The DIC Group’s Corporate Social Responsibility ProgramWEB

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

The DIC Group launched its corporate social responsibility (CSR) program in the fiscal year ended March 31, 2008. In line with the DIC
WAY, an articulation of its basic management approach, DIC has identified fulfilling its responsibilities as a member of society through its
business activities and contributing to the evolution of society as the cornerstones of CSR.
The DIC Group strives to ensure a prompt and accurate grasp of evolving social imperatives, including global warming and the depletionof natural resources, and respond with solutions that deliver the value that its stakeholders expect continuously.

With the aim of ensuring that the DIC Group remains a trusted corporate citizen with a proud reputation
In December 2010, the Group became a participant in the United Nations Global Compact (UNGC). The Group also conducts
its business activities following to its Business Code of Conduct, also in a manner that is consistent with ISO 26000, which provides
businesses and organizations with global guidelines for operating in a socially responsible manner.

CSR Framework and Themes
To guide its efforts to promote CSR as an integral part of its business activities, DIC formulates annual Groupwide CSR policies. In
accordance with these policies, individual sales administrative divisions,product divisions, sites and domestic and overseas subsidiaries are

CSR Framework and Themes for
the Fiscal Year Ending March 31, 2013

charged with pursuing effective CSR programs by formulating their own
CSR policies and ensuring such policies permeate their organizations
and labor forces, as well as by linking their CSR policies to businesstargets.
As a framework for implementing its CSR program in the fiscal
year ending March 31, 2013,, DIC has developed 10 CSR themes andintroduced a system whereby these are categorized as basic themes,
including compliance and BCM; themes that demonstrate distinctive

Themes that demonstratedistinctive capabilities(A)
Themes that combine
elements of (A)and (B)
Basic
themes (B)Business models focused on customer satisfaction
New technology development and value creation
Harmony with the community and contributions to society
Communication with stakeholders
Environment, Safety, Health and Quality
Human resources management
Supply chain management
Compliance
BCM
Information security

capabilities, such as business models focused on societal issues; andthemes that combine elements of the previous two classifications, to promote with respective annual target of activities.

System for Promoting CSR
The DIC Group’s system for promoting CSR centers on the Corporate Social Responsibility Committee, which answers directly tothe president and CEO and is tasked with reporting on the status of CSR themes, as well as with proposing policies and programs foradvancing CSR and deliberating matters related to CSR as a vital component of corporate management. (The Sun Chemical Group has
an independent system for promoting CSR.)

Corporate Social
Responsibility Committee

Corporate
Communications Dept

President and CEO
Administrative divisions ( Sales, Technical, Manufacture)
Product divisions R＆D, Back-office sections,
Sites and DIC Group companies
CSR Themes◎ The Details of our CSR activities to be described in “Report on Our CSR Themes” of this report.

As of April 2013

initiatives related to the maintenance andimprovement of internal control systems

Board of Directors

CONTENTS

Outline of the Report
This report has been edited with the aim ofenabling readers toeasily understand the CSR initiatives of the DIC Group. The

The DIC Group’s CSR Program

outline firstcovers the corporate data, top message, and special

DIC Group, Globally Active and Expanding2

topics pages, followed by activity reportsby CSR theme.

DIC Top Message

4

Linkage with Website

Medium-Term Management Plan (2013-2015)

6

The WEB mark (In line with the slogan of DIC 105—“Step Beyond”,
we describe Basic Policy and Central Strategies) is indicated where detailed informationWEBor data is available on the website.
DIC website

WEB

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

8

DIC Products - Contributing to the society in a varietyof scenes through our social living

Scope of the Report
DIC and domestic/overseas consolidated group companies are the scopeof this report. However, please refer to the below link for the scope of thereport on the “Environment, Safety, Health, and Quality.”
WEB

Special Topics

http://www.dic-global.com/en/csr/pdf/dic_csr_scope_ja_2013.pdf

Reporting Period
For target domestic companies:
April 1, 2012 to March 31, 2013(FY 2012)
For target overseas companies:
January 1, 2012 to December 31, 2012 (FY 2012)(Some FY 2013 topics are covered here)

IssuedSeptember, 2013 (the next repor t will be issued in July, 2014)

Reference Guidelines
I SO26000 : 2010 / Responsible Care Code

About the cover design
The DIC Group hopes to respondto social issues and demands in a
global and speedy manner. We haveused the illustration to express how
the CSR activities, which we havecontinually promoted, bloom andspread in the 2013 CSR Report.
We will develop the story of colorfulflowers (CSR activities), which arecarried by the bird (DIC Group), for“colors” and “comfort.”*This repor t utilizes a color scheme
informed by universal design, which is afocus of DIC Group efforts, to give it aneasy-to-read design.

Topics12

Topics 1 Sun Chemical reports : PantoneLIVE
Supporting the Development of a New Technology
Topics 2 DIC Digital Color Guide worldwide

Targets & Achievement of Major Activities(CSR) 14
Targets & Achievement of Major Activities(RC)16

Corporate Governance18

Report on Our CSR Themes
Compliance19

BCM(Business Continuity Management)

20

Information Security

21

Environment, Safety, Health, and Quality

22

Human Resource Management31

Supply Chain Management

34

Business Models to Improve Societal Issues

35

New Technology Development and Value Creation

36

Harmony with the Community and Contribution to Society

38

Communication with Stakeholders

41

ISO26000 Comparison Table

43

Third Party Opinion

44

Introdudction of communication tools
with our stakeholders

45

1

DIC Group, Globally Active and Expanding

Network

DIC Corporation, one of the world’s leading diversified chemicals companies, is also
the core of the DIC Group, a multinational organization with a network comprising 183
companies in 62 countries and territories worldwide.

EuropeSun Chemical Group and other companies

156.8 billion yen
5.8 billion yen

Net saleOperating income

Asia and Oceania

DIC (CHINA), DIC Asia Pacific and other companies

115.9 billion yen
8.2 billion yen

Net saleOperating income

Corporate Data As of March 31, 2013
Registered name:

DIC Corporation

Paid-in capital:

91.2 billion yen

Corporate
headquarters:

WATERRAS TOWER, 101, Kanda Awajicho
2-chome, Chiyoda-ku, Tokyo 101-0063,Japan

Number of employees:

3,426(non-consolidated), 20,273 (consolidated)

Domestic operations:

183 [domestic: 35, overseas: 148]

Date of foundation:

February 15, 1908

Date of incorporation:

March 15, 1937

Business Performance Highlights’11’12（Fiscal year）

’08

’09

’10

’11

’12（Fiscal year）

0

693.0

38.5

37.2
’10

675.1

’09

703.8

’08

200

749.9

’12（Fiscal year）

0

400

19.1

’11

5

18.2

’10

10

15.8

’09

600

15

2.5

’08

0

800

20

2.6

0

10

’08

’09

’10

’11

’12（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 and Exchange Act. In FY 2012, DIC had 152 consolidated subsidiaries and 31 affiliates.

2

Network(billions of yen)

1,000

25

35.0

200

20

Total Assets(billions of yen)

30

27.8

400

703.8

30

734.3

600

779.0

40

757.8

50

800

932.3

1,000

Net Income(billions of yen)

738.5

Operating Income(billions of yen)

25.4

Net SalesMain countries:
American countries the United States, Canada, Mexico, Brazil, etc.
European countries Germany, the United Kingdom, the Netherlands, France, etc.
Asian and Oceanian countries China, Thailand, Malaysia, India, Australia, etc.
The sum of the operating incomes by region on page 3 below does
not correspond to that of the operating incomes of all the companies,
as the former includes the canceled amount (¥4.3 billion)

Americas

Sun Chemical Group and other companies

107.0 billion yen
2.2 billion yen

Net saleOperating income

Japan

DIC, DIC Graphics and other companies

Net saleOperating income

324.1 billion yen
26.6 billion yen

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 four operations:Operations
Printing Inks

Polymers

Printing inks, printing supplies

Synthetic resins for inks and painting, molding, adhesive and fiber
processing, modifiers, fluorochemicals

Fine chemicals

Application Materials

Organic pigments,liquid crystal materials,
alkylphenols, metalcarboxylates, sulphur chemicals

Inkjet inks, PPS compounds, high performance compounds, plastic colorants,
coextruded multilayer films, plastic molded products, pressure sensitive adhesivematerials, building materials, hollow-fiber membrane products, health foods

Breakdown of Sales by Region

Breakdown of Sales by Segment
Application
Materials

othersAsia/Oceania

0.2%

14.6%

16.5%

Total

Polymers

21.1%

Fine Chemicals

13.5%

703.8

billion yen

Americas15.2%

Printing Inks

50.6%

Total

703.8

billion yen

Japan

46.0%

Europe22.3%

Network3

A Message
from thePresident

The DIC Group, ensuring it remains
an entity capable of responding toevolving social imperatives.

Yoshiyuki Nakanishi
Representative Director, President and CEO
DIC Corporation

Achievements Under DIC 102
The DIC Group changed significantly under DIC 102. Obvious
examples of this include the rapid growth of promising new
businesses, notably thin-film transistor liquid crystals (TFT LCs),
pigments for color filters and polyphenylene sulfide (PPS) products.
This is evidence of the superb basic technologies we haveaccumulated as a manufacturer of fine chemicals, which enable us
to address key challenges faced by society today, including the needto curtail energy and resource consumption and reduce costs.

4

A Message from the President

To ensure the timely development of such advanced products
and technologies, we realigned our organization to promote
communication among technical personnel and created a crossbusiness framework that allows unrestricted access to technicalfacilities and equipment.
With the aim of creating a solid foundation that will support
sustainable growth, we also focused on rationalizing production andimproving our financial health. As a consequence, we are seeing
a steady increase in awareness of profitability as a yardstick ofperformance.

Reinforcing Responsible Care Initiatives to
Ensure Social Responsibility
As a manufacturer of fine chemicals, we have a basic duty toensure social responsibility in everything we do. Accordingly, we
recognize Responsible Care—which encompasses activities carriedout by companies to protect the environment, safety and health (ESH)and enhance product quality—as a basic management precept.
Every year, we conduct Responsible Care inspections of DIC
sites throughout Japan in the form of top management audits, which
include participation by the president of DIC. Group companies inJapan conduct reciprocal site audits with the purpose of improving
safety levels. In fiscal year 2012, we launched a Groupwide handson safety training program designed to heighten employees’ ability
to recognize danger. More than 3,700 DIC Group employees
participated in the program, which contributed to a significant
reduction in the number of occupational accidents, both those that
resulted in work days lost and those that did not, compared with theprevious period. I also took part in the program, and reconfirmed mybelief in its importance.

Promoting CSR on a Global Scale
We recognize that ensuring CSR remains an integral aspect ofmanagement requires the promotion related initiatives on a global
scale. We have developed an effective system in Japan and havemade discernable advances with a variety of themes, from basic tothose that demonstrate our distinctive capabilities. We, however, arereally just beginning to attend to the challenge of creating a global
CSR program that encompasses overseas Group companies.
In 2010, we became a participant in the United Nations Global
Compact (UNGC), underscoring our commitment as a leadinginternational manufacturer of fine chemicals to helping realize
sustainable global growth.
In line with this recognition, in fiscal year 2012 we revised
our Basic Policy on Internal Control. We also introduced selfassessment procedures for overseas Group company directors that

Top management audit, Chiba Plant (October 2012)

conform to the relevant local laws and regulations.
In fiscal year 2013, we will revamp and condense The DIC WAY
Code of Business Conduct, which forms the foundation of our CSR
program, as well as translate into multiple languages to ensurethat it can be accessed and understood by DIC Group employees
around the world. We will also step up efforts to promote Groupwide
acceptance of the code with the purpose of raising awareness ofcompliance.
Additionally, having recognized the overhaul of our personnel
system as an undertaking crucial to future growth for the DIC Group,
we will shift the focus of our efforts to optimize human resourcesfrom regional to global. To this end, we will clarify all aspects of thesystem—including individuals, placements and remuneration—in line with the concept of mieruka (a Japanese term that means
to elucidate something or render it clearly visible). We will alsoestablish a unified framework to ensure the fairness and consistencyof performance evaluations worldwide and establish a multifaceted
program aimed at fostering new generations of employees withleadership capabilities.

Embarking on DIC105
Our new medium-term management plan, DIC105, will guideour efforts from fiscal year 2013 through to fiscal year 2015, the firstphase of a longer-term initiative that sets clear, concrete objectives
for fiscal year 2018. As conveyed by its slogan, “Step Beyond,” theplan’s basic goal is to identify and promote the concentration ofmanagement resources in key business domains.
By implementing the strategies outlined in DIC105, we willcontinue working to offer distinctive products that provide corevalue to our customers, as well as to end users, thereby ensuring
we remain a corporate entity capable of responding effectively to
evolving social imperatives and contributing to environmental andsocial sustainability.

Ceremony to celebrate the completion of a new PPS compound production facility in Vienna,
Austria (April 2013)

A Message from the President5Color and Comfort by Chemistry – our Management Vision, shows the direction of the DIC Group’s solutions tothe societal issues, which are more and more complicated and diversiﬁed in global market. We will continuously
challenge, to offer the best solutions.

Medium-Term
Management
Plan

Medium-Term Management Plan
Basic Policy and Central Strategies of DIC105

Our new medium-term management plan, DIC 105, will guide our efforts for the three years through to fiscal year 2015—the first phaseof a longer-term initiative that sets clear, concrete objectives for fiscal year 2018. In line with the slogan of DIC 105—“Step Beyond”—we willconcentrate our allocation of management resources in business domains that will enable us to establish a new course for the future.
Growth image
Nest-generation businesses

Restructure printing inks businesses in North America and Europe
Implement decisive rationalization measures, emphasizing the
optimization of production capabilities, with the aim of strengthening
ensuring their continued viability as core businesses

Focus management resources in three key forward-looking

Application Materials(PPS etc)

Printing Ink(package ink)

Create next-generation businesses

Printing Ink(publia

Combine our renowned organic chemical technologies and6

Medium-Term Management Planhing ink)

Polymers

inorganic materials to create new value (key concept: HYBRIDCHEMICALS)

Businesses with stable earnings basis

businesses: TFT LCs, pigments for color filters and PPS products

Fine Chemicals(pigments, LC materials)

operating income

Expand businesses that will drive growthBusiness driving force

our printing inks businesses in North America and Europe and

2012

2015

2018

Concentrate Management Resources in Key Business Domains

DIC’s key business domains

Combination of “Target markets”, “Core products”, and “Basic technologies”
Target markets**Core products***

Markets with sustained growth potential in which
DIC can maintain a competitive advantage

Products that provide “core value”

Advanced
technologies

Displays

Core value

Electronics(Color development, brightness, adhesion, lighter weight)

EnergyLiquid inks

Basic technologies
Technologies that impart value-creating
advantages

Optics and color

Optronics materials
Living environments
Life and living

Coating

Polymer design

Surface protection materials

Infrastructure building

Packaging andgraphics

Organic molecular design

Adhesive materials

Dispersion

High-performance composites

Applicability assessment(Coating/printing/molding)

Packaging materials

Packaging

Sensory materials

Digital printing*
Core Value: Value that appeals to consumers and brand owners.
** Target Markets: See Supplementary Information (page 28). WEB http://www.dic-global.com/en/ir/pdf/dic_ir_plan.pdf*** Core Products: Differ from DIC’s segment breakdown and based on Core Value delivered to users. For more information, see Supplementary Information (page 30).

WEB

http://www.dic-global.com/en/ir/pdf/dic_ir_plan.pdf

Three businesses that will drive growth by enabling DIC to offer
distinctive products that provide core value

TFT-LCs

Pigments for Color Filters

TFT-LCs are used in TFT LCDs, the dominant
format for LCDs today. Production of TFT LCs
demands sophisticated expertise in molecular
design, synthesis and mixing, as well as in theremoval of minute impurities. Since entering the
TFT LC market in 2007, DIC has taken active steps
to achieve performance improvements, enabling
it to develop a steady stream of new productsthat satisfy its customers’ needs for higher
brightness, faster response times and greater
long-term reliability. DIC supplies TFT LCs to
television manufacturers around the world seeking
to offer devices that deliver both lower energy
requirements and outstanding picture quality.

The picture quality of an LCD television
is influenced by the properties of thepigments used in the color filter. Givensignificant improvements in the energy
efficiency, slimness and resolution of
LCD televisions, manufacturers demand
pigments that deliver higher brightness
and clarity with less light. Leveraging its
advanced organic pigment synthesizing
technologies, DIC developed a green
p i g m e n t t h a t a c h i ev e s a d r a m a t i cincrease in contrast, thus reducing energy
consumption and achieving excellent
brightness and clarity.

Expand businesses that will drive growth

PPS Products(Engineering Plastic)

W ith making automobiles lighter isessential to improving fuel efficiency,
engineering plastics offer an attractive
alternative to metal materials. Valued
for its superior heat, shock and impact
resistance, shock, which ensure a superb
performance under extreme conditions,
PPS polymer manufactured by DIC is used
extensively in components for automotiveengines. Thanks to the unique properties
of PPS, applications are also expanding toinclude drive, fuel and cooling systems.

Medium-Term Management Plan

7

Special
TopicsDIC Products - Contributing to the society ina variety of scenes through our social living
Shipping, information, housing, food products—there are number of problems that need solving in the industrial fields that support our daily
lifestyles. Through creative development of new products, the DIC Group is contributing to solutions for such problems while generating new value.

