English version

Outline of the Report

CONTENTS
CSR of the DIC Group1

DIC Group, globally active and expanding

2

Discussion

4

Special Topics
1. G
 o al s of t h e

M e dium -Te r mManagement Plan

This report has been edited so that readers can easily
understand the CSR activities of the DIC Group. The
DIC Group conducted an ‘evaluation of materiality’
based on the following reference guidelines for society,economy and environment, from the perspective ofimportance for both stakeholders and DIC Group. In
consideration of coverage and materiality, the items
which should be reported have been determined andthe relevant activities of the DIC Group are presented.
<Linkage with Website>
The WEB mark ( WEB ) is indicated in the portions where
the detailed data or related information can be seen, as
a guide to the related pages on our website.
DIC website

WEB

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

6

2. Business Activities in Highlight8

3. Our Efforts of Preventing Global Warming

13
Scope of the Report

Report on Compliance

15This repor t covers DIC and the domestic and overseas Group
companies included in the consolidated financial statement. Pleaserefer to Page 23, however, for the companies covered by the report on
P23
the “Environment, Safety, Health and Quality.”

Report on BCM (Business Continuity Management)

16

Reporting Period

Report on Information Security

17

Report on the Reliability of Financial Reporting

18

Report on Supply Chain Management

19

Report on New Technology Development and Value Creation

20

Report on the Environment, Safety, Health and Quality

IssuedSeptember, 2010 (The next issuance is scheduled for September, 2011.)

22

Reference Guidelines

Report on Our CSR Themes

Report on Our Business Models Focused on Customer
Satisfaction

36

Report on Human Resource Management

37

Report on Harmony with the Community andContribution to Society

40

Report on Information Disclosures of CSR

43

DIC CSR Report 2010 Independent Review

45

Data Compilation

47

Target Domestic Companies
April 1, 2009 to March 31, 2010 (FY 2009)
Target Overseas Companies
January 1, 2009 to December 31, 2009 (FY 2009)(Some of the FY 2010 topics are indicated)

GRI “Sustainability Reporting Guidelines 3rd Edition,”
ISO26000 (CD) Issued December, 2008

Cover Design
A big tree filled with hopes anddreams
The cover of the report has been drawn by thehands of the next generation (the hands of DIC
employees’ children).
The motif of this year’s design is “a big tree filledwith hopes and dreams,” which depicts our hope
to be able to co-exist with stakeholders like trees
in nature.
We hope that the CSR activities of the DIC Groupwill be rich and fruitful like a big tree.

CSR of the DIC Group

WEB

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

The DIC Group positions as the basis of CSR, the fulfillment of its social responsibility
to contribute to the development of society through its business activities.
The DIC Group has officially taken CSR into its management since
FY2007. We make efforts to ensure an accurate grasp of changing
social imperatives, including the issue of global warming andincreasingly serious issue of resources, and respond with solutions
that deliver the value that our many stakeholders expect. Through thecontinuous implementation of these initiatives, we aim to earn the trustof society and remain an enterprise that is capable of growing andevolving.
The DIC Group formulates CSR policies each year starting fromFY 2008 as guidelines, to promote CSR at the ground level, andencourage awareness at both an organizational and an individuallevel. To foster concrete measures, we have developed 11 CSR
themes have been set and each department responsible for carrying
out CSR theme sets their respective annual targets.

CSR Promotion System

CSR themes (FY 2010)

1. Compliance
2. BCM (Business Continuity Management)
3. Information Security
4. Reliability of Financial Reporting
5. Supply Chain Management
6. New Technology Development and Value Creation
7. Environment, Safety, Health and Quality
8. Business Model Focused on Customer Satisfaction
9. Human Resources Management
10. Harmony with the Community and Contribution to Society
11. Information Disclosures of CSR*For the details of each theme, please refer to Report on
P15
Our CSR Themes pages.

The DIC Group has a system in which each administrative department is
responsible for carrying out CSR themes under the CSR Committee, topromote specific approaches to CSR. The Sun Chemical Group, however, promotes CSR under its own system.
・Advisory Organ of CSR management
・Establishment of targets and policy for activities
・Evaluation of CSR activities

Board of Directors

CSR Committee

Department responsiblefor implementation

Corporate Communications
Dept.
・Coordination of promotion of CSR・Comprehension of progress

Printing Inks &Supplies
Business Operation

As of April 2010

President

Neo-Graphic Arts
Business Operation

Synthetic Resins
Business Operation

ChemicalSolutions Materials
Business Operation

Business Operation Presidents
Division Presidents, Sales Branch/Factory General Managers, Subsidiary Presidents
1. Compliance
2. BCM (Business Continuity Management)
3. Information Security
4. Reliability of Financial Reporting
5. Supply Chain Management
6. New Technology Development and Value Creation
7. Environment, Safety, Health and Quality
8. Business Model Focused on Customer Satisfaction
9. Human Resources Management
10. Harmony with the Community and Contribution to Society
11. Information Disclosures of CSR[Supplementary Note 1] Color segment: indicating efforts mainly based on [Economic perspective], [Environmental
perspective], and [Social perspective].
[Supplementary Note 2] [Information Disclosure of CSR] in the table has two perspectives of [Economic perspective] and [Social
perspective].

1

DIC Group, globally active and expanding
The DIC Group has 203 affiliates and is active in a variety of business operations, including printing inks
and synthetic resins, in 64 countries and regions in the world.
*Main countries: American countries the United States, Canada, Mexico, Brazil, etc. European countries Germany, the United Kingdom, the Netherlands, France, etc. Asian andOceanian countries China, Thailand, Malaysia, India, Australia, etc.
*The sum of the operating incomes by region below does not correspond to that of the operating incomes of all the companies, as the former includes the cancelled amount (6.2 billion yen).

日本
Japan

EuropeDIC、DIC
DICグラフィ
DIC,
Graphics
and 43other companies
ックス、
他43社

………………………
Number従業 of員employees
数 ……………………

6,900……… 345.6 billion yen…………………
………… 20.4 billion yen
Operating income……………………

Net sales
売
上 高

営業利益

………………

Main
主要business
事 業 ……………

Graphic Arts
Industrial Materials
High Performance & Applied ProductsElectronics and Information Materials

European countries

Sun Chemical and 59 other companies

Net sales……………………… 4,983………… 188.9 billion yen

Operating income…………… 7.8 billion yen

DIC China, DIC Asia Pacific and 68 other companies

Main business………………… Graphic Arts

Number of employees……………………………………… 5,967

Net sales………………………… 94.9 billion yen

Operating income……………………………6.6 billion yen

Main business………………………………… Graphic Arts

Number of employees

Asian and Oceanian countries

Industrial Materials

Asia / O

Corporate Data (As of March 31, 2009)
Registered name:

DIC Corporation

Number of employees:

3,326 (non-consolidated), 22,583 (consolidated)

Corporate headquarters:

DIC Building, 7-20, Nihonbashi 3-Chome, Chuo-ku,

Domestic operations:

9 branch offices, 9 sales offices and 11 plants(non-consolidated)Tokyo 103-8233, Japan
Date of foundation:

February 15, 1908

Date of incorporation:

March 15, 1937

Paid-in capital:

82.4 billion yen

203 [domestic: 44, overseas: 159, including 85

Number of affiliates:

companies in the Sun Chemical Group]

Business Performance Highlights

‘07

‘08

‘09 (Fiscal year)

310

225

278

484

514
‘06

‘05

‘06

‘07

‘08

‘09 (Fiscal year)

0

‘05

‘06

‘07

7,499

‘05

2,000

7,385

‘09 (Fiscal year)

0

9,783

‘08

50

4,000

9,918

‘07

100

6,000

25

‘06

150

26

‘05

0

8,000

200

100

(Billions of yen)

10,000

250

53

0

200

Total Assets(Billions of yen)

300

254

2,000

7,578

4,000

300

9,323

6,000

10,7798,000

400

10,157500

10,04810,000Net Income

9,695

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

495

Net Sales‘08‘09 (Fiscal year)

These graphs have been prepared from the accounts maintained in accordance with the provisions set forth in Japan’ s Companies Act and Financial Instruments andExchange Act. The scope of consolidation differs from that used for the purposes of this report. In FY 2009, DIC had 171 consolidated subsidiaries and 32 affiliates.

2

American countries

Sun Chemical and 28 other companies
Number
従 業 of
員employees
数Net
売 sales上高……………………… 4,733………… 128.4 billion yen

Operating営 業 利 income
益… Negative 0.8 billion yen

Main
主 要business
事業………………

Graphic Arts

America

Oceania
Operations

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

Graphic Arts Business Operation

High Performance and Applied Products Business Operation

Printing inks, printing supplies, organic pigments, Color &Comfort (Decorative materials)

Special compounds and colorants, building materials, petrochemical-related
products, chemical coatings, pressure sensitive adhesive materials, plastic
molded products, healthcare foods

Industrial Materials Business Operation

Electronics and Information Materials Business Operation

Synthetic resins, additives and chemicals

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

Electronics andInformation Materials
Business Operation
High Performance andApplied Products
Business Operation

14%

Industrial Materials
Business Operation

17%

Others1%5%Asia/Oceania 12%

Asia/Oceania
Total:
757.8
billion yen

Graphic Arts
Business Operation

63%

Breakdown of sales by segment

America17%

Total:
757.8
billion yen

Japan

46%

Europe25%

Breakdown of sales by region

26%

America

21%

Japan

Total:
22,583
employees

31%

Europe22%

Percentages of the number of
employees by region*Reorganization to new business segments was implemented on April 1, 2010. This report has been developed based on the old business segments to report on FY 2009.

3

Increasing employee awareness and building
win–win relationships with stakeholders
Discussion

On June 7, 2010, Kazuo Sugie, President and CEO of DIC, spoke with certified public accountant
Kazutaka Okubo, Partner of the CSR Promotion Department, Ernst & Young ShinNihon LLC, about DIC’s
efforts to contribute to the creation of a sustainable society.

Kazuo Sugie
Representative Director, President and CEO,DIC Corporation
Joined Dainippon Ink and Chemicals, Incorporated
in 1970; Served as General Manager, Petrochemical
Planning and Development Department, and General
Manager, Corporate Strategic Planning Department,
before being appointed President in April 2009.

Understanding consumer
expectations is crucial
Okubo My impression is that while CSR programs havebecome commonplace for Japanese companies in thepast two or three years, such undertakings are generally
inwardly focused—by which I mean that in most cases
corporate CSR programs do not go beyond in-housemeasures. What is the DIC Group’s approach to CSR?
Please tell us about the basic philosophy underscoring
your CSR program.
Sugie The DIC Group’s CSR program is based on theidea of building win–win relationships with stakeholders.
As a company, our principal stakeholders include ourcustomers, clients, investors, local communities andemployees. At the same time, each employee has his or
her own group of key stakeholders, the composition ofwhich varies depending on the employee’s job affiliation,i.e., whether he or she is in sales, technology, production
or another area. Our ability as a company to contributeto sustainable growth for society derives from the4accumulated efforts of individual employees to grasp andrespond effectively to changing needs in their particularstakeholder group.
Okubo I agree that it is vital for employees on the front
lines to really think about what they need to do to respondto the needs of stakeholders. The awareness of individual
employees depends greatly on how the organization theywork for addresses the challenges of CSR. DIC launched
its CSR program in 2007, but are there any priorities thathave remained constant since then?
Sugie I constantly tell employees that I want them to keep
abreast of consumer expectations. DIC is essentially a
B-to-B company, meaning that with a very few exceptions
our products are aimed at other companies. As such,securing the recognition and support of customers andmarkets depends on our ability offer products that reflectsensitivity to changes in consumer needs and values. In
the past, consumer needs focused on such concerns asconvenience, speed and appearance. Recently, peaceof mind, safety and comfort have been added to this list.
Companies respond to evolving values by modifying
their business approaches. For example, manufacturersof automobiles and food products today emphasize
environmental and health-related concerns. We must do
the same.

Making a unique contribution to theresolution of issues of concern to local
societies while promoting globalization
Okubo Achieving sustainability for the planet is animmense challenge, encompassing such issues as climatechange, water and food security and the depletion ofenergy resources. How is DIC helping to address such
issues through its core businesses?
Sugie We recognize the crucial nature of global warming
and other sustainability-related issues. The DIC Group is
not involved in such businesses as converting seawater
into fresh water or developing alternative energy. However,
we have worked steadily to help resolve environmental
problems. For example, we have contributed to efforts to
reduce the weight of automobiles by supplying engineering
plastics as an alternative to conventional metal materials.
We have also developed technologies that facilitate theuse of water instead of organic solvents, thereby reducing
emissions of volatile organic chemicals (VOCs) and CO2.
These are just a few examples—the DIC Group hasa wealth of other technologies and know-how with thepotential to help address a broad range of global issues.
Okubo For organizations like the DIC Group that haveextensive operations overseas, efforts to contribute tosustainable growth for local communities will come underincreasing scrutiny in the years ahead. What are yourviews on this?
Sugie Going forward, I believe we will find it increasingly
essential to promote international specialization in ouroperations. Owing to the globalization of markets andthe removal of national borders as barriers to economic
activity, we now live in an age that demands we divide
up operations all along the supply chain in a manner that
capitalizes on the comparative advantages of different
countries, thereby contributing to regional society. In
doing so, it is important not only that we ensure uniform
product quality wherever we produce, but also that wegive sufficient consideration to local environmental
concerns and regional economic development. To thisend, it is essential that we make use of the environmental
technologies we have cultivated in Japan in othercountries.
Okubo I agree. Companies from industrialized nations
setting up operations in developing countries are also
expected to help protect the environment and contributeto local communities. Is it enough just to go there andmanufacture quality products? Of course it isn’t. Whatis important is how companies conduct their businessactivities, how they incorporate good corporate citizenshipcontributes to help resolve key local concerns.
Sugie Exactly. One of the fundamental reasons thatstandards of living in so-called developing countries are
slow to improve is that transnational companies neverreally establish firm roots in the host countries, that is,they do not have a measurable positive impact on local
employment in manufacturing, among others. Production
in developing countries has the potential to stimulate local
demand and ultimately help drive economic growth, so
globalization is important.
Okubo Keeping all components of one’s business of one’s
home country and simply exporting the results no longer
has currency as a way of doing business, does it?
Sugie With the aim of ensuring that our global
business strategy—including the idea of international
specialization—is shared throughout the global DIC Group,
beginning in September 2010 we will gather regional
representatives together for regular meetings, enabling
us to coordinate initiatives and promote a CSR-oriented
management approach.

Printing inks were thus the principal medium whereby weprovided value. In today’s digital world, this role is fulfilled bysuch products as jet inks, liquid crystals (LCs) and materials
for use in copy machines. We must also remain consciousof the fact that product life cycles are increasingly short. In
response to such changes, we have shifted from a productspecific to a market-focused management approach.
The biggest test will be to what extent the DIC Groupcan provide value that satisfies current expectations. I
believe that only by providing new value will we secure
future growth for the DIC Group and realize our Color andComfort by Chemistry management vision.
Okubo I was told that you have set forth 11 key CSR
themes in the current year to guide specific activities
aimed at further enhancing CSR management. What will
be expected of employees?
Sugie First of all, I want each employee to recognize
who his or her stakeholders are and to show initiative indoing what he or she can to ensure the needs of thosestakeholders are met. At the same time, I want employees
to approach their jobs with pride in knowing that what they
do for a living contributes positively to pleasant lifestyles
and environmental protection, as well as with an adequate
sense of responsibility.
Okubo There is no question that the effectiveness of acompany’s approach to CSR reflects its ability to createa corporate culture that encourages independence anda willingness to show initiative in implementing related
measures. Looking ahead, I am confident that DIC’s
recognition of CSR as the foundation of corporate
management will enable it to provide its stakeholders withgreater value than ever before. Thank you for your time
today.
Sugie Thank you.

Consistently providing value thatreflects modern priorities is essential
to achieving growth
Okubo I think it is fair to say that attaining the objectivesof your new medium-term management plan, which began
in April 2010, will require the entire DIC Group work as one
to reinforce CSR-oriented management. What do you see
as being necessary for you to drive CSR management
forward?
Sugie One is the ability of all employees to remain abreastof evolving concepts of value. For example, the purposeof printing inks—the core original business of the DIC
Group—is to reproduce color while transmitting information.

Kazutaka Okubo
Partner of the CSR Promotion Department,
Ernst & Young ShinNihon LLC; certified public accountant
Leading consultant on compliance and CSR for government
agenc ies , univer s i ties and other or ganizations; par ttime lecturer at Waseda University; serves on numerous
independent committees set up by government agencies,
economic organizations and companies.

5

Special Topic

01

01 Goals of theMedium-Term

Goals of theManagement Plan

01

Medium-Term

Transforming DIC’s Business Portfolio

Management Plan

In November 2009, DIC announced a new mediumterm management plan,. In addition topositioning fiscal year 2010 as the first year of ourtransformation into a provider of solutions, the plansets two overarching targets: Realize our Colorand Comfort by Chemistry management visionand restore DIC to a financial position that inspires
confidence.
By implementing the strategies of, wewill build on the DIC Group’s distinctive capabilities
in chemical materials (synthetic resins and organic
pigments) to offer complex and multifunctional
products and solutions that bring color and comfort tomodern lifestyles. To this end, we will promote a shift
from our traditional product-specific management
approach to one that allows us to fully exploit the DIC
Group’s vast resources, thereby creating powerfulGroupwide assets. We will also transform ourbusiness portfolio into one that responds to changing
social imperatives, enabling us to offer new value.
To ensure a sound financial condition, we will
implement measures aimed at improving cash
flows, in line with our management vision. Suchefforts will enable us to build a solid financial baseas a company that contributes to society through its
operations.

02 Business Activities in Highlight

Basic Policies
Targets
Management
visionRealize our management vision(“Color & Comfort by Chemistry”)

The DIC SPIRITEnterprise,
Integrity,
DiligencePrinciples ofconduct

Firmly establish the DIC corporate brand in society

Corporate
valuesRestore to the reliable financial position
Achieve a D/C ratio of 50%
by increasing operating cash flows

The DIC WAY

03 Our Efforts of Preventing Global Warming

Management Resources
1. Resin engineering capabilities that are among the best in
the world
2. Technologies and production facilities that accommodate
everything from basic materials to complex products
3. Customer- and technology-related information thatallows us to serve a broad range of industries
4. R&D that enables us to add further depth to coretechnologies
5. A global network of bases in 63 countries and territories

New Portfolio
A portfolio that offers value

Building on our distinctive capabilities in chemical materials (resins andorganic pigments), we are leveraging our core technologies to offer
compound and complex products and solutions that bring color andcomfort to modern lifestyles

New business segments■ Printing Inks
Building a stable businessfoundation by promoting growthand cost reduction■ Neo-Graphic Arts
Explore the future of printing inks

Targets for FY 2010 through 2012
FY 2009: Result
Net sales

6

757.8

■ Synthetic Resins
Basic materials that impart
outstanding performance features■ Chemical Solutions
Providing products for peace ofmind, safety and comfortable
lifestyles(Billions of yen)
FY 2010: Target
800.0

FY 2011: Target
840.0

FY 2012: Target
870.0

Operating income

27.8

30.0

43.0

55.0

Operating margin

3.7%

3.8%

5.1%

6.3%

Ordinary income

19.1

20.0

33.0

45.0

Net income (loss)

2.5

7.5

16.0

24.0

Interest-bearing debt

377.7

370.0

355.0

330.0

CSR REPORT 2010

Basic Policies
The Concept of DIC's Own Value

Color

ComfortSolutions

Beyond 2012

(Responding to increasing
digitization and emphasis on design)

Synthetic
resins(Contributing various
industries)

Growth markets

ChemicalSolutionsCompoundand Complex
products(Responding to the needs of
comfort-oriented lifestyle-related industries)*Business Segments

01 Goals of theMedium-Term(Stable earnings base)

Neo-Graphic
Arts・Environment-friendly energy
・Highly advanced homes,
vehicles and electricalappliances

Flow of value creation

Printing Inks・Attractively-designed
packaging・Information display
devices↑・High-performance
printing
・Environment-friendly
printing

Core technologies

Synthetic resins(Used to create colors)

Management Plan

Organic pigments*

Basic materials(Used to add comfort-enhancing
performance features)* Included in the Neo - Graphic Ar ts segment

New Business Segments: Growth Strategies Aimed at Contributing to a Sustainable Society

Neo-Graphic Arts
Materials

In the Printing Inks &Supplies segment, we will
strive to secure profitability
by dramatically reducing
costs in developed countries
and expanding investment
in packaging and othergrowth businesses and indeveloping economies.

In the Neo-Graphic Arts
Materials segment, we will
respond to the diversityof options for transmitting
information by providing
products, primarily in thefield of color, that add value
to digital equipment andother media and will drive
future growth.

Synthetic Resins

Chemical Solution
Materials

In the S ynthe tic R e sinssegment, we will provide
products that impartadvanced per f ormancef e a t ur e s t o pr o duc t s t ocustomers in a variety ofindus t r ie s. We w ill als oprovide diff erentiatedsynthetic resins to othersegments for use internallyas basic materials in complex
and multifunctional products.

In the Chemical Solution
Materials segment, we
will develop a variety of
distinctive products that
integrate the DIC Group’s
core materials—notably
synthetic resins and organic
pigments. We will provide
high-value-added DICbrand composite products
and molded products tocustomers.

