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

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

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

Core Values

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

VisionIntegrity

Dedication & Loyalty: Take responsibility for performance in the ofﬁce,
laboratory, and factory, by demonstrating commitment to customers,
suppliers, and coworkers.*
Diversity: Respect other viewpoints and work collaboratively whilevaluing collective goals over personal interests to achieve excellence;
foster communication and cooperation with people from all backgrounds.*

Sustainability

Dedication & Loyalty

Company

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

Diversity*=Annotation

Our Redeﬁned Vision Statement

Social Responsibility

We have redeﬁned our Vision to express our goals to deliver greater value through broader innovation,
improving the human condition and promoting sustainability for a brighter future.

DIC Report 2021

1

Society

Contents
DIC Group Milestones
The DIC Group’s Approach to Value Creation
Fiscal Year 2021 DIC Group Topics)LQDQFLDODQG1RQÀQDQFLDO,QIRUPDWLRQThe DIC Group: A Global Powerhouse$0HVVDJHIURPWKH3UHVLGHQW',&9LVLRQ/RQJ7HUP0DQDJHPHQW3ODQ
<HDU6XPPDU\$0HVVDJHIURPWKH&)2
7KH',&*URXS·V%XVLQHVV3RUWIROLR
Packaging & Graphic
Color & Display
Functional Products
New Business Development

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

3ULQWHG3'))RUP3XEOLFDWLRQV

Reports on activities',&5HSRUW',&5HSRUW VXPPDU\YHUVLRQ FRPSOHWHYHUVLRQ',&5HSRUW
Financial Section

9DOXH&UHDWLRQ(VVHQWLDOV',&*URXS&RPPXQLFDWLRQV7RROV

3
5
7
9
11
13
19
22
23

25
27
29
31

Activities

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

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

DIC Global Website

Real-time information
https://www.dic-global.com/en/
Umbrella website providing information to
the global public about the DIC Group andreports on its various activities; updated
as necessary
WEB

Value Creation Strategies

Summary integrated
report (published annually)(printed publication)

Sun Chemicalʼs Activities
DIC Asia Pacificʼs Activities
DIC (China)ʼs Activities$0HVVDJHIURPWKH*HQHUDO0DQDJHURIWKH3URGXFWLRQ0DQDJHPHQW8QLW$0HVVDJHIURPWKH*HQHUDO0DQDJHURIWKH7HFKQLFDO0DQDJHPHQW8QLW$0HVVDJHIURPWKH*HQHUDO0DQDJHURIWKH5 '0DQDJHPHQW8QLW

WEB

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

2YHUYLHZRI6XVWDLQDELOLW\
Compliance
BCM and Crisis Management
Information Security
Environment, Safety and Health (ESH)
Climate Change
Quality
Human Resources Management
Sustainable Procurement
New Value Creation
Sustainable Technology and Product Development
Digital Transformation
Harmony with the Community and Social Contributions
Communication with Stakeholders

The ( WEB ) mark indicates that more detailed information and/or
data can be found on the indicated page of the DIC global website.
DIC global website WEB https://www.dic-global.com/en/

6FRSHRI5HSRUWLQJIn principle, this report provides information on DIC Corporation and consolidated
DIC Group companies worldwide. For information on the scope of reporting for
ESH-related initiatives, please visit the pertinent page of the DIC global website.
WEB https://www.dic-global.com/pdf/csr/environment/dic_report_scope_en_2022.pdf',&5HSRUWDQGWKH*5,6WDQGDUGV)LQDQFLDO5HSRUWIRU)LVFDO<HDU
7KLUG3DUW\9HULÀFDWLRQ
7KLUG3DUW\2SLQLRQ5HJDUGLQJ',&5HSRUW

Data)LVFDO\HDU -DQXDU\±'HFHPEHU

37
38

Functional black pigments that combine outstanding LiDAR signal response and visual appeal 40:RUOG¶VIDVWHVWFXULQJFDUERQ¿EHU±UHLQIRUFHGSUHSUHJDICARBO® LF series 44
48&RQWULEXWLQJWRWKH5HDOL]DWLRQRID&LUFXODU(FRQRP\
51:RUN6W\OH5HIRUPV$FWLYLWLHVRIWKH:65&RPPLWWHH
54$0HVVDJHIURPWKH+HDGRIWKH(6*8QLW
56
2YHUYLHZRI0DWHULDOLW\
57',&6XVWDLQDELOLW\,QGH[
59&RUSRUDWH*RYHUQDQFH
65'LUHFWRUV$XGLW 6XSHUYLVRU\%RDUG0HPEHUVDQG([HFXWLYH2IÀFHUV
67$0HVVDJHIURPDQ2XWVLGH'LUHFWRU

Link with the DIC Global Website

5HSRUWLQJ3HULRG

35+HOSLQJ5HDOL]H6XVWDLQDEOH0RELOLW\6ROXWLRQV

Value Creation Cornerstones',&5HSRUW &RPSOHWHYHUVLRQ  3')IRUPSXEOLFDWLRQ

34Special Feature$ERXWWKLV5HSRUWIn previous years, the DIC Group published a combined corporate
SUR¿OHDQGVXVWDLQDELOLW\UHSRUWZLWKWKHDLPRISUHVHQWLQJDFOHDU
easy-to-understand picture of the Group and its sustainability
initiatives. Since 2017, the Group has published the DIC Reportas an integrated report, which combines financial information,encompassing consolidated operating results and corporate
VWUDWHJLHVDQGQRQ¿QDQFLDO VXVWDLQDELOLW\ LQIRUPDWLRQ7KH*URXSKDVSXEOLVKHGDVLPSOL¿HGVXPPDU\YHUVLRQRIWKHUHSRUW SULQWHG 
which focuses on key highlights, and a more detailed complete
version (PDF), which contains extensive quantitative data.

32
33'DWHRI3XEOLFDWLRQ-XQH 7KHQH[WUHSRUWLVVFKHGXOHGIRUSXEOLFDWLRQLQ-XQH

68
71
73
76
78
113
124
127
148
152
154
157
159
162
167
172
179
182

*XLGHOLQHV5HIHUHQFHG&RYHU'HVLJQGuidelines referenced in the preparation of this report were ISO 26000, theInternational Organization for Standardization’s standard for social responsibility,
released in 2010; Japan’s Responsible Care Code; and the Global Reporting
Initiative (GRI)’s GRI Standards.

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

DIC Report 2022

2

114 Years of Achievement

DIC Group Milestones
1925

1908

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

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

1962

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

1940

Commences production ofwater-based gravure inks
Dragon product trademark

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

DIC’s previous
corporate symbol

1952

1968

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

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

Makes full-scale entry into thesynthetic resins business

Reichhold Chemicals’
San Francisco plant

DIC’s founder, Kijuro Kawamura

1915

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

1973

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

DIC Color Guide ®

1957

1970

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

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

Enters the multilayered films businessEnters the market for helmets andother molded plastic products

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

1990

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

Actively introduces technologies
from overseas and promotes
further diversif ication

1995

Declares intention to uphold theprinciples of Responsible Care

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

2006

Becomes signatory to the
Responsible Care Global Charter
Signs the CEO’s Declaration of Support for
the Responsible Care Global Charter,
established by the International Council of
Chemical Associations (ICCA), as befits its
status as a member of the global communityof fine chemicals manufacturers.

Certiﬁcation of DIC as signatory to
the Responsible Care Global Charter

Sustainability Initiatives

Promotes expansion of
printing inks business

Commences sales of the
DIC Color Guide ®

DIC Report 2022

3

DIC Group Milestones

1973

2008

Enters themarket for LCs
Develops revolutionary
high-performance,long-lasting nematic liquid
crystals (LCs), commencing
its evolution into one oft h e w o r l d ’s f o r e m o s t
manufacturers of LCs.

2016

Introduces branding program

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

Nematic LCs

1986

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

Introduces new branding
program based on theGroup’s “Color & Comfort”
brand slogan, which sets
f o r t h t h r e e c o r p o ra t evalues, and in Octobera i r s a new television
advertisement.

2017

DIC’s new corporate symbolEnters capital and business alliancewith TAIYO HOLDINGS
Concludes capital and business alliance with TAIYO HOLDINGS CO., LTD.,
one of the world’s leading manufacturers of solder resist for printed wiring boards.

2008

Develops groundbreaking series ofgreen pigments for LCD color filters
Develops the G58 series of green pigments for use in color filters forliquid crystal displays (LCDs), which deliver marked increases inbrightness and contrast compared with previous products andcontribute substantially to reduced energy consumption by LCDs.

Sun Chemical’s headquarters

1999

2009

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

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

Succeeds in developing 100% soybean
oil–based printing ink

Establishes DIC Graphics Corporation

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

Seeks to advance globalization ofcore businesses and diversify into new areas

2021

Acquires the Colors & Effects businessfrom BASF SE of Germany
Acquired a prominent global manufacturer of high-performance pigments,
effect pigments (for cosmetics) and specialty inorganic pigments, based inEurope and with sites around the world, bringing together proprietary
technologies and intellectual property that will unleash unparalleleddevelopment capabilities and yield exciting new products, as well as
improving efficiency by expanding operating scale and reinforcing the DIC
Group’s position as a leading global pigments manufacturer.

2022

2015

Completes reconstructionof corporate headquarters
in Nihonbashi

1999

In May 2015, completes the reconstruction ofi t s c o r p o ra t e h e a d q u a r t e r s — t h e D I C
Building—in Nihonbashi, Tokyo, the role ofwhich was expanded to include oversight of
the global DIC Group.

Inaugurates DIC Vision 2030 long-term
management plan
Announces redefined vision statement—“We improve the human condition
by safely delivering color and comfort for sustainable prosperity—Color &Comfort” and sets forth a new basic policy “Safely delivering Color &Comfort for sustainable prosperity to enhance shareholder value andlong-term corporate value.”

Takes steps to advance environmental
protection and expands global presence

Prepares for a new phaseof growth

2007

2010

2014

Begins promoting corporate social
responsibility (CSR) initiatives; identifies
fulfilling its responsibilities as a memberof society through its business activities
and contributing to the evolution ofsociety as the cornerstones of CSR.

In December 2010, becomes a signatory to
the United Nations Global Compact (UNGC),
with the aim of maintaining its reputation asa socially responsible corporate entity.

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

Joins United Nations
Global Compact

2015

Changes designation to“sustainability”

In-house poster promoting sustainability initiatives

Launches CSR program

Brand advertisement for television

DIC Report 2022

4

Selected for inclusion in the
Dow Jones Sustainability
Indices (DJSI) Asia Pacific Index
Included for the first time in the DJSI Asia
Pacific Index, a global family of indices forsocially responsible investing and abenchmark of global sustainability.
As of 2021, has been included in the index
for seven consecutive years

The DIC Group’s Approach to
Value Creation
Delivering

Build a business portfolio thathelps achieve sustainable
prosperity for society

Health-related
issuesResource
depletion

Environmental
issuesHuman rights
issuesCyber threats
Climate change

Diverse social imperatives

Management capital(Inputs)

Financial capital
Integrate technologies
and make use ofopen innovationschnologie
design teMaterials

ies

Computational science(AI and MI*), Analysis
Applicability
assessment

Polymer design(Coating, printing,molding)

atfo

Organic materials
designrm
Re

Ability to value diversity andto bolster satisfaction
and productivity

Dispersion

chnologth e te chn olo g y pl

Human capital

Common basic
technologies

Inorganic
materials
designdesign teance

Accumulated technologies
and know-how

Optics and color

Function

EnhIntellectual capital

Biomaterials
design

Mak
e st
rat
eg
ic
inv
es

ts
en
tm

Manufacturing capital
Facilities and equipment
essential to the provisionof products and servicestobus
re r nﬁgurationooa m ent c
il sh gem
ab a
st an
m
al

gl
ob E

Funds essential tothe provision of products
and services

inf
or

c

em

Natural capitalan* Materials informatics

ag

em

ent

of h

Carbon neutrality andconsideration for biodiversityum anc a p it a lo
Pr o mteMarshal individual
strengths to createorganizational dynamism

Social capital
Cooperation with stakeholders
and local communities

Materiality(For more information, please see page 56.)

Reinforce ESG initiatives
The DIC WayDIC Report 2022

5

IT

d
an

D

X

A society that isincreasingly green,
digital and QOL-oriented

With the aim of ensuring a sustainable society, the DIC Group strives to provide products andsolutions that respond to the needs of markets and its customers and add color and comfort to life.

Sustainable energy

SDGs‫ٴ‬Specialty materials that contribute to the realization of
the high-performance secondary batteries and fuel cells
crucial to an electrified/hydrogen-powered societye.g. ・Materials for secondary batteries and fuel cells
・Functional organic fillers

Healthcare‫ٴ‬High-performance nutritional supplements that support the health of people of all ages
‫ٴ‬Healthcare-related products and services that deliver safety,
peace of mind and comfort, contributing to a future in whichpeople enjoy an improved quality of life (QOL)
・High-performance nutritional productse.g.
・Natural skin-care materials

Smart living‫ ٴ‬High-performance materials and solutions that contribute to the realization ofa sustainable society that coexists with a healthy global environment‫ ٴ‬Chemical solutions for modern lives that have evolved andimproved thanks to digitalization

・Materials for 5G/6G-enabled devices

e.g. ・Resins for next-generation semiconductors

・Bonding solutions for heterogeneous materials

Color science‫ ٴ‬Color that is sustainable and ecologically sound‫ٴ‬Products with outstanding decorative properties that facilitate
the creation of comfortable spaces‫ ٴ‬Functional materials that leverage dyeing technologies todeliver convenience, satisfaction, safety and peace of mind
・Functional pigments (for light detection and ranging (LiDAR)
signal coatings, heat-blocking coatings)
e.g.
・Biomass pigments
・Natural colorants for cosmetics

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

・Materials with outstanding barrier properties

e.g. ・Biomass packaging

・Recycling systems (chemical recycling, materials recycling)

DIC Report 2022

6

SDGs Goals
2, 3, 6, 7, 9, 11,
12, 13, 14 and 15

Fiscal Year 2021 DIC Group Topics
Strategic Investments Under the DIC111 Medium-Term Management Plan
7KHEDVLFFRQFHSWRIWKH',&PHGLXPWHUPPDQDJHPHQWSODQZKLFKJXLGHGWKH',&*URXSIURP¿VFDO\HDUWKURXJK¿VFDO\HDUZDVVXPPDUL]HGDV³%HFRPHDXQLTXHJOREDOFRPSDQ\WKDWLVWUXVWHGE\VRFLHW\E\SURYLGLQJYDOXHVDIHW\DQGSHDFHRIPLQGFRORUDQGFRPIRUW´%DVHGRQWKLVFRQFHSWWKHSODQVHWIRUWKWZREDVLF
VWUDWHJLHV³9DOXH7UDQVIRUPDWLRQ´ZKLFKIRFXVHGRQVWUHQJWKHQLQJWKH*URXS¶VFRUSRUDWHVWUXFWXUHWKURXJKTXDOLWDWLYHUHIRUPVRIEXVLQHVVHVDQG³1HZ3LOODU&UHDWLRQ´ZKLFKHPSKDVL]HGFUHDWLQJQHZEXVLQHVVHVLQUHVSRQVHWR(6+UHODWHGLVVXHVDQGVRFLDOFKDQJHV7KHSODQEXGJHWHGDWRWDORIELOOLRQRYHUWKUHH\HDUVIRUVWUDWHJLF
LQYHVWPHQWVDLPHGDWDFFHOHUDWLQJJURZWKZKLOHDOVREDODQFLQJ¿QDQFLDOKHDOWKDQGUHWXUQVWRVKDUHKROGHUV,Q¿VFDO\HDUWKH¿QDO\HDURI',&LQYHVWPHQWVZHUHPDGHLQ0 $VDQGVWDUWXSVLQWKHSLJPHQWVEXVLQHVVDQGLQDQXPEHURIQHZEXVLQHVVHVWKDWH[SDQGHGWKH
*URXS¶VSURGXFWDQGWHFKQRORJ\SRUWIROLRV

1. Acquisition of the Colors & Effects Business from BASF
,Q$XJXVW',&UHVROYHGWRDFTXLUHWKHVKDUHVDQGDVVHWVRIWKH&RORUV (IIHFWVEXVLQHVVIURP%$6)6(RI*HUPDQ\7KLVDFTXLVLWLRQZDV¿QDOL]HGLQ-XQHDQG
ZHDUHFXUUHQWO\SURPRWLQJWKHLQWHJUDWLRQRIWKLVEXVLQHVV¶SLJPHQWVSRUWIROLRLQWRWKH*URXS¶VSLJPHQWVEXVLQHVV
Completion of Acquisition: June 30, 2021
・Purchase price (unadjusted): €1,010 million (approx. ¥128.9 billion) (Exchange rate used for calculation: €1.00 = ¥127.58)(Post-closing adjustments are pending. Accordingly, the actual final price may differ from this amount.)
・Method used to procure funds for acquisition: Bank loans(Thanks to the procurement of ¥60 billion through a subordinated term loan, DIC expects to maintain its debt-to-capital (D/C) ratio at 50% in fiscal year 2021.)
・The acquisition will cement DIC’s position as a leader in the global pigments industry.
・By expanding DIC’s portfolio of high-value-added products and optimizing its operations, this acquisition will accelerate Value Transformation.

Overview of the Colors & Effects Business・One of the world’s premier manufacturers of high-performance pigments, effect pigments(pearlescent pigments for cosmetics) and specialty organic pigments
・Number of employees: Approx. 2,600
・Production sites: 11
・R&D laboratories: 4
・Operations are centered in Europe; the Colors & Effects business supplies more than 5,000 companies
in 120-plus countries and territories worldwide

Asia
Europe

27%

52%
The Americas

21%
Geographical Breakdown of the Colors & Effects
Business’ Sales (Based on Results for 2020)%DVHGLQ(XURSHDQGZLWKVLWHVDURXQGWKHZRUOG&RORUV (IIHFWVQRZDPHPEHURIWKH',&*URXSKDVHVWDEOLVKHGLWVHOIDVDSURPLQHQWJOREDOPDQXIDFWXUHURIKLJKSHUIRUPDQFHSLJPHQWVHIIHFWSLJPHQWV SHDUOHVFHQWSLJPHQWVIRUFRVPHWLFV DQGVSHFLDOW\RUJDQLFSLJPHQWV7KHEXVLQHVVSRUWIROLRV²LQFOXGLQJWKHWHFKQRORJLHVSURGXFWVSURGXFWLRQIDFLOLWLHVVXSSO\FKDLQVDQGFXVWRPHUVHUYLFHFDSDELOLWLHV²RI&RORUV (IIHFWVDQGWKH*URXSKDUPRQL]HZHOOZLWKHDFKRWKHUZLWKOLWWOHRYHUODS
Addition of High-Value-Added Products Expected to Boost Profitability
・In the area of functional pigments, the addition of effect pigments (pearlescent pigments for cosmetics) will significantly expand the DIC Group’s portfolio of
pigments for cosmetics and specialty applications such as agriculture, which are major growth drivers.
Functional Pigments

Increase in Net Sales Attributable to Acquisition
BeforeAfter

1.4 times

Specialty applications

2.2 times

Cosmetics

Specialty applications(agriculture, etc.)

Cosmetics

Construction materials(autoclaved aerated concrete)

Displays

Jet inks and toners

・In the area of general-purpose pigments, sales for use in industrial, construction-use and automotive coatings are increasing. The acquisition of the Colors & Effects business will
particularly expand the Group’s presence in the market for pigments for automotive coatings by broadening its product portfolio and improving its product development capabilities.
Increase in Net Sales Attributable to Acquisition
BeforeAfter
At least

General-Purpose Pigments

3.8

times

Coatings

Automotive coatings

Industrial coatings

DIC Report 2022

7

Construction-use
coatings

Plastics

Printing inks

Fiscal Year 2021 Topics

7KLVDFTXLVLWLRQDQGWKHLQWHJUDWLRQRIWKHWZRFRPSDQLHV¶WHFKQRORJLHVDQGLQWHOOHFWXDOSURSHUW\ZLOOJLYHWKH',&*URXSXQSDUDOOHOHG5 '
DQGSURGXFWGHYHORSPHQWFDSDELOLWLHV7KHH[SDQVLRQRIVFDOHZLOOLPSURYHEXVLQHVVHI¿FLHQF\VWUHQJWKHQLQJWKH*URXS¶VSRVLWLRQDVDOHDGLQJJOREDOSLJPHQWVPDQXIDFWXUHUVDifferences in Scale and Profitability by Application
Profitability
Development of products that leveragetechnological synergies
Product development that leverages
materials offered by the Colors &Effects business

LiDAR-compatible pigments forautonomous driving vehicles

Displays

Cosmetics

Improvement of business efficiency thanks toan expanded scale

Specialty
applications

Plastics

Coatings

Digital applications

Pigments for heat-management
applications

Expansion of product groups
and applications
Printing inks

Business scale.

2. Capital Alliance with GSM,Q0DUFK',&HQWHUHGLQWRDFDSLWDODQGEXVLQHVVDOOLDQFHZLWK*UHHQ6FLHQFH0DWHULDOV,QF *60 DJUHHQELRWHFKVWDUWXSEDVHG
LQ.XPDPRWR-DSDQWKDWKDVVXFFHHGHGLQFRPPHUFLDOL]LQJSACRANDSRO\VDFFKDULGHH[WUDFWHGIURP6XL]HQMLQRULDQLQGLJHQRXVEOXHJUHHQDOJDH$ELRWHFKVWDUWXSODXQFKHGE\WKH-DSDQ$GYDQFHG,QVWLWXWHRI6FLHQFHDQG7HFKQRORJ\ -$,67 *60FDSLWDOL]HVRQWKHUHVHDUFKDFKLHYHPHQWVLQWKHH[WUDFWLRQRISACRANRI-$,67UHVHDUFKHUVQRWDEO\'U0DLNR2NDMLPDDQG3URIHVVRU7DWVXR.DQHNREHFRPLQJWKH¿UVWFRPSDQ\LQWKHZRUOGWRVXFFHVVIXOO\FRPPHUFLDOL]HSACRAN$PDFURPROHFXODUSRO\VDFFKDULGHH[WUDFWHGIURP6XL]HQMLQRULSACRANERDVWVRXWVWDQGLQJPRLVWXUHUHWHQWLRQFDSDFLW\DQWLLQÀDPPDWRU\SURSHUWLHVDQGVNLQEDUULHUIXQFWLRQVERGLQJZHOOIRULWVXVH
LQDZLGHUDQJHRIVNLQFDUHSURGXFWV*60LVFXUUHQWO\ZRUNLQJWRGHYHORSDUWL¿FLDOFXOWXUHDQGFXOWLYDWLRQWHFKQRORJLHVIRU6XL]HQMLQRULZLWKWKHDLPRIIDFLOLWDWLQJWKHHI¿FLHQWPDVVSURGXFWLRQDQGJOREDOVDOHVRISACRAN7KH
FRPSDQ\LVDOVRDFWLYHO\HQJDJHGLQFRQVHUYDWLRQHIIRUWVLQDQGDURXQGWKH.RJDQH5LYHU
LQ$VDNXUD)XNXRND3UHIHFWXUHWKHRQO\SODFHZKHUHWKLVDOJDHJURZVQDWXUDOO\The alliance with GSM will enable DIC to share mass cultivation and functional
LQJUHGLHQWH[WUDFWLRQWHFKQRORJLHVDFFXPXODWHGLQWKHSURGXFWLRQRIHGLEOHEOXHJUHHQ
DOJDH6SLUXOLQDZLWKWKHJRDORIKHOSLQJHVWDEOLVKWHFKQRORJLHVIRUWKHDUWL¿FLDOFXOWLYDWLRQ
RI6XL]HQMLQRUL,QDGGLWLRQ*60ZLOOZRUNZLWK',&*URXSFRPSDQ\6XQ&KHPLFDO&RUSRUDWLRQZKLFKRYHUVHHV*URXSRSHUDWLRQVLQWKH$PHULFDVDQG(XURSHWRH[SDQG
VDOHVRI6XL]HQMLQRULDQGSACRAN™ worldwide, as well as to promote the development
RIQHZDSSOLFDWLRQVIRUERWK

3. Investment in Vaxa Technologies,Q$SULO',&FRPSOHWHGLQYHVWPHQWLQ9D[D7HFKQRORJLHV/WGDELRWHFKVWDUWXS
KHDGTXDUWHUHGLQ,VUDHODVSDUWRIDVWUDWHJLFH[SDQVLRQRI',&¶VKHDOWKIRRGDQGRWKHUDOJDHGHULYHGSURGXFWVEXVLQHVVHV9D[D7HFKQRORJLHVSRVVHVVHVXQLTXHSURSULHWDU\OLJKWHPLWWLQJGLRGH /(' ±LOOXPLQDWHG
photobioreactors and algae cultivation technologies and is engaged in the development
DQGFRPPHUFLDOL]DWLRQRISURSULHWDU\FOHDQKLJKYDOXHDGGHGDOJDHSURGXFWV9D[D7HFKQRORJLHV¶ FXOWLYDWLRQ SURFHVV HPSOR\V UHQHZDEOH HQHUJ\ DFKLHYLQJ H[FHOOHQWSURGXFWLYLW\ZKLOHUHTXLULQJVLJQLILFDQWO\OHVVODQGDQGIUHVK ZDWHUWKDQFRQYHQWLRQDOFXOWLYDWLRQPHWKRGV7KLVSURFHVVDOVRFRQYHUWVGLVFKDUJHG&2  into useful materials,
PDNLQJWKHSURFHVVFDUERQQHJDWLYHDQGWKXVKLJKO\VXVWDLQDEOHDIC Report 2022

8

Financial Information
Net Sales, Operating Income and Operating Margin
Net sales

Operating income

Net Cash Provided by Operating Activities and Free Cash Flow
(Billions of yen)

900
800

855.4
805.5

789.4

Operating income(Billions of yen)

60

80

50

70

40

60

30

768.6
701.2

700

Net cash provided by operating activities
Free cash flow

Operating margin (%)

Net sales(Billions of yen)

6.0%

7.2%

5.7%

5.4%

600

5.0%

500

50

400

40

300

30

200

20

56.5

48.4

41.3

39.7

42.9

54.2

54.5

51.0

50.6
44.8

25.8

20
10

21.4

12.6

0

-4.7

-5

-102.8

10

100
0

2017

2018

2019

2020

2021

-105.0

0

(FY)

2017

2018

2019

2021

2020

(FY)

Notes:*1 Owing to an investment of ¥24.9 billion in TAIYO HOLDINGS CO., LTD., net cash used in investingDFWLYLWLHVLQFUHDVHGLQ¿VFDO\HDU
*27KHLQFUHDVHLQFDVKXVHGLQLQYHVWLQJDFWLYLWLHVLQ¿VFDO\HDUUHÀHFWVWKHLPSDFWRI',&¶Vacquisition of the Colors & Effects pigments business from BASF SE (acquisition cost: ¥128.9 billion).

Operating Income after Tax and ROIC*

Capital Expenditure and Investment(Billions of yen)

Operating income after tax (Billion of yen)

168.2

170

ROIC（%）

（%）
8

7.2%

160

7

6.0%

(Billions of yen)

70

50

5.0%

60

4.8%

40.7

40

62.4

6

5.2%

5
50

34.8
29.8

30

28.6

40

3

20
10

2018

2019

2017

Shareholders' Equity, Net Interest-Bearing Debt
and Net D/E Ratio*
Shareholders’ equity

2020

0

2018

2021

Returns to Shareholders* (Dividends per Share and Payout Ratio)
Net D/E ratio (Times)
1.0

Interim dividend

Payout ratio (%)

Year-end dividend（%）(Times)

400

225
220
215
210

216.8%

1.0(Billions of yen)

(FY)

Notes:*1 Owing to an investment of ¥24.9 billion in TAIYO HOLDINGS CO., LTD., capital expenditure andLQYHVWPHQWLQFUHDVHGLQ¿VFDO\HDU
*2 7KHLQFUHDVHLQFDSLWDOH[SHQGLWXUHDQGLQYHVWPHQWLQ¿VFDO\HDUUHÀHFWVWKHLPSDFWRI',&¶Vacquisition of the Colors & Effects pigments business from BASF SE (acquisition cost: ¥128.9 billion).

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

Net interest-bearing debt

2019

10

0

2021 (FY)

2020

37.1

20

1

2017

37.5

30

2

0

45.1

4

30.9

0.9

0.8

0.8

0.8
0.7

0.8

346.0

0.7

300

71.5%

0.6

247.8

244.7

235.8

(Yen)

0.5

221.9

200

150

0.4

315.1

298.9

312.7

318.5

0.3

345.9

100

100

0.2

50

0.1
0

0

2017

2018

2019

2020

2021

0

(FY)

* Net D/E ratio :Net Interest-bearing debt/Shareholder's equity

DIC Report 2022

9

36.9%
29.4%
120

125

40.3%
100

100

100

60

65

40

50

50

60

60

60

50

50

2017

2018

2019

2020

2021

(FY)

75
70
65
60
55
50
45
40
35
30
25
20
15
10
5
0

1RQ¿QDQFLDO,QIRUPDWLRQ
Global CO2 Emissions and CO2 Emissions per
Unit of Production (DIC Group)
CO 2 emissions(Tonnes)Global Energy Consumption and Energy Consumption per
Unit of Production (DIC Group)

CO 2 emissions per unit of production

Energy consumption(Kg CO2 /tonne)

1,000,000

700,000

5.360

5.155

13,000311

296

659,000

600,000

12,000

292

300

272

270

11,000142

5.

11,379 11,053
10,902

108

5.

5.014

5

4.732
10,717

10,379 10,474

10,000247

635,000 618,000(GJ/tonne)

6

14,000900,000
800,000

Energy consumption per unit of production(Thousands of GJ)

400

4

9,000

577,000 552,000 546,000

500,000

8,000

200

3

7,000
6,000

400,000

5,000

300,000

2

4,000

100

3,000

200,000

1

2,000

100,000

1,000

0
2016

2017

2018

2019

2020

2021

(FY)

0

0

2016

2017

2018

2019

2020

2021 (FY)0* CO2 emissions per unit of production is calculated using adjusted production volume (parent
FRPSDQ\LQ-DSDQRQO\  1RWL¿FDWLRQVXEPLWWHGWR-DSDQ¶V0LQLVWU\RI(FRQRP\7UDGHDQG,QGXVWU\* Energy consumption per unit of production is calculated using adjusted production volume (parent
company in Japan only). 1RWL¿FDWLRQVXEPLWWHGWR-DSDQ¶V0LQLVWU\RI(FRQRP\7UDGHDQG,QGXVWU\

Number of Employees (DIC Corporation and the DIC Group)

Occupational Accident Frequency Rate (DIC Corporation)(Number of people)

DIC Group

DIC(Rate)

25,000DIC

1.50

Overall manufacturing industry in Japan

22,474
20,628

20,62020,513

20,24220,0001.00

15,0000.50

0.00

10,000

2013

3,503

3,538

3,593

3,681

3,662

Frequency rate ＝
0

2017

2018

2019

2020

2021

(FY)

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

2016

2017

2018

2019

Number of deaths or injuries due to occupational accidents
Total work hours

× 1,000,000

Female Employees in Management Positions (DIC Corporation)

Female employees

Female employees

Percentage of total (%)

70

Average years of employment in fiscal year 2021
Male employees:

2021 (FY)2020

A frequency rate of 1.00 means one occupational accident resulting in workdays lost in one year
at a site with 500 employees.

(Number of people)

Male employees

2015

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

（17.0%） （17.2%） （17.5%） （18.1%） （16.4%）
5,000

2014

18.2 years Female employees: 20.2years Overall:18.6 years

61

60

57
52

25

6.3%

48

50

（%）
7

6

5.9%
5.5%

41

20

40

33
15

30

10

5

5.1%
4

4.4%

3.7%

3

20
2

5

10

1

0
1994

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (FY)0

DIC Report 2022

10

2017

2018

2019

2020

2021

2022 (FY)0The DIC Group: A Global Powerhouse
Net Sales

Corporate Data

(Billions of yen)

1,000

Registered name:

800

855.4

701.2

805.5

768.6

789.4
’17

’18 ’19 ’20 ’21 （FY）

200
0Operating Income(Billions of yen)

60

)

50
40
30
Note: Corporate data is as of December 31,
2021. Net sales and operating income
are for fiscal year 2021.
The nonconsolidated number of employees
refers to individuals registered as employeesof DIC Corporation and thus differs fromthe figure in the annual securities report.

20

42.9

Corporate headquarters (Tokyo)

39.7

(

189 Domestic: 29
Overseas: 160

400

41.3

Number of subsidiaries
and affiliates:

600

48.4

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

DIC Building, 7-20,
Nihonbashi 3-chome,
Chuo-ku, Tokyo 103-8233,
Japan
February 15, 1908
March 15, 1937
¥96.6 billion
20,474(Nonconsolidated: 3,345)

56.5

Corporate headquarters:

10
0’17 ’18 ’19 ’20 ’21 （FY）
Sun Chemical Corporation
headquarters (United States)

Global Network
DIC has 189 companies in 63 countries andterritories around the world.

Europe

63

15

29
Asia

63

North
America
North, Central andSouth America
Sun Chemical Group and others

Net sales

Japan

Europe and Africa¥145.5 billion

Operating income¥4.2 billion

Japan

Sun Chemical Groupand others

Net sales¥219.9 billion

DIC Corporation, DIC Graphics
Corporation and others

3

Net sales

Operating income¥5.0 billion

Asia and Oceania

Africa2¥308.3 billion

Operating income¥27.9 billion(Excluding Japan)

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

Net sales¥181.6 billion

Oceania

Operating income¥15.5 billion

DIC (China) Co., Ltd. (PRC)14

DIC Asia Pacific Pte Ltd (Singapore)

DIC Report 2022

11

Central & SouthAmerica

Breakdown of Fiscal Year 2021 Net Sales by Segment

Breakdown of Fiscal Year 2021 Operating Income by Segment

Functional
Products

Functional
Products

31.8%￥855.4billionColor &
Display

50.6%

Packaging &Graphic￥42.9
billion

49.4%

Packaging &Graphic

41.8%

Color &
Display

18.8%

7.6%

Note: Fiscal year 2021 net sales and operating income as used here include intersegment transactions. For this reason, and because of the existence of transactions classified as “others,” which are not attributable to reportable segments, these figuresdiffer from reported net sales and operating income.

Breakdown of Fiscal Year 2021 Net Sales by Region

Breakdown of Fiscal Year 2021 Operating Income by Region

Asia and Oceania

Asia and Oceania

21.2%

29.4%

North, Central andSouth America￥855.4billion

17.0%

Japan

North, Central andSouth America

36.0%

￥42.9

8.0%

Europe and Africa

Europe and Africa

25.7%

9.6%

billion

Japan

53.0%

Note: Operating income as used here includes eliminations (approximately ¥7.9 billion). Accordingly, these percentages do not represent shares of reported operating income.

Principal Global R&D Sites
Printing Inks
Technical Center—
China

Cincinnati (United States)

Polymer Technical Center —China
Qingdao DIC Finechemicals(PRC)

Rochdale(United Kingdom)Midsomer Norton(United Kingdom)

Gallarta(Spain)Eurolab(Germany)

Ludwigshafen
am Rhein(Germany)
Besigsheim(Germany)

Solid Compound
Technical Center—
Asia Pacific (Malaysia)

St. Charles (United States)

Fine Chemical
Technical Center—Korea

Peekskill(United States)
Tarrytown(United States)

Central ResearchLaboratories (Japan)

Pigment Technical Center—
Asia Pacific (Indonesia)
Polymer Technical Center —Asia Pacific (Thailand)

Printing Inks Technical Center—
Asia Pacific (Thailand)

DIC Report 2022

12

DIC/Earthrise Algae ResearchCenter (United States)

Carlstadt (United States)

TOP MESSAGE

Kaoru Ino
President & CEO
DIC Corporation

Becoming a unique andtrusted global company
ideally positioned to deliver
sustainable prosperity
for the global economy

:H·YHHYROYHGRXU&RORU &RPIRUWYDOXHSURSRVLWLRQ
7RVHFXUHDEULJKWHUIXWXUHIRUWKHSODQHWDQGKXPDQLW\
5HÁHFWLQJRQWKH',&0HGLXP7HUP0DQDJHPHQW3ODQ■ 6HHNLQJ6XVWDLQDEOH*URZWK%\6WUHQJWKHQLQJ3URÀWDEOH%XVLQHVVHV$QG%XLOGLQJ2Q6XFFHVV
Between fiscal 2019 and 2021, the DIC Group promoted our DIC111 Medium-Term Management Plan. Based on thefundamental concept of becoming “a unique and trusted global company” by consistently generating value by safely providing
Color and Comfort, we strove to strengthen our business structure through qualitative transformation. Under the two basic
strategies of Business Transformation and New Pillar Creation, we created new businesses that respond to social issues andchange, recording high sales of 950 billion yen and operating income of 70 billion yen in fiscal year 2021.
Amid growing US-China trade friction, the COVID-19 pandemic, and a series of supply chain disruptions, we experienced
sluggish sales and fell significantly short of achieving our plan. However, despite major global trade disruptions, the DIC
Group steadily promoted our two basic strategies and achieved measurable gains.
In a major achievement, we instantly established a leading position in organic and inorganic pigments globally by acquiring
Germany-based BASF’s Colors & Effects pigment business (hereinafter, “C&E pigment business”). We’re also keeping pacewith rapidly accelerating digitalization. Moreover, we managed to capture 5G-related demand by developing low-dielectricmaterials that enable high-speed communications.
In addition to added economic value, we accelerated the shift of our printing ink business to high social value packaging inks,
contributing to greater sustainability amid the growing attention on the climate crisis and circularity. We continue to steadily
advance Value Transformation among our existing businesses, with packaging ink already contributing some 80% of printing ink
sales. Among our new businesses, we are announcing new products in each of the four priority areas (electronics, automotive,
next-generation packaging, and healthcare), and we can already see a clear path toward our goal of New Pillar Creation.
While we’ve delivered a level of results under our basic strategy, to make up for any gaps in sales or profit plans, we must
continue to tackle challenges in four remaining areas: 1) Further clarify our business portfolio, while achieving sustainablegrowth via portfolio transformation; 2) Develop synergies in the early stage of acquisitions, including the growth-driving C&E
pigment business acquisition, to further improve our performance; 3) Establish new businesses as new business pillars bypromoting more key investments and acquisitions; 4) And finally, promote further structural reforms for greater efficiency andbusiness conversion in the shrinking publishing and newspaper ink business, as well as the struggling TFT LCD business—
which is now experiencing intense competition.

/RQJ7HUP0DQDJHPHQW3ODQ',&9LVLRQ ²
■ 2XU5HYLVHG9LVLRQ(QKDQFLQJ&RUSRUDWH9DOXHE\0D[LPL]LQJ2XU6RFLDO6LJQLÀFDQFH
The global climate crisis has clarified our social goals for the next ten years. Given the introduction of the 2030 Sustainable
Development Goals (SDGs) and from the perspective of achieving carbon neutrality by 2050, the world has made great
strides toward devising a global solution towards achieving sustainability.
Moreover, COVID-19 has drastically changed people's behavioral patterns: People are now proactive about the so-called“new normal”—what we recognize as the transition to a digital society, including remote work and digital marketing. Unless
we take appropriate measures, a failure to adapt to this new normal will affect our corporate competitiveness. In the face ofsuch dramatic social change and paradigm shifts, our typical three-year management plan inevitably felt short-sighted. Thus,
I made the decision to shift to a long-term management plan.
What is the proper long-term perspective for a large company like ours? We considered what maximizes our social
significance beyond merely maximizing profits. We based our evaluation on the recognition that taking a long-term
perspective and improving corporate value favors overall shareholder interests. In other words, we see social interests as
inclusive of shareholder interests.

DIC Report 2022

14

Moving forward, we shall find our purpose in leveraging our company’s unique attributes (the reason for our existence)
to maximize our social significance, and continuously promote “purpose-driven management” by recognizing this as our
mission, sharing our purpose with all of our many stakeholders, beginning with our employees. Here, we have revised our
Vision Statement.
Based on our evolved Color and Comfort valued proposition, we’ve revised Vision Statement as follows:

We improve the human condition by safely deliveringcolor and comfort for sustainable prosperity—Color & Comfort
We’ve evolved our Color and Comfort value proposition to provide a wide range of value beyond chemistry, securing abrighter future for the planet and humanity. Here, we devised the long-term management plan DIC Vision 2030 with a basic
policy of “pursuing social benefits that include shareholder interests, striving to enhance long-term corporate, leveraging our
evolved Color & Comfort value proposition.”■ 7KH',&*URXSLQ
DIC Vison 2030 sets our sights on building a business portfolio that “contributes to sustainable prosperity” while “contributing
to the realization of sustainability for the global environment and for society.” Moreover, “to increase the sales ratio ofsustainable products from the current 40% to 60% by 2030” and “to achieve carbon neutrality by 2050 (DIC NET ZERO2050),” we’ve set a goal to “reduce annual CO 2 emissions by 50% of 2013 levels by 2030” (See Diagram 1).

1

Build a business portfolio that contributes tosustainable prosperity for society

Help achieve sustainability for the global
environment and for society2‫ ٴ‬Promote business portfolio transformation by expanding
businesses in growth markets and creating new businesses
to build a business portfolio that does not depend on ink‫ ٴ‬Advance sustainability strategies‫ ٴ‬Expand selection of sustainable products* with the aim ofto help realize a carbon-neutral society

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

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

TargetReduce annual CO2 emissions by 50% by FY2030

Contribute to a society that is increasinglyGreenz Achieve carbon neutralityz Realize a circular economy

Digitalz Propel the evolution of informationand communicationsz Drive the evolution of CASE
(Connected, Autonomous, Sharedand Electric) vehicles and Mobility as
a Service (MaaS)z Promote the development of AI andthe Internet of Things technologies

QOL

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

z Deliver safety, peace ofmind and conveniencez Prolong healthy life
expectancyz Embrace diverse values

Diagram 1: DIC Vision 2030 Targets

Addressing our business portfolio, we’ll seek to avoid an overreliance on our traditional ink products, building a diversified
business portfolio by more actively allocating management resources to our five newly established priority business areas tofurther increase social value. Moreover, to enhance our corporate value through the delivery of more sustainable products,
we’ve identified three key areas in which we are uniquely positioned to contribute to society: Green, Digital, and Quality ofLife (QOL).
We created two phases. Phase One, the first four years through 2025, will be a foundation building period, in which
management will emphasize investment efficiency and earning power using Return on Invested Capital (ROIC) management.
Here, we’ll promote business the portfolio transformation we’ve been promoting since the previous management plan. Phase
Two, the next five years through 2030, will be a period of realizing and developing our goals to expand sustainable productsthat contribute to solving social issues (See Diagram 2).

DIC Report 202215‫ ٴ‬Increase weighting of sustainable products*,
which help address social imperatives anddeliver both social value and economic value(FY2026–2030)

Realization of
DIC Vision 2030

‫ ٴ‬Adopt return on invested capital (ROIC)**
as a metric and seek to improve investment
efficiency(FY2022–2025)* For more information on sustainable products.
** ROIC: Net operating income after tax / (Net Interest-bearing debt + Net assets)

FY2030Foundation building

Sustainable products asa percentage of net sales

60%
FY2025

Sustainable products asa percentage of net sales

50%

FY2021¥855 billion¥43 billion
Operating income:Net sales:

5.0 ٫
4.8 ٫

Operating margin:
ROIC:

Sustainable products asa percentage of net sales

40%‫ق‬FY2020‫ك‬Net sales:¥1,300+ billion

Operating income:¥120+ billion

9.2+ ٫
8.0+ ٫

Operating margin:¥1,100 billion
Operating income:¥80 billion
Net sales:

ROIC:

7.3 ٫
6.0 ٫

Operating margin:
ROIC:

Diagram 2: Numerical Plan

■ %DVLF6WUDWHJ\IRU$FKLHYLQJ2XU7DUJHWVBusiness Portfolio Transformation: Our Five Priority Business Areas:H¶YHHVWDEOLVKHG¿YHSULRULW\EXVLQHVVDUHDVIRUSURPRWLQJEXVLQHVVSRUWIROLRWUDQVIRUPDWLRQPD[LPL]LQJRXULPSDFWVRQPDUNHWJURZWKand society: Sustainable Energy, Healthcare, Smart Living, Color Science, and Sustainable Packaging. We’ve determined that these are
WKH¿YHEXVLQHVVDUHDVRIIHULQJXVWKHJUHDWHVWRSSRUWXQLWLHVWRFRQWULEXWHWRVRFLDOLVVXHVDQGGHPDQGOHYHUDJLQJ',&*URXSVWUHQJWKV%\FRQFHQWUDWLQJPDQDJHPHQWUHVRXUFHVLQWKHVH¿YHDUHDVZH¶OOSURPRWHWKHHI¿FLHQF\RIRXUHIIRUWVWRZDUG9DOXH7UDQVIRUPDWLRQ
and New Pillar Creation. Notably, in Sustainable Energy and Healthcare, we’ll leverage DIC Group strengths to deliver products
such as next-generation high-capacity and long-life secondary battery materials, and high-performance nutrition based on naturally
derived materials. We’ll invest in these businesses and grow them into new pillar businesses in high-growth markets.
In Smart Living, Color Science, and Sustainable Packaging, we’ll continue expanding our business and maximizing synergies throughM&A. In this plan, we’ve positioned already mature markets like Publishing Inks and TFT LCDs for structural reform projects, and we plan
to continue optimizing business operations through right sizing while closely monitoring market conditions (See Diagram 3).

Next-generation/
growth businesses‫؞‬Step up intensive investment
in New Pillar Creation‫؞‬Demonstrate strengths
in highly promising markets

SustainableenergyBusinesses withstable earnings
bases‫؞‬Shift to growth areas by capitalizing
on existing business infrastructure‫؞‬Reinforce earnings bases
by transforming business models

ColorscienceBusinesses in needof structural reform‫؞‬Maximize profitability by improving efficiency

Healthcare
SmartlivingSustainable
packaging

Publication inks

TFT LCs

Diagram 3: Five Priority Business Areas

Business Portfolio Transformation: Five Measures Supporting Transformation,QDGGLWLRQWRFRQFHQWUDWLQJPDQDJHPHQWUHVRXUFHVRQ¿YHSULRULW\EXVLQHVVDUHDVZH¶YHDOVRGHYHORSHG¿YHYLWDOPHDVXUHVVXSSRUWLQJ
business portfolio transformation (See Diagram 4).
Enhance the technology platform

Make strategic investments

Reinforce management of human capital

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

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

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

Establish a more global management configuration

Promote IT and DX

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

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

Diagram 4: Five Measures

DIC Report 2022

16

$PRQJWKH¿YHPHDVXUHVVWUHQJWKHQLQJKXPDQFDSLWDOPDQDJHPHQWLVRQHRIRXUPRVWYLWDOVWUDWHJLHV:HQHHGDOO',&*URXSPHPEHUVto share our “corporate purpose” to truly become a Group pursuing social value. To that end, we must invest in a global HR system thatKHOSVRXUPHPEHUVPD[LPL]HWKHLUYDOXH$VRIDOO',&*URXSPHPEHUV DVRI'HFHPEHU DUHHPSOR\HGE\DI¿OLDWHVEDVHG
outside Japan, the DIC Group is truly a global organization. And as our diversity is a major source of our competitiveness, we must
continue to promote human resource development, actively acquiring talent from external sources while increasing meaningful roles
throughout the Group, regardless of a member’s nationality or gender. Moreover, with an eye toward a post-COVID-19 world, we must also
improve member motivation, promote workplace reforms through digitalization, and enhance productivity through process reforms. Moving
forward, we must focus on promoting internal communications, both within and outside Japan, fostering a sense of unity through empathy
and trust, and promoting the challenges needed for fostering innovation (See Diagram 5).
Three strategic priorities
Foster human resourcesz Global-based talent management and leadershiptrainingz Promote reskilling to maximize human resources

Ensure mobility (hiring, retention and succession)z Actively recruit people from different industries andpeople with digital capabilities
z Achieve optimal balance between specialists andgeneralistsz Succession planning

Improve engagement and organizational cohesivenessz Promote communication and use empathy and trust to
cultivate solidarity
z Advance innovation by encouraging enthusiasm about
taking on challenges

Personnel management platform
Framework creation: Global HR system

Risk management: Safety and compliance‫ ٴ‬Facilitate autonomous, multitrack career building‫ ٴ‬Ensure occupational health and safety, and appropriate labor practices‫ ٴ‬Adopt global HR system to create standardized Group framework‫ ٴ‬Improve compliance and reinforce HR governance

Enhance corporate culture: Value diversity and inclusion‫ ٴ‬Promote diversity, recognizing it as a source of competitiveness‫ ٴ‬Nurture inclusion, recognizing it as essential to making diversity a competitive advantage

Work style reform: Bolster job satisfaction and productivity‫ ٴ‬Implement reforms designed to increase job satisfaction, as well as workplace reforms and process reforms that reinforce productivity

Diagram 5: Reinforcing Human Capital Management

DIC Corporation is currently developing Work Style Revolution 2020 (WSR2020) promoting work style reform through a committeethat I’m chairing myself. This initiative seeks to promote “behavioral changes” by reviewing and radically changing the work styleof every member. We believe that senior management must work together with members at all levels to effectively transform ourorganization together, creating an ideal environment where all members can work effectively, with a sense of challenge, supporting
mutual growth, unbound by archaic customs or implicit rules. We seek to transform our culture to create an environment where all
can interact freely and say, “I'm glad I joined DIC.”
We’ll conduct internal research to measure how member awareness and behavior changes, and determine necessary course
FRUUHFWLRQVZKLOHPDLQWDLQLQJRSHQGLDORJVZLWKPHPEHUVIRUÀH[LEOHUHVSRQVHV8VLQJWKHRSSRUWXQLW\FUHDWHGE\WKH& (SLJPHQW
business acquisition, we’re strengthening our global management structure by promoting the global exchange of human resources
and information sharing. For example, we made the President of Sun Chemical Corporation—our controlling entity in Europe and
WKH86²DQ([HFXWLYH2I¿FHUDW',&&RUSRUDWLRQ²RXUJOREDOKHDGTXDUWHUV²VRZHFDQEHLQYROYHGLQUHIRUPVLQ(XURSHWKH86
and throughout the entire Group. Moving forward, we’ll continue increasing opportunities for Japanese and non-Japanese members
to work together on the same tracks in various departments within DIC Corporation.

DIC Report 2022

17

For strategic investments, we have established a 2025
strategic investment quota of 230 billion yen to grow thecompany, transform our business portfolio, and launch
new businesses. This investment quota encompasses
M&A funds for acquiring new technologies andoperations, as well as capital investments for launching
new products. For example, we’ll make a wide range ofinvestments in Sustainable Energy—which we’ll seek tocultivate as a new business pillar—and the five priority
business areas, particularly Smart Living. We’ll promptly
respond to changes in the environment and determine
investment targets.
Beside strategic investments, we’ve planned total 2025
investments of 70 billion yen, including green electricity to
reduce CO 2 emissions, technology platform expansions,and promoting IT digitalization. For our technology
platforms, we’ll shift to research and development utilizing
AI and materials informatics* while expanding design
technology for inorganic materials and biomaterials acquired in the C&E pigment business acquisition and joint developmentswith venture capital firms. We’ll also strengthen and accelerate our development of new technologies and new products.
0DWHULDOV,QIRUPDWLFV(IIRUWVWRLPSURYHWHFKQRORJLFDOGHYHORSPHQWHI¿FLHQF\XVLQJLQIRUPDWLFV LQIRUPDWLRQVFLHQFH DQGPHWKRGVWKDWXWLOL]HVWDWLVWLFDODQDO\VLVHWF

Our Sustainability Strategy

Our sustainability strategy seeks to demonstrate DIC’s strengths in the three key areas in which we are uniquely positioned
to contribute to society—Green, Digital, and QOL—defining “sustainable products” using our own proprietary sustainability
index that balances social contributions and environmental burden reductions as coordinates, as we seek to increase ourcurrent sales ratio of sustainable products from 40% to 60% by 2030. By providing new products, such as inks and pigments
using biomaterials as raw materials, low-dielectric materials compatible with high-capacity, high-speed communications, suchas 5G and 6G, and natural materials that support safe, secure, and convenient living, we believe we can provide a wide rangeof value beyond traditional chemistry.
Moreover, the DIC Group has been promoting DIC NET ZERO 2050 since 2021. Through Scope 1 and Scope 2 activities,
such as promoting the green electrification of production equipment, we aim to reduce annual CO 2 emissions by 50% of 2013
levels by 2030. Furthermore, by further reducing carbon contributions throughout the value chain, including Scope 3—forexample, by promoting recycling and biomaterials use—we aim to achieve carbon neutrality by 2050.
Promoting Sustainable Prosperity

The DIC Group’s acquisition of the C&E pigment business in 2021 has attracted more diverse human resources,
strengthening our global network. We anticipate a significant increase in sales in 2022 as we resolve logistics issues
that emerged upon closing the acquisition, expanding business activities with an eye toward the post-COVID-19 world.
Conversely, earnings remain uncertain due to the fluid situation amid ongoing geopolitical unrest and the accompanying risein energy prices.
Given current circumstances, to realize our revised Vision and long-term management plan DIC Vision 2030, we must
share our “corporate purpose” with stakeholders, promoting it among all DIC Group members. It is especially vital that we
all internalize this approach on a personal level. Since announcing DIC Vision 2030, senior management, including yours
truly, has commenced visits to our domestic facilities to discuss our renewed purpose and its significance, enhancing
understanding among all members. Moving forward, as conditions allow, I also hope to visit sites outside Japan as well.
Senior management must create a common understanding through direct dialogue with all members, engaging in frank
discussions to realize our plans.
The DIC Group shall strive to maximize Group profits as well as our social significance, to secure a brighter future for theplanet and humanity as expressed in our revised Vision. Recognizing the preciousness of peace, and how the DIC Group cancontribute to world, we must work with stakeholders to deliver sustainable prosperity and promote DIC’s development as “aunique and trusted global company.”

DIC Report 2022

18

DIC Vision 2030 Long-Term Management Plan',&KDVDQQRXQFHGDUHGH¿QHGYLVLRQVWDWHPHQW³:HLPSURYHWKHKXPDQFRQGLWLRQE\VDIHO\GHOLYHULQJFRORUDQGFRPIRUWIRUVXVWDLQDEOHSURVSHULW\²&RORU
&RPIRUW´DQGDQHZO\IRUPXODWHGORQJWHUPPDQDJHPHQWSODQ',&9LVLRQWRJXLGHLWWKURXJK¿VFDO\HDU

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

DIC in the Future1

Build a business portfolio that contributes tosustainable prosperity for society

Help achieve sustainability for the global
environment and for society2‫ ٴ‬Promote business portfolio transformation by expanding
businesses in growth markets and creating new businesses
to build a business portfolio that does not depend on ink‫ ٴ‬Advance sustainability strategies‫ ٴ‬Expand selection of sustainable products with the aim ofto help realize a carbon-neutral society

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

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

TargetReduce annual CO2 emissions by 50% by FY2030

Contribute to a society that is increasingly
Green

Digitalz Achieve carbon neutralityz Realize a circular economy

QOL

z Propel the evolution of informationand communicationsz Drive the evolution of CASE andMaaSz Promote the development of AI andthe IOT technologies

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

z Deliver safety, peace ofmind and conveniencez Prolong healthy life
expectancyz Embrace diverse values

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

Five priority
business areas
Smart living

Value Transformation

SustainableenergyStrengthen corporate structure throughqualitative reforms of businesses

Healthcare

New Pillar Creation

Sustainable
packaging

Color science–

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

Enhance the technology platform

Make strategic investments

Reinforce management of human capital

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

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

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

Establish a more global management configuration

Promote IT and DX

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

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

Sustainability Strategies
Expand sustainable products

Reduce CO2 emissions

Respond to a circular economy

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

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

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

DIC Report 2022

19

DIC Vision 2030 Long-Term Management Plan

1

Business Portfolio Transformation● ,GHQWLI\DQGFRQFHQWUDWHDOORFDWLRQRIPDQDJHPHQWUHVRXUFHVLQ¿YHSULRULW\EXVLQHVVDUHDVLQZKLFK',&FDQPDNHLPSRUWDQWFRQWULEXWLRQVWRDVRFLHW\

WKDWLVLQFUHDVLQJO\JUHHQGLJLWDODQG42/RULHQWHG
● %DVHGRQPDUNHWJURZWKSRWHQWLDODQGGHJUHHRILPSDFWRQVRFLHW\LGHQWLI\¿YHSULRULW\EXVLQHVVDUHDVDWWKHLQWHUVHFWLRQRI(6+UHODWHGLVVXHVDQG
',&¶VFRPSHWLWLYHVWUHQJWKV▶ Sustainable energy▶ Healthcare▶ Smart living ▶ Color science ▶ Sustainable packaging● (VWDEOLVKVXVWDLQDEOHHQHUJ\DQGKHDOWKFDUHDVQHZEXVLQHVVSLOODUV● 3URPRWH9DOXH7UDQVIRUPDWLRQLQVPDUWOLYLQJFRORUVFLHQFHDQGVXVWDLQDEOHSDFNDJLQJWRPDNHWKHVHEXVLQHVVHVPRUHVXVWDLQDEOH

Business Portfolio Transformation: Five Priority Business Areas

Sustainable energy

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

e.g.

Materials for secondary batteries and fuel cells
Functional organic fillers

e.g.

High-performance nutritional products
Natural skincare materials

Smart living

Color science

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

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

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

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

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

Five Strategies to Transform DIC’s Business Portfolio

Reinforce management of human capital

Make strategic investments

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

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

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

DIC Report 2022

20

DIC Vision 2030 Long-Term Management Plan

2

Sustainability Strategies● :RUNWRH[SDQGVXVWDLQDEOHSURGXFWVWKDWLVSURGXFWVWKDWGHPRQVWUDWHXQLTXHFRPSHWLWLYHVWUHQJWKVDQGUHVSRQGWR(6+UHODWHGLVVXHV

7DUJHW,QFUHDVHVXVWDLQDEOHSURGXFWVWRRIQHWVDOHVE\ÀVFDO\HDU ÀVFDO\HDU● 3URPRWHHIIRUWVWRUHGXFH&2HPLVVLRQVDQGKHOSUHDOL]HDFDUERQQHXWUDOVRFLHW\
Target: Achieve carbon neutrality by 2050 and reduce annual CO2HPLVVLRQV 6FRSHDQG E\IURPWKHÀVFDO\HDU
OHYHOE\ÀVFDO\HDU
● $GYDQFHHIIRUWVWRUHVSRQGWRDFLUFXODUHFRQRP\WKHUHE\FRQWULEXWLQJWRDVXVWDLQDEOHVRFLHW\

Value provided
by DIC products

The society to which DIC seeks to contributeGreenz Achieve carbon neutralityz Realize a circular economy

Digitalz Propel the evolution of information and communicationsz Drive the evolution of CASE vehicles and MaaSz Promote the development of AI and IoT technologies

QOL
z Deliver safety, peace of mind and conveniencez Prolong healthy life expectancyz Embrace diverse values

Sustainable product examples

z Contain renewable materials
z Lower energy use, improve
insulation and reduce weightz Address the issue of marine
plastics
z Can be recycled
z Reduce wastez Prolong product life

Sustainableenergy嵣 Materials for next-generation secondary
batteries and fuel cells
嵣 Functional inorganic fillers

Sustainable
packaging嵣 Materials with outstanding barrier properties
嵣 Biomass packaging

Color science嵣 Biomass pigments
嵣 Functional pigments for heat-blocking coatings

Smart living

嵣 Materials for 5G/6G-enabled devices
嵣 Resins for next-generation semiconductors

Color science嵣Functional pigments for LiDAR signal coatings

Healthcare

嵣 High-performance nutritional products嵣 Natural skincare materials

Color science嵣 Natural colorants for cosmetics

z Contribute to high-capacity,
high-speed communicationsz Support the IoTz Contribute to health and comfort
z Help reduce food lossz Reduce emissions of volatileorganic compounds (VOCs) andenhance safety&RQVROLGDWHG5HVXOWV7DUJHWV )LVFDO<HDUV²

(Billions of yen)

2021
Actual2022
Targets

2025
Targets

Change from2021

Net sales

855.4

950

1,100

+29٫

Operating income

42.9

54

80

+37.1

Operating margin

5.0%

5.7%

7.3%

+2.3 pt

Net income

4.4

28

45

+40.6

EBITDA*1

69.0

88

137

+68

ROIC*2

4.8%

5.2%

6.0%

+1.2 pt

Net D/E ratio*3(Net D/C ratio) *4

1.0

1.0

1 time(47.6%)(48.7%)

ٕ*1 EBITDA = Net income + Total income taxes + (Interest expenses – Interest income) + Depreciation and amortization*2 ROIC = Net operating income after tax / (Net interest-bearing debt + Net assets)*3 Net D/E ratio = Net interest-bearing debt / Net worth*4 Net D/C ratio = Net interest-bearing debt / (Net interest-bearing debt + Net assets)

DIC Report 2022

21

Less than‫ق‬Less than 50%‫ك‬12-Year Summary
Key Financial Data
Period

113

114

115

116

117

118

119

120

121

122

123

124

Fiscal year

2010

2011

2012

2013*3

2014

2015

2016

2017

2018

2019

2020

2021

IncomeNet sales (Billions of yen)

779.0

734.3

703.8

784.0

830.1

820.0

751.4

789.4

805.5

768.6

701.2

855.4

Operating income (Billions of yen)

37.2

35.0

38.5

44.1

41.1

51.1

54.2

56.5

48.4

41.3

39.7

42.9

Operating margin (%)

4.8

4.8

5.5

5.6

4.9

6.2

7.2

7.2

6.0

5.4

5.7

5.0

26.3

23.7

23.0

19.8

25.3

26.8

26.2

27.4

28.4

27.9

26.2

28.0

11.0

9.1

8.8

8.8

10.9

12.2

11.2

12.4

12.9

12.5

12.0

13.5

Ordinary income (Billions of yen)

31.7

30.8

35.1

40.9

39.9

49.0

55.8

57.0

48.7

41.3

36.5

43.8

Net income attributable to ownersof the parent (Billions of yen)

15.8

18.2

19.1

28.8

25.2

37.4

34.8

38.6

32.0

23.5

13.2

4.4

EBITDA (Billions of yen)

63.7

61.5

65.2

69.1

77.0

94.0

82.6

86.1

81.4

67.4

55.6

69.0

EBITDA margin (%)

8.2

8.4

9.3

9.8

9.3

11.5

11.0

10.9

10.1

8.8

7.9

8.1

Total assets (Billions of yen)

703.8

675.1

693.0

761.7

803.7

778.9

764.8

831.8

801.3

803.1

818.0

1,071.5

Net assets (Billions of yen)

130.4

124.5

160.7

218.9

276.7

289.9

307.0

344.0

327.3

343.5

351.4

381.0

Equity ratio (%)

15.3

15.1

19.8

25.6

31.1

33.7

36.4

37.9

37.3

38.9

38.9

32.3

Net interest-bearing debt
(Billions of yen)

314.7

298.8

293.0

283.6

257.4

244.1

224.0

247.8

244.7

235.8

221.9

346.0

Net D/E ratio (Times)

2.9

2.9

2.1

1.5

1.0

0.9

0.8

0.8

0.8

0.8

0.7

1.0

Net D/C ratio (%)

70.7

70.6

64.6

56.4

48.2

45.7

42.2

41.9

42.8

40.7

38.7

47.6

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

Financial Position

Cash FlowsNet cash provided by operating
activities (Billions of yen)
Net cash used in investing activities(Billions of yen)

30.9

31.2

41.4

33.9

46.4

29.1

62.5

54.2

51.0

50.6

54.5

44.8

(12.3)(17.6)(23.7)(9.8)(27.4)(10.0)(32.2)(58.9)(38.4)(24.9)(33.0)(147.6))UHHFDVKÀRZ %LOOLRQVRI\HQ

18.6

13.7

17.7

24.0

19.0

19.1

30.3

(4.7)

12.6

25.8

21.4

(102.8)(26.3)(7.1)(26.6)(32.8)(26.1)(24.8)(26.9)

11.4(11.8)(26.8)

6.3

99.5

22.9

29.6

22.5

15.0

16.4

15.1

16.7

17.7

18.6

16.7

41.4

37.6

Earnings per share (Yen)

175.96

197.90207.98292.26267.81

389.40366.72407.56338.40248.29139.81

46.12

Price earnings ratio (PER)(Times)

11.0

8.4

9.5

10.9

10.9

8.5

9.7

10.5

10.0

12.2

18.6

62.8

Net cash provided by (used in)¿QDQFLQJDFWLYLWLHV %LOOLRQVRI\HQ
Cash and cash equivalents(Billions of yen)

Per Share Information*2

Dividends per share (Yen)

40

40

60

60

60

80

100

120

125

100

100

100

22.7

20.2

28.8

20.5

22.4

20.5

27.3

29.4

36.9

40.3

71.5

216.8

ROIC (%)

5.8

5.8

6.3

6.1

5.7

6.9

7.3

7.2

6.0

5.2

5.0

4.8

Return on equity (ROE) (%)

15.1

17.3

16.0

16.1

11.3

14.6

12.9

13.0

10.4

7.7

4.2

1.3

20.8

27.0

26.6

27.1

33.6

32.1

31.3

33.6

32.1

35.0

34.0

38.6

33.0

29.7

27.4

25.9

33.8

32.9

32.4

31.5

32.8

33.1

32.6

37.4

Overseas sales ratio (%)

57.3

58.2

56.7

66.6

63.4

65.1

62.4

63.4

63.6

63.5

64.8

67.3

Average exchange rate (¥/US$)

87.69

79.77

79.93

97.06

106.32120.85109.96112.33110.46109.11106.37109.75

Average exchange rate (¥/EUR)

116.63110.88103.11129.25141.41134.14122.06127.03130.46122.13121.43129.73

Number of employees

21,572

20,455

20,273

20,034

20,411

20,264

20,481

20,628

20,62020,513

20,242

22,474

Payout ratio (%)

Other Indicators

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

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

DIC Report 2022

22

A Message from the CFOWith the aim of achieving the goals of DIC Vision 2030,
we have adopted ROIC as a metric and are working torealize business portfolio transformation.

Shuji Furuta
Head of Finance and Accounting Unit, CFO| Basic Approach

Strategic investments¥230 billion

With the aim of ensuring we evolve into the organization envisioned in our long-term
PDQDJHPHQWSODQ',&9LVLRQIRUPXODWHGLQ¿VFDO\HDUZHKDYHDGRSWHG
52,&ZKLFKUHIOHFWVLQYHVWPHQWHIILFLHQF\DQGHDUQLQJSRZHUDVDPHWULFDQGDUH
SURPRWLQJWKHWUDQVIRUPDWLRQRIRXUEXVLQHVVSRUWIROLR2XUDSSURDFKWRILQDQFLDOPDQDJHPHQWFHQWHUVRQEDODQFLQJWKUHHSULRULWLHVPDLQWDLQLQJVRXQG¿QDQFLDOKHDOWKLQYHVWLQJLQJURZWKDQGHQVXULQJUHWXUQVWRVKDUHKROGHUVWKDWDUHFRPPHQVXUDWHZLWKLQFRPHJURZWK:HZLOODOVRDFWLYHO\SODFHVXVWDLQDELOLW\DWWKHFHQWHURI¿QDQFLQJHIIRUWV,QDGGLWLRQWR52,&XQGHU',&9LVLRQZHZLOOHPSKDVL]HWKHQHWGHEWWRHTXLW\ '(
ratio*1WRJDXJH¿QDQFLDOKHDOWKWKHSD\RXWUDWLRWRHYDOXDWHUHWXUQVWRVKDUHKROGHUVDQGHDUQLQJVEHIRUHLQWHUHVWWD[HVGHSUHFLDWLRQDQGDPRUWL]DWLRQ (%,7'$ 2 to judge
DELOLW\WRJHQHUDWHFDVKDVLQGLFDWRUVRI¿QDQFLDOSHUIRUPDQFHDQGHIIRUWVWRPD[LPL]Hshareholder value.

Investments ininfrastructure building

Net D/E ratio

Re

ns t

er s

Financial

Maximize cash
generatedtur¥70 billion

Inve
stm

h
alt

row
s in g thent

he1.0 timeso s hareho

Payout ratio

ld

30 %

Metric: ROIC

| Emphasis on Boosting ROIC and Maintaining Sound Financial Health:HKDYHVHWDORQJWHUPJRDORIERRVWLQJ52,&WRSOXVLQ¿VFDO\HDU7RDGYDQFHWKHWUDQVIRUPDWLRQRIRXUEXVLQHVVSRUWIROLRDQG
IXUWKHUEROVWHUFDSLWDOHI¿FLHQF\ZHDUHPDNLQJWKHPRVWRIFDVKJHQHUDWHGLQEXVLQHVVHVZLWKVWDEOHHDUQLQJVEDVHVWKURXJKUHLQYHVWPHQWLQ
QH[WJHQHUDWLRQJURZWKEXVLQHVVHVDQGKDYHHVWDEOLVKHGFULWHULDIRUZLWKGUDZLQJIURPEXVLQHVVHVZLWKORZJURZWKSRWHQWLDODQGSUR¿WDELOLW\:HHPSOR\(%,7'$DQGWKHFDVKFRQYHUVLRQF\FOH &&& DVPHWULFVIRUFDVKSURYLGHGE\RSHUDWLQJDFWLYLWLHV,QDGGLWLRQWRXVLQJ(%,7'$
WRPHDVXUHRXUDELOLW\WRJHQHUDWHFDVKZHPRQLWRUWKHGHEWWR(%,7'$UDWLRWRDVVHVV¿QDQFLDOVRXQGQHVVIURPWKHSHUVSHFWLYHRIFDVKÀRZ:HDOVRPDQDJH&&&XVHGWRDVVHVVZRUNLQJFDSLWDOPHWLFXORXVO\E\DPRQJRWKHUVVHWWLQJUHJLRQDOWDUJHWV2XUJRDOIRU¿QDQFLDOVRXQGQHVVLVWRPDLQWDLQRXUQHW'(UDWLRDWDURXQGWLPHVXQGHUVFRULQJRXUGHWHUPLQDWLRQWRXSKROGVRXQG
¿QDQFLDOKHDOWKZKLOHDOVRSXUVXLQJDQDFWLYHLQYHVWPHQWVWUDWHJ\:HZLOODOVRFRQWLQXHFUHDWLQJVDIHW\QHWVDJDLQVWVXGGHQVKDUSÀXFWXDWLRQVLQWKHRSHUDWLQJHQYLURQPHQWLQFOXGLQJE\SURFXULQJIXQGVWKURXJKVXERUGLQDWHGWHUPORDQVDW\SHRIK\EULG¿QDQFLQJUHFRJQL]HGE\FUHGLWUDWLQJDJHQFLHVDVKDYLQJHTXLW\FUHGLWDWWULEXWHVHVWDEOLVKLQJDJOREDOFRPPLWPHQWOLQHDQGNHHSLQJWKHSHUFHQWDJHRIWRWDOERUURZLQJVDFFRXQWHGIRUE\ORQJWHUPGHEWDW
Net interest - bearing debt (Billions of yen)
Shareholders’ equity (Billions of yen)
Net D/E ratio (Times)

Financial Health

ROIC (%)

ROIC*・EBITDA

Maintain a net D/E ratioof around 1.0 times

EBITDA (Billions of yen)

8.0-plus

1.00
0.82

0.75

5.2

346.0 345.9
312.7

298.9
244.7

235.8

6.0

6.0

0.70

5.0

318.5

4.8

221.9

5.1
137.0

88.0

81.4
69.0

67.4
55.6

2018

2019

2020

2021

2022

(FY)

(Forecast)

2018

2019

2020

2021

2022

(Forecast)

2025(Target)2030 (FY)(Target)* ROIC: Operating income x (1 – effective tax rate) / (Net interest-bearing debt + Net assets)

DIC Report 2022

23

A Message from the CFO| Investments to Accelerate Growth
7RDFKLHYHWKHWDUJHWVRI',&9LVLRQZHZLOODOORFDWHDWRWDORIELOOLRQWRLQYHVWPHQWV²FRPSULVLQJELOOLRQIRUVWUDWHJLFLQYHVWPHQWV
DQGELOOLRQIRULQYHVWPHQWVLQLQIUDVWUXFWXUHEXLOGLQJ²RYHUWKHIRXU\HDUVIURP¿VFDO\HDUWKURXJK¿VFDO\HDU6WUDWHJLFLQYHVWPHQWVZLOOIRFXVRQDGYDQFLQJ9DOXH7UDQVIRUPDWLRQLQWKUHHRIWKH¿YHSULRULW\EXVLQHVVDUHDVVHWIRUWKLQWKHSODQ VPDUWOLYLQJFRORUVFLHQFHDQG
VXVWDLQDEOHSDFNDJLQJ WRPDNHWKHVHEXVLQHVVHVPRUHSURILWDEOHDQG1HZ3LOODU&UHDWLRQLQWKHUHPDLQLQJWZR VXVWDLQDEOHHQHUJ\DQG
KHDOWKFDUH WRHVWDEOLVKWKHVHDVQHZEXVLQHVVSLOODUV,QYHVWPHQWVLQLQIUDVWUXFWXUHEXLOGLQJZLOOHPSKDVL]HFRQWULEXWLQJWRVXVWDLQDELOLW\LQFOXGLQJWKURXJKWKHUHGXFWLRQRI&22HPLVVLRQVHQKDQFLQJRXUWHFKQRORJ\SODWIRUPDQGSURPRWLQJ,7DQGGLJLWDOWUDQVIRUPDWLRQ ';  Principal Strategic Investments

Investments in start-ups/capital ties

Green Science Material, Inc.

Liaoning Tianqi
Technology Co., Ltd.

BASF Colors & Effects

March 2021 Japan
Expand algae products portfolio

Vaxa Technologies Ltd.

May 2020
Expand gravure inks production basein the PRC(Packaging & Graphic)

June 2021 Cost of acquisition: €1,010 million
Expand functional pigments portfolio(Color & Display)

April 2021 Israel
Expand business byadding depth to biotechnology
capabilities and expanding
related businesses

Seller Ink
Vaxa Technologies Ltd.

Green Science Materials, Inc.

September 2020
Secure specialty inks production
base in Central America(Packaging & Graphic)

SAPICI S.p.A.
Sensient Imaging
Technologies
June 2020
Expand jet inks portfolio(Packaging & Graphic)

January 2022
Expand packaging adhesives portfolio(Packaging & Graphic, Functional Products)

Ideal Chemi Plast Private Limited
May 2019
Secure coating resins production
base in India(Functional Products)

Packaging & Graphic
Color & Display
Functional Products| Promoting Sustainable Finance:HFRQWLQXHWRDFFHOHUDWHHIIRUWVWRVHFXUHVXVWDLQDEOH¿QDQFHZLWKWKHDLPRISURPRWLQJWKHVXVWDLQDELOLW\VWUDWHJLHVRI',&9LVLRQ
DVDFRUHFDWHJRU\RIVWUDWHJLHVVHWIRUWKLQWKHSODQ7KHWHUP³VXVWDLQDEOH¿QDQFH´GHVFULEHVWKHSUDFWLFHRILQFRUSRUDWLQJ(6*FULWHULD²LQFOXGLQJHQYLURQPHQWDOLVVXHVVXFKDVFOLPDWHFKDQJHDQGVRFLDOFRQVLGHUDWLRQVVXFKDVKXPDQULJKWVDQGSRYHUW\²LQWR¿QDQFLDOVHUYLFHVWRKHOSEULQJDERXWVXVWDLQDEOHRXWFRPHV:HDUHFRPPLWWHGWRHQWHULQJLQWRVXVWDLQDEOH¿QDQFHDJUHHPHQWVWRDGYDQFHRXUVXVWDLQDELOLW\VWUDWHJLHVDVZHOODVWRFRQWULEXWHWRWKHDFKLHYHPHQWRIWKH6'*V

Major Achievements in Sustainable FinanceTimingDescription

September 2019

%HFRPHV¿UVWFKHPLFDOVLQGXVWU\FRPSDQ\WRVLJQ0L]XKR(FR)LQDQFHFRQWUDFWZLWK0L]XKR%DQN/WG

September 2020

&RQFOXGHV3RVLWLYH,PSDFW)LQDQFH ZLWKXQVSHFLILHGXVHRIIXQGV ORDQDJUHHPHQWZLWK6XPLWRPR0LWVXL7UXVW%DQN/LPLWHG

March 2022

&RQFOXGHV3RVLWLYH,PSDFW)LQDQFHORDQDJUHHPHQWZLWK0L]XKR%DQN/WG

April 2022

(QWHUVLQWRJUHHQORDQDJUHHPHQWZLWK08)-%DQN/WG

Interim dividend (Yen)
216.8
Year-end dividend (Yen)
Payout ratio (%)

Returns to Shareholders| Stable Returns to Shareholders:LWKWKHDLPRIFRQWLQXLQJWRHQVXUHVWDEOHUHWXUQVWRVKDUHKROGHUV',&9LVLRQPDLQWDLQVRXUH[LVWLQJWDUJHWIRUDFRQVROLGDWHG
GLYLGHQGSD\RXWUDWLRRIZKLFKZLOOVHUYHDVDJXLGHOLQHIRU
GLYLGHQGVRYHUWKHPHGLXPWHUP,Q¿VFDO\HDUZHSDLGDIXOOWHUPGLYLGHQGRIFRPSULVLQJDQLQWHULPGLYLGHQGRI
DQGD\HDUHQGGLYLGHQGRI:HDOVRDQWLFLSDWHDQDQQXDOGLYLGHQGRILQ¿VFDO\HDU
'(UDWLR,QWHUHVWEHDULQJGHEW6KDUHKROGHUV¶HTXLW\
(%,7'$1HWLQFRPHDWWULEXWDEOHWRRZQHUVRIWKHSDUHQW7RWDOLQFRPHWD[HV ,QWHUHVWH[SHQVHV±,QWHUHVWLQFRPH 'HSUHFLDWLRQDQGDPRUWL]DWLRQ

40.3

71.5

36.9
33.8
125
100

100

100

100

40

50

50

50

60

50

50

50

2018

2019

2020

2021

3.7

3.3

3.8

3.5

65
60

30

Yield
(%)*

2022 (FY)(Forecast)* Dividend yield: Annual dividends / Closing price per share at fiscal year-end

DIC Report 2022

24

Packaging & Graphic
3DFNDJLQJ0DWHULDOVWKDW%ULQJ
6DIHW\DQG3HDFHRI0LQG
Masamichi Sota

SDGs Goals 12, 13 and 14

0DQDJLQJ([HFXWLYH2I¿FHU
3UHVLGHQW3DFNDJLQJ *UDSKLF%XVLQHVV*URXSMain Products

7KLVVHJPHQWLQFOXGHVQRWRQO\SULQWLQJLQNVEXWDOVRDGKHVLYHVILOPVDQGDEURDGUDQJHRIRWKHUSDFNDJLQJPDWHULDOVDQG
VROXWLRQVWKHPDUNHWVIRUZKLFKFRQWLQXHWRVHHUREXVWJURZWKLQ
$VLDDQGHPHUJLQJHFRQRPLHV

［Printing Materials］*UDYXUHLQNVÀH[RLQNVRIIVHWLQNVQHZVLQNVMHWLQNVPHWDOGHFRUDWLYHLQNVSULQWLQJSODWHVVHFXULW\LQNV［Packaging Materials］
3RO\VW\UHQHSDFNDJLQJDGKHVLYHVPXOWLOD\HU¿OPV

Segment Operating Results
Operating Income

Net Sales(Billions of yen)

439.8
388.4

(Billions of yen)

480.0

21.8

119.2

5.7

114.7

102.3

80.2

73.1

62.0

FY2020
Japan

5.3

4.8

12.2

13.2

4.4

3.8

295.2

265.1

235.4

24.0

21.6

FY2021The Americas
and Europe

FY2022 (Forecast)

FY2020China andAsia Pacific

Japan

13.8

4.5

FY2021The Americas
and Europe

FY2022 (Forecast)

China andAsia Pacific

1RWH*UDSK¿JXUHVLQFOXGHLQWHUUHJLRQDOWUDQVDFWLRQVZLWKLQWKHVHJPHQW$FFRUGLQJO\WKHDJJUHJDWHVRIUHJLRQDOQHWVDOHVDQGRSHUDWLQJLQFRPH¿JXUHVIRUWKHVHJPHQWGLIIHUIURPWKH¿JXUHVSUHVHQWHGDERYHDIC Report 2022

25

Business Strategies Under DIC Vision 2030
 Looking ahead to the realization of a circular economy, work to develop sustainable next-generation packaging materials with the aim of locking in new
demand and expanding the packaging materials business Take the lead in the market for next-generation sustainable packaging by developing products and proposing solutions compatible with a focus on the “5Rs”*
 Accelerate shift to high-performance, high-value-added products by, among others, expanding specialty products, promoting digitalization and responding
to demand for smart packaging
 Build existing businesses into stable revenue sources by securing organic growth and streamlining operations in Asia

Basic
Strategies

andNet Sales and Operating
Income Targets

500

40

400

30
300
20
200
10

100
0

2021

2022

0
2025 (FY)Operating income (Billions of yen)

50

600

Net sales (Billions of yen)

Principal
Measures

Develop packaging materials and propose packaging solutions with a focus on the 5Rs
嵣 Hasten the global deployment of fast-curing solvent-free adhesive DUALAM ®
嵣 Add depth to sustainable technologies, including those essential to the push toward paper,mono-material and biomass packaging, as well as those for deinking
嵣 Build a closed-loop recycling system for polystyrene employing chemical recycling
Propose packaging solutions that capitalize on Group capabilities and deliver safety,
peace of mind and convenience嵣 Develop functional films, including resealable products and peelable offerings forcontainer lid films
嵣 Capitalize on technologies for reducing foreign matter in packaging materials to improve safety
and peace of mind
Address needs arising from the spread of digitalization
嵣 Expand applications for water-based jet inks for industrial printing
嵣 Respond to increased use of jet inks for printing on packaging(paper containers, corrugated cardboard, labels, etc.) and on textiles,QWKH3DFNDJLQJ *UDSKLFEXVLQHVVWKH',&*URXSZRUNVWRKHOSUHDOL]HVDIHVHFXUHDQGFRQYHQLHQWOLIHVW\OHVE\RIIHULQJSDFNDJLQJPDWHULDOVVXLWDEOHIRUDFLUFXODUHFRQRP\:LWKDIRFXVRQWKH5VWKH*URXSZLOOFRQWLQXHVWULYLQJWRDGGGHSWKWRVXVWDLQDEOHWHFKQRORJLHVLQFOXGLQJWKRVH
HVVHQWLDOWRWKHSXVKWRZDUGSDSHUPRQRPDWHULDODQGELRPDVVSDFNDJLQJDVZHOODVWKRVHIRUGHLQNDEOHUHOHDVDEOHDQGSHHODEOHPDWHULDOVZLWKWKHDLPRISURYLGLQJPDUNHWOHDGLQJQH[WJHQHUDWLRQVXVWDLQDEOHSURGXFWV7KH*URXSLVDOVRDGYDQFLQJHIIRUWVWREXLOGDFORVHGORRSUHF\FOLQJ
V\VWHPIRUSRO\VW\UHQHHPSOR\LQJFKHPLFDOUHF\FOLQJOHYHUDJLQJMHWLQNWHFKQRORJLHVWRSURPRWHGLJLWDOL]DWLRQDQGUHVSRQGLQJWRGHPDQGIRU
VPDUWSDFNDJLQJ7KH*URXSZLOOVHHNWREXLOGH[LVWLQJEXVLQHVVHVLQWRVWDEOHUHYHQXHVRXUFHVE\ORFNLQJLQGHPDQGDQGVWUHDPOLQLQJRSHUDWLRQV
LQ$VLDDQGRWKHUSURPLVLQJPDUNHWVKey Development in Fiscal Year 2021',&*UDSKLFV([SDQGV,WV/LQHXSRI6,$$&HUWLÀHG$QWLEDFWHULDODQG$QWLYLUDO9DUQLVKHVDQG(QYLURQPHQW)ULHQGO\3URGXFWVImparting outstanding antibacterial and antiviral properties to packaging for food products and daily necessities as well as a broad
range of printed materials,Q ILVFDO \HDU  ',& *URXS FRPSDQ\ ',& *UDSKLFVH[SDQGHGLWVOLQHXSRIDQWLEDFWHULDODQGDQWLYLUDOYDUQLVKHVIRU XVH ZLWK JUDYXUH IOH[R DQG RIIVHW SULQWLQJ LQNV WKDWKDYHHDUQHG6RFLHW\RI,QWHUQDWLRQDOVXVWDLQLQJJURZWKIRU
$QWLPLFURELDO$UWLFOHV 6,$$ FHUWL¿FDWLRQDQGWKXVEHDUDQ
6,$$PDUN
7KH&29,'SDQGHPLFKDVLQFUHDVHGQHHGVUHODWHGWR
WKHGLVLQIHFWLRQRIOLYLQJVSDFHVVSXUULQJWKHH[SDQGHGXVHRIDQWLEDFWHULDODQGDQWLYLUDOSURGXFWVWRSUHYHQWWKHVSUHDGRILQIHFWLRQRZLQJWRWKH
KDQGOLQJRISDFNDJLQJIRUIRRGSURGXFWVDQGGDLO\QHFHVVLWLHVDVZHOODVSULQWHGPDWHULDOVVXFKDVFDWDORJV$VSDUWRILWVGULYHWRH[SDQGLWVOLQHXSRIHQYLURQPHQWIULHQGO\SURGXFWVWKH',&*URXSLVDOVRGHYHORSLQJLQNVPDGHZLWKSODQWGHULYHGELRPDVVWKDWFRQWULEXWHWRHIIHFWLYHUHVRXUFHXVH
DQGGRQRWUHO\RQ¿QLWHUHVRXUFHVWKHUHE\HQVXULQJVXLWDELOLW\IRUDFLUFXODUHFRQRP\.H\DQQRXQFHPHQWVE\',&DQG',&*UDSKLFVGXULQJWKHSHULRGXQGHUUHYLHZLQFOXGHGWKHIROORZLQJ0DUFK&RPPHUFLDOL]DWLRQRIWKHDICDRY%0VHULHVRIELRPDVVEDVHGDGKHVLYHVIRUÀH[LEOHSDFNDJLQJLVDFFHOHUDWHG$SULO)LYHELRPDVVEDVHGLQNVIRURIIVHWSULQWLQJHDUQ%LRPDVV0DUN
0D\GROSSA%0ELRPDVVEDVHGLQNIRUUHYHUVHSULQWLQJDQGDQWLYLUDOYDUQLVKLVODXQFKHG$XJXVW%LRPDVVEDVHGFINART%0JUDYXUHLQNVREWDLQ2.&RPSRVW,1'8675,$/DQG2.&RPSRVW+20(FHUWL¿FDWLRQ
About DIC Graphics’ Antibacterial and Antiviral Varnishes
7KHHIIHFWLYHQHVVRIWKHVHYDUQLVKHVLQLQKLELWLQJWKHSUROLIHUDWLRQRIVSHFL¿HGEDFWHULDRQWKHVXUIDFHVRIDQWLEDFWHULDOSURGXFWVKDVEHHQFRQ¿UPHGLQWHVWVFRPSOLDQWZLWK-,6=WKH-DSDQHVH,QGXVWULDO6WDQGDUGV¶VWDQGDUGIRUDQWLEDFWHULDODFWLYLW\DQGHI¿FDF\DJDLQVWVSHFL¿FEDFWHULDRQSODVWLFPHWDOVFHUDPLFVDQGRWKHUVXUIDFHVZKLOHWKHLUDELOLW\WRUHGXFHVSHFL¿HGYLUXVHVRQVXUIDFHVKDVEHHQFRQ¿UPHGLQWHVWVFRPSOLDQWZLWK,62WKH,QWHUQDWLRQDO2UJDQL]DWLRQIRU6WDQGDUGL]DWLRQ¶VVWDQGDUGIRUDQWLYLUDODFWLYLW\RQSODVWLFVDQGRWKHUQRQSRURXVVXUIDFHV$OWKRXJKDQWLEDFWHULDODQGDQWLYLUDOHIIHFWLYHQHVVKDVEHHQFRQ¿UPHGDFWXDOSHUIRUPDQFHPD\GLIIHUGHSHQGLQJRQDSSOLFDWLRQSULQWLQJHQYLURQPHQWSURFHVVLQJFRQGLWLRQVVXEVWUDWHRUVWRUDJHFRQGLWLRQV 7KH6,$$LVDQRUJDQL]DWLRQRIDQWLEDFWHULDODJHQWDQGSURGXFWPDQXIDFWXUHUVDQGWHVWLQJERGLHVWKHJRDORIZKLFKLVWRSRSXODUL]HSURGXFWVWKDWKDYHEHHQVDIHO\DQGDSSURSULDWHO\WUHDWHG7DNLQJLQWRDFFRXQWWKHYLHZVRIQRWRQO\LQGXVWU\EXWDOVRFRQVXPHUUHSUHVHQWDWLYHVH[SHUWVDQGJRYHUQPHQWDXWKRULWLHVWKH6,$$FUHDWHVFULWHULDIRUWKHTXDOLW\DQGVDIHW\RIDQWLEDFWHULDOSURGXFWVDQG
DGPLQLVWHUVWKH6,$$0DUNODEHOOLQJSURJUDPIRUSURGXFWVLWFHUWL¿HVDVFRPSO\LQJZLWKWKHVHFULWHULDDIC Report 2022

26

Color & Display&RORUDQG'LVSOD\0DWHULDOVWKDW
0DNH/LIH&RORUIXO
Yoshinari Akiyama

SDGs Goals 3 and 13

0DQDJLQJ([HFXWLYH2I¿FHU
3UHVLGHQW&RORU 'LVSOD\%XVLQHVV*URXSMain Products
3URGXFWVLQWKLVVHJPHQWLQFOXGHDZLGH
YDULHW\RIPDWHULDOVLQGLVSHQVDEOHWRGLJLWDOGHYLFHVLQFOXGLQJ/&PDWHULDOVDQGRUJDQLFSLJPHQWVIRUFRORUILOWHUVDVZHOODVSLJPHQWVIRUFRVPHWLFVQDWXUDOFRORUDQWVDQGRWKHUPDWHULDOVWKDWDUH
VDIHDQGJHQWOHIRUXVHE\SHRSOH

［Color Materials］
3LJPHQWVIRUSULQWLQJLQNVSLJPHQWVIRUFRDWLQJVDQGSODVWLFVSLJPHQWVIRUVSHFLDOW\DSSOLFDWLRQVSLJPHQWVIRUFRORU¿OWHUVSLJPHQWVIRUFRVPHWLFVKHDWKIRRGV［Display Materials］
7KLQ¿OPWUDQVLVWRUOLTXLGFU\VWDO 7)7/& PDWHULDOVVXSHUWZLVWHGQHPDWLF
OLTXLGFU\VWDO 671/& PDWHULDOVSegment Operating Results
Net Sales

16.0

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

220.0
167.2

7.2

30.3

8.4

4.0

32.6

105.8

5.6

27.9

209.3

8.8

6.9

145.7

2.8

85.2
‒2.8

FY2020Japan

FY2021

FY2022 (Forecast)

FY2020OverseasJapan

FY2021

FY2022 (Forecast)

Overseas

1RWH*UDSK¿JXUHVLQFOXGHLQWHUUHJLRQDOWUDQVDFWLRQVZLWKLQWKHVHJPHQW$FFRUGLQJO\WKHDJJUHJDWHVRIUHJLRQDOQHWVDOHVDQGRSHUDWLQJLQFRPH¿JXUHVIRUWKHVHJPHQWGLIIHUIURPWKH¿JXUHVSUHVHQWHGDERYHDIC Report 2022

27

Business Strategies Under DIC Vision 2030
 Establish an unrivaled competitive advantage by swiftly realizing synergies with the Colors & Effects business Shift focus to materials with outstanding decorative properties and functionality and increase the weighting of sustainableproducts that deliver both social value and economic value
 Redefine “Spirulina business” as “healthcare business”
 Redefine “LCs business” as “electronics business”

Basic
Strategies

Net Sales and Operating
Income Targets

Principal
Measures

50
40

200
30
20
100
10
0
2021

0
2025 (FY)2022.

