatives that have expanded our diversity outreach, as a result of which 26% of management positions are now¿OOHGE\IHPDOHHPSOR\HHV:HKDYHGHHSHQHGRXUKHDOWKSURJUDPVE\FRQGXFWLQJPHQWDOZHOOEHLQJLQLWLDWLYHV
for our more than 160 regional managers, as well as a “4 Design Thinking” workshop, while continuing to extend
the reach of such efforts to employees at different levels. In addition, we have introduced a regional personnel
system and strategically linked it with corporate headquarters in Japan, thereby widening access to internal
communications, as well as an e-evaluation system to strengthen communication between employees and
PDQDJHPHQWDQGSURPRWHWKHXVHRIÀH[LEOHZRUNLQJVFKHPHVDQGPRELOHGHVNLQJZKHUHYHUSRVVLEOHWRDGGUHVVchanging social norms and diversity in work styles. We will continue to drive DEI&B to enhance teamwork,bonding, production and innovation. We aim to drive related initiatives from a holistic perspective, to better meetthe needs of individual employees while eliminating unconscious bias against the different variables of diversity.

Greater China

Genni Zhou
Corporate HR Director,
DIC (China) Co., Ltd.

Greater China is home to 24 DIC Group companies. In the PRC, dual-income households are common and there
are many women in managerial positions, meaning there are few discernable differences in the gender breakdown
at the management level. Our principal current challenge revolves round a shortage of younger people, the resultof an aging population. To address this challenge, we focus on recruiting efforts and retaining younger talent.
To acquire top talent, we have established a recruitment page on our website targeting young professionals.
Additionally, in collaboration with a college we launched the “DIC Class,” aimed at approximately 20 selected¿UVW\HDUXQGHUJUDGXDWHV',&VWDIIPHPEHUVVHUYHDVLQVWUXFWRUVIRUWKLVSURJUDPSURYLGLQJLQIRUPDWLRQRQ',&
products and our corporate culture, as well as know-how related to color. In 2023, 11 new graduates joined DIC
Graphics (Dongguan) Ltd. and eight joined DIC Synthetic Resins (Zhongshan) Co., Ltd., all of whom are actively
contributing in key positions. Moving forward, we will continue these initiatives to ensure our ability to attract
employees of various generations.

DIC Report 2024

107

Human Resources Management

The Americas, Europe, the Middle East and Africa
With a global workforce exceeding 10,000 employees across 45 countries and territories, primarily in the Americas, Europe,
the Middle East and Africa, Sun Chemical is dedicated to cultivating an inclusive culture that prioritizes both customer value
and the satisfaction and engagement of our employees. To reinforce this commitment, we integrate DEI&B into every aspectof the employee experience, as well as into our human resources process, from recruitment and onboarding through to careerdevelopment and performance evaluation.
We have positioned the fostering of leaders and effective onboarding of new hires as the fundamental goals of our diversity
strategy. We are investing in leadership development initiatives to nurture leaders with awareness, empathy and strong
communication skills. By equipping employees with the necessary tools and skills, we aim to foster an environment where
diverse perspectives are not only valued but also celebrated, ensuring that every individual feels respected and heard.

Jennifer Dewey
Director, Global TalentManagement
Sun Chemical Corporation

As our workforce evolves and new talent joins our team, our main concern is to seamlessly integrate new people into the Sun&KHPLFDOFXOWXUH:HSODFHVLJQL¿FDQWHPSKDVLVRQZHOFRPLQJDQGRQERDUGLQJRXUQHZHVWHPSOR\HHVZLWKFDUHUHFRJQL]LQJ
that fostering a sense of belonging and facilitating smooth integration is essential. Through these efforts, we will continue toeffectively unlock value for our business and establish a foundation for sustained success.

Employees by Region of Origin

2,679

1,404

Breakdown of Labor Force by Gender

3,535

Asia–PacificNorth America

2,186

490

Central & South America

1,165

239

Japan

4,292

1,101

Europe/Middle East/Africa

4,545

1,145

3

PRC

Employees by
Region of Origin

Europe/Middle East/Africa

1,835

Japan
Central & South America

5,393

1

North America

5,691

PRC

1,363

Asia–Pacific

Employees in Management Positions and Percentage ofManagement Positions Occupied by Women by Region

2,879
0%

10%

20%

Male

Total number of employees in management
positions (global)

3,106 (male: 2,641, female: 464)

Percentage of management positions
occupied by women (global)

14.9％

472

30%

40%

656
50%

Female

60%

70%

80%

90%

100%

Other

Number of persons
1,400

Number of male employees in management positions

1,206
1,200

Number of female employees in management positions

1,127

Total number of employees in management positions

1,000

800

610
600

491
423

400

316
238

200

107

60

381

323

298
119

79

188

146
42

57

0

Asia–Pacific

PRC

Europe/Middle East/Africa

Japan

Central & South America

North America

25.3%

20.1%

19.5%

6.6%

22.3%

15.0%

Percentage ofmanagement positions
occupied by women

DIC Report 2024

108

Notes:
1. As of December 31, 2023,
the number of employees inmanagement positions identifying
as “other” was one.
2. Figures are as of December 31,
2023. Because data for certain
DIC Group companies includedin the annual securities report is
QRWLQFOXGHGKHUHWKHVH¿JXUHVdiffer from those published in the
securities report.

Human Resources Management❷ Hiring of Foreign Nationals

worked actively to support the careers of non-Japanese employees by creating
working environments that enable individuals to exercise their capabilities andplay an active role. To support these employees’ careers, the Company promotes
infrastructural and system improvements, including establishing a consulting deskand dedicated website, translating key in-house materials into English and, in'HFHPEHULQWURGXFLQJELDQQXDOQHWZRUNLQJFRQIHUHQFHV,Q¿VFDO\HDU
DIC also introduced cross-cultural training sessions for non-Japanese employees
and the departments to which they are assigned.

With the objective of securing talented individuals with advanced specializedcompetencies, global perspectives and language proficiency, DIC actively
promotes the hiring of international students completing undergraduate or graduate
studies at Japanese universities, as well as Japanese and foreign nationals whoare completing undergraduate studies at overseas universities or have extensive
specialized experience and expertise. At present, 62 foreign nationals are
HPSOR\HGLQYDULRXVFDSDFLWLHVDWWKH&RPSDQ\6LQFH¿VFDO\HDU',&KDV
Nationalities of Non-Japanese Employees(Full-Time, Part-Time and Temporary)
1
1
2
2

1
1
1
3
3 Breakdown by
Nationality 29
4
4
10

VOICE

PRC
ROK
Malaysia
Thailand
United StatesIndonesia
Mongolia
FranceTaiwanIndia
Spain
Germany
New Zealand

Number of Foreign Nationals Currently
Employed at DIC
Sales
positionsTechnical
positions

Department/
divisionadministration

4

37

6

Postedoverseas

11

Production

4

Total

62

I look forward to helping drive innovation at DIC by capitalizing on diversity and inclusion,OHDUQHGDERXW',&¶VDFWLYHHIIRUWVWRSURPRWHGLYHUVLW\DQGLQFOXVLRQDIWHUMRLQLQJWKH&RPSDQ\LQ¿VFDO\HDU7KLVUHLQIRUFHG
my understanding of DIC as a global entity that seeks to grow together with its employees by leveraging the individual attributes andcapabilities that come with a labor force comprising employees with widely ranging backgrounds. I believe that DIC’s real strengthlies in its corporate culture, which encourages the recognition of different ways of thinking, opinions and values to ensure the mutual
understanding and collaboration crucial to achieving common goals.
At the Central Research Laboratories, where I am based, our team comprises researchers with different varying areas of specializationand professional experiences and who are of differing ages and nationalities. Diversity and inclusion, which emphasizes valuing diverse
ideas and opinions, rather than rejecting them, is driving new insights and innovations in R&D, as well as in other areas. I look forward to
helping on the innovation front by capitalizing on D&I and communicating openly with as many people as possible.
FEM Project, Advanced Material Research Center (Central Research Laboratories), R&D Management Unit, DIC Corporation

TOPIC

Chienju Lee

Networking Conference Held for Non-Japanese Employees

The sixth networking conference for DIC Group employees in Japan who are foreign
nationals was held in July 2023 at DIC’s corporate headquarters in Tokyo. This
FRQIHUHQFHZKLFKZDVODXQFKHGLQ¿VFDO\HDULVKHOGWZLFHDQQXDOO\WRIRVWHUWLHVamong non-Japanese employees.

employees to exchange views. During the conference, participants were asked their
RSLQLRQVUHJDUGLQJWKHSURVDQGFRQVRIKROGLQJVXFKPHHWLQJV%DVHGRQWKH¿QGLQJVRIWKHVL[WKFRQIHUHQFHLQWKHVHFRQGKDOIRI¿VFDO\HDUQRQ-DSDQHVHHPSOR\HH
volunteers were paired with secretariat members to conduct two-on-two meetings with
employees who expressed a desire for such an interview. Concerns raised during
these two-on-two meetings will be used to determine a theme for the next networking
FRQIHUHQFHDQGGHHSHQWKHOHYHORIGLVFXVVLRQWR¿QGYLDEOHVROXWLRQV$SSUR[LPDWHO\QHZIRUHLJQQDWLRQDOVMRLQHG',&*URXSFRPSDQLHVLQ-DSDQLQ¿VFDO\HDU',&ZLOO
continue to actively foster closer communications with non-Japanese employees to create
work environments where all feel able to fully leverage their strengths and capabilities.

Beginning from the sixth conference, several non-Japanese employees have joined
the secretariat and are playing a role from the planning stage, including determining
the conference theme. A variety of ideas for the theme of the sixth conference weresuggested, but given the underlying objective of better understanding the individual
concerns of non-Japanese employees it was decided that the theme this time should be
the creation of a forum for groupings of two secretariat members and two non-Japanese❸ Expansion of Career Opportunities for Women

provide training designed to encourage the drive and determination of
female employees and broaden the range of jobs open to women.

In line with its commitment to promoting diversity, DIC implements
a variety of initiatives to expand career opportunities for female
employees. Having established a full-scale program to support
employees in balancing the demands of a career and childcare in 2007,
VLQFH¿VFDO\HDUWKH&RPSDQ\KDVSXVKHGDKHDGZLWKPHDVXUHVto transform employee mindsets and its corporate culture, as well as to,Q¿VFDO\HDUWKH&RPSDQ\EHJDQGLVSDWFKLQJIHPDOHHPSOR\HHV
to take part in training offered by a third-party provider with the aim ofencouraging greater drive and determination, as well as established
an in-house mentoring program for women in management with in-

DIC Report 2024

109

Human Resources Management

house executives serving as mentors to help create pipelines to higherranking female colleagues. The mentoring program has since been
expanded to enable women in management who were previously
mentored to mentor female employees who are about to be promoted
to management-level positions. When women in management-level
positions who have been mentored then become mentors themselves,
it can further expand their horizons and frame of reference, as wellas enhance their approach to resolving issues. It can also provide
an opportunity for female employees to build networks beyond theconfines of their particular department. Looking ahead, DIC willcontinue to take various steps to assist female employees to envisage
their own ideal work styles and professional growth to help ensure they
HQMR\DFWLYHDQGIXO¿OOLQJFDUHHUV

rooms for women, and will continue taking similar steps with the goal offurther broadening the scope of positions available to female employees.
Number of Female Employees at DIC Sites in Japan2008
4 at 1 site

(1) Broadening the Scope of Positions Available to Female Employees
Since first assigning four female employees to line shift jobs at the
Chiba Plant in 2008, DIC has gradually increased the number of female
employees in production and utility control groups across Japan. At
SUHVHQWWKHUHDUHIHPDOHHPSOR\HHVLQVXFKSRVLWLRQVDW¿YHVLWHVLQ
Japan. The number of women serving as managers and team leaders
has also risen. The Company has already made changes to improve site
working environments, including establishing break rooms and locker

2018
8 at 2 sites

2023
24 at 5 sites

Site

Production Group

Utility Control Group

Chiba Plant

8

2

Hokuriku Plant

0

2

Sakai Plant

40

Saitama Plant

6

0

Yokkaichi Plant

2

0

Total

20

4

(2) Initiatives since Fiscal Year 2016 to Expand Career Opportunities for Women
6LQFH¿VFDO\HDU',&KDVSURPRWHGDZLGHUDQJHRILQLWLDWLYHVWRH[SDQGFDUHHURSSRUWXQLWLHVIRUZRPHQZLWKWKHDLPRIEHFRPLQJDQRUJDQL]DWLRQLQZKLFKZRPHQFDQSOD\DQDFWLYHUROH:LWKWKHODXQFKRI:65LQ¿VFDO\HDUZKLFKLVKHDGHGE\WKHSUHVLGHQWDQG&(2WKH&RPSDQ\LV
promoting related diversity initiatives that will help increase corporate value.
Ɣ Messages from the president

Transform corporate culture and mindset

Ɣ Identical uniforms for male and female employeesƔ Training on unconscious bias
Ɣ Third-party leadership development program

Encourage the drive and determination of
female employees

Ɣ Joint leadership development program with companies in other sectors
Ɣ Mentoring program with in-house executives as mentors
Ɣ Mentoring program with female employees in management positions as mentors

Broaden the scope of positions available tofemale employeesƔ Assignment of female employees to production, as well as to sales and other positions
involving work outside the company
Ɣ Inclusion of female employees in the regular system of transfers, reassignments and job rotations
Ɣ Expansion of systems designed to help female employees balance childcare and their careersƔ Training for employees returning after taking childcare leave

Establish systems to help female employees
balance childcare and their careersƔ Training (e-learning) for male employees on taking childcare leaveƔ Informal discussions for male employees who have taken and those who wish to takechildcare leaveƔ Introduction of a system allowing management-level employees to limit the locations to which
they will accept transfers

Create workplaces conducive to job satisfaction

Ɣ ([SDQVLRQRIÀH[WLPHV\VWHP
Ɣ Launch of telework and hybrid working styles

DIC Report 2024

110

Human Resources Management❹ Efforts to Advance the Employment of Individuals with Disabilities(3) Selection for Inclusion in the Next Nadeshiko: Companies
Supporting Dual-Career and Co-Parenting,Q¿VFDO\HDU',&ZDVVHOHFWHGDVDFRPSDQ\ZLWKDQRXWVWDQGLQJ
performance in terms of supporting both male and female employees tostrike a balance between empowerment in the workplace and child-rearing
under “Next Nadeshiko: Companies Supporting Dual-career Co-parenting,”
a new program inaugurated in fiscal year 2023 by Japan’s Ministry of
Economy, Trade and Industry. DIC was one of 16 companies chosen in the¿UVW\HDURIWKLVSURJUDPDFURVVDOOLQGXVWULHVDQGRQHRIWZRLQWKH³5DZ
Materials & Chemicals” industry category.

In Japan, DIC’s General Affairs and HR Department and specialpurpose subsidiary* DIC Estate Co., Ltd., spearhead efforts to create
workplaces that maximize the individual attributes and talents of its
diverse human resources.
In addition to actively promoting the hiring of individuals withdisabilities, DIC Estate fosters the development of human resources by
establishing systems designed to expand the range of jobs available
and facilitate individual growth, thereby realizing work environmentsthat support employees with disabilities and empower them to realize
their potential. DIC Estate also works with other DIC Group sites andcompanies in Japan to strengthen recruitment capabilities and develop
systems that bolster retention, thereby enhancing the employment
experience for employees with disabilities across the Group.

In recent years, the average length of service for female employees of
DIC in Japan has exceeded that of male employees. Close to 100% of
female employees return to work after maternity leave. Unlike in the past,
continuing to work after having children has become the norm for womenin Japan. Accordingly, the Company recognizes that the fact such life
events as childbirth and childcare are treated as career interruptions issomething it must help address, and it works to create an environment inwhich female employees can resume their careers and male employees
can participate in the raising of their children and to foster a corporate
culture that encourages both female and male employees to play activeroles in the family and in the workplace.

* A special-purpose subsidiary is a company that prioritizes hiring of individuals with disabilities and isauthorized by the Minister of Health, Labour and Welfare via Japan’s Hello Work public employment
RI¿FH',&(VWDWHZDVDFFUHGLWHGDVDVSHFLDOSXUSRVHVXEVLGLDU\RQ-DQXDU\

Percentage of DIC’s Labor Force Accounted for by Individuals with Disabilities
3.00%

2.80%
2.80%

2.63%

2.61%
2.52%

2.60%

2.36%
2.40%

2.20%

2.01%

2.04%
2.13%

2.00%

2016

2017

2018

2019

2020

2021

2022

2023

Percentage of DIC’s Labor Force
Legally mandated percentage

VOICE
I joined DIC Estate’s Business Support Department in 2022 after graduating from Tokyo Metropolitan Katsushika School for the Deaf. At¿UVW,KDGQRLGHDDERXWWKHFROOHFWLRQDQGGHOLYHU\VHUYLFH,ZDVDVVLJQHGWRSHUIRUPDQGZDVIUHTXHQWO\FRQIXVHG%HFDXVH,DPGHDIFRPPXQLFDWLQJZLWKWKRVHDURXQGPHZDVGLI¿FXOWEXW,FRQWLQXHGWRSUHVVDKHDGXVLQJJHVWXUHVDQGZULWWHQQRWHVWRFRPPXQLFDWHZLWKmy seniors and fellow employees and I’m now able to instruct my juniors on collection and delivery duties. I look forward to continuing towork hard so that individuals with similar disabilities are given the opportunity to join our company.
DIC Estate Co., Ltd.

❶ダイバーシティロードマップ

DIC Report 2024

111

Shinji Maruo

Human Resources Management

TOPICS

Holding Study Session on Employing Individuals with Disabilities

On November 2, 2023, DIC Estate held a study session on employing individuals with disabilities
at the request of Kanagawa Prefecture’s Heartful Leader Association.* Approximately 30
representatives of companies that are working to employ people with disabilities, employment
assistance organizations and special needs schools, as well as 11 people from the DIC Group,participated in the session and discussed the status of efforts by DIC and DIC Estate to hire
individuals with disabilities, toured both companies’ premises and held a Group discussion.
With the goal of continuing to promote the hiring of individuals with disabilities, the DIC Groupwill continue to regularly hold company tours and study sessions to which it invites people fromother companies responsible for hiring individuals with disabilities, as well as from employment
assistance organizations, special needs schools and other groups.
* A volunteer association of companies and employment assistance organizations concerned with the employment of
individuals with disabilities that is active primarily in Kanagawa Prefecture and Tokyo.

sustainable growth for the DIC Group and the training ofsubsequent generations.

❺ Reemployment after Retirement

DIC has deployed a system that facilitates the reemployment
until age 65 of individuals reaching retirement age (60) andwishing to remain with the organization. With available options
including full-time work, part-time work and work sharing, thissystem enables reemployed individuals to maximize theirexperience, and to make full use of their accumulated technicalabilities and specialized expertise, thereby contributing to',&DOVRRIIHUVFODVVHVIRUHPSOR\HHVLQWKH¿QDO\HDUEHIRUH
retirement that helps them prepare for life after they havefinished their careers. These classes provide assistance withretirement planning and education regarding the national
pension system, as well as offer retirement lifestyle simulations.

Number of Reemployed Individuals)LVFDO\HDU Fiscal year 2018 Fiscal year 2019 Fiscal year 2020 Fiscal year 2021 Fiscal year 2022 Fiscal year 2023

Number of retirees (A)

69

89

96

92

103

150

122

Individuals seeking
reemployment

55

74

81

80

87

132

105

Number of individuals
reemployed (B)

55

70

77

79

84

128

102

Reemployment rate (B) / (A)

79.7％

78.7％

80.2％

85.9％

81.6％

85.3％

83.6％

DIC Report 2024

112

Human Resources Management

5. Respect for Human Rights❶ The DIC Group’s Human Rights Policy
The DIC Group actively supports global codes governing human rights and in 2018 formulated the DIC Group Human Rights Policy. In light of the increasing
LPSRUWDQFHRIUHVSHFWLQJKXPDQULJKWVDURXQGWKHZRUOGLQ¿VFDO\HDUWKH*URXSDQQRXQFHGDUHYLVHGYHUVLRQRIWKLVSROLF\LQOLQHZLWKZKLFKLWLV
promoting related initiatives.
The DIC Group Human Rights Policy
Respect for Human Rights
The DIC Group is committed to respecting the human rights of all stakeholders in all aspects of its business activities. In 2018, the Group
adopted a human rights policy based on global human rights codes. The Group strives to protect and promote human rights through its
business activities.
Basic Principles on Human Rights
The DIC Group supports and respects the United Nations International Bill of Human Rights, the International Labour Organization (ILO)’s
Declaration on Fundamental Principles and Rights at Work, and the United Nations Guiding Principles on Business and Human Rights. In
addition, we respect the Ten Principles of the United Nations Global Compact. The DIC Group Code of Business Conduct, which outlines
standards that DIC Group employees are expected to follow, contains provisions prohibiting human rights violations and requiring respect for
GLYHUVLW\7KHVHUHÀHFWWKHSKLORVRSKLHVWKDWIRUPWKHIRXQGDWLRQRIWKH',&*URXS¶VFRUSRUDWHDFWLYLWLHV$OO',&*URXSHPSOR\HHVPXVWGLVSOD\understanding of the DIC Group Code of Business Conduct and provide written assurances to abide by it. The DIC Group promotes awarenessamong Group executives and employees, and works to enhance its inspection and monitoring structure, to reinforce respect for human rights
and to prevent violations of human rights.
1. Global Labor Standards
7KLVSROLF\ZKLFKUHÀHFWVJOREDOKXPDQULJKWVFRGHVDUWLFXODWHVWKH',&*URXS¶VIXQGDPHQWDOVWDQFHRQUHVSHFWIRUKXPDQULJKWVChild Labor and Forced Labor
The DIC Group strictly prohibits the use of child labor and forced labor in its operations and supply chain. The Group adheres to applicablelaws and regulations regarding the minimum working age and fair compensation, and will not engage in any form of slavery or forced labor.
Freedom of Association and Collective Bargaining
The DIC Group respects employees’ rights to associate freely, join labor unions and participate in collective bargaining, while adhering to both
local laws and global standards.
Work Conditions
The DIC Group values the well-being and safety of every employee, recognizing that each person is immeasurably valuable. The Group’s
dedication extends beyond numbers and statistics; it centers on people and their families. The Group pledges to maintain safe working
conditions, offer comprehensive training and instill a profound culture of safety to ensure that every one of its employees returns home fromwork safely.
)DLU&RPSHQVDWLRQDQG%HQHÀWV
The DIC Group is dedicated to providing fair compensation, comprehensive benefits and opportunities for professional growth to all
HPSOR\HHV7KH*URXS¶VFRPSHQVDWLRQDQGEHQH¿WVSDFNDJHVDGKHUHWRUHOHYDQWODZVDQGLQGXVWU\VWDQGDUGV
Anti-Harassment
In alignment with its policies and the legal frameworks of many countries, the DIC Group unequivocally prohibits any form of discrimination,harassment, hazing, intimidation or retaliation within the workplace or at any business-related function, event or meeting. The Group’scommitment to human rights is unwavering, and it is dedicated to fostering an inclusive and respectful environment for all.
Equal Opportunity
The DIC Group is committed to providing equal opportunities to all individuals throughout the entire employment process, including recruiting,hiring, development, promotion and compensation, and in all terms and conditions of employment. This commitment extends without regard
to factors such as race, religion, sex, skin color, age, marital status, gender, gender identity, sexual orientation, physical or mental disability (orlack thereof), veteran status, national origin or any other characteristic protected by applicable laws and regulations in each jurisdiction.
Diversity, Equity, Inclusion and Belonging (DEI&B) Policy
The DIC Group is dedicated to fostering a diverse culture (“diversity”) where all decisions are made equitably (“equity”) and every individualis treated with dignity (“inclusion”). The Group’s commitment to these principles will lead to a diverse workforce, which inherently contributes
YDOXHWRLWVEXVLQHVVWKURXJKWKHVDWLVIDFWLRQDQGHQJDJHPHQWRILWVSHRSOH ³EHORQJLQJ´ 7KH*URXS¿UPO\EHOLHYHVLQXSKROGLQJWKHVHYDOXHV
as fundamental to its corporate ethos and mission.