We must save and efficiently utilize energy in order toutilize the limited resources for a long time.
Reduction of greenhouse gas (mainly CO 2)
emissions is urgently needed in order to prevent
global warming, which is the main cause forclimate changeManagement and reduction of toxic
chemical substances that may affecthuman health and ecologies are
duties of a company

CO 2
reduction

Resource
Conservation

There are a number of materials aroundus that we would like to further improvein order for more people to havecomfortable lives

Countermeasure to digital divide, or requirementof high-speed products development due to thetendency of shortening product life cycle, arerequested in our business scene

8

Special Topics

Energyconservation

Social issues

ComfortLife

Establishment of a ‘Reduce’, ‘Re-use’, and‘Recycling’ society is required in order to reducethe issues of resource outage and wastes.
3R

Aging Society

Safety/reliability
Highly informed
Society

There are many obstacles that should
be removed in order to preventsocially vulnerable people fromfeeling inconvenience.

High level safety is required in materials
surrounding accessible tools and food inorder to use them with reliability.

Human Rights

Respect for Human Rights is strictly requested in ourbusiness activities globally.

Inks/adhesives for food packaging

We want to use them with security
because we need them in our lives.
Social issue:

Achieving both safety and printing quality in food packaging“Laminate processing,” in which we bond plastic film/aluminum foil/

Reducing the amount of solvent and solvent-less process are being

paper, etc., protects food from shock/humidity/oxygen/light/pollution etc.

promoted, while strictly conformed with laws and regulations *1.

to keep it safe and healthy while enables long-term storage. In order

Furthermore, reduction of volatile organic compounds (VOC), has also

to enhance the functionality, films are made in multi layers depending

become an issue to improve the operation environment.

on the characteristics, such as snacks, beverages, or retort pouch
food. Meanwhile, packaging inks play the role of conveying necessary

The solvent residue is also highly recommended to reduce, as
finished product.

information and enhancing product values with beautiful images.
For the packaging material, the method to dilute inks andadhesives with solvent is the main method in the processing step.

DIC‘sinitiative*1: Food Sanitation Act/voluntary standards in the industry (Japan), regulations in Europe(Swiss
Ordinance), Food and Drug Administration (FDA) regulations, and China national standards
GB9685, etc.

Development of next generation inks/adhesives withless solvent residue, and reducing VOC and CO 2

Resource
Conservation

Safety/reliability

CO 2
reduction

DIC focuses on the development of inks/adhesives. The newly developed gravure ink “FINART,” toluene-free and methyl ethylketone (MEK) *2 free typeink, especially responds to the food packaging regulations in Europe (Swiss Ordinance). Furthermore, it also secures high printing quality with small amountof solvent, enabling VOC and CO2 reduction in the printing process.
DIC also focuses on the development of “super high solid type,” adhesives with which solvent is reduced by 70%
by increasing the solid content in laminating process, and “solvent-free type” adhesives. Those activities enable DIC topromote the promising products with the best balance of performance and cost.
We assure that DIC Group has established internal development systems in all aspects of pigments, and synthetic
resins (including adhesives). Therefore, we are in a position to fully respond to various market needs, such asenvironment friendly and high performance, etc., in various regions, including Japan, Asia, Europe, and the U.S.
*2: Organic solvents that may cause symptoms of poisoning when inhaled over a long period or a large amount.

Solvent residue- 68.2%

VOC emissions

Printing -24%
Laminate -71%

CO2 emissions-20.6%

Impact reduction with the next generation ink "FINART"+ high solid type adhesive (LE-S1000)

Global standard of gravure inks

VOICE

Laws and regulations worldwide for food

Proposing highly performance laminate adhesives

packaging and inks has become strict more andLaminate adhesives are roughly categorized

more in recent years, shifting from “negative list

into; organic solvent type (conventional type/highregulations”(NL) to “positive list regulations”(PL). DIC

solid type), solvent-free type, and water-based type.

quickly responded to such movements, reviewed

DIC focuses on super high solid type and solvent-product designing from raw material source, andfree type of adhesives as we prioritize the reduction

took on the challenge of developing toluene-free and methyl ethylketone-freeof solvent, VOC and waste liquid, with our basic performance of adhesives. We

products. “FINART,” is a product that provide the beautiful package and highalso take initiatives of simplifying package composition by replacing the films

ink performance with safety.

with adhesives having gas barrier function, etc. We will be eagerly working on
highly composite products, based on our elemental technologies on a global
scale, to contribute to the sustainable growth in the market.

Dispersion Technical Group 1 Dispersion Technical Department 1 Manager

Yoshihisa Shirasaki

Dispersion Technical Group 2 Dispersion Technical Department 1 Manager

Shigekazu Takahashi

Special Topics

9

FRP sheet pile for construction

Faster and safer sewer construction that
supports our living environment
Reduction of construction period and improvement of safety for city tunnels

Social issue:

Sewers are an important infrastructure that supports our comfortableliving environment. However, in cities where buildings are built closely
together with a lot of traffic, it is difficult to construct tunnels (sewer pipes
and public utility conduit) by opening and cutting streets. Therefore, “shield
construction method”, with excavators (shield machines) by shafting andexcavating underground to create tunnels, rapidly becomes popular inrecent years.
However, shafting requires (1) Pressure insertion of sheet pile (steel)around the tunnel to prevent soil from collapsing and groundwater

seeping through, (2) Improvement of the ground by injecting cement milkin order to stabilize the surrounding
ground, and (3) “Ground breaking
process”, with which they cut thesteel sheet pile with a burner to run
the shield machine. Such method
takes time and efforts, and theground breaking process involves
safety-related risks.

Reduction of ground improvement and ground breaking
work with the newly developed “carbon FRP sheet pile”

DIC’s
initiative

Newly developed “carbon FRP sheet pile”(longth 6m, thickness2.3cm)

Safety/reliability

DIC has been providing FRP (Fiber Reinforced Plastics) bathtubs andpile” with the same level of strength as steel sheet pile by layering carbon fibers

Jack

Shield machine

and glass fibers and impregnating/curing resin.

Shaftingwith the Zenitaka Corporation, DIC succeeded in developing “carbon FRP sheet

Destination shaft

such as FRP sheet pile for temporary construction, etc. In 2012, in cooperation

3R

Under
construction

artificial marble kitchen counters, which utilize sophisticated resin processing
technologies. We also have manufacturing experience of construction material,

Energyconservation

Segment
Concept image of the shield construction method

By incorporating such sheet pile into shafting, we no longer need theimprovement of the ground by injecting cement milk or the process to manually cut sheet pile. Shield machines can excavate tunnels by directly cutting
through FRP sheet pile. It improves work safety, significant reduction of both construction period and resource conservation.

from DIC staff
Traditional method

FRP sheet pile construction method

Steel sheet pile

Steel sheet pile

Unique molding method was established after trial and error
DIC used to manufacture FRP sheet pile for

FRP sheet pile
Ground improvement

ShieldmachineVOICE

shallow ground constructions, but the sheet pile

Entrancethat support the shafting in the shield construction
Shieldmachinemethod require a whole different size, shape andlevel of the strength/durability. After repeatedexperiments, we finally developed a molded productthat satisfies the performance requirements by layering fabric-like carbon fibers
and glass fibers within an mold using Resin Transfer Method. I think that thisdevelopment is the result of full utilization of DIC’s comprehensive knowledge
and technologies from designing to resin processing/manufacturing.

Traditional construction method and FRP sheet pile construction method

10

Special Topics

Polymer Processing Technical Group 6 Polymer Processing Technical Department Manager

Michinari Kanemoto

Epoxy resins/curing agents for electronic substrate

Even convenient tools that support the informationsociety must be considerate to the environment.
Electronic materials that produce less environmental impact in the disposal process

Social issue:

Smar tphones or PCs, are composed of many electronic

been used for the substrate materials in order to prevent fire fromcomponents, and most of them are recycled. However, inappropriately

heating in high density circuits, etc. However, dioxin production

burying or incinerating sometimes produce harmful substances.

is a concern when halogen is burnt in disposal, and, halogen-free

Regulations have been stipulated for contained substances.

substrate materials
which can secure
the flame retardant

free.” However, lead-free solder is installed at a higher temperature,p r o p e r t y, a r ewhich means high heat resistance is required in the substraterequired recently.

materials (epoxy resins).

Electronic circuit

Encapsulant
Printedsubstrate
Motherboard

High heat
resistance

Required properties

On the other hand, as flame retardant, halogen composites had

DIC’sinitiative

Lead-free solder(welded at hightemperature)

Flame retardancy(halogen-free)

Development of environmentally-conscious high-functioning epoxy resins andHighly informed
curing agents that achieve high heat resistance and ﬂame retardancy
Society

Epoxy resins are thermoset synthetic resins that are highly reactive. They cure when mixed with curing
agents. Combining resins and curing agents achieves properties, such as exceptional molding property, heat
resistance, and electrical insulating property, etc. DIC provides a wide variety of products in the electronic
The “high heat resistance,” for lead-free solder, and “high flame retardancy,” for halogen-free materials,
are opposite characteristics; therefore, simultaneously achieving both was not easy. DIC resolved this issue
by their vertical integration system in which the process from the molecular designing of raw material until
manufacturing of epoxy resin, within the same plant. Furthermore, we also achieved controlling of the thermal
expansion rate and the property of preventing “warpage of substrate,” which can cause insulation failure.

from DIC staff

Synthetically make the raw material
phenol resin react to create resins withvarious properties
CH 2

material field as Japan’s largest epoxy resin manufacturer.

Epoxy resin

Recently, semiconductor packages manufacturers are replacing“solder,” used to fix electronic components on substrate, with “lead-

OH
CH 2

Phenol resin

Epoxy resin

Resource
Conservation

OH
CH 2

R

Epoxy acrylate
resin・Resist ink
・Ultraviolet curing resin

・Epoxy resin
・Epoxy derivative raw material

・Epoxy resin raw material
・Curing agents (encapsulant/laminate)

DIC’s vertical integration system epoxy resin business

VOICE

Development for the optimal organic materials required inthermal management

Creating new substances without being entrenched withexisting concepts/methods

DIC’s knowledge/technologies gained in the course ofdeveloping the resins/curing agents that simultaneously
achieve high heat resistance and flame retardation property,
can be applied also to “thermoplastic resins (PPS, ABS resins,etc.). They are used in, such as chassis of PCs, and TVs, orcomponents installed in automobiles, etc. Power semiconductors
are especially starting to lean toward high output in components
installed in automobiles, and further heat resistance and flame retardation property are requiredin peripheral components. We will provide the optimal organic materials for thermal management
area and take a part of the automobile society with less environmental impact.

DIC was able to realize original high–performance
epoxy resins and curing agents as we have neverstopped taking on challenges with the aim ofachieving new properties. For example, we spent over
10 years developing/cultivating the “phosphorus-unit
introduction technology”*1 and the “active ester curingsystem,”* 2 etc. in order to commercialize materials
with dielectric properties, with which electricity is not easily accumulated. Whilethe explosive growth of smartphones has been unimaginable at the time, epoxy
resins with great dielectric properties are absolute necessity now.

Polymer Technical Group 5 Polymer Technical Div. 1 Manager Kazuro Arita

Polymer Technical Group 5 Polymer Technical Div. 1 Koji Hayashi*1*2

Phosphorus-unit introduction technology: Technology that incorporates phosphorous compound with a great flame retardation property into resin chemical structure via chemical synthesis
Active ester curing system: "Active ester" is the general name for special epoxy resin curing agent, which prevents hydroxyl from forming by using the transfer reaction of ester group in the curing behavior withepoxy resin. Cured product will have a dielectric property, which prevents electricity from accumulating. This technology was proposed by Tadatomi Nishikubo in the 1990s, and DIC has provided the durability thatcan withstand the use as electrical insulating materials with its original technology.

Special Topics

11

1

TopicsSupporting the Development of a New Technology to Facilitate
Precise Brand Color Reproduction and Management Worldwide

Sun Chemical Corporation has played a crucial role in a project aimed at ensuring a consistent global image for one of Heinz’s mainbrands. Sun Chemical is the preferred partner of PantoneLIVE, a cloud based digital color management platform. It is designed toremove key brand color variation and utilizes Sun Chemical patented technology for harmonizing brand color.

Brand color variations arising from regional disparities and packaging differences
Brand color variations arising from regional disparities and packaging
differences H.J. Heinz Company, a leading global manufacturer of foodproducts, had a problem with the brand color for Heinz Beanz tinned
baked beans. Perception disparities in different countries and territories
and the diversification of packaging formats had led to significant variation.
Factors contributing to this problem include a type of packaging and abroad range of printing methods. Additionally, different printing companies
in each territory, making it both time-consuming and costly for Heinz staff
to manage colors. Heinz recognized that needed to be resolved swiftly.
Heinz tasked its brand lifecycle management partner, Sun Branding
Solutions Ltd, UK to set up a project team to develop a practical solution.
The team’s brief was to ensure color consistency for Heinz Beanz Blue
across all packaging substrates and printing methods by creating asolution that would:
1 facilitate color consistency, anywhere in the world,
2 reduce costs by facilitating web distribution and ensuring accurate digital standards, and3 shortening of development times for new packaging.

The team began by scientifically quantifying color variations to set color
standards and color tolerances for Heinz Beanz Blue. The next step was toproduce proofs and physical samples for each type of packaging. Exclusive
digital standards for reproducing the color on each type of packaging werethen created based on paper, film and ink data sourced directly from thePantoneLIVE. Sun Branding Solutions verified results at all stages using visualand spectrophotometer readings.

Sharing and maintaining global digital standards in the cloud
In August 2011, the digital standards were uploaded into PantoneLIVE,making it possible for printing companies and other vendors worldwide
to access relevant specifications from this cloud-based platform, thereby
realizing a technology that ensures the consistent reproduction of Heinz
Beanz Blue across all substrates and printing methods.
A Sun Chemical sur vey revealed that color variation acrossthe different types of packaging used for Heinz Beanz had fallen to
approximately 1/6, which means these variations are imperceptible to thehuman eye. The need for Heinz staff to check packaging has decreased
significantly, yielding cost and time savings.
Color variation across Heinz Beans Blue packaging formats has been greatly reduced

Sharing and maintaining global digital standards in the cloud
Sun Branding Solutions was able to trial an early beta release of
PantoneLIVE, with support from Sun Chemical. The team ensured color control
over the entire design, artwork and prepress process, as well as with stresstesting the new PantoneLIVE digital brand color management technology.

Can labels(paper)Shrinkwrap (Film)

Snap Pots(Paperboard)

Digital Brand Color Management Technology

1

2

Set standards fordesignated

Produce physicalsamples3
Create digitalstandards

4

5

Upload standards
to color service

Implement standards

Verification at all stages

from Sun Chemical staff

VOICE

We are proud to have assisted Heinz in finding a solution to this problem.
We played a critical role in the project team and accomplished the challenge set by Heinz, utilizing
PantoneLIVE. The members of the Sun Chemical contingent rallied their collective scientific and specialized
technological expertise to analyze vast amounts of data and to verify results at every stage. This experience
served as a reminder of how difficult it is for global corporations to manage a consistent global brandimage. I have no doubt there are many firms facing similar problems that we can help. With Sun Chemical’s
PantoneLIVE Preferred Partner status, we can reinforce our capabilities, broaden our network and lookforward to assisting more companies in the development of solutions for ensuring brand color consistency.

12

TOPICS

Patrice Aurenty

Business Leader
Color Management
Sun Chemical Corporation

Topics2

Downloaded worldwide
for the convenience of digital guide (As of May 31, 2013)

DIC digitalized the COLOR GUIDE in October, 2010, and started releasing it as a free application for smartphones (iPhone by Apple).
Since then, we have been expanding the users while enhancing compatible OS and contents.

Digital tool that excels in portability and search function

COMMENT

Digital devices have become popular

Customer’s voice

more and more, and DIC released the Digital
COLOR GUIDE application for smartphones,

Unlimited colors at handwith the established method to freely searchfrom 2,230 colors on LC screens.
“DIC Digital COLOR GUIDE”, provided

Colors and materials are important elements in productas a “free application” since October, 2010,

designing. I am in charge of the development to highlight their
DIC Digital COLOR GUIDE

attractions and introduction to products. I often research shows anddownload despite the fact that it came with the search function and an abundance ofmarkets, and in such cases I need to accurately record the colors

database fully utilizing digital technologies. Behind this was DIC’s wish to “enable moreor textures confirmed in the field. The “Digital COLOR GUIDE”

people to casually use this as a convenient platform to accurately communicate colors

enables me to quickly and conveniently record close colors on myto experience the richness and joy of colors.”

smartphone and to confirm them on the screen. While the traditionalsurprised people, since anyone can freely

paper chips may be more effective in view of color accuracy, thisMain basic functions

application enabled me to research more conveniently. In addition,1) Displays in ink compositions (CMYK), 3 primary color ratio (RGB) of

I have the sense of security and joy, with an abundance of colors atlight to reproduce colors on computers, and “Munsell values,” which
is a color standard utilized in Europe, the U.S., and the JapaneseIndustrial Standards (JIS)2) Japanese/English/Chinese switchable display

hand. One of the advantages is that it also enables me to learn the
background, history, and name of colors. Though there are someissues still, I really anticipate future development of this application.

3) Simulates characteristics of and difference in colors depending on theprinted material (poster board/PET sheet/metal/film, etc.) in images“DIC Digital COLOR GUIDE” was downloaded worldwide, startingSony Corporation
UX & Product Strategy Group
Creative Center
Product Design Managing GroupCMF Design Team
Senior Producer

immediately after its release, and received high acclaim in a wide
variety of areas. In order to respond to more varied OS environments,
we released the iPad version in May, 2011, and the Android version in
November for tablet terminals. Furthermore, we began releasing theMr. Hajime Ogura

Macintosh version, in which color accuracy and simulation functions wereenhanced, for designers etc., in July, 2013.
*1 iPhone (iPod touch), iPad, and Macintosh are product names by Apple.
*2 Android is a platform for mobile terminals released by Google in 2007.