Operating income (Billions of yen)

Net sales (Billions of yen)

300

Expand selection of sustainable materials, functional materials and materials withoutstanding decorative properties
嵣 Focus on the expansion of effect pigments with outstanding decorative properties
and sustainable color materials that are safe and environment friendly嵣 Emphasize functional pigments, including those for LiDAR signal coatings, which
are key to autonomous driving vehicles
嵣 Enter the markets for red and yellow pigments for displays
Enhance pigments for cosmetics business嵣 Expand effect pigments for cosmetics
嵣 Broaden portfolio of naturally derived products
Reinforce healthcare business by introducing new products
嵣 Expand portfolio beyond Spirulina and Linablue® by adding new nutritional
supplements, natural colorants and cosmetics materials
Create new next-generation businesses, which will join core TFT LCs
嵣 Expand presence in the market for products for electronics applications by augmenting
portfolio of materials for smart windows, and 5G/6G-enabled devices, among others

7KH&RORU 'LVSOD\EXVLQHVVVDZWKHVFRSHRILWVRSHUDWLRQVH[SDQGVLJQL¿FDQWO\LQ¿VFDO\HDUZLWK',&¶VDFTXLVLWLRQRIWKH&RORUV (IIHFWVEXVLQHVVIURP%$6)DVDUHVXOWRIZKLFKWKH&RPSDQ\EHFDPHRQHRIWKHZRUOG¶VOHDGLQJSLJPHQWVPDQXIDFWXUHUVERDVWLQJGLYHUVH
WHFKQRORJLHVUDQJLQJIURPRUJDQLFV\QWKHVLVWRLQRUJDQLFPDWHULDOGHVLJQ%\LQWHJUDWLQJ&RORUV (IIHFWV¶WHFKQRORJLHVDQGLQWHOOHFWXDOSURSHUW\ZLWKLWVRZQ',&ZLOOOHYHUDJHWKHUHVXOWLQJXQSDUDOOHOHGGHYHORSPHQWFDSDELOLWLHVWRVKLIWLWVIRFXVWRIXQFWLRQDOSLJPHQWVLQFOXGLQJSLJPHQWVZLWKRXWVWDQGLQJGHFRUDWLYHSURSHUWLHVDQGSLJPHQWVIRUDXWRPRWLYHFRDWLQJVWKDWGRQRWLQWHUIHUHZLWKDXWRQRPRXVGULYLQJYHKLFOHV¶DELOLW\WRGHWHFW/L'$5VLJQDOVDQGVZLIWO\UHDOL]HV\QHUJLHVWRHVWDEOLVKD
SUHVHQFHXQULYDOHGE\DQ\RILWVFRPSHWLWRUV7KH',&*URXSZLOODOVREURDGHQWKHHPSKDVLVRILWV6SLUXOLQDEXVLQHVVWRKHDOWKFDUHRYHUDOOHQFRPSDVVLQJQDWXUDOO\GHULYHGQXWULWLRQDOVXSSOHPHQWVQDWXUDOFRORUDQWVDQGFRVPHWLFVPDWHULDOV,QWKHDUHDRI/&PDWHULDOVWKH*URXSZLOOH[SDQGLWVSUHVHQFHLQWKHPDUNHWIRU
SURGXFWVIRUHOHFWURQLFVDSSOLFDWLRQVE\DXJPHQWLQJLWVSRUWIROLRRIPDWHULDOVIRUVPDUWZLQGRZVDQG**HQDEOHGGHYLFHVDPRQJRWKHUVKey Development in Fiscal Year 2021
Sun Chemical Introduces the “What’s IN Asia” Trends Program
3URYLGLQJLQVLJKWVLQWRWUHQGVLQWKH$VLD±3DFL¿FUHJLRQ¶VFRVPHWLFVPDUNHW,Q¿VFDO\HDU86*URXSFRPSDQ\6XQ&KHPLFDOLQWURGXFHG³:KDW¶V,1$VLD´DSURJUDPRIIHULQJLQVLJKWVLQWRWUHQGVLQWKH$VLD±
3DFL¿FUHJLRQ¶VFRVPHWLFVPDUNHWDORQJVLGHVDPSOHIRUPXODWLRQV7KLVVHPLDQQXDORQOLQHSURJUDPZLOOFRQWLQXHWRLQVSLUHFXVWRPHUVDURXQGWKHZRUOGE\SURYLGLQJLQIRUPDWLRQVWUDLJKWIURP$VLDRQWKHODWHVWFRORUVWH[WXUHVDQGPDUNHWGLUHFWLRQV9ROXPH)DOOWKH
¿UVWLQVWDOOPHQWRIWKLVSURJUDPKLJKOLJKWHGGuochao ³QDWLRQDOWUHQG´ ²DPRYHPHQWFHQWHUHGRQPRGHUQFRQVXPHUJRRGVLQIXVHGZLWK&KLQHVHFXOWXUDOHOHPHQWV²LQWKH3HRSOH¶V5HSXEOLFRI&KLQD 35& WRSVHOOLQJEHDXW\SURGXFWVLQ-DSDQDQGWKHWUHQGWRZDUG³VLPSOH
DQGVXEWOH´EHDXW\LQWKH5HSXEOLFRI.RUHD 52. SURYLGLQJPXOWLSOHVDPSOHIRUPXODWLRQVIRUHDFK3DUWLFXODUO\QRWDEOHDQGHYRFDWLYHRIWKHQHHGVRIFRQVXPHUVZDQWLQJWRWU\VRPHWKLQJQRYHOLQDSRVWSDQGHPLFUHWXUQWRXVLQJPDNHXSZDVDQLQQRYDWLYHOLSPXGWKDWRIIHUVDWKLFNWH[WXUHZLWKDXQLTXHYHOYHW\¿QLVK7KLVLVDFKLHYHGE\OHYHUDJLQJ6XQ&KHPLFDO¶VQHZO\H[SDQGHGSLJPHQWVSRUWIROLRGUDZLQJRQERWKDFRQYHQWLRQDORUJDQLFSLJPHQWDQGWKH
SHDUOHVFHQW5HGÀHFNV™ 0XOWL'LPHQVLRQV6KLIWLQJ6DSSKLUH*'SLJPHQW
IURP&RORUV (IIHFWVWRGHOLYHUDORRNWKDWLVERWKPDWWHDQGVSDUNOLQJWKDQNVWRWKHLQWHUIHUHQFHFRORUWUDYHOHIIHFWFUHDWHGZLWKWKHODWWHUZKLFKSURYLGHVDÀDVKRIEOXHDQGDWRXFKRIVSDUNOHWRWKHGHHSUHGEDFNJURXQGFRORU
5HÀHFNV™ 0XOWL'LPHQVLRQV6KLIWLQJ6DSSKLUH*'DIC Report 2022

28

Functional Products)XQFWLRQDO3URGXFWVWKDW$GG&RPIRUWTakashi Ikeda

SDGs Goals 6, 12 and 13

0DQDJLQJ([HFXWLYH2I¿FHU
3UHVLGHQW)XQFWLRQDO3URGXFWV%XVLQHVV*URXSMain Products［Performance Materials］

7KLVVHJPHQWSURYLGHVFRDWLQJDQG
FRPSRVLWHPDWHULDOVZLWKGLYHUVH
IXQFWLRQVWKDWDGGUHVVHQYLURQPHQWDOLVVXHVDQGDUHXVHGZLGHO\LQVWDWHRIWKHDUWHOHFWURQLFVSURGXFWV6\QWKHWLFUHVLQVIRULQNVDQGFRDWLQJVPROGHGSURGXFWVDGKHVLYHVDQGWH[WLOHV SRO\HVWHUUHVLQV
HSR[\UHVLQVSRO\XUHWKDQHDFU\OLFUHVLQVSODVWLFL]HUVSKHQROLFUHVLQV SDSHUPDNLQJFKHPLFDOVDON\OSKHQROVVXOSKXUFKHPLFDOV¿EHUDQGWH[WLOHFRORUDQWVPHWDOFDUER[\ODWHVVXUIDFHPRGL¿HUVIRU
HOHFWURQLFVPDWHULDOV［Composite Materials］
3RO\SKHQ\OHQHVXO¿GH 336 FRPSRXQGVSODVWLFFRORUDQWVLQWHULRUKRXVLQJSURGXFWVLQGXVWULDODGKHVLYHWDSHVKROORZ¿EHUPHPEUDQHVDQGPRGXOHVKLJKSHUIRUPDQFHRSWLFDOPDWHULDOVSODVWLFSDOOHWVFRQWDLQHUVGHFRUDWLYHERDUGV

Segment Operating Results
Net Sales

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

26.2

300.0

283.3
236.0

17.1
203.2

201.3

25.0

16.1

14.4

10.1

10.6

8.3

176.1

127.3

108.3

80.9

FY2020Japan

FY2021

8.7

FY2022 (Forecast)

FY2020OverseasJapan

FY2021

FY2022 (Forecast)

Overseas

1RWH*UDSK¿JXUHVLQFOXGHLQWHUUHJLRQDOWUDQVDFWLRQVZLWKLQWKHVHJPHQW$FFRUGLQJO\WKHDJJUHJDWHVRIUHJLRQDOQHWVDOHVDQGRSHUDWLQJLQFRPH¿JXUHVIRUWKHVHJPHQWGLIIHUIURPWKH¿JXUHVSUHVHQWHGDERYHDIC Report 2022

29

Business Strategies Under DIC Vision 2030
 Ensure the timely provision of functional materials that support digital innovation
 Contribute to a carbon-neutral society by promoting a shift to biomaterials
 Cultivate demand by directly communicating the appeal of materials, devices and services to consumers and society Supply polymers that help reduce environmental impact and impart functionality widely across Asia

Basic
Strategies

Principal
Measures

Net Sales and Operating
Income Targets

40

300

30
200
20
100

10

0

0
2021

2022

嵣 Extend functional materials portfolio with forward-looking offerings for an
increasingly digital society, including low-dielectric resins, organic–inorganic hybrid
resins and resins for optical materials
嵣 Augment lineup of industrial adhesive tapes and PPS compounds, and offer bonding
and disassembly solutions, for CASE vehicles
Develop sustainable products嵣 Launch and expand sales of new environment-friendly waterborne resins嵣 Develop and offer bio-based polymers
Increase selection of products that contribute to an improved QOL
嵣 Augment portfolio of molding materials for medical applications
Expand operations in promising geographic areas
嵣 Concentrate efforts to expand coating resins business in the PRC and theAsia–Pacific region on M&As

Operating income (Billions of yen)

Net sales (Billions of yen)

Propose high-performance products for the semiconductor fabrication and mobility fields

50

400

2025 (FY).

7KH)XQFWLRQDO3URGXFWVEXVLQHVVZLOOVWULYHWRRIIHUIRUZDUGORRNLQJORZGLHOHFWULFUHVLQVDQGRWKHUIXQFWLRQDOPDWHULDOVHVVHQWLDOIRUDQLQFUHDVLQJO\GLJLWDO
VRFLHW\DVZHOODVSURPRWHDVKLIWWRELRPDWHULDOVZLWKWKHDLPRIFRQWULEXWLQJWRWKHUHDOL]DWLRQRIDFDUERQQHXWUDO JUHHQ VRFLHW\HQDEOLQJLWWRQRWRQO\SURYLGHPDWHULDOVEXWDOVRFXOWLYDWHGHPDQGE\GLUHFWO\FRPPXQLFDWLQJWKHDSSHDORIPDWHULDOVGHYLFHVDQGVHUYLFHVWRFRQVXPHUVDQGVRFLHW\,QWKH35&DQGWKH$VLD±3DFLILFUHJLRQERWKRIZKLFKFRQWLQXHWRVHHVWURQJPDUNHWJURZWK',&ZLOOSURPRWHHIIRUWVWRH[SDQGLWVRSHUDWLRQVSDUWLFXODUO\LQWKHDUHDRIFRDWLQJUHVLQVLQFOXGLQJE\VHFXULQJQHZEDVHVWKURXJK0 $V,QPROGLQJPDWHULDOVWKH&RPSDQ\ZLOOVHHNWRLQFUHDVHLWV
VHOHFWLRQRIKLJKSHUIRUPDQFHSURGXFWVIRUPHGLFDODQGRWKHUDSSOLFDWLRQVWKDWZLOOKHOSUHDOL]HDVRFLHW\ZLWKDQLPSURYHG42/DVZHOODVWROHYHUDJHLWV
GLYHUVHFRPSRXQGLQJGLVSHUVLRQPL[LQJDQGRWKHUWHFKQRORJLHVWRSURYLGHVROXWLRQVIRUDSRVWSDQGHPLFQHZQRUPDO

Key Development in Fiscal Year 2021',&/DXQFKHV*OREDO&RPPRQ&RDWLQJ5HVLQV3URGXFW)LQGHU
Allowing the timely provision of information and enhancing search convenience in Japanese, English and Chinese,Q-XO\',&ODXQFKHGDQHZFRPPRQFRDWLQJUHVLQVSURGXFW¿QGHUZKLFKLVDYDLODEOHLQ-DSDQHVH(QJOLVKDQG&KLQHVHRQLWVJOREDOZHEVLWH7KHQHZSURGXFW¿QGHUPDNHVLWHDV\IRUXVHUVWRLGHQWLI\WKHULJKWSURGXFWIRUWKHLUQHHGVIURPDPRQJ',&¶VOLQHXSRIFRDWLQJUHVLQVDQG
WRFRQ¿UPUHFRPPHQGHGDSSOLFDWLRQVNH\IHDWXUHVDQGRWKHUEDVLFSURGXFWLQIRUPDWLRQ2ZLQJWRWKHDFFHOHUDWHGGLJLWDOL]DWLRQRIEXVLQHVVHVZHEEDVHGUHVHDUFKDQGFRPPXQLFDWLRQVKDYHEHFRPHPRUHSUHYDOHQW7KHFRDWLQJUHVLQVPDUNHWLVQRH[FHSWLRQZLWKSXUFKDVLQJPDQDJHUVDQGWHFKQRORJ\GHYHORSHUVLQFUHDVLQJO\XVLQJFRUSRUDWHZHEVLWHVZKHQVHDUFKLQJIRU
SURGXFWVWKDWVDWLVI\SHUIRUPDQFHUHTXLUHPHQWV(YROYLQJPDUNHWWUHQGVDUHDOVRGULYLQJWKHGLYHUVL¿FDWLRQRIFXVWRPHUQHHGV,QUHVSRQVHWRWKHVHDQGRWKHUFKDQJHVLQLWVRSHUDWLQJHQYLURQPHQW',&KDVEXLOWDJOREDOFRPPRQFRDWLQJUHVLQVSURGXFW¿QGHUWKDWIDFLOLWDWHVWKHSURYLVLRQRIUHOHYDQWLQIRUPDWLRQLQDWLPHO\DQGHDV\WRXQGHUVWDQGPDQQHU7KHWKUHHSULQFLSDODWWULEXWHVRIWKHQHZSURGXFW¿QGHUDUHDVIROORZV・0RUHWKDQSURGXFWVPDQXIDFWXUHGDWVLWHVDURXQGWKHZRUOGDUHLQFOXGHG
・6HDUFKHVFDQEHQDUURZHGGRZQWRVXLWFXVWRPHUQHHGVXVLQJVL[FULWHULDLQFOXGLQJUHJLRQFRXQWU\RIXVHDSSOLFDWLRQUHVLQW\SHDQGIHDWXUHVDQG
・7HFKQLFDOPDWHULDOV²LQFOXGLQJWHFKQLFDOGDWDVKHHWV²DQGVHDUFKUHVXOWVFDQEHGRZQORDGHG

2

1

3

3

*RLQJIRUZDUG',&ZLOODGGQHZSURGXFWVGHYHORSHGDQGPDQXIDFWXUHGDW',&*URXSVLWHVDURXQGWKHZRUOGZKLOHDWWKHVDPHWLPHZRUNLQJWRIXUWKHUHQKDQFHSURGXFWDQGWHFKQLFDOLQIRUPDWLRQRQLWVFRUHFRDWLQJUHVLQV7KURXJKLWVJOREDOZHEVLWHWKH&RPSDQ\ZLOODOVRFRQWLQXHWR
SURSRVHVROXWLRQVWKDWKHOSDGGUHVVVRFLDOLPSHUDWLYHVDQGFKDOOHQJHVIDFHGE\LWVFXVWRPHUVDIC Report 2022

30

New Business Development
1HZ%XVLQHVVHV&UHDWHGIURPWKH3HUVSHFWLYHRI
(6+5HODWHG,VVXHVDQG6RFLDO&KDQJHVKiyofumi Takano

SDGs Goals 8, 9 and 11

0DQDJLQJ([HFXWLYH2I¿FHU*HQHUDO0DQDJHU1HZ%XVLQHVV'HYHORSPHQW+HDGTXDUWHUV

7KH1HZ%XVLQHVV'HYHORSPHQW+HDGTXDUWHUVHVWDEOLVKHGLQ¿VFDO\HDUKDVLGHQWL¿HGIRXUQHZSULRULW\EXVLQHVVDUHDVZKHUH(6+UHODWHG
LVVXHVDQGVRFLDOFKDQJHVLQWHUVHFWZLWKWKH',&*URXS¶VFRPSHWHQFLHV7KH*URXSLVPDNLQJDFWLYHXVHRIH[WHUQDOUHVRXUFHVWRVHFXUHDFFHVVWRQHZWHFKQRORJLHVZLWKWKHDLPRIFUHDWLQJQHZEXVLQHVVHVZLWKWKHSRWHQWLDOWREHFRPHPDLQVWD\V.H\DFKLHYHPHQWVWRGDWHLQFOXGHWKHODXQFKRI+DWWH7RWWH®ÀH[LEOHZLUHOHVVVHQVRUVLQHOHFWURQLFV IRUPRUHLQIRUPDWLRQSOHDVHVHHSDJH DQG
&HUDP1H[DÀDNHDOXPLQD¿OOHUWKDWLPSDUWVKHDWGLVVLSDWLQJSURSHUWLHVWRHOHFWURQLFFRPSRQHQWVDQGLVH[SHFWHGWRFRQWULEXWHWRWKHSUROLIHUDWLRQ
RI&$6(±YHKLFOHVDQG*HQDEOHGGHYLFHVDVZHOODVWKHUPRSODVWLFFRPSRVLWHVIRU'SULQWHUVZLWKDQWLYLUDODQGDQWLEDFWHULDOIXQFWLRQVLQWKHDXWRPRWLYHDUHD
,QQH[WJHQHUDWLRQSDFNDJLQJ',&FRPPHUFLDOL]HGPASLIM ®DQDGKHVLYHZLWKR[\JHQEDUULHUSURSHUWLHVWKDWIDFLOLWDWHVWKHPDQXIDFWXUHRIWKLQQHUDQG
OLJKWHUODPLQDWHG¿OPVIRUIRRGSDFNDJLQJE\UHGXFLQJWKHQXPEHURI¿OPOD\HUV )RUPRUHLQIRUPDWLRQSOHDVHVHHSDJH,QWKHDUHDRIKHDOWKFDUH',&FRQWLQXHGFRQGXFWLQJMRLQW5 'ZLWKELRWHFKVWDUWXSV2IQRWHWKH&RPSDQ\LVZRUNLQJZLWK*UHHQ(DUWK,QVWLWXWH&R
/WGWRGHYHORSDQDWXUDOO\GHULYHGDVSDUWLFDFLGXVLQJDQLQQRYDWLYHIHUPHQWDWLRQWHFKQRORJ\WKDWDEVRUEV&2DQGDELRGHJUDGDEOHDVSDUWLFDFLG±EDVHGZDWHUERUQHVXSHUDEVRUEHQWSRO\PHU,QFROODERUDWLRQZLWK&KHFNHUVSRW,QF',&LVFUHDWLQJQHZLQNELQGHUVSDFNDJLQJDGKHVLYHVDQGRWKHUSURGXFWVPDGHZLWK&KHFNHUVSRW¶VQRYHOELRPDVV DOJDH EDVHGSRO\ROVBusiness Strategies Under DIC Vision 2030
 Create businesses that reflect the dynamics of socioeconomic systems, including those for distributed energy and packaging materials recycling

Basic
Strategies

 Accelerate the creation of new businesses by actively using CVC and M&As to secure new technologies

Net Sales and Operating Income
Targets for Fiscal Year 2025

Net sales¥

33 billion

Operatingincome¥10 billion

Principal
Measures

Electronics
嵣 Expand sales of silver seed film developed to reduce transmission loss in high-band communications
嵣 Bolster sales of flexible wireless sensors (Hatte Totte®)
Automotive
嵣 Commercialize materials for next-generation secondary batteries and fuel cells that support the move
to clean energy–powered automobiles
嵣 Develop new inorganic fillers and expand sales of existing offerings for use in automotive electronics
and carbon fiber–reinforced plastic (CFRP) materials that help reduce vehicle weigh
Next-generation packaging
嵣 Realize the practical implementation of materials recycling for flexible packaging films andcommercialize recycled plastics
嵣 Develop and launch high-performance barrier films
Healthcare嵣 Develop and boost sales of nutritional supplements (docosahexaenoic acid (DHA), next-generation omega-3 fatty acids)
嵣 Expand portfolio of biomaterials, including natural colorants and skincare materials',&9LVLRQRXWOLQHV',&¶VLQWHQWLRQWROHYHUDJHQHZEDVLFWHFKQRORJLHVQDPHO\LQRUJDQLFPDWHULDOVGHVLJQDQGELRPDWHULDOVGHVLJQWRVXSSRUWLWV
HIIRUWVLQLWVIRXUQHZSULRULW\EXVLQHVVDUHDVDQGFUHDWHEXVLQHVVHVWKDWUHÀHFWWKHG\QDPLFVRIVRFLRHFRQRPLFV\VWHPVLQFOXGLQJWKRVHIRUGLVWULEXWHG
HQHUJ\DQGSDFNDJLQJPDWHULDOVUHF\FOLQJ
',&LVDOVRZRUNLQJWRVHFXUHQHZWHFKQRORJLHVDQGEXLOGSURGXFWLRQIDFLOLWLHVQHFHVVDU\WRFRPPHUFLDOL]HPDWHULDOVIRUQH[WJHQHUDWLRQVHFRQGDU\EDWWHULHVDQGIXHOFHOOVWKDWVXSSRUWWKHPRYHWRFOHDQHQHUJ\±SRZHUHGDXWRPRELOHV2WKHUSULQFLSDOPHDVXUHVLQFOXGHUHDOL]LQJWKHSUDFWLFDOLPSOHPHQWDWLRQRIPDWHULDOVUHF\FOLQJIRUÀH[LEOHSDFNDJLQJ¿OPVOHYHUDJLQJDOJDHFXOWLYDWLRQWHFKQRORJLHVWRH[SDQGWKH',&*URXS¶VSRUWIROLRRIELRPDVVEDVHGKHDOWKFDUHSURGXFWVDQGH[SDQGLQJVDOHVRIVLOYHUVHHG¿OPGHYHORSHGWRUHGXFHWUDQVPLVVLRQORVVLQKLJKEDQGFRPPXQLFDWLRQV )RUPRUHLQIRUPDWLRQSOHDVHVHHSDJH

DIC Report 2022

31

Sun Chemical’s Activities
Sun Chemical grows while navigating the pandemic
Myron Petruch
President & CEO, Sun Chemical Corporation

Despite the challenges of operating in the ever-changing world of pandemic-induced health, safety, productsupply and distribution issues, Sun Chemical demonstrated that our commitment to customers, employees
and business growth are at the forefront of our strategy. Our focus remains on contributing to sustainable
prosperity for society and creating attractive value propositions for our customers.
In 2021, we continued to expand our product portfolio to include sustainable solutions that improve thequality of life. Our focus on Value Transformation and New Pillar Creation is evident in many of our 2021
success stories!

■ New Technologies Strengthened our Portfolio and Enhanced Our BusinessIn 2021, DIC acquired the Colors & Effects business of BASF, adding a world-class pigments
portfolio which is now fully integrated with Sun Chemical’s previously existing Performance
Pigments group to form our Color Materials Division. This business represents the market leader
for pigments and supports DIC’s strategic priority of color science.
Our teams have worked collaboratively to enhance the value delivered to our customers
through a combined portfolio of products and services. We are actively capturing operational
synergies while developing brilliant new color technologies. Like many businesses, Color
Materials has been dramatically impacted by the pandemic and associated downturns in
the automotive and cosmetics markets, as well as supply chain disruptions. Despite thesechallenges, we leverage our strong market relationships and unparalleled agility to meet market
GHPDQGVDQG¿QGLQQRYDWLYHDQGVRFLDOO\UHVSRQVLEOHVROXWLRQVIRURXUFXVWRPHUV■ The impact of Navigating Supply Chain Volatility with Focus on Our

Customers and Employees

COVID-19 is felt in many parts of society and our business, but perhaps nowhere more strongly
than in our supply chains. We face numerous challenges obtaining critical raw materials, as wellas rapidly escalating freight and distribution costs as we look to supply our customers. While wehave issued price increases in an effort to keep pace with these rising costs, our relentless focus ison our customers’ needs, often rapidly developing alternative technical solutions, working with ourmanufacturing sites to adjust production schedules, and ensuring strong communications throughout
the value chain to maintain transparency and reliability.
Our employees have steadfastly and resiliently maintained their singular focus on our customers
throughout these compounded challenges, all while dealing with the personal and community impactsof the pandemic. We monitor our safety regularly, comply with environmental, health and safety
regulations, and respond to the dynamic markets and communities in which we live, work and serve,
while continuing to nimbly support one another.

■ Focus on Safety and Quality at Our Manufacturing Sites
The heartbeat of any manufacturing company is its production lines. All throughout the
pandemic, over 7,000 Sun Chemical employees kept our manufacturing plants going
throughout the world. Although they have dealt with frequently changing local regulations,
supply disruptions and the personal impacts of the pandemic, their focus never wavered andtheir support for one another and our business inspired us all. We continue to make social andsustainable contributions to our local communities and create a family atmosphere where ourteam members and their families feel included and warmly supported.

DIC Report 2022

32

DIC Asia Pacific’s Activities
Remaining nimble amid tough market conditions
Paul Koek
Managing Director, DIC Asia Paciﬁc Pte Ltd

6LQFH',&$VLD3DFL¿FKDVIRFXVHGRQVDIHW\UHFRYHU\DQGVWDEOHJURZWKZKLOHIDFLQJDJURZLQJ
supply chain crisis, rising raw material prices, ongoing COVID-19 transmissions, and in more recent days
the Ukraine crisis which has led to higher energy costs. Despite these disruptions, DIC AP has remained
nimble to market changes and focused on delivering quality products and services.
Amid ongoing COVID-19 transmissions, global supply chain woes and raw material suppliers force
PDMHXUH',&$VLD3DFL¿FKDVPDQDJHGNH\UDZPDWHULDOVDQGORJLVWLFVWRPHHWWKHGDLO\UHTXLUHPHQWVRI
our customers, while continuing to implement measures to keep members safe and optimize operations.

■ Responding to The DIC Way)ROORZLQJRXUUHGH¿QHGYLVLRQVWDWHPHQWZHDUHFRPPLWWHGWRLPSURYLQJWKHKXPDQFRQGLWLRQE\VDIHO\GHOLYHULQJFRORUDQGFRPIRUWIRUVXVWDLQDEOHSURVSHULW\/HDUQLQJIURPRXUSDVW',&$VLD3DFL¿FLVQRZZHOOHTXLSSHGZLWKUREXVWVXSSO\FKDLQPDQDJHPHQWVRXQG
¿QDQFLDOKHDOWKDQGZHOOURXQGHGVDIHW\SURWRFROVWRHQVXUHUHVLOLHQFHLQWKHIDFHRIWKHXQFHUWDLQWLPHVDKHDG
',&$VLD3DFL¿FLVIRFXVHGRQEHFRPLQJWKH',&*URXS¶VGULYLQJIRUFHLQWKH$VLD±3DFL¿FUHJLRQ8VLQJGLJLWDOWRROV7HDP',&$VLDLVpoised to drive success and engagement with all stakeholders, and ready to take on challenges of 2022 to secure a foundation for the
success of DIC Vision 2030.

■ Rising Demand for Sustainable Food Packaging
7KH$VLD±3DFL¿FUHJLRQKDVEHQH¿WWHGIURPVWURQJGHPDQGIRUVDIHUDQGPRUHVXVWDLQDEOHIRRG
packaging as consumption behaviors changed. By year-end, we delivered overall volumes above
pre-COVID-19 levels, with packaging volumes exceeding the prior year. The region will work
toward delivering our commitments to our valued customers.
Our heroes in DIC Vietnam■ Award–Winning Dedication and Loyalty in Vietnam,Q-DQXDU\',& 9LHWQDP &R/WGZDVDZDUGHGDFHUWL¿FDWHRIDSSUHFLDWLRQE\WKH*URXS
in recognition for their strong dedication and loyalty to the Company and our customers. During thecountry’s nationwide lockdown between July 2021 and October 2021, 57 members resided in theplant to ensure business and operations continuity, living the vision and values of The DIC Way.

■ Recovering from the Aftermath of the Malaysian Floods
Last year, a massive flood struck Malaysia. Our plant was flooded and personal property
damaged. Without losing precious time, the local and regional teams stepped up to strategize theplant’s recovery, as well as providing support to all affected members.

■ Securing Member Safety
Our top priority has always been the safety of all employees, whether they are working on-siteat the factories or working from home. The high vaccination rates across the regional countries
LQVWLOOHGPXFKQHHGHGFRQ¿GHQFHLQRXUGDLO\RSHUDWLRQVDVZHZHOFRPHGPRVWHPSOR\HHVEDFN
to the plants.
DIC Australia Pty Ltd. and DIC New Zealand Ltd. also achieved its first ISO 45001 safetyaccreditation. All employees of the two companies are part of this success and this is a great step
forward in demonstrating a positive change in DIC’s safety culture, that has always been at theheart of our business.
DIC Australia and DIC New Zealandemployees holding up the newly received,62DFFUHGLWDWLRQFHUWL¿FDWH

DIC Report 2022

33

DIC (China)’s Activities
Sun Tzu said, “He will win whose army is animated by the same spirit
throughout all its ranks.” DIC (China) seeks to embody this tenet bybuilding an organization in which management and employees areunited and focused on the same objectives.
Mao Jianwei
General Manager, DIC (China) Co., Ltd.

,Q¿VFDO\HDU',&DQQRXQFHGWKH',&9LVLRQORQJWHUPPDQDJHPHQWSODQLQWURGXFLQJDUHGH¿QHGYLVLRQVWDWHPHQWDQGDQHZEDVLFSROLF\VHWWLQJIRUWKSULRULW\business areas and outlining key strategies. These include making strategic investments, enhancing our technology platform, reinforcing management of human capital,
promoting IT and DX and clarifying sustainability strategies. Additionally, with people the world over more and more aware that the evolution of humanity depends on realizing asociety that is increasingly green, digital and QOL-oriented, DIC also deployed the DIC Sustainability Index with the aim of playing an active role in this process. Through these
DQGRWKHUHIIRUWVWKHHQWLUH',&*URXSLVVWULYLQJWRGHOLYHUJUHDWHUVRFLDOEHQH¿WVWKDWHQKDQFHYDOXHIRUDOOVWDNHKROGHUVLQFOXGLQJVKDUHKROGHUVDQGWREXLOGFRUSRUDWHYDOXH
7KH',&*URXSRSHUDWHVLQPRUHWKDQFRXQWULHVDQGWHUULWRULHVDURXQGWKHZRUOGZLWKGLIIHUHQWFXOWXUHVFXVWRPVSROLWLFDOV\VWHPVDQGHFRQRPLFGHYHORSPHQWOHYHOV7R
ensure the success of DIC Vision 2030, we must ensure employees have an adequate understanding of our management philosophy, management vision and the plan’s basic
policy. A well-known quote from Sun Tzu’s The Art of War is “He will win whose army is animated by the same spirit throughout all its ranks.” In other words, an organization in
ZKLFKSHRSOHRIDOOUDQNVDUHRIRQHPLQGZLOOEHYLFWRULRXV:HDUHFRQ¿GHQWWKDWDOLJQLQJWKHSKLORVRSKLHVDQGJRDOVRIPDQDJHPHQWDQGHPSOR\HHVRI',& &KLQD DQGWKH
FRPSDQLHVRIWKH',&*URXSLQWKH35&WKHUHE\EXLOGLQJDQRUJDQL]DWLRQLQZKLFKHYHU\RQHLVIRFXVHGRQWKHVDPHREMHFWLYHVZLOOHQDEOHXVWRIXOO\GHPRQVWUDWHWKH*URXS¶V
comprehensive capabilities.

■ Prioritizing the Ability to Develop Products that Respond to Local Needs',& &KLQD RYHUVHHVDSSUR[LPDWHO\',&*URXSFRPSDQLHVLQWKH35&RIYDULRXVVL]HVRSHUDWLQJLQGLYHUVHHQYLURQPHQWVThanks to rapid economic development since the country’s economic reform and opening-up, the inland area, in particular,
KDVPRUSKHGIURPDPDQXIDFWXULQJFHQWHURIWHQFDOOHG³WKHZRUOG¶VIDFWRU\´LQWRDFRQVXPHUVSHQGLQJ±IXHOHGSRZHUKRXVH
dubbed “the world’s market,” a change that has created huge business opportunities. To capitalize on these opportunities,
WKH',&*URXSLVZRUNLQJWRHVWDEOLVKLQWHJUDWHGJOREDOPDQDJHPHQWZKLOHDWWKHVDPHWLPHIXUWKHUVWUHQJWKHQLQJLWVSURGXFWGHYHORSPHQWFDSDELOLWLHVWDNLQJLQWRDFFRXQWUHJLRQDODQGPDUNHWVSHFL¿FGLIIHUHQFHVLQSURGXFWOLIHF\FOH7KLVLVSRVLWLRQLQJXVWRUHVSRQGVZLIWO\WRORFDOQHHGVDQGFRQWULEXWHWRWKHJURZWKDQGGHYHORSPHQWRIWKHRYHUDOO*URXS

Technical presentation at Qingdao DIC Finechemicals Co., Ltd.

■ Improving Labor Productivity through Automated and Intelligent Processes
Owing to robust economic growth and declining birthrates, attributable to the erstwhile one-child policy, labor shortages
have become an issue in the production sector. This is encouraging manufacturers to improve labor productivity byactively introducing digital and intelligent technologies. In this environment, DIC (China) recognizes the need to bolster
WKHVNLOOVRIHPSOR\HHVDW',&*URXSSURGXFWLRQVLWHVDVZHOODVWRLPSURYHEXVLQHVVSUDFWLFHVE\SURPRWLQJRQJRLQJ
LPSURYHPHQWVWRSURGXFWLRQSURFHVVHVQRWDEO\E\LQWURGXFLQJDXWRPDWHGDQGLQWHOOLJHQWVROXWLRQV:HDUHFRQ¿GHQWWKDWsuch efforts to enhance labor productivity and introduce state-of-the-art technologies will enable us to secure the quality
and cost advantages needed to thrive in this intensely competitive market.

National forklift contest winners■ Bolstering Employee Potential and Maximizing the Value of Human Resources$FKLHYLQJWKHJRDOVRI',&9LVLRQZLOOQRWEHHDV\)RUWKLVUHDVRQLWLVFUXFLDOWREROVWHUWKHSRWHQWLDORIHDFK*URXSHPSOR\HHDQGPD[LPL]HWKHYDOXHRIKXPDQUHVRXUFHVE\PRGLI\LQJWKH',&*URXS¶VSURGXFWSRUWIROLRLQUHVSRQVHWRFKDQJHV
in the operating environment, thereby taking on the challenge of driving innovation and entering new business areas.
,QUHFHQW\HDUV',& &KLQD KDVSODFHGDQLQFUHDVHGHPSKDVLVRQLQWHJUDWLQJWKHPDQDJHPHQWRI*URXSFRPSDQLHVLQ
WKH35&ZLWKWKDWRIWKHRYHUDOO',&*URXSDQGLVVWHSSLQJXSHIIRUWVWRZRUNZLWKHPSOR\HHVE\LQFUHDVLQJPDQDJHPHQWWUDQVSDUHQF\DQGSURPRWLQJWKHVWDQGDUGL]DWLRQDQGIDLUQHVVRIPDQDJHPHQWSUDFWLFHV6SHFL¿FPHDVXUHVKDYHLQFOXGHG
promoting information sharing, employee education and training, and awareness of The DIC Way, as well as working tobolster recognition of the DIC brand. By thus ensuring that employees across the country have a common understanding of',&¶VPDQDJHPHQWSKLORVRSK\DQGWKH',&*URXS&RGHRI%XVLQHVV&RQGXFWDQGVKDUHWKH*URXS¶VPLVVLRQZHZLOOEXLOGan organization that is truly “animated by the same spirit throughout all its ranks,” with management and employees unitedand focused on the same objectives.
The announcement of DIC Vision 2030 provides an important opportunity for us to deepen our understanding of DIC’s
PDQDJHPHQWSKLORVRSK\DQGYLVLRQOHDG*URXSFRPSDQLHVLQWKH35&LQOLQHZLWKFRQFUHWHEDVLFVWUDWHJLHVDQGFRQWULEXWHWRVXVWDLQDEOHJURZWKIRUWKHHQWLUH',&*URXSDIC Report 2022

34

DIC Leadership Program participants from DIC (China) take partin a desert walkWKDQQLYHUVDU\FHOHEUDWLRQDW',&6\QWKHWLF5HVLQV =KRQJVKDQ 
Co., Ltd.

Employees of DIC (Shanghai) Co., Ltd., on an excursion to
Mount Sanqing

A Message from the General Manager of the Production Management Unit

We are working to help achieve the goals of
DIC Vision 2030 in the production arena.

Naoyoshi Furuta
0DQDJLQJ([HFXWLYH2IÀFHU
General Manager, Production Management Unit

Underpinning Everything: Safe Operations and Quality Assurance
The DIC Group manufactures a wide range of chemicals and related products in 63 countries and territories around the world and provides
these products to customers through a global sales network. As its name indicates, the Production Management Unit, of which I am in charge,
oversees the Group’s core manufacturing activities. We place a priority on care for the environment, safety and health through Responsible Careinitiatives and on ensuring compliance with the aim of supporting the operation of safe and secure production sites.
The Production Management Unit is also responsible for supporting production from the perspective of quality control and quality assurance.
We view our mission as being to ensure that the quality of the products we provide meets the requirements of our customers and the market.
Despite this, in fiscal year 2021 serious quality-related issues were discovered. These included improprieties in type testing of a foam fire
H[WLQJXLVKLQJDJHQWWKDWUHVXOWHGLQDSSURYDORIWKHSURGXFWEHLQJUHVFLQGHGDQGWKHVXVSHQVLRQRI8QGHUZULWHUV/DERUDWRULHV¶FHUWL¿FDWLRQRI/&SRO\PHUVERWKRIZKLFKZHUHGLVFORVHGSXEOLFO\:HVLQFHUHO\UHJUHWWKHVHLQFLGHQWVDQGQRWVDWLV¿HGZLWKVLPSO\LGHQWLI\LQJFDXVHVDQG
implementing measures to prevent recurrence, we continue working to transform awareness and improve product quality.

The Launch of DIC Vision 2030
The key to attaining the goals of DIC Vision 2030 is ensuring that everyone involved in
production grasps the plan’s content and direction and that each individual is committed
to pressing forward steadily, exerting originality and ingenuity every day, with efforts thatwill bring the plan’s goals to fruition. To this end, it is important to provide clear, concrete
explanations of key policies and the plan’s main points and promote the implementationof critical measures. We have already inaugurated a number of measures. For example,
making bold investments with the goal of, among others, realizing mass productionof new products developed in the five priority business areas outlined in DIC Vision
2030, responding to increasingly sophisticated quality requirements, and strengthening
human capital by passing down technologies and providing support for digitalization. To
create work environments conducive to job satisfaction for all employees, we are also
promoting “ho-ren-so” and “o-hi-ta-shi”*—mnemonics used widely in management inJapan, with “ho-ren-so” standing for “hokoku” (“report”), “renraku” (“inform”) and “sodan”(“consult”), and “o-hi-ta-shi” for “okoranai” (“do not get angry”), “hitei shinai” (“do not
negate”), “tasukeru” (“help”) and “shiji” (“instruct”)—as well as one-on-one meetings. I
want employees to feel that the production team is helping drive DIC’s efforts to address
challenges and at the same time to feel happy and proud of being part of that team andof contribution to the implementation of DIC Vision 2030’s strategies.

6LWHHYDOXDWLRQDWWKH.DVKLPD3ODQWLQ¿VFDO\HDU

* “Ho-ren-so” and “o-hi-ta-shi” are also a homonym of horenso (spinach) and “ohitashi,” a side dish of blanched vegetables steepedin a savory broth .

Climate Change Cannot Wait: Achieving Carbon Neutrality
The Production Management Unit also has a key role to play in meeting DIC’s revised target for the reduction of CO 2HPLVVLRQVDQQRXQFHGLQ¿VFDO\HDUZKLFKFDOOVIRUWKH&RPSDQ\WRDFKLHYHFDUERQQHXWUDOLW\E\¿VFDO\HDUDQGUHGXFLQJ&22HPLVVLRQV 6FRSHDQG IURPWKH
¿VFDO\HDUOHYHOE\¿VFDO\HDU 7KDQNVWRHIIRUWVWRGDWHZKLFKKDYHIRFXVHGRQHQHUJ\VDYLQJLQLWLDWLYHVDQGHQYLURQPHQWDOLQYHVWPHQWVDIC Report 2022

35

A Message from the General Manager of
the Production Management Unit

Groupwide CO 2HPLVVLRQVLQ¿VFDO\HDUDWWRQQHVZHUHGRZQIURPDSSUR[LPDWHO\WRQQHVLQ¿VFDO\HDU
Going forward, growing the Group, including by expanding production volume, while at the same time lowering CO 2 emissions will require more
ambitious measures. To this end, in addition to advancing our own environmental investments, we will further expand our use of green powerin Japan and actively employ clean energy globally. Revamping production processes will also be crucial to the Group’s ability to curb its CO2
HPLVVLRQV7RJHWKHUZLWKLQWURGXFLQJDQLQWHUQDOFDUERQSULFLQJV\VWHPZHZLOOIRUPXODWHDQGLPSOHPHQWFRQFUHWHUHJLRQVSHFL¿FDFWLRQSODQV
6XFKLQLWLDWLYHVZLOOEHIXQGHGIURPWKHELOOLRQEXGJHWHGIRULQYHVWPHQWVLQLQIUDVWUXFWXUHEXLOGLQJ
* For more information, please see “Strategies for Reducing CO 2(PLVVLRQV´RQSDJH

Building Smart Factories and Applying Cutting-Edge Technologies
As stated in a press release published in Japanese in December 2021, we are currently collaborating with Hitachi, Ltd., to promote thepractical application of digital twin technology to automate batch processing in plastics production. This involves using a high-precision
reaction prediction model to digitalize operating status in cyber (virtual) space, together with process informatics* to determine optimal
operating conditions and provide feedback to the physical (real) world. This will make it possible to, among others, shorten production
times, stabilize quality, improve equipment operators’ work efficiency and hasten the commercialization of new products, thereby improving
productivity and in so doing helping reduce CO 2 emissions. In fiscal year 2022, we will conduct verification testing using a prototype reaction
prediction model to determine optimal operating conditions. Ultimately, we aim to realize the practical application of digital technologies thatfacilitate automation of the entire production process.
* Process informatics applies statistical analysis and other informatics techniques to optimize conditions for production, among others.

Digital Twin Technology for Total Production Process Automation (Scope of DIC’s Cocreation with Hitachi)
Digitalization of operating status using
high-precision reaction prediction model

AI-based analysis

Use of process informatics todetermine optimal operating conditions

Frontline data

Theoretical model
Literature

Optimization of
production planning
Cooperation
with suppliers

Traceability

y=f(x)
Theoretical data

Raw material data

Operating data

Sampling data

Quality data

Demand prediction

Cyber space
Physical world

Incorporation of
production data

Distributed control system
Raw materials

Provision of
Manufacturing execution system feedback on optimal
operating conditions

Sampling
Testing

Plant A
Procurement

Production: Input of raw materials → Reaction → Postprocessing → Testing
Optimization of the supply chain

DIC Report 2022

36

Sales/after-sales service

A Message from the General Manager of the Technical Management Unit
We are bringing together diverse capabilities and marshaling
the diversity of individuals to realize technologies that
position us to go on the offense.

Kiyotaka Kawashima
0DQDJLQJ([HFXWLYH2IÀFHU
General Manager, Technical Management Unit

$PLGFRQWLQXHGXQFHUWDLQW\DQGFRQIXVLRQDWWULEXWDEOHWRGUDPDWLFFKDQJHVWROLYLQJHQYLURQPHQWVFDXVHGE\&29,'DQGWKHWKUHDWRIERUGHUOHVV
wars, we are seeing values change dramatically. Against this backdrop, rather than a conventional three-year management plan, the DIC Group
UHFHQWO\IRUPXODWHG',&9LVLRQDUROOLQJORQJWHUPPDQDJHPHQWSODQ7KHUROHRIRXUWHFKQLFDOGHSDUWPHQWVLQWKLVPDQDJHPHQWSODQLV
immense. To ensure the plan’s success, we will work to realize technologies that position us to go on the offense, rather than those that are moredefensive in nature, as well as to promote technological development that capitalizes on our global presence and maximize individual capabilities.

From Adding Depth to Existing Technologies to Pursuing New Technologies
The DIC Group’s ability to add depth to existing basic technologies has led to a wide range of products that contribute to society. Transforming
our business portfolio, a key focus of our new long-term management plan, will also require searching for completely new basic technologies, as
ZHOODVWHFKQRORJLHVWKDWHPSKDVL]HVXVWDLQDELOLW\RURWKHUQHZFULWHULD7KH*URXSKDVWKXVDOUHDG\EHJXQWRDOORFDWHVLJQL¿FDQWPDQDJHPHQW
and other resources to development that involves not only modifying—i.e., adding depth to—existing technologies but also creating andadopting, that is, searching for, brand new technologies. At the same time, through the marketing efforts of our technical departments, we arealso seeking to discover new applications and markets for both existing and new technologies with the aim of helping customers address current
issues and issues not yet acknowledged.

Integrating R&D Functions to Create One Global Lab,Q¿VFDO\HDUWKH',&*URXSZHOFRPHGDQHZPHPEHUZLWKWKHDFTXLVLWLRQRIWKH&RORUV (IIHFWVEXVLQHVVIURP%$6)IXUWKHUHQKDQFLQJLWV
JOREDOEXVLQHVVVWUXFWXUHLQWKHFRORUVSDFNDJLQJDQGJUDSKLFVEXVLQHVVHV',&DQG6XQ&KHPLFDOKDYHORQJFRRSHUDWHGLQWKHDUHDRI5 'ZKLFKKDVOHGWRDQXPEHURILPSRUWDQWDFKLHYHPHQWV5HFRJQL]LQJWKDWWKHDGGLWLRQRIWKH&RORUV (IIHFWVEXVLQHVVZLOOFUHDWHDVWURQJHUWKUHHFRPSDQ\
5 'FRQ¿JXUDWLRQWRXQGHUSLQWKHLPSOHPHQWDWLRQRIWKHVWUDWHJLHVRI',&9LVLRQWKH*URXSLVLQWHJUDWLQJSURGXFWGHYHORSPHQWLQFOXGLQJE\
SURPRWLQJMRLQW5 'DQGWKHVKDULQJRILQIRUPDWLRQDVZHOODVUHODWHGIXQFWLRQVVXFKDVSDWHQWDQDO\VLV$,DQGPDUNHWLQJIXQFWLRQVCreating Work Environments for Technical Personnel that Are Conducive to Job Satisfaction
2QHRIWKHEDVLFVWUDWHJLHVIRUWUDQVIRUPLQJ',&DQGWKH',&*URXSHQXPHUDWHGLQ',&9LVLRQLVWRPD[LPL]HWKHYDOXHRIKXPDQFDSLWDO1R
matter how talented our technical people are, unless they feel motivated personally, they—and by extension DIC and the DIC Group—will not beable to contribute to society or make notable achievements. In other words, we need to create a research environment that consistently motivatespeople, thereby enabling us to marshal the diversity of individuals. What constitutes such a work environment is a question we will continue seeking
to answer going forward. We have already begun to implement the following measures:● Integrate human resources training for DIC and the DIC Group and career paths for individual technical staff;● Respect autonomy, including by establishing rules for allocating a certain number of work hours for technical staff to conduct their own
research and creating a system whereby individuals can propose new research themes anytime and anywhere;● Actively encourage and support individual external activities such as participation in academic conferences and publication of technical papers); and● Develop individualized work style care systems that include, among others, counseling and mentoring.

Looking ahead, the DIC Group will continue striving to evolve as an organization that delivers social benefits by reforming work styles for all
employees, including technical staff, and improving work environments.

DIC Report 2022

37

A Message from the General Manager of the R&D Management Unit

Our efforts to expand our technology platform are based on
specific aims and targets.

Toshiro Ariga([HFXWLYH2IÀFHU
General Manager, R&D Management Unit

Our Current Technology Platform
Since its establishment, DIC has sought to simultaneously expand both the operations and technology platform of the DIC Group. Today, our basic
WHFKQRORJLHVDUHGH¿QHGDVWKRVHLQWKHDUHDVRIRUJDQLFPROHFXODUGHVLJQSRO\PHUGHVLJQGLVSHUVLRQRSWLFVDQGFRORUDQGDSSOLFDELOLW\DVVHVVPHQWThe Importance of Platform Expansion
To date, the DIC Group has provided distinctive value by adding depth to basic technologies in these five areas and combining them to
GHYHORSDZLGHUDQJHRISURGXFWV+RZHYHUJLYHQWKHGLYHUVL¿FDWLRQRIVRFLDOLPSHUDWLYHVDQGWKHJURZLQJFRPSOH[LW\RIFKDOOHQJHVIDFLQJWKH
FKHPLFDOVLQGXVWU\RYHUWKHSDVWGHFDGHLWEHFDPHFOHDUWKDWZHZRXOG¿QGLWSUREOHPDWLFWRDGGUHVVFUXFLDOLVVXHVJRLQJIRUZDUGZLWKRQO\WKH
technologies we have cultivated in these areas. In light of evolving circumstances, several years ago we began exploring various new technicalthemes with the objective of securing new basic technologies, as a result of which we sharpened our focus to biotechnology, inorganic materials,
and computational science, e.g., AI and MI.

What We Hope to Accomplish
To provide new value in response to social imperatives such as the need to achieve carbon neutrality and realize a society that is both recyclingoriented and digital, we recognize that it is essential to add depth to new technologies in the areas of biomaterials, inorganic materials andcomputational science and transform them into DIC Group basic technologies, thereby further expanding our technology platform. This will makeit possible for us to provide, for example, new biomaterials that do not depend on petrochemicals and highly functional materials that could not
be achieved using conventional organic raw materials or polymers. In computational science, AI, MI and simulation technologies will enable
XVWRUHDOL]HDGYDQFHGPDWHULDOVGHVLJQDQGDFFHOHUDWHGGHYHORSPHQW,DPFRQ¿GHQWWKDWRXUULFKOLQHXSRIEDVLFWHFKQRORJLHVZLOOEHDPDMRU
competitive advantage for the DIC Group.
Current Basic Technologies
Biomaterials
designOrganic
materials
designOptics andcolor

Polymer
designInorganic
materials
designBiomaterials
designCommon basic
technologies

Dispersion

Computational science(AI and MI), Analysis

Dispersion

Applicability
assessment

Polymer
designAI and MI

Organic
materials
designApplicability
assessment(Coating, printing, molding)Inorganic
materials
designOptics andcolor(Coating,
printing,
molding)Using open innovation（including through joint ventures and M&As）

DIC Report 2022

38

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

Page

40

Functional black pigments thatcombine outstanding LiDAR signal
response and visual appeal
Spectrasense™ Black EH 8082,
Spectrasense™ Black L 0086 andSicopal® Black L 0095

Special Feature Helping Realize Sustainable Mobility Solutions
The DIC Group is working to provide groundbreaking
sustainable products that will contribute to theimprovements in safety and energy-saving technologies
and visual appeal necessary for next-generation mobility.
The world continues seeking to address the challenge of delivering convenient, comfortable mobility, recognizing
the importance of transportation that is safe, secure and carbon neutral to the society of the future. Against thisEDFNGURSLQ¿VFDO\HDUWKH',&*URXSLQWURGXFHGDYDULHW\RIVXVWDLQDEOHSURGXFWVWKDWZLOOFRQWULEXWHWRWKH
realization of sensing technologies crucial to vehicle safety, as well as help lower energy consumption by reducing
YHKLFOHZHLJKW6XFKSURGXFWVDUHWHVWDPHQWWRWKH*URXS¶VGLVWLQFWLYHSHUVSHFWLYHDQGLQQRYDWLYHWHFKQRORJLFDO
FDSDELOLWLHVDVDPDQXIDFWXUHURI¿QHFKHPLFDOV

Page

44

World’s fastest-curing carbon
ÀEHU²UHLQIRUFHGSUHSUHJDICARBO® LF series

DIC Report 2022

39

Special Feature: Helping Realize Sustainable Mobility Solutions

Color & Display
Functional black pigments that combine outstanding LiDAR
signal response and visual appeal
Spectrasense™ Black EH 8082, Spectrasense™ Black L 0086
and Sicopal® Black L 0095

SDGs Goals 9 and 17

The DIC Group has pioneered key NIR-management solutions thatwill help automotive coating systems ensure safe, secure and richly
colored vehicles.
Value Creation

Leveraging functional pigments to assist autonomous driving and enhance visual appeal

7KHEHQHÀWVDQGGUDZEDFNVRIXVLQJFDUERQEODFNLQDXWRPRWLYHFRDWLQJV
Automakers the world over are focused on developing next-generation mobility
technologies for the smart society of the future that will facilitate autonomous driving,which will make it possible for anyone and everyone to get around safely and securely.
/HDGLQJWKHFKDUJHLVOLJKWGHWHFWLRQDQGUDQJLQJ /L'$5 ZKLFKGHWHFWVWKHVKDSH
DQGGLVWDQFHRIVXUURXQGLQJREMHFWVE\LUUDGLDWLQJWKHPZLWKDQHDULQIUDUHG 1,5 ODVHUDQGPHDVXULQJWKHOLJKWUHÀHFWHGEDFNWRWKHV\VWHP¶VGHWHFWRUHQDEOLQJDXWRQRPRXV
driving vehicles to “see” where they are going and preventing them from bumping
into or colliding with other vehicles or obstacles. However, conventional automotive
FRDWLQJVFRQWDLQFDUERQEODFNDPDWHULDOFRQVLVWLQJRI¿QHFDUERQSDUWLFOHVZKLFKODUJHO\DEVRUEVWKH1,5ZDYHOHQJWKVRI/L'$5VLJQDOVDQGLQFLGHQWVXQOLJKWFDXVLQJKHDWEXLOGXSDQGVLJQL¿FDQWUHGXFWLRQRIREMHFWGHWHFWLRQFDSDELOLWLHV7KHREYLRXVTXHVWLRQLVWKDWLI/L'$5REMHFWGHWHFWLRQFDSDELOLWLHVDUHWKHSULRULW\ZK\QRWMXVWXVHVRPHWKLQJRWKHUWKDQFDUERQEODFN"8QIRUWXQDWHO\LW¶VQRWWKDWVLPSOH,QDGGLWLRQWRSURYLGLQJH[FHOOHQWFRYHUDJHFDUERQEODFNLQFUHDVHVWKH
durability and conductivity of coatings, making its replacement with another material
GLI¿FXOW&DUERQEODFNDOVRSOD\VDQLPSRUWDQWUROHLQERG\FRORUDNH\FRQVLGHUDWLRQIRUFRQVXPHUV¶GHFLVLRQPDNLQJZKHQSXUFKDVLQJDYHKLFOH:LWKRXWXVLQJFDUERQEODFNLWLVGLI¿FXOWWRSURGXFHGDUNFRORUVLQFOXGLQJGHHSEODFNVJUHHQVEOXHVDQG
reds, or neutral colors such as metallic grays. Accordingly, automakers have faced
DFKDOOHQJHLQWKDWWKHPRUHWKH\HPSKDVL]H/L'$5VLJQDOUHVSRQVHWKHOHVVFRORU
design freedom they retain.

7KH1,5ZDYHOHQJWKVRI/L'$5VLJQDOVDUHDEVRUEHGE\WKHFDUERQEODFNSLJPHQWRIDXWRPRWLYHFRDWLQJVVLJQL¿FDQWO\KLQGHULQJVLJQDOUHVSRQVH

Developing a color formulation approach that produces clean, deep colors without hindering LiDAR detection,Q0DUFK&RORUV (IIHFWVWKHSLJPHQWVEXVLQHVVRI*HUPDQ\¶V%$6)RQHRIWKH
ZRUOG¶VOHDGLQJFKHPLFDOVPDQXIDFWXUHUVVXFFHHGHGLQGHYHORSLQJDFRORUIRUPXODWLRQDSSURDFKWKDWSURGXFHVFOHDQGHHSFRORUVZLWKRXWWKHXVHRI/L'$5VLJQDO±DEVRUELQJFDUERQEODFN &RORUV (IIHFWVZDVDFTXLUHGE\',&LQ-XO\
The conventional automotive coating process involves three key layers: A primer, whichevens out surface irregularities and protects the electrocoat; a basecoat, which imparts themain color; and a clearcoat, which seals everything, providing shine and protection against
H[WHUQDOHOHPHQWV,WLVLQWKHSULPHUDQGWKHEDVHFRDWWKDWFDUERQEODFNZKLFKDEVRUEV
1,5ZDYHOHQJWKVLQ/L'$5VLJQDOVLVW\SLFDOO\XVHG6LPLODUSLJPHQWDWLRQFRQVLGHUDWLRQVcan be used if the paint system omits the conventional primer and instead uses a
FRPELQDWLRQRIWZRPRGL¿HGEDVHFRDWOD\HUVWRIXO¿OOWKHFRPELQHGUROHVRIWKHSULPHUDQG
the basecoat.

DIC Report 202240

Special Feature: Helping Realize Sustainable Mobility Solutions

&RORUV (IIHFWVVRXJKWWRDGGUHVVWKHSUREOHPRIFDUERQEODFNDVDSLJPHQWLQFRDWLQJV
for autonomous driving vehicles by embarking on the development of color formulations that
HQDEOHWKHPDQDJHPHQWRI1,5ZDYHOHQJWKVLQDXWRPRWLYHFRDWLQJVE\XVLQJDSULPHUDQG
DEDVHFRDWFRQWDLQLQJ1,5WUDQVSDUHQWDQG1,5UHÀHFWLYHIXQFWLRQDOEODFNSLJPHQWVWKDWVHOHFWLYHO\WUDQVPLWDQGUHÀHFWEDFN1,5ZDYHOHQJWKVZKLOHHQVXULQJWKHKLJKSHUIRUPDQFH
UHTXLUHGIRUHDFKFRDWLQJOD\HU%\XVLQJ1,5IXQFWLRQDOSLJPHQWVDVUHSODFHPHQWIRU
FDUERQEODFN²1,5WUDQVSDUHQWEODFNSLJPHQWVIURPWKHSpectrasense%ODFNSURGXFW
range (Spectrasense%ODFN/DQGWKHQHZSpectrasense%ODFN(+ RUDQ
1,5UHIOHFWLYHEODFNSLJPHQWIURPWKHSicopal ®%ODFNSURGXFWUDQJH Sicopal ®%ODFN/ ²IRUPXODWLRQVZHUHFUHDWHGZKLFKDOORZHG/L'$5VLJQDOVWRSHQHWUDWHWKURXJKDQG
UHÀHFWEDFNLQVWHDGRIEHLQJDEVRUEHGZKLOHDWWKHVDPHWLPHDFKLHYLQJWKHGHSWKRIFRORU
needed for high-end vehicles.

Conventional three-layer coating system(contains carbon black)

This new color formulation approach makes it possible for manufacturers of coatings forautonomous driving vehicles, which will be indispensable to the smart society of the future,
to break free from dependence on carbon black and deliver both outstanding sensing
SHUIRUPDQFHDQGYLVXDODSSHDO%HFDXVHWKLVDSSURDFKLVVXLWDEOHQRWRQO\IRUDXWRPRELOHV
but also for a variety of industrial products where sensors are used, potential applications
span multiple scenarios.

New coating system with functional black pigments that facilitate
the management of NIR wavelengths (does not contain carbon black)
LiDAR signal (NIR light)

LiDAR signal (NIR light)

Strong NIR reflection
Weak NIR reflection

Carbon black replaced byfunctional black pigmentsthat facilitate the managementof NIR wavelengths

Clearcoat
Color basecoat(contains variable amounts ofcarbon black dependent on color)

ThicknessȝP
Signal is absorbed
by carbon black

Transformed
into heat

Primer(contains a significant
amount of carbon black)

Reduced absorption of signal andgeneration of heat

Electrocoated to protect
vehicle body against corrosion

A Distinctively
DIC Response

Electrocoated to protect
vehicle body against corrosion

NIR-transparent black pigments (organic)
SpectrasenseTM Black EH 8082
SpectrasenseTM Black L 0086
NIR-reflective black pigment (inorganic)
Sicopal® Black L 0095

5HDOL]LQJDUHYROXWLRQDU\SHU\OHQHEODFNSLJPHQWWKDWLPSURYHVMHWQHVVDQGHQKDQFHVQHXWUDOFRORUV$QLVVXHWKDWFDQQRWEHUHVROYHGVLPSO\E\UHÁHFWLQJ1,5
7KHLPSHWXVEHKLQG&RORUV (IIHFWV¶HIIRUWVWRGHYHORSDQHZFRORUIRUPXODWLRQDSSURDFKZDVDSURMHFWWRGHYHORS/L'$5EDVHGSRVLWLRQDOPDSSLQJWHFKQRORJLHVIRU
XVHLQDGYDQFHGGULYHUDVVLVWDQFHV\VWHPV $'$6 $PDMRUFKDOOHQJHIRUGHYHORSHUV
was of course the presence of carbon black.
7KHIDFWWKDWFDUERQEODFNDEVRUEVDQGVWRUHV1,5OLJKWLVZHOONQRZQ&RORUV(IIHFWVKDGSUHYLRXVO\GHYHORSHGSLJPHQWVWKDWUHGXFHGWKHDEVRUSWLRQRI1,5
wavelengths—thus exerting a heat-shielding effect—for coatings used in building
materials for roofs and outer walls and enjoyed a significant share of the global
PDUNHWIRUSLJPHQWVXVHGLQFRDWLQJVIRUHQHUJ\HI¿FLHQWEXLOGLQJPDWHULDOV+RZHYHU

simply applying existing technologies would not resolve all the issues for automotive
coatings. Automakers and coatings manufacturers alike demanded a coating system
WKDWZRXOGHQVXUH/L'$5REMHFWGHWHFWLRQFDSDELOLWLHVZKLOHDWWKHVDPHWLPHHQDEOLQJthe creation of dark colors with improved jetness, as well as metallic grays and otherneutral colors. To this end, it was necessary to develop a new functional black pigment
to replace carbon black that was also easy to incorporate into coating systems that
WDNH/L'$5WUDQVPLVVLRQDEVRUSWLRQDQGUHÀHFWLRQLQWRDFFRXQWDQGZDVRSWLPL]HG
for the composition of automotive coatings.

Helping realize innovative coating systems through the optimal combination of pigments that facilitate the management of NIR wavelengths&RORUV (IIHFWVFRPPHQFHGIXOOVFDOHGHYHORSPHQWLQE\WKRURXJKO\DQDO\]LQJDQG
HYDOXDWLQJWKHLPSDFWRIFDUERQEODFNRQ/L'$5VLJQDOVLQFOXGLQJH[DPLQLQJWKHVFDWWHULQJDEVRUSWLRQDQGUHIOHFWLRQRI1,5OLJKWDQGSHUIRUPLQJFRORULPHWULFDVVD\V1DUURZLQJLWV
focus to perylene black, an organic compound that possesses multiple hues, the company
developed Spectrasense%ODFN(+DQLQQRYDWLYHSHU\OHQHEODFNSLJPHQWWKDWLPSURYHVWUDQVPLVVLRQRIWKH1,5ZDYHOHQJWKVLQ/L'$5VLJQDOVDQGHQKDQFHVMHWQHVVE\
DEVRUELQJYLVLEOHOLJKWEHWWHUWKDQRWKHU1,5PDQDJHPHQWEODFNSLJPHQWVRQWKHPDUNHW%\XVLQJWKLVQHZQHXWUDOFRORUHGEODFNSLJPHQWLQFRPELQDWLRQZLWKRWKHU1,5UHÀHFWLYHRUQRQ
absorbing pigments, formulations were created for the primer and basecoat layers which not
RQO\SURYLGHGH[FHOOHQW/L'$5UHÀHFWLYLW\EXWDOVRDOORZHGGHVLUDEOHFRORUVIURPWKHZKROHFRORUSDOHWWHWREHIRUPXODWHG'XHWRWKHQHXWUDOFRORUDQGKLJKMHWQHVVRISpectrasense70
%ODFN(+IRUWKH¿UVWWLPHQHXWUDOJUD\DQGEODFNFRORUVZHUHDFKLHYDEOHVLPSO\E\XVH
of the black pigment in combination with other reduction pigments. No additional tinting or

adjustment is needed unless a color shift is required to achieve the design color.
&RPSOHWHGLQ0DUFKWKHQHZLPSURYHG1,5WUDQVSDUHQWEODFNSLJPHQW
Spectrasense%ODFN(+LPPHGLDWHO\HDUQHGDFFODLPIURPERWKFRDWLQJV
manufacturers and automakers, for the potential it offers in eliminating dependence on
carbon black pigments and opening the way to the realization of a smart society.
',&¶VGHFLVLRQWRDFTXLUHWKH&RORUV (IIHFWVEXVLQHVVDEXVLQHVVSDUWQHURIZKROO\RZQHG86VXEVLGLDU\6XQ&KHPLFDO&RUSRUDWLRQZDVSURPSWHGE\WKH*HUPDQFRPSDQ\¶V
advanced pigment development technologies and experience as a key supplier to all theleading global automotive coatings manufacturers, both of which it believes are essential to
WKHUHDOL]DWLRQRIWKHWDUJHWVLWKDVVHWZKLFKDUHRXWOLQHGXQGHULWV',&9LVLRQORQJWHUPPDQDJHPHQWSODQ )RUPRUHLQIRUPDWLRQRQ',&9LVLRQSOHDVHVHHSDJH $V
this new color formulation approach shows, the acquisition has already proved highly fruitful.

DIC Report 2022

41

Special Feature: Helping Realize Sustainable Mobility Solutions

Message

The reaction from automakers and the coatings industry has been tremendous!

'HYHORSPHQWRIDTXDQWLWDWLYHPHDVXULQJPHWKRGWKURXJKPRGLÀFDWLRQRID899LV1,5VSHFWURSKRWRPHWHU&RORUV (IIHFWVKDGH[SHULHQFHGHDOLQJZLWKKHDWPDQDJHPHQWDSSOLFDWLRQVWKURXJKWKHGHYHORSPHQWRISLJPHQWVZLWKKHDW
shielding functions. Nonetheless, undertaking a project to develop pigments for automotive coatings compatible with autonomous
GULYLQJV\VWHPVWKDWZRXOGERWKHQKDQFH/L'$5VLJQDOUHVSRQVLYHQHVVDQGLPSURYHGDUNDQGQHXWUDOFRORUVZDVDPDMRUFKDOOHQJH
,QWKHLQLWLDOSKDVHRIWKLVSURMHFWWKHIRFXVZDVWRXQGHUVWDQGKRZ/L'$5VLJQDOVEHKDYHGDWYDULRXVDQJOHVRILQFLGHQFH
when encountering a coating stack comprising three layers formulated with functional pigments. The tools needed to make suchmeasurements were not readily available for experiments under reproducible lab conditions, so assistance was sought from a
OHDGLQJHTXLSPHQWPDQXIDFWXUHU:LWKWKLVFRPSDQ\¶VKHOSPRGL¿FDWLRQVZHUHPDGHWRDFRPPHUFLDOXOWUDYLROHW±YLVLEOH1,5 89
9LV1,5 VSHFWURSKRWRPHWHUHQDEOLQJPHDVXUHPHQWVWREHPDGHDFURVVD±QPZDYHOHQJWKUDQJHZKLOHYDU\LQJWKH
incidence angle of the measured sample. This allowed comparative measurements of coated objects, to determine the degree to
ZKLFKFDUERQEODFNQHJDWLYHO\DIIHFWV/L'$5VLJQDOUHVSRQVHDWGLIIHUHQWLQFLGHQFHDQJOHVDQGKRZPXFKWKLVLPSURYHVZLWK1,5
transparent black pigments, the outcome of which played a key role in subsequent pigment development efforts.

*OREDO,QQRYDWLRQ0DQDJHU±
Organic Pigments,&RORU0DWHULDOV
6XQ&KHPLFDO&RUSRUDWLRQ

Dr. Paul Brown

7KHGLIÀFXOW\RISURGXFLQJQHXWUDOPHWDOOLFJUD\V
2QHRIWKHPRVWGLI¿FXOWWDVNVZKHQXVLQJDOWHUQDWLYHSLJPHQWV²LQFOXGLQJH[LVWLQJFRPPHUFLDO
1,5WUDQVSDUHQWEODFNSLJPHQWVIURPWKHSpectrasense%ODFNUDQJH²DVUHSODFHPHQWIRU
FDUERQEODFNZDVWRIDFLOLWDWHWKHSURGXFWLRQRIQHXWUDOPHWDOOLFJUD\V:KHQFRPELQLQJH[LVWLQJ
Spectrasense%ODFNSURGXFWVZLWKQHXWUDOSLJPHQWVVXFKDVWLWDQLXPGLR[LGHVLOYHUPLFDDQG
aluminum, the color shifts into the green or reddish-blue color space, requiring the addition ofother color pigments to counter the undesired undertone.
To overcome this issue, information available in related literature was combined with internal
expertise to develop a method for controlling the crystal structure of the perylene, thereby
controlling the pigment color. This enabled the development of a new perylene black that
SURGXFHVQHXWUDOFRORUVLQSLJPHQWUHGXFWLRQVDQGIXO¿OOVWKH1,5WUDQVSDUHQF\UHTXLUHPHQWV
IRU/L'$5GHWHFWDEOHFRORUIRUPXODWLRQVDWDOOYLHZLQJDQJOHV,PSRUWDQWO\WKHDSSURDFKZDV
effective not only in the laboratory but also when scaled up to commercial production level. ThisEUHDNWKURXJKPDNHVLWSRVVLEOHWRDFKLHYH1,5UHÀHFWLYHQHXWUDOPHWDOOLFJUD\V VROLGDQGHIIHFWVKDGHV ZLWKRXWWKHQHHGIRUFRORUFRUUHFWLRQZLWKDQRWKHUSLJPHQWVLiDAR Signal Response: Carbon Black vs. Functional Black Pigments

New perylene black&RPPHUFLDO
perylene black&DUERQEODFN

Commercialization and production during a global pandemic
7HFKQRORJLFDOGHYHORSPHQWKDGSURJUHVVHGFRQVLGHUDEO\EHIRUH&29,'VSUHDGWR(XURSHDQGE\WKHWLPHLWZDVGHFODUHGDSDQGHPLFGHYHORSPHQWZDVDOUHDG\DWWKHVWDJHZKHUHDGYDQFHGSURWRW\SHVZHUHEHLQJVDPSOHGWRPDMRUFXVWRPHUVZLWKZKRPDFWLYHQRQGLVFORVXUHDJUHHPHQWVZHUHLQSODFH*LYHQWKH
JOREDOVLWXDWLRQKRZHYHUVLJQL¿FDQWFKDOOHQJHVUHPDLQHGLQ¿QGLQJDQHIIHFWLYHZD\WRREWDLQGHWDLOHGIHHGEDFNRQWKHWHVWLQJRIWKHSURWRW\SHVVRWKDWDQ\¿QDODGMXVWPHQWVFRXOGEHPDGHWRWKHSLJPHQWSULRUWRFRPPHUFLDOL]DWLRQLQ
Under normal circumstances, face-to-face meetings with customers, and with pertinent in-house groups, would have taken place. However, given the pandemic
DOOFRPPXQLFDWLRQVKDGWREHFRQGXFWHGYLDRQOLQHPHHWLQJV,QJHQHUDOOLPLWHGH[SHULHQFHH[LVWHGLQFRQGXFWLQJLQGHSWKGLVFXVVLRQVUHPRWHO\EXWGHVSLWH
some initial frustrations, effective communication was achieved, resulting in successful completion of the project and the subsequent launch in the market in(YHU\RQHLQYROYHGLQWKHGHYHORSPHQWFRPPHUFLDOL]DWLRQDQGSURGXFWLRQRIWKHQHZSLJPHQWDVZHOODVRXUFXVWRPHUVGHVHUYHVDELJWKDQN\RX(DUQLQJWKHEHVWSUHVHQWDWLRQDZDUGDWWKH)2&86FRQIHUHQFH
7KH'HWURLW6RFLHW\RI&RDWLQJV7HFKQRORJ\ '6&7 KROGVDQDQQXDO)XWXUHRI&RDWLQJV8QGHU6WXG\ )2&86 FRQIHUHQFHIRUWKHGLVFXVVLRQRIQRWDEOHWKHPHV
and urgent issues. This event is attended by original and contracted coatings manufacturers from around the world, as well as by leading global automakers.
0RUHWKDQSHRSOHWRRNSDUWLQWKH0D\FRQIHUHQFHZKLFKZDVKHOGUHPRWHO\WRFXUEWKHVSUHDGRI&29,''XULQJWKHFRQIHUHQFH&RORUV (IIHFWV
JDYHDSUHVHQWDWLRQRQWKHUHÀHFWLYLW\RIFRDWLQJVDQG/L'$5GHWHFWLRQGXULQJZKLFKLWGHWDLOHGLWVVXFFHVVLQUHDOL]LQJDPHWKRGIRUPHDVXULQJYDULDEOHDQJOH
LQWHQVLWLHVRIUHÀHFWHG/L'$5UDGLDWLRQDQGGHYHORSLQJDQHZSHU\OHQHEODFNSLJPHQWZLWKQHXWUDOFRORULVWLFV7KHPHVVDJHVGHOLYHUHGLQWKHSUHVHQWDWLRQZHUHZHOOUHFHLYHGE\WKHRUJDQL]LQJFRPPLWWHHDQG&RORUV (IIHFWVZDVSOHDVHGWRUHFHLYHWKHEHVWSUHVHQWDWLRQDZDUG
7KHH[WUHPHO\SRVLWLYHUHVSRQVHWRRXU)2&86SUHVHQWDWLRQFRQ¿UPVWKDW&RORUV (IIHFWV¶SLJPHQWVWHFKQRORJLHVDUHVHHQDVOHDGHUVLQWKHDUHDRISLJPHQWV
IRU/L'$5GHWHFWDEOHFRORUV)XUWKHU5 'ZLOOFRQWLQXHLQWKLVDUHDZLWKWKHDLPRIFRQWULEXWLQJWRLQFUHDVHGGHVLJQIUHHGRPDIC Report 2022

42

Special Feature: Helping Realize Sustainable Mobility Solutions

KEY PERSON from DIC

This new pigment yields a true black and offers great potential.

:KHQWKHGHYHORSPHQWSHUVRQQHO¿UVWVKRZHGPHDSDQHOFRDWHGZLWKWKHSURWRW\SHSLJPHQW,ZDVUHDOO\H[FLWHGDQGUHFRJQL]HGWKDWLWKDGWKH
SRWHQWLDOWREHFRPHDPDVVLYHO\LPSRUWDQWQHZSURGXFW:HKDYHLQWURGXFHGSHU\OHQHEODFNWRPDQXIDFWXUHUVRIDXWRPRELOHFRDWLQJVPDQ\WLPHVLQ
the past, but have not been able to break into the area of color creation for automobiles, which requires the production of clean, deep colors with a
FRDWLQJWKLFNQHVVRIRQO\ȝP7KHUHDFWLRQIURPFXVWRPHUVKDVDOZD\VEHHQWKHVDPH³,WORRNVEODFNEXWLW¶VQRWDWUXHEODFN´:HKDYHUHFHLYHGPDQ\IDYRUDEOHDQGHQFRXUDJLQJFRPPHQWVLQUHVSRQVHWRVDPSOHVRISpectrasense%ODFN(+DQGWKHSK\VLFDOFKDUDFWHULVWLFVRIFRDWLQJVFRQWDLQLQJWKHQHZSLJPHQWKDYHDOVRHDUQHGSRVLWLYHUHYLHZV5HFHQWO\VWULFWHUHQHUJ\HIILFLHQF\VWDQGDUGVIRU
automobiles have prompted demand for pigments with heat-management capabilities, underscoring our belief in our ability to grow this new
business without waiting for the full-scale arrival of autonomous driving. This is a new functional pigment that enables the creation of a true black
FRDWLQJDQG,FDQIHHOFRQ¿GHQWLQUHFRPPHQGLQJIRUDZLGHUDQJHRIDSSOLFDWLRQVManager, Pigment Global Operation Strategy Planning Group, Color Material Products Division, Osaka Branch, DIC Corporation

KEY PERSON from DIC

Shintaro Gomyo

The potential for pigments that can replace carbon black is unlimited.

To improve the safety of autonomous driving vehicles, it is essential to ensure that vehicles are able to detect things around them that they
FRXOGSRVVLEO\UXQLQWRIURPWKHFORWKHVZRUQE\SHGHVWULDQVWRELF\FOHVZDOOVDQGFRQVWUXFWLRQFRQHV0DQ\VXFKREMHFWVIHDWXUHFRORUDQWV
FRQWDLQLQJFDUERQEODFN,QDOORIWKHVHFDVHVZHQHHGWRUHSODFHFDUERQEODFNZLWKIXQFWLRQDOSLJPHQWVWKDWGRQRWLQWHUIHUHZLWKDQ
DXWRQRPRXVGULYLQJYHKLFOHV¶DELOLW\WRGHWHFW/L'$5VLJQDOV7KHSRWHQWLDODSSOLFDWLRQVIRU&RORUV (IIHFWV¶IXQFWLRQDOEODFNSLJPHQWVUHDOO\DUHLQQXPHUDEOH0RUHRYHUFDUERQEODFNDEVRUEV1,5OLJKWLQLQFLGHQWVXQOLJKWFDXVLQJKHDWEXLOGXSVRZHDOVRH[SHFWKHDWPDQDJHPHQW
applications for these pigments to expand further.
7HFKQLFDO,QGXVWU\0DQDJHU²$XWRPRWLYH6XQ&KHPLFDO&RUSRUDWLRQKEY PERSON from DIC

Andre Bendo

7KLVLVDQRWKHUJUHDWH[DPSOHRIKRZZHDGYDQFHWHFKQLFDODQGVFLHQWLÀFH[SHUWLVH

7KHLQÀXHQFHRIFRORUSLJPHQWVRQFRDWLQJVLVQRWUHVWULFWHGVROHO\WRWKHYLVXDOUHJLPH'HVSLWHWKHQDPHWKH\DOVRLPSDFWSURSHUWLHVDSDUWIURPFRORUGH¿QHGLQUHJLRQVKLGGHQWRWKHKXPDQH\H2QHRIWKHVHUHJLRQVLV1,5ZKLFKLVUHOHYDQWWRERWKVRODUKHDWPDQDJHPHQWDQG
/L'$5&RQWURORYHUWKHDGYDQFHGSURSHUWLHVRISLJPHQWVLVDNH\FKDUDFWHULVWLFXQGHUVFRULQJRXUSRVLWLRQDVRQHRIWKHODUJHVWSLJPHQW
producers and a global leader at the forefront of technological understanding and research. Our expertise led to the recent development of
DQRXWVWDQGLQJIXQFWLRQDOEODFNSLJPHQWRIIHULQJDPXOWLWXGHRISRVVLEOHXVDJHVE\HQDEOLQJWDUJHWHGWXQLQJRIWKH1,5EHKDYLRURIFRDWLQJVThe new Spectrasense%ODFN(+SLJPHQWLVDFOHDUGHPRQVWUDWLRQRIRXUGHHSNQRZOHGJHRISLJPHQWFKHPLVWU\DQGSK\VLFVDVZHOO
as our highly skilled engineering capabilities.
Team Leader, Colorimetry & Pigment Physics, Color Materials, Sun Chemical Corporation

KEY PERSON from DIC

Dr. Max Mussotter

Bringing together the know-how, technologies and sales channels of threecompanies is key to expanding sales of sustainable products.

:LWK&RORUV (IIHFWVWKHRSHUDWLRQVRIZKLFKIRFXVRQ(XURSHEHFRPLQJDPHPEHURIWKH',&*URXSZHKDYHLPSOHPHQWHGDWKUHH
SURQJHGJOREDOFRORUPDWHULDOVEXVLQHVVPDQDJHPHQWIUDPHZRUNFRPSULVLQJWKLVFRPSDQ\86VXEVLGLDU\6XQ&KHPLFDODQG',&ZKLFKRYHUVHHV*URXSRSHUDWLRQLQ$VLD
The new functional black pigments featured herein represent a pioneering sensing-related application for pigments that have long been
VROGIRUXVHLQKHDWPDQDJHPHQWDSSOLFDWLRQV7KHVHVXVWDLQDEOHSURGXFWVDUHHYLGHQFHRI&RORUV (IIHFWV¶DGYDQFHGWHFKQRORJLHVDQGPDUNHWLQJFDSDELOLWLHV/RRNLQJDKHDGZHZLOOZRUNQRWRQO\WRH[SDQGVDOHVRI&RORUV (IIHFWV¶IXQFWLRQDOFRORUPDWHULDOVWKURXJKRXUJOREDOVDOHVFKDQQHOVEXWDOVRWRH[SDQGRXUSURGXFWSRUWIROLRRISURGXFWVWKDWFRQWULEXWHWRVXVWDLQDELOLW\E\OHYHUDJLQJ',&¶V5 '
capabilities to further enhance added value.
Manager, Color & Display Business Planning Department, DIC Corporation

DIC Report 2022

43

Mineo Yoda

Special Feature: Helping Realize Sustainable Mobility Solutions

Functional Products:RUOG·VIDVWHVWFXULQJFDUERQÀEHU²UHLQIRUFHGSUHSUHJDICARBO® LF series

SDGs Goals 7, 9, 13 and 17

The DIC Group has developed a revolutionary method for producing
CFRP—essential to lowering the weight and increasing the durability
RIYHKLFOHV³WKDWVLJQLÀFDQWO\UHGXFHV&22 emissions and energy
consumption attributable to production.
Value Creation&RQWULEXWLQJWRLPSURYHGIXHOHIÀFLHQF\IRUYHKLFOHVDPRQJRWKHUVE\LPSURYLQJSURGXFWLYLW\IRU&)53

3URGXFWLRQSURFHVVHVWKDWKLQGHUWKHEURDGDGRSWLRQRI&)53DVXSHULRUFRPSRVLWHPDWHULDO
As its name indicates, carbon fiber–reinforced plastic (CFRP) is a fiberreinforced composite material containing carbon fibers reinforced with resin.
7RXVHUHLQIRUFHGFRQFUHWHDVDPHWDSKRUFDUERQ¿EHUFRUUHVSRQGVWRUHEDU
while resin corresponds to concrete. CFRP’s principal properties include its
outstanding strength and lightness. Originally used in golf clubs and fishingrods, CFRP today is finding increased application in aircraft, automobiles,
buildings, bridges, satellites and wind power generating equipment. In the
PRELOLW\¿HOGLQSDUWLFXODUZLWKIXHOHI¿FLHQF\DNH\WKHPHDVWKHZRUOGVHHNVWR
decarbonize, CFRP is seeing further growth in demand as a functional material
that helps reduce vehicle weight.

One production process for CFRP uses prepreg sheet, a carbon fiber–
reinforced sheet-form intermediate material made by spreading bundles of
FDUERQ¿EHUV WRZV WRFUHDWHÀDWVKHHWVDQGLPSUHJQDWLQJWKHVKHHWVZLWKUHVLQ¿JXUH 7KHVKHHWVDUHWKHQOD\HUHGLQWRDKHDWHGPROGFDYLW\FRPSUHVVLRQPROGHGDQGFXUHG$PDMRUGUDZEDFNLVWKDWFRQYHQWLRQDOSUHSUHJVKHHW²
PDGHZLWKHSR[\UHVLQ²PXVWEHUHIULJHUDWHGRUIUR]HQIRUVWRUDJHDQGWKDZHG
for use, as a result of which this has traditionally been a costly, complex and
ORZSURGXFWLYLW\SURFHVV ¿JXUH 

Figure 1: Carbon Fiber–Reinforced Prepreg Sheet

An intermediate material made by spreading carbon fiber tows to create flat sheets and impregnating the sheets with resin

Spread of tow
Carbon fibers

Heat-curable resin

Impregnation with resin

DIC Report 2022

44

Carbon fiber–reinforced
prepreg sheet

Special Feature: Helping Realize Sustainable Mobility Solutions

Figure 2: Production of CFRP Using Conventional Prepregs

PRESS

CUT

300
sec

14 0 °C

PRESS

Collect prepreg from freezer andwait for it to thaw

Cut

Layer

Compression mold (300 seconds)

Remove CFRP from mold

5HDOL]LQJDIDVWFXULQJFDUERQÀEHU²UHLQIRUFHGSUHSUHJWKDWJUHDWO\LPSURYHVSURGXFWLYLW\
With the aim of improving the productivity and cost of CFRP production, in
ILVFDO\HDU',&FRPPHQFHGIXOOVFDOHGHYHORSPHQWRIDIDVWFXULQJ
resin for prepreg, leveraging its polymer design technologies, and launched aresearch project aimed at commercializing fast-curing prepreg sheets made
ZLWKWKLVUHVLQLQSDUWQHUVKLSZLWKWKH,QGXVWULDO7HFKQRORJ\&HQWHURI)XNXL3UHIHFWXUHZKLFKRZQVDKLJKVSHHGWRZVSUHDGLQJWHFKQRORJ\DQG)XNXLEDVHGFRPSUHKHQVLYH¿EHUVPDQXIDFWXUHU6HLUHQ&R/WGZKLFKERDVWVKLJK
precision impregnation technologies that capitalize on its resin film–forming
and coating capabilities. This project was chosen as a major research project
E\-DSDQ¶V1HZ(QHUJ\DQG,QGXVWULDO'HYHORSPHQW2UJDQL]DWLRQ 1('2 
XQGHULWV6WUDWHJLF,QQRYDWLRQ3URJUDPIRU(QHUJ\&RQVHUYDWLRQ7HFKQRORJLHVas a practical application development project aiming at commercialization forautomotive applications within three years.
7KHWKUHHSURMHFWSDUWQHUVSURFHHGHGZLWK5 'LQWKHLUUHVSHFWLYHDUHDVRI
specialty and cooperated closely to integrate new technologies. In summerWKH\VXFFHHGHGLQWKHSUDFWLFDOGHYHORSPHQWRIDIDVWFXULQJSUHSUHJ
sheet that boasts the world’s fastest curing time and can be stored at room
WHPSHUDWXUH DURXQG& %\VKRUWHQLQJWKHPLQLPXPFXULQJWLPHWREHWZHHQDQGWKDWRIFRQYHQWLRQDOSUHSUHJVKHHW²LHWRDSSUR[LPDWHO\VHFRQGV²DQGHOLPLQDWLQJWKHQHHGWRUHIULJHUDWHRUIUHH]HIRUVWRUDJHDQG
WKHQVXEVHTXHQWO\WKDZIRUXVHSURGXFWLYLW\LVLPSURYHGE\XSWR¿YHWLPHV
Production costs are also lowered because there is no need to install and
PDLQWDLQUHIULJHUDWHGRUIUR]HQVWRUDJHIDFLOLWLHV ¿JXUH )LJXUH)DVW&XULQJ&DUERQ)LEHU²5HLQIRUFHG3UHSUHJ 6LJQLÀFDQW,PSURYHPHQWLQ3URGXFWLYLW\

PRESS

CUT

sec
14 0 °C

PRESS

This is thanks to
DICARBO ® LF!

Collect prepreg from storage spaceand proceed to processing(no need to thaw!)

A Distinctively
DIC Response

60This is thanks to DICARBO ® LF!

Cut

Layer

Compression mold (60 seconds)

Remove CFRP from mold

'HYHORSLQJDUDGLFDOFXULQJUHVLQWKDWGHOLYHUVERWKKLJKVSHHGFXULQJDQGQRUPDOWHPSHUDWXUHVWDELOLW\

0DQ\FKDOOHQJHVZHUHIDFHGLQFOXGLQJWKHQHHGWRFRQWUROYLVFRVLW\DFKLHYHWKLQVKHHWVDQGHQVXUHVXLWDELOLW\WRHDFKSURFHVV',&¶VUROHLQWKHMRLQWSURMHFWFHQWHUHGRQGHYHORSLQJDQHZUHVLQWKDWFXUHGTXLFNO\DQGFRXOGEHVWRUHGHDVLO\:KLOHWKH&RPSDQ\KDVH[WHQVLYHH[SHULHQFH
LQWKHDUHDRIPROGLQJUHVLQVDQXPEHURIEUHDNWKURXJKVZHUHQHFHVVDU\WRUHDOL]HDUHVLQFRQGXFLYHWRVSUHDGLQJDQGORRVHQLQJFDUERQ¿EHUEXQGOHVLQWR
single tapes that are then arranged evenly into thin sheets.
',&¶VWHFKQLFDOVWDIIEHJDQE\VHOHFWLQJVHYHUDOIDVWFXULQJFDQGLGDWHUHVLQVLW
saw as having the potential to boost productivity, but found determining a design
and formulation that allowed changes in curing status depending on the process
extremely challenging. They realized that what they needed to develop was aresin that reaches a semi-cured state during the process of impregnating each
XOWUD¿QHFDUERQ¿EHUDQGWKHQIXOO\FXUHVDWDKLJKVSHHGZKHQKHDWHG,QRWKHU
words, a resin that would reach optimum viscosity during each process, i.e.,
FRDWLQJLPSUHJQDWLRQZLQGLQJVWRUDJHDQGFRPSUHVVLRQPROGLQJ'HVLJQDQG

formulation was further complicated by the need to ensure the resin could be
stored at room temperature, rather than requiring refrigeration or freezing.
To address these issues, technical staff analyzed changes in physicalproperties caused by viscosity and resin temperature required at each stage andpressed ahead with polymer design while conducting repeated simulations. At the
VDPHWLPH',&¶V6DNDL3ODQWZKHUHWKH&RPSDQ\FRQGXFWVUHVLQGHYHORSPHQW
produced multiple prototype resins in a process of trial-and-error to realize
WKHSUHFLVHUHVLQFKDUDFWHULVWLFVDVGHVLJQHG7KHVHSURWRW\SHVZHUHWDNHQWRWKH,QGXVWULDO7HFKQRORJ\&HQWHURI)XNXL3UHIHFWXUHZKLFKZDVLQFKDUJH
RIGHYHORSLQJWRZVSUHDGLQJHTXLSPHQWDQG6HLUHQZKLFKZDVUHVSRQVLEOH
for resin coating and impregnation equipment, where repeated additional
UH¿QHPHQWVDQGDGMXVWPHQWVZHUHPDGHDIC Report 2022

45

Special Feature: Helping Realize Sustainable Mobility Solutions

The debut of DICARBO ®/)DFDUERQÀEHU²UHLQIRUFHGSUHSUHJWKDWERDVWVWKHZRUOG·VIDVWHVWFXULQJWLPHDQGFDQEHVWRUHGDWURRPWHPSHUDWXUH
7KURXJKUHSHDWHGWULDOSURGXFWLRQDQGFRQVWDQWPRGL¿FDWLRQWKHSURMHFWSDUWQHUV
succeeded in gradually improving resin characteristics. They also incorporated
an original idea into the impregnating process that greatly enhanced prepreg
SURGXFWLRQ,QVSULQJZLWKWKH1('2SURJUDP¶VGHYHORSPHQWGHDGOLQH
looming, the partners completed fast-curing carbon fiber–reinforced prepreg
DICARBO ®/)ZKLFKQRWRQO\ERDWVWKHZRUOG¶VIDVWHVWFXULQJWLPHEXWFDQ
also be stored at room temperature and is compatible with a wide range ofmolding methods. The three entities subsequently developed a mass production
SURFHVVIRUWKLVLQQRYDWLYHSURGXFWDQQRXQFHGVLPXOWDQHRXVO\LQ-XO\
after which they began providing samples produced using a demonstration
SODQWRSHUDWHGE\6HLUHQ',&GLVSOD\HGDICARBO ®/)DWWKH6RFLHW\IRUWKH
$GYDQFHPHQWRI0DWHULDODQG3URFHVV(QJLQHHULQJ 6$03( ¶V-DSDQ([KLELWLRQLQ'HFHPEHUThe product was well received across a broad range of
LQGXVWULHVDQGWKHGHSDUWPHQWLQFKDUJHZDVEXV\IRUZHHNVUHVSRQGLQJWRLQTXLULHV

1RQHWKHOHVV',&GRHVQRWVHHWKLVDVWKHHQGRIWKHSURMHFWEHOLHYLQJLW
has a mission to promote DICARBO ®/)DVDUHSODFHPHQWIRUFRQYHQWLRQDOFDUERQ¿EHU±UHLQIRUFHGSUHSUHJVDQGWRHQFRXUDJHLWVDGRSWLRQWRIDFLOLWDWHWKH
development of exciting new CFRP products. The Company is confident thatthe increasing use of DICARBO ®/)ZLOOIXUWKHUDGYDQFHWKHSRSXODULW\RI&)53
and in so doing help lower the weight, improve the fuel economy and reduce the
HQHUJ\FRQVXPSWLRQRI¿QLVKHGSURGXFWVLQGLYHUVH¿HOGV'HPRQVWUDWLRQSODQWDW6HLUHQSuitable for Diverse Molding Methods and a Wide Range of Products
Outer surface of DICARBO ® LF
(before curing)

Example 1 Press molding

Example 2 Double belt press molding

Example 3 Autoclaved molding

Example 4 Sheet winding molding

Performance Comparison of DICARBO ®/)DQG2WKHU&DUERQ)LEHU²5HLQIRUFHG3UHSUHJVDICARBO ® LF

Conventional prepregs (heat-cured)

Conventional prepregs (thermoplastic)

3

2

1

0
Ease of storage

Suitability forlong-term storage

Production efficiency

DIC Report 2022

46

Strength

Energy savings(during production)

Special Feature: Helping Realize Sustainable Mobility Solutions

KEY PERSON from DIC

6L[\HDUVDIWHULWVSURSRVDOZHZHUHDEOHWRRYHUFRPHWKHELJJHVWREVWDFOHDQGDFKLHYH
commercialization.

:HSXWWRJHWKHUDQLQKRXVHSURSRVDOIRUHQWHULQJWKHKLJKO\SURPLVLQJFDUERQ¿EHU±UHLQIRUFHGSUHSUHJPDUNHWDVSDUWRIDQHZSURGXFWSODQQLQJHIIRUWDQGFRPPHQFHGGHYHORSPHQW:HVRRQUHDOL]HGWKDWWKHURDGWRFRPPHUFLDOL]DWLRQZRXOGEHDORQJRQHLI',&ZDVWRJRLWDORQH:H
DSSURDFKHGWKH,QGXVWULDO7HFKQRORJ\&HQWHURI)XNXL3UHIHFWXUHLQDQG6HLUHQLQWRXQGHUWDNHDMRLQWSURMHFWZLWKWKHDLPRIDFFHOHUDWLQJGHYHORSPHQW(YHQZLWKWZRSDUWQHUVKRZHYHUWKHZD\IRUZDUGZDVDQ\WKLQJEXWÀDW7KHUHHYHQFDPHDSRLQWZKHQVWDULQJDWWKHPRXQWDLQRISURWRW\SHUHVLQVWKDWKDGFRPHWRQRWKLQJ,IHOWSUHWW\EOHDNDERXWWKHIXWXUHRIWKHSURMHFW)RUWKDWUHDVRQ,ZDVWUXO\SOHDVHGZKHQWKHZRUNRIVR
PDQ\FROOHDJXHVWRPDNHLPSURYHPHQWVHQDEOHGXVWREHJLQSURYLGLQJVDPSOHVLQ&XUUHQWO\ZHDUHZRUNLQJKDUGWRUHDOL]HWKHRI¿FLDOODXQFKRIDICARBO ®/)VKDULQJLQIRUPDWLRQRQFKDOOHQJHVIDFHGE\FXVWRPHUVLQPXOWLSOHLQGXVWULHV,DPFRQ¿GHQWWKDWZHZLOOVRRQEHDEOHWRVKRZ&)53DXWRPRWLYHSDUWVDQGRWKHUSURGXFWVPDGHZLWKDICARBO ®/)DWH[KLELWLRQVDQGHOVHZKHUH
0DQDJHU$3URMHFW$XWRPRWLYH%XVLQHVV8QLW6DNDL3ODQW',&&RUSRUDWLRQ

KEY PERSON from DIC

7RPRDNL6KLQFKL

We are striving to encourage the widespread adoption of CFRP by focusing on reducing
energy consumption attributable to production.

7KHUHVSRQVHWRRXUQHZVUHOHDVHVDVZHOODVWRRXUSDUWLFLSDWLRQLQH[KLELWLRQVDQGGLJLWDOPDUNHWLQJHIIRUWVKDVEHHQLPPHQVHIURPERWKWKH
GRPHVWLFDQGRYHUVHDVPDUNHWV,QDGGLWLRQWRPRELOLW\ZHDUHSURPRWLQJVDOHVWRVSRUWVHTXLSPHQWHOHFWURQLFVDQGHOHFWULFDODSSOLDQFHVFLYLOHQJLQHHULQJDQGPXOWLSOHRWKHULQGXVWULHV',&LVDODWHFRPHUWRWKHPDUNHWIRUFDUERQ¿EHU±UHLQIRUFHGSUHSUHJVRLWLVQRWHDV\IRUXVWRHQFRXUDJH
companies to switch from conventional products to DICARBO ®/)EXWRXUFXVWRPHUVKDYHJHQHUDOO\EHHQLQWHUHVWHGLQVDYLQJHQHUJ\VRWKLVLVWKH
angle we have used to propose this product.
DICARBO ®/)LVDOVRDVWUDWHJLFFKRLFHIRUFXVWRPHUVZKRDUHFRQVLGHULQJXVLQJFDUERQ¿EHU±UHLQIRUFHGSUHSUHJWRGHYHORSQHZ&)53SURGXFWVand we will provide whatever support we can by leveraging the technologies and personal connections we have cultivated in the development of
WKLVLQQRYDWLYHSURGXFW:HDUHGHWHUPLQHGWRFOHDUWKHREVWDFOHVDKHDGWRUHDOL]HWKHRI¿FLDOODXQFKRIDICARBO ®/)DQGORRNIRUZDUGWRWKHGD\ZKHQLWEHFRPHVWKHGRPLQDQWQH[WJHQHUDWLRQFDUERQ¿EHU±UHLQIRUFHGSUHSUHJ
0DQDJHU$3URMHFW$XWRPRWLYH%XVLQHVV8QLW1HZ%XVLQHVV'HYHORSPHQW+HDGTXDUWHUV',&&RUSRUDWLRQ

1DRNR1DNDMLPD

6WDNHKROGHU3HUVSHFWLYH,ORRNIRUZDUGWRWKLVDFKLHYHPHQWOHDGLQJWRWKHUHDOL]DWLRQRIQHZPROGHGSURGXFWVmade with CFRP.
:KHQ',&DSSURDFKHGXVZHKDGEHHQZRUNLQJWRGHYHORSFDUERQ¿EHU±UHLQIRUFHGSUHSUHJVKHHWVWKDWOHYHUDJH
our tow spreading technologies for many years but had not done anything in the area of resin development. For thisUHDVRQZHZHUHSOHDVHGZLWK',&¶VSURSRVDOIRUSURGXFLQJWKHVHVKHHWVZLWKDQRYHOUHVLQDQGWKDWWKHMRLQWSURMHFWZRXOGDOVRLQYROYHDFRPSDQ\EDVHGLQ)XNXL3UHIHFWXUH
In terms of the resin’s behavior, obtaining stable, high-quality prepreg sheets was a challenge, but the researchers
involved in the project were tenacious and positive and succeeded in achieving commercialization. On behalf of the,QGXVWULDO7HFKQRORJ\&HQWHURI)XNXL3UHIHFWXUH,DPGHOLJKWHGDWWKLVDFKLHYHPHQW:HDUHFRQ¿GHQWWKDWWKLVZLOO
lead to the realization of a wide range of new molded products made with CFRP.