High-performance
inks
Attractively designed
packaging

LCD materials

Printing inks

Organic
pigments

Expansion of
peripheralbusinesses

Digital printing

DIC’s basic elemental
technologies
Optical films

03 Our Efforts of Preventing Global Warming

Printing Inks &Supplies

02 Business Activities in Highlight

Effective April 1, 2010, we reorganized our operations into four new principal segments: Printing Inks & Supplies, in which
we enjoy the leading global market share; Neo-Graphic Arts Materials, which augurs the future of printing inks; Synthetic
Resins, encompassing basic materials that impart outstanding performance features; and Chemical Solution Materials,
including products that contribute to peace of mind peace of mind, safety and comfortable lifestyles. Under this new
configuration, we will strive to respond to evolving social imperatives and at the same time to build DIC into a globallyoriented, high-growth organization by realizing our Color and Comfort by Chemistry management vision.

Synthetic
resinsGrowth in thenear future
Present

Beyond 2012

Electronics

Environment-friendly
energyLife sciences
Residential interiors

Growth Area in New Business Segments
where the DIC Group Aims to Promote

7Special Topic

02

Business Activities in Highlight
01 Goals of theMedium-Term~ Introduction of DIC Group’s activities which contribute to a sustainable society ~1. The original brand proposing a solution for interior
problems, DIC200（Decorative Interior Color）

Management Plan

DIC has long been supplying decorative boards andvarious residential interior finishing materials to the
housing/construction market. Trying to supply products
suitable for solving various problems, which people are
faced with in their day-to-day life, DIC launched a new
brand, DIC200 (Decorative Interior Color), to provide
original interior finishing materials in 2008. The brandname “DIC200” is packed with the thought that, having
celebrated DIC’s 100th year in business, all of us have to
aim to create a new brand, with which DIC can continue
contributing to society during the next 100 years.

Incombustible decorative board series

DIC Funen Solid Color

Mono-colored incombustible decorative board

DIC Funen WO

Woodgrain-pattern incombustible decorative board

Artificial marble series

DIC Hicerami Very Pale
Mono-colored artificial marble

DIC Hicerami Basic

Abstract/sand-texture artificial marble

02 Business Activities in Highlight

Wooden decorative board series

DIC Acrysta G

In DIC200, we are pursuing further functionality, making
use of the DIC Group’s expertise, and working on productdesign, trying to create new values, which respond todiverse market needs, from the standpoints of color,
pattern and design.
WEB

Ultra mirror-finish wooden decorative board

DIC Poly Solid

Polyester decorative board

DIC auxiliary materials kits
Color joiners, double-stick tapes,
ceiling materials, etc.

http://www.dic200.com/en/index.html

DIC200 product lineup

Colored Incombustible Decorative Board, in Which the DIC Color Guide Has Been
Developed into Materials ~ Mono-colored Incombustible Decorative Board, Called DIC Funen Solid Color ~03 Our Efforts of Preventing Global Warming

The Funen Solid Color supplied by DIC is an incombustible
decorative board, excellent in taintless property, highhardness, water resistance and durability, and it has beenused for more than 30 years as finishing materials forindoor spaces, restrooms and elevator halls of commercial

Usage example: Wall surfaces of a coffee
shop (ARCHITECTURE + CONSTRUCTION
MATERIALS 2010)

buildings, schools, hospitals
and of fices. In order to
respond to the diverse
needs for color in themarket, DIC expanded therange of supply from thestandard 8 colors, once
and for all, to 42 colors
with high vibrancy, whilestill maintaining a linkage
of color variations withthose color code numbers
specified by the DIC Color

The Incombustibility Certification BM-0458 is obtained
from The Ministry of Land, Infrastructure, Transport andTourism. 6 mm in thickness.

Guide, and we started to supply them in September 2009.
Also, we are pursuing greater comfort in human life byproviding various functions, such as antibacterial effect,
antistatistic performance, pest repellent effect, etc. Thus,
DIC offers colorfulness with distinctive personality andcomfort in life.

Custom-ordered colors are compatible with the DIC Color Guide.

*The decorative board “DIC Funen Solid Color” contains none of the 13 hazardous substances, such as styrene, as shown in the Indoor Air Quality Guidelines of the Ministry of
Health, Labour and Welfare of Japan, and this product satisfies the grade F☆☆☆☆ in terms of the formaldehyde emanation performance specified by the Building Standards
Act, which means a product friendly to the Earth. (This is a voluntary regulation based on the labeling guidelines for regulation-exempt building materials.)8CSR REPORT 2010

Auxiliary Materials from DIC200, Which Are Useful at a Construction Site
~ DIC200 Auxiliary Material Tool ~Color aluminum joiner for the DIC Solid Color*Custom-ordered colors are compatible with the DIC Color
Guide, and we can respond to orders, starting with one piece.

Management Plan

VOICE

paints for repair, double stick tapes, and binding agents, which
are all useful at a construction site, one after another to thelineup.

01 Goals of theMedium-Term

DIC is stepping up the development of auxiliary materials
which are useful for solving problems at a construction site bycombining various elemental technologies with the resources
it has. In May 2010, we started to sell color joiners compatible
with the lineup of 42-color DIC Funen Solid Color decorative
boards. Thus, this made the degree of freedom very diversein color design, which can be adopted for individual joints tocome up with an entire space design. Furthermore, salesof woodgrain-pattern joiners (compatible with the patterns
provided by the DIC Funen WO44) have also started. Making
use of various kinds of expertise in core technologies, suchas printing ink, pigment synthesis, coating, adhesion and tacktechnology, we are planning to add auxiliary materials, including

DIC Funen Solid Color Has Been Chosen for Hospitals in China and West Africa by One Company in Taiwan
Sunmed Medical Group is a company specialized in facilities for
medical institutions. Services in the industry exceed 50 years andare global. Antibacterial decorative boards of DIC Funen Solid Color
are mainly used for the wall surfaces of operation rooms of medical
institutions. Operation rooms are required to have incombustible

02 Business Activities in Highlightand antibacterial characteristics, and the incombustible decorative
boards from DIC were found to be a perfect fit to the customer’s
needs. Thus far, this company has supplied DIC Funen Color Soliddecorative boards to hospitals in not only Taiwan, but also Harbinin China, Ouagadougou, the capital city of Burkina Faso in WestA construction example in Taiwan

Africa, and so forth. Since DIC operates a branch office in Taiwan, Sunmed Medical Groupthe company can maintain communications directly with the material manufacturer, offering a huge advantage of providing high

Mr. Benny Wu

quality services and timely responses. Since actual usage shows that the quality and price of DIC products are very stable, thecompany has chosen DIC as the main supplier of incombustible decorative boards. The company is expecting DIC to further
develop a wide range of new products and high performance products in the future. In addition, the company would like to starta new relationship with the Building Materials Division of DIC even in fields other than the medical area.

VOICE

DIC Funen Solid Color Has Been Chosen for Interior Finishing of a Convenience Store for the First Time in the World
03 Our Efforts of Preventing Global Warming

For FamilyMart shops, the counter of the shop plays an important role:its face. In order to express something unique to FamilyMart through its
counter, we had to create an image color, which can intensively resonate
in customers’ minds, something like healing, relief, gaiety and so on.
We thought that there was no other material (color) than DIC Funen
Solid Color, which was suited to perfectly expressing the image we,color coordinators, had. We reached our final conclusion after we had
exhausted various analyses and comparisons with painted, melaminefinished, sheet and aluminum composite materials. Although theyshow a chic and gentle expression like a paint finish, the DIC Funen
Solid Color decorative boards are excellent in durability, easiness at aconstruction site, cleaning performance, maintenance, etc.
Construction example at the FamilyMart shop at Shibadaimon

Through a tremendous amount of help offered for coordinating colors

based on the DIC Color Guide and the color selection made in an appropriate and speedy manner, we were able to attain the target color. It is possible tocreate various expressions, depending on the color selected, degree of brilliance to be given to the surface, finished shape and so forth. We would like to see
DIC further respond to market needs as a color consultant, even beyond our expectations.
Person in Charge of Commodity Adoption
Shop Planning Group, Construction Planning Department, Development Division,
FamilyMart Co., Ltd.

9

Special Topic

02 Business Activities in Highlight ~ Introduction of DIC Group’s activities which contribute to a sustainable society ~2. Our Efforts in Environmental Responsiveness with Printing Ink Products

01 Goals of theMedium-Term

In the midst of environmental protection activities expanding
worldwide, the printing ink industry is no exception. Ink products
not using hazardous substances (soy-oil ink and vegetable ink) of
which decrease the use of petroleum-derived solvents have beendeveloped. Even “none-VOC ink,” which does not contain any
petroleum-derived solvents, is gaining momentum in its market
share. Waterless printing ink, which does not discharge water, cancontribute to a reduction in VOC release from the entire printing
process.

We are also prepared to supply a special kind of ink, suitablefor LED-UV lighting which is used at the drying stage to reduce
electricity consumption, and another kind of ink with the property ofeasiness in recycling, etc. Thus, we have various kinds of products
compliant with environmental protection activities through printing.
It is possible to select an environment-conscious printing ink ofbest choice, depending on the customer’s needs.
WEB

http://www.dic-graphics.co.jp/en/

Environment-conscious Printing Ink Which Is Developed for the Domestic Market by the DIC GroupVOC reduction in the entire printing process

Energy reduction at the drying process
Hybrid UV

LED UVManagement Plan

Water Washable
Water washable property

Compliant with new energy-conservation lamps
Quicker curing, increased printability

Taking recycling property into accountNon-VOC

02 Business Activities in Highlight

Waterless
Waterless printing

RecycleNon-VOC Ink

Carbon offset
Further taking the environment into accountNon-VOC sheet-fed ink

Increased deinking property by the use of UV ink
Imparting of light-oil washing

Enhancing carbon offset

SeriesIndustry’s first non-VOC ink
Biomass Mark-certified ink

Industry’s first petroleum
solvent-free web-fed ink
Vegetable oil solvent used

3. Offset Ink for LED-UV
03 Our Efforts of Preventing Global Warming

The UV ink is designed to cure instantaneously through a
photochemical reaction by means of UV energy, thereby
showing a higher productivity than oil-based ink withnatural drying characteristics, and this ink is also of theenvironment-conscious type (no VOC is contained). Dueto these characteristics, the printing utilizing the UV ink
has been broadly employed mainly for package printing forwhich many processing stages are required and therefore
rigorous physical properties come into play. Recently, thehigh productivity and highly value-added property of the
UV printing are drawing attention also in the field of generalprinting.
When using the LED-UV printing system, a reduction of 70 to
80% of electricity consumption can be expected as comparedwith the printing system using a conventional UV lamp.
Also, partial lighting can be adopted easily, accommodating
different paper sizes. So, these characteristics contribute toa reduction in environmental impact. Furthermore, there arevarious advantages: the lamp serves for a prolonged periodof time, more than 10 times longer than before; improved

10

productivity can be expected since the on/off operation is
simple to do; there is no formation of ozone; and no thermal
deformation occurs in printed matters. On the other hand,since the LED-UV lamp is weak in irradiation intensity andits light contains no short-wave UV light, sufficient curingis hardly attained for conventional ink. To cope with thisproblem, Daicure ABILIO® LED offers a UV offset ink, whichcures under an LED-UV lamp without allowing its excellent
ink properties to change.

LED-UV offset ink

CSR REPORT 2010

4. Process Ink for Sheet-fed Printing
Having the world’s top share*1 in printing ink and organic
pigments, DIC Group is promoting the optimization of theink production/supply system globally.
We started the production of environment-conscious
sheet-fed process ink, called SunLitTM Diamond, at a
global mother plant newly established at the Dahej special
economic zone in Gujarat Province in eastern India, fromthe end of last year. So, we are promoting the global supply
from there.
The aforementioned plant is a state-of-the-art automatedplant with its core equipment from Europe and is capableof producing high-quality sheet-fed process ink efficiently.
We plan to expand its capacity in stages from now on, andbring it to a plant with a huge capacity, 30,000 tons per
year, at the final stage.
The sheet-fed process ink supplied from this plant tovarious places globally, contributes to carbon offset as

Management Plan

A ceremony for the plant opening

01 Goals of theMedium-Terma non-VOC product, also environment-conscious incompliance with international standards, such as RoHS,
REACH and EN71/3.
As a global mother plant, this is the second one following
the Nantong plant, established in China. In the DIC
Group, we will continue to work on the optimization of the
production/supply of various kinds of ink.

Appearance of the global mother plant*1 A
 s for our global share, the printing ink shares approximately 30% and organic pigments share approximately 25%. The organic pigments are the main raw materials for the
printing ink.

5. Green Pigment for the Color Filter of the Liquid Crystal Display
02 Business Activities in Highlight

In the liquid crystal display, color images are produced
when the lights produced by the cold cathode tube or
LED located in the back of the LCD panel are transmitted
through the three-color filter (red, green and blue). So,
depending on differences in the characteristics of thecolor filter, the spectrum and intensity of the transmitted
light varies; namely, these characteristics largely affect theperformance of the LCD panel.
DIC’s FASTOGEN Green A110, as a green pigmentused for the color filter of the LCD, including LCD TV
sets, shows a tremendous improvement in luminancecharacteristics, contrast ratio and color purity, as comparedwith conventional pigments. Due to this, in addition to
improved high-quality images of LCD, since the same levelof brightness can be generated with a lesser amount oflight than ever before, a sizable electricity saving can beachieved.

Polarizing plate

Structure of an LCD

Glass substrate

Display

1) Luminance 2) Chromaticity
3) Contrast are the main opticalproperties required for the color filter.

Color filter

ITO electrode03 Our Efforts of Preventing Global Warming

Overcoat

Polyimide alignment film

Liquid-crystalline material

TFT electrode

Photo spacer

Glass substrate
Polarizing plate

Backlight

6. Urethane Resin for Artificial Leather
Urethane resin is used for car seats and interior finishing
as a raw material of artificial leather and imparts an
excellent texture close to that of real leather.
DIC’s polyurethane resin destined for artificial leather tobe used for the interior finish of cars provides excellent
durability and comfortable ride quality due to its own
unique expertise in resin designing, composition andprocessing. Also, in order to respond to the requirement
for the decreasing of VOC inside the vehicle, we are also
putting our efforts into the development of environmentallyfriendly products, such as toluene-free and water-basedmaterials.

Car seat11Special Topic

02 Business Activities in Highlight ~ Introduction of DIC Group’s activities which contribute to a sustainable society ~7. Halogen-free PPS Resin

01 Goals of theMedium-Term

Mainly in the computer industry, the effort of eliminating
halogens (i.e., chlorine and bromine, which trigger
the formation of dioxin, the causative agents forenvironmental destruction) from products is intensifying.
PPS (polyphenylene sulfide) from DIC is used as amaterial for electronic parts, such as connectors, optical
pickup devices. Although the PPS resin does not use
any halogen-derived fire retardants, it is regarded asa halogen-containing resin due to a trace amount ofchlorine, which is inevitable due to its structure. So,

requests for decreasing the chlorine content wereincreasing. By combining its own polymerization
exper tise with an alloying tec hnolo gy, DIC has
successfully decreased the chlorine content of the
PPS resin to a level lower than the requirement level,
900 ppm. Thus, DIC has completed the lineup of lowhalogen PPS compounds.
WEB

http://www.dic.co.jp/en/products/pps/

Management Plan

02 Business Activities in Highlight

Connectors

A component for CD pickup lenses

8. Environment-conscious Adhesives Used for Food Packaging

03 Our Efforts of Preventing Global Warming

Adhesives used for food packaging are those adopted
for the laminating process of plastic films and/or
aluminum foils used as packaging materials for various
kinds of food, such as snacks and vacuum-packed
foods.
For the general-use food packaging materials used
for snacks etc., the adhesion characteristic is mainly
required, whereas, for the packaging materials used for
vacuum-packed foods, various properties are required.
Heat-resistant properties to allow the sterilization athigh temperatures to be conducted prior to shipping or
high-temperature cooking, and high-moisture resistanceproperties are mainly required. Solvent-type adhesives,
which are used for the lamination after being diluted
with a solvent, are mainly used. However, in the case ofsolvent-type adhesives, the release of VOC occurring at
the time of dilution of the adhesive and during the drying
process of the solvent thereafter is pointed out as aproblem.
In order to cope with this problem, the DIC Group has
developed various kinds of adhesives, including a highsolid type in which the amount of organic solvent isreduced, a water-based type for which tap water can beused, and a non-solvent type for which no dilution with asolvent is required.

An ample lineup of non-solvent type adhesives
Since the non-solvent type adhesive does not require
any dilution at the time of the lamination process andthereby the process of drying the solvent out can beomitted, the VOC release can be avoided, and even asizable amount of solvent cost can be reduced. We haveobtained an approval for our Food Contact Notification
submitted to the U.S. FDA and thus the safety as a foodpackaging adhesive is already confirmed.
DIC Graphics has prepared a product lineup that covers
non-solvent-type adhesives for the range from snacks tovacuum-packed foods and the entire range of usage ofsolvent-type adhesives.

Various kinds of snacks

12

Special Topic

CSR REPORT 201003

01 Goals of theMedium-Term

Our Efforts of Preventing
Global Warming:
Engagement of the Kashima Plant
Introduction of Wind Power Generators

Management Plan

Based on an ESCO (energy service company) business agreementwith Hitachi, Ltd., DIC started to operate a wooden biomass boiler anda steam turbine power generator in FY 2008, and installed two sets of
2,300 kW-rated wind power generators manufactured by Enercon from
Germany and started their operation in FY 2009. The Kashima district
is located on the Pacific Ocean coastline with good wind conditions andan average wind speed of 5.5m/s. As for the main features of these wind
power generators, although they are one of thelargest facilities in Japan, they are capable ofstarting the generation of power (440 V) evenwith a wind speed of only 2.5 m/s. So, the costin maintenance and their noise level can be
reduced due to the gear-less construction,
they are of variable speed type and high inefficiency, and stresses caused by lateral winds
are low due to their cylindrical design adopted
for the crown shape. Together with biomass
electric generation, they will significantly
contribute to the reduction of fossil-fuel energy
consumption and CO2 emissions.
Biomass power generation facilities
Before the Restructuring Plan

After the Restructuring Plan

(FY 2004)

Purchased
electric power(FY 2009)

Electric
power

Purchased
electric power

50,000

Steam

Wood chips
50,00040,00040,00030,00030,00020,00020,035
Amount ofenergy consumption(kl/year)

48,62920,00010,0000

CO2 emissions(t-CO2/year)

03 Our Efforts of Preventing Global Warming

Steam

Wood chips

0Electric
powerWind power
generation

Kerosene

10,00002 Business Activities in Highlight

Wind power generators (The portion on the near side of the canal is the site of the DIC Kashima Plant.)-49%*
10,207
Amount ofenergy consumption(kl/year)-55%
21,801CO2 emissions *A reduction of 49%(t-CO2/year)

refers to the fossil
fuel-derived energy.

Effects of the Restructuring
As an effect of the global warning prevention achieved through the energy restructuring made to the Kashima Plant in
FY 2009, an amount of CO2 emissions of 31,423 tons (equivalent to 59% of the entire Kashima Plant) was reduced. Asa break down, an electricity amount of 5,315 MW (equivalent to 1,320 kl of crude oil) was generated by the wind power
generators, where an amount of 2,222 tons in CO2 was reduced, and a heat amount of 474,913 GJ (equivalent to 12,253
kl of crude oil) was generated by the biomass boiler, where an amount of 29,201 tons in CO2 was reduced.
The amount of CO2 emissions reduced at the Kashima Plant shares 11% of the total CO2 emissions released by theentire domestic DIC Group in FY 2009.

13

Special Topic

03 Our Efforts of Preventing Global Warming:

Effort made by the Sun Chemical Group
SunCare ® Management System

01 Goals of theMedium-Term

The Sun Chemical Group recognizes that the fulfillment of corporate social responsibility is the core of their business
management. Therefore, in order to secure the environmental protection and employees’ safety and health and respondto the needs of society, the entire group is promoting its own SunCare ® management system.
The SunCare® management system is designed to make the continued activities for the environment, safety and healthsustainable and to enable
them to improve. Also, typicalexamples of practicing the
SunCare® program areshared by the entire group
and are useful for the training
on compliance and risk
management.

Management PlanWEB

http://www.sunchemical.com/

SunCare ® session (Illinois, USA)

SunCare ® session (California, USA)

Energy Consumption Reduction Project02 Business Activities in Highlight

In order to reduce the environmental impact derived
from its own business activities, the Sun ChemicalGroup has reduced its environmental impact since 2005
by collecting environmental performance data, such asenergy consumption, water consumption and waste,
and implementing various measures designed to reduce
individual performance metrics. Reduction of carbon
dioxide (CO 2) emissions, which contributes to theprevention of global warming, goes hand-in-hand withthe reduction of energy consumption. Six main projects
have been implemented to reduce energy consumption:

03 Our Efforts of Preventing Global Warming

1. R eduction of the base loads of the systems andequipment their non-operating periods
2. Correct setting of air compressor pressures
3. Re-examination of lighting efficiency and switchingover to an energy-saving lighting system
4. R
 eduction of natural gas consumption by reusing
the energy obtained from heat recover y fromproduction systems, equipment and cooling water
5. L eveling-off of utility demands (such as electricity
and natural gas)
6. O
 ptimization of temperature control of airconditioning units

VOICE

Consequently, the energy consumption in FY 2009 was
reduced by 8.6% as compared with FY 2005.
The major contributing factor was the amount ofpurchased electric power, which we successfully
reduced by 34%. With this achieved, the amount of CO2
emissions from the entire Sun Chemical Group was
275,161 t-CO2.
Sustainability Performance (Electlicity/Thermal Energy)(1,000MWh)

2,000

Compared with 2005

-8.6%

1,500

1,000

983

898

442

292

541

606

500

0

2005

Purchased Electricity (left axis)

2009(fiscal year)

Natural Gas*1 (left axis)*Total number of sites, including manufacturing, warehouses and admin is 145,
The percent of sites included in metrics is 91.
*1 Thermal energy is primarily the natural gas consumed on-site to
generate required process and building heat.