DIC Digital COLOR GUIDEWEB

http://www.dic-graphics.co.jp/products/dcguide/ipad.html

from DIC staff

VOICE

Unlimited uses! This is an “entrance to browse color database.”
The use of the “Digital COLOR GUIDE” truly differs for each person. In order to reproduce colors on LC screens, it isnecessary to fine tune color conversion software to match the characteristics of each model by different manufacturers,
whether it’s a smartphone or a PC monitor. This requires a massive amount of work. However, knowing that the COLORGUIDE is being utilized in countries and places where we can’t even imagine makes us forget the troubles.
What is important is the positioning that the COLOR GUIDE is an entrance to browse the color database. We hope

Dispersion Technical
Department 1
Dispersion TechnicalGroup 1 Manager

to continue enhancing the quality and volume of the infrastructure so-called database by fully utilizing the technologies Yasuhiro Moriharathat are unique to our company, which has extensive knowledge about colors.

TOPICS

13

Targets and Achievements of Major CSR Activities* The “Evaluation” column is based on self-evaluations of current progress. Evaluation marks: ★★★ …Excellent ★★…Satisfactory ★ …Needs WorkCSR Theme /Objective

Compliance / fairandtransparent
corporate activities

Business continuity
management(BCM) / limit
disaster risk

Objective/Task

Reference Page

FY 2012 Goals

Raise awareness of compliance

P19

Revise the contents of the “2008 edition of the DIC
WAY Code of Business Conduct” and finalize thecontents of the 2013 edition

Conduct business fairly

P19

Complete easy-to-understand e-learning materials
and provide e-learning education for employees
involved in subcontracting deals
・Continue examining substitutability of main product
BCP
・Complete establishment of BCP at domestic andoverseas subsidiaries

Ensure DIC Group business
continuity

P20

Conduct Task Force training to prepare for disasters
and consider measures to improve effectivenessfurtherWork together to organize the management system
and implement measures to respond to various risks

Measures towardachieving andensuring information
security

Human resource
management /striving to improve
job satisfaction

Supply chain
management /global expansion
of CSR procurement

Businessdevelopment ofsocial issues /establishing“solutions businesses”
New technology
development
and value creation /proposing solutions
that leveragecomponent
technologies

14

Establish a global information
security framework

P21

・Introduce an internal auditing system to strengthen the information security framework further
・Firmly establish a security management framework in domestic and overseas Group companies
・Introduce a new system that is compatible with smartphones and other new devices

Train and appoint national staff toadvance global management

P31

Concerning organization of national staff HR
systems led by DIC Asia Pacific at overseas
subsidiaries, reorganize two Indonesian companies

Support staff diversity and diversity
in working styles through working
women promotion activities

P31(1) Increase the number of female employees hiredand (2) continue to increase roles for women in theworkplace (sales and manufacturing positions)Support staff diversity and diversity
in working styles by promoting
employment of disabled persons

P32

Further promote employment of disabled persons in
response to the increase in the legally stipulated
disabled employment rate from FY 2013 onward(1.8%→2.0%)

Create base for fair purchasing
practices

P34

Provide explanations of CSR procurement at
subsidiaries in the Southeast Asia region

Promote CSR procurement

P34

Update the DIC Group Supply-Chain CSR
Promotion Guidebook

Promote solutions businesses
adapted to changes in social
imperatives

P35

・Creation of solutions businesses
Select specific themes from within next-generation
growing fields and strive to improve customer
satisfaction by creating appealing solutions businesses
・Improve customer satisfaction levels by utilizing DIC
improvement tools consisting of product guidebooks,
exhibitions and technology exchanges to achieve
penetration and enhancement of the DIC brandImprovement of development
capability of new products/technology
contributing to sustainable society

P36

Strengthen collaboration and combining oftechnologies among Group companies (including
overseas companies)

Promote development ofenvironmentally-conscious products
and services

P37

・Promote research themes related to theenvironment
・Speedy launch of new environmentally-conscious
products into markets

Targets and Achievements of Major CSR Activities

FY2012 Results

Evaluation

FY2013 Goals

Completed the integrated Code of Business Conduct proposal
draft on compliance for DIC and Sun Chemical★★

Complete and distribute the Code of Business Conduct(Japanese, English, and other languages) on
globally-applicable compliance

Finalized the e-learning material contents★★

Complete and distribute the subsidiary director checklist
based on the legal system of each country

Reconsidered main products due to the corporate reorganization★★

Further cultivate BCP for our main products, including
domestic and overseas subsidiaries

Conducted Task Force training to prepare for earthquakes andtsunamis based on the emergency response manual (earthquake
edition)★★★

Take measures for issues that we have recognized fromthe training result in 2012, revise the manual, and conduct
training

Conducted safety confirmation system training to confirm thesafety of employees, who are the foundation of the management
system in case of disaster★★

Prepare Task Force manuals responding to each specificrisk that can be expected

・Conducted internal seminars to establish the Confidential Information Management Regulations and Guidelines
・Established management regulations according to DIC for domestic group companies
・In terms of overseas group companies, we have developed the IT governance rules in companies in the China
region★★

・Promote the maintenance of the information security
system and appropriate response to internal audit results・Establish the security management system in domestic andoverseas group companies

Although we have switched from overseas subsidiaries inIndonesia to 2 companies in Thailand and the Philippines tointroduce the system within this year and promoting the effort, wewere not able to complete it within FY2012.

★

・Complete various HR systems for national staff in 2 overseas
subsidiaries in Thailand and the Philippines and start working withthe overseas subsidiary in Malaysia
・Promote the establishment of global HR database by department(1) Female employment ratio of graduates over technical college: 27.8%(2) Female manufacturing employees: 6, female external sales staff: 25★★

・Conduct reviews and consider future policies for assigning female
employees as manufacturing staff in order to thoroughly promote theexpansion of female employees’ work opportunities.
Appropriately
operate systems that support the balance between
・work, childcare, and nursing care, etc.

As of March 31, 2013: 2.20%★★★

Continue promoting employment of handicapped persons
in response to the increase in the legally stipulated
handicapped employment rate from April, 2013 onward(1.8%→2.0%) in a stable manner

・Conducted CSR procurement seminars for subsidiaries in theSoutheast Asia region
・Distributed the “DIC Group Supply-Chain CSR Promotion Guidebook”
to local suppliers and promoted the establishment of CSR procurement★★★

Collect the “CSR promotion reply sheet” from suppliers in
China and Southeast Asia, confirm the CSR promotion
status, and provide feedback

・Reconsidered the entire contents of the guidebook, added new
items, and enhanced the contents
・Reviewed and revised the “CSR promotion reply sheet” so that
suppliers can reply more easily★★★

Partially revise the “DIC Group CSR Procurement
Guidelines.” Issue the revised edition of the “DIC Group
Supply-Chain CSR Promotion Guidebook” in July

Extracted social needs that are rooted in global-scale issues, such as
CO2 reduction and replacement for fossil fuel, etc. Promoted businessplans, such as sophistication/downsizing of rechargeable batteries
and power devices as solutions businesses.

★★

・Research social needs
Widely extract social needs and technical themes that are rooted insocial issues by anticipating global-scale mega-trends and emerging
of new markets connected to them.

★★

・Provision of solutions
Plan new businesses that clarify the values that the DIC
Group can offer in order to provide solutions that satisfy
such social needs

Established the research support system for China, Southeast
Asia, and various areas in Europe and U.S.A.

★★

・Strengthen collaboration among Group companies(including overseas companies)
・Promotion of development of products by combining
technologies

Business volume of environmentally-conscious products as apercent of all products: 57%★★★

・Promote research themes related to the environment
・Speedy launch of new environmentally-conscious
products into markets

Issued the Chinese version, Korean version, and Taiwaneseversions of “product guidebooks” and held “technology exchanges”
with promising domestic and international customers in responseto this in order to promote the establishment of the DIC brandTargets and Achievements of Major CSR Activities

15

Major Targets and Achievements of Responsible Care (RC) Activities* The “Evaluation” column is based on self-evaluations of current progress. Evaluation marks ★ ★ ★…Excellent ★ ★…Satisfactory ★…Needs WorkCSR Theme /Objective（

Environmental
safeguards
reduction ofenvironmental
impact via
business activities）

Preservation of safetyandaccident prevention/ occupational safety
and healthObjective/Task

Reference Page

FY 2012 Goals

Prevention of global warming andpromotion of energy saving

P25

DIC Group (domestic):
Reduce energy consumption per unit production by 1% compared with the previous year’s level
Reduce CO2 emissions by 1% compared with the previous year’s levels

Reduction of industrial waste (zero emissions)
Reduction of volume of landfilled solid waste
Reduction of volume of industrial waste discharged from production plants

P27

Volume of industrial waste sent to landfills
DIC: 53 t (-49% compared with previous year); DIC Group (domestic): 104 t (-34% compared with previous year)
Volume of industrial waste produced by production plants
DIC: 17,006 t (+1% compared with previous year); DIC Group (domestic): 65,309 t (0% change compared with previous year)

Promotion of recycling

WEB

Continue to promote recycling at DIC Group (domestic) and
improve resource recycling

Emission control of chemical substances
PRTR 1st-designated chemicals (462)+ Substances targeted for study by JCIA*1 (105)+ 1 substance group

P26

DIC: 328 t (+2% compared with previous year)
DIC Group (domestic): 662 t (-11% compared with previous year)

Reduction of VOC emissions into theatmosphere

P26

DIC: 314 t (+3% compared with previous year)
DIC Group (domestic): 648 t (-12% compared with previous year)

Ensuring occupational safety and health
Promotion of hands-on safety training

P22

・Provide guidance on risk assessments connected withequipment investment.
・Be timely in provision of information and analysis of theaccident or disaster.

Promotion of sharing of information aboutsafeenvironment between DIC and Group
companies (both domestic and overseas)

P24

・Continue with safe corporate climate cultivation working groups andsummarize proposals of the current fiscal year.
・Hold the working groups and share safety information.

Reduction of GHG emissions caused bytransportation

WEB

Continue to promote modal shift and reduce energy consumed
during transport per unit production of 1% annually.

Management of safety of chemicals duringtransportation

P26

Organize yellow cards and have general freight vehicles
including container trucks, lorries, and vehicles carrying mixed
freight carry themPromotion of green procurement

P30

Have incoming raw material information collected and centrally
managed by CIRIUS in accordance with the DIC Group's Green
Procurement Guidelines

Distribution / safety

Safety of chemical
substances / products

Communications
with community

Quality management(customer satisfaction)

Support forenvironmental
protection & safety
management activities
for overseas affiliates

・Continue to create SDS for all chemical products and distribute them through the website.
・Introduce a system for creating SDS for each country outside of Japan based on thatcountry’s laws and regulations and in that country’s language(s), and prepare an operating
environment enabling introduction of this system starting in FY 2013.
Provide SDS based on Regulations on Safe Management of Hazardous Chemicals in
China and ensure that labels are properly affixed. Carry out additional registrations ofexisting chemicals in Taiwan. Complete registration within the current fiscal year of
substances that will reach their EU REACH registration period expiration in May 2013.

Measures to cope with GHS(measures to disclose information on chemical
substances contained in products)

P30

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

P30

Report on RC activities and site reports ofeach plant

WEB

Make the information on our Responsible Care activities publicthrough the CSR report and DIC website. In addition, promoterisk communications between DIC’s offices and local
communities through site reports.

P30

Interpret QMS such as ISO 9001 and others as tools to ensure
efficient work and promote to improve customer satisfaction byuse of QMS.

P30

Confirm and organize QMS tasks at the new business systems,
support improvement activities and improve quality management
activities

Securing of quality

Promotion of the environmental protection &safety management activities at affiliatedcompanies in the China and Asia/Oceania regions
Environmental/safety data

P23
P28
P23
P28

Hold a meeting for personnel in charge of safety in China region, conduct
training in such as safety basic actions and provide support for points thatneed improvement at each company (Hold a meeting for personnel in chargeof safety in Asia/Oceania regions and China region in alternating years).

・Provide support for points about the target of environmental protection & safety
management that need improvement at overseas DIC Group companies.
・Select offices that are in need of special safety-related support, andprovide such support in cooperation with head companies in the regions.

*1 Japan Chemical Industry Association (General Incorporated Association): As one of the Japan’s major industry organizations, JCIA is a member of the ICCA and pursues the healthy
development of the chemical industry with other chemical-industrial organizations around the world.

16(RC) Major Targets and Achievements of Responsible Care (RC) Activities

Note 1: Numbers listed under “FY 2013 Targets” are totals from the 9-month period from April to December 2013.
Note 2: The formula used for calculating percentages in comparison with previous years of the target value in FY 2013 is the target value × 100 / (previous year’s achievement value × 3/4).
*2 A slight increase occurred due to changes in processing equipment at two plants.

FY 2012 Results

Evaluation

FY 2013 Goals (refer to Note 1, Note 2)

DIC Group (domestic):
Reduced energy consumption per unit production by 4.5% compared with the previous year’s level
Reduced CO2 emissions by 10.3% compared with the previous year’s level★★★

Reduce energy consumption per unit production by 1% compared withthe previous year’s level
Reduce CO2 emissions by 1% compared with the previous year’s level

Volume of industrial waste sent to landfills
DIC: 48 t (-54% compared with previous year); DIC Group (domestic): 106 t (-33% compared with previous year)
Volume of industrial waste produced by production plants
DIC: 15,710 t (-6.7% compared with previous year); DIC Group (domestic): 65,874 t (+0.9% compared with previous year)★★

Volume of industrial waste sent to landfills*2
DIC: 36 t (+1% compared with previous year); DIC Group (domestic): 81 t (+1% compared with previous year)
Volume of industrial waste produced by production plants*2
DIC: 11,983 t (+2% compared with previous year); DIC Group (domestic): 48,952 t (-1% compared with previous year)

Resource recycling rate
DIC: 74% (2-point reduction from previous year)
DIC Group (domestic): 93% (5-point reduction from previous year)★★★

Continue to promote recycling at DIC Group (domestic) and strive toimprove resource recycling rate

DIC: 296 t (-8.6% compared with previous year)
DIC Group (domestic): 567 t (-25% compared with previous year)★★★

DIC: 222 t (0% change compared with previous year)
DIC Group (domestic): 419 t (-2% compared with previous year)

DIC: 283 t (-8.7% compared with previous year)
DIC Group (domestic): 554 t (-26% compared with previous year)★★★

DIC: 211 t (-1% compared with previous year)
DIC Group (domestic): 408 t (-2% compared with previous year)

・Risk assessment guidance was provided at affiliated companies.
・Information on accidents and disasters in the DIC Group was distributed to andshared with Group companies.
・Hands-on safety training was conducted at 19 locations (3,714 participants).

★★★

・Provide guidance on risk assessments connected with equipment investment.
・Be timely in provision of information and analysis of the accident and disaster.
・Expand and continue current hands-on safety training measures.

★★★

・Continue with safe corporate climate cultivation working groups andsummarize proposals of the current fiscal year.
・Hold the working groups and share safety information.

★★

Continue to promote modal shift and improve transport efficiency

Organized yellow cards and had general freight vehicles including container
trucks, lorries, and vehicles carrying mixed freight carry them★★★

・Provide information enabling identification of yellow card numbers ondelivery slips.
・Continue providing training on potential problems that may occur duringtransporting and apply safety management for transport of chemical products.

In accordance with the DIC Group's Green Procurement Guidelines, incoming
materials information was collected and centrally managed using CIRIUS★★★

File updated information in CIRIUS as necessary for new raw
materials as well as conventionally procured materials

・SDS were created for all chemical products and made available on the website.
・A system (WERCS) for creating SDS based on other countries’ laws andregulations and in those countries’ language(s) was introduced domestically.

★★★

・Continue to create and distribute SDS for all chemical products through the website.
・Utilize WERCS to create SDS and labels. Introduce WERCS also atoverseas Group companies and prepare an operating environment
enabling overseas utilization of the system starting in FY 2014.

・Provided SDS based on Regulations on Safe Management of Hazardous Chemicals in China and affixed labels.
・Carried out additional registrations of existing chemicals in Taiwan.
・Completed registrations of substances that reached their EU REACH registration period expiration in May 2013.

★★★

・Continue with measures to meet Regulations on Safe Management ofHazardous Chemicals in China.
・Keep close watch on developments related to Korean chemical substance regulations(K-REACH) and take measures toward compliance once they have been officially established.

Communicated with local residents and visitors to our plants through the CSR report, DIC
website and site reports for each plant as part of risk communication promotion efforts★★

Make DIC domestic Group company and overseas Group company
occupational safety and health performance data and environmental
performance data publicly available.

★★

Utilize ISO 9001 and other QMS as tools for increasing quality of workin order to improve customer satisfaction★★

Identify and organize QMS issues within “the matrix-typeorganizational system” while supporting improvement activities,
and enhance quality management activities

・Held meetings for personnel in charge of safety in China region.
・Held environmental and safety audits in the China and Asia/Oceania regions.

★★★

・Collected and processed data from companies in the DIC Group (overseas affiliates) and reported it.
・Selected DIC Compounds Malaysia (Asia/Oceania region) and Nantong DIC
Color Co., Ltd. (China) as locations to receive special safety-related support.
・Installed hands-on safety training equipment and worked to raise safety awareness among employees.

・Hold a meeting for personnel in charge of safety in the Asia/Oceania region and provide
support for points that need improvement at each company (hold meetings in alternating
years in the Asia/Oceania and China regions; next meeting scheduled for February 2014).
・Conduct environmental and safety audits.