*HQHUDO0DQDJHU
1HZ,QGXVWULDO&UHDWLRQ5 ''HSDUWPHQW,QGXVWULDO7HFKQRORJ\&HQWHURI)XNXL
Prefecture

Kazumasa Kawabe

DIC Report 2022

47

Contributing to the Realization of a Circular Economy| Social Imperatives and a Circular Economy
Population expansion and economic growth, together with an improvement in living standards, are heightening issues such as resource depletion and marine
plastics. As a result, awareness of the importance of realizing a circular economy is rising, as is the need to establish business models that do not dependon the consumption of resources.
Since the Basic Act on Establishing a Sound Material-Cycle Society came into force in 2000, Japan has taken decisive steps to decrease the volume ofwaste disposed of and increase the waste recycling rate. In particular, the Act emphasizes minimizing environmental impact by curbing waste generated, as
well as by promoting the recycling of underground resources in discarded waste, thereby lowering consumption of such resources.
Worldwide, awareness of the need to reconsider the excesses of capitalism and reevaluate modern society’s mass production, mass consumption paradigm
has increased rapidly in recent years. This has heightened the urgency of shifting to a new system whereby waste is eliminated and resources are circulated.
In response, in 2019 Japan formulated the Resource Circulation Strategy for Plastics and announced milestone targets for 2030. Under this strategy,
VSHFL¿FHIIRUWVIURP$SULOZLOOIRFXVRQWKHXVHRISODVWLFPDWHULDOV7RGDWHDZLGHUDQJHRIHQWLWLHVKDYHHQIRUFHGWKH$FWRQ3URPRWLRQRI5HVRXUFHCirculation for Plastics at all stages, from product design through to disposal, to promote the recycling of plastics.
In 2020, the European Commission announced the European Green Deal, a European Union (EU)-wide economic growth agenda. The concurrently
formulated Circular Economy Action Plan—a major building block of the deal, for which a new package of measures was recently introduced—seeks torealize an EU that is more competitive, as well as cleaner, and to advance job creation. This has accelerated efforts to reduce resource consumption andpromote decarbonized businesses and spurred efforts by individual EU member countries to put forward related legislation.
Against this backdrop, the DIC Group, a leading global presence in the food packaging market, views advancing efforts to respond to a circular economy
as one of its key sustainability strategies, as set forth in the new DIC Vision 2030 long-term management plan. Looking ahead, the Group will step up efforts
to develop and implement concrete plans for implementing this strategy.

| Grasping and Reducing Environmental Impact from the Perspective of Product Life Cycles
Effective resource recycling demands an approach that takes into account the entire life cycle of products. For the DIC Group, this means understanding
the environmental implications not only of its own business activities but also that of all parties across the supply chain, including suppliers, customers,
consumers and recycling companies. Accordingly, the Group is working to grasp the impact of its products from the perspective of product life cycle,
advancing initiatives with a focus on the “5Rs” (Reuse, Reduce, Recycle, Redesign and Reduce CO2*), as well as acting to curtail waste discharged fromSURGXFWLRQIDFLOLWLHVDQGRI¿FHVDQGJXDUDQWHHHQYLURQPHQWIULHQGO\SURFXUHPHQWSUDFWLFHVZLWKWKHREMHFWLYHRIUHGXFLQJWRWDOHQYLURQPHQWDOLPSDFW*URXSFRPSDQ\6XQ&KHPLFDOGH¿QHVWKH¿IWK³5´DV³5HQHZ´7KH',&*URXSDVDZKROHXVHVWKHEURDGHU³5HGXFH&2 2 .”| Designing Products with Consideration for a Circular Economy
Economic rationality is indispensable to the effective promotion of resource recycling. Rather than treating end-of-life products as waste, it is crucial to takevarious steps to ensure they are recognized once again as having value. For this reason, manufacturers must endeavor to provide recyclable products at thelowest possible cost, while buyers must be willing to pay a fair price. The DIC Group is incorporating the 5Rs from the product design stage by expanding
use of biomass, prolonging useful product life, shifting to mono-materials and emphasizing recyclability. By partnering with customers and recycling
companies, the Group is also striving to ensure economically rational product life cycles, including by improving the quality of recycled resources andminimizing costs associated with reuse and recycling, and to build business models with a low environmental impact.

| Collaboration with Stakeholders
Working with partners is essential to reduce the environmental impact of DIC Group products. At the procurement stage, cooperating with suppliers makes
it possible to reduce CO2 emissions and consumption of terrestrial resources, as well as to source low environmental impact raw materials. When products
and services are used, it is important to discuss needs with customers and encourage them to choose products that are both economical and have a low
environmental impact. To this end, it is necessary to convey information on products in an easy-to-understand manner and join forces with customers toanalyze and improve the environmental impact of their operations. It is also critical to encourage national and industry associations to create standards andincentives that take into account the need to lower environmental impact. By thus collaborating with stakeholders, the DIC Group strives to reduce both its
own and society’s impact on the environment.

DIC Report 2022

48

Contributing to the Realization of a Circular Economy

DIC’s Efforts to Drive the Realizationand Expansion of a Circular Economy

Design

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

“5R”* technologies and development efforts
that advance the circular use of resources* Reuse, Reduce, Recycle, Redesign and Reduce CO₂

Scope 1 and 2

Reduction/recycling of waste “Zero emissions” initiatives

Customer

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

Sale

Scope 3 Category 12
Increase recycling rate
Reduce disposal of

Supplier

Recycling
Materials procured throughsustainable supply chains

Realization of chemical
and materials recycling

used products
Resource recycling governanceUse of digital infrastructure

The DIC Group’s Obligations
Reduce industrial waste and advance the recycling and reuse of materials by promoting “zero emissions” initiatives

Reduce industrial waste(For more information,please see page 93.)

7KH',&*URXSLQ-DSDQJUDVSVSURFHVVHVIRUPDQDJLQJLQGXVWULDOZDVWHIURPJHQHUDWLRQWRGLVFKDUJHE\SURGXFWLRQIDFLOLWLHVLQWHUPHGLDWHWUHDWPHQWDQG¿QDOGLVSRVDODVODQG¿OODQGVHWVWDUJHWVIRUYROXPHGLVFKDUJHGDQGUHVRXUFHUHF\FOLQJUDWH9LHZLQJWKHUHGXFWLRQRILQGXVWULDOZDVWHGLVSRVHGRIDVODQG¿OODVDNH\FKDOOHQJHGRPHVWLF*URXS
companies work actively to recycle cinders, dust and sludge, among others, into roadbed materials and raw materials for cement, use thermal recycling to recover waste heatand minimize production losses by increasing throughput yields.
Overseas, DIC Group companies strive to ensure the disposal of industrial waste in a manner that complies with national and regional legal and regulatory requirements,
as well as to minimize industrial waste through the voluntary recycling and reuse of materials. Going forward, the Group will also seek to implement common global initiatives.
Promote the conservation and effective use of water resources

Manage water resources(For more information,please see page 96.)

With population and economic growth bolstering living standards around the world, global demand for water is expected to rise further going forward, as a result of which areas
experiencing water shortages are likely to expand. The DIC Group sees water as essential to its manufacturing processes, that is, to heating and cooling, washing, chemical
removal and wastewater drainage facilities. Accordingly, the Group recognizes the management of water resources to be a crucial social imperative and promotes various
LQLWLDWLYHVGHVLJQHGWRHQVXUHHI¿FLHQWZDWHUXVHDQGDSSURSULDWHWUHDWPHQWRIZDVWHZDWHUDVZHOODVWRDVVHVVZDWHUULVNVDWLWVSURGXFWLRQVLWHVDURXQGWKHZRUOGWKHUHE\reducing its environmental impact.

-DSDQ,QLWLDWLYHIRU0DULQH(QYLURQPHQW -D,0( ZDVHVWDEOLVKHGLQ6HSWHPEHUZLWKWKHVXSSRUWRI¿YHFKHPLFDOLQGXVWU\DVVRFLDWLRQVDQGFRPSULVHVRI-DSDQ¶V
principal chemicals manufacturers and associations. JaIME recognizes that marine plastics is an issue that the chemicals industry should take the lead in addressing inaccordance with the spirit of Responsible Care. The DIC Group participates and makes proposals regarding a variety of JaIME initiatives, including arranging and disseminating
LQIRUPDWLRQDGGUHVVLQJWUHQGVLQWKHGRPHVWLFPDUNHWHQJDJLQJLQRXWUHDFKWR$VLDDQGDFFXPXODWLQJVFLHQWL¿FNQRZOHGJH

Promote initiatives acrossthe value chain

Japan Clean Ocean Material Alliance
In line with the CLOMA Vision, which calls for the building of a platform for accelerating innovation aimed at resolving the issue of marine plastics, the Japan Clean Ocean
Material Alliance (CLOMA) is fostering the development of “Japan model” technologies that will decrease such plastics through business matching, as well as supporting
the propagation of such technologies in Southeast Asia. The DIC Group has achieved noteworthy results through business matching, collaborating with a customer tocommercialize a chemical recycling technology for polystyrene.

Circular Economy for Flexible Packaging&LUFXODU(FRQRP\IRU)OH[LEOH3DFNDJLQJ &()/(; LVDFROODERUDWLYH(XURSHDQFRQVRUWLXPRIFRPSDQLHVDVVRFLDWLRQVDQGRUJDQL]DWLRQVUHSUHVHQWLQJWKHHQWLUHÀH[LEOH
SDFNDJLQJYDOXHFKDLQ&()/(;VHHNVWRFUHDWHDFROOHFWLRQVRUWLQJDQGUHSURFHVVLQJLQIUDVWUXFWXUHIRUSRVWFRQVXPHUÀH[LEOHSDFNDJLQJE\ZLWKWKHDLPRIEXLOGLQJD
circular economy for this sector. Through the participation of Group company Sun Chemical, the DIC Group will work to ensure a grasp of information and trends pertaining toEuropean collection and sorting systems and regulations, increasingly a subject of debate, with the goal of contributing to the realization of a circular economy.

DIC Report 2022

49

Contributing to the Realization of a Circular Economy

The DIC Group’s Efforts to Contribute to the 5Rs through Its Business Activities
5Rs

Reuse

ReduceRecycleRedesign

ReduceCO2

Initiative

Support the easy
GLVPDQWOLQJRI¿QLVKHG
products〇

Reduce the volume andweight of materials usedin food packaging〇

ExampleOutlineEasily removable adhesive tape

DIC’s specialty double-sided adhesive
tape leverages its adhesive materials
and coatings technologies to deliver
both excellent adhesiveness and easy
removability when dismantling finishedproducts, encouraging the reuse ofcomponents.

(DV\SHHO¿OP

The use of easy-peel film rather than aconventional molded lid helps reducethe volume and weight of materials
XVHG1LWURJHQJDV¿OOLQJHQVXUHVDWLJKWseal, extending the life of the food in thecontainer and contributing to the reductionof food loss.

〇

Promote chemical recycling

Polystyrene

In collaboration with FP Corporation(FPCO), DIC is building a closedloop recycling system for the chemical
recycling of waste polystyrene from foodpackaging. Demonstration testing will
begin in 2023, with full-scale operation
scheduled for 2025.

〇

Advance materials
recycling)OH[LEOHSDFNDJLQJ¿OP

DIC is using its deinking technologies forprinting to deink and sort waste flexible
SDFNDJLQJ¿OPVWRIDFLOLWDWHUHF\FOLQJLQWR
white pellets.

Mono-material constituents〇〇

Shift to mono-materials〇

Promotion of the recyclingof paper and paperboard
food containers〇〇

Use biomass raw materials

DIC Report 2022

50

・Adhesives with oxygenbarrier properties
・Heat sealing materials
・Inks and coatings
・Specialty olefin films

To improve the functionality of films forfood packaging composed of simple
olefins (mono-material), DIC is working
to develop constituent materials andpropose total solutions.

Water-based water- and oil-resistantcoating varnish

This water-based water- and oil-resistantcoating varnish is suitable for food-contact
surfaces. Unlike conventional foodcontainers laminated with a polyethylene¿OPWRLPSDUWUHVLVWDQFHWROLTXLGVSDSHU
or paperboard containers coated with thisvarnish are themselves liquid-resistantand thus do not require lamination with¿OP7KHYDUQLVKGLVVROYHVWRJHWKHUZLWKpaper, meaning paper and paperboard
containers can be easily recycled, earning
WKHPFODVVL¿FDWLRQDVUDQN$LQWHUPVRI
suitability for recycling from the Japan
Federation of Printing Industries.

Printing inks, polymers and adhesives

Many of DIC’s printing inks andadhesives, resins and other products
contain biomass raw materials. In
addition to curbing CO2 emissions overthe life cycle of products, biomass
raw materials bolster the recycling ofplastics by reducing fossil fuel–derived
carbon content.

Work Style Reforms: Activities of the WSR 2020 Committee
Message from the Executive Vice President
With efforts to respond to the protracted COVID-19 pandemic, as well as to measures aimed at tackling climate change
by realizing carbon neutrality and at ensuring the achievement of the SDGs, increasingly required at the national,
regional and corporate levels, the roles that companies are expected to play are undergoing major changes.
:LWKWKHDLPRIDGGUHVVLQJVXFKNH\VRFLDOLPSHUDWLYHVWKH',&*URXSKDVDQQRXQFHGDUHGH¿QHGYLVLRQVWDWHPHQW²³:HLPSURYHWKHKXPDQFRQGLWLRQE\VDIHO\GHOLYHULQJFRORUDQGFRPIRUWIRUVXVWDLQDEOHSURVSHULW\²Color & Comfort´²
and a new long-term management plan, DIC Vision 2030.
7RIXO¿OOWKHSURPLVHRIRXUUHGH¿QHGYLVLRQVWDWHPHQWLWLVFUXFLDOWKDWWKHHPSOR\HHVUHVSRQVLEOHIRUGULYLQJWKH*URXS
forward share our vision for the future and work as one to help us evolve as a corporate group that contributes to therealization of a healthy global environment and a sustainable society. To this end, it is essential that we maximize theadded value the Group provides by ensuring each and every employee enjoys job satisfaction and is able to reach theirfull potential. These are the objectives of the Work Style Revolution (WSR) 2020 Committee.
With the aim of achieving the goals of DIC Vision 2030, the Group will further strengthen necessary investments in its
human capital, that is, each and every one of its employees, which it recognizes as its most important resource.
Executive Vice President,

Toshifumi Tamaki Chairman, WSR 2020 Committee| WSR 2020
Fiscal year 2020 marked a major turning point in the DIC Group’s exploration of potential new work styles. Positioning the year as theinaugural year of reforms, the Group launched WSR 2020 as a project targeting the development of unique new work styles to enhance job
VDWLVIDFWLRQDQGSURGXFWLYLW\6SHFL¿FLQLWLDWLYHVLQFOXGHQRWRQO\UHYLVLQJH[LVWLQJV\VWHPVDQGFUHDWLQJQHZV\VWHPVDQGLQIUDVWUXFWXUHVEXW
also working to enhance the awareness and conduct of individual frontline employees.
With the aim of fostering diverse employees who are both motivated and productive, the WSR 2020 project was structured around three
central themes: Job satisfaction improvement reforms, workplace reforms and process reforms. These three themes and related initiatives
are described below.

| Job Satisfaction Improvement Reforms
The ideal DIC Group workplace is one that embodies The DIC Way by encouraging enthusiasm about taking on various challenges,
evaluating performance fairly and recognizing personal value. The Group is promoting various reforms to improve job satisfaction in linewith key themes: Create work environments that empower employees to reach their full potential, appropriately evaluate employees fortaking on challenges and for achievements, and create a system that rewards them to the maximum degree possible; and support careerdevelopment for individual employees based on a performance-oriented approach. Human capital management, as outlined in DIC Vision
2030, emphasizes the fact that a company’s key players are its employees. DIC will continue to roll out measures that support the activitiesof each of its key players and inspire job satisfaction.
Reforms to Improve Job Satisfaction (Beginning in Fiscal Year 2022)
Theme

Outline

Details

Diversity

Pursue diversity by employing a broad spectrum of individuals without
regard to such considerations as age, nationality or gender, maintaining
awareness of the importance of inclusion and mutual respect.

In addition to ongoing initiatives to promote career opportunities for
women and the hiring of foreign nationals, in fiscal year 2022 DIC will
begin implementing initiatives aimed at uncovering individual strengths
and talents, foster a corporate culture that emphasizes mutual respectand enhance teamwork.

Inner branding

Nurture a sense of unity and bolster job satisfaction bycommunicating information on distinctively DIC employee conductthat complies with The DIC Way in an easy-to-understand manner.

Through the dissemination of more in-depth everyday information on, forexample, employee activities and internal systems, DIC is working to raiseawareness of what makes DIC unique and to evoke a shared sense of being
part of the DIC family that motivates employees to act on their own initiative.

DIC Report 2022

51

Work Style Reforms: Activities ofthe WSR 2020 Committee

Theme

Outline

Details

Communication

Focus on communication between superiors and subordinates,
demonstrating that empathy can lead to compromise and how
effective methods of communicating can enhance job satisfaction.

Provide training and coaching on one-on-one communication.

Career support

Provide employees with opportunities to design their own careers,
thereby boosting both professional skills and job satisfaction.

Introduce “self-career dock” training and make use of external
career counselors.

Annual surveys to gauge senseof belonging

Enhance the visibility of and quantify employees’ enthusiasm fortheir work and use this information to promote various internalorganizational development efforts.

Conduct an employee engagement survey, analyze results andimplement measures to lift employee enthusiasm.

1HZTXDOL¿FDWLRQEDVHGUHPXQHUDWLRQ
and evaluation systems (to commence
LQ¿VFDO\HDU(QVXUHWKHDYDLODELOLW\RIPXOWLSOHFDUHHUSDWKVWKDWDFFRPPRGDWHDZLGHUDQJHRIGXWLHVDQGUROHVWKHUHE\FUHDWLQJTXDOL¿FDWLRQEDVHG
systems that are similar to a job-oriented system.

VOICE We work to communicate the attractiveness of DIC to improve employee motivation.
As part of our inner branding initiative, we are disseminating information internally under the heading “DIC Value: Better Understanding the Company’s
Personnel and Employee Welfare Systems.” DIC has earned positive evaluations for its human resources and sustainability frameworks from a variety ofassessment organizations. However, looking internally there were fears that DIC’s appeal was not being communicated adequately. Our goal is thus to provide
a range of useful information to employees that will further enhance their appreciation of and affection for the Company. The topic that has received thegreatest response to date was a special feature on childcare leave programs for male employees. In addition to introducing leave programs, we included actualcomments from employees who have made use of these programs and their partners, which I think employees empathized with.
I look forward to being able to foster a sense of unity by showcasing different themes that underscore DIC’s positive features and incorporate actualcomments from employees through published articles and online events. I am proud to work for DIC and will continue to provide information aimed atincreasing job satisfaction for all of my colleagues.
HR Group, General Aﬀairs and HR Department

Kaori Kanbayashi| Workplace Reforms
To accommodate the rapidly expanding use of telework arrangements as a result of COVID-19, the DIC Group has taken steps to build an
infrastructure, including networks and security devices, to ensure safety and productivity. The Group will continue working to reinforce thisinfrastructure to help individuals and departments/divisions and to improve employees’ practical skills in leveraging digital technologies.
Reforms to Enhance Workplaces (Beginning in Fiscal Year 2022)
Theme

Outline

Details

Office remodeling

Promote an open plan layout at corporate headquarters and
WKHHVWDEOLVKPHQWRIVDWHOOLWHRI¿FHV

Support work styles that enable employees to choose the location,functions and environment that best suit their particular work. Regarding
the open plan layout at corporate headquarters, design zone-specific
IDFLOLWLHVDQGHQYLURQPHQWVDSSURSULDWHIRUDFHQWUDORI¿FHDQGSXUVXHWKH
FUHDWLRQRIDFHQWUDORI¿FHWKDWLVERWKIXQFWLRQDODQGDWWUDFWLYHDQGWKDWHPSOR\HHVZLOOFKRRVHDVDSSURSULDWHIRULQRI¿FHZRUN

Casual dress code

Foster a corporate culture that emphasizes mutual respect andacceptance of diversity by promoting a casual dress code at
FRUSRUDWHKHDGTXDUWHUVEUDQFKHVDQGVDOHVRI¿FHV

Introduce Casual DIC, a framework that allows each individual to freely
choose their work attire within certain parameters and with consideration
for time, place and occasion.

Improvement of practical skills inleveraging digital technologies

Further enhance productivity through the use of digitaltechnologies and data.

Develop rank- and role-specific training programs to raise employees’
minimal digital skills level. Appoint a DX leader in each business area topromote departmental and Companywide DX initiatives and strengthen
the digital capabilities of human resources.

DIC Report 2022

52

Work Style Reforms: Activities ofthe WSR 2020 Committee

VOICE We are working to create better work environments for employees.
2ZLQJWRWKHSDQGHPLF',&¶VFRUSRUDWHKHDGTXDUWHUVDQGEUDQFKRI¿FHVVKLIWHGWRWKHVRUWRIK\EULGZRUNVW\OHLQFRUSRUDWLQJUHPRWHDQGRQVLWHZRUNWKDWKDV
become common everywhere. This change provided an opportunity to take a close look at various aspects of Group workplaces, which we had never done
EHIRUHDQGUHWKLQNWKHIXQFWLRQVWKDWDUHUHDOO\QHHGHGLQWRGD\¶VRI¿FHV:HDVNHGRXUVHOYHVZKDWVRUWRIZRUNSODFHZRXOGWUXO\EHFRQGXFLYHWRRXUQHZZRUN
style and help bolster productivity.
:KDWZDVSDUWLFXODUO\GLI¿FXOWZDVWKDWWKHDQVZHUWRWKHVHTXHVWLRQVZDVQRWVLPSO\DQH[WHQVLRQRIHIIRUWVZHKDGPDGHWRGDWH:HKDGWRVWDUWDJDLQZLWKa blank slate. So while there were a lot of challenges, at the same time it was an interesting and rewarding experience.
7KDQNVWRWKHFRRSHUDWLRQRIFROOHDJXHVZHDUHQRZZRUNLQJWRUHDOL]HRI¿FHVWKDWPDNHHPSOR\HHVZDQWWRZRUNRQVLWH,KRSHHYHU\RQHLVORRNLQJIRUZDUGWRWKHQHZRI¿FHV
HR Group, General Aﬀairs and HR Department

Masatoshi Tsumanami| Process Reforms
Alongside efforts to bolster job satisfaction and create workplaces that empower employees to fully demonstrate their capabilities, the DIC*URXSLVDGYDQFLQJDSURMHFWWKDWLQYROYHVDWKRURXJKJRLQJUHYLHZDQGVLPSOL¿FDWLRQRIH[LVWLQJZRUNVW\OHVDQGUXOHVWRHQVXUHWKDWLQGLYLGXDO
and cross-departmental operations are seamless and automated. The Group is also promoting the standardization of business processes
and data, creating a cycle that permanently improves the productivity of individuals, departments/divisions and the Group as a whole.
Additionally, efforts are also being aligned with ongoing digitalization measures to maximize the performance of the entire DIC Group.
Theme

Outline

Details

Digital business infrastructure

Build a global digital infrastructure and continuously update
business processes and rules.

Realize standardized, automated and seamless operations bysimplifying and promoting consistent business processes andrules across all departments.

Stronger competitive foundation,PSURYHHI¿FLHQF\WKURXJKWKHGLJLWDOL]DWLRQRIRSHUDWLRQVDQG
promote the optimization of the entire value chain.

Advance digital marketing, smart production facilities andsupply management from the perspective of total, rather than
GHSDUWPHQWVSHFL¿FRSWLPL]DWLRQStreamline time-consuming daily tasks.

Review approval procedures and approaches to conducting
PHHWLQJV,PSURYHHI¿FLHQF\DQGOHVVHQZRUNORDGE\VLPSOLI\LQJ
approval procedures, and by ensuring a quantitative grasp of andsetting new rules for meetings conducted.

(I¿FLHQF\RIGDLO\RSHUDWLRQVVOICE *RLQJEH\RQGLQGLYLGXDOZRUNHIÀFLHQF\ZHDUHZRUNLQJWRDFKLHYHRSWLPL]DWLRQIRUWKHHQWLUH*URXS
In January 2022, DIC launched the CONNECTUS Project with the aim of building a global digital infrastructure and developing new business processes. The
QDPHRIWKLVSURMHFWLVPHDQWWRHQFDSVXODWH',&¶VFRPPLWPHQWRSHUDWLQJLQDQXQSUHGLFWDEOHHUDDQGDUDSLGO\HYROYLQJHQYLURQPHQWWRDGDSWLQJÀH[LEO\WRchange by having the optimal combination of human resources with digital capabilities in the right places, thereby ensuring it remains innovative, agile and
HIIHFWLYH8QWLOQRZ,KDYHHPSKDVL]HGLPSURYLQJWKHHI¿FLHQF\RIP\RZQZRUNYLHZLQJGLJLWDOL]DWLRQDVPHUHO\WKHDXWRPDWLRQRIPDQXDOWDVNV+RZHYHUDV
WKHSHUVRQLQFKDUJHRISXUFKDVLQJXQGHUWKLVSURMHFW,KDYHKDGWREURDGHQP\IRFXVWRLQFOXGHDVNLQJTXHVWLRQVVXFKDV³,VWKLVWDVNQHFHVVDU\LQWKH¿UVW
place?”, “What is the relevance of this particular business process?” or “Can we do this the same way overseas?”
Going forward, we will continue working to achieve dramatic improvements in the productivity of individual employees, departments/divisions, companies andthe DIC Group as a whole. We will do this by promoting reforms from the perspective of overall optimization, rather than simply seeking to digitalize existing
practices and business processes.
CONNECTUS Project, Information Systems Department

Miyuki Tajima,Q¿VFDO\HDUWKH:65SURMHFWZDVJLYHQFRPPLWWHHVWDWXVDQGUHQDPHGWKH:65&RPPLWWHHWRHQVXUHUHIRUPVLQWKHVH
three categories are implemented successfully across the entire Group. The committee not only gauges the effectiveness of measures but also
discusses the existence of other related issues that need to be addressed or measures that should be implemented, and includes DIC’s President
DQG&(2.DRUX,QRDVZHOODVGHVLJQDWHGH[HFXWLYHRI¿FHUVWRHQVXUHLQLWLDWLYHVDLPWRLPSURYHMREVDWLVIDFWLRQDQGSURGXFWLYLW\*URXSZLGHDIC Report 2022

53

A Message from the Head of the ESG Unit

We involve all employees in the promotionof sustainability initiatives.

Kuniko Torayama([HFXWLYH2IÀFHU
Head of ESG Unit, In Charge of Diversity

Beginning in fiscal year 2022, the DIC Group has positioned the promotion of sustainability as a core management strategy, reiterating its
commitment to stepping up the implementation of sustainability initiatives in DIC Vision 2030. This plan sets forth two central goals: “Establish abusiness portfolio that contributes to sustainable prosperity for society” and “Help achieve sustainability for the global environment and for society.”
7KH*URXSKDVLGHQWL¿HGDQGZLOOFRQFHQWUDWHLWVDOORFDWLRQRIPDQDJHPHQWUHVRXUFHVLQ¿YHSULRULW\EXVLQHVVLQZKLFKLWZLOOOHYHUDJHLWVFRPSHWLWLYH
strengths to help realize a society that is green, digital and QOL-oriented.

The DIC Group’s Sustainability Program
DIC Vision 2030 also calls for DIC to mature as a unique global company that is trusted by society by reinforcing management of its human capital
WRERRVWWKHYDOXHWKHUHRIUHFRJQL]LQJLWVHPSOR\HHVDVLWVPRVWLPSRUWDQWUHVRXUFH/RRNLQJDKHDGZHZLOOVHWFOHDUWDUJHWVIRU¿VFDO\HDU
for both environmental and social sustainability. I look forward to the ESG Unit, of which I am in charge, working with the Corporate Strategy Unit todrive sustainability strategies forward in tandem with business strategies. The scale of sustainability initiatives is much greater than in the past, as isenthusiasm for their implementation. We will continue seeking to improve the effectiveness of our efforts by taking on board key social imperatives
and involving all DIC Group employees.

Advancing Diversity
The basic policy of DIC Vision 2030 is “Safely delivering Color & Comfort for sustainable prosperity to enhance shareholder value and longterm corporate value.” One result of this new policy is that employees have become more aware of the pursuit of social value as an issue
that affects them and have come to have clear expectations regarding the outcome of sincere efforts. Accordingly, with a keen awareness ofdiversity, at corporate headquarters we are enhancing human capital by supporting employee growth, as well as shifting to work styles that are
PRUHÀH[LEOHDQGVXLWHGWRLQGLYLGXDOQHHGV0HDVXUHVVXFKDVWKHVHVSHDUKHDGHGE\WKH:RUN6W\OH5HYROXWLRQ :65 &RPPLWWHHZLOO
also help drive further innovation, which will in turn enable us to contribute to the resolution of social imperatives, thereby creating a continuous
cycle of positive outcomes.

The Growing Importance of Sustainability Strategies
As already mentioned, one of the two central goals of DIC Vision 2030 is to help achieve sustainability for the global environment and for society.
One way we are attempting to achieve this goal is by working to increase the percentage of products in our portfolio that qualify as sustainable toE\¿VFDO\HDU )RUPRUHLQIRUPDWLRQSOHDVHVHHSDJH ,Q¿VFDO\HDUVXVWDLQDEOHSURGXFWVDFFRXQWHGIRURIRXUSRUWIROLR
so our target is still a ways off. At the same time, while this target is easy enough to say, in reality it will involve realizing sustainable alternatives to
products in areas ranging from those that support modern lifestyles to those that address new demand spurred by evolution of communications andinformation processing technologies and respond to the need for safety and peace of mind of people with diverse values. By steadily implementing
plans formulated in collaboration with employees at our bases in the Americas and Europe, as well as in Asia, we will continue striving to achieve our
60% target and to support a sustainable society.
5HJDUGLQJWKHXUJHQWFKDOOHQJHRIDGGUHVVLQJFOLPDWHFKDQJHZHKDYHVHWDQDPELWLRXVWDUJHWIRUUHGXFLQJ&22 emissions by 50% from the¿VFDO\HDUOHYHOE\¿VFDO\HDU:HDUHSURPRWLQJYDULRXVUHODWHGLQLWLDWLYHVLQFOXGLQJVKLIWLQJWRJUHHQSRZHUDQGUHYLHZLQJSURGXFWLRQSURFHVVHVUHFRJQL]LQJWKDWDFKLHYLQJDUHGXFWLRQZLOOUHTXLUHLQJHQXLW\DQGOHYHUDJLQJRXUSRVLWLRQDVDPDQXIDFWXUHURI¿QHFKHPLFDOV,Q
DGGLWLRQZHDUHSURPRWLQJHIIRUWVWRKHOSUHDOL]HDFLUFXODUHFRQRP\:HDFNQRZOHGJHWKDWWKHUHDUHVLJQL¿FDQWGLIIHUHQFHVLQHIIRUWVEHLQJSXUVXHG

DIC Report 2022

54

A Message from the Head of the ESG Unit

between Europe, which is engaged in a variety of cutting-edge initiatives, and otherregions. We believe that social infrastructure is essential to the achievement of thetargets that we have set. DIC Group companies around the world will continue tolearn from the examples set by regions pursuing advanced initiatives to steadily
expand our efforts.
)LQDOO\ZHZLOOFRQWLQXHWRHPSKDVL]HGLVFORVXUH,Q'HFHPEHUZHKHOGD
SUHVHQWDWLRQWRLQWURGXFH*URXS(6*LQLWLDWLYHV7KLVUHDI¿UPHGRXUDZDUHQHVVRI
the value of opportunities to communicate directly with stakeholders to, for example,
introduce environment-friendly products developed and provided by the DIC Group.
Going forward, we will step up efforts to disseminate information and communicate
effectively with both internal and external audiences, including through regular
UHODWHGEULH¿QJVDIC Report 2022

55

Internal discussion regarding Casual DIC

Overview of Materiality:LWKWKHDLPRIHQVXULQJLWDFKLHYHVWKHWDUJHWVRILWV',&9LVLRQORQJWHUPPDQDJHPHQWSODQZKLFKNLFNVRIILQ¿VFDO\HDUWKH',&*URXSKDVRQFHDJDLQLGHQWL¿HGPDWHULDOLVVXHVWKDWLVLVVXHVZLWKWKHSRWHQWLDOWRVLJQL¿FDQWO\DIIHFWLWVSHUIRUPDQFH

Abstracting Material Issues and Identifying Priority Materiality Themes
7KH',&*URXSFRQGXFWHGLWV¿UVWPDWHULDOLW\DVVHVVPHQWLQ¿VFDO\HDU,Q¿VFDO\HDUWKH*URXSRQFHDJDLQDEVWUDFWHGPDWHULDOLVVXHVUHIHUHQFLQJ
*5,¶V*6XVWDLQDELOLW\5HSRUWLQJ*XLGHOLQHV²FRQVLGHUHGWKHJOREDOVWDQGDUG²DQGLWHPVZHLJKHGE\(6*DVVHVVPHQWRUJDQL]DWLRQVDQGDOVRFRQVLGHULQJLVVXHVGHOLQHDWHGLQ',&9LVLRQDQG7KH',&:D\DVZHOODVVRFLDOLPSHUDWLYHV%DVHGRQWKHUHVXOWVRIWKLVSURFHVVZKLFKDOVRLQYROYHVGLVFXVVLRQVZLWKREMHFWLYHRXWVLGHH[SHUWVDQGH[WHQVLYHGHOLEHUDWLRQVE\WKH6XVWDLQDELOLW\:RUNLQJ*URXSZKLFKLVUHVSRQVLEOHIRUWKHLPSOHPHQWDWLRQRIFRQFUHWHVWUDWHJLHVDQGWKH
6XVWDLQDELOLW\&RPPLWWHHZKLFKIXQFWLRQVDVDQDGYLVRU\ERG\UHJDUGLQJVXVWDLQDEOHPDQDJHPHQWWKH*URXSLGHQWL¿HGHLJKWPDWHULDOLVVXHV
Material issues

Principal related initiatives

0DWHULDOLVVXHV LVVXHVZLWKWKHSRWHQWLDOWRVLJQL¿FDQWO\DIIHFWWKH',&*URXS¶VSHUIRUPDQFH

1

7UDQVIRUPDWLRQWRDEXVLQHVVSRUWIROLRWKDWFRQWULEXWHVWRVXVWDLQDEOHSURVSHULW\IRUVRFLHW\

6KLIWWRDEXVLQHVVSRUWIROLRIRFXVHGRQ¿YHSULRULW\EXVLQHVVDUHDVWKDWGHOLYHUVRFLDOYDOXH VHWIRUWKLQ',&9LVLRQ E\DGYDQFLQJHIIRUWVWRUHLQIRUFHPDQDJHPHQWRIKXPDQFDSLWDOHVWDEOLVKDPRUH
JOREDOPDQDJHPHQWFRQILJXUDWLRQDQGSURPRWH,7DQG';²LGHQWLILHGDVPDWHULDOLVVXHV²DQGE\HQKDQFLQJWKHWHFKQRORJ\SODWIRUPDQGPDNLQJVWUDWHJLFLQYHVWPHQWV2&RQWULEXWLRQWRWKHUHDOL]DWLRQRIDFDUERQQHXWUDOVRFLHW\:RUNWRUHGXFH&2HPLVVLRQVLQ6FRSHDQG SXUFKDVHRIUDZPDWHULDOVHWF DQGWRORZHUFDUERQIRRWSULQWXVHWKH',&6XVWDLQDELOLW\,QGH[WRSURPRWH&2HPLVVLRQVUHGXFWLRQVLQWKHPDUNHWDQGSURYLGHSURGXFWVDQGVHUYLFHVWKDWFRQWULEXWHWRGHFDUERQL]DWLRQ3&UHDWLRQRIQHZEXVLQHVVHVZLWKWKHSRWHQWLDOWREHFRPHPDLQVWD\V,GHQWLI\DUHDVDWWKHLQWHUVHFWLRQRI(6+UHODWHGLVVXHVVRFLDOFKDQJHVDQGWKH',&*URXS¶VFRUH
FRPSHWHQFLHVDQGIRVWHUQHZEXVLQHVVHVZLWKWKHSRWHQWLDOWREHFRPHPDLQVWD\VE\HQKDQFLQJWKH
WHFKQRORJ\SODWIRUPDQGPDNLQJVWUDWHJLFLQYHVWPHQWV4

3URPRWLRQRIHIIRUWVWRPD[LPL]HWKHYDOXHRIKXPDQFDSLWDO%XLOG D VWUDWHJLF KXPDQ UHVRXUFHV SRUWIROLR WKDW PD[LPL]HV WKH YDOXH RI KXPDQ FDSLWDO WKURXJKPHGLXPWRORQJWHUPHIIRUWVWRIRVWHUKXPDQUHVRXUFHVHQVXUHPRELOLW\DQGLPSURYHHQJDJHPHQWDQG
RUJDQL]DWLRQDOFRKHVLYHQHVVDVZHOODVRQJRLQJEDVLFHIIRUWVWRSURPRWHGLYHUVLW\DQGLQFOXVLRQDQG
EROVWHUMREVDWLVIDFWLRQ5(VWDEOLVKPHQWRIDPRUHJOREDOPDQDJHPHQWFRQ¿JXUDWLRQ$GYDQFHJOREDOPDQDJHPHQWJRYHUQDQFHHIIRUWVWRIRVWHUDQGVWUHQJWKHQPDQDJHPHQWSHUVRQQHODQG
FUHDWHDJOREDO(53V\VWHP

6

3URPRWLRQRI';3URPRWHWUDQVIRUPDWLRQRIWKHFRUSRUDWHFXOWXUHDQGRUJDQL]DWLRQE\OHYHUDJLQJGLJLWDOWHFKQRORJLHVDQGGDWDWRLQQRYDWHEXVLQHVVSURFHVVHVZRUNVW\OHVDQGEXVLQHVVPRGHOV

7

5HVSRQVHWRDFLUFXODUHFRQRP\)RVWHUSURGXFWVWKDWFRQWULEXWHWRWKH5VKHOSUHGXFH&2HPLVVLRQVLQFDWHJRULHVDQGRI6FRSH
DQGDGYDQFHFKHPLFDODQGPDWHULDOUHF\FOLQJWKHUHE\FRQWULEXWLQJWRWKHUHDOL]DWLRQRIDFLUFXODUHFRQRP\

8

3URPRWLRQRIHIIRUWVWRHQVXUHWKHVWDEOHSURFXUHPHQWRIUDZPDWHULDOV

3URPRWHDZDUHQHVVRIWKHFXUUHQWVWDWXVRIYDULRXVUDZPDWHULDOVRIFRQFHUQ LHVXEMHFWWRFRXQWU\ULVNRUYDULRXVVXSSO\IDLOXUHULVNVRUIRUZKLFKWKHUHDUHLVVXHVUHJDUGLQJVXVWDLQDELOLW\LQFOXGLQJHQYLURQPHQWDOVRXQGQHVV 

Cornerstones of business continuity
1&RPSOLDQFH

2

6HFXULW\DQGGLVDVWHUSUHYHQWLRQRFFXSDWLRQDOVDIHW\DQGKHDOWK

34XDOLW\PDQDJHPHQW

45HVSHFWIRUKXPDQULJKWV',&*URXS0DQDJHPHQW,VVXHV5HFRJQL]HGLQWKH,GHQWLÀFDWLRQRI3ULRULW\0DWHULDOLW\7KHPHV
7KH',&*URXSKDVUHFRJQL]HGHDFKRIWKHIROORZLQJDVPDQDJHPHQWLVVXHVZLWKWKHSRWHQWLDOWRLPSDFWPDQDJHPHQWWKDWZLOOUHTXLUHFRQWLQXRXVHIIRUWVWRVWUHQJWKHQDGGUHVVWKURXJKLWVEXVLQHVVDFWLYLWLHV3URGXFWVWHZDUGVKLS UHGXFWLRQRIHQYLURQPHQWDOLPSDFW HPLVVLRQVLQWRDLUDQGZDWHU DELOLW\WRRSWLPL]HFDSLWDOHI¿FLHQF\VWUHQJWKHQLQJRISDUWQHUVKLSVFRPPXQLFDWLRQZLWKFXVWRPHUVDQGPDUNHWVEXVLQHVVFRQWLQXLW\ EXVLQHVVFRQWLQXLW\SODQQLQJ %&3 
SROLWLFDODQGJHRSROLWLFDOFKDQJH FRXQWU\ULVN LQIRUPDWLRQVHFXULW\LQWHOOHFWXDOSURSHUW\VWUDWHJLHVFRQWULEXWLRQWRORFDOFRPPXQLWLHVUHVSRQVHWRWD[UHODWHGULVNVUHVSRQVHWRSDQGHPLFVUHVSRQVHWRFXUUHQF\ÀXFWXDWLRQVDQGUHDOL]DWLRQRIFRORUIXODQGFRPIRUWDEOHOLIHVW\OHV7KH',&*URXSLGHQWL¿HGSURGXFWVWHZDUGVKLSDVDPDWHULDOLVVXHLQLWV¿VFDO\HDUPDWHULDOLW\DVVHVVPHQW+RZHYHUWKDQNVWRWKH*URXS¶VVWHDG\SURJUHVVLQWKHLPSOHPHQWDWLRQRIWKH*OREDO&KHPLFDO,QIRUPDWLRQ
3URMHFW *&,3 DQGWKHIXOOVFDOHGHSOR\PHQWRIWKH',&6XVWDLQDELOLW\,QGH[LWLVQRWDPRQJPDWHULDOLVVXHVLGHQWL¿HGLQ¿VFDO\HDU

)RUHDFKPDWHULDOLVVXHLGHQWLILHGLQILVFDO\HDUWKH',&*URXSKDVVHWNH\SHUIRUPDQFHLQGLFDWRUV .3,V DQGUHSRUWHGWKHSURJUHVVRIUHODWHG
LQLWLDWLYHV7KH*URXSZLOOFRQWLQXHZRUNLQJWRDGGUHVVPDWHULDOLVVXHVIURPDORQJWHUPSHUVSHFWLYHSRVLWLRQLQJLWWRGULYHWKHH[SDQVLRQRILWVEXVLQHVVHVZLWKWKHDLPRIDFKLHYLQJWKHWDUJHWVRI',&9LVLRQDQGHQVXULQJVXVWDLQDEOHJURZWKIXUWKHULQWRWKHIXWXUHDIC Report 2022

56

Sustainability Index

7KH',&6XVWDLQDELOLW\,QGH[LVDWRROGHVLJQHGWRPDNHLWVSURGXFWPL[PRUHUHVLOLHQW)URPWKHSHUVSHFWLYHRIEXLOGLQJDVXVWDLQDEOH
VRFLHW\',&ZLOOFODULI\WKHVXVWDLQDELOLW\RILWVLQNVSLJPHQWVDQGRWKHUSURGXFWVE\TXDQWLI\LQJVRFLDOFRQWULEXWLRQLVVXHV KRUL]RQWDOD[LV DQG
HQYLURQPHQWDOLPSDFW YHUWLFDOD[LV 0DSSLQJDOO',&*URXSSURGXFWVRQWKHLQGH[ZLOOPDNHLWSRVVLEOHWRIRUPXODWHDSSURSULDWHPHDVXUHVIRUWKHWUDQVIRUPDWLRQRILWVEXVLQHVVSRUWIROLRDQGDWDFHUWDLQVWDJH
HOXFLGDWH WKH UHVXOWV WKHUHRI7KH LQGH[ ZLOO IXUWKHU XQGHUSLQ WKH*URXS¶VHIIRUWVWRKHOSUHDOL]HDVXVWDLQDEOHVRFLHW\E\HQVXULQJLWPHHWVWKH',&9LVLRQWDUJHWRILQFUHDVLQJWKHSRUWLRQRIQHWVDOHVDFFRXQWHGIRUE\VXVWDLQDEOHSURGXFWVWRWKHUHE\HQVXULQJLWV
UHVLOLHQFHWRYDULRXVFKDQJHVLQWKHH[WHUQDOHQYLURQPHQWDIC Sustainability Index
All DIC Group products will be mapped on the index
Low

Environmental impact

Promoting Steady Business Portfolio Transformation

Commoditized products

Social contribution

Sustainableproducts

High

Comprehensive Efforts to Address the Critical Issue of Climate Change:KLOHDEURDGUDQJHRISURGXFWVKDYHHQKDQFHGWKHFRQYHQLHQFHDQGDIÀXHQFHRIPRGHUQOLYHVLWLVDOVRWUXHWKDWWKHSURGXFWLRQWKHUHRIQHJDWLYHO\LPSDFWVWKHJOREDOHQYLURQPHQW$SDUWLFXODUO\SUHVVLQJFRQFHUQLVFOLPDWHFKDQJH,WKDVEHFRPHLQFUHDVLQJO\REYLRXVWKDWWKHHDUWKZLOOQRWEHVXVWDLQDEOHXQOHVVGHFLVLYHVWHSVDUHWDNHQWRDFKLHYHDPELWLRXVWDUJHWV,QWKH',&*URXS¶VFDVHWKHVHDUHDUHGXFWLRQRI6FRSHDQG&2
HPLVVLRQVIURPWKH¿VFDO\HDUOHYHOE\¿VFDO\HDUDQGWKHDFKLHYHPHQWRIFDUERQQHXWUDOLW\²QHW]HUR&2HPLVVLRQV²E\¿VFDO\HDU
7KH',&6XVWDLQDELOLW\,QGH[H[SUHVVHVWKHJUHHQKRXVHJDVHVJHQHUDWHGLQWKHPDQXIDFWXULQJSURFHVVDVHPLVVLRQVSHUXQLWRISURGXFWLRQPHDVXUHG
DVHPLVVLRQVRI&2SHUWRQQHLQNLORJUDPV2QHWUHQGWKDWEHFDPHDSSDUHQWWKURXJKPDSSLQJLVWKDWHPLVVLRQVSHUXQLWRISURGXFWLRQDUHJHQHUDOO\KLJKHUIRULWHPVWKDWUHTXLUHDVLJQL¿FDQWDPRXQWRIHQHUJ\GXULQJSURGXFWLRQVXFKDVSLJPHQWVWKDQIRUWKRVHWKDWXVHUHODWLYHO\OLWWOHHQHUJ\GXULQJSURGXFWLRQVXFKDVLQNV7KLVSURFHVVDOVRUHYHDOHGWKDWWKHUHFDQEHVLJQL¿FDQWGLIIHUHQFHVLQUHVXOWVIRUSURGXFWVGHSHQGLQJRQSURGXFWLRQIDFLOLW\)RUDSDUWLFXODUW\SHRISLJPHQWIRUH[DPSOHWKHGLIIHUHQFHIURPRQHSODQWWRDQRWKHUZDVDVPXFKDVWLPHV6RHYHQLIDSURGXFWLVPDQXIDFWXUHGXVLQJWKHVDPHSURFHVV²LQRWKHUZRUGVWKHVDPHDPRXQWRIHQHUJ\²DVDWDQRWKHUSURGXFWLRQIDFLOLW\HPLVVLRQVSHUXQLWRISURGXFWLRQFDQEHORZHUHGE\LQFUHDVLQJWKHXVHRIHQHUJ\ZLWKORZHUJUHHQKRXVHJDVHPLVVLRQVVXFKDVUHQHZDEOHHQHUJ\7DNLQJLQWRDFFRXQWYDULRXVLVVXHVLQFOXGLQJWKHDYDLODELOLW\RIHQHUJ\ZLWKORZJUHHQKRXVHJDVHPLVVLRQVUHJLRQDOGLIIHUHQFHVLQDFFHVVWRVXFKHQHUJ\DQGWKHUHORFDWLRQDQGFRQVROLGDWLRQRISURGXFWLRQIDFLOLWLHVWKH',&*URXSVHWDPELWLRXVUHGXFWLRQWDUJHWVDQGZLOOSURPRWHFRPSUHKHQVLYHHIIRUWVWRHQVXUHWKHLUDFKLHYHPHQW

Focus on Products that Demonstrate Unique Competitive Strengths+RZPXFKGRHVDSURGXFWFRQWULEXWHWRVRFLHW\"7KHKRUL]RQWDOD[LVRIWKH',&6XVWDLQDELOLW\,QGH[PDNHVLWSRVVLEOHWRMXGJHDSURGXFW¶VFRQWULEXWLRQWRVRFLHW\E\GHWHUPLQLQJZKHWKHULWLVDGLVWLQFWLYHO\',&RIIHULQJRUGHPRQVWUDWHVWKH*URXS¶VFRPSHWLWLYHVWUHQJWKV7KH',&*URXSEHOLHYHVWKDWDOO
RIWKHSURGXFWVLWSURYLGHVDURXQGWKHZRUOGFRQWULEXWHWRVRFLHW\LQVRPHZD\,QVRPHLQVWDQFHVKRZHYHUWKHDYDLODELOLW\RIRWKHUVLPLODUSURGXFWVLQHYLWDEO\OLPLWVWKHYDOXH²LQFOXGLQJWKHGHJUHHRILWVVRFLDOFRQWULEXWLRQDQGWKHVWDELOLW\DQGVXVWDLQDELOLW\RIVXSSOLHV²GHOLYHUHGE\WKH*URXS¶VRIIHULQJV$VDPDQXIDFWXUHURI¿QHFKHPLFDOVWKH*URXSEHOLHYHWKDWLWFDQFRQWULEXWHWRDPRUHVXVWDLQDEOHVRFLHW\E\IRFXVLQJRQSURGXFWVWKDWGHPRQVWUDWHLWVXQLTXHFRPSHWLWLYHVWUHQJWKVDQGE\IXUWKHUHQKDQFLQJVXFKVWUHQJWKVDQGKDVWKXVUHODWHGWDUJHWVXQGHU',&9LVLRQ
0RGHUQOLIHSUHVHQWVDQXPEHURIFRPSOH[GLOHPPDV&OLPDWHFKDQJHLVDQH[LVWHQWLDOWKUHDWWKDWUHTXLUHVXUJHQWDFWLRQEXWLQRXUHIIRUWWRFXUEFOLPDWHFKDQJHZHFDQQRWVXVSHQGDFWLYLWLHVHVVHQWLDOWRKXPDQKHDOWKDQGJOREDOFLYLOL]DWLRQ7KH',&*URXSEHOLHYHVWKDWLWLVEHVWSRVLWLRQHGWRGHPRQVWUDWHLWVFRPSHWLWLYHVWUHQJWKVLQDUHDVWKDWZLOOPDNHVRFLHW\PRUHJUHHQGLJLWDODQG42/RULHQWHG²LQRWKHUZRUGVDUHDVWKDWKHOSDGGUHVVFOLPDWHFKDQJHPDNHWHFKQRORJLFDOSURJUHVVPRUHDFFHVVLEOHDQGVXSSRUWKHDOWKDQGVDIHW\7KHVHDUHWKHDUHDVLQZKLFKWKH*UXSFDQWUXO\OHYHUDJHLWVXQLTXHFDSDELOLWLHVDQGPDNHLPSRUWDQWFRQWULEXWLRQVWRWKHUHVROXWLRQRIVRFLDOLPSHUDWLYHV
7KH',&*URXS¶VVXVWDLQDEOHSURGXFWVFRQWULEXWHWRVRFLHW\LQPXOWLSOHRYHUODSSLQJZD\VEXWLQDJHQHUDOVHQVHWKH\HQKDQFH42/7KHVHLQFOXGHSURGXFWVWKDWLPSURYHWKHKHDWVKLHOGLQJDQGLQVXODWLQJSHUIRUPDQFHRIVWUXFWXUHVZLOOLQFUHDVHDFFHVVLELOLW\WRKHDOWK\OLYLQJHQYLURQPHQWVZKLOHDWWKH
VDPHWLPHKHOSLQJUHGXFHJUHHQKRXVHJDVHPLVVLRQV DQGSURGXFWVWKDWKHOSHQVXUHVDIHW\DQGDYDLODELOLW\RIZDWHU²IRUH[DPSOH336FRPSRXQGV
XVHGLQSXEOLFZDWHUVXSSO\SLSHVXQVDWXUDWHGSRO\HVWHUUHVLQXVHGLQWKHUHSDLUDQGPDLQWHQDQFHRIXQGHUJURXQGSLSHVDQGKROORZ¿EHUPHPEUDQHV
XVHGWR¿OWHUZDWHUDQGH[WHQGWKHOLIHRILQGXVWULDOHTXLSPHQW²VXSSRUWGDLO\OLIH*RLQJIRUZDUGWKH*URXSZLOOFRQWLQXHZRUNLQJWRSURYLGHGLVWLQFWLYHO\',&SURGXFWVWKDWDUHERWKVXVWDLQDEOHDQGFRQWULEXWHWRWKHUHDOL]DWLRQRIDVXVWDLQDEOHVRFLHW\

DIC Report 2022

57

Sustainability Index

The society to which DIC seeks to contributeGreenz Achieve carbon neutralityz Realize a circular economy

Digitalz Propel the evolution of information and communicationsz Drive the evolution of CASE vehicles and MaaSz Promote the development of AI and IoT technologies

QOL
z Deliver safety, peace of mind and conveniencez Prolong healthy life expectancyz Embrace diverse values

Value provided
by DIC products

Sustainable product examples

z Contain renewable materials
z Lower energy use, improve
insulation and reduce weightz Address the issue of marine
plastics
z Can be recycled
z Reduce wastez Prolong product life

Sustainableenergy嵣 Materials for next-generation secondary
batteries and fuel cells
嵣 Functional inorganic fillers

Sustainable
packaging嵣 Materials with outstanding barrier properties
嵣 Biomass packaging

Color science嵣 Biomass pigments
嵣 Functional pigments for heat-blocking coatings

Smart living

嵣 Materials for 5G/6G-enabled devices
嵣 Resins for next-generation semiconductors

Color science嵣Functional pigments for LiDAR signal coatings

Healthcare

嵣 High-performance nutritional products嵣 Natural skin-care materials

Color science嵣 Natural colorants for cosmetics

z Contribute to high-capacity,
high-speed communicationsz Support the IoTz Contribute to health and comfort
z Help reduce food lossz Reduce emissions of VOCs andenhance safety

DIC Report 2022

58

Corporate Governance
Basic Approach to Corporate Governance
7KH',&*URXSGH¿QHVFRUSRUDWHJRYHUQDQFHDVDPHFKDQLVPWRHQVXUHHIIHFWLYHGHFLVLRQPDNLQJSHUWDLQLQJWRLWVPDQDJHPHQWSROLF\RIDFKLHYLQJVXVWDLQDEOHFRUSRUDWHJURZWKDQGH[SDQVLRQWKURXJKVRXQGDQGHI¿FLHQWPDQDJHPHQWZKLOHDWWKHVDPHWLPHJXDUDQWHHLQJWKHDSSURSULDWHPRQLWRULQJDQGDVVHVVPHQWRIDQGPRWLYDWLRQIRUPDQDJHPHQW¶VH[HFXWLRQRIEXVLQHVVDFWLYLWLHV:LWKWKHDLPRIDFKLHYLQJDKLJKHUOHYHORIWUXVWZLWKLWVVKDUHKROGHUVFXVWRPHUVDQGRWKHUVWDNHKROGHUVDQGHQKDQFLQJFRUSRUDWHYDOXHWKH*URXSDOVRSURPRWHVRQJRLQJPHDVXUHVWRUHLQIRUFHLWVPDQDJHPHQWV\VWHPDQGHQVXUHHIIHFWLYHPRQLWRULQJWKHUHRI| Policy on Corporate Governance',&KDVSUHSDUHGD3ROLF\RQ&RUSRUDWH*RYHUQDQFHZKLFKLWKDVSXEOLVKHGRQLWVJOREDOZHEVLWH
3ROLF\RQ&RUSRUDWH*RYHUQDQFH WEB https://www.dic-global.com/pdf/ir/management/governance/governance_en.pdf| Corporate Governance System$VDFRPSDQ\ZLWKLQWHUQDODXGLWRUV',&KDVD%RDUGRI'LUHFWRUVDQGDQ$XGLW 6XSHUYLVRU\%RDUG7KH&RPSDQ\KDVDOVRLQVWLWXWHGDQH[HFXWLYH
RI¿FHUV\VWHPDQGKDVHVWDEOLVKHGD1RPLQDWLRQ&RPPLWWHH5HPXQHUDWLRQ&RPPLWWHH([HFXWLYH&RPPLWWHH6XVWDLQDELOLW\&RPPLWWHH4XDOLW\&RPPLWWHHDQG:RUN6W\OH5HYROXWLRQ :65 &RPPLWWHH

Corporate Governance System
General Meeting of Shareholders
Appointment

Appointment

Board of Directors

Audit

Appointment

Audit & Supervisory Board

Nomination Committee
Remuneration Committee

Cooperation

Audit

Accounting auditors
Accounting audit【Execution of business】
President and CEO
Sustainability Committee
Quality Committee
WSR 2020 Committee

Cooperation

Business groups, New Business Development Headquarters,
Production Management Unit, Technical Management Unit,
R&D Management Unit, headquartersʼ administrative units, sites,
Group companies

1

Cooperation

Executive Committee

Internal Control Department
Internal audit Responsible Care Department
Quality Assurance Department

Board of Directors)URPWKHSHUVSHFWLYHRIPDNLQJEXVLQHVVGHFLVLRQVLQDWLPHO\PDQQHUDQGUHLQIRUFLQJFRUSRUDWHJRYHUQDQFHWKH%RDUGRI'LUHFWRUVFRQVLVWVRIQLQHGLUHFWRUVWKUHHRIZKRPDUHRXWVLGHGLUHFWRUV RQHRIZKRPLVIHPDOH 7KH%RDUGW\SLFDOO\PHHWVRQFHPRQWKO\WRPDNHGHFLVLRQVRQPDWWHUVVWDWHGLQWKHUHJXODWLRQVIRUPHHWLQJVRIWKH%RDUGRI'LUHFWRUVDVZHOODVWRUHFHLYHVWDWXVUHSRUWVRQWKHH[HFXWLRQRIEXVLQHVVDFWLYLWLHVDQGVXSHUYLVHWKHH[HFXWLRQRIEXVLQHVV
2Nomination Committee

7RHQVXUHREMHFWLYLW\LQWKHQRPLQDWLRQRIGLUHFWRUV$XGLW 6XSHUYLVRU\%RDUGPHPEHUVDQGH[HFXWLYHRI¿FHUVWKH&RPSDQ\KDVHVWDEOLVKHGWKH
1RPLQDWLRQ&RPPLWWHHZKLFKSURYLGHVUHFRPPHQGDWLRQVWRWKH%RDUGRI'LUHFWRUVUHJDUGLQJWKHDSSRLQWPHQWDQGGLVPLVVDORIGLUHFWRUV$XGLW 
6XSHUYLVRU\%RDUGPHPEHUVDQGH[HFXWLYHRI¿FHUV7KHFRPPLWWHHPHHWVDVQHFHVVDU\$WSUHVHQWWKUHHRIWKHFRPPLWWHH¶V¿YHPHPEHUVDUH
LQGHSHQGHQWRXWVLGHGLUHFWRUVZKLOHWKHSRVLWLRQRIFRPPLWWHHFKDLUPDQLVDOVR¿OOHGE\DQLQGHSHQGHQWRXWVLGHGLUHFWRUDIC Report 2022

59

Corporate Governance3

Remuneration Committee

7RHQVXUHREMHFWLYLW\LQWKHGHWHUPLQDWLRQRIUHPXQHUDWLRQIRUGLUHFWRUV$XGLW 6XSHUYLVRU\%RDUGPHPEHUVDQGH[HFXWLYHRI¿FHUVWKH&RPSDQ\KDVHVWDEOLVKHG
WKH5HPXQHUDWLRQ&RPPLWWHHZKLFKKDVEHHQHQWUXVWHGZLWKUHVSRQVLELOLW\IRUGHWHUPLQLQJUHPXQHUDWLRQIRUGLUHFWRUVDQGH[HFXWLYHRI¿FHUVDPRQJRWKHUV7KH
FRPPLWWHHPHHWVDVQHFHVVDU\$WSUHVHQWWKUHHRIWKHFRPPLWWHH¶V¿YHPHPEHUVDUHLQGHSHQGHQWRXWVLGHGLUHFWRUVZKLOHWKHSRVLWLRQRIFRPPLWWHHFKDLUPDQLVDOVR¿OOHGE\DQLQGHSHQGHQWRXWVLGHGLUHFWRU
4

Executive Committee

7KH([HFXWLYH&RPPLWWHHZDVHVWDEOLVKHGDVDERG\WRDGYLVHRQLPSRUWDQWPDWWHUVUHODWHGWRWKHH[HFXWLRQRIEXVLQHVVDFWLYLWLHV,QSULQFLSOHWKHFRPPLWWHHPHHWVWZLFHPRQWKO\7KHFRPPLWWHHFRQVLVWVRIH[HFXWLYHRI¿FHUVDQGRWKHUVGHVLJQDWHGE\WKH%RDUGRI'LUHFWRUVIURPDPRQJWKHSUHVLGHQWDQG&(2WKHH[HFXWLYHYLFH
SUHVLGHQWWKHKHDGVRIWKHXQLWVDQGWKHJHQHUDOPDQDJHUVRIWKHPDQDJHPHQWXQLWVDQGSURGXFWGLYLVLRQV$VSDUWRIWKHDXGLWLQJSURFHVVRQH$XGLW 6XSHUYLVRU\%RDUGPHPEHUDOVRDWWHQGVFRPPLWWHHPHHWLQJV'HWDLOVRIGHOLEHUDWLRQVDWPHHWLQJVDQGWKHUHVXOWVWKHUHRIDUHUHSRUWHGWRWKH%RDUGRI'LUHFWRUV
5

Sustainability Committee

7KH6XVWDLQDELOLW\&RPPLWWHHZKLFKIXQFWLRQVDVDQDGYLVRU\ERG\PHHWVVHYHUDOWLPHVDQQXDOO\WRIRUPXODWHVXVWDLQDELOLW\SROLFLHVDQGDFWLYLW\SODQVDVZHOODVWRHYDOXDWHDQGSURPRWHLQLWLDWLYHV7KHFRPPLWWHHFRQVLVWVRIH[HFXWLYHRI¿FHUVDQGRWKHUVGHVLJQDWHGE\WKH%RDUGRI'LUHFWRUVIURPDPRQJWKHSUHVLGHQWDQG&(2
WKHH[HFXWLYHYLFHSUHVLGHQWWKHKHDGVRIWKHXQLWVWKHJHQHUDOPDQDJHUVRIWKHPDQDJHPHQWXQLWVDQGSURGXFWGLYLVLRQVDQGWKHPDQDJLQJGLUHFWRUVRIUHJLRQDOKHDGTXDUWHUV$VSDUWRIWKHDXGLWLQJSURFHVVRQH$XGLW 6XSHUYLVRU\%RDUGPHPEHUDOVRDWWHQGVFRPPLWWHHPHHWLQJV'HWDLOVRIGHOLEHUDWLRQVDWPHHWLQJVDQGWKHUHVXOWVWKHUHRIDUHUHSRUWHGWRWKH%RDUGRI'LUHFWRUV
6

Quality Committee

7KH4XDOLW\&RPPLWWHHUHSRUWVRQWKHVWDWXVRI',&*URXSTXDOLW\PDQDJHPHQWDQGWKHSURJUHVVRIUHODWHGLQLWLDWLYHVDVZHOODVGHOLEHUDWHV*URXSTXDOLW\SROLFLHVLPSRUWDQWPHDVXUHVDQGNH\LVVXHV,QSULQFLSOHWKHFRPPLWWHHPHHWVRQFHTXDUWHUO\WRUHSRUWRQWKHVWDWXVDQGSURJUHVVRITXDOLW\PDQDJHPHQW7KHFRPPLWWHH
FRQVLVWVRIH[HFXWLYHRI¿FHUVDQGRWKHUVGHVLJQDWHGE\WKH%RDUGRI'LUHFWRUVIURPDPRQJWKHSUHVLGHQWDQG&(2WKHH[HFXWLYHYLFHSUHVLGHQWWKHKHDGVRIWKH
XQLWVDQGWKHJHQHUDOPDQDJHUVRIWKHPDQDJHPHQWXQLWVDQGSURGXFWGLYLVLRQV$VSDUWRIWKHDXGLWLQJSURFHVVRQH$XGLW 6XSHUYLVRU\%RDUGPHPEHUDOVRDWWHQGVFRPPLWWHHPHHWLQJV'HWDLOVRIGHOLEHUDWLRQVDWPHHWLQJVDQGWKHUHVXOWVWKHUHRIDUHUHSRUWHGWRWKH%RDUGRI'LUHFWRUV7

WSR 2020 Committee

7KH:RUN6W\OH5HYROXWLRQ :65 &RPPLWWHHZDVHVWDEOLVKHGDVDERG\WRGHOLEHUDWHZRUNVW\OHUHIRUP±UHODWHGPHDVXUHVDQGLQYHVWPHQWSODQVDPRQJRWKHUVZLWKWKHDLPRIHQKDQFLQJ*URXSHPSOR\HHMREVDWLVIDFWLRQDQGSURGXFWLYLW\,QSULQFLSOHWKHFRPPLWWHHPHHWVRQFHTXDUWHUO\7KHFRPPLWWHHFRQVLVWVRIH[HFXWLYH
RI¿FHUVDQGRWKHUVGHVLJQDWHGE\WKH%RDUGRI'LUHFWRUVIURPDPRQJWKHSUHVLGHQWDQG&(2WKHH[HFXWLYHYLFHSUHVLGHQWWKHKHDGVRIWKHXQLWVDQGWKHJHQHUDOPDQDJHUVRIWKHPDQDJHPHQWXQLWVDQGSURGXFWGLYLVLRQV'HWDLOVRIGHOLEHUDWLRQVDWPHHWLQJVUHJDUGLQJPDWWHUVRISDUWLFXODULPSRUWDQFHDQGWKHUHVXOWVWKHUHRIDUHUHSRUWHGWRWKH%RDUGRI'LUHFWRUV
8

Audit & Supervisory Board

7KH$XGLW 6XSHUYLVRU\%RDUGFRPSULVHVIRXUPHPEHUVLQFOXGLQJWZRRXWVLGHPHPEHUV RQHRIZKRPLVIHPDOH ,QSULQFLSOHWKH$XGLW 6XSHUYLVRU\%RDUGPHHWVRQFH
PRQWKO\%RDUGDFWLYLWLHVLQFOXGHGHEDWLQJDQGGHWHUPLQLQJDXGLWLQJSROLFLHVDQGDXGLWLQJSODQV%RDUGPHPEHUVDOVRUHSRUWRQWKHUHVXOWVRIDXGLWVFRQGXFWHGDVZHOODV
DWWHQGLPSRUWDQWPHHWLQJVLQFOXGLQJWKRVHRIWKH%RDUGRI'LUHFWRUV([HFXWLYH&RPPLWWHHDQG6XVWDLQDELOLW\&RPPLWWHHPHHWZLWKUHSUHVHQWDWLYHGLUHFWRUVRQDSHULRGLFEDVLVWRH[FKDQJHLQIRUPDWLRQDQGRSLQLRQVDQGFROOHFWEXVLQHVVUHSRUWVIURPGLUHFWRUVH[HFXWLYHRI¿FHUVDQGHPSOR\HHV,QDGGLWLRQWKH&RPSDQ\KDVHVWDEOLVKHGDQ$XGLW 6XSHUYLVRU\%RDUG0HPEHUV¶2I¿FHWRZKLFKLWDVVLJQVGHGLFDWHGSHUVRQQHOWRDVVLVWWKH$XGLW 6XSHUYLVRU\%RDUGPHPEHUVLQWKHLUGXWLHV7KH&RPSDQ\¶VWKUHHIXOOWLPH$XGLW 6XSHUYLVRU\%RDUGPHPEHUVKDYHH[WHQVLYHH[SHULHQFHLQDQGNQRZOHGJHRI¿QDQFHDQGDFFRXQWLQJZKLFKWKH\DUHDEOHWROHYHUDJHLQWKHSHUIRUPDQFHRIWKHLUGXWLHV)XOOWLPH$XGLW 6XSHUYLVRU\%RDUGPHPEHU+LUR\XNL1LQRPL\DRYHUVDZFRUSRUDWHDFFRXQWVDWWKH&RPSDQ\IRUPDQ\\HDUVDQGZDVJHQHUDOPDQDJHURIWKH$FFRXQWLQJ'HSDUWPHQWDQG+HDGRIWKH)LQDQFHDQG$FFRXQWLQJ8QLW2XWVLGH$XGLW 6XSHUYLVRU\%RDUGPHPEHU0LFKLNR&KLEDLV
TXDOL¿HGDVDFHUWL¿HGSXEOLFDFFRXQWDQWDQGKDVHQJDJHGLQWKHDXGLWRIFRPSDQLHVIRUPDQ\\HDUV,QDGGLWLRQWRSURYLGLQJH[SHUWLVHLQFRUSRUDWHODZRXWVLGH$XGLW 
6XSHUYLVRU\%RDUGPHPEHU.HLWD1DJXUDSURYLGHVWD[DFFRXQWLQJVHUYLFHVSXUVXDQWWR$UWLFOHRIWKH&HUWL¿HG3XEOLF7D[$FFRXQWDQW$FW
9Internal Auditing Department

7KHLQWHUQDODXGLWLQJGHSDUWPHQWLVFKDUJHGZLWKLQWHUQDODXGLWLQJZKLFKLQFOXGHVPRQLWRULQJWKHHIIHFWLYHQHVVRILQWHUQDOFRQWUROV,QWKH$VLD±3DFL¿FUHJLRQWKH
35&DQGWKH$PHULFDVDQG(XURSHLQWHUQDODXGLWLQJLVWKHUHVSRQVLELOLW\RIORFDODXGLWLQJWHDPV
10 Accounting Auditors

7KH&RPSDQ\KDVHQJDJHG'HORLWWH7RXFKH7RKPDWVX//&DVLWVLQGHSHQGHQWDXGLWRUV7KH&RPSDQ\VWULYHVWRHQVXUHDQHQYLURQPHQWWKDWIDFLOLWDWHVWKHDFFXUDWH
GLVFORVXUHRILQIRUPDWLRQDQGIDLUDXGLWLQJ7KHPHPEHUVRIWKH$XGLW 6XSHUYLVRU\%RDUGDFFRXQWLQJDXGLWRUVDQGWKHLQWHUQDODXGLWLQJGHSDUWPHQWFRQGXFWDXGLWVIURPWKHLUUHVSHFWLYHLQGHSHQGHQWSRVLWLRQVEXWDOVROLDLVHSHULRGLFDOO\WRIDFLOLWDWHFORVHFRRSHUDWLRQWKHUHE\HQVXULQJWKHHIIHFWLYHQHVVRIDXGLWLQJDFWLYLWLHVDIC Report 2022

60

Corporate Governance

Meeting Data
1XPEHU RI DQG DWWHQGDQFH DW PHHWLQJV RI WKH %RDUG RI 'LUHFWRUV 1RPLQDWLRQ &RPPLWWHH DQG5HPXQHUDWLRQ&RPPLWWHHLQ¿VFDO\HDU%RDUGRI'LUHFWRUV1XPEHURIPHHWLQJVDWWHQGDQFH
1RPLQDWLRQ&RPPLWWHH1XPEHURIPHHWLQJVDWWHQGDQFH
5HPXQHUDWLRQ&RPPLWWHH1XPEHURIPHHWLQJVDWWHQGDQFH

| Rationale Behind Current Corporate Governance System
7KH&RPSDQ\KDVLQVWLWXWHGDQH[HFXWLYHRI¿FHUV\VWHPDPRYHDLPHGDWVHSDUDWLQJGHFLVLRQPDNLQJDQGLPSOHPHQWDWLRQDQGWKHUHE\DFFHOHUDWLQJ
EXVLQHVVH[HFXWLRQDQGFODULI\LQJUHVSRQVLELOLWLHV7KH&RPSDQ\KDVDSSRLQWHGWKUHHKLJKO\LQGHSHQGHQWRXWVLGHLQGLYLGXDOVWRLWV%RDUGRI'LUHFWRUV
DQGWDNHQRWKHUVWHSVWRUHLQIRUFHLWVPRQLWRULQJRIPDQDJHPHQW¶VEXVLQHVVH[HFXWLRQ7KH&RPSDQ\DOVRKDVD1RPLQDWLRQ&RPPLWWHHDQGD
5HPXQHUDWLRQ&RPPLWWHHHDFKRIZKLFKLQFOXGHVWKUHHLQGHSHQGHQWRXWVLGHGLUHFWRUVWRHQVXUHREMHFWLYLW\LQWKHQRPLQDWLRQRIDQGLQGHWHUPLQLQJUHPXQHUDWLRQIRUGLUHFWRUVDQGH[HFXWLYHRI¿FHUV7KHIRXUPHPEHU$XGLW 6XSHUYLVRU\%RDUGZKLFKLQFOXGHVRQHDWWRUQH\DQGRQHFHUWL¿HGSXEOLFDFFRXQWDQWDVRXWVLGHPHPEHUVFRQGXFWVDXGLWVLQOLDLVRQZLWKWKHDFFRXQWLQJDXGLWRUVDQGWKHLQWHUQDODXGLWLQJGHSDUWPHQW7KLVVWUXFWXUHHQVXUHVWKHHIIHFWLYHIXQFWLRQLQJRIWKH&RPSDQ\¶VFRUSRUDWHJRYHUQDQFHV\VWHP| System of Internal Controls
1

Status of the System of Internal Controls and the Establishment and Operation of a Framework for Risk Management,QVWULYLQJWRFRQGXFWLWVRSHUDWLRQVLQDFFRUGDQFHZLWK7KH',&:D\WKH',&*URXSKDVSUHSDUHGDQGRSHUDWHVDV\VWHPRILQWHUQDOFRQWUROVEDVHG
RQWKH&RPSDQLHV$FWRI-DSDQWRHQVXUHWKHDSSURSULDWHQHVVRILWVRSHUDWLRQV7KHNH\FRPSRQHQWVRIWKLVV\VWHPDUHDVIROORZV❶ The Company shall work to set forth the DIC Group Code of Business Conduct as the standard regarding compliance, which directors
and employees of the DIC Group shall comply with, and to disseminate the same.
❷ 7KH&RPSDQ\VKDOODVSDUWRILWVFRPSOLDQFHDFWLYLWLHVHVWDEOLVKDQLQWHUQDOQRWL¿FDWLRQV\VWHPDVDFKDQQHODYDLODEOHIRUWKHHPSOR\HHV
of the DIC Group, which has multiple notification channels independent from channels for communication used in the execution of
EXVLQHVVDQGSURYLGHVDVWUXFWXUHWRTXLFNO\UHVSRQGWRGRPHVWLFDQGLQWHUQDOQRWL¿FDWLRQV
❸ In order to ensure the duties of directors are performed properly and efficiently within the DIC Group, the Company shall establish
regulations regarding company organization and authority.
❹ The Company shall formulate long-term management plans and the annual budget based on management policies and management
strategies, and, through dissemination of the same, ensure common goals are shared within the DIC Group. The Company shall makeprogress reports to the Board of Directors.
❺ Information pertaining to the performance of duties by directors shall be recorded, retained and managed appropriately based on theregulations for document management. The Company shall establish regulations for systems of information management and shall
SUHSDUHDV\VWHPIRUSUHYHQWLQJOHDNDJHRIFRQ¿GHQWLDOLQIRUPDWLRQRIWKH',&*URXS❻ The Company shall formulate a risk management policy and shall identify, assess, prioritize and address any risks that may have a
VLJQL¿FDQWLPSDFWRQPDQDJHPHQWRIWKH',&*URXS❼ The Company shall determine an administrative department for each subsidiary from the standpoints of the conduct of business andbusiness management, and shall supervise business affairs by dispatching a director to each subsidiary.
❽ The Company shall clarify important matters, including those pertaining to subsidiaries, that must be approved by or reported to
the Company.
2

Basic Policy Toward Eliminating Demands by Antisocial Elements

7KLVEDVLFSROLF\ZKLFKLVRXWOLQHGLQWKH',&*URXS&RGHRI%XVLQHVV&RQGXFWLVWRVWDQGILUPO\DJDLQVWDQWLVRFLDOHOHPHQWVDQGLQQRZD\WRDFTXLHVFHWRGHPDQGVSUHVHQWHGE\VXFKHOHPHQWV7KH*HQHUDO$IIDLUVDQG+5'HSDUWPHQWLVUHVSRQVLEOHIRUFRRUGLQDWLQJHIIRUWVWRUHVSRQGWRH[WRUWLRQRURWKHUGHPDQGVSUHVHQWHGE\DQWLVRFLDOHOHPHQWVZKLOHLQGLYLGXDOVKDYHEHHQSXWLQFKDUJHRIHIIRUWVDWHDFKVLWHDQGZLWKLQHDFK*URXSFRPSDQ\7KHVHLQGLYLGXDOVZRUNLQFORVHFROODERUDWLRQZLWKOHJDOFRXQVHODQGWKHSROLFHWRHQVXUHWKH&RPSDQ\¶VUHVSRQVHVDUHUHVROXWH7KH
&RPSDQ\KDVDOVRSUHSDUHGDQGGLVWULEXWHGDPDQXDORQDSSURSULDWHUHVSRQVHVWRVXFKGHPDQGVZLWKWKHDLPRIUDLVLQJDZDUHQHVVDPRQJHPSOR\HHV

| Outside Directors and Outside Audit & Supervisory Board Members
1

Number and Role of Outside Directors and Outside Audit & Supervisory Board Members

7KH&RPSDQ\FXUUHQWO\KDVWKUHHRXWVLGHGLUHFWRUVDQGWZRRXWVLGH$XGLW 6XSHUYLVRU\%RDUGPHPEHUV,QDGGLWLRQWRDWWHQGLQJPHHWLQJVRIWKH
%RDUGRI'LUHFWRUVWKHWKUHHRXWVLGHGLUHFWRUV²ZKRKDYHH[WHQVLYHH[SHULHQFHLQFRUSRUDWHPDQDJHPHQW²VHUYHDVPHPEHUVRIWKH1RPLQDWLRQ&RPPLWWHHDQGWKH5HPXQHUDWLRQ&RPPLWWHHHQDEOLQJWKHPWRSURYLGHVXSHUYLVLRQZLWKDQLQGHSHQGHQWSRLQWRIYLHZWKHUHE\KHOSLQJWRUHLQIRUFH
WKH&RPSDQ\¶VFRUSRUDWHPDQDJHPHQW7KHWZR$XGLW 6XSHUYLVRU\%RDUGPHPEHUV²RQHDFHUWL¿HGSXEOLFDFFRXQWDQWDQGWKHRWKHUDQDWWRUQH\²
DGYLVHPDQDJHPHQWRIWKH',&*URXSIURPDQH[SHUWPXOWLIDFHWHGDQGLQGHSHQGHQWSHUVSHFWLYHWKHUHE\KHOSLQJWRUHLQIRUFHWKHDXGLWLQJIXQFWLRQDIC Report 2022

61

Corporate Governance2

Independence Standards for Outside Directors and Outside Audit & Supervisory Board Members

7KH&RPSDQ\KDVHVWDEOLVKHGVWDQGDUGVIRUHYDOXDWLQJWKHLQGHSHQGHQFHRILQGLYLGXDOVWRWKHSRVLWLRQRIRXWVLGHGLUHFWRUDQGRXWVLGH$XGLW 6XSHUYLVRU\%RDUGPHPEHUZKLFKDUHVKRZQEHORZ7KH&RPSDQ\¶VRXWVLGHGLUHFWRUVDQGRXWVLGH$XGLW 6XSHUYLVRU\%RDUGPHPEHUVDUHLQGLYLGXDOVZKREDVHGRQWKHVHVWDQGDUGVDUHXQOLNHO\WRKDYHFRQÀLFWVRILQWHUHVWZLWKRUGLQDU\VKDUHKROGHUVDQGZKRFRPSO\ZLWKFULWHULDIRUWKHLQGHSHQGHQFHRIGLUHFWRUVDQG$XGLW 6XSHUYLVRU\%RDUGPHPEHUVVHWE\WKH7RN\R6WRFN([FKDQJH,QGHSHQGHQFH6WDQGDUGVIRU2XWVLGH2IÀFHUV
7KH&RPSDQ\GRHVQRWUHFRJQL]HLQGLYLGXDOVZLWKWKHFRQQHFWLRQVOLVWHGEHORZDVEHLQJLQGHSHQGHQWLQWKHDSSRLQWPHQWRILQGHSHQGHQWRXWVLGHRI¿FHUV,QGLYLGXDOVZKRDUHH[HFXWLYHVRIWKH&RPSDQ\RURQHRILWVFRQVROLGDWHGVXEVLGLDULHV FROOHFWLYHO\WKH',&*URXS DWSUHVHQWRUKDYH
EHHQLQWKHSUHFHGLQJ\HDUV
,QGLYLGXDOVWRZKRPDQ\RIWKHIROORZLQJLWHPVKDYHDSSOLHGLQWKHSUHFHGLQJWKUHH\HDUV❶ $SULQFLSDOEXVLQHVVSDUWQHURIWKH',&*URXS DEXVLQHVVSDUWQHUZLWKZKLFKWUDQVDFWLRQVLQDVLQJOH¿VFDO\HDUH[FHHG
RIWKH',&*URXS¶VFRQVROLGDWHGQHWVDOHVLQWKDW\HDU RUDQH[HFXWLYHRIDFRPSDQ\WRZKLFKWKLVGHVFULSWLRQDSSOLHV❷ $QLQGLYLGXDOIRUZKLFKWKH',&*URXSLVDSULQFLSDOEXVLQHVVSDUWQHU DEXVLQHVVSDUWQHUZLWKZKLFKWUDQVDFWLRQVLQDVLQJOH
¿VFDO\HDUH[FHHGRIWKHSDUWQHUFRPSDQ\¶VFRQVROLGDWHGQHWVDOHVLQWKDW\HDU RUDQH[HFXWLYHRIDFRPSDQ\WRZKLFKWKLVGHVFULSWLRQDSSOLHV❸ $VKDUHKROGHUZKRKROGVRUPRUHRIWKHYRWLQJULJKWVLQWKH&RPSDQ\RUDQH[HFXWLYHRIDFRPSDQ\WRZKLFKWKLVGHVFULSWLRQDSSOLHV❹ $SULQFLSDOOHQGHUWRWKH',&*URXS DOHQGHUIURPZKLFKORDQVLQDVLQJOH¿VFDO\HDUH[FHHGRIWKH',&*URXS¶VWRWDODVVHWVLQWKDW\HDU RUDQH[HFXWLYHRIDFRPSDQ\WRZKLFKWKLVGHVFULSWLRQDSSOLHV❺ $QLQGLYLGXDOZKRKDVUHFHLYHGFRQWULEXWLRQVIURPWKH',&*URXSLQDVLQJOHILVFDO\HDUWKDWH[FHHGPLOOLRQRUZKREHORQJVWRDJURXSWRZKLFKWKLVGHVFULSWLRQDSSOLHV❻ $QDFFRXQWDQWZKRKDVVHUYHGDVDQDFFRXQWLQJDXGLWRURUDFFRXQWLQJDGYLVRUIRUWKH',&*URXSRUDQLQGLYLGXDOZKRLVDQHPSOR\HHSDUWQHURUDVVRFLDWHRIDQDXGLW¿UPWRZKLFKWKLVGHVFULSWLRQDSSOLHV❼ $Q\LQGLYLGXDOWRZKRP❻ GRHVQRWDSSO\EXWZKRKDVUHFHLYHGUHPXQHUDWLRQIURPWKH',&*URXSWKDWH[FHHGVPLOOLRQLQDVLQJOHILVFDO\HDUDVDSURYLGHURISURIHVVLRQDOVHUYLFHVVXFKDVFRQVXOWLQJDFFRXQWLQJRUOHJDOVHUYLFHVRUDQLQGLYLGXDOZKREHORQJVWRDJURXSWKDWKDVUHFHLYHGUHPXQHUDWLRQLQH[FHVVRIRILWVFRQVROLGDWHGQHWVDOHVLQWKDW\HDU
DVFRPSHQVDWLRQIRUSURIHVVLRQDOVHUYLFHVVXFKDVFRQVXOWLQJDFFRXQWLQJRUOHJDOVHUYLFHV❽ $QH[HFXWLYHRIDQRWKHUFRPSDQ\LQWKHHYHQWWKDWDQH[HFXWLYHRIWKH&RPSDQ\LVDSSRLQWHGWRDQRXWVLGHRI¿FHUSRVLWLRQDWWKDWFRPSDQ\6SRXVHVDQGUHODWLYHVZLWKLQWKHVHFRQGGHJUHHRINLQVKLSRILQGLYLGXDOVLQGLFDWHGLQRUDERYH
$QLQGLYLGXDOZKRVHWHUPDVDQRXWVLGHRI¿FHURIWKH&RPSDQ\KDVH[FHHGHGHLJKW\HDUV
3Support System for the Outside Directors and Outside Audit & Supervisory Board Members

3ULRUWRPHHWLQJVRIWKH%RDUGRI'LUHFWRUVUHOHYDQWPDWHULDOVDUHGLVWULEXWHGWRDOOGLUHFWRUVIXOOWLPH$XGLW 6XSHUYLVRU\%RDUGPHPEHUVRXWVLGHGLUHFWRUVDQGRXWVLGH$XGLW 6XSHUYLVRU\%RDUGPHPEHUV7KHRI¿FHULQFKDUJHSURYLGHVH[SODQDWLRQVRIPDWWHUVWREHGLVFXVVHGWRRXWVLGHGLUHFWRUVZKLOHWKHIXOOWLPH$XGLW 6XSHUYLVRU\%RDUGPHPEHUVSURYLGHH[SODQDWLRQVDVQHFHVVDU\WRRXWVLGH$XGLW 6XSHUYLVRU\%RDUGPHPEHUV| Other Initiatives to Enhance the Corporate Governance System
1

Composition of the Board of Directors

7RHQDEOHWKH%RDUGRI'LUHFWRUVWRUHVROYHPDMRURSHUDWLRQVUHODWHGLVVXHVDVZHOODVWRIDFLOLWDWHWKH
HIIHFWLYHRYHUVLJKWRIPDQDJHPHQWWKH%RDUGRI'LUHFWRUVFRPSULVHVRXWVLGHGLUHFWRUVZKRPDLQWDLQLQGHSHQGHQFHDQGRWKHULQGLYLGXDOVKDYLQJDWKRURXJKNQRZOHGJHRIWKHEXVLQHVVHVRIWKH',&*URXSZLWKFRQVLGHUDWLRQJLYHQWRHQVXULQJDEDODQFHDPRQJQHFHVVDU\NQRZOHGJHH[SHULHQFHDQG
FDSDELOLWLHV,QOLJKWRIWKH',&*URXS¶VJOREDORSHUDWLRQVDQGWKHQHHGWRPDQDJHLWVEXVLQHVVHVLQD
PDQQHUWKDWWDNHVGLYHUVLW\LQWRDFFRXQWWKH&RPSDQ\DOVRVWULYHVWRHQVXUHGLYHUVLW\LQWKH%RDUG¶VFRPSRVLWLRQLQFOXGLQJE\DSSRLQWLQJIHPDOHGLUHFWRUV2QHRXWVLGHGLUHFWRULVIHPDOHDVLVRQH
RXWVLGH$XGLW 6XSHUYLVRU\%RDUGPHPEHU
Composition of the Board of Directors,QKRXVH

2XWVLGH

7RWDO

3HUFHQWDJHRIRXWVLGH
PHPEHUV'LUHFWRUV

6

3

9

33.3%

$XGLW 6XSHUYLVRU\%RDUGPHPEHUV

2

2

4

50.0%

7RWDO

8

5

13

38.5%

DIC Report 2022

62

Composition of the Board of Directors
In-house
Outside

38.5%
61.5%

Corporate Governance

Skills Matrix for Directors and Audit & Supervisory Board Members
7R HQDEOH WKH %RDUG RI 'LUHFWRUV WR
UHVROYHPDMRURSHUDWLRQVUHODWHGLVVXHV
DV ZHOO DV WR IDFLOLWDWH WKH HIIHFWLYH
RYHUVLJKWRIPDQDJHPHQWWKH%RDUGRI
'LUHFWRUVFRPSULVHVLQGLYLGXDOVKDYLQJDWKRURXJKNQRZOHGJHRIWKHEXVLQHVVHV
RI WKH ',& *URXS ZLWK FRQVLGHUDWLRQJLYHQ WR HQVXULQJ D EDODQFH DPRQJQHFHVVDU\ NQRZOHGJH H[SHULHQFH
DQGFDSDELOLWLHV7KHWDEOHWRWKHULJKWLV D VNLOOV PDWUL[ VXPPDUL]LQJ WKHNQRZOHGJHH[SHULHQFHDQGFDSDELOLWLHVRI F XU UHQW GLUHF WRU V DQG $XGLW 
6XSHUYLVRU\%RDUGPHPEHUV

Expertise/Experience
Name

Position

Masayuki
Saito

Chairman of theBoard of Directors

●

●

Kaoru
Ino

Representative Director
President and CEO●●

Toshifumi
Tamaki

Representative Director
Executive Vice President●

Yoshihisa
Kawamura

Director●TakeshiAsai

Director
Managing Executive Ofﬁcer

●

●

Shuji
FurutaDirector
Managing Executive Ofﬁcer

●

●

Kazuo
Tsukahara

Outside Director●

YoshiakiTamuraOutside Director

●

●

●

●

●

KunikoShoji

Outside Director

●

●

●

●

●

Hiroyuki
Ninomiya

Audit & Supervisory
Board Member(Full-time)
Audit & Supervisory
Board Member(Full-time)
Audit & Supervisory
Board Member(Independent)
Audit & Supervisory
Board Member(Independent)

AkihiroIkushima
Michiko
Chiba
Keita
Nagura2

Corporate
Finance/
Legal affairs/ International
management asset building risk management experience

Sustainability

●
●

IT/DX

Personnel/
labor

●

●

●

●

●

●

●

●

●

●

●

●

Production/
quality●●●

Marketing/sales/ Technology/
purchasing
R&D

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●
●

Remuneration for Directors and Audit & Supervisory Board Members

5HPXQHUDWLRQIRUGLUHFWRUVLVGHWHUPLQHGE\WKH5HPXQHUDLWRQ&RPPLWWHHZKLFKWDNHVLQWRDFFRXQWSUHYDLOLQJPDUNHWUDWHVDQGFRQVLVWVRIEDVLFUHPXQHUDWLRQERQXVHVZKLFKDUHOLQNHGWRFRQVROLGDWHGRSHUDWLQJUHVXOWVDQGDFKLHYHPHQWRILQGLYLGXDOWDUJHWVDQG VWRFNFRPSHQVDWLRQZKLFKLVOLQNHGWRWKHPHGLXPWRORQJWHUPDFKLHYHPHQWRISHUIRUPDQFHWDUJHWV'LUHFWRUVZKRVHUYHFRQFXUUHQWO\DV
H[HFXWLYHRIILFHUVDUHHOLJLEOHIRUERQXVHVDQGVWRFNFRPSHQVDWLRQZKLOHRWKHUGLUHFWRUVDQGRXWVLGHGLUHFWRUVDUHHOLJLEOHIRUEDVLF
UHPXQHUDWLRQRQO\5HPXQHUDWLRQIRU$XGLW 6XSHUYLVRU\%RDUGPHPEHUVLVGHWHUPLQHGLQDFFRUGDQFHZLWKLQWHUQDOUXOHVHVWDEOLVKHGE\WKH
$XGLW 6XSHUYLVRU\%RDUGZLWKFRQVLGHUDWLRQJLYHQWRHQVXULQJDEDODQFHZLWKUHPXQHUDWLRQIRUGLUHFWRUVDQGSUHYDLOLQJPDUNHWUDWHVRemuneration for Directors and Audit & Supervisory Board Members in Fiscal Year 2021
7RWDOUHPXQHUDWLRQ
0LOOLRQVRI\HQ&RPSRVLWLRQRIUHPXQHUDWLRQ
0LOOLRQVRI\HQ%DVLF
6WRFN%RQXVHVFRPSHQVDWLRQ
UHPXQHUDWLRQ

1XPEHURIGLUHFWRUVDQG$XGLW 
6XSHUYLVRU\%RDUGPHPEHUV'LUHFWRUVH[FOXGLQJRXWVLGHGLUHFWRUV

290

206

68

16

7

$XGLW 6XSHUYLVRU\%RDUGPHPEHUVH[FOXGLQJRXWVLGH$XGLW 6XSHUYLVRU\%RDUGPHPEHUV

60

60

―

―

2

2XWVLGHRI¿FHUV

72

72

―

―

6

1RWHV
7KHDERYHGDWDLQFOXGHVWKDWIRURQHRXWVLGHGLUHFWRUDQGRQHRXWVLGH$XGLW 6XSHUYLVRU\%RDUGPHPEHUZKRUHWLUHGDWWKHFRQFOXVLRQRIWKHUG$QQXDO*HQHUDO0HHWLQJRI6KDUHKROGHUVKHOGRQ0DUFK
7KHWRWDODPRXQWRIVWRFNFRPSHQVDWLRQLVWKHWRWDOPRQHWDU\YDOXHRIVKDUHVFRUUHVSRQGLQJWRWKHSRLQWVJUDQWHGIRU¿VFDO\HDUEDVHGRQWKH&RPSDQ\¶VSHUIRUPDQFHEDVHGVWRFNFRPSHQVDWLRQSODQ

3

Evaluating the Effectiveness of the Board of Directors

7KH&RPSDQ\DQDO\]HVDQGHYDOXDWHVWKHHIIHFWLYHQHVVRIWKH%RDUGRI'LUHFWRUVDQQXDOO\YLDDVHOIHYDOXDWLRQFRQGXFWHGE\GLUHFWRUVDQG$XGLW 6XSHUYLVRU\%RDUG
PHPEHUV,Q¿VFDO\HDUDOOGLUHFWRUVDQG$XGLW 6XSHUYLVRU\%RDUGPHPEHUVZHUHVXUYH\HGUHJDUGLQJVHOIHYDOXDWLRQV%RDUGDGPLQLVWUDWLRQDQGRWKHULVVXHVDQGLQWHUYLHZHGRQDQLQGLYLGXDOEDVLVZLWKUHVSRQVHVDQDO\]HGDQGHYDOXDWHGE\WKH%RDUGRI'LUHFWRUV2ZLQJWRWKHDIRUHPHQWLRQHGHIIRUWVLWZDVFRQILUPHGWKDWIUHHDQGOLYHO\GLVFXVVLRQVKDGEHHQKHOGOHGE\RXWVLGHGLUHFWRUVDQG$XGLW 6XSHUYLVRU\%RDUG
PHPEHUVDQGWKDWDSSURSULDWHGHOLEHUDWLRQVKDGEHHQFRQGXFWHGE\WKH%RDUGRI'LUHFWRUV,QDGGLWLRQUHJDUGLQJLVVXHVLGHQWL¿HGLQWKHHYDOXDWLRQFRQGXFWHGLQ¿VFDO\HDULWZDVMXGJHGWKDWGLVFXVVLRQVSHUWDLQLQJWRWKHIRUPXODWLRQRIWKH&RPSDQ\¶V',&9LVLRQORQJWHUPPDQDJHPHQWSODQKDGEHHQHQKDQFHGWKURXJKLPSURYHPHQWVVXFKDVWKHFUHDWLRQRIPXOWLSOHRSSRUWXQLWLHVIRUH[SODQDWLRQDQGGHOLEHUDWLRQ$FFRUGLQJO\WKHHIIHFWLYHQHVVRIWKH%RDUGRI'LUHFWRUVZDVFRQ¿UPHG
,Q¿VFDO\HDUWKH&RPSDQ\ZLOOVHHNWRIXUWKHUEROVWHUWKH%RDUGRI'LUHFWRUV¶HIIHFWLYHQHVVE\UHYLHZLQJWKHSURJUHVVRISULRULW\PHDVXUHVVHWIRUWKLQ',&
9LVLRQDVZHOODVE\WDNLQJVWHSVWRVWUHQJWKHQWKH%RDUG¶VVXSHUYLVLRQRILQWHUQDOFRQWUROVDQGWKHULVNPDQDJHPHQWV\VWHPRQDJOREDOEDVLVDVSDUWRILWV
RQJRLQJHIIRUWWRSURPRWHLPSURYHPHQWDIC Report 2022

63

Corporate Governance| Other Initiatives
1

Ensuring the Diversity of Core Human Resources:LWKUHJDUGWRHQVXULQJGLYHUVLW\WKH&RPSDQ\VWDWHVLQWKLVLQWHJUDWHGUHSRUWWKDWLW³ZRUNVWRIRVWHUDFRUSRUDWHFXOWXUHWKDWGUDZVRQLWVXQGHUVWDQGLQJDQG
UHVSHFWIRUGLYHUVLW\WRSURGXFHFUHDWLYHLGHDVDQGWRLQFRUSRUDWHWKHFRQFHSWRIGLYHUVLW\LQWRPDQDJHPHQW´WKHUHE\FUHDWLQJZRUNSODFHVWKDWHQKDQFHMREVDWLVIDFWLRQIRUHPSOR\HHV5HVSHFWIRUGLYHUVLW\DQGKXPDQULJKWVLVDOVRVWLSXODWHGLQWKH&RPSDQ\¶VEDVLFVXVWDLQDELOLW\SROLF\$VPHDVXUDEOHWDUJHWVIRUHQVXULQJGLYHUVLW\WKH&RPSDQ\KDVVHWWDUJHWVIRUSHUFHQWDJHRIPDQDJHPHQWSRVLWLRQVLQ-DSDQRFFXSLHGE\IHPDOHHPSOR\HHVDQGSHUFHQWDJHRILWVRYHUDOOODERUIRUFHLQ-DSDQDFFRXQWHGIRUE\IRUHLJQQDWLRQDOVZKLFKLWSXEOLVKHVLQWKLVUHSRUWWRJHWKHUZLWKDFWXDO¿JXUHVIRUERWKRIWKHVHVWDWLVWLFVDVZHOODVIRURWKHU\DUGVWLFNVVXFKDVPLGFDUHHUKLUHVDVDSHUFHQWDJHRIWRWDOQHZKLUHV
7KH&RPSDQ\¶VSROLF\IRUIRVWHULQJKXPDQUHVRXUFHVDQGFUHDWLQJZRUNHQYLURQPHQWVLQDPDQQHUWKDWHQVXUHVGLYHUVLW\LVWR³SURPRWHHIIRUWVWRHQVXUHGLYHUVHKXPDQUHVRXUFHVDUHLQWKHULJKWSODFHVDQGWKHFUHDWLRQRIZRUNHQYLURQPHQWVWKDWHQDEOHHPSOR\HHVWRPD[LPL]HWKHLUFDSDELOLWLHV´$QH[HFXWLYHRI¿FHUKDVEHHQSXWLQFKDUJHRIGLYHUVLW\WRFUHDWHDQHIIHFWLYHFRQ¿JXUDWLRQ,QLWVORQJWHUPPDQDJHPHQW
SODQWKH&RPSDQ\LGHQWL¿HV³)RVWHUKXPDQUHVRXUFHV´³(QVXUHPRELOLW\ KLULQJUHWHQWLRQDQGVXFFHVVLRQ ´DQG³,PSURYHHQJDJHPHQWDQG
RUJDQL]DWLRQDOFRKHVLYHQHVV´DVWKHWKUHHSULRULWLHVRILWVVWUDWHJ\WRUHLQIRUFHLWVPDQDJHPHQWRIKXPDQFDSLWDO*LYHQSURMHFWLRQVIRUWKHSRVWSDQGHPLF³QHZQRUPDO´LQWKH&RPSDQ\ODXQFKHG:RUN6W\OH5HYROXWLRQ :65 DSURMHFWWDUJHWLQJWKHGHYHORSPHQWRIQHZZRUNVW\OHVZLWKWKHDLPRIERRVWLQJHPSOR\HHSURGXFWLYLW\DQGPRWLYDWLRQ
2

Sustainability Initiatives

7KH&RPSDQ\SURPRWHVVXVWDLQDELOLW\LQLWLDWLYHVLQOLQHZLWKNH\WKHPHVWKDWUHÀHFWLWVEHOLHIWKDWDVDPDQXIDFWXUHURI¿QHFKHPLFDOVLWKDVDUHVSRQVLELOLW\WRDGGUHVV(6*UHODWHGLVVXHVDQGGLVFORVHVWKHSURJUHVVWKHUHRILQWKLVUHSRUW5HJDUGLQJKXPDQFDSLWDOWKH&RPSDQ\¶VORQJWHUPPDQDJHPHQWSODQVHWVIRUWK³5HLQIRUFHPDQDJHPHQWRIKXPDQFDSLWDO´DVDEDVLFVWUDWHJ\IXUWKHU
H[SODLQLQJWKLVDV³%XLOGDVWUDWHJLFKXPDQUHVRXUFHVSRUWIROLRWKDWPD[LPL]HVWKHYDOXHRIKXPDQFDSLWDO´9DULRXVUHODWHGLQLWLDWLYHVDUHGLVFORVHGLQWKH
+XPDQ5HVRXUFHV0DQDJHPHQWVHFWLRQRIWKLVUHSRUW5HFRJQL]LQJWKHHIIHFWLYHXVHRILQWHOOHFWXDOSURSHUW\DVLQGLVSHQVDEOHWRWKHFUHDWLRQRIQHZYDOXHDNH\PDQDJHPHQWFKDOOHQJHWKH&RPSDQ\DFWLYHO\FDSLWDOL]HVRQSDWHQWODQGVFDSHVDQGRWKHULQWHOOHFWXDOSURSHUW\LQIRUPDWLRQDQGRQWKHUHODWLYHVWUHQJWKRILWVSDWHQWSRUWIROLRFRPSDUHGWRWKRVHRILWV
FRPSHWLWRUVDQGKDVFUHDWHGDFRQ¿JXUDWLRQZKHUHE\EXVLQHVVJURXSVDQGWHFKQLFDODQGLQWHOOHFWXDOSURSHUW\WHDPVZRUNDVRQHWRDGYDQFHLQWHOOHFWXDOSURSHUW\VWUDWHJLHVWKDWDUHLQFRQIRUPDQFHZLWKEXVLQHVVVWUDWHJLHV7KHVHHIIRUWVDUHDOVRGHVFULEHGLQWKH1HZ9DOXH&UHDWLRQVHFWLRQRIWKLVUHSRUW7KH&RPSDQ\KDVGHFODUHGLWVVXSSRUWIRUWKH7DVN)RUFHRQ&OLPDWHUHODWHG)LQDQFLDO'LVFORVXUHV 7&)' 7DNLQJLQWRDFFRXQWGDWDRQFDUERQSULFLQJ
HWFSUHVHQWHGLQWKH6XVWDLQDEOH'HYHORSPHQW6FHQDULRVHWIRUWKLQWKH,QWHUQDWLRQDO(QHUJ\$JHQF\ ,($ ¶V:RUOG(QHUJ\2XWORRNDVZHOODVGDWDRQ
GHFDUERQL]DWLRQWHFKQRORJLHVDPRQJRWKHUVDQGWKH5HSUHVHQWDWLYH&RQFHQWUDWLRQ3DWKZD\ 5&3 JUHHQKRXVHJDVFRQFHQWUDWLRQVFHQDULRDGRSWHGE\
WKH,QWHUJRYHUQPHQWDO3DQHORQ&OLPDWH&KDQJH ,3&& WKH&RPSDQ\FROOHFWVDQGDQDO\]HVGDWDRQUHODWHGULVNVLQFOXGLQJIURPFDVHVWXGLHVIRFXVLQJRQFOLPDWHFKDQJH±UHODWHGQDWXUDOGLVDVWHUVVXIIHUHGE\RWKHUFRPSDQLHVVXFKDVGDPDJHWRWKHSURGXFWLRQVLWHVORFDWHGLQFRDVWDODUHDVDQGLQIUDVWUXFWXUHIDLOXUHV7KH&RPSDQ\DOVRFRQGXFWVVFHQDULRDQDO\VLVWRDVVHVVFOLPDWHFKDQJH±UHODWHGULVNVDQGRSSRUWXQLWLHVDQGLPSDFWRQEXVLQHVVDFWLYLWLHVDQG
SUR¿WDELOLW\DQGGLVFORVHVLQIRUPDWLRQLQOLQHZLWKWKHUHFRPPHQGDWLRQVRIWKH7&)'LQWKLVUHSRUW

Changes Implemented to Enhance Corporate Governance System
ChangeYear&KDQJHVWHUPRIRI¿FHRIGLUHFWRUVIURPWZR\HDUVWRRQH\HDU$GRSWVH[HFXWLYHRI¿FHUV\VWHP$EROLVKHVV\VWHPRIUHWLUHPHQWDOORZDQFHVIRUH[HFXWLYHV(VWDEOLVKHVFRPPLWWHHWRGHWHUPLQHFRPSHQVDWLRQIRUGLUHFWRUVDQG$XGLW 6XSHUYLVRU\%RDUGPHPEHUV$SSRLQWVWZRRXWVLGHGLUHFWRUV(VWDEOLVKHV5HPXQHUDWLRQ&RPPLWWHHDQG&RPSHQVDWLRQ&RPPLWWHH(VWDEOLVKHV6XVWDLQDELOLW\&RPPLWWHH)RUPXODWHV3ROLF\RQ&RUSRUDWH*RYHUQDQFH LQFOXGLQJLQGHSHQGHQFHVWDQGDUGVIRURXWVLGHGLUHFWRUVDQG
RXWVLGH$XGLW 6XSHUYLVRU\%RDUGPHPEHUV,QFUHDVHGQXPEHURIRXWVLGHGLUHFWRUVIURPWZR WRWKUHH$GRSWVV\VWHPRISHUIRUPDQFHEDVHGVWRFNFRPSHQVDWLRQ(VWDEOLVKHV4XDOLW\&RPPLWWHH(VWDEOLVKHV:65&RPPLWWHHDIC Report 202264

Directors, Audit & Supervisory Board Members and Executive Officers（ 2019 年 0 月現在）
(As of May 2022)| Directors

1

Masayuki Saito

Chairman of the Board of Directors

2

Kaoru Ino

Representative Director

3

Toshifumi Tamaki

Representative Director

4

Yoshihisa Kawamura

Director

5

Takeshi Asai

Director

6

Shuji Furuta

Director

7

Kazuo Tsukahara

Director*

8

9

Kuniko Shoji

Director*

8

6

5

7

9

Yoshiaki Tamura

Director** Outside

3

1

2

4

| Audit & Supervisory Board Members
1

Hiroyuki Ninomiya

Full-Time Audit & Supervisory Board Member
2

Akihiro Ikushima

Full-Time Audit & Supervisory Board Member
3

Michiko Chiba

Audit & Supervisory Board Member*
4

Keita Nagura

Audit & Supervisory Board Member** Outside3

2

4| 2XWVLGH$XGLW 6XSHUYLVRU\%RDUG0HPEHU3URÀOHV

| 2XWVLGH'LUHFWRU3URÀOHV
Kazuo Tsukahara

1

Kuniko Shoji

Michiko Chiba

June 2004 Executive Officer, Terumo Corporation
April 2008 Director and Managing Executive Officer, IHI Corporation
April 2012 Representative Director and Executive Vice President, IHI Corporation June 2010 Director and Senior Executive Officer, Terumo Corporation
June 2017 Advisor, Terumo Corporation
June 2014 Advisor, IHI Corporation

October 1989 Joined Showa Ota & Co. (currently Ernst & Young ShinNihon LLC)
July
2010 Senior Partner, Ernst & Young ShinNihon LLC
September 2016 Founded Chiba Certified Public Accountant Office

Yoshiaki Tamura

Keita Nagura

January 2007 Executive Officer, Asahi Glass Co., Ltd. (currently AGC Inc.)
March 2013 Representative Director and Executive Vice President, AGC Inc.
March 2017 Executive Fellow, AGC Inc.