DIC Report 2024

113

Human Resources Management

2. Scope of Application
This policy applies to all executives and employees of the DIC Group. The Group shall also encourage its business partners andsuppliers to adhere to this policy and will cooperate with them to advance respect for human rights.
3. Responsibility to Respect Human Rights
The DIC Group strives to be an organization that does not tolerate any form of discrimination, including discrimination based on race, religion, sex,
skin color, age, marital status, gender, gender identity, sexual orientation, physical or mental disability (or lack thereof), veteran status, national
origin or any other characteristic protected by applicable laws and regulations in each jurisdiction. All members of the DIC Group will work together
WRIXO¿OOWKH*URXS¶VFRUSRUDWHVRFLDOUHVSRQVLELOLW\JRDOVZKLOHHQDEOLQJHYHU\LQGLYLGXDOLQWKH*URXSWRH[HUFLVHWKHLUDELOLWLHVWRWKHIXOOHVW
7KH',&*URXSVKDOOVWULYHWRIXO¿OOLWVUHVSRQVLELOLW\WRUHVSHFWKXPDQULJKWVE\HQVXULQJWKDWLWVEXVLQHVVDFWLYLWLHVGRQRWUHVXOWLQYLRODWLRQVRIWKH
human rights of stakeholders, as well as by preventing human rights abuses in the course of its business. In the event that its business partners
or suppliers cause adverse human rights impacts through their businesses, products or services, the DIC Group—while not directly intervening—
VKDOOXVHLWVLQÀXHQFHWRHQFRXUDJHWKHUHVSRQVLEOHSDUWLHVWRFHDVHRUDOWHUWKHSUDFWLFHVUHVSRQVLEOHIRUVXFKDGYHUVHLPSDFWV
4. Human Rights Due Diligence*
7RIXO¿OOLWVUHVSRQVLELOLWLHVZLWKUHJDUGWRUHVSHFWIRUKXPDQULJKWVWKH',&*URXSKDVFUHDWHGDKXPDQULJKWVGXHGLOLJHQFHV\VWHP
which continues to evolve in an ongoing basis to identify, evaluate and address negative impacts of human rights risks.
The DIC Group will identify and evaluate negative impacts on human rights and apply the results to its supplier management decisions.
5. Corrective/Remedial Actions
Should the DIC Group cause adverse human rights impacts or should it become evident that it has been complicit in causing suchimpacts, the Group shall take appropriate corrective and/or remedial actions in response.
6. Compliance with Applicable Laws
The DIC Group will comply with the laws and regulations of all countries and territories in which it operates. Where there is any
conflict between a country’s laws and internationally recognized human rights standards, the Group will seek ways to respect
internationally recognized human rights principles to the maximum extent possible.
'LVFORVXUHDQG(GXFDWLRQ7UDLQLQJThe DIC Group shall periodically report publicly on the progress of initiatives implemented in line with this policy. To ensure theeffectiveness of this policy, the Group shall also provide appropriate training to its executives and employees.
8. Dialogue and Discussion
The DIC Group shall engage with stakeholders regarding initiatives implemented in line with this policy by creating opportunities for
dialogue and promoting discussion in good faith.
* Human rights due diligence is an ongoing risk management process that a company needs to follow in order to identify, prevent, mitigate, account for and disclose how it addresses its adverse human right impacts.

❷ The DIC Group’s Human Rights Due Diligence System
7RIXO¿OOLWVUHVSRQVLELOLW\WRUHVSHFWKXPDQULJKWVWKH',&*URXSFRQWLQXHVWRHPSOR\DVZHOODVWRPDNHV\VWHPDWLFLPSURYHPHQWVLQLWVKXPDQULJKWVGXH
diligence system.

1）Commit

2）Identify andevaluate impacts3）Implement corrective/remedial
measures, provide training andgauge effectiveness

Demonstrate the Group’s
human rights policy and views

Identify and evaluate human rights risks in theGroup’s business and across its supply chain

Implement measures andgauge effectiveness・Formulate a human rights policy.
・Introduce section on human rights into the
DIC Group Sustainable Procurement Guidelines.
・Reinforce awareness of the policy.

・Encourage voluntary human rights inspections ・Implement corrective/remedial measures.
at Group companies.
・Plan and provide human rights training.
・Identify and evaluate the impact of human・Gauge the eﬀectiveness of measures.
rights risks.

(1) Addressing Human Rights Due Diligence Challenges in the
Area of Procurement
The DIC Group has formulated and disseminates the DIC Group
Sustainable Procurement Guidelines and compels its suppliers to respecthuman rights and to take appropriate steps to ensure acceptable work4）Disclose information

Report periodically onhuman rights initiatives
・Provide information via the DIC global website.
・Include information in the DIC Report.
・Publicize using conventional mass media.

environments. The Group also surveys the status of suppliers’ efforts
through various follow-up procedures. For more information, please see“Understanding and Encouraging Suppliers’ Sustainability Initiatives” onpage 122.

DIC Report 2024

114

Human Resources Management

assets. DIC has promoted initiatives meant to enable all employees to
DFKLHYHERWKDFWLYHDQGVDWLVI\LQJFDUHHUVDQGDIXO¿OOLQJOLIHRXWVLGHRIZRUN
in line with its belief that positive workplaces lead to higher productivity.

(2) Promoting the Responsible Procurement of Minerals
The DIC Group has formulated the Basic Approach to the Responsible
Procurement of Minerals, recognizing the high risk of human rights
violations in the procurement of these resources. In addition to the surveys
GHVFULEHGDERYHWKH*URXSDOVRVXUYH\HGVPHOWHUVDQGUH¿QHULHVXVHGIRU
minerals contained in the raw materials it procures. For more information,please see “Human Rights Due Diligence in Supply Chains” on page 123.

* An approach to employee health management that emphasizes a corporate management perspective
and the implementation of strategic measures.

(1) Enhancing Programs that Help Employees Balance theDemands of Career and Childcare
In 1986, DIC implemented a childcare leave program before such programs
were legally mandated. Since establishing a program to support employees inbalancing the demands of a career and childcare in 2007, the Company has
deployed various systems for both regular and management-level employees,
including one that enables employees to take leave to provide nursing care fora child up until the end of the child’s third year of elementary school and anotherthat allows them to limit the locations to which they will accept transfers, making
it easier for individuals who are unable to accept transfers that involve relocation
because of childbirth, childcare, nursing care or other responsibilities. In
recognition of these efforts, in 2024 DIC was recognized for its efforts to promote
work–life balance by being selected under the “Next Nadeshiko: Companies
Supporting Dual-career Co-parenting” program.

(3) Implementation of Human Rights Due Diligence at
DIC Group Companies,Q¿VFDO\HDUWKH*URXSSURPRWHGKXPDQULJKWVDZDUHQHVVDWVLWHV
belonging to the DIC Group’s 13 companies in Japan. In tandem with selfinspections for compliance with labor laws, human rights due diligence wasconducted with survey items added regarding foreign nationals, who are at
KLJKULVNRIKXPDQULJKWVYLRODWLRQVLQ-DSDQ1RLVVXHVZHUHLGHQWL¿HGDV
a result of this process. Going forward, the DIC Group will seek to raise thelevel of its human rights due diligence initiatives by advancing awareness ofhuman rights, as well as by re-examining and designating business areas
with inherent human rights risks.
(4) Establishment of Whistle-Blowing Hotlines and Corrective
Measures by the Compliance TeamThe DIC Group has created whistle-blowing hotlines for Group employees.
In fiscal year 2023, 20 reports were received regarding human rights–
related issues such as power harassment and discrimination. The
Group has also established the Ethics Hotline for reports from external
stakeholders. In fiscal year 2023, one report of power harassment wasreceived through this hotline. The Group conducts internal investigations
and responds to any incidents requiring action by taking corrective or
remedial measures in accordance with pertinent regulations. For more
information, please see “Initiatives to Promote Compliance” on page 124.

(2) Retaining Employees with Nursing Care Responsibilities
In 2016, the Japanese government revised the Child Care and Family Care
Law to make it easier for individuals to take leave or time off, as well as
LQFUHDVLQJEHQH¿WVIRUWHPSRUDU\DEVHQFHVIURPZRUNIRULQGLYLGXDOVZKR
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promote knowledge of its related leave programs, DIC has prepared theChildcare and Nursing Care Handbook, which is distributed to employees
RI*URXSFRPSDQLHVDFURVVWKHFRXQWU\',&KDVDOVRPRGL¿HGWKHUXOHVRI
these programs to make them easier to use, including making it possible tobreak up nursing care leave and to take such leave in one-hour units, andH[WHQGLQJWKHSHULRGRYHUZKLFKWKH\PD\VKRUWHQWKHLUZRUNGD\WRIXO¿OO
nursing care responsibilities, originally one year, to three years.

(5) Contact Procedures
Procedures have been established for suppliers, customers, local
communities and other stakeholders to report human rights–related issues
by telephone or via the DIC Group’s global website. The Group strives to
respond swiftly to queries and complaints received. No such complaints
ZHUHUHFHLYHGLQ¿VFDO\HDU

 &UHDWLQJ)OH[LEOHDQG(IÀFLHQW:RUN(QYLURQPHQWV
7RIDFLOLWDWHÀH[LEOHZRUNVW\OHV',&VLJQL¿FDQWO\H[SDQGHGLWVÀH[WLPHV\VWHPin April 2018 by making it applicable to all areas of operations, with certain
exceptions such as production floors. In April 2024, the Company reviewed
its core hours and shortened the minimum number of work hours per day tofacilitate greater flexibility. This, plus telework, encourages the independent
execution of duties and an enhanced capacity for self-management.

(6) Building Trust with the DIC Employee’s Union
DIC’s management and representatives of its employees’ union meet
regularly with the goal of ensuring healthy industrial relations based on
mutual trust. In addition, through labor–management councils and casual
management conferences, DIC shares management information and its
vision for the future with union representatives and encourages the frankexchange of opinions. A total of 72.6% of parent company employees
belong to the DIC Employees’ Union (99.1% of eligible employees).

(4) Introducing a Leave to Accompany Spouse Overseas Program
To ensure its ability to secure and retain talented human resources and enhance
employees’ work–life balance, in January 2019 DIC introduced a program
allowing employees to take leave to accompany spouses on overseas work
assignments. This system helps employees achieve an appropriate work–lifebalance without having to leave their jobs.

6. Work–Life Balance/Occupational Health(5) Establishing a System to Help Employees Balance Medical
Treatment and WorkIn January 2020, DIC introduced a system to support employees
undergoing medical treatment who wish to continue working. To guarantee
this system functions effectively, the Company formulated guidelines toensure employees making use of this system receive the ongoing support
necessary to balance medical treatment and work through job-related
accommodations and considerations.

❶ Work–Life Balance
DIC views a healthy work–life balance as essential to both self-realizationand sustainable corporate growth. Accordingly, from the perspective ofcorporate health management,* the Company continues to expand systems
intended to facilitate such a balance. Against a backdrop of growing global
awareness of the concept of “human capital management,” DIC respects
the diversity of its labor force and seeks to enable each individual toexercise their capabilities, recognizing its employees as important corporate

DIC Report 2024

115

Human Resources Management(6) Programs that Help Employees Balance the Demands of Work and Home
The maximum length of leave is until the child reaches the age of 2 years and 6 months, which is six months longer
than the legally mandated leave period. Male employees can also take childcare leave at the time of birth (postpartum
paternity leave) together with four weeks (28 days) of paid leave under the Leave to Assist with Parenting program during
the eight weeks following their child’s birth.

Childcare Leave ProgramOutpatient care leave: Employees can take leave for outpatient care, including regular medical examinations andhealth guidance.

Paid leave programs for pregnancy
and childcare

Special maternity protection leave: Female employees take up to 10 days of special leave during pregnancy or theyear after giving birth to protect the health of both mother and child.
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eight weeks following their child’s birth to assist with parenting.
Pediatric nursing care leave: Employees can take leave to provide nursing care for a child until the end of the child’s
third year of elementary school, which is beyond what is mandated by law. This includes XSWR¿YHGD\VRISDLGOHDYHSHU¿VFDO\HDU

Childcare While Working Program

Employees can shorten their workday by up to three hours until the end of a child’s third year of elementary school.
Employees can also stagger their working hours to accommodate childcare schedules.

Economic support system

This system enables employees on unpaid childcare leave to borrow a portion of their bonuses in advance to pay for,among others, fertility treatment or infant care facility fees.

Return to previous (or equivalent)
position

Employees returning from childcare leave must be allowed to return to their previous position or to a position
equivalent thereto.

Information sharing to promote
program participation

DIC’s views on support for work and childcare balance, as well as a guide to its various available systems and how tomake use of them, are posted on the Company’s websites and intranet.

Nursing care leave system

Employees can take such leave for up to one year, exceeding the statutory maximum of 93 days.
Employees may also break up leave into a maximum of six units.

Nursing Care While Working system

Employees not wishing to take leave while providing nursing care can shorten their workday by up to two hours for a
maximum period of three years. As of January 2018, employees may also request to be excused from doing overtime
without restriction.

Leave to accompany spouseoverseas

Employees can take leave in the form of a temporary overseas assignment to accompany a spouse who is scheduled
to be abroad for more than one year. The period of the leave must be more than one year, with a maximum length of
three years. Employees may make use of this system once during their careers.

Relocation limitation system

Management-level employees may limit the locations to which they will accept transfers that involve relocating becauseof childbirth, childcare, nursing care or other responsibilities.

System to help employees balance
medical treatment and work

Employees undergoing medical treatment who wish to keep working can access necessary support in the form of jobrelated accommodations and considerations.

Half-day and hourly annual paid
leave system

Employees may take annual paid leave in half-day units. They may also take up to five days of annual paid leavein one-hour units.

Saved paid leave system

Expiring annual paid leave can be saved for up to 30 days and used for a variety of purposes, including injury or illness,
nursing care for a family member, care for a sick child and fertility treatment.

 8VHRIWKH&KLOGFDUH/HDYHDQG/HDYHWR$VVLVWZLWKParenting Programs
Owing to the introduction of various programs to help employees
in balancing the demands of work and home and the creation of anenvironment that encourages employees to take advantage of such thereof,

Number of employees using
the Childcare Leave Program
Number of employees using
the Leave to Assist with Parenting Program

the percentage of DIC employees who return to work after making use of
the Childcare Leave Program is currently 100%. In addition, the number of
employees taking advantage of the Leave to Assist with Parenting Program
following a child’s birth is also rising.

Fiscal year


Fiscal year
2018

Fiscal year
2019

Fiscal year
2020

Fiscal year
2021

Fiscal year
2022

Fiscal year
2023

35
（0）

21
（4）

28
（4）

22
（3）

25
（4）

55
（28）

62
（40）

77

81

86

84

77

87

94

Note: Figures in parentheses are the number of male employees included in the total number of employees using the Childcare Leave Program.

DIC Report 2024

116

Human Resources Management(8) Reducing Extreme Overwork and Encouraging Employees
to Take Annual Paid Leave
DIC has deployed an electronic management system that tracks employee
working hours based on sign in/sign out data extracted from IC cards. To
prevent extreme overwork, if an employee appears likely to exceed theovertime limit (including weekends) agreed upon by labor and management,
or if their monthly overtime has exceeded 70 hours, their supervisor and
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required to submit a report outlining the employee’s work responsibilities
DQGIDFWRUVEHKLQGWKHH[FHVVLYHKRXUVDQGSUHVHQWLQJVSHFL¿FPHDVXUHVto ameliorate the situation, which is shared with the DIC Employees’ Union.
This process is designed to curb/reduce excessively long working hours. In
addition, employees are encouraged to take annual paid leave, with sites
recommending appropriate timing for leave and having employees plandates for such leave.

(9) Average Monthly Overtime Hours Worked and Annual Paid Leave Taken)LVFDO\HDU Fiscal year 2018 Fiscal year 2019 Fiscal year 2020 Fiscal year 2021 Fiscal year 2022 Fiscal year 2023
Average monthly overtime hours
worked per employee

12.2 hours

12.0 hours

10.8 hours 10.1 hours

12.3 hours

12.4 hours

11.9hours

Average annual paid leave granted

18.8 days

18.6 days

18.7 days

18.7 days

18.9 days

18.8 days

18.4days

Average annual paid leave used

12.0 days

12.5 days

13.3 days

11.8 days

12.1 days

13.4 days

13.8days

Usage rate for annual paid leave

63.8％

67.2％

70.9％

63.1％

64.0％

71.3％

75.1％

❷ Corporate Health Management(1) Corporate Health Management Initiatives
In line with its Health Management Declaration, the DIC Group works actively tosupport the physical and mental health of its employees, as well as to create awork environment conducive to job satisfaction. Looking ahead, the Group willcontinue to promote imaginative and original health management measures,
recognizing that the health of its employees is essential to the realization ofsustainable growth.

Health Management Declaration
The DIC Group recognizes that the achievement of its mission tocreate enhanced value and utilize innovation to introduce socially
responsible and sustainable products depends on the creationof working environments conducive to the physical and mental
health of the employees responsible for the implementation ofrelated initiatives.
The DIC Group declares that it will work as one to maintain or
improve the health of its employees, as well as to create a work
environment conducive to job satisfaction.

(2) Framework for Promoting Health Management
The DIC Group in Japan promotes health management through a frameworkthat is based on collaboration with the DIC Health Insurance Society and under
the supervision of the president and CEO. Going forward, the Group will stepup efforts to work with related organizations and promote effective initiatives
across the DIC Group.

Framework

Representative Director, President and CEO
DIC Corporation
Takashi Ikeda

Director, Health management
Representative Director, President and CEO

Manager, Health management
Director in charge, General Affairs and HR Dept.

Supervisor, Health management promotion

Healthcare professionals
Industrial physicians
Infirmary and other medical staff

Health management promotion team

General manager, General Affairs and HR Dept.
ReportJudgment

ProposalApproval

Cooperation

Site general affairs departments
Cooperation

DIC Employees’ Union

Health management promotion organization
Internal and external counselors

General Affairs and HR Dept.

Site health and safety committees
DIC welfare fundCollaboration

DIC Health Insurance Society

DIC Report 2024

117

Human Resources Management(3) Health Management Strategy Map

Mental health

Physical health

Health investments
Indicators for healthinvestments/initiatives

Indicators for employee
awareness and behavior

Increased participationin annual physicals

Participation in annual physicals(FY2022 rate: 100%)

Understanding of the need forand participation in annual physicals

Follow-up after
annual physicals

Participation in physician-led
interview/acceptance of guidance fromnurses in the event of an adverse finding(FY2022 rate: 100%)

Increase in
examination/re-examination rate

Physician-led interviews
with extremely
overworked employees

Follow-up for employees whosemonthly overtime exceeds 70 hours(FY2022 rate: 100%)

Use of checklist, recognition ofhealth risks through consultation withphysicians, healthier eating habits andreduced overtime hours

Collaboration with company
operating employee cafeterias
to improve employee eating habits

Provision of healthy menu choices

Greater consumption ofhealthy menu choices

Efforts to prevent lifestyle-relateddiseases in collaboration with the
DIC Health Insurance Society

Increase in acceptance ofspecific health guidance

Improvement in scores for routine
tests conducted as part ofannual physicals

Staging of various
health-related seminars

Improvement inunderstanding/satisfaction

Increase in application ofknowledge gained from seminars

Promotion of antismoking measures

Implementation ofantismoking measures

Reduction of smoking rate

Initiatives aimed at preventing
the spread of infectious diseases

Provision of e-learning program on
preventing the spread of infectious diseases
and in-house influenza vaccination clinics

Greater understanding of
infectious diseases

Establishment of help desks toprovide follow-up services

Increase in awareness of help desks

Prevention of absence

Education aimed at the prevention
and early detection ofmental health issues

Participation in seminars/findings ofpost-seminar surveys to gauge
comprehension and satisfaction

Stress checks and provision offollow-up guidance

Increase in participation/consultation
with physicians by employeeswith high stress levels

Follow-up services forlong-term absentees

Implementation of programs for
employees returning to work

Promotion of use ofannual paid leave

Increase in use of annual paid leave

Reduction of overtime hours

Reduction of overtime hours

Work style reform

Increase in health literacy

Decline in presenteeism

Decline in number of individuals
taking long-term leave formental health–related reasons

Decrease in recurrence

Decrease in separation rate
attributable to use of systems
Greater work engagement

Implementation of
one-on-one meetings

Deployment of StrengthsFinder

Decrease in absenteeism

Satisfaction with system use

Efforts to encourage use of childcare
and nursing care leave systems
Establishment of a system tohelp employees balance
medical treatment and work

Indicators forhealth goals

Increase in implementation

Improvement in mutual
understanding of/satisfaction due toincreased opportunities
for communication

Use of mentoring program

DIC Report 2024

118

Challenges
addressed
through healthmanagement

The DIC Group recognizes that the achievement of its mission to create enhanced value and utilize innovation to introduce socially responsible and sustainable products
depends on the creation of working environments conducive to the physical and mental health of the employees responsible for the implementation of related initiatives.