★★★

・Safe corporate climate cultivation working groups provided proposals,
which were reflected in FY 2013 activity planning.
・Precautionary stickers were created by safe corporate climate cultivation
working groups.
Promoted modal shift and improved transport efficiency
Energy consumption (DIC): 4,802 kℓ (-10.5% compared with previous year)
Unit energy consumption (DIC): 7.96 Kℓ/the amount of transport (1,000t) (+0.9%
compared with previous year)

In accordance with our “matrix-type organizational system”, which positions the
Product Division on the vertical axis and Sales, Technical and Production
Administrative Divisions on the horizontal axis, we introduced and organized a
QMS in the Product Divisions in order to facilitate smooth inter-divisioncollaboration

・Collect and analyze safety and environmental data from overseas DIC
Group companies and provide support for points of the target management.
・Select offices that are in need of special safety-related support, andprovide such support in cooperation with head companies in the regions.

Major Targets and Achievements of Responsible Care (RC) Activities

17

Corporate GovernanceWEB

http://www.dic-global.com/en/about/governance.html

Basic Concept of Corporate GovernanceCorporate Governance Initiatives

The DIC Group considers corporate governance as “theIn addition to appointing two external attorneys as outside

system in which decisions are made on the management policy

auditors, DIC also appoints two outside directors to further strengthen

and corporate executives’ business conduct is appropriately

corporate governance. We also have, “Nomination Committee” and,monitored, evaluated, and motivated in order to conduct healthier,“Remuneration Committee”, with outside directors as members, as

more efficient, and better management with the aim of sustainable

the advisory committees for the board of directors in order to enhance

corporate growth and development.” DIC promotes various

the objectivity of decision-making for appointment of candidates forpolicies to strengthen the management system and enhance

DIC directors and executive officers, etc. and remuneration for them.

the monitoring function with the aim of pursuing corporate value

DIC works on the establishment and operation of the internal

improvement that would further grow the trust of stakeholders,

control system, such as the establishment and notification of the Codesuch as stockholders and customers.

of Business Conduct on compliance, monitoring by the Internal Audit
Division, establishment of the whistle-blowing system, establishmentof various internal rules, establishment of CSR policy based onrisk evaluation, establishment of the BCM system, and securing ofgroup company control, etc. based on the “Basic Policy for Internal
Controls,” which was resolved by the DIC board of directors

Meeting of stockholders

Corporate Governance Structure

Appointment

Appointment
Audit

Board of directors

Nomination Committee
Remuneration Committee

President & CEO

CSR Committee

Internal Control Dept.
Internal audit

Accounting audit

Board of auditors
Accounting auditors

Executive Committee
Sales Administrative Division, Product Division, Production Administrative Division,
Technical Administrative Division, R&D Division, Administrative Department, Office

Supporting the UN Global Compact as a global chemicals manufacturerWEB

http://www.dic-global.com/en/csr/philosophy/management/gc.html

In order to fulfill its social responsibilities in the international community in a more proactive manner, the DIC Grouppledged its support and was registered as a participating company in December 2010 for the 10 Principles and Millennium
Development Goals (MDGs) which are advanced by the United Nations.
The UN Global Compact (UNGC) is a voluntary action principle for companies, which was proposed in 1999 in order toachieve worldwide sustainable development. More than 8,000 companies and organizations have pledged their support
based on the idea that worldwide sustainable development can be achieved if companies comply with international rules forhuman rights, labor, and the environment in the course of conducting business and fulfill social responsibilities.

18

Corporate GovernanceGroup
companies

ComplianceCore theme

Towards Fair andTransparent Corporate Activities
WEB

http://www.dic-global.com/en/csr/philosophy/management/compliance.html

Basic Concept of Compliance

System to maintain compliance

Compliance in the DIC Group is to not only comply with laws

The DIC Group has established a global compliance promotion systembut also respond to and meet social norms and requirements by

led by DIC Corporation (Japan), Sun Chemical Corporation (Europe

stakeholders, such as customers, communities, and society.

and U.S.A.), DIC (China) Co., Ltd. (China), and DIC Asia Pacific Pte Ltd.

We consider that the compliance and adherence to the(Asia/Oceania) as the core members. In addition, the DIC Group utilizes“DIC Way Code of Business Conduct,” which is the unified set

the whistle-blowing system. In case of issues or questions regardingof guidelines, is the basis of compliance in order to achievecompliance, one can directly report the matter to the DIC president andsustainable growth of fair and transparent businesses. We pursue

auditors, etc. We are also preparing to establish external whistle-blowing

actions that comply with this Code in the business activities bycontact windows that respond to languages of over 160 countries. In case

DIC Group employees.

of such reports, we swiftly and appropriately respond to such reports

Program to Promote Complianceaccording to the law while incorporating internal and external opinions withthe aim of finding and correcting wrongful conduct, etc. of an early stage.

The “DIC Way Code of Business Conduct” embodies the principles

Main contents of the DIC WAY Code of Business Conductof action based not only on compliance with laws in every country and(1) Standards of Conduct Regarding Human Rights and Working
Environment(2) Standards of Conduct Regarding the Environment, Safety and Health(3) Standards of Conduct Regarding Quality(4) Standards of Conduct Regarding Market Competition and International
Business Transactions (including compliance with Anti-Monopoly Act
and prohibition of unfair competition)(5) Standards of Conduct Regarding Customers/Suppliers, Public Officials
and Shareholders(6) Standards of Conduct Regarding the Accuracy of Financial Information(7) Standards of Conduct Regarding the Prohibition against Insider
Trading(8) Standards of Conduct Regarding Information Security, Intellectual
Property Right and Properties Possessed by the Company(9) Standards of Conduct Regarding Contributions to Society(10) Standards of Conduct Regarding Conflicts of Interest

international rules but also on social norms of each country/region
worldwide and expectations and requirements of stakeholders. The DIC
Group promotes the understanding and establishment of the “DIC Way
Code of Business Conduct” not only by holding explanatory seminars
but also through e-learning. In addition, we also hold legal seminars
for employees who are newly employed, promoted and transferredoverseas with the aim of enhancing their awareness of compliance.
The DIC Group will continue to never violate the principles set forthin the DIC Way Code of Business Conduct, even if such a violation
would appear to be profitable for the DIC Group. We also respect social
norms and act with social wisdom as a corporate citizen.
VOICE

Employee’s voice

Enhancement of legal services in DIC (China)
I am in charge of legal issues in the DIC Group, including Sun Chemical, in China. I especially cooperate closelywith the DIC Legal Department to promote projects within China with the aim of reducing risks. Companies worldwide,
including China, are heightening their awareness of legal issues and compliance now. It is necessary to enhance
the cooperative system between DIC and DIC (China) Co., Ltd. as well as DIC (China) Co., Ltd. and its operating
subsidiaries in order to manage/reduce risks for the overall DIC Group. I am happy to be a part of the establishment
work of a global network, in which DIC and its group companies can receive the same legal services.

Michelle Ding
DIC (CHINA) Co., Ltd.

Report on Our CSR Themes <Compliance>

19

BCM

(Business Continuity Management)

Seeking to Reduce
Disaster Risks
WEB

http://www.dic-global.com/en/csr/philosophy/management/bcm.html

BCP Promotion by the DIC Groupextracted points to improve in order to utilize the training results.
We h av e r e f l e c t e d t h o s e p o i n t s a n d r ev i s e d i t t o

DIC has been promoting the BCP (Business Continuity Plan)

the “ Headquar ters Task Force Response Manual uponin order to respond to risks, such as major earthquakes, . We have

Earthquakes”We will continue to repeat training and improvement

checked the main products based on the degree of social impact,

based on the more practical manual.

and revised them in the new organization, started in April, 2012.
We will continue checking the main products according to market
changes
In addition, the Purchasing Department and Technology

Enhancement of the overall risk management
system

Department have been taking the lead to promote efforts, to

On March 11, 2013, 2 years after the Great East Japan

respond to concerns also in view of raw material I We will further

Earthquake, we conducted training for safety confirmation systemenhance the coordination with domestic and overseas groupfor employees,. This is a training in which we transmit safetycompanies in order to promote specific preparation of the BCP,.

confirmation email to employees who are registered in the systemand theyto correctly reply it As a result, 96% of the recipientsof the safety confirmation email correctly replied. We will strive

BCP (Business Continuity Plan) Initiatives

to increase the number of registered employees in groupcompanies, while, encourage each plant to utilize the system on

Based on the contents of the emergency response manual,

their own, and promote the system that enables us to thoroughly

which was prepared in 2012, we conducted training to evaluate

comprehend the safety of employees. At the same time, we will

the actions according to the scenario of DIC Yokkaichi Plant

prepare manuals that individually respond to various disasters,

being affected by the Earthquake. We were able to discover somesuch as accidents or pandemic, etc., based on the preparedpoints to improve, such as issues in local information collection“Headquarters Task Force Response Manual upon Earthquakes.”of the disaster task force., and recognize responses that should
be taken in the future. We have analyzed the training results and

VOICE* Pandemic: Nation-wide/worldwide outbreak of infectious diseases

Employee’s voice

Striving for risk management that is recognized by each employee

I am in charge of the office for the Risk Management Conference. This conference formulates measures against
various risks that may seriously affect the business activities of the DIC group and plays the role of the office to
execute the measures. We prioritize a wide variety of risks, prepare task force response manuals for each risk, andevaluate the manuals while coordinating with various departments for each risk. We will revise the manuals based on
the evaluation results and promote the PDCA cycle. We will strive for risk management in which each employee canrecognize risks more

20

Report on Our CSR Themes <BCM (Business Continuity Management)>

General Affairs and HR Department
Manager

Shigeki Takeda

Information Security

Initiatives to Ensure
Information SecurityWEB

http://www.dic-global.com/en/csr/philosophy/management/security.html

Basic Concept of Information Security by the
DIC Group
The DIC Group has positioned information security as oneof the top priorities of management and stipulated the “Basic
Policy for Information Security” It is based on the recognition that
protection of information asset that belongs to or is managed
by the DIC Group is important in promoting business activities.
Based on this “Basic Policy on Information Security,” we havestipulated the “Confidential Information Management Regulations,”" Information Management Guidelines,” and “ Individual
Guidelines.” These are prepared in order for each director andemployee, to fully recognize the importance of information asset,
appropriately manage it in a responsible manner and utilize them

Information Management Regulations and the guidelines tooverseas group companies and further enhance information
security response.
In the Asian/Pacific region, we will not only promote thestandardization of work flows that are common for the region
and promote further utilization of global management data byintroducing the integrated new enterprise system. In order tosupport the internal control environment for this system, we haveestablished a system administrated by the DIC headquarters forcomponents that require sufficient security and reliability, suchas access authority control, safety of data communication, andstable operation of server systems, etc.

Responding to a New Device

effectively. In addition, we will strive for further improvement byconducting internal audit and confirming the current issues.

Promotion and Enhancement of Information Security Response

We started introducing smartphones in 2012 as new devices
to utilize the internal system from the outside. In order to secure
the convenience and safety of smartphones, we have introduced
a number of information security measures, such as remote lockIn 2012, we promoted initiatives in preparation for thein case of loss and prohibition of download of internal information,

establishment of information security systems in each overseas

etc. With the aim of further enhancing work efficiency andgroup company with the cooperation of regional administrative

customer satisfaction, we will not only introduce tablet terminals

companies. In 2013, we will aim to deploy the Confidential

but also take initiatives in ensuring information security in the
future with the focus on safe and effective utilization.

VOICE

Employee’s voice

The entire group will make efforts in promoting and enhancing information security as one
DIC has been deploying the new enterprise system (SAP), which is utilized in each DIC group company not onlyin Japan but also in Asia/Oceania, since 2012. Through this initiative, we have been establishing the information
foundation, which will be necessary for the DIC Group to demonstrate the combined power in the future.
Upon this system introduction, subsidiaries in India and Southeast Asian countries, in which they have alreadystarted operating the system, were first perplexed by the required information security level improvement andunprecedented strict operation rules to comply with system utilization rules, which are globally common, such as user
IDs and access authority setting, etc. However, they proactively took initiatives and realized the introduction.
As global coordination becomes more and more necessary, we will strive to further establish the importance ofensuring information security as the whole group through continuous education.

Information System Department(Stationed in DIC Asia Pacific Pte Ltd)

Keiichiro Ito

Report on Our CSR Themes <Information Security>

21

Safety, Environment,
Health and Quality

Main and Categorized Themes

Toward the Achievement ofa Sustainable SocietyWEB

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

Basic Approaches to and Initiatives in Environment, Safety, and Quality
Basic Stance and Main Initiatives
In FY 2013, we established the five initiatives shown in thepolicy for Responsible Care activities in the poster on the right

Policy for the Environment,
Safety, and Healthand implemented them throughout the DIC Group.

As a responsible corporate citizen, DIC
Corporation recognizes that care for theenvironment, safety, and health (ESH) is
fundamental to the management of theCompany. DIC is committed to the concept of sustainable development, andcontributes to society through our continuous business harmonized with global
environment, including biodiversity, andproviding environmentally sound products and technology.

In addition, DIC created the slogan “promotion of Responsible
Care activities by each employee and contribution toward thebuilding of a sustainable society.” Based on this ideal, and with
top priority given to ensuring safety in environment and production

Quality Policy

operations, we have pledged to pursue corporate activities while
promoting continuing preservation of and growth in society andenvironment. We establish these initiatives annually and translatethem into English and Chinese in order to disseminate themthroughout the entire DIC Group and promote relevant activities.

Contribute to the prosperity of customers
and society by consistently providing reliable products.
April 1, 2013

Policy for Responsible Care
Activities 2013
Promote Responsible Care activities
across the global network of DIC
Group
Establish a safety culture oriented towards “zero accidents”
Set targets to reduce environmental
impact through business activities
and openly report performance andachievements
Manage chemical substance information in an appropriate manner andinform customers of their safe use
Enhance the efficiency of activities
while striving to further invigorate
the organization

DIC Corporation

Yoshiyuki Nakanishi, President & CEO“FY 2013 Policy for Responsible Care Activities” poster

Occupational Safety and Health Initiatives
Basic Approach to Ensuring Occupational Safety and Health

FY 2011), with an accident frequency rate of 0.63 (rate of 0.91 in

As an active member of society, the DIC Group recognizes that

FY 2011) and a severity rate of 0.025 (rate of 0.048 in FY 2011).

ensuring proper consideration of safety, the environment and health

The numbers of accidents at both DIC and domestic affiliates

form the foundation of our operations, and we make every effort tohave been decreasing with the proportions to FY 2010 and toincorporate this into all business activities in the following ways:

FY 2011 each, and the DIC Group will continue to strengthen its• Undertaking Responsible Care activities as part of overall Groupsafety management measures.

activities• Striving to firmly establish a safe corporate environment with theRate*, which is a common indicator among various countries, hasgoal of “zero accidents”

been newly introduced within the DIC Group.

We analyze accidents and communicate relevant information

In FY 2012, the DART Rate was 9.0 at DIC, 8.6 within thebased on this fundamental approach, and undertake risk

domestic DIC Group, and 7.7 for the entire DIC Group including

assessment in order to ensure occupational safety and health.

overseas affiliates.

Status of Occupational accidents
There were 3 cases of occupational accident with lost work days
in FY 2012 at DIC (3 cases in FY 2011), with a frequency rate of 0.68

22

In an effort to bolster our safety activities further, the DART* DART Rate: an indicator of the number of days regularly working employees could not attend
work as usual per 200,000 working hours

Results of Hands-on Safety Training in FY 2012 and Plans for FY 2013

(rate of 0.67 in FY 2011) and a severity rate of 0.03 (rate of 0.05 in

In FY 2012, hands-on safety training was conducted at 19 locations

FY 2011). Within the domestic DIC Group, there were 7 cases of(for 51 workplaces within the domestic DIC Group). A total of 3,714

occupational accident with lost work days in FY 2012 (12 cases inpeople took part in the training and 134 instructors were cultivated.

Report on Our CSR Themes <Safety, Environment, Health and Quality>

Labor Standards Inspection Office chiefs, labor standards

DIC is also planning to implement “safe procedure inspections” inassociation directors and occupational safety and health specialists

order to complement and further enhance hands-on safety training.

from both inside and outside of the Company attended training

Among case examples at DIC, a few accidents occurred as asessions and praised them highly.

result of unsafe activity; we speculate that human factor is related

Employee responses when asked about their impressions of theseto the causes of these accidents. By utilizing safe proceduretraining efforts included “I hope you will continue to hold training sessions

inspections to explore “how workers see themselves subjectively” as

on a regular basis” and “hands-on training enabled me to gain knowledge

well as “how they actually appear

that videos, written materials and case examples alone could not haveprovided, which increased my awareness regarding potential dangers.”
Five types of hands-on training using three different types of training
equipment were added to hands-on training activities in FY 2013. Thisequipment is being utilized at various locations to “decrease the amountof risk workers” are willing to accept, which is the primary training goal.

objectively”, we can show them
the areas in which they needto take greater precaution andhelp them maintain high levels ofknowledge and sensitivity.

Senior Managing Executive Officer Saito
participating in hands-on safety training

Meeting for Personnel in Charge of Safety at DIC Production Sites in China
Meetings for local personnel in charge of safety at DIC’s affiliatedeffectiveness of safety training and education, measures to save energy andmanufacturers in China are held once every two years as part of safety

reduce CO2 emissions, and countermeasures to prevent static electricity

support measures.

accidents. Members from the DIC headquarters lead role-playing exercises

A meeting was conducted in February 2013 at Nantong DIC Color Co.,as an easy-to-understand form of education for risk assessment training.