April

1998 Registered as an attorney (Osaka Bar Association); Joined Yodoyabashi Godo Law Office(currently Yodoyabashi & Yamagami Legal Professional Corporation)
February 2002 Changed registration as an attorney to the Dai-Ichi Tokyo Bar Association

DIC Report 202265

| ([HFXWLYH2IÀFHUVKaoru Ino

Toshifumi Tamaki

Naoyoshi Furuta

Masaya Nakafuji

Kazuo Hatakenaka

President and CEO

Executive Vice PresidentManaging Executive Officer

Managing Executive Officer

Managing Executive Officer

Assistant to President and CEO

General Manager, Production
Management Unit

Head of General Affairs and Legal Unit
In Charge of Osaka Branch and Nagoya
BranchChairman, DIC (China) Co., Ltd.
Chairman, DIC (Shanghai) Co., Ltd.

Kiyotaka Kawashima

Masamichi Sota

Kiyofumi Takano

Yoshinari Akiyama

Myron Petruch

Managing Executive Officer

Managing Executive Officer

Managing Executive Officer

Managing Executive Officer

Managing Executive Officer

General Manager, Technical Management
Unit

President, Packaging & Graphic
Business Group General Manager,
Printing Material Products Div.

General Manager, New Business
Development Headquarters

President, Color & Display Business Group
General Manager, Color Material
Products Div.

President and CEO,Sun Chemical Corporation

Takeshi Asai

Shuji Furuta

Takashi Ikeda

Taihei Mukose

Paul Koek

Managing Executive Officer

Managing Executive Officer

Managing Executive Officer

Executive Officer

Executive Officer

Head of Corporate Strategy Unit
In Charge of Kawamura
Memorial DIC Museum of Art
Vice Chairman of the Board,
Sun Chemical Corporation

CFO
Head of Finance and Accounting Unit

President, Functional Products
Business Group General Manager,
Composite Material Products Div.

Head of SCM UnitManaging Director,
DIC Asia Pacific Pte Ltd

Koji Asada

Masahiro Kikuchi

Yuji Morinaga

Toshiro Ariga

Yuji Kikuchi

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

General Manager, Packaging Material
Products Div.

General Manager, R&D Management Unit
General Manager, Central ResearchLaboratories

General Manager, Performance
Material Products Div.

Head of IT Strategy Unit
General Manager, DX Promotion Dept.

Deputy Managing Director (AP Region
Non Graphic Business and South Asia),
DIC Asia Pacific Pte Ltd

Tomoyuki Tanaka

Kuniko Torayama

Executive Officer

Executive Officer

General Manager, Corporate Planning
Dept.

Head of ESG Unit
In Charge of Diversity

DIC Report 2022

66

A Message from an Outside Director

I look forward to DIC employees emphasizing
pride, as well as kindness and contentment, totake the Color & Comfort concept to a new level.
Yoshiaki Tamura
Outside Director
0DUFK5HSUHVHQWDWLYH'LUHFWRUDQG([HFXWLYH9LFH3UHVLGHQW$*&,QF
0DUFK([HFXWLYH)HOORZ$*&,QF

A Corporate Culture Rooted in Kindness and Contentment
When I took up the position of outside director in 2018, I was immediately struck by the basic atmosphere of kindness and contentment.
Everyone seemed to be animated and to really enjoy what they were doing. I was wondering how a company with a history stretching backmore than 100 years had succeeded in creating such a modern corporate culture. I concluded that the answer can be found in the Color& Comfort management vision. A vibrant, worry-free life is something people aspire to no matter where in the world they live. DIC is a
FRPSDQ\WKDWVHHNVWRSURYLGHV&RORU &RPIRUWVRLWPDNHVVHQVHWKDWWKHVHFRQFHSWVDUHUHÀHFWHGLQLWVRZQFRUSRUDWHFXOWXUH0RUH
recently, I have been impressed by how quickly DIC moved to make necessary adjustments to cope with the COVID-19 pandemic.

Emphasizing Pride to Advance to the Next Level,Q¿VFDO\HDU',&WRRNWKH&RORU &RPIRUWFRQFHSWWRDQHZOHYHOE\VHHNLQJWROLQNLWWRWKHUHVROXWLRQRIVRFLDOLPSHUDWLYHVORRNLQJ
at whether we couldn’t step up efforts to take on the challenge of entering new markets to better respond to ESG-related issues. In addition
to recognizing the importance of each and every employee setting ambitious targets and having the fortitude and ability to translate ideas
into action to ensure their achievement, the Company also understands the importance of being able to analyze what is lacking, seek
assistance from a superior—whether by increasing personnel or budget—to course correct.
Personally, I have always believed in the importance of fun, trust and pride. DIC already has a strong philosophy of fun and trust. Goingforward, I would like to see a greater emphasis on pride. By that I mean that I would like to see employees approach their work with pride
LQWKHLUDELOLWLHVDGHVLUHWRVKRZWKDWWKH\FDQKDQGOHZKDWHYHULVWKURZQWKHLUZD\DQGWKHFRQ¿GHQFHWKDWWKH\ZLOOHPHUJHRQWRS7R
WKLVHQGLWLVLPSRUWDQWIRUVXSHULRUVWRFRQYH\WKHLUH[SHFWDWLRQVWRWKHLUVXERUGLQDWHVDQGFOHDUO\GH¿QHGXWLHVDVZHOODVWRDFWLYHO\encourage communication.

The Key to the Future,Q¿VFDO\HDUWKH&RORUV (IIHFWVEXVLQHVVIRUPHUO\WKHJOREDOSLJPHQWVEXVLQHVVRI*HUPDQ\¶V%$6)DQG,WDOLDQDGKHVLYHVDQG
polymers manufacturer SAPICI S.p.A. joined the DIC Group. It is my hope that while maintaining its excellent corporate culture DIC will
also continue to display leadership in guiding these new members of the team to achieve robust results. Developing a scenario for the*URXS¶VJOREDOVWUDWHJLHVDQGDFFHOHUDWLQJWKHLPSOHPHQWDWLRQRIWKRVHVWUDWHJLHVLVFUXFLDO0XFKOLNHSXWWLQJWRJHWKHUDQLQWULFDWHMLJVDZ
puzzle, such a scenario will encourage employees to approach their own roles with renewed enthusiasm, which in turn will inspire theactive exchange of opinions among the Group’s diverse human resources, a process of action and reaction that will yield innovative ideas.
Pressing ahead with such efforts is the key to the future and will surely open exciting new doors for the DIC Group to evolve as a uniqueglobal company that is trusted by society. I pledge to continue leveraging my own capabilities to support everyone.

DIC Report 2022

67

Overview of Sustainability
In line with its basic sustainability policy, the DIC Group promotes a variety of sustainability initiatives worldwide and works to maintain an accurate
grasp of social imperatives pertaining to ESG-related issues.

Sustainability Program
Amid rising environmental concerns, including climate change, and increasingly urgent social imperatives, companies today face an ever-morediverse array of challenges, including rising awareness of the need to achieve sustainability in a manner that takes into account the environment,
ecosystems and socioeconomic issues. The DIC Group launched its CSR program in fiscal year 2007. Having further clarified the overall directionof related initiatives as “sustainable growth,” effective from fiscal year 2014 the Group changed the designation used across its program from “CSR”
to “sustainability.” In fiscal year 2018, DIC established the ESG Unit, a specialized department to further expand Group ESG initiatives worldwide.
In line with its basic sustainability policy, the DIC Group promotes a variety of sustainability initiatives worldwide and works to maintain an accurate
grasp of social imperatives pertaining to ESG-related issues.

Basic Sustainability Policy（Partially revised in March 2019）
The DIC Group is dedicated to conducting its business while retaining a strong commitment to five key concepts: preserving safety
and health, managing risks, ensuring fair business practices and respect for diversity and human rights, maintaining harmony withthe environment and advancing its protection, and creating value for society through innovation and contributing to ongoing economic
growth. DIC Group employees will continue working to deliver the value that its stakeholders—including its customers, suppliers, local
communities, shareholders and investors, and employees—expect, showing ingenuity and a sense of responsibility. The Group itself will
strive to remain an organization that contributes to sustainability for society, as well as to the conservation and improvement of the global
environment, by capitalizing on its businesses to achieve unfaltering growth, thereby enhancing its own sustainability.
Notes: 1. With the aim of ensuring that it remains a globally trusted corporate citizen with a proud reputation, in December 2010 the DIC Group became a signatory to the UNGC.
The Group also takes the guidelines provided by ISO 26000, the International Organization for Standardization’s standard for social responsibility, into account in conducting its operations.
2. The global community today recognizes the promotion of ESG management, which seeks to balance sustainable economic growth and the resolution of social
imperatives, as critical. This is evidenced by the fact that countries worldwide have ratified the Paris Agreement and the SDGs, both of which were adopted in 2015.

¦ Sustainability Framework and Themes
ThemesThe DIC Group’s sustainability framework comprises 13 key themes, which are categorized as basic themes, themes that demonstrate uniquecapabilities and themes that combine elements of the previous two classifications. The Group implements a broad range of global initiatives that take
into account its responsibility to ensure proper product stewardship, as well as its position as a leading manufacturer of fine chemicals.
Sustainable technology and product development
New value creation
Digital transformation (DX)Harmony with the community and social contributions
Communication with stakeholders

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

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

Deployment
In line with its basic sustainability policy, the DIC Group has formulated a medium-term (fiscal years 2022–2025) policy and creates an annual activity
plan for each of its key sustainability themes. The Group makes use of the plan-do-check-act (PDCA) cycle in promoting initiatives and reports on its
achievements annually in the DIC Report. Individual business groups, product divisions, sites, and overseas and domestic DIC Group companies arecharged with pursuing effective sustainability programs by formulating their own activity plans, based on the Group’s plan, as well as with ensuring that
the Group’s policies permeate their organizations and labor forces, and promoting sustainability initiatives that align with business targets.

DIC Report 2022

68

Overview of Sustainability| System for Promoting Sustainability Initiatives

Members of the Sustainability Committee

7KH',&*URXS¶VV\VWHPIRUSURPRWLQJVXVWDLQDELOLW\LQLWLDWLYHVFHQWHUVRQWKH
6XVWDLQDELOLW\&RPPLWWHHZKLFKDQVZHUVGLUHFWO\WRWKHSUHVLGHQWDQG&(2
DQGZKLFKPHWIRXUWLPHVLQILVFDO\HDU7KHFRPPLWWHHIXQFWLRQVDV
an advisory body, and is responsible for formulating responses to key social
imperatives. The Sustainability Committee is also tasked with reinforcing
VXVWDLQDELOLW\LQLWLDWLYHVDQGGHOLEHUDWLQJRQFULWLFDOUHODWHGPDWWHUV(IIHFWLYH
IURP-DQXDU\WKHFRPPLWWHHLVFKDLUHGE\WKHSUHVLGHQW
,Q-DQXDU\',&HVWDEOLVKHGWKH6XVWDLQDELOLW\6WUDWHJ\:RUNLQJ*URXS
which is responsible for formulating and advancing the implementation of
concrete strategies for promoting sustainability, and oversees the activities of
IRXUVXERUGLQDWHZRUNLQJJURXSV²6XVWDLQDELOLW\,QGH[&OLPDWH&KDQJH0DULQH
DQG:DVWH3ODVWLFVDQG,QIRUPDWLRQ0DQDJHPHQW7KH6XVWDLQDELOLW\6WUDWHJ\:RUNLQJ*URXSDOVRUHSRUWVRQNH\LQLWLDWLYHVWRWKH6XVWDLQDELOLW\&RPPLWWHH

3UHVLGHQWDQG&(2([HFXWLYH9LFH3UHVLGHQW+HDGRIWKH)LQDQFHDQG
$FFRXQWLQJ8QLW+HDGRIWKH&RUSRUDWH6WUDWHJ\8QLW+HDGRIWKH*HQHUDO$IIDLUVDQG/HJDO8QLW+HDGRIWKH(6*8QLW+HDGRIWKH6&08QLW+HDGRI
WKH,76WUDWHJ\8QLW3UHVLGHQWVRIWKHEXVLQHVVJURXSV*HQHUDOPDQDJHUVRIWKHSURGXFWGLYLVLRQV*HQHUDO0DQDJHURIWKH3URGXFWLRQ0DQDJHPHQW8QLW*HQHUDO0DQDJHURIWKH7HFKQLFDO0DQDJHPHQW8QLW*HQHUDO0DQDJHURIWKH
5 '0DQDJHPHQW8QLW*HQHUDO0DQDJHURIWKH1HZ%XVLQHVV'HYHORSPHQW+HDGTXDUWHUV*HQHUDO0DQDJHURIWKH&RUSRUDWH3ODQQLQJ'HSDUWPHQW
&(2VRIRYHUVHDVUHJLRQDOKHDGTXDUWHUVSUHVLGHQWVRINH\GRPHVWLF*URXS
companies, and Members of the Audit & Supervisory Board$VRI0D\

Board of Directors
ż Deliberates medium-term policies and key sustainability-related matters

Sustainability Committee
Sustainability
Strategy
Working Groupż Sustainability Index Subcommitteeż Climate Change Subcommitteeż Marine and Waste Plastics Subcommitteeż Information Management Subcommittee

President and CEO

Sustainability
Working Group

Departments/
divisions in charge

ż Formulates Groupwide targets and activity plans
ż Evaluates sustainability initiatives

ż Formulates practical activity plansż Promotes sustainability themes

Product divisions,
New Business Development Headquarters,
Production Management Unit,
Technical Management Unit,
R&D Management Unit,
headquarters’ administrative units, sites,
domestic and overseas Group companies

Sustainability
Department

Sustainability themes

ż Promotes sustainability themes and supports sustainability initiatives
ż Responds to customer requests (conducts surveys and training sessions)ż Disseminates sustainability-related information (prepares the DIC Report, etc.)
ż Advances awareness of sustainability (in-house training, the DIC Group portal site)ż Serves as secretariat to the Sustainability Committee and the Sustainability Working Groupż Deals with external assessment organizations| Ensuring DIC Remains a Globally Trusted Corporate Citizen with a Proud Reputation

Leveraging its Position as a Global Manufacturer of Fine Chemicals to Support the UNGC
6HHNLQJWRIXO¿OOLWVUHVSRQVLELOLWLHVDVDPHPEHURIWKHLQWHUQDWLRQDOFRPPXQLW\LQDPRUHSURDFWLYHPDQQHULQ'HFHPEHU
WKH',&*URXSEHFDPHDVLJQDWRU\WRWKH8QLWHG1DWLRQV*OREDO&RPSDFW 81*& DQGSOHGJHGLWVVXSSRUWIRUWKH
7HQ3ULQFLSOHVRIWKH81*&,QDXJXUDWHGLQWKH81*&LVDYROXQWDU\LQLWLDWLYHIRUFRPSDQLHVWKDWVHHNWRDFKLHYHVXVWDLQDEOHGHYHORSPHQW&RPSDQLHVDQGRUJDQL]DWLRQVZRUOGZLGHKDYHSOHGJHGWKHLUVXSSRUWIRUWKH81*&LQWKHEHOLHIWKDWJOREDOVXVWDLQDEOH
GHYHORSPHQWLVSRVVLEOHLIFRPSDQLHVDOLJQWKHLUEXVLQHVVSUDFWLFHVZLWKDQGIXOILOOWKHLUVRFLDOUHVSRQVLELOLWLHVLQ
globally accepted principles in the areas of human rights, labor, the environment and the prevention of corruption.

Applying the Ten Principles of the UNGC
The DIC Group Code of Business Conduct conforms with the
7HQ3ULQFLSOHVRIWKH81*&7KH*URXSLVFDSLWDOL]LQJRQLWV
participation in this program to advance its operations around theworld, while at the same time giving ever-greater consideration
to the environment and human rights, with the aim of ensuring
sustainability for global society.

7HQ3ULQFLSOHVRIWKH81*& 2IÀFLDO9HUVLRQHuman rights

LabourComplying with ISO 26000
The DIC Group operates in a manner that is consistent with ISOUHOHDVHGLQ1RYHPEHUZKLFKSURYLGHVEXVLQHVVHV
DQG RUJDQL]DWLRQV JXLGHOLQHV IRU RSHUDWLQJ LQ D VRFLDOO\
responsible manner.

3ULQFLSOH

Businesses should support and respect the protection ofinternationally proclaimed human rights; and3ULQFLSOH

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

3ULQFLSOH

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

3ULQFLSOH

the elimination of all forms of forced and compulsory labour;

3ULQFLSOH

the effective abolition of child labour; and3ULQFLSOH

the elimination of discrimination in respect of
employment and occupation.
Businesses should support a precautionary approach toenvironmental challenges;
undertake initiatives to promote greater environmental
responsibility; andencourage the development and diffusion ofenvironmentally-friendly technologies.
Businesses should work against corruption in all its forms,
LQFOXGLQJH[WRUWLRQDQGEULEHU\

3ULQFLSOH

Environment

3ULQFLSOH
3ULQFLSOH

Anti-corruption

DIC Report 2022

69

3ULQFLSOHThemes

DIC Sustainability Themes

Relevant UN SDG Icons

Sustainable technology and productdevelopment
SDGs

Goals 9 and 12

SDGs

Goals 8, 9 and 11

SDGs

Goals 3 and 4

SDGs

Goal 17

SDGs

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

SDGs

Goals 3, 4, 5, 8 and 10

SDGs

Goal 12

SDGs

Goal 16

New value creation

Themes that
demonstrate unique
FDSDELOLWLHV $'LJLWDOWUDQVIRUPDWLRQ ';Harmony with the community and social
contributions
Communication with stakeholders

Environment, safety and health (6+Core andFDWHJRU\VSHFLÀF
themes(Themes that combine
HOHPHQWVRI $ DQG %Quality
Human resources management

Sustainable procurement

Compliance%DVLFWKHPHV %%XVLQHVVFRQWLQXLW\PDQDJHPHQW %&0 DQG
crisis management
Information security

The 2030 Agenda for Sustainable Development$WWKH816XVWDLQDEOH'HYHORSPHQW6XPPLWLQ6HSWHPEHU
DSURSRVDOWLWOHG³7UDQVIRUPLQJRXUZRUOGWKH
$JHQGDIRU6XVWDLQDEOH'HYHORSPHQW´ODWHUVXPPDUL]HG
DV WKH 6XVWDLQDEOH 'HYHORSPHQW *RDOV 6'*V  ZDVDGRSWHG ZLWK WKH SDUWLFLSDWLRQ RI PRUH WKDQ  81
member states. The agenda, which succeeded the
0LOOHQQLXP'HYHORSPHQW*RDOV 0'*V HQFRPSDVVHVJRDOVDQGWDUJHWV$OO81PHPEHUVWDWHVDUHH[SHFWHG
WR PRELOL]H HIIRUWV WR DWWDLQ WKH  JRDOV HVVHQWLDO WR
VXVWDLQDEOHGHYHORSPHQWIRUWKHSODQHWE\7KH',&
Group pledges to contribute through its business activities
to the success of the SDGs.

)RUPRUHLQIRUPDWLRQRQWKH SDGs, please visit:https://www.un.org/sustainabledevelopment/development-agenda/

DIC Report 2022

70

Compliance

SDGs Goal 16

Toward Fair and Transparent Corporate Activities
Goals and Achievements of Major Initiatives(YDOXDWLRQVDUHEDVHGRQVHOIHYDOXDWLRQVRIFXUUHQWSURJUHVV.H\★★★ = Excellent; ★★ 6DWLVIDFWRU\★ = Still needs work

Objectives of initiatives

Goals for fiscal year 2021

Achievements in fiscal year 2021

Evaluation

Goals for fiscal year 2022

(QKDQFHDZDUHQHVVRIFRPSOLDQFH

• $FKLHYH W DUJHW IRU SHUF HQW DJH RI
employees participating in the e-learning
SURJUDP  
• ,PSOHPHQW OHJDO WUDLQLQJ ,I &29,'
UHPDLQVDQLVVXHRSWIRUDUHPRWHIRUPDW• Excluding regions where people were
XQDEOHWRJDWKHUEHFDXVHRI&29,'WKH
SHUFHQWDJHRIHPSOR\HHVSDUWLFLSDWLQJLQ
HOHDUQLQJH[FHHGHG /HJDOWUDLQLQJZDVLPSOHPHQWHGLQ-DSDQIRU',&H[HFXWLYHVDQGWKHSUHVLGHQWVRIGRPHVWLF*URXSFRPSDQLHVDPRQJRWKHUV

★★

 $FKLHYH W DUJHW IRU SHUF HQW DJH RI
employees participating in the e-learning
SURJUDP  • ,PSOHPHQW OHJDO WUDLQLQJ IRFXVHG RQ
FRPSOLDQFHDQGFRUSRUDWHJRYHUQDQFH'HWHUPLQHPRVWDSSURSULDWHIRUPDW&RQGXFWEXVLQHVVIDLUO\$FKLHYH WDUJHW RI ]HUR YLRODWLRQV RI
DQWLWUXVWDQGDQWLFRUUXSWLRQODZV=HURYLRODWLRQVRIDQWLWUXVWDQGDQWLFRUUXSWLRQODZVZHUHUHSRUWHG

★★

$FKLHYH WDUJHW RI ]HUR YLRODWLRQV RI
DQWLWUXVWDQGDQWLFRUUXSWLRQODZVBasic Approach to Compliance&RPSOLDQFHLQWKH',&*URXSHQFRPSDVVHVQRWRQO\REH\LQJODZVEXWDOVRDFWLQJLQDPDQQHUWKDWLVLQNHHSLQJZLWKVRFLDOQRUPVDQGWKHH[SHFWDWLRQVRIFXVWRPHUVFRPPXQLWLHVDQG
RWKHUVWDNHKROGHUV:LWKWKHDLPRIHQVXULQJVXVWDLQDEOHJURZWKIRUEXVLQHVVHVWKDWDUHERWKIDLUDQGWUDQVSDUHQW',&IRUPXODWHGWKH',&*URXS&RGHRI%XVLQHVV&RQGXFWDXQL¿HGVHWRIJXLGHOLQHVWKHDGKHUHQFHWRZKLFKLWFRQVLGHUVWREHWKHIRXQGDWLRQRIFRPSOLDQFH',&FRPSHOVDOO',&*URXSHPSOR\HHVWRFRQGXFWWKHPVHOYHVLQDFFRUGDQFHZLWKWKHFRGH

| The DIC Group Code of Business Conduct
7KH',&*URXSFRPSOHWHGWKH',&*URXS&RGHRI%XVLQHVV&RQGXFWLQ-XO\7KHFRGHQRWRQO\PDQGDWHVFRPSOLDQFHZLWKQDWLRQDOODZVDQG
LQWHUQDWLRQDOUXOHVEXWDOVRSUHVHQWVSULQFLSOHVHVVHQWLDOWRWKHSURIHVVLRQDOFRQGXFWRI',&*URXSHPSOR\HHV7KH*URXSKHOGSUHVHQWDWLRQVIRUDOO
H[LVWLQJ*URXSHPSOR\HHVDWWKHWLPHRIUHOHDVHZKLOHQHZHPSOR\HHVUHFHLYHWUDLQLQJDWSRLQWRIKLUH7KHJRDORIVXFKWUDLQLQJLVWRHQVXUHHPSOR\HHVZRUOGZLGHVKDUHYDOXHVFKHULVKHGE\WKH*URXSDQGDSSURDFKWKHLUUHVSRQVLELOLWLHVZLWKDVHQVHRIUHVSRQVLELOLW\DQGDFRPPLWPHQWWRGRLQJWKHULJKWWKLQJ',&*URXS&RGHRI%XVLQHVV&RQGXFW WEB https://www.dic-global.com/pdf/csr/philosophy/compliance/code_of_business_conduct_en.pdf

10 Principles Essential to Professional Conduct❶ <RXU5LJKWVDVDQ(PSOR\HH5HVSHFW'LJQLW\3ULYDF\❻ <RXU5HODWLRQVKLSZLWK&XVWRPHUV6XSSOLHUVDQG([WHUQDO7KLUG3DUWLHV❷ (QYLURQPHQW6DIHW\and Health❼ Money Laundering and Anti-Terrorism❸ <RXU5HVSRQVLELOLW\WR$YRLG3RWHQWLDO&RQÀLFWVRI,QWHUHVWDQGWR3URWHFW*URXS3URSHUW\❽ )RUFHG/DERU&KLOG/DERU&RQÀLFW0LQHUDOV❹ $QWL&RUUXSWLRQDQG$QWL%ULEHU\3ROLF\❾ Insider Trading❺ <RXU5HODWLRQVKLSZLWK*RYHUQPHQWVDQG*RYHUQPHQW2I¿FLDOV❿ Proper Accounting and Internal Controls Relating to Financial Reporting| Initiatives to Promote Compliance
7KH',&*URXSSURPRWHVFRPSOLDQFHWKURXJKWKHIROORZLQJLQLWLDWLYHV
❶ /HJDOWUDLQLQJIRFXVHGRQLPSURYLQJFRPSOLDQFHDZDUHQHVVLVSURYLGHGIRUHPSOR\HHV

DWSRLQWRIKLUHZKHQSURPRWHGDQGEHIRUHWUDQVIHURYHUVHDV,QDGGLWLRQWRSURPRWH
DZDUHQHVVRIWKH',&*URXS&RGHRI%XVLQHVV&RQGXFWHOHDUQLQJUHODWHGWRWKH
FRGHDVZHOODVWRFRPSOLDQFHLVSURYLGHGLQ-DSDQDW',&$VLD3DFLILFand DIC&KLQD DQGLQWKH$PHULFDVDQG(XURSH,Q¿VFDO\HDUOHJDOWUDLQLQJFRXOGQRW
EHLPSOHPHQWHGIRU*URXSHPSOR\HHVEHFDXVHRI&29,'EXWWUDLQLQJUHJDUGLQJFRUSRUDWHJRYHUQDQFHDQGRWKHUWKHPHVZDVLPSOHPHQWHGLQ-DSDQIRU',&H[HFXWLYHV
DQGWKHSUHVLGHQWVRIGRPHVWLF*URXSFRPSDQLHVDPRQJRWKHUVDIC Report 2022

71

Compliance E-Learning Program
・Preventing corruption and bribery (2017)
・International antitrust legislation (2018)
・$YRLGLQJFRQÀLFWVRILQWHUHVW ・Preventing harassment (2020)
・Insider trading (2020)・Trademarks and intellectual property (2020)
・,QIRUPDWLRQVHFXULW\DQGWKHSURWHFWLRQRISHUVRQDOLQIRUPDWLRQ ・Adhering to laws and regulations pertaining to compliance (2020)・The DIC Group’s whistle-blowing system (2020)
・Adhering to laws and regulations pertaining to compliance(product quality) (2021)
・,QIRUPDWLRQVHFXULW\DQGWKHUHYLVLRQRI-DSDQ¶V$FW
RQWKH3URWHFWLRQRI3HUVRQDO,QIRUPDWLRQHWF Compliance❷ &RPSOLDQFHRI¿FHUVDUHDSSRLQWHGDWDOOUHJLRQDOKHDGTXDUWHUV²',&LQ-DSDQ6XQ&KHPLFDO WKH$PHULFDVDQG(XURSH ',& &KLQD  35& DQG',&

$VLD3DFL¿F $VLDDQG2FHDQLD ²WRVSHDUKHDGJOREDOFRPSOLDQFHHIIRUWV7KH',&*URXSYRZVWKDWLWZLOOQRWYLRODWHWKHSULQFLSOHVRIWKH',&*URXS&RGHRI%XVLQHVV&RQGXFWHYHQLIVXFKDYLRODWLRQZRXOGDSSHDUWRSUR¿WWKH*URXS$VDFRUSRUDWHFLWL]HQWKH*URXSDOVRSOHGJHVWRUHVSHFWVRFLDOQRUPVDQGDFWLQDVRXQGDQGVRFLDOO\DFFHSWDEOHPDQQHU,Q¿VFDO\HDUWKHUHZHUHQRVHULRXVYLRODWLRQVRIFRPSOLDQFHODZV| Establishing and Operating a Whistle-Blowing System
7KH',&*URXSKDVHVWDEOLVKHGDFRPSOLDQFHZKLVWOHEORZLQJV\VWHPLQGHSHQGHQWIURPFKDQQHOVIRUFRPPXQLFDWLRQXVHGLQWKHFRQGXFWRIEXVLQHVV
7KLVV\VWHPDOVRHQFRPSDVVHVH[WHUQDOKRWOLQHVWKDWFDQKDQGOHUHSRUWVRIFRPSOLDQFHUHODWHGLVVXHVDQGTXHVWLRQVLQWKHODQJXDJHVRIPRUHWKDQ
FRXQWULHV 7KH*URXSKDVDOVRGHYLVHGVWULFWUXOHVXQGHUWKLVV\VWHPWRSURWHFWZKLVWOHEORZHUVIURPUHWDOLDWLRQDQGZRUNVWRHQVXUHWKHV\VWHPIXQFWLRQVLQ
DSURSHUPDQQHU
:KHQDUHSRUWLVUHFHLYHGWKH*URXSUHVSRQGVVZLIWO\DQGDSSURSULDWHO\JLYLQJGXHFRQVLGHUDWLRQWRSHUWLQHQWODZVZKLOHDOVRLQFRUSRUDWLQJLQWHUQDODQG
H[WHUQDORSLQLRQVWRLGHQWLI\DQGFRUUHFWYLRODWLRQVDQGZKHUHQHFHVVDU\WRWDNHGLVFLSOLQDU\DFWLRQ'HWDLOVRIUHSRUWVDQGVWHSVWDNHQLQUHVSRQVHDUHUHSRUWHGWRWKH%RDUGRI'LUHFWRUV7KH*URXSZLOOFRQWLQXHWRXVHLWVZKLVWOHEORZLQJV\VWHPWRHQVXUHWKHSURPSWGLVFRYHU\DQGFRUUHFWLRQRIPLVFRQGXFW,Q
¿VFDO\HDUDSSUR[LPDWHO\UHSRUWVZHUHUHFHLYHGRQFRPSOLDQFHLVVXHVDQGODERUUHODWHGPDWWHUVVXFKDVSRZHUKDUDVVPHQWDQGGLVFULPLQDWLRQEXW
QRQHZHUHMXGJHGWREHVHULRXV',&DOVRSURYLGHGHOHDUQLQJIRFXVHGRQWKH*URXS¶VZKLVWOHEORZLQJV\VWHPIURP¿VFDO\HDUWKURXJK¿VFDO\HDU

DIC Group
employees
Japan, other countries/
territories, regionsAsia–Pacific region

Greater China

Sun Chemical
Corporation

Director in charge of compliance, Legal Department
External legal firm

Legal Department
Whistle-Blowing Committee

Whistleblowing
hotlines

Legal Department
Whistle-Blowing Committee

General manager, Legal Department,
CEO, CFO| Antitrust and Anti-Corruption Legislation
7KH',&*URXSKDVIRUPXODWHGDEDVLFSROLF\WRFRPSO\ZLWKDQWLWUXVWOHJLVODWLRQDQGPDGH*URXSZLGHHIIRUWVWRHQVXUHIDLUEXVLQHVVSUDFWLFHV7KH',&*URXS&RGHRI%XVLQHVV&RQGXFWLQFOXGHVUXOHVIRUFRPSO\LQJZLWKDQWLWUXVWOHJLVODWLRQDQGSURKLELWVLQYROYHPHQWLQFRUUXSWLRQ6LQFH¿VFDO\HDUWKH
*URXSKDVKHOGPRUHWKDQSUHVHQWDWLRQVUHJDUGLQJDQWLWUXVWDQGDQWLFRUUXSWLRQOHJLVODWLRQWRHQVXUHVWULFWFRPSOLDQFHZLWKWKHODZVRIWKHFRXQWULHVLQZKLFKLWRSHUDWHV

| Promoting Compliance with Legislation Regarding the Timely Payment of Subcontractors:LWKWKHDLPRIHQKDQFLQJXQGHUVWDQGLQJRIWKHLPSRUWDQFHRIDSSURSULDWHDQGIDLUWUDQVDFWLRQVZLWKVXEFRQWUDFWRUVWKH/HJDO8QLWKHOGSUHVHQWDWLRQVRQOHJLVODWLRQUHJDUGLQJWKHWLPHO\SD\PHQWRIVXEFRQWUDFWRUVLQFRUSRUDWLQJFDVHVWXGLHVIRUWKHSXUFKDVLQJGHSDUWPHQWVRIGRPHVWLF',&*URXSFRPSDQLHV
DQGRIIHUHGHOHDUQLQJSULQFLSDOO\IRUHPSOR\HHVLQFKDUJHRIVXEFRQWUDFWRUV,QDGGLWLRQ',&KDVSUHSDUHGWKH0DQXDOIRU,QWHUQDO$XGLWLQJRIWKH',&*URXS¶V&RPSOLDQFHZLWK-DSDQ¶V$FW$JDLQVW'HOD\LQ3D\PHQWRI6XEFRQWUDFW3URFHHGV(WFWR6XEFRQWUDFWRUVDQGFUHDWHGDIUDPHZRUNIRUFRQGXFWLQJDXGLWVLQDPRUHHI¿FLHQWPDQQHU7KH*URXSDOVRHQFRXUDJHVHPSOR\HHVLQUHODWHGSRVLWLRQVWRSDUWLFLSDWHLQSURJUDPVVSRQVRUHGE\H[WHUQDORUJDQL]DWLRQVLQFOXGLQJDZRUNVKRSSURPRWLQJDGKHUHQFHWRWKH$FWVSRQVRUHGE\WKH-DSDQ)DLU7UDGH&RPPLVVLRQDQGWKH6PDOODQG0HGLXP(QWHUSULVH$JHQF\| Taxation Compliance

Income Taxes-Currentʼ in Fiscal Year 2021

,Q1RYHPEHUWKH',&*URXSIRUPXODWHGDQRI¿FLDODSSURDFKWRWD[$VDQRUJDQL]DWLRQZLWKJOREDORSHUDWLRQVWKH*URXSHQJDJHVLQIDLUDQGDSSURSULDWHWD[SODQQLQJWKDWUHÀHFWVWKHQDWXUHRILWVEXVLQHVVHV7KH*URXSLVDOVRDZDUHRIULVNVDVVRFLDWHGZLWKWUDQVIHUSULFH
WD[DWLRQDQGWKHXVHRIWD[KDYHQVDQGRILWVREOLJDWLRQWRSD\DSSURSULDWHWD[HVLQWKHSURSHUMXULVGLFWLRQVDVDSSURSULDWHIRULWVRSHUDWLRQV7KHFKDUWWRWKHULJKWVKRZVDEUHDNGRZQRIWKH
*URXS¶VLQFRPHWD[HVLQ-DSDQDQGRYHUVHDVLQ¿VFDO\HDU
The DIC Group’s Approach to Tax

WEB

https://www.dic-global.com/en/csr/philosophy/management/tax.html

DIC Report 2022

72

Overseas¥7,991
million

Japan
Total

¥13,609
million¥5,618millionBCM and Crisis Management
Reducing Business Risks and Preventing the Recurrence of Incidents
Goals and Achievements of Major Initiatives (YDOXDWLRQVDUHEDVHGRQVHOIHYDOXDWLRQVRIFXUUHQWSURJUHVV.H\★★★ ([FHOOHQW★★ 6DWLVIDFWRU\★ = Still needs work
Objective of initiatives

Goals for fiscal year 2021

1. Periodically revise BCPs and reinforce cooperation
among product divisions and sites.
Ensure the continuity of
DIC Group businesses.

2. Strengthen efforts to create a global crisis management
configuration and promote BCP initiatives.

Achievements in fiscal year 2021

Evaluation• A periodic revision of BCPs was conducted,
as scheduled.
• To reinforce cooperation among the headquarters task
force, product divisions and sites, a system for sharing
information in the event of an accident or disaster was
introduced and launched. Joint initial response training
with multiple sites using this system was conducted aspart of headquarters task force training. In addition, after
launch the system was put to practical use to collectinformation from sites when an earthquake registering 5
Upper on the Japanese Seismic Intensity Scale struck.
• The headquarters task force manual for responding to
infectious diseases was revised significantly based on
experience gained dealing with COVID-19.
• Revisions were made to the manual prepared for use byCompany representatives taking up new overseas posts.

Goals for fiscal year 2022

1. Periodically revise BCPs and reinforce
cooperation among product divisions
and sites.
★★

2. Strengthen efforts to create a global crisis
management configuration and promote BCP
initiatives.

Basic Approach to BCM and Crisis Management
The DIC Group accounts for all risks with the potential to interrupt business continuity through BCM, including those related to natural disasters such as major
HDUWKTXDNHVW\SKRRQVDQGÀRRGVLQÀXHQ]DDQGRWKHUSDQGHPLFVDQGH[SORVLRQV¿UHVOHDNVDQGRWKHUIDFLOLW\DFFLGHQWV7KH*URXSFRPSUHKHQVLYHO\HVWLPDWHVWKH
SUREDELOLW\RIHDFKULVNDQGLWVLPSDFWRQPDQDJHPHQWSULRULWL]LQJUHVSRQVHPHDVXUHVIRUPRUHVLJQL¿FDQWULVNV7KH*URXSKDVDOVRHVWDEOLVKHGDWDVNIRUFHIUDPHZRUNHQFRPSDVVLQJDKHDGTXDUWHUVWDVNIRUFHEXVLQHVVWDVNIRUFHDQGRQVLWHWDVNIRUFHVDVZHOODVSUHSDUHGULVNVSHFL¿FPDQXDOVIRUXVH*URXSZLGHDQGFRQWLQXHVWR
SURPRWHHIIRUWVWKDWLQFOXGHSURGXFLQJDQGUHYLVLQJEXVLQHVVFRQWLQXLW\SODQV %&3V IRUNH\SURGXFWVIRUPXODWLQJ%&0DQGFULVLVPDQDJHPHQWFRXQWHUPHDVXUHVDQG
XSGDWLQJLQIRUPDWLRQ| Framework for Promoting BCP

DIC’s Framework for Promotion+DYLQJ SUHSDUHG FULVLV PDQDJHPHQW UXOHV DQG ULVNVSHFLILF PDQXDOV IRU XVHDFURVVWKH',&*URXSLQWKHHYHQWRIDPDMRUGLVDVWHU',&KDVIRUPXODWHG%&3V
IRU LQGLYLGXDO SURGXFW GLYLVLRQV 7KH *URXS DOVR UHFRJQL]HV WKH QHHG WR HQVXUH
LWFDQIXOILOOLWVVXSSO\UHVSRQVLELOLWLHVLQWKHHYHQWRIGDPDJHWRLWVIDFLOLWLHVIURPD ODUJHVFDOH QDWXUDO GLVDVWHU DQG WKXV LQFRUSRUDWHV WKLV SHUVSHFWLYH LQWR LWV%&3V 6SHFLILFDOO\ WKH *URXS IRUPXODWHV %&3V IRU NH\ SURGXFWV ZLWK D YLHZ WR
IXOILOOLQJ LWV VRFLDO UHVSRQVLELOLW\ DQG UHVSRQGLQJ WR FXVWRPHU UHTXLUHPHQWV ',&
DOVRFRQGXFWV%&3IRFXVHGMRLQWSURGXFWLRQGLYLVLRQ±VLWHH[HUFLVHVDVVXPLQJWKH
LPSOHPHQWDWLRQRIWKHVH%&3VWRFRQILUPWKHHIIHFWLYHQHVVRIPDQXDOVLGHQWLI\LVVXHVDQGLPSOHPHQWRQJRLQJLPSURYHPHQWVThe DIC WAY
Common across the DIC Group

Basic sustainability policy
Risk management policy

Rules for managing
emergency supplies

Rules for crisis management in
the event of a major natural orother disaster

Site and subsidiary rules/
regulations, firefighting plans, etc.
Site-specific

Task force manuals

BCM system manuals

Production division–specificGroup company–specific

Product division
BCP manuals

Group company
BCP manuals| BCM in Fiscal Year 2021
:KLOH¿VFDO\HDUZDVWKHVHFRQGFRQVHFXWLYH\HDULQZKLFKWKH',&*URXSGLGQRWVXIIHUVLJQL¿FDQWGDPDJHIURPQDWXUDOGLVDVWHUVGHFLVLYHVWHSVZHUHRQFH
DJDLQUHTXLUHGWRFXUEWKHVSUHDGRI&29,'DQGWKH*URXSFRQWLQXHGZRUNLQJWRLPSOHPHQWHIIHFWLYHPHDVXUHVLQUHVSRQVHWRHYROYLQJFLUFXPVWDQFHV
5HVSRQGLQJHIIHFWLYHO\WRDFFLGHQWVDQGGLVDVWHUVGHSHQGVRQHPSOR\HHVKDYLQJDFRUUHFWXQGHUVWDQGLQJRI%&0DQGRIKRZWRSURSHUO\H[HFXWH',&¶V%&3V7KLVLQ
WXUQUHTXLUHVHGXFDWLRQDQGWUDLQLQJ,QDQDYHUDJH\HDUWUDLQLQJLQFOXGHVFRQGXFWLQJZRUNVKRSVDQGPDSEDVHGVLPXODWLRQH[HUFLVHV²RULJLQDOO\GHYHORSHGIRUVHQLRUPDQDJHPHQW²IRUKHDGTXDUWHUVWDVNIRUFHPHPEHUVXQGHUWKHVXSHUYLVLRQDQGJXLGDQFHRIH[SHUWVDVZHOODV%&3IRFXVHGMRLQWSURGXFWLRQGLYLVLRQ±VLWHH[HUFLVHV,Q¿VFDO\HDU',&IXOO\GHSOR\HGWKH',&%&3RUWDODGHGLFDWHGSRUWDOV\VWHPWRDOORZWKHVKDULQJRILQIRUPDWLRQDPRQJWKHKHDGTXDUWHUVWDVNIRUFH
SURGXFWLRQGLYLVLRQVDQGVLWHVLQWKHHYHQWRIDQDFFLGHQWRUGLVDVWHU7KH\HDU¶VKHDGTXDUWHUVWDVNIRUFHWUDLQLQJZDVEDVHGRQDVFHQDULRDVVXPLQJWKHZLGHVSUHDGXVHRIWHOHZRUNDUUDQJHPHQWVPDNLQJLWQHFHVVDU\IRUWKHWDVNIRUFHWRRSHUDWHH[FOXVLYHO\YLDRQOLQHPHHWLQJVDQGLQYROYHGOLQNLQJWKHWDVNIRUFHZLWKPXOWLSOH
SURGXFWLRQIDFLOLWLHVEUDQFKHVDQGRWKHUVLWHVDQGXVLQJWKH*URXS¶VZHEFRQIHUHQFLQJV\VWHPLQWDQGHPZLWKWKH',&%&3RUWDOWRHQVXUHWKHVPRRWKRQOLQHVKDULQJ
RILQIRUPDWLRQLQWKHHYHQWRIDGLVDVWHUDIC Report 2022

73

BCM and Crisis Management| Improving the Effectiveness of BCPs and Preventing Them from Becoming Mere Formalities
7KH',&*URXSZRUNVWRUH¿QHWKHIRUPDWRILWV%&3VWRSUHYHQWWKHPIURPEHFRPLQJPHUHIRUPDOLWLHV,Q¿VFDO\HDUWKH*URXSDGMXVWHGLWV%&3
IRUPDWWDNLQJLQWRDFFRXQWWKHIXWXUHHYROXWLRQRI*URXSFRPSDQLHVWRFRPSO\ZLWKWKHUHTXLUHPHQWVRI,62WKH,QWHUQDWLRQDO2UJDQL]DWLRQIRU
6WDQGDUGL]DWLRQ¶VVWDQGDUGIRUEXVLQHVVFRQWLQXLW\PDQDJHPHQWV\VWHPV:LWKWKHDLPRIEULQJLQJLWV%&3VFORVHULQOLQHZLWKWKH,62VWDQGDUGWKH*URXSLQFRUSRUDWHGPHDVXUHVWRFRXQWHULVVXHVWKDWREVWUXFWEXVLQHVVFRQWLQXLW\7KH',&*URXSDOVRFRQGXFWVDQQXDOVWDWXVXSGDWHPHHWLQJVDWWHQGHGE\UHOHYDQWH[HFXWLYHVWRYHULI\WKDWWKHFRQWHQWRILQGLYLGXDOSURGXFWGLYLVLRQ%&3V
WRHQVXUHWKH\UHPDLQUHOHYDQW7KH¿VFDO\HDUVWDWXVXSGDWHPHHWLQJLQFOXGHGH[DPLQLQJPHDVXUHVIRUFRXQWHULQJLVVXHVWKDWREVWUXFWEXVLQHVVFRQWLQXLW\DQGFRQ¿UPLQJXSGDWHV

| Conducting Emergency Response Exercises and Drills,QDGGLWLRQWRDQQXDOKHDGTXDUWHUVWDVNIRUFH±OHGWUDLQLQJWKH',&*URXSKDVGHYHORSHGDQGZRUNVWRPDLQWDLQDV\VWHPGHVLJQHGWRHQVXUHLWVDELOLW\WR
PLQLPL]HGDPDJHLQWKHHYHQWRIDGLVDVWHUDVZHOODVWRIDFLOLWDWHWKHVZLIWUHVWRUDWLRQRIRSHUDWLRQV7KLVV\VWHPLQFOXGHVDZLGHUDQJHRIH[HUFLVHVDQG
GULOOVLQFOXGLQJHPSOR\HHVDIHW\FRQ¿UPDWLRQUHSRUWGULOOVVLWHWRVLWHHPHUJHQF\UDGLRZDUQLQJGULOOVDQGVLWHVSHFL¿FFRPSUHKHQVLYHGLVDVWHUGULOOV7KH
DIRUHPHQWLRQHGKHDGTXDUWHUVWDVNIRUFH±OHGWUDLQLQJXVHGDVFHQDULRLQYROYLQJDGLVDVWHURFFXUULQJDWDWLPHZKHQPDQ\RI¿FHUVDQGHPSOR\HHVZHUHPDNLQJXVHRIWHOHZRUNDUUDQJHPHQWVZLWKDOOFRUSRUDWHKHDGTXDUWHUV±EDVHGH[HFXWLYHRI¿FHUVSDUWLFLSDWLQJRQOLQHWRHQVXUHWKHKHDGTXDUWHUVWDVNIRUFH¶VDELOLW\WRIXQFWLRQHYHQLQDVLWXDWLRQZKHUHWHOHZRUNLVWKHQRUP7KH*URXSLVDOVRFXUUHQWO\GHYHORSLQJDSURJUDPWRWUDLQVLWHHPSOR\HHVLQWKHXVHRIWKH
QHZO\GHSOR\HG',&%&3RUWDOWRIDFLOLWDWHLWVLQFRUSRUDWLRQLQWRGULOOVFRQGXFWHGDWVLWHV

&RPSUHKHQVLYHGLVDVWHUGULOODWFRUSRUDWHKHDGTXDUWHUV

7DVNIRUFHPDSEDVHGVLPXODWLRQH[HUFLVH%&3WUDLQLQJDWFRUSRUDWHKHDGTXDUWHUV| Crisis Management
Efforts to Reinforce Safety Measures Overseas
2ZLQJWRWKHH[SDQVLRQRILWVJOREDORSHUDWLRQVWKH',&*URXSFRQWLQXHVWRHVWDEOLVKQHZRYHUVHDVEDVHVDQGWRH[SDQGWKHQXPEHURIHPSOR\HHVEHLQJDVVLJQHG
WRRYHUVHDVSRVWVRUWUDYHOLQJRYHUVHDVRQEXVLQHVV*LYHQWKHLQFUHDVLQJULVNSRVHGE\WHUURULVWDWWDFNVLQVXUJHQFLHVDQGLQIHFWLRXVGLVHDVHRXWEUHDNVDPRQJRWKHUVWKH*URXSKDVSUHSDUHGDPDQXDOIRUXVHE\HPSOR\HHVWDNLQJXSQHZRYHUVHDVSRVWV7KH*URXSUHFHQWO\UHYLVHGWKLVPDQXDOIRFXVLQJRQVHFWLRQVUHODWHGWRUHVSRQGLQJWRLQIHFWLRXVGLVHDVHVWRDVVXPHYDULRXVQHZRXWEUHDNV

6DIHW\WUDLQLQJIRUHPSOR\HHVSULRUWRWDNLQJXSQHZRYHUVHDVSRVWV

6DIHW\KDQGERRNIRULQGLYLGXDOVWDNLQJEXVLQHVVWULSVRYHUVHDV

6DIHW\WUDLQLQJIRULQGLYLGXDOVSULRUWRWUDYHOLQJRYHUVHDVRQEXVLQHVV

DIC Report 2022

74

Safety handbook for Company
UHSUHVHQWDWLYHVSRVWHGRYHUVHDVBCM and Crisis Management| Community Efforts to Cope with Major Disasters-DSDQLVRQHRIWKHPRVWHDUWKTXDNHSURQHFRXQWULHVLQWKHZRUOGDQGKDVEHHQVWUXFNPXOWLSOHWLPHVE\GHYDVWDWLQJVHLVPLFDFWLYLW\$VDFRQVHTXHQFHHQVXULQJHDUWKTXDNHUHDGLQHVVWKDWLVWKHDELOLW\WRSUHYHQWDQGPLWLJDWHWKHLPSDFWRIHDUWKTXDNHVLVUHFRJQL]HGDVDFULWLFDOFKDOOHQJHIRUVRFLHW\DVDZKROH7RN\R¶V1LKRQEDVKLGLVWULFWKRPHWR',&¶VFRUSRUDWHKHDGTXDUWHUVLVQRWHGIRULWVWLJKWO\FOXVWHUHGODUJHFRPPHUFLDOFRPSOH[HVDQGRI¿FHEXLOGLQJV$
FRPSUHKHQVLYHQHLJKERUKRRGGLVDVWHUGULOOLVFRQGXFWHGDQQXDOO\RQDQHPSW\ORWQHDUWKH',&%XLOGLQJEXWJLYHQWKHUDSLGVSUHDGRI&29,'LQWKH
GULOOZDVUHSODFHGE\GLVDVWHUUHVSRQVHWUDLQLQJSURYLGHGE\WKH¿UHGHSDUWPHQWLQFKDUJHRIWKHGULOOZLWKWKHDLPRIPDLQWDLQLQJH[LVWLQJNQRZKRZDQGVNLOOVThe DIC Building, designed with state-of-the-art earthquake-resistant technologies, has been designated as a temporary shelter for people stranded
LQ&KXRNXWKHZDUGLQZKLFK1LKRQEDVKLLVORFDWHGZKLOH',&DVDPHPEHURI&KXRNX¶VPDQDJHPHQWFRXQFLOIRUHPHUJHQF\VKHOWHUVIRUVWUDQGHG
LQGLYLGXDOVSURPRWHVDYDULHW\RILQLWLDWLYHVDLPHGDWDVVLVWLQJSHRSOHVWUDQGHGLQWKHZDNHRIDVHULRXVHDUWKTXDNHRURWKHUGLVDVWHU7KH&RPSDQ\DOVRSDUWLFLSDWHVLQGULOOVLQFROODERUDWLRQZLWKORFDODXWKRULWLHVGHVLJQHGWRJXDUDQWHHWKHHIIHFWLYHVKDULQJRILQIRUPDWLRQUHJDUGLQJHYDFXDWLRQVDPRQJRWKHUV
HYHQLQWKHPLGVWRISRVWGLVDVWHUFKDRV',&ZLOOFRQWLQXHWRSOD\DQDFWLYHUROHLQFRPPXQLW\EDVHGHIIRUWVWRUHLQIRUFHORFDOGLVDVWHUSUHSDUDWLRQV,QGRLQJ
VRWKH&RPSDQ\DLPVWRKHOSHQVXUH7RN\R¶VGLVDVWHUUHVLOLHQFH

Emergency training in the use of
AEDs and hemostasis

7UDLQLQJLQWKHXVHRI¿UHK\GUDQWVWRH[WLQJXLVK¿UHV([KLELWRI',&%XLOGLQJWHPSRUDU\VKHOWHU Map-based training conducted as part offor people stranded in Nihonbashi
a community disaster drill| Responding to New Infectious Diseases',&KDVSUHSDUHGDKHDGTXDUWHUVWDVNIRUFHPDQXDODQGSURGXFWGLYLVLRQ%&3VIRUUHVSRQGLQJWRLQIHFWLRXVGLVHDVHVWRJXDUDQWHHLWLVIXOO\SUHSDUHGWRUHVSRQGWRSDQGHPLFVZKHQWKH\RFFXU+RZHYHUEHFDXVHWKHVHDVVXPHGRXWEUHDNVRIQHZVWUDLQVRILQÀXHQ]DWKH\SURYHGLQDGHTXDWHLQGHDOLQJZLWK
&29,'$FFRUGLQJO\WKHKHDGTXDUWHUVWDVNIRUFHPDQXDOZDVUHYLVHGVLJQL¿FDQWO\DVZDVWKHIRUPDWIRU%&3VWRLQFOXGHJHQHUDODQGXQLYHUVDOPHDVXUHVGHVLJQHGWRFRSHZLWKQHZLQIHFWLRXVGLVHDVHVRWKHUWKDQLQÀXHQ]D,Q¿VFDO\HDU',&FRQWLQXHGWRSURPRWHDFWLRQVGHVLJQHGWRKHOSWKZDUWWKHIXUWKHUVSUHDGRI&29,'DQGSURWHFWHPSOR\HHVIURPLQIHFWLRQ7KHVH
LQFOXGHGPDLQWDLQLQJLWVSURKLELWLRQRQEXVLQHVVWULSVZRUOGZLGHHQFRXUDJLQJHPSOR\HHVWRPDNHXVHRIWHOHZRUNDUUDQJHPHQWVLQFOXGLQJE\QRUPDOO\LQHOLJLEOHWHPSRUDU\VWDIIVWDJJHULQJZRUNLQJKRXUVIRUWKRVHHPSOR\HHVZKRVHZRUNUHTXLUHVWKHPWREHRQVLWHPDQGDWLQJLQGLYLGXDOVUHPDLQDWKRPHZKHQ
WKH\RUDQ\RIWKHSHRSOHWKH\OLYHZLWKIHHOXQZHOODQGDYRLGLQJKROGLQJPHHWLQJVDQGHYHQWVComment We built an internal information sharing and communication system that will ensure thesmooth communication of instructions in the event of a disaster or accident.

,QIRFRP&RUSRUDWLRQ¶VFULVLVPDQDJHPHQWEXVLQHVVRIIHUVWKH%&3RUWDOLQIRUPDWLRQPDQDJHPHQWSRUWDOV\VWHPDFRPPXQLFDWLRQWRROWKDWDGGUHVVHVWKHQHHG
WRVZLIWO\DQGDFFXUDWHO\JUDVSDQGVKDUHLQIRUPDWLRQRQGDPDJHVXIIHUHGLQWKHHYHQWRIDGLVDVWHURUDFFLGHQWWRFRPSDQLHVDQGPXQLFLSDOLWLHVDFURVV-DSDQ$IWHUVLJQLQJDQDJUHHPHQWZLWK',&LQWRGHYHORSDFXVWRPL]HGYHUVLRQRIWKLVV\VWHPWKH',&%33RUWDOV\VWHPEHFDPHIXOO\RSHUDWLRQDOLQ
,QEXLOGLQJWKH',&%&3RUWDOV\VWHPZHSDLGSDUWLFXODUDWWHQWLRQWRQHHGVHQJHQGHUHGE\WKH&RPSDQ\¶VIDUÀXQJQHWZRUNRISURGXFWLRQEDVHVDQG
RSHUDWLRQDOUXOHV:HVRXJKWWRFXVWRPL]HWKHV\VWHPIURPWKHXVHU¶VSHUVSHFWLYHLQFOXGLQJE\DGMXVWLQJWKHKRPHVFUHHQDQGWDLORULQJRUGHURILQSXW¿HOGVWRHQVXUHVXSHULRUSUDFWLFDOLW\0DQDJHPHQWSDUWLFLSDWHGDFWLYHO\LQWKHVXEVHTXHQWKHDGTXDUWHUVWDVNIRUFH±OHGWUDLQLQJLQFRUSRUDWLQJWKH',&%&3RUWDOV\VWHPWRHQVXUHLWVHIIHFWLYHGHSOR\PHQWDQG,IRXQGP\VHOILPSUHVVHGE\WKHKLJKOHYHORIFULVLVPDQDJHPHQWDZDUHQHVVWKURXJKRXWWKHHQWLUH&RPSDQ\,ORRNIRUZDUGWRVHHLQJ',&H[SDQGGHSOR\PHQWRIWKLVV\VWHPDQGWKDWLWZLOOKHOSIXUWKHUEROVWHUWKH&RPSDQ\¶VFULVLVPDQDJHPHQWFDSDELOLWLHVLQWKH\HDUVDKHDG
Certiﬁed Business Continuity Specialist Grade II, Crisis Management Department, Infocom Corporation

DIC Report 2022

75

Yukikazu Hayasaka

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

Establish a global information
security framework.

Goals for fiscal year 2021

Achievements in fiscal year 2021

Reinforce the security infrastructure and set
or update various standards in preparation
for the full-scale transition to a cloud-based
information system.

・Efforts to reinforce the security infrastructure to
improve convenience while ensuring security inremote access environments were completed.
・Site networks were strengthened and expanded
in response to the expansion of remote andhybrid work arrangements.
・An information security risk assessment was
conducted by a third-party organization. The
effectiveness of steps taken in response to
the expansion of cloud-based information
systems and diverse work styles, including
remote work, was confirmed and a road map
was devised based on an analysis of risks.

Basic Approach to Information Security
The DIC Group has positioned information security as a key management
priority and established a Basic Policy on Information Security, which isfounded on its recognition that protecting information assets that belong toor are managed by the Group is essential to its ability to conduct business.
,QOLQHZLWKWKLVSROLF\',&KDVIRUPXODWHGDQGLPSOHPHQWHGFRQ¿GHQWLDO
information management regulations and information management
guidelines. The DIC Group works to ensure that directors and employees
use the Group’s information assets appropriately in the course of business
DQGDSSURSULDWHO\KDQGOHFRQ¿GHQWLDOLQIRUPDWLRQ7KH*URXSDOVRSXUVXHVFRQWLQXRXVLPSURYHPHQWVE\FRQGXFWLQJLQWHUQDODXGLWVWRFRQ¿UPFXUUHQW
issues and identify risks.

| Globally Maintaining and Enhancing Information Security

Evaluation

Goals for fiscal year 2022★★

In light of the results of the information
security risk assessment, formulate andimplement security measures, BCPs andemergency response drills appropriate for a
cloud-based information system.

Employeetraining/
drillsStrengthening of
measures tocombat targetedcyber attacks

Further
improvements

Response to the
expanded use ofdigital technologies

Response to the shift tocloud-based computing

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

The DIC Group’s approach to information security management rests on four pillars: Regulations and guidelines, management framework, infrastructure, and employee educationand training. To ensure swift responses to increasingly diverse cyber threats, the Group currently plans to deploy measures implemented in Japan to reinforce information security
E\HQKDQFLQJLWVLQWUDQHWVHFXULW\LQIUDVWUXFWXUHDQGXSGDWLQJHQGSRLQWVHFXULW\V\VWHPVLQNH\RYHUVHDVPDUNHWV WKH$VLD±3DFL¿FUHJLRQWKH35&7DLZDQDQGWKH52.
Regulations and Guidelines
In line with its Basic Policy on Information Security, the DIC Group updates its confidential information management regulations, which stipulate the scope ofmanagement and related standards, rules and responsibilities, as well as its information management guidelines, which outline implementation procedures, on aregular basis and as required to ensure its ability to address new security risks in a timely manner.
The Group also creates new and revises existing rules as appropriate in response to the increasing prevalence of digital technologies and the shift to cloud-based
FRPSXWLQJ,Q¿VFDO\HDULQUHVSRQVHWRZLGHVSUHDGPRYHVWRGLVFRQWLQXHWKHSUDFWLFHRIVHQGLQJSDVVZRUGSURWHFWHGHQFU\SWHGDWWDFKPHQWVLQDQHPDLODQG
WKHQVHQGLQJDSDVVZRUGWRXQ]LSWKH¿OHLQDVHFRQGHPDLO GXEEHG³33$3´ DVHFXULW\PHDVXUHSUHYLRXVO\SRSXODUZLWK-DSDQHVHFRPSDQLHVWKH*URXSUHYLVHG
UHODWHGPHDVXUHVDQGFRUUHVSRQGLQJJXLGHOLQHV(QIRUFHPHQWRIWKHQHZPHDVXUHVDQGJXLGHOLQHVFRPPHQFHGLQ-DQXDU\
33$3LVDQDFURQ\PIRU³3DVVZRUGSURWHFWHG¿OH´³3DVVZRUG´³Angoka ³HQFU\SWLRQ´LQ-DSDQHVH DQG3URWRFRO´-DSDQHVHFRPSDQLHVKDYHEHHQHQFRXUDJHGWRGLVFRQWLQXHWKHSUDFWLFHIRUVHFXULW\UHDVRQVManagement Framework
7KH,QIRUPDWLRQ6HFXULW\&RPPLWWHHZKLFKLVOHGE\WKHKHDGRIWKH,7VWUDWHJ\XQLWPHHWVUHJXODUO\ WZLFHDQQXDOO\ DVSDUWRIDV\VWHPWRIDFLOLWDWHWKHWLPHO\XSGDWHRI
rules and guidelines to accommodate new technologies and risks, and to ensure changes are communicated effectively across the DIC Group. The committee formulates
annual targets and initiatives for strengthening information security with the approval of the Sustainability Committee and manages the progress of related efforts. The
Group is currently exploring the idea of establishing a system for ensuring information security for the entire global DIC Group, including Sun Chemical.
DIC Report 2022

76

Information Security

Infrastructure
Against a backdrop of increasingly active and sophisticated cyber attacks, including ransomware and targeted threats, the DIC Group is working to
respond to rapid changes in working environments attributable to work style reforms, including the expansion of remote work and the increased use of
FORXGEDVHGVHUYLFHV,Q¿VFDO\HDUWKH*URXSFRQWUDFWHGDWKLUGSDUW\RUJDQL]DWLRQWRFRQGXFWDULVNDVVHVVPHQWWRHYDOXDWHWKHHIIHFWLYHQHVVDQG
comprehensiveness of its information security measures from a multifaceted perspective. Based on the results of this assessment, the Group will formulate
DURDGPDSIRULQIRUPDWLRQVHFXULW\ZLWKWKHDLPRIUHVSRQGLQJÀH[LEO\DQGDSSURSULDWHO\WRHPHUJLQJF\EHUULVNVWKHUHE\SHUPDQHQWO\UHGXFLQJULVNVWRLWV
businesses and management.
Employee Education and Training
7KH',&*URXSRIIHUVDQLQIRUPDWLRQVHFXULW\HOHDUQLQJSURJUDPWRHPSOR\HHVLQ-DSDQWKH$VLD±3DFL¿FUHJLRQDQGWKH$PHULFDVDQG(XURSHLQZKLFKPRUHWKDQRIHOLJLEOHHPSOR\HHVWDNHSDUW7KH*URXSDOVRSURYLGHVWUDLQLQJGHDOLQJZLWKWDUJHWHGHPDLODWWDFNVWRLQFUHDVHHPSOR\HHV¶DZDUHQHVVRIVHFXULW\,QUHVSRQVHWRWKHSRVWSDQGHPLF³QHZQRUPDO´WKH*URXSLVFXUUHQWO\IRUPXODWLQJJXLGHOLQHVWKDWDFFRPPRGDWHQHZZRUNVW\OHVQRWDEO\WHOHZRUN
which it will work to disseminate to employees worldwide.

DIC Report 2022

77

Environment, Safety and Health (ESH)

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

Toward the Achievement of a Sustainable Society

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

| Initiatives to Date
As a global organization that manufactures and sells chemical substances, the DIC Group promotes abroad range of ESH initiatives through its Responsible Care program. Having established its Principle andPolicy for the Environment, Safety and Health in 1992, in 1995 DIC pledged to implement the precepts
RI5HVSRQVLEOH&DUH6LQFHUHDI¿UPLQJLWVVXSSRUWIRU5HVSRQVLEOH&DUHPDQDJHPHQWLQ-DQXDU\
by signing the CEO’s Declaration of Support for the Responsible Care Global Charter, the Company has
promoted constant improvements. Today, the Group manages its Responsible Care program in a uniform
manner using standardized codes, guided by its Environment, Safety and Health Policy, and works to
implement initiatives that exceed regulatory requirements, in line with annual Responsible Care activity
plans, and to fully disclose the results thereof.
Note: Responsible Care describes voluntary management initiatives undertaken by companies that manufacture or otherwise handle chemical
substances, in line with the principles of autonomous action and self-assessment, pledging in their management policies to protecting theenvironment and ensuring health and safety across the entire life cycle of products, from development to manufacturing, distribution, use
and end-of-life disposal, as well as to disclosing related information and promoting improvements.

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

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

| Responsible Care Codes
The DIC Group manages its Responsible Care program in accordance with seven codes:* “Occupational safety and health” (protection of the safety
DQGKHDOWKRIHPSOR\HHV ³GLVDVWHUSUHYHQWLRQ´ SUHYHQWLRQRI¿UHVH[SORVLRQVDQGWKHGLVFKDUJHRIFKHPLFDOV ³HQYLURQPHQWDOSURWHFWLRQ´ FRQWLQXRXV
reduction of chemical emissions and the discharge of waste), “safety in logistics” (reduction of chemical risks associated with the distribution ofchemicals), “chemical substance safety” (management of risks associated with chemicals), “dialogue with society” (communication with local
FRPPXQLWLHVUHJDUGLQJ(6+ DQG³PDQDJHPHQWV\VWHPV´ V\VWHPVWKDWHQVXUHWKHXQLIRUPDGPLQLVWUDWLRQRIWKH¿UVWVL[FRGHV 7KH*URXSDSSOLHVthe PCDA cycle to ensure ongoing improvements, while also conducting annual internal audits and management reviews.
7KHVHYHQ5HVSRQVLEOH&DUHFRGHVZHUHGHYHORSHGE\WKH-DSDQ5HVSRQVLEOH&DUH&RXQFLO -5&& ZKLFKLVSDUWRIWKH-DSDQ&KHPLFDO,QGXVWU\$VVRFLDWLRQ -&,$ DVDIUDPHZRUNIRU
Responsible Care programs with the goal of helping achieve a society that supports efforts to address ESH-related initiatives.

DIC Report 2022

78

ESH

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

Page 82❷ 'LVDVWHUSUHYHQWLRQ SUHYHQWLRQRI¿UHVH[SORVLRQVDQGWKHGLVFKDUJHRIFKHPLFDOVPage 87❸ Environmental protection (continuous reduction of chemical emissions and the discharge of waste)

Page 88❹ Safety in logistics (reduction of chemical risks associated with the distribution of chemicals)

Page 99❺ Chemical substance safety (management of risks associated with chemicals)

Page 

❻ Dialogue with society (communication with local communities regarding ESH)

Page 

❼ Management system (ensure the uniform administration of the above six codes)

Page 

Audits andreviews
conducted
bymanagement

Act

Check

Responsible Care
Initiatives
Improve

Do

Plan

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

| Responsible Care Education
As a company that manufactures and sells chemical substances, DIC incorporates education regarding the importance of Groupwide Responsible&DUHHIIRUWVLQWRWUDLQLQJIRUQHZHPSOR\HHV ERWKQHZJUDGXDWHVDQGPLGFDUHHUKLUHV 2QJRLQJHGXFDWLRQLVSURYLGHGDVSDUWRIUDQNVSHFL¿F
training for newly promoted employees.

| Framework for Promoting Responsible Care

Framework for Promoting Responsible Care

The Sustainability Committee, which answers directly to thepresident and CEO, is responsible for setting Responsible Careinitiatives. Currently chaired by the president and CEO, thecommittee includes business group presidents, administrative
unit heads, CEOs of regional headquarters and members of the
Audit & Supervisory Board. The committee formulates Groupwide
sustainability targets and policies, as well as deliberates andevaluates medium-term sustainability policies and annual
sustainability initiatives. The PDCA cycle is used to evaluate
voluntary Responsible Care initiatives implemented by Group
companies, plants and R&D facilities in collaboration with the
Safety and Environment Group. The Responsible Care Department
provides support to ensure the smooth progress of these initiatives
and conducts audits to ensure compliance and improve safety andenvironmental performance.

Sustainability Committee

Production
Management Unit

Technical
Management Unit

Responsible Care Department
Support for ESH audits
Production and R&D facilities
Safety and Environment Group

Product division
Individuals in charge of
Responsible Care

Technical

Individuals in charge of
Responsible Care

Production

Product division

Product division
Individuals in charge of
Responsible Care

| Deployment of Responsible Care Initiatives at Group Companies
7KH5HVSRQVLEOH&DUH'HSDUWPHQWSURYLGHVZLGHUDQJLQJVXSSRUWWR',&*URXSFRPSDQLHVLQ-DSDQDQGRYHUVHDVUHJDUGOHVVRIRSHUDWLQJVFDOHZLWKthe goal of enhancing Responsible Care initiatives Groupwide. Of particular note, the department assigns representatives to assist regional headquarters
RYHUVHHLQJ*URXSRSHUDWLRQVLQ*UHDWHU&KLQDDQGWKH$VLD±3DFL¿FUHJLRQDVZHOODVVXSSRUWVORFDOLQLWLDWLYHVWRIRVWHUKXPDQUHVRXUFHV

1

Initiatives in Japan

7KH',&*URXSKDVFRPSDQLHVDQGVLWHVLQ-DSDQ6DIHW\DQG(QYLURQPHQWJURXSVKDYHEHHQHVWDEOLVKHGDWHDFKVLWHZKLFKDUHRYHUVHHQE\WKH
5HVSRQVLEOH&DUH'HSDUWPHQW',&DQG',&*UDSKLFVKROG*0FRQIHUHQFHVZKLFKDUHJDWKHULQJVRI(6+RI¿FHUVIURPSULQFLSDOVLWHVZKRKDYHEHHQ
appointed group managers (GMs), four times a year. Other domestic Group companies participate in twice-annual Responsible Care conferences. Thesevarious conferences facilitate the discussion of efforts to prevent accidents and disasters, share information on environmental challenges and ensurecommon awareness of Groupwide rules.

DIC Report 2022

79

ESH

2

,QLWLDWLYHVLQWKH$VLD²3DFLÀF5HJLRQ)UDPHZRUNIRU3URPRWLQJ(6+LQWKH$VLD²3DFLÀF5HJLRQThe DIC Group has 17 companies and 23 sites across the Asia–Pacific region.
DIC has installed ESH country heads (individuals in charge of ESH initiatives)
LQFRXQWULHVDQGWHUULWRULHVLQWKHUHJLRQXQGHUWKHVXSHUYLVLRQRIDUHJLRQDOESH director, who has been installed at DIC Asia Pacific, the Group’s regional
headquarters, in Singapore. An annual conference and regular quarterly meetings
involving the Responsible Care Department in Tokyo, the regional ESH director
and the ESH country heads are held to ensure effective communication. The
Responsible Care Department has also dispatched an ESH manager from corporate
headquarters to provide on-site guidance. Country heads hold country- and
WHUULWRU\VSHFL¿FPHHWLQJVSHULRGLFDOO\WRFRQVLGHULQLWLDWLYHVWDUJHWVDQGFKDOOHQJHV7KHHGLWLRQRIWKH',&$VLD±3DFLILF5HJLRQ$QQXDO(6+&RQIHUHQFH
was held in December, but rather than gathering in Singapore as usual ESH
FRXQWU\KHDGVVLWH(6+RI¿FHUVWKHUHJLRQDO(6+GLUHFWRUDQG5HVSRQVLEOH&DUH
Department staff congregated online. Participants discussed ESH policies, targets
DQGFKDOOHQJHVDVZHOODVHQHUJ\VDYLQJLQYHVWPHQWVIRU¿VFDO\HDU
3

Regional ESH Director for Asia‒Paciﬁc region
Regional ESH Manager for Asia‒Paciﬁc region

DIC Asia Paciﬁc Pte Ltd

ESH
country head

ESH
country head

ESH
country head

ESH
country head

ESH
country head

India

Oceania
Australia
New
ZealandThailand

Malaysia

Indonesia

Philippines
VietnamSingapore
Sri Lanka
Pakistan

Initiatives in Greater China

In Greater China, the DIC Group has 17 companies and 18 sites. DIC has installed a regional ESH director at DIC China, the Group’s regional headquarters,in Shanghai. The Company has also reinforced its regional ESH framework by assigning ESH coordinators to oversee efforts in the southern and easternparts of the country. An annual conference and regular teleconferences involving the Responsible Care Department in Tokyo, the regional ESH director andthe ESH coordinators are held to ensure effective communication. The Responsible Care Department has also dispatched an ESH manager from corporate
headquarters to provide on-site guidance.
7KHHGLWLRQRIWKH*UHDWHU&KLQD$QQXDO(6+DQG(QHUJ\&RQVHUYDWLRQ&RQIHUHQFHZDVKHOGLQ1RYHPEHU%HFDXVHRI&29,'WKHFRQIHUHQFH
ZDVKHOGRQOLQH3DUWLFLSDQWVZKLFKLQFOXGHGJHQHUDOPDQDJHUVIURPUHJLRQDO*URXSFRPSDQLHVVLWH(6+RI¿FHUVDQG5HVSRQVLEOH&DUH'HSDUWPHQWVWDIIFRQ¿UPHGWKHSURJUHVVRI5HVSRQVLEOH&DUHLQLWLDWLYHVDQGGLVFXVVHGFKDOOHQJHVDQGIXWXUHGLUHFWLRQVTOPICSDIC (China) Conducts Seminar to Improve DIC Group Safety Management Across Greater China)URP1RYHPEHU±',& &KLQD ¶V(6+WHDPFRQGXFWHGDVHPLQDUDW',&6\QWKHWLF5HVLQV =KRQJVKDQ &R/WGDVSDUWRIDQRQJRLQJHIIRUWWREXLOGDFXOWXUH
RIVDIHW\DQGLPSURYHOHDGHUVKLSDQGVNLOOVLQWKHDUHDRIVDIHW\PDQDJHPHQW7KH¿VFDO\HDUVHPLQDUFRPSULVHGFRXUVHVXQGHUWKUHHKHDGLQJV³0DQDJHPHQWDQG
communication,” “environmental management” and “experiences implementing ESH management
best practices.”
In the management and communication course, in particular, efforts focused on group
discussions and role playing with the aim of ensuring the effectiveness of management processes.
The environmental management course provided detailed explanations of arcane related laws
and regulations to deepen understanding of strategies for and key aspects of environmental
management over the life cycle of production equipment. The third course, which looked at ESH
management best practices, centered on risk management, the securing of work permits, contractor
administration and other day-to-day ESH activities, reaffirming the importance of leadership tosafety management. Going forward, the DIC Group in Greater China pledges to continue working to
3DUWLFLSDQWVLQWKHVDIHW\PDQDJHPHQWVHPLQDUDW',&6\QWKHWLF5HVLQV =KRQJVKDQ
improve safety management capabilities across the region.

4

Initiatives in the Americas, Europe and Africa

The Sun Chemical Group oversees all Responsible Care initiatives by DIC Group companies in the Americas, Europe and Africa. With the aim of ensuringthat the DIC Group’s ESH policy and its values are shared by all, the Responsible Care Department in Tokyo holds periodic online conferences and ESH
manager meetings with local Responsible Care staff. The Responsible Care initiatives of the Colors & Effects Group, the acquisition of which was completed
LQ-XO\DUHDOVRRYHUVHHQE\WKH6XQ&KHPLFDO*URXSDIC Report 2022

80

ESH

| Annual Activity Plans
The DIC Group formulates an annual Responsible Care Activity Plan and oversees Groupwide initiatives. Based on the Group’s annual plan, which is
SUHSDUHGE\WKH5HVSRQVLEOH&DUH'HSDUWPHQWUHJLRQDOKHDGTXDUWHUVGHYHORSWKHLURZQUHJLRQVSHFL¿FDFWLYLW\SODQVZKLOHLQGLYLGXDO*URXSFRPSDQLHVLQ
line with the concept of management by objectives (MBO), translates these plans into reality by promoting a variety of Responsible Care initiatives.

| The DIC Group’s Annual Responsible Care Activity Plans for Fiscal Year 2021
❶ Occupational safety and health

The DIC Group’s fundamental objective remains the achievement of an accident-free workplace. With this in mind, set regionaltargets for total recordable incident rate (TRIR)*1LQ¿VFDO\HDUDQGLPSOHPHQWUHODWHGLQLWLDWLYHV
❷ Disaster prevention

Encourage the horizontal deployment of measures based on the lessons learned from past major accidents and take steps toprevent their recurrence.
 $GYDQFHPHDVXUHVWRFRSHZLWKVWDWLFHOHFWULFLW\DQGPDQDJHGDQJHURXVJRRGV LQFOXGLQJLQVWDOOLQJ¿UH¿JKWLQJDQGVHFXULW\HTXLSPHQW (2) Promote subcontractor and project management initiatives.
❸ Environmental protection

・Respond to climate change–related challenges (prevent global warming)(1) Achieve target for the reduction of CO2 emissions. Implement the following measures with the aim of achieving DIC’s global target for
the reduction of CO2HPLVVLRQV 6FRSHDQG  IURPWKH¿VFDO\HDUOHYHOE\¿VFDO\HDU (a) Step up energy-saving initiatives at sites.
(b) Further encourage the use of energy from renewable sources.
 F 0DNHDFWLYHXVHRIDQG¿UPO\HVWDEOLVKWKH*URXS¶VQHZLQWHUQDOFDUERQSULFLQJV\VWHP $SSO\WKHQHZLQWHUQDOFDUERQSULFH 
tonne of CO2) to the aforementioned measures.)(2) Strive to ensure a grasp of CO2 emissions across the supply chain (Scope 3).
(3) Consider setting a long-term reduction target that is in line with the goal of limiting the increase in global average temperature to below
1.5°C above pre-industrial levels.
0DLQWDLQORZHUWKHLPSDFWRISURGXFWLRQDFWLYLWLHVRQDLUDQGZDVWHZDWHUTXDOLW\5HGXFHWKHJHQHUDWLRQRIDQGPDLQWDLQLQFUHDVHWKHUHVRXUFHUHF\FOLQJUDWH 2 for industrial waste.
• Continue to assess water risks affecting production activities.
  $GYDQFHXQGHUVWDQGLQJRIPDWHULDOÀRZVUHODWLQJWRZDWHUXVH LQFOXGLQJZDWHUUHF\FOLQJ (2) Explore methods for determining risks related to the withdrawal of fresh water and the discharge of wastewater.
❹ Safety in Logistics• Continue to provide information pertinent to the safe transport of chemicals.
❺ Chemical substance safety• Promote the creation of a new global system for managing chemical substance information.
• Further expand deployment of the Wercs and Atrion at DIC Group companies overseas.
❻ Dialogue with society

Continue to publicize the results of Responsible Care activities.
❼ Management system• Make use of the ESH data collection system.
• 5HLQIRUFH(6+PDQDJHPHQWV\VWHPVDWUHJLRQDOKHDGTXDUWHUV *UHDWHU&KLQDDQGWKH$VLD±3DFL¿FUHJLRQ DQGSURYLGHHQJLQHHULQJVXSSRUW $VLD±3DFL¿FUHJLRQ • Improve environment- and safety-related management capabilities.
• Promote environment- and safety-related education.
75,5LVFDOFXODWHGDV 1XPEHURIFDVXDOWLHVGXHWRRFFXSDWLRQDODFFLGHQWVUHVXOWLQJLQZRUNGD\VORVW1XPEHURIFDVXDOWLHVGXHWRRFFXSDWLRQDODFFLGHQWVQRWUHVXOWLQJLQZRUNGD\VORVW 0LOOLRQZRUNKRXUV
5HVRXUFHUHF\FOLQJUDWHLVFDOFXODWHGDV 9ROXPHRILQGXVWULDOZDVWHUHF\FOHG PDWHULDOUHF\FOLQJ :DVWHKHDWUHFRYHUHG 9ROXPHRILQGXVWULDOZDVWHJHQHUDWHG

DIC Report 2022

81

ESH

Occupational Safety and Health/Disaster Prevention
Occupational Safety and Health
Goals and Achievements of Major Initiatives Evaluations are based on self-evaluations of current progress. Key: ★★★ = Excellent; ★★ = Satisfactory; ★ = Still needs work
Objectives of initiatives

Ensure occupational safety
and health.

Prevent disasters.

Scope of target

Goals for fiscal year 2021

Achievements in fiscal year 2021 Evaluation

Goals for fiscal year 2022

GlobalReduce incidence of occupational
accidents.
TRIR targets:
DIC Group in Japan:
1.80
PRC:
1.00
Asia–Pacific region:
1.50
Americas and Europe: 8.00
(Global DIC Group:
4.35)

DIC Group in Japan:
PRC:
Asia–Pacific region:
Americas and Europe:(Global DIC Group:

3.60
1.94
0.90
5.33
3.69)

★

Reduce incidence of occupational
accidents.
TRIR targets:
DIC Group in Japan:
2.40
PRC:
1.00
Asia–Pacific region:
1.10
Americas and Europe: 8.00
(Global DIC Group:
4.36)

Global• Continue working to prevent major
accidents (e.g., fires resulting in thegutting of structures).
• Further promote the calculation ofprocess safety accidents inaccordancewith ICCA guidelines.

• Number of major accidents: 0• Process safety accidents in Japan
were calculated.

★★

• Continue working to prevent major
accidents.
• Further promote the calculation ofprocess safety accidents.

| Policies
Basic Approach
Viewing the prioritization of operational safety as a core management tenet, the DIC Group works tirelessly to prevent accidents anddisasters and to boost the level of ESH initiatives.
The DIC Group recognizes operational safety both as fundamental to its businesses and the core component of Responsible Care. The Company thus
promotes active occupational safety and health, security and disaster prevention measures to foster a “Safety First” philosophy Groupwide and on the part ofevery employee.
%HFDXVHLWVRSHUDWLRQVVSDQGLYHUVH¿HOGVWKH',&*URXSKDVQXPHURXVSURFHVVHVWKDWXVHKD]DUGRXVDQGWR[LFPDWHULDOVDQGURWDWLQJGHYLFHVLQFOXGLQJRQHVWKDWGRQRWLQYROYHFKHPLFDOUHDFWLRQV$Q\DFFLGHQWLQYROYLQJVXFKPDWHULDOVRUGHYLFHVKDVWKHSRWHQWLDOWRVLJQL¿FDQWO\LPSDFWVRFLHW\LQJHQHUDODQG
damage the health of Group and partner company employees and local residents. With the aim of preventing such accidents, the Group has earned the,QWHUQDWLRQDO2UJDQL]DWLRQIRU6WDQGDUGL]DWLRQ¶V2FFXSDWLRQDO6DIHW\DQG+HDOWK0DQDJHPHQW6\VWHP 26+06 FHUWL¿FDWLRQDQGEDVHGRQWKHUHVXOWVRI
stringent risk assessments, places a high priority on reducing risks in the workplace by enhancing awareness of Principles of Safe Conduct and by training
highly perceptive safety personnel. The Group also strives to enhance safety through efforts to reinforce its safety infrastructure and create a safety-oriented
corporate culture.

Workplace safety poster featuring DIC’s president and CEO in three languages for use at sites in Japan and overseas

DIC Report 2022

82

ESH

| Framework for Promotion
Under the supervision of the Sustainability Committee chair (DIC’s president and CEO), the Safety and Environment groups of DIC Group
companies, plants and R&D facilities collaborate to promote a variety of initiatives. In Japan, the Responsible Care Department meetsUHJXODUO\ZLWKVLWH(6+RI¿FHUVWRFRQ¿UPWKHVWDWXVRISULRULW\LVVXHVDQGWKHDFKLHYHPHQWRIWDUJHWVDVZHOODVWRPDQDJHWKHSURJUHVVRI
related efforts. Overseas, the Group sets individual regional targets, while the Responsible Care Department and regional headquarters work
WRJHWKHUWRFRQGXFW*URXSFRPSDQ\±VSHFL¿FULVNDVVHVVPHQWVDQDO\]HDFFLGHQWVDQGSURPRWHUHPHGLDOPHDVXUHVWRHQVXUHWKHFRQWLQXRXV
improvement of occupational safety and health overseas. (For more information, please see “Policies, Targets and Framework” on page 78.)

TOPIC
Management’s Commitment
Believing that it is important for management to take the lead in promoting the idea of “Safety First,” managing executive
RI¿FHU1DR\RVKL)XUXWD*HQHUDO0DQDJHURIWKH3URGXFWLRQ0DQDJHPHQW8QLWSUHSDUHVDPRQWKO\PHPRIRUGLVWULEXWLRQWRDOOVLWHVLQFOXGLQJWKRVHRI*URXSFRPSDQLHVDVSDUWRIDFDPSDLJQGXEEHG³/HDUQLQJIURPWKH3DVWDQG,PSOHPHQWLQJ3UDFWLFDO
Solutions.” Each memo presents a recent actual occupational accident or introduces occupational accidents that are likely
WRRFFXUDWVSHFL¿FWLPHV²HJKHDWVWURNHLQVXPPHURUVWDWLFHOHFWULFLW\±UHODWHGDFFLGHQWVLQZLQWHU²ZLWKDQDQDO\VLVRI
causes and suggestions for countermeasures. This memo is also read out once a month at a morning assembly at each site topromote awareness among employees and encourage a common understanding.

| Principal Initiatives in Fiscal Year 2021
The DIC Group promotes a variety of initiatives around the world with the aim of eliminating occupational accidents. Of particular note, the Group setstargets for total recordable incident rate (TRIR)—calculated as the number of casualties (i.e., fatalities and injuries) due to occupational accidents, both those
UHVXOWLQJLQZRUNGD\VORVWDQGWKRVHQRWUHVXOWLQJLQZRUNGD\VORVWSHUPLOOLRQZRUNKRXUV²IRUWKH',&*URXSLQ-DSDQWKH35&WKH$VLD±3DFL¿FUHJLRQDQG
the Americas and Europe.
,Q¿VFDO\HDUWKH75,5IRUWKHJOREDO',&*URXSZDVZHOOEHORZLWVWDUJHW1RQHRIWKHRFFXSDWLRQDODFFLGHQWVDWJOREDO*URXSVLWHVUHVXOWHG
LQIDWDOLWLHV$WRWDORILQMXULHVUHVXOWLQJLQZRUNGD\VORVWZHUHUHSRUWHGZKLOHLQMXULHVQRWUHVXOWLQJLQZRUNGD\VORVWQXPEHUHG/RRNLQJDKHDGWKH*URXSZLOOFRQWLQXHZRUNLQJWRDQDO\]HWKHFDXVHVRIRFFXSDWLRQDODFFLGHQWVUHVXOWLQJLQZRUNGD\VORVWDQGWRUHÀHFWLWV¿QGLQJVLQFRQFUHWHLPSURYHPHQWVZLWKWKH
goal of preventing such accidents in the future.
1

DIC Group in Japan,Q¿VFDO\HDUWKH',&*URXSLQ-DSDQDFKLHYHGD75,5RIIDOOLQJVLJQL¿FDQWO\VKRUWRILWVWDUJHWRIDQGXSIURPLQWKH
SUHYLRXV¿VFDO\HDU1RRFFXSDWLRQDODFFLGHQWVUHVXOWLQJLQIDWDOLWLHVZHUHUHSRUWHG7KHUHZHUHDWRWDORILQMXULHVUHVXOWLQJLQZRUNGD\V
ORVWDQGLQMXULHVQRWUHVXOWLQJLQZRUNGD\VORVW$WWKHIUHTXHQF\UDWHRIRFFXSDWLRQDODFFLGHQWVZDVKLJKHUWKDQWKHDYHUDJHIRUWKH
manufacturing industry in Japan and for member companies of the Japan Chemical Industry Association (JCIA). The severity rate was lower
than the average for manufacturers in Japan and in line with that of JCIA member companies. Going forward, the Group will work to reduce
injuries by strengthening risk assessment and engineering-based responses.