Health investment benefitsHuman Resources Management(4) Key Health Management Initiatives
Category

No.

1

Improve participating in annual physicals

Goal

Prevention of serious illness through early detection

Annual physicals help medical staff grasp changes in physical condition and provide
appropriate guidance.
Target for percentage of employees participating in annual physicals: 100%
)LVFDO\HDU¿VFDO\HDU

2

Follow-up after annual physicals

Prevention of serious illness and job separation through early
detection/consultation with physicians

3

Support for employees returning after taking leave
due to illness

Prevention of prolongation, recurrence and job separation

Attending physician, industrial physicians, nurses, workplace colleagues and HR staff
work together to support a smooth return to work for employees from leave.
Target for percentage of employees taking leave again: 0%)LVFDO\HDU¿VFDO\HDU4

Physician-led interviews with extremely overworked
employees

Reduction of overwork and management of health risks

Efforts are ongoing to prevent the onset of brain and heart disorders by implementing
more stringent management of employee working hours than is called for in standards
governing long working hours set forth in Japan’s Industrial Safety and Health Act,
namely, by setting the threshold for overtime to be considered overwork at 70 hours/
month, and by encouraging early consultation with physicians.
(Percentage of employee overtime exceeding 80 hours /month))LVFDO\HDU¿VFDO\HDU

5

Collaboration with company operating employee
cafeterias to improve employee eating habits

Prevention of lifestyle-related diseases (including for family
members)

Active efforts are made to support employee health by offering healthy menu choices andproviding dietary education, including information on improving eating habits.
(Glycated hemoglobin concentration in the blood: 20% of below) Fiscal year 2022: 21.5% ;¿VFDO\HDU

6

Efforts to prevent lifestyle-related diseases in collaboration
with the DIC Health Insurance Society

Awareness of health risks and prevention of serious illness

Based on the results of annual employee physicals, the DIC Health Insurance Society
and DIC collaborate to make recommendations to those requiring guidance.

7

Holding of various health-related seminars

Improvement of productivity through the maintenance andimprovement of health

Efforts focus in promoting employees’ health awareness, including for their families,
through the organization of seminars on common health issues, webcasts of pastseminars, as well as on women’s health management.
3HUFHQWDJHRIHPSOR\HHVSDUWLFLSDWLQJ )LVFDO\HDU¿VFDO\HDU
88%

8

Staging of various events

Stimulation of communication; improvement of productivity throughthe maintenance and improvement of health

Various events are staged to promote health maintenance and improvement, including sports
tournaments, vascular age measurement events, walks and family site tours.

9

Efforts to encourage regular exercise

Improvement of productivity through the maintenance andimprovement of health; prevention of injuries

Various activities are encouraged, including radio calisthenics, exercises to reduce lower back pain
and stretching exercises, before starting work and during the day.
3HUFHQWDJHRIHPSOR\HHVSDUWLFLSDWLQJ )LVFDO\HDU¿VFDO\HDU

10

Promotion of antismoking initiatives

Prevention of damage to health and loss of productivity attributableto smoking

Antismoking initiatives seek to prevent exposure to passive smoke, promote awarenessof the risks of smoking and support employee efforts to quit smoking with the goal of
reducing the percentage of employees who are smokers.
Target for percentage of employees who are smokers: 15% Fiscal year 2022: 21.5%;¿VFDO\HDU

11

Initiatives to prevent the transmission of infectious diseases

Improvement of productivity through realization of comfortable work
environments; prevention of mental health issues

Efforts are ongoing to prevent the transmission of infectious diseases, including the
LPSOHPHQWDWLRQRIPDVVLQÀXHQ]DYDFFLQDWLRQFOLQLFVDQGWKHSURYLVLRQRIDUHODWHG
e-learning program.

12

Dissemination of health-related information through healthfocused newsletter

Improvement of productivity through realization of comfortable work
environments; prevention of mental health issues

Nursing staff from DIC’s Healthcare Office and infirmary issue health-related
QHZVOHWWHUVDQGZRUNWRGLVVHPLQDWHKHDOWKPDQDJHPHQWLQIRUPDWLRQWKDWUHÀHFWVWKH
unique characteristics of each site.

13

Education aimed at the prevention and early detection ofmental health issues

Helping ensure the happiness of employees and their families;
improvement of productivity through the maintenance andimprovement of health,QGXVWULDOSK\VLFLDQVDFWLYHO\FRQGXFWUDQNVSHFL¿FDQGVHOIFDUHWUDLQLQJGHVLJQHGWR
prevent and swiftly detect mental health issues.
Target for percentage of employees taking leave: Below 0.5%
)LVFDO\HDU¿VFDO\HDU

14

Stress checks and provision of follow-up guidance

Improvement of productivity through realization of comfortable work
environments; prevention of mental health issues

Stress checks are conducted even at Group companies not legally required to doso. Following checks, individuals discovered to have a high level of stress meet with
doctors and where appropriate participate in training provided by industrial physicians
specializing in mental health, among others.
Target for percentage of employees undergoing stress checks: 95% or higher (Fiscal\HDU¿VFDO\HDUTarget for percentage of employees undergoing stress checks 10% or lower (Percentage
RIHPSOR\HHVZLWKKLJKVWUHVVOHYHOV )LVFDO\HDU¿VFDO\HDU

15

Promotion of use of annual paid leave

Improvement of productivity through realization of comfortable work
environments; prevention of mental health issues

Efforts are ongoing to create an environment that makes it easy for employees totake paid leave, and include recommending appropriate timing for leave and having
employees plan leave dates. (Average number of days of annual leave taken/
HPSOR\HH )LVFDO\HDU¿VFDO\HDU

16

Reduction of overtime hours through the institution of a“no overtime day”

Improvement of productivity through realization of comfortable work
environments; prevention of mental health issues

A mandatory “no overtime day” has been instituted every Wednesday and on payday(once monthly at month-end in Japan) with the objective of curbing overtime andencouraging physical and mental reset. (Average monthly hours of overtime/employee))LVFDO\HDU¿VFDO\HDU

17

Efforts to encourage use of childcare and nursing careleave systems

Prevention of job separation because of childcare or nursing care
responsibilities

Use of leave systems is being promoted by a job satisfaction improvement working
group as part of the Companywide WSR 2020 project.

18

Establishment of a system to help employees balance
medical treatment and work

Prevention of job separation because of medical treatment

A system has been established to support employees undergoing medical treatment
who wish to continue working, along with guidelines for use of the system. Dedicatedhelp desks have been set up at sites to provide individual consultations.

19

Implementation of surveys to facilitate management of
indicators

Improvement of employee contentment and productivity through thegreater opportunities for communication and job satisfaction

Surveys are conducted regularly at DIC Group companies in Japan to facilitate
management of employee engagement and other indicators.
(QJDJHPHQW )LVFDO\HDU8SVOLJKWO\IURP¿VFDO\HDU SUHVHQWHHLVP )LVFDO\HDU8SSRLQWVIURP¿VFDO\HDU
(measured using the University of Tokyo’s Single Item Presenteeism Question method)20

Establishment of help desks to provide follow-up services

Improvement of productivity through realization of comfortable work
environments

Permanent internal and external help desks have been set up that enable employees
to report or seek advice on mental health, harassment or other issues and actively
follow up on reported matters.

Mental healthWork stylereforms

Other

Details

Based on the results of annual physicals, industrial physicians and nurses extend guidance
RQKHDOWKPDLQWHQDQFHHQFRXUDJHIXUWKHUH[DPLQDWLRQLQWKHHYHQWRIDGYHUVH¿QGLQJVDQG
provide directions on the prevention of lifestyle-related diseases.
Percentage of employees undergoing thorough examinations)LVFDO\HDU¿VFDO\HDU 1RWH&HUWDLQFDOFXODWLRQPHWKRGVZHUHDGMXVWHGLQ¿VFDO\HDU

EmployeehealthInitiative

DIC Report 2024

119

Human Resources Management(5) Mental Health Management Initiatives
DIC takes steps to create work environments in which employees feel physicallyand mentally supported. The Company places a particular priority on caring forpsychological and emotional well-being and has established a comprehensive
mental health program, highlights of which include engaging an in-houseoccupational psychologist, promoting initiatives aimed at warding off mental healthproblems and extending support to ensure a smooth return to work for employees
taking leave. In particular, access to counseling provided by an occupational
psychologist has had a considerably positive impact in terms of ensuring
employees get treatment and are able to return to work as quickly as possible.

',&KDVDOVRRIIHUHGYROXQWDU\VWUHVVFKHFNVVLQFH¿VFDO\HDUZHOOEHIRUH
the passage of related legislation in Japan in 2016, as part of an active effort tohelp prevent mental health disorders. Participation in stress checks is high mostyears. The Company also promotes follow-up initiatives. Of note, the Company
offers self-care training and line care training for supervisors led by an inhouse physician specializing in mental health, as well as encourages individual
department heads to speak with industrial physicians with the objective of
making concrete improvements to workplace environments. DIC will pursue thecontinued systematic promotion of these initiatives going forward.

Mental Health Initiatives• Guidance from an in-house occupational psychologist• Internal and external help desks• Line care training* for supervisors• Mental health self-checks as part of training for new employees• Creation of new online version of the Kokoro no Kenko (“Psychological Health”) self-check handbook• Flexible process to support employees returning to work after taking leave* Line care training: Training for supervisors to help them recognize promptly when an employee is unwell and respond
appropriately by, for example, recommending guidance or counseling or making workplace improvements.

Kokoro no Kenko
self-check handbook

TOPIC',&(DUQV:KLWH&HUWLÀFDWLRQIRUWKH6HYHQWK&RQVHFXWLYH<HDU

DIC earned certification in the large enterprise category of the 2024
Health & Productivity Outstanding Entities Recognition Program (dubbed
the “White 500”), which is organized by the Ministry of Economy, Tradeand Industry and Nippon Kenko Kaigi.* This is the seventh consecutive\HDUWKH&RPSDQ\KDVEHHQFHUWL¿HGXQGHUWKLVSURJUDPZKLFKVHHNVWR
shine a spotlight on outstanding enterprises working to advance healthand productivity management, creating an environment that ensures
such enterprises gain enhanced public recognition—i.e., from employees,
MREVHHNHUVUHODWHGFRPSDQLHVDQG¿QDQFLDOLQVWLWXWLRQV²DVRUJDQL]DWLRQV
that approach employee health and productivity from a management

perspective and promote strategic initiatives. The Company greatly
exceeded the industry average for all four criteria used: “Management
philosophy,” “organized framework,” “systems and implementation of
measures” and “evaluation and improvement.” DIC earned particularly high
PDUNVIRUVHWWLQJVSHFL¿FSULRULW\LVVXHVDQGYHULI\LQJWKHHIIHFWLYHQHVVRI
measures implemented, and for making necessary improvements.
* Nippon Kenko Kaigi (“Japan Health Council”) is an organization that liaises
with private companies, with the full backing of the government, to put effective
measures in place to prolong the healthy life expectancy of citizens and to ensure
sound medical services in Japan.

(6) Initiatives to Support Employee Health
DIC analyzes the results of employees’ annual physicals and provides assistanceto employees for whom lifestyle improvements have been recommended byproviding introductions to hospitals and clinics, and individual guidance on lifestyle
improvements. With the aim of promoting healthy eating, the employee cafeteria
at DIC corporate headquarters in Tokyo offers a heathy cafeteria menu dubbed“DIC Irodori Care+” (“DIC Colorful Care Plus”). DIC’s General Affairs and HR'HSDUWPHQWWKH+HDOWKFDUH2I¿FHDQGWKHFRPSDQ\UHVSRQVLEOHIRUWKHRSHUDWLRQ
of the cafeteria collaborated to develop this menu based on the health needs of
employees. The Company also devised innovative ways of presentation, including
producing distinctive signage that encourages recognition and names that clearly
FRPPXQLFDWHWKHKHDOWKEHQH¿WVRIPHQXVHOHFWLRQVVXFKDVUHGXFHGFDORULHVRU
low cholesterol. DIC Irodori Care+ also makes use of familiar meal components
like kobachi (small bowl) side dishes transformed into a nutrient-packed“Supplement Bowl” to promote greater awareness of food’s role in improving
overall health.
DIC will continue implementing measures designed to help ensure the physicaland mental health of its employees as part of its commitment to creating work
environments that empower them to fully realize their potential.
Healthy cafeteria menu selection

DIC Report 2024

120

Sustainable Procurement

Promoting Socially Responsible Procurement Across Supply Chains

SDGs Goal 12

Goals and Achievements of Major Initiatives

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

Objective of initiatives Goals for fiscal year 2023

Achievements in fiscal year 2023

Advance initiatives aimed
at expanding sustainableprocurement over the medium tolong term, including assessing
and reducing CO2 emissions
associated with raw materials
and searching for bioderived andrecycled raw materials.

Promote sustainableprocurement.
Continue conducting
sustainability assessments ofsuppliers in Japan and Sun
Chemical suppliers, and expand
the scope of this initiative toinclude the PRC and the Asia–
Pacific region, to ensure a graspof, and encourage improvementof, suppliers’ sustainability
initiatives.

Evaluation Goals for fiscal year 2024

•In Japan, the CO2 emissions reduction targets of key suppliers
were assessed and steps were taken to promote awareness ofthe need for related initiatives.
• Assessments of CO2 emissions associated with raw materials
were conducted, information was collected from suppliers andthemes for future assessments were identified.
• In addition to bioderived materials, research was conducted
regarding target raw materials for which the mass balance
approach has been adopted, including bionaphtha, and markets
for these raw materials, and information was shared across theGroup in preparation for introduction.

Sustainability assessments of suppliers were conducted in Japanand at Sun Chemical. Furthermore, the EcoVadis platform, used by
Sun Chemical, was deployed across the DIC Group, with the goalof reinforcing initiatives. Assessments using this tool commenced inJapan.

★★

Advance initiatives aimed
at expanding sustainableprocurement over the medium
to long term, including
evaluating the CO2 emissions
reduction targets and promoting
awareness of the need for
improvements, assessing CO2
emissions associated with raw
materials, and searching forbioderived and recycled raw
materials.

★★

Continue conducting
sustainability assessments ofsuppliers in Japan and Sun
Chemical suppliers using the
EcoVadis platform or another
tool and promote related
efforts across the DIC Groupby expanding the scope of
this initiative to include the
PRC and the Asia–Pacificregion.

Basic Approach to Sustainable Procurement
Having recognized the increasing importance of addressing issues essential to sustainable procurement, including compliance with laws and social
norms, consideration for the environment and respect for human rights, the DIC Group formulated the DIC Group Universal Purchasing Policy andcontinues to advance related initiatives on a global scale. Based on this policy, the Group also established the DIC Group Sustainable Procurement*XLGHOLQHVZKLFKFODUL¿HVLWVH[SHFWDWLRQVRIVXSSOLHUVDQGDGYDQFHVVXVWDLQDEOHSURFXUHPHQWDFURVVLWVVXSSO\FKDLQVE\HQVXULQJDVVHVVPHQWVare conducted to ascertain the status of suppliers’ sustainability and by encouraging awareness-raising efforts.
For more information, please visit WEB https://www.dic-global.com/en/csr/stakeholder/partner.html

The DIC Group Universal Purchasing Policy

The DIC Group Sustainable
Procurement Guidelines❶ Fair and transparent business practices

The DIC Group will implement fair and open purchasing activities with suppliers basedon global perspectives, without the constraints of conventional commercial customs.
❷ An appropriate purchasing process and the building of relationships of

mutual trust

The DIC Group, as a good partner for suppliers, will build long-lasting, mutually trusted relationships with
VXSSOLHUVDQGZRUNWRJHWKHUZLWKWKHPIRUPXWXDOKDUPRQ\DQGEHQH¿WZKLOHFRPSO\LQJZLWKUHOHYDQWUHJXODWLRQV
social norms, domestic and overseas, and pursuing adequate quality and prices.

❶ &RPSOLDQFHZLWKODZVVRFLDOQRUPV❷ Human rights and work environments❸ Safety and health❹ Consideration for the environment❺ Information security❻ Appropriate quality and safety andtechnological improvements❸ Satisfying environmental/safety needs

The DIC Group will take responsibility as an exemplary corporate citizen for environmental affairs,
occupational safety, human health and product quality, always take into account changes in society andimplement environment-friendly purchasing activities.

❼ 6WDEOHVXSSOLHVDQGÀH[LEOHUHVSRQVHVWR

change❽ Promotion of sustainability andsustainable procurement initiatives❹ Challenge the creation of new value

In order to respond at a high level to a new value sought by society, the DIC Group will proactively
challenge the creation of such value together with suppliers, with whom the same goal can be shared,
and strive to grow together with them in a sustainable manner.

DIC Report 2024

121

Sustainable Procurement

Efforts to ascertain/improve suppliers’ sustainability
・Assess using EcoVadis
・Assess using the DIC Group Sustainable Procurement Guidebook

Responsible mineral procurement

DIC Group

Suppliers,QYHVWLJDWHVPHOWHUVDQGUH¿QHULHVXVHGIRUPLQHUDOVFRQWDLQHGLQUDZPDWHULDOV
(using CMRT, etc.)

Sustainable procurement initiatives
・Survey and promote the reduction of CO2 emissions associated with raw materials
・Advance the adoption of bioderived and recycled raw materials

substances and compliance with pertinent laws and regulations, as well as
to promote the reduction of environmental impact. Using the appropriate
VXUYH\IRUPWKH*URXSDOVRFRQ¿UPVVXSSOLHUV¶RZQJUHHQSURFXUHPHQW
efforts, ascertains the status of manufacturers’ responses to requests for
improvements, and follows up as necessary.

■ Ascertaining and Improving Suppliers’ Sustainability
The DIC Group uses EcoVadis and the DIC Group Sustainable
Procurement Guidebook, capitalizing on the distinctive features of each, toassess the sustainability of its suppliers and encourage related efforts.
○ EcoVadis

15%
12%
5%

7%

1%
Below 2.0

2.0‒2.5 2.6‒2.9 3.0‒3.5 3.6‒3.9 4.0‒4.5 4.6‒5.0
Self-evaluation sheet scale (0–5.0 points)

Scores○ Global Sustainable Procurement Efforts○ DIC Group Sustainable Procurement Guidebook

・Japan
The DIC Group Sustainable Procurement Guidebook has been usedin Japan since 2010 to assess Group suppliers’ sustainability. In fiscal
year 2023, the Group collected evaluations from suppliers accounting
for more than 85% of its domestic procurement spending using version
3 of the DIC Group Sustainable Procurement Guidebook. In instanceswhere the supplier surveyed is a trading company, an additional survey
was conducted for the actual producer, with responses received from691 companies. Feedback was provided to all responding suppliers andproducers. To date, the Group has followed up with on-site inquiries to a
total of 102 companies.

Inaugurated in 2010, the DIC Group Sustainable Procurement Guidebook
was developed with the aim of assessing suppliers’ sustainability and
SURPRWLQJLPSURYHPHQWV9HUVLRQRIWKLVJXLGHERRNSXEOLVKHGLQ¿VFDO
year 2020, is currently in use.
Outline of the DIC Group Sustainable Procurement Guidebook(Version 3, published in February 2020)
WEB

29% 31%

Assessment Distribution Chart

EcoVadis is a third-party web-based sustainability rating platformthat assesses the performance of companies, providing sustainability
scorecards and benchmarks, among others, and has been used to evaluate
more than 100,000 companies worldwide. EcoVadis experts conduct
evidence-based analysis of supplier information collected, facilitating
the provision of objective and highly reliable assessments of suppliers’
sustainability. Sun Chemical, based in the United States, began using
EcoVadis in 2020. In fiscal year 2023, the transition was made to an
integrated subscription for use of this platform and deployment across theglobal DIC Group commenced.

https://www.dic-global.com/pdf/about/purchase/dic_sc_csr_en.pdf

・DIC Group Universal Purchasing Policy
・DIC Group Sustainable Procurement Guidelines
・DIC Group Green Procurement Guidelines

In fiscal year 2023, the DIC Group also began conducting assessments
in Japan using EcoVadis. Plans are to gradually expand the scopeof assessments with the goal of strengthening its assessment of andencouraging improvements in the sustainability of suppliers.

・DIC Group Sustainable Procurement Self-Evaluation Sheet

In addition to using the DIC Group Sustainable Procurement Guidebook to
encourage awareness of the Group’s expectations of suppliers, outlined in
the DIC Group Sustainable Procurement Guidelines, the Group conducts
surveys using the guidebook’s self-evaluation sheet to ascertain the statusof suppliers’ sustainability programs. The self-evaluation sheet consistsof 45 questions segmented into the same eight categories as the DIC
Group Sustainable Procurement Guidelines. In addition to analyzing andassessing responses to self-evaluation sheet questions and providing
feedback to each supplier, the Group follows up with on-site inquiries or
written comments when required.