Ltd., and 32 representatives from 18 companies took part. FY 2012 DIC

Furthermore, safety-related personnel from each company tried out

Group accident case examples, the results of audits conducted in China andhands-on safety training equipment that had been installed at Nantong DIC

other such information was reported at the meeting, and participants held

Color Co., Ltd. in February 2013. Moving forward, implementation of hands-

discussions in pursuit of effective countermeasures at plants in China. Localon training will be expanded to each company as part of training activities.

safety-related personnel introduced information on and recent developments
in Chinese legal regulations, and all participants took part in mutual patrols ofphotogravure ink, lithographic ink and pigment productions sites at Nantong
DIC Color Co., Ltd. Case examples were introduced via poster sessions
in order to explain safety efforts at each company, and lively exchangesof ideas were carried out on topics including methods of increasing the

TopicsRisk assessment training

A group meeting

Topics DIC Employee Receives the JISHA Green Cross Award

Group Leader (GL) Keiichi Kajioka of the Kashima Plant Environment/Safety/Quality Group was chosen to receive the Green
Cross Award from the Japan Industrial Safety & Health Association (JISHA), which was presented to him at the National Industrial
Safety and Health Convention on October 24, 2012. JISHA provides support for corporate safety and health activities, and every
year this organization presents the Green Cross Award for outstanding achievements to individuals, occupation-specific groups
and others who have devoted numerous years of effort toward maintenance of and improvement in industrial safety, occupational
health, etc.
For 21 years, GL Kajioka has established static electricity countermeasures necessary for the chemical manufacturing field,
provided training on and disseminated risk assessment methods, and conducted other types of safety- and health-related work.
Furthermore, he has energetically undertaken environmental safety audits at domestic Group companies and provided guidance
to ensure safe and reliable operations at manufacturing locations. In recognition of these efforts, Kajioka received the Green
Cross Award following a recommendation from the General Incorporated Association, Japan Chemical Industry Association (JCIA).

GL Kajioka at the awards ceremony

Report on Our CSR Themes <Safety, Environment, Health and Quality>

23

The Effort of Safe Corporate Climate Cultivation Working Groups

Introduction of the “ETSITE” RC Data Management System

Safe corporate climate cultivation working groups are made up of

The Responsible Care (RC) data management system

personnel in charge of safety at DIC and DIC Graphics plants. These groups“ETSITE” was introduced in the domestic DIC Group with thehave been active since FY 2010, and their members hold discussions andgoal of achieving rational management and effective utilization of

exchange proposals regarding safety policies and measures.

industrial waste management data.

In FY 2012, the working groups exchanged suggestions regarding

ETSITE is an Excel-based data management system enablingsafety policies and created precautionary stickers. Employee-createdcreation and management of each kind of master data files as well

sticker designs offering clear explanations of dangers at a glance wereas uploading of required data for easy retrieval when necessary.

gathered in an effort to provide visual warnings for potential hazards in

In addition, reports to prefectural organizations, industrial waste

the workplace. DIC plans to continue these activities within the domestic

disposal companies, disposal route and process flow data, andGroup while also expanding efforts to overseas plants.

other such information can now be understood easily at a glance,

Moving forward, these working groups will continue to propose various
safety-related measures.

and any changes made by persons involved are clearly andprecisely expressed.
Currently, ETSITE is being implemented in industrial waste
disposal and energy management activities. In the future, weplan to expand its usage further to manage environmental
expenditures, safety-related expenses, accident-related statistics
and other such areas.

TopicsUtilizing the Safety Assessment System to Enhance Safety

The Safety Assessment System is a tool enabling companies to independently

Center and has been providing support ever since. A project office was set up inunderstand and assess safety levels at their offices with the goal of continually

November 2012 and employees of 18 major chemical companies were selected

achieving safety improvements. This system was designed with consideration foras members of the Safety Assessment Promotion Committee. These members

corporate safety culture by the nonprofit organization Japan Society for Safety

participated in training related to areas including safety culture and disaster

Engineering (JSSE) under assignment from the Ministry of Economy, Trade andprevention while continuing with development of the Safety Assessment System.

Industry (METI). The Safety Enhancement Center was established in April 1, 2013

Starting in April 2013, these 18 supporter companies began implementing thein order to promote widespread utilization of the Safety assessment System andsystem throughout their organizations and utilizing it for self-assessments. DIC

improve the overall level of safety in Japan’s chemical industry.

makes active use of the Safety Assessment System to assess safety at each plant

In FY 2012, DIC agreed to the plan for establishing the Safety Enhancement

while striving for continuing improvements.
JSSE

Advisory Board

Experienced directors, corporate representatives, safety specialists

Independent Administrative Corporation
National Institute of Advanced Industrial
Science and Technology (AIST)

Safety Enhancement Center● Business Group

Dissemination Group
Collaboration(assessments, training, information gathering,
provision, etc.)● Standing Committees
Steering Committee: proposals and advice
regarding operation
The Chemical Daily
Co., Ltd.	

Logos of the Safety Enhancement Center supporter companies

24

Report on Our CSR Themes <Safety, Environment, Health and Quality>

Planning Committee: operational management
Evaluation Committee: evaluation criteria,
instruction manual revisions, evaluation trials

Data analysis

Universities

Personnel exchanges, etc.

Corporations (18 Major Chemical Companies)

Supply of human resources, funding support, etc.

Organization of the Safety Enhancement Center

Organization of the Safety Enhancement Center

DIC Group Performance
Overview of Environmental Impact Generated by Our Business Activities
The following is a broad overview of the environmental impact generated by the DIC Group’s business activities in FY 2012.

DIC Group (Domestic)※

Year-on-year

14,362,000 m

-10%

3

+5%

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

Emissions into the air

Emissions into water

CO2 emissions

NOx emissions

Amount of atmospheric emissions of the 567 substances(and 1 substance group) targeted substance

554 t

+3%

3

Year-on-year-3%

COD emissions into waste water

Year-on-year

SOx emissions

473 t

64 t

Amount of aquatic emissions of the 567 substancesYear-on-year(and 1 substance group)t-7%
targeted substanceYear-on-year-25%

Year-on-year

-22%

-2%

13

Industrial waste disposed ofas landfill

106 t -33%

Year-on-year

Amount of soil-related emissions of
the 567 substances (and 1 substance group)targeted substance

419,000 t* See the following page for more information about the scope of the report:* Overseas data includes that from January 2012 to December 2012

Initiatives Related to the Climate Change Problem
Efforts to Reduce CO2 Emissions
Thanks to stabilization of biomass boiler operations at the
Kashima Plant and other measures (shown on the right), CO 2
emissions for FY 2012 dropped by 40,000 tons from the previous
year. Although operational stoppages at nuclear power plants
resulted in an increased CO 2 emission factor in electric power
for a 25,000 ton increase, we utilized these measures shown to
reduce total CO2 emissions by 10% compared with the previous
year.

Industrial waste disposed of as landfill
WEB

31,882 t

OUTPUT

CO2 emissions

Production volume

190,154 ㎘
Emissions into soilt0tEnergy Consumption (crude oil equivalent)

Emissions into the air

928,000

INPUT

DIC Group (Overseas)

205 t

-10%

Year-on-year

11,461,000 m

Emissions into soil

OUTPUT

235,000 t

Year-on-year

Total emissions

Production volume

117,284 ㎘

INPUT

Total water consumption

Energy consumption (crude oil equivalent)

1,422,000t

http://www.dic-global.com/en/csr/pdf/dic_csr_scope_ja_2013.pdf

CO 2 Emission Reduction Measures(1) Aggressive energy-saving
measures at individual
plants (341 measures)

3,000-ton emission reduction(providing approx. 1% nationwide
emissions reduction)(2) Reduced heavy oil usage
through stable operation of theKashima Plant biomass boiler

Approx. 27,000-ton reduction in CO2emissions compared to previous year
(providing approx. 10% nationwide
emissions reduction)(3) Operation of private-use power
generators (cogeneration)
installed at 4 plants, which
contributed toward reduced
utilization of thermal power plants

Approx. 10,000-ton reduction in CO2emissions compared to previous year
(providing approx. 5% nationwide
emissions reduction)(4) Other measures:
・Fuel conversion at the Kashima Plant
・Installation of solar power generation equipmenton the roof of the technological research building● Heavy oils → low-CO2 -emission
LNG●80KW/hReport on Our CSR Themes <Safety, Environment, Health and Quality>25

(Energy consumption index
per unit production)
100
75

200

50

100

170
235

300

196
258

groups (information exchange, research studies on new items,

104

192
260

progress, discussions, patrols, etc.), DIC energy-saving working

113

105

99

94

191
270

efforts by energy-saving promotion committees (confirmation of(Thousands of tons) 100
400

211
283

FY 2012 energy-saving measures at DIC included (1)Changes in CO2 Emissions and Energy Consumption Index per Unit Production

234

Energy-Saving Activities

'90

'08

'09

'10

'11

'12

25
0

etc.), and others; (2) introduction of systems for visualizing energy0

consumption (Chiba, Kashima, General Research Center); andDIC CO2 emissions : left axis
Domestic DIC Group CO2 emissions : left axis
DIC energy consumption index per unit production : right axis

(Base year)(3) implementation of internal audits on energy management

110

104

96

93

101

(Energy consumption index per
100 unit production )100

Target for
2013

160

Oceania)

Energy-Saving Measures in Distribution'90(Base year)

'08

'11

75
50

117

130

132

'10

92

132

'09

80

0

93

80

138

120

99

energy-saving activities at overseas affiliates (China and Asia/(Thousands of kiloliters ) 100
200

102

In addition, we began objective-based management for

Changes in Energy Consumption (Crude Oil Equivalent) and Energy Consumption Index per Unit Production

114

conditions at individual plants (Saitama, Kashima, Chiba).

(FY)

'12

25
'13 (FY)0

DIC energy consumption (crude oil equivalent) : left axis
Domestic DIC Group energy consumption (crude oil equivalent) : left axis
DIC energy consumption index per unit production : right axis
Target energy consumption index per unit production : right axis

In distribution, we performed examinations of distribution
bases in FY 2011 in order to reveal low-efficiency locations whilereevaluating local delivery operations conducted over relatively
short distances. We also pursued a modal shift (marine, rail andair transport). Energy consumption in distribution was reduced by
10.5% compared with the previous year.

Reducing Emissions of Chemicals into the Environment
Environmental Emissions of Substances Targeted for Study(567 substances including PRTR-designated substances and 1 substance group)

DIC

Emissions into the air: 283t
Emissions into water: 13t
Emissions into soil: 0t

In FY 2012, the domestic DIC Group was able to meet its

Emissions into the air: 554t
Emissions into water: 13t
Emissions into soil: 0t* For details on substances targeted for study, see the following page:
WEB http://www.dic-global.com/en/csr/environment/

Report on Our CSR Themes <Safety, Environment, Health and Quality>'00(Base year)

'08

DIC

'09

'10

'11

'12

222
419

554

0

283

emissions reduction target to limit the emission of VOCs. We will

736

500

310

by FY 2010 using FY 2000 as the base year” as a voluntary

Target for
2013

977

FY 2007, of “reduction of atmospheric VOC emissions by 30%

1,000

309

1,500

emissions.

26

（t）
2,000

The domestic DIC Group succeeded in its policy, initiated incontinue to set new targets and promote activities to reduce VOC

A decrease of 25%(192 tons)
as compared with
FY 2011646

Addressing VOC Regulations

567t

Changes in Atmospheric Emissions of Substances Targeted for Study (VOCs)(567 substances including PRTR-designated substances and (1 substance group))

304

Reducing Environmental Impact on the Air,
Water and Soil

296t

A decrease of 9%(28 tons)
as compared with
FY 2011

Domestic DIC Group

655

thorough management at VOC combustion facilities, etc.

298

targets for volumes of emissions into the environment by applying

561

Initiatives to Reduce Emissions into the Environment of
Substances Targeted for Study*

'13

(FY)

Domestic DIC Group* Values for FY 2013 are totals from the 9-month period from April to December 2013

469

473

483
480

394
390

403

'12

(FY)

0

The domestic DIC Group currently has incinerators and other

'90

'08

(Base year)

such equipment at six of our facilities. We have achieved results

'09

'10

45

'11

64

164

199
157

100

82

200

203

（t）
300

205

SOx and NOx Emission Volumes

69

Compliance with Regulations for Dioxin Emissions

'11

156

processing facilities. We are achieving definite results in these areas.

'10

Domestic DIC Group

60
63

of water quality deterioration, in boiler equipment and wastewater

'09

DIC

212
228

to people’s health, as well as COD, which serves as an indicator

'08

'90

(Base year)

53
68

Taking FY 1990 as the base year, the domestic DIC Group is

406

419
0

Reducing SOx, NOx and COD

415

assess environmental and safety-related risk in advance.

working to reduce SOx and NOx, which can cause acid rain and harm

745

400

216
232

surveys and countermeasures as necessary and thoroughly

600

57
72

Act and other relevant laws. We implement soil and groundwater

（t）
800

202

The domestic DIC Group str ictly obser ves the Soil
Contamination Countermeasures Act, Water Pollution Control

COD Emission Volumes

204

Soil and Groundwater Pollution Studies'12

SOx emission volume:

DIC

Domestic DIC GroupNOx emission volume:

DIC

Domestic DIC Group(FY)

that greatly surpass the standards specified in the Act on Special

4,190

6,000

'99 '00(Base year)

'01

'02

'03

DIC

537
1,288
312
991
128
537
125
320
89
232
90
207
104
158
48
106
36
81

3,426
0

1,560

3,000

waste disposed of as landfill. These efforts have produced steadyresults.

Target for
2013

2,296

DIC began zero-emission activities in FY 2001, and thedomestic DIC Group are taking measures to reduce industrial

4,326

5,581

DIC Group Initiatives to Reduce Industrial Waste

（t）
9,000

7,981

Reduction of Industrial Waste

Changes in Industrial Waste Disposed of as Landfill

7,552

Measures against Dioxins.

'04

'05

'06

'07

'08

'09

'10

'11

'12

'13 (FY)

Domestic DIC Group* Values for FY 2013 are totals from the 9-month period from April to December 2013.

TopicsConstruction Completed for the Experimental Pigment Facility Incorporating Energy-saving Measures at the Kashima Plant

On April 30, 2013, DIC completed the construction of the Experimental Pigment Facility on the site of the former Kashima Plant technical facility that was damaged during the Great
East Japan Earthquake, with the goal of consolidating scattered technical personnel and facilities at the Kashima Plant. The new facility features various energy-saving measures,
including (1) solar power generation equipment, (2) LED lighting throughout the facility and (3) VAV-type (variable air volume) draft chamber* facilities.
(1) Solar power generation equipment: 80 kW polycrystalline silicon modules were installed on the roof of the Experimental Pigment Facility to generate power while reducing heattransmission through the roof in order to reduce air conditioning costs. (2) LED lighting: Approximately 300 LED lights were installed throughout the facility to provide lighting, resulting in
reduced electricity consumption when compared with fluorescent light usage. Furthermore, provision of bright interior lighting
contributes to the achievement of a working environment that employees can comfortably work in. (3) VAV: when the draft sash
is closed, exhaust airflow is automatically reduced in order to lessen electricity consumption.
By utilizing these approaches, we expect to reduce annual CO2 emissions by 60 tons. In addition, the red accent coloringon the front of the building is provided by DIC200 panels (construction material products) using environment-conscious
quinacridone pigment produced at the Kashima Plant, and the purpose of this coloring is to raise environmental consciousness.
At this experimental facility equipped with a full range of energy-saving features, we will continue with our efforts to develop
environment-conscious products.
* VAV-type draft chamber: VAV stands for “Variable Air Volume.” This type of draft chamber suppresses exhaust airflow and maintains stable
face velocity regardless of the degree to which the sash is open. It is extremely safe, facilitates more comfortable experiment operations andachieves excellent energy-saving results.

Solar modules installed on
the roof

Laboratory with LED lighting and
VAV-type draft facilities

Report on Our CSR Themes <Safety, Environment, Health and Quality>

27

Activities at

Business

Offices

Responsible Care Activities Program at DIC
Group Ofﬁces

The DIC Group is conducting Responsible Care activities programs globally. Various efforts such as ensuring production safety, energy
conservation and CO2 reductions are promoted at each plant in the DIC Group.

Safety Management at the Malaysia Plant
DIC Compounds (Malaysia) Sdn. Bhd. (Malaysia)

In 2011, a major accident occurred at DIC Compounds (Malaysia)

By utilizing six types of hands-on safety training equipment designed

in which a worker’s finger was cut off by a rotating component. Afterin 2013 together with local staff, employees simulate accidents using theira detailed analysis of the accident’s cause, it was concluded that theown bodies or dummies, including falling from high places, entanglement

effectiveness of group education sessions, risk assessment training andin a rotation component, receiving a cutting wound and so forth. For

other such safety training had been insufficient. Malaysia is a multiethnic

example, by actually experiencing (1) how one becomes entangled, (2)country in which Malay, Chinese and Indian people work, and differences

the degree of pain it causes and (3) what happens afterward in the casebetween these various cultures (and ways of thinking) resulted in differingof entanglement in a rotating component, it is possible for employees toindividual interpretations of the same explanations, resulting in significant

cultivate their own safety awareness.

disparities among workers’ levels of safety awareness. In order toMoving forward, we will have employees read out the “DIC safety

raise safety awareness among employees, hands-on safety training inbasic actions” (English and Malay translations) in turn during morning

collaboration with the Responsible Care Department was introduced.

briefing sessions while working to rebuild a DIC-style culture of safety.

Promoting Hands-on Safety Training
Nantong DIC Color Co., Ltd. (China)

Nantong DIC Color Co., Ltd. manufactures organic pigments, lithographic

Because regular participation in hands-on safety training has produced

inks and other such products. Following the May 2013 completion of thegreat results in eliminating workers’ willingness to accept risk, we are

new photogravure ink plant and subsequent introduction of new equipment

cultivating new hands-on safety training instructors as part of efforts toand materials, hands-on safety training utilized at DIC Group companies in

expand and firmly establish educational opportunities so that all employees

Japan was implemented here for the first time at a Group company in China.

can continue to receive this training.