DIC Group Overseas

Casualties due to occupational accidents

The TRIR for the DIC Group in the Asia– TRIR and Casualties Due to Occupational Accidents (FY2019–2021)
3DFL¿FUHJLRQLQ¿VFDO\HDUZDV
6.00
200
while that for the Americas and Europe
WKH 6XQ &KHPLFDO *URXS  ZDV 
4.50
150
both well below regional targets. The DIC*URXSLQWKH35&UHSRUWHGD75,5RI
DQ LPSURYHPHQW IURP ILVFDO \HDU 
3.00
100
EXW VKRUW RI LWV WDUJHW 1R RFFXSDWLRQDO
accidents resulting in fatalities were
1.50
50
UHSRUWHG7KHUHZHUHDWRWDORILQMXULHVUHVXOWLQJLQZRUNGD\VORVWDQGLQMXULHV
0.00
02019 2020 2021 2019 2020 2021 2019 2020 2021 2019 2020 2021 2019 2020 2021 (FY)
not resulting in workdays lost. (For more
Japan
PRC
Asia–Pacific region
Americas and Europe
Global
LQIRUPDWLRQSOHDVHVHHSDJH
Fatalities

Injuries resulting in workdays lost

DIC Report 2022

83

Injuries not resulting in workdays lost

TRIR

TRIR

2

ESH

Frequency Rate

Severity Rate

1.50

0.15

1.00

0.10

0.50

0.05

0.00

17

18
DIC

19
JCIA

20

0.00

21 (FY)

17

Overall manufacturing industry

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

Number of deaths or injuries due to occupational accidents
Total work hours

18
DIC

19
JCIA

20

Overall manufacturing industry

21

(FY)

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

× 1,000,000

Severity rate ＝A frequency rate of 1.00 means one occupational accident resulting in workdays lost in one
year at a site with 500 employees.

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

× 1,000

A severity rate of 0.10 means 100 workdays lost in one year at a site with 500 employees.

| Infrastructure for Preventing Occupational Accidents
1Monthly Occupational Safety and Health Data

The DIC Group conducts its diverse businesses in accordance with a wide range of national and regional legal systems, working conditions
and practices. However, to raise the level of occupational safety and health of the entire Group, it is crucial to establish common standards
and benchmarks and to align regional initiatives.
The DIC Group promotes the sharing of information related to occupational safety and health across the global Group by aggregating
UHJLRQDOVWDWLVWLFDOGDWDRQDPRQWKO\EDVLV6SHFL¿FDOO\GDWDLVJDWKHUHGE\',& &KLQD IRU*UHDWHU&KLQD',&$VLD3DFL¿FIRUWKH$VLD±
3DFL¿FUHJLRQDQG6XQ&KHPLFDOIRUWKH$PHULFDVDQG(XURSHZKLOHWKH5HVSRQVLEOH&DUH'HSDUWPHQWFROOHFWVDQGDQDO\]HVGDWDIRU
Japan. This makes it possible to objectively compare and evaluate the operational safety of individual Group companies, establish precise
WDUJHWVIRULQGLYLGXDOFRXQWULHVDQGUHJLRQVDQGIRUPXODWHSURJUDPVWRDFKLHYHLPSURYHPHQWV,Q¿VFDO\HDUWKH*URXSLQWURGXFHGWKH
',&(6+'DWD&ROOHFWLRQ6\VWHP '(&6 DFORXGEDVHGV\VWHPIRUUHFRUGLQJGDWD )RUPRUHLQIRUPDWLRQSOHDVHVHHSDJH
Statistical Occupational Safety and Health Data
・1XPEHURIHPSOR\HHV

・Total work hours

・1XPEHURIDFFLGHQWVLQYROYLQJ¿UHVH[SORVLRQV・1XPEHURIFDVXDOWLHVGXHWRRFFXSDWLRQDO
accidents resulting in workdays lost and not resulting in workdays lost・Occupational accident frequency rate
・1XPEHURIZRUNGD\VORVW
・TRIR

2

Principles of Safe Conduct

Using resources such as case studies of accidents and disasters in the past, DIC has created rules and codes of conduct to ensure
operational safety, which it has complied as a guidebook titled Principles of Safe ConductWKH¿IWKHGLWLRQRIZKLFKZDVSXEOLVKHGLQ¿VFDO\HDU(QJOLVKDQG&KLQHVHODQJXDJHYHUVLRQVKDYHDOVREHHQSUHSDUHGIRUXVHE\',&*URXSFRPSDQLHVRYHUVHDVDIC Report 2022

84

ESH

3

Conducting Risk Assessments

By understanding potential risks in production processes, facilities and devices, and the hazards of chemical substances, the DIC Group systematically
prepares initiatives to prevent accidents and occupational injuries. In Japan, the Group has formulated guidelines for conducting risk assessments when
GHSOR\LQJQHZRUPRGL¿HGHTXLSPHQWRUFKDQJLQJSURGXFWLRQSURFHVVHVWRLGHQWLI\DQGHYDOXDWHWKHLPSDFWRQHPSOR\HHVDQGWKHFRPPXQLW\IURPGHVLJQ
through to operation.
:LWKWKHDLPRIUHGXFLQJULVNVDVVRFLDWHGZLWKFKHPLFDOVXEVWDQFHVLQ-DSDQVLQFH¿VFDO\HDUWKH',&*URXSKDVFUHDWHGDIUDPHZRUNWRIDFLOLWDWH
WKHPHWKRGLFDOLPSOHPHQWDWLRQRIULVNDVVHVVPHQWVLQOLQHZLWKWKHSROLF\VHWE\WKH0LQLVWU\RI+HDOWK/DERXUDQG:HOIDUH2ISDUWLFXODUQRWHLQ¿VFDO\HDUWKH*URXSIRUPXODWHGSURSULHWDU\DVVHVVPHQWJXLGHOLQHVLQFOXGLQJIRUDVVHVVPHQWSURFHGXUHVDQGLVFRQVLGHULQJPHDVXUHVWRHYDOXDWHKD]DUGVDQG
toxicity and lower risks associated with chemicals set forth in Japan’s Poisonous and Deleterious Substances Control Act.
4

Analyzing Accidents and Disasters and Providing Information in a Timely Manner

DIC promptly analyzes the causes of internal accidents and disasters and implements appropriate countermeasures, as well as promotes the horizontal
deployment of such countermeasures at sites and Group companies to prevent reoccurrence. The Company has also compiled such information to create
Accident Case Studies and Occupational Accident Case Studies databases. These databases—which include easy-to-understand explanations of thecauses of accidents and breakdowns, points to be checked to ensure safety, and countermeasures—are incorporated into safety education for DIC and DIC
Group companies in Japan and overseas.
5

Promoting E-Learning–Based Safety and ESH Training

To enhance its capabilities in the area of occupational safety and health, and in disaster prevention, the DIC Group recognizes the importance of ensuring
WKDWDOORILWVHPSOR\HHVJDLQDEURDGXQGHUVWDQGLQJRIFKHPLFDOVXEVWDQFHVSURGXFWLRQSURFHVVHVDQGSHUWLQHQWODZVDQGUHJXODWLRQV,Q¿VFDO\HDU
the Group introduced an e-learning program.
Initially structured around laws and regulations pertinent to the operational safety of production facilities, including Japan’s Fire Service Act, Air Pollution&RQWURO/DZDQG+LJK3UHVVXUH*DV6DIHW\$FWWKHHOHDUQLQJSURJUDP¶VIRFXVZDVODWHUH[SDQGHGWRLQFOXGHVWDWLFHOHFWULFLW\DVDQRQUHJXODWRU\FRPSRQHQWZLWKWKHDSSURSULDWHQHVVRIWKHSURJUDP¶VWUDLQLQJPDWHULDOVYHUL¿HGIURPWKHSHUVSHFWLYHRI5HVSRQVLEOH&DUH'HSDUWPHQWVSHFLDOLVWVVLWH(6+
RI¿FHUVDQGSURGXFWLRQGHSDUWPHQWV(PSOR\HHVDUHDEOHWRWDNHXSWRFODVVHVDQGDUHUHTXLUHGWRVFRUHDERYHSRLQWVWRHDUQFHUWL¿FDWLRQ$VRI'HFHPEHUWKHFXPXODWLYHQXPEHURISDUWLFLSDQWVLQWKHSURJUDPVLQFH¿VFDO\HDUKDGUHDFKHG

Web-based animated version of Principles of Safe Conduct| Hands-On Safety Training
7KH',&*URXS¶VIXOOÀHGJHGKDQGVRQVDIHW\WUDLQLQJSURJUDPEHJDQLQ¿VFDO\HDUZLWKWKHLQWURGXFWLRQRIDPRELOHLQLWLDWLYHXVLQJHTXLSPHQWWUDQVSRUWHGIURPVLWHWRVLWHXVLQJDWRQQHWUXFN6LQFH¿VFDO\HDUWKH*URXSKDVLQVWDOOHGSHUPDQHQWWUDLQLQJHTXLSPHQWDWVL[VLWHVLQ-DSDQDVZHOODVH[SDQGHGGHSOR\PHQWJOREDOO\LQFOXGLQJLQWKH35&DQGWKH$VLD±3DFL¿FUHJLRQ7KLVSURJUDPKDVKHOSHGWRDOPRVWKDOYHWKHRFFXSDWLRQDODFFLGHQWIUHTXHQF\UDWHDW*URXSVLWHVLQ-DSDQ%\VLPXODWLQJFRPPRQSURGXFWLRQÀRRUDFFLGHQWV²LQFOXGLQJ
those involving entanglement in rotating devices, falls from high places and incised wounds caused by cutting equipment—based on actual
previous examples, the Group’s hands-on safety training seeks to reduce employees’ willingness to take risks and foster their ability torecognize danger. In doing so, the Group seeks to transform the mindset of employees by encouraging them to think and act on their own toprotect themselves and each other from latent risks.
,Q¿VFDO\HDU&29,'IRUFHGWKH',&*URXSWRFDQFHOKDQGVRQVDIHW\WUDLQLQJ+RZHYHUWKH*URXSXVHGWKHSHULRGWRUHYLHZDQG
UHYLVHHTXLSPHQWDQGSURFHGXUHVWRIDFLOLWDWHLPSOHPHQWDWLRQHYHQGXULQJWKHSDQGHPLF7UDLQLQJKDVLQ¿VFDO\HDU$VRI'HFHPEHU
WKHFXPXODWLYHQXPEHURIHPSOR\HHVSDUWLFLSDWLQJLQKDQGVRQVDIHW\WUDLQLQJKDGH[FHHGHGLQ-DSDQDQGUHDFKHGDSSUR[LPDWHO\RYHUVHDV
Number of Hands-On Safety Training Participants

Cumulative total(FY2012–2021)

DIC Group in JapanDIC Group overseas(Greater China: 4 companies,$VLD²3DFLÀFUHJLRQFRPSDQLHV

9,214

5,850

DIC Report 2022

85

Total

15,064

ESH

1

Initiatives in Japan,Q¿VFDO\HDUWKH',&*URXSRSHQHGWKH6DLWDPD+DQGV2Q6DIHW\&HQWHUDIDFLOLW\ERDVWLQJHTXLSPHQWWKDWDOORZVWKHVLPXODWLRQ
of an array of accidents, with the goal of fostering skilled safety personnel by incorporating hands-on safety training in new employee and
UDQNVSHFL¿FWUDLQLQJSURJUDPV,QWKHVDPH\HDU',&DQG',&*UDSKLFVEHJDQLQFOXGLQJKDQGVRQVDIHW\WUDLQLQJDQG.LNHQ<RFKL7UDLQLQJ
.<7  “hazard prediction training”) in the training curricula for new employees. The Chiba, Sakai, Hokuriku, Kashima and other plants have
DOVRHVWDEOLVKHGWKHLURZQKDQGVRQVDIHW\WUDLQLQJHTXLSPHQWDQGFXUULFXODWRIXUWKHUHPEHGVDIHW\LQWRWKH*URXS¶VFXOWXUH,Q¿VFDO\HDUWKH*URXSGRZQVL]HGVL[W\SHVRIKDQGVRQWUDLQLQJHTXLSPHQWIRUOHQGLQJWRLQGLYLGXDOVLWHVDVSDUWRIDPRELOHWUDLQLQJLQLWLDWLYH
The Responsible Care Department places a high emphasis on fostering employee hands-on training instructors for this initiative and has
established an instructors licensing system.

Training for new employees at the Saitama Plant

2

Hands-on safety training simulating an accident involving a fall

Initiatives at Overseas Group Companies

Group companies overseas are also deploying hands-on safety training. In Greater China, hands-on safety training equipment has been
LQVWDOOHGDW1DQWRQJ',&&RORU&R/WG',&*UDSKLFV *XDQJ]KRX /WGDQG&KDQJ]KRX+XDUL1HZ0DWHULDOVLQWKH35&DQG',&*UDSKLFV&KLD/XQJ&RUSLQ7DLZDQ,QWKH$VLD±3DFL¿FUHJLRQHTXLSPHQWKDVEHHQLQVWDOOHGDW',&&RPSRXQGV 0DOD\VLD 6GQ%KG37',&$675$
&KHPLFDOVLQ,QGRQHVLD7KDLODQG¶V6LDP&KHPLFDO,QGXVWU\DQG',&,QGLD¶V1RLGD3ODQW7KHVHFRPSDQLHVSURYLGHKDQGVRQVDIHW\WUDLQLQJfor employees across their respective regions, as well as for instructors.

| Efforts to Foster a Safety-Conscious Corporate Culture
1

Safe Corporate Climate Cultivation Working Groups,QOLQHZLWKWKHLWV³6DIHW\)LUVW´SKLORVRSK\WKH',&*URXSZRUNVWRIRVWHUDVDIHW\FRQVFLRXVFRUSRUDWHFXOWXUH,Q¿VFDO\HDUSHUVRQQHOin charge of safety at plants belonging to DIC and subsidiary DIC Graphics created Safe Corporate Climate Cultivation working groups. In
addition to meeting regularly to discuss and exchange proposals regarding safety policies and measures, these working groups advise theSustainability Committee and other bodies and promote a variety of key initiatives.
Fiscal Year

Working Group Initiatives

2012

Working groups presented recommendations on safety policies and produced warning stickers to enhance awareness of workplace hazards.

2013

Working groups prepared safety posters featuring the president and CEO and started reading out key passages from Principles of Safe
Conduct in workplaces with the aim of making the practices therein routine.

2014

Working groups prepared an illustrated version of Principles of Safe Conduct for reading out in workplaces.

2015

Working groups edited Principles of Safe Conduct into a tear-off calendar version for workplace reading circles, which was distributed to sites.
The calendar version was also translated into English and Chinese.

2016

Working groups in the PRC began reading out key passages from Principles of Safe Conduct to foster a culture of safety.

2017

Working groups updated Principles of Safe Conduct.

2018:RUNLQJJURXSVSXEOLVKHGWKH¿IWKHGLWLRQRIPrinciples of Safe Conduct.

2019:RUNLQJJURXSVFRPPHQFHGSURGXFWLRQRIDYHUVLRQRIWKH¿IWKHGLWLRQRIPrinciples of Safe Conduct for workplace reading circles.

2020

7KHSXEOLFDWLRQRIDYHUVLRQRIWKH¿IWKHGLWLRQRIPrinciples of Safe Conduct for workplace reading circles was scheduled, but was postponed
XQWLODVDUHVXOWRI&29,'

2021

Site meetings were held at production facilities, with the president and vice present of DIC and the general manager of the Production Management Unit visiting
HDFKVLWHWRPHHWZLWKIURQWOLQHHPSOR\HHV$YHUVLRQRIWKH¿IWKHGLWLRQRIPrincipals of Safe Conduct for workplace reading circles was published.

A tear-off calendar version of Principles of Safe Conduct for workplace reading circles (available in Japanese,
English and Chinese)
Reading out passages from Principles of Safe Conduct

DIC Report 2022

86

ESH

2

Initiatives at Overseas Group Companies',& KDV GHFODUHG 6HSWHPEHU  DV ',& 6DIHW\ 3OHGJH 'D\ ZKHQ DOO ',&employees pledge to ensure safe operations and to not repeat past serious
accidents and disasters. On this day, each employee pledges their commitment tosafety by writing their personal declaration on a special card.

VDIHW\GHFODUDWLRQFDUG

Disaster Prevention| Policies
Basic Approach

In addition to establishing a security management system to prevent major accidents, the DIC Group implements prompt, effective
countermeasures in the event an accident occurs.
$Q\¿UHH[SORVLRQRUOHDNRIDKD]DUGRXVVXEVWDQFHDWDFKHPLFDOVSODQWFRXOGKDYHDWUHPHQGRXVLPSDFWRQORFDOUHVLGHQWVDQGWKHUHVW
of the community and damage the health of employees, including those of our partner companies. As well as operating and maintaining
its facilities in line with pertinent laws and regulations, the DIC Group regularly conducts emergency drills and has earthquake and other
response measures in place in the event a major accident occurs.

| Framework for Promotion
Under the supervision of the Sustainability Committee chair (DIC’s president and CEO), the Safety and Environment groups of DIC Group
companies, plants and R&D facilities collaborate with the Responsible Care Department to promote a variety of initiatives. The Responsible Care'HSDUWPHQWKROGVPHHWLQJVUHJXODUO\ZLWKVLWH6DIHW\DQG(QYLURQPHQWJURXSVWRH[FKDQJHLQIRUPDWLRQDVZHOODVWRFRQ¿UPWKHVWDWXVRISULRULW\
issues and the achievement of targets, and to manage the progress of related efforts. (For more information, please see “Policies, Targets andFramework” on page 78.)

| Principal Initiatives in Fiscal Year 2021
1

Process Safety Management

The International Council of Chemical Associations (ICCA) formulated criteria for chemical process safety accidents that require reporting
LQ¿VFDO\HDU6LQFH¿VFDO\HDUWKH',&*URXSKDVFDOFXODWHGSURFHVVVDIHW\DFFLGHQWVIRUWKH*URXSLQ-DSDQLQOLQHZLWKWKHVH
VWDQGDUGV,Q¿VFDO\HDUWKH*URXSUHSRUWHGVHYHQSURFHVVVDIHW\DFFLGHQWV7KHSURFHVVVDIHW\DFFLGHQWIUHTXHQF\UDWH²WKHQXPEHU
RIVXFKDFFLGHQWVSHUZRUNKRXUV²ZDV
1RWH8QGHUWKH,&&$FULWHULDDSURFHVVVDIHW\DFFLGHQWWKDWUHTXLUHV
reporting has occurred—primarily due to a fire, explosion orleak related to a production process—when the following four
conditions are met:
A chemical substance or chemical process is directly involved;
 7KHLQFLGHQWRFFXUUHGLQSURGXFWLRQGLVWULEXWLRQVWRUDJH
utility or a pilot plant;
 7KHUH ZDV D UHOHDVH RI PDWHULDO RU HQHUJ\ HJ ILUH
explosion or implosion) from a process unit; and 2QHRUPRUHRIWKHIROORZLQJKDYHRFFXUUHGoccupational accident,
facility damage,VKHOWHULQSODFHHYDFXDWLRQRUGHURU
release of material that meets a Globally Harmonized System RI&ODVVLILFDWLRQDQG/DEHOLQJRIFKHPLFDOV *+6 
reporting threshold

2

Fiscal year


Fiscal year


Fiscal year


Fiscal year

1XPEHURI,&&$SURFHVVsafety accidents

10

6

4

7

Process safety accident
frequency rate

0.175

0.110

0.073

0.128

Risk Assessments at Chemicals Production Facilities

The DIC Group’s production facilities have an array of application-specific equipment, ranging from units where chemical reactions are
FRQGXFWHGWRPDFKLQHSUHVVHVDQGRWKHUSURFHVVLQJHTXLSPHQW,QWKH*URXSIRUPXODWHGWKH',&3URFHVV5LVN0DQDJHPHQW 350 
Guidelines, which it uses to conduct systematic risk assessments at individual sites. These guidelines outline timetables and implementation
frameworks for assessing the handling of chemical substances, production processes, production formulas, machinery and work practices
with the aim of comprehensively identifying and steadily reducing risks associated with production and R&D processes.
6LQFH¿VFDO\HDUWKH',&*URXSDOVRXVHVKD]DUGDQGRSHUDELOLW\ +$=23 VWXGLHVGHYHORSHGWRDVVHVVWKHULVNRIDFFLGHQWV LHOHDNV¿UHVDQGH[SORVLRQV DWFKHPLFDOVSURGXFWLRQIDFLOLWLHV6SHFL¿FDOO\WKH*URXSGHSOR\VWKH+$=23VWXGLHVWRDVVHVVULVNVDWIDFLOLWLHVWKDWKDYHFKHPLFDOUHDFWLRQHTXLSPHQWLQFOXGLQJWKH<RNNDLFKL&KLEDDQG.DVKLPDSODQWVDIC Report 2022

87

ESH

3

Third-Party Assessments by the Safety Competency Enhancement Center,Q',&LQWURGXFHGDQDVVHVVPHQWV\VWHPDVDPHDQVRIREMHFWLYHO\HYDOXDWLQJDQGHQKDQFLQJLWVVDIHW\FRPSHWHQF\ 7KLVV\VWHPwas developed by the Japan Society for Safety Engineering (JSSE), together with chemicals industry engineers, as a common industry
benchmark and is currently used by all companies in Japan that are members of the Safety Competency Enhancement Center. Assessments
KDYHEHHQFRQGXFWHGDWDOO',&SODQWVWKH.DVKLPD3ODQWLQWKH<RNNDLFKLDQG6DLWDPDSODQWVLQ¿VFDO\HDUWKH.RPDNLDQG
6DNDLSODQWVLQ¿VFDO\HDUWKH&KLEDDQG7DWHED\DVKLSODQWVLQ¿VFDO\HDUDQGWKH+RNXULNX3ODQWLQ¿VFDO\HDU7KHVH
IDFLOLWLHVKDYHXVHGDVVHVVPHQWUHVXOWVWRSURPRWHIXUWKHULPSURYHPHQWV7KH<RNNDLFKL3ODQWIRUH[DPSOHVXEVHTXHQWO\ODXQFKHGD+$=23
VWXG\±EDVHGULVNDVVHVVPHQW,Q'HFHPEHU',&DVNHGWKH6DIHW\&RPSHWHQF\(QKDQFHPHQW&HQWHUWRSURYLGHWKH&RPSDQ\¶V
president and CEO with an overall report on the results of assessments conducted to date at six production facilities, facilitating the sharingof understanding regarding safety and disaster-related issues across the management team.
7KHDVVHVVPHQWV\VWHPHQFRPSDVVHVTXHVWLRQVDERXWVDIHW\LQIUDVWUXFWXUH WHFKQLFDOFRQVLGHUDWLRQV DQGFXOWXUHRIVDIHW\ RSHUDWLRQDQGPDQDJHPHQWRIRUJDQL]DWLRQDOFXOWXUH TOPICSDIC Kitanihon Polymer’s Hokkaido Plant Receives Award from Tomakomai Fire Marshals’ Association,Q1RYHPEHU',&.LWDQLKRQ3RO\PHU&R/WG¶V+RNNDLGR3ODQWUHFHLYHGDQDZDUGDVDQH[FHOOHQWVLWHIURPWKH7RPDNRPDL)LUH0DUVKDOV¶$VVRFLDWLRQDWWKHDVVRFLDWLRQ¶VDQQXDOPHHWLQJIRU$UWLFOH $ZDUGV RIWKHE\ODZVRIWKH7RPDNRPDL)LUH0DUVKDOV¶$VVRFLDWLRQGH¿QHVDQ³H[FHOOHQWVLWH´DVRQHZLWK¿UHSUHYHQWLRQSUDFWLFHVWKDWVHUYHDVDPRGHOIRURWKHUEXVLQHVVHVWDEOLVKPHQWVWKDWKDVZRUNHGWRZDUGWKHVDPHWDUJHWIRUPRUHWKDQ¿YH
FRQVHFXWLYH\HDUVXQGHUWKHJXLGDQFHRID¿UHPDUVKDO DQGDFKLHYHGRXWVWDQGLQJUHVXOWV$ZDUGVDUHDSSURYHG
E\WKHDVVRFLDWLRQ¶V%RDUGRI'LUHFWRUV',&.LWDQLKRQ3RO\PHU¶V+RNNDLGR3ODQWZDVMXGJHGWRKDYHIXO¿OOHGWKHVH
FULWHULDDQGVHOHFWHGWRUHFHLYHD¿VFDO\HDUDZDUG
5HSUHVHQWDWLYH.HL]R<XNLVKLJH*HQHUDO0DQDJHU+RNNDLGR3ODQW)LUHPDUVKDO6DWRVKL7VXFKLGD WRRNRYHUIURPSUHGHFHVVRURQ)HEUXDU\
Encouraged by the award earned by DIC Kitanhihon Polymer’s Hokkaido Plant, DIC Group production facilities will
step up collective efforts to further improve safety management.

| Emergency Response Drills
In addition to daily security patrols and periodic
equipment checks, the DIC Group conducts
regular emergency response drills based on
BCPs, at production sites in Japan and overseas.

Comprehensive disaster drill at the Sakai Plant, a designatedspecial disaster protection area

Comprehensive disaster drill at the Tokyo Plant

Environmental Protection| Policies
Basic Approach
The DIC Group regards global environmental issues as being of primary importance and continues to promote initiatives aimed at
reducing its environmental footprint with the aim of contributing to the realization of a sustainable society.
Environmental protection is among the most important of corporate sustainability activities. The DIC Group’s efforts focus on a number ofareas, including preventing environmental pollution, climate change, managing industrial waste (responding to a circular economy), managing
ZDWHUUHVRXUFHVDQGELRGLYHUVLW\$VDPDQXIDFWXUHURI¿QHFKHPLFDOVZLWKRSHUDWLRQVDURXQGWKHZRUOGWKH*URXS¶VHQYLURQPHQWDOSURWHFWLRQ
with a global perspective.

DIC Report 2022

88

ESH

| Groupwide Environmental Performance

Production
volumeTotal energy consumption(crude oil equivalent)

4,183,000 GJ+9900,000
tonnesOUTPUTDIC Group(Japan)INPUTThe DIC Group quantifies the environmental inputs (consumption of energy and other resources) and outputs (emissions into the environment) of its
RSHUDWLQJDFWLYLWLHVDQGXVHVLWV¿QGLQJVWRIRUPXODWHFRPSUHKHQVLYHDQGHI¿FLHQWVWUDWHJLHVIRUUHGXFLQJLWVHQYLURQPHQWDOIRRWSULQW
7KHFKDUWEHORZLVDFRPSUHKHQVLYHLOOXVWUDWLRQRIWKHHQYLURQPHQWDOLPSDFWRIWKH',&*URXS¶VRSHUDWLQJDFWLYLWLHVLQ-DSDQDQGRYHUVHDVLQ¿VFDO\HDU7KHFKDUWVKRZVHQYLURQPHQWDOLPSDFWIRUWZRLQSXWLWHPV WRWDOHQHUJ\FRQVXPSWLRQDQGWRWDOZDWHUFRQVXPSWLRQ DQGWKUHHRXWSXWLWHPV HPLVVLRQV
into the air, emissions into water and emissions into soil) in the following categories: CO emissions, wastewater discharged, industrial waste disposed of
DVODQG¿OOHPLVVLRQVRIWDUJHWHGVXEVWDQFHVLQWRWKHDLU FKHPLFDOVXEVWDQFHV²LQFOXGLQJWKRVHWDUJHWHGXQGHU-DSDQ¶V3575 —and one substanceJURXS   -DSDQRQO\ HPLVVLRQVRI12[HPLVVLRQVRI62[DQG&2'LQZDVWHZDWHU
%HFDXVHGDWDIRUWKH&RORUV (IIHFWV*URXSZKLFKZDVDFTXLUHGLQ-XO\FRXOGRQO\EHFROOHFWHGIRUVL[PRQWKV -XO\±'HFHPEHU LWLVQRWLQFOXGHGLQWKH',&*URXSGDWDIRU¿VFDO\HDUEXWUDWKHULVSUHVHQWHGVHSDUDWHO\IRUUHIHUHQFH&RORUV (IIHFWV*URXSGDWDZLOOEHLQFOXGHGLQWKHVFRSH
RIGDWDFROOHFWLRQEHJLQQLQJLQ¿VFDO\HDU

Emissions into the air

Atmospheric emissions of targeted substances(551 substances and one substance group)239

from fiscal% year 2020

Wastewater discharged

26,904,000
34

OUTPUT

INPUT

1,069,000

Industrial waste disposedof as landfill

+3 %

199

m from fiscal year 2020
3

Soil-related emissions of targeted substances(551 substances andone substance group)
tonnes+29345,000

Wastewater
discharged%
from fiscal year 2020

0

Emissions into soil

-4 %tonnes from fiscal year 2020

6,481,000 -16
m3

from fiscal year 2020

(Toxic industrial waste included: 28 tonnes)

Emissions into the air
CO2 emissions+19 %tonnesEmissions into water

8,632,000 ㎥ -10

tonnes（+7％）

fiscalyear 2020-27% fromtonnesEmissions into soil

Aquatic emissions of targeted substances(551 substances and%one substance group)
tonnes from fiscal year 2020

Fresh waterwith drawn

Production
volume9

COD in+30 %wastewater 940 tonnes from fiscal year 2020

fiscal
+3% from
year 2020-6 %from fiscal year 2020-27%

Emissions into water

27,625,000 ㎥

6,290,000 GJ

SOx emissions

tonnes from fiscal year 2020

Fresh waterwith drawn

Total energy consumption(crude oil equivalent)NOx emissions

fiscal+4 %year 2020±0 % fromtonnes from fiscal year 2020 186 tonnes* Renewable energy is not included in the above figure.

（+9％）

DIC Group(Overseas)

CO2 emissions

201,000

Industrial waste
disposed of as landfill

14,702

tonnes-22%

the fiscal year 2020%

from fiscal year 2020

(Toxic industrial waste
included: 2,430 tonnes)

Production
volume35,000千t
tonnesTotal energy consumption(crude oil equivalent)

2,373,000 GJ

OUTPUT

Colors &Effects
Group

INPUT

Reference: Environmental Impact of Colors & Effects Group Environmental Initiatives (July–December 2021)
Emissions into the air
CO2 emissions

126,000

tonnesFresh waterwith drawn

Emissions into water

5,181,000 ㎥

5,181,000

Wastewater
discharged

Emissions into soil
Industrial waste disposedof as landfill

3,658

m3

tonnes(Toxic industrial waste included: 132 tonnes)m3

 $ 3575 LV D VFKHPH IRU DVVHVVLQJ DJJUHJDWLQJ DQG GLVVHPLQDWLQJ GDWD RQ WKH VRXUFH RI KD]DUGRXV FKHPLFDOV DPRXQWV UHOHDVHG LQWR WKH HQYLURQPHQW DQGamounts transferred off-site from industrial establishments via waste products.
 7KH³VXEVWDQFHVDQGRQHVXEVWDQFHJURXS´FRPSULVHVFKHPLFDOVXEVWDQFHVGHVLJQDWHGE\-DSDQ¶V3575DQG3575GHVLJQDWHGVXEVWDQFHV RWKHUWKDQFODVV DQGRQH
VXEVWDQFHJURXS FKDLQK\GURFDUERQVZLWKXSWR±FDUERQDWRPV WDUJHWHGIRUVWXG\E\WKH-&,$

DIC Report 2022

89

ESH

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

Scope of target

Goal for fiscal year 2021

Achievement in fiscal year 2021

Evaluation

Goal for fiscal year 2022

Reduce emissions of VOCs into the air.

Japan

DIC Group (Japan): 345 tonnes(essentially level with fiscal year 2020)

DIC Group (Japan): 239 tonnes★ ★

DIC G roup (Japan): 325 tonnes(essentially level with fiscal year 2020;
down 70% from fiscal year 2000)| Policies and Organization

Basic Approach
The DIC Group works to grasp the environmental impact of its operating activities and promotes systematic measures to reduce its
environmental footprint. The Group also advances efforts aimed at preventing environmental pollution.
6LQFHFKHPLFDOVFRPSDQLHVKDQGOHDFRQVLGHUDEO\JUHDWHUYROXPHDQGPRUHGLYHUVHUDQJHRIFKHPLFDOVXEVWDQFHVWKDQFRPSDQLHVLQRWKHULQGXVWULHVWKH\PXVWEHH[WUHPHO\YLJLODQWWRSUHYHQWGLVFKDUJHVRIVXEVWDQFHVLQWRWKHHQYLURQPHQW$JDLQVWWKLVEDFNGURSWKH',&*URXSSURPRWHVV\VWHPDWLFHIIRUWVWRSUHYHQWHQYLURQPHQWDOSROOXWLRQ,Q-DSDQWKH
*URXSKDVZRUNHGVLQFH¿VFDO\HDUWRUHGXFHHPLVVLRQVLQWRWKHDLUZDWHUDQGVRLORIVXEVWDQFHVGHVLJQDWHGXQGHUSHUWLQHQWODZVDQGUHJXODWLRQVLQ-DSDQ²LQFOXGLQJWKH$FW
RQ&RQ¿UPDWLRQHWFRI5HOHDVH$PRXQWVRI6SHFL¿F&KHPLFDO6XEVWDQFHVLQWKH(QYLURQPHQWDQG3URPRWLRQRI,PSURYHPHQWVWRWKH0DQDJHPHQW7KHUHRIWKH6RLO&RQWDPLQDWLRQ&RXQWHUPHDVXUHV$FWWKH3ROOXWDQW5HOHDVHDQG7UDQVIHU5HJLVWHU 3575 /DZWKH2]RQH/D\HU3URWHFWLRQ/DZWKH$FWRQ5DWLRQDO8VHDQG3URSHU0DQDJHPHQWRI)OXRURFDUERQV
DQGWKH/DZ&RQFHUQLQJ6SHFLDO0HDVXUHVIRU3URPRWLRQRI3URSHU7UHDWPHQWRI3&%:DVWHV²DQGRIVXEVWDQFHVWDUJHWHGIRUPDQDJHPHQWXQGHUDYROXQWDU\VFKHPHFUHDWHGE\
WKH-DSDQ&KHPLFDO,QGXVWU\$VVRFLDWLRQ -&,$ 7KH-&,$LVDJHQHUDOLQFRUSRUDWHGDVVRFLDWLRQ$VRQHRI-DSDQ¶VPDMRULQGXVWU\RUJDQL]DWLRQVWKH-&,$LVDPHPEHURIWKH,&&$DQGSXUVXHVWKHKHDOWK\GHYHORSPHQWRIWKH
FKHPLFDOVLQGXVWU\ZLWKRWKHUFKHPLFDO±LQGXVWULDORUJDQL]DWLRQVDURXQGWKHZRUOG| Framework for Promotion
7KHFKDLURIWKH6XVWDLQDELOLW\&RPPLWWHH WKHSUHVLGHQWDQG&(2 RYHUVHHVWKHSODQQLQJDQGSURPRWLRQRIHQYLURQPHQWDOFRQVHUYDWLRQLQLWLDWLYHVE\WKH5HVSRQVLEOH&DUH'HSDUWPHQWDQGE\SURGXFWLRQDQG5 'VLWH6DIHW\DQG(QYLURQPHQWJURXSV7KH5HVSRQVLEOH&DUH
Department monitors legal and regulatory trends worldwide to ensure sites are able to comply promptly and effectively.
| Principal Initiatives in Fiscal Year 2021
1 Reducing Emissions of VOCs

7KH',&*URXSLQ-DSDQVXFFHHGHGLQDFKLHYLQJLWVYROXQWDU\WDUJHWIRUUHGXFLQJHPLVVLRQVRI92&VLQWRWKHDLUIRU¿VFDO\HDUIURPWKH
¿VFDO\HDUOHYHOLQ¿VFDO\HDU'RPHVWLF*URXSFRPSDQLHVFRQWLQXHWRSXUVXHVWHDG\DQQXDOUHGXFWLRQVWKURXJKIDFLOLW\LPSURYHPHQWVand emissions management.
,Q¿VFDO\HDU',&*URXSFRPSDQLHVLQ-DSDQUHSRUWHGWRWDOHPLVVLRQVRI92&VRIWRQQHVDGHFUHDVHRIIURP¿VFDO\HDU
7KHSULQFLSDOIDFWRUEHKLQGWKLVUHVXOWZDVWKHGLYHVWLWXUHRI*URXSFRPSDQ\',&.DNR,QFDVLJQL¿FDQWHPLWWHURI92&VDVDUHVXOWRIZKLFKLWZDVH[FOXGHGIURPWKHVFRSHRIFDOFXODWLRQ2YHUVHDV*URXSFRPSDQLHVLQ*UHDWHU&KLQDDQGWKH$VLD±3DFL¿FUHJLRQFRQWLQXHGWRFDUHIXOO\PRQLWRUHPLVVLRQV,QWKH35&LQSDUWLFXODUWKH*URXSLVXSGDWLQJHTXLSPHQWDQGVWHSSLQJXSHPLVVLRQVPDQDJHPHQWSUDFWLFHVLQUHVSRQVHWRWKH
tightening of pertinent local regulations.
Emissions of VOCs (Targeted Chemical Substances) into the Air(551 substances, Including those designated by Japan’s PRTR,*1 and one substance group*2)（Tonnes）

 $ 3 57 5 L V D V F K H P H I R U D V V H V V L Q J D J J U H J DW L Q J
DQG GLVVHPLQDWLQJ GDWD RQ WKH VRXUFH RI KD]DUGRXVFKHPLFDOV DPRXQWV UHOHDVHG LQWR WKH HQYLURQPHQW
a n d a m o u n t s t r a n s f e r r e d of f - s ite f r o m in dust r i alestablishments via waste products.

371

366

15

16

17

18

239

385

14

327

382

541

354

466

500

561

1,000

0

00

13

19

20

DIC Group (Japan) (FY2000=DIC)

DIC Report 2022

90

21

(FY)

 7KH³VXEVWDQFHVDQGRQHVXEVWDQFHJURXS´FRPSULVHVFKHPLFDOVXEVWDQFHVGHVLJQDWHGE\-DSDQ¶V3575DQG
3575GHVLJQDWHGVXEVWDQFHV RWKHUWKDQFODVV DQGRQH
VXEVWDQFHJURXS FKDLQK\GURFDUERQVZLWKXSWR±FDUERQDWRPV WDUJHWHGIRUVWXG\E\WKH-&,$

ESH,Q¿VFDO\HDUWKH',&*URXSLQ-DSDQPRQLWRUHGGLVFKDUJHVRIFODVVFKHPLFDOVXEVWDQFHVGHVLJQDWHGE\WKHFRXQWU\¶V3575DQG
3575GHVLJQDWHGFKHPLFDOVXEVWDQFHV RWKHUWKDQFODVV DQGRQHVXEVWDQFHJURXS FKDLQK\GURFDUERQVZLWKXSWR±FDUERQDWRPV WDUJHWHG
IRUVWXG\E\WKH-&,$'XULQJWKHSHULRG',&DQGWKH',&*URXSLQ-DSDQXVHGDQGRUSURGXFHGDFRPELQHGWRWDORIRIWKHVHVXEVWDQFHVLQDPRXQWVH[FHHGLQJWRQQH
Number of Targeted Chemical
Substances Used and/or Produced
in Japan in Amounts Exceeding
1.0 Tonne in Fiscal Year 2021

Environmental Emissions of VOCs
(Targeted Chemical Substances) (551
Substances, Including Those Designatedby Japan’s PRTR, and One SubstanceGroup) in Japan in Fiscal Year 2021

DIC Group (Japan)
Substance

Emissions
into the environment

DIC Group(Japan)DIC Group (Japan)

133

Targeted Chemical Substances for Which Emissions
Exceeded 10.0 Tonnes in Fiscal Year 2021

Emissions into the air
Emissions into water
Emissions into soil
Total

Ethyl acetate

239 tonnes
34 tonnes
0 tonnes
273 tonnes

100 tonnes
35 tonnes
23 tonnes
12 tonnes
15 tonnes
10 tonnes

Toluene
Methyl ethyl ketone
Propyl alcohol
N-methylpyrrolidone
1,3-Butadiene

2 Reducing SOx, NOx and COD

7DNLQJ¿VFDO\HDUDVWKHEDVH\HDUWKH',&*URXSLQ-DSDQKDVZRUNHGWRUHGXFH62[DQG12[²NH\FDXVHVRIDFLGUDLQ²IURPERLOHUV7KH*URXSKDVDOVRZRUNHGWRUHGXFH&2'DQLQGLFDWRURIHQYLURQPHQWDOLPSDFWLQZDVWHZDWHUSDUWLFXODUO\E\LQVWDOOLQJELRPDVVERLOHUVDQGPRGLI\LQJSURGXFWLRQSURFHVVHV,Q¿VFDO\HDUHPLVVLRQVRI62[E\GRPHVWLF*URXSFRPSDQLHVZHUHWRQQHVDGHFOLQH
RIIURPILVFDO\HDUZKLOHHPLVVLRQVRI
12[ZHUHWRQQHVGRZQIURPWKHEDVH\HDU SOx and NOx Emissions Volumes in Japan

DIC

202

185

177

156

46

38

42

15

16

14

183

182

186

12

9

20

21 (FY)

14

12

8

17

18

19

940

18

723

17

850

810

16

783

831

15

530

844

DIC Group (Japan) (FY2000=DIC)

14

DIC Group (Japan) (FY2000=DIC)

DIC Report 2022

91

186

DIC Group (Japan) (FY2000=DIC)

745,QFRQWUDVWWKHGRPHVWLF',&*URXS¶V&2'ZKLFK （Tonnes）
300
204
KDVUHPDLQHGRQDQXSWUHQGVLQFH¿VFDO\HDU202200DPRXQWHGWRWRQQHVZLWKSULQFLSDOFRQWULEXWLQJ
factors including an increase in production volume
100
DQG FKDQJHV LQ WKH FRPSRVLWLRQ RI WKH *URXS¶V
090
product portfolio. The Group will continue taking
SOxemissionsVWHSV WR UHGXFH &2' E\ HQKDQFLQJ ZDWHU TXDOLW\NOx emissions
management.
2YHUVHDV',&*URXSFRPSDQLHVDUHVZLWFKLQJ COD in Japan
IURP GLHVHO WR QDWXUDO JDV DQG IURP GLHVHO DQG(Tonnes)
KHDY\RLO±ILUHGERLOHUVWRELRPDVVERLOHUVDWVLWHV 1,000
ZLWK DSSURSULDWH LQIUDVWUXFWXUH 7R UHGXFH &2'
the Group is promoting the reuse of water and500
the installment of environment-friendly closedloop recycling and wastewater treatment systems
that purify wastewater to a level that exceeds that090
mandated by law.

19

20

21

(FY)

ESH

3 Complying with Regulations Governing Emissions of Dioxins

7KH',&*URXSPRQLWRUVHPLVVLRQVRIGLR[LQVIURPIDFLOLWLHVLQ-DSDQWKDWSURGXFHWKHVHE\SURGXFWVLQDFFRUGDQFHZLWKWKH$FWRQ6SHFLDO0HDVXUHV$JDLQVW'LR[LQV $FW1RRI $WSUHVHQWWKH*URXSKDVVL[VXFKIDFLOLWLHV&RQWLQXRXVHIIRUWVWRUHGXFHHPLVVLRQVOHYHOVKDYH
HQDEOHGWKH*URXSWRDFKLHYHUHVXOWVWKDWJUHDWO\VXUSDVVVWDQGDUGVVHWIRUWKLQWKH$FW
Dioxin Concentrations in Waste Gas and Wastewater Emissions from DIC Group Incinerators in Japan
Waste gas
Site

Standard(ng-TEC/Nm3)

Wastewater

Emissions reported inÀVFDO\HDU QJ7(&1P3)

Standard(pg-TEC/l)Emissions reported inÀVFDO\HDU SJ7(&O

10

0.02

10

4.9

0.00

10

0.00

10

1.90

NA

̶

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

10

0.00

NA

̶

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

10

0.00

NA

̶

Harima Plant(SEIKO PMC CORPORATION)

10

0.00

NA

̶

Chiba Plant (DIC)*

10

0.66

Hokuriku Plant (DIC)5

DIC Interior Co., Ltd.

4 Ensuring the Appropriate Collection and Storage of PCBs

,Q-DSDQWKH',&*URXSFRQWLQXHVZRUNLQJWRHQVXUHWKHDSSURSULDWHFROOHFWLRQVWRUDJHDQGPDQDJHPHQWRIHTXLSPHQWFRQWDLQLQJSRO\FKORULQDWHG
ELSKHQ\OV 3&%V LQFOXGLQJROGHUPRGHOWUDQVIRUPHUVFDSDFLWRUVDQGVWDELOL]HUVLQDFFRUGDQFHZLWKWKH/DZ&RQFHUQLQJ6SHFLDO0HDVXUHVIRU
3URPRWLRQRI3URSHU7UHDWPHQWRI3&%:DVWHV /DZ1RRI 7KH*URXSDOVRHQVXUHVWKDWHTXLSPHQWFRQWDLQLQJ3&%VLVGLVSRVHGRILQDFFRUGDQFHZLWKWKHSUDFWLFHVRI-DSDQ(QYLURQPHQWDO6WRUDJH 6DIHW\&RUSRUDWLRQ -(6&2 7KH*URXSDOVRPDQDJHVDQGGLVSRVHVDOORWKHU
3&%ZDVWHLQDQDSSURSULDWHPDQQHU
5 Responding to Asbestos Risks

7KH',&*URXSLQ-DSDQWDNHVFDUHWRUHVSRQGWRSRWHQWLDOULVNVDVVRFLDWHGZLWKDVEHVWRVGXULQJGHPROLWLRQRUZKHQUHWUR¿WWLQJHTXLSPHQWDV
RXWOLQHGLQWKH2UGLQDQFHRQWKH3UHYHQWLRQRI+HDOWK,PSDLUPHQWGXHWR$VEHVWRV 0LQLVWU\RI+HDOWK/DERXUDQG:HOIDUH2UGLQDQFH1RRI
 DQGWKHUHYLVHG$LU3ROOXWLRQ&RQWURO/DZ
6 Soil and Groundwater Pollution,QDGGLWLRQWRFRPSO\LQJVWULFWO\ZLWKWKH6RLO&RQWDPLQDWLRQ&RXQWHUPHDVXUHV$FWWKH',&*URXSLPSOHPHQWVVRLODQGJURXQGZDWHUVXUYH\VDQG
FRXQWHUPHDVXUHVDVQHFHVVDU\DQGDVVHVVHVUHODWHGULVNV,Q¿VFDO\HDUDZDUHKRXVH¿UHDWWKH6DLWDPD3ODQWUHVXOWHGLQDVHFWLRQRIWKH
SODQWVLWHEHLQJGHVLJQDWHGXQGHUWKH$FWDVDQ³$UHDIRUZKLFK&KDQJHVWR)RUPRU1DWXUH5HTXLUH1RWL¿FDWLRQ´6XEVHTXHQWVRLOUHPHGLDWLRQHIIRUWVUHVXOWHGLQWKLVGHVLJQDWLRQEHLQJOLIWHGLQ-DQXDU\,QDGGLWLRQDYROXQWDU\VXUYH\FRQGXFWHGDWDWKLUGVLWHEHORQJLQJWRWKH+RNXULNX3ODQWUHVXOWHGLQWKHVLWHEHLQJGHVLJQDWHGDVDQ³$UHDZKLFK5HTXLUHV0HDVXUHV´3XUL¿FDWLRQPHDVXUHVDUHFXUUHQWO\EHLQJLPSOHPHQWHGLQOLQHZLWKWKH$FWDVZHOODVZLWKSHUWLQHQWUHJXODWLRQVDIC Report 2022

92

ESH

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

Scope of target• Reduce industrial waste disposed ofas landfill (achieve zero emissions).
• Reduce industrial waste generated
by production facilities.

Promote recycling.

Japan

Japan

Goal for fiscal year 2021

• Reduce industrial waste disposed ofas landfill.
DIC Group (Japan): 206 tonnes(same as for fiscal year 2020)

Achievement in fiscal year 2021

Evaluation• Industrial waste disposed of as
landfill
DIC Group (Japan): 199 tonnes★★★

• Reduce industrial waste generated
by production facilities.
DIC Group (Japan): 33,894 tonnes(same as for fiscal year 2020)• Industrial waste generated byproduction facilities.
DIC Group (Japan): 30,541 tonnes

Target for resource recycling rate at
DIC Group companies in Japan:
90%

Actual resource recycling rate at
DIC Group companies in Japan:
89%

Goal for fiscal year 2022
• Reduce industrial waste disposedof as landfill.
DIC Group (Japan): 200 tonnes(same as for fiscal year 2020;
down 95% from fiscal year 2000)• Reduce industrial waste generated
by production facilities.
DIC Group (Japan): 45,000 tonnes(same as for fiscal year 2020)★★

Target for resource recycling rate at
DIC Group companies in Japan:
90%* Resource recycling rate is calculated as: (Volume of industrial waste recycled (material recycling) + Waste heat recovered) / Volume of Industrial waste generated| Policies and Organization
Basic Approach
To promote the realization of a circular economy, the DIC Group strives to use resources effectively, as well as to reduce the impact
of its disposal of industrial waste.
In seeking to promote the realization of a circular economy, the DIC Group is stepping up efforts to encourage the reuse, reduction and recyclingof industrial waste and minimizing production losses by increasing throughput yields. The Group also works to fully grasp and manage industrial
ZDVWHIURPJHQHUDWLRQDWSURGXFWLRQIDFLOLW\WKURXJKWRGLVFKDUJHLQWHUPHGLDWHWUHDWPHQWDQG¿QDOGLVSRVDODVODQG¿OODQGWRUHGXFHLWVGLVSRVDO
of industrial waste as landfill by increasing its
DIC’s Efforts to Drive the Realization
recycling rate through the expansion of material“5R”* technologies and development efforts
and Expansion of a Circular Economy
Designthat advance the circular use of resources
DIC will continue to promote the realization andand chemical recycling, and the recovery of* Reuse, Reduce, Recycle, Redesign and Reduce CO₂
expansion of a circular economy through its
businessesbymonitoring
developments
fromScope 1 and 2
waste heat from incineration. To ensure strictmedium- to long-term perspectives.
Reduction/recycling of waste “Zero emissions” initiatives
Customercompliance, the Group has implemented a
Production
comprehensive waste management system
Scope 3 Category 1
Increase procurement rate forcompatible with Japan’s Electronic Manifest
recycled raw materials andScope 3 Category 12
Procurement
Sale
bioderived raw materials(e - M a n i f e s t) sy s t e m , t h e r e by e n s u r i n g
Increase recycling rate
Reduce disposal of
traceability. The Group also conducts on-site
Supplierused products
Recycling
Resource recycling governancechecks to ensure the practices of subcontracted
Use of digital infrastructure
Materials procured throughRealization of chemical
sustainable supply chains
waste disposal companies.
and materials recycling| Principal Initiatives in Fiscal Year 2021
1 Initiatives by the DIC Group in Japan

7KH',&*URXSLQ-DSDQKDVORQJSURPRWHGHPLVVLRQVLQLWLDWLYHVZLWKWKHDLPRIUHGXFLQJWKHWRWDOYROXPHRILQGXVWULDOZDVWHGLVSRVHGRIDVODQG¿OOE\
IURPWKH¿VFDO\HDUOHYHODWDUJHWLWDFWXDOO\DFKLHYHGLQ¿VFDO\HDU:LWKHIIRUWVWRVKLIWWRZDUGDFLUFXODUHFRQRP\LQWHQVLI\LQJLQUHFHQW\HDUVWKH
*URXSLVQRZDOVRZRUNLQJWRUHGXFHZDVWHJHQHUDWHGDQGZDVWHGLVFKDUJHGE\*URXSSURGXFWLRQIDFLOLWLHVDVZHOODVWRFXUEZDVWHGLVSRVHGRIDVODQG¿OO
,Q¿VFDO\HDUWKHWRWDOYROXPHRILQGXVWULDOZDVWHJHQHUDWHGE\',&*URXSSURGXFWLRQIDFLOLWLHVLQ-DSDQDPRXQWHGWRWRQQHVGRZQIURPWRQQHVLQ¿VFDO\HDUDQG¿VFDO\HDUWKDQNVWRUREXVWLQLWLDWLYHVDWHDFKIDFLOLW\WRFXUEZDVWHHPLVVLRQV,QGXVWULDOZDVWHGLVSRVHGRIDVODQG¿OOE\*URXSFRPSDQLHVLQ-DSDQWRWDOHGWRQQHVEHORZWKHDYHUDJHIRUWKHSDVWWKUHH\HDUV WRQQHV *RLQJIRUZDUGWKH*URXSZLOOFRQWLQXHWR
reinforce its zero emissions initiatives.
DIC Group companies also continued working to ensure the appropriate disposal of equipment containing polychlorinated biphenyls (PCBs), as well as topromote the rigorous management of unprocessed waste, including that from transformers, capacitors and stabilizers, through proper collection and storage
in warehouses.
DIC Report 2022

93

ESH

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

DIC Group(Japan)

199
4,326

02

03

tonnesFiscal year 2021

18

199

17

217

16

167

15

204

14

183

13

148

139

12

86

11

80

10

158

09

106

08

232

07

207

537

320

1,288

3,000

991

2,296

6,000

4,190

5,581

9,000

7,981

（Tonnes）

19

20

21（FY）

0

00

01

04

05

06

（Base year）

DIC Group (Japan) (FY2000=DIC)

2 Deployment of a Comprehensive Industrial Waste Management System

In Japan, the e-Manifest system manages the movement of industrial
waste by facilitating the electronic transmission of manifest information
DQGWUDFNLQJWKHÀRZRIZDVWHIURPWUDQVSRUWWRGLVSRVDO8QOLNHSDSHU
manifests, the e-Manifest system offers easy data input and eliminates
the need for administrative reporting and storage by waste generators.
,QILVFDO\HDUWKH',&*URXSLQ-DSDQLQWURGXFHG*(1(6<6
ECO, a comprehensive industrial waste management system for use
ZLWKWKHH0DQLIHVWV\VWHP'HSOR\PHQWRI*(1(6<6(&2DWDOO*URXSSURGXFWLRQVLWHVLQ-DSDQZDVFRPSOHWHGLQILVFDO\HDU
an achievement that has helped to both save labor and ensure legal
compliance containing PCBs, as well as to promote the rigorous
management of unprocessed waste, including that from transformers,
capacitors and stabilizers, through proper collection and storage inwarehouses.
3

Comprehensive Industrial Waste Management System
Groupwide management ofwaste by typeManagement in accordancewith specific rules

System provider

DIC Group in Japan
Generators（JWnet）
Disposers

Corporate headquarters
Substances of value

Sites

Industrial waste

General waste

Sites

Groupwide
management of information
Management of paper manifests and e-manifests

Management of permits and contracts

Initiatives by the DIC Group Overseas

In addition to ensuring that disposal of industrial waste complies with national and regional legal and regulatory requirements, the DIC Group’s production
IDFLOLWLHVRYHUVHDVZRUNWRPLQLPL]HLQGXVWULDOZDVWHWKURXJKWKHYROXQWDU\UHF\FOLQJDQGUHXVHRIPDWHULDOV$WSURGXFWLRQIDFLOLWLHVLQWKH$PHULFDVDQG
(XURSH*UHDWHU&KLQDDQGWKH$VLD±3DFL¿FUHJLRQWKH*URXSLVLQWURGXFLQJQHZZDVWHWUHDWPHQWIDFLOLWLHVDQGSURPRWLQJWKHKRUL]RQWDOGHSOR\PHQWRIEHVW
practices, including those aimed at improving production processes.
,Q¿VFDO\HDULQGXVWULDOZDVWHJHQHUDWHGE\',&*URXSSURGXFWLRQVLWHVRYHUVHDVGLSSHGWRWRQQHVZKLOHLQGXVWULDOZDVWHGLVSRVHGRIDVODQG¿OOE\WKHVHVLWHVGHFUHDVHGWRWRQQHV/RRNLQJDKHDGWKH*URXS¶VRYHUVHDVUHJLRQDOKHDGTXDUWHUVZLOOIRFXVRQUHLQIRUFLQJFRPSOLDQFH
with local laws and regulations, as well as on curbing the generation of industrial waste and the disposal thereof as industrial waste.

TOPIC
DIC Graphics (Thailand)’s Amata Plant Receives Gold Level in AFS’ 2021 Best Waste Management Awards
2Q-DQXDU\',&*UDSKLFV 7KDLODQG &R/WG¶V$PDWD3ODQWUHFHLYHGD*ROG/HYHODZDUGLQWKH%HVW:DVWH0DQDJHPHQW$ZDUGVZKLFKDUHSUHVHQWHGE\$PDWD)DFLOLW\6HUYLFHV&RPSDQ\ $)6 7KDLODQG¶VODUJHVWLQGXVWULDOHVWDWHGHYHORSPHQWDQGPDQDJHPHQWFRPSDQ\7KH%HVW:DVWH0DQDJHPHQW$ZDUGVDUHJLYHQWRFRPSDQLHVZLWKRSHUDWLRQVDWLWV$PDWD&LW\LQGXVWULDOHVWDWHVWKDWH[KLELWH[FHOOHQFHLQWKHUHGXFWLRQRIZDVWHGLVSRVHGRIDVODQG¿OODQGKDQGOLQJRIRWKHUZDVWHLQOLQHZLWKWKH³5V´RIZDVWHPDQDJHPHQWQDPHO\UHGXFHUHXVHDQGUHF\FOH7KURXJKWKLVDZDUGVSURJUDP$)6DLPVWRUDLVHDZDUHQHVVRIWKHLPSRUWDQFH
of effectively managing industrial waste across all of its estates. “DIC Graphics
7KDLODQG ¶V$PDWD3ODQWILUVWSDUWLFLSDWHGLQWKLVSURJUDPLQ´H[SODLQVWKH
FRPSDQ\¶V&KLHI2SHUDWLQJ2IILFHU&KDL\DVLW$GFKDUL\DSRUQ³,QZHZHUHXQDEOHWRWDNHSDUWDVUHVSRQGLQJWR&29,'WRRNSUHFHGHQFH,QWKH\HDUDKHDG
we will further strengthen waste management efforts with the aim of achieving zero
GLVSRVDORIZDVWHDVODQG¿OODQGHDUQLQJD3ODWLQXP/HYHODZDUGLQ´,QSDUWLFLSDWLQJSURGXFWLRQIDFLOLWLHVZHUHDVVHVVHGDQGUHFRJQL]HGLQWKH%HVW:DVWH0DQDJHPHQW$ZDUGVSURJUDP¶V6LOYHU*ROGDQG3ODWLQXP
Kanitta Mahasamut, ESH supervisor (left) and
6LZDSRO<DQJWKRQJIDFWRU\PDQDJHU FHQWHU RI
/HYHOFDWHJRULHV',&*UDSKLFV 7KDLODQG ¶V$PDWD3ODQW

DIC Report 2022

94

ESH

4

Generation and Disposal of Industrial Waste by the Global DIC Group

7KHGHILQLWLRQRI³LQGXVWULDOZDVWH´²LQFOXGLQJZKHWKHULWHQFRPSDVVHVERWKWR[LFDQGQRQWR[LFVXEVWDQFHVDQGERWKKD]DUGRXVDQGQRQKD]DUGRXVVXEVWDQFHV²YDULHVLQGLIIHUHQWFRXQWULHVDQGUHJLRQVDVGRWKHPHWKRGVXVHGWRGLVSRVHRIVXFKZDVWH7KH',&*URXSZRUNVWRHQVXUHWKHPDQDJHPHQW
of industrial waste in a manner appropriate for the degree of danger posed and in compliance with the laws of the countries and territories in which its sites
are located. The Group works to fully grasp and manage industrial waste on a global basis, from generation at production facility through to discharge,
LQWHUPHGLDWHWUHDWPHQWDQG¿QDOGLVSRVDODVODQG¿OO
7KHFKDUWEHORZLOOXVWUDWHVWKHJHQHUDWLRQDQGGLVSRVDORILQGXVWULDOZDVWHE\WKHJOREDO',&*URXSLQ¿VFDO\HDU'DWDRQLQGXVWULDOZDVWHFROOHFWHGE\
the Group encompasses volume generated, volume discharged by production facilities, volume recycled (material recycling and chemical recycling), waste
KHDWUHFRYHUHG IURPERLOHUVDQGLQFLQHUDWRUVDPRQJRWKHUV ZDVWHKHDWQRWUHFRYHUHG LQFOXGLQJIURPLQFLQHUDWLRQ DQGYROXPHGLVSRVHGRIDVODQG¿OO

Industrial Waste Generated and Disposed of by the Global DIC Group in Fiscal Year 2021
Volume incinerated on-site
1,702 tonnes (2%)

Volume recycled on-site
688 tonnes (1%)
Waste heat recovered on-site
16,673 tonnes (16%)

Volume generated
106,790 tonnes (100%)Volume discharged byproduction facilities
87,727 tonnes (82%)

Volume recycled off-site
43,901 tonnes (41%)

Volume reused (outsourced)
64,839 tonnes (61%)

Waste heat recovered off-site
20,938 tonnes (20%)

Volume disposed of as landfill off-site Volume incinerated off-site
14,902 tonnes (14%)
7,986 tonnes (7%)
Note：Percentages in parentheses indicate portion of volume generated

DIC Report 2022

95

ESH

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

Scope of target

Goal for fiscal year 2021

Achievement in fiscal year 2021

Evaluation

Goal for fiscal year 2022

Asses and manage water risks at
production facilities.

GlobalConduct water risk assessments; target
implementation rate for countermeasuresat high-risksites of 20%.

The implementation rate forcountermeasures at high-risk sites
was 24%.

★★★

Target implementation rate forcountermeasures at high-risk sitesof 50%.

| Policies and Organization
Basic Approach
7KH',&*URXSPDLQWDLQVD¿UPJUDVSRIZDWHUULVNVUHOHYDQWWR*URXSRSHUDWLRQVDQGSURPRWHVDYDULHW\RILQLWLDWLYHVWRHQVXUHWKH
effective use of water resources.
Finding effective ways to conserve and manage water resources is a crucial global challenge. The DIC Group withdraws fresh water (tap water and industrial water) for use
in production processes and air conditioning and for drinking, among others. The Group also discharges wastewater—after purifying it in accordance with voluntary internal
VWDQGDUGVWKDWH[FHHGRI¿FLDOVWDQGDUGVLQWKHFRXQWULHVDQGWHUULWRULHVLQZKLFKLWKDVRSHUDWLRQV²LQWRULYHUVDQGRWKHUIUHVKZDWHUERGLHV,QDGGLWLRQWRHYDOXDWLQJZDWHUULVNV
at each of its production sites around the world and implementing countermeasures, the Group works to protect and ensure the effective use of water resources.

| Principal Initiatives in Fiscal Year 2021
1

Assessing Water Risks,QUHFRJQLWLRQRIWKHIDFWWKDWZDWHUULVNVZKLFKLQFOXGHGURXJKWÀRRGVDQGZDWHUTXDOLW\YDU\JUHDWO\IURPUHJLRQWRUHJLRQFRPSDQLHVDUHLQFUHDVLQJO\expected to set targets that take into account local water conditions in line with the World Wide Fund for Nature (WWF), which has stepped up efforts to
help formulate such targets, publishing Setting Site Water Targets Informed by Catchment Context: A Guide for Companies,Q¿VFDO\HDUWKH',&*URXSEHJDQXVLQJWKH$TXHGXFW:DWHU5LVN$WODV WKHSUHIHUUHGZDWHUULVNDVVHVVPHQWWRROWRPDSULVNVDWLWVSURGXFWLRQVLWHVDURXQGWKHZRUOG+RZHYHU
$TXHGXFWDVVHVVHVRQO\UHJLRQDOZDWHUULVNVWKDWLVULVNVDVVRFLDWHGZLWKDVLWH¶VORFDWLRQZKLFKDUHFDXVHGE\H[WHUQDOIDFWRUVDQGGRQRWWDNHLQWR
account operational water risks, which are attributable to internal factors. Accordingly, under the guidance of a third-party organization the Group establisheda consistent global framework for assessing water risks arising from both local water conditions and site operations, which it deployed to screen sites in-DSDQWKH35&DQGWKH$VLD±3DFL¿FUHJLRQ
7KH*URXSEHJDQE\FODVVLI\LQJZDWHUULVNVLQWRFDWHJRULHVVXFKDVGURXJKWÀRRGVDQGZDWHUTXDOLW\DQGPDSSLQJWKHPXVLQJWZRVFDOHVQDPHO\³UHJLRQDOZDWHUULVNV´DQG³RSHUDWLRQDOZDWHUULVNV´DQGFODVVLI\LQJWKRVHVLWHVWKDWUHJLVWHUDWWKHXSSHUHQGRIERWKVFDOHVDVEHLQJKLJKULVN5HJLRQDOZDWHUULVNVZHUHDVVHVVHGXVLQJ$TXHGXFWZKLOHRSHUDWLRQDOZDWHUULVNVZHUHHYDOXDWHGXVLQJDTXHVWLRQQDLUHGHYHORSHGLQKRXVH6FUHHQLQJLGHQWL¿HGVLWHVDVEHLQJKLJKULVN
7KH*URXSWKHQUDQNHGSURGXFWLRQVLWHVLQWHUPVRISRWHQWLDOEXVLQHVVLPSDFWGHVLJQDWLQJIRXUWKDWDFFRXQWIRUDSSUR[LPDWHO\RISURMHFWHGLPSDFW
DVSULRULW\VLWHV,Q¿VFDO\HDUWKH*URXSLPSOHPHQWHGDQGFRQ¿UPHGWKHHIIHFWLYHQHVVRIDYDULHW\RIFRXQWHUPHDVXUHVIRUWKHVHSULRULW\VLWHVXQGHUWKHDXVSLFHVRIWKHDIRUHPHQWLRQHGWKLUGSDUW\RUJDQL]DWLRQ 7KHLPSOHPHQWDWLRQUDWHIRUFRXQWHUPHDVXUHVZDV 7KH*URXSDLPVWRFRPSOHWHLWV
LPSOHPHQWDWLRQRIFRXQWHUPHDVXUHVDWDOOKLJKULVNVLWHVE\¿VFDO\HDU,Q¿VFDO\HDUWKH*URXSZLOOIXUWKHUWLJKWHQLWVZDWHUULVNDVVHVVPHQW
FULWHULDWRLGHQWLI\VLWHVZLWKVRPHZKDWORZHUULVNOHYHOVZKLFKZLOOEHGHVLJQDWHGPHGLXPULVN%HWZHHQWKHQDQG¿VFDO\HDUWKH*URXSDLPVWRDOVR
gradually implement countermeasures at these medium-risk sites.
7KH',&*URXSXVHVWKH:RUOG5HVRXUFHV,QVWLWXWH :5, $TXHGXFW:DWHU5LVN$WODVWRPDSZDWHUULVNVLQFOXGLQJZDWHUVWUHVVGURXJKWDQGÀRRGVDWVLWHVZRUOGZLGH

Operational water risks

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

2024

2030

Revise water risk
assessment criteria

Assess water
risks

Identify 17
high-risk sites

2025

Rank sites in terms ofpotential business impact

Category

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

DIC Report 2022

96

Complete implementationof countermeasuresat high-risk sites

Identify
medium-risk sites

Rank sites in terms ofpotential business impact

Complete implementationof countermeasures at
medium-risk sites

ESH$VVHVVPHQWRIUHJLRQDOZDWHUULVNVXVLQJ$TXHGXFWManaging the Withdrawal and Discharge of Water at Sites

Total Fresh Water Withdrawn (Fiscal Years 2019–2021)

6LQFHILVFDO\HDUWKH',&*URXSKDVXVHGWKH*OREDO
5HSRUWLQJ,QVWLWXWH *5, JXLGHOLQH IRUFROOHFWLQJGDWDRQIUHVKwater withdrawn and wastewater discharged at each of its
VLWHV,QILVFDO\HDUWKH',&*URXSLQ-DSDQZLWKGUHZPRIIUHVKZDWHUDQGGLVFKDUJHGP of
ZDVWHZDWHUERWKXSIURP¿VFDO\HDU,QFRQWUDVWWKH
',&*URXSRYHUVHDVZLWKGUHZP of fresh water and
GLVFKDUJHGPRIZDVWHZDWHUGRZQDQGUHVSHFWLYHO\$VDFRQVHTXHQFHIUHVKZDWHUZLWKGUDZQE\WKH
JOREDO',&*URXSLQ¿VFDODPRXQWHGWRP,
while wastewater discharged by the global DIC Group totaledPERWKGRZQ

40,000Fresh water withdrawn (1,000 m3)

2

30,00020,00010,000

0
2019

2020

2021

2019

Japan

Surface water (rivers, etc.)

Groundwater

2020

2021

Overseas

Rainwater

Wastewater generated byother organizations

2019

2020

2021

GlobalTap water/industrial water

Others7KLVJXLGHOLQHLVLQFOXGHGLQWKH*5,¶V*6XVWDLQDELOLW\5HSRUWLQJ*XLGHOLQHV

3

Efforts to Reduce Water Use

0RVWRIWKHZDWHUXVHGE\WKH',&*URXSLVIRUWKHFRROLQJRIHTXLSPHQW$FFRUGLQJO\WKH*URXSZRUNVWRUHF\FOHZDWHUXVLQJWRZHUVDPRQJRWKHUV,QDGGLWLRQ',&¶V&HQWUDO5HVHDUFK/DERUDWRULHVLQ&KLED-DSDQDQGVXEVLGLDU\6LDP&KHPLFDO,QGXVWU\&R/WGLQ7KDLODQGKDYH
achieved zero emissions of wastewater and are working to reduce their respective impact on water resources.
$W',&¶V&HQWUDO5HVHDUFK/DERUDWRULHVJURXQGZDWHULVXVHGWRVXSSO\WKHDSSUR[LPDWHO\P of water consumed by the site daily, of which
WZRWKLUGVLVIRU³GRPHVWLF´ JHQHUDO XVHDQGRQHWKLUGLVIRU³UHVHDUFK´ LQGXVWULDO XVH
Domestic wastewater (graywater) is recovered, treated using a combined septic system and
UHXVHGDVQRQSRWDEOHZDWHUIRUÀXVKLQJWRLOHWVZKLOHLQGXVWULDOZDVWHZDWHULVELRORJLFDOO\or physically/chemically treated, purifying it to a level comparable with tap water, and thenreused in research for, among others, cooling and the washing of instruments. Residual
water is disposed of into the atmosphere using an evapotranspiration device, the final
component of a fully closed system that means all water is treated, reused or disposed of
RQVLWH/RRNLQJDKHDGWKH&HQWUDO5HVHDUFK/DERUDWRULHVZLOOFRQWLQXHZRUNLQJWRUHGXFH
WKHDPRXQWRIZDWHULWZLWKGUDZVE\SURPRWLQJWKHLQWURGXFWLRQRISXUL¿FDWLRQHTXLSPHQWWRLPSURYHWKHTXDOLW\RIUHXVHGZDVWHZDWHU
4

Reporting to the CDP’s Water Security Program in 2021

The CDP is an international non-profit organization that operates a global disclosure system that seeks to promote greenhouse gas
emissions reductions, water resources management and forest conservation. The CDP works on behalf of institutional investors around the
ZRUOGWRFROOHFWDQGHYDOXDWHLQIRUPDWLRQRQFRUSRUDWHLQLWLDWLYHVWRDGGUHVVHQYLURQPHQWDOLVVXHV,Q¿VFDO\HDU',&UHFHLYHGDVFRUH
RI%LQWKH&'3¶V:DWHU6HFXULW\SURJUDP*RLQJIRUZDUGWKH&RPSDQ\ZLOOFRQWLQXHZRUNLQJWRVWUHQJWKHQLWVZDWHUVHFXULW\LQLWLDWLYHVDQG
earn a higher evaluation.
DIC Report 2022

97

ESH

Biodiversity
Basic Approach
The DIC Group works to grasp the impact of its operating activities on biodiversity and to use land and natural capital in asustainable manner.

| Preserving Biodiversity
1

Protecting Satoyama* Areas

The DIC Group recognizes the preservation of biodiversity as a critical challenge. As part of DIC Management School, the Group’s training module forsenior management in Japan, in January 2011 a lecture was given by an outside expert on the relationship between corporate activities and biodiversity. The
lecture was attended by executives from corporate headquarters, as well as from plants and Group companies across the country, and prompted the launchof a wide range of related initiatives. For example, the same year brought the launch of an initiative designed to ensure an effective grasp of the relationshipbetween the Group’s operating activities and biodiversity at all stages of its products’ life cycle, from R&D and the procurement of raw materials through to
end-of-life disposal or recycling. In April 2011, experts from the Chiba Biodiversity Center,a prefectural government organization, observed the natural forest and gardens on the
30-hectare site in Sakura, Chiba Prefecture, occupied by the Central Research Laboratories
and the Kawamura Memorial DIC Museum of Art, giving DIC’s biodiversity management
efforts high marks and offering advice for future initiatives.
From the beginning, DIC has used a closed system for circulating and reusing groundwater
for the Central Research Laboratories and hired a waste processing firm to ensure no
wastewater escaped from the site. The site’s satoyama landscape makes it an ideal home for
QXPHURXVWUHHDQGÀRZHUYDULHWLHVDVZHOODVIRUDQDEXQGDQFHRIRWKHUZLOGOLIHLQFOXGLQJ
birds and insects. Loved by the local community, the site has welcomed approximately 200,000 The forest and gardens of the site occupied by the Kawamura Memorial DIC
0XVHXPRI$UWDUHDOZD\VDOLYHZLWKVHDVRQDOÀRZHUVDQGIROLDJH
visitors annually since the opening of the Kawamura Memorial DIC Museum of Art in 1990.
* SatoyamaLVD-DSDQHVHWHUPDSSOLHGWRWKHDUHDEHWZHHQPRXQWDLQIRRWKLOOVDQGDUDEOHÀDWODQG

2 8VHRI)6&&HUWLÀHG3DSHU

DIC prints the DIC Report, its convocation notice, interim report (in Japanese only), pamphlets for its production facilities and the Central Research/DERUDWRULHVDQG7KH',&:D\+DQGERRNRQSDSHUFHUWL¿HGE\WKH)RUHVW6WHZDUGVKLS&RXQFLO )6& 
3 Participation in JBIBIn April 2022, DIC joined the Japan Business Initiative for Biodiversity (JBIB). JBIB is a group of Japanese companies committed to preserving biodiversitythat works actively to collect the latest information and network with other members. The DIC Group is conducting study sessions with outside experts andcompanies from other industries with the objective of promoting more ambitious efforts to preserve biodiversity,

Biodiversity Initiatives at the Kawamura Memorial DIC Museum of Art
At the Kawamura Memorial DIC Museum of Art, located adjacent to the Central Research Laboratories on the same expansive site, 300 broadleaf tree seedlings arebeing planted in a corner originally occupied by a cedar forest. This effort is being undertaken as part of a three-year plan (continuing until 2023) to create a thicket oftrees, with attention given to ensuring an ecosystem that would support coexistence with wild birds and small animals.
In this originally satoyama area, grafting was historically used to grow cedars for processing into lumber. While grafting leads to swift growth, the resulting trees
can be prone to disease. After this part of the site became the property of the Kawamura Memorial DIC Museum of Art, these grafted cedars were not harvested forlumber and simply left to grow for much longer than theywould otherwise have been, as a consequence of which
the trunks of many weakened from within. For the past
several years, the museum has been thus forced to cut
the trees down to prevent them falling, leaving an areaof unsightly stumps. In 2021, the museum planted 100
seedlings of 10 different trees, including sawtooth oak,beech, Chonowski’s hornbeam, kobus magnolia andyamazakura, a variety of wild cherry.
Museum staff take part in planting seedlings

DIC Report 2022

98

ESH

Safety in Logistics
Responsible Logistics
Goals and Achievements of Major Initiatives (YDOXDWLRQVDUHEDVHGRQVHOIHYDOXDWLRQVRIFXUUHQWSURJUHVV.H\★★★ ([FHOOHQW★★ 6DWLVIDFWRU\★ 6WLOOQHHGVZRUN
Objective of initiatives

Reduce CO2 emissions
attributable to logistics.

Scope of target

Goal for fiscal year 2021

Achievements in fiscal year 2021 Evaluation

Goal for fiscal year 2022

Japan

Reduce energy consumption per unitof production attributable to logistics
by 1% by promoting modal shift andimproving transport efficiency.

1. Energy consumption per unit ofproduction attributable to logistics
was down from fiscal year 2020.
2. CO 2 emissions attributable tologistics declined 1%.

Reduce energy consumption per unitof production attributable to logistics
by 1% by promoting modal shift andimproving transport efficiency.

★★
★★

Basic Approach
7KH',&*URXSZRUNVZLWKORJLVWLFVSDUWQHUVWRPLQLPL]HULVNVLQFOXGLQJE\VXSSO\LQJLQIRUPDWLRQQHHGHGIRUWKHVDIHVKLSSLQJWUDQVSRUWRILWVSURGXFWV| Policies and Framework for Promotion
Having positioned the reduction of CO2 emissions attributable to the transport of its products as a key aspect of its commitment to promoting Responsible&DUH',&VHWVDQQXDOWDUJHWVDQGSURPRWHVUHODWLYHLQLWLDWLYHVRQDQRQJRLQJEDVLV',&¶VORJLVWLFVFRQ¿JXUDWLRQ²FRPSRQHQWVRIZKLFKLQFOXGHWUDQVSRUWEHWZHHQSURGXFWLRQIDFLOLWLHVWKHWUDQVSRUWRISURGXFWVWRFXVWRPHUVDQGLQWHUQDWLRQDOORJLVWLFV²SUHYLRXVO\FHQWHUHGRQDGHGLFDWHGVXEVLGLDU\HVWDEOLVKHGLQZKLFKRSHUDWHGXQGHUWKHGLUHFWVXSHUYLVLRQRI',&6LQFHWKHQWKH&RPSDQ\KDVZRUNHGFORVHO\ZLWKWKLVDQGRWKHUSDUWQHU¿UPVWRLPSURYHWKHVDIHW\of, and to reduce CO2HPLVVLRQVDWWULEXWDEOHWRORJLVWLFV:LWKWKHDLPRIUHVSRQGLQJEHWWHUWRVRFLDOLPSHUDWLYHVDVVRFLDWHGZLWKWKHWUDQVSRUWRIFKHPLFDOV
over the medium term, in January 2016 DIC combined logistics components of its various departments to create the independent Logistics Department.
7KH/RJLVWLFV'HSDUWPHQWZKLFKFRQVLVWVRIWKH'RPHVWLF3ODQQLQJ*URXSDQGWKH2YHUVHDV3ODQQLQJ ,QWHUQDWLRQDO7UDGH$GPLQLVWUDWLRQ*URXSLVFKDUJHGZLWKDGYDQFLQJLQLWLDWLYHVWRHQKDQFHWKHVDIHW\DQGUHGXFHWKHHQYLURQPHQWDOLPSDFWRIORJLVWLFV7KH'RPHVWLF3ODQQLQJ*URXSDVDFRQVLJQRUFRRUGLQDWHVZLWKORJLVWLFVSDUWQHUV²WKLUGSDUW\ORJLVWLFV 3/ 1 ¿UPV²WRIRUPXODWHORJLVWLFVSROLFLHVDQGSURPRWHSODQVGHVLJQHGWRHQKDQFHWKHHI¿FLHQF\RI
GRPHVWLFORJLVWLFV7KH2YHUVHDV3ODQQLQJ ,QWHUQDWLRQDO7UDGH$GPLQLVWUDWLRQ*URXSLVFKDUJHGZLWKSODQQLQJDQGGHYLVLQJVWUDWHJLHVWRRSWLPL]HORJLVWLFVDFURVV$VLDSURPRWLQJ*URXSZLGHHIIRUWVWRFDSLWDOL]HRQH[SRUWFRQWUROVDQGIUHHWUDGHDJUHHPHQWV )7$V 2LQOLQHZLWKWKH)RUHLJQ([FKDQJH/DZDQG
LPSOHPHQWLQJPHDVXUHVWRUHGXFHLPSRUW±H[SRUWFRVWV3/VDUH¿UPVWKDWSURYLGHSDUWLDORUFRPSOHWHRXWVRXUFHGORJLVWLFVVHUYLFHV)7$VDUHDJUHHPHQWVEHWZHHQWZRRUPRUHFRXQWULHVRUFXVWRPVWHUULWRULHVWRHOLPLQDWHWUDGHEDUULHUVIRUDVHWSHULRGRIWLPHWKHUHE\HQFRXUDJLQJWUDGH

',&·V/RJLVWLFV&RQÀJXUDWLRQ

Conﬁrmation of
execution

Regular safety
and environment
meetings(Policy/initiatives/
discussions)Ɣ Loading and unloadingƔ Transport between production facilities
Ɣ Delivery of products(Ɣ Transport of purchased materials)
Others

DIC’s Logistics
Department
࡛ Domestic Planning Group࡛ Overseas Planning & International
Trade Administration Group

Overseas
Group companies
Supporteﬀorts

Product divisions

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

DIC Report 2022

99

ESH

| 5HGXFLQJ(QYLURQPHQWDO,PSDFWDQG6XSSRUWLQJ:KLWH/RJLVWLFV
7KHRSHUDWLQJHQYLURQPHQWIRU-DSDQ¶VORJLVWLFVLQGXVWU\FRQWLQXHVWRUHFRYHUIURPDWHPSRUDU\GHFUHDVHLQVKLSPHQWYROXPHDWWULEXWDEOHWR&29,'EXWWKHLVVXHRIGULYHUVKRUWDJHVSHUVLVWVRZLQJWRWKHJURZLQJSRSXODULW\RIHFRPPHUFHDQGUHVWULFWLRQVRQGULYHUV¶ZRUNLQJKRXUVUHVXOWLQJIURPDOHJDODPHQGPHQWGXEEHGWKH³LVVXH´,Q
DGGLWLRQWKH-DSDQHVHJRYHUQPHQW¶VWDUJHWIRUDFKLHYLQJDUHGXFWLRQRIJUHHQKRXVHJDVHPLVVLRQVE\¿VFDO\HDUDQQRXQFHGLQ$SULOREOLJHGFRPSDQLHVWR
VWHSXSHIIRUWVWRORZHUWKHEXUGHQRIORJLVWLFVDFWLYLWLHVRQWKHHQYLURQPHQW$JDLQVWWKLVEDFNGURS',&FRQWLQXHVWRSURPRWHWKHWUDQVSRUWRISURGXFWVXVLQJPRGHVTXDOLI\LQJDV³PRGDOVKLIW´LQ-DSDQZLWKWKHDLPRIUHGXFLQJWKHHQYLURQPHQWDOLPSDFWRIWKHWUDQVSRUWRILWVSURGXFWV,Q¿VFDO\HDUWKH&RPSDQ\EHJDQXVLQJODUJHUWUXFNVDQGWRRNGHFLVLYHVWHSVWRLPSURYHORDGLQJHI¿FLHQF\DVDUHVXOWRIZKLFKLW
achieved declines in energy consumption and CO2HPLVVLRQVDWWULEXWDEOHWRORJLVWLFVRIDQGUHVSHFWLYHO\',&DOVRFRQWLQXHVWRVXSSRUWWKH:KLWH/RJLVWLFV0RYHPHQWDQLQLWLDWLYHSXWIRUZDUGE\WKUHHJRYHUQPHQWPLQLVWULHV²WKH0LQLVWU\RI/DQG,QIUDVWUXFWXUH7UDQVSRUWDQG
7RXULVPWKH0LQLVWU\RI(FRQRP\7UDGHDQG,QGXVWU\DQGWKH0LQLVWU\RI$JULFXOWXUH)RUHVWU\DQG)LVKHULHV²WRLPSURYHZRUNLQJHQYLURQPHQWVLQWKHORJLVWLFVLQGXVWU\%\LPSOHPHQWLQJPHDVXUHVLQOLQHZLWKLWVRZQGHFODUDWLRQRIYROXQWDU\DFWLRQWKH&RPSDQ\DOVRZRUNVWRVWUHQJWKHQFRRSHUDWLRQZLWKORJLVWLFVSDUWQHUVDQGWUDQVSRUWFRPSDQLHVWRHQVXUHEXVLQHVVFRQWLQXLW\,Q¿VFDO\HDUWKH&RPSDQ\VXFFHHGHGLQUHGXFLQJWKHZRUNDVVRFLDWHGZLWKSDOOHWWUDQVVKLSPHQWLQVRPHDUHDVDWSURGXFWLRQIDFLOLWLHV
using returnable pallets. The use of returnable pallets has contributed to a decrease in CO2HPLVVLRQVUHVXOWLQJIURPWKHGLVSRVDORIRQHZD\SDOOHWV',&*URXSFRPSDQLHVRYHUVHDVDOVRFRQWLQXHWRDFWLYHO\DGYDQFHWKHXVHRIUHWXUQDEOHSDOOHWVDQGRWKHULQLWLDWLYHVWRORZHUWKHHQYLURQPHQWDOLPSDFWRIWKHLUORJLVWLFVDFWLYLWLHV

CO2(PLVVLRQVDQG(QHUJ\&RQVXPSWLRQSHU8QLWRI3URGXFWLRQ$WWULEXWDEOHWR',&*URXS/RJLVWLFV$FWLYLWLHVLQ-DSDQ(Tonnes)(GJ/10,000 tonne km)(%)

30,00030

25,00025

20,00020

CO2 emissions(tonnes)

15,00015

Energy consumption(GJ/10,000 tonne km)

10,000

10

5,000

5

:RUNLQJZLWKORJLVWLFVSDUWQHUVWRLQFUHDVHORDGFDUU\LQJHIILFLHQF\

00
11 12 13 14 15 16 17 18 19 20 21(FY)| Safety Management in Logistics
Safety Management Initiatives
7KHILUPVWRZKLFKWKH',&*URXSRXWVRXUFHVORJLVWLFVXVHFRQWDLQHUVWKDWFRPSO\ZLWKWKH)LUH6HUYLFH
$FWDQGRWKHUWUDQVSRUWDWLRQODZVDVZHOODVZLWKUHODWHG81VWDQGDUGV7KH*URXSVXSSOLHVLQIRUPDWLRQ
QHHGHGWRGLVSOD\ODEHOVFRPSO\LQJZLWKWKH*OREDOO\+DUPRQL]HG6\VWHPRI&ODVVLILFDWLRQDQG/DEHOLQJ
RI&KHPLFDOV *+6 1 DQGSURYLGHVVDIHW\GDWDVKHHWV 6'6V 2) and other documentation to ensure safe
VKLSSLQJZKHWKHULQ-DSDQRURYHUVHDV7KH*URXSDOVRKROGVLQKRXVHSUHVHQWDWLRQVUHJDUGLQJWUDQVSRUWRISURGXFWVUHTXLULQJ81QXPEHUV LHKD]DUGRXVVXEVWDQFHV E\VHDDQGDLUWRIDFLOLWDWHWKHVKDULQJRI
information, including alerts.
,Q-DSDQWKH/RJLVWLFV'HSDUWPHQWFRRSHUDWHVZLWKORJLVWLFVSDUWQHUVPHHWLQJUHJXODUO\WRGLVFXVVPHDVXUHVIRULPSURYLQJWKHVDIHW\RIERWKORDGLQJDQGWUDQVSRUWZRUN2ISDUWLFXODUQRWHORJLVWLFVTXDOLW\
LVVXHVWKDWFDXVHWURXEOHIRUFXVWRPHUV²LQFOXGLQJOHDNVXQGHOLYHUHGFDUJRDQGGHOLYHU\HUURUV²DUH
designated as incidents for priority attention and targets, number of incidents, causes and countermeasures
are confirmed at monthly meetings. The department is also promoting a variety of steady efforts, including
initiatives aimed at ensuring past accidents are not forgotten and regular logistics safety campaigns. In
DGGLWLRQPHPEHUVRISODQWKHDOWKDQGVDIHW\FRPPLWWHHVDWWHQGHDFKRWKHU¶VPHHWLQJVDVZHOODVPHHWLQJVRIORJLVWLFVSDUWQHUV¶VLWHJHQHUDOPDQDJHUVDFURVV-DSDQWRH[FKDQJHLQIRUPDWLRQDQGHQFRXUDJHRQVLWH
safety improvement initiatives.
7KH/RJLVWLFV'HSDUWPHQWLQVSHFWVWKHRIILFHVRIORJLVWLFVSDUWQHUVORFDWHGRQVLWHDWLWVPDLQGRPHVWLF
SURGXFWLRQIDFLOLWLHV,QILVFDO\HDULVVXHVZHUHSRLQWHGRXWDWIRXURIWKHVHRIILFHVDIWHUZKLFKLPSURYHPHQWVZHUHFRQILUPHG,QDGGLWLRQ',&HQGHDYRUVWRPDLQWDLQDQGHQKDQFHVDIHW\E\UHTXLULQJWUDQVSRUWSHUVRQQHOWRFDUU\<HOORZ&DUGV 

5HJXODUPHHWLQJVZLWKORJLVWLFVSDUWQHUV<HOORZ&DUGFDUULHGE\WUDQVSRUWSHUVRQQHO

7KH*+6ZDVIRUPDOO\DGRSWHGE\WKH81LQWRIDFLOLWDWHWKHXQLIRUPJOREDOFODVVL¿FDWLRQDQGODEHOLQJRIKD]DUGLQIRUPDWLRQIRUFKHPLFDOV
6'6VFRQWDLQLQIRUPDWLRQRQWKHKD]DUGVRIFKHPLFDOVWRHQVXUHWKHLUVDIHKDQGOLQJ <HOORZ&DUGVDUHSDUWRIDFWLYLWLHVUHFRPPHQGHGE\WKH-DSDQ&KHPLFDO,QGXVWU\$VVRFLDWLRQ -&,$ 7KHVHFDUGVFRQWDLQLQIRUPDWLRQDERXWWKHFRUUHFWDFWLRQVWRWDNHLIDQDFFLGHQWoccurs. They provide contact detailsWRHQVXUHSURSHUUHVSRQVHVE\WUDQVSRUWDWLRQFRPSDQLHV¿UH¿JKWHUVDQGSROLFHRI¿FHUVLIDQDFFLGHQWRFFXUVGXULQJWKHWUDQVSRUWRIFKHPLFDO substances. Transport personnel must carry these cards at all times.

DIC Report 2022

100

ESH

TOPIC
(QYLURQPHQW6DIHW\DQG4XDOLW\0HHWLQJVLQWKH(UDRI&29,''XULQJILVFDO\HDUWKH&29,'SDQGHPLFPDGHLWQHFHVVDU\IRU',&WR
WDNHHQYLURQPHQWVDIHW\DQGTXDOLW\PHHWLQJVZLWK3/VORFDWHGRQVLWHDWLWV
domestic production facilities online. Despite the restrictions of the online format
for safety training, the Company reiterated the importance of robust safety
DZDUHQHVVDQGOHDUQLQJIURPSDVWDFFLGHQWVERWKRIZKLFKLWEHOLHYHVSOD\HGDNH\UROHLQUHGXFLQJWKHSURFHVVDFFLGHQWIUHTXHQF\UDWHIRUWKHSHULRG
2QOLQHHQYLURQPHQWVDIHW\DQGTXDOLW\PHHWLQJVOICE 5HFHQW\HDUVKDYHXQGHUVFRUHGWKHLPSRUWDQFHRIORJLVWLFVLQWLPHVRIFULVLV'HVSLWHUREXVWFRQVXPHUGHPDQGZRUOGZLGHVKLSSLQJFDSDFLW\UHPDLQHGWLJKWLQWKHVHFRQG\HDURI&29,'UHPLQGLQJXVRQFHDJDLQRIWKHLPSRUWDQFHRIORJLVWLFV7KH2O\PSLFDQG3DUDO\PSLF*DPHV7RN\RGHOD\HGE\WKHSDQGHPLFSURFHHGHGZLWKRXWPDMRUGLVUXSWLRQ
DV-DSDQVXFFHHGHGLQPDLQWDLQLQJWKHVWDELOLW\RIORJLVWLFVWKURXJKRXWWKH\HDUEXWWKHZRUVHQLQJVLWXDWLRQLQ8NUDLQHVLQFHHDUO\KDVEHJXQWRQHJDWLYHO\DIIHFWGRPHVWLFORJLVWLFVDVZHOODVLPSRUWVDQGH[SRUWV,QWKLVIUDXJKWHQYLURQPHQWWKH/RJLVWLFV'HSDUWPHQWUHPDLQVNHHQO\DZDUHRIWKHLPSRUWDQFHRISULRULWL]LQJVDIHW\DQGHQYLURQPHQWDOFRQFHUQV$VVXFKZHZRUNFORVHO\ZLWKORJLVWLFV¿UPVDQGVKLSSLQJFRPSDQLHVWRUHGXFHERWKWKHHQYLURQPHQWDOLPSDFWRIRXUORJLVWLFVDFWLYLWLHVDQGORJLVWLFVUHODWHGDFFLGHQWVZLWKWKHJRDORIFRQWULEXWLQJWRWKHUHDOL]DWLRQRIDVXVWDLQDEOHVRFLHW\*RLQJIRUZDUGZHZLOOFRQWLQXH
WRFRRSHUDWHZLWKRXUORJLVWLFVSDUWQHUVWRSURPRWHPRGDOVKLIWDQGVXSSRUWWKH:KLWH/RJLVWLFV0RYHPHQWGeneral Manager, Logistics Department, DIC Corporation

DIC Report 2022

101

Kenichi Tsuruta

ESH

Ensuring the Safety of Chemical Substances
Goals and Achievements of Major Initiatives Evaluations are based on self-evaluations of current progress. Key: ★★★ = Excellent; ★★ = Satisfactory; ★ = Still needs work
Objectives of initiatives• Enhance functions of comprehensive
chemical substance information management
systems.
• Continue to expand deployment of theWercs and Atrion at DIC Group companies
overseas.

• Review business flow to ensure compliancewith laws and regulations around the world.
• Comply with laws and regulations overseas.

Scope of target

Goals for fiscal year 2021

Achievements in fiscal year 2021

• Japan• PRC• Asia–Pacificregion• Launch the new comprehensive
global chemical substanceinformation management system
in Japan.
• Promote deployment of theWercs and Atrion at DIC Group
companies overseas.

• The new CIGNAS system waslaunched in Japan in November
2021.
• Preparations for deployment
at Group companies in Greater
China proceeded.

• Verify new business flow to andmake necessary amendments.
• Address revisions to China
REACH.
• Promote compliance with Taiwan’s
TCSCCA.

• The review process was completed
and the new business flow was
implemented in Japan.
• Notification procedures for new
chemical substances were amended
and a post-declaration management
process for declared substances wasestablished and is now in use inJapan and the PRC.
• One chemical substance was registeredin advance. The registration plan is now
being reviewed in response a legal
amendment that extended theregistration deadline.

• Japan• PRC• Asia–PacificregionEvaluation Goals for fiscal year 2022

★★★

★★★

• Launch the new comprehensive
global chemical management
system in the PRC.
• Promote deployment of theWercs and Atrion at DIC Group
companies overseas.

★★★

★★★

• Deploy new business flow inGreater China.
• Address revisions to K-REACH.
• Address revisions to labelingand reporting-related laws
and regulations in the PRC.

★★★

¦ Policies and Framework for Promotion

Basic Approach
The DIC Group continues working to provide appropriate information to stakeholders to ensure the appropriate handling of its
products over their entire life cycle.
In 2002, countries and territories participating in the World Summit on Sustainable Development (WSSD) in Johannesburg, South Africa, including the UnitedStates, European Union member states and Japan, agreed on a goal for the management of chemical substances to minimize the impact thereof on human healthand the environment by 2020. In 2015, the UN General Assembly set the SDGs, a collection of common goals designed as a blueprint for global society.
As a comprehensive chemicals manufacturer with operations around the world, the DIC Group created uniform standards for managing chemical substances thatexceed legal and regulatory standards well before the WSSD. In line with its Environment, Safety and Health Policy (established in 1992), the Group views productstewardship* as the foundation of Responsible Care and works to provide stakeholders with information on the appropriate handling of its products over their entire
life cycle. The Group has also promoted efforts to eliminate substances of high concern specified in the Montreal Protocol on Substances that Deplete the Ozone
Layer, the Stockholm Convention on Persistent Organic Pollutants and the Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous
Chemicals and Pesticides in International Trade, as well as to develop alternatives that exert less of an impact on the environment. To this end, the DIC Group has
established bases in the PRC and the Asia–Pacific region, better positioning it to disseminate information to Group companies around the world.
* Product stewardship is a philosophy that emphasizes assessing product-specific risks and sharing findings and information on appropriate handling with stakeholders with the aim of reducing
the ESH impact of products over their entire life cycle, i.e., from the development of chemical substances through to procurement, production, transport, sale, use and disposal or recycling.