Energy Reduction Project: the Sun Chemical plant in Koge, Denmark

The production plant in Koge, which is operating as a major production site of pigments in Europe,
introduced an energy management system in 2003 in order to manage various activities for
reducing the energy consumptions and potential energy demands, and ever since then it has
earnestly been working on it.
In order to boost employees’ sense of participation in the energy saving effort, we selected energy
team members, who could work as core participants at each manufacturing department, andprovided them with training regarding how to properly survey and conduct an analysis on thepresent status on each department and how to discover opportunity for a reduction in potential
energy demands.
We have attained significant results from the two most recent projects: one was to set building heat
Energy team members
control systems correctly, and the other was to optimize production processes (i.e., a 6Σ projectapplied to the waste water treatment system). Concerning the 6Σ project, since the biological treatment process used for the waste
water treatment facilities was operating round-the-clock, we closely looked into the relationship between the operation conditions
and the waste water treatment performance, and thereby we succeeded in achieving an energy reduction of approximately 60%.
At the same time, we successfully satisfied the effluent standard in the same manner as before. Through these two projects, weachieved an energy reduction of over 3,000 MWh per year (equivalent to an annual reduction of approximately 1,000 tons in CO2emissions). Presently, we are promoting new energy saving projects aimed at an annual reduction of greater than 2,000 MWh.

14

CSR REPORT 2010

Report on Our CSR Themes
WEB

Compliance

Report on Compliance
http://www.dic.co.jp/en/csr/management/index.html
Annual Meeting ofStockholders

http://www.dic.co.jp/en/csr/management/governance.html

Remuneration
Committee

CSR Committee

Internal Control
Dept.

Board ofDirectors

Audit

President

Independent
audit

Board ofAuditors

Independent
auditors

Executive
Committee

Business Operations, Administrative Department, Sales Branches, factoriesGroup
companies

Internal audit

Targets and Achievements of Major Approaches
Spread and establishment ofcompliance awareness andCSR in the DIC Group

Implementationof a self-check
regarding The
DIC WAY andCSR

Generally high complianceawareness has been
identified as a result ofcollection of responses

・Preparation and distribution of
the Q&A on The DIC WAY Code ofBusiness Conduct (Japanese version)
・Building of an English/Chinese version
e-learning system on The DIC WAY
Code of Business Conduct

Improvement of theawareness to comply with
the Antimonopoly Act to bestrengthened

Improvementof the system
to comply
with theAntimonopolyAct

A total of 36 explanatory
meetings on the revised
Antimonopoly Act ofJapan were held.

・Preparation and distribution of the
Q&A on measures of unfair trade
・Development of rules for contacting
people in the same business toprevent the infringement of the
Antimonopoly Act

Establishment of a system totake a decisive stance towardanti-social groups

Establishmentof a preventive
system in DIC
and domestic
Group
companies

Almost all persons in charge ofmeasures against anti-socialgroups attended and completed
the training course offered by theneighborhood Prefectural Centers
for the Elimination of Boryokudan.

To make efforts in respective
offices to build a system to address
anti-social groups, with the persons
in charge taking the lead, basedon the DIC Group’s Manual for
Dealing with Anti-Social Groups.

http://www.dic.co.jp/en/csr/management/code_of_conduct.html

Major Activity Highlights
For the further enhancement of corporate governance,a total of four board members, consisting of two external
directors and two external auditors of DIC, have been
designated as independent directors/auditors under
the Securities Listing Regulations of the Tokyo Stock
Exchange in March 2010.
Enhancement of the System for Compliance with
the Antimonopoly Act
In conjunction with the revision of the Antimonopoly Act ofJapan in January 2010, explanatory meetings were held
regarding the compliance with the law (involving subsidiaries
and affiliates). A total of 36 meetings were participated byabout 900 persons, consisting mainly of salespersons.
DIC continues to make efforts for the further strengtheningof the system to comply with the Antimonopoly Act now andin the future.

Information
Disclosures of CSR

The DIC Group conducted a self-check regarding The
DIC WAY and CSR in a total of 124 business locations,
including divisions, offices and subsidiaries both athome and abroad. Based on the responses madeby division presidents, office general managers andsubsidiary presidents, it has been confirmed that the
spread of The DIC WAY and CSR is being promoted
throughout the DIC Group.
On October 1, 2009, the DIC Graphics Corporation,
formed by the integration of the domestic printing inks
business of DIC and The Inctec Inc. (a subsidiary of
the Dai Nippon Printing Co., Ltd.), offered an e-learning
program on The DIC WAY Code of Business Conduct tothe new members since the integration, and completed.

Harmony with theCommunity andContribution to Society

Enhancement of Corporate Governance

Human Resource
Management

Spread of The DIC WAY

Our Business Models
Focused on Customer
Satisfaction*For details, please visit the following page on the DIC website at WEB

The Environment,
Safety, Health andQuality

Measures
AgainstAnti-Social
GroupsTargets for FY 2010

New Technology
Development andValue Creation

Ensuring ofFair Trade

Achievements in FY 2009

Supply Chain
Management

ComplianceViewpoints and tasks of the approaches Targets for FY 2009

The Reliabilit y of
Financial Reporting■ Compliance
Items

Information
Security

WEB

Nomination
Committee(Business Continuity Management)

The DIC Group makes efforts for the improvementof corporate governance to promote a sounderand more ef ficient management for theachievement of sustainable corporate growth anddevelopment.

BCM■ Corporate Governance15

Report on BCM (Business Continuity Management) / Report on Information Security

Compliance

Report on BCM (Business Continuity Management)*WEB

http://www.dic.co.jp/en/csr/management/bcm.html*The theme name has been changed to BCM (Business Continuity Management) starting from FY 2010.

Targets and Achievements of Major Approaches(Business Continuity Management)

BCM

Information
Security
The Reliabilit y of
Financial Reporting
Supply Chain
Management
New Technology
Development andValue Creation
The Environment,
Safety, Health andQuality
Our Business Models
Focused on Customer
Satisfaction

Human Resource
Management
Harmony with theCommunity andContribution to Society

Information
Disclosures of CSR

16

Viewpoints and tasks of the approaches

Targets for FY 2009

Achievements in FY 2009

To develop a BCP in eachbusiness operation

Development of a BusinessContinuity Plan (BCP) in eachbusiness operation based on the(draft) Main Points of BusinessContinuity Management (BCM)

The plans have been developed
except in the Graphic Arts Business
Operation.

Development of a business
operation-wide BCP

To determine the Main
Points of BCM

Adjustments of and determinationon the Main Points of BCM to gain
approval of the CSR Committee

Targets have been achieved asplanned.

Continuous review of the Main
Points of BCM

To revise the Regulations
on Crisis Management for
Disasters

Establishment of a basic policy for
Business Continuity Management;
Establishment of the Rules of
Crisis Management for Disasters

Targets have been achieved asplanned.

Implementation of maintenanceand training of the crisis
management system against
risks other than disasters/
Implementation of drills

Establishment of the BusinessContinuity Management (BCM) Policy
The DIC Group has established the Business Continuity
Management Policy with the following purposes inorder to be prepared for a variety of risks that may
affect business continuity, including large-scale natural
disasters, accidents in factories, major outbreaks ofinfluenza, etc.
1.	We will make our ut most ef for t s to ensure
the safety of lives of employees, workers ofcooperating companies, local residents, etc.
2.	We will serve the local community in evacuation
and relief activities for afflicted citizens andreconstruction assistance for afflicted areas.
3.	We will carry out our responsibility to supply
products to customers by continuing the supplyof main products or by resuming supply as soon
as possible.
4.	We will continue operating to the extent possible
to minimize the effect on our business so as
to live up to the expectations of shareholders,
creditors and employees.

The Business Continuity Management Policy specifies
the following items, other than the purposes as listed
above:
・Scope of application of BCM
・Framework of BCM
・Establishment of an effective operation system
for BCM
Please visit the DIC website for details of the measures
for BCM, including the Business Continuity Management
Policy.

Targets for FY 2010

Major Activity Highlights
Based on the Rules of Crisis Management for Disasters,
an emergency communications drill, using the Disaster
Safety Confirmation System, was carried out with thefollowing purposes:
1.	In order to be ready for a sure safety confirmationin an emergency.
2. I n order to have the members/managers of theDisaster Safety Confirmation System acquaintthemselves with the operational procedures for aproper operation of the system.

VOICE

Approaches to BCM

Business Continuity Management(BCM) tends to b e r e g a r d e d
as a defensive management
strategy from the aspect ofcrisis management.
We engage in BCM, however, tomake our employees aware that
it is an aggressive management
strategy that will help improvethe customer s’ tr ust in DIC
through the strengthening of
Takayuki Hariu
corporate foundations, and as a
General Affairs Section,
result, produce various positive
General Affairs and HR Dept.
effects on business operations.
In FY 2010, along with our efforts in BCM, we plan towork on crisis management that requires even speedier
responses.

CSR REPORT 2010

WEB

Compliance

Report on Information Security
http://www.dic.co.jp/en/csr/management/security.html

Targets and Achievements of Major Approaches
Targets for FY 2010

Establishment of the Confidential
Information Management
Regulations and setting up
of information management
guidelines

・The Confidential Information
Management Regulations
were established in December
2009 and specific information
management guidelines are
currently being developed.
・The establishment of an integrated
ID authentication infrastructure
has been internally approved andactivities for the establishment
have started (with a scheduled
completion by April, 2011).

・To set up confidential information
management guidelines andkeep every employee informed of
the Regulations through internal
education.
・To enhance IT governance within
the Group.

Information
Security

Achievements in FY 2009

PresidentInternal Audit Team

Division

Division

Division

Administrative
Dept.

Chief Information Manager (Business Operation President,
Officer in charge in the Administrative Dept.)

Information Manager(Division Presidents, Technical Dept. General Manager, etc.)

Advice and instructions
on management methods, etc.

Information
Disclosures of CSR

Designation

Dept. responsible
for management

Harmony with theCommunity andContribution to Society

Division

Information Security Sub-Committee

Information Systems Dept.
Intellectual Property Dept.
Legal Dept.
General Affairs and HR Dept.
Technical Planning Dept.
Production Management Dept.

Human Resource
Management

Audit

Chief Information Management Officer(Information Security Sub-Committee Chairman)

Our Business Models
Focused on Customer
Satisfaction

Corporate Social
Responsibility Committee

The Environment,
Safety, Health andQuality

Board of Directors

New Technology
Development andValue Creation

DIC Group Information Security Management System Chart

Supply Chain
Management

The DIC Group recognizes that it is important for businessactivities to properly manage and use information assets
and positions information security as an importantmanagement item. We established the Information
Security Policy in FY 2006 and worked to improve ourinformation security system.
In FY 2009, we established the Confidential Information
Management Regulations as internal regulations basedon the Policy to establish a management and protection
system for information assets. In compliance with theseregulations, the Chief Information Management Officer isdesignated as the person responsible for the companywide information security system and Chief Information
Managers and Information Managers are positioned
in respective business operations and administrative
departments for the proper management of information
assets.

The Reliabilit y of
Financial Reporting

We have developed management and use guidelines
for information devices, including personal computersand servers, to ensure compliance with the internal ruleson the prohibition of the use of business information on
personal computers installed at employees’ homes andothers for the increased awareness of employees. In FY2010, we plan to develop specific information management
guidelines based on the Confidential Information
Management Regulations and work to keep every
employee informed of the above Regulations throughinternal education.
In terms of systems, starting from FY 2009, we are building
an integrated ID management system on a companywide basis in addition to the conventionally conductedprevention of fraudulent connections to our internal
network and automatic detection of harmful software.
Moreover, we started introducing a system to prevent
leaving or taking away confidential materials by requiring
personal authentication using company IC cards at thetime of using a printer, copier, and other output equipment.

Major Activity Highlights(Business Continuity Management)

Protection of BusinessInformation

Targets for FY 2009

BCM

Viewpoints and tasks of the approaches

17

Report on the Reliability of Financial Reporting / Report on Supply Chain Management

Compliance

Report on the Reliability of Financial ReportingWEB

http://www.dic.co.jp/en/csr/management/finance.html

Targets and Achievements of Major Approaches
Targets for FY 2009

Achievements in FY 2009

Targets for FY 2010

To promote the transferof routine operations
to the Shared Service
Center based on thereview by the project
team・We have developed an action
plan and made preparations forthe implementation in FY 2010

・Setting up of the BusinessSupport Dept. and promotion of
the standardization of operatingprocedures through the integrationof factory accounting divisions
・Promotion of efficiency throughthe integration of accounting
centers into the Operations Support
Department

Improvement and design ofrules and regulations, anddocumentation of businessprocesses

Upgrading of internal
controls by promoting
improvement ofregulations anddocumentation ofbusiness processes

・The Internal Audit Charter have been
established・The Confidential Information
Management Regulations have been
established・DIC Group Purchasing Management
Rules have been established・The Regulations of DIC Graphics havebeen developed and documentationof business processes has beenpromoted

・Establishment of credit management
regulations
・Establishment and documentationof standard business processes
after the setting up of the BusinessSupport Dept.
・Improvement of the efficiency ofthe management of internal control
documents

Internal audit

To look for measures
to increase
efficiency such as
standardization ofaudit procedures・The Internal Auditing Manual has
been developed・A theme audit was conducted on a
trial basis (Audit of transfer pricing)・Implementation of the audit ofcorporate governance of regional
headquarters
・Improvement of the Internal Audit
Manual (Addition of a chapter
regarding audit of IT controls)

Self-assessment

Increase ofeffectiveness andefficiency of selfassessment

・Spread to DIC Graphics
・The self-assessment checklist has
been improved・Self-assessment with affiliates astargets has been implemented

・Increase of efficiency ofmanagement and evaluation ofself-assessment

The Environment,
Safety, Health andQuality

Major Activity Highlights

Information
Security

Organization

New Technology
Development andValue Creation(Business Continuity Management)

BCM

Viewpoints and tasks of the approaches

The Reliabilit y of
Financial Reporting
Supply Chain
Management
Our Business Models
Focused on Customer
Satisfaction

Human Resource
Management
Harmony with theCommunity andContribution to Society

Information
Disclosures of CSR

18

In order to comply with the Internal Control Report System (J SOX) under the Financial Instruments and ExchangeAct, all personnel in the DIC Group related to financial reporting of the business locations both at home and abroad
have worked to establish appropriate internal controls. While working on the improvement of internal regulations suchas accounting guidelines and authority-related rules and documentation of operating procedures, we make efforts
toward the continuous improvement and upgrading of the reliability of financial reporting by monitoring the design andoperational status of internal controls from a standpoint independent of the business activities and repeating the cycleof design, assessment, and improvement.
Idea to Set Up a Shared Service Center
In order to balance the maintenance and securing of areasonable level of internal controls and the operationalef ficiency in FY 2009, a project team was set up
to review the idea of performing routine operations
collectively at a shared service center. In this project,a plan has been developed to transfer, in stages, sales
accounting, factory accounting and cashier operations
to the Business Support Dept. to be newly set up. In
the future, by implementing this plan, operations thathave been performed respectively in factories, branches
and affiliates will be integrated and improvement in
operational efficiency and promotion of standardizationof business processes are expected.
Optimization of Monitoring Procedures
Regarding monitoring procedures, staff in the internal

audit at regional headquarters in Japan, Southeast Asia/
Oceania region and Greater China district have jointly
reviewed the standard internal auditing procedures andcompleted the development of the Internal Audit Manualin April 2010. For assessment procedures as well,
we work to balance the improvement of efficiency bystandardization and that of effectiveness by choosing anappropriate scope and methods of audit depending on
the degree of risks.
Activities in Sun Chemical GroupThe Sun Chemical Group is working on the introductionof a new ERP package and a shared service center.
With these measures, the internal control flow will be
integrated and by shifting to IT controls, the reliability offinancial reporting will be more effectively ensured andmaintained.

CSR REPORT 2010

WEB

Compliance

Report on Supply Chain Management
http://www.dic.co.jp/en/csr/stakeholder/partner.html

Targets and Achievements of Major Approaches
Viewpoints and tasks of the approaches

Targets for FY 2009

Achievements in FY 2009

Targets for FY 2010

A follow-up will be made on the establishmentof the Purchasing Management Rules used bydomestic affiliated companies, using the DIC
Group Purchasing Management Rules as a model.

DIC Group Supply Chain
CSR Deployment Guidebook

Prepared in
December 2009

Distributed to major
suppliers in February
2010

The DIC Group Supply Chain CSR Deployment
Guidebook (Ver.1) will be prepared and distributed,
and questionnaires will be collected, while English
and Chinese versions will be prepared in order tostart actions for overseas suppliers.

DIC Group Purchasing Management Rules
Fundamentals

DIC Group CSR Procurement Guidelines
DIC Group Green Procurement Guidelines

DIC Group Supply Chain CSR Deployment Guidebook

CSR Deployment Answer Sheet:
By self-evaluating in three stages the status of
their own effort regarding those 38 CSR items,
suppliers can better understand the status ofprogress of their own company in CSR activities.

DIC Group Green Procurement Guidelines
Survey Sheet:
A sur vey is c onduc ted on raw mater ial
manufacturers regarding whether or not they
are compliant with the DIC Group Green
Procurement Guidelines.

Feedback of
DIC Group
Evaluation Findings:

・By feeding back to suppliers the evaluation findings obtained from the CSR Deployment Answer Sheets submitted
by individual suppliers, CSR efforts are promoted by each supplier.

Information
Disclosures of CSR

Improvement activities

Harmony with theCommunity andContribution to Society

・DIC Group Universal Purchasing Policy
・DIC Group CSR Procurement Guidelines
・DIC Group Green Procurement Guidelines
・DIC Group CSR Promotion Self-Check Sheet
Based on the nine main CSR items,
a breakdown into 38 specific items is made, andboth questions and explanations are provided.

A guidebook to be used by suppliers to better understandand deploy the DIC Group CSR activities:

Human Resource
Management

Educational activities

Our Business Models
Focused on Customer
Satisfaction

Guidelines for the manufacturers of the raw materials to bepurchased are required■ Criteria for the selection of manufacturers:
・Implementing chemical management thoroughly in compliancewith the relevant regulations of raw materials.
・Obtaining a certification for the environmental management
system or working on the environmental conservation.
・Reducing environmental impact for the entire products.
■ Criteria for the selection of raw materials:
・Submitting MSDS, MSDSplus and DIC Raw Material Survey Sheet
prepared in compliance with the relevant regulations.

The Environment,
Safety, Health andQuality

The nine items are required for suppliers to satisfy:

1) Compliance with laws and social norms
2) Respect for human rights and consideration to work environment3) Promotion of a sound business management
4) Consideration to the environment5) Information security
6) Appropriate quality, safety and improved technologies7) Flexible attitude to implement stable supply and respond to changes8) Contribution to a local community and society9) Promotion of CSR and deployment of it into a supply chain

New Technology
Development andValue Creation

The Purchasing Management Rules were put into effect in January 2010 in order to implement the DIC Group Universal Purchasing Policy.

Supply Chain
Management

DIC Group Universal Purchasing Policy
The Basic Purchasing Policy (four items) of the DIC Group was established in July 2008, based on the spirit of The DIC Way.

The Reliabilit y of
Financial Reporting

The DIC Group believes that we need to focus on society and the environment in our entire supply chain from theprocurement of raw materials to manufacturing and sales of our products. So, as an effort toward carrying out CSR
procurement, we established the DIC Group CSR Procurement Guidelines and the DIC Group Green Procurement
Guidelines, both of which are useful as guideposts to suppliers. In order for everyone to understand both guidelines properly,
we prepared the DIC Group Supply Chain CSR Deployment Guidebook, distributed its copies to major suppliers andcollected check sheets from them.

Information
Security

Effective January 1,
2010(Business Continuity Management)

Established in
September 2009

BCM

Purchasing Management
Rules

・Based on the findings from the DIC Group Green Procurement Guidelines Survey Sheets, improvement isrequested to specific raw material manufacturers.

*As for the DIC Group’s Universal Purchasing Policy and the DIC Group Supply Chain CSR Deployment Guidebook, please refer to
DIC’s website: WEB http://www.dic.co.jp/en/csr/stakeholder/partner.html

19Report on New Technology Development and Value Creation

Compliance

Report on New Technology Development and Value CreationWEB

http://www.dic.co.jp/en/csr/technology-development.html

Targets and Achievements of Major Approaches(Business Continuity Management)

BCM

Information
Security
The Reliabilit y of
Financial Reporting
Supply Chain
Management
New Technology
Development andValue Creation
The Environment,
Safety, Health andQuality
Our Business Models
Focused on Customer
Satisfaction

Human Resource
Management
Harmony with theCommunity andContribution to Society

Information
Disclosures of CSR

20

Viewpoints and tasks of the approaches

Development ofenvironment-conscious
technologies/products

Targets for FY 2009

Achievements in FY 2009

Targets for FY 2010

Promotion of research subjects
on the environment

An increase of 14% in thenumber of reseach subjects on
the environment

・Promotion of research subjects on theenvironment
・Launching of new environmentally conscious
products on the market at an early date

Our Accomplishment until FY 2009
The DIC group is working on the development of newtechnologies and products aimed at the realization of the DIC’s
theme “Color & Comfort by Chemistry.” The R&D force of
DIC is made up of the Technical Department of each Divisionand the Corporate R&D Department, and it maintains close
coordination with various technical arms (as showed in the
Figure on page 21). It aims to conduct R&D more efficiently
at a higher speed by making use of management resources
globally.
As for environment-conscious products, we introduced an inhouse certification system in 2003 and since then we havebeen striving for a successive expansion. In 2008, in orderto respond to changes in social demands for environmental
harmony, we updated our own cer tification system; forexample, all the registrations have to be re-examined every
three years. The ratio of the environment-conscious products
vs. the entire products in FY 2009 was 44%.