Choosing from hands-on safety training equipment utilized in Japan, DIC
built equipment for the following types of accidents: (1) entanglement in a

DIC will continue with these efforts in order to realize our policy ofprioritizing safety above all else.

chain, (2) entanglement in a v-belt, (3) ignition of an organic solvent volatizedby static electricity from pellets*, (4) scattering of a liquid that has not been
depressurized and (5) chemical burn caused by an alkaline solution. DIC
installed this equipment in the hands-on safety training area at the plant in
China and initiated safety training for all employees.
Participants who utilized the training equipment told us that they
had come to understand the necessity of protective covers for rotating
components, the mechanism of static electricity generation, the importanceof connecting the ground wire and ground wire clip connection procedures,

28

etc. Their level of safety awareness regarding workplace safety management

Static electricity causes a solvent to catch fire
Entanglement in a v-belt<Hands-on safety training at Nantong DIC Color Co., Ltd.>and adherence to work procedures is higher now than ever before.

*Pellets: small particle plastic objects 3–5 mm in length

Report on Our CSR Themes <Safety, Environment, Health and Quality>

Chemical Substance Initiatives
DIC is undertaking in-house training on lawful manufacturing, importing and handling of chemical substances. Through these specialized education measures, we teach a
representative in charge of chemical product exports about the Foreign Exchange and Foreign Trade Act (Export Trade Control Order, Foreign Exchange Order), while we teach a
representative in charge of import operations about the Act on the Evaluation of Chemical Substances and Regulation of Their Manufacture, etc.; Industrial Safety and Health Act; Poisonousand Deleterious Substances Control Act; and so forth. Employees must take part in designated educational activities and then pass an in-house examination to receive a license—only
those employees holding a license are permitted to engage in export- and import-related operations. These licenses expire after two or three years, at which point the training course must
be retaken and the examination passed again. As of the end of March 2013, 967 employees have received the exporting license and 225 have received the importing license.

Product Information Provision System
DIC provides customers with SDS, MSDSplus*1 and AIS*2

International Conference

documentation created using our proprietary chemical substanceon Chemical Policy

information comprehensive management system (CIRIUS). We(I CCP) 2012 seminarcreate an SDS for each of our products, and the domestic DIC

in Korea, making aGroup has a total of about 250,000 different SDS stored in thesignificant impact both

system. Customers can view and download the SDS for a productwithin Japan and abroad.

they have purchased at any time via the Company’s website.
DIC directors and employees gave presentations to the
Chemo - Bio Integrated Management Societ y and at the

TopicsSenior Manager Yamaguchi of the Responsible Care
Department making a presentation at ICCP 2012

*1 MSDSplus: Provides information on chemical substances contained within products that are
subject to management under domestic and international legal regulations as well as industry
standards. This supplementary document provides information that is not covered in the SDS.
*2 AIS: Provides information on chemical substances contained in molded products.

DIC Receives Achievement Award from ChemoBio Integrated Management Society

DIC announced that it had received an achievement award from the ChemoBio Integrated Management
Society (CBIMS)1, a Japanese non-profit organization (NPO), in recognition of its system for the integrated
management of chemical substances in both the raw materials it uses and the products it supplies.

In 1995, DIC adopted Responsible Care (RC) as a key management precept. In the years since, the Company has taken decisive steps to address
issues related to occupational safety, the environment, health and the stewardship of chemical substances, as well as to improve related initiatives. Of
particular note, DIC uses CIRIUS, a comprehensive management system for information on chemical substances developed in-house that not only ensuresan accurate, uniform grasp of information on chemical substances in raw materials and products, but also automatically flags chemical substances coveredby laws in Japan, thereby helping to facilitate the manufacture and supply of safe products and the provision of accurate chemical substance-related
information to customers. In addition to monitoring the volume of chemical substance emissions into the atmosphere, bodies of water and the soil production
facilities from DIC Group production facilities, DIC works continuously to reduce its use of substances that exert a negative impact on the environment.
In making the award, CBIMS applauded DIC's establishment of a system for the meticulous management of chemical substances in both the extensive
range of raw materials it uses and its vast lineup of products, as well as its efforts to ensure unwavering compliance with legal requirements in North
America, Europe and elsewhere in Asia, as well as in Japan. CBIMS noted that DIC currently scores more than 80 points out of 100 in all areas—hazard

honorable certificate

assessment, exposure assessment, risk assessment and risk management—when assessed according to indicators in the Survey Regarding the Integrated Management of Chemical Substances2, used by
the organization to evaluate corporate performance, underscoring of a well-balanced approach, and that its achievement rates have risen steadily in recent years. The organization praised DIC's initiatives
for driving progress in the industry, as well as for contributing to debate on approaches to the integrated management of chemical substances both in Japan and overseas.
Going forward, DIC will continue working to reduce the impact of its business activities on the environment, provide appropriate information on pertinent chemical substances and further enhance theaccuracy of its risk assessment practices, thereby helping to minimizes risks related to chemical substances for society as a whole.
DIC Receives Achievement Award from ChemoBio Integrated Management Society
1 Established in 2004, the ChemoBio Integrated Management Society (CBIMS) is a Japanese NPO. CBIMS provides a forum for individuals and groups concerned with the assessment and management of risk
associated with chemical (including technology-related) and biological substances and/or involved in actual assessment and management, or in related R&D, to exchange views on a wide range of issues,
drawing on scientific knowledge and logic, with the aim of enhancing capabilities. The organization also publishes information for general consumption.
2 The Survey Regarding the Integrated Management of Chemical Substances is an annual survey implemented since 2003 by the Life–World Watch Center, established at Ochanomizu Women's University inTokyo to promote development, research and investigation—and to provide education and training—related to the safety and security of human life, as well as to the environment.

Report on Our CSR Themes <Safety, Environment, Health and Quality>29Regarding Implementation of WERCS (DIC Global SDS /Label Creation System)

create SDS and labels for all exported products starting in April 2014.

GHS*1 (Globally Harmonized System of Classification anddomestic affiliates.

Labeling of Chemicals) is increasingly being introduced incountries throughout Asia, and GHS-compatible SDS (safety
data sheets) and labels*2 are in increasing demand in domestic
distribution operations as well as for export products.
CIRIUS (Chemical Substance Information Comprehensive
Management System) is a specialized system specifically developedby DIC for domestic use within Japan; it has not been utilized as a
Company-wide, integrated SDS/label creation and management
system for export products. That is why DIC has decided to
introduce the WERCS system for Company exports based on laws
and regulations in destination countries that is capable of creating
SDS and labels in the target country’s language(s).
By utilizing know-how cultivated through the development of
CIRIUS and knowledge on regulations in countries throughout
Asia, we have built a WERCS system tailored to DIC specifications

Moving forward, DIC plans to expand the use of WERCS to*1 GHS (Globally Harmonized System of Classification and Labeling of Chemicals): In
accordance with globally uniform rules, this system is utilized to classify chemicals by typeand degree of hazards, display that information through labels so that it is understandable at a
glance, share safety data sheets, etc.
*2 SDS (safety data sheet): A sheet used for sharing information on the characteristics, handling
instructions and other details of chemical substances upon delivery or provision to another company.
Information contained therein covers hazards; emergency measures; precautions regarding
handling, storage and disposal; etc. These sheets were formerly known as MSDS (Material Safety
Data Sheet), but their name was changed to SDS in accordance with JIS Z7253:2012 standards.

Overseas Legal Regulations
DIC constantly gathers information on chemical substances
through overseas consultants, experts at overseas affiliatedcompanies, news distribution services, industry associations andother such sources, and adapts as quickly as possible to revisions
to and other changes in overseas legal regulations.
As a company that exports numerous products, we create
SDS and labels based on the recipient country’s laws andbased on nine months of actual in-system implementation. In thisregulations and in that country’s language(s).

way, DIC has been able to significantly enhance Asia-oriented

Green Procurement

SDS and label creation functionality in WERCS.
DIC began operation of WERCS within Japan in April 2013, andwe plan to progressively adapt it for SDS and label creation in Korea,
Europe, North America, China, and Taiwan. We will use WERCS to

When adopting new chemical materials, we obtain SDS,
MSDSplus and material questionnaire documentation andorganize it in CIRIUS to achieve integrated information
management.

Quality Management Initiatives
DIC Quality Management
In April 2012, DIC established a matrix-type organizational system that positions the Product Division on the vertical axis and Sales,
Production and Technical Administrative Divisions on the horizontal axis in order to make use of mobility as well as comprehensive, overall
strength. In accordance with this organizational style, we introduced a quality management system (QMS) based on ISO 9001 in the Product
Division to facilitate smooth inter-division collaboration.
We have achieved ISO 9001 certification at our plants and established a QMS for the Product Division, and DIC utilizes these two systems inclose conjunction to share customer feedback and other information within the matrix- type organization in an effort to achieve customer satisfaction.

FY 2012 Primary Quality Initiatives and Review
1. Number of complaints: 10% reduction compared with FY 2011.
2. Number of product returns: 10% reduction compared with FY 2011.
3. The following seven locations sustained their certification under Sony Green PartnerStandards: Komaki Plant, Yokkaichi Plant, Saitama Plant, Tatebayashi Plant, Chiba Plant,
Hokuriku Plant and DIC Epoxy (Malaysia) Sdn. Bhd.
4. As part of efforts to take precise countermeasures and prevent reoccurrence of problems,
the DIC group promoted application of “Naze-Naze Bunseki (‘Why-Why’ Analysis)”*3 tologically uncover the causes of those problems.
5. With the aim of enhancing the effectiveness of ISO 9001, DIC and DIC Graphics provided
training to its internal auditors in order to strengthen internal auditing efforts, which serve as
the foundation of ISO 9001.
*3 “Naze-Naze Bunseki (‘Why-Why’ Analysis)”: A method of repeatedly asking “why” to avoid jumping to conclusions about thefactors of a problem and to ensure the logical and complete identification of factors in order to prevent problem recurrence.

30

Report on Our CSR Themes <Safety, Environment, Health and Quality>

Changes in Numbers of Product Returns (% Compared to Previous Year)
0
ー10
ー20
ー30

ー40

ー22

ー10

ー40
ー50

'10

'11

'12

(FY)

Changes in Numbers of Complaints (% Compared to Previous Year)
20
10
0

15

ー10

ー22

ー20
ー30

'10

'11

ー10

'12

(FY)

Human Resources
Management

Striving to Improve
Job Satisfaction
WEB

http://www.dic-global.com/en/csr/stakeholder/staff.html

Goal of the DIC Group Human Resources
Management
DIC proactively makes efforts to respect the work life balance ofeach and every employee and create a workplace that can provide job
satisfaction with the aim of becoming a company in which all employees
can exercise their full potential in jobs suited to their abilities.

Respect for Human Rights
The DIC Group clearly states to remove all human rights
infringement in corporate activities and to respect diversity in the“DIC WAY Code of Business Conduct” and promotes business

Globalization of employment
DIC not only promotes global human resources development forJapanese employees but also
promotes employment of foreign
nationals among domestic college
graduates and career employment
as candidates for humanresources to become globally active. (2012 result: 4 employees)

Providing More Opportunities for Female Employees
DIS is working on "women's working opportunities promotion
activities" so that all employees with motivation can exercise theiractivities based on this philosophy.

full potential. In addition to our achievement of being one of the first

Pursuing Deeper Trust between Labor and Management

Program in 1986, we have been striving to enhance our systems to

We make efforts in cultivating trust based on dialogues, such aslabor-management councils and casual management conferences,
etc. with the aim of maintaining/improving healthy relationshipwith labor unions. Furthermore, we make efforts in sharing
management information and visions in the labor-management
councils and exchange honest opinions with labor unions.

companies in the chemical industry to introduce the Childcare Leave
support work and childcare balance, including flexible work systems,
etc., since 2007. As a result, the average lengths of service between
male and female employees have become very close. Furthermore,
we have also been continuing to provide management training for
management positions and provide individual support to help female
employees expand their work opportunities.
Through these efforts, the number of female employees who

Diversity

become qualified as candidates for management positions has

Development and Employment of Global Human Resources

employees’ working opportunities with the focus on increasing

The DIC Group has been establishing a system that enables

the number in the future. We have also been employing female

us to develop staff in local affiliates of various countries, who are
required to promote the new medium-term management plan,and employ human resources according to the business contents
regardless of their nationalities. Specifically, we have beenpromoting it in group companies in Southeast Asia in steps, followed
by group companies in China. These steps include the deployment

certainly been increasing. DIC will continue promoting female

new graduates, who are the sources of such human resources,
constantly while focusing on their talent.
Shift in the average length of service for employees*(Years)25
20
15of the human resources system for local employees and provision

10of management training to develop the next generation of top

0

management, etc. We have also been making efforts in creating
a database for national staff human resources and establishingsystematic training programs, etc.

FY2012

5
‘94

‘06

‘07
Male

‘08

‘09

Female‘10

Male 19.5 years
Female 18.1 years
Total 19.3 years‘11‘12 (FY)

Total*Average length of service for employees who are employed as of this point

Report on Our CSR Themes <Human Resources Management>

31

Promotion of Employment of Persons with disabilities
The employment rate for persons with disabilities at the endof 2012 was 2.2%, which is over the 1.8% of the legally required
employment rate in Japan. We will make further efforts to enhance
the retention rate by streamlining the workplace environment andpromote the enhancement of the workplace in which persons with

Number of employees utilizing the Childcare Leave Program(Number of utilizing employees)

40
30
20
10
0

27

28

30

‘05

‘06

‘07

40

‘08

31

30

31

‘09

‘10

‘11

24
‘12 (Year)disabilities can work even after the increase of the legally required
employment rate (2.0%) in 2013.

Promotion of Re-employment after Retirement
According to the Law Concerning Stabilization of Employmentof Older Person, DIC has not only established the system thatenables us to re-employ those up to 65 years old but also
been making efforts to secure re-employment opportunities by
also utilizing work sharing. With this system, re-employment
employees have been utilizing their previous experiences andexercising great skills and expertise that they have cultivated.

Initiatives to Achieve Work-Life Balance
DIC’s “Work and Childcare Balance Support Program”
stipulates a number of systems that more than satisfy legal
requirements. We continue to make various improvements in theoperation so that they can be easily utilized according to each
employee’s situation. In addition, we have been operating thesystem, in which an employee can select the course depending

Work and Childcare Balance Support ProgramChildcare Leave
Program

The maximum length of leaves is “until the child becomes 2 years
and 6 months old,” which is 1 year more than the legal requirement.

Childcare While
Working Program

There are flexible work systems available, such as the short working hoursystem for childcare that allows employees to shorten the working hours
up to 3 hours until the child finishes the third grade as well as the systemthat allows employees to choose staggered work shifts for childcare.

Rules concerning returning to one’s The rule specifies that the person will return to her
previous (or equivalent) position original (or equivalent) position after leave.
The system allows an employee on childcare leave

Establishment of the without pay to borrow part of her bonus.
Economic Support There is an internal loan system to resolve financial
concerns in case of large expenses for infertility
Systemtreatment or childcare facility, etc.

Information sharing
to promote program
participation

The website in which DIC’s concept on work andchildcare balance support and the summary andusage of various systems are clearly explained can befound on our intranet.

Acquisition of the “Kurumin” Markon relocation in the human resources system for generalemployees, since 2002. We have newly established the “relocation
limiting system for management positions” in 2012 for people
in management positions, for whom relocation is difficult due to

DIC is acknowledged as ”FY 2008
A c c r e dite d Employer s” by t he
Ministr y of Health, Labour andWelfare, as a company that actively
drives the Measures to Support theDevelopment of the Next Generation.

childbirth, childcare, and nursing care, etc., so that they can alsoachieve work and life balance.
VOICE

Employee’s voice

Creation of employment opportunities for persons with handicaps promoted in the DIC Central Research Laboratory
There are a number of people with various job types in addition to research and development working in the DIC Central Research Laboratory withthe aim of achieving stable operation. We commission the management of the massive garden and cleaning of the inside and outside of the building
to an external company. Since the average age of workers has been growing, we have started an initiative of employing persons with handicaps
in cooperation with the local HelloWork, special needs schools, centers for employment of persons with disabilities, and external contractors as a
new measure to secure human resources. We continue supparting their employment by sincerely responding to each and every person in order tohelp them work in DIC in a stable manner even after their employment. Thanks to their efforts, the beautification of the laboratory has been further
improved, receiving many words of appreciation by many customers who visit the premises. We have also been certified with and awarded a “friendly
office” by Chiba prefecture as a company that promotes employment of persons with disabilities in recognition of these efforts.

32

Report on Our CSR Themes <Human Resources Management>

DIC Central ResearchLaboratory General Affairs GL

Yasuo Kido

Establishing Comprehensive Mental Health Measures

Training system

Mental Health Measures“enhancing field capabilities,” which are required in promoting

DIC training is based on practical curricula with the aim of

The DIC Group has appointed a specialist as the industrial

businesses, and business strategy-based “acceleration of changes.”

doctor in charge of mental health in 2012 with the aim of enhancing

With training by department, we promote the re-establishment

the mental healthcare promotion system. Furthermore, we haveof the training system required for each department/job type. We

been conducting line care training and self-management training insystematically established human resources development programs

order to prevent mental illness through stress control improvement.

in the Production Department and Technology Department in 2012

680 employees participated in the line care training and 376

and have been conducting training.

employees participated in the self-management training in 2012.

The “Global Challenge Program,” which is global human resource
development training, targets younger employees and includes not

Employment/development of Human Resources

only languages but also various curricula, such as cultivation of global

Performance-Based Employee Qualification System and Fair Treatment

We have not only increased the number of overseas trainees from Japanminds, understanding of different cultures, and mental toughness, etc.