¦ Managing Chemical Substances
In 2003, the UN Economic Commission for Europe (UNECE) issued the first edition of the GHS. Many countries have since introduced the GHS, including Japan,
which in 2006 compelled use of the system in the Industrial Safety and Health Act. As part of its effort to ensure effective product stewardship, the foundation of
Responsible Care, and to emphasize the management of chemical substances across its entire supply chain, DIC sought to respond to this development, as wellas to provide customers with crucial hazard-related information.
Concurrent with the enforcement of the Industrial Safety and Health Act in 2006, DIC began providing GHS-compliant SDSs. In 2009, the Company developed
CIRIUS (Chemical Substance Information Comprehensive Management System), a proprietary system that centralizes the management of information on
chemical substances in raw materials and products, as well as automatically checks various laws and regulations—including the Act on the Evaluation ofChemical Substances and Regulation of Their Manufacture, etc.—to facilitate swift responses to customers’ requests for information. In 2013, DIC began using
the Wercs, an SDS and label creation system that facilitates the translation of data into 46 languages, for products destined for overseas markets, while in 2015

DIC Report 2022

102

ESH

LWDOVREHJDQGHSOR\LQJWKH:HUFVDWRYHUVHDV*URXSFRPSDQLHV$WSUHVHQWWKHV\VWHPLVLQXVHDWFRPSDQLHVLQFRXQWULHVDQGWHUULWRULHV',&DOVRFRQWLQXHVWRDGYDQFHWKHFUHDWLRQRIDQHZFRPSUHKHQVLYHJOREDOFKHPLFDOVXEVWDQFHLQIRUPDWLRQPDQDJHPHQWV\VWHP&,*1$6 &KHPLFDOV,QIRUPDWLRQ*OREDO1HWZRUN$FFHVV6\VWHP ZKLFKLQWHJUDWHV&,5,86DQGWKH:HUFV,QDGGLWLRQLQ¿VFDO\HDUWKH&RPSDQ\ODXQFKHG&,*1$6LQ-DSDQ&XUUHQWSODQVDUH
WRDOVREHJLQXVLQJWKHQHZV\VWHPDW',&*URXSFRPSDQLHVLQWKH35&LQ¿VFDO\HDUDQGLQWKH$VLD±3DFL¿FUHJLRQWKHUHDIWHUZLWKWKHDLPRIDFKLHYLQJIXOOJOREDOGHSOR\PHQWLQ¿VFDO\HDU7KH6XQ&KHPLFDO*URXSKDVXVHG$WULRQ,QWHUQDWLRQDO,QF¶VFKHPLFDOVXEVWDQFHPDQDJHPHQWV\VWHPVLQFH
HQDEOLQJLWWRSURYLGHKLJKO\DFFXUDWHLQIRUPDWLRQWRLWVFXVWRPHUVZRUOGZLGH
5HFRJQL]LQJWKHLPSRUWDQFHRIVSHFLDOL]HGH[SHUWLVHLQWKHPDQXIDFWXUHLPSRUWDQGKDQGOLQJRIFKHPLFDOVXEVWDQFHVLQDFFRUGDQFHZLWKDSSOLFDEOHODZVDQG
UHJXODWLRQVLQ',&EHJDQWUDLQLQJHPSOR\HHVSURYLGLQJUHODWHGWUDLQLQJ6LQFHWKH&RPSDQ\KDVKDGDSURSULHWDU\OLFHQVLQJV\VWHPGHVLJQHGWRPDLQWDLQDQGHQKDQFHWKHVNLOOVRILWVLQKRXVHFKHPLFDOVXEVWDQFHPDQDJHPHQWH[SHUWVThe DIC Group’s Global Chemical Substance Information Management Systems

7UDLQLQJ

教育)RVWHULQJH[SHUWV

管理システム0DQDJHPHQWV\VWHP,QWURGXFWLRQRIOLFHQVLQJV\VWHP,QWURGXFWLRQRIWUDLQLQJIUDPHZRUNBusiness area

&RPSOLDQFHZLWKODZVDQGUHJXODWLRQVLQ-DSDQDQGRYHUVHDVSDS creation system

CIRIUS
The Wercs

CIGNAS

Atrion
2000

2007

2009

2013

2016

2019

2021

Controller

System

-DSDQ',&&,5,86$VLD±3DFL¿FUHJLRQ35&',&

7KH:HUFV1RUWK$PHULFD&HQWUDODQG6RXWK$PHULFD
6XQ&KHPLFDO(XURSH$IULFD$XVWUDOLD$WULRQ',&| Creating a New Comprehensive Global Chemical Substance Information Management System and Framework',&¶V*OREDO&KHPLFDO,QIRUPDWLRQPDQDJHPHQW3URMHFW *&,3 HVWDEOLVKHGWRGHYHORSWKH&,*1$6V\VWHPHQFRPSDVVHVQRWRQO\V\VWHPGHVLJQDQG
GHYHORSPHQWEXWDOVRUHYLHZLQJDQGVWDQGDUGL]LQJSURFHGXUHVWREHXVHGJOREDOO\IRUJDWKHULQJLQIRUPDWLRQWRHQVXUHVPRRWKRSHUDWLRQV,QODWHSURMHFW
WHDPPHPEHUVYLVLWHG*URXSFRPSDQLHVLQWKUHHFRXQWULHVWROHDUQDERXWWKHLUSURFHGXUHVIRUPDQDJLQJFKHPLFDOVXEVWDQFHVDQGUHÀHFWHGWKHLU¿QGLQJV
LQWKHLWHPVWREHFRQVLGHUHGDVSDUWRIWKHSURMHFW,Q¿VFDO\HDUWKHSURMHFWWHDPFRQGXFWHGRQOLQHLQWHUYLHZVZLWK',&*URXSFRPSDQLHVLQ¿YH
FRXQWULHVWRFODULI\ZKDWWKH\H[SHFWRIWKHQHZV\VWHPDesigning and Developing a New Global System',&LVDSSO\LQJFDSDELOLWLHVH[SHULHQFHDQGH[SHUWLVHDFFXPXODWHGLQWKHGHVLJQGHYHORSPHQWDQGRSHUDWLRQRI&,5,86DQGWKH:HUFVWRGHVLJQLQJDQG
GHYHORSLQJLWVQHZJOREDOV\VWHP7KH&RPSDQ\DOVRUHFRJQL]HVWKDWDXQL¿HGJOREDOV\VWHPIRUPDQDJLQJFKHPLFDOVXEVWDQFHLQIRUPDWLRQZLOOHQKDQFHLWV
RSHUDWLRQDOHI¿FLHQF\DQGWKXVFUHDWHDIUDPHZRUNIRUGDWDLQWHJUDWLRQZLWKLWV6$3V\VWHP,QGLYLGXDOGLYLVLRQVDQGGHSDUWPHQWVPDNHXVHRIFKHPLFDOVXEVWDQFHLQIRUPDWLRQLQLWVSDUWLFXODUZRUN$FFRUGLQJO\WKHV\VWHPZLOOEHXVHGQRWRQO\E\H[SHUWVLQWKHPDQDJHPHQWRIFKHPLFDOVXEVWDQFHVEXWDOVRE\GLYHUVHRWKHUHPSOR\HHVDFURVVWKHJOREDO',&*URXS7KH*URXSLVWKXVDZDUHRIWKHLPSRUWDQFHRIGHVLJQLQJWKHLQWHUIDFHVRWKDWHYHQQRQH[SHUWVFDQXVHWKHV\VWHPZLWKHDVH7KHQHZV\VWHPZLOOVWRUHFRQ¿GHQWLDOLQIRUPDWLRQRQDPRQJRWKHUVWKHFKHPLFDOFRPSRVLWLRQRISURGXFWVDQGUDZPDWHULDOV)RUWKLVUHDVRQDQGEHFDXVHRIWKHZLGHUDQJHRILQGLYLGXDOVXVLQJWKHV\VWHPPHWLFXORXVDWWHQWLRQWRVHFXULW\LVDNH\FRQVLGHUDWLRQLQV\VWHPGHVLJQDQGGHYHORSPHQWDIC Report 2022

103

ESH

A Global Framework
7HFKQLTXHVXVHGWRPDQDJHFKHPLFDOVXEVWDQFHLQIRUPDWLRQYDU\JUHDWO\GHSHQGLQJRQFRXQWU\WHUULWRU\DQGVLWHDVGRHVWKHTXDOLW\RIPDQDJHPHQW*LYHQ
WKHH[SHFWHGIXUWKHUWLJKWHQLQJRIODZVDQGUHJXODWLRQVJRYHUQLQJFKHPLFDOVXEVWDQFHVDQGWKHLQFUHDVLQJQXPEHUDQGFKDQJLQJQDWXUHRIVXEVWDQFHVXVHG
LPSOHPHQWLQJDQRUJDQL]HGJOREDODSSURDFKLVHVVHQWLDO7KH*URXSUHFRJQL]HVWKDWLQWURGXFLQJDQHZV\VWHPLVRQO\SDUWRIWKHVROXWLRQDQGVRLWKDVDOVRFRPPHQFHGHIIRUWVWRHVWDEOLVKDQHZLQIRUPDWLRQPDQDJHPHQWIUDPHZRUNWRVXSSRUWDGPLQLVWUDWLRQRIWKHQHZV\VWHPDIWHUFUHDWLRQDQGGHSOR\PHQW%\
WKHWLPHWKHQHZV\VWHPJRHVLQWRRSHUDWLRQWKH*URXSZLOOKDYHLPSOHPHQWHGWKHQHZIUDPHZRUNLQWKH35&DQGWKH$VLD±3DFL¿FUHJLRQDVZHOODVLQ
-DSDQLWVSULQFLSDORSHUDWLQJEDVHVOHYHUDJLQJNQRZKRZDFFXPXODWHGLQ-DSDQWRLQWHJUDWHLQIRUPDWLRQPDQDJHPHQWWKHUHE\HQVXULQJFRQVLVWHQWTXDOLW\VHFXULQJFRPSOLDQFHDQGVWUHQJWKHQLQJJRYHUQDQFH,Q¿VFDO\HDUWKH&KHPLFDO6XEVWDQFH,QIRUPDWLRQ0DQDJHPHQW*URXSZDVHVWDEOLVKHGDW',&¶V
FRUSRUDWHKHDGTXDUWHUVLQ7RN\RRYHUVHHWKLVSURFHVV,Q$SULOWKH*URXSDOVREHJDQSURPRWLQJLQLWLDWLYHVLQ6KDQJKDL

| Complying with Laws and Regulations
1

Complying with Laws and Regulations in Japan',&UHFRJQL]HVOHJDODQGUHJXODWRU\FRPSOLDQFHDVFHQWUDOWRULVNPDQDJHPHQW,Q-DSDQWKLVLQFOXGHVIXO¿OOLQJZLWKRXWH[FHSWLRQREOLJDWLRQVUHODWHGWRWKHUHSRUWLQJRIQHZFKHPLFDOVXEVWDQFHVVHWIRUWKLQWKH$FWRQWKH(YDOXDWLRQRI&KHPLFDO6XEVWDQFHVDQG5HJXODWLRQRI7KHLU0DQXIDFWXUHHWFDQGWKH,QGXVWULDO+HDOWKDQG6DIHW\$FWDQGWRWKHNHHSLQJRIUHFRUGVRQPDQXIDFWXULQJLPSRUWLQJDQGVDOHVODLGRXWLQWKH3RLVRQRXVDQG'HOHWHULRXV6XEVWDQFHV&RQWURO$FW
7RHQKDQFHWKHUHOLDELOLW\RILWVFRPSOLDQFHHIIRUWVWKH*URXSLVSURPRWLQJGLYHUVHLQLWLDWLYHVIURPFROOHFWLQJDQGDQDO\]LQJLQIRUPDWLRQWRIRUPXODWLQJJXLGHOLQHVSURPRWLQJDZDUHQHVVDPRQJ*URXSFRPSDQLHVDQGFXVWRPHUVDQGDGYDQFLQJGHSOR\PHQWRI&,*1$6
7KH)RRG6DQLWDWLRQ$FWZKLFKZDVDPHQGHGLQ¿VFDO\HDUVWLSXODWHVWKHDGRSWLRQRID3RVLWLYH/LVWV\VWHPZKLFKDOORZVRQO\VXEVWDQFHVWKDWKDYH
EHHQHYDOXDWHGIRUVDIHW\WREHXVHGLQXWHQVLOVFRQWDLQHUVDQGSDFNDJLQJIRUIRRG',&PDQXIDFWXUHVDZLGHUDQJHRISRO\PHUVLQFOXGLQJSRO\VW\UHQHLQNVDQG
RWKHUUDZPDWHULDOVXVHGLQIRRGSDFNDJLQJ$FFRUGLQJO\WKH&RPSDQ\LVSURFHHGLQJZLWKHIIRUWVWRJDWKHULQIRUPDWLRQDQGJDLQDXWKRUL]DWLRQLQFRRSHUDWLRQZLWKSHUWLQHQWLQGXVWU\RUJDQL]DWLRQV7KHUHZHUHQRYLRODWLRQVRIGRPHVWLFODZVUHTXLULQJWKHUHJLVWUDWLRQRUUHSRUWLQJRIFKHPLFDOVXEVWDQFHVE\WKH*URXSLQ-DSDQLQ¿VFDO\HDU

Outlook for Principal Initiatives in Fiscal Year 2022
-DSDQ¶V,QGXVWULDO6DIHW\DQG+HDOWK$FWZLOOEHSURPXOJDWHGLQ¿VFDO\HDU7KHUHYLVHGDFWHPSKDVL]HVWKHWUDQVLWLRQWRDUHJXODWRU\V\VWHPIRUFKHPLFDOVXEVWDQFHVEDVHGRQDXWRQRPRXVPDQDJHPHQWQRWDEO\RQHVWDEOLVKLQJDV\VWHPIRULPSOHPHQWLQJDXWRQRPRXVPDQDJHPHQWDQGVWUHQJWKHQLQJWKH
FRPPXQLFDWLRQRILQIRUPDWLRQRQWKHKD]DUGVDQGWR[LFLW\$VLJQL¿FDQWQXPEHURIQHZFKHPLFDOVXEVWDQFHVZLOOEHDGGHGWRWKH$SSHQGHG7DEOHRIWKH2UGHU
IRU(QIRUFHPHQWRIWKH,QGXVWULDO6DIHW\DQG+HDOWK$FW,WZLOODOVREHSRVVLEOHWRREWDLQ6'6VZLWKRXWVHHNLQJDSSURYDORIWKHRWKHUSDUW\VLPSO\E\IRUH[DPSOH
FKHFNLQJDQGVFDQQLQJ'EDUFRGHVSULQWHGRQFRQWDLQHUVRUYLHZLQJWKHDSSURSULDWHZHEVLWHSURGXFWSDJH7KH',&*URXSLQ-DSDQZLOOFRQWLQXHZRUNLQJWRHQVXUHLWPDQDJHVFKHPLFDOVXEVWDQFHVDVZHOODVSUHSDUHVDQGGLVWULEXWHV6'6VLQFRPSOLDQFHZLWKWKHUHYLVHG,QGXVWULDO6DIHW\DQG+HDOWK$FW',&ZLOODOVRWDNHGHFLVLYHVWHSVWRDGGUHVVWKH:66'JRDOWKDWZLOOVXSHUVHGHWKHJRDOIRUZKLFKZDVH[SHFWHGWREHGLVFXVVHGDWWKH,QWHUQDWLRQDO&RQIHUHQFHRQ&KHPLFDOV0DQDJHPHQW ,&&0 EXWZDVGHOD\HGGXHWR&29,'SD\LQJFORVHDWWHQWLRQWRKRZWKHQHZJRDOLVUHÀHFWHGLQSROLFLHVODZVDQGUHJXODWLRQV
2

Complying with Overseas Laws and Regulations

5HFHQW\HDUVKDYHEURXJKWWKHHVWDEOLVKPHQWDQGDPHQGPHQWRIPDMRUODZVDQGUHJXODWLRQVJRYHUQLQJFKHPLFDOVXEVWDQFHVDFURVV(DVW$VLD.H\H[DPSOHVLQFOXGHUHYLVLRQVWRWKH52.¶V$FWRQWKH5HJLVWUDWLRQDQG(YDOXDWLRQRI&KHPLFDOV .5($&+ LQ¿VFDO\HDUDQGWKH35&¶V&KLQD5($&+OHJLVODWLRQLQ¿VFDO\HDU2WKHUFRXQWULHVWKDWFXUUHQWO\GRQRWKDYHFKHPLFDOVXEVWDQFHUHJLVWUDWLRQV\VWHPVLQFOXGLQJ7KDLODQG9LHWQDP7XUNH\5XVVLDDQG(XUDVLDQ(FRQRPLF&RPPXQLW\PHPEHUFRXQWULHVDUHDOVRPRYLQJLQWKLVGLUHFWLRQEXWLQPDQ\FDVHVSURJUHVVLVEHKLQGVFKHGXOH
'HSOR\PHQWRIWKH*+6KDVEHHQPDGHPDQGDWRU\LQPRVWFRXQWULHVZLWKODWHFRPHU,QGLDQRZWDNLQJVWHSVWRZDUGHQDFWLQJDODZREOLJLQJ*+6FRPSOLDQFH
',&JDWKHUVWKHODWHVWLQIRUPDWLRQRQFKHPLFDOVXEVWDQFHVLQRYHUVHDVPDUNHWVWKURXJKORFDOFRQVXOWDQWVDVZHOODVWKURXJKLWVJOREDOQHWZRUNZKLFKLQFOXGHV
6XQ&KHPLFDODQGRWKHU',&*URXSFRPSDQLHVHQVXULQJLWVDELOLW\WRUHVSRQGHIIHFWLYHO\WRUHYLVLRQVWRODZVDQGUHJXODWLRQVDQGWRSURYLGHLQIRUPDWLRQWR*URXSFRPSDQLHVDQGFXVWRPHUV$VDOHDGLQJPHPEHURIWKH-&,$ZRUNLQJJURXSFKDUJHGZLWKFROOHFWLQJ-DSDQHVHFRPSDQLHV¶RSLQLRQVDQGSURSRVDOVUHJDUGLQJWKH
HQDFWPHQWDQGUHYLVLRQRIODZVDQGUHJXODWLRQV',&FRQGXFWVGLDORJXHZLWKJRYHUQPHQWDXWKRULWLHVSOD\LQJDOHDGLQJUROHLQHQVXULQJWKHOHJDODQGUHJXODWRU\FRPSOLDQFHRI-&,$PHPEHUFRXQWULHV7KHUHZHUHQRYLRODWLRQVRIRYHUVHDVODZVUHTXLULQJWKHUHJLVWUDWLRQRUUHSRUWLQJRIFKHPLFDOVXEVWDQFHVE\WKH',&*URXSLQ-DSDQLQ¿VFDO\HDU

DIC Report 2022

104

ESH

Outlook for Principal Initiatives in Fiscal Year 2022
7KH',&*URXSZLOOSUHVVDKHDGZLWKSUHSDUDWLRQVWRUHUHJLVWHUFKHPLFDOVXEVWDQFHVDVUHTXLUHGXQGHUWKH52.¶VUHYLVHG.5($&+OHJLVODWLRQSULRULWL]LQJ
VXEVWDQFHVZLWKODUJHYROXPHVWKDWDUHFORVHWRWKHUHUHJLVWUDWLRQGHDGOLQH7KH*URXSZLOODOVRFRQWLQXHWRJDWKHULQIRUPDWLRQDQGWDNHVWHSVWRUHJLVWHUFKHPLFDOVXEVWDQFHVWRHQVXUHFRPSOLDQFHZLWKQHZO\LQWURGXFHGUHJLVWUDWLRQV\VWHPVLQRWKHUFRXQWULHVDQGWHUULWRULHV$GGLWLRQDOO\WKH*URXSZLOONHHSDEUHDVWRIGHYHORSPHQWVVXUURXQGLQJ,QGLD¶VPRYHWRPDQGDWH*+6FRPSOLDQFHDQGZLOOVXEPLWRSLQLRQVDQGSURSRVDOVWKURXJKUHOHYDQWLQGXVWU\
DVVRFLDWLRQV| Training and Systems,QOLQHZLWKWKHSULQFLSOHVRISURGXFWVWHZDUGVKLSWKH',&*URXSUHFRJQL]HVWKHLPSRUWDQFHRIJUHDWHUHPSOR\HHDZDUHQHVVDQGNQRZOHGJHWRRQJRLQJ
HIIRUWVWRLPSURYHWKHVDIHW\RIFKHPLFDOVDQGPDQXIDFWXUHGJRRGV7KH*URXSSODFHVFRQVLGHUDEOHHPSKDVLVRQWUDLQLQJIRULQGLYLGXDOVLQYROYHGLQWKH
PDQXIDFWXUHLPSRUWDQGKDQGOLQJRIFKHPLFDOVXEVWDQFHVLQDFFRUGDQFHZLWKDSSOLFDEOHODZVDQGUHJXODWLRQVDQGHQGHDYRUVWRLPSURYHHPSOR\HHV¶
DZDUHQHVVDQGNQRZOHGJHRIDSSOLFDEOHODZVDQGUHJXODWLRQVLQ-DSDQDQGRYHUVHDVZKLFKLWSURYLGHVWKURXJKLWVSURJUDPWRIRVWHUH[SHUWVDQGLWV
SURSULHWDU\OLFHQVLQJV\VWHP
1

Fostering Experts$VDFRPSUHKHQVLYHJOREDOFKHPLFDOVPDQXIDFWXUHU',&UHFRJQL]HVOHJDODQGUHJXODWRU\FRPSOLDQFHDVFHQWUDOWRULVNPDQDJHPHQWDQGSURPRWHVWUDLQLQJGHVLJQHGWRIRVWHUH[SHUWVLQWKLVDUHD7KH&RPSDQ\EHJDQRIIHULQJDQHQWU\OHYHOFRXUVHRQODZVDQGUHJXODWLRQVJRYHUQLQJFKHPLFDOVXEVWDQFHVLQ¿VFDO\HDU,Q¿VFDO\HDU',&VZLWFKHGWRDQRQOLQHIRUPDWWRPDNHLWHDVLHUIRUHPSOR\HHVLQWKHWDUJHWJURXS²PDLQO\HPSOR\HHVDWVLWHVZLWKWHFKQLFDOGHSDUWPHQWV²WRSDUWLFLSDWH
LQWUDLQLQJ$FXPXODWLYHWRWDORILQGLYLGXDOVKDYHWDNHQSDUWLQWKLVWUDLQLQJWRGDWH,Q¿VFDO\HDUWKH&RPSDQ\ZLOOFRQWLQXHWRSURYLGHWUDLQLQJRQWKHOHJDOKDQGOLQJRIFKHPLFDOVXEVWDQFHVDQGZLOOH[SDQGSDUWLFLSDWLRQLQWKLVWUDLQLQJWRLQFOXGHHPSOR\HHVRI',&*URXSFRPSDQLHV
',&LVDOVRFXUUHQWO\ZRUNLQJWRGHVLJQFRXUVHVDQGSUHSDUHVWXG\PDWHULDOVWRIDFLOLWDWHWKHFUHDWLRQRIDSUDFWLFDOSURJUDPIRFXVHGRQYDULRXVFKHPLFDOVUHODWHG
ODZVDQGUHJXODWLRQVDQGKLJKOHYHOFRXUVHSURJUDPWKDWZLOOLPSDUWDGYDQFHGNQRZOHGJHDERXWNH\ODZVDQGUHJXODWLRQVVXFKDVWKH$FWRQWKH(YDOXDWLRQRI&KHPLFDO6XEVWDQFHVDQG5HJXODWLRQRI7KHLU0DQXIDFWXUHHWFDQGWKH3RLVRQRXVDQG'HOHWHULRXV6XEVWDQFHV&RQWURO$FWLQ-DSDQ
2

Licensing System in Japan

8QGHULWVSURSULHWDU\OLFHQVLQJV\VWHP',&SURYLGHVPDQGDWRU\VSHFLDOL]HGWUDLQLQJIRULQGLYLGXDOVLQ-DSDQHQJDJHGLQWKHH[SRUWDQGLPSRUWRIFKHPLFDOVXEVWDQFHVDQGLVVXHVOLFHQVHVWRHPSOR\HHVZKRKDYHFRPSOHWHGWUDLQLQJDQGSDVVHGLQKRXVHH[DPLQDWLRQV7KHSHULRGRIYDOLGLW\LVWZR\HDUVIRUH[SRUWOLFHQVHVDQGWKUHH\HDUVIRULPSRUWOLFHQVHV7UDLQLQJIRULQGLYLGXDOVLQYROYHGLQH[SRUWLQJDQGLPSRUWLQJFKHPLFDOVXEVWDQFHVIRFXVHVRQWKH)RUHLJQ([FKDQJHDQG)RUHLJQ7UDGH$FWZKLOHWKDWIRULQGLYLGXDOVLQYROYHGH[FOXVLYHO\LQLPSRUWLQJFHQWHUVRQWKH$FWRQWKH(YDOXDWLRQRI&KHPLFDO6XEVWDQFHVDQG5HJXODWLRQRI
7KHLU0DQXIDFWXUHHWFWKH,QGXVWULDO6DIHW\DQG+HDOWK$FWDQGWKH3RLVRQRXVDQG'HOHWHULRXV6XEVWDQFHV&RQWURO$FW7RUHQHZDOLFHQVHDQHPSOR\HHPXVW
RQFHDJDLQJRWKURXJKWUDLQLQJDQGSDVVWKHLQKRXVHH[DPLQDWLRQ,Q¿VFDO\HDUWUDLQLQJDQGH[DPLQDWLRQVZHUHSURYLGHGRQOLQHEHFDXVHRI&29,'$VRIWKH¿VFDO\HDUHQGHPSOR\HHVKHOGDQLPSRUWOLFHQVH
KHOGD&ODVV%H[SRUWOLFHQVHUHTXLULQJJHQHUDONQRZOHGJHDQGKHOGD&ODVV$H[SRUWOLFHQVHZKLFKUHTXLUHVKLJKOHYHOVSHFLDOL]HGH[SHUWLVHZKLOHDIXUWKHUHPSOR\HHVKDGFRPSOHWHGDQDGYDQFHGOLFHQVHFRXUVHDQDFKLHYHPHQWUHTXLULQJVXSHULRUFDSDELOLWLHV,QILVFDO\HDU',&ZLOOIXUWKHUHQKDQFHWKHFRQWHQWRIWKLVWUDLQLQJ7KH&RPSDQ\LVDOVRFUHDWLQJDOLFHQVLQJV\VWHPIRUHPSOR\HHVZKRSUHSDUHFHUWL¿FDWHVRIRULJLQEDVHGRQHFRQRPLFSDUWQHUVKLSDJUHHPHQWV7KHLPSRUWDQFHRIVXFKFHUWL¿FDWHVKDVLQFUHDVHGLQUHFHQW\HDUVRZLQJWRDPRQJRWKHUVWKHHQWU\LQWRIRUFHRIWKH5HJLRQDO(FRQRPLF3DUWQHUVKLS 5&(3 Export Licenses
Class A licenses

1,553
Class B licenses

Import Licenses
Advancedlicenses

107

332

173

DIC Report 2022

105

ESH

3

Training at Overseas Group Companies,QWKH35&UHYLVHG&KLQD5($&+OHJLVODWLRQFDPHLQWRIRUFHRQ-DQXDU\ZKLOHUHTXLUHPHQWVUHJDUGLQJHQYLURQPHQWDOSURWHFWLRQDQGWKHSUHYHQWLRQRISROOXWLRQKDYHEHHQWLJKWHQHGFRQVLGHUDEO\',& &KLQD ¶V&RUSRUDWH(6+'HSDUWPHQWZRUNHGFORVHO\ZLWKWKH5HVSRQVLEOH&DUH'HSDUWPHQWH[FKDQJLQJSHUWLQHQWLQIRUPDWLRQWRHQVXUHDOOORFDO*URXSFRPSDQLHVZHUHDEOHWRFRPSUHKHQGWKHUHYLVHGOHJLVODWLRQDQGUHVSRQGDSSURSULDWHO\DVZHOODVKHOGD
SUHVHQWDWLRQWRH[SODLQUHOHYDQWPHDVXUHVWREHWDNHQE\WKH',&*URXS
7RGHHSHQUHOHYDQWSDUWLHV¶XQGHUVWDQGLQJRIPDQDJLQJFKHPLFDOFRPSOLDQFH',&KHOGDQRQOLQHSUHVHQWDWLRQRQVDIHW\ODEHOV6'6VDQGQHZFKHPLFDOVXEVWDQFHV7KHSUHVHQWDWLRQZDVUHFRUGHGDQGXVHGIRUHOHDUQLQJ/RRNLQJDKHDGWKH*URXSZLOOFRQWLQXHWRVKDUHLQIRUPDWLRQDQGWKHODWHVWOHJDODQG
UHJXODWRU\GHYHORSPHQWVWKURXJKSUHVHQWDWLRQVDQGVHPLQDUVZLWKWKHREMHFWLYHRIHQKDQFLQJFKHPLFDOFRPSOLDQFHPDQDJHPHQW

3UHVHQWDWLRQ E\ <XQGDQ =KDR RI ',& &KLQD ¶V &RUSRUDWH (6+'HSDUWPHQWRQVDIHW\ODEHOV6'6VDQGQHZFKHPLFDOVXEVWDQFHVVOICE We continue to provide legal compliance training.
0\QDPHLV<XQGDQ=KDRDQG,DPLQFKDUJHRIFKHPLFDOUHJXODWRU\DIIDLUVDW',& &KLQD &RXQWULHVDURXQGWKHZRUOGLQFUHDVLQJO\FRQFHUQHGZLWKVXVWDLQDELOLW\DUHFRQVWDQWO\ZRUNLQJWRSHUIHFWWKHLUUHOHYDQWOHJDODQGUHJXODWRU\IUDPHZRUNV2ZLQJWRHFRQRPLFJOREDOL]DWLRQDPHQGPHQWVWR
FKHPLFDOVXEVWDQFH±UHODWHGODZVLQRQHFRXQWU\PD\VLJQL¿FDQWO\LPSDFWQRWRQO\WKDWFRXQWU\¶VFKHPLFDOVXEVWDQFHFRPSOLDQFHPDQDJHPHQWEXWDOVRLWV
H[SRUWVDQGLPSRUWV7RUHVSRQGWRVXFKOHJDODQGUHJXODWRU\FKDQJHVLWLVLPSRUWDQWWRSURPSWO\VHFXUHDQGVKDUHSHUWLQHQWLQIRUPDWLRQDQGWRLPSURYHXQGHUVWDQGLQJRQWKHSDUWRIDOOLQYROYHG7KLVPDNHVLWSRVVLEOHWRVZLIWO\IRUPXODWHDQGLPSOHPHQWHIIHFWLYHFRXQWHUPHDVXUHV$VDQRI¿FHUUHVSRQVLEOHIRUPDWWHUVSHUWDLQLQJWRFKHPLFDOODZVDQGUHJXODWLRQVDW',& &KLQD ,ZLOOFRQWLQXHZRUNLQJWRVZLIWO\JUDVSDQGGLJHVWODZVDQGUHJXODWLRQVWKDWUHTXLUHFKHPLFDOVXEVWDQFHPDQDJHPHQWFRQGXFWWUDLQLQJDQGDVVLVWSUREOHPVROYLQJDWDOO',&*URXSFRPSDQLHVLQWKH35&,QVRGRLQJ,KRSHWRKHOSOLIWWKHOHYHORIFRPSOLDQFHPDQDJHPHQWDFURVVWKHHQWLUH*URXS,DPJUDWHIXOWRDOOP\FROOHDJXHVIRUWKHLURQJRLQJVXSSRUWCorporate ESH Department, DIC (China) Co., Ltd.

Yundan Zhao

| Assessing and Managing Risks
7KH',&*URXSSURPRWHVHIIRUWVWRPDQDJHSURGXFWVSHFL¿F(6+ULVNVDQGVKDUHUHODWHGLQIRUPDWLRQZLWKVWDNHKROGHUVZLWKWKHDLPRIUHGXFLQJWKHLPSDFWRISURGXFWVRYHU
WKHLUHQWLUHOLIHF\FOHLHIURPWKHGHYHORSPHQWRIFKHPLFDOVXEVWDQFHVWKURXJKWRSURFXUHPHQWSURGXFWLRQWUDQVSRUWVDOHXVHDQGGLVSRVDORUUHF\FOLQJ
7KHPRVWLPSRUWDQWFKDOOHQJHLQULVNPDQDJHPHQWLVWRDVVHVVULVNVLQDPDQQHUWKDWSURYLGHVLQVLJKWLQWRWUHQGVUHODWHGWRDPRQJRWKHUVWKHHYROXWLRQRIODZVDQGUHJXODWLRQVJRYHUQLQJFKHPLFDOVXEVWDQFHVDQGFKDQJLQJSURGXFWOLIHF\FOHV7RDFFXUDWHO\DVVHVVWKHULVNVDVVRFLDWHGZLWKDSURGXFWLWLVFUXFLDOWRVHFXUH
LQIRUPDWLRQRQWKHGHJUHHRIH[SRVXUHIRUSHRSOHDQGWKHHQYLURQPHQWZKHQWKHSURGXFWLVXVHGDVZHOODVWRH[DPLQH6'6DQGFKHP6+(53$ KD]DUGDQGWR[LFLW\LQIRUPDWLRQ7RIDFLOLWDWHWKHPRUHHI¿FLHQWJDWKHULQJDQGGLVVHPLQDWLRQRILQIRUPDWLRQQHFHVVDU\IRUWKHDVVHVVPHQWRIULVNVWKH*URXSLVFXUUHQWO\FUHDWLQJDQHZFRPSUHKHQVLYHJOREDOFKHPLFDOVXEVWDQFHLQIRUPDWLRQPDQDJHPHQWV\VWHP IRUPRUHLQIRUPDWLRQSOHDVHVHHSDJH DQGKDVIRUPXODWHGWKH',&6XVWDLQDELOLW\,QGH[ VHHSDJH DQGLVZRUNLQJZLWKWHFKQRORJ\SURGXFWLRQDQGVDOHVGHSDUWPHQWVWRHQKDQFHWKHDFFXUDF\RIDVVHVVPHQWV%\WKXVHQVXULQJWKHDSSURSULDWHGLVFORVXUHRILQIRUPDWLRQQHFHVVDU\WRDVVHVVULVNVWKH*URXSLVFRQ¿GHQWWKDWLWZLOOEHDEOHWRSURYLGHDVDIHUHQYLURQPHQWIRUWKHVWDNHKROGHUVXVLQJWKHVHSURGXFWVFKHP6+(53$LVDVFKHPHGHVLJQHGWRIDFLOLWDWHWKHDFFXUDWHDQGHI¿FLHQWVKDULQJRILQIRUPDWLRQRQFKHPLFDOVXEVWDQFHVLQSURGXFWVDFURVVWKHHQWLUHVXSSO\FKDLQ
',&EHJDQXVLQJFKHP6+(53$LQODWH¿VFDO\HDU

| Responsible (Green) Procurement,QOLQHZLWKWKH',&*URXS8QLYHUVDO3XUFKDVLQJ3ROLF\',&IRUPXODWHGWKH',&*URXS*UHHQ3URFXUHPHQW*XLGHOLQHVZKLFKSURKLELWWKH
SURFXUHPHQWRIPDWHULDOVFRQWDLQLQJKD]DUGRXVVXEVWDQFHVLQWKHVHYHQFDWHJRULHVEHORZ7KHJXLGHOLQHVPDQGDWHWKHVXEPLVVLRQRID',&
5DZ0DWHULDOV6XUYH\DQ6'6DQGDFKHP6+(53$DVZHOODVD',&*URXS*UHHQ3URFXUHPHQW*XLGHOLQHV6XUYH\ZKHQSXUFKDVLQJUDZ
PDWHULDOVWKHUHE\FUHDWLQJDV\VWHPIRUHOLPLQDWLQJVXEVWDQFHVRIFRQFHUQ6XEPLVVLRQRID&RQÀLFW0LQHUDOV6XUYH\LVDOVRUHTXLUHG

DIC Report 2022

106

ESH

❶ 6XEVWDQFHVWKHSURGXFWLRQRIZKLFKLVSURKLELWHGDVRXWOLQHGLQ$UWLFOHRI-DSDQ¶V,QGXVWULDO6DIHW\DQG+HDOWK$FW❷ 6XEVWDQFHVGHVLJQDWHGDVFODVVVSHFL¿HGFKHPLFDOVXEVWDQFHVLQ-DSDQ¶V$FWRQWKH(YDOXDWLRQRI&KHPLFDO6XEVWDQFHVDQG
5HJXODWLRQRI7KHLU0DQXIDFWXUHHWF
❸ 6XEVWDQFHVGHVLJQDWHGIRUPRQLWRULQJXQGHU-DSDQ¶V$FWRQWKH(YDOXDWLRQRI&KHPLFDO6XEVWDQFHVDQG5HJXODWLRQRI
7KHLU0DQXIDFWXUHHWF
❹ &KHPLFDOVXEVWDQFHVWKHSURGXFWLRQRIZKLFKLVDOUHDG\SURKLELWHGDVGHWDLOHGLQ-DSDQ¶V$FWRQWKH3URWHFWLRQRIWKH2]RQH/D\HU
7KURXJKWKH&RQWURORI6SHFL¿HG6XEVWDQFHVDQG2WKHU0HDVXUHV R]RQHGHSOHWLQJVXEVWDQFHVOLVWHGLQWKH0RQWUHDO3URWRFRO ❺ 6SHFL¿HGSDUWLFXODWHVGHQRWHGLQ-DSDQ¶V$LU3ROOXWLRQ&RQWURO$FW❻ 6SHFL¿HGSRLVRQRXVVXEVWDQFHVLQGLFDWHGLQ-DSDQ¶V3RLVRQRXVDQG'HOHWHULRXV6XEVWDQFHV&RQWURO$FWDQG
❼ 6SHFL¿HGVXEVWDQFHVGHWDLOHGLQWKH6WRFNKROP&RQYHQWLRQRQ3HUVLVWHQW2UJDQLF3ROOXWDQWV

| Position on the Use of Animals in Testing,QOLQHZLWKWKH³5V´RIDQLPDOXVHLQUHVHDUFK ³5HSODFHPHQW5HGXFWLRQ5H¿QHPHQW´ ZKLFKDUHJXLGHOLQHVGHVLJQHGWRHQVXUHWKHPRUHHWKLFDOXVHRIDQLPDOVLQWHVWLQJWKH',&*URXSDFWLYHO\SURPRWHVVDIHHYDOXDWLRQXVLQJTXDQWLWDWLYHVWUXFWXUH±DFWLYLW\UHODWLRQVKLS 46$5 
PRGHOVZKLFKGRQRWHPSOR\DQLPDOVDQGDOWHUQDWLYHVWRDQLPDOWHVWLQJ| Safe Product Transport
7KH',&*URXSKDVFUHDWHG<HOORZ&DUGVFRQWDLQLQJVLPSOL¿HG6'6V7KLVSURYLGHVFULWLFDOLQIRUPDWLRQWRWUDQVSRUWSHUVRQQHOIDFLOLWDWLQJWKH
DSSURSULDWHUHVSRQVHVLQWKHXQOLNHO\HYHQWRIDQDFFLGHQWWRSURWHFWWKHHQYLURQPHQWDQGHQVXUHVDIHW\ )RUPRUHLQIRUPDWLRQSOHDVHVHH
SDJH

DIC Report 2022

107

ESH

Engaging with Society
Basic Approach
DIC actively discloses information and publicizes its Responsible Care initiatives, as well as endeavors to disseminate knowledge
regarding ESH-related issues and respond appropriately to public concerns.

| Information Disclosure and Engaging with Society
The DIC Group strives to increase the transparency of its activities through the active disclosure of information and at the same time
promotes dialogue with stakeholders by, among others, providing safety- and environment-related data through Group websites, the DIC
Report and other media, as well as by holding environmental presentations for local residents at production facilities.
The DIC Group also promotes a variety of efforts to deepen its engagement with society. In Japan, such efforts include preparing site
reports, inviting junior and senior high school students in for hands-on lab lessons, participating in community disaster drills and providing
assistance for local festivals and other local events. Overseas Group sites seek to advance dialogue and interaction with local communities
E\SDUWLFLSDWLQJLQWUHHSODQWLQJVDQGRWKHUDFWLYLWLHVDLPHGDWKHOSLQJSUHYHQWJOREDOZDUPLQJDQGSUHVHUYHELRGLYHUVLW\,Q¿VFDO\HDU
PDQ\RIWKHVHHIIRUWVZHUHVXVSHQGHGDVDFRQVHTXHQFHRI&29,'7KH*URXSORRNVIRUZDUGWRUHVXPLQJDFWLYHHQJDJHPHQWZLWK
society as soon as possible.

Bon Odori HYHQWDW',&*UDSKLFV¶7RN\R3ODQW Site reportComprehensive disaster drill for the Sakai–Senboku Special Disaster
3URWHFWLRQ$UHDKRVWHGE\WKH6DNDL3ODQW 

DIC Report 2022

108

(6+

Management System
Basic Approach
The DIC Group operates management systems for environmental protection, safety and disaster prevention, occupational safety and health,logistics safety, chemical and product safety, and dialogue with society.

| 0DQDJHPHQW6\VWHPV&HUWLÀHG8QGHU,626WDQGDUGV1&HUWLÀFDWLRQ8QGHU,62

$VRI'HFHPEHU',&*URXSFRPSDQLHVUHVSRQVLEOHIRURIWKH*URXS¶VSURGXFWLRQYROXPHKDGDFTXLUHGFHUWL¿FDWLRQXQGHU,62WKH,QWHUQDWLRQDO2UJDQL]DWLRQIRU6WDQGDUGL]DWLRQ¶VVWDQGDUGIRUHQYLURQPHQWDOPDQDJHPHQWV\VWHPV2&HUWLÀFDWLRQ8QGHU2+6$6DQGRU,62

7KH',&*URXS¶VSULQFLSDOVLWHVDURXQGWKHZRUOGKDYHDFTXLUHGFHUWL¿FDWLRQXQGHU2+6$6WKHLQWHUQDWLRQDOO\DFFHSWHGVWDQGDUG
IRURFFXSDWLRQDOKHDOWKDQGVDIHW\PDQDJHPHQWV\VWHPVDQGRU,62WKH,QWHUQDWLRQDO2UJDQL]DWLRQIRU6WDQGDUGL]DWLRQ¶VVWDQGDUG
IRURFFXSDWLRQDOKHDOWKDQGVDIHW\PDQDJHPHQWV\VWHPV,QWKH$VLD±3DFL¿FUHJLRQIRUH[DPSOHWKH*URXSKDVFRPSDQLHVLQcountries and territories. In addition to diverse customs and languages, a key challenge from an operational perspective is differencesin awareness regarding occupational health and safety. For this reason, it was crucial to establish common safety standards and work to
HQVXUHWKHLUHIIHFWLYHLPSOHPHQWDWLRQUHJLRQZLGH$VRI'HFHPEHU',&*URXSVLWHVLQWKH$VLD±3DFL¿FUHJLRQKDGHDUQHG
FHUWL¿FDWLRQXQGHU2+6$6DQGRU,62JLYLQJWKH*URXSLQWKHUHJLRQDFHUWL¿FDWLRQUDWHRI

| ,QWURGXFWLRQRIWKH'(&6,Q¿VFDO\HDUWKH',&*URXSLQWURGXFHGWKH',&(6+'DWD&ROOHFWLRQ6\VWHP '(&6 DFORXGEDVHGV\VWHPIRUJDWKHULQJRFFXSDWLRQDOVDIHW\DQGKHDOWKFOLPDWHFKDQJHZDWHUUHVRXUFHVZDVWHDQGRWKHUSHUWLQHQW(6+UHODWHGGDWDWRIDFLOLWDWHWKHFHQWUDOL]HGPDQDJHPHQWWKHUHRI7KHV\VWHPWDUJHWVPRUHWKDQ*URXSVLWHVLQ-DSDQWKH35&DQGWKH$VLD±3DFL¿FUHJLRQ,QDGGLWLRQWRPDNLQJWKHFROOHFWLRQSURFHVVPRUHHI¿FLHQWDQGOHVVODERULQWHQVLYHWKH'(&6KHOSVLPSURYHWKHUHOLDELOLW\RIGDWDVXEPLWWHGIRUWKLUGSDUW\YHUL¿FDWLRQ| (6+$XGLWV1)UDPHZRUNIRU3URPRWLRQ

7KH',&*URXSUHJXODUO\FRQGXFWV(6+DXGLWVWRHQVXUHWKHHIIHFWLYHQHVVRI5HVSRQVLEOH&DUHLQLWLDWLYHVDW*URXSFRPSDQLHVSODQWVDQG
5 'IDFLOLWLHV%HFDXVHWKHVHDXGLWVDVVHVVDYDULHW\RIIDFWRUVWKH\DUHFDUULHGRXWE\WHDPVFRPSRVHGRI5HVSRQVLEOH&DUH'HSDUWPHQWVSHFLDOLVWVWKHH[HFXWLYHRIILFHUUHVSRQVLEOHIRUSURGXFWLRQSURGXFWLRQDQG5 'VLWHDGPLQLVWUDWRUVDQGODERUXQLRQ±HQGRUVHGXQLRQ
members. Audits also look at the implementation of safety initiatives and the progress of remedial measures undertaken in response toissues cited in the previous year’s audit. DIC’s president also takes part, underscoring senior management’s active engagement in efforts
WRHQVXUH(6+UHODWHGFRQFHUQVDUHDGGUHVVHG,Q¿VFDO\HDUKRZHYHUDXGLWLQJWHDPVZHUHOLPLWHGWR5HVSRQVLEOH&DUH'HSDUWPHQWVSHFLDOLVWVDQGVLWHDGPLQLVWUDWRUVDVDUHVXOWRI&29,'2YHUVHDVUHJLRQDOKHDGTXDUWHUV¶(6+RI¿FHUVFRQGXFWDXGLWVWRJHWKHUZLWK5HVSRQVLEOH&DUH'HSDUWPHQWVSHFLDOLVWVDQGORFDOVLWHDGPLQLVWUDWRUVWRDVFHUWDLQWKHSURJUHVVRILQLWLDWLYHVZLWKWKHDLPRIHQKDQFLQJ
5HVSRQVLEOH&DUHDWLQGLYLGXDOVLWHV

2(6+$XGLWVLQ)LVFDO<HDU

,Q -DSDQ 5HVSRQVLEOH &DUH 'HSDUWPHQW VSHFLDOLVWV OHDG (6+ DXGLWV QRW RQO\ DW ',& EXW DOVR DW ',& *URXS FRPSDQLHV WR FHUWLI\initiatives and support efforts to improve performance. In fiscal year 2021, audits were conducted at the Group’s principal domestic
sites, 10 belonging to DIC and four to subsidiary DIC Graphics. These consisted of systems audits, designed to verify the
management level of production facilities; site inspections, which focus on frontline facilities; and compliance audits conducted byDWKLUGSDUW\FRQVXOWLQJILUP7KHVHDXGLWVKHOSHGLPSURYHWKH OHYHORIVDIHW\DQGHQYLURQPHQWDOPDQDJHPHQWLGHQWLI\KD]DUGVDQG
LPSURYHOHJDOFRPSOLDQFHDWWKHVHNH\VLWHV(6+DXGLWVZHUHDOVRLPSOHPHQWHGDWVLWHVEHORQJLQJWRHLJKWRWKHUGRPHVWLF',&
Group companies. The objective of the audits, which centered on systems audits and site inspections at 11 sites belonging to eightcompanies, was to enhance environmental management.
   2YHUVHDV',&*URXSFRPSDQLHVDOVRXQGHUJR(6+DXGLWV,QILVFDO\HDUDXGLWVZHUHFDUULHGRXWDWVLWHVEHORQJLQJWRFRPSDQLHVLQWKH$VLD±3DFL¿FUHJLRQ$VDUHVXOWRI&29,'WKHVHDXGLWVZHUHSHUIRUPHGE\WKHVLWHVWKHPVHOYHV,Q*UHDWHU&KLQD

DIC Report 2022

109

(6+

DXGLWVZHUHFRQGXFWHGDWVLWHVEHORQJLQJWRFRPSDQLHVLQFOXGLQJDWWKUHHVLWHVLQ7DLZDQWKDWZHUHLPSOHPHQWHGDXWRQRPRXVO\RZLQJ WR&29,',QWKH$PHULFDV(XURSHDQG$IULFD(6+DXGLWVZHUHLPSOHPHQWHGDWVLWHVEHORQJLQJWR6XQ&KHPLFDO*URXSFRPSDQLHVDQGVLWHVEHORQJLQJWRWKH6(,.230&*URXSZKLFKPDQXIDFWXUHVFKHPLFDOVIRUSDSHUSURGXFWLRQDQGUHVLQVIRUSULQWLQJLQNVDQGUHSURJUDSKLFSURGXFWV7KH6(,.230&DXGLWVZHUHFRQGXFWHGRQOLQHDVDFRQVHTXHQFHRI&29,'
2XWOLQHRI(6+$XGLWV,PSOHPHQWHGLQ)LVFDO<HDU
Japan

Overseas

DIC

DIC Graphics

Other domestic DIC
Group companies

10 sites

4 sites

11sitesTotal$XGLWV&RQGXFWHGDW6XEVLGLDULHV·6LWHVLQ)LVFDO<HDU

25 sites

Greater China

Asia–Pacific region

15 sites

23 sitesTotal

38 sites

Sun Chemical GroupSEIKO PMC Group

22 sites

13 sites| $GPLQLVWUDWLYH3HQDOWLHV,QILVFDO\HDURQHYLRODWLRQRI5HVSRQVLEOH&DUH±UHODWHGUHJXODWLRQVZLWKDVLJQLILFDQWILQDQFLDOSHQDOW\ ZDVUHSRUWHGRYHUVHDVDQGRQH
YLRODWLRQRIHQYLURQPHQWDOUHJXODWLRQVZLWKVXFKDSHQDOW\ZDVUHSRUWHGRYHUVHDV7KH',&*URXSUHVSRQGHGE\VZLIWO\LPSOHPHQWLQJDQGFRQ¿UPLQJ
the effectiveness of remedial measures.
* A penalty in excess of $10,000.H\'DWDTheme
2FFXSDWLRQDOVDIHW\DQGKHDOWK

,WHP
75,5

Frequency rate for occupational
accidents resulting in workdays lost

Fatalities due to occupational accidents

Injuries due to occupational accidents
resulting in workdays lost

Injuries due to occupational
accidents not resulting in
workdays lost

6DIHW\DQGGLVDVWHUSUHYHQWLRQ

Environmental pollution

8QLW%RXQGDU\

3HUVRQVPLOOLRQKRXUV

3HUVRQVPLOOLRQKRXUV

3HUVRQV3HUVRQV3HUVRQV7KLUGSDUW\YHULÀFDWLRQ)LVFDO\HDU

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

Japan

9





3.60

35&

9







$VLD±3DFL¿FUHJLRQ

9

2.80

1.13



Americas and Europe

―







Global*

―

3.82





Japan

9

1.20



1.31

35&

9







$VLD±3DFL¿FUHJLRQ

9







Americas and Europe

―







Global*

―







Japan

9

0

0

0

35&

9

0

0

0

$VLD±3DFL¿FUHJLRQ

9

0

0

0

Americas and Europe

―

0

0

0

Global*

―

0

0

0

Japan

9

11



12

35&

9

3



6

$VLD±3DFL¿FUHJLRQ

9

21

8



Americas and Europe

―

34





Global*

―







Japan

9

16

18

21

35&

9

1

4

2

$VLD±3DFL¿FUHJLRQ

9

4

2

1

Americas and Europe

―





44

Global*

―







3URFHVVDFFLGHQWV

Events

Japan

9

6

4



Frequency of process accidents

Events/200,000 hours

Japan

9

0.110



0.128(PLVVLRQVRI92&V

Tonnes

Japan

―







(PLVVLRQVRI3575GHVLJQDWHG
FKHPLFDOVXEVWDQFHV LQWRWKH
DLUZDWHUDQGVRLO

Tonnes

Japan

―







(PLVVLRQVRI12[

Tonnes

Japan

―

183

182

186

(PLVVLRQVRI62[

Tonnes

Japan

―



12.1

8.8

&2'

Tonnes

Japan

―







* *OREDO -DSDQ35&$VLD±3DFL¿FUHJLRQ$PHULFDVDQG(XURSHDQGRWKHUUHJLRQVDIC Report 2022

110

(6+

Theme
Total waste WR[LFDQGQRQWR[LF,WHP
9ROXPHJHQHUDWHG

8QLW
Tonnes9ROXPHGLVFKDUJHGE\SURGXFWLRQ Tonnes
facilities

9ROXPHUHF\FOHG

Waste heat recovered

Waste heat not recovered

TonnesTonnesTonnesLQFOXGLQJIURPLQFLQHUDWLRQ
9ROXPHGLVSRVHGRIDVODQG¿OO

5HVRXUFHUHF\FOLQJUDWH

Toxic waste
 VXEMHFWWRVSHFLDOFRQWURO

9ROXPHJHQHUDWHG

Tonnes%Tonnes7KLUGSDUW\YHULÀFDWLRQ)LVFDO\HDU

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

Japan

9

63,202

2YHUVHDV―64,846

64,101

Global―132,320

Japan

9





2YHUVHDV―

62,828



Global―





Japan

9





2YHUVHDV―





Global―43,630Japan

9



20,2102YHUVHDV―

13,226





Global―





Japan

9

4,100

2YHUVHDV―






Global―

Japan

9







2YHUVHDV―

20,233



Global―





Japan

9







2YHUVHDV

―







Global

―







Japan

9

8,116





2YHUVHDV―

33,832

Global

―38,04241,002

9ROXPHGLVFKDUJHGE\SURGXFWLRQ Tonnes
facilities

Japan

9





6,136

2YHUVHDV―28,82031,068Global―34,402

9ROXPHUHF\FOHG

Japan

9



2,623

2YHUVHDV―

8,631

16,214

Waste heat recovered

Waste heat not recovered

TonnesTonnesTonnesLQFOXGLQJIURPLQFLQHUDWLRQ
9ROXPHGLVSRVHGRIDVODQG¿OO

Nontoxic waste%RXQGDU\

9ROXPHJHQHUDWHG

TonnesTonnes9ROXPHGLVFKDUJHGE\SURGXFWLRQ Tonnes
facilities

9ROXPHUHF\FOHG

Waste heat recovered

Waste heat not recovered

TonnesTonnesTonnesLQFOXGLQJIURPLQFLQHUDWLRQ
9ROXPHGLVSRVHGRIDVODQG¿OO

TonnesGlobal―



Japan

9



4,212

2YHUVHDV―






Global―

Japan

9

281

234



2YHUVHDV―

8,031

3,623

Global―8,312



Japan

9

16

22

28

2YHUVHDV―

2,046

2,430

Global―

2,068

Japan

9





2YHUVHDV―

31,014

26,163Global―





Japan

9



24,4062YHUVHDV―



26,118Global

―84,222



Japan

9

16,412

2YHUVHDV―

16,341

10,18010,642Global―





Japan

9

16,308

2YHUVHDV―



Global

―18,223



Japan

9



3,866



2YHUVHDV―



Global―



Japan

9

201

144



2YHUVHDV―





Global―



12,444

DIC Report 2022

111

(6+

Theme
Fresh water withdrawn,WHP
6XUIDFHZDWHU

Groundwater

5DLQZDWHU

1,000 m3

1,000 m3

1,000 m3

Tap water/industrial water

1,000 m3

Total

5LYHUV

2FHDQV

Wastewater treatment plants%HORZJURXQG

Third parties

2WKHUVTotal,62

1,000 m3

Wastewater generated by otherRUJDQL]DWLRQV

2WKHUV

Wastewater discharged

8QLW$FTXLVLWLRQRIFHUWL¿FDWLRQ

1,000 m3

1,000m3

1,000m3

1,000 m3

1,000 m3

1,000 m3

1,000 m3

1,000 m3

1,000 m3%

%RXQGDU\

7KLUGSDUW\YHULÀFDWLRQ)LVFDO\HDU

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

Japan

9







2YHUVHDV―





Global―

14,364

Japan

9

6,214





2YHUVHDV―



1,840

Global―

8,383



Japan

9

0

0

0

2YHUVHDV

―

3





Global

―

3





Japan

9

0

0

2YHUVHDV

―

0

0

0

Global―

0

0

Japan

9



11,134

2YHUVHDV―





Global―



14,331

Japan

9

20



20

2YHUVHDV

―







Global

―







Japan

9







2YHUVHDV―



8,632

Global―





Japan―







2YHUVHDV―

2,013

2,204

Global―





Japan

―

6,882





2YHUVHDV

―

2

0

1

Global―6,884



Japan―



3,084

2YHUVHDV―

832

888

Global―





Japan

―

3

2

1

2YHUVHDV

―

8

6



Global

―

11

8

8

Japan

―

0

0

0

2YHUVHDV

―

0

0

0

Global

―

0

0

0

Japan

―

0

0

0

2YHUVHDV―



3,380

Global―



3,380

Japan

―







2YHUVHDV―



6,481

Global―





Global

―





80%

DIC Report 2022

112

Climate Change

SDGs Goals 7 and 13

Preventing Global Warming

Basic Approach
The DIC Group works to reduce CO2 emissions over the entire life cycle of its products and, through its business activities, to lower
risks associated with climate change.

| Efforts to Prevent Global Warming
Recognizing climate change as a critical social imperative, the DIC Group is working to reduce emissions of CO 2 from its sites with the aim of achieving carbon
QHXWUDOLW\,Q0D\WKH*URXSGHFODUHGLWVVXSSRUWIRUWKH7DVN)RUFHRQ&OLPDWHUHODWHG)LQDQFLDO'LVFORVXUHV 7&)'  SOHGJLQJWRGLVFORVHFOLPDWHUHODWHG
LQIRUPDWLRQLQOLQHZLWK7&)'UHFRPPHQGDWLRQV
7KH7&)'ZDVHVWDEOLVKHGXQGHUWKHDXVSLFHVRIWKH)LQDQFLDO6WDELOLW\%RDUGDQGDQQRXQFHGLQ-XQHZLWKWKHREMHFWLYHRIPLWLJDWLQJFOLPDWHFKDQJH±UHODWHGLQVWDELOLW\DQGULVNLQ¿QDQFLDOPDUNHWVZKLFKKDVWKHSRWHQWLDOWRDIIHFWSHUIRUPDQFHRYHUWKHORQJWHUP

Principal Efforts❶ Undertake energy-saving initiatives Groupwide.
❷ Promote DX to optimize energy management for production and utility equipment.
❸ Actively establish energy-efficient facilities, including cogeneration systems and net zero-energy buildings (ZEBs).
❹ Employ energy from renewable sources—e.g., biomass boilers, wind power and net solar power—at suitable sites.
❺ Conduct energy-saving analyses and deploy energy-saving initiatives at DIC Group companies, including those overseas.
❻ When installing or expanding facilities, purposefully select energy-efficient options and formulate related rules, including for investment inenvironmental value and the introduction of internal carbon pricing.
1RWH$WRWDORIRIWKH',&*URXS¶VVLWHVDQGRI¿FHVDQG5 'IDFLOLWLHVLQ-DSDQKDYHHDUQHGFHUWL¿FDWLRQXQGHUWKHFRXQWU\¶V'HVLJQDWHG(QHUJ\0DQDJHPHQW6\VWHP

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

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

Goals for fiscal year 2021

Achievements in fiscal year 2021

DIC Group (global):
Reduce CO2 emissions at DIC Group sites
6FRSHDQG E\IURPWKH¿VFDO\HDU2013 level by fiscal year 2030 (averageannual decrease of 3.5/%).

CO2 emissions: 546,304 tonnes• 'RZQIURP¿VFDO\HDU WRQQHV• 'RZQIURP¿VFDO\HDU WRQQHV

DIC Group (Japan):
Reduce energy consumption per unit of
SURGXFWLRQE\IURPWKHILVFDO\HDU2013 level by fiscal year 2030 (averageannual decrease of 1.0%). (Comply withJapan’s Act on the Rational Use of Energy.)

Energy consumption per unit of production:
3.656 GJ/tonne• 'RZQIURP¿VFDO\HDU *-WRQQH• 'RZQIURP¿VFDO\HDU *-WRQQH

Evaluation

Goals for fiscal year 2022★

DIC Group (global):
Reduce CO2 emissions at DIC Groupsites (Scope 1 and 2) by 50% from thefiscal year 2013 level by fiscal year 2030
(average annual decrease of 3.5%).

★★★

DIC Group (Japan):
Reduce energy consumption per unit of
SURGXFWLRQE\IURPWKHILVFDO\HDU2013 level by fiscal year 2030 (average annual
decrease of 1.0%). (Comply with Japan’s Act on
the Rational Use of Energy.)

Reference:
CO2HPLVVLRQVSHUXQLWRISURGXFWLRQLQ¿VFDO\HDU
DIC Group (global): 246.8 kg/tonne
'RZQIURP¿VFDO\HDU NJWRQQH
'RZQIURP¿VFDO\HDU NJWRQQH',&*URXSLQ-DSDQNJWRQQH
'RZQIURP¿VFDO\HDU NJWRQQH
'RZQIURP¿VFDO\HDU NJWRQQH| Framework for Promotion,Q¿VFDO\HDU',&HVWDEOLVKHGWKH&OLPDWH&KDQJH6XEFRPPLWWHHZKLFKLVUHVSRQVLEOHIRUGLVFXVVLQJDQGGHEDWLQJUHVSRQVHVWRFOLPDWHFKDQJH±UHODWHGLVVXHV
within the Sustainability Committee’s Sustainability Strategy Working Group. With a membership that spans multiple areas, from production and purchasing to corporate
planning, the Climate Change Subcommittee considers a variety of themes, including climate change targets and initiatives, and makes proposals to be deliberated anddetermined by the Sustainability Committee, which answers directly to the president and CEO.
',&DQG',&*URXSFRPSDQLHVLQ-DSDQKDYHHVWDEOLVKHGDQ(QHUJ\6DYLQJ3URPRWLRQ&RPPLWWHHDWHDFKVLWH&RPPLWWHHDFWLYLWLHVLQFOXGHFRQ¿UPLQJWKHSURJUHVV
of initiatives, engaging in discussions and conducting patrols. An Energy-Saving Working Group has also been set up at each site that comprises members chosen by

DIC Report 2022

113

Climate Change

the site itself, to foster the exchange of information and research pertaining to new items, as well as to promote the horizontal deployment of effective measures acrossthe Group. This combination of site- and Group-level initiatives forms the framework under which the DIC Group endeavors to reduce its CO2 emissions. Overseas, DIC
Group companies promote a wide range of independent energy-saving initiatives that align with related Group poliies. The Production Management Unit provides support
on multiple fronts, including the deployment of management systems and the training of employees.

| Disclosures in Line with TCFD Recommendations:LWKWKHDLPRIKHOSLQJLQVWLWXWLRQDOLQYHVWRUVJUDVSFOLPDWHUHODWHGULVNVDQGRSSRUWXQLWLHVDQGPDNHLQYHVWPHQWGHFLVLRQVWKH7&)'KDVVWUXFWXUHGLWVUHFRPPHQGDWLRQVaround four thematic areas that represent core elements of how organizations operate—governance, strategy, risk management, and metrics and targets.
Having acknowledged the disclosure of information on efforts to address climate change as an imperative for companies today, the DIC Group has resolved to do
VRLQOLQHZLWK7&)'UHFRPPHQGDWLRQV$FFRUGLQJO\WKH*URXSLVHQKDQFLQJLWVHIIRUWVWRUHVSRQGDSSURSULDWHO\WRULVNVDQGFDSLWDOL]HRQRSSRUWXQLWLHVDVVRFLDWHG
ZLWKFOLPDWHFKDQJHZLWKWKHREMHFWLYHRIHDUQLQJWKHWUXVWRIVWDNHKROGHUVWKURXJKLPSURYHGUHVLOLHQFHDQGWKHSURDFWLYHGLVVHPLQDWLRQRILQIRUPDWLRQTCFD Recommendations for Financial Disclosures
Governance

Strategy

Risk management

Metrics and targets

Governance around climate-related risks
and opportunities

Actual and potential impacts of climaterelated risks and opportunities on
EXVLQHVVHVVWUDWHJ\DQG¿QDQFLDOSODQQLQJ

Processes used to identify, assess
and manage climate-related risks

Metrics and targets used to assess
and manage relevant climate-relatedrisks and opportunities

1

Governance

The DIC Group recognizes climate change as a key management challenge.
Important matters, including the setting of medium- and long-term targets for the
reduction of CO2 emissions, are deliberated and determined by the Sustainability
Committee, which meets four times annually and answers directly to the president
and CEO, and the details are reported to the Board of Directors, in line with therules governing the Board of Directors. (In principle, the Sustainability Committee
reports to the Board of Directors on all of its deliberations.) A system is thus inplace that ensures appropriate supervision of the Sustainability Committee isprovided by the Board of Directors.
7RDSSURSULDWHO\DVVHVVDQGPDQDJHFOLPDWHFKDQJH±UHODWHGULVNVDQG
opportunities, thereby ensuring the effective management of its operations,
the Sustainability Committee consists of the president and CEO, the generalmanagers of the Production Management Unit and Technical Management Unit,
and the heads of the Corporate Strategy Unit, General Affairs and Legal Unit,)LQDQFHDQG$FFRXQWLQJ8QLWDQG(6*8QLWDVZHOODVWKHSUHVLGHQWVRIWKH
business groups and the general managers of the product divisions.
2

Principal Issues Deliberated by the Sustainability
Committee in Fiscal Year 2021
Fiscal year

Issues deliberated
5HSRUWRQDQGHYDOXDWLRQRIVXVWDLQDELOLW\LQLWLDWLYHVLQ¿VFDO\HDU
3URJUHVVRILQLWLDWLYHVSURPRWHGE\WKH&OLPDWH&KDQJH6XEFRPPLWWHH• 7DUJHWRIDFKLHYLQJFDUERQQHXWUDOLW\E\¿VFDO\HDU

2021• Scope 3 emissions, science-based targets and carbon footprint• Initiatives to reduce the carbon footprint of products• CO2 reduction plans under DIC Vision 2030
After deliberation by the Sustainability Committee, medium-term sustainability policies are discussed
and determined by the Board of Directors.

StrategyWith pressure on the global community to achieve carbon neutrality by 2050 intensifying rapidly, changes to rules governing competitiveness are expected totransform the socioeconomic system going forward. DIC is promoting sustainable business strategies, recognizing the importance of risks and opportunities
associated with climate change. Because the impacts of climate change are likely to surface over the medium to long term, the Company is working to
HQKDQFHLWVXQGHUVWDQGLQJRIWKHSULQFLSDOFOLPDWHUHODWHGULVNVDQGRSSRUWXQLWLHV WUDQVLWLRQDVZHOODVSK\VLFDO WKDWDUHOLNHO\WRKDYHD¿QDQFLDOLPSDFWRYHU
the medium to long term.
%DVHGRQVFHQDULRDQDO\VLVFRQGXFWHGLQ¿VFDO\HDUWKH&RPSDQ\ZLOOZRUNWRUDLVHLWVDZDUHQHVVRIIRUHVHHDEOHRSSRUWXQLWLHVDQGULVNVIURPDPHGLXPWRORQJWHUPSHUVSHFWLYHDQGDWWKHVDPHWLPHWRIRUPXODWHDQGH[HFXWHHIIHFWLYHVWUDWHJLHVRQDQDSSURSULDWHWLPHOLQH,Q¿VFDO\HDU',&
also established the Climate Change Working Group, which is tasked with helping facilitate the achievement of net zero CO2HPLVVLRQVE\¿VFDO\HDU
The activities of the working group are reported to and debated by the Sustainability Committee.

Key Risk Management Perspectives❶ Should carbon pricing or carbon border taxes be introduced in the future, there is a risk that raw materials, fuel and electric power prices will rise
and/or that taxes will be imposed on exported products, making CO2 emissions a factor that directly affects costs.
❷ Should the Group be unable to respond to any sudden changes in demand resulting from the shift to a circular economy to advance
GHFDUERQL]DWLRQWKHUHLVDULVNRIDVLJQLILFDQWGHFOLQHLQSURILWVJHQHUDWHGE\LWVEXVLQHVVHV FOLPDWHFKDQJH±UHODWHGWUDQVLWLRQULVN ❸ Should climate-related disasters arising from the increasing seriousness or frequency of extreme weather events occur, resulting in productsupplies becoming impossible or being delayed due to the suspension of operations at production facilities and the instability of raw materials
supplies, there is a risk that it will cause a significant decline in profits generated by Group businesses or threaten business continuity (extreme
physical risk).

DIC Report 2022

114

Climate Change

Principal Climate-Related Risks
Type

Description

Emerging regulations (Transition)

There is a risk that emerging regulations (e.g., the introduction of carbon pricing) will increase direct costs and impact on the operating
HQYLURQPHQWSUR¿WDELOLW\ HJIDFLOLW\FRVWVDQGUDZPDWHULDOVSULFHV 

Technology (Transition)

With technological innovations, there is a risk of products and services becoming obsolete and demand declining.

Market (Transition)

7KHUHLVDULVNWKDWDQLQVXI¿FLHQWJUDVSRIHYROYLQJFXVWRPHUFRQVXPHUSUHIHUHQFHVZLOOPHDQWKHORVVRIPDUNHWRSSRUWXQLWLHV7KHUHLV
also a risk that businesses will shrink if demand related to the realization of a circular economy cannot be met.

Market (Transition)

There is a risk that businesses will be affected, including through the loss of commercial rights, if rapidly expanding market/customer
demand for products with a reduced carbon footprint cannot be met.

Reputation (Transition),I',&¶VDWWLWXGHWRZDUGDQGDELOLW\WRUHVSRQGWRFOLPDWHFKDQJHLVVHHQE\H[WHUQDOREVHUYHUVDVLQVXI¿FLHQWIRUDPDQXIDFWXUHURI¿QH
chemicals, there is a risk that its reputation will suffer.

Acute (Physical)

Should extreme weather events become more frequent, there is a risk that operations at production sites will be affected.

Chronic (Physical)

If temperatures remain persistently high, there are risks of increased production site maintenance and operating costs and of damage to health.

Upstream (Physical)

In addition to a risk of uncertainty regarding the supply of raw materials monopolized by certain suppliers, there are BCP risks and risks thatcosts may increase due to, among others, rising prices for fuel and electric power, or to the imposition of taxes on exported products.

Principal Climate-Related Opportunities
Type

Description

Emerging regulations (Transition)

With emerging regulations, there is an opportunity to establish new business models that demonstrate the superiority of DIC’s businesses.

Technology (Transition)

Technological innovation provides opportunities to create new low-carbon/decarbonized businesses that respond to climate change andto increase product cost competitiveness through the use of revolutionary technologies to improve processes.

Market (Transition/physical)

Accurately grasping evolving customer/consumer preferences—e.g., shift to low-carbon business models, chance that certain existing
businesses will be avoided—provides the opportunity to develop new products and services that anticipate lifestyle changes.

Upstream/downstream (Transition/physical)

Addressing climate change (adaptation and mitigation) over products’ entire life cycles through organic collaboration with customers
and suppliers provides the opportunity to create new businesses and systems.

Strategies for Reducing CO2 Emissions
As a company with a CO2 emissions reduction target, the DIC Group will promote a variety of related initiatives as outlined below.
CO2 Emissions by the Global DIC Group (Scope 1 and 2)

Initiatives Aimed at Reducing CO 2 Emissions

Internal emissions reduction initiatives (Scope 1 and 2)
z Advance environmental investments, process
improvements and energy-saving initiativesz Advance the electrification of production equipmentz Actively employ green power generationz Introduce an internal carbon pricing system

Emissions reduction initiatives across the supply chain(Scope 3)z Promote supplier engagementz Encourage the use of recycled and bioderived raw materials
z Increase the recycling rates of and reduce the disposal of usedproducts by customers
z Leverage proprietary technologies to improve the efficiency ofmaterials recyclingz Contribute to reduction through business activities

Group,

7KH*URXSFXUUHQWO\SODQVWRPDNHHQYLURQPHQWDOLQYHVWPHQWVRIDSSUR[LPDWHO\ELOOLRQLQ-DSDQEHWZHHQ¿VFDO\HDUDQG¿VFDO\HDU

Scenario Analysis
Scenario information

2ºC scenario

4ºC scenario

Scenario details

Based on the International Energy Agency (IEA)’s World Energy Outlook (WEO) Sustainable'HYHORSPHQW6FHQDULRDQG(QHUJ\7HFKQRORJ\3HUVSHFWLYHV (73 &6FHQDULR

Based on the Intergovernmental Panel on Climate Change (IPCC)
Representative Concentration Pathway (RCP) 8.5

Time frame

2030

2030

Carbon price assumption¥8,000/tonne—

DIC Report 2022

115

Climate Change

Results of Scenario Analysis

Opportunity

Implications for society andthe business environment

Risk

Risk and opportunity assessment

3RVVLEOHGLUHFWLPSDFWRQPDQXIDFWXULQJFRVWVELOOLRQ(Annual CO2HPLVVLRQVLQ¿VFDO\HDUWRQQHV
&VFHQDULRStrengthening of policies
and regulations

Introduction of carbon pricing (direct
implications for manufacturing and the
procurement of raw materials)

Reference:
Possible impact on procurement costs: ¥11.8 billion (Annual CO2 emissions
6FRSH&DWHJRU\ LQ¿VFDO\HDUWRQQHV

Global movement to minimize use of oneway plastics and efforts by brand owners
seeking to reduce packaging

Demand for some plastics (one-way plastics) will decrease, but increased
demand for plastic alternatives will mean only a negligible impact onmaterials suitable for applications other than plastics.

Increase in production and sales ofrecycled plastics

While it is unclear what will happen vis-à-vis demand changes, a failure
to launch commercial distribution will mean the loss of future market
opportunities.

&VFHQDULR
Changes in demand attributableto circular economy

DIC Group countermeasures• Take steps to maintain cost competitiveness, assuming global
introduction.
• Promote enhanced functionality to minimize the impact ofcarbon pricing in key businesses, including products forautomotive, electronics and display applications and for
healthcare, as well as pigments for cosmetics.
• Use the DIC Sustainability Index to promote products that help
reduce CO2 emissions (i.e., are sustainable).
• Capitalize on rising demand for PPS compounds underpinnedby expanded automobile production and the shift to EVs.
• Promote core products as appropriate for use with both plastics
and plastic-alternative materials; differentiate with barrier and otherfunctions.
• )RVWHUEXVLQHVVHVWKDWUHVSRQGWRGHPDQGIRUPDWHULDOVWKDW
are biodegradable and/or use bioderived raw materials.

• Seek tie-ups with customers and step up exploration of chemicals
and materials recycling.

• )RFXVRQDGGLQJYDOXHLQFOXGLQJE\DGYDQFLQJLQQRYDWLRQVLQ
materials and formulations that enhance recyclability.

Introduction of energy-saving and renewableenergy equipment
&VFHQDULR
Reduction of CO2 emissions
attributable to manufacturing

&VFHQDULR
Risk that operations at
production facilities will beinterrupted due to an increase
in climate-related disasters

&VFHQDULR
Response to changes inlifestyles attributable torising temperatures

Ongoing efforts to reduce CO2 emissions attributable to production will
also be necessary.

• Continue investing in energy-saving and renewable energy
equipment with the aim of achieving the target for reducing
6FRSHDQGHPLVVLRQVE\IURPWKH¿VFDO\HDUOHYHOE\¿VFDO\HDU
• The reduction of CO2 emissions is expected to reduce costs
E\DQDYHUDJHRIELOOLRQDQQXDOO\EHWZHHQ¿VFDO\HDUV2013 and 2030 (estimated annual emissions reduction:WRQQHV 

Efforts to reduce CO 2 emissions enough to keep the increase in
JOREDODYHUDJHWHPSHUDWXUHRYHUWKHFXUUHQWFHQWXU\WR&IURPWKH
preindustrial level are already underway. There is an increased risk that
this target will be imposed across entire supply chains.

• Consider the setting of a new science-based target conducive to
NHHSLQJWKHLQFUHDVHLQJOREDODYHUDJHWHPSHUDWXUHWR&• Apply internal carbon pricing system to increase investment inenergy savings and improve CO2 emissions reduction performance.

• Stable procurement risks affect certain businesses, i.e., those dependent
on raw materials procured overseas or monopolized by certain suppliers.
 )RUPRVWSURGXFWVFRRUGLQDWLRQDPRQJGHSDUWPHQWVZLOOIDFLOLWDWHWKHXVH
of alternative raw materials.

• )RUNH\UDZPDWHULDOVSURPRWHWZRFRPSDQ\VKDUHGSURFXUHPHQW
in multiple regions and enhance BCP responses.
 )RUNH\SURGXFWVHQVXUHDPSOHLQYHQWRULHVRIUDZPDWHULDOVand products.

Depletion of groundwater resources• Production sites are scattered across the globe, so impact onoverall operations is limited. Certain products for which production isconcentrated at certain facilities may be affected.
• Countermeasures are required in areas where there are concerns thatwater-related risks will increase.

• Locate printing inks and other production facilities around the world
to ensure complementary capabilities and cooperate with othercompanies to minimize the impact in the event port facilities are
GDPDJHGGXHWRVWRUPVXUJHVRUÀRRGLQJ
• Strengthen measures for sites located in coastal areas. Reinforce
the effectiveness of BCPs by providing related training.
• Implement measures to address water-related risks.

Increases in non-life insurance fees

Insurance premiums may increase.

• Bolster profitability by reinforcing and expanding portfolio ofsustainable products.

Changes in lifestyles and consumption
patterns attributable to rising temperaturesand resulting changes in demand• Demand for certain products may be affected by changing consumption
patterns attributable to rising temperatures, but because demand sources
are diverse the risk to overall business is low.
• The potential for increases in new demand as a consequence of changes inlifestyles attributable to rising temperatures is high.

• Rising temperatures present an opportunity in the form of increased
GHPDQGIRUWKHUPDOEDUULHU±UHODWHGSURGXFWV• Given that dietary preferences are also expected to change,
capitalize on expanding demand from beverage manufacturers andfor materials used in frozen foods.
• Take advantage of higher demand in the health foods and life
VFLHQFHV¿HOGVDWWULEXWDEOHWRLQFUHDVLQJKHDOWKFRQVFLRXVQHVVShift of focus to the achievement of net
zero CO2 emissions by fiscal year 2050

&VFHQDULR
Risk that supply chains will beinterrupted due to an increase
in climate-related disasters

Annual investment in energy-saving and renewable energy equipment isestimated at ¥2.0 billion (direct impact on manufacturing costs).

Suspension of production at suppliers’
facilities due to frequent climate-related
disasters
Suspension of supplies of plant-derived
raw materials

Suspension of production at own facilities
due to frequent climate-related disasters

7KHVH¿JXUHVDUHEDVHGRQUHVXOWVLQ¿VFDO\HDUWKH\HDUWKHVFHQDULRDQDO\VLVZDVFRQGXFWHG$V&22HPLVVLRQVLQ¿VFDO\HDUDPRXQWHGWRWRQQHVWKHLPSDFWRIFDUERQSULFLQJXQGHUWKHVDPHFRQGLWLRQVZRXOGEHDVPXFKDVELOOLRQ

Initiatives for Fiscal Years 2020–2022● Introduce internal carbon pricing.

Quantify climate change risk and provide economic incentives for reducing CO2 emissions to accelerate the promotion of investments and innovations to
IXUWKHUDGYDQFHHPLVVLRQVUHGXFWLRQV,Q¿VFDO\HDULQWURGXFHLQWHUQDOFDUERQSULFLQJIRUQHZLQYHVWPHQWSURMHFWVDVDQLQWHUQDOIUDPHZRUNIRUIDFWRULQJ
the cost of related CO2HPLVVLRQVLQWRHVWLPDWHVRILQYHVWPHQWEHQH¿WV
● 3URPRWHIXOOVFDOHFROODERUDWLRQZLWK)3&RUSRUDWLRQ )3&2 LQWKHSUDFWLFDOLPSOHPHQWDWLRQRIDFORVHGORRSUHF\FOLQJV\VWHPIRUSRO\VW\UHQHXVHGLQSODVWLF
containers for food products, among others.
● (VWDEOLVKWKH&OLPDWH&KDQJH6XEFRPPLWWHHLPSOHPHQWYDULRXVPHDVXUHVDQGDQQRXQFHQHZWDUJHWVIRUDFKLHYLQJFDUERQQHXWUDOLW\E\¿VFDO\HDU
● Raise funds by issuing sustainability-linked bonds (SLBs).
In March 2022, DIC signed an agreement to issue SLBs, which are bond instruments for companies that set ambitious environmental targets and actively
tackle climate change. The achievement of these targets is a condition for receiving preferential interest rates.
● Build ZEBs.
*URXSFRPSDQ\',&.\XVKX3RO\PHU&R/WGFRPSOHWHGDQHZRI¿FHEXLOGLQJWKDWHPSOR\V=(%FRPSOLDQWFRQVWUXFWLRQPHWKRGV7KHQHZEXLOGLQJKDV
HDUQHGFHUWL¿FDWLRQXQGHUWKHKLJKHVWRIIRXU=(%VHULHV¶UDQNV
● Embark on efforts to reduce the carbon footprint of products.

DIC Report 2022

116

Climate Change

3 Risk Management

Processes Used to Identify and Assess Climate Change-Related Risks
DIC recognizes risks related to its response to climate change—a key component of its framework of sustainability themes, the foundation of its sustainability
DFWLYLWLHV²DQGLWZRUNVWRHYDOXDWHDGGUHVVDQGPDQDJHWKHPHIIHFWLYHO\:KLOHXSWR¿VFDO\HDUWKH&RPSDQ\SRVLWLRQHGFOLPDWHFKDQJH±UHODWHGULVN
DVDFRPSRQHQWRI(6+EHJLQQLQJLQ¿VFDO\HDULWZLOOWUHDWFOLPDWHFKDQJHDVDQLQGHSHQGHQWWKHPH7KH6XVWDLQDELOLW\:RUNLQJ*URXSDVXEVHFWLRQ
of the Sustainability Committee, is charged with identifying and debating priority risks. Risks designated as priorities are submitted for consideration to the
Sustainability Committee.
4

Metrics and Targets

In light of accelerated global efforts to decarbonize, the DIC Group has set new targets for the reduction of its CO2 emissions and pledged to step up related
efforts. DIC now aims to achieve carbon neutrality—net zero CO2HPLVVLRQV²E\¿VFDO\HDUDQGZLOOVHHNWRUHGXFH&22 emissions by 50% from the
ILVFDO\HDUOHYHOE\ILVFDO\HDU 7KH*URXSZLOOFRQWLQXH
Fiscal year 2050 Achieve carbon neutrality (Scope 1 and 2)
to disclose the results of its various initiatives and obtain third-party
YHUL¿FDWLRQRILWV&22 emissions data.
Reduce CO2HPLVVLRQVIURPWKH¿VFDO\HDUOHYHO
Fiscal year 2030

7DUJHWVDUHIRU6FRSHDQGHPLVVLRQV

(Scope 1 and 2)| Principal Initiatives in Fiscal Year 2021
1

Energy Consumption and CO2 Emissions (Scope 1 and 2) by the Global DIC Group(QHUJ\FRQVXPSWLRQE\WKHJOREDO',&*URXSLQ¿VFDO\HDUHGJHGXSIURP¿VFDO\HDUDQGIURPWKH¿VFDO\HDUEDVH\HDU&22
HPLVVLRQVE\WKHJOREDO',&*URXSDPRXQWHGWRWRQQHVGRZQIURP¿VFDO\HDUDQGIURP¿VFDO\HDUZKLOH&22 emissions per
XQLWRISURGXFWLRQ 6FRSHDQG DWNJWRQQHZHUHGRZQIURP¿VFDO\HDUDQGIURPWKHEDVH\HDU
The DIC Group’s diverse product portfolio includes printing inks, polymers, pigments, LCs, engineering plastics and compounds. Recent years have seen
DQXSWUHQGLQWKHRXWSXWRIHQHUJ\LQWHQVLYH¿QHFKHPLFDOVDQGDGRZQWUHQGLQWKHRXWSXWRIJHQHUDOSXUSRVHLWHPVWKHSURGXFWLRQRIZKLFKLVFRPSDUDWLYHO\HQHUJ\HI¿FLHQW$JDLQVWWKLVEDFNGURSWKHUHDVRQWKH*URXSIHOOVKRUWRILWVJRDOIRUUHGXFLQJWKHYROXPHRI&22 it emits worldwide but succeeded inlowering CO2 emissions per unit of production was efforts by Group companies worldwide to break down the target set forth in the three-year medium-term
PDQDJHPHQWSODQWKDWFRQFOXGHGLQ¿VFDO\HDU²DGHFUHDVHIURPWKH¿VFDO\HDUOHYHOE\¿VFDO\HDU²LQWRDQDQQXDODYHUDJHGHFUHDVH
RIIURPWKH¿VFDO\HDUOHYHO²DQGWKHSURPRWLRQRIDPELWLRXVHQHUJ\VDYLQJDQGGHFDUERQL]DWLRQLQLWLDWLYHVLQFOXGLQJWKHLQFRUSRUDWLRQRIDQ
LQWHUQDOFDUERQSULFLQJV\VWHPLQWRFDSLWDOLQYHVWPHQWSURMHFWV6RPHRIWKHVHLQLWLDWLYHVDUHRXWOLQHGEHORZ*RLQJIRUZDUGWKH*URXSZLOOFRQWLQXHWRLPSOHPHQWDYDULHW\RIHQHUJ\VDYLQJPHDVXUHVLQFOXGLQJLQWURGXFLQJKLJKO\HI¿FLHQWIDFLOLWLHVSURPRWLQJSURFHVV
improvements and boosting capacity utilization rates, while at the same time further advancing its use of renewable energy by shifting to biomass and otherclean fuels and installing solar power facilities.

Global CO2 Emissions (Scope 1 and 2): Results,
Forecasts and Target for Fiscal Year 2030
Emissions(Tonnes)year 2013(Tonnes)

3,000,000

800,000

2,500,000

600,000

800,000

2013

2014

2015

Japan

Americasand Europe

2016

2017

2018

2019

2020

2021 (FY)

700,000

700,000
600,000

500,000
2,000,000

500,000

1,500,000

400,000
300,000

1,000,000

400,000
300,000
200,000
100,0000

200,000
500,000

100,000
0-24.4%
from fiscal

Global CO2 Emissions
Production volume(Tonnes)

13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Production
volumeCO2 emissions

0

Reduction of CO2
emissions (target)

DIC Report 2022

117

Greater Asia–PacificChinaregionOther

DIC Group Global
overseas DIC GroupClimate Change-24.5%
from fiscal

Global CO2 Emissions per Unit of Production(Tonnes)

2013

2014

2015

2016

2017

2018

2019

year 20132020

Terajoules

2021 (FY)-16.1%
from fiscal

Global Energy Consumption

600

14,000500

12,000

2013

2014

Japan

Americasand Europe

year 2013

2015

2016

2017

2018

2019

2020

2021 (FY)10,000

400

8,000

300

6,000

200

4,000

100

2,000

0
Japan

Americasand Europe

Greater
China

Asia–PacificregionDIC Group
overseas0

GlobalDIC Group

Greater Asia–PacificChinaregionOther

DIC Group Global
overseas DIC Group

Factors Contributing to Change in Global CO2 Emissions

DIC Group overseas

DIC Group in Japan

Factors

Impact on CO2 emissions (tonnes)

Decline in production volume
Other factors
Implementation of 473 energy-saving initiatives at sites
Impact of change in electrical power supplier
Asia–Pacific region: Increase in production volume (+10.6% from fiscal year 2020)
Asia–Pacific region: Energy-saving initiatives and increased productivity
Asia–Pacific region: Change in product mix and in energy consumption not directly attributable to production
Asia–Pacific region: Other factors
Greater China: Increase in production volume (+38.6% from fiscal year 2020)
Greater China: Energy-saving initiatives and increased productivity
Greater China: Change in product mix and in energy consumption not directly attributable to production
Greater China: Other factors
Sun Chemical Group: Increase in production volume (+1.2% from fiscal year 2020)
Sun Chemical Group: Impact of energy-saving initiatives and increased productivity
Sun Chemical Group: Change in product mix and in energy consumption not directly attributable to production
Sun Chemical Group: Other factors
Other: Change in product mix and energy consumption not directly attributable to production

14,3691,387

Grasping CO2 Emissions Across the Supply Chain (Scope 3)

7,009-5,934-1. 3%-2,813
13,707-2,202

16,944

2,067
3,372
20,716-7,572

7,365

1,073

2 . 4%-6,851
1,579-1,947-19,557-34,166-14,242-2,966

Change in CO2 emissions (tonnes)
Decline in CO2 emissions (%)
Global CO2 emissions in fiscal year 2020
Global CO2 emissions in fiscal year 20212

Decrease (%)-2,966-5,8151.1%
552,123546,304

Greenhouse Gas Emissions Across the Supply chain in Fiscal Year 2021

The DIC Group recognizes the importance of reducing emissions ofgreenhouse gases across its supply chain and works to ensure a graspof emissions in all categories of Scope 3. The Group has also revised its
calculation for emissions in category 1 (Purchased goods and services)
ZLWKWKHDLPRIUH¿QLQJGDWDUHSRUWHGLQWKLVFDWHJRU\Category
number

DIC Report 2022

118

Category

Emissions1

Purchased goods and services

2

Capital goods

75,419

3)XHODQGHQHUJ\UHODWHGDFWLYLWLHV
(not included in Scope 1 or 2)

98,408

4

Upstream transportation and distribution

284,569

5

Waste generated in operations

50,707

6

Business travel

1,461



Employee commuting

5,848

12

End-of-life treatment of sold products

4,455,628

1,205,246

Climate Change

3

Principal Initiatives in Fiscal Year 2021

Renewable Energy as a Percentage of Total Energy Used in Japan: 14.4%
The bulk of renewable energy used by DIC Group companies in Japan is natural energy generated by a biomass boiler and wind and solar power
IDFLOLWLHVDWWKH.DVKLPD3ODQW,Q¿VFDO\HDU',&*URXSFRPSDQLHVLQ-DSDQXVHG*-UHQHZDEOHHQHUJ\ HTXLYDOHQWWRNORIFUXGHRLO XSIURP¿VFDO\HDUDQGUHSUHVHQWLQJRIWRWDOHQHUJ\ VWHDPDQGHOHFWULFSRZHU FRQVXPHGE\WKHVHFRPSDQLHV7KH
increase in renewable energy use was attributable to a variety of factors, including the fact that new biomass boilers (producing electric power, heat
DQGVWHDP JUDGXDOO\FDPHRQOLQHDWWKH.DVKLPD3ODQWZKHUHSULRULW\ZDVJLYHQWRVWHDPJHQHUDWLRQWRLPSURYHHI¿FLHQF\7KHXVHRIUHQHZDEOHHQHUJ\E\',&*URXSFRPSDQLHVLQ-DSDQLQ¿VFDO\HDUDFFRXQWHGIRUDUHGXFWLRQLQ&22 emissions of 44,881 tonnes,
RUIURPWKHSUHYLRXV¿VFDO\HDU*RLQJIRUZDUG',&ZLOOFRQWLQXHWRWDNHGHFLVLYHVWHSVWRDGYDQFHLWVXVHRIUHQHZDEOHHQHUJ\ZLWKWKHDLP
of achieving its DIC NET ZERO 2050 target.

Adoption of Renewable Energy by the DIC Group Overseas$JDLQVWDJOREDOWUHQGWRZDUGGHFDUERQL]DWLRQLQFOXGLQJE\SRSXODUL]LQJWKHXVHRIUHQHZDEOHHQHUJ\',&*URXSFRPSDQLHVLQWKH$VLD±3DFL¿Fregion, Greater China, and the Americas and Europe are making use of government subsidies and support to, for example, install biomass boilers
and solar power facilities.
,Q¿VFDO\HDUWKHJOREDO',&*URXSXVHGDWRWDORI*-RIUHQHZDEOHHQHUJ\DQLQFUHDVHRIIURP*-LQ¿VFDO\HDU
The use of renewable energy accounted for a reduction in the Group’s global CO 2HPLVVLRQVRIWRQQHV
Reduction in Global CO2 Emissions Attributable to the Use of Renewable Energy(Tonnes)(%)

60,0009%13,741 13,067

40,00012,87911,94630,00011,037

10,497
21,971

28,518

12,77724,06327,2962014

Solar power

6%3,703 tonnes

4%33,286

3%

35,578 37,512
27,833

Reduction attributable to theuse of heat generated using
renewable energy

2016

1%
2017

2018

Reduction attributable to theuse of electric power generatedusing renewable energy

2019

2020

Decrease in global
CO2 Emissions
Attributable to the Use ofRenewable Energy

Electric power
generatedusing biomass

2%

17,1172015

371 tonnes

7%50,579 tonnes

6,542 tonnes

0%
2013

Small hydroelectric
power

2,451tonnes

5%

11,152

13,39020,0000Wind power

8%

50,00010,000

Breakdown of Reduction in Global CO2 Emissions Attributable to
the Use of Renewable Energy in Fiscal Year 2021 (50,579 Tonnes)

2021 (FY)

Total reduction attributable tothe use of renewable energy(Contribution to reduction in CO2 emissions (%))

Heat generatedusing biomass

37,512 tonnes

1RWH)RUPRUHLQIRUPDWLRQRQWKHVH¿JXUHVSOHDVHVHH³5HGXFWLRQLQ*OREDO&2 2 Emissions Attributable
to the Use of Renewable Energy (Tonnes/%)” below.

Reduction in Global CO2 Emissions Attributable to the Use of Renewable Energy (Tonnes/%)
2013

2014

2015

2016

2017

2018

2019

2020

2021

Reduction attributable to the use of heat generatedusing renewable energy

21,971

28,51824,063

17,117

27,29633,286

27,83335,57837,512

Reduction attributable to the use of electric power
generated using renewable energy

11,037

11,946

13,39010,497

11,152

12,87912,777

13,741

13,067

Total reduction attributable to the use of renewable energy

33,00840,46437,453

27,61438,44846,166

40,611

49,31950,579

4.4%

5.8%

5.4%

4.0%

5.7%

7.0%

6.6%

8.2%

8.5%

Reduction attributable to the use of renewable energy (%)
Total global CO2 emissions

722,955 657,456 658,811

659,378 634,741 617,964 577,056

2018

2019

2020

2021

Change fromprevious fiscal year

Reduction attributable to the use of heat generatedusing biomass

33,286

27,83335,57837,512

5.4%

Reduction attributable to the use of electric power
generated using biomass

7,936

7,847

7,739

6,542

-15.5%

Reduction attributable to the use of solar power

1,984

2,956

3,574

3,703

3.6%

Reduction attributable to the use of wind power

2,690

1,765

2,025

2,451

21.0%

Reduction attributable to the use of small hydroelectric power

270

209

403

371

-7.8%

Total reduction attributable to the use of renewable energy

46,166

40,611

49,31950,5792.6%

DIC Report 2022

119

552,123 546,304

The use of renewable energy in fiscal year 2021 accounted foran 8.5% reduction in global CO 2 emissions by the DIC Group.
This is calculated by dividing the total reduction in CO2 emissions
attributable to the use of renewable energy by the aggregate ofglobal CO2 emissions plus the total reduction in CO 2 emissions
attributable to the use of renewable energy, or 50,579 tonnes /(546,304 tonnes + 50,579 tonnes).