35&DQGWKH$VLD²3DFLÀF5HJLRQThe DIC Group plans to commence full-scale surveys of suppliers in the
PRC and the Asia–Pacific region using EcoVadis and the DIC Group
Sustainable Procurement GuidebookLQ¿VFDO\HDU
• The Americas and Europe
In the Americas and Europe, EcoVadis has been used by Sun Chemical toassess the sustainability of and encourage initiatives by its suppliers since¿VFDO\HDU7KHFRPSDQ\KDVFRPSOHWHGDVVHVVPHQWVRIVXSSOLHUV
accounting for approximately 80% of its procurement spending and willcontinue working to expand implementation.

The DIC Group Green Procurement Guidelines, included in the guidebook,oblige suppliers to ensure the stringent management of chemical

DIC Report 2024

122

Sustainable Procurement■ Human Rights Due Diligence in Supply Chains

Materials Survey,*1 a safety data sheet (SDS), chemSHERPA*2 and the CMRT.

Recognizing the importance of respect for human rights in supply chains,the DIC Group works with its suppliers to promote initiatives across its own
supply chains.

*1 A DIC Raw Materials Survey is a questionnaire the aim of which is to confirm basic
information on the constituents of raw materials and their compliance with pertinent laws
and regulations.
*2 An acronym for “chemical information sharing and exchange under reporting partnership in
supply chain,” chemSHERPA is a scheme developed in Japan for the transfer of information
on raw materials across supply chains.

○ Initiatives Targeting Suppliers
In accordance with the DIC Group Sustainable Procurement Guidebook, theGroup compels its suppliers to respect the human rights of their employees
by, among others, providing equal opportunities, prohibiting forced labor,
preventing harassment, paying appropriate wages, appropriately managing
working hours, ensuring freedom of association and guaranteeing the rightto engage in collective bargaining. In addition, the Group uses EcoVadis
and the aforementioned guidebook to assess the status of suppliers’ efforts
and encourages awareness of the need for improvements by providing
feedback and conducting on-site inquiries.

■ Ensuring the Sustainable Procurement andUse of Raw Materials

The DIC Group promotes the sustainable procurement and use of raw
materials from a medium- to long-term perspective.
○ Surveying CO2 Emissions Associated with Raw Materials
In response to social imperatives and the expectations of its customers,
the DIC Group surveys CO2 emissions associated with raw materials to
calculate the carbon footprint of its products, that is, total CO2 emitted
over its products’ life cycles. So far, the Group has surveyed suppliers and
FROOHFWHGUHOHYDQWGDWDDQGKDVLGHQWL¿HGDQHHGWREURDGHQWKHUDQJHRI
items for which it gathers data. The Group will continue to keep abreastof industry trends, as well as to conduct surveys with the objective of
accurately calculating and helping reduce its products’ carbon footprint.

○ Responsible Procurement of Minerals
The DIC Group has formulated the Basic Approach to the Responsible
Procurement of Minerals and conducts surveys to ensure its ability to
procure these critical resources in a responsible manner.

○ Engaging with Suppliers to Reduce CO2 Emissions Associatedwith Raw Materials
The DIC Group seeks to work with its suppliers to encourage the reductionof CO2 emissions associated with purchased raw materials with the goalof lowering climate change risk and achieving Science Based Targets
LQLWLDWLYH 6%7L FHUWL¿FDWLRQRILWVWDUJHWIRUUHGXFLQJ6FRSHHPLVVLRQV$VD¿UVWVWHSLQ¿VFDO\HDUWKH*URXSFRQ¿UPHGWKHVWDWXVRIHIIRUWV
to set medium- to long-term CO2 emissions reduction targets by suppliers
accounting for approximately 90% of its procurement spending, as well as
to publicize and raise awareness of these efforts.

Basic Approach to the Responsible
Procurement of Minerals
To avoid any complicity in the funding of armed groups, or in
FKLOGODERURURWKHUKXPDQULJKWVDEXVHVLQDUHDVRIFRQÀLFW²
including the Democratic Republic of Congo and its neighboring
FRXQWULHV²RUKLJKULVNDUHDV WKH',&*URXSVXUYH\VVXSSOLHUV
of minerals such as tin, tantalum, tungsten and gold to ensure
the responsible procurement thereof across its entire supply
chain. Should it discover the use of minerals mined in conditions
RIFRQÀLFWRUDVDUHVXOWRIKXPDQULJKWVDEXVHVWKH*URXSZLOO
take immediate corrective actions.

* For more information on the SBTi, please see page 88.

○ Promoting the Use of Bioderived and Recycled Raw Materials
The DIC Group actively promotes the use of bioderived and recycled raw
materials. This includes using the Group’s global supply chain to conduct
raw material surveys and sharing the results with technical groups,
prompting product design reviews.

In line with this approach, the DIC Group ascertains the status of suppliers’
efforts to ensure the responsible procurement of minerals using EcoVadis
and the DIC Group Sustainable Procurement Guidebook and surveys
smelters using the conflict minerals reporting template (CMRT) and theextended minerals reporting template (EMRT)* to evaluate minerals
contained in procured raw materials. To date, surveys using the CMRT havebeen secured regarding more than 90% of the raw materials the Groupcurrently procures in Japan. Surveys using the EMRT have also been
conducted for major raw materials containing target minerals. The Groupwill continue to expand and update its surveys in the future. In addition, Sun
Chemical is a founding member of the Responsible Mica Initiative, whichseeks to eradicate child labor and unacceptable working conditions inIndia’s mica supply chain, and is working to improve the soundness of thatcountry’s mica mining industry.

■ ,QWHUQDO&RQÀJXUDWLRQDQG(PSOR\H7UDLQLQJ○ ,QWHUQDO&RQÀJXUDWLRQ* The CMRT and EMRT are standardized reporting templates developed by the Responsible Minerals,QLWLDWLYH 50, WRVXUYH\VPHOWHUVDQGUH¿QHULHVXVHGIRUPLQHUDOVFRQWDLQHGLQUDZPDWHULDOVZLWKthe CMRT targeting tin, tantalum, tungsten and gold and the EMRT targeting cobalt and mica.

A dedicated team has been established within DIC’s Purchasing Departmentthat is responsible for sustainability in the DIC Group’s supply chains. This teampromotes a variety of efforts with the goal of achieving sustainable procurement
for the entire Group, establishing KPIs for these initiatives to track progress. Global
meetings and other initiatives are used to promote the sharing of information
among different regions regarding region-specific initiatives, underscoring theGroup’s robust commitment to advancing sustainable procurement. Thanks
to these efforts, in 2023 the DIC Group scored an outstanding 70 points in the“Sustainable Procurement” category of the EcoVadis assessment.

■ Advance Assessments of New Raw Materials○ Internal Training

The DIC Group conducts advance assessments of new raw materials to
confirm that there are no issues regarding legal or regulatory compliance,
safety or other issues related to the sustainable procurement of raw materials.
In Japan, for example, the Group mandates the submission of a DIC Raw

To promote understanding across the DIC Group, training on sustainableprocurement is provided to individuals involved in purchasing at point ofhire, when joining a Group company and otherwise as appropriate.

DIC Report 2024

123

Compliance

Toward Fair and Transparent Corporate Activities
Goals and Achievements of Major Initiatives
Objectives of initiatives(QKDQFHDZDUHQHVVRI
compliance.

Conduct business fairly.

SDGs Goal 16(YDOXDWLRQVDUHEDVHGRQVHOIHYDOXDWLRQVRIFXUUHQWSURJUHVV.H\★★★ ([FHOOHQW★★ 6DWLVIDFWRU\★ = Still needs work

Goals for fiscal year 2023

Achievements in fiscal year 2023

• Achieve target of percentage of
employees participating in the
HOHDUQLQJSURJUDP  • The percentage of employees
SDUWLFLSDWLQJLQHOHDUQLQJUHDFKHG

• Develop global compliance selfinspection and reporting systems.

• Consideration was given to the format ofself-inspections, but the development ofsystems was not realized.

Achieve target of zero violations ofantitrust, anti-corruption and otherkey laws.

Zero violations of antitrust, anticorruption and other key laws werereported.

Evaluation

Goals for fiscal year 2024
• Achieve target of percentage of
employees participating in the
HOHDUQLQJSURJUDP  ★★

• Continue working to develop
global compliance self-inspection
and reporting systems.

★★

Achieve target of zero violations ofantitrust, anti-corruption and otherkey laws.

Basic Approach to Compliance
Compliance in the DIC Group encompasses not only obeying laws but also acting in a manner that is in keeping with social
norms and the expectations of customers, communities and other stakeholders. With the aim of ensuring sustainable growth
IRUEXVLQHVVHVWKDWDUHERWKIDLUDQGWUDQVSDUHQW',&IRUPXODWHGWKH',&*URXS&RGHRI%XVLQHVV&RQGXFWDXQL¿HGVHWRI
guidelines the adherence to which it considers to be the foundation of compliance. DIC compels all DIC Group employees
to comport themselves in accordance with the code.

■ The DIC Group Code of Business Conduct■ Initiatives to Promote Compliance

The DIC Group’s Board of Directors approved the DIC Group Codeof Business Conduct in July 2014. The code not only mandates
compliance with national laws and international rules but also presents
10 principles essential to the professional conduct of DIC Group
employees. The Group held presentations for all existing Group
employees when the code was established, while new employees
receive training at point of hire. The goal of such training is to ensure
employees worldwide share values cherished by the Group andapproach their work with a sense of responsibility and a commitment todoing the right thing.

The DIC Group promotes compliance through the following
initiatives:① Legal training that emphasizes improving complianceawareness is provided for employees at point of hire,
when promoted and before transfer overseas. In
addition, to promote awareness of the DIC Group Codeof Business Conduct, e-learning related to the code, as
well as to compliance, is provided in Japan, at DIC Asia
3DFL¿FDW',& &KLQD DQGLQWKH$PHULFDVDQG(XURSH
② Compliance officers are appointed at all regional
KHDGTXDUWHUV²',& LQ -DSDQ 6XQ &KHPLFDO WKH$PHULFDV DQG (XURSH  ',& &KLQD  35&  DQG ',&
$VLD3DFLILF $VLDDQG2FHDQLD ²WRVSHDUKHDGJOREDO
compliance efforts. The DIC Group vows that it will not
violate the principles of the DIC Group Code of BusinessConduct, even if such a violation would appear to
SUR¿WWKH*URXS$VDFRUSRUDWHFLWL]HQWKH*URXSDOVR
pledges to respect social norms and act in a sound andsocially acceptable manner. In fiscal year 2023, there
were no serious violations of compliance laws.

10 Principles Essential to Professional Conduct❶ <RXU5LJKWVDVDQ(PSOR\HH5HVSHFW'LJQLW\3ULYDF\❷ (QYLURQPHQWSafety and Health❸ <RXU5HVSRQVLELOLW\WR$YRLG3RWHQWLDO&RQÀLFWVRI,QWHUHVWDQGWR
Protect Group Property❹ Anti-Corruption and Anti-Bribery Policy❺ <RXU5HODWLRQVKLSZLWK*RYHUQPHQWVDQG*RYHUQPHQW2I¿FLDOV❻ <RXU5HODWLRQVKLSZLWK&XVWRPHUV6XSSOLHUVDQG([WHUQDO7KLUG3DUWLHV❼ Money Laundering and Anti-Terrorism❽ )RUFHG/DERU&KLOG/DERU&RQÀLFW0LQHUDOV❾ Insider Trading❿ 3URSHU$FFRXQWLQJDQG,QWHUQDO&RQWUROV5HODWLQJWR)LQDQFLDO5HSRUWLQJDIC Report 2024

124

Compliance

Compliance E-Learning
Fiscal year 2019
Fiscal year 2020

$YRLGLQJFRQÀLFWVRILQWHUHVW• Preventing harassment• Insider trading• Trademarks and intellectual property• Information security and Japan’s Act on the Protection of Personal
Information, etc.
(QVXULQJFRPSOLDQFH ',&*URXS&RGHRI%XVLQHVV&RQGXFW• The DIC Group’s whistle-blowing system

Fiscal year 2021 •(QVXULQJFRPSOLDQFH SURGXFWTXDOLW\• Information security and Japan’s Act on the Protection of
Personal Information, etc.
Fiscal year 2022 • Preventing discrimination and harassment•(QVXULQJFRPSOLDQFH SURGXFWTXDOLW\• Information security and Japan’s Act on the Protection of
Personal Information, etc.
Fiscal year 2023 • (QVXULQJFRPSOLDQFH ',&*URXS&RGHRI%XVLQHVV&RQGXFW•(QVXULQJFRPSOLDQFH SURGXFWTXDOLW\• Information security and Japan’s Act on the Protection of
Personal Information, etc.

○ Establishing and Operating a Whistle-Blowing System○ Promoting Compliance with Legislation Regarding the Timely

The DIC Group has established a compliance whistle-blowing system
independent from channels for communication used in the conduct of
EXVLQHVV 7KLVV\VWHPDOVRHQFRPSDVVHVH[WHUQDOKRWOLQHVWKDWFDQDFFRPPRGDWHPRUHWKDQODQJXDJHV 7KH*URXSKDVDOVRGHYLVHG
strict rules under this system to protect whistle-blowers from retaliation
and works to ensure the system functions in a proper manner.

Payment of Subcontractors
With the aim of enhancing understanding of the importance ofappropriate and fair transactions with subcontractors, the Legal
Department held presentations on legislation regarding the timely
payment of subcontractors, incorporating case studies, for thepurchasing departments of domestic DIC Group companies,
and offered e-learning, principally for employees in charge ofsubcontractors. In addition, DIC has prepared the Manual for Internal
Auditing of the DIC Group’s Compliance with Japan’s Act Against
Delay in Payment of Subcontract Proceeds, Etc., to Subcontractors
and created a framework for conducting audits in a more efficientmanner. The Group also encourages employees in related positions toparticipate in programs sponsored by external organizations, including
a workshop promoting adherence to the Act sponsored by the Japan)DLU7UDGH&RPPLVVLRQDQGWKH6PDOODQG0HGLXP(QWHUSULVH$JHQF\When a report is received, the DIC Group responds swiftly andappropriately, giving due consideration to pertinent laws while also
incorporating internal and external opinions, to identify and correct
violations and where necessary to take disciplinary action. Detailsof reports and steps taken in response are reported to the Board of
Directors. The Group will continue to use its whistle-blowing system toensure the prompt discovery and correction of misconduct.
In fiscal year 2023, approximately 50 reports were received oncompliance issues and labor-related matters such as power
harassment and discrimination, but none were judged to be serious,
the content of which was reported to the Board of Directors○ Taxation Compliance,Q1RYHPEHUWKH',&*URXSIRUPXODWHGDQRI¿FLDODSSURDFKWR
tax. As an organization with global operations, the Group engages
in fair and appropriate tax planning that reflects the nature of its
businesses. The Group is also aware of risks associated with transfer
price taxation and the use of tax havens, and of its obligation to pay
appropriate taxes in the proper jurisdictions as appropriate for its
operations. The chart below shows a breakdown of taxes in Japan and
RYHUVHDVLQ¿VFDO\HDU

DIC Group
employees
Japan, other countries/
territories, regionsAsia–Pacific region

Greater China

Sun Chemical
Corporation

Director in charge of compliance,
Legal Department, External legal firm

Legal Department
Whistle-Blowing Committee

Whistleblowing
hotlines

The DIC Group’s Approach to Tax
https://www.dic-global.com/en/csr/philosophy/management/tax.html

Legal Department
Whistle-Blowing Committee

Income Taxes in Fiscal Year 2023
Japan

General manager, Legal Department,
CEO, CFO¥1,971

Overseas

million¥8,094

million○ Antitrust and Anti-Corruption Legislation

Total¥10,065
millionThe DIC Group has formulated a basic policy to comply with antitrust
legislation and made Groupwide efforts to ensure fair businesspractices. Strict rules for compliance with antitrust legislation andthe prohibition of involvement in corruption are contained in the
DIC Group Code of Business Conduct. These are also among thethemes addressed in e-learning held annually to bolster employee
understanding and advance awareness.

DIC Report 2024

125

Business Continuity Management (BCM) and Crisis Management

Reducing Business Risks and Preventing the Recurrence of Incidents
Goals and Achievements of Major Initiatives
Objective of initiatives

Ensure the continuity of
DIC Group businesses.

Evaluations are based on self-evaluations of current progress. Key: ★★★ ([FHOOHQW★★ 6DWLVIDFWRU\★ = Still needs work

Goals for fiscal year 2023

Achievements in fiscal year 2023

Evaluation

Periodically revise BCPs
and reinforce cooperation
among product divisions
and sites.

• Annual scheduled updates of BCPs were implemented.
• With the aim of ensuring the stable operation of the
DIC BC Portal to reinforce collaboration among theheadquarters task force, product divisions and sites, areview was conducted of criteria for activating this systemand, from an information security perspective, of eventspecific user settings.
• Training employing the DIC BC Portal was offered at
multiple sites.

★★★

Strengthen efforts to create
a global crisis management
configuration and promote
BCP initiatives.

• Surveys were conducted on the status of BCPs at DIC GroupFRPSDQLHVRYHUVHHQE\',&$VLD3DFLILFDQG',& &KLQD ★

Goals for fiscal year 2024

Promote BCM systems.

Strengthen efforts to create
a global crisis management
configuration.

Basic Approach to BCM and Crisis Management
The DIC Group accounts for all risks with the potential to interrupt business continuity through BCM, including those related to natural
GLVDVWHUVVXFKDVPDMRUHDUWKTXDNHVW\SKRRQVDQGÀRRGVLQIHFWLRXVGLVHDVHVDQGSDQGHPLFVDQGIDFLOLW\DFFLGHQWVVXFKDVH[SORVLRQV¿UHVDQGOHDNV7KH*URXSFRPSUHKHQVLYHO\HVWLPDWHVWKHSUREDELOLW\RIFULWLFDOHYHQWVDULVLQJIURPWKHVHULVNVDQGWKHLPSDFWWKHUHRI
on management, prioritizing response measures for more significant risks. The Group has also established a task force frameworkencompassing a headquarters task force, business task forces and on-site task forces, and is working to formulate and improve BCM andcrisis management countermeasures, including by reviewing risk-specific manuals used Groupwide, formulating and revising business
FRQWLQXLW\SODQV %&3V IRUNH\SURGXFWVDQGXSGDWLQJLQIRUPDWLRQ■ Framework for Promoting BCPs

employees having a correct understanding of BCM and of how
to properly execute the DIC Group’s BCPs. This in turn requires
education and training, which includes presentations for
employees newly put in charge of BCPs for business groups,
as well as for Group company employees assigned to relatedroles at Group companies in advance of the rollout of BCP
initiatives. Training also involves conducting workshops andmap-based simulation exercises targeting senior management
for headquarters task force members under the supervision andguidance of experts.

DIC has prepared crisis management rules and risk-specificmanuals for use across the DIC Group in the event of a majordisaster, as well as formulated BCPs for individual productdivisions. DIC also recognizes the importance of fulfilling its
supply responsibilities in the event of damage to its facilities
from a large-scale disaster and thus incorporates thisSHUVSHFWLYHLQWRLWV%&3V6SHFL¿FDOO\WKH&RPSDQ\VHOHFWVNH\SURGXFWVDQGUHÀHFWVWKHPLQ%&3V
,Q¿VFDO\HDU',&IRUPXODWHGDQGGHSOR\HG%&3VIRUDOORI
its unlisted consolidated subsidiaries in Japan with production
sites, completing BCPs targeting high-priority risks similar to
WKRVHRIWKHSDUHQWFRPSDQ\$GGLWLRQDOO\DIDFW¿QGLQJVXUYH\
was conducted on the status of, among others, BCPs andcrisis management rules of DIC Group companies overseen
E\',&$VLD3DFL¿FLQ6LQJDSRUHDQG',& &KLQD ZLWKDYLHZ
to expanding the scope of BCP formulation to include thesecompanies.

,QILVFDO\HDUWKH*URXSFRQGXFWHGD%&3IRFXVHGGULOO
based on the premise of an accident involving a chemicalleak at a production facility caused by an earthquake. The drill
included using online meetings involving the headquarters task
force, product divisions and production facilities in combination
with the DIC BC Portal disaster information system—a
web-based system facilitating the collection and sharing of
information when an accident or disaster occurs—to report anddiscuss responses based on damage estimates, including thepossibility of chemicals escaping outside the site, and included
an exercise in dealing with local governments and residents.

■ BCM in Fiscal Year 2023
Responding effectively to accidents and disasters depends on

DIC Report 2024

126

BCM and Crisis Management

which Nihonbashi is located, while DIC, as a member of Chuoku’s management council for emergency shelters for stranded
individuals, promotes a variety of initiatives aimed at assisting
people stranded in the wake of a major disaster. The Company
also participates in drills in collaboration with local authorities
aimed at guaranteeing the effective sharing of information, evenin the midst of post-disaster chaos, regarding evacuations. DIC
will continue to play an active role in community-based efforts
to reinforce local disaster preparations, thereby helping ensure
Tokyo’s disaster resilience.