In order to enable all employees to exercise their full potential

to overseas group but also introduced the Reverse Trainee System, inin jobs suited to their abilities and to fairly reflect this on their

which overseas group company staff come to Japan, in order to develop

treatment, DIC has completely unified the qualification system

practical global human resources through human resource exchanges.

regardless of the job type or education. For promotion selection

Overall image of the HR evaluation systemfor employee qualification, fair selection opportunities are

so that we reflect the transparent and legitimate evaluation for
their treatment.
VOICE

Carrierdevelopment sheet

disclose all the contents including reason of evaluation to them,

Individual

Process
evaluation

we give the feedback of evaluation result for the employee, we

Execution of duties

a system based on “management by objective (MBO).” WhenInterview

their job satisfaction. The HR evaluation system has introduced

Setting of individual targets

to be appropriately evaluated and reflected in a timely manner for

Settingof division
targets

it important for skills and performance exercised by each person

Superior

Semiannual evaluation Annual evaluation

selection tests based on objective standards. We also consider

Feedback
Results
evaluation

given to all employees with motivation and skills by conducting

Bonus

SalaryPromotion

Skills development
Appropriate appointment→ parts are implemented on the intranet
Target setting, evaluation, feedback, and preparation of the careerdevelopment sheet are implemented on the intranet.

Employee’s voice

I really feel the joy of working
After graduating from college, I started job hunting with the focus on companies that would enable me to work in a global environment,
hoping to utilize my language skills and experience of studying abroad. I was attracted by DIC’s sophisticated technologies, the number ofoverseas group companies, and the great scale of their worldwide share in a specific area and decided to join the company.
After the employment, I was assigned to the Finance Department and have been mainly in charge of confirming the balance of foreign
currency deposits, money transfer procedures to overseas, and calculation/analysis of financial reports submitted by group companies in
the China region. With my work, I need not only acquire accounting knowledge but also understand financial knowledge, such as foreign
currency exchange and risk hedging, etc. I was having trouble just studying the special terminology at first. However, now that I havegained a certain level of knowledge, work is exciting and fulfilling every day. I will make efforts to become part of the company’s force assoon as possible by conducting my work as well as having awareness and responsibility as a member of society.

Finance Department

Xin Zhoo

Report on Our CSR Themes <Human Resources Management>

33

Supply Chain Management

Globally Expanding CSR
ProcurementWEB

http://www.dic-global.com/en/csr/stakeholder/partner.html

Basic Concept of Supply Chain Managementby the DIC GroupThe DIC Group has stipulated the “ DIC Group CSR

included responses to the biodiversity conservation and conflictminerals, etc. to enhance the contents. We have also changed theanswer sheet of self-evaluation questionnaire from the existing 3
levels to 5 levels to enable suppliers to reply to questions more

Procurement Guidelines” in order to fulfill its social responsibility

easily.

in the overall supply chain and considers that its deployment

CSR Procurement Promoted by the Overall
Supply Chainis promoted throughout the supply chain with each supplier
understanding these guidelines.
We will revise part of the said guidelines and conduct

In 2012, we also started proactively promoting efforts overseas

questionnaire studies for guideline achievement status by visit toin order to widely promote “the DIC Group CSR Procurement

deepen the mutual understanding.

Guidelines” among suppliers. We visited suppliers in China,
and investigated their status t based on the self-check sheet we

Promotion of CSR Procurement

conducted with them We also held CSR procurement seminars
with DIC subsidiaries in Southeast Asia. We also started

Based on the “DIC Group Supply-chain CSR Deployment

distributing the said guidebooks to suppliers there through each

Guidebook” and the “DIC Group CSR Deployment Self-checksubsidiaryThis year, the actions is more advanced to investigate

Sheet” for self-evaluation, we have investigated the CSR

the status and providing feedback to the suppliers in overseas.

procurement promotion status in over 400 suppliers and provided

Through these efforts, we will globally establish the DIC

feedback since 2010. We visit some of the suppliers, deepen the

CSR Procurement Guidelines through the supply chain of DIC -mutual understanding while confirming the CSR activity status,

overseas subsidiaries

and propose or further development. Through this successive– overseas suppliers

actions, we also gained valuable information on the direction ofand continue striving to

CSR promotion.

improve the CSR level

This year, We have thoroughly revised the said guidebook and

COMMENT

with suppliers.

CSR procurement seminar in Bangkok

Stakeholder’s remark

We work on CSR along with the community
We are a UV monomer manufacturing/selling company, which is a joint company with DIC and with a 60% investment by TOAGOSEI CO., LTD. We
also supply ink resin raw materials to the DIC Group. Since the CSR introduction in 2011, we had faced troubles following it to the Chinese regulations etc(including compliance with Chinese laws, converting energy into CO2 according to the Chinese system, and so on.). However, the internal CSR awarenesshas improved now. We have also been implementing social contribution activities, such as visiting to welfare schools and cleaning of public facilities, etc.
and enhancing the ties with the local community.
Thanks to DIC explaining the CSR global procurement policy for the DIC Group in 2012, we re-acknowledged the width of DIC’s scope that conducts
business worldwide. We will continue to comply with the explained guideline policy and work on maintaining quality and stable supply in the future.

34

Report on Our CSR Themes <Supply Chain Management>

TOA-DIC Zhangjiagang
Chemical Co., Ltd.
Director, General Manager

Mr. Ichiro Igarashi

Business Models to
Improve Societal Issues

Theme to Display Originality

Establishing a Solutions
BusinessWEB

http://www.dic-global.com/en/csr/stakeholder/customer/satisfaction.html

Capturing Changes in Social Needs

being created, such as sophistication of batteries and weight
reduction of automobile bodies, etc. in response to the trend

It is the cornerstone of DIC business that we propose

of electric vehicles, etc. Start researching the technical issues

individual solutions by combining multiple products andis our keynote. Based on the research, we promote technicaltechnologies when customers face problems. We also consider

development in order to propose specific solutions, such asthat it is important to group individual customers’ problems andmaterials to increase the battery capacity, technology to enhance

capture the changes in social needs in the background. We

the CFRP strength, and hard coating material for plastic, etc.

respond to changes in social needs based on the current market.

Development of nano-pattern materials and printed electronics

On the other hand, we also focus on activities through which wematerials in the information/communication area are based on

extract social issues based on mega-trends being developed on asocial needs for reduced size, thin, and/or flexible electronic

global level in order to anticipate future social needs.

devices due to the sophistication of information network society.

Promotion of Social Needs-oriented Business
Activities
We are facing a number of evolving issues on a global level,such as global warming, fossil fuel resources running dry, andexploding population, etc. Accordingly, responding to theseWe will also proactively promote business proposals that are
unique to DIC in the package & graphics area and life & living
area in the same manner.

In Order to Expand Solution Proposal
Possibilities

issues, CO 2 reduction, development of clean energy, andThe nature of such social needs changes with time. There isenhancement of environmental conservation regulations, etc. area limit for DIC alone to follow and supplement these changes.

raised nowadays. A number of measures from all perspectives

Therefore, we also proactively promote technology exchanges

in order to solve these issues are requested. As a chemicalwith companies that exist closely to one another in the value chain

manufacturer, what kind of contributions we can make to help

with us to promote our technologies. The scope and possibilities

solving these issues? We focus on marketing activities toof solutions that the DIC Group can propose to society will further

answer this simple question. For example, there are new needs

expand through cooperation with promising companies.

VOICE

Employee’s voice

Capturing social issues and requests of customers in an accurate and speedy manner
DIC has utilized a wide variety of technologies in various products to respond to social needs. In 2012, we shifted
into a matrix-like organization, in order to making further efforts in the optimization of both market and productperspective. By accurately capturing the changes and new trends in the global market and always be sensitive tosolve the emerging social issues with the potential of chemicals, we will raise our marketing capabilities further.
We will continuously promoting activities based on market and consumer-oriented needs in speedier manner, by
supplying the best suited solutions, with our comrades who are active throughout the world, with the aim of achieving“color” and “comfort” in our lives ,Life & Living
Marketing Department
Senior Manager

Kazuya Ideta

Report on Our CSR Themes <Business Models to Improve Societal Issues>

35

New Technology Development
and Value Creation

Proposing Solutions
Utilizing Basic Technologies
WEB

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

New Technology Development and Value Creation
The DIC Group proactively promoted the development of next generation products/new technologies that lead to sustainable growth andpromotes the development of high-value added products by utilizing basic technologies, such as organic molecular design, polymer design,and dispersion, etc., and various component technologies, such as synthesis, composition, and surface treatment, etc. We focus on various
domains, such as displays, electronics, digital printing, and packaging, etc., by integrating technical resources of the entire group with the aimof developing original new products/new technologies with competitive advantage.
DIC Group’s core technologies/basic technologies and “target markets”

Digitalprinting

Target markets

PackagingCore products
Optronics materials

Electronics

High-performancecomposites

Packaging materials

Basic
Organic synthesis technologies Polymer synthesis

Coatings

Crystallization Organic molecular Polymer
Resin curing
designdesignLiquid/liquid dispersion
ColoringCore
technologies
Optics andDispersion Solid/liquid dispersion
Adhesioncolor
Applicability
assessment
Compounding formulation
Surface treatment
Film formation

Displays

Coating/printing/molding

Adhesive materials

Molding

Rheology

Sensory materials

Surface protection
materials

Liquid inks

Infrastructurebuilding

Livingenvironments

EnergySpecific efforts
The DIC Group is making efforts in developing water-based and solventless materials as well as various environmentally-conscious products which can be utilized
to create products with consideration for the environment in various fields, such as printing, electronic/electric products, and automobiles, etc. that use our products.

Various inks and adhesives

36

been focusing on deploying adhesives for food packaging in India

With gravure inks, we promoted the development ofand Russia, etc. with hybrid and solventless environmentally-

environmentally-conscious reverse printing lamination ink without

conscious products. We have also developed low migration resin

toluene and MEK by considering not only the performance andthat corresponds with European laws and regulations and havecost but also reduction of raw material supply risks. We havebeen promoting its deployment in the European region.

Report on Our CSR Themes <New Technology Development and Value Creation>

In Sun Chemical (U.S.) they are shifting to non-cobalt dryer forand less waste, etc. Furthermore, we will continue to conduct

sheet-feed printing inks, focusing on the improvement of printing

environmental assessments and observe the trends for legal

performance.

requirements and environmental measures throughout the world
in order to continue designing products that comply with chemical
substance regulations in each country.

Electronic/electric and automobile electric components
With organic pigments, we have not only been focusing on further
performance improvement of green pigments, for which we havebeen highly acclaimed in the use of color filters for LC panels, butalso developed a new blue pigment product. With fluorine chemical
products used as additives for optical materials, we have focused on
the development of products without PFOA, which is concerned to have
impact on people and the environment, and completed a product lineup.
With industrial adhesive tape, the glass protection film for smartphones
and the water-resistant tape were utilized in many models, expanding
the results. With polyphenylene sulfide (PPS) compounds, we havedeveloped a high-fluidity and high-toughness type and insulated type with

The business volume of environmentally-conscious products
as a percent of all products in 2012 was 57%.

Consideration for Life Cycle Assessment (LCA)
In recent years, we have been required to quantitatively
comprehend the consumption volume of exhaustible resourcesand exhaust volume of substances that impact the environment inproduct and service life cycles. DIC has also been considering LCA
initiatives to comprehend the environmental aspect of our products.
As part of the first step, we conducted the LCA investigation in2012 by focusing on polyphenylene sulfide (PPS) resin, which is ahigh thermal conductivity for electric components in hybrid vehicles, etc.

material for electric components for automobiles. We calculated

Promotion of Environmentally-conscious Products

effect gas volume in each process from harvesting of raw

We will strive to develop new products and technologies that
contribute to society and increase the ratios of environmentallyconscious products with a great awareness for environmental
consideration. We will reduce the usage of toxic substances,promote the usage of products with less toxicity, and promote thedevelopment of recyclable products and production processes
with considerations for energy conservation with enhanced safety
VOICE

the fossil fuel resource consumption volume and the greenhousematerials, manufacturing of PPS resin, processing of the resin into
components, and installation on automobiles to disposal/recycling.
We will consider the response while paying close attention to social
movements, such as GHG Protocol Scope 3, etc., in the future.
*1 GHG Protocol: Standard for the calculation and reporting of Greenhouse Gas (GHG)
emissions*2 Scope 3: GHG emissions indirectly made by a company throughout its supply chain in
manufacturing, transportation, business trips, and commuting, etc.

Employee’s voice

Upon developing a blue pigment for color filters
Color filters are necessary components to display colors in LC displays and use pigments as color materials.
We have developed and commercialized a blue pigment for color filters that simultaneously achieves brightness andcontrast at a high level by utilizing DIC’s unique pigment processing technology. Brightening helps reduce electricity
consumption of LC displays, and high contrast helps improve the image quality of LC displays. The pigment has beenwell-received by customers. We will continue integrating the potentials of the DIC Group and strive to develop “onlyone” pigment for color filters.

Fine Synthesis Technical Division
Color Materials R&D Group

Ikuro Kiyoto

Report on Our CSR Themes <New Technology Development and Value Creation>

37

Harmony with the Community
and Contribution to Society

For Colorful andComfortable Lifestyles
WEB

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

Concept of Social Contribution by the DIC Group
Based on the Guidelines for Social Contribution Actiivities, which was stipulated in 2009. The DIC Group promotes activities with the focus
on establishing a healthy relationship with the society

Guidelines for Social Contribution Activities
The DIC Group, based on its Management Vision: Color & Comfort by Chemistry will engage in social contribution activities in thethree areas of business activities, culture and education, and communities and societyWEB

http://www.dic-global.com/en/csr/society/guideline.html

Highlights of Social Contribution Activities
Color Universal Design in interiors andsigns in a sports club

innovations in colors in the interior and signs, etc. that enable

Based on the management vision: “Color & Comfort by

security. Considerations for colors are given in a number ofChemistry,” the DIC Group takes initiatives in Color Universal

places, including steps in stairs and rails using colors that are

the Renaissance facility users to enjoy sports with a sense of

Design (UD). DIC Color Design Inc. provided color supervision
upon the redesigning of the “Sports Club Renaissance, Makuhari,”
which is the original branch of RENAISSANCE INC. that runs
sports clubs throughout Japan. DIC Color Design Inc. utilized
the color investigation that was conducted in existing branches
prior to the redesigning from the perspective of UD. You can see

COMMENT

Exterior of Renaissance, Makuhari

Passage within the facility

Stakeholder’s remark

Facility development with the aim of achieving security and safety of users
The Makuhari branch is the first branch of Renaissance and is a facility that we have special feeling toward this branch. Upon theredesigning, we strived for a facility that can be a model case in all perspectives, such as contributions to society and environmental
considerations, etc., in addition to enhancing equipment and items. Especially, the Makuhari branch is rooted in the community, and manyelderly people also utilize our facility. Through this effort, we have learned that there were actually people who would have difficulties with thecolors that we would otherwise have not paid attention to. In addition, we have truly learned the importance of not only producing a unified
image in color design but also using color schemes that correctly communicate necessary information by considering the functionality of the
facility and safety of users. We hope to widely spread this experience in the company and utilize it in the future facility development.

38

Report on Our CSR Themes <Harmony with the Community and Contribution to Society>

RENAISSANCE INC.
Facility Development Department

Ms. Itsuwa Hosaka

Science teaching in elementary schools

easy to recognize, signs for toilets using colors that are easy toclasses are closely connected to life.” These lessons with the title ofdifferentiate, and signs using color schemes that stand out, etc.

“Making Life Colorful through Science” utilize the characteristics of DIC’s
businesses by including experiments involving planography and simple

Career Education Activities

pigment synthesis. This year, we held lab lessons targeting approximately

In recent years, the educational field is strongly required toparticipate in corporate career education activities. DIC focuses oncareer education in a wide scope, including accepting interns fromcolleges of technology in plants throughout Japan, accepting workplace
experience, practical training, and tours from nearby schools in the
Chiba Plant, Hokuriku Plant, Kashima Plant, Komaki Plant, and Saitama
Plant, etc. providing lab lessons in municipal elementary schools in the
Itabashi Ward and Matsudo by Tokyo plant and headquarters, providing
educational support classes to Chiba Prefectural Sakura High School
and Sakurahigashi High School close to the DIC Central ResearchLaboratory, and visits by Chairman Sugie throughout Japan to giveclasses as part of Japan Association of Corporate Executives activities,
etc. Children learn the significance of working and the fact that theirstudies lead to social lives by learning various ways of living and asense of values by communicating with many different adults. DIC willcontinue to provide career education opportunities to children who willlead the future.

400 sixth grade students from 5 schools, including Matsudo municipal
Kurigasawa Elementary School, Samukazedai Elementary School, andMatsuhidaidaini Elementary School, as well as Hasune Elementary
School and Hasunedaini Elementary School in Itabashi Ward. We willcontinue holding these lablessons by positioning themas part of important activities
for “ Har mony with theCommunity and Contribution
to Society,” which is one of
the CSR themes.

Lab lesson

Kawamura Memorial DIC Museum of Art
DIC operates Kawamura Memorial DIC Museum of Art in
Sakura, Chiba as part of the CSR activities.
This museum, which opened in 1990, celebrated its 23rd
anniversary in 2013. The museum displays/stores artworks froma wide variety of genres, including impressionist art, such as

Lab Lesson Activities

Rembrandt, Monet, and Renoir, etc., Western modern art, such as

In response to children moving away from science, which has

Picasso and Chagall, etc., American art from the late 20th Century,

become a social issue, DIC provides lab lessons to public elementary

and Japanese folding screen paintings, etc. The museum also

schools with the aim of enabling them to experience that “sciencehosts special exhibitions based on its collections.