*Reorganized into a new business segment, effective April 1, 2010.
However, in this page the reporting is made based on the old segment.

Graphic Arts Business Operation
Regarding the offset ink, we improved the sheet surface drying property and rub resistance property of thevegetable oil sheet-fed process ink to an industry top-level, and thus we developed a new product which
can respond to the needs of an 8-color duplex printing machine. As for the adhesives, we are working on
the development of various new products to be used for non-solvent-type food packaging materials, andwe have prepared a system that can cover all the usages of conventional solvent-type products. Also,
the adhesive for a solar cell’s back sheet has been adopted by one of the top back sheet manufacturers.
As for the pigments, color filter-use green pigment is currently expanding its satisfactory performance at LCD panel manufacturers.
Furthermore, new products of blue pigment have also been put into the market.
Concerning the group companies overseas, Sun Chemical is working on the development of many new products. They are in thecourse of creating a new family of products with energy beam-curing ink aimed at a broad range of usage, including UV LED offset
ink, EB (electron beam) cured inks for paper packaging, etc. In the field of electronics ink, we are working on silver ink, silver paste,etc., aimed at antennas used for IC cards and solar batteries. Concerning pigments, we have developed a new line of product, which
is characterized by intense, vibrant colors that can be used for cosmetics, i.e., lipsticks.

Industrial Materials Business Operation
For synthetic resins, while we work on expanding the UV resin business, by combining our various
technologies, we are also developing high-value added and environmentally-friendly products. Concerning
resins, aiming at the development of a new field, while working on the development of solvent-soluble
resins for coating, with unique characteristics, we developed a new product with a characteristic that the
deformation of its coating film due to temperature changes behaves almost similarly to that of copper. The
polyurethane resin used for artificial leather is now expanding its usage, due to its increased durability, as
an interior finishing material for cars on the market. We are also putting our efforts into the developmentof water-based products. Regarding the epoxy resin, we are working on the commercialization of an extra-high-temperature heat
resistant type aimed at next-generation printed circuit boards.

High Performance and Applied Products Business Operation
Regarding industrial-use adhesive tapes, we developed double-sided adhesive tapes, in which we
reduced the VOC release by more than 90% by using an emulsion-type adhesive and we even satisfied
both of high reliability of adhesion and easiness in peeling-off for recycling. In the area of optical doublesided adhesive tapes, we succeeded in providing a high degree of transparency and restricting the foam
formation caused by gases occurring from the plastic material used, and introduced a corrosion-inhibiting
property to the conductive layer. All of these capabilities were highly appreciated. Thus, the usage forsome parts of the touch panel of mobile phones is expanding. As for the building materials used for the interior of residential houses,
we have largely strengthened the color lineup of incombustible decorative boards by increasing the number of colors from 8 to 42.

CSR REPORT 2010

ComplianceElectronics and Information Materials Business Operation

New Technology
Development andValue Creation

Sun Chemical

Our Business Models
Focused on Customer
Satisfaction

Corporate R&D Dept.
Qingdao DIC Finechemicals Co., Ltd.

DIC R&D Dept.

Coordination /Cooperation
among laboratories /
centers

DIC Berlin GmbH R&D Laboratory

Universities (Japan and Overseas)

Kawamura Institute of Chemical Research

National Projects

Organic synthesis, photochemistry,
polymer’s physical properties

Printing technology for nano-printed circuits,
medical-related materials

Functional Polymers
Technical Group 1
Chiba Plant

Information
Disclosures of CSRGroup Manager

Epoxy resin products are used for state-of-the-art areas, such as semiconductors,
circuit substrates, airplanes, etc., and are always required to quickly andappropriately respond to the needs for higher functionality and environmentalbalance. The development of new products is conducted in the following flow:
Understanding of market needs → function design/molecular design (hypothesis)→ planning of a synthesis method → trial synthesis/evaluation (verification of the
hypothesis). Mostly, we experience continued failures. However, as long as we
continue sticking to the task with passion and perseverance, we eventually start togain a real feeling for technology advancement and see the goal.

Harmony with theCommunity andContribution to Society

Development of Epoxy Resin Products

Human Resource
Management

Coordination / Cooperation

Electronics / Information-relatedmaterials, bio, etc.

Ichiro Ogura

The Environment,
Safety, Health andQuality

Technical Planning Dept.

DIC Graphics

Proposing research subjects

Pioneering
technology
development
Objective
basic research

VOICEIntellectual Property Dept.

Coordination /cooperation
among technicaldepartments

Supply Chain
Management[Business Operation]
Technical Dept.

The Reliabilit y of
Financial Reporting

Technical Administrative Division

Technical service
Improvement
research
New productdevelopment

Investigation
andbasic researchin the use of hazardous substances, the development ofless hazardous products, recyclable products, production
processes with higher safety and less waste, considering
energy savings as well as the continued implementation ofenvironmental assessments. DIC will comprehend the trendof statutory regulations and environmental measures of every
country worldwide and implement product designs conforming
to regulations governing chemicals in the pertinent country.
We will continue to put our efforts into further enhancing ourown awareness of the environmental harmony, and further
improving the ratio of environment friendly products.

Information
Security

In April 2010, we reshuf fled the R&D organization. We
assembled all of the technical departments of the divisions
under a newly established Technical Administrative Dept.
We are focusing on a stepped-up contribution to corporateb u s i n e s s e s by s et t i n g u p o u r c o o p e r at i ve p r o m ot i o nframework, sharing technical information, and integrating
technical resources, including activating personnel exchanges
among technical departments.
Regarding the Corporate R&D Department, we will set up
research subjects with good consideration of coordination
with individual operating divisions and thereby heighten thecommercialization probabilities of those subjects. On the other
hand, concerning the field of next-generation technologies, wewill make use of a partnership among industry, government
and academia to search useful seeds of research and conduct
basic studies.
To develop new products, DIC will promote a reduction(Business Continuity Management)

Research Activities and Goals Thereof for FY 2010

BCM

In engineering plastics, we are acquiring good track records on our PPS resin: for example, it is used forelectromagnetic valves and joints for water heaters in the household equipment industry, and it is also
used as a material for parts of hybrid and electric cars. For inkjet inks, other than the water-based pigment
types, we are focusing on the development of UV curing type inkjet ink for industrial applications, whichbecome hardened by UV. In the area of hollow fiber membranes, we developed a large-size hollow fiber
membrane deaeration module, which is compatible with the needs of building a larger ultrapure watersupply system to be used for the manufacturing of semiconductors and liquid crystal displays.

21

Report on the Environment, Safety, Health and Quality

Compliance

Report on the Environment, Safety, Health and Quality
WEB

http://www.dic.co.jp/en/csr/environment/index.html(Business Continuity Management)

BCM

The DIC Group recognizes that preserving the environment and securing safety should be at the core of our management
as a chemical corporation. Through our activities on the environment, safety, health, and quality, the DIC Group aims tobecome a company with the capacity to respond to requests from society.

Declaration to Support the Responsible Care Global Charter

Information
Security
The Reliabilit y of
Financial Reporting
Supply Chain
Management

In 1992, to preser ve the environment and secure
the safety and health of people, DIC established the“Principle and Policy for the Environment, Safety and
Health.” In 1995, DIC pledged to implement the preceptsof “Responsible Care” in our everyday operations.
In January 2006, as a member of global chemical
corporations, DIC signed a declaration to support the
Responsible Care Global Charter, promising to further
strive to enhance the environment, safety, and healthof people. Also, in order to implement this policy, we
prepare an annual “Policy for the Environment, Safety
and Quality,” and translate it into English and Chinese
in order to disseminate the policy across the entire DIC
Group and to promote relevant activities.

Responsible Care

Principle

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

Policy1. We establish ESH-related objectives and targets and pursue continual progress.
2. We comply with laws, regulations and agreements relevant to ESH.
3. We consider the ESH implications of each of our products throughout their life cycles
in accordance with the ideals of Responsible Care.
4. We instill in our employees a thorough understanding of this fundamental Principle
and Policy.
5. We organize our operations so as to promote the safeguarding of the environment,
safety and health and conduct audits to monitor progress throughout the Company.
6. We ensure that operations are conducted safely and materials are handled properly.
We try to prevent environmental pollution and avoid affecting the environment
negatively by recycling waste, conserving energy and other resources and usingmaterials that are environmentally friendly.
7. We place the utmost importance on ESH-related considerations when planning new
products and manufacturing processes, and we investigate any matters affecting the
ESH-related areas, starting with the R&D stages for new products and technologies.
8. We promote safety by providing customers with detailed instructions on the proper
use and handling of all products.
9. In our overseas activities, we conduct environmental impact assessments and strictly
observe local ESH regulations. In the absence of such regulations, we work with local
officials and our business partners to develop environmental safeguards. We also
follow this procedure when dealing with toxic materials, applying the same stringent
standards for their handling as required in Japan. In addition, we promote the transfer
of technology and know-how related to environmental protection.
10. Paying due attention to the interest of citizens and administrative authorities on our
products and business activities, we strive in our publicity efforts to obtain an accurate
understanding from them.

Our Policy for the Environment, Safety and Quality for FY 2010

New Technology
Development andValue Creation● Promote Responsible Care (RC) activities across the
DIC Group.
● We set targets to reduce environmental impact by ouroperations and release the results of our reduction
efforts to the public.
● Keep chemical information under proper managementand disseminate the information to customers.
● Enhance the effectiveness of the activities and also
streamline the organization.

Principle and Policy for theEnvironment, Safety and Health

The above Principle and Policy shall be available to all employees and to the generalpublic.
It is our goal that this Principle and Policy be followed at all DIC Group companies.
Established April 1, 1992
Revised February 1, 1996 Ver2
Revised-2 April 1, 2008 Ver2-2

WEB

http://www.dic.co.jp/en/csr/environment/responsible.html

The Environment,
Safety, Health andQuality

DIC’s Responsible Care (RC) Promotion System and Our Efforts
Under our CSR committee, we work with the Responsible Care implementation organization and the Responsible Careaudit and support organization as a pair of wheels to promote our Responsible Care activities.

Our Business Models
Focused on Customer
Satisfaction

Board of Directors

President

Corporate Social Responsibility Committee

Subsidiaries

Sales offices(Divisions, branches)

Harmony with theCommunity andContribution to Society

Persons in charge of
responsible care

Implementation organization(Branches, departments, sections)

Production/R&D (Plants, R&D centers)
Environment/Safety/
Quality GroupInternal branch andsales office audits

Plants, R&D centers,
environment and safety committees

Implementation organization(Departments, sections)

Implementation/Support

Human Resource
Management

Business operation presidents
Responsible Care
Implementation System
Division presidents

Responsible Care Dept.
Top management audits

Division audits

Plants, environment,
safety and quality audits

Internal branchand sales office audits

Responsible Care,audit and support systems

Information
Disclosures of CSR

DIC checks the implementation of DIC Group’s activities relating to the environment, safety, health and chemical
controls, based on the following “Responsible Care Codes.”1. Management System (all codes are applied commonly)
3.	Process Safety and Disaster Prevention (prevention of fire, explosion,
outflow of chemicals)
5. Chemical and Product Safety (risk management of chemical products)

2.	Environmental Protection (continuous reduction of emissions and production ofchemical wastes)
4. Occupational Safety and Health (protecting the safety and health of workers)
6. Distribution Safety (risk reduction in chemical distribution)

7.	Dialogue with Society (communication with local communities relating to the environment, safety and health)22

April 2009
Representative Director,
President and CEO DIC Corporation

CSR REPORT 2010

Compliance

Environmental Impact generated by Our Business Activities

http://www.dic.co.jp/en/csr/pdf/dic_csr_data01.pdf

released into the environment and amounts transferred off-site from industrial establishments via waste products.

For details, see*2

14,510 ,000 m

0.1%

Year-on-year

3

11.5%

Year-on-year*2 Renewable energy is not included in the above figures.

For details, see

NOx Emissions
For details, see

P29

,000

Year-on-year

0.6%

Amount of atmospheric emissionsof the 480 targeted substances
For details, see

P26

646 t

Year-on-year

1.3%

227 t

Year-on-year

2.4%

Total emissions

Amount of industrial waste
disposed of as landfill

11,449 m
,000

11.7%

406 t

P27

Year-on-year

3.0%

Amount of emissions
into water of the 480 For details,
P26
targeted substances see
Year-on-year

P27

68 t

Year-on-year

COD emissions into For details,
waste watersee

SOx Emissions
For details, see

3

14 t

Year-on-year

5.3%

5.2%

For details, see

232 t

P28

Year-on-year

27.3%

Amount of emissions into soilof the 480 targeted substances
For details, see

1,128,000 tNew Technology
Development andValue Creation

281 t

P27

Emissions into soil

OUTPUT

CO2 Emissions

Emissions into water

P26

0t

Amount of industrial waste disposed of as landfill

402 ,000 t

22,459 t*As for the overseas subsidiaries of the DIC Group, please refer to the website,

WEB

Information
Disclosures of CSR

DIC plants and research laboratories, domestic subsidiaries of DIC, and domestic affiliates and plants of affiliates that operate on the same premises of DIC plants and jointly
manage environmental safety (This report includes part of the report on the Corporate Headquarters, Osaka Branch Office, and Nagoya Branch Office.)<Plants and Research Laboratories>
Suita Plant, Chiba Plant, Hokuriku Plant, Sakai Plant, Kashima Plant, Yokkaichi Plant, Shiga Plant, Komaki Plant, Saitama Plant, Tatebayashi Plant, Central Research Laboratories,
Tokyo Plant, Gunma Plant and Kyushu Branch Office’ s Ink Production Department.
The Tokyo Plant, Gunma Plant and Kyushu Branch Office’s Ink Production Department joined DIC Graphics in October 2009. Regarding the data shown in the Report on theEnvironment, Safety, Health and Quality, since we intended to compare with our goal for FY 2009, we included the performance data of these three sites into the DIC data. Also,
regarding the Utsunomiya Plant, Yokohama Plant, Kansai Plant and Shiraoka Plant (4 sites), which have joined the DIC Group, as constituent arms of DIC Graphics, we included only
their performance data on the second half of FY 2009 into the data of the DIC Group.
<Domestic Subsidiaries>
DIC Graphics Corporation, DIC Kitanihon Polymer Co., Ltd., DIC Kyushu Polymer Co., Ltd., DIC Kako, Inc., DIC Comfort Materials, Inc., DIC EP Corp., DIC Interior Co., Ltd., DIC
Color Coating, Inc., DIC Colorants, Inc., DIC Precision Corp., DIC Engineering Corp., DIC Filtec, Inc., DIC Logitech Co., Ltd., DIC Plastics, Inc., DIC Molding, Inc., Topic Co., Ltd.,
Nippon Decor, Inc., Nihon Packaging Material Co., Ltd., Nippon Plastic Pallet Co., Fuji Label Co., Ltd., Seiko PMC Corp.
<Domestic Affiliates, Plants of Affiliates>
SUNDIC Inc., Shiga Plant, DIC Bayer Polymer Ltd., Japan Formalin Company, Inc., DH Material Inc., Sakai Plant<Overseas Subsidiaries>
Overseas subsidiaries of the DIC Group

Harmony with theCommunity andContribution to Society

Scope of Report,000 tHuman Resource
Management

CO2 Emissions

1,264

Our Business Models
Focused on Customer
Satisfaction

Emissions into soil

OUTPUT

Emissions into the air

Production volume368,662 ㎘

INPUT

Energy Consumption (crude oil equivalent)

The Environment,
Safety, Health andQuality

The posting of data on the environmental impact generated by business activities conducted by the overseas DIC Group is started FY 2010 (on the data of FY 2009).
The Report on the Environment, Safety, Health and Quality mainly features the activities of the domestic DIC Group.

DIC Group (Overseas)

Supply Chain
Management

Emissions into the air

Production volume

138,369 ㎘

Total Water Consumption

P29

The Reliabilit y of
Financial Reporting

Energy Consumption (crude oil equivalent)

INPUT

DIC Group (Domestic)

Information
Security*1 The PRTR (Pollutant Release and Transfer Register) is a scheme for assessing, aggregating and disseminating data on the sources of hazardous chemicals, amounts(Business Continuity Management)

WEB

BCM

Illustrated here is a comprehensive image of the environmental impact generated by the domestic DIC Group’s business activities
in FY 2009. As input, 2 items are indicated: energy consumption and total water consumption. As output, 6 items are indicated:emissions of 480 chemicals released into the environment, including PRTR*1 chemicals, CO2 emissions, NOx emissions, SOxemissions, COD emissions through waste water, and industrial waste disposed of as landfill. As for energy consumption per unit
production indicating efficiency of usages, please refer to the Data Compilation posted on the website.

http://www.dic.co.jp/en/csr/pdf/dic_csr_scope01.pdf

23

Report on the Environment, Safety, Health and Quality

Compliance■ RC Targets and Achievements of Major RC Activities
Items

Viewpoints and tasks of the approaches(Business Continuity Management)

BCM

Prevention of global warming and promotion ofenergy saving

Information
Security（

Environmental
conservation
Reduction ofenvironmental
impact causedby business activities)

The Reliabilit y of
Financial Reporting
Supply Chain
Management

Process Safety
and fire prevention/
Occupational safety
and health

New Technology
Development andValue Creation

Logistics/
SafetyThe Environment,
Safety, Health andQuality

Chemicals/
Product safety

Reduction of industrial waste (zero emissions)
Reduction of volume of industrial waste
disposed of as landfill
Reduction of industrial waste discharged fromproduction plants

P29
P30
P31

P28

Control of emissions of chemicals,
Reduction of environmental emissions of thechemicals specified by the PRTR Law (354) plus
those chemicals designated by the JCIA Voluntary Scheme (126)

P26
P27

To bring the energy consumption per unit production to 89% (110.3
liters/ton) of that in FY 1990 (123.6 liters/ton).

To Reduce the volume of industrial waste disposed of as landfill:
DIC: 96 tons or less; DIC Group (domestic): 235 tons or less
The volume of the industrial waste discharged from production plants:
DIC: 20,071 tons DIC Group (domestic): 61,170 tons

DIC: 318 tons
DIC Group (domestic): 577 tons

Reduction of VOC released into the air

P27

DIC: 304 tons (a reduction of 46% from FY 2000 level)
DIC Group (domestic): 563 tons (a reduction of 71% from the base year)

Risk assessment

P32

To familiarize the employees with risk assessment.

Promotion of sharing of information on
environment and safety between DIC andGroup companies; both domestic and overseas

P33

Accident/injury analysis

Reduction of GHG emissions
caused by transportation

P29

To promote energy saving measures related to freight transportation
to ensure an annual reduction of 1% in terms of the energy
consumption per unit transportation.

M anagement of transpor t ation safet y ofchemicals

P33

To make both chartered and consolidated cargo carriers carry“yellow cards” to address an emergency during transportation.

Promotion of green procurement

P34

To establish an internal system suited to promoting CIRIUS andcontinuously operating it in a stable manner in order to further
enhance the control of trace impurities contained in raw materials
and products.

Measures to cope with GHS(measures for the requirement to disclose
information on chemicals contained in
products)

P34

To prepare MSDS for all of our chemical products, and distributethem through our website.

Our Business Models
Focused on Customer
Satisfaction

Measures to cope with overseas regulations(e.g., the REACH regulation in the EU)

Human Resource
Management

Communications
with society

Targets for FY 2009

To further promote the recycling of the waste discharged fromproduction facilities of the domestic DIC Group by improving theirrecycle ratios.

Promotion of recycling

Report on RC activities and site reports ofeach plant

To prepare for the main registration to be made in FY 2010 incompliance with the REACH regulation.

P44

To make public the information on our RC activities through our CSR
report and DIC’s website. In addition, to promote risk
communications between DIC’s production sites and local
communities through site reports.
To improve customer satisfaction by using ISO9001 and other QMS
tools to ensure product quality

Harmony with theCommunity andContribution to Society

Quality management(customer satisfaction)

Securing of quality

Information
Disclosures of CSRof the environmental and safety
Provision of support to the Promotion
activities at affiliated companies in the AsianandOceanianregionsmanagement for theenvironment andsafety conducted byoverseas Group companies Environmental/safety data

*Regarding the items, for which no scope is given, such items refer to DIC.

24

Page to refer to

P35

To further improve the product design capability to satisfy customer
requirements

P33

To hold a safety meeting on a global basis, including China and Southeast
Asia to promote the sharing of safety awareness and information;
To hold a meeting of environment and safety staff in respective regions(China, Southeast Asia);
To implement a safety audit of subsidiaries in South Asia (including India)

P33

To go ahead with identifying the actual state of environmental impact
and supporting related activities to reduce them.

CSR REPORT 2010

Compliance

Achievements in FY 2009★

To bring the energy consumption per unit production down to 94% (116.2
liters/ton) of that in FY 1990. (-2% as compared with the previous year)

DIC: 338 tons (An increase of 34 tons from the target) <Actual
accomplishment in previous year: 298 tons>
DIC Group (domestic): 646 tons (An increase of 83 tons from the target)<Actual accomplishment in previous year: 655 tons>★★

DIC：255 tons
DIC Group (domestic): 610 tons

We gave guidance about contents to two workplaces of DIC and four
affiliated companies, and implemented familiarization activities.

★★

To give guidance about the evaluation of a risk assessment associatedwith capital investment.
To conduct an accident/injury analysis and provide relevant information ina timely manner.