Climate Change

Installation of Solar Power Facilities in Japan(Fiscal Years 2018–2021)
Installed: Fiscal year 2017
(Start of operation: Fiscal year 2018)

1,600 kWInstalled: Fiscal year 2018
(Start of operation: Fiscal year 2019)

1,440 kWInstalled: Fiscal year 2019
(Start of operation: Fiscal year 2020)

1,277 kWDIC Kitanihon Polymer(Hokkaido Plant)(Location: Idle land; capacity: 250 kW)

Tatebayashi Plant(Location: Idle land; capacity: 1,250 kW)

DIC Kitanihon Polymer(Tohoku Plant)(Location: Idle land; capacity: 200 kW)

Saitama Plant(Location: New administrative building;capacity: 30 kW)

Komaki Plant(Location: Idle land; capacity: 120 kW)

Kashima Plant(Location: Idle land;
capacity: 1,600 kW)

DIC Kyushu Polymer(Location: Idle land; capacity:
309.5 kW)

Chiba Plant(Location: Laboratory roof;
capacity: 100 kW)

Central Research Laboratories(Location: Laboratory roof;
capacity: 40 kW)

Central Research Laboratories(Location: Laboratory roof;
capacity: 60 kW)

Yokkaichi Plant(Location: New administrative building;capacity: 20 kW)
Sakai Plant(Location: Warehouse roof; capacity: 324.8 kW(for charging EVs)The DIC Group’s Global Solar Power Generating Capacity(For Internal Consumption)

Energy Mix

2,500
1,277
2,240

300

1,128
300

2016

2017

1,500
1,428

2,928

2018

2019

Capacity as of the end of the previous fiscal year

5,168

2020

6,445

(Thousands of GJ)

10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0

DIC Group Overseas

DIC Group in Japan

13,00013,00011,00011,000

9,000

9,000

(Thousands of GJ)

(kW)

7,000

5,000

7,000

5,000

2021
3,000

3,000

1,000

1,000

Capacity added during the fiscal year

-1,00020142015 2016 2017 2018 2019 2020 2021 (FY)2014

2015 2016 2017 2018 2019 2020 2021 (FY)

Purchased electric power

Purchased heat (steam + cold/hot water)

Purchased electric power

Purchased heat (steam + cold/hot water)

Natural gas

Petroleum-based fuels

Natural gas

Petroleum-based fuels

Coal

Renewable energy (heat)

Coal

Renewable energy (heat)

Renewable energy (electric power)

DIC Report 2022120

-1,000

Renewable energy (electric power)

Climate Change| ,QLWLDWLYHVLQ$UHDV2WKHUWKDQ3URGXFWLRQ 2IÀFHVDQG5HVHDUFK)DFLOLWLHV,Q¿VFDO\HDUHQHUJ\FRQVXPHGE\WKH',&*URXS¶VRI¿FHVDQGUHVHDUFKVLWHVLQ-DSDQ H[FOXGLQJWKH&HQWUDO5HVHDUFK/DERUDWRULHV URVH3ULQFLSDOHQHUJ\VDYLQJLQLWLDWLYHVLPSOHPHQWHGLQFOXGHUHSODFLQJDJHGOLJKW¿[WXUHVDQGDLUFRQGLWLRQLQJHTXLSPHQWZLWKQHZHUKLJKHI¿FLHQF\models that satisfy standards set by the Energy Conservation Center, Japan (ECCJ) for its Top Runner program, turning off lights when not needed
DQGLPSOHPHQWLQJPDQGDWRU\&ZLQWHUDQG&VXPPHUDLUFRQGLWLRQLQJVHWWLQJVZRUNLQJZLWKIDFLOLW\PDQDJHPHQWFRPSDQLHVWRLPSOHPHQWGLOLJHQWHQHUJ\VDYLQJPHDVXUHVDQGLQVWLWXWLQJD\HDUURXQGQRMDFNHWQRWLHGUHVVFRGHXQGHUWKH:65SURMHFWIn a brand-new initiative for fiscal year 2021, Group company DIC Kyushu Polymer Co., Ltd., resolved to build a new office building thatincorporates ZEB  construction, which aims to achieve virtually zero energy consumption.
7KHQHZRI¿FHEXLOGLQJZDVGHVLJQHGZLWKDYDULHW\RIHQHUJ\VDYLQJHTXLSPHQWDQG¿[WXUHVLQFOXGLQJVRODUSRZHUJHQHUDWLRQIDFLOLWLHVKHDWLQVXODWLRQPDWHULDOVDQG/('OLJKWLQJ¿[WXUHVWRDFKLHYHDUHGXFWLRQLQSULPDU\HQHUJ\FRQVXPSWLRQ HQHUJ\VDYLQJHQHUJ\FUHDWLRQ RIHDUQLQJLWFHUWL¿FDWLRQDVDWRSUDQN=(%  building.
,QDGGLWLRQ',&.\XVKX3RO\PHUDSSOLHGWRSDUWLFLSDWHLQWKH=(%GHPRQVWUDWLRQSURMHFWFRQGXFWHGWKH0LQLVWU\RI(FRQRP\7UDGHDQG
,QGXVWU\¶V$JHQF\IRU1DWXUDO5HVRXUFHVDQG(QHUJ\HDUQLQJFHUWL¿FDWLRQDVD=(%/HDGLQJ2ZQHU ',&.\XVKX3RO\PHULVWKH¿UVW',&*URXSFRPSDQ\WRSXUVXHVXFKDQLQLWLDWLYH7KH',&*URXSZLOOFRQWLQXHZRUNLQJDFWLYHO\RQEXLOGLQJ=(%FRPSOLDQWRI¿FHV
$=(%LVDEXLOGLQJZLWKFRQVLGHUDEO\UHGXFHGDQQXDOHQHUJ\FRQVXPSWLRQE\VDYLQJDVPXFKHQHUJ\DVSRVVLEOHYLDEHWWHUKHDWLQVXODWLRQVRODUVKDGLQJQDWXUDOHQHUJ\DQGKLJKHI¿FLHQF\HTXLSPHQWDVZHOODVFUHDWLQJHQHUJ\ HJZLWKSKRWRYROWDLFSRZHUJHQHUDWLRQ ZKLOHPDLQWDLQLQJ
comfortable environments.
7KH=(%VHULHVFRQVLVWVRIIRXUUDQNVEDVHGRQQHWUHGXFWLRQLQSULPDU\HQHUJ\FRQVXPSWLRQDFKLHYHG=(% QHWHQHUJ\VDYLQJRIRU
PRUH 1HDUO\=(% QHWHQHUJ\VDYLQJRIRUPRUH =(%5HDG\ QHWHQHUJ\VDYLQJRIRUPRUH DQG=(%RULHQWHG EXLOGLQJVZLWKDÀRRU
space in excess of 10,000 m2 that achieve net energy saving of 40% or more).
$=(%/HDGLQJ2ZQHULVDQRZQHURID=(%EXLOGLQJWKDWSXEOLFO\GLVFORVHVLWVWDUJHWVIRUSURPRWLQJDZDUHQHVVRI=(%LQWURGXFWLRQSODQVDQG
implementation results, as well as the results of related efforts.

Procurement Initiatives
Based on the DIC Group Sustainable Procurement Guidelines, DIC formulated the DIC Group Sustainable Procurement Guidebook, version 3 of
ZKLFKZDVSXEOLVKHGLQ)HEUXDU\ZKLFKLWXVHVWRVXUYH\VXSSOLHUVZLWKWKHDLPRIUHGXFLQJVXSSOLHUV¶HPLVVLRQVRIJUHHQKRXVHJDVHV:LWK
WKHREMHFWLYHRIEHWWHUXQGHUVWDQGLQJDQGORZHULQJWKHFDUERQIRRWSULQWRI',&SURGXFWVWKH*URXSLVDOVRPDNLQJSURYLVLRQDOFDOFXODWLRQVRIWKH
carbon footprint of the raw materials it uses, as well as seeking to expand its use of bioderived and recycled raw materials. The Group is further
working to reduce greenhouse gas emissions using common tools such as EcoVadis.

Logistics Initiatives,Q-DSDQ',&LVXVLQJIHZHUODUJHUWUXFNVDQGWDNLQJGHFLVLYHVWHSVWRLPSURYHORDGLQJHI¿FLHQF\DVZHOODVSURPRWLQJWKHXVHRIPRGDOVKLIWDQG
WKHHI¿FLHQWFRPELQDWLRQRIWUXFNUDLODQGPDULQHWUDQVSRUW2YHUVHDV',&*URXSFRPSDQLHVDUHDGYDQFLQJLQLWLDWLYHVWDLORUHGWRFLUFXPVWDQFHVLQ
individual countries and territories. Over the long term, the Group expects that the expanded use of next-generation vehicles and LNG carriers willfurther help reduce greenhouse gas emissions attributable to logistics.

Internal Carbon Pricing System,Q¿VFDO\HDU',&LQWURGXFHGDQLQWHUQDOFDUERQSULFLQJV\VWHP,QVWLWXWLQJLWVRZQLQWHUQDOSULFHSODFHVDPRQHWDU\YDOXHRQJUHHQKRXVHJDVHPLVVLRQV 6FRSHDQG WKDWWKH&RPSDQ\FDQWKHQIDFWRULQFRVW±EHQH¿WDVVHVVPHQWV7KLVZLOODOORZPRUHDFFXUDWHFDSLWDOLQYHVWPHQWGHFLVLRQV
by making it possible to quantify the impact of emissions reductions while also raising awareness of the relationship between capital investments
and CO2 emissions. With the goal of expanding applications for its internal carbon pricing system, DIC will also look at using internal carbon pricing
to factor the cost of emissions into calculations for energy procurement and rationalization efforts.

DIC Sustainability Index
The DIC Sustainability Index was established as a yardstick for measuring the social value of DIC Group products. The index’s vertical axis
TXDQWL¿HVHDFKSURGXFW¶FRQWULEXWLRQWRWKHUHGXFWLRQRIHQYLURQPHQWDOLPSDFWZKLFKWKH',&*URXSLVZRUNLQJFRQWLQXRXVO\WRUHGXFH$VLWZRUNVWRDFKLHYHLWVHPLVVLRQVUHGXFWLRQJRDOVIRU¿VFDO\HDUVDQGWKH*URXS¶VHIIRUWVWRORZHUHQYLURQPHQWDOLPSDFWIRFXVRQJUHHQKRXVHJDV
emissions (Scope 1 and 2).

Calculating Products’ Carbon Footprint
To lower greenhouse gas emissions across its supply chain, the DIC Group calculates and works to minimize emissions associated with its products
from the sourcing of raw materials through to provision to the customer. The Group is currently developing a scheme to calculate each product’s carbon
footprint, which it believes will assist its efforts to promote dialogue with suppliers and to respond to customer expectations and social imperatives.

DIC Report 2022

121

Climate Change

Avoided Emissions
7KHWHUP³DYRLGHGHPLVVLRQV´UHIHUVWRJUHHQKRXVHJDVHPLVVLRQVWKDWFDQEHDYRLGHGWKURXJKWKHXVHRIDSURGXFW([DPSOHVLQFOXGHSURGXFWVWKDWFRQWULEXWHWRLPSURYLQJIXHOHI¿FLHQF\E\UHGXFLQJYHKLFOHERG\ZHLJKWDQGSURGXFWVWKDWKHOSUHGXFHHQHUJ\XVHGIRUKHDWLQJDQGFRROLQJHQHUJ\E\improving insulation. The DIC Group is working to appropriately calculate avoided emissions and quantify the contribution thereof to the reduction ofemissions across the supply chain, recognizing this as a key component of the value its products deliver.

Innovation
As part of its drive to achieve carbon neutrality, the DIC Group is promoting development efforts aimed at recovering CO2, as well as recycling andconverting recovered CO2 into new raw material. The Group recognizes that active efforts to recover and reuse CO 2 will reduce its dependence on
IRVVLOIXHOVFRQWULEXWLQJWRGHFDUERQL]DWLRQDQGWKHDFKLHYHPHQWRIWKHWDUJHWLWKDVVHWIRU¿VFDO\HDUXQGHU',&1(7=(52| The 2021 Excellent Energy Management Business Awards’ Ishikawa Prefectural Governor’s Award,Q)HEUXDU\',&¶V+RNXULNX3ODQWUHFHLYHGWKH,VKLNDZD3UHIHFWXUDO*RYHUQRU¶V$ZDUGLQWKH¿VFDO\HDU([FHOOHQW(QHUJ\0DQDJHPHQW%XVLQHVVOperator Awards, sponsored by the Japan Electric Association’s Hokuriku Region Rationalization of Electric Power Use Committee, in recognition of its
outstanding achievements in the rationalizing energy use.
The Hokuriku Region Rationalization of Electric Power Use Committee works with a number of relevant organizations and other bodies, as well as with the
7R\DPD,VKLNDZDDQG)XNXL3UHIHFWXUDO5DWLRQDOL]DWLRQRI(OHFWULF3RZHU8VH&RPPLWWHHVWRQRPLQDWHDQGFRPPHQGEXVLQHVVRSHUDWRUVLQWKHUHJLRQIRU
excellence in the effective use of energy. This program is part of a larger effort to promote effective energy use and regional industrial development.
DIC sees the Hokuriku Plant’s award as the result of the facility’s steady, ongoing efforts. Looking ahead, the DIC Group will continue to apply the related
know-how it has cultivated to date at its sites in Japan and overseas as it steps up its efforts to promote effective energy use and achieve its DIC NET ZEROWDUJHWIRU¿VFDO\HDU

| Protecting the Ozone Layer+\GURÀXRURFDUERQV +)&V DUHXVHGZLGHO\DVUHIULJHUDQWVLQHTXLSPHQWDQGIDFLOLWLHV:KLOHQRWDQR]RQHGHSOHWLQJVXEVWDQFH 2'6 +)&VKDYH
DZDUPLQJSRWHQWLDO±WLPHVWKDWRI&22 and their use is expected to account for a 0.5°C increase in the global average temperatureby the end of the 21st century. At the 28th Meeting of the Parties in Kigali, Rwanda, held in October 2016, the Parties to the Montreal Protocol on
6XEVWDQFHVWKDW'HSOHWHWKH2]RQH/D\HUUHDFKHGDQDJUHHPHQWWRSKDVHRXWWKHSURGXFWLRQDQGXVHRI+)&V WKH.LJDOL$PHQGPHQW -DSDQVXEVHTXHQWO\DPHQGHGLWV$FWRQWKH3URWHFWLRQRIWKH2]RQH/D\HU7KURXJKWKH&RQWURORI6SHFL¿HG6XEVWDQFHVDQG2WKHU0HDVXUHVLQOLQHZLWKWKHDPHQGPHQWZKLFKDVRI1RYHPEHUKDGEHHQUDWL¿HGE\3DUWLHV +DYLQJVXUSDVVHGWKHFRQGLWLRQRIUDWL¿FDWLRQE\DWOHDVW
3DUWLHVWKH.LJDOL$PHQGPHQWHQWHUHGLQWRIRUFHRQ-DQXDU\
,Q$SULO-DSDQDOVRUHYLVHGLWV)OXRURFDUERQV5HFRYHU\DQG'HVWUXFWLRQ/DZ7KHVDPHPRQWKWKH$FWRQ5DWLRQDO8VHDQG3URSHU
0DQDJHPHQWRI)OXRURFDUERQVHQWHUHGLQWRIRUFHFRPSHOOLQJVWDNHKROGHUVWRDVFHUWDLQDQGUHSRUWOHDNVRIIOXRURFDUERQVIURPFRPPHUFLDO
equipment and facilities.
,Q¿VFDO\HDUOHDNHGÀXRURFDUERQVIURP',&*URXSVLWHVZHUHHTXLYDOHQWWRWRQQHVRI&22. (Leaks in excess of 1,000 tonnes per site or
per company must be reported to the Japanese authorities.)
Leaked Fluorocarbons by the DIC Group in Japan (CO2 Equivalent)
7KH&RPSDQ\KDVZRUNHGWRHIIHFWLYHO\PDQDJHÀXRURFDUERQV
(Tonnes of CO )since the enforcement of the Act on Rational Use and Proper
1,000
200%
0DQDJHPHQWRI)OXRURFDUERQVHQWHUHGLQWRIRUFHDQGKDV
900
180％
managed to keep leaks below the level requiring reporting.
800
160％
In fiscal year 2021, the Group’s efforts to comply with laws
700
140％
JRYHUQLQJOHDNHGÀXRURFDUERQVZHUHUHFRJQL]HGLQWKH-DSDQ
600
120%
Refrigerant and Environmental Organization’s first JRECO500100%)OXRURFDUERQ5DWLQJZKLFKVHOHFWHGLWDVRQHRI$UDQN
400
80%
performers from among 1,350 companies surveyed. Going
300
60%
forward, the DIC Group will continue working to ensurecompliance with pertinent laws and regulation, and to reduce
200
40%
OHDNHGÀXRURFDUERQVIURPLWVVLWHV
100
20%
2

0

0%

2015

2016
DIC

DIC Report 2022

122

2017

2018

DIC Group companies in Japan

2019

2020

2021 (FY)

Change from fiscal year 2015

Climate Change

Key Data
Category
Energy used (converted into GJ)

Energy consumed per unit of production

CO2 emissions

CO2 emissions (Scope 1)CO2 emissions (Scope 2)CO2 emissions per unit of production

Unit
1,000 GJ

GJ/tonne

TonnesTonnesTonnesKg/tonne

Boundary

Fiscal year 2019

Fiscal year 2020

Fiscal year 2021

Japan

4,184



4,183

PRC

1,056

1,036



$VLD±3DFL¿FUHJLRQ

1,623

1,606

1,835

Sun Chemical







Other



118

63

Global





Japan





3.656

PRC







$VLD±3DFL¿FUHJLRQ

6.810





Sun Chemical

6.525



5.626

Other

133.4403.030

108.223

Global

5.014

5.108



Japan







PRC





61,033$VLD±3DFL¿FUHJLRQ

102,630

103,334

Sun Chemical



160,540

Other



6,048

3,081

Global

552,123546,304

Japan

138,611

135,612PRC

14,12813,260

$VLD±3DFL¿FUHJLRQ

61,21564,358Sun Chemical

45,38344,350

Other



1,361

1,154

Global

245,603

Japan







PRC

40,646

40,41245,558$VLD±3DFL¿FUHJLRQ

41,414

Sun Chemical

150,356

120,613

Other



4,686



Global





Japan







PRC





242

$VLD±3DFL¿FUHJLRQ

431

460

484

Sun Chemical





283

Other



155

5,333

Global







DIC Report 2022

123

Quality
Enhancing Product Quality and Customer Satisfaction

Goals and Achievements of Major Initiatives
Objective of initiatives

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

Goals for fiscal year 2021

Achievements in fiscal year 2021

Evaluation

Goals for fiscal year 2022

Reinforce the quality management process
to prevent improprieties, as well as major
quality defects and criticisms.

Quality audits were conducted to analyze thecauses of issues and confirm procedures forpreventing recurrence, as well as to clarify
challenges and effective countermeasures.

★★

Investigate the root causes of improprieties
and issues of nonconformance and takedecisive steps to prevent recurrence.

Provide products and services that deliver alevel a quality that matches both customer
expectations and market requirements.

The approval process for the management ofchanges was scrutinized and modifications
were made, particularly regarding the
involvement of sales representatives andother corporate headquarters personnel.

★★

Approach product quality from theperspective of customers and society andguarantee a level of quality that matches
requirements.

Secure product quality.

Basic Approach
In line with The DIC Way and its basic sustainability policy, the DIC Group positions its Environment, Safety and Health Policy and its Quality Policy
as two inseparable aspects of its operations. Accordingly the Group works continuously to provide products and services that respond to the needsof customers and society at large.

DIC’s Quality Policy

Contribute to the prosperity of customers and society by consistently providing reliable products (Updated in May 2015)| Framework for Promotion

Product divisions

7REHWWHUOHYHUDJHLWVDJLOLW\DQGFRPSUHKHQVLYHFDSDELOLWLHV',&SUHYLRXVO\HPSOR\HGDPDWUL[OLNHTXDOLW\PDQDJHPHQWFRQ¿JXUDWLRQZLWKSURGXFWGLYLVLRQVRQWKHYHUWLFDO
D[LVDQGWKH7HFKQLFDO0DQDJHPHQW8QLWDQG3URGXFWLRQ0DQDJHPHQW8QLWRQWKHKRUL]RQWDOD[LV,Q¿VFDO\HDUWKH&RPSDQ\ODXQFKHGDQHZFRQ¿JXUDWLRQLQZKLFKWKH
product division quality assurance groups have been absorbed into the Production Management Unit.
This realignment also involved creating the position of deputy general manager in charge of quality control within the Production Management Unit and integrating the quality
assurance groups, previously divided among the product divisions. The goals here were to ensure the independence of the framework for promoting quality assurance to
HQVXUHFXVWRPHUV¶TXDOLW\UHTXLUHPHQWVFODULI\WKHUROHVRITXDOLW\FRQWURODQGTXDOLW\DVVXUDQFHHQVXULQJWKDWHDFKIXO¿OOVLWVSURSHUIXQFWLRQZKLOHPRQLWRULQJWKHRWKHUDQG
position the Quality Assurance Department and the newly inaugurated Quality Control Department, using their respective reporting lines, to identify issues facing sites andproduct divisions and devise the most effective measures in response.
DIC also established a new Quality Committee to enable the president to be directly involved in quality management. In principle, the Quality Committee meets once eachquarter to formulate DIC Group quality policies and important quality management measures. At committee meetings, the product division general managers and unit heads
DUHUHVSRQVLEOHIRUUHSRUWLQJRQWKHVWDWXVDQGSURJUHVVRITXDOLW\PDQDJHPHQWPHDVXUHVDQGVXPPDUL]LQJUHODWHGDFWLYLWLHV$QHVSHFLDOO\UHJUHWWDEOHLQFLGHQWLQ¿VFDO\HDULQYROYHGWKHWHPSRUDU\VXVSHQVLRQRI,62FHUWL¿FDWLRQDQGWKHFDQFHOODWLRQRI8QGHUZULWHUV/DERUDWRULHV¶FHUWL¿FDWLRQIRUDFHUWDLQSURGXFWZKLFKZDVUHFRJQL]HG
as a Companywide issue. Toward year-end, DIC reviewed these issues and formulated priority strategies for its DIC Vision 2030 long-term management plan, which waslaunched in early 2022.

Customersatisfaction

Trust

Expectations

Quality Assurance Department
Quality Control Department
Peace of
mind

Sites

QMS
administration

Satisfaction

DIC Report 2022

124

Quality| Quality Assurance and Quality Improvement Initiatives
8QGHUWKHQHZTXDOLW\PDQDJHPHQWFRQ¿JXUDWLRQWKH4XDOLW\$VVXUDQFH'HSDUWPHQWDQGWKH4XDOLW\&RQWURO'HSDUWPHQWLPSOHPHQWPHDVXUHVdeliberated by the Quality Committee and in their respective roles work to improve the overall level of quality management. In the event an issue of
nonconformance arises, the departments take corrective measures to prevent recurrence and improve customer satisfaction.
1

Initiatives Aimed at Increasing Customer Satisfaction

The Quality Assurance Department’s principal responsibilities are to:❶ deploy the DIC Group’s Quality Policy,❷ promote measures to improve customer satisfaction,❸ ensure the appropriate management and auditing of the Group’s quality management system (QMS),❹ provide and assist in the appropriate management of information on quality-related lawsDQGUHJXODWLRQVDQGFHUWL¿FDWLRQXQGHUGRPHVWLFDQGRYHUVHDVVWDQGDUGVDQG❺ foster a customer- and compliance-focused mindset.

In addition to conducting regular internal quality audits, the Quality Assurance Department repeatedly monitors and inspects domestic sites to
HQVXUHWKDWWKH406LVDGPLQLVWHUHGHIIHFWLYHO\WKHUHE\HQVXULQJWKDWDQDZDUHQHVVRIWKHQHHGWRSODFHFXVWRPHUV¿UVWUHPDLQV¿UPO\URRWHG
across the DIC Group.
,Q¿VFDO\HDUTXDOLW\DXGLWVORRNHGDWVLWHJHQHUDOPDQDJHUVDQGRWKHUVHQLRUPDQDJHPHQWDVZHOODVDWWKHPDQDJHPHQWRIFKDQJHVIRFXVLQJPDLQO\RQKRZUHODWHGGHSDUWPHQWVDUHLQYROYHG$VLQ¿VFDO\HDUDXGLWVKDGWREHFRQGXFWHGRQOLQHEXWDXGLWWHDPVZHUHDEOH
to engage in rigorous dialogue with sites. Regarding senior site management, dialogue focused on the effectiveness of reporting lines to the site
JHQHUDOPDQDJHUDQGWKHGHSOR\PHQWRISROLFLHVZLWKLQVLWHV&RQYHUVDWLRQVRQWKHPDQDJHPHQWRIFKDQJHVFRQ¿UPHGWKHHIIHFWLYHDGPLQLVWUDWLRQ
of the QMS and the effectiveness of communication with customers. In the area of compliance, lists of laws, regulations and third-party opinions
were drawn up. These lists were used in the management of changes and in design reviews, as well as in the establishment of procedures toensure compliance with laws and regulations.
2

Initiatives Aimed at Enhancing Product Quality

The Quality Control Department’s principal responsibilities are to:❶ improve the level of quality control (enhance product competitiveness),❷ enhance the reliability of quality inspections,❸ advance the horizontal deployment of best practices, and❹ promote DX for business processes related to quality control and quality inspections.

To provide high-quality products that customers feel secure using, the DIC Group promotes a variety of quality improvement initiatives during
product planning, design and development, the procurement of raw materials, production and sales, giving consideration to the need for effective
product stewardship.
Management of changes to maintain compliance with quality requirements, necessitated by the expansion of facilities to accommodate increased
production, the replacement of aged equipment and the transition to new, more cost-competitive products, emphasized preventing the discharge ofnonconforming products, a key concern, and fortifying efforts to respond to complaints and criticisms.
The DIC Group is expanding its use of statistical process control (SPC), a quality monitoring and control methodology, and have commenced
efforts to manage risks associated with deviation from quality requirements. By illuminating root causes and providing failure mode and effectanalysis (FMEA) feedback, the Group is managing quality risks from the raw materials and production stages. The Group is also promoting DX to
FRQ¿UPHIIHFWLYHQHVVRQDGDLO\EDVLV7RIXUWKHUHQKDQFHWKHHIIHFWLYHQHVVRIHIIRUWVWRSUHYHQWWKHUHFXUUHQFHRILVVXHVDVZHOODVWRFRXQWHUWKH
risk of these efforts encouraging negative thinking, the DIC Group is working to advance the recognition of a common vision for the future.

DIC Report 2022

125

Quality

3

Compliance: The DIC Group’s Top Priority

Committed to providing products that satisfy its customers and contribute to society, DIC believes that a corporate climate in which each employee
ZRUNVWRHQVXUHTXDOLW\LVHVVHQWLDO1RQHWKHOHVVLQ¿VFDO\HDUWKH&RPSDQ\ZDVIRUFHGWRDQQRXQFHWKHVXVSHQVLRQRI,62FHUWL¿FDWLRQIRUWZRSODQWVDQGRI8QGHUZULWHUV/DERUDWRULHV¶FHUWL¿FDWLRQRI/&SRO\PHUVERWKFRQVHTXHQFHVRILQDSSURSULDWHFRQGXFW
',&WDNHVWKHVHLQFLGHQWVVHULRXVO\'XULQJWKHSHULRGWKH&RPSDQ\LPSOHPHQWHG,627RS0DQDJHPHQW7UDLQLQJLQLWLDOO\ODXQFKHGLQ¿VFDO
year 2020, for technical and sales department leaders, who have many opportunities to communicate with customers. Rather than being conceptualin nature, training under this program in the period under review employed case studies as study materials and emphasized the importance of eachindividual thinking and acting as if quality is their responsibility even if they are not directly involved in production.
Additionally, an e-learning program on quality compliance was conducted for domestic DIC Group employees, with 100% of eligible employees
WDNLQJSDUW7KHLVVXHRILPSURSULHWLHVLQW\SHWHVWLQJRIDIRDP¿UHH[WLQJXLVKLQJDJHQWZDVXVHGDVWUDLQLQJPDWHULDOWRUDLVHDZDUHQHVVRIWKH
causes of compliance violations and prevent recurrence. Going forward, the Group will expand training designed to give employees a greater senseof ownership over their own work.

Mechanisms for Dealing Appropriately with Issues
In the DIC Group’s new quality management configuration, the deputy general manager in charge of quality control conducts Group quality
FRQIHUHQFHV7KHSXUSRVHRIWKLVLVWRFRPPXQLFDWHVSHFL¿FPHDVXUHVIRULPSOHPHQWLQJWKH*URXS¶VDQQXDOTXDOLW\DFWLYLW\SODQWRWKH4XDOLW\Committee, which is headed by the president, and to monitor the status thereof. The conference also plays a role in improving quality management
DFURVVWKH*URXSE\DGYDQFLQJWKHKRUL]RQWDOGHSOR\PHQWRIEHVWSUDFWLFHVDQGFDVHVWXGLHVLOOXVWUDWLQJVLJQL¿FDQWLVVXHV
Product division quality conferences, which focus on customer satisfaction, are also held. The product divisions, which propose solutions tocustomers and spearhead the implementation of business strategies, also lead BCM initiatives, a task of importance to customers. In areas where
FRPSOLDQFHFRQÀLFWVDUHVHHQDVOLNHO\WRRFFXUSURGXFWGLYLVLRQJHQHUDOPDQDJHUVWDNHWKHOHDGLQFRPPXQLFDWLQJZLWKFXVWRPHUVDQGVHHNLQJto resolve issues. In contrast, the role of site quality conferences, which are conducted by site general managers, is to ensure the appropriate
functioning of the Group’s QMS and promote improvements. Should an issue of nonconforming products arise, site quality conferences investigate
causes, implement corrective measures and take steps to prevent recurrence. In addition to boosting customer satisfaction in terms of productperformance, these efforts assist product divisions in formulating plans in line with business strategies and managing the effective execution
thereof. Both the Quality Assurance Department and the Quality Control Department participate in these conferences and respond swiftly andappropriately to issues as required
4| ,PSURSULHWLHV5HODWHGWR8QGHUZULWHUV/DERUDWRULHV·&HUWLÀFDWLRQ
2Q0D\',&UHFHLYHGQRWL¿FDWLRQRIWKHWHPSRUDU\VXVSHQVLRQRI,62FHUWL¿FDWLRQIRULWV&KLED3ODQWDQGWKHFDQFHOODWLRQRI
8QGHUZULWHUV/DERUDWRULHV¶FHUWL¿FDWLRQRILWV/&SRO\PHUV2Q0DUFKDVSHFLDODXGLWRIWKHSODQWFRQGXFWHGE\/OR\G¶V5HJLVWHU4XDOLW\$VVXUDQFH/WG /54$ LQFRQQHFWLRQZLWKLPSURSULHWLHVLQW\SHWHVWLQJRIDIRDP¿UHH[WLQJXLVKLQJDJHQWDOVRXQFRYHUHGLPSURSULHWLHVUHODWHGWR
8QGHUZULWHUV/DERUDWRULHV¶FHUWL¿FDWLRQRI/&SRO\PHUV$VDUHVXOWWKHSODQW¶V,62DQG-,64FHUWL¿FDWLRQZDVVXVSHQGHG
HIIHFWLYHIURPWKHGDWHRIWKHQRWL¿FDWLRQZKLFK',&DQQRXQFHGWRJHWKHUZLWKWKH8QGHUZULWHUV/DERUDWRULHV¶FHUWL¿FDWLRQFDQFHOODWLRQ',&WDNHV
these incidents seriously and is taking corrective actions to improve its QMS, as well as to prevent recurrence, as well as to restore customer trust.
The Company has also expressed its deepest regrets for any anxiety or trouble caused to customers or other related parties.
2Q6HSWHPEHUWKHWHPSRUDU\VXVSHQVLRQRI,62DQG-,64FHUWL¿FDWLRQIRUWKH&KLED3ODQWDVZHOODVIRUWKH
+RNXULNX3ODQWUHVXOWLQJIURPWKHLPSURSULHWLHVLQYROYLQJWKHIRDP¿UHH[WLQJXLVKLQJDJHQWZDVUHVFLQGHG7KHDJHQWMEGAFOAM IH-101-5, hasbeen replaced by a new type-approved alternative.

DIC Report 2022

126

Human Resources Management

SDGs Goals 3, 4, 5, 8 and 10

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

Foster and endorse theadvancement of humanresources around the world
with the aim of advancing
global management.

Support efforts to secure adiverse labor force.

Promote measures to protect
the human rights and ensure
the safety and health of
employees.

Goals for fiscal year 2021

Achievements in fiscal year 2021

Evaluation

Goals for fiscal year 2022

Foster human resources.
• Promote efforts to foster future
management candidates with a view toshifting to a global management system.
• Provide training aimed at cultivating global
human resources at multiple levels.

• Steps were taken to foster
management candidates.
• Training aimed at cultivating global
human resources was provided
for managers and other selected
employees.

★★

• Consider building a framework
for talent management with the
expectation of shifting to a global
management system.
• Continue providing training for
selected employees.

Build a human resources infrastructure.
Consider the creation of a global
Group human resources database andpersonnel system.

Full-scale consideration of a global
personnel system began.

★★

Formulate a vision of the ideal global
personnel system and a road map
for its establishment.

Advance career opportunities for women.
Explore and implement measures toadvance understanding of diversity.

• Information was disseminated toadvance understanding of diversity.
• Having grasped and analyzed the current
situation, measures were reviewed.

★★

Advance diversity and inclusion
by promoting initiatives focusedparticularly on the latter.

Promote the hiring of individuals
with disabilities.
• Continue working to reinforce
relations with special needs schools.
• Exchange information with other.
Companies on the creation of
special-purpose subsidiaries.
• Maintain the percentage of DIC’s
total labor force accounted for byindividuals with disabilities at 2.65%.

• To reinforce relations with special
needs schools, active steps weretaken to recruit trainees.
• The decision was made to recruit new
employees from schools for the deaf.
• As of December 31, 2021, individuals
with disabilities accounted for 2.60%
of DIC’s total labor force.

★★★

• Continue working to reinforce
relations with special needs schools.
• Provide support to strengthen theretention rate for employees withdisabilities.
• Maintain the percentage of DIC’s
total labor force accounted for byindividuals with disabilities at 2.60%.

★★

• Grasp global trends in humanrights–related issues andmeasures promoted by the UN andindividual countries and territories
to address such issues. Continue
to provide guidance to DIC Group
companies worldwide.
• Conduct human rights due
diligence at Group companies inIndia and the PRC.

★★★

• Prevent mental health disorders
and take steps to ensure theprompt identification of issues.
• Implement measures to improvehealth literacy.

Guarantee human rights.
• Grasp global trends in humanrights–related issues and measures
promoted by the UN and individual
countries and territories to address
such issues. Provide guidance to
DIC Group companies worldwide toensure they do not commit humanrights violations.
• Conduct human rights due diligencein countries and territories where
there is a potential risk of humanrights violations and provide tailoredguidance to reduce the risks thathuman rights–related issues pose.
Protect employee health.

• Prevent mental health disorders bytaking steps to ensure the prompt
identification of issues.
• Implement measures to improvehealth literacy.

• Steps were taken to disseminate the DIC
Group Human Rights Policy and recent
human rights–related initiatives.
• Human rights due diligence was conductedat DIC Group companies in Malaysia.

• Training was provided in caring for mental
health, with sessions led by industrial
physicians specializing in the field.
• Seminars on healthcare were provided
in collaboration with a sports club.

Basic Approach to Human Resources Management
With the aim of being an organization that empowers all employees to reach their full potential, the DIC Group is committed to respecting human rights
and eliminating all forms of discrimination and to creating a work environment that embraces diversity. The Group also strives to support a healthy
work–life balance for each employee and create a work environment conducive to job satisfaction, as well as to foster human resources in markets
around the world, which it recognizes as essential to ensuring sustainable corporate growth under its current medium-term management plan.

DIC Report 2022

127

Human Resources Management

1. Efforts to strengthen management of human capital
1 Building a strategic human resources portfolio that maximizes the value of human capital

In line with The DIC Way, which represents its fundamental management policy, DIC in Japan works with regional headquarters overseeing operations
LQ*UHDWHU&KLQDWKH$VLD±3DFL¿FUHJLRQDQGWKH$PHULFDV(XURSHDQG$IULFDWRSURPRWHWKHHIIHFWLYHPDQDJHPHQWRIKXPDQUHVRXUFHV7KH',&
Vision 2030 long-term management plan, announced in February 2022, recognizes human resources as capital that is crucial to the execution of
PDQDJHPHQWVWUDWHJLHV,QWKLVSODQWKH&RPSDQ\LGHQWL¿HVWKUHHVWUDWHJLFSULRULWLHVIRUEXLOGLQJDVWUDWHJLFKXPDQUHVRXUFHVSRUWIROLRWKDWPD[LPL]HVWKHYDOXHRIKXPDQFDSLWDO²³)RVWHUKXPDQUHVRXUFHV´³(QVXUHPRELOLW\ KLULQJUHWHQWLRQDQGVXFFHVVLRQ ´DQG³,PSURYHHQJDJHPHQWDQGRUJDQL]DWLRQDO
cohesiveness”—and calls for the building of a personnel management platform that underpins these priorities through framework creation, risk
management and efforts to enhance its corporate culture.
DIC Vision 2030: Three Strategic Priorities and a Personnel Management Platform
Three strategic priorities
Foster human resourcesz Global-based talent management and leadershiptrainingz Promote reskilling to maximize human resources

Ensure mobility (hiring, retention and succession)z Actively recruit people from different industries andpeople with digital capabilities
z Achieve optimal balance between specialists andgeneralistsz Succession planning

Improve engagement and organizational cohesivenessz Promote communication and use empathy and trust to
cultivate solidarity
z Advance innovation by encouraging enthusiasm about
taking on challenges

Personnel management platform
Framework creation: Global HR system

Risk management: Safety and compliance‫ ٴ‬Facilitate autonomous, multitrack career building‫ ٴ‬Ensure occupational health and safety, and appropriate labor practices‫ ٴ‬Adopt global HR system to create standardized Group framework‫ ٴ‬Improve compliance and reinforce HR governance

Enhance corporate culture: Value diversity and inclusion‫ ٴ‬Promote diversity, recognizing it as a source of competitiveness‫ ٴ‬Nurture inclusion, recognizing it as essential to making diversity a competitive advantage

Work style reform: Bolster job satisfaction and productivity‫ ٴ‬Implement reforms designed to increase job satisfaction, as well as workplace reforms and process reforms that reinforce productivity.

2

WSR 2020,Q¿VFDO\HDU:RUN6W\OH5HYROXWLRQ :65 ZKLFKZDVODXQFKHGLQWKHSUHYLRXV¿VFDO\HDUDVDOLPLWHGWLPHSURMHFWWRGHYHORS
new work styles with the aim of boosting employee job satisfaction and productivity, was transformed into an all executive–led committee inwhich all employees will participate. The rapid advance of digitalization, together with the advent of COVID-19 and projections for the postpandemic “new normal,” have highlighted the need to revamp work styles to ensure job satisfaction and productivity, a task to which DIC
executives have committed themselves. With the shift to a committee status, the project’s existing working groups have been realigned
to create the Job Satisfaction Improvement Reform, Workplace Reform and Process Reform working groups, a framework under which
executives will work as one to promote decisive measures.

WSR 2020 Committee Reforms and Targets● Job Satisfaction Improvement Reform
Create workplaces that embody The DIC Way by encouraging enthusiasm about taking on various challenges, evaluating performance fairly and recognizing personal value.
・Establish a foundation that empowers employees to fully exercise their abilities.
・$GRSWV\VWHPVWKDWHQVXUHHPSOR\HHV¶FKDOOHQJHVDQGDFKLHYHPHQWVDUHHYDOXDWHGDSSURSULDWHO\DQGUHÀHFWHGWRWKHPD[LPXPGHJUHHSRVVLEOH
・Support career development for individual employees based on a performance-oriented approach.
● Workplace Reform
Realize working environments that motivate employees to achieve Company, department/division and individual goals, and make it possible for them to work comfortably andproductively, anytime and anywhere, in collaboration with team members, colleagues and related parties. To this end, establish an effective remote work system by creating
an infrastructure that fully deploys IT technologies and by achieving improved employee IT literacy.
Process
Reform●Dramatically improve the productivity of individuals, departments/divisions and the entire company and reinforce the Group’s competitiveness by leveraging DX torevamp existing work styles and business processes and by building new business models.

DIC Report 2022

128

Human Resources Management

3

Basic Personnel Statistics (DIC)
Fiscal year 2019
Male
Number of
employees

2,640
681
3,321
42.6
42.1
42.5
18.3
19.8
18.6
44
22
66

FemaleOverallMale

Average age

FemaleOverall

Averageyears ofemployment

New
graduates
hired

Fiscal year 2020

Male
FemaleOverallMale
FemaleOverallFiscal year 2021

Fiscal year 2019

Fiscal year 2020

Fiscal year 2021

2,659
686
3,345
42.9
42.8
42.8
18.2
20.2
18.6
40
18
58

(Fiscal year 2016 hires)(Fiscal year 2017 hires)(Fiscal year 2018 hires)

2,669
691
3,360
42.7
42.5
42.7
18.3
20.1
18.6
56
22
78

Retention rate
(after three
years)

Male
FemaleOverallMid-career hires(percentage of
total new hires)

Male
FemaleOverallMale

Separations(voluntary)(number ofindividuals)

FemaleOverallMale

Separation rate(voluntary)

FemaleOverallNote: The number of employees refers to individuals registered as employees of DIC Corporation and thusGLIIHUVIURPWKH¿JXUHLQWKHDQQXDOVHFXULWLHVUHSRUW

97.2%
76.9%
91.8%
71
10
44.9%
45
16
61
1.7%
2.3%
1.8%

92.3%
100%
94.0%
52
3
41.4%
33
16
49
1.2%
2.3%
1.5%

93.0%
90.0%
92.1%
64
7
54.2%
54
12
66
2.0%
1.8%
2.0%

2. Three Priority Strategies
1 Foster Human Resources① Global-Based Talent Management

2QHRIWKHEDVLFVWUDWHJLHVRXWOLQHGLQWKH',&9LVLRQORQJWHUPPDQDJHPHQWSODQIRUUHDOL]LQJLWVUHGH¿QHGYLVLRQVWDWHPHQWLVWRHVWDEOLVKDPRUHUREXVWJOREDOPDQDJHPHQWFRQ¿JXUDWLRQ*XLGHGE\WKLVVWUDWHJ\WKH&RPSDQ\ZLOOZRUNWR¿UPO\HVWDEOLVKLWVQH[WPDQDJHPHQWVHOHFWLRQSURFHVVDVZHOODVDFWLYHO\FRQVLGHUYDULRXVQHZV\VWHPVDQGSURFHGXUHVZLWKWKHDLPRIHQKDQFLQJLWVPDQDJHPHQWFRQ¿JXUDWLRQ7KHVHLQFOXGH
creating a global talent management committee and establishing selection and monitoring processes for high-potential employees.
② &RQÀJXUDWLRQIRU)RVWHULQJ+XPDQ5HVRXUFHV

7RUHVSRQGÀH[LEO\WRGUDPDWLFFKDQJHVLQEXVLQHVVFRQGLWLRQVDQGFRQWLQXRXVO\FUHDWHQHZYDOXHLWLVFUXFLDOWRRIIHUZRUNLQJHQYLURQPHQWVWKDWHQVXUHDOOHPSOR\HHVPDLQWDLQDKLJKOHYHORIH[SHUWLVHDQGHPSRZHUWKHPWRUHDFKWKHLUIXOOSRWHQWLDO7RUHDOL]HVXFKHQYLURQPHQWVLQ¿VFDO\HDU',&IRUPXODWHGIRXUEDVLFSROLFLHVIRUIRVWHULQJKXPDQUHVRXUFHV,Q¿VFDO\HDUWKH&RPSDQ\H[SORUHGDQGLPSOHPHQWHGVSHFL¿FSURJUDPVEDVHGRQWKHVHSROLFLHVDQGWKLVFRQ¿JXUDWLRQPolicy 1 Build a systematic leadership pipeline. This will enable DIC to identify future management candidates and young prospective leaders and to make focusedinvestments in the training of such individuals.
Policy 2 Promote the global standardization of job skills. The Company will devise an online learning platform designed to equip individual employees around theworld with the specialized skills and know-how required to expertly perform a diverse range of jobs. This platform will facilitate the formulation of anindividually optimized learning environment that enables employees to take as many courses as they need.
Policy 3 Support the efforts of employees to realize career paths. DIC will assist the efforts of employees to design their own careers and provide crucial related

support, including by ensuring the right people are in the right places.
Policy 4 &XOWLYDWHVHOIVXI¿FLHQWHPSOR\HHV7KH&RPSDQ\VHHNVWRGRWKLVE\QXUWXULQJLQGLYLGXDOVLQYDULRXVMREVDQGSRVLWLRQVZKRXQGHUVWDQGZKDWLVH[SHFWHGRI

them and are able to routinize responsibilities, and by empowering them to make changes.
1. DIC Leadership Program

Talentedhuman
resources

Talentedhuman
resources

Foster leaders

Management

Objective: Build a systematic leadership pipeline
Enables expanded investment in training talented human resources and systematically
fostering leadership candidates; seeks to support the acquisition of advanced
management skills and global business skills by leadership candidates who will be
critical to driving growth for DIC over the medium to long term
Talentedhuman
resources

Talentedhuman
resources

2. DIC Skills Improvement Program

Management-level
employees
Talentedhuman
resources

Talentedhuman
resources

Talentedhuman
resources

Objective: Promote the global standardization of job skills
Devised to lift work and job skill levels globally by promoting job-oriented, individually
optimized training rather than one-size-fits-all human resources development

Talentedhuman
resources

3. DIC Career Development Program

Production

Cultivate specialized skills

Sales/marketing

Cultivate specialized skills

Technology/R&D

Cultivate specialized skills

Administration

Cultivate specialized skillsthpa

Cultivate specialized skills

er

re
Ca

Regularemployees

New businesses

Objective: Support the efforts of employees to realize their own career paths
Allows individual employees to chart their own careers paths, as well as provides access to
support from mentors both within and outside the Company; one of two programs—the otherbeing the DIC Skills Improvement Program—that supports the realization of career goals
4. DIC Action Learning Set Program
Objective: Cultivate self-sufficient employees
Seeks to cultivate employees who are capable of acting on their own and driving change, andwho understand what is expected of them and are able to routinize responsibilities

Employees’ ability to act/mindset

DIC Report 2022

129

Human Resources Management
Principal Training Programs and Content
Program name

DIC Leadership Program

Implemented/Under consideration
Dispatch to external training institution

7KH,QWHUQDWLRQDO,QVWLWXWHIRU0DQDJHPHQW'HYHORSPHQW ,0' 1 wasadded to the slate of selected external training institutions; leadership
FDQGLGDWHVZHUHGLVSDWFKHGWRWKH,0'LQ¿VFDO\HDU

Global leader communications training

The existing program was revamped and relaunched as a program
focused on the short-term, intensive acquisition of advanced skills.

Global leader skills training

The launch of a program designed to impart the knowledge and skills
critical to management is under consideration.

Adoption of subscription-based e-learning program

Online courses supporting employee skills improvement andreskilling were launched, facilitating the provision of training
anywhere and at any time.

*OREDOWDOHQWGHYHORSPHQW (QJOLVKODQJXDJHDELOLW\• The existing program was overhauled to include more practical content
and relaunched with a focus on global communications training.
• The introduction of content regarding the importance of Englishlanguage ability is under consideration.
• The Versant  English Speaking Test was introduced.

Career training“Self-career dock” training for employees was offered on a trial basis
for employees reaching the age of 50.

Manager training

Training for managers was newly offered.

Behavioral change training([LVWLQJUDQNVSHFL¿FWUDLQLQJZDVUHSODFHGZLWKWUDLQLQJWLPHGWRFRLQFLGH
with changes in role—due to, for example, promotion—to promotechanges in behavior commensurate with new responsibilities.

Training incorporating one-on-one meetings

Training in how to conduct one-on-one meetings with subordinates wasprovided for all employees.

DIC Skills Improvement Program

DIC Career Development Program

DIC Action Learning Set Program

Details

7KH,0'LVDEXVLQHVVVFKRROEDVHGLQ/DXVDQQH6ZLW]HUODQG
9HUVDQWWHVWVRI(QJOLVKSUR¿FLHQF\DUHXVHGE\PDMRUJOREDOFRUSRUDWLRQVDQGJRYHUQPHQWDJHQFLHVDURXQGWKHZRUOG

Leadership Training
DIC chooses talented employees with the goal of systematically cultivating the leaders of the future and dispatches them to a variety of
H[WHUQDOLQVWLWXWLRQVSURYLGLQJWUDLQLQJLQGLYHUVHDUHDVLQFOXGLQJOLEHUDODUWV,Q¿VFDO\HDUWKH&RPSDQ\DGGHGWKH,0'WRLWVVODWH
RIVHOHFWHGH[WHUQDOWUDLQLQJLQVWLWXWLRQVDQGGLVSDWFKHGLWV¿UVWPDQDJHPHQWFDQGLGDWHVWRWKH6ZLVVVFKRRODOEHLWRQOLQH0RUHRYHUWKH
Company revised the content and target of the English-language component of its in-house training program, relaunching it as global
leader communications training. DIC is also planning global leader skills training designed to impart the knowledge and skills critical to
PDQDJHPHQWZLWKDYLHZWRODXQFKLQ¿VFDO\HDU

Global Talent Development',&SODFHVVLJQL¿FDQWHPSKDVLVRQJOREDOWDOHQWGHYHORSPHQWWKDWLVWUDLQLQJWRLPSURYH(QJOLVKODQJXDJHDELOLW\+DYLQJSRVLWLRQHGLWV
H[LVWLQJJOREDOFRPPXQLFDWLRQVWUDLQLQJSURJUDPDVDQLPSRUWDQWSDUWRILWVQHZFRQ¿JXUDWLRQIRUIRVWHULQJKXPDQUHVRXUFHVWKH&RPSDQ\revamped the program’s content and format and relaunched it with practical content and a focus on the short-term, intensive acquisitionof global standard advanced communications skills. DIC has traditionally used TOEIC as the benchmark to evaluate English-language
SUR¿FLHQF\EXWLQ¿VFDO\HDUWKH&RPSDQ\DOVREHJDQXVLQJWKH9HUVDQW(QJOLVK6SHDNLQJ7HVWWRJDXJHVSHDNLQJDELOLW\ZKLFKLV
particularly important in actual business situations. DIC also continued to enhance the content of the English-language study and selfdevelopment support programs.

Overseas Trainee and GCD Programs
The Overseas Trainee Program was established with the aim of cultivating human resources capable of functioning in global businessenvironments. Under this program, DIC dispatches young employees from Japan to work at an overseas DIC Group company, helping them to
LPSURYHWKHLUODQJXDJHDQGFRPPXQLFDWLRQVVNLOOVWKURXJKORFDORQWKHMREWUDLQLQJ8QGHUWKH*OREDO&DSDELOLW\'HYHORSPHQW *&' 3URJUDP
employees from oversees are sent to work at Group companies in Japan for a specified period to gain experience and develop a moreinternational mindset. Unfortunately, owing to COVID-19 no employees are currently participating in either program and new applications are
not being accepted. DIC looks forward to restarting both programs as soon as possible once the pandemic situation improves.

DIC Report 2022

130

Human Resources Management

Reskilling to Maximize Human Resources
DIC provides support for career building that allows individual employees to design their own careers and provides an arena for them to
FRQWLQXRXVO\H[SDQGDQGSROLVKWKHLUVNLOOV$VSDUWRIWKLVHQGHDYRULQ¿VFDO\HDUWKH&RPSDQ\RIIHUHG³VHOIFDUHHUGRFN´WUDLQLQJIRU
employees on a trial basis for employees reaching the age of 50. Additionally, as part of its reskilling strategy the Company introduced a newe-learning self-help program that was unlike other programs it offers, including GLOBIS Unlimited and Udemy for Business, is subscriptionbased, allowing employees to freely choose the courses they need from a wide selection.
2 Ensure Mobility

With the objective of diversifying its Group human resources portfolio andmanaging it effectively and in accordance with its business needs, DIC
recognizes the need to create a human resources system that bolsters
mobility within the Group, enabling employees to fully exercise their abilities
beyond national, regional and departmental boundaries. To this end, DIC
KDVLGHQWL¿HGWKUHHNH\FRXUVHVRIDFWLRQ$FWLYHO\UHFUXLWLQGLYLGXDOVIURPdifferent industries and people with digital capabilities, expand available
career paths and promote succession planning.

Actively recruit individuals from different industries

1 and people with digital capabilities
Mobility of humanresources

2 Expand available career paths
3 Promote succession planning① Actively Recruit Individuals from Different Industries and People with Digital Capabilities

7RDFFHOHUDWHWKHGLYHUVL¿FDWLRQRILWVKXPDQUHVRXUFHVSRUWIROLR',&LVVWHSSLQJXSHIIRUWVWRUHFUXLWH[SHULHQFHGLQGLYLGXDOVSULPDULO\IURPGLIIHUHQW
industries. For the past three years, the percentage of new recruits that were experienced mid-career hires has remained steady at 40%-plus.
&DOFXODWLRQ([SHULHQFHGPLGFDUHHUKLUHV 1HZJUDGXDWHV([SHULHQFHGPLGFDUHHUKLUHV 7KH&RPSDQ\LVDOVRLQWHQVLI\LQJHIIRUWVWRKLUHSHRSOH
with digital capabilities to secure the human resources necessary to spearhead the DIC Group’s digital transformation. Of note, in addition to seeking
H[SHULHQFHGPLGFDUHHULQGLYLGXDOVZKRLWH[SHFWVZLOOEHDEOHWRKLWWKHJURXQGUXQQLQJLQ¿VFDO\HDU',&ZLOODGRSWUHFUXLWPHQWE\MREFDWHJRU\
for new graduates, underscoring its medium- to long-term perspective toward growing and raising the overall level of its human resources portfolio.
② Expand Available Career Paths%HJLQQLQJLQ¿VFDO\HDU',&VFUDSSHGLWVRQHVL]H¿WVDOOFDUHHUSDWKIRUPDWZKHUHE\DOOHPSOR\HHVEHFDPHJHQHUDOLVWVDQGHVWDEOLVKHGDQHZ
IRUPDWWKDWLQFOXGHVSDWKVIRUVSHFLDOLVWVDQGSURIHVVLRQDOVZKRZLVKWRIRUJHDFDUHHULQDUHDVUHTXLULQJSDUWLFXODUH[SHUWLVHDQGRUTXDOL¿FDWLRQV7KH
expansion of career paths available to employees allows for the assignment of individuals to positions that leverage their strengths, broadening thescope for employees to achieve self-realization in their careers while at the same time facilitating the allocation of human resources in a manner that
responds to the Company’s needs.
③ Promote Succession Planning

Since fiscal year 2018, DIC has defined the principal management positions for the DIC Group and promoted succession planning, including
systematic, long-term efforts to foster talent and elevate the leaders of the future. Going forward, the Company will work to expand the positions andeligible employees included in its succession plan, as well as increase mobility and ensure it has the right people in the right places across the Group.
3

Improve Engagement and Organizational Cohesiveness,Q¿VFDO\HDU',&FRQGXFWHGDVXUYH\RIGRPHVWLF*URXSFRPSDQLHVDVSDUWRIWKH:65SURMHFW¶VHIIRUWVWRLPSURYHHQJDJHPHQWDQG
organizational cohesiveness. Based on the results, the Company explored a variety of responses and resolved to implement the formalization of asystem of one-on-one meetings and promotion of the taking on of business-related challenges as measures to improve engagement.
① Promote Communication and Use Empathy and Trust to Cultivate Solidarity

2QHLVVXHKLJKOLJKWHGE\WKH¿VFDO\HDUVXUYH\WRLPSURYHHQJDJHPHQWZDVDODFNRIFRPPXQLFDWLRQEHWZHHQVXSHULRUVDQGVXERUGLQDWHV,Q
UHVSRQVHWKH&RPSDQ\PDGHWKHGHFLVLRQWRLQWURGXFHDV\VWHPRIRQHRQRQHPHHWLQJVEHJLQQLQJLQ¿VFDO\HDUZLWKWKHDLPRISURPRWLQJ
communications between these two key groups. As well as the concrete moves necessary to establish a system of one-on-one meetings in the period
under review, DIC developed a management communications training program for employees at that level, as well as training for all employees in
KRZWRFRQGXFWRQHRQRQHPHHWLQJVIRUVXERUGLQDWHVDVDSUHUHTXLVLWHWRKLJKHURI¿FH,Q¿VFDO\HDUWKH&RPSDQ\SODQVWRIXUWKHULQYLJRUDWH
communication in-house by implementing a variety of new measures that go beyond enhancing that between managers and subordinates to focus onbuilding the capabilities of individual employees.
② Advance Innovation by Encouraging Enthusiasm about Taking on Challenges(DUO\LQ¿VFDO\HDU',&VXEVWDQWLDOO\UHYDPSHGLWVSHUVRQQHOV\VWHP7KLVLQFOXGHGUHSODFLQJLWVH[LVWLQJTXDOL¿FDWLRQ±EDVHGFRPSHQVDWLRQ
system for regular employees, which is predicated on experience, with a system that emphasizes exercise of abilities, among others. The Company’s
V\VWHPIRUHYDOXDWLQJSHUIRUPDQFHZDVDOVRUHYLVHGZLWKEXVLQHVVJRDOVFODUL¿HGDQGTXDQWL¿HGDQGWKHZHLJKWLQJRISHUIRUPDQFHDQGSURFHVVamended so that performance is given more emphasis at the time of evaluation. In addition, DIC has introduced a system whereby points are added
to the evaluations of both regular and management-level employees who have taken on challenges in their work.

DIC Report 2022

131

Human Resources Management

3. Framework Creation: Personnel System, Global Human Resources System and Work Style Reform
1 Promote Personnel System Reforms to Facilitate Autonomous, Multitrack Career Building

In January 2022, DIC revised its personnel system for both management-level and regular employees with the objective of enhancing organizational capabilities to support the advance of
TXDOLWDWLYHUHIRUPVLQH[LVWLQJFRUHEXVLQHVVHVDQGWKHVXFFHVVIXOFRPPHUFLDOL]DWLRQRIQHZEXVLQHVVHV,QUHYLVLQJWKHVHV\VWHPVWKH&RPSDQ\LGHQWL¿HGVHYHQNH\SROLFLHVIRULPSURYLQJ
organizational capabilities that are designed to improve added value and productivity, encourage a performance- and challenge-oriented focus, and support career building, in line with which it
GUDPDWLFDOO\UHYDPSHGLWVTXDOL¿FDWLRQEDVHGUHPXQHUDWLRQDQGHYDOXDWLRQV\VWHPV*RLQJIRUZDUG',&ZLOOFRQWLQXHZRUNLQJWRHQVXUHWKHSURSHUDGPLQLVWUDWLRQRIWKHVHV\VWHPVDVZHOODVWR
cultivate a corporate culture that further encourages employees to take on challenges and seeks to realize growth for the Company through the growth of its people.
① Qualification-Based Remuneration System: Encouraging Autonomous Career Building and Maximizing Performance● -REDQG3HUIRUPDQFH2ULHQWHG4XDOLÀFDWLRQ%DVHG5HPXQHUDWLRQ6\VWHP

7RHQVXUHHPSOR\HHVFOHDUO\XQGHUVWDQG',&¶VPLVVLRQDQGDUHDEOHWRIXOO\UHDOL]HWKHLUSRWHQWLDOWKH&RPSDQ\GH¿QHGUDQNDQGMREVSHFL¿FUROHVQHFHVVDU\DELOLWLHVDQG
SHUIRUPDQFHH[SHFWDWLRQVIRUPDQDJHPHQWOHYHODQGUHJXODUHPSOR\HHV$WWKHVDPHWLPH',&UHYLVHGLWVTXDOL¿FDWLRQEDVHGUHPXQHUDWLRQV\VWHPPDNLQJLWPRUHMRERULHQWHG
disclosing the roles and abilities expected of higher-ranking employees to make it possible for individual employees to map out their own career prospects. The new system also
SODFHVJUHDWHUHPSKDVLVRQSHUIRUPDQFHPDNLQJLWSRVVLEOHWRUHZDUGHPSOR\HHVZKRKDYHDFKLHYHGVLJQL¿FDQWUHVXOWVDWDQHDUOLHUVWDJHRIWKHLUFDUHHUWKDQHYHUEHIRUH
● Multitrack Career Building$VSDUWRIWKHUHYLVLRQRILWVTXDOL¿FDWLRQEDVHGUHPXQHUDWLRQV\VWHPWRIDFLOLWDWHPXOWLWUDFNFDUHHUEXLOGLQJ',&LQWURGXFHGDV\VWHPIRUIRVWHULQJVSHFLDOLVWVWKDWLVHPSOR\HHVZLWKhighly specialized or unique capabilities, to accompany its existing system which seeks to cultivate generalists. As well, the Company created a scheme that divides managementlevel employees, depending on their particular role/job, into either people managers or professionals, facilitating promotion in accordance with individual strengths and aptitudes.
New Qualification-Based Framework

People managers

Specialists
Management-level
employees(Evaluated based on
performance of role)

Professionals

Regular employees(Evaluated based on exercise of abilities)

Job classification

Production

Sales/
marketingTechnology/
R&D

Administration

Multiple career paths

Newbusinesses

Generalists② Evaluation System: Inspiring Employees to Achieve Results and Take on Challenges● Revision of Systems to Enhance the Performance-Oriented Nature of Evaluations

To further advance its emphasis on performance and evaluate the challenges taken on by employees, DIC partially revised its approach to setting targets and completing
evaluation sheets, creating a mechanism to facilitate a more quantitative assessment of performance, and reviewed conduct and process assessment procedures to encourage
more autonomous action. To further encourage employees to take on challenges, the Company will introduce a mechanism whereby points are added to the evaluations of
HPSOR\HHVZKRKDYHWDNHQRQFKDOOHQJHVWKDW\LHOGUHVXOWVRYHUWKHPHGLXPWRORQJWHUPDVZHOODVWKRVHZLWKVKRUWWHUPEHQH¿WV● Adoption of Career Goal Sheets

DIC recently adopted a career goal sheet for regular employees to plan and track their own career development. Using these sheets allows individuals to take stock of their own
careers at present and envision where they want to be in the future by setting goals for one year and three years ahead. This enables individual employees to design their own
careers and set appropriate goals with the assumption that their superiors will comment on career goal sheets and incorporate them into one-on-one meetings to assist employees
LQEXLOGLQJIXO¿OOLQJFDUHHUV&DUHHUJRDOVKHHWVZLOODOVREHXVHGLQSODQQLQJRIMREURWDWLRQVDQGWUDLQLQJSURJUDPV● Introduction of Meetings with Evaluators%HJLQQLQJLQ¿VFDO\HDUWKHLQGLYLGXDOVUHVSRQVLEOHIRUHYDOXDWLQJSHUIRUPDQFHZLOOKROGPHHWLQJVZLWKUHJXODUHPSOR\HHVZLWKWKHDLPRIHQVXULQJWKHLQWHJULW\RIHYDOXDWLRQV
and increasing the visibility of standards used to identify talented human resources. In addition to promoting the fair and impartial administration of the evaluation process in eachdepartment and division, these evaluator meetings will be used to support the planning of job rotations and training programs .

DIC Report 2022

132

Human Resources Management

2 Create a Global Human Resources System and a Standardized Group Framework

With the rapid expansion of its global operations, DIC recognizes that securing and fostering human resources around the world and ensuring theright people are in the right places across the DIC Group are essential to bolstering the value of Group human capital and effectively carrying out
management strategies, and has sought to integrate global human resources management. To this end, the Company has promoted the adoptionof harmonized personnel systems and management approaches. In January 2018, DIC and DIC Graphics unified qualification standards for theirapproximately 1,300 management-level—i.e., manager and above—employees, replacing traditional ability-based standards with role-based standards.
As a consequence, consistent duty- and role-based standards are now used for the majority of such employees in the Americas and Europe, the Asia–
3DFL¿FUHJLRQWKH35&DQG-DSDQ,QFRQWUDVWZLWKDIHZH[FHSWLRQVWKDWPDQDJH*URXSKXPDQUHVRXUFHVKXPDQUHVRXUFHVV\VWHPVKDYHQRWEHHQ
integrated. Addressing this issue—which DIC sees as critical to the achievement of global human resources management—will require considerable
effort going forward.
With the growth of ESG investment, DIC is also increasingly expected to provide accurate disclosure regarding human capital, as a key component of
WKHQRQ¿QDQFLDOLQIRUPDWLRQLQYHVWRUVGHPDQG7KLVIXUWKHUXQGHUVFRUHVWKHLPSRUWDQFHRIFHQWUDOL]LQJWKHPDQDJHPHQWRIKXPDQUHVRXUFHVLQIRUPDWLRQ
within the Group. Looking ahead, DIC will continue working to build a global human resources system and achieve a standardized Group framework.
3 Step Up Work Style Reforms to Enhance Job Satisfaction and Productivity① Implement Reforms to Improve Job Satisfaction

Diversity

The WSR 2020 Committee—originally launched in fiscal year 2020 as a limited-time project todevelop new work styles with the aim of boosting employee job satisfaction and productivity—has
since been transformed into an all executive–led committee in which all employees will participate.
The committee is charged with creating workplaces that embody The DIC Way by encouraging
enthusiasm about taking on various challenges, evaluating performance fairly and recognizing
personal value. To this end, the committee’s Job Satisfaction Improvement Reform Working
Group is spearheading the implementation of a variety of measures to improve workplaces fromfive perspectives, namely, “diversity,” “inner branding,” “communication,” “career support” and³VHQVHRIEHORQJLQJ´ )RUPRUHLQIRUPDWLRQRQWKH:65&RPPLWWHHSOHDVHVHHSDJH$0HVVDJHIURP([HFXWLYH2IÀFHU
Toshiro Ariga“Let’s forge a new path!”

Inner branding

Communication

Job Satisfaction
Enhancement
ReformCareersupportSense ofbelonging

One key inner branding initiative, dubbed “Dreams of the
Challengers,” involves a regular series of video messages
to employees from executives and other Group management
leaders about experiences that gave them true job satisfaction
and motivation. This has been well received as an initiative thatencourages employees to really think about and feel the uniquesatisfaction that comes with working for DIC.

② Increase Productivity through Workplace Reforms

In January 2018, DIC launched the DIC Telework System, which is available to all employees regardless of position of workplace. In response to the
HPHUJHQFHRI&29,'LQ¿VFDO\HDUWKH',&7HOHZRUN6\VWHP¶VOLPLWRIWZRGD\VSHUZHHNZDVDEROLVKHGDQGWHOHZRUNHQFRXUDJHGZKHUHYHU
possible to help prevent the spread of the virus. This remains in effect in recognition of the reality of COVID-19 as a permanent part of life.
:LWKDQH\HWROLIHLQDSRVWSDQGHPLFZRUOGLQ¿VFDO\HDUWKH2I¿FH5HIRUP:RUNLQJ*URXSZDVHVWDEOLVKHGXQGHUWKHXPEUHOODRIWKH:65
2020 Committee with the aim of realizing diverse work styles. To facilitate a shift to highly functional, rational new work styles, DIC embarked on various
RI¿FHUHIRUPVEHJLQQLQJZLWKLWVFRUSRUDWHKHDGTXDUWHUVLQ7RN\R7KHFRQFHSWEHKLQGWKHVHUHIRUPVZDVWRLQFRUSRUDWHDGYDQFHGRI¿FHGHVLJQHOHPHQWV
suitable for a facility serving as a corporate headquarters with the goal of facilitating highly
autonomous work styles that enable employees to choose the workplace that they find most
comfortable and which is best suited to their jobs. Moreover, by promoting efforts to go paperless,
ZKLFKLVHVVHQWLDOWRVXFKDÀH[LEOHZRUNHQYLURQPHQWWKH&RPSDQ\LVDOVRHQFRXUDJLQJVPDUW
business processes with the objective of improving one of the key intangibles that underpins
WKHMREVDWLVIDFWLRQIHOWE\HPSOR\HHV:LWKWKHGHEXWRILWVQHZFRUSRUDWHKHDGTXDUWHUVRI¿FHV
in fiscal year 2023, which will truly allow employees to choose the most appropriate location,functions and work environment, DIC also aims to further improve productivity.

DIC Report 2022

133

Human Resources Management

4. Diversity and Inclusion
Promoting Diversity, a Source of DIC’s Competitiveness, and Inclusion, Essential to Making Diversity a Competitive Advantage

The DIC Group actively pursues diversity by employing a broad spectrum of individuals without regard to such considerations as gender, nationality,
physical limitation or age. The Group works to foster a corporate culture that draws on its understanding and respect for diversity to produce creative
LGHDVDQGWRLQFRUSRUDWHWKHFRQFHSWRIGLYHUVLW\LQWRPDQDJHPHQW6SHFL¿FDOO\WKURXJKWKH:65&RPPLWWHHWKH*URXSLVSURPRWLQJPHDVXUHVto encourage communication and providing career support, thereby fostering a sense of unity through empathy and trust and creating workplaces
WKDWHQKDQFHMREVDWLVIDFWLRQIRUDOOHPSOR\HHV,Q¿VFDO\HDU',&FRQGXFWHGD*URXSZLGHVXUYH\WRHQKDQFHWKHYLVLELOLW\RIHQJDJHPHQWZLWKHPSOR\HHV$QDO\VLVRIWKHVXUYH\UHVXOWVHQDEOHGWKH&RPSDQ\WRJDXJHWKHVWDWXVRIHIIRUWVWRHQJDJHDQGUHÀHFWWKLVZKHQIRUPXODWLQJSODQVIRU
GLYHUVLW\LQLWLDWLYHVLQ¿VFDO\HDU6SHFL¿FDOO\ZKLOHWRGDWH',&KDVIRFXVHGRQEULQJLQJGLYHUVLW\WRWKHZRUNSODFHVXUYH\UHVXOWVUHLWHUDWHGWKHIDFWthat inclusion is essential to further instilling awareness of diversity, as well as to improving productivity and job satisfaction. Accordingly, initiatives going
forward will focus on advancing inclusion.
,QLWV',&9LVLRQORQJWHUPPDQDJHPHQWSODQ',&LGHQWL¿HVGLYHUVLW\DQGLQFOXVLRQDVDNH\FRPSRQHQWRILWVSHUVRQQHOPDQDJHPHQWSODWIRUPDQG
vows to nurture inclusion, recognizing this as essential to making diversity a competitive advantage. As part of its ESG management initiatives, DIC has set,
and discloses information regarding, quantitative targets not only for the diversity of executives and employees but also for key aspects of work–life balancesuch as childcare leave for male employees, which it recognizes as essential to the promotion of diversity overall. This includes establishing KPIs designed
WRPHDVXUHGLYHUVLW\DZDUHQHVV7KH&RPSDQ\¶V',&PHGLXPWHUPPDQDJHPHQWSODQZKLFKFRQFOXGHGLQ¿VFDO\HDULQFOXGHGDPELWLRXVWDUJHWV
for the percentage of the management team accounted for by women. While the absolute number of female managers has risen gradually, the percentage
of management positions occupied by female employees remains below the target level. Similarly,
the percentage of employees accounted for by foreign nationals remains short of the target level,
hindered by the spread of COVID-19. In formulating DIC Vision 2030, DIC has reset these targets
and will step up efforts to ensure their achievement by reinforcing awareness of diversity andinclusion through measures focused particularly on the later.
DIC

Achievements

1

Percentage of directors and Audit & Supervisory Board members
accounted for by women and/or foreign nationals

2

3HUFHQWDJHRIH[HFXWLYHRI¿FHUVDFFRXQWHGIRUE\ZRPHQ
and/or foreign nationals

3

Targets

15.4%

➡

13.6%

➡

Percentage of management positions occupied by women

6.3%

➡

8.0%

4

Percentage of new recruits accounted for by foreign
nationals

1.5%

➡

5.0%

5

Percentage of new recruits accounted for by women

31.0%

➡

Maintain at 30%

6Percentage of mid-career hires accounted for by women

9.9%

➡

January
2022

Fiscal year
2021

20.0%
January
2026

20.0%

30.0%
Fiscal year
2025

3.8%

➡

Percentage of employees using the Leave to Assist with
Parenting Program

72.6%

➡

90.0%

Percentage of total labor force accounted for byindividuals with disabilities

2.6%

➡

In excess of
the legally
mandated level

7

Percentage of male employees using the Childcare Leave Program

8

9

30.0%

VOICE The DIC Group and diversity
As of December 31, 2021, the DIC Group had a total global labor force of 22,474 employees, of which 3,345, or approximately 15%, areemployed by the parent company. With operations in 62 countries and territories, the Group’s labor force is highly diverse. With the aim oftapping into this diversity to power innovation, we promote a variety of exchanges among Group employees.
)HPDOHHPSOR\HHVDFFRXQWIRUDVLJQL¿FDQWO\VPDOOHUSHUFHQWDJHRI',&*URXS¶VODERUIRUFHWKDQPHQ,QPDQ\UHJLRQVLQFOXGLQJ-DSDQ
women represent only about 20% of Group employees. In terms of the percentage of management positions occupied by women, most regions
DUHDERYHEXW',&LQ-DSDQODJVVKDUSO\EHKLQG:KLOHZHKDYHVHWDWDUJHWRIIRUWKLVSDUWLFXODUPHWULFIRU¿VFDOZHZLOOGR
whatever we can to exceed this level.
Executive Oﬃcer; Head of ESG Unit, In Charge of Diversity, DIC Corporation

DIC Report 2022

134

Kuniko Torayama

Human Resources Management

1

Diversity Road Map

Road Map for Promoting Diversity
Diversity Initiatives● Fiscal years 2022–2023
Expand focus to encompass the many characteristics that make people unique・Transform mindsets and corporate culture by encouraging cross-cultural understanding,awareness of unconscious biases, etc.
・Support career advancement by dispatching employees to external training institutions
・Support a healthy work–life balance/promote work style reform through the WSR 2020 Committee● Fiscal years 2019–2021
Implement measures to promote career opportunities for foreign nationals
・Establish a new personnel system/conducive work environments
・Transform awareness of inclusion
・Create support systems● Fiscal years 2022–2023
Global deployment
・Organize diversity teams at
Group companies worldwide
・Promote diversity across theglobal DIC Group

2023

Putting the right people in theright places around the world

Efforts to manage diversity
and make work environments
conducive to innovation

In-house directors and executive officers
Sun Chemical● Fiscal years 2016–2018
Target the expansion of career opportunities for women
・Transform mindsets and corporate culture・Support career advancement
・Support a healthy work–life balance/
promote work style reform

Initiatives to create work environmentsthat enable employees to maximize
their capabilities

Japan
Maximizing Groupcapabilities

Measures to promote awareness and acceptance of diversity,
career opportunities for female employees,work style reform
measures and establishment of a framework2

Asia–Pacific region

Greater China
Male Japanese nationals

Male foreign nationals

Female Japanese nationals

Female foreign nationals

Hiring Foreign Nationals

With the objective of securing talented individuals with advanced specialized capabilities,
global perspectives and language capabilities, DIC actively promotes the hiring of international
students completing undergraduate or graduate studies at Japanese universities, as wellas Japanese and foreign nationals who are completing undergraduate studies at overseas
universities or have extensive specialized experience and expertise. At present, 43 foreign
nationals are employed in various capacities at DIC. To support the careers of employees who
are foreign nationals, DIC translates key in-house materials into English. The Company also
holds networking conferences to foster ties among non-Japanese employees and provide
information on the personnel system, employment conditions and efforts to improve workplaceenvironments. DIC will continue to regularly conduct surveys of and meet directly with these
HPSOR\HHVWRHQVXUHWKHLUYLHZVDQGDFWXDOZRUNSODFHFRQGLWLRQVDUHUHÀHFWHGLQPHDVXUHVimplemented. In fiscal year 2022, the Company plans to also step up efforts focused onenhancing awareness of the importance of inclusion.

Number of Foreign Nationals Currently Employed by DIC
Sales
positionsTechnical
positions

Department/
divisionadministration

Postedoverseas

Production

Total

1

27

1

7

7

43

DIC Report 2022

135

Nationalities of Foreign Employees(Full-Time, Part-Time and Temporary)

1
1
1
1
1

1
1

3
3
3

Breakdown by
Nationality

3

7

17

PRC
ROK
United States
Malaysia
Indonesia
ThailandTaiwanIndia
CanadaSpain
FranceGermany
New ZealandHuman Resources Management

VOICE I look forward to helping address social imperatives with a desire to grow personally and take on new challenges.
:KHQ,ZDVORRNLQJIRUHPSOR\PHQWDIWHUJUDGXDWLRQP\JRDOZDVWR¿QGDMRELQ¿QDQFHDQGDFFRXQWLQJDWDJOREDOFRPSDQ\,IRXQG',&DWWUDFWLYHEHFDXVHRILWV
H[WHQVLYHQHWZRUNRIRYHUVHDVEDVHVDQGLWVVLJQL¿FDQWJOREDOPDUNHWVKDUHLQDQXPEHURIVSHFL¿FDUHDVDQGGHFLGHGWRDFFHSWWKHLURIIHU6LQFHMRLQLQJWKH&RPSDQ\,KDYHJDLQHGGLYHUVHH[SHULHQFHDVZHOODVPHWFROOHDJXHVIURP-DSDQDQGRYHUVHDVZLWKYDULRXVEDFNJURXQGVWKDQNVWRDVVLJQPHQWVQRWRQO\LQWKHDUHDRI¿QDQFH
but also in the Marketing Management Unit and the New Business Development Headquarters. All of this has enabled me to learn and grow every day. Additionally,
YDULRXVPHDVXUHVLQUHFHQW\HDUVLQFOXGLQJWKHSURPRWLRQRIÀH[WLPHDQGWHOHZRUNWKHLQWURGXFWLRQRIDQLQKRXVHMREFKDOOHQJHV\VWHPDQGWKHFUHDWLRQRIQHWZRUNLQJ
opportunities for non-Japanese employees, have made for increasingly comfortable work environments for foreign nationals, as well as for female employees striving
to balance the demands of their career and childcare. The revision of the personnel system this year has also made it possible for young employees and employees
UHWXUQLQJIURPFKLOGFDUHOHDYHWRWDNHH[DPLQDWLRQVIRUSURPRWLRQHDUO\7KHVHHIIRUWVKDYHGH¿QLWHO\LPSURYHGHPSOR\HHV¶MREVDWLVIDFWLRQDQGLQWHQVL¿HGWKHLUGHVLUHWR
take on new challenges, as well as provided greater opportunities for them to exercise their abilities.
P-1 Project, Next-Generation Packaging Business Unit, New Business Development Headquarters, DIC Corporation

Initiatives to advance the hiring of foreignQDWLRQDOV ÀVFDO\HDUV²Xin Zhou• Establishment of dedicated help desks• Holding of periodic networking conferences to foster ties among non-Japanese employees• Translation of in-house materials into English• Support for Japanese-language training

TOPIC
Networking Conference for Non-Japanese Employees
In July and December 2021, DIC held a networking conference to foster ties among non-Japaneseemployees. Both of these conferences included a study session regarding the careers of employees
who are foreign nationals, during which presentations were given by three non-Japanese employees
DERXWWKHLURZQFDUHHUVDIWHUZKLFKWKHÀRRUZDVRSHQHGIRUDIUHHGLVFXVVLRQRQHIIRUWVWRHQFRXUDJH
cross-culture understanding at workplaces, the preparation of welcome packages designed to promote
inclusion, and the issue of unconscious biases. Feedback was largely positive, with participantscommenting that they had gained information that would be helpful in formulating their own career plans
and that the conferences were a good opportunity to deepen mutual understanding.
Because of COVID-19, both networking conferences were conducted online. However, recognizing theimportance of face-to-face contact for individuals who may be feeling alienated or lonely, DIC looks forward toreturning to a live format in the future to facilitate more effective communication.

3

Expanding Career Opportunities for Women

In line with its commitment to promoting diversity, DIC implements a variety of initiatives to expand career opportunities for female employees.
Having established a full-scale program to support employees in balancing the demands of a career and childcare in 2007, since fiscal year
2016 the Company has pushed ahead with measures to transform employee mindsets and its corporate culture, as well as to provide training
designed to encourage the drive and determination of female employees and broaden the range of jobs open to women. While efforts in fiscal
year 2021 were curbed as a result of the pandemic, DIC introduced various systems whereby it seeks to support diverse work styles, provided
training and information to support career advancement for female employees, and conducted joint training with companies in other sectors
with the objective of encouraging the building of personal contacts. In fiscal year 2022, the Company will implement measures to resolve
issues that have come to light through employee surveys as part of its commitment to actively expanding career opportunities for women.
① Broadening the Scope of Positions Available to Female Employees

6LQFH¿UVWDVVLJQLQJIRXUIHPDOHHPSOR\HHVWROLQHVKLIWMREVDWWKH&KLED3ODQWLQ',&KDV
gradually increased the number of female employees in production and utility control groups
DFURVV-DSDQ$WSUHVHQWWKHUHDUHIHPDOHHPSOR\HHV²LQFOXGLQJ¿YHSHUIRUPLQJVKLIWMREV²
on 14 production lines at seven sites in Japan. The Company has already made changes toimprove site working environments, including establishing break rooms and locker rooms for
women, and will continue taking similar steps with the goal of further broadening the scope of
positions available to female employees.

2008
4 at 1 site

2015
12 at 2 sites

2018
8 at 2 sites

2020
24 at 6 sites

2022
27 at 7 sites

Female employees on the corporate ladder at production sites: Management level: 1, assistant manager: 4,
team leader: 6 (As of January 1, 2022; parent company only)

DIC Report 2022

136

Site

Production Group Utility Control Group

Chiba Plant

92

Saitama Plant

7

0

Sakai Plant

3

0

Komaki Plant

1

0

Kashima Plant

1

1

Hokuriku Plant

0

2

Yokkaichi Plant

1

0

Total

22

5

Human Resources Management② Initiatives Aimed at Expanding Career Opportunities for WomenƔ Messages from the president
Transform corporate culture andthe mindset of management-level
employees

Ɣ Seminars to promote awarenessƔ Identical uniforms for male and female employeesƔ Training for female employees in administrative positions
Ɣ Awareness training for female employeesƔ Introduction of role models

Encourage the drive and determinationof female employeesƔ Seminars to promote awareness among female employeesƔ Women in DIC ForumƔ Leadership development program for female employees
Ɣ Joint leadership development program with companies in other sectors

2016 andbeyondBroaden the scope of positions
available to female employeesƔ Assignment of female employees to production, as well as to sales and other positions involving
work outside the Company
Ɣ Inclusion of female employees in the regular system of transfers, reassignments and job rotations
Ɣ Increased hiring of womenƔ Establishment of systems to support a healthy work–life balance

Establish systems to support a healthy
work–life balance and encourage theuse thereofƔ Publication of the Libra work–life balance support guide and introduction of e-learning program for
employees taking childcare leaveƔ Introduction of system allowing management-level employees to limit the locations to which they
will accept transfers
Ɣ Launch of telework
Ɣ([SDQVLRQRIHOLJLELOLW\IRUÀH[WLPHV\VWHPƔ Diversity seminars for executives and line supervisors

Create an executive-led support systemƔ Executive-led lunch seminars for female employeesƔ Executive roundtable discussions③ DIC Recognized as Nadeshiko Brand for Fiscal Year 2021, Earning Selection for the Fourth Consecutive YearIn recognition of its superb achievement in expanding career opportunities for women,',&ZDVVHOHFWHGDVD1DGHVKLNR%UDQGIRU¿VFDO\HDUWKHIRXUWKWLPHLWZDV
honored under this program, which is sponsored by Japan’s Ministry of Economy,
7UDGHDQG,QGXVWU\DQGWKH7RN\R6WRFN([FKDQJH 76( 7KH1DGHVKLNR%UDQG
initiative aims to introduce TSE-listed companies judged to be outstanding in termsof efforts to empower women in the workplace as attractive stocks for investors whoemphasize medium- to long-term improvements in corporate value with the objectiveof accelerating such efforts. The initiative assesses approximately 3,700 companies
across all TSE sections based on what they do to promote diversity-conscious
management and on their disclosure of related information, and selects Nadeshiko
EUDQGVLQHDFKLQGXVWU\FDWHJRU\,Q¿VFDO\HDUFRPSDQLHVZHUHVHOHFWHGIRU
this honor, including four from the chemicals sector.

DIC Report 2022

137

Human Resources Management④ Advancing the Employment of Individuals with Disabilities

Percentage of DIC’s Total Labor Force Accounted
for by Individuals with Disabilities

DIC is committed to creating inclusive work environments
WKDWKHOSLQGLYLGXDOVZLWKGLVDELOLWLHVHQMR\DFWLYHDQGIXO¿OOLQJ
careers. One initiative is an internship program, organizedin collaboration with special needs schools, that is designed
to transition into full-time employment. In fiscal year 2021,
both regular hiring in April as well as needs-based hiring at
individual sites met with success. As of December 31, 2021,
individuals with disabilities accounted for 2.6% of DIC’s totallabor force, noticeably above Japan’s legally mandated quotaof 2.3%.An additional three individual with disabilities are
expected to join DIC as part of the Company’s regular hiring in
April 2022. Going forward, DIC will continue working with the-DSDQHVHJRYHUQPHQW¶V+HOOR:RUNSXEOLFHPSOR\PHQWRI¿FHV
as well as with special needs schools and organizations that
promote the hiring of individuals with disabilities, and willtake further steps to enhance work environments to increase
workplace accessibility.

2.65%
2.70%

2.6%

2.58%

2.60%
Percentage of totallabor force accounted forby individuals with disabilities
as of December 31, 2021

2.41%

2.50%

2.6%

2.40%

2.30%
Percentage of total labor force accounted
for by individuals with disabilities

2.14%

2.20%

2.06%
2.10%

2.00%

(Legally mandated quota revised)

2.04%(Legally mandated quota revised)

1.90%
Japan’s legally
mandated quota

1.94%

1.80%

1.70%

14

15

16

17

18

19

20

21 (FY)VOICE I look forward to further broadening the scope of my work and challenging myself to take on new job responsibilities.
While I was in school, I took part in two on-site training sessions at DIC’s Sakai Plant and on April 1, 2019, I was hired to work in the Polymer Production
3ODQQLQJ6HFWLRQRIWKHSODQW¶V3URGXFWLRQ*URXS7RGRZHOODWZRUN\RXPXVW¿UVWEHKHDOWK\,QDGGLWLRQWRDQHDUO\WREHGHDUO\WRULVHOLIHVW\OH,HDWEUHDNIDVWHYHU\GD\LQWKHFRPSDQ\FDIHWHULDDQGZRUNFRQWLQXRXVO\WRLPSURYHP\SK\VLFDO¿WQHVV$VDUHVXOW,DPDOZD\VDEOHWRDSSURDFKP\ZRUNZLWKHQHUJ\$W¿UVWP\PDLQMREZDVFRQWDLQHUFOHDQLQJEXWQRZ,DVVLVWZLWKDYDULHW\RIWDVNVLQFOXGLQJUH¿OOLQJWDQNVDVZHOODVRUJDQL]LQJDQGVWRULQJ
documents. I am a stickler for adhering to Principles of Safe Conduct and for using the process of ho-ren-so IRUDOOPDWWHUVQRPDWWHUKRZVPDOOWRSUHYHQW
quality issues. I’m very lucky to be surrounded by grandfatherly individuals who have been reemployed after reaching retirement age who are always happy tohelp me with anything, as well as bosses and colleagues I can always approach for advice.
5HFHQWO\,KDYHEHJXQWUDLQLQJLQWKHSUHSDUDWLRQRIVWDQGDUGRSHUDWLQJSURFHGXUHV 623V RQDFRPSXWHUZKLFKZLOOHQDEOHPHWRGRGHVNZRUNDVZHOODV
on-site jobs. My future goals are to master the use of computers to prepare SOPs that are clear and easy to understand and that can be used by anyone. I also
KRSHWRH[SDQGWKHVFRSHRIP\WDQNUH¿OOLQJZRUN
Ho-ren-so, a mnemonic acronym in Japanese business culture, is an abbreviation of hokoku UHSRUW renraku LQIRUP DQGsodan FRQVXOW DEDVLFUXOHIRUVPRRWKZRUNSODFHFRPPXQLFDWLRQPolymer Production Planning Section, Sakai Plant Production Group 1, DIC Corporation

Seigo Hirao

TOPIC
DIC Gives Presentation at Employment Support Forum for Individuals with Disabilities
On July 29, 2021, DIC Estate Co., Ltd., gave a presentation as part of a webinar-format employment support forum for individuals with disabilities sponsored by Tokyoto
Business Service Co., Ltd., and Ricoh Japan Corp., that focused on leveraging case studies to develop a framework for hiring individuals with disabilities. DIC Estate,
which is based at DIC’s corporate headquarters in Tokyo, has earned high marks for creating a framework that enables employees with disabilities to enjoy active and
IXO¿OOLQJFDUHHUV7KHFRPSDQ\¶VSUHVHQWDWLRQWLWOHG³3HUVRQDO*URZWKDQG2UJDQL]DWLRQDO([SDQVLRQ'LYHUVLW\DQG,QFOXVLRQLQWKH(UDRI&29,'´RXWOLQHGWKHXVH
of video manuals to introduce businesses, as well as current efforts to promote business expansion and foster human resources, to the audience of 65 company andschool representatives. In addition to an animated Q&A session, audience members asked many other questions in a survey they were requested to complete after thepresentation, underscoring a high level of interest in DIC Estate’s efforts.

⑤ Reemployment after Retirement and Support for Retirement Planning',&KDVGHSOR\HGDV\VWHPWKDWIDFLOLWDWHVWKHUHHPSOR\PHQWXQWLODJHRILQGLYLGXDOVUHDFKLQJUHWLUHPHQWDJH  DQGZLVKLQJWRUHPDLQZLWKWKH
organization. With available options including full-time work, short-time work and work sharing, this system enables reemployed individuals to maximize
their experience and make full use of their accumulated technological capabilities and specialized expertise, thereby contributing to sustainable growth for
the DIC Group and the training of subsequent generations.
DIC also offers classes for employees within a year of retirement that helps them prepare for life after their careers. These classes provide assistancewith retirement planning and education regarding the national pension system, as well as offer retirement lifestyle simulations.

DIC Report 2022

138

Human Resources Management

Number of Reemployed Individuals
Fiscal year 2017

Fiscal year 2018

Fiscal year 2019

Fiscal year 2020

Fiscal year 2021

69
55
55
79.7％

89
74
70
78.7％

96
81
77
80.2％

92
80
79
85.9％

103
87
84
81.6％

1XPEHURIUHWLUHHV $Individuals seeking
reemployment
Number of individuals
reemployed B
Reemployment rate B / A

5. Management of Governance and Compliance Risks
1 Reinforcing Human Resources Governance

7RVWUHQJWKHQLWVKXPDQUHVRXUFHVJRYHUQDQFH',&¶VFRUSRUDWHKHDGTXDUWHUVLVLQYROYHGLQPDNLQJGHFLVLRQVGH¿QLQJSULQFLSDOPDQDJHPHQWSRVLWLRQVfor the DIC Group, as well as for clarifying authority for nominations and dismissals, evaluating performance and determining remuneration. The GroupGLYLGHVLWVRSHUDWLRQVLQWRIRXUUHJLRQV²-DSDQ*UHDWHU&KLQDWKH$VLD±3DFL¿FUHJLRQDQGWKH$PHULFDVDQG(XURSH7KHSDUHQWFRPSDQ\ZKLFKLV
directly responsible for Group operations in Japan, works with regional headquarters in each of the other three regions to reinforce human resources
governance across the entire Group.
Human Resources Governance for Principal DIC Group Management Positions
Authority for nominations and dismissals
From the perspective of ensuring the sustainability of
its operations, corporate headquarters is involved indecisions regarding nomination and dismissal.

Rules governing authority/succession committee
・DIC’s rules governing authority stipulate that authority
regarding appointments and dismissals lies withcorporate headquarters.
・The promotion process is monitored through thesuccession committee to determine succession.

Authority for performance evaluations

Authority for determining remuneration

From the perspective of ensuring the DIC Group meets the target
of its management plan, corporate headquarters is involved indecisions regarding target setting and performance evaluations.

Corporate headquarters is involved in decisions
regarding remuneration to ensure the adequacy andfairness of compensation, as well as the transparencyof the decision-making process.

Evaluation review committee

Regional remuneration committees

The establishment and administration of evaluation review
conferences facilitates monitoring of efforts to standardize personnel
evaluation systems, and to ensure the appropriateness and fairnessof target setting and performance evaluation.

The establishment and administration of regional
remuneration committees facilitates monitoring of theappropriateness and fairness of remuneration.

2 Respect for Human Rights

7KH',&*URXSDFWLYHO\VXSSRUWVJOREDOFRGHVJRYHUQLQJKXPDQULJKWV 1LQOLQHZLWKZKLFKLQ¿VFDO\HDULWIRUPXODWHGWKH',&*URXSHuman Rights Policy and began promoting related initiatives. The DIC Group Code of Business Conduct, which outlines standards
that DIC Group employees are expected to observe, lays down provisions prohibiting human rights violations and requiring respect fordiversity, two philosophies that are the foundation of the Group’s corporate activities. DIC Group employees are obliged to understandand provide written pledges to abide by the code.
,Q¿VFDO\HDU',&EHFDPHDVLJQDWRU\WRWKH81*&SOHGJLQJLWVVXSSRUWIRUWKH7HQ3ULQFLSOHVRIWKH81*&ZKLFKLQFOXGHVWHQHWVUHJDUGLQJ
human rights and labor. The Company continues to implement related initiatives in all areas of its corporate activities to reinforce respect for humanrights in the human resources management practices of all Group companies and prevent the occurrence of violations.
,QUHVSRQVHWRWKH0RGHUQ6ODYHU\$FW 2',&LVUHLQIRUFLQJWUDLQLQJUHJDUGLQJKXPDQULJKWVGXHGLOLJHQFH 3 cognizant of the issue of human
WUDI¿FNLQJDQGWKHULVNVLWSRVHVWRFRPSDQLHVZLWKRSHUDWLRQVLQWKH8QLWHG.LQJGRP7KH&RPSDQ\DOVRSURPRWHVDZDUHQHVVDPRQJ',&*URXS
company executives and enhances corporate headquarters’ inspection and monitoring structure as part of an ongoing effort to bolster Groupmanagement capabilities.
 7KH,QWHUQDWLRQDO%LOORI+XPDQ5LJKWVFRPSULVLQJWKH8QLYHUVDO'HFODUDWLRQRI+XPDQ5LJKWVDQGWKH,QWHUQDWLRQDO&RYHQDQWVRQ+XPDQ5LJKWV WKH,QWHUQDWLRQDO&RYHQDQWRQ(FRQRPLF6RFLDODQG&XOWXUDO5LJKWVDQGWKH,QWHUQDWLRQDO&RYHQDQWRQ&LYLODQG3ROLWLFDO5LJKWV WKH,QWHUQDWLRQDO/DERXU2UJDQL]DWLRQ ,/2 ¶V'HFODUDWLRQRQ)XQGDPHQWDO3ULQFLSOHVRI5LJKWVDW:RUNWKH81¶V*XLGLQJ3ULQFLSOHVRQ%XVLQHVVDQG+XPDQ5LJKWVDQGWKH7HQ3ULQFLSOHVRIWKH81*& 8QGHUWKH0RGHUQ6ODYHU\$FWDQ$FWRIWKH3DUOLDPHQWRIWKH8QLWHG.LQJGRPFRPSDQLHVZLWKRSHUDWLRQVLQWKH8QLWHG.LQJGRPPXVWUHSRUWRQWKHH[LVWHQFHQRQH[LVWHQFHRIVODYHU\KXPDQWUDI¿FNLQJRURWKHUFULWLFDOYLRODWLRQVRIKXPDQULJKWVLQWKHLUVXSSO\FKDLQVUHODWHGULVNVDQGVWHSVWKH\DUHWDNLQJWRDGGUHVVVXFKSUDFWLFHV³0RGHUQVODYHU\´HQFRPSDVVHVGHEWERQGDJHIRUFHGODERUDQGVHUYLWXGHKXPDQWUDI¿FNLQJDQGH[SORLWDWLRQ LQFOXGLQJVH[XDO
H[SORLWDWLRQDQGIRUFHGRUJDQGRQDWLRQ  Human rights due diligence is an ongoing risk management process that a company needs to follow in order to identify, prevent, mitigate and account for how it addresses its adverse human rights impacts.

DIC Report 2022

139

Human Resources Management① The DIC Group Human Rights Policy
As a member of society that recognizes the importance of respect for human rights and respects the basic human rights of all stakeholders, including its customers, suppliers andemployees, the DIC Group has formulated a human rights policy. Based on this policy, DIC works to increase the human rights awareness of its executives and employees and to
conduct its business activities in a manner that shows respect for human rights.

１．Positioning
This policy, which is in accordance with global human rights codes, articulates DIC’s fundamental stance on respect for human rights.
２．Scope of application
This policy applies to all executives and employees of the DIC Group. The Company shall also encourage its business partners and suppliers toadhere to this policy and cooperate with them to advance respect for human rights.
３．Responsibility to respect human rights
7KH&RPSDQ\VKDOOVWULYHWRIXO¿OOLWVUHVSRQVLELOLW\WRUHVSHFWKXPDQULJKWVE\HQVXULQJWKDWLWVEXVLQHVVDFWLYLWLHVGRQRWUHVXOWLQYLRODWLRQVRIWKHKXPDQrights of stakeholders, as well as by preventing human rights abuses in the course of its business. In the event that its business partners or suppliers
FDXVHDGYHUVHKXPDQULJKWVLPSDFWVWKURXJKWKHLUEXVLQHVVHVSURGXFWVDQGVHUYLFHVWKH&RPSDQ\²ZKLOHQRWGLUHFWO\FRPSOLFLW²VKDOOXVHLWVLQÀXHQFH
to encourage the responsible parties to cease the practices responsible for such impacts.
４．Human rights due diligence
7RIXO¿OOLWVUHVSRQVLELOLW\LQUHJDUGWRUHVSHFWIRUKXPDQULJKWVWKH&RPSDQ\KDVFUHDWHGDKXPDQULJKWVGXHGLOLJHQFHV\VWHPZKLFKLWVKDOO
employ on an ongoing basis to identify and address human rights risks.
５．Corrective/remedial actions
Should the Company cause adverse human rights impacts or should it become evident that it has been complicit in causing such impacts, theCompany shall take appropriate corrective/remedial actions in response.
６．Compliance with applicable laws
The Company shall comply with applicable laws in the countries and territories in which it operates. The Company shall also respect international
human rights principles and work actively to promote these principles.
７．Disclosure and education/training
The Company shall periodically report publicly on the progress of initiatives implemented in line with this policy. To ensure the effectiveness of thispolicy, the Company shall also provide appropriate training to its executives and employees.
８．Dialogue and discussion
The Company shall engage with stakeholders regarding initiatives implemented in line with this policy by creating opportunities for dialogue andpromoting discussion in good faith.
９．Identifying principal human rights challenges
The Company has separately identified principal human rights challenges. In line with this policy, the Company shall use due diligence as
DSSURSULDWH5HFRJQL]LQJWKLVDVDQRQJRLQJSURFHVVWKH&RPSDQ\VKDOODOVRFRQWLQXHWRUHYLVHDQGDPHQGWKHVHFKDOOHQJHVWRUHÀHFWVRFLDO
change, business trends and other factors.