COMMENT

Stakeholder’s remark

Promoting career education that arouses intellectual curiosity and inquisitive minds
The DIC Central Research Laboratory has raised educational support in the CSR policy and has also been supporting “Sakura
Academia,” which is a cultural class that started in 2011 in our school. In this class, students visit laboratories to hear lectures byleading researchers with the aim of not only arousing students’ intellectual curiosity and inquisitive minds but also encouraging
them to strive to realize themselves and have career awareness. In 2013, our school was specified as a super science school (SSH)by the Ministry of Education, Culture, Sports, Science and Technology with the aim of developing human resources in the scientifictechnology field. Upon this, DIC dispatched an operational mentor as a representative of a local company. We are always deeply
appreciative of DIC’s stance to proactively contribute to the local educational industry through the scientific technology field.

Chiba Prefectural Sakura High School
Vice-Principal

Mr. Kazuomi Koshiba

Report on Our CSR Themes <Harmony with the Community and Contribution to Society>39

Kawamura Memorial DIC Museum of Art

In addition, its garden, which is almost 25 acres where visitors canyears old (at the time of measurement start) and measured the effectenjoy seasonal plants and flowers, is open to public free of charge.

until February, 2013. As a result of the analysis, we were able to

We strive to not only conserve woodlands but also enlighten visitors

confirm that Spirulina is effective in the growth of height of children

with the importance of conservation by establishing a satellite for the

who took Spirulina. This shows that Spirulina is effective in the

Chiba Biodiversity Center,

chronic nutrition deficiency due to lack of micronutrient.

etc. We provide the field in

On the other hand, we also confirmed the decrease in the malaria

the garden as the venue

onset rate among children who took Spirulina. In addition, we also

and provide support forreceived reports on the effect on children’s skin and hair, resistancelocal events (Sakura Autoagainst common cold, and increased energy, etc. through interviews

History Forum in May andwith their mothers. Needs for continuous Spirulina distribution is

Niwanowa Arts & Crafts

Nature walking path

Fair, Chiba in June, etc.).

Harmony with Society through Spirulina
The DIC Group is the world’s largest provider of the cyanobacteria
called “Spirulina,” which includes over 50 types of nutrients, suchas vitamins, minerals, and amino acids. DIC concluded a support
agreement with the Alliance Forum Foundation with “Spirulina
Project” in 2009 to eradicate hunger and improve nutrition promoted
in Africa/the Republic of Zambia by the foundation.
We started the project to measure the impact of the Spirulina
supplies in the village of Kanakantapa in the Republic of Zambia, inwhich most of the population depends on income from agriculture, inorder to promote the understanding of the effectiveness of Spirulina

increasing in the area.

Support for Reconstruction after the Great East Japan Earthquake
DIC is participating in the IPPO IPPO NIPPON Project, aproject launched by the Keizai Doyukai (Japan Association of
Corporate Executives) to aid reconstruction in areas devastatedby the Great East Japan Earthquake. Over the course of thisfive-year endeavor, the Association will continue to appeal for
corporate and individual donations, which will be used to provide
support, including to schools, with the aim of fostering humanresources and revitalizing local economies. DIC has resolved to
donate ¥5 million annually to the project beginning in 2012.
DIC will continue to take an active role in efforts aimed atrehabilitating quake-ravaged regions.

with the Ministry of Health to support people’s health in June, 2012.
We targeted children with the average age of 1.5 years old to 3

Keizai Doyukai:IPPO IPPO NIPPON
Project

Children in Zambia having lunch

40

Report on Our CSR Themes <Harmony with the Community and Contribution to Society>Communication with
Stakeholders

Promoting Communication andInformation DisclosureWEB

http://www.dic-global.com/en/csr/stakeholder/customer/satisfaction.html

Basic Concept ofCommunication
Promotion
The DIC Group considers communication with stakeholders
is really impor t ant and makes ef for ts through var ious
opportunities,such as dialogues, exhibitions, website, and event,etc. We strive to gain sufficient understanding of stakeholders’expectations in order to reflect it to our actual business. In
addition, we will also enhance our awareness on the concept ofTokyo Plant tour by Benesse Corporation

stakeholder engagement, in a manner that is consistent with ISO
26000.

Ties with Customers
With the aim of enhancing ties with customers, the DIC Groupestablished a number of communication opportunities in 2012.
In October, we displayed our maijor products and justCSR study session with Artron (China)developed products in the package field in the “Tokyo Pack 2012,”
and made proposals to many visitors.
Furthermore, in terms of communication through the website,
we provided solutions to over 3,500 inquiries within and outside ofJapan by introducing the optimal DIC products and technologies.

Ties with Shareholders and Investors
The DIC Group strives to make fair, appropriate and timely disclosureof inf or mat i on, c lo s ely
communicate withshareholders and investors,
and take their remarks andrequests into consideration on

Promoting Understanding through CSR

our business management.

DIC offered study session on DIC’s CSR initiatives upon

For institutionalrequest by our customers when they have plant tours. We

investors in Japan, we nothave strived to further lead to the improvement of customer

only held two operating

trust through the opportunities to help them understand DIC

results briefings per year

Group’s activities for the environment and quality assurance with

but als o par t ic ipate dcompliance and efforts throughout the supply chain.

in IR conferences andsmall meetings and held

November, 2012: Operating results briefings

February, 2013: Tokyo Stock Exchange IR Festa

Report on Our CSR Themes <Communication with Stakeholders>41plant tours, etc. in order to proactively enhance communication. For

Color Seminar at the Takamatsu City Officeoverseas institutional investors, we held IR meetings,. in Hong Kong

In June, 2013, DIC held a Color Universal Design Seminarand Singapore in Asia and New York, Boston, and San Francisco infor employees of Takamatsu City Office in Kagawa Prefecture.

North America in order to enhance communication.

Takamatsu established the Universal Design (UD) Promotion

In addition, for individual investors, we participated in the “Tokyo

Office in April, 2012 with their basic principle of “highly respecting,Stock Exchange IR Festa” (event aimed for communication withsupporting minds with hospitaility “At the seminar, DIC employees

individual investors) as well as company introductory sessions for

introduced UD color proposals , regardless of handicaps, to live

individual investors. We have also been making efforts in enhancing

comfortably, and UD examples now available in Takamatsu in front

our information provision initiatives through our website in order toof 130 participants. Later the introduction of the brand “DIC200” that

promote understanding for DIC Group’s business activities.

have been approved by the Color Universal Design Organization has

Remarks from shareholders/investors gained through such
communication are provided to the management as necessary.

been done, and offered
simulation experiencesusing filters simulating
par tial color blindness,
attracting par ticipants’interests.
Scene from the simulation experience

Communication with Society
Kawamura Memorial DIC Museum of Art Welcomes ASEAN
Ambassadors, Embassy Employees and their Families
On November, 2012, members of the ASEAN Committee inTokyo （ACT）, comprising the ambassadors to Japan of the 10

With the aim of further rejuvenating communication with
employees, the DIC Group also promoted various efforts in 2012.

Association of Southeast Asian Nations (ASEAN) member states*,

We held two operating results briefings for employees within theas well as embassy employees and their families, were invited

year in order to promote their understanding of the current status forto participate in ACT FAMILY DAY 2012, which was held on thethe DIC Group and management policy. We also held seminars for

multipurpose athletic field of the Kawamura Memorial DIC Museum

employees on “Spirulina Project,” and establishing communicatingof Art, in Sakura, Chiba.

opportunities through two seminars by employees of the Kawamura

Under bright sunshine, the approximately 350 guests took part inMemorial DIC Museum of Art Furthermore, we also promoted groupa variety games and workshops. Other events organized to promote

work with the theme of social issues in new employee training as

international interaction included a lunch featuring dishes frompart of CSR enlightenment efforts and established opportunities foreach country, which were laid out on tables in tents set up for each

employees to learn the ties between business activities and social

embassy group.

issues.

The Kawamura Memorial DIC Museum of Art’s curator gave
three guided tours, enabling approximately 100 of the attending
ambassadors, their spouses and embassy employees to fully enjoy

Concerning Conflict Minerals
DIC Group is working on Conflict Minerals issue seriously, andthe facility’s extensive

shows the following “Basic Policy concerning Conflict Minerals” asexhibits.

follows. DIC Group will be engaged in this issue jointly with the* The 10 member states of ASEAN
are, in alphabetical order, are ;Brunei, Cambodia, Indonesia,
Laos, Malaysia, Myanmar, thePhilippines, Singapore, Thailand
and Vietnam. The association’s
headquar ters are in Jakar ta,
Indonesia.

suppliers, through our supply chain.
Basic Policy concerning Conflict Minerals
The DIC Group refrains from using gold, tantalum, tungsten and tin that are classified as"conflict minerals," that is, minerals mined in conditions of armed conflict and abuse in
the Democratic Republic of the Congo (DPR) and its neighboring countries. Moreover,
The curator gives a guided tour of the museum

42

Ties with Employees

Report on Our CSR Themes <Communication with Stakeholders>should any raw materials purchased from third-party suppliers be found to containconflict minerals, the DIC Group will immediately terminate procurement thereof.

with DIC CSR Report 2013

ISO26000 Comparison Table
Core subjects

No.

Subjects

6.2

Organizational Governance

Organizational
Governance

6.3.3
6.3.4
6.3.5

Human Rights

LabourPractices

6.3.6
6.3.7
6.3.8
6.3.9
6.3.10
9.4.3
6.4.4
6.4.5
6.4.6

Community
Involvement
andDevelopment

P28
P33
P09
P11
P25-27

5. Human development and training in the workplace
1. Prevention of pollution

6.5.4
6.5.5
6.5.6
6.6.3

P28
P29
P36-37
2. Sustainable resource use
3. Climate change mitigation and adaptation P25
4. Protection of the environment, biodiversity and restoration of natural habitats P39-40
P19
1. Anti-corruption

6.6.4
6.6.5
6.6.6
6.6.7
6.7.3
6.7.4

ConsumerIssuesTable 2
Table 2
P04-05
P06-07
P14-15
P16-17
P18
P19
P20
P35
P41-42P31
1. Due diligence
P34
P42
2. Human rights risk situations
Table 2
3. Avoidance of complicity
P18
P34
P42
―
4. Resolving grievances
P31
5. Discrimination and vulnerable groups―
6. Civil and political rights
P40
7. Economic, social and cultural rights
Table 2
8. Fundamental principles andP18
rights at work
1. Employment and employment relationship P31-33
2. Conditions of work and social protection P32
P31
3. Social dialogue
P10
4. Health and safety at workP22-24

6.4.7
6.5.3

The
Environment

Fair Operating
Practices

Reference page―
2. Responsible political involvement
P19
3. Fair competition
4. Promoting social responsibility in the value chain P34
P19
5. Respect for property rights
P29-301. Fair marketing, factual and unbiased
information and fair contractual practices P09
2. Protecting consumers' health and safety P22-24

6.7.5
6.7.6

3. Sustainable consumption
4. Consumer service, support, andcomplaint and dispute resolution

6.7.7
6.7.8
6.7.9
6.8.3

5. Consumer data protection and privacy
6. Access to essential services
7. Education an awareness1. Community involvement

6.8.4

2. Education and culture

6.8.5
6.8.6
6.8.7
6.8.8
6.8.9

3. Employment creation and skills
4. Technology development and access
5. Wealth and income creation
6. Health
7. Social investment

P38
P36-37
P29
P30
P21
―
P38
P40
P39

P42
P40
P40

Related efforts
The DIC Group’s Corporate Social Responsibility Program
CSR themes (2012)
Top message
Medium-term management plan,
The DIC Group’s CSR Activities
RC Targets and Achievements of Major RC Activities
Corporate Governance
Towards Fair and Transparent Corporate Activities
Seeking to Reduce Disaster Risks
Establishing a Solutions Business
Promoting Communication and Information Disclosure
Respect for Human Rights
Globally Expanding CSR Procurement
Conflict minerals
To continue being a “proud corporate citizen which is trusted globally”
Supporting the UN Global Compact as a global chemicals manufacturer
Globally Expanding CSR Procurement
Conflict minerals―
Diversity―
Harmony with Society through Spirulina
To continue being a “proud corporate citizen which is trusted globally”
Supporting the UN Global Compact as a global chemicals manufacturer
Striving to Improve Job Satisfaction
Initiatives to Achieve Work-Life Balance
Pursuing Deeper Trust between Labor and Management
Special Topics: Yaita
Basic Approaches to and Initiatives in "Environment, Safety, and Quality"
Occupational Safety and Health Initiatives
Held a meeting for personnel in charge of safety in production plants in the DIC China region
Responsible care initiatives in each DIC plant
Employment/development of Human Resources
Special Topics: Ink/adhesive for food packaging
Special Topics: Epoxy resin/curing agent for electronic substrate
DIC Group Performance
Reducing Emissions of Chemicals into the Environment
Reducing Environmental Impact on the Air, Water and Soil
Reduction of Industrial Waste
Responsible care initiatives in each DIC plant
Initiatives with chemicals
Proposing Solutions Utilizing Elemental Technologies
Initiatives Related to the Climate Change Problem
Kawamura Memorial DIC Museum of Art
Program to Promote Compliance
System to maintain compliance―
Main contents of the DIC WAY Code of Business Conduct
Globally Expanding CSR Procurement
Main contents of the DIC WAY Code of Business Conduct
Initiatives with chemicals
Special Topics: Ink/adhesive for food packaging
Basic Approaches to and Initiatives in Environment, Safety, and Quality
Occupational Safety and Health Initiatives
Held a meeting for personnel in charge of safety in production
plants in the DIC China region
Color Universal Design in interiors and signs in a sports club
Proposing Solutions Utilizing Elemental Technologies
System for Provision of Information for Products“WERCS” Operation
Quality Management Initiatives
Initiatives to Ensure Information Security――
Basic Concept of Social Contribution
Harmony with Society through Spirulina
Career Education Activities
Lab Lesson Activities
Kawamura Memorial DIC Museum of Art―
Color Seminar at the Takamatsu City Office―
Harmony with Society through Spirulina
Support for the Great East Japan Earthquake

ISO26000 Comparison Table

43

Third-Party Opinion
for CSR Report 2013

The Japan Research Institute, Ltd.
Counselor, Head of ESG Research Center

Eiichiro Adachi

Conducts industrial surveys and corporate evaluations in connection with corporate social responsibility
focused on measures to address environmental issues. Provides financial institutions with corporate
information to be used for socially responsible investment (SRI) and environment-focused financing.
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 KEIZAI DOYUKAI (Japan Association of Corporate Executives). He was Japan expert for the ISO
26000 working group from March, 2005 until May, 2009. Author of such books as "An Introductory Guide
to Environmental Management" and "Environmental Problems Illustrated for Businesses."

I think that the changes of the DIC Group in the last several
years can be summarized into 3 points:

the examples in the future. I was interested in the mention of theirproprietary Chemical Substance Information Comprehensive(1) Overseas ratio in business is further increasing

Management System (CIRIUS). Furthermore, I also focused on(2) Aggressively increase the business categorized in finethe initiative in which they are starting to establish a system tochemicals and application materials(3) Profit-oriented awareness has been established within
the group

attach SDS to respond to GHS. I hope that DIC will disclose theprogress of chemical substance replacement in products from theperspective of hazard assessment.

(1) The Top Message states that the awareness is “still at the(3) I felt that it would be nice for DIC to discuss their self-

initial stage of CSR promotion in the global perspective, including

awareness on what kind of steps CSR promotion follows to leadoverseas subsidiaries.” In addition to “Basic Policy for Internal

to the improvement of corporate values. Although I was able toControls” and “Code of Business Conduct” (to be revised incomprehend the steps in which they will respond to customer

2013 in order to make it easier for multinational employees todemands of energy conservation, resource conservation, and cost

understand), I hope that they also would significantly expand thesaving with environmentally-conscious products and services, I

information disclosure of overseas examples in the CSR report on

think chronological target setting and information disclosure would

the “policies/systems,” “initiatives,” and “results/achievements.”

be desired for the business volume of environmentally-conscious(2) It is expected that the domain of the issue to alleviate

products as a percent of all products. In terms of the working

environmental impact as well as the domains that contribute to

women promotion activities, they have set the difference betweensocial issue solutions will also change. One example would be

the average lengths of service for male and female employees asthat with LC and PPS, I expect that considerations upon productthe KPI. I think that their achievement in recent years is notable,

disposal will be necessary due to the environmental impact, while

however, I also hoped that DIC would further expand this issue andconventional type of printing ink places a weight on its printing

analyze what kind of effects this achievement is creating.

process.

Finally, seeing article that “they offer study session on DIC’s

I liked the style in which they raised “social issues” in the special

CSR initiatives upon customers’ plant tours,” I felt as if I have

topics, stated “what kind of issues there are” in a straightforward

witnessed how DIC is promoting CSR with confidence. I lookmanner, and introduced “DIC’s initiatives.” However, only 3

forward to DIC’s developing initiatives and information disclosure

examples are introduced here. I would like to ask DIC to expand

again next year.

I have provided this third-party opinion for the ways of CSR activities and information disclosure by the DIC Group which I have understood through this report from theperspective as one who provides corporate information to financial institutions for the sake of socially responsible investment. This opinion is not intended to provide
judgment concerning whether or not this report has been accurately measured and calculated in accordance with the preparation criteria for environmental reports, etc.
that are generally regarded appropriate or whether or not this report covers important items without omission.

44

Third-Party Opinion

Introduction of Communication Tools
that connect DIC and stakeholders

The DIC Group strives to transmit information through various communication tools in order to promote communication with stakeholders andencourage them to deepen their understanding toward our corporate activities.
We also introduce more detailed information and data on CSR information on the website.

Booklets/PDF

Report on each activity
CSR activity reportComprehensive information transmission

Financial information reportCompany information transmission

DIC Annual Report 2013
Year ended March 31, 2013

DIC 会社概要
DIC 株式会社
DIC Corporate
Profile

会社概要

DIC Corporation Corporate Profile

CSR report

Annual report

Issued once a year

Issued once a year

Company information

WebsiteComprehensive information transmission
Company information transmission

DIC global website updated as necessaryWEB

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

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