■ Improving the Effectiveness of BCPs andPreventing Them from Becoming Empty
Formalities
DIC works to refine its BCP templates to prevent these plansfrom becoming mere formalities. Key measures conducting
annual status update meetings, attended by relevant executives,to verify that product division BCPs are up-to-date and relevant,.
7KH¿VFDO\HDUVWDWXVXSGDWHPHHWLQJLQYROYHGH[DPLQLQJthe content of product division BCPs, confirming the update
status, as well as identifying areas for improvement andissues to be addressed, based on which improvements will be
LPSOHPHQWHGLQ¿VFDO\HDUDQGEH\RQG

■ Conducting Emergency Response Drills
In addition to annual headquarters task force–led training, DIC
has developed and works to maintain a system designed toensure its ability to minimize damage in the event of a disaster,
as well as to facilitate the swift restoration of operations. Thissystem includes an employee safety confirmation, site-tosite emergency radio warning, site-specific comprehensive
disaster and other drills. With the establishment of site training
environments for the aforementioned DIC BC Portal, use of
the system in the sharing of information among sites during
HPHUJHQF\UHVSRQVHGULOOVH[SDQGHGVLJQL¿FDQWO\■ Crisis Management○ Administration of the DIC Portal Web-Based Disaster

Information System,QILVFDO\HDU',&VRXJKWWRDGGUHVVLVVXHVDVVRFLDWHG
with the DIC BC Portal that emerged during the period, thesecond year since the system’s rollout, to maintain andgradually improve the effectiveness and usefulness of thisV\VWHP6SHFL¿FDOO\IURPWKHSHUVSHFWLYHRIFODULI\LQJFULWHULD
for activating the system and facilitating more appropriate
internal information management, a review was conducted of
the range of settings for categories used for sharing information,
which include natural disasters, accidents, fires, explosions,chemical leaks and serious personal injuries.
○ Community Efforts to Cope with Major Disasters

Japan is one of the most earthquake-prone countries in theworld. As a consequence, ensuring earthquake readiness, thatis, the ability to prevent and mitigate the impact of earthquakes,
is recognized as a critical challenge for society as a whole.
Tokyo’s Nihonbashi district, home to the DIC Building, DIC’s
corporate headquarters, is noted for its tightly clustered largecommercial complexes and office buildings. A comprehensive
neighborhood disaster drill is conducted annually on a nearby
empty lot. The DIC Building, designed with state-of-the-art
earthquake-resistant technologies, has also been designated asa temporary shelter for people stranded in Chuo-ku, the ward in

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127

Information Security

Initiatives to Ensure Information Security
Goals and Achievements of Major Initiatives

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

Objective of initiatives

Goal for fiscal year 2023

Achievements in fiscal year 2023

Establish a global
information security
framework.

Based on the information security roadmap devised in fiscal year 2022, decisively
implement action plans for themes
determined to be of particular importance.
Minimize information security risks ina global and open cloud-based digital
environment, strengthen ability to addressincidents when they occur and to minimize
the impact thereof.

• Efforts to deploy a global security framework,
advance the transition to cloud-based
computing under a next-generation IT projectand provide training to address incidents when
they occur proceeded as planned.
• The information security road map was
updated to reflect recent trends in terms ofcybersecurity risks.

Evaluation

Goal for fiscal year 2024★★

Based on the information security roadmap, continue to decisively implement
action plans for themes determined
to be of particular importance.
Minimize information security risks ina global and open cloud-based digital
environment, strengthen ability toaddress incidents when they occur andto minimize the impact thereof.

Employeetraining/
drillsBasic Approach to Information Security
The DIC Group has positioned information security as a key management priority
and established the Basic Policy on Information Security, which is founded on its
recognition that protecting information assets that belong to or are managed by theGroup is essential to its ability to conduct business. The DIC Group works to ensurethat directors and employees use the Group’s information assets properly in the
FRXUVHRIEXVLQHVVDQGKDQGOHFRQ¿GHQWLDOLQIRUPDWLRQDSSURSULDWHO\7KH*URXS
also pursues continuous improvements by conducting internal audits to confirm
current issues and identify risks.

Strengthening of
measures tocombat targetedcyber attacks

Further
improvements

Response to the
expanded use ofdigital technologies

Response to the shift tocloud-based computing

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

The DIC Group’s approach to information security management
rests on four pillars: Regulations and guidelines, management
framework, information security infrastructure, and employee
education and training.

necessary as part of a system to facilitate the timely update of rules
and guidelines to accommodate new technologies and risks, andto ensure changes are communicated effectively across the DIC
Group. The committee formulates annual targets and initiatives
for strengthening information security with the approval of the
Sustainability Committee and manages the progress of related
efforts.

○ Regulations and Guidelines○ Information Security Infrastructure

In line with its Basic Policy on Information Security, in Japan, the
PRC and the Asia–Pacific region the DIC Group has set forth
confidential information management regulations, which stipulate
the scope of management and related standards, rules andresponsibilities, and the confidential information management
guidelines, which outline procedures for implementation, as wellas its information and communications technology management
guidelines, which govern the management of information andcommunications technology environments. These are updated
regularly and as required to address new security risks in atimely manner. The Group has also created and revises global
guidelines and rules governing the use of AI, cloud computing andcontrol systems in response to the increasing prevalence of digitaltechnologies.

The DIC Group has formulated a road map for information security
that focuses on latent risks identified through a risk assessment
conducted by a third-party organization. Guided by this road map,the Group is advancing initiatives designed to permanently reduce
related management and business risks by equipping it to respondswiftly and accurately to increasingly active and sophisticated cybersecurity threats. The Group is also working to enhance control
systems management at individual sites by promoting the effective
use of guidelines, as well as the determination of management
F\FOHVWRDGGUHVVLVVXHVLGHQWL¿HGWKURXJKULVNDQDO\VLVDQGDXGLWV

■ Promoting and Enhancing Information

Security on a Global Basis

Going forward, the DIC Group aims to deploy information security
measures introduced in Japan (including introducing internet
security and endpoint security systems) elsewhere in Asia, as wellas to strengthen its cyber attack detection and analysis capabilities
in the Americas and Europe. In addition, the Group will plan andimplement IT-related initiatives to streamline and automate related
operations.

○ Management Framework

The Information Security Committee, which is led by the head of
the IT Strategy Unit, meets regularly (twice annually) and whenever

DIC Report 2024128

○ Employee Education and Training○ Customer Privacy and Customer Data

The DIC Group offers an e-learning information security program
IRUHPSOR\HHVZLWKDFFHVVWRLQIRUPDWLRQZKHWKHURQOLQHRURIÀLQH
Given the increasingly advanced nature of cyber attacks and crimes,
the Group also promotes ongoing efforts to improve employees’
awareness of information security and ability to respond effectively
should an issue arise, including providing training in how to contend
with phishing attacks.

To date, there have been no substantiated complaints regarding
breaches of customer privacy and no incidents of leaks or the loss ofcustomer data.of customer privacy and no incidents of leaks or theloss of customer data.

Comment This Is My View of DIC’s Information Security Capabilities as a Partner for DIC.
In addition to forensic services,*1 Verizon Japan periodically provides DIC with security advisory services. To be precise, in addition to
responding to queries pertaining to topics proposed by the Company, we also extend services designed to help fortify DIC’s security
systems and enhance its knowledge base, including presenting case studies based on initiatives promoted by other companies anduseful materials pertaining to risks associated with new technologies and approaches to strengthening security systems, as well training
pertaining to settings for security devices, the basics of evidence preservation and the use of related tools, and how to address incidents
when they occur.
DIC has one group that explores and implements effective security policies and governance and another that is responsible for
WHFKQRORJLHVIRUWKHSUDFWLFDODSSOLFDWLRQRIERWKWRFRQFUHWHVROXWLRQVVXFKDV¿UHZDOOVDQGHQGSRLQWGHWHFWLRQDQGUHVSRQVH ('5 solutions. However, rather than being siloed off from each other, these groups cooperate and communicate, allowing them to maintain aconstructive relationship that underpins the implementation of various initiatives. This is made possible by the fact that everyone involved
LV¿UPO\IRFXVHGRQWKHVDPHJRDO
Looking ahead, it is my hope that we can continue to assist DIC in its efforts to build and maintain an ever-better security system througheffective interactive collaboration.
*1. In the context of information security, forensic services support the ability to resolve security incidents such as unauthorized access and information leaks.
*2. ('5LVDF\EHUVHFXULW\WHFKQRORJ\WKDWSURYLGLQJGHWHFWLRQDQGQRWL¿FDWLRQRIF\EHUDWWDFNVRQHQGSRLQWVLQDQHQYLURQPHQWVXFKDVFRPSXWHUVVHUYHUVDQGVPDUWSKRQHV

Consultant, Verizon Japan Ltd.

DIC Report 2024

129

Yasuki Kono

Corporate Governance
Basic Approach to Corporate Governance
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FRUSRUDWHJURZWKDQGH[SDQVLRQWKURXJKVRXQGDQGHI¿FLHQWPDQDJHPHQWZKLOHDWWKHVDPHWLPHJXDUDQWHHLQJWKHDSSURSULDWHPRQLWRULQJDQGDVVHVVPHQWRIDQG
motivation for management’s execution of business activities. With the aim of achieving a higher level of trust with its shareholders, customers and other stakeholders
and enhancing corporate value, the Group also promotes ongoing measures to reinforce its management system and ensure effective monitoring thereof.

■ Policy on Corporate Governance■ Corporate Governance Structure

DIC has prepared a Policy on Corporate Governance and publishedthe policy on its global website.

As a company with internal auditors, DIC has a Board of Directors andan Audit & Supervisory Board. The Company has also instituted an
H[HFXWLYHRI¿FHUV\VWHPDQGKDVHVWDEOLVKHGWKH1RPLQDWLRQ&RPPLWWHH
Remuneration Committee, Corporate Value Improvement Committee
Executive Committee, Sustainability Committee, Quality Committee andWork Style Revolution (WSR) 2020 Committee.

Policy on Corporate Governancehttps://www.dic-global.com/pdf/ir/management/governance/governance_en.pdf

Corporate Governance Structure
General Meeting of Shareholders
Appointment

Appointment
Audit

Board of Directors

Appointment

Audit & Supervisory Board

Nomination Committee
Remuneration Committee
Corporate Value Improvement Committee

Cooperation

Accounting auditors

Audit

Accounting audit【Execution of business】
President and CEO
Sustainability Committee
Quality Committee
WSR 2020 Committee

Cooperation

ReportCooperation

Executive Committee

Business groups, New Business Development Headquarters,
Production Management Unit, Technical Management Unit,
R&D Management Unit, headquartersʼ administrative units, sites,
Group companies

Internal audit❶ Board of Directors

Internal audit department

as necessary and consists of six directors, four of whom are independent
outside directors, with an independent outside director serving as chair.

From the perspective of making business decisions in a timely mannerand reinforcing corporate governance, the Board of Directors consists of
10 directors, four of whom are outside directors (two of whom are female,including one who is a foreign national). The Board of Directors typicallymeets once monthly to make decisions on matters delegated to it under
the Companies Act of Japan and on important business matters stated in
the regulations for meetings of the Board of Directors, as well as to receive
status reports on the execution of business activities and supervise theexecution of the business.

❹ Corporate Value Improvement Committee

The Corporate Value Improvement Committee was established in April
2024 to explore the role of companies in society from a high-level, broad
viewpoint and advise the Board of Directors from a third-party perspective
regarding the improvement of corporate value over the long term. The
committee consists of four outside directors and depending on the theme
invites external experts to serve as advisors.

❷ Nomination Committee❺ Executive Committee

To ensure objectivity in the nomination of directors, Audit & Supervisory%RDUGPHPEHUVDQGH[HFXWLYHRIILFHUVDPRQJRWKHUVWKH1RPLQDWLRQCommittee was established to provide recommendations to the Board of
Directors regarding the appointment and dismissal of directors, Audit &6XSHUYLVRU\%RDUGPHPEHUVDQGH[HFXWLYHRI¿FHUV7KHFRPPLWWHHPHHWV
as necessary and consists of six directors, four of whom are independent
outside directors, with an independent outside director serving as chair.

The Executive Committee was established as a body to advise on
important matters related to the execution of the DIC Group’s business.
The committee meets twice monthly in principle and consists of executive
RI¿FHUVDQGRWKHUVGHVLJQDWHGE\WKH%RDUGRI'LUHFWRUVIURPDPRQJWKH
President and CEO, the Executive Vice President, the heads of the units,
and the general managers of the management units and product divisions.
As part of the auditing process, one Audit & Supervisory Board member
also attends Executive Committee meetings. Details of deliberations at
meetings and the results thereof are reported to the Board of Directors.

❸ Remuneration Committee

To ensure objectivity in the determination of remuneration for directors
and executive officers, the Remuneration Committee was establishedand has been entrusted with responsibility for determining remuneration,DPRQJRWKHUVIRUGLUHFWRUVDQGH[HFXWLYHRI¿FHUV7KHFRPPLWWHHPHHWV❻ Sustainability Committe

The Sustainability Committee, which functions as an advisory body,formulates sustainability policies and activity plans, evaluates and

DIC Report 2024

130

Corporate Governancepublic accountant with extensive experience in corporate auditing.

promotes sustainability initiatives, and deliberates and makes decisions
regarding matters of importance when it deems this to be necessary.
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committee consists of executive officers and others designated by
the Board of Directors from among the President and CEO, Executive
Vice President, heads of the units, the general managers of the
management units and product divisions, and the managing directorsof regional headquarters. As part of the auditing process, one Audit& Supervisory Board member also attends Sustainability Committee
meetings. Details of deliberations at meetings and the results thereof
are reported to the Board of Directors.

➓ Internal Auditing Department

The internal auditing department comprises four local teams of
employees covering Japan, the Asia–Pacific region, the PRC, and
the Americas, Europe, the Middle East and Africa. The department
is charged with formulating annual audit plans based on quantitative
DQGTXDOLWDWLYHULVNDVVHVVPHQWV7KHVHSODQVDUH¿QDOL]HGZKHQWKH\receive approval from the Executive Committee and are reported to
the Audit & Supervisory Board, which provides instructions regarding
key concerns, and conducts internal audits, including monitoring theeffectiveness of internal controls.

❼ Quality Committee⓫ Accounting Auditors

In addition to reporting on the status and progress of quality
management, the Quality Committee functions as a deliberative bodyfor the DIC Group’s quality policy, principal initiatives and important
issues in Japan. In principle, the committee meets once quarterly and
FRQVLVWVRIH[HFXWLYHRI¿FHUVDQGRWKHUVGHVLJQDWHGE\WKH%RDUGRI
Directors from among the President and CEO, the Executive Vice
President, the heads of the units, and the general managers of the
management units and product divisions. As part of the auditing
process, one Audit & Supervisory Board member also attends Quality
Committee meetings. Details of deliberations at meetings and theresults thereof are reported to the Board of Directors.

The Company has engaged Deloitte Touche Tohmatsu LLC as its
independent auditors. The Company strives to ensure an environmentthat facilitates the accurate disclosure of information and fair auditing.
The Audit & Supervisory Board members, accounting auditors andinternal auditing department conduct audits from their respective
independent positions, but also liaise periodically to facilitate close
cooperation, thereby ensuring the effectiveness of audits.

Meeting Data
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1RPLQDWLRQ&RPPLWWHH1XPEHURIPHHWLQJVDWWHQGDQFH
5HPXQHUDWLRQ&RPPLWWHH1XPEHURIPHHWLQJVDWWHQGDQFH

❽ WSR 2020 Committee

The WSR 2020 Committee was established to deliberate work stylereform–related measures and investment plans, among others, with the aimof enhancing Group employee job satisfaction and productivity. In principle,
WKHFRPPLWWHHPHHWVRQFHTXDUWHUO\DQGFRQVLVWVRIH[HFXWLYHRI¿FHUVDQG
others designated by the Board of Directors from among the President
and CEO, the Executive Vice President, the heads of the units, and thegeneral managers of the management units and product divisions. Detailsof deliberations at meetings regarding matters of particular importance andthe results thereof are reported to the Board of Directors.

■ Rationale behind Current Corporate

Governance System
7KH&RPSDQ\KDVLQVWLWXWHGDQH[HFXWLYHRI¿FHUV\VWHPDPRYHDLPHGDW
separating decision making and implementation and thereby accelerating
business execution and clarifying responsibilities. The Company has
appointed four highly independent outside individuals to its Board of
Directors to reinforce its monitoring of business execution. The Company
DOVRKDVD1RPLQDWLRQ&RPPLWWHH5HPXQHUDWLRQ&RPPLWWHHDQGD
Corporate Value Improvement Committee, which include four outside
directors, to ensure objectivity in the nomination of, and in determining
remuneration for, directors and executive officers, as well as measures
to bolster corporate value. Four Audit & Supervisory Board members,
ZKLFKLQFOXGHRQHDWWRUQH\DQGRQHFHUWL¿HGSXEOLFDFFRXQWDQWDVRXWVLGH
members, conduct audits in liaison with the accounting auditors and theinternal auditing department. This structure ensures the effective functioningof the Company’s corporate governance system.

❾ Audit & Supervisory Board

The Audit & Supervisory Board comprises four members, including two who
are outside (one of whom is female). In principle, the Audit & Supervisory
Board meets once monthly. Board activities include debating and determining
auditing policies and auditing plans. Board members also report on the resultsof audits conducted, as well as attend important meetings, including those of
the Board of Directors, Executive Committee and Sustainability Committee,
meet with representative directors on a periodic basis to exchange
information and opinions, and collect business reports from directors,
H[HFXWLYHRI¿FHUVDQGHPSOR\HHV,QDGGLWLRQWKH&RPSDQ\KDVHVWDEOLVKHG
DQ$XGLW 6XSHUYLVRU\%RDUG0HPEHUV¶2I¿FHWRZKLFKLWDVVLJQVGHGLFDWHG
personnel to assist the Audit & Supervisory Board members in their duties.

■ System of Internal Controls

The Company’s four Audit & Supervisory Board members have extensive
H[SHULHQFHLQDQGNQRZOHGJHRI¿QDQFHDQGDFFRXQWLQJZKLFKWKH\DUHDEOH
to leverage in the performance of their duties. Full-time Audit & Supervisory%RDUGPHPEHU+LUR\XNL1LQRPL\DRYHUVDZFRUSRUDWHDFFRXQWVDWWKH
Company for many years and was general manager of the Accounting
Department and Head of the Finance and Accounting Unit. Full-time Audit &6XSHUYLVRU\%RDUGPHPEHU7RVKLQREX.LWDPXUDZDVLQFKDUJHRI¿QDQFHDQG
accounting for the Company and served as vice chairman and CFO of DIC(China) Co., Ltd. In addition to providing expertise in corporate law, outside$XGLW 6XSHUYLVRU\%RDUGPHPEHU.HLWD1DJXUDSURYLGHVWD[DFFRXQWLQJ
services pursuant to Article 51 of the Certified Public Tax Accountant Act.
Outside Audit & Supervisory Board member Keiko Kishigami is a certified❶ Status of the System of Internal Controls and theEstablishment of a Framework for Risk Management
In striving to conduct its operations in accordance with The DIC Way,
the DIC Group has prepared and operates a system of internal controls
based on the Companies Act of Japan to ensure the appropriateness of
its operations.
① The Company shall work to set forth the DIC Group Code ofBusiness Conduct as the standard regarding compliance, which
directors and employees should comply with, and to disseminate
the same.
② The Company shall, as part of its compliance activities, establish an

DIC Report 2024

131

Corporate Governanceelements, while individuals have been put in charge of efforts ateach site and within each Group company. These individuals workin close collaboration with legal counsel and the police to ensure theCompany’s responses are resolute. The Company has also preparedand distributed a manual on appropriate responses to such demands
with the aim of raising awareness among employees.

LQWHUQDOQRWL¿FDWLRQV\VWHPDVDFKDQQHODYDLODEOHIRUWKHHPSOR\HHVRI
WKH',&*URXSDQGVHWXSPXOWLSOHQRWL¿FDWLRQFKDQQHOVLQGHSHQGHQW
from channels used in the execution of business activities, thereby
creating a structure that can quickly respond to domestic and
LQWHUQDWLRQDOQRWL¿FDWLRQV
③ To ensure that the duties of directors are performed properly
and efficiently within the DIC Group, the Company shall establish
regulations for company organization and authority.
④ The Company shall formulate long-term management plans andannual budgets based on DIC Group management policies andmanagement strategies and, through dissemination of the same,
ensure common goals are shared within the DIC Group. The Company
shall make progress reports to the Board of Directors.
⑤ Information pertaining to the performance of duties by directors
shall be recorded, retained and managed appropriately in accordancewith the regulations for document management. The Company shallestablish regulations for systems of information management and shall
SUHSDUHDV\VWHPIRUSUHYHQWLQJOHDNDJHRIFRQ¿GHQWLDOLQIRUPDWLRQRI
the DIC Group.
⑥ The Company shall formulate a risk management policy and shallidentify, assess, prioritize and address any risks that may have a
VLJQL¿FDQWLPSDFWRQWKHPDQDJHPHQWRIWKH',&*URXS
⑦ The Company shall determine an administrative department foreach subsidiary from the standpoints of business execution andmanagement and shall supervise the execution of business by
dispatching a director to each subsidiary.
⑧ The Company shall clarify important matters, including those pertaining
to subsidiaries, that must be approved by or reported to the Company.

■ Outside Directors and Outside Audit &Supervisory Board Members❶ Number and Role of Outside Directors and Outside Audit &Supervisory Board Members
The Company currently has four outside directors and two outside
Audit & Supervisory Board members. As well as attending meetingsof the Board of Directors, the four outside directors—who haveextensive experience in corporate management—serve as members
RIWKH1RPLQDWLRQ&RPPLWWHHWKH5HPXQHUDWLRQ&RPPLWWHHDQGWKH
Corporate Value Improvement Committee, enabling them to provide
supervision with an independent point of view, thereby helping toreinforce the Company’s corporate governance. The two Audit &Supervisory Board members—one a certified public accountant andthe other an attorney—advise management of the DIC Group from anexpert, multifaceted and independent perspective, thereby helping toreinforce the auditing function.
❷ Independence Standards for Outside Directors and Outside Audit& Supervisory Board Members
7KH&RPSDQ\UHFRJQL]HVWKHQHHGWRDSSRLQWLQGLYLGXDOVWRWKHSRVLWLRQ
of outside director and outside Audit & Supervisory Board member,which are shown below. The Company’s outside directors and outside
Audit & Supervisory Board members are individuals who, based on
WKHVHVWDQGDUGVDUHXQOLNHO\WRKDYHFRQÀLFWVRILQWHUHVWZLWKRUGLQDU\shareholders and who comply with criteria for the independence of
directors and Audit & Supervisory Board members set by the Tokyo
Stock Exchange.