We analyzed accidents/injuries based on accident/injury investigation reports
and prepared graphs (visualization). Then, we posted such output on the
Intranet at the beginning of every month, in an attempt to promote awareness.

★★★

To hold a safety meeting regarding the setting of preventive measuresagainst recurrence of accidents/injuries.

The energy consumption per unit production was improved by 4% ascompared with the previous year.

★★★

To continue taking measures for the energy conservation duringtransportation, and promote an annual reduction of 1% in the energy
consumption per unit of transportation.

We have compiled yellow cards and requested container trucks, lorries,
and freight trucks in general, including those with consolidated cargo, tocarry it.

★★★

To further promote the same measures.

We established the CIRIUS system and prepared it for operationsmoothly, even covering those affiliated companies that split from DIC in
FY 2009. Thus, we enhanced our control of raw materials.

★★★

To put the information obtained on raw materials into CIRIUS inaccordance with the DIC Group Green Procurement Guidelines, and keep
the information under control.

We prepared MSDS for our entire chemical products, and we arepromoting MSDS distribution through the Internet. Regarding thenotification of chemicals required by the new PRTR law, we started to notify
our business partners, preparing a cover letter for sending out MSDS from
July 2009.

★★★

To continue preparing MSDS for all the chemical products and delivering themthrough the website.

We prepared ourselves so that our registration required by the REACH
regulation can be completed by November 2010.

★★★

To make a main registration for the REACH regulation in 2010, without
fail. Also, provide support to the CLP registration in the EU, and establish
an environment needed for securing the registration on existing chemicals
and for continuing our business in Taiwan.

Our RC activities were made public through CSR reports and on DIC’s
website. Also, site reports were prepared by the individual production
plants of DIC and these materials were used for explaining our activities
to people on a plant tour.

★★★

To further promote the same measures.

In order to check whether or not each production plant is implementing QMS
activities properly and whether or not customer satisfaction has been improving
as an outcome of the implemented QMS activities, audits were conducted
once a year by the responsible department (RC dept. and divisions
responsible). Also, follow-up audits were carried out on an as needed basis.

★★★

We confirmed that customer requirements (including matters related tosocial demands and requirements) were input at the designing stage ofthe product without fail by conducting an audit and made reviews asneeded.

★★

We had a meeting of safety personnel from the South-eastern Asian
region in February 2010. The personnel responsible for safety in the
China region also attended. Thus, we went ahead with the sharing ofsafety awareness and information.

★★★

To provide support to the environmental quality activities taken atoverseas affiliated companies (e.g., establishing an information
network on environment and safety, training of personnel responsible,etc.).

Information on environmental impact, such as CO2, industrial waste aswell as on safety was gathered from overseas affiliated companies of the
Sun Chemical Group, DIC Asia/Pacific and DIC China.

★★

To prepare mid-term and long-term plans for the DIC Group (overseas
affiliated companies) for the reduction of environmental impact (waste
and GHG).

In order to secure the product quality, to improve customer satisfaction byusing ISO9001 and other QMS tools. To better understand QMS issues atdivisions/production sites and sort them out as well as provide support toimprovement activities: Thereby, to promote the improvement of quality
management activities.

Information
Disclosures of CSR

DIC：268 tons
DIC Group (domestic): 623 tons

Harmony with theCommunity andContribution to Society★★

Human Resource
Management

DIC: 351 tons (An increase of 33 tons from the target) <Actual
accomplishment in previous year: 312 tons>
DIC Group (domestic): 660 tons (An increase of 83 tons from the target)<Actual accomplishment in previous year: 670 tons>

Our Business Models
Focused on Customer
Satisfaction

To continue promoting recycling activities in the domestic DIC GroupThe Environment,
Safety, Health andQuality★★★

New Technology
Development andValue Creation

Recycling rate
DIC Group (domestic): An improvement of 1% from the previous fiscal year (88%)
DIC: An improvement of 1% from the previous fiscal year (77%)
Domestic subsidiaries An improvement of 0.4% from the previous fiscal year (93%)

Supply Chain
Management

To Reduce the volume of industrial waste disposed of as landfill:
DIC: 69 tons DIC Group (domestic): 209 tons
The volume of the industrial waste discharged from production plants:
DIC: 17,345 tons DIC Group (domestic): 65,267 tons

The Reliabilit y of
Financial Reporting★★★

Information
Security

To Reduce the volume of industrial waste disposed of as landfill:
DIC: 92 tons DIC Group (domestic): 232 tons
The volume of the industrial waste discharged from production plants:
DIC: 19,939 tons DIC Group (domestic): 62,565 tons

(Business Continuity Management)

Targets for FY 2010
BCM

Actual energy consumption per unit production: 118.0 liters/ton. 7% of the target
was missed.
On the other hand, the CO2 emissions decreased by 2% as compared with theprevious year.
(FY 2008: 211,246 tons → FY 2009: 207,801 tons)

Evaluation*Evaluation symbols: ★ ★ ★ …Excellent: ★ ★ …Good: ★ …Improvement needed*As for the subjects shown below, which were covered by the CSR Report 2009, please refer to the website: Prevention of soil/groundwater from pollution, countermeasures against PCB, prevention ofozone layer destruction, asbestos, reporting of accidents/injuries without fail, training of experts on raw material/product safety.

25

Report on the Environment, Safety, Health and Quality

Compliance■ Reducing Emissions of Chemicals into the Environment
Chemicals DIC Aims to Reduce

Supply Chain
Management
New Technology
Development andValue Creation
The Environment,
Safety, Health andQuality
Our Business Models
Focused on Customer
Satisfaction

Human Resource
Management

Volumemanufactured/used

The DIC Group is committed to introducing the necessary
facilities and taking possible countermeasures in our

Ethyl acetate

14,566

109

15,737

225

Methyl ethylketone

9,339

57

10,369139

Amount of emissions of the 480 targeted substances<Chemicals Specified Under PRTR Law + Chemicals from JCIA Voluntary Scheme (126)>

Toluene10,34766

12,808129

Acetone

756

10

831

35

Xylene

4,609

22

5,043

24

Propyl alcohol

3,610

15

4,006

18

128,155

11

132,043

17

4,505

10

4,517

10

Others202,652

52

236,530

64

Total

378,538351

421,884

660

DIC

An increase of
12% (39 tons)
as compared with theprevious year

Total emissions into the air: 338 tons
Emissions into water: 13 tons
Emissions into soil: 0 tons

351 tons

DIC Group companies (Domestic)

A decrease of
2%（10 tons）
660 tons
as compared with theprovious year

Total emissions into the air: 646 tons
Emissions into water: 14 tons
Emissions into soil: 0 tons

1,500

660

623

'04

268

'03

670

'02

351

'01

312

'00

601

'99

573

'98

660

Targets for
FY 2010
652

1,000

1,499

1,822

1,647

（t）
2,000

749

'08

'09

'10 (fiscal year)

430

0

517

500

537

The Reliabilit y of
Financial Reporting

Chemical
nameChanges in the Amount of Emissions of the 480 Targeted Substances

895

Information
Security

operations as much as possible to reduce the emissionsof these chemicals into the atmosphere and prevent
environmental pollution.

696
856

(Business Continuity Management)

BCM

Harmony with theCommunity andContribution to Society

Information
Disclosures of CSR

26

Chemi c al c o r p o r at i o ns are ex p e c te d to pay due
considerations to prevent emissions of chemicals into theenvironment in their business operations, since they deal
with various chemicals in large quantities when comparedwith those in other industries.
DIC has been taking measures since FY 2000 to reduce theemissions of 480 chemicals released into the environment(more specifically, the air, water and soil), whereas thedomestic DIC Group companies have been taking the samemeasures since FY 2005. These 480 chemicals subject
to our measures are made up of by the following: 354
chemicals specified under Japan’s PRTR Law* and 126
chemicals added as voluntary management items by theJapan Chemical Industry Association (JCIA).
Among 480 chemicals DIC aims to reduce, the following are
the numbers of chemicals DIC used or produced in amountsof 1 ton or more in FY 2009: 120 chemicals for DIC as awhole and 136 for the total of the domestic DIC Group.
The amount of emissions released from the domestic
DIC Group in FY 2009 was reduced by 10 tons (2%) ascompared with that in the previous year. However, due to theresults obtained from a reexamination made to the facility
elimination rates (e.g., solvent recovery systems) at some ofthe sites, the goals were not fulfilled.
The performance of FY 2009 includes an actual reduction of
10 tons achieved by the four sites, which newly joined DIC
Graphics in October 2009. (The performance of FY 2008
does not reflect the achievement made by those four sites.)

'05

'06

'07

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

Shown below are the chemicals whose amount of emissions
released by DIC and domestic DIC Group companies during
FY 2009 was 10 tons or greater.
Chemicals with Emissions Exceeding 10 Tons in FY 2008
among the 480 Targeted Substances

DIC Group (domestic)

DIC

Styrene
Butyl alcohol(Tons)

VolumeemittedVolumemanufactured/
used

Volumeemitted* PRTR Law: The PRTR Law is the popular name for the Law Concerning the Reporting, etc. of the Releases of Specific Chemical Substances to the Environment and Promoting Improvementin Their Management. The law, which went into effect in FY 1999, required companies meeting certain standards to assess the release and transfer of PRTR chemicals from FY 2001 andreport results to the government from FY 2002. DIC has assessed the release of PRTR chemicals and aggregated and disseminated data in accordance with the law retroactive to 1999.

■ Reduction of Environmental Impact to the Air, Water and Soil
Responding to Regulations for Volatile Organic Compound (VOC) Emissions
The Revised Air Pollution Control Law was put into force
effective April 1, 2006, and the regulation of VOC emissions
was started. As an outline of the VOC emissions restriction
program under this law, a goal was shown: “Based on a best

mix between the VOC emission regulation and the voluntarycommitment by the industry, we will reduce VOC emissions
released from fixed sources, such as production plants, by
30% or so by FY 2010 as compared with FY 2000.”CSR REPORT 2010（t）

Information
Security204

SOx Emission Volume（t）
200

Changes in Air Emissions of VOC of 480 Substances(Business Continuity Management)

DIC has been working to reduce SOx, NOx, and CODemissions from FY 1990 levels. We will further continue topromote the reduction of emissions, including a shift in fuelsource, from heavy oil to city gas.

BCM

Emissions of SOx, NOx, and Effluent Impact
Substances (COD: Chemical Oxygen Demand)

Compliance

As for the domestic DIC Group, 98% of its emissions are
released into air. Deeming these emissions to be of VOC, weestablished in FY 2007 a voluntary emission reduction target
and provided necessary equipment/systems and operationalcountermeasures: Thus, we have been working on the
reduction of emissions. In consequence, we accomplishedthe goal in FY 2008, ahead of the schedule. Even after that,
we are pushing for a further reduction.
In FY 2009, we achieved a reduction of 9 tons (1%) ascompared with the previous year.

150

66

72

68

48

57

53

67

61

44

232

227

216

212
'09 (fiscal year)

209
188

'08

DIC

'06

'07

406

'05

403

'04

419

'90

415

603

400

599

600

451

（t）
800

'08

'09 (fiscal year)

DIC and domestic DIC Group companies

Approx. 3t/h

5

0.53

10

0.045

DIC
(Hokuriku Plant) Approx. 0.3t/h

5< 0.0001

100.0002

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

10

0.59

—

—

10

0.12

—

—

DIC Kitanihon
Polymer Co., Ltd. Approx. 0.2t/h(Tohoku Plant)

10

0.009

—

—

Seiko PMC Corp.
(Harima Plant) Approx. 0.2t/h

10＜ 0.07——

Pollution Investigation of Soil and Groundwater
Responding to the Soil Contamination Control Law, DIC is
conducting soil assessments and implementing required
countermeasures. When we acquire plants overseas orinvest in overseas businesses, DIC references Japan’s
Soil Contamination Control Law and each local country’s
related regulations, making soil assessments by applying thestricter regulations of the two. We also conduct advance risk
assessments for the environment and safety of the related
overseas companies in the investment.

Information
Disclosures of CSR

Emissions recorded
in FY 2009
(ng-TEQ/Nm3)

Harmony with theCommunity andContribution to SocietyStandard(ng-TEQ/Nm3)

Human Resource
Management

Standard(ng-TEQ/Nm3)

DIC Kitanihon
Polymer Co., Ltd.
Approx. 0.2t/h(Hokkaido Plant)'07

Exhaust Water

Emissions recorded
in FY 2009
(ng-TEQ/Nm3)

DIC(Chiba Plant)'06

Our Business Models
Focused on Customer
Satisfaction

Exhaust Gas'05

COD Emission Volume(reference year)

Incinerator
capacity'04

DIC and domestic DIC Group companies

0

Halogenated Dioxins Emission Control Standards Applicable to Domestic DIC Group Incinerators

275

'90

(reference year)

DIC

254

0

The Environment,
Safety, Health andQuality

The domestic DIC Group monitors the volumes of Dioxin
emissions from our facilities every year. As of the end of FY
2009, DIC owned 6 waste combustion facilities. Though
all 6 facilities are “specified facilities” under Japan’s Law
Concerning Special Measures Against Dioxins, both exhaustgas and wastewater emission volumes from these facilities
were below criterion values specified by the regulations. We
will continue to monitor Dioxin emissions from these facilities
to secure our compliance with the regulations.
DIC Comfort Materials, Inc. removed its waste incineration
facility in August 2009, in compliance with laws.

100

New Technology
Development andValue Creation

200

Compliance with Regulations for Dioxins Emissions

35

52

（t）
300

448

DIC and domestic DIC Group companies

NOx Emission Volume265'10 (fiscal year)'09 (fiscal year)

247

'09

'08

422

'08

'07

418

'07

'06

250

255

'06

'05

474

610

338

'05

'04

DIC and domestic DIC Group companies

473

646

298

655
373

'04

'90

(reference year)

DIC

202

DIC

421

'00

(reference year)

442
0

0

Supply Chain
Management

500

440

561

1,000

37

50

Targetfor 2010

745

1,500

244

1,441

1,552

1,727

100

The Reliabilit y of
Financial Reporting

2,000

27

Report on the Environment, Safety, Health and Quality

Compliance■ Reduction of Industrial Waste
Reduction in the volume of industrial waste disposed of as landfill and the volume of industrial waste discharged from production plants

The Environment,
Safety, Health andQuality
Our Business Models
Focused on Customer
Satisfaction

Human Resource
Management
Harmony with theCommunity andContribution to Society

Information
Disclosures of CSR

28

DIC

'03

'05

'06

'07

'08

'09

DIC and domestic DIC Group companies

Responsible Care Global Charter Certificate
The Responsible Care Leadership Group (RCLG) of theInternational Council of Chemical Associations (ICCA)
established the Responsible Care Global Charter in 2006 andasked member country’s businesses to put their signatures topledge their support and implement this Global Charter.
RCLG set as their first goal the obtainment of signaturesfrom the CEOs of more than 85% of the top 115 companies
worldwide. They succeeded in achieving this goal in March
2010. Signatures were obtained from 160 companies, including
those other than the top 115 companies (in Japan, signatures
were obtained from 32 companies, including all of those listed
among the top 115 companies). Only in Japan, the rate ofsignatures obtained from those companies initially asked to sign
reached 100%. Thus, the contribution made by the Japanesecompanies was highly appreciated by ICCA.
As one of the dedicated companies mentioned above, DIC
received a Responsible Care Global Charter Certificate from
RCLG.

Responsible Care Global Charter Certificate

69
209

2,229
'04

92
232

'02

125
320

'01

132
541

'00

312
809

'99

Targetfor 2010

537
1,282

0

1,560

3,426

New Technology
Development andValue Creation

3,000(reference year)

TOPICS

4,326

6,000

4,190

Supply Chain
Management

（t）
9,000

5,582

The Reliabilit y of
Financial Reporting

Volume of Industrial Waste Disposed of as Landfill
7,981

Information
Securityof the goals.
In FY 2010, we will set out a new reduction target andcontinue promoting our zero emission activities.
As for the volume of industrial wastes discharged from our
production plants during FY 2009, DIC reduced it by 4,584
tons (19%) as compared with the previous year, while thedomestic DIC Group reduced it by 2,584 tons (4%).
Regarding FY 2010, we expect that the production
volume of the DIC Group as a whole will increase andthe volume of industrial wastes discharged from some ofthe domestic subsidiaries will substantially increase as
the nation’s economic recovery continues. However, weshall continuously set out a reduction goal and continue topromote further reductions.

7,552(Business Continuity Management)

BCM

DIC had worked on zero-emission activities since FY
2001, with a target to reduce the volume of industrial waste
disposed of as landfill to less than 5% (370 tons) of FY
1999 levels by the end of FY 2007. Although the abovementioned goal was successfully achieved at the end of
FY 2006, one year ahead of the schedule, we are still
continuing to implement zero-emission activities at eachsite and also encouraging the effort of expanding theactivity area across the DIC Group by laterally spreading
DIC’s zero emission activities to our subsidiary companies.
The zero emission goals of DIC and the domestic DIC
Group for FY 2009 in terms of the volume of industrial
waste disposed of as landfill were successfully achieved
through the implementation of zero emission activities
without making any fuss. Major contributing factors involvedin this successful accomplishment include, for example, areduction in the residue rate (5%→0%) achieved for plastic
wastes by the use of a pyrolysis gasification and melting
process at the Sakai Plant, solidifying of fine particles andthen converting solidified matters into fuel at the Suita
Plant, conversion of sludge into fuel, and so forth.
Among the domestic DIC Group companies, DIC Kako Inc.
and Seiko PMC Corporation succeeded in recycling waste
plastics into reconditioned sand or RPF, respectively, andthese changes largely contributed to the accomplishment'10(fiscal year)

CSR REPORT 2010

(Energy consumption index)

95

138

'09

50
25
0

Energy consumption (DIC) (left axis)
Energy consumption (DIC and domestic DIC Group companies) (left axis)
Energy consumption index (DIC) (right axis)
Target energy consumption index per unit production (right axis)*Renewable energy is not included in the above figures.

CO2 Emission Volume and Emission Index
97

94

93

'90

(base year)

'05

'06

'07

'08

100

'09

281

208

283

211

315

331

239

251

248

100

30

100

99

98

97

96

78

74

Targetfor 2010

93

50
25

0
(fiscal year)

CO2 emissions (DIC) (left axis)
CO2 emissions (DIC and domestic DIC Group companies) (left axis)
Energy consumption index (DIC) (right axis)

10
0

'06

'07

17.4
7.14

(Energy consumption index)

75

200

0

96

94

40

(Energy consumption index)

100

'08

'09

100
75
50
25

0
'10 (fiscal year)

CO2 emissions (1,000 tons of CO2) (left axis)
Energy consumption per unit production（kℓ/1,000 t) (left axis)
Energy consumption per unit production (kℓ/1,000 t) (right axis)
Target energy consumption index per unit production (right axis)*1 Energy consumption per unit production: Energy used (converted into crude oil,kl)/volume of production made by the production plant (1,000 tons)*2 G reen management certificate: the Foundation for Promoting Personal Mobility
and Ecological Transportation evaluates the green management levels oftransport operators, including those for trucks, buses, and taxis, and provides
certificates for their business operations with reduced environmental impact.

Information
Disclosures of CSR

300

100

327

400

(1,000 tons of CO2)
（kℓ/1,000 t）

20

234

(1,000 t)

CO2 Emissions Generated by the Distribution Arm and History of Energy Consumption Index per Unit Production

Harmony with theCommunity andContribution to Society

In FY 2008, we started full-scale operation of boilers towhich carbon-neutral wood chips are fed as fuel. In FY 2009,
we put two 2,300-kW wind power generators into operation.
In FY 2010, we will further re-examine the manufacturing
process and put our effort into reducing CO2 emissions

Human Resource
Management

CO2 Emissions

Our Business Models
Focused on Customer
Satisfaction'10(fiscal year)

17.4
7.44

138

'08

99

158

'07

75

24.2

'06

102

157

'05

117

'90

(base year)

157

116

0

114

80

116

Targetfor 2010

120

100

8.95

160

94

26.2

93

The Environment,
Safety, Health andQuality

93

92

91

9.6

100

The total volume of transportation carried out by DIC during
FY 2009 was 184.31 million t/km, a reduction of 6% ascompared with the previous year. By adopting an enhanced
mass transportation means (i.e., a modal shift), such as using
JR containers and transporting trailers by ship, DIC is keenly
involved in reducing the amount of energy used for transportation
and CO 2 emissions. The modal shift adopted during FY2009 had a share of 7% in the total transportation volume. In
consequence, we reduced the volume of CO2 emissions by 1,680
tons as compared with the case in which the same amount oftransportation was carried out by means of trucks.
Including continued promotion of the modal shift, we will further
promote the reduction of energy used for transportation byencouraging echo-driving, selecting those carriers who use
clean-energy vehicles and so forth.
DIC is providing environmental seminars on echo-driving tocontract transport operators. The rate of the contract transport
operators who obtained green-management certificates*2 during
FY 2009 increased by 1.2 points (to 32%) as compared with theprevious year. We will further promote these activities.

New Technology
Development andValue Creation

200

Our Measures to Preserve the Environment in Physical Distribution

Supply Chain
Management(Thousands of kiloliters)

DIC is working on reducing energy consumption by setting
our air conditioners at higher temperatures. In FY 2009,at the head office, Osaka Branch office and Nagoya
Branch office building, we achieved a reduction in energy
consumption equivalent to 6 kl (2%) of crude oil as comparedwith the previous year. In FY 2010, we will further promoteenergy conservation activities also in office work areas byextending the time period of Cool Biz and spreading theinitiative of switching lights off during the lunch break.