② Initiatives in Fiscal Year 2021

$WRWDORI',&*URXSFRPSDQLHVLQ-DSDQDQGRYHUVHDVLPSOHPHQWYROXQWDU\KXPDQULJKWVDQGODERUSUDFWLFHVLQVSHFWLRQV,Q¿VFDO\HDULQLWLDWLYHVIRFXVHGRQSURPRWLQJDZDUHQHVVRIWKH',&*URXS+XPDQ5LJKWV3ROLF\DFURVVWKH*URXS+DYLQJDQDO\]HGDQGYHUL¿HGWKHUHVXOWVRIYROXQWDU\LQVSHFWLRQVFRQGXFWHGWRGDWHWKH*URXSLPSOHPHQWHG
supplementary surveys in priority areas while at the same time conducting surveys and providing guidance as necessary regarding making improvements and promoting efforts to raise
DZDUHQHVV7KH',&*URXSDOVRFRQGXFWHGKXPDQULJKWVGXHGLOLJHQFHDWWKUHH*URXSFRPSDQLHVLQ0DOD\VLD7KLVFRQ¿UPHGWKHDEVHQFHRILVVXHVDQGHQDEOHGWKH*URXSWRSURYLGH
guidance on points to consider in order to curb the manifestation of risks.
③ Principal Human Rights Challenges Facing the DIC Group%DVHGRQNH\JOREDOVWDQGDUGVUHJDUGLQJKXPDQULJKWVWKH',&*URXSKDVLGHQWL¿HGWKHIROORZLQJDVWKHSULQFLSDOKXPDQULJKWVFKDOOHQJHVLWIDFHVDQGSURPRWHVDSSURSULDWHKXPDQULJKWV
diligence in accordance with its human rights policy. The Group will review these challenges on a regular basis, taking into consideration factors such as social change and business trends.
（1）Eliminate discrimination
The DIC Group prohibits all types of discrimination, harassment and other practices that undermine the dignity of any individual. Potential targets of suchdiscrimination include Group employees, women, children, indigenous peoples, migrant workers, business partners and communities.
（2）Prevent child labor and forced labor
7KH',&*URXSSURKLELWVWKHXVHRIFKLOGODERUIRUFHGODERUVODYHODERUDQGODERUUHVXOWLQJIURPDQ\IRUPRIKXPDQWUDI¿FNLQJ
（3）Respect basic labor rights
The DIC Group respects basic labor rights, including freedom of association and employees’ rights to organize and to engage in collective bargaining.
（4）$GGUHVVWKHLVVXHRIFRQÁLFWPLQHUDOV
7KH',&*URXSSURKLELWVWKHXVHRIFRQÀLFWPLQHUDOV6KRXOGDQ\UDZPDWHULDOVSXUFKDVHGIURPWKLUGSDUW\VXSSOLHUVEHIRXQGWRFRQWDLQFRQÀLFWPLQHUDOVthe Group will respond by, among others, immediately terminating the procurement thereof.
（5）Respect the concept of equal pay for equal work
In principle, the DIC Group provides equal pay for equal work to both male and female employees.

DIC Report 2022

140

Human Resources Management④ The DIC Group’s Human Rights Due Diligence System

The DIC Group has created a human rights due diligence system, which it employs on an ongoing basis.

1）Commit

2）Identify andevaluate impacts3）Implement corrective/remedial
measures, provide training andgauge effectiveness

Demonstrate the Group’s
human rights policy and views

Identify and evaluate human rights risks in theGroup’s business and across its supply chain

Implement measures andgauge effectiveness・Formulate a human rights policy.
・Introduce section on human rights into the
DIC Group Sustainable Procurement Guidelines.
・Reinforce awareness of the policy.

・Encourage voluntary human rights inspections ・Implement corrective/remedial measures.
at Group companies.
・Plan and provide human rights training.
・Identify and evaluate the impact of human・Gauge the eﬀectiveness of measures.
rights risks.

4）Disclose information

Report periodically onhuman rights initiatives
・Provide information via the DIC global website.
・Include information in the DIC Report.
・Publicize using conventional mass media.

⑤ Due Diligence Initiatives to Address Principal Human Rights Challenges① Promotion of supply chain due diligence by the Purchasing Department
To ensure that its extended supply chain functions in a socially responsible manner, the Company established the DIC Group
Universal Purchasing Policy in 2008, based on which it also formulated purchasing management regulations and the DIC Group
Sustainable Procurement Guidebook, version 3 of which was published in February 2020. Using the policy and guidelines, theCompany promotes sustainable procurement, as well as advances respect for human rights and takes comprehensive steps toaddress human rights risks such as conflict minerals, across its supply chain.

② Initiatives to help realize a sound, viable mica mining industry in India
Mica, which has a broad range of industrial applications, including coatings, cosmetics and electronics materials and cutting fluids, ismined around the world. The use of child labor in the mining of mica in India, a leading producer, has been identified as a critical issue
for users. DIC Group company Sun Chemical, which oversees the Group’s printing inks, resins and pigments for cosmetics businesses
in the Americas and Europe, is a founding member of the Responsible Mica Initiative, a unique global collaboration established in
February 2017 to eradicate child labor in the mica mines of India. Through participation in this initiative, materials producers andcosmetics companies around the world are working to contribute to the realization of a sound, viable mica mining industry in India.

③ Implementation of human rights due diligence in Indonesia and Malaysia',&KDVFRQGXFWHGKXPDQULJKWVGXHGLOLJHQFHLQ,QGRQHVLD ILVFDO\HDU DQG0DOD\VLD ILVFDO\HDU 7KLVSURFHVVUHYHDOHG
no serious violations. Guidance was provided to on points to consider in order to curb the manifestation of risks.

④ Establishment of whistle-blowing hotlines and corrective measures by the compliance team
The Company has created a channel for Group employees to report to whistle-blowing hotlines. In fiscal year 2021, the Company
received 18 reports of power harassment, discrimination and other issues through this system. However, internal investigations
revealed no serious violations. Appropriate corrective measures and other initiatives were implemented.

⑤ Contact procedures
The Company has established procedures for suppliers, customers, local communities and other stakeholders to report issues bytelephone or through its global website and strives to respond swiftly when comments and complaints are received. No complaints
pertaining to human rights issues were received in fiscal year 2021.

3

Building Trust with the DIC Employees’ Union

DIC’s management and representatives of its employees’ union meet regularly with the goal of ensuring healthy industrial relations based on
mutual trust. In addition, through labor–management councils and casual management conferences, DIC shares management informationand its vision for the future with union representatives and encourages the frank exchange of opinions. A total of 71.7% of parent company
HPSOR\HHVEHORQJWRWKH',&(PSOR\HHV¶8QLRQ RIHOLJLEOHHPSOR\HHV 

DIC Report 2022

141

Human Resources Management

:RUN²/LIH%DODQFH6DIHW\DQG+HDOWK
1 :RUN²/LIH%DODQFH
DIC views a healthy work–life balance as essential to both self-realization and sustainable corporate growth. Accordingly, from the standpoint of corporate
KHDOWKPDQDJHPHQW WKH&RPSDQ\FRQWLQXHVWRH[SDQGV\VWHPVLQWHQGHGWRIDFLOLWDWHVXFKDEDODQFH,QUHVSRQVHWRIDOOLQJELUWKUDWHVWKH-DSDQHVH
government has launched a drive to promote work style reform, with the goal of helping individuals balance the demands of their careers and childcare or
nursing care, increasing productivity and ensuring effective corporate health management. Since before such developments, DIC has promoted initiatives
PHDQWWRHQDEOHDOOHPSOR\HHVWRDFKLHYHERWKDFWLYHDQGVDWLVI\LQJFDUHHUVDQGDIXO¿OOLQJOLIHRXWVLGHRIZRUNLQOLQHZLWKLWVEHOLHIWKDWSRVLWLYHZRUNSODFHV
lead to higher productivity.
$QDSSURDFKWRHPSOR\HHKHDOWKPDQDJHPHQWWKDWHPSKDVL]HVDFRUSRUDWHPDQDJHPHQWSHUVSHFWLYHDQGWKHLPSOHPHQWDWLRQRIVWUDWHJLFPHDVXUHV① Enhancing Programs that Help Employees Balance the Demands of Work and Home.XUXPLQ0DUN&HUWLÀFDWLRQ

In 1986, DIC blazed a trail for chemicals manufacturers in Japan by implementing
a childcare leave program. Since establishing a program to support employees
in balancing the demands of a career and childcare in 2007, the Company has
continued promoting measures that make it easier for employees to make use
thereof. In 2008, DIC acquired the Kurumin Mark, which recognizes companies
that promote initiatives designed to assist employees in raising children. The
Company has also deployed a system that gives regular employees the option
to accept or refuse transfers requiring relocation and, since 2012, a system thatallows management-level employees to limit the locations to which they will accept
transfers, making it easier for individuals who are unable to accept transfersthat involve relocation because of childbirth, childcare, nursing care or other
responsibilities.

In 2008, DIC was accordedt he Kur umin M ar k, w hic hrecognizes companies that
actively promote initiatives
designed to assist with childrearing, by Japan’s Ministry of
Health, Labour and Welfare.

② Promoting Measures to Retain Employees with Nursing Care Responsibilities,Q-DSDQRQHRIWKHVRFLDOUDPL¿FDWLRQVRIIDOOLQJELUWKUDWHVDQGOHQJWKHQLQJOLIHVSDQVLVDQLQFUHDVHLQWKHQXPEHU
RISHRSOHUHTXLULQJQXUVLQJFDUHDVDUHVXOWRIZKLFKPRUHSHRSOH¿QGWKHPVHOYHVKDYLQJWROHDYHWKHLUMREVWRWDNH
care of family members.
Steps taken by the government to help address these issues include revising the Child Care and Family Care Law
LQWRPDNHLWHDVLHUIRULQGLYLGXDOVWRWDNHOHDYHRUWLPHRIIDQGLQFUHDVLQJEHQH¿WVIRUWHPSRUDU\DEVHQFHVIURP
work. To encourage use and promote knowledge of its related leave programs, in June 2017 DIC began distributing
the Childcare and Nursing Care Handbook. DIC has also revised the rules of these programs, including making it
possible to break up nursing care leave, as well as to extend the period over which they may shorten their workday
from one year to three years, thereby making them easier for employees to use.
③ 6LJQLÀFDQWO\([SDQGLQJWKH)OH[WLPH6\VWHP

7RIDFLOLWDWHÀH[LEOHZRUNVW\OHVLQ¿VFDO\HDU',&UHVROYHGWRVLJQL¿FDQWO\H[SDQGLWVÀH[WLPHV\VWHPDQGLQ$SULOPDGHWKH
V\VWHPDSSOLFDEOHWRDOODUHDVRIRSHUDWLRQVRWKHUWKDQSURGXFWLRQÀRRUV7KHV\VWHPPDNHVLWSRVVLEOHIRUHPSOR\HHVWRGHWHUPLQHWKH
WLPHDWZKLFKWKH\HQGWKHLUZRUNLQJGD\WRWKHH[WHQWWKDWLWGRHVQRWKLQGHUEXVLQHVVHI¿FLHQF\DVZHOODVWRVLPXOWDQHRXVO\PDNHXVHRI
telework, with the goal of promoting the independent execution of duties and enhancing self-management capabilities.
④ Introducing a Leave to Accompany Spouse Overseas System

To ensure its ability to secure and retain talented human resources and enhance employees’ work–life balance, in January 2019 DIC
introduced a system allowing employees to take leave to accompany spouses on overseas work assignments. Programs such as this help
employees balance their careers and private lives without having to leave their jobs.
⑤ Establishing a System to Help Employees Balance Medical Treatment and WorkIn January 2020, DIC introduced a system to support employees undergoing medical treatment who wish to continue working. To
guarantee this system functions effectively, the Company formulated guidelines to ensure employees making use of this system receive
the ongoing support necessary to balance medical treatment and work through job-related accommodations and considerations.

DIC Report 2022

142

Human Resources Management⑥ Programs that Help Employees Balance the Demands of Work and Home
The maximum length of leave is until the child reaches the age of 2 years and 6 months, which is one year longer thanthe legally mandated leave period.

Childcare Leave ProgramOutpatient care leave: Employees can take leave for outpatient care, including regular medical examinations andhealth guidance.

Paid leave programs for pregnancy
and childcare

Special maternity protection leave: Female employees take up to 10 days of special leave during pregnancy or theyear after giving birth to protect the health of both mother and child.
/HDYHWR$VVLVWZLWK3DUHQWLQJ3URJUDP0DOHHPSOR\HHVFDQWDNH¿YHFRQVHFXWLYHGD\VRISDLGOHDYHGXULQJWKH
eight weeks following their child’s birth to assist with parenting.
Pediatric nursing care leave: Employees can take leave to provide nursing care for a child until the end of the child’s
third year of elementary school, which is beyond what is mandated by law. This includes XSWR¿YHGD\VRISDLGOHDYHSHU¿VFDO\HDU

Childcare While Working Program

Employees can shorten their workday by up to three hours until the end of a child’s third year of elementary school.
Employees can also stagger their working hours to accommodate childcare schedules.

Economic support system

This system enables employees on unpaid childcare leave to borrow a portion of their bonuses in advance to pay for,among others, fertility treatment or infant care facility fees.

5HWXUQWRSUHYLRXV RUHTXLYDOHQW SRVLWLRQ

Employees returning from childcare leave must be allowed to return to their previous position or to a position equivalent thereto.

Information sharing to promote
program participation

DIC’s views on support for work and childcare balance, as well as a guide to its various available systems and how to makeuse of them, are posted on the Company’s website and intranet.

Nursing care leave system

Employees can take such leave for up to one year, exceeding the statutory maximum of 93 days. As of January 2018, employees
may also break up leave into a maximum of six units.

Nursing Care While Working Program

Employees not wishing to take leave while providing nursing care can shorten their workday by up to two hours for a
maximum period of three years. As of January 2018, employees may also request to be excused from doing overtime
without restriction.

Leave to accompany spouse overseas

Employees can take leave in the form of a temporary overseas assignment to accompany a spouse who is scheduled to
be abroad for more than one year. The period of the leave must be more than one year, with a maximum length of three
years. Employees may make use of this system once during their careers.

Relocation limitation system

Management-level employees may limit the locations to which they will accept transfers that involve relocating becauseof childbirth, childcare, nursing care or other responsibilities.

System to help employees balance
medical treatment and work

Employees undergoing medical treatment who wish to keep working can access necessary support in the form of job-related
accommodations and considerations.

Half-day and hourly annual paid
leave system

Employees may take annual paid leave in half-day units. They may also take up to five days of annual paid leavein one-hour units.

Saved paid leave system

Expiring annual paid leave can be saved for up to 30 days and used for a variety of purposes, including injuly or illness,
nursing care for a family member, care for a sick child and fertility treatment⑦ Use of the Childcare Leave and Leave to Assist with Parenting Programs

Owing to the introduction of various programs to help employees in balancing the demands of work and home and the creation of an environment thatencourages employees to take advantage of such thereof, the percentage of DIC employees who return to work after making use of the Childcare Leave
Program is currently 100%. In addition, the number of individuals using the Leave to Assist with Parenting Program, which enables male employees totake time off in the weeks after the birth of a child to assist their partner, has risen.
Thanks to efforts to enhance these systems, the average years of employment for female employees has increased and continues to exceed the
DYHUDJHIRUPDOHHPSOR\HHV%HJLQQLQJLQ¿VFDO\HDUWKH&RPSDQ\ZLOOHQFRXUDJHPDOHHPSOR\HHVWRPRUHDFWLYHO\PDNHXVHRIWKH&KLOGFDUH
Leave and Leave to Assist with Parenting programs.
Fiscal year 2016 Fiscal year 2017 Fiscal year 2018 Fiscal year 2019 Fiscal year 2020 Fiscal year 2021
Number of employees using
the Childcare Leave Program
Number of employees using
the Leave to Assist with Parenting Program

35
(0)
62

21
(4)
81

35
(0)
77

28
(4)
86

22
(3)
84

25
(4)
77

Note: Figures in parentheses are the number of male employees included in the total number of employees using the Childcare Leave Program.
DIC Report 2022

143

Human Resources Management⑧ Average Years of Employment (Including Individuals Seconded to Group Companies)
Average years of employment in fiscal year 2021
Male employees(Years)Female employees Overall

19.8 years 21.1 years 20.1 years

25
20
15
10
5
0

12

13

14

Male employees

15

16

17

18

19

21 (FY)

20

Female employees⑨ Reducing Extreme Overwork and Encouraging Employees to Take Annual Paid Leave

DIC has deployed an electronic management system that tracks employee working hours based on sign in/sign out data extracted from IC cards. To
SUHYHQWH[WUHPHRYHUZRUNLIDQHPSOR\HHDSSHDUVOLNHO\WRH[FHHGWKHRYHUWLPHOLPLW LQFOXGLQJZHHNHQGV DJUHHGXSRQE\ODERUDQGPDQDJHPHQWRULIWKHLUPRQWKO\RYHUWLPHKDVH[FHHGHGKRXUVWKHLUVXSHUYLVRUDQGWKHVHQLRUH[HFXWLYHLQFKDUJHDUHDXWRPDWLFDOO\QRWL¿HG7KHVXSHUYLVRULVUHTXLUHG
WRVXEPLWDUHSRUWRXWOLQLQJWKHHPSOR\HH¶VZRUNUHVSRQVLELOLWLHVDQGIDFWRUVEHKLQGWKHH[FHVVLYHKRXUVDQGSUHVHQWLQJVSHFL¿FPHDVXUHVWRDPHOLRUDWH
the situation, which is shared with the DIC Employees’ Union. This process is designed to curb/reduce excessively long working hours.
The Company has also instituted a mandatory “no overtime day” every Wednesday and on payday, which in Japan is once a month at month-end, in a
ELGWRHQFRXUDJHHI¿FLHQWZRUNSUDFWLFHVDQGIXUWKHUEROVWHUSURGXFWLYLW\ 6LWHVFDQRSWWRVZLWFKWRDGLIIHUHQWGD\DVDSSURSULDWH ,QDGGLWLRQHPSOR\HHV
DUHHQFRXUDJHGWRWDNHDQQXDOSDLGOHDYHZLWKVLWHVUHFRPPHQGLQJDSSURSULDWHWLPLQJIRUOHDYHDQGKDYLQJHPSOR\HHVSODQGDWHVIRUVXFKOHDYH
⑩ Average Monthly Overtime Hours Worked and Annual Paid Leave Taken

Average monthly overtime hours
worked per employee
Average annual paid leave granted
Average annual paid leave used
Usage rate for annual paid leave

2

Fiscal year 2016

Fiscal year 2017

Fiscal year 2018

Fiscal year 2019

Fiscal year 2020

Fiscal year 2021

12.3 hours
19.1 days
12.0 days
62.8％

12.2 hours
18.8 days
12.0 days
63.8％

12.0 hours
18.6 days
12.5 days
67.2％

10.8 hours
18.7 days
13.3 days
70.9％

10.1 hours
18.7 days
11.8 days
63.1％

12.3 hours
18.9 days
12.1 days
64.0％

Employee Safety① Measures to Prevent the Spread of COVID-19%HWZHHQ)HEUXDU\ZKHQ&29,'¿UVWHPHUJHGDQG'HFHPEHUDWRWDORILQWHUQDOQRWL¿FDWLRQVZHUHVHQWXQGHUWKH
heading “Measures to Prevent the Spread of COVID-19.” Efforts ranged from promoting internal initiatives to prevent infection to detailed
instructions regarding individual employee behavior.
② Pandemic Countermeasures Implemented by the Corporate Headquarters’ Employee Cafeteria

The employee cafeteria at corporate headquarters in Tokyo took a variety of steps to prevent the spread of COVID-19 and ensure peace of mind for users.
Examples of Employee Cafeteria Countermeasures● Installed acrylic partitions, in line with public health standards, to separate patrons● Provided sanitizer at tables and encouraged the cooperation of patrons in disinfecting before use● Promoted staggered use time to prevent crowding● Insisted patrons wash and sanitize their hands before entering the cafeteria● Temporarily closed the self-serve deli corner● Attached antiviral tape to high-touch points such as buttons on tea dispensers

DIC Report 2022

144

Human Resources Management③ Corporate COVID-19 Vaccination Clinics

Between June and August 2021, vaccination clinics for DIC Group employees were conducted atcorporate headquarters in Tokyo, as well as at several other sites, with the aim of protecting employees
from infection and helping curb the spread of the virus and prevent those who do become infected from
suffering severe illness. Approximately 2,800 employees chose to take advantage of these clinics for both
WKHLU¿UVWDQGVHFRQGYDFFLQDWLRQV

3

Corporate Health Management① Corporate Health Management Initiatives

In line with its Health Management Declaration,
the DIC Group works actively to support thephysical and mental health of its employees, aswell as to create a work environment conducive
to job satisfaction. Looking ahead, the Group willcontinue to promote imaginative and original healthmanagement measures, recognizing that the healthof its employees is essential to the realization ofsustainable growth.

Health Management Declaration
The DIC Group recognizes that the achievement of its mission to create enhanced
value and utilize innovation to introduce socially responsible and sustainable products
depends on the creation of working environments conducive to the physical and mental
health of the employees responsible for the implementation of related initiatives.
The DIC Group declares that it will work as one to maintain or improve the health of its
employees, as well as to create a work environment conducive to job satisfaction.
Representative Director, President and CEO
DIC Corporation
Kaoru Ino

② Framework for Promoting Health Management

The DIC Group in Japan promotes health management through a framework that is based on collaboration with the DIC Health Insurance Society andunder the supervision of the president and CEO. Going forward, the Group will step up efforts to work with related organizations and promote effective
initiatives across the DIC Group.

Framework

Director, Health management
Representative Director, President and CEO

Manager, Health management
Director in charge, General Affairs and HR Dept.

Supervisor, Health management promotion

Healthcare professionals
Industrial physicians
Infirmary and other medical staff

Health management promotion team

General manager, General Affairs and HR Dept.
ReportJudgment

ProposalApproval

Cooperation

Site general affairs departments
Cooperation

DIC Employees’ Union

Health management promotion organization
Internal and external counselors

General Affairs and HR Dept.

Site health and safety committees
DIC welfare fundCollaboration

DIC Health Insurance Society

DIC Report 2022

145

Human Resources Management③ Key Health Management Initiatives
Category

Employeehealth

No.

Initiative

Details1

Improve percentage of employees participating inannual physicals

Annual physicals help medical staff grasp changes in physical condition and provide appropriate guidance.
7DUJHW)LVFDO\HDU¿VFDO\HDU

2

Follow-up after annual employee physicals

Based on the results of annual physicals, industrial physicians and nurses extend guidance on healthPDLQWHQDQFHHQFRXUDJHIXUWKHUH[DPLQDWLRQLQWKHHYHQWRIDGYHUVH¿QGLQJVDQGSURYLGHGLUHFWLRQVRQ
the prevention of lifestyle-related diseases.

3

Physician-led interviews with extremely overworked employees

Efforts are ongoing to prevent the onset of brain and heart disorders by implementing more stringent
management of employee working hours than is called for in standards governing long working hours set
forth in Japan’s Industrial Safety and Health Act.

4

Collaboration with company responsible for operating employee
cafeterias to improve employee eating habits

Active efforts are made to support employee health by offering healthy menu choices and providing
dietary education, including information on improving eating habits.

5

Efforts to prevent lifestyle-related diseases in collaboration with
the DIC Health Insurance Society

Based on the results of annual employee physicals, the DIC Health Insurance Society and DIC
collaborate to make recommendations to those requiring guidance.

6

Staging of various events

Various events are staged to promote health maintenance and improvement, including sports
tournaments, vascular age measurement events, walks and family site tours.

7

Antismoking initiatives

Antismoking initiatives seek to prevent exposure to passive smoke, promote awareness of the risksof smoking and support employee efforts to quit smoking with the goal of reducing the percentage of
employees who are smokers.
7DUJHWIRUSHUFHQWDJHRIHPSOR\HHVZKRDUHVPRNHUV )LVFDO\HDU¿VFDO\HDU

8

Education aimed at the prevention and early detection ofmental health issues,QGXVWULDOSK\VLFLDQVDFWLYHO\FRQGXFWUDQNVSHFL¿FDQGVHOIFDUHWUDLQLQJGHVLJQHGWRSUHYHQWDQGVZLIWO\detect mental health issues.

9

Systematic stress checks and the provision of follow-up
guidance

Stress checks are conducted even at Group companies not legally required to do so. Following checks,
individuals discovered to have a high level of stress meet with doctors and where appropriate participate
in training provided by industrial physicians specializing in mental health, among others.
7DUJHWIRUSHUFHQWDJHRIHPSOR\HHVXQGHUJRLQJVWUHVVFKHFNV )LVFDO\HDU¿VFDO\HDU7DUJHWIRUSHUFHQWDJHRIHPSOR\HHVZLWKDKLJKOHYHORIVWUHVV )LVFDO\HDU¿VFDO\HDU

10

Promotion of use of annual paid leave

Efforts are ongoing to create an environment that makes it easy for employees to take paid leave,
and include recommending appropriate timing for leave and having employees plan leave dates.

11

Reduction of overtime hours through the institution of a “noovertime day”

$PDQGDWRU\³QRRYHUWLPHGD\´KDVEHHQLQVWLWXWHGHYHU\:HGQHVGD\DQGRQSD\GD\ RQFH
PRQWKO\DWPRQWKHQGLQ-DSDQ ZLWKWKHREMHFWLYHRIFXUELQJRYHUWLPHDQGHQFRXUDJLQJ
physical and mental reset.

12Efforts to encourage use of childcare and nursing care leavesystems

Efforts are ongoing to acquire the next-generation Kurumin Mark and to publish and distributea handbook on balancing work and nursing care responsibilities, among others.

13

Establishment of a system to help employees balance medical
treatment and work

A system has been established to support employees undergoing medical treatment who
wish to continue working, along with guidelines for use of the system. Efforts to promote thesystem’s use are ongoing.

14

Initiatives to prevent the transmission of infectious diseases

Efforts are ongoing to prevent the transmission of infectious diseases, including the implementation
RIPDVVLQÀXHQ]DYDFFLQDWLRQFOLQLFVDQGWKHSURYLVLRQRIDUHODWHGHOHDUQLQJSURJUDP

15

Dissemination of health-related information through healthfocused newsletter

1XUVLQJVWDIIIURP',&¶V+HDOWKFDUH2I¿FHDQGLQ¿UPDU\LVVXHKHDOWKUHODWHGQHZVOHWWHUVDQGZRUNWRGLVVHPLQDWHKHDOWKPDQDJHPHQWLQIRUPDWLRQWKDWUHÀHFWVWKHXQLTXHFKDUDFWHULVWLFVRIHDFKVLWH

16

Establishment of help desks to provide follow-up services

Permanent internal and external help desks have been set up that enable employees to report orseek advice on mental health, harassment or other issues and actively follow up on reported matters.

Mental health

Establishmentof systems

Other④ Mental Health Management Initiatives

DIC takes steps to create environments in which employees feel physically and mentally supported and works to ensure that its labor management
practices comply with relevant laws. The Company places a high priority on caring for psychological and emotional well-being and has established
a comprehensive mental health program, highlights of which include engaging an in-house occupational psychologist, promoting initiatives aimed
at warding off mental health problems and extending support to ensure a smooth return to work for employees taking leave. In particular, access tocounseling provided by an occupational psychologist has had a considerably positive impact in terms of ensuring employees get treatment and are able
to return to work as quickly as possible.
DIC has also offered voluntary stress checks since fiscal year 2013, well before the passage of related legislation in Japan in fiscal year 2016,
and promotes active, systematic efforts with the goal of preventing mental health disorders. Of note, the Company conducts seminars led by an inhouse physician for employees who have scored above a certain level in stress checks and offers counseling meant to help employees improve
communications with supervisors, colleagues and family members and at enhancing stress tolerance through self-care. In fiscal year 2021, DIC
organized online self-care training on the theme of stress management and sleep seminars in collaboration with a sports gym. DIC will pursue thecontinued systematic promotion of these initiatives going forward.

DIC Report 2022

146

Human Resources Management

Mental Health Initiatives• Guidance from an in-house occupational psychologist• Internal and external help desks
/LQHFDUHWUDLQLQJ IRUVXSHUYLVRUV• Mental health self-checks as part of training for new employees• Distribution of the Kokoro no Kenko ³3V\FKRORJLFDO+HDOWK´ VHOIFKHFNKDQGERRNWRDOOHPSOR\HHV• Flexible process to support employees returning to work after taking leave
/LQHFDUHWUDLQLQJ7UDLQLQJIRUVXSHUYLVRUVWRKHOSWKHPUHFRJQL]HSURPSWO\ZKHQDQHPSOR\HHLVXQZHOODQGUHVSRQG
appropriately by, for example, recommending guidance or counseling or making workplace improvements.

Kokoro no Kenko
self-check handbook

TOPIC',&(DUQV:KLWH&HUWLÀFDWLRQIRUWKH)LIWK&RQVHFXWLYH<HDU',&HDUQHGFHUWL¿FDWLRQLQWKHODUJHHQWHUSULVHFDWHJRU\RIWKH+HDOWK 3URGXFWLYLW\2XWVWDQGLQJ(QWLWLHV5HFRJQLWLRQ3URJUDP GXEEHGWKH³:KLWH´ ZKLFKLVRUJDQL]HGE\WKH0LQLVWU\RI(FRQRP\7UDGHDQG,QGXVWU\DQG1LSSRQ.HQNR.DLJL 17KLVLVWKH¿IWKFRQVHFXWLYH\HDUWKH&RPSDQ\KDVEHHQFHUWL¿HGXQGHUWKLV
program, which seeks to shine a spotlight on outstanding enterprises working to advance health and productivity management, creating an environment that ensures
VXFKHQWHUSULVHVJDLQHQKDQFHGSXEOLFUHFRJQLWLRQ²LHIURPHPSOR\HHVMREVHHNHUVUHODWHGFRPSDQLHVDQG¿QDQFLDOLQVWLWXWLRQV²DVRUJDQL]DWLRQVWKDWDSSURDFK
employee health and productivity from a management perspective and promote strategic initiatives.
In addition to looking at whether enterprises stipulate health management in their corporate mission and disclose pertinent information, the White 500 programassesses performance based on grasp of employee health–related issues and consideration of actions, establishment of a foundation for the practical implementation
RIKHDOWKDQGSURGXFWLYLW\PDQDJHPHQWPHDVXUHVDQGZRUNHQJDJHPHQW 2 promotion of efforts to help ensure the physical and mental health of employees, quality of
initiatives, and evaluation and improvement.
DIC will continue to implement measures designed to promote physical and mental health as part of its commitment to creating work environments that empower
employees to reach their full potential.
1LSSRQ.HQNR.DLJL ³-DSDQ+HDOWK&RXQFLO´ LVDQRUJDQL]DWLRQWKDWOLDLVHVZLWKSULYDWHFRPSDQLHVZLWKWKHIXOOEDFNLQJRIWKHJRYHUQPHQWWRSXWHIIHFWLYHPHDVXUHVLQSODFHWRSURORQJWKHKHDOWK\OLIHH[SHFWDQF\RIFLWL]HQVDQGWRHQVXUHVRXQG
medical services in Japan.
$FRQFHSWXVHGWRPHDVXUHHPSOR\HHV¶PHQWDOKHDOWKZRUNHQJDJHPHQWLVGHVFULEHGDVDSRVLWLYHIXO¿OOLQJZRUNUHODWHGVWDWHRIPLQGWKDWLVFKDUDFWHUL]HGE\YLJRUGHGLFDWLRQDQGDEVRUSWLRQ³9LJRU´LVWDNLQJSULGHDQGH[SHULHQFLQJDVHQVHRI
satisfaction in one’s work; “dedication” is feeling strongly involved in and focused on one’s work; and “absorption” is being actively engrossed in one’s work.

⑤ Initiatives to Support Employee Health

DIC analyzes the results of employees’ annual physicals and provides assistance to employees
for whom lifestyle improvements have been recommended by providing introductions to hospitals
and clinics, and individual guidance on lifestyle improvements. With the aim of promoting healthyeating, the employee cafeteria at DIC corporate headquarters in Tokyo has introduced a new
KHDOWK\FDIHWHULDPHQXGXEEHG³',&,URGRUL&DUH´ ³',&&RORUIXO&DUH´ ',&¶V*HQHUDO$IIDLUV
and HR Department, the Healthcare Office and the company responsible for the operation of
the cafeteria collaborated to develop this menu based on the health needs of employees. The
Company also devised innovative ways of presentation, including producing distinctive signage that
HQFRXUDJHVUHFRJQLWLRQDQGQDPHVWKDWFOHDUO\FRPPXQLFDWHWKHKHDOWKEHQH¿WVRIPHQXVHOHFWLRQVVXFKDVUHGXFHGFDORULHVRUORZFKROHVWHURO,QDGGLWLRQ',&,URGRUL&DUHPDNHVXVHRIIDPLOLDU
meal components such as kobachi VPDOOERZO VLGHGLVKHVWUDQVIRUPHGLQWRDQXWULHQWSDFNHG
“Supplement Bowl,” to promote greater awareness of food’s role in improving overall health.
DIC will continue implementing measures designed to help ensure the physical and mental healthof its employees as part of its commitment to creating a work environment in which all employees
can fully exercise their abilities.
A healthy cafeteria menu selection

DIC Report 2022

147

Sustainable Procurement

SDGs Goal 12

Promoting Socially Responsible Procurement Across the Supply Chain
Goals and Achievements of Major Initiatives Evaluations are based on self-evaluations of current progress. Key: ★★★ = Excellent; ★★ = Satisfactory; ★ = Still needs work
Objective of initiatives

Promote sustainableprocurement.

Goals for fiscal year 2021

Achievements in fiscal year 2021

Reduce procurement-related risks byclosely inspecting the impact of thetightening of regulations andconsolidation of chemical industrial
parks in the PRC and India on
manufacturers of key raw materials, aswell as the status of such manufacturers’
sustainability efforts.

A written sustainability survey was conductedof approximately 50 manufacturers of key raw
materials in the PRC and India and confirmed
the status of efforts by such manufacturers in
the PRC to acquire new permits and licenses
from relevant administrative authorities toac c ommodate inc reasingly str ingent
regulations.

Use the revised DIC Group Sustainable
Procurement Guidebook (DIC) and the
EcoVadis* tool (Sun Chemical) to conduct
assessments for suppliers and ensure agrasp of their overall ESG initiatives.

Assessments using the revised DIC Group
Sustainable Procurement Guidebook wereconducted by DIC at approximately 150
suppliers, which together account for morethan 70% of its procurement spending.

Evaluation

Goals for fiscal year 2022★★

Promote initiatives aimed at expanding
the use of sustainable raw materials overthe medium to long term (calculate thecarbon footprint of raw materials andcontinue to search for bioderived andrecycled raw materials).

★★

Continue conducting assessments tobetter ascertain the sustainability of DIC
and Sun Chemical suppliers and ensure agrasp of their overall ESG initiatives.

Assessments by Sun Chemical using the
EcoVadis tool were completed for suppliers
that together represent approximately 90% of
its procurement spending.

Basic Approach to Sustainable Procurement
Having recognized the increasing importance of addressing global issues related to human rights, climate change and water risk, among others, as social
imperatives, the DIC Group promotes socially responsible procurement practices. To ensure its extended supply chain functions in a socially responsible
manner, in 2008 the Group established the DIC Group Universal Purchasing Policy, based on which it later formulated purchasing management regulations
DQGFODUL¿HGLVVXHVLWH[SHFWVVXSSOLHUVWRDGGUHVV8VLQJWKHDIC Group Sustainable Procurement Guidebook, revised in February 2020, the Group promotes
sustainable procurement across its supply chain by ensuring that all suppliers implement improvements and initiatives as necessary. Group companies in-DSDQWKH$PHULFDVDQG(XURSH*UHDWHU&KLQDDQGWKH$VLD±3DFL¿FUHJLRQFROODERUDWHWRHQVXUHVXVWDLQDEOHSURFXUHPHQWRQDJOREDOEDVLVFor more information, please visit WEB https://www.dic-global.com/en/csr/stakeholder/partner.html

The DIC Group Universal Purchasing Policy
Guided by an action policy established to realize the DIC Group’s basic sustainable procurement
principles, the Purchasing Department adheres to the following guidelines in dealing with suppliers:

The DIC Group Sustainable
Procurement Guidelines❷ An appropriate purchasing process and the building of relationships of mutual trust❶ Compliance with laws/social norms❷ Human rights and work environments❸ Safety and health❹ Consideration for the environment❺ Information security❻ Appropriate quality and safety and technological

The DIC Group, as a good partner for suppliers, will build long-lasting, mutually trusted relationships with
VXSSOLHUVDQGZRUNWRJHWKHUZLWKWKHPIRUPXWXDOKDUPRQ\DQGEHQH¿WZKLOHFRPSO\LQJZLWKUHOHYDQWregulations/social norms, domestic and overseas, and pursuing adequate quality and prices.

❼ 6WDEOHVXSSOLHVDQGÀH[LEOHUHVSRQVHVWRFKDQJH❽ Promotion of sustainability and sustainable❶ Fair and transparent business practices

The DIC Group will implement fair and open purchasing activities with suppliers based on global
perspectives, without the constraints of conventional commercial customs.

❸ Satisfying environmental/safety needs

The DIC Group will take responsibility as an exemplary corporate citizen for environmental affairs,
occupational safety, human health and product quality, always take into account changes in society andimplement environment-friendly purchasing activities.
❹ Challenge the creation of new value

In order to respond at a high level to a new value sought by society, the DIC Group will proactively
challenge the creation of such value together with suppliers, with whom the same goal can be shared,
and strive to grow together with them in a sustainable manner.

DIC Report 2022

148

improvements

procurement initiatives

Sustainable Procurement| Encouraging Sustainable Procurement
Based on the DIC Group Universal Purchasing Policy and incorporating requirements contained in guidebooks put out by external organizations, including the Japan Electronics andInformation Technology Association (JEITA), in 2010 DIC formulated the DIC Group CSR Procurement Guidelines. To address increasingly urgent and evolving expectations regarding
WKHVXVWDLQDELOLW\RIFRPSDQLHV¶SURFXUHPHQWSUDFWLFHVWKHVHJXLGHOLQHVZHUHUHFHQWO\PRGL¿HGDQGUHQDPHGWKH',&*URXS6XVWDLQDEOH3URFXUHPHQW*XLGHOLQHV1RWDEOHUHYLVLRQVZHUH
PDGHWRVHFWLRQVRQWKHIRUPXODWLRQRIDKXPDQULJKWVSROLF\WKHPDQDJHPHQWRIFKHPLFDOVXEVWDQFHVPLQLPL]DWLRQRILPSDFWRQWKHHQYLURQPHQWWKHHI¿FLHQWXVHRIZDWHUUHVRXUFHVDQG
energy, the establishment of medium-term targets for reducing greenhouse gas emissions, and the formulation of BCPs to guarantee stable supplies. With the aim of compelling suppliers
to observe these guidelines, as well as to comply with social imperatives outlined by the Responsible Business Alliance (RBA) and the TCFD, the Group has also prepared the DIC Group
Sustainable Procurement Guidebook, version 3 of which was published in February 2020.
The Group uses the guidebook to conduct assessments and on-site inquiries, as well as to promote awareness among suppliers worldwide and encourage improvements. A separate
mechanism exists for taking the results of sustainability assessments into account when selecting new suppliers. The Group has also formulated the DIC Group Green Procurement
Guidelines, in line with which it obliges suppliers to ensure the stringent management of chemical substances. In addition, the Group entreats suppliers to develop and release products thathave less of an impact on the environment, promote green procurement and lower the environmental impact of the materials they procure—and the packaging and transport, productionand engineering thereof—by reducing resources and energy used, decreasing the weight and expanding the useful lifespan of, and reducing CO2 emissions from, such materials.

| The DIC Group Green Procurement Guidelines
In line with the DIC Group Universal Purchasing Policy, DIC formulated the DIC Group Green Procurement Guidelines, which prohibit the procurement ofmaterials containing hazardous substances in seven categories.*1 The guidelines mandate the submission of a DIC Raw Materials Survey, an SDS anda chemSHERPA,*2 as well as a DIC Group Green Procurement Guidelines Survey, when purchasing raw materials, thereby creating a system for eliminating
VXEVWDQFHVRIFRQFHUQ6XEPLVVLRQRID&RQÀLFW0LQHUDOV6XUYH\LVDOVRUHTXLUHG
*1  6XEVWDQFHVWKHSURGXFWLRQRIZKLFKLVSURKLELWHGDVRXWOLQHGLQ$UWLFOHRI-DSDQ¶V,QGXVWULDO6DIHW\DQG+HDOWK$FW  6XEVWDQFHVGHVLJQDWHGDVFODVVVSHFL¿HGFKHPLFDOVXEVWDQFHV
in Japan’s Act on the Evaluation of Chemical Substances and Regulation of Their Manufacture, etc.; (3) Substances designated for monitoring under Japan’s Act on the Evaluation of Chemical
Substances and Regulation of Their Manufacture, etc.; (4) Chemical substances the production of which is already prohibited, as detailed in Japan’s Act on the Protection of the Ozone Layer
7KURXJKWKH&RQWURORI6SHFL¿HG6XEVWDQFHVDQG2WKHU0HDVXUHV R]RQHGHSOHWLQJVXEVWDQFHVOLVWHGLQWKH0RQWUHDO3URWRFRO   6SHFL¿HGSDUWLFXODWHVGHQRWHGLQ-DSDQ¶V$LU3ROOXWLRQ&RQWURO$FW  6SHFL¿HGSRLVRQRXVVXEVWDQFHVLQGLFDWHGLQ-DSDQ¶V3RLVRQRXVDQG'HOHWHULRXV6XEVWDQFHV&RQWURO$FWDQG  6SHFL¿HGVXEVWDQFHVGHWDLOHGLQWKH6WRFNKROP&RQYHQWLRQRQ
Persistent Organic Pollutants.
*2 FKHP6+(53$LVDVFKHPHGHVLJQHGWRIDFLOLWDWHWKHDFFXUDWHDQGHI¿FLHQWVKDULQJRILQIRUPDWLRQRQFKHPLFDOVXEVWDQFHVLQSURGXFWVDFURVVWKHHQWLUHVXSSO\FKDLQ',&EHJDQXVLQJFKHP6+(53$LQODWH¿VFDO\HDU

| Advance Assessment of New Suppliers,QDGGLWLRQWRUHTXLULQJVXEPLVVLRQRIWKHIRXUPDQGDWRU\GRFXPHQWVOLVWHGDERYHDVZHOODVD&RQÀLFW0LQHUDOV5HSRUWLQJ7HPSODWH &057 DQGDQ([WHQGHG
Minerals Reporting Template (EMRT), DIC conducts comprehensive advance assessments of major new suppliers, including from the perspective of sustainability.

| Supplier Self-Evaluations
In accordance with the DIC Group Sustainable Procurement Guidebook, the DIC Group asks suppliers to evaluate themselves by completing aquestionnaire, which it uses to ascertain the status of suppliers’ sustainable procurement practices. The questionnaire further segments the Group’s eightprocurement guidelines into 45 issues, including consideration for human rights and work environments, acquisition of certification under ISO 14001,
implementation of green procurement and promotion of sustainable procurement to secondary suppliers.
DIC Group Sustainable Procurement Guidebook (Version 3, published in February 2020) (English)
WEB

https://www.dic-global.com/pdf/about/purchase/dic_sc_csr_en.pdf| Analyzing the Results of Questionnaires
Between June 2020 and February 2022, the DIC Group
used version 3 of the DIC Group Sustainable Procurement
Guidebook, which was published in February 2020, to
conduct assessments for 348 suppliers, accounting for
more than 70% of its procurement spending. In addition
to analyzing and assessing questionnaire responses, theGroup provided feedback and where necessary requested
corrective measures, using written comments or remoteinterviews because of COVID-19.

Assessment Distribution Chart (348 Suppliers)

Number of suppliers

112

1,000
900
800
700
600

47

500
400

36

300

Note: Between November 2013 and December 2019, assessments were conductedusing version 1 and then version 2 of this guidebook for a cumulative total of
764 companies.

Cumulative Number ofSuppliers Assessed(June 2020–February 2022)

117

1,200
1,100

16 18

200

Feedback sheet

100
0

2

Below 2.0

2.0‒2.5 2.6‒2.9 3.0‒3.5 3.6‒3.9 4.0‒4.5 4.6‒5.0

ScoresEquivalent to more than 70% of
procurement spending

Low

Note: Based on DIC’s analysis of questionnaire responses,
88% of suppliers assessed to date scored 3.0 or
higher on the Group’s 5.0-point scale.

348
DIC Report 2022

149

High

Sustainable Procurement¦ Conducting On-Site Inquiries
From fiscal year 2011 through fiscal year 2019, the DIC Group provided feedback through on-site inquiries or written comments to 102 suppliers.
In an on-site inquiry, the Group and the supplier confirm the self-evaluation provided via the questionnaire and discuss corrective measures. Other
efforts include introducing examples of DIC Group ESG initiatives to assist the efforts of suppliers to promote sustainability. In fiscal years 2020
and 2021, on-site inquiries were not conducted due to COVID-19. Separately, the Group did conduct an independent survey of suppliers of key raw
materials in the PRC and India regarding the tightening of local environmental regulations.

¦ Global Procurement Initiatives
In fiscal year 2021, the DIC Group continued working to disseminate and fortify understanding among certain Group companies using version 3of the DIC Group Sustainable Procurement Guidebook, published in February 2020, and to conduct assessments of key suppliers. Sun Chemical
continued to use the EcoVadis tool, completing assessments for suppliers that represent approximately 90% of its procurement spending. Goingforward, DIC and Sun Chemical will continue to exchange views on addressing evolving social imperatives related to sustainable procurement atmeetings of the Sustainability Committee, among others.
On another front, Group company Siam Chemical Industry achieved a silver medal in the EcoVadis assessment for the third consecutive year.

¦ Ensuring the Sustainable Procurement and Use of Raw Materials
The DIC Group promotes the sustainable procurement and use of raw materials from a medium- to long-term perspective. This includes giving
consideration to a wide range of factors, including climate change and resource conservation, as well as calculating the carbon footprint of raw
materials—including associated Scope 3 emissions—and continuing to search for bioderived and recycled raw materials. Looking ahead, the Groupwill expand the global application of its sustainable raw materials procurement initiatives.

¦ Responsible Procurement of Minerals
The DIC Group has formulated a Basic Approach to the Responsible Procurement of Minerals, recognizing the importance of procuring these criticalresources in a responsible manner and engaging with suppliers to address this challenge across its supply chain.

Basic Approach to the Responsible Procurement of Minerals
To avoid any complicity in the funding of armed groups, or in child labor or other human rights abuses, in areas of conflict—including the
Democratic Republic of Congo and its neighboring countries—or high-risk areas,* the DIC Group surveys suppliers of minerals such as tin,tantalum, tungsten and gold to ensure the responsible procurement thereof across its entire supply chain. Should it discover the use of minerals
mined in conditions of conflict or as a result of human rights abuses, the Group will take immediate corrective actions.
* The EU Conflict Minerals Regulation defines “high-risk areas” as areas in a state of armed conflict, fragile post-conflict areas or areas with weak or nonexistent governance and security,
such as failed states, all of which are characterized by widespread and systematic violations of international law, including human rights abuses.

In line with this approach, the DIC Group employs the current version of the Responsible Minerals Initiative (RMI)’s CMRT, for tin, tantalum, tungsten
and gold, across its supply chain. As of February 28, 2022, responses had been secured from suppliers accounting for more than 90% of suchmaterials procured by the DIC Group in Japan. Assessments using the CMRT are ongoing. The Group also uses the RMI’s EMRT for cobalt andmica, to evaluate suppliers of these materials. Going forward, the Group will take additional steps to respond to evolving social imperatives, including
further expanding the scope of supplier surveys.

¦ Promoting Awareness In-House
The DIC Group provides regular training for in-house purchasing personnel, including at point of hire, when transferred and prior to meeting withcustomers. The Group has also posted the revised version of the DIC Group Sustainable Procurement Guidebook on the DIC intranet to promoteawareness and organizes related presentations at overseas Group companies.

DIC Report 2022

150

Sustainable Procurement

Comment Sojitz and DIC are working together to promote sustainable development.
Sojitz Corporation has supplied DIC with raw materials for resins for some time. We have established Sustainability
Challenge, a long-term sustainability vision that will guide our efforts until 2050, and declared our commitment tocontributing to the realization of a decarbonized society and expanding step-by-step initiatives to respect humanrights, including within our supply chains.
Improving respect for human rights in one’s own supply chains requires the understanding and cooperation of ourbusiness partners, so DIC, which has been working to do just that since 2008, is an encouraging presence. Whilean increasing number of companies have established sustainable procurement guidebooks and are conducting
supply chain inquiries on an ongoing basis, not many go so far as to provide feedback to their business partners.
With social imperatives that impact companies’ entire supply chain expected to continue gathering steam, we lookforward to collaborating further with DIC to create shared value and promote sustainable development.
Specialty Chemicals Department, Sect. 3, Chemicals Division, Sojitz Corporation

Di LiuDIC Report 2022

151

SDGs Goals 8, 9 and 11

New Value Creation
Cultivating Next-Generation Businesses

Goals and Achievements of Major Initiatives (YDOXDWLRQVDUHEDVHGRQVHOIHYDOXDWLRQVRIFXUUHQWSURJUHVV.H\★★★ ([FHOOHQW★★ 6DWLVIDFWRU\★ 6WLOOQHHGVZRUN■ Goals of Major Initiatives (Fiscal Year 2022)■ Goals and Achievements of Major Initiatives (Fiscal Year 2021)

Objective of initiatives

Propose solutions-oriented
businesses that respond tosocial imperatives.

Goals for fiscal year 2021

Achievements in fiscal year 2021

Leverage core competencies toincrease the probability of successfor next-generation businesses
from the perspective of both socialand economic value, and help
establish new social ecosystems
that will contribute to theachievement of a circular economy.

New products were launched that willcontribute to the resolution of social
imperatives—including 3D printing
materials, soft wireless sensors, newtypes of CFRP and heat-dissipating
fillers — were launched and preparations
for the practical implementation of aplastic packaging recycling projectproceeded.

Participate in exhibitions in Japan andoverseas and leverage digitaltechnologies to identify latentcustomer issues and propose related
solutions-oriented businesses.

Participation in exhibitions such as theSustainable Material Expo (SUSMA)
and marketing automation facilitatedthe cultivation of diverse channels forcommunicating with customers andled to the discovery or deepened
understanding of latent issues.

Evaluation

Objective of initiatives

Designate areas at theintersection of ESG-related
issues/social changes and DIC’s
core competencies as priorities
and establish next-generation
businesses that contribute to theresolution of social imperatives.

★★★

Create businesses with thepotential to become new pillars.

★★★

Goals for fiscal year 2022

Promote open innovation(through CVC, collaboration withacademic institutions and M&As)
and strategic investments withthe aim of enhancing the DIC
Group’s technology platformand driving the creation of new
businesses and products.

| Creating New Value
7KH',&*URXS¶VUHGH¿QHGYLVLRQVWDWHPHQWLQWURGXFHGLQLWVQHZORQJWHUPPDQDJHPHQWSODQH[SUHVVHVWKH&RPSDQ\¶VJRDOVRIGHOLYHULQJJUHDWHUYDOXHWKURXJKEURDGHULQQRYDWLRQLPSURYLQJWKHKXPDQFRQGLWLRQDQGSURPRWLQJVWDELOLW\IRUDEULJKWHUIXWXUH6HHLQJLWVPLVVLRQDVEHLQJWRDFKLHYHVXVWDLQDEOHJURZWKIRULWVHOIDQGVRFLHW\WKH*URXSLVSXUVXLQJYDULRXVLQLWLDWLYHVDLPHGDWKHOSLQJUHDOL]HFDUERQQHXWUDOLW\LQOLQHZLWKLWVEDVLFSROLF\RISURYLGLQJJUHDWHUVRFLDOEHQH¿WVWKDWHQKDQFHVKDUHKROGHUYDOXHDQGEXLOGORQJWHUPFRUSRUDWHYDOXH
6HHNLQJWRIXO¿OOLWVPLVVLRQWKH',&*URXSVHWDWDUJHWLQLWV',&9LVLRQORQJWHUPPDQDJHPHQWSODQRILQFUHDVLQJVDOHVRIVXVWDLQDEOHSURGXFWVWRRILWVQHWVDOHVE\
H[SDQGLQJEXVLQHVVHVLQJURZWKPDUNHWVDQGFUHDWLQJQHZEXVLQHVVHVWRSURPRWHSRUWIROLRWUDQVIRUPDWLRQ7KURXJKWKHLQLWLDWLYHVVHWIRUWKLQWKHSODQWKH*URXSSOHGJHVWRFRQWULEXWHWR
WKHFUHDWLRQRIDVRFLHW\WKDWLVLQFUHDVLQJJUHHQGLJLWDODQGTXDOLW\RIOLIH 42/ RULHQWHG

| Portfolio Transformation
7KH&29,'SDQGHPLFKDVFUHDWHGDQHZQRUPDOWKDWLVH[SHFWHGWRVLJQL¿FDQWO\DFFHOHUDWHWKHWUDQVLWLRQWRDGLJLWDOVRFLHW\DQGIXQGDPHQWDOO\DOWHUHGFRQVXPHUEHKDYLRU5HFHQW\HDUVKDYHDOVRKHLJKWHQHGFRUSRUDWHDZDUHQHVVRIWKHLPSRUWDQFHRIDFKLHYLQJFDUERQQHXWUDOLW\E\$PLGWKHVHSDUDGLJPVKLIWVWKH',&*URXSKDVLGHQWL¿HG¿YHSULRULW\EXVLQHVVDUHDVDWWKHLQWHUVHFWLRQRI(6+UHODWHGLVVXHVDQGLWVRZQFRPSHWLWLYHVWUHQJWKV6XVWDLQDEOHHQHUJ\KHDOWKFDUHVPDUWOLYLQJFRORUVFLHQFHDQGVXVWDLQDEOHSDFNDJLQJ
7KH1HZ%XVLQHVV'HYHORSPHQW+HDGTXDUWHUVLVFKDUJHGZLWKFRPPHUFLDOL]LQJSURGXFWVLQQH[WJHQHUDWLRQDQGJURZWKEXVLQHVVHVZKLOHWKH5 '0DQDJHPHQW8QLWLVLQFKDUJH
RIHVWDEOLVKLQJLQRUJDQLFPDWHULDOVGHVLJQDQGELRPDWHULDOGHVLJQWHFKQRORJLHVDVQHZEDVLFWHFKQRORJLHVHVVHQWLDOWRWKHFUHDWLRQRIQHZEXVLQHVVHV$VHDPOHVVIUDPHZRUNIRUFRRSHUDWLRQEHWZHHQWKHWZRZLOOIXUWKHUGULYHSRUWIROLRWUDQVIRUPDWLRQE\IDFLOLWDWLQJWKHVZLIWHVWDEOLVKPHQWRIQHZEXVLQHVVHV1H[WJHQHUDWLRQDQGJURZWKEXVLQHVVHVDUHKLJKO\FRPSHWLWLYHDQGHYROYHUDSLGO\,QDGGLWLRQWRVWUHQJWKHQLQJLQWHUQDOFRRSHUDWLRQWRSURPRWHWKHFRPPHUFLDOL]DWLRQRIQHZSURGXFWVLQVXFKDUHDVWKH*URXSZLOOPDNHDFWLYHXVHRIH[WHUQDOUHVRXUFHVE\SURPRWLQJRSHQLQQRYDWLRQE\DPRQJRWKHUVOHYHUDJLQJFRUSRUDWHYHQWXUHFDSLWDO &9& DQGFRQQHFWLRQVLQRWKHULQGXVWULHVLQYHVWLQJLQVWDUWXSVFROODERUDWLQJZLWKDFDGHPLFLQVWLWXWLRQVDQGZRUNLQJZLWKRWKHUFRPSDQLHV
19HULÀFDWLRQ7HVWLQJRI0DWHULDO5HF\FOLQJ3URFHVVIRU:DVWH)OH[LEOH3DFNDJLQJ)LOPWKDW8VHV'HLQNLQJ7HFKQRORJ\:LWK¿QGLQJVROXWLRQVWRWKHLVVXHRIZDVWHSODVWLFVDQGPDULQHSODVWLFDQLQFUHDVLQJO\XUJHQWVRFLDOLPSHUDWLYHHIIRUWVWR¿QGVXVWDLQDEOHZD\VWRXVHSODVWLFVDUHSURJUHVVLQJUDSLGO\DURXQGWKHZRUOG,Q-DSDQDQHZ3ODVWLF5HVRXUFH5HF\FOLQJ3URPRWLRQ/DZFDPHLQWRIRUFHRQ$SULODGHYHORSPHQWWKDWLVH[SHFWHGWRIXUWKHUDFFHOHUDWHWKHGULYHWRUHDOL]HVXVWDLQDEOHSODVWLFV5HFRJQL]LQJWKHUHGXFWLRQRIZDVWHSODVWLFDQGPDULQHSODVWLFVDVDFKDOOHQJHWKDWDVDPDQXIDFWXUHURI¿QHFKHPLFDOVLWKDVDUHVSRQVLELOLW\WRDGGUHVV',&KDVLGHQWL¿HGWKHDUHDVLQZKLFKLWFDQEHVWFRQWULEXWHDVLQNVDGKHVLYHVDQG¿OPVLQLWVVXVWDLQDELOLW\VWUDWHJLHV,QRQHLQLWLDWLYHFXUUHQWO\XQGHUZD\',&LVFROODERUDWLQJZLWKDPDMRUEUHDGPDQXIDFWXUHUDQG
DUHF\FOLQJ¿UPLQWKHGHYHORSPHQWRIDPDWHULDOVUHF\FOLQJSURFHVVIRUZDVWHÀH[LEOHSDFNDJLQJ¿OPWKDWXVHVGHLQNLQJWHFKQRORJ\IRUZKLFKYHUL¿FDWLRQWHVWLQJKDVUHFHQWO\EHJXQ%HFDXVHRILQNVXVHGRQZDVWHÀH[LEOHSDFNDJLQJ¿OPWKHFRORUDQGSK\VLFDOSURSHUWLHVRI¿OPUHF\FOHGXVLQJPDWHULDOVUHF\FOLQJSURFHVVHVKDVWUDGLWLRQDOO\OLPLWHGLWVXVHV7KHXVH
RIGHLQNLQJWHFKQRORJ\LQWKLVQHZSURFHVV\LHOGVVLJQL¿FDQWLPSURYHPHQWVLQERWKFRORUDQGSK\VLFDOSURSHUWLHVJUHDWO\H[SDQGLQJSRWHQWLDOXVHVIRUWKHUHVXOWLQJUHF\FOHG¿OP/RRNLQJDKHDGWKH',&*URXSH[SHFWVWKHEURDGSUDFWLFDODSSOLFDWLRQRIWKLVQHZSURFHVVZLOOSOD\DPDMRUUROHLQLQFUHDVLQJWKHUHF\FOLQJRIZDVWHÀH[LEOHSDFNDJLQJ¿OP

DIC Report 2022

152

Value Creation

Recycling Process for Waste Flexible Packaging Film

Molding
Waste ﬂexible
packaging ﬁlm
2

Deinking

Reuse

Recycling into raw materials(pelletizing)$OJDH'HULYHG'+$2LOV$OJDHZKLFKDEVRUEV&2DQGSURGXFHXVHIXOVXEVWDQFHVWKURXJKSKRWRV\QWKHVLVLVDWWUDFWLQJPRUHDQGPRUHDWWHQWLRQDJDLQVWDEDFNGURSRIHYROYLQJUHTXLUHPHQWVIRUFRPSDQLHVWRHQVXUHVXVWDLQDELOLW\QRWDEO\WKHQHHGWRDFKLHYHFDUERQQHXWUDOLW\DQGUHGXFHFRQVXPSWLRQRISHWUROHXPGHULYHGUHVRXUFHV7KH',&*URXSUHFHQWO\VLJQHGDVDOHVDJHQF\FRQWUDFWZLWK)HUPHQWDOJ6$DOHDGHULQWKHGHYHORSPHQWRIPLFURDOJDHGHULYHGIRRGLQJUHGLHQWVEDVHGLQ/LERXUQH)UDQFHDQGLQ-XO\EHJDQPDUNHWLQJ)HUPHQWDOJ¶VDHA ORIGINS™VHULHVRIKLJKO\FRQFHQWUDWHGGRFRVDKH[DHQRLFDFLG '+$ RLOVZKLFKDUHGHULYHGIURPDSURSULHWDU\PLFURDOJDHVWUDLQ Schizochytrium sp IRUXVHLQGLHWDU\VXSSOHPHQWV'+$LVDW\SHRIRPHJDIDWW\DFLGRQO\YHU\VPDOODPRXQWVRIZKLFKDUHSURGXFHGLQWKHKXPDQERG\PHDQLQJLWPXVWEHDFTXLUHGIURPIRRG7KHKHDOWKEHQH¿WV
RI'+$DUHUHFRJQL]HGDURXQGWKHZRUOGDQGEDFNHGE\VLJQL¿FDQWHYLGHQFH8QOLNH'+$IURP¿VK)HUPHQWDOJ¶VPLFURDOJDHGHULYHG'+$LVH[WUDFWHGGLUHFWO\IURPFXOWXUHGDOJDHUHVSRQGLQJWRFRQFHUQVUHJDUGLQJPDULQHSROOXWLRQDQGWKHGHSOHWLRQRI¿VKHU\UHVRXUFHV,WDOVRKDVVFDUFHO\DQ\SHUFHSWLEOHRGRUDQGFRQWDLQVDEVROXWHO\QRDQLPDOSURGXFWVPDNLQJLWVXLWDEOHIRUYHJHWDULDQDQGYHJDQGLHWV)UHHIURPDOOHUJHQVDQGJHQHWLFDOO\PRGL¿HGRUJDQLVPV *02V DQGH[WUDFWHGZLWKRXWWKHXVHRIRUJDQLFVROYHQWVWKHVHRLOVDOVRGHOLYHUVDIHW\DQGSHDFHRIPLQG,QDGGLWLRQWKH\FRPSO\ZLWKERWKWKH(XURSHDQ8QLRQ¶V1RYHO)RRGVDIHW\VWDQGDUGVDQGWKH86)RRGDQG'UXJ$GPLQLVWUDWLRQ¶V*HQHUDOO\5HFRJQL]HGDV6DIH *5$6 VWDQGDUGV*URZQLQDFOHDQHQYLURQPHQWXVLQJ)HUPHQWDOJ¶VRXWVWDQGLQJWHFKQRORJ\IRUFXOWLYDWLQJSchizochytrium spLQIHUPHQWDWLRQWDQNVHOLPLQDWLQJWKHLQÀXHQFHRIFOLPDWH
DQGWKHULVNRIFRQWDPLQDWLRQDHA ORIGINS™SURGXFWVUHDOL]HKLJKO\FRQFHQWUDWHG  '+$ZLWKRXWDQ\DUWL¿FLDOFRQFHQWUDWLRQSURFHVVHV7KH',&*URXSZLOOFRQWLQXHWRUHLQIRUFHLWVDOJDHFXOWLYDWLRQWHFKQRORJLHVDVSDUWRILWVFRPPLWPHQWWRFRQWULEXWLQJWRWKHUHDOL]DWLRQRIDVXVWDLQDEOHVRFLHW\DQGDQLPSURYHG42/IRUSHRSOHHYHU\ZKHUH
3

1HZ6HHG)LOPIRU)DEULFDWLQJ:LULQJRQ+LJK)UHTXHQF\3:%VIRU+LJK6SHHG'DWD7UDQVPLVVLRQ:LWKWKHSURJUHVVRIGLJLWDOL]DWLRQDQGWKHULVLQJQHHGIRUKLJKVSHHGODUJHFDSDFLW\FRPPXQLFDWLRQLQIUDVWUXFWXUHFRSSHUZLULQJWHFKQRORJLHVWKDWPLQLPL]HWUDQVPLVVLRQORVVLQKLJKIUHTXHQF\EDQGVDUHWDNLQJRQLQFUHDVHGLPSRUWDQFH',&DQG7DL\R,QN0IJ&R/WGFROODERUDWHGWRGHYHORSDQHZVHHG¿OPIRUIDEULFDWLQJZLULQJRQKLJKIUHTXHQF\SULQWHGZLULQJERDUGV 3:%V WKDWHQDEOHVWKHIRUPDWLRQRIH[WUHPHO\VPRRWKGLDJRQDODQGYHUWLFDOZLULQJ
7KLVQHZ¿OPZDVGHYHORSHGE\',&DQG7DL\R,QNDVDQHZDSSOLFDWLRQIRU
',&¶VPHWDOOLFQDQRSDUWLFOHVLQWKHIDEULFDWLRQRIÀH[LEOH3:%V7KHPHWDOOLFQDQRSDUWLFOHFRDWHG¿OPLVXVHGDVDFRQGXFWLYHVHHGOD\HULQWKHIRUPDWLRQRIFRSSHUZLULQJXVLQJDVHPLDGGLWLYHSURFHVV7KLVHQVXUHVWKHFRSSHUZLULQJDGKHUHVH[WUHPHO\HYHQO\DQGWKDWWKHSDWWHUQFDQEHHWFKHGZLWKRXWWKLQQLQJ
7KLVOHDYHVDILQHO\SDWWHUQHGH[WUHPHO\VPRRWKVXUIDFHJUHDWO\UHGXFLQJWUDQVPLVVLRQORVVLQKLJKIUHTXHQF\EDQGV',&ORRNVIRUZDUGWRSURYLGLQJDQ
LQFUHDVLQJYDULHW\RIKLJKSHUIRUPDQFH¿OPVWKDWFRQWULEXWHWRWKHUHDOL]DWLRQRI1HZVHHGILOPIRUIDEULFDWLQJZLULQJRQKLJKIUHTXHQF\3:%V&RSSHUZLULQJIRUPHGIURPWKHQHZVHHGILOP WKLFNQHVVȝPDKLJKVSHHGKLJKFDSDFLW\FRPPXQLFDWLRQVLQIUDVWUXFWXUH'LDJRQDOZLULQJ/6ȝPYHUWLFDOZLULQJ/6ȝP

TOPICS,QYHVWPHQWLQDQG&ROODERUDWLRQZLWK%LRWHFK6WDUW8SV<LHOGV1HZ%XVLQHVVHV,Q¿VFDO\HDU',&HVWDEOLVKHGD&9&XQLWWDVNLQJLWZLWKVHDUFKLQJWKHJOREHIRUVWDUWXSVERDVWLQJXQLTXHWHFKQRORJLHVFRPSHOOLQJEXVLQHVVPRGHOVRUGLVUXSWLYHLQQRYDWLRQVZLWKWKH
SRWHQWLDOWRFRQWULEXWHWRVRFLHW\DQGWKH',&*URXS7KHIRFXVRIVXFKHIIRUWVLVVWDUWXSVLQWKHELRWHFKQRORJ\¿HOGZKLFKFRQWLQXHVWRJURZLQLPSRUWDQFHDJDLQVWH[SDQGLQJFRQFHUQIRUVXVWDLQDELOLW\,Q¿VFDO\HDU',&LQYHVWHGLQELRYHQWXUH&KHFNHUVSRW,QFLQWKH8QLWHG6WDWHVZKLOHLQ¿VFDO\HDULWLQYHVWHGLQ,VUDHOLELRWHFKVWDUWXS9D[D7HFKQRORJLHV/WG
9D[D7HFKQRORJLHVSRVVHVVHVXQLTXHSURSULHWDU\/('LOOXPLQDWHGSKRWRELRUHDFWRUVDQGDOJDHFXOWLYDWLRQWHFKQRORJLHVDQGLVHQJDJHGLQWKHGHYHORSPHQWDQGFRPPHUFLDOL]DWLRQRIFOHDQXQSDUDOOHOHGKLJKYDOXHDGGHGDOJDHSURGXFWV7KH&RPSDQ\KDVDOVRWHDPHGXSZLWK86¿UP'HEXW%LRWHFKQRORJ\,QFWRFRQGXFW5 'DLPHGDWUHDOL]LQJQHZPHWKRGVIRUV\QWKHVL]LQJQDWXUDOSLJPHQWV7KHFRPELQDWLRQRI'HEXW%LRWHFK¶VDGYDQFHGNQRZOHGJHRIHQ]\PHUHDFWLRQVDQGSURFHVVGHVLJQDQG',&¶VWHFKQRORJLHVLQWKH¿HOGRIFRORUPDWHULDOVZLOOOHDGWRWKH
GHYHORSPHQWDQGFRPPHUFLDOL]DWLRQRIXQSUHFHGHQWHGVXVWDLQDEOHKLJKYDOXHDGGHGQDWXUDOFRORUDQWV*RLQJIRUZDUG',&ZLOOFRQWLQXHWRPDNHXVHRIRSHQLQQRYDWLRQLQFOXGLQJWKURXJK&9&WREXLOGSDUWQHUVKLSVWKDWZLOOKHOSFRQWULEXWHWRVXVWDLQDELOLW\E\IDFLOLWDWLQJWKHFUHDWLRQRIQHZEXVLQHVVHVWKDWKHOSDGGUHVVNH\VRFLDOLPSHUDWLYHV

)RUPRUHLQIRUPDWLRQRQHQGHDYRUV DQGDVZHOODVRWKHULQLWLDWLYHVRIWKH1HZ%XVLQHVV'HYHORSPHQW+HDGTXDWHUVSOHDVHVHHSDJHDIC Report 2022

153

SDGs Goals 9 and12

Sustainable Technology and Product Development
Proposing Solutions that Leverage Core Technologies

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

Enhance ability to develop
products and technologies thatfacilitate contribution to asustainable society.

Accelerate efforts to develop
products that contribute tosustainability.

Goals for fiscal year 2021

Achievements in fiscal year 2021

Evaluation• Accelerate collaboration among global
technology bases in the development ofstrategic products and new technologies.

• Various facilities collaborated topromote R&D.

• Make use of compounding technologies,
open innovation and AI to hasten thedevelopment of technologies that create
added value.

• Steps were taken. to foster specialists
in AI, including the establishment of theData Science Center, and to promotecollaborate with specialized third-party
AI firms.

Accelerate efforts to develop productsthat contribute to sustainability.

• Efforts led to the launch of multiple
new biomass products, including
printing inks and adhesives for flexible
packaging.

Goals for fiscal year 2022
• Accelerate collaboration among global
technology bases in the development ofstrategic products and new technologies.

★★

• Make use of compounding technologies,
open innovation and AI to hasten thedevelopment of technologies that create
added value.

Accelerate efforts to develop productsthat contribute to sustainability.

★★

| Achieving Sustainable GrowthWith the aim of realizing its redefined its Color & Comfort brand statement management vision, the DIC Group is leveraging its basic
technologies, including those in the areas of optics and color, organic materials design, polymer design and dispersion, and its coretechnologies in such areas as polymer synthesis, compounding and formulation, and surface treatment, to develop high-value-added
products that contribute to a sustainable society. The Group is also building a portfolio of next-generation products and new technologies
by integrating technological resources originating across the Group, as well as actively promoting open innovation, including throughcollaboration with academic institutions, and CVC to drive sustainable growth.

| Enhancing the Technology Platform
Accelerating portfolio transformation by combining basic technologies—including recently added inorganic materials
design and biomaterials design technologies—with AI and MI&XUUHQW%DVLF7HFKQRORJLHV
Biomaterials
designOrganic
materials
designOptics andcolor

Polymer
designInorganic
materials
designBiomaterials
designInorganic
materials
designOptics andcolor

Common basic
technologies

Dispersion

Computational science(AI and MI), Analysis

Dispersion

Applicability
assessment

Polymer
designAI and MI

Organic
materials
designApplicability
assessment(Coating,
printing,
molding)(Coating, printing, molding)

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

DIC Report 2022

154

Sustainable Technology and Product Development| 6SHFLÀF,QLWLDWLYHVDQG$FKLHYHPHQWVThe DIC Group is advancing the development and use of clean technologies. This includes promoting the development of materials for the packaging andgraphics, color materials, electronics and other customer industries that improve the environmental performance of the products in which they are used,making the use of DIC products a way customers can contribute to addressing global environmental issues. In Japan, the Group devotes approximately 54%
of its technological resources to the development of such products.

| Products for Packaging and Graphics Applications
Recent achievements in the area of packaging materials include the launch of biomass gravure inks for surface printing that provide high resistance to oils
VXFKDVEXWWHUDQGDOFRKROEDVHGGLVLQIHFWDQWVIRUVXUIDFHSULQWLQJRQ¿OPVIRUSDFNDJLQJEUHDGDQGRWKHUIRRGSURGXFWVDQGDQDQWLEDFWHULDOYDUQLVKWKDW
delivers excellent alcohol, heat and oil resistance. The FINART ® BM series of gravure inks for reverse printing earned OK compost INDUSTRIAL and OKFRPSRVW+20(FHUWL¿FDWLRQ²JOREDOHQGRUVHPHQWVRIWKHELRGHJUDGDELOLW\RISODVWLFV²EHFRPLQJWKH¿UVWJUDYXUHLQNVROGLQ-DSDQWREHFHUWL¿HGXQGHUWKLV
program. The FINART ® BM series of overprint varnishes also earned the Biomass Mark, which is granted by the Japan Organics Recycling Association. In
WKHDUHDRIDGKHVLYHVIRUÀH[LEOHSDFNDJLQJWKH*URXSODXQFKHGDELRPDVVDGKHVLYHWKDWGHOLYHUVDFRPSDUDEOHSHUIRUPDQFHWRFRQYHQWLRQDOSHWUROHXP
based products. During the period, the Group also commenced collaboration with a major bread manufacturer in the development of a materials recycling
SURFHVVIRUZDVWHÀH[LEOHSDFNDJLQJ¿OPXVHGLQEUHDGSDFNDJLQJ2YHUVHDV*URXSFRPSDQ\6XQ&KHPLFDOEURXJKWDYDULHW\RIVXVWDLQDEOHSURGXFWVIRU
SDFNDJLQJDSSOLFDWLRQVWRPDUNHWLQFOXGLQJSRO\YLQ\OFKORULGH 39& IUHHODPLQDWLQJLQNFRPSRVWDEOHFRDWLQJVIRUSDSHUDQG¿OPZDWHUEDVHGLQNVDQG
coatings with high biomass content, and an ink that can be removed from printed articles.

| Color Materials,QWKHDUHDRIGLVSOD\VWKH',&*URXSFRQWLQXHGWRGHYHORSSLJPHQWVIRUXVHLQFRORU¿OWHUV,QOLJKWRIJURZLQJDZDUHQHVVRIVXVWDLQDELOLW\DQGDQLQFUHDVLQJ
preference for natural products in the area of cosmetics, the Group explored the use of Linablue ® natural blue pigments and promoted the development of
UV care products containing polysaccharide SACRAN™, extracted from Suizenji Nori blue-green algae in collaboration with a Japanese biotech venture.
Against a backdrop of growing awareness of environmental issues, Sun Chemical extended its track record with NIR-reflective and NIR-transmissive
SLJPHQWVWKDWUHGXFHFRROLQJFRVWVDQGLPSURYHWKHHI¿FLHQF\RISODVWLFVUHF\FOLQJ

| Products for Use in Electronics Equipment
New products in the area of products for use in electronics equipment included a low dielectric material for electronic circuit boards for devices to be used
in 5G cellular telecommunications, the buildout of which is proceeding apace, and a thin industrial adhesive tape for smartphones that combines excellent
adhesion and easy removability and an adhesive tape for computers that delivers outstanding reworkability. DIC also registered a trademark for andcommenced sales of Hatte Totte®DQHZÀH[LEOHZLUHOHVVVHQVRUWKDWFDQEHXVHGWRGHWHFWWHPSHUDWXUHKXPLGLW\DQGLOOXPLQDQFHWKDWLVPRXQWHGZLWKD
double-sided tape that also offers superb removability. In addition, the Company pressed ahead with efforts to create new businesses in collaboration with
Taiyo Holdings Co., Ltd., with which it has a capital and business alliance, working with Taiyo Ink mfg., a subsidiary of its alliance partner, to develop a new
VHHG¿OPIRUIDEULFDWLQJZLULQJRQKLJKIUHTXHQF\3:%VIRUWKHKLJKIUHTXHQF\EDQGVXVHGIRU*FHOOXODUWHOHFRPPXQLFDWLRQV| $*OREDO5 '&RQÀJXUDWLRQWKDW8QGHUSLQV3URGXFW'HYHORSPHQW
DIC’s R&D organization in Japan comprises the Technical Management Unit, which is responsible for R&D connected directly to businesses; theR&D Management Unit, which is responsible for adding depth to existing and fostering new basic technologies; and the New Business Development
Headquarters, which is charged with creating strategic new businesses and commercializing business units’ next-generation product groups. These entities
promote the global development of products and technologies in collaboration with the R&D components of DIC Group companies around the world. These
include DIC Graphics; the Sun Chemical Group’s research centers in the United States, the United Kingdom and Germany; Qingdao DIC Finechemicals Co.,
Ltd., which conducts comprehensive R&D tailored to market needs in the PRC; printing inks technical centers, polymer technical centers, solid compound
WHFKQLFDOFHQWHUVDQGSLJPHQWWHFKQLFDOFHQWHUVLQWKH35&DQGWKH$VLD±3DFL¿FUHJLRQWKH)LQH&KHPLFDO7HFKQLFDO&HQWHU±.RUHDDQGDQDOJDHUHVHDUFKFHQWHULQWKH8QLWHG6WDWHV,Q¿VFDO\HDU',&HVWDEOLVKHGWKH'DWD6FLHQFH&HQWHUZLWKWKHDLPRIIDFLOLWDWLQJWKHVWUDWHJLFLQWURGXFWLRQRI$,DQG0,
LQWR5 'WKHPHVDQGUHLQIRUFLQJWKHWUDLQLQJRI$,VSHFLDOLVWVWKHUHE\LQFUHDVLQJWKHHI¿FLHQF\RI5 '| Accelerating the Expansion of Sustainable Products
DIC recently introduced the proprietary DIC Sustainability Index. (For more information, please see page 57.) This index is used to simultaneously assess all',&*URXSEXVLQHVVDQGSURGXFWVIURPWKHSHUVSHFWLYHVRIHQYLURQPHQWDOLPSDFWUHGXFWLRQDQGVRFLDOFRQWULEXWLRQ7KH',&*URXSGH¿QHVSURGXFWVWKDWZLOO
help it address key social imperatives as sustainable and promotes their expansion. The index will also be used in R&D to determine the focus of research
DQGSURGXFWGHYHORSPHQWWKHPHVLQFOXGLQJWKHPRGL¿FDWLRQRISURGXFWVWRUHGXFHHQYLURQPHQWDOLPSDFWDIC Report 2022

155

Sustainable Technology and Product Development| Product Stewardship
The DIC Group views product stewardship as a key aspect of its operations. The Group has established a global product stewardship team for printing inks,
adhesives and other products used in food packaging, which it supplies to customers around the world. The team shares information on regulations andrelevant topics from various markets, as well as advances awareness thereof and provides training. Knowledge thus gained is incorporated into product
GHVLJQDQGLVXVHGWRSURGXFHFRPSOLDQFHFHUWL¿FDWHVDFURVVWKHVXSSO\FKDLQZKLFKDUHUHTXLUHGE\FXVWRPHUVZRUOGZLGH
The DIC Group also strives to maintain a solid grasp of laws and regulations in different countries and territories, and of trends in environmental initiatives,to ensure its ability to design products that comply with diverse controls on the use of chemical substances. In addition, the Group conducts environmental
assessments on a continuous basis.

| Innovation through Compounding
Building on its fundamental pigment and resin dispersion and formulating technologies, realized through the production of printing inks, DIC has succeededin combining materials with different properties and performance characteristics to develop groundbreaking products and create new value. Newly launched
products include a PPS alloy compound that responds to needs arising from the increased use of electronic components in vehicles and a non-aluminumcompound for vehicle sensors that delivers outstanding electrical insulation. The DIC Group is also developing a wide range of new products, including a
KLJK±ELRPDVVFRQWHQWSODVWLFL]HUWKDWLPSURYHVWKHÀH[LELOLW\RIELRGHJUDGDEOHUHVLQVFRQWDLQLQJDODUJHDPRXQWRILQRUJDQLF¿OOHU7KH*URXSZLOOFRQWLQXHWR
harness its distinctive compounding capabilities to transform its diverse technologies into competitive advantages with the aim of driving innovation.

| Responding to a Circular Economy
In line with the “5Rs” (Reuse, Reduce, Recycle, Redesign and Reduce CO), which seek to advance the circular use of resources, the DIC Group is working
to expand its lineup of biomass products, crucial to the achievement of carbon neutrality, shift to recyclable materials, and develop biodegradable andcompostable materials. In addition, the Group is promoting the development of production processes using algae and bacteria and biopolymers, as well as
the realization of a closed-loop chemical recycling process for polystyrene and an innovative dekinking agents. The Group is also taking active steps to help
UHGXFHZDVWHSODVWLFDQGPDULQHSODVWLFVUHFRJQL]LQJWKHVHDVFKDOOHQJHVWKDWDVDPDQXIDFWXUHURI¿QHFKHPLFDOVLWKDVDUHVSRQVLELOLW\WRDGGUHVV| Intellectual Property
The DIC Group recognizes intellectual property as an important management resource that is indispensable to the development of new technologies and thecreation of value creation, a key management challenge, and promotes intellectual property initiatives that conform with its business and technology strategies.
In core businesses, the Group pursues intellectual property portfolio strategies aimed at expanding earnings, including those aimed at building a robust
patent portfolio and capitalizing on intellectual property information to cultivate new markets and promote the qualitative transformation of its business. In
new business areas, the Group is advancing initiatives designed to lead to the creation of a new generation of core businesses, including making use ofpatent landscapes in business planning, encouraging the early acquisition of rights for newly acquired technologies, and employing an open and closed
VWUDWHJ\$GGLWLRQDOO\WKH*URXSLVEXLOGLQJDFRQ¿JXUDWLRQIRUWKHLPSOHPHQWDWLRQRIJOREDOLQWHOOHFWXDOSURSHUW\VWUDWHJLHVE\IRUWLI\LQJFROODERUDWLRQZLWKLWV
R&D bases around the world.
DIC’s intellectual property initiatives are also attracting notice from external observers. The Company is regularly among the top companies in the
FKHPLFDOVLQGXVWU\LQ-DSDQLQWHUPVRISDWHQWDVVHWVRZQHGLQDUDQNLQJFRQGXFWHGE\DQLQGHSHQGHQW¿UP :KLOHWKHQXPEHURIQHZSDWHQWVLWUHJLVWHUVDQQXDOO\LVVPDOOFRPSDUHGWROHDGLQJFKHPLFDOV¿UPVWKH&RPSDQ\LVUDWHGKLJKO\IRUWKHRYHUDOOVDOHRILWVSDWHQWDVVHWVUHÀHFWLQJWKHTXDOLW\DQGKLJKSUR¿OHRIWKHSDWHQWVLWKROGVThe DIC Group is also emphasizing the improvement of employees’ intellectual property literacy to bolster respect for intellectual property rights, in linewith its basic policy on compliance, and offers e-learning programs for all employees designed to protect against intellectual property risk. DIC will continue
to actively promote the use of intellectual property to ensure sustainable growth in the years ahead.
3DWHQW5HVXOW&R/WG

VOICE We developed an easy-to-remove adhesive tape that aligns with the 3Rs.
In recent years, we have seen increasing demand for DIC to provide solutions that will contribute to the achievement of the SDGs, a criticalglobal challenge. My group developed an easy-to-remove adhesive tape that delivers the outstanding adhesion required in manufacturing andcan be removed easily simply by stretching. In addition to ensuring highly reliable adhesion without peeling off when in use, this tape’s easy
UHPRYDELOLW\KHOSVLPSURYHWKHPDWHULDOVUHF\FOLQJUDWHIRUGHYLFHVLQZKLFKLWLVXVHGDOLJQLQJZLWKWKHRULJLQDOV5V²5HGXFH5HXVHDQG
5HF\FOH²IRUFXVWRPHUVDQGVRFLHW\LQJHQHUDO$GRSWLRQE\WHOHYLVLRQDQGPRELOHGHYLFHPDQXIDFWXUHUVFRQWLQXHVWRLQFUHDVHDQGZHSODQWR
expand our focus to include other markets going forward.
Processing Technical Group 2, Processing Technical Division, DIC Corporation

DIC Report 2022

156

Daisuke Watanabe

Digital Transformation
Driving Business Model and Portfolio Transformation

Goals of Major Initiatives for Fiscal Year 2022
Objective of initiatives

Goals for fiscal year 2022

Establish a framework that balances the need for speed with that for the management of risks.

Promote DX.

Advance DX measures across multiple business units/functional departments.

Begin exploring business model transformation.

| Basic Policy
The DIC Group promotes digital transformation (DX) with the objective of providing new value and reinforcing its corporate structure throughthe use of digital technologies and data. The Group is advancing initiatives in three key areas: Market,* production and technology, andsupply chain management (SCM). The Group is also working to realize a next-generation digital integrated platform and securing and training
human resources to establish the infrastructure necessary to advance DX.
* “Market” is used here in the sense of sales and marketing functions.

| Framework for Promotion,QILVFDO\HDU',&FUHDWHGWKH,76WUDWHJ\8QLWThis new unit oversees the Information Systems
Department and the DX Promotion Department andwill leverage data and digital technologies, eliminatingboundaries between IT and DX, to promote processoptimization, work style reforms and the innovation ofbusiness models on a global scale over the short term,
as well as the medium to long term. Looking ahead, theCompany expects to see an increase in the promotionof independent DX initiatives by individual business units
and functional departments. Accordingly, the Work Style
5HYROXWLRQ :65 &RPPLWWHHHVWDEOLVKHGLQ¿VFDO\HDUZLOOWUDFHSURYLGHVXSSRUWIRUDQGFRQGXFW
post-implementation monitoring of such initiatives toensure optimization from a Companywide perspective.

Framework for Promoting DX
Board of Directors
President and CEO
WSR Committee
ReportTrace, provide support for and conductpost-implementation monitoring of DX initiatives

IT Strategy Unit
Information Systems Department
DX Promotion Department
Business units/functional departments| MarketThrough DX, DIC seeks to enhance brand strength through the creation of high-level customer experiences and achieve business modeltransformation. With the increasing use of telework and the accelerating digitalization of operations, the importance of web-based researchand communication is growing. The DIC Group recognizes the importance of digital media as a channel for communication with customers.
,Q¿VFDO\HDUWKH*URXSVLJQL¿FDQWO\H[SDQGHGSURGXFWUHODWHGFRQWHQWRQLWVJOREDOZHEVLWHDQGKHOGRQOLQHH[KLELWLRQVZLWKWKHJRDORIKHOSLQJFXVWRPHUVUHVROYHLVVXHVLQVSHFL¿FEXVLQHVVDUHDV,Q¿VFDO\HDUWKH*URXSZLOOH[SDQGDQGUH¿QHLWVDSSURDFKVWHSSLQJXS
the pace in expanding the global website’s product-related content and holding online exhibitions in additional business areas and webinars.
To advance business model transformation, the Group has begun looking at measures to further strengthen cooperation between business
units and the IT Strategy Unit.

DIC Report 2022

157

Digital Transformation| Production and Technology
On the production side, DIC is deploying digital technologies widely at production sites with the aim of realizing smart factories that reduce
ZRUNORDGVDQGHQVXUHVDIHVWDEOHRSHUDWLRQV,Q¿VFDO\HDU',&GHYHORSHGDQGEHJDQXVLQJ3ULVPDQ$,EDVHGV\VWHPIRUSURGXFWLRQ
sites with the purpose of handing down the skills and knowledge of experts at production sites, and began work on the practical application ofdigital twins technology to automate entire resin production processes. On the technology side, the Group sought to expedite the transformation
RILWVEXVLQHVVSRUWIROLRDVRXWOLQHGLQLWV',&9LVLRQORQJWHUPPDQDJHPHQWSODQE\VKLIWLQJWKHIRFXVRIHIIRUWVWRFRPSXWDWLRQDOVFLHQFHZKLFKXVHV$,DQG0, ,Q¿VFDO\HDUWKH*URXSHVWDEOLVKHGWKH'DWD6FLHQFH&HQWHUZKLFKKRXVHV$,VSHFLDOLVWVWKURXJKZKLFKLWLV
working to halve the development stage for new products and double the number of development themes in play.
* MI applies statistical analysis and other informatics techniques to search large amounts of data for new materials.

Use of Self-Improving AI to Pass On Knowledge

Example of Digital Twins Technology

ExpertDigital Twin Technology for Total Production Process Automation (Scope of DIC’s Cocreation with Hitachi)
Digitalization of operating status using
high-precision reaction prediction model

Problem graphResults checkedto narrow down
possibilities anduncover problems② Sound issue
used to③ Information
narrow down possibilities

Use of process informatics todetermine optimal operating conditions

Frontline data

Literature

Optimization of
production planning③ Trouble allocation① Malfunction

AI-based analysis

Theoretical model

Cooperation
with suppliersof problems④ Extractionin order of similarity

Traceability

y=f(x)
Theoretical data

Raw material data

Operating data

Sampling data

Quality data

Demand prediction

Cyberspace
Physical worldSelf-improving AI

Incorporation of
production data

Distributed control system
Raw materials

Provision of
Manufacturing execution system feedback on optimal
operating conditions

Sampling

List of possible problems

Testing

Plant A

Young employee

Procurement

Production：Input of raw materials → Reaction → Postprocessing → Testing

Sales/after-sales service

Optimization of the supply chain| SCM,QDGGLWLRQWRLPSURYLQJWKHYLVLELOLW\RIWKHÀRZVRIJRRGVDQGLQIRUPDWLRQWKURXJKLWVVXSSO\FKDLQWKH',&*URXSLVVWDQGDUGL]LQJDQG
LQWHJUDWLQJEXVLQHVVSURFHVVHVDQGNH\SHUIRUPDQFHLQGLFDWRUV .3,V WRSURPRWHVXSSO\FKDLQUHIRUPVGHVLJQHGWRLPSURYHHI¿FLHQF\DQG
management on a global basis. To this end, the Group is leveraging digital technologies to realize real-time platform linkage between sales
DQGSURGXFWLRQGDWDDQGVWDWLVWLFDOGHPDQGIRUHFDVWLQJDQLQLWLDWLYHLWH[SHFWVWREHJLQUROOLQJRXWJUDGXDOO\LQ¿VFDO\HDU

| Core Business Systems
7KH',&*URXSSODQVWRXSGDWHFRUHEXVLQHVVV\VWHPVLQ¿VFDO\HDU6HHLQJWKLVDVDQRSSRUWXQLW\WKH*URXSZLOOUHVSRQGWRFKDQJHV
in its operating environment, business structural reforms and advances in digital technologies to build a global digital platform that will be
FDSDEOHRIHYROYLQJHYHQ\HDUVGRZQWKHURDGDVZHOODVDQRSHUDWLQJFRQ¿JXUDWLRQIRUWKLVSODWIRUP$VSDUWRIWKLVLQLWLDWLYHWKH*URXSZLOODOVRHVWDEOLVKDQH[WJHQHUDWLRQGLJLWDOLQWHJUDWLRQSODWIRUPWKDWZLOOIDFLOLWDWHÀH[LEOHDQGUDSLGV\VWHPOLQNDJHZLWKH[WHUQDOSDUWLHVDV
well as data analysis from multiple perspectives.

| Securing and Fostering Human Resources',&LVDOVRSODFLQJDSULRULW\RQIRVWHULQJWKHKXPDQUHVRXUFHVQHFHVVDU\WRDGYDQFHYDULRXVHIIRUWV,Q¿VFDO\HDUWKH&RPSDQ\EHJDQRIIHULQJWUDLQLQJIRUIXWXUHGDWDVFLHQWLVWVDQGRWKHULQGLYLGXDOVZKRVHMREVZLOOUHTXLUHWKHXVHRIGDWD,Q¿VFDO\HDUWKH&RPSDQ\began offering tailored “DX leader” training, which emphasizes the use of digital technologies to drive business and operational reforms, toselected candidates from business units and functional departments. The Group will also actively recruit human resources from outside the&RPSDQ\PDLQO\LQVXFKDUHDVDVDJLOHGHYHORSPHQWIRUSRVLWLRQVWKDWFDQQRWEH¿OOHGE\LQWHUQDOKXPDQUHVRXUFHVTOPIC
Efforts to Promote Digital Marketing Are Progressing.
7KUHH\HDUVKDYHSDVVHGVLQFH',&LQWURGXFHG6DOHVIRUFHFORXGEDVHGVHUYLFHVDQGPDUNHWLQJDXWRPDWLRQ,Q¿VFDO\HDUWKH&RPSDQ\KHOGDZHEVLWH
content creation support workshop, an initiative that has accelerated the use of these services Companywide. Workshop participants are asked to envision
what sorts of solutions DIC can offer its customers and beyond that to its customers’ customers, and to create websites from two perspectives: Products andcustomer value. Using digital means, the Company then conducted surveys via these websites. Participating
departments have succeeded in making contact with a steady stream of customers they would not otherwise
have access to in the course of normal sales activities.
2QHDGYDQWDJHRIGLJLWDOWHFKQRORJ\LVWKDWUHVXOWVDUHTXDQWL¿DEOHDQGWLPHO\,QFUHDVHGYLVLELOLW\PHDQV
that the individuals in charge in any given business unit will be able to see and understand the numbers,
encouraging them to think spontaneously about what can be done next or how can this be followed-up
effectively. DIC will continue working to communicate the appeal of its products by encouraging market-driven
thinking across the Company.
Content creation support workshop* Marketing innovation uses tools and software to support marketing efforts, including the securing of new customers
and cultivation of prospective customers.

DIC Report 2022

158

Harmony with the Community and Social Contributions

SDGs

Goals 3 and 4

Adding Color & Comfort to Lifestyles

Basic Approach to Social Contribution
Based on its Guidelines for Social Contribution Activities, established in fiscal year 2009, the DIC Group works to ensureharmony with local communities and individuals through activities aimed at building a strong relationship with society.

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

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

Culture and education
The DIC Group will engage in activities that will contribute to the development and promotion of culture, the arts, science andeducation, including fostering next-generation human resources in areas such as the culture of color and chemistry.

Communities and society

The DIC Group will strive to coexist harmoniously with local communities to develop a relationship of mutual trust. Moreover, the Group will
provide an environment that enables employees to engage in voluntary contribution activities in their respective local communities.

| Principal Initiatives
CUD: The Future of Color and Comfort
The DIC Group is actively involved in R&D in the area of color universal design (CUD), as well as in expanding public awareness andunderstanding of CUD’s importance. In 2007, the Group, in cooperation with the Japan Paint Manufacturers Association, the Industrial
Research Institute of Ishikawa and the Color Universal Design Organization, embarked on a project to create the Color Universal Design–
Recommended Color Set under the supervision of the University of Tokyo.
,QGHYHORSLQJWKHFRORUVHWWKHRUJDQL]DWLRQVFRQGXFWHGUHSHDWHGYHUL¿FDWLRQWHVWVXVLQJVWXG\SDUWLFLSDQWVZLWKYDULRXVW\SHVRIFRORUYLVLRQto adjust proposed colors, a process that facilitated the creation of a set of colors that are relatively easy to distinguish regardless of ability
WRVHHFRORUVDQGFDQEHUHSURGXFHGXVLQJSULQWLQJLQNVFRDWLQJVDQGGLJLWDOLPDJLQJ7DNLQJLQWRDFFRXQWQHDUO\DGHFDGHRIXVHLQ¿VFDO
year 2018 the project members revised the set’s color values to further enhance usability. The organizations also published a guidebook on
effective use of the set and has worked to promote understanding and awareness.
From fiscal year 2015 through fiscal year 2017, the DIC Group participated in a joint industry–academic research project. During thisperiod, Chiba University, the Central Research Laboratories and DIC Color Design, Inc., gave presentations on joint research on the color
appearance of red spot colors used in printed warnings and other important information on packaging and on the use of color in an aging
society at academic conferences in Japan and overseas.
In 2011, DIC began collaborating with the University of Tokyo and architect Kengo Kuma to develop new tactile paving that ensures highvisibility for visually impaired individuals and is in harmony with the landscape. In spring