❷ Basic Policy toward Eliminating Demands by Antisocial Elements

This basic policy, which is outlined in the DIC Group Code of Business&RQGXFWLVWRVWDQG¿UPO\DJDLQVWDQWLVRFLDOHOHPHQWVDQGLQQRZD\
to acquiesce to demands presented by such elements. The General
Affairs and HR Department is responsible for coordinating efforts
to respond to extortion or other demands presented by antisocial

Independence Standards for Independent Outside Directors and Outside Audit & Supervisory Board Members
7KH&RPSDQ\GRHVQRWUHFRJQL]HLQGLYLGXDOVZLWKWKHFRQQHFWLRQVOLVWHGEHORZDVEHLQJLQGHSHQGHQWLQWKHDSSRLQWPHQWRILQGHSHQGHQWRXWVLGHRI¿FHUV
1 .Individuals who are executives of the Company or of one of its consolidated subsidiaries (collectively, the “DIC Group”) at present or have beenin the preceding 10 years
2. Individuals to whom any of the following items have applied in the preceding three years:❶ $SULQFLSDOEXVLQHVVSDUWQHURIWKH',&*URXS DEXVLQHVVSDUWQHUZLWKZKLFKWUDQVDFWLRQVLQDVLQJOH¿VFDO\HDUH[FHHGRIWKH',&*URXS¶V
consolidated net sales in that year) or an executive of a business partner to which this description applies❷ $QLQGLYLGXDOIRUZKLFKWKH',&*URXSLVDSULQFLSDOEXVLQHVVSDUWQHU DEXVLQHVVSDUWQHUZLWKZKLFKWUDQVDFWLRQVLQDVLQJOH¿VFDO\HDUH[FHHG
RIWKHSDUWQHU¶VFRQVROLGDWHGQHWVDOHVLQWKDW\HDU RUDQH[HFXWLYHRIDQHQWLW\WRZKLFKWKLVGHVFULSWLRQDSSOLHV❸$VKDUHKROGHUZKRKROGVRUPRUHRIWKHYRWLQJULJKWVLQWKH&RPSDQ\RUDQH[HFXWLYHRIDVDLGVKDUHKROGHUWRZKLFKWKLVGHVFULSWLRQDSSOLHV❹ $SULQFLSDOOHQGHUWRWKH',&*URXS DOHQGHUIURPZKLFKORDQVLQDVLQJOH¿VFDO\HDUH[FHHGRIWKH',&*URXS¶VWRWDODVVHWVLQWKDW\HDU RUan executive of a said lender to which this description applies❺ $QLQGLYLGXDOZKRKDVUHFHLYHGFRQWULEXWLRQVIURPWKH',&*URXSLQDVLQJOH¿VFDO\HDUWKDWH[FHHGPLOOLRQRUDQLQGLYLGXDOZKREHORQJVWR
an entity to which this description applies❻ An accountant who serves as an accounting auditor or accounting advisor for the DIC Group or an individual who is an employee, partner or
DVVRFLDWHRIDQDXGLW¿UPWRZKLFKWKLVGHVFULSWLRQDSSOLHV❼ Any individual to whom ❻GRHVQRWDSSO\EXWZKRKDVUHFHLYHGUHPXQHUDWLRQIURPWKH',&*URXSWKDWH[FHHGVPLOOLRQLQD\HDU
H[FOXGLQJUHPXQHUDWLRQUHFHLYHGDVDGLUHFWRURUFRUSRUDWHRI¿FHURIWKH',&*URXSDVDSURYLGHURISURIHVVLRQDOVHUYLFHVVXFKDVFRQVXOWLQJDFFRXQWLQJRUOHJDOVHUYLFHVRUDQLQGLYLGXDORIDQRUJDQL]DWLRQWKDWUHFHLYHGUHPXQHUDWLRQLQH[FHVVRIRILWVFRQVROLGDWHGQHWVDOHVLQD
¿VFDO\HDUDVFRPSHQVDWLRQIRUSURIHVVLRQDOVHUYLFHV❽$QH[HFXWLYHRIDQRWKHUFRPSDQ\LQWKHHYHQWWKDWDQH[HFXWLYHRIWKH&RPSDQ\LVDSSRLQWHGWRDQRXWVLGHRI¿FHUSRVLWLRQDWWKDWFRPSDQ\6SRXVHVDQGUHODWLYHVZLWKLQWKHVHFRQGGHJUHHRINLQVKLSRILQGLYLGXDOVOLVWHGLQRUDERYH
$QLQGLYLGXDOZKRVHWHUPDVDQRXWVLGHRI¿FHURIWKH&RPSDQ\H[FHHGVHLJKW\HDUVDIC Report 2024

132

Corporate Governance❸ Support System for Outside Directors and Outside Audit &of the Board of Directors. At present, three of the board’s members are
women (two of whom are female, including one who is a foreign national)
and one of whom is an outside Audit & Supervisory Board member.

Supervisory Board Members
Prior to meetings of the Board of Directors, relevant materials are
distributed to all outside directors and outside Audit & Supervisory%RDUGPHPEHUV,QDGGLWLRQWKHH[HFXWLYHRI¿FHUVLQFKDUJHSURYLGH
explanations of the agenda to outside directors, while full-time Audit& Supervisory Board members provide explanations as necessary tooutside Audit & Supervisory Board members.

Composition of the Board of Directors
In-house
Outside■ Other Initiatives to Enhance the Corporate

42.9%

Governance System

57.1%❶ Composition of the Board of Directors

The Board of Directors, which is chaired by the chairman andrepresentative director, resolves major operations-related issues. To
facilitate the effective oversight of management, the Board of Directors
comprises outside directors, who maintain independence, and otherindividuals having a thorough knowledge of the businesses of the
DIC Group, with consideration given to ensuring a balance among
QHFHVVDU\NQRZOHGJHH[SHULHQFHDQGFDSDELOLWLHV7KH1RPLQDWLRQCommittee selects candidates for the position of director based on
expertise and experience, as shown in the skills matrix. The Boardof Directors is of an appropriate scale based on the presumption that
authority will be delegated to management.

Composition of the Board of Directors
In-house

Outside

Total

Percentage ofoutside members

Directors

6

4

10



Audit &
Supervisory
Board members

2

2

4



Total

8

6

14



Given the increasingly global nature of the DIC Group’s businessactivities, the Company is also striving to diversify the composition
Skills Matrix for Directors and Audit & Supervisory Board Members
The table to the right is a skills matrix
VXPPDUL]LQJWKHNQRZOHGJHH[SHULHQFH
and capabilities of current directors andAudit & Supervisory Board members.

Expertise/Experience
Name

Position

Kaoru
Ino

Representative Director
Chairman of the Boardof Directors

●

●

●

Takashi
Ikeda

Representative Director
President and CEO

●

●

●

Shuji
FurutaRepresentative Director
Executive Vice President●●

Yoshihisa
Kawamura

Director●TakeshiAsai

Director
Senior Managing
Executive Ofﬁcer●

MasayaNakafuji

Director
Senior Managing
Executive Ofﬁcer

KunikoShoji

Outside Director

Masami
FujitaOutside Director

●

Shiro
Saito

Outside Director●

Corporate
Finance/
Legal Affairs/ International
Management Asset Building Risk Management Experience●●

Personnel/
Labor

●
●
●

●
●

●

●

●

●

●

●

●
●

Outside Director

Hiroyuki
Ninomiya

Audit & Supervisory
Board Member(Full-time)●

Toshinobu
Kitamura

Audit & Supervisory
Board Member(Full-time)

●

Keita
NaguraAudit & Supervisory
Board Member(Independent)

●

●

Keiko
Kishigami

Audit & Supervisory
Board Member(Independent)

●

●

●

●

●

●
●

●

●

●

●

●

●
●

●
●

●

Production/
Quality

●

●

Donna
Costa

Marketing/Sales/ Technology/
Purchasing
R&D

●

●

❷ Remuneration for Directors and Audit & Supervisory Board Members

IT/DX

●
●

●

Sustainability●●●

TXDOL¿FDWLRQVDELOLW\WRSHUIRUPGXWLHVDFWXDOSHUIRUPDQFHRIGXWLHVDQG
EDODQFHZLWKHPSOR\HHVDODULHV'LUHFWRUVUHFHLYHEDVLFUHPXQHUDWLRQbonuses, which are linked to consolidated operating results and
DFKLHYHPHQWRILQGLYLGXDOWDUJHWVDQGVWRFNFRPSHQVDWLRQZKLFKaims to strengthen awareness of the importance of contributing to themedium- to long-term improvement of operating results, as well as toRemuneration for directors is determined by the Remuneration
Committee in accordance with the policies for determining remuneration
for individual directors adopted by the Board of Directors and stipulated
in the Executive Regulations, with consideration given to such factors
as prevailing market rates, the Company’s operating results, individual

DIC Report 2024

133

Corporate Governancethe enhancement of corporate value, and of sharing the same objectives
DVVKDUHKROGHUV'LUHFWRUVZKRVHUYHFRQFXUUHQWO\DVH[HFXWLYHRI¿FHUV
are eligible for bonuses and stock compensation, in addition to basic
remuneration, while other directors and outside directors are eligible forbasic remuneration only.

Remuneration for Audit & Supervisory Board members consists of basic
remuneration only, which is determined in accordance with internal rules
established by the Audit & Supervisory Board, with consideration given
to ensuring a balance with remuneration for directors and to prevailingmarket rates.

Remuneration for Directors and Audit & Supervisory Board Members in Fiscal Year 2023
Total
remuneration(Millions of yen)

Composition of remuneration (Millions of yen)Basicremuneration

Bonuses

Stockcompensation

Number of directors and Audit &Supervisory Board members

Directors (excluding outside directors)

290

265

4

21

6

Audit & Supervisory Board members(excluding outside Audit & Supervisory Board members)

60

60

―

―

2

2XWVLGHRI¿FHUV

77

77

―

―

7

❸ Evaluating the Effectiveness of the Board of Directors

targets for percentage of management positions in Japan occupied
by women and percentage of employees in Japan accounted for by
IRUHLJQQDWLRQDOVSXEOLVKLQJDFWXDO¿JXUHVLQWKHLQWHJUDWHGUHSRUW

7KH&RPSDQ\DQDO\]HVDQGHYDOXDWHVWKHHIIHFWLYHQHVVRIWKH%RDUG
of Directors annually via a self-evaluation conducted by directors and$XGLW 6XSHUYLVRU\%RDUGPHPEHUV,Q¿VFDO\HDUDOOGLUHFWRUV
and Audit & Supervisory Board members were surveyed regarding selfevaluations, Board administration and other issues, and interviewed
RQDQLQGLYLGXDOEDVLVZLWKUHVSRQVHVDQDO\]HGDQGHYDOXDWHGE\WKH
Board of Directors.

The Company’s policy for fostering human resources and creating work
environments in a manner that ensures diversity is to “promote efforts
to ensure diverse human resources are in the right places and the
FUHDWLRQRIZRUNHQYLURQPHQWVWKDWHQDEOHHPSOR\HHVWRPD[LPL]HWKHLU
capabilities.” A director has been put in charge of diversity to create an
HIIHFWLYHFRQ¿JXUDWLRQ

Owing to the aforementioned efforts, it was confirmed that free andlively discussions had been held, led by outside directors and outside
Audit & Supervisory Board members, and that appropriate deliberations
had been conducted by the Board of Directors. In addition, regarding
LVVXHVLGHQWL¿HGLQWKHHYDOXDWLRQFRQGXFWHGLQ¿VFDO\HDULWZDV
judged that discussions pertaining to the progress of the Company’s',&9LVLRQORQJWHUPPDQDJHPHQWSODQDQGRIPDMRULQYHVWPHQW
projects had been enhanced through improvements such as thecreation of multiple opportunities for explanation and deliberation,
increased opportunities to hear explanations from executive officers
who are foreign nationals, and the restructuring of the Company’s risk
management system. Accordingly, the effectiveness of the Board of'LUHFWRUVZDVFRQ¿UPHG

In its long-term management plan, the Company identifies threestrategic priorities for reinforcing management of human capital: Foster
human resources, ensure mobility (hiring, retention and succession),
DQGLPSURYHHQJDJHPHQWDQGRUJDQL]DWLRQDOFRKHVLYHQHVV7KH:65
2020 Committee targets the development of new work styles with theobjective of enhancing productivity and job satisfaction. The status of
measures implemented under this project is disclosed in the integrated
report.
❷ Sustainability Initiatives

7KH&RPSDQ\SURPRWHVVXVWDLQDELOLW\LQLWLDWLYHVLQOLQHZLWKNH\WKHPHVWKDWUHÀHFWLWVEHOLHIWKDWDVDPDQXIDFWXUHURI¿QHFKHPLFDOV
it has a responsibility to address ESG-related issues, and discloses
the progress thereof in the “Overview of Sustainability” section of its
integrated report.

In fiscal year 2024, DIC will seek to further bolster the Board of'LUHFWRUV¶HIIHFWLYHQHVV$VZHOODVUHYLVLQJ',&9LVLRQDQG
reviewing progress of the plan’s priority measures, the Company will
HQFRXUDJHXQGHUVWDQGLQJRILWVFXUUHQWVWDWXVE\RUJDQL]LQJUHJXODU
opportunities for outside directors to provide overviews of individual
businesses, among others. The Company will also continue to discuss
VSHFL¿FGLVWLQFWLYHO\',&DVSHFWVRILWVFRUSRUDWHJRYHUQDQFHV\VWHP
as part of its ongoing effort to promote improvement.

,Q-DQXDU\WKH&RPSDQ\UHDI¿UPHGLWVVXSSRUWIRU5HVSRQVLEOH
Care management by signing the CEO’s Declaration of Support for the
Responsible Care Global Charter, while in December 2010 it became
DVLJQDWRU\WRWKH8QLWHG1DWLRQV*OREDO&RPSDFW 81*& ,QDGGLWLRQhaving declared its support for the Task Force on Climate-related
Financial Disclosures (TCFD) in May 2019, in April 2022 DIC joined the-DSDQ%XVLQHVV,QLWLDWLYHIRU%LRGLYHUVLW\ -%,% DQGLQ1RYHPEHUIRUPXODWHGLWVRZQELRGLYHUVLW\SROLF\,Q)HEUXDU\WKH&RPSDQ\
VHWDWDUJHWIRUDFKLHYLQJFDUERQQHXWUDOLW\E\¿VFDO\HDUZKLFKUHFHLYHGRI¿FLDOHQGRUVHPHQWIURPWKH6%7LDVEHLQJFRQVLVWHQWZLWKlevels that climate science says are necessary to limit average global
warming to well below 2°C above pre-industrial levels.

■ Other Initiatives❶ Ensuring Diversity in the Promotion of Core Human Resources

DIC works to foster a corporate culture that draws on its understanding
and respect for diversity to produce creative ideas and to incorporate
the concept of diversity into management, thereby creating workplaces
that enhance job satisfaction for employees. Respect for diversity isalso stipulated in the Company’s Basic Sustainability Policy.
As measurable targets for ensuring diversity, the Company has set

DIC Report 2024

134

Corporate Governance

ChangeYear&KDQJHVWHUPRIRI¿FHRIGLUHFWRUVIURPWZR\HDUVWRRQH\HDU

2002$GRSWVH[HFXWLYHRI¿FHUV\VWHP

2004

Abolishes system of retirement allowances for executives

2005

Establishes committee to determine compensation for directors andAudit & Supervisory Board members

2006

Appoints two outside directors

2008

Establishes Remuneration Committee and Compensation Committee

2009

Establishes Sustainability Committee

2014

Formulates Policy on Corporate Governance (including
independence standards for outside directors and outside Audit &Supervisory Board members)

2016

Increased number of outside directors from two to three

2017

Adopts system of performance-based stock compensation

2017

Establishes Quality Committee

2020

Establishes WSR 2020 Committee

2021

Increased number of outside directors from three to four2024

DIC Report 2024

135

Risk Management
Basic Approach to Risk Management
7KH',&*URXSZRUNVWRH[SDQGLWVRSHUDWLRQVLQOLQHZLWKWKHJURZWKVFHQDULRVHWIRUWKLQWKH',&9LVLRQORQJWHUPPDQDJHPHQWSODQAt the same time, in this age of unprecedented uncertainties, effectively managing risks is crucial to increasing corporate value. The GroupVWULYHVWRDGGUHVVFKDQJHVLQLWVRSHUDWLQJHQYLURQPHQWDQGWKHGLYHUVL¿FDWLRQRIULVNVLQDQDSSURSULDWHDQGÀH[LEOHPDQQHU7KH*URXS
also promotes initiatives aimed at promptly grasping the impact of latent risks on its businesses, preventing such risks from manifesting andminimizing the impact if they do.

Risk Management Policy
Based on the aforementioned basic approach, the DIC Group has established a risk management policy. This policy has two components.
❶ 7KH',&*URXSVKDOOLGHQWLI\DVVHVVSULRULWL]HDQGDGGUHVVDQ\ULVNVWKDWPD\KDYHDVLJQL¿FDQWLPSDFWRQLWVPDQDJHPHQWEDVHGRQSRWHQWLDOLPSDFWRQPDQDJHPHQWDQGOLNHOLKRRGRIRFFXUUHQFHDQGUHVSRQGLQDGHOLEHUDWHV\VWHPDWLFDQGHI¿FLHQWPDQQHU
❷ 7KH',&*URXSVKDOOHVWDEOLVKD*URXSULVNPDQDJHPHQWV\VWHPDQGHQVXUHLWVHIIHFWLYHQHVVE\UHSHDWLQJWKHSODQGRFKHFNDFW 3'&$ F\FOH■ Framework for Risk Management■ Risk Management Initiatives

Under the guidance of the director in charge of risk
management, the DIC Group has established the Risk
Management Working Group, a subordinate entity of the
Sustainability Committee, as part of its effort to strengthen
its comprehensive framework for risk management.

At the end of each fiscal year, directors and business grouppresidents conduct a risk assessment, the results of which
are compiled and analyzed by the Risk Management Working
Group. The working group’s findings are reported to the
Sustainability Committee and the Board of Directors at the
beginning of the subsequent fiscal year and significant risks
IDFLQJWKH*URXSLQWKHQHZSHULRGDUHLGHQWL¿HG(DFKRIWKHVH
significant risks is assigned an owner, that is, the division or
department responsible for implementing countermeasures.
Risk owners report the progress and outcome of their efforts, aswell as any resulting changes to the risk, among others, to the
Risk Management Working Group as necessary. The working
group responds by providing the risk owner with critical support,
evaluating and verifying the results of countermeasures,and suggesting corrections and improvements. The resultsof these efforts are reported to the Sustainability Committee
DQGWKH%RDUGRI'LUHFWRUVDW¿VFDO\HDUHQGEDVHGRQZKLFKchallenges and targets to be incorporated into the following
year’s sustainability activity plan. The risk management
framework is also honed or modified as appropriate, laying
the foundation for the subsequent year’s risk management
assessments. Changes to the status of risks resulting fromrisk management initiatives, as well as from changes in theoperating environment, are disclosed publicly as appropriate in
the annual securities report, among others.

Board of Directors

Risk communication
Sustainability Committee
Director in charge of risk management
Risk Management Working Group
Chair: Director in charge of ESG
Members: Business group presidents,
administrative unit heads,
othersSecretariat: Legal Department,
Accounting Department,Internal Control Department,
othersDIC Group company
executive officers(Risk owners)

Working groups
Risk communication(Established as needed)

Overview of Risk Management
Led by the Risk Management Working Group, the DIC uses the PDCA cycle on an annual basis to enhance the effectiveness of the DIC Group’ s risk management.
Plan

Set targets for
initiatives

Compile and analyzerisk assessment results
Management review

Gather information, promote awarenessand foster a good risk culture

Do

Check

Identify
significant risks
Assign risk owners

Report on/confirm
countermeasures
implemented

Evaluate, verify,
modify and improve

Formulatecountermeasures

Prevent manifestation/minimize impact

Management review
Determine challenges
for the subsequentfiscal year

Public-facing explanation

DIC Report 2024

136

ActionPlan

Do

'LUHFWRUV$XGLW 6XSHUYLVRU\%RDUG0HPEHUVDQG([HFXWLYH2I¿FHUV(As of May 2024)| Directors

1

Kaoru Ino

Chairman of the Board of Directors

2

Takashi Ikeda

Representative Director

3

Shuji Furuta

Representative Director

4

Yoshihisa Kawamura

Director

5

Takeshi Asai

Director

6

Masaya Nakafuji

Director

7

Kuniko Shoji

Director*

8

Masami Fujita

Director*

9

Shiro Saito

Director*

10

9

7

6

8

10

5

3

1

2

4

Donna Costa

Director** Outside| Audit & Supervisory Board Members
1

Hiroyuki Ninomiya

Full-Time Audit & Supervisory Board Member
2

Toshinobu Kitamura

Full-Time Audit & Supervisory Board Member
3

Keita Nagura

Audit & Supervisory Board Member*
4

Keiko Kishigami

Audit & Supervisory Board Member** Outside

3

1

2

4

| 2XWVLGH$XGLW 6XSHUYLVRU\%RDUG0HPEHU3URÀOHV| 2XWVLGH'LUHFWRU3URÀOHV
Masami Fujita

Kuniko Shoji

Keita Nagura

April 2019 Executive Vice President, SHINKO ELECTRIC INDUSTRIES CO., LTD.
June 2019 Representative Director and President, SHINKO ELECTRIC INDUSTRIES CO., LTD.
June 2021 Representative Director and Chairman, SHINKO ELECTRIC INDUSTRIES CO., LTD.

June 2004 Executive Officer, Terumo Corporation
June 2010 Director and Senior Executive Officer, Terumo Corporation
June 2017 Advisor, Terumo Corporation

April 1998

Shiro Saito

Donna Costa

Keiko Kishigami

September 2015 Executive Officer and Corporate Senior Vice President, Toshiba Corporation
June 2018
Executive Officer and Corporate Executive Vice President, Toshiba Corporation
April 2020
Executive Fellow, Toshiba Corporation

April 2017

December 1997 Partner, Century Audit Corporation (currently Ernst & Young ShinNihon LLC)
May 2004
Representative Partner (currently Senior Partner), Ernst &Young ShinNihon (currently Ernst & Young ShinNihon LLC)
September 2018 Board Member, WWF Japan

President, Mitsubishi Chemical Holdings Europe GmbH(Currently, Mitsubishi Chemical Europe GmbH)
April 2017 Executive Officer, Mitsubishi Chemical Holdings Europe GmbH(Currently, Mitsubishi Chemical Europe GmbH)
October 2020 Director, Gelest, Inc.