The Reliabilit y of
Financial Reporting

Energy Consumption (Crude Oil Equivalent) and Energy Consumption Index

The Effects of Cool Biz

Information
Security

As for the energy conservation activities of DIC for FY 2009,
we planned to shorten the time period needed for production
processing at each manufacturing site and to optimize pressures,
temperatures and facility capacities, and we implemented thesetasks almost as scheduled. However, the energy consumption
index per unit production showed 95, against the target 89. Thus,
we failed to achieve the goal.
As for the contributory factors for this failure, various aspects
came into play: the operation rate of some of the manufacturing
sites did not increase sufficiently since the general economy
did not recover strongly enough from the recent recession;
the operation of old biomass boilers was discontinued due totheir aging (consequently, the consumption of heavy oil as analternative energy increased); the production was partly switched
to more value-added products and their production was increased.
In FY 2010, we will further continue to re-examine theproduction proc ess and aim to decrease the energy
consumption per unit production*1 by using clean energy (e.g.,wind power generation, use of carbon-neutral biomass boilers,
P24
P25 )
etc.). (For details, see(Business Continuity Management)

associated with energy consumption.
P24
P25 )
(For details, see

Energy Conservation

BCM

The DIC Group is promoting the reduction of CO2 emissions in efforts to prevent global warming. This activity goes hand-in-hand withthe plan laid out for the reduction of energy consumption, which is the major emission source. We are promoting energy conservation
activities in line with the goal of the voluntary action plan (i.e., the average amount of emissions during a period between 2008 and 2012
to be reduced to a level of 80% or lower as compared with FY 1990) formulated by the Japan Chemical Industry Association (JCIA). In
addition to embarking on the planning of a long-term reduction target, DIC has launched an Energy Conservation and Global Warming
Prevention Working Group and we are promoting specific reduction activities.

Compliance■ Our Measures to Prevent Global Warming

29

Report on the Environment, Safety, Health and Quality

Compliance

Energy Conservation Activities at Various Sites WorldwideJapan
DIC Hokuriku Plant

By Promoting the Visualization of Energy Consumption, Energy Conservation Activities Are Largely Accelerated(Business Continuity Management)

BCM

Information
Security
The Reliabilit y of
Financial Reporting
Supply Chain
Management
New Technology
Development andValue Creation
The Environment,
Safety, Health andQuality
Our Business Models
Focused on Customer
Satisfaction

actions taken by us are instantaneously made visible to anyone
through the Intranet. So, this plays a powerful role in motivating
individuals toward energy conservation at the production site.
However, the installation of this type of system is not always
the answer to any expectation of an energy conservation
effect. It is critically important to continuously implement
energy conservation activities by making use of this system.
In the case of the Hokuriku Plant, energy conservation
promotion members are selected from each department/
section, they attend a meeting every month and their activities
are published in the form of a simplistic medium to convey
information (called Energy Conservation Kawaraban).
Thus, by making use of these visualized data offered by thisEnergy Conservation Kawaraban, we are promoting energy
conservation activities in an enjoyable and easy manner.

Energy monitoring system

Energy Conservation Kawaraban

Making Carbon Dioxide (CO 2) Emissions More Visible

USA
Sun Chemical

Carbon Footprint ProjectHarmony with theCommunity andContribution to Society

Information
Disclosures of CSR

In order to analyze and manage carbon footprints of its own
business activities, the Sun Chemical Group implemented a
Carbon Footprint Project in cooperation with a consulting firm.
In this project, we tried to make carbon dioxide (CO2) emissions
more visible by computing gate-to-gate carbon footprints,
where, as compared with the computation to be made for theentire life cycle of a product, we applied the computation toa limited portion, from the production within our group to thetransportation and sales. This computation was conducted foreight products selected from seven different production sites in
the United States and Europe.
When customers are provided with carbon footprint informationof our products, they are enabled to choose products based on
the sustainable growth information on them, and at the sametime we are also enabled to promote our own sustainablegrowth program: thus, the whole of this cycle leads us to afurther effort of improving customer satisfaction.
Since this project has brought us a clear understandingof important aspects of energy reduction efficiency, we
will continue to improve energy efficiency and make ourtransportation and sales systems more efficient.

Carbon footprint created by producing, transporting and selling a product:*I n Japan, the Japan Printing Ink Makers Association, to which
the DIC Group belongs, draf ted product categor y rules (PCRs)
to be applied to printing inks in FY 2009, and the association is
promoting computation of carbon footprints.

[Production plant]
Product class“Gate to Gate”Life Cycle Component

Transportation/
Electricity
sales（46%） Natural gas/steam（18%）
Production

64%

36%

Carbon footprints of various products:
Gram-CO2 per one pound of product (after transported)

Human Resource
Management30

One of the impor tant points when promoting energy
conservation is how to gain an accurate understanding of thestatus of energy usage at the facilities in question.
At the Hokuriku Plant, an energy monitoring system, whichis capable of controlling and analyzing energy consumption,
was introduced in June 2009. Data obtained from various
measuring instruments are transmitted through the Intranet to
the Power Dept.
The introduction of this system has drastically changed theway energy conservation activities must be implemented.
The amount of energy and utilities (i.e., electricity, steam andnitrogen generated by the Power Dept.) consumed at eachmanufacturing site is displayed in graphs in real time, andtherefore current data can be compared with those in the pastvery easily. Thus, it is now possible to verify energy loss andwaste, leading to a sizable energy conservation effect.
For example, regarding the countermeasures to be taken foran excessive electricity consumption during a peak summer
season, when air conditioners installed at offices and lowtemperature warehouses have to run at full capacity, we used
to rely only on an electric-demand meter installed at the Power
Dept. before. Now, the situation has drastically changed;
we are implementing energy conservation activities acrossthe production plant. The results of the energy conservation

600

500

400

300

200

100

0

West
Kankakee
Rutherford Publication
Coldset Black Gravure

Transportation/sales[Caleppio]
NC BaseOther fuels[Caleppio] [Maumee] [Saint Mary]
Water based Cray Energy
NC lnk flexographic
lnk Curing lnk
Natural gas/steam

Electricity[Slough][Amelia]
Coldset Water-based
Color Flexo Dispersion

CSR REPORT 2010

Information
Security

Thermal insulation cover installed for the
injection molding machine

The Reliabilit y of
Financial Reporting

LED-type rotary beacon light

China

Our Business Models
Focused on Customer
Satisfaction

Human Resource
Management
Harmony with theCommunity andContribution to Society

every day. The waste solvent used to be disposed of as
industrial waste by an outside contractor. Due to the current
introduction of a solvent recovery system, it has become
possible to recover 60% of the entire solvent. This outcome
can further lead to a reduction in treatment cost.

The Environment,
Safety, Health andQuality

Malaysia
DIC Malaysia

New Technology
Development andValue Creation

Biomass boiler

Supply Chain
Management

Deqing DIC Synthetic Resins, Ltd.

FY 2009, which are fed carbon-neutral scrap wood as afuel, taking advantage of the local conditions of the Deqing
region, where the timber industry is active.
Due to the boilers newly introduced, the annual consumptionof the energy derived from fossil fuels was reduced by 53%(crude oil equivalent). Also, the shift in fuel brought theemissions of SOx
and NOx down to
zero. So, we are
expecting a sizableeffect: Namely, anannual amount of
about 2,800 tonsof CO 2 emissions
can be reduced.

Reduction in Electricity Consumption and Waste Generation

Information
Disclosures of CSR

The electricity consumption at the production plant of DIC
Malaysia has reached a level very close to the maximum
power-receiving capacity, so we have been keenly working
on countermeasures to cope with this excessive electricity
demand as well as a reduction in electricity consumption.
When five sets of three-roll mills, which were used for filling
offset ink, are replaced with a fully automated filling system,
which consists of an electric motor and a pump, the rated
electric power capacity of one unit of equipment is expected
to decrease from 22 kW to 2 kW, merely one tenth. So, thereplacement of these five filling mills with a new system makes
possible a monthly energy saving of 20,000 kWh, and it also
cuts down the required amount of manpower to a half.
This plant monthly produces approximately 500 tons ofsolvent-type liquid ink, and the cleaning work of the production
facility generates approximately 300 liters of waste solvent(Business Continuity Management)

equivalent) achieved by this facility improvement work
is 0.3% for the entire production plant and 14% for themodified portion of the plant. The effect of this effort wasrecognized by Nagano Prefecture and this project was
granted a subsidy from the Subsidy Program of Nagano
Prefecture’s Energy Conservation Initiative for FY 2009.

Reduction in the consumption of the energy derived from fossil fuels
Deqing DIC Synthetic Resins, which produces solid resinfor printing ink, uses steam at a rate of 1.5 tons/hour, witha temperature of 180°C, for the heating/keeping warm of
the raw material and the production line. Also, Zhaoqing
DIC Gum Rosins, Ltd., which produces rosin, i.e., the raw
material to be used for producing the resin mentioned above,
uses steam at a rate of 2 tons per hour, with a temperature of
350°C, in order to produce refined rosin from pine resin.
Although these companies used to use diesel and heavy
oils for generating steam before, in order to cope withincreasingly unstable prices of the fuel oils, reduce theemissions released into the environment, such as sulfur
oxides (SOx), nitrogen oxides (NOx) and waste waterloading substances (COD), and further promote energy
conservation activities, we introduced biomass boilers, inJapan
Nippon Plastic Pallet Corporation

BCM

Nippon Plastic Pallet’s production plant located in Ueda
produces plastic pallets. Using large injection molding
machines, they heat and melt thermoplastic resin, injectmolten resin, and allow the resin to cool down and solidify:
Plastic pallets are thus produced, and a large amount ofelectricity is consumed by the production facilities.
As part of the effort of reducing electricity consumption(electricit y c onsumption per 1 kg of pallet weight),
conventional rotary beacon lights and guide lights were
replaced with LED lights in the end of FY 2009. The
heater and the cooling piping of the injection molding
machine were provided with thermal insulation covers,
and an inverter was introduced to the motor used for thewater feed pump in the re-cooling water system.
T h e r ate of e n e r g y c o ns e r vat i o n ef fe c t (c r u d e o i lCompliance

Reduction in Thermal Energy and Electricity Consumption

The appearance of DIC Malaysia

31

Report on the Environment, Safety, Health and Quality

Compliance■ Our Achievements in Occupational Safety and Health
Our Activities for Safety and Health in FY 2009

(Business Continuity Management)

BCM

Information
Security

In DIC, by providing Security and Disaster Prevention
Codes and Occupational Safety and Health Codes in
the framework of our Responsible Care Activity Policy
for each fiscal year, we post specific goals of our efforts
for this fiscal year and undertake the task of securing
and enhancing the occupational safety and health.
Secur it y and Disaster Prevent ion Cod es andOccupational Safety and Health Codes for FY 2009

The Reliabilit y of
Financial Reporting

1.	Training for securing safety and transferringskills to the next generation
2.	Reporting, without fail, on the occurrence of an
accident/injury
3.	Risk assessment

Supply Chain
Management
New Technology
Development andValue Creation
The Environment,
Safety, Health andQuality

In F Y 20 09, we implemented not only regularcompliance audits on the environment, safety andquality but also safety management support activities
at four of DIC’s plants and five domestic affiliatedcompanies in order to boost the occupational safety andhealth management.
In order to secure the safety and health of employees,
we compiled and published the following employee
training materials and prepared English and Chineseversions of those materials on an as needed basis, sothat the employees can gain a thorough understandingof safety and health issues facing the entire DIC Group,
including overseas subsidiaries.
Materials Prepared on Safety and Health

The Status of Occupational Injury
The number of cases of occupational injury, which
resulted in employees’ absence from work, at DIC in
FY 2009 was three (three cases in FY 2008), and theoccupational accident frequency rate was 0.45 (0.38
in FY 2008), while the severity rate was 0.029 (0.044
in FY 2008). As for the entire domestic DIC Group, thenumber of lost-work-time injuries in FY 2009 was 13 (8in FY 2008). The occupational accident frequency rateof the domestic DIC Group in FY 2009 was 1.25, andthe severity rate was 0.036.
Although the number of injuries increased in FY 2009
as compared with the previous year, the severity rate
decreased. This means that the occupational injuries
as a whole were minor. Looking at an increase in the
Occupational
Accident
Frequency
number of injuries
seriously,
weRateat the DIC Group are(Frequency Rate)further enhancing our effort of campaigning safety
7.00
management activities towards FY 2010.
6.00
In order for the DIC group to further promote the safety
5.00
activities, continuously since FY 2008, we added a
4.00
DART
(Days Away, Restricted, or Transferred) Rate*1,
3.00
the index commonly used in various countries.
2.00
The
DART Rate of DIC in FY 2009 was 20.0, with 22.1
1.00
forthe domestic DIC group, 21.7 for the overseas DIC
0.00
Group
and 21.8 for the overall DIC Group.
'70 '75 '80 '85 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09(fiscal year)*1 DART Rate:

DIC
Chemical Industry
Manufacturing Industry
Total number of days whenordinary work was not possible
× 200,000 hours
total annual working hours

200,000 hours : number of hours 100 persons work full-time = 4 weeks/month, 50 weeks/year

Our Business Models
Focused on Customer
Satisfaction

Safety Gear-Wearing Manual
Safety Basic Actions (4th edition revised)
Accident/Injury Cases in Technical Departments
and A Collection of Hiyari-Hatto Cases

Occupational Accident Severity Rate
(Severity Rate)
1.40
1.20
1.00

Occupational Accident Frequency Rate

Human Resource
Management

0.80(Frequency Rate)

0.60

7.00

0.40

6.00

0.20

5.00

0.00

4.00

'70 '75 '80 '85 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09(fiscal year)

Harmony with theCommunity andContribution to Society

3.00

DIC

2.00

'70 '75 '80 '85 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09(fiscal year)

DIC

Chemical Industry

Manufacturing Industry

Information
Disclosures of CSR*Occupational Accident Frequency Rate
The occupational accident frequency rate is the number of injuries and deaths due
to occupational accidents per one million hours of labor.
Calculation:

Number of injuries and deaths
Total work hours

× 1,000,000

An occupational accident frequency rate of 1.0, for example, corresponds to one
accident per year in a workplace with 500 employees.

Occupational Accident Severity Rate
(Severity Rate)

32

1.40
1.20
1.00

Manufacturing Industry*Occupational Accident Severity Rate
The occupational accident severity rate is the number of work days lost per 1,000
hours of labor.

1.00
0.00

Chemical Industry

Calculation:		

Number of days lost
Total work hours

× 1,000

An occupational accident severity rate of 0.1, for example, corresponds to 100
work days lost per year in a workplace with 500 employees.
Note:
1. “Chemical Industry” and “Manufacturing Industry” include all companies in the chemicalindustry and the manufacturing industry, respectively, as defined by the Ministry of Health,Labour and Welfare for the purposes of its Occupational Safety and Health Statistics.
2. Figures for DIC are for the fiscal year (April 1–March 31). Figures for the chemicalindustry and the manufacturing industry are for the calendar year (January 1-December 31).

CSR REPORT 2010

Harmony with theCommunity andContribution to Society

Asian region EHS meeting*2 Yellow Card: Relative to a voluntary activity promoted by the Japan Chemical Industry Association (JCIA). This card indicates contact information and the appropriate actions
to be taken at the time of an accident during the transportation of chemicals for carriers, firefighters and police officers. All carriers of chemicals are obliged to carry this card.

Information
Disclosures of CSR

To cope with emergencies while transporting chemicals,
we provide Yellow Card*2, not only to freight-exclusive
vehicles such as containers and tank trucks, but also
to general freight vehicles which carry mixed loads.
For the transportation of DIC products, we use special
containers that comply with transport-related regulations
such as the Fire Defense Law and United Nations
Standards.

Human Resource
Management

Our Measures in Distribution

Our Business Models
Focused on Customer
Satisfaction

The second Asia Regional Safety Meeting took placein Bangkok, Thailand, on February 23 and 24, 2010,
and personnel in charge of safety working for affiliatedcompanies got together. Representatives from all theaffiliated companies in Asia gathered there, including those
responsible for EHS in China and DIC’s CSR Promotion
Dept. The total number of participants was 30, from 17
companies. The current status of safety management was
explained and various problems were reported.

The Environment,
Safety, Health andQuality

Improvement of Overseas Environment and Safety System

New Technology
Development andValue Creation

Yokkaichi Plant: 5 rings,
Central Research Laboratories: 9 rings,
Suita Plant: 10 rings, Tokyo Plant: 12 rings,
Kashima Plant: 12 rings,
DIC Kitanihon Polymer Co., Ltd., Hokkaido Plant: 16 rings,
Hokuriku Plant: 20 rings (of which, 16 in gold),
Kyushu Branch: 21 rings (of which, 20 in gold)

Supply Chain
Management

Major Achievements of “ Safety Tree Rings”(more than 5 rings)

The Reliabilit y of
Financial Reporting

Safety Tree Rings ofthe Hokuriku Plant

Information
Security

Aiming to achieve safety and reliability, as a chemicalmaterial manufacturer, DIC conducts environment
assessments, while promoting the development ofrecyclable, safer, energy-saving products with lesshazardous substances and less waste.
To ensure safe production facilities with reliability, DIC
newly established the DIC Risk Assessment Guidelines for
Mechanical Equipment. When formulating facility investment
plans and renovating existing facilities, we additionally
use the risk assessment method, PSM (Process Safety
Management), together with the new guidelines.
We also provide educational programs regularly to ouremployees concerning the safety and handling of chemicals,
by utilizing safety guidelines for technology and research
departments, MSDS, safety basic actions, and accident
case studies.

Safety Tree Rings is DIC’s safety commendation
system to honor our plants, R&D facilities and partof our domestic Group companies accomplishing nooccupational accidents with lost work days for a full year.
Those achieving no occupational
accidents will be given an annual
grow th r ing to their Safet y 20
silver rings for 20 years without
occupational accidents. When 20
silver rings are completed, from the
21st year, a gold ring will replaceeach silver ring for each additional
year without any occupational
accident involving lost work days.

(Business Continuity Management)

Risk and Hazard Assessment and Education“Safety Tree Rings”

BCM

In FY 2010, by promoting safety activities sticking to
the basics positively, we will further strive to train our
employees regarding an effective climate for safety andfacility maintenance know-hows and create a mechanism tosecure their safety. Understanding that it is the primary stepof safety measures to share the information on an accident
or injuries, which have occurred, we promote the lateraldevelopment of our measures for preventing accidents andinjuries by thoroughly analyzing reported cases.
Specifically, in FY 2010, we will conduct a follow-up audit inorder to confirm the current status of the improvement items
which were pointed out by the periodical audit in FY 2009.
We will also carry out the following activities at DIC’s plants
and domestic affiliated companies: Safety management
support activities, accident case study seminars for those incharge of safety, having the activities of predicting risks takeroot and promoting them, preparation of training materials
in a video/animation format and sharing of such training
videos, and promotion of on-site training laterally, etc.

Compliance

Goals for Our Effort in FY 201033

Report on the Environment, Safety, Health and Quality

Compliance■ Environmental Cost/Safety and Health Costs
Environment and Safety Costs(Business Continuity Management)

BCM

DIC has been publishing our environment and safety costs since FY 1998, obtained from our own calculation methods. From FY 2000,
to calculate our environment costs (investments and expenses), we have been referencing the Preparation for the Establishment of an
Environmental Accounting System (reported in 2000) by Japanese Ministry of Environment. For the investment amounts and expenses forsafety, health, and disaster prevention, we will continue to use our own calculation methods and disclose these costs in our operations.

Information
Security
The Reliabilit y of
Financial Reporting(1) Environment Costs in FY 2009(2) Safety and Health-Related Costs in FY 2009

In FY 2009, environment-related capital investment was

In FY 2009, safety-and health-related capital investment

275 million yen, as total domestic DIC Group was 313

was 121 million yen, as total domestic DIC Group was

million yen.

143 million yen.

As for environment-related expenses, DIC spent a total

As for safety- and health-related expenses, DIC spentof 10.216 billion yen, total domestic DIC Group wasa total of 899 million yen, as total domestic DIC Group

10.792 billion yen. (For details, see

P47）

was 1.112 billion yen. (For details, see

P47）■ Management of Information on Chemicals Involved in Our Products

Supply Chain
Management

Providing Proper Information about Our Products

New Technology
Development andValue Creation
The Environment,
Safety, Health andQuality
Our Business Models
Focused on Customer
Satisfaction

I n D I C, m a k i n g u s e of t h e c h e m i c a l i nf o r m at i o ncomprehensive management system (CIRIUS), which wasestablished as an internal IT tool, we are working on theinformation management of chemicals for our raw materials
and products. We provide customers, including otherstakeholders, with information on a wide range of subjects,
such as Material Safety Data Sheet (MSDS), those chemicals
which are subject to strict management, and so forth. We
are determined to properly prepare the MSDS by describing
without fail the safe manner of handling our products andthe proper manner of their disposal, and we are exerting
our maximum effort so that neither occupational injuries nor
environmental pollutions will occur due to our products.
CIRIUS has a function to prepare MSDS automatically.

TOPICSThis system automatically checks domestic regulations andprepares uniform and highly reliable MSDS. Now, even minor
components included in raw materials can be checked bythis system. The information of minor components included in
our products will be indicated not only on MSDS, but also on
MSDSplus*1 and AIS*2.
Regarding the Revised Chemical Substances Control Law,
which was put into force effective April 1, 2010, we are voicing
our standpoints of private companies through industry group
activities toward the authorities concerned. Also, in order tocope with the two-step enforcement of the law, effective April
1, 2011, we have started to establish a system for reporting
numbers on the manufacturing, importation and shipping.