DIC Report 2024

137

Registered as an attorney (Osaka Bar Association); Joined Yodoyabashi Godo Law Office(currently Yodoyabashi & Yamagami Legal Professional Corporation)
February 2002 Changed registration as an attorney to the Dai-Ichi Tokyo Bar Association

Directors, Audit & Supervisory Board Members
DQG([HFXWLYH2IÀFHUV| ([HFXWLYH2IÀFHUVTakashi Ikeda

Shuji Furuta

Masaya Nakafuji

Takeshi Asai

Masamichi Sota

President and CEO

Executive Vice President

Senior Managing Executive
Officer

Senior Managing Executive
OfficerManaging Executive Officer

Head of General Affairs and Legal Unit
In Charge of Risk Management,
Osaka Branch and Nagoya Branch

Head of Finance and Accounting Unit
CFO
Chairman of the Board, Sun Chemical
Corporation

Assistant to President and CEO
Head of Corporate Strategy Unit
In Charge of Kawamura Memorial
DIC Museum of Art

President, Packaging & Graphic
Business Group
General Manager, Printing Material
Products Div.

Kiyofumi Takano

Yoshinari Akiyama

Myron Petruch

Koji Asada

Toshiro Ariga

Managing Executive Officer

Managing Executive Officer

Managing Executive Officer

Managing Executive Officer

Managing Executive Officer

General Manager, New Business
Development Headquarters

President, Color & Display Business Group
General Manager, Color Material
Products Div.

President and CEO,Sun Chemical Corporation

Head of IT Strategy Unit

In Charge of Technical Management
Unit and R&D Management Unit
General Manager,
Technical Management Unit

Yuji Kikuchi

Paul Koek

Masahiro Kikuchi

Yuji Morinaga

Tomoyuki Tanaka

Managing Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

President, Functional Products Business Group
General Manager, Performance Material
Products Div.

Managing Director, DIC Asia PacificPte Ltd

Chairman, DIC (China) Co., Ltd.
Chairman, DIC (Shanghai) Co., Ltd.

General Manager, Packaging Material
Products Div.

General Manager, Corporate Planning
Dept.

Kuniko Torayama

Masaaki Kusaka

Takao Iribe

Yoshiharu Ootoshi

Kevin Michaelson

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Head of ESG Unit
In Charge of Diversity

General Manager, Legal Dept.

Head of SCM Unit
General Manager, Corporate Supply
Chain Dept.

General Manager, Production Management
Unit

Vice President and CFO,Sun Chemical Corporation

Hisashi Komoto
Executive Officer
General Manager, Composite Material
Product

DIC Report 2024

138

A Message from an Outside Director

Having appointed a new president in a move aimed at driving reform,
we are stepping up efforts to generate both social and economic value.
Masami Fujita
Outside Director
June 2012
June 2019
June 2021

Vice President, Fujitsu Limited
Representative Director and President, SHINKO ELECTRIC INDUSTRIES CO., LTD.
Representative Director and Chairman, SHINKO ELECTRIC INDUSTRIES CO., LTD.

work earnestly and with a sense of duty.

■ Working Together as a Team Under the New

President to Drive Reform

Even in the early days of my tenure as an outside director, I was impressed
E\WKHZD\LQGLYLGXDOH[HFXWLYHRI¿FHUVZHUHDEOHWRH[SUHVVWKHLURSLQLRQ
candidly to the chairman, the president and other directors, and engage
in lively debate. In other words, I believe that DIC actively seeks to attract
human resources with a keen perspective on corporate management. DIC
also has unique technologies that distinguish it from its competitors. These
technologies, which are underpinned by employees’ commitment to productquality and an open corporate culture that encourages thinking outside thebox, are key competitive advantages for the Company.

In January 2024, Takashi Ikeda was appointed President and CEO of
DIC to guide the Company through the next phase of its evolution. Prior
to this, the Nomination Committee, which is responsible for providing
recommendations regarding the appointment of the president, deliberated
candidates in a process that incorporates both internal and external
perspectives in a balanced manner, to ensure objectivity in its nomination.
The Committee comprises six directors, four of whom currently are
independent outside directors, with an independent outside director serving
as chair.

DIC’s vision statement is “We improve the human condition by safely
delivering color and comfort for sustainable prosperity—Color & Comfort.” I¿QGP\VHOIUHODWLQJSDUWLFXODUO\WRWKLVVWDWHPHQWZKLFKDFFXUDWHO\DUWLFXODWHV
the Company’s determination to provide products that add vivid color andcontribute to physical well-being to the lives of people everywhere.

Discussions regarding the appointment of the new president were carriedout over an extensive period, beginning prior to fiscal year 2023, when
I became an outside director of the Company. At the very root of these
discussions was recognition of the need to choose a leader capable ofbringing out change in the harsh post-pandemic operating environment,
while at the same time seeking to build a new business portfolio, and topromote succession planning to ensure a management team equipped tosupport the president’s efforts. Eventually, Mr. Ikeda’s diverse background,which includes extensive time spent outside Japan, a career in technology,
and an MBA from a U.S. university, and his broad business experience,
which straddles multiple areas of DIC’s operations, led to the conclusionthat he was the best candidate. It is my hope that as president, Mr. Ikeda
ZLOOGHPRQVWUDWHKLVPDQDJHPHQWSUR¿FLHQF\IURPDORQJWHUPSHUVSHFWLYH
striving not only to achieve short-term goals but also to explore ways tobetter maximize the Company’s considerable strengths.

■ Evolving as a Company that Generates Both Socialand Economic ValueI believe that enhancing sustainability initiatives and reinforcing humancapital management remain important challenges for DIC. The Company
has a broad range of distinctive technologies and capabilities with thepotential to contribute to sustainability. (For example, it is currently working
with FP Corporation, which is headquartered in the city of Fukuyama,
in Hiroshima Prefecture, to establish a closed-loop recycling system forpolystyrene food trays.) Going forward, it will be necessary to leveragesuch technologies and capabilities to build business models that generate
both social and economic value. To reinforce human capital management, itis necessary to strengthen diversity initiatives to build a truly global humanresources portfolio.

■ Key Competitive Advantages: An Open Corporate Culture

and Employees’ Commitment to Product Quality
I believe that the Board of Directors of DIC hold free, open and high-level
discussions, and rate the effectiveness of the Company’s governance as
high. The Company as a whole, not just the Board of Directors, has anopen corporate culture and my impression is that employees approach their

Looking ahead, I pledge to continue drawing on my experience in corporateand human resources management to assist DIC as it strives to bolster its
corporate value and achieve sustainable growth.

DIC Report 2024

139

Financial Report for Fiscal Year 2023
■ Analysis of Results of Operations
Overview of Operating Results(Billions of yen)

FY2022
Net sales

FY2023

Change (%)

Change (%)
Local currency basis

1,054.2

1,038.7

-1.5%

-5.1%

Operating income

39.7

17.9

-54.8%-51.0%

Ordinary income

39.9

9.2

-76.9%-Net income (loss) attributable to owners of the parent

17.6(39.9)Loss-

EBITDA*

85.5

30.8

-63.9%-¥/US$1.00 (Average exchange rate)

130.59140.51

7.6%-¥/EUR1.00 (Average exchange rate)

137.71151.98

10.4%-* EBITDA: Net income attributable to owners of the parent + Total income taxes + (Interest expenses – Interest income) + Depreciation and amortization

In the fiscal year ended December 31, 2023, consolidated net sales
edged down 1.5%, to ¥1,038.7 billion. Uncertainties persisted in the
global economy, owing to such factors as the continued pursuit of
inflation-curbing monetary policies in the United States and Europe,
geopolitical risks attributable to the protracted crisis in Ukraine and aslowing economic recovery in the PRC caused by a slumping real estate
VHFWRUDPRQJRWKHUVDVDUHVXOWRIZKLFKGHPDQGIRUJRRGVÀDJJHGLQ
all regions and efforts to adjust inventories were seen in various industry
sectors. Against this backdrop, demand trends in core customer industries
varied. In the area of digital materials, used principally in electrical andelectronics equipment and in displays, demand picked up, underpinnedby the completion of inventory adjustments by display manufacturers.
The semiconductor market showed signs of bottoming out after a lengthy
slump, but a full-scale demand revival remained elusive. In industrial
materials,* used primarily in mobility solutions, an upturn in vehicle sales
was seen worldwide, contributing to the resolution of surplus inventories
of materials for use in automobiles across the supply chain, but demand
recovery remained slow. Reflecting these trends, and notwithstanding
efforts in all segments to pass on rising costs by adapting sales prices,conditions remained challenging in terms of sales volume, particularly in
the Color & Display segment—which saw sagging shipments of pigments
for coatings and for plastics, among others, a consequence of prolonged
economic stagnation in Europe, a leading market for these products, andfalling demand for consumer goods caused by rising prices in the

United States—and in the Functional Products segment, where shipments ofhigh-value-added digital materials and industrial materials declined overall.
Operating income fell 54.8%, to ¥17.9 billion. This sharp decrease wasdespite efforts in all segments to adjust sales prices, together with a gainin the Packaging & Graphic segment, and was largely a result of sinking
shipments of pigments, mainly those for coatings and for plastics, in the
Color & Display segment, and of high-value-added products, including
those in the Functional Products segment. Another contributing factor was
the temporary suspension of operations at certain production sites in the
United States and Europe, a move aimed at paring inventories, notably
those of pigments for coatings and for plastics.
Ordinary income, at ¥9.2 billion, dropped 76.9%.
Net loss attributable to owners of the parent was ¥39.9 billion. This wasdue to a steep increase in extraordinary losses, owing primarily to a ¥19.7
billion impairment loss on goodwill recognized in the Color & Display
segment in relation to the Colors & Effects pigments business, acquired inJune 2021.
EBITDA declined 63.9%, to ¥30.8 billion.
* DIC uses the term “industrial materials” to describe products for use in mobility solutions, namely,
automobiles, railroads and shipping, and for general industrial applications such as construction
equipment and industrial machinery.

Segment Results(Billions of yen)

Net sales

Operating income (loss)

Change Change (%)(%)[Local currency basis]

Change (%)

FY2022

FY2023

Change
(%)

-1.9%

20.3

22.0

8.1%

11.4%

-8.4%

-14.1%

5.1

(8.9)

Loss

Loss

305.9

-3.0%

-5.0%

23.6

15.4

-34.6%-36.4%(42.4)(36.4)

-

-

(9.4)

(10.6)--

1,054.2

1,038.7

-1.5%

-5.1%

39.7

17.9

-54.8%-51.0%FY2022

FY2023

Packaging & Graphic

533.0

541.9

1.7%

Color & Display

248.2

227.3

Functional Products

315.4

Others, Corporate and eliminations
Total

DIC Report 2024

140

[Local currency basis]

Financial Report for Fiscal Year 2023

Packaging & Graphic
FY2022

FY2023

Change (%)[Local currency basis]

Change (%)

Net sales¥533.0 billion¥541.9 billion

1.7%

-1.9%

Operating income¥20.3 billion¥22.0 billion

8.1%

11.4%

and a decline in shipments amid inventory adjustments and other measures
implemented in response to rising prices and interest rates in the United Statesand Europe.

Segment sales advanced 1.7%, to ¥541.9 billion. Shipments of packaging inks,
XVHGFKLHÀ\RQSDFNDJLQJIRUIRRGSURGXFWVZHUHXSLQWKH35&XQGHUSLQQHG
by efforts to cultivate new customers, but down overall as rising prices
dampened demand for consumer goods in other regions. Nonetheless, salesof these products were essentially level thanks to successful efforts to adapt
sales prices worldwide. Sales of publication inks, which center on inks forcommercial printing and news inks, decreased, despite moves to adjust sales
prices in all regions, which lifted sales in Japan, as dwindling demand, among
others, pushed shipments down in the Americas and Europe, as well as in Asia.
Sales of jet inks, used in digital printing, were bolstered by the positive impactof a weak yen on sales denominated in other currencies, which countered
the absence of a recovery in demand, especially from overseas customers,

Segment operating income rose 8.1%, to ¥22.0 billion. In Japan, shipmentsof high-value-added jet inks deteriorated, although efforts to counter higher
costs in the area of packaging inks and publication inks by adapting sales
prices progressed. Operating income overseas was up overall, buttressedby increased shipments of packaging inks and publication inks in the PRC,
which boosted results in Asia, together with moves to maintain sales prices for
packaging inks and publication inks in the Americas and Europe.

Color & Display
FY2022
Net sales
Operating income

FY2023

Change (%)[Local currency basis]

Change (%)¥248.2 billion¥227.3 billion-8.4%-14.1%¥5.1 billion¥(8.9) billion

Loss

Loss

of inventory adjustments by customers, and shipments of pigments for use inbuilding materials remained sluggish in Europe, a primary market for theseproducts, owing to the protracted crisis in Ukraine.

Segment sales declined 8.4%, to ¥227.3 billion. Shipments of pigments for
FRDWLQJVDQGIRUSODVWLFVZKLFKDFFRXQWIRUDVLJQL¿FDQWSURSRUWLRQRIVHJPHQW
sales, were down overall. Factors behind this result included falling demandand ongoing moves by customers to curtail inventories, both consequencesof slowing economic growth in Europe, a leading market for these products,
and rising prices in the United States. Among high-value-added products,
VKLSPHQWVRISLJPHQWVIRUFRORU¿OWHUVXVHGLQGLVSOD\VZHUH¿UPIROORZLQJWKH
completion of inventory adjustments by display manufacturers. In pigments forcosmetics, sales were weak as shipments in the Americas and Europe werelistless, hindered by rising prices, although demand in Asia rallied, bolsteredby a delayed return to pre-COVID-19 lifestyles. In pigments for specialty
applications, shipments of products for agricultural use tumbled, a consequence

The segment reported an operating loss of ¥8.9 billion. This was despite steady
VKLSPHQWVRISLJPHQWVIRUFRORU¿OWHUVDQGIRUFRVPHWLFVDQGZDVDWWULEXWDEOH
to a decrease in shipments of pigments for coatings and for plastics, particularly
in Europe, combined with stagnant shipments of high-value-added pigments
for specialty applications. The segment loss was also due to the temporary
suspension of operations at certain production sites in the United States andEurope, a move aimed at paring inventories, notably those of pigments forcoatings and for plastics.

Functional Products
FY2022

FY2023

Change (%)[Local currency basis]

Change (%)

Net sales¥315.4 billion¥305.9 billion

-3.0%

-5.0%

Operating income¥23.6 billion¥15.4 billion-34.6%-36.4%

Guangdong DIC TOD Resins Co., Ltd., a coating resins manufacturer in the
PRC acquired in July 2022. Sales of PPS compounds advanced, despite
shipments for use in automobiles remaining in recovery mode, bolstered by the
positive impact of factors such as sales price adjustments.

Segment sales dipped 3.0%, to ¥305.9 billion. Sales of digital materials,
used principally in electrical and electronics equipment and in displays, were
down as shipments of epoxy resins—the foremost application for which
is semiconductors—failed to fully recover, despite signs that the market
had bottomed out. Sales of industrial-use adhesive tapes, used mainly insmartphones and other mobile devices, were boosted by steady efforts to lockin demand. Sales of industrial materials, used primarily in mobility solutions,rose. This was despite a slower-than-expected recovery in shipments ofmaterials for use in automobiles as the resolution of surplus inventories acrossthe supply chain progressed, and was thanks to the addition of the sales of

Segment operating income fell 34.6%, to ¥15.4 billion. This substantial decrease
was despite efforts to adapt sales prices for all products to pass on cost
LQFUHDVHVDQGUHÀHFWHGDGHFOLQHLQVKLSPHQWVRIKLJKYDOXHDGGHGSURGXFWVused in electrical and electronics equipment and in mobility solutions.

DIC Report 2024

141

Financial Report for Fiscal Year 2023

■ Consolidated Financial Statements
Consolidated Balance Sheet

As of December 31, 2022 and 2023

（Millions of yen）

2022

2023

AssetsCurrent assets
Cash and deposits

63,38087,533

Notes and accounts receivable—trade247,520

225,1480HUFKDQGLVHDQG¿QLVKHGJRRGV

182,572

167,427

Work in process

11,656

11,250Raw materials and supplies

116,522

94,157

Other

42,432

38,623

Allowance for doubtful accounts(4,116)(3,951)

659,967

620,188

330,046

350,676

Accumulated depreciation(201,304)(217,614)

Buildings and structures, net

128,742

133,062

Machinery, equipment and vehicles

497,171

533,849

Accumulated depreciation(378,061)(405,236)

Machinery, equipment and vehicles, net

119,110

128,613

7RROVIXUQLWXUHDQG¿[WXUHV80,71486,607

Accumulated depreciation(63,626)(68,784)

7RROVIXUQLWXUHDQG¿[WXUHVQHW

17,08917,822

Land

66,353

66,488Construction in progress

22,242

27,907

Total property, plant and equipment

353,536

373,892

Goodwill

33,641

17,782

Software

10,277

14,298Customer-related assets

9,609

11,639Other

25,23825,198

Total intangible assets

78,764

68,916

Investment securities

63,81963,071

Deferred tax assets

16,41916,593

1HWGH¿QHGEHQH¿WDVVHWV

64,38378,961

Other

24,84923,366(98)(98)

169,371

181,893

601,671624,701

1,261,637

1,244,889

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

Intangible assets

Investments and other assets

Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

DIC Report 2024

142

Financial Report for Fiscal Year 2023

Consolidated Balance Sheet

As of December 31, 2022 and 2023

（Millions of yen）

2022

2023

Liabilities
Current liabilities
Notes and accounts payable—trade154,964

140,089

Short-term loans payable

26,056

12,405

Commercial papers

30,00033,000Current portion of bonds payable

30,00030,000Current portion of long-term loans payable

35,92833,897

Lease obligations

4,607

4,656

Income taxes payable

5,650

2,870

Provision for bonuses

5,555

5,037

Other

97,13386,794

389,892

348,749

Bonds payable

110,000

95,000Long-term loans payable

260,259

308,231

Lease obligations

12,47911,769Deferred tax liabilities

14,443

19,351

1HWGH¿QHGEHQH¿WOLDELOLWLHV

28,742

36,056

Asset retirement obligations

8,449

9,480

Other

16,286

16,986

Total non-current liabilities

450,657

496,873

Total liabilities

840,549

845,622

Capital stock

96,55796,557

Capital surplus

94,234

94,234Retained earnings

222,796

173,292

Treasury shares(1,785)(1,586)

411,802362,497

Valuation difference on available-for-sale securities

5,360

5,542

Deferred gains or losses on hedges

694

248

Foreign currency translation adjustment(17,286)

12,5595HPHDVXUHPHQWVRIGH¿QHGEHQH¿WSODQV(13,573)(16,910)

Total accumulated other comprehensive income(24,805)

1,440

Non-controlling interests

34,09135,330Total net assets

421,088399,267

1,261,637

1,244,889

Total current liabilities
Non-current liabilities

Net Assets
Shareholders’ equity

Total shareholders’ equity
Accumulated other comprehensive income

Total liabilities and net assets

DIC Report 2024

143

Financial Report for Fiscal Year 2023

Consolidated Statement of Income

Years ended December 31, 2022 and 2023

（Millions of yen）

2022
Net sales
Cost of sales*URVVSUR¿W
Selling, general and administrative expenses
Freightage and packing expenses
Employees’ salaries and allowances
Provision of allowance for doubtful accounts
Provision for bonuses
5HWLUHPHQWEHQH¿WH[SHQVHVResearch and development costs
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Foreign exchange gains(TXLW\LQHDUQLQJVRIDI¿OLDWHV
Foreign exchange losses
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Gain on sales of non-current assets
Insurance income
Settlement income
Total extraordinary income
Extraordinary losses
Impairment losses
Severance costs
Loss on disposal of non-current assets
Provision for loss on withdrawal from business
Loss on withdrawal from businessTotal extraordinary losses
Income loss before income taxes
Income taxes—current
Income taxes—deferred
Total income taxes
Net income loss
Net income attributable to non-controlling interests
Net income loss attributable to owners of the parent

Consolidated Statement of Comprehensive Income

2023
1,054,201854,979
199,221

1,038,736
852,360
186,376

16,70161,005769
2,356(2,908)15,144
66,472
159,539
39,682

14,20665,355
(232)
2,233
(451)
17,18970,132
168,433
17,943

1,968
465
750
2,368
2,223
7,774

6,078
503
−
2,734
1,680
10,996

4,512
−
2,998
7,510
39,946

11,274
4,188
4,261
19,723
9,216

445
957
340
1,077
2,819

2,688
1,858
340
−
4,886

1,107
3,514
2,407
−
559
7,586
35,17912,4494,081
16,531
18,6491,039
17,61033,537
4,268
2,571
194
−
40,570(26,468)
10,0652,328
12,393(38,861)996(39,857)

Years ended December 31, 2022 and 2023

（Millions of yen）

2023

2022
Net income loss
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
5HPHDVXUHPHQWVRIGH¿QHGEHQH¿WSODQVQHWRIWD[
Share of other comprehensive income of associates accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests

DIC Report 2024

144

18,649△ 38,861(94)
598
38,266(5,545)358
33,58452,233371(444)
31,066(3,162)(580)
27,251(11,609)50,788
1,445(13,612)2,002

Financial Report for Fiscal Year 2023

Consolidated Statement of Changes in Net Assets Years ended December 31, 2022 and 2023
Fiscal year ended December 31, 2022

（Millions of yen）

Shareholders’ equity
Capital stock

Capital surplus

96,557

94,468

Balance at January 1, 2022

Retainedearnings

Treasury shares

Total
shareholders' equity(1,780)403,910214,665

Change in FY2022
Dividends from surplus(9,479)Net income attributable to owners of the parent

17,610(9,479)17,610Purchase of treasury shares(6)

Change in ownership interest of parent due totransactions with non-controlling interests

(6)

(234)

(234)

Net changes of items other than shareholders’ equity

−

(234)

8,131

(6)

7,892

96,557

94,234

222,796(1,785)