A Speech at the China National Chemical Information Center (CNCIC)
Mr. Yamaguchi, who is responsible for regulatory compliance at the Responsible

Human Resource
Management

Care Dept., DIC, was invited by CNCIC, a leading company in China in the fieldof publishing books on the chemical industry, assessment and consulting, and hedelivered a speech on the regulation of chemicals at the said company in Beijing in
April, 2009. By having a question and answer session on several topics, such as “DIC’s
effort to cope with REACH*3, ” “an outline of the Revised Chemical Substances
Control Law and impacts thereof to companies in China” and other subjects, with

Harmony with theCommunity andContribution to Society

Chinese experts in the field of chemical management and exchanging opinions withthem, both parties deepened their level of mutual understanding.
The details of this event were reported by industry newspapers and attracted
attention as an advanced effort attempted by one of the leading companies in Japan.
Mr. Mitsuo Yamaguchi, Senior Manager responsible for regulatory compliance, Responsible Care Dept.

Information
Disclosures of CSR

34*1 MSDSplus: A document format to supplement information on MSDS advocated by JAMP (Joint Article Management Promotion-consortium) to be uniformly used by the industry*2 AIS: Article Information Sheet
Another document format advocated by JAMP. While MSDSplus is for chemical products, AIS is for articles.
*3 REACH: Registration, Evaluation, Authorization and Restriction of Chemicals
European chemicals regulations. Under REACH, businesses bear responsibility for evaluating the safety of chemicals with no distinction made between existing and new chemicals.
REACH also prohibits the use of specified chemicals in principle.

CSR REPORT 2010

Compliance■ Quality Policy and Quality Activities
Flow of Customer First Policy of DIC
Part visible tocustomers

Output from DIC
Products

Sales strategies

Quality assurance

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

Planning and framing

Marketing
Design and development

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

Design review
Validation
Control of changes

Product evaluation
Trial production
Mass trial production

Contract/
delivery specifications
COA (Certificate of Analysis)
MSDS/Catalog
Products

DIC Website
Customer consultation information
Technical service
Quality validation

Production/
quality confirmation
Products

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

Business ac tivities of DIC to deliver high qualit y products that are safe and reliable

Planning and Framing
In product planning, related manufacturing, sales, technology andof products based on requirements from the market and customers.
Development and Design Review
In development and design review, quality targets are set in line with thebasic performance of products based on market trends and requests fromtechnologies and accumulated data. Concurrently, we confirm that raw
materials and products have no problem from social perspectives.
Production and Quality Confirmation
management. To maintain mutually beneficial relationships with customers,
DIC focuses on resource-saving, energy-saving and cost reduction.
Sales and Technical Services
We will strive to improve our product quality, by listening to the voices of ourwe provide information, data and technical services through our sales offices,to further enhance customer satisfaction.

Current Situation of ISO Certification

Harmony with theCommunity andContribution to Society

WEB http://www.dic.co.jp/en/csr/environment/iso.html

Our Efforts in FY 2010
follow-up audits are conducted by the use of self-audit
check sheets, with the division responsible for eachindividual affiliated company taking a leading part insuch audit. We are keenly engaged in maintaining/
improving quality.

Information
Disclosures of CSR

In FY 2010, we will conduct environmental safety audits,quality audits, including top management diagnoses,
and thereafter follow-up audits, at the 17 manufacturing
sites of DIC (including DIC Graphics) to maintain our
quality and environmental management system and toyield continued improvement in its effectiveness.
Regarding our affiliated companies, quality audits andHuman Resource
Management

customers. To ensure our customers can use our products safely and reliably,

Our Business Models
Focused on Customer
Satisfaction

To ensure product quality, we conduct thorough process and identification

2. In FY 2009, Green Partner Certificates were obtained from SONY
by our Kashima Plant, Special Compounds & Colorants Division,and two overseas affiliated companies (one in Taiwan and the otherin Malaysia). We are also preparing ourselves so that our overseas
affiliated companies can positively respond to the needs for supply
chains.
3. We shared the information we obtained from customers among ourmanufacturing, sales and technical departments to make use of it
for quality improvement. Consequently, the number of complaints
from our customers and returned products decreased in FY 2009
compared to FY 2008. (Compensation: -16%, Returned products:-46%, Complaint: -7%)
4. At the Sakai Plant, we are operating Quality Patrol activities, inwhich we visit one site after another where a quality problem has
occurred. We periodically check whether or not countermeasuresfor complaints are continuously taken, thereby attempting toprevent our corrective actions from fading out as a temporary
attempt. The Quality Patrol activities are yielding a decrease in thenumber of complaints (-22% as compared with the previous year).
The Sakai Plant also launched a campaign called QC Activities in
Sakai and started to provide all their employees with on-the-job
training on quality.

The Environment,
Safety, Health andQualitycustomers, and create values for the same, by reflecting DIC’s inherent

1. At 12 domestic production plants, we are moving ahead withmaintaining our quality and environmental management systemand continuously improving it so that its effectiveness can befurther enhanced. This policy is also being applied to affiliatedcompanies.

New Technology
Development andValue Creation

administration departments collaborate and determine the basic performance

Major Quality Activities and Review in FY 2009

Supply Chain
Management

DIC’s Product Provision Process

The Reliabilit y of
Financial Reporting

Design and development

MSDS
Technical
information

Labeling
Package
SampleInformation
Security

Customer satisfaction
realization system of DIC

Requirements(Business Continuity Management)

BCM

Requests from customer s /mar ket and societ yInformation from customers

35

Report on Our Business Models Focused on Customer Satisfaction / Report on Human Resource Management

Compliance

Report on Our Business Models Focused on Customer Satisfaction
WEB

http://www.dic.co.jp/en/csr/stakeholder/customer/satisfaction.html

Targets and Achievements of Major Approaches
Viewpoints and tasks of the approaches(Business Continuity Management)

BCM

More effective solutions tocustomers’ problems

Targets for FY 2009

Achievements in FY 2009

Targets for FY 2010

Making comprehensive use ofcompany-wide technologies
that respond to customers’
needs

Sorted the coretechnologies into 29 items in 7
fields

Proposing and making use of
introductory literature on our products,
which are compiled for individual
industries where demands are highInformation
Security

Major Activity Highlights

The Reliabilit y of
Financial Reporting
Supply Chain
Management
New Technology
Development andValue Creation
The Environment,
Safety, Health andQuality

Our Major Efforts in FY 2009
Based on the medium-term management plan “,”
we promoted a paradigm shift in our focus, from our traditional
product-specific management approach to one that allows us
to fully exploit the DIC Group's vast resources.
Regarding the business fields/subjects, in which multiple
divisions in DIC are involved, we integrated the relevantmarketing functions into the Corporate Marketing Dept., andwe went ahead with the optimization of our businesses in thematerials to be used for solar batteries, digital inks (including
Ink-jet inks), and materials to be used for functional films.
We updated DIC ’s c or porate website in F Y 20 0 9 andrestructured it for easier use by customers so that thecustomers can select proper products either by type or by
application. We are still continuing to update our website, forexample, by making the data of individual products more visibly
appealing so that the characteristics and physical properties ofour products can be easily understood.
In FY 2009, we established a new organization, called the
Area Sales & Marketing Dept., through which we started tocome into close contact with local regions to introduce various
products. In order to allow our customers to effectively utilize
DIC’s resources, we sorted DIC’s entire technologies into 29
items in 7 fields. We call them core technologies and preparedintroductory documents for customers.

Our Business Models
Focused on Customer
Satisfaction

Human Resource
Management
Harmony with theCommunity andContribution to Society

Our Plans for FY 2010
In parallel with broadly introducing our core technologies tocustomers, we will go ahead with the preparation of Product
Guidebooks. Each Product Guidebook will cover a specificindustry field, such as electric/electronics, packaging, etc., and,in an attempt to offer our customers specific solutions to theirproblems, we will introduce to them representative products inwhich DIC is involved, adopting a crow’s nest view.
In FY 2010, we plan to participate in trade shows, one for
packaging materials and the other for the building construction/building-products industry, to exhibit the comprehensive rangeof DIC’s products and technologies.
We will continue to step up our efforts and exercise ourcreativity and imagination so that many more customers willappreciate the relationship they have had with DIC.

Exhibit of DIC Group’s elemental technologies

Technologies for measurement,
blending and controlling of colors

Technologies to be used for measuring, blending and controllingcolors, based on ink and chemistry, which are required for bringing
those characteristics demanded for color into reality【Characteristics】■The best suited ink and paint-color-toning
technique derived from the base ink andpaint system used, respectively■Improved color-toning precision ensured by
the measurement and color control
technologies, compatible with the material,
usage environment and application thereof■A technology to predict "the way it looks"
under different light sources【Application examples】

Information
Disclosures of CSR■Printing inks (offset, gravure, flexo andnewspaper)■Paint and coating materials■Can-manufacturing materials (ink and paint)■Resin colorants (plastic and fiber)■Inks for optical disc labels■Inks for ink-jet printers■Films for hydraulic transfer printing■Decorative papers and decorative sheets■Wood grain, incombustible decorative boards■Artificial marble■Natural colorants

DIC Corporation
March, 2010 Ver. 1.13

Where to call: Printing Inks & Supplies Business Operation
Chemical Solutions Materials Business Operation
Cooperate R&D Dept.

Examples of elemental technologies

36CSR REPORT 2010

WEB

Compliance

Report on Human Resource Management
http://www.dic.co.jp/en/csr/stakeholder/staff.html

Targets and Achievements of Major Approaches
Targets for FY 2010

Development and
Employment ofLocal Staff for Global
Management

Selection of competenthuman resources andemployment of humanresources regardless ofnationality

Improvement of various
HR systems to develop
local staff with theSoutheast Asia district as
the target

The survey of each company
completed.
The order of priority ofcompanies that need
improvement of various HR
systems has been determined.

To improve theframework of the current
HR system in order toassess personnel using
the same scale.

Promotion of
Successful Careers
for Female Employees

To secure a variety ofhuman resources andprovide support to avariety of work formats

Expansion of work fields
for female employees

The number of female
employees positioned as
manufacturing operators andsales persons has increased.

To continue to promotemeasures to expand
work fields for female
employees

To secure a variety ofhuman resources andprovide support to avariety of work formats

To achieve the legal
employment rate

The rate was notachieved. (1.73% as ofJuly 1, 2009)

To further promote theemployment of persons
with handicaps for theachievement of the legal
employment rate (1.8%)

Promotion of
Employment of
Persons with
Handicaps

business foundations and corporate development will help

● Respect for Human Rights
The DIC Group promotes the creation of a workplace where
all employees are properly aware of human right issues

promote employment stability, as proposed from labor union to
management, we hold a management council meeting on anannual basis, exchanging frank opinions mainly on businessactivities and the future policy.

WAY Code of Business Conduct, it clearly states that theCompany will eliminate various violations of human rights in
our corporate activities by the following means: (1) respectfor human rights, (2) prohibition of forced labor, (3) prohibition
prohibition of discriminatory treatment.
● Measures to Prevent Sexual Harassment
The DIC Group prohibits sexual harassment behavior in ourclearly stated in our company rules and in DIC’s declaration toprohibit sexual harassment at work.
In order to maintain a work environment devoid of sexual
harassment, DIC continuously posts internal guidelines as wellsite on our Intranet to keep every employee informed, andmoreover, provides sexual harassment prevention education to
new managers during their training session.

employees, irrespective of their gender, can choose various
life styles. Especially, the contents to support work-child carebalanc e are prepared beyond
what is legally required, so that
employees can use it according totheir respective situations.
As a result of the above efforts,
DIC was certified by the Ministryof Health, Labour and Welfare as acompany that positively promotes
support for the development of thenext generation.

for DIC employees, but also temporary workers and employees

Next Generation
Certification Mark
“Kurumin”

of affiliates and the entire DIC Group works to prevent any
occurrence and make speedy responses.

To create workplaces where employees can actively work

Number of Employees Taking Advantage of the Childcare Leave System
Fiscal year

Number of Employees

FY 200730

at each site, aiming to further develop mutual trust throughFY 200840

information exchanges. Believing that sound and strong

FY 200931

with peace of mind, DIC holds labor-management councils
and safety and health committee meetings on a regular basis

Information
Disclosures of CSR●O ur Measures for Labor-Management and Safety and HealthHarmony with theCommunity andContribution to Society

Activities to prevent sexual harassment are intended not only

so taht female employees can play active roles, and all

Human Resource
Management

as the list of counseling and complaint windows set up at eachwork-life balance (a balance between work and family life)

Our Business Models
Focused on Customer
Satisfaction

DIC WAY Code of Business Conduct. This prohibition is also

DIC has been working on improvement of systems to realize

The Environment,
Safety, Health andQualityof child labor, (4) prohibition of inhumane treatment, and (5)Measures to Achieve Work-Life Balance

New Technology
Development andValue Creationand mutually respect each other’s human rights. In the DIC

Supply Chain
Management

Protection of Workers’ Rights

The Reliabilit y of
Financial Reporting

Achievements in FY 2009

Information
Security

Targets for FY 2009

(Business Continuity Management)

Viewpoints and tasks of the approaches

BCM

Items

37

Report on Human Resource Management

Compliance

Support Systems for Work-Child Care Balance(Business Continuity Management)

BCM

Information
Security

System for
Working while
Child Rearing

The Shorter Working Hour System for Childcare and Staggered
Working Hour System for Childcare until the end of their child’s
third grade school year.

Child Care Leave
System for Child
Rearing Partners

For the period between the child’s birth and the following 8 weeks,a male employee can take childcare leave of up to 5 days.

Improvement of
the Economic
Support System

Employees on child-care leave without pay may borrow part oftheir bonus and may obtain an in-company loan system for casessuch as fertility treatment and use of child-care facilities.

Promotion of
the Use of the
Systems

A guide to the support systems is posted on our Intranet.

The Reliabilit y of
Financial Reporting● Promotion Activities to Support Successful Careers for
Female Employees

Supply Chain
Management
New Technology
Development andValue Creation
The Environment,
Safety, Health andQuality
Our Business Models
Focused on Customer
Satisfaction

Since FY 2006, DIC has been working on activities for female
employees to play active roles at the Company, aiming tobecome a Company where all employees with willingness
can play active roles irrespective of their gender. Efforts are
made mainly by the dedicated section (General Affairs andHuman Resources Dept., the section in charge of female
employees' career development promotion) toward education,
improvement of the employment rate of females and expansionof work fields.
In FY 2009, both education for management-level employees,
lecture for new managers, and career development training
for female employees were provided for the improvement ofawareness and activate the challenge of female employees.
In view of work fields, in FY 2008, female employees wereassigned for the first time to manufacturing sites where
wor ker s wor k in t hree - shif t s. N ew ly- rec r uited female
employees have been assigned there in FY 2010. Meanwhile,through new recruits and reassignments, there are currently
16 females active in sales. Thus, expansion of work fields forfemale employees is promoted in a variety of lines of work andworkplaces.

DIC actively works to promote local staff to management
positions of overseas Group companies in order to entrust
management to them.
In FY 2009, DIC conducted a survey on various HR systems
with Group companies in the Southeast Asia district assubjects in order to expand the area where the humanresources management method for global management
implemented in China ahead of other countries is adopted.
In the future, from the results of the survey, we will provide
management training sessions, etc. for equalization of HR
systems and development of future management executives of
the Group companies that are higher in the order of priorities.

Employment-related activities● Promotion of Employment of Senior Persons
With the aim of providing employment opportunities for capablesenior employees who wish to continue working, in 1991, DIC
became one of the first companies in Japan to introduce a
reemployment system that enables employees to continue
working beyond the mandatory retirement age. This systemallows for reemployment up to the age of 65. In addition tobroadening the scope of opportunities for retirees, DIC has
modified this system in accordance with revisions in 2006 to
the Law Concerning the Stabilization of Employment of Older
Persons.
Reemployment at DIC
Fiscal year

Number of employees
reemployed

Reemployment rate (%)

FY 200794

92.2%

FY 2008

84

88.4%

FY 2009

101

99.0%

● Promotion of Employment of Persons with Handicaps

Human Resource
Management

DIC works earnestly to promote the employment of handicaped
persons as part of our efforts to fulfill our corporate social
responsibilities.
The legal employment rate was met successfully during FY
2008, but the rate dropped below the legal minimum to 1.73%
in FY 2009.
In the future, we will work cooperatively with the local public
job placement office (Hello Work) to select model workplaces
where persons with handicaps can work on a long term basis .

Harmony with theCommunity andContribution to Society● Spread of CSR

Information
Disclosures of CSR

In order to further promote CSR-conscious management, startingfrom FY 2009, every management-level employees stipulates his/her “CSR viewpoint” that supports the execution of assignment
when he/she sets his/her work assignment.
The Seventh Female Salespersons Meeting38● Development and Employment of Local Staff for Global
Management

CSR REPORT 2010

In particular, global-minded personnel development training

to realize their full potential and ensuring the effor ts ofand self-development training have specific characteristics.

employees are fairly reflected in salaries, DIC has long applied

Specifically, as for our self-development training, even new

an employment system that rejects job category, academic

recruits and junior employees actively participate in the training

record and other such factors unrelated to performance.

programs. With the latter, while employees can acquire thePromotions within DIC are determined once annually andnecessary skills in executing their duties at work, the programs

based on the results of an objective assessment procedureplay a vital role as venues for participants to create networks atthat includes a written test, essay, interviews and personnel

the Company.

for all employees exhibiting initiative and skill.
Outline of Employee Training Curricula● A Goal-Oriented Evaluation System
To fur ther heighten the transparency and legitimacy of“management by objective (MBO)” in our system. Based on
this concept, targets will be set at the beginning of each period.

Curricula aimed at training and reinforcing the competence ofmanagement-level employees in an increasingly global corporate
marketDIC Management School

DIC Business College

Based on these, each employee’s capability and performance
will be semiannually evaluated. The results of this evaluation
the evaluation and disclosed. We also utilize the results of theevaluations to develop our own human resources. (For detailsof our evaluation system, please refer to the chart below.)

Curricula for cultivating competent human resources in global markets
Curricula aimed at strategically cultivating management- andstaff-level human resources for DIC Group companies overseas by
imparting essential, comprehensive expertise
Training for employees assigned to posts
related to overseas businessSupport for employees seeking MBAs
at overseas educational institutions

Training overseas

Curricula for newly recruited and promoted employees to learn theknowledge required to carry out the role at different levels.
Training for newly promoted employees
at different levels

Employee Evaluation Process

Follow-up training for
new employees

Supervisor

Training for new middle
management-level employees

Training for new recruits

Training in mentoring

Self- development curricula

Divisiontargets

Various curricula offered by DIC Business School to employees who
positively and voluntarily work for skill development
Correspondence courses

InterviewVideo library courses

e-learning courses
Human Resource
Management

Feedback

Individual targets

In-house seminar courses

Execution of duties

Process
evaluation

Annual evaluation

Harmony with theCommunity andContribution to Society

Careerdevelopment
sheet

Our Business Models
Focused on Customer
Satisfaction

Individual

Training in coaching

The Environment,
Safety, Health andQuality

Level- specific curricula

New Technology
Development andValue Creation

will be fed back to the employee together with the reasons for

Supply Chain
Management

the evaluation system, DIC has introduced the concept ofManagement-level training curricula

The Reliabilit y of
Financial Reporting

evaluation. This ensures equal opportunities for advancement

Information
Security

DIC’s training programs can be roughly divided into 4 categories.

With the aim of building a workplace that enables all employees(Business Continuity Management)● A Performance-based Employee Qualification System

BCM

Employment Opportunities and Employee Development DIC’s Training Programs

Compliance

Employment Opportunities and Employee Development

Results
evaluation

Semiannual evaluation

Information
Disclosures of CSR

Bonuses

SalaryPromotion

Appropriate
assignment

Skilldevelopment

Training for newly promoted employees

39

Report on Harmony with the Community and Contribution to Society

Compliance

Report on Harmony with the Community and Contribution to SocietyWEB

http://www.dic.co.jp/en/csr/society/index.html(Business Continuity Management)

BCM

Based on the Guidelines for Social Contribution Activities established in FY 2009, the DIC Group is promoting harmony
with local communities and society and advancing our activities, focusing on the establishing of a sound relationship withsociety.
*For more details of the Guidelines for Social Contribution Activities, please refer to the DIC website. WEB http://www.dic.co.jp/en/csr/society/guideline.html

Promotion of the Universal Designs in the Field of Color

Information
Security
The Reliabilit y of
Financial Reporting
Supply Chain
Management
New Technology
Development andValue Creation
The Environment,
Safety, Health andQuality
Our Business Models
Focused on Customer
Satisfaction

Human Resource
Management
Harmony with theCommunity andContribution to Society

Information
Disclosures of CSR

40

The DIC Group has been working on developing colors andcolor combinations, which can be equally identified by as many
people as possible based on concepts of universal designs;
supervised by Associate Professor Kei Ito of the Institute of
Molecular and Cellular Biosciences, at the University of Tokyo.
In line with those activities, we made a statement on a Color
Set Recommendable for Universal Designs / Process-Color
Version, which can be used for process printing, in October
2009. In this, based on the results obtained from a verification
we made of the colors reproduced by the process printing, we
set up an optimal CMYK value*1 for each of the 20 colors. We
believe this color set is useful for practical business affairs. It
can be used for highly public applications, such as pamphlets,
and it is expected to contribute to expanding the usage ofuniversal designs in the area of offset printing.
Also, in the DIC Group, we have prepared various printed

m at te r s , i n c l u d i n g a 2 010 c a l e n d a r, c a l l e d “ D o o r To
Imagination,” and the CSR Report, with our due attention to
the way colors are laid out.
In the DIC Group, we will continue our studies toward a further
development/popularization of universal designs and respondto the needs of society aimed at a colorful and good life.