411,802

Total change in FY2022
Balance at December 31, 2022

（Millions of yen）

Accumulated other comprehensive income

Balance at January 1, 2022

Valuation difference
on available-for-salesecurities

Deferred gains orlosses on hedges

Foreign currencytranslation
adjustment

Remeasurements
RIGHÀQHG
EHQHÀWSODQV

Total accumulated
other comprehensive
income5,449

92(55,456)(8,067)(57,983)

Non-controllinginterests

35,081Total
net assets

381,008

Change in FY2022
Dividends from surplus(9,479)Net income attributable to owners of the parent

17,610Purchase of treasury shares(6)

Change in ownership interest of parent due totransactions with non-controlling interests

(234)
(88)

602

38,170(5,506)33,178(989)

Total change in FY2022

(88)

602

38,170(5,506)33,178(989)

40,080

Balance at December 31, 2022

5,360

694

(17,286)(13,573)(24,805)

34,091

421,088

Net changes of items other than shareholders’ equity

Fiscal year ended December 31, 2023

32,188（Millions of yen）

Shareholders’ equity
Capital stock

Capital surplus

96,557

94,234

Balance at January 1, 2023

Retainedearnings

Treasury shares

Total
shareholders’ equity(1,785)

411,802

222,796

Change in FY2023
Dividends from surplus△ 9,478)(9,478)Net income loss attributable to owners of the parent△ 39,857)(39,857)

Purchase of treasury shares
Disposal of treasury shares

(170)

(447)

(447)

646

476

170

(170)

−

−

(49,505)199(49,306)

96,557

94,234

173,292(1,586)362,497

Net changes of items other than shareholders’ equity−

Transfer from retained earnings to capital surplus
Total change in FY2023
Balance at December 31, 2023

（Millions of yen）

Accumulated other comprehensive income

Balance at January 1, 2023

Valuation difference
on available-for-salesecurities

Deferred gains orlosses on hedges

Foreign currencytranslation
adjustment

Remeasurements
RIGHÀQHG
EHQHÀWSODQV

Total accumulated
other comprehensive
income5,360

694(17,286)(13,573)(24,805)

Non-controllinginterests

34,091Total
net assets

421,088

Change in FY2023
Dividends from surplus(9,478)Net income loss attributable to owners of the parent(39,857)

Purchase of treasury shares

(447)
476

Disposal of treasury shares
Net changes of items other than shareholders’ equity

182

(446)

29,845(3,336)

26,245

1,239−

Total change in FY2023

182

(446)

29,845(3,336)

26,245

1,239(21,821)

Balance at December 31, 2023

5,542

248

12,559(16,910)1,440

35,330399,267

DIC Report 2024

145

Financial Report for Fiscal Year 2023

Consolidated Statement of Cash Flows Years ended December 31, 2022 and 2023
（Millions of yen）

2022
Net cash provided by (used in) operating activities
Income loss before income taxes and non-controlling interests
Depreciation and amortization
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Interest and dividends income(TXLW\LQ HDUQLQJV ORVVHVRIDI¿OLDWHVInterest expenses
Loss (gain) on sales and retirement of non-current assets
Impairment losses
Loss (gain) on sales of investment securities
Decrease (increase) in notes and accounts receivable—trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable—trade
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of shares and investments in capital of subsidiaries resulting in change in scope of consolidation
Proceeds of shares and investments in capital of Subsidiaries resulting in change in scope of consolidation
3URFHHGVIURPVDOHVRIVKDUHVDQGLQYHVWPHQWVLQFDSLWDORIVXEVLGLDULHVDQGDI¿OLDWHV
Purchase of investment securities
Proceeds from sales and redemption of investment securities
Proceeds from sales of businesses
Payments for transfer of business
Other, net
Net cash provided by (used in) investing activities
1HWFDVKSURYLGHGE\ XVHGLQ ÀQDQFLQJDFWLYLWLHVNet increase (decrease) in short-term loans payable
Increase (decrease) in commercial papers
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of bonds
Redemption of bonds
Cash dividends paid
Cash dividends paid to non-controlling interests
Net decrease (increase) in treasury shares
Purchase of shares and investments in capital of subsidiaries not resulting in change in scope of consolidation
Repayment of lease liabilities
Other, net
1HWFDVKSURYLGHGE\ XVHGLQ ¿QDQFLQJDFWLYLWLHV
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the period
Cash and cash equivalents at end of the period

DIC Report 2024

146

2023
35,17947,126
1,666
(60)
(660)
(2,433)(2,368)
4,512
1,450
1,107
(445)
4,318
(55,521)(764)(9,641)
23,465
3,772(4,444)(14,857)
7,935(26,468)
50,846
2,251
(539)
(519)
(6,581)(2,734)
11,274713
33,537(2,688)26,415
59,101(18,430)(21,830)
104,348
8,191(11,410)(12,033)
89,095(2,173)
2,065(40,817)
1,383(4,580)(30,732)(3,596)
1,535(52,057)
1,894(6,016)(14,078)
9
395
(325)
5,591
631
(185)
(254)
(66,457)

−
2
(325)
749
−
(16)
1,285
(73,160)
13,71530,000127,913(49,623)−(20,000)(9,479)(681)(6)(1,999)(5,807)(85)
83,9486,265
24,98937,57262,560(15,417)3,000
88,747(48,299)
15,000(30,000)(9,478)(407 )
29−(5,882)(212)(2,920)2,363
22,08262,56084,642

Third-Party Verification

The DIC Group has received the above third-party verification regarding greenhouse gas emissions, waste generation, number ofaccidents (number of lost work days, etc.) and ratio of female managers.

DIC Report 2024

147

Third-Party Verification

The DIC Group has received the above third-party verification regarding greenhouse gas emissions, waste generation, number ofaccidents (number of lost work days, etc.) and ratio of female managers.

DIC Report 2024

148

Third-Party Verification

The DIC Group has received the above third-party verification regarding greenhouse gas emissions, waste generation, number ofaccidents (number of lost work days, etc.) and ratio of female managers.

DIC Report 2024

149

DIC Report 2024 and the GRI Standards
Statement of Use,QWKLVUHSRUW',&&RUSRUDWLRQSUHVHQWVLQIRUPDWLRQLQDFFRUGDQFHZLWKWKH*5,6WDQGDUGVIRU¿VFDO\HDU -DQXDU\±'HFHPEHU 7KHUHSRUWDOVRFRQWDLQVVRPHLQIRUPDWLRQIURPEHIRUHDQGDIWHU¿VFDO\HDU

GRI 1 used

GRI 1: Foundation 2021

Applicable GRI Sector Standards

The Company complies with applicable sector standards as soon as they are made public.

Standard

DisclosuresPage(s), etc.

Related information/Reasons for omission

General Disclosures
GRI 1:

Foundation 2021

GRI 2:

General Disclosures 2021

1

The Organization and its reporting practices

2-1

Organizational details

29 (The DIC Group: A Global Powerhouse), 153 (Corporate Data)

2-2

Entities included in the organization’s sustainability reporting

2 (About this Report), 6–8 of the Annual Securities Report

2-3

Reporting period, frequency and contact point

2 (About this report)

2-4

Restatements of information—

2-5

External assurance

147–149 (Third-Party Verification)

2

Activities and workers

2-6

Activities, value chain and other business relationships

29 (The DIC Group: A Global Powerhouse), 121–123 (Sustainable Procurement)

2-7

Employees

106 (Diversity Across the DIC Group), 153 (Corporate Data)

2-8

Workers who are not employees—

3

Governance

2-9

Governance structure and composition

34 (System for Promoting Sustainability Initiatives), 130–135 (Corporate Governance), 59–74 of theAnnual Securities Report2-10

Nomination and selection of the highest governance body130 (Corporate Governance System), 59–61 of the Annual Securities Report

2-11

Chair of the highest governance body

54 of the Annual Securities Report

2-12Role of the highest governance body in overseeing themanagement of impacts

7 (Achievements to date), 17 (Overview of Materiality)

2-13

Delegation of responsibility for managing impacts

34 (System for Promoting Sustainability Initiatives)

2-14

Role of the highest governance body in sustainability reporting

2 (About this report)

2-15

Conflicts of interest

57-58 of the Annual Securities Report

2-16

Communication of critical concerns

125 (Establishing and Operating a Whistle-Blowing System)

2-17

Collective knowledge of the highest governance body

—

2-18

Evaluation of the performance of the highest governance body

—

2-19

Remuneration policies

133–134 ( ❷ Remuneration for Directors and Audit & Supervisory Board Members), 80–84 of the Annual
Securities Report

2-20

Process to determine remuneration

130 (❸ Remuneration Committee), 133–134 (❷ Remuneration for Directors and Audit & Supervisory
Board Members), 82-84 of the Annual Securities Report

2-21

Annual total compensation ratio—

4

Strategy, policies and practices

2-22Statement on sustainable development strategy

5–10 (A Message from the President)

2-23

Policy commitments

113–114 (The DIC Group Human Rights Policy), 124 (The DIC Group Code of Business Conduct)

2-24

Embedding policy commitments

124–125 (Toward Fair and Transparent Corporate Activities),
131–132 (System of Internal Controls)

2-25

Processes to remediate negative impacts

125 (Establishing and Operating a Whistle-Blowing System)

2-26

Mechanisms for seeking advice and raising concerns

125 (Establishing and Operating a Whistle-Blowing System)

2-27

Compliance with laws and regulations

81 (Complying with Laws and Regulations), 84–85 (ESH Audits), 124–125 (Compliance)
No violations of laws or regulations were reported.
52 (Participation in Industry Organizations)

9 of the Annual Securities Report (5. Employees)

2-28

Membership associations

5

Stakeholder engagement

2-29

Approach to stakeholder engagement

49–53 (Communication with Stakeholders)

2-30

Collective bargaining agreements

115 ( ❸ Building Trust with the DIC Employees’ Union)

GRI 3:

Material Topics 2021

3-1

Process to determine material topics

17–18 (Overview of Materiality)

3-2

List of material topics

17–18 (Overview of Materiality) (unchanged from fiscal year 2022)

3-3Management of material topics

17–18 (Overview of Materiality), 34 (System for Promoting Sustainability Initiatives) and other related pages

DIC Report 2024

150

Society
GRI 201:

Economic Performance 2016

201-1

Direct economic value generated and distributed

84–152 of the Annual Securities Report, 11-12 (A Message from the CFO),
29 (The DIC Group: A Global Powerhouse), 140–146 (Financial Report for Fiscal Year 2023)

201-2

Financial implications and other risks and opportunities
due to climate change

89–92 (Sustainability - Related Disclosures)

201-3

Defined benefit plan obligations and other retirement plans

143–145 of the Annual Securities Report

201-4

Financial assistance received from government

149 of the Annual Securities Report

GRI 202:

Market Presence 2016

202-1

Ratios of standard entry level wage by gender compared to local —minimum wage

202-2

Proportion of senior management hired from the local community

GRI 203:

Indirect Economic Impacts 2016

203-1

Infrastructure investments and services supported—

46–48 (Harmony with the Community and Social Contributions)203-2

Significant indirect economic impacts—

46–48 (Harmony with the Community and Social Contributions)

GRI 204:

Procurement Practices 2016

204-1

Proportion of spending on local suppliers

GRI 205:

Anti-corruption 2016

205-1

Operations assessed for risks related to corruption—

124–125 (Compliance)

205-2

Communication and training about anti-corruption policies and procedures

124–125 (Compliance)

121–123 (Sustainable Procurement)

205-3

Confirmed incidents of corruption and actions taken

NA

124–125 (Compliance)

GRI 206:

Anti-competitive Behavior 2016

206-1

Legal actions for anti-competitive behavior, anti-trust, andmonopoly practices

NA

124–125 (Compliance)

GRI 207:

Tax 2019

207-1

Approach to tax

The DIC Group’s Approach to Tax
https://www.dic-global.com/en/csr/philosophy/tax.html

207-2

Tax governance, control, and risk management

The DIC Group’s Approach to Tax
https://www.dic-global.com/en/csr/philosophy/tax.html

207-3

Stakeholder engagement and management of concerns The DIC Group’s Approach to Tax
related to tax
https://www.dic-global.com/en/csr/philosophy/tax.html

207-4

Country-by-country reporting

—

—

—

Environment
GRI 301:

Materials 2016

301-1

Materials used by weight or volume

—

301-2

Recycled input materials used

—

301-3

Reclaimed products and their packaging materials—

GRI 302:

Energy 2016

42 (Sustainable Packaging)

302-1

Energy consumption within the organization

28 (Nonfinancial Information), 64–65 (Groupwide Environmental Performance, 98 (Key Data)

302-2

Energy consumption outside of the organization

96 ( ❷ Grasping CO2 Emissions Across the DIC Group’s Supply Chains (Scope 3))302-3

Energy intensity

28 (Global Energy Consumption and Energy Consumption per Unit of Production (DIC Group)), 98 (Key Data)

302-4

Reduction of energy consumption

28 (Global Energy Consumption and Energy Consumption per Unit of Production (DIC Group)), 98 (Key Data)

302-5

Reductions in energy requirements of products and services

NA

GRI 303::DWHUDQG(IÁXHQWV

303-1

Interactions with water as a shared resource

72–73 (Managing Water Resources)

303-2

Management of water discharge–related impacts

73 (Managing Water Resources)

303-3

Water withdrawal

86–87 (Key Data)

303-4

Water discharge

87 (Key Data)

303-5

Water consumption

87 (Key Data)

GRI 304:

Biodiversity 2016

304-1

Operational sites owned, leased, managed in, or adjacentto, protected areas and areas of high biodiversity value
outside protected areas

304-2

6LJQLÀFDQWLPSDFWVRIDFWLYLWLHVSURGXFWVDQGVHUYLFHV —on biodiversity

—

304-3

Habitats protected or restored

304-4

IUCN Red List species and national conservation list —species with habitats in areas affected by operations—

GRI 305:

Emissions 2016

305-1

Direct (Scope 1) GHG emissions

98 (Key Data)

305-2

Energy indirect (Scope 2) GHG emissions

98 (Key Data)

305-3

Other indirect (Scope 3) GHG emissions

96 ( ❷ Grasping CO2 Emissions Across the DIC Group's Supply Chains (Scope 3))

305-4

GHG emissions intensity

98 (Key Data)

75 (Biodiversity)

DIC Report 2024151

305-5

Reduction of GHG emissions

—

305-6

Emissions of ozone-depleting substances (ODS)

97–98 (Protecting the Ozone Layer)

305-7

Nitrogen oxides (NOx), sulfur oxides (SOx),
DQGRWKHUVLJQLÀFDQWDLUHPLVVLRQV

67 ( ❷ Reducing SOx, NOx and COD), 85 (Key Data)

GRI 306:

Waste 2020

306-1

Waste generation and significant waste-related impacts

—

306-2

0DQDJHPHQWRIVLJQLÀFDQWZDVWHUHODWHGLPSDFWV

—

306-3

Waste generated

69–71 (Industrial Waste Generated and Disposed of by the Global DIC Group in Fiscal Year 2023), 86 (Key Data)

306-4

Waste diverted from disposal

69–71 (Industrial Waste Generated and Disposed of by the Global DIC Group in Fiscal Year 2023), 86 (Key Data)

306-5

Waste directed to disposal

69–71 (Industrial Waste Generated and Disposed of by the Global DIC Group in Fiscal Year 2023), 86 (Key Data)

GRI 308:

Supplier Environmental Assessment 2016308-1

New suppliers that were screened using environmental criteria

308-2

Negative environmental impacts in the supply chain and actions taken 122 (Global Sustainable Procurement Efforts)

123 (Advance Assessments of New Raw Materials)

Society
GRI 401:

Employment 2016

401-1

New employee hires and employee turnover

401-2

Benefits provided to full-time employees that are not 116 ((6) Programs that Help Employees Balance the Demands of Work and Home)
provided to temporary or part-time employees

401-3

Parental leave

GRI 402:

Labor/Management Relations 2016

402-1

Minimum notice periods regarding operational changes

GRI 403:

Occupational Health and Safety 2018

103 (Basic Personnel Statistics (DIC))
101–120 (Human Resources Management)

116 ((7) Use of the Childcare Leave and Leave to Assist with Parenting Programs), 110–111 (Human Resources Management)

—

403-1

Occupational health and safety management system

54–56 (ESH), 58–59 (Occupational Safety and Health)403-2+D]DUGLGHQWLÀFDWLRQULVNDVVHVVPHQWDQGLQFLGHQWLQYHVWLJDWLRQ

59–60 (Principal Initiatives in Fiscal Year 2023), 63 (Disaster Prevention)

403-3

Occupational health services

117–120 (❷ Corporate Health Management)

403-4

Worker participation, consultation, and communication on 55–56 (Framework for Promoting Responsible Care)occupational health and safety

403-5

Worker training on occupational health and safety

60–62 (Occupational Safety and Health), 63–64 (Disaster Prevention)

403-6

Promotion of worker health

117–120 (❷ Corporate Health Management)

403-7

Prevention and mitigation of occupational health and —safety impacts directly linked by business relationships

403-8

Workers covered by an occupational health and safety management system —403-9

Worker-related injuries

58 (Occupational Safety and Health), 85 (Key Data)403-10Work-related ill health—

GRI 404:

Training and Education 2016

404-1

Average hours of training per year per employee

—

404-2

Programs for upgrading employee skills and transition assistance programs

103–105 (2. Three Strategic Priorities) 112 ( ❺ Reemployment after Retirement and Support for Retirement Planning)

404-3

Percentage of employees receiving regular performance 104–105 (3. Talent Management: Personnel System, Global Human Resources Framework and Group Humanand career development reviews
Resources Governance)

GRI 405:

Diversity and Equal Opportunity 2016405-1

Diversity of governance bodies and employees

103 (❸ Basic Personnel Statistics), 106 (Diversity KPIs), 108 (Employees in Management Positions)
66–73 of the Annual Securities Report405-2

Ratio of basic salary and remuneration of women to men—

GRI 406:

Non-discrimination 2016406-1

Incidents of discrimination and corrective actions taken

GRI 407:

Freedom of Association and Collective Bargaining 2016

407-1

Operations and suppliers in which the right to freedom of
association and collective bargaining may be at risk

GRI 408:

Child Labor 2016

408-1

Operations and suppliers at significant risk for incidents of child labor

GRI 409:

Forced or Compulsory Labor 2016409-1

Operations and suppliers at significant risk for incidents offorced or compulsory labor

GRI 410:

Security Practices 2016

410-1

Security personnel trained in human rights policies or procedures

GRI 411:

Rights of Indigenous Peoples 2016

411-1

Incidents of violations involving rights of indigenous peoples

GRI 413:

Local Communities 2016413-1

Operations with local community engagement, impact
assessments, and development programs

—

413-2

Operations with significant actual and potential negative
impacts on local communities—

103((3) Reskilling to Maximize Human Resources)NA

125 (Compliance (Establishing and Operating a WhistleBlowing System))—

115 (6 Building Trust with the DIC Employees’ Union)

No suppliers were found to be at risk.

122–123 (Sustainable Procurement)

No suppliers were found to be at risk.

122–123 (Sustainable Procurement)—NA

49–53 (Communication with Stakeholders)

DIC Report 2024

152

GRI 414:

Supplier Social Assessment 2016414-1

New suppliers that were screened using social criteria

—

414-2

Negative social impacts in the supply chain and actions taken

121–123 (Sustainable Procurement)

121–123 (Sustainable Procurement)

GRI 415:

Public Policy 2016

415-1

Political contributions

GRI 416:

Customer Health and Safety 2016

416-1

Assessment of the health and safety impacts of productand service categories

99–100 (Quality)

416-2

Incidents of non-compliance concerning the health andsafety impacts of products and services

NA

GRI 417:

Marketing and Labeling 2016

52 (Monetary Contributions)

417-1

Requirements for product and service information and labeling

77 (Safety in Logistics), 79–80 (Ensuring the Safety of Chemical Substances), 82 (Safe Product Transport)

417-2

Incidents of non-compliance concerning product andservice information and labeling

NA

417-3

Incidents of non-compliance concerning marketing
communications

NA

GRI 418:

Customer Privacy 2016

418-1

Substantial complaints concerning breaches of customer
privacy and losses of customer dataNA

129 (Customer Privacy and Customer Data)

DIC Report 2024

153

Corporate Data
About the Company
Registered name:

DIC Corporation

Corporate headquarters:

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

Date of foundation:

February 15, 1908

Date of incorporation:

March 15, 1937

Paid-in capital:¥96.6 billion

Number of employees:

22,255 (Nonconsolidated: 3,973 ) (As of December 31, 2023)

1XPEHURIVXEVLGLDULHVDQGDI¿OLDWHV

185 (Domestic: 29, overseas: 156) (As of December 31, 2023)

Composition of Labor Force
Segment

Number of Employees
Number of employees

Packaging & Graphic

10,320Color & Display

4,309

Functional Products

5,623
485

Corporate

1,518

Total

22,743

22,255 Number of people

5,852

5,869

6,057

20,242Japan
The Americas and Europe

5,914

Asia and Oceania

10,684

10,697

10,288

6,020

5,938

6,177

5,910

2020

2021

2022

2023

8,308

Others

22,474

22,255The 2030 Agenda for Sustainable Development
At the UN Sustainable Development Summit in September
2015, a proposal titled “Transforming our world: the 2030
Agenda for Sustainable Development,” later summarized as
the Sustainable Development Goals (SDGs), was adopted
with the participation of more than 150 UN member states.
The agenda, which succeeded the Millennium Development
Goals (MDGs), encompasses 17 goals and 169 targets. All
UN member states are expected to mobilize efforts to attainthe 17 goals, essential to sustainable development for theplanet, by 2030. The DIC Group pledges to contribute
through its business activities to the success of the SDGs.

For more information on the SDGs, please visit:https://www.un.org/sustainabledevelopment/development-agenda/

DIC Report 2024

154

（Contact）

Corporate Communications Dept.
Corporate Planning Dept.
Sustainability Dept.
DIC Building, 7-20, Nihonbashi 3-chome, Chuo-ku, Tokyo 103-8233, Japan
Tel: +81-3 - 6733 - 3033

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