*1 In general, printing is composed of four colors, i.e., cyan (C), magenta (M),yellow (Y) and black (K). The CMYK value shows the area ratio that each color
shares in a printed surface.

*This piece of information is posted in a supplement
appended to Process Color Note (Ver.7) (see a
photo to the left), put on sale in February 2010.

Pamphlet: A Color Set Recommendable for
Universal Designs / Process-Color Version

DIC Group’s 2010 calendar,“Door To Imagination”

Spirulina Project Is Finally Launched
The DIC Group is the world’s largest Spirulina*2 supplier withexperience in the research, application, and production ofedible blue-green algae, Spirulina, for the past 30 years.
The DIC Group recently signed a support agreement with
the Alliance Forum Foundation, an NGO active in supporting
developing countries, and started to support the Hunger
Eradication/Nutrition Improvement Activities, aimed at Africa.
At this moment, in the Republic of Zambia in Africa, which
was selected as the first nation to receive the support, an
approval for the importation of Spirulina has been released.
From now on, a detailed support program will be negotiatedwith the Ministry of Health to discuss distribution targets andthe rationing manner. This project will be incorporated into
the malnutrition improvement program run by the Zambian
government.
The DIC Group will continue
to supply Spirulina, which is an
ideal nutritional supplement,
to those local people who arefacing malnutrition and a riskof hunger, and continue toprovide relevant technologies and funds for Spirulina.

Dietary Education Class Regarding Spirulina
Aiming at exchanges with local communities and making acontribution to child education, DIC Liftech Co., Ltd. conducteda dietary education class at the Sakamoto Elementary Schoolin Chuo-ku, Tokyo, on June 1, 2010. In this program, thestudents learned about natural colorant used for various kindsof sweets, microscopically observed Spirulina algae, which
are used to extract a natural blue colorant, and confirmed its
unique shape and color in the microscopic world. They also
learned about the origin of Spirulina, its natural habitat andthe nutritional substances. By introducing some topics on the
Spirulina Project, an application possibility in space and others,
we tried to get the students interested in the significanceexisting behind “diet” and maintain an inquiring mind.

Children in Africa*2 Spirulina supplement contains an abundant amount of nutritional/healthy
substances (i.e., more than 50 kinds), including minerals, such as calcium and iron,and various vitamins. So, it has been highly appreciated as a safe source of an ideal,
nutritional food supplement by the World Health Organization (WHO) of the United
Nations and the Food and Drug Administration (FDA) of the United States.

Dietary Education Class regarding Spirulina

CSR REPORT 2010

Compliance

http://kawamura-museum.dic.co.jp/en/

Supply Chain
Management

Exhibition:
The Fan of Marie Laurencin*3 “Satoyama” is a Japanese term applied to the border zone or area between
mountain foothills and arable flat land.

Our Business Models
Focused on Customer
Satisfaction

Human Resource
Management

Art Education Program

Museum attendant
Kawamura Memorial Museumof ArtInformation
Disclosures of CSR

In art classes in school, teachers tend to spend more time on having children learn skills
than enjoying works of art. I think it is also important to closely view the object to develop
the ability to observe. As teachers in public schools are relocated frequently, it is difficult
to have them take part in our program continuously. Accordingly, we keep looking for newparticipants who agree with our program. I have to spend a huge amount of energy not
only on classes are held in the Museum, but also in making preparations or meetings. Still
I find my job challenging and satisfying, to offer an opportunity for children to appreciate
Mariko Yonemoto real works of art and think deeply about them.

Harmony with theCommunity andContribution to Society

Walkway on the premise of the Kawamura Memorial Museum of Art

VOICE

The Environment,
Safety, Health andQuality

biodiversity.

New Technology
Development andValue Creation

Kawamura Memorial Museum of Art

Preservation of Satoyama*3 (Border Zone between Mountains and Farming Land) with Consideration on Biodiversity
Natural forests with cedars, sawtooth oaks and chinquapins arepreserved on the circa 73.52-acre premises of the Kawamura
Memorial Museum of Art and the adjacent DIC Central ResearchLaboratory. The walkways are open to the public and visitors
enjoy beautiful sceneries from the four seasons. They find stagand other beetles, dragonflies and cicadas, while walking on the
walkway in summer, and view many mandarin duck pairs thathave flown in and are feeding with other birds in the Swan Pondin winter. Animal hunting and plant picking are not allowed here
as it is a natural nature reserve where rich nature is kept as it is.
Kawamura Memorial Museum of Art makes efforts to protect
and cultivate Japanese golden-banded lilies. Gatherings ofnative lilies are found on banks. Gorgeous white lily flowers
bloom and fill the air with their sweet scent in July. By helping
preserve the Satoyama*3 area, the Museum works to manage
the facilities in a manner friendly to the natural environment and

The Reliabilit y of
Financial Reportingchildren to help cultivate artistic sensibilities by encouraging
them to view and discuss works of art. In 2009, 1,413 children
from 59 primary schools participated in the program. In August
2010, providing its art gallery, the Museum served as the venueof the Art & Craft Exhibition of high schools in the Inba District
participated by high school students to provide support to help
more local citizens to enjoy art and craft.

Information
Security

Kawamura Memorial Museum of Art opened in Sakura City,
Chiba Prefecture in May 1990, adjacent to the DIC Central
Research Laboratory. The Museum marked its 20th anniversary
this year. The number of average annual visitors to the Museum
is about 100,000 and the total number including garden visitors
exceeds 240,000 annually. Thus, the Museum has establisheditself as one of the major cultural facilities of Chiba Prefecture in
Japan.
In addition to its extensive standing exhibits, the museum also
stages exclusive exhibitions three or four times each year. “TheFan of Marie Laurencin” in January 2010 and “Joseph Cornell& Mutsuo Takahashi: Intimate Worlds Enclosed” in April bothenjoyed favorable comments from visitors. In September,
Japan’s first-ever exhibition of paintings by American artist
Barnett Newman, a major figure in abstract expressionism,
started.
For the enhancement of exchanges with the local community,
the Museum provides the Art Education Program for schoolWEB(Business Continuity Management)

BCM

Kawamura Memorial Museum of Art

41

Report on Harmony with the Community and Contribution to Society / Report on Information Disclosures of CSR

Compliance

Participating in the Program of Fostering Engineering-oriented Human Resources at an Early Stage(Business Continuity Management)

BCM

Organizing a Class for a Hollow Fiber Membrane
Experiment at a Senior High School

Information
Security
The Reliabilit y of
Financial Reporting
Supply Chain
Management
New Technology
Development andValue Creation

The Ministry of Economy, Trade and Industry is runninga Program of Fostering Engineering-oriented Human
Resources at an Early Stage. Their intention is to boost
the interest of young people in engineering by conveying
fascinating aspects of science and technology at an
early stage of their education. DIC participated in thisprogram in 2009, and conducted a class on deaeration/
aeration exper iments by utilizing a hollow f iber
membrane at Senshu University Matsudo Senior HighSchool on December 22, under the support by Leave anest Co., Ltd.
Hollow fiber membranes are used very closely in our
everyday life, in fact, for example, for deaerating inkjet cartridges, preventing rusty water from occurring
at a building or c ondominium, and so for th. Mr.
Suganuma, Technical Section, Chiba Plant, played therole of a lecturer. He explained the characteristics ofthe hollow fiber by taking a good example of printing
problem, which may occur when using an ink-jet
printer, together with a method to solve such problem.
Thereafter, by using the hollow fiber membrane, thestudents performed an experiment on eliminating the air
dissolved in the liquid.
H aving c ome into c ont ac t with the hollow f iber
membrane, which barely catches anyone’s attention
in everyday life, not only the students but also theirteachers were interested in it. This attempt turned out
to be quite significant for DIC as an educational CSR
activity.

A class on hollow fiber membrane experiments

Regional Clean-Up Activities and Others

The Environment,
Safety, Health andQuality
Our Business Models
Focused on Customer
Satisfaction

Human Resource
Management

To help preserve and beautify the regional environment,
the DIC Group has been conducting clean-up activities
in places such as neighboring roads in various regions.
At the plant in Konan City, Shiga Prefecture, employees
take part in clean-up day activities such as “Lake Biwa
Day” and “Environment Beautification Day” organized by
Shiga Prefecture every year. The Komaki Plant in Aichi
Prefecture positively engages in volunteer activities
such as “Oyama River Clean-up Activities.”
Moreover, part of the sports facilities in our plants areopen to local citizens, and festivals are held by inviting
local citizens for realizing a better relationship with local
communities.
Employees of the Shiga Plant engaged in a clean-up

Harmony with theCommunity andContribution to Society

Information
Disclosures of CSR
Employees of the Komaki Plant serving as clean-up volunteers

42

CSR REPORT 2010

Compliance

Report on Information Disclosures of CSR
Communications with Customers(Business Continuity Management)

BCM

Information
Security

We value communications with customers at the site ofproduct development, sales and after sales services.
At the same time, in order to help customers more fully
understand the wide variety of products DIC handles,
we present our products on our website and hold various
exhibitions. In FY 2009, we held a private show titled“Space Design Material Exhibition” (SDM Exhibition)in Tokyo and Osaka for customers in the building andbuilding materials industry and received comments fromvarious customers, including new customers, that they
have found a new aspect of DIC.

SDM Exhibition in OsakaJGAS2009 (Japan Graphic Arts Show), October 2009

Supply Chain
Management

The 16th ARCHITECTURE + CONSTRUCTION
MATERIALS, March 2010

We strive to make fair, appropriate and timely disclosureof information as a listed company, closely communicate
with shareholders and investors, and have their remarks
and requests reflected in the management.
For Institutional Investors

Our Business Models
Focused on Customer
Satisfaction

Human Resource
Management

For institutional investors and securities analysts inJapan, DIC held two operating results briefings and an
explanatory meeting on the medium-term management
plan. DIC’s president himself explained the contents andanswered questions in the Q&A session for the better
understanding. Moreover, DIC frequently participatedin IR conferences organized by securities firms, often
held small meetings and offered plant visits for closer
communications.
For institutional investors overseas, DIC took part infour IR conferences respectively held in Hong Kong,
Singapore, New York, and London for enhanced
communication.

The Environment,
Safety, Health andQuality

The DIC G roup Supply Chain C SR Deployment
Guidebook has been prepared and distributed to major
suppliers in order to share our concept to fulfill oursocial responsibility with the whole supply chain. The
guidebook helps strengthen our mutual relationshipthrough the self-check sheets, with which our suppliers
can grasp the state of their progress of CSR. Throughthe system DIC proposes improvements based on
the responses entered in the check sheets. In termsof green procurement, we require the manufacturers,
from whom we procure raw materials, to thoroughlymanage chemicals, adapt themselves to applicablelaws and regulations, and make efforts to reduce theenvironmental load of the entire products.

Communications with Shareholders and Investors

New Technology
Development andValue Creation

Communications with Suppliers

The Reliabilit y of
Financial Reporting

Major Exhibitions in Which DIC Participated

Harmony with theCommunity andContribution to Society

Information
Disclosures of CSR

The DIC Group Supply Chain CSR Deployment Guidebook with self-check sheets

43

Report on Information Disclosures of CSR / Materials

Compliance

For Individual Investors(Business Continuity Management)

BCM

Information
Security

We work to improve the DIC website for the provision of
information to individual investors. Various IR materials
are posted concurrently with the announcement to Stock
Exchanges and the news media. Audio recordings of theoperating results briefings have been made available on
the website since FY 2009.
Moreover, channels for information provision have been
expanded, including posting of articles in IR journals
and participation in events for individual investors suchas the “Tokyo Stock Exchange IR Festa 2010.”

The Reliabilit y of
Financial Reporting
Supply Chain
Management
New Technology
Development andValue Creation
The Environment,
Safety, Health andQuality

We conduct various activities to make DIC better known
to the general public.
A new section on the website has been set up with thetitle: “This is DIC.” Products and operations of DIC arepresented in a simple manner so that website visitors
find DIC accessible.
DIC also par ticipated in the "Japan Production &Packaging in Daily Life 2009,” which is an exhibition inwhich many general consumers take part, to present
DIC’s activities for ecology and universal design. There
DIC positively communicated with visitors to the booth
concerning future packaging.

DIC website
Audio recordings on the DIC website

WEB

http://www.dic.co.jp/en/

Tokyo Stock Exchange IR Festa 2010

Communications with the Local Community and Society
We promote the development of the “Site Report” toreport on the Responsible Care activities in our plants.
The report was developed in all domestic sites of DIC
in FY 2009. In respective plants, we offer plant visits for
local citizens.

"This is DIC" on the DIC website

Our Business Models
Focused on Customer
Satisfaction

Communications with Employees

Human Resource
Management
Harmony with theCommunity andContribution to Society

Information
Disclosures of CSR

44Communications with Students and General Public

Site reports of DIC plants

In DIC, Twenty-two town meetings were held in majordomestic sites and business operations, as a placefor direct communications between the president andemployees.
These meetings are for providing each employee with
an opportunity to think what he/she can do for his/hercompany so that DIC can make full use of the existing
management resources.
The town meeting reports are made available to every
employee in in-house newsletters etc. so that the
purpose and awareness will be shared. Proposed
opinions have been materialized as various measures
after review in the specialized section.

CSR REPORT 2010

DIC CSR Report 2010 Independent Review

DIC CSR Report 2009 Independent Review

45Materials/Data Compilation

Third-party Opinion

Eiichiro Adachi
Third-party Opinions

Chief Researcher
The Japan Research Institute, Ltd.
Responsible for providing financial institutions with corporate information to be
used for their socially responsible investment (SRI). Specialized in industrial/
corporate surveys conducted from the viewpoints of environmental management
and CSR. Involved in the publishing of “The 15th Corporate White Paper–
Market Evolution and CSR Management” as a member of the “Market Evolution
and Corporations in the 21st Century” working group organized for the KEIZAIDOYUKAI (Japan Association of Corporate Executives). Member of the ISO/SR
domestic committee under the Japanese Standards Association. Author of “AnIntroductory Guide for Environmental Management,” “Environmental Problems
Illustrated for Businesses,” etc.

Regarding the CSR activities conducted by the DIC Group,
my understanding of them, through reading of the DIC’s
report, from my standpoint as a specialist providing financial
institutions with corporate information to be used for theirsocially responsible investments, I would like to submit mythird-party opinions below.
The DIC Group’s effort in CSR activities was begun in FY
2007. Their activities were expanded under an acrossthe-group policy in FY 2008, and they started using selfcheck lists in FY 2009. It appears that a certain basic
framework has been formed. The stance of communicating
their objective management over 11 CSR subjects clearly
indicates a high degree of comprehensiveness. This stanceis appreciable. This report contains a table on the Targets
and Achievement of Major Approaches, where 11 subjects
are listed so that one can understand the progress of
individual subjects more easily. However, in order to avoid
getting trapped into rolling the predetermined subjects every
year in the future, it is vital for the DIC Group to develop their46

efforts into next stages.
Considering the current operation status of the DIC Group,
54% of whose sales come from overseas, and where therate of the employees working abroad has reached 69%, it
is undeniable that DIC (non-consolidated) or its domestic
group companies are disproportionately dominant in thecontents of the current report. If overseas group companies
are adopting their own management systems or any otherreasons exist, it is necessary to report on the major overseas
group companies in the form of site reports. Since thescope of this report is supposed to cover DIC and domestic/
overseas group companies subject to DIC’s consolidated
accounting, when reporting some examples for individual
efforts, it is recommended to clearly indicate those entities
that implemented such efforts.
Although the descriptions provided for the “Goals of theMedium-Term Management Plan” were precise enough,regrettably, I have to say that the rationale for working on
the CSR is rather vague. For most of their raw materials the
DIC group relies on petroleum resources, and business risks
arising from the uncertainty of petroleum supply in the future
seem to be large. I reasonably guess that the DIC Group is
faced with diversified problems due to the high rate of theemployees working abroad. I would like to see the results
obtained from the evaluation of “materiality” being sufficiently
explained and learn more about the basic approaches to betaken toward such problems.
In the area of specifics, I have noticed that the emissionof chemicals released into the environment by DIC itself isincreasing. Looking into this particular aspect, influences
given to biodiversity by the DIC Group can never be smallenough. The use of plant oils as raw materials is also
reported in this report. I would like to request the DIC Groupto embrace their efforts in conservation of biodiversity in the
future from the viewpoint of business activities.
Regarding the topics described in the Report on Supply
Chain Management, the preparation of rules and/or
guidebooks is not the objective, but rather whether or notsocial/environmental performances, including supply chain,
have been improved is the central issue. I would like toexpect the DIC Group to disclose more information from thisviewpoint.
I have read with utmost interest the report on the fact thatthe DIC Group is the world’s largest supplier of Spirulina.
I’m now urged to learn more about its possibility as a futurebusiness, apart from simply positioning it as part of social
contribution.
Please note that my comments mentioned here are notintended for expressing my conclusions as a complete
package of opinions covering whether or not the data
presented in this report are measured and computed inaccordance with those criteria generally accepted as fair
and appropriate, which are applied to the preparation ofenvironmental reports, and whether or not all the importantmatters are expressed, without omission, in the current
report.

CSR REPORT 2010

Data Compilation2009 Environmental Costs Detailed Data
Table 1 Environmental Costs (Investments and Expenses)
Category(Millions of yen)

Scope

Investments

Costs related to preserving air and water quality, or maintaining or improving
waste disposal and recycling activities

94

3,725

Cost of pollution prevention and global environment conservation

Cost of conservation of the environment, including the air andwater quality

41

1,936

Main items

Operating/maintenance expenses related to activities aimed at curbing air pollution (408), global
warming (549), water pollution (794), soil pollution prevention expenses (68) and otherexpenses Investments in air pollution prevention activities (12); water pollution prevention
activities (4.4); and other investments

Resource recycling costs

Costs related to energy conservation andinternal and external waste disposal

Main items

Operating/maintenance expenses for activities aimed at reducing energy and resource
consumption (432), water consumption (7.9) and waste disposal (867); expenses related to the
obligatory recycling of used merchandise (0.6), and other expenses Investments in activities
aimed at reducing energy consumption (42.3), waste disposal activities(3) and other investments

1.Costs incurred through activities aimed at minimizing theenvironmental impact generated within the business area throughproduction and sales activities (costs within the business area)

Breakdown

Expenses

52

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

Costs related to environmental and safety promotion and education;
environmental management and auditing related to acquisition of ISO 14001
certification

Main items

Environmental education expenses (4), personnel/administrative
expenses (253), ISO 14001 maintenance expenses (29), environmental
impact measurement and monitoring expenses (70) and other expenses

3.Environmental costs related to technological activities(technological activity costs) (Note 2)

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

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

Costs of plant and office greening programs and sponsorship money

Main items

Internal maintenance expenses (13), fees to externalorganizations (106), investment in greening programs (3) andother expenses

5.Costs related to damage inflicted on the environment(environmental damage costs)

Environmental clean-up and other expenses

Main items

Levies on lake development (74) [74] and other expenses

35%

1,789

(Note 1)

432

4%

213

6,397

59%

4

163
2%
74

313

10,792100%

Notes:
1. The investment portion of management activity costs is included in costs within the business area.
2. Technological activity costs are those related to the development of products that reduce the environmental impact and include the R&D costs of new products as well as improving/customizing
existing products*Scope of the data gathered for Tables 1, 2 and 4 are those of the domestic DIC Group companies and for Table 3 DIC only.
*The period covered is between April 1, 2009 and March 31, 2010.

Table 2 Economic Effects of Environmental Conservation Measures(Millions of yen)

Category

AmountIncome earned by waste recycling

86

Treatment cost reduction through waste recycling

519

Cost reduction through energy conservation

149

Total

Data Compilation

Total DIC Group (domestic)

0754

Table 3 Impact of Measures to Protect the Environment
Category

Environmental Load Indices1.Impact of environmental protection
measures within the business area

Base IndicesCO2 emissions (calculated in tons of carbon) per unit of production

FY 1990 (Base year) = 100

SOx emissions per unit of production

FY 1990 (Base year) = 10029

NOx emissions per unit of production

FY 1990 (Base year) = 100

115

COD emissions per unit of production

FY 1990 (Base year) = 100

59

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

FY 1990 (Base year) = 100

Emissions of solid wastes disposed of as landfill(of the FY 1990 level) (base year for plan)

0.7%

Target under DIC’s reduction plan(of the FY 1999 level) (base year for plan)

1.2%

Fees paid for waste disposed of as landfill (FY 2009 actual payment base)(of the FY 2008 level)

Emissions of PRTR chemicals (revised list)(of the FY 1999 level) (base year for plan)97

95

A reduction of 80 million yen
41% (Note 3)

2.Impact of upstream and downstream environmental protection measures CO 2 emissions realized as a result of modal
shifts were 1,616 tons more than would have been the case with truck transport. (Note 4)
Notes:
3. Figures represent emissions of PRTR chemicals based on a revised list of target chemicals that went into effect in FY 2001 and is retroactive to FY 1999.
4. Calculations are based on standards set forth by the Japan Federation of Freight Industries in its Report on Survey of Modal Shifts.A significantly greater reduction in CO 2 emissions was
realized through the use of large-scale transport modes in FY 2009.

2009 Safety- and Health-Related Costs Detailed Data
Table 4 Safety- and Health-Related Costs
Category(Millions of yen)

Safety and health management costs(Safety management costs)(External training participation costs; qualification acquisition costs)

Expenses % of Total

Investments
121

Safety- and health-related activity costs

378
(346)
(32)

35%

215

19%

Chemical substances safety data costs Fees paid to outside firms for safety data-related tests

ー

268

24%

Safety and fire prevention activity costs

22

251

23%

Total

143

1,112

100%

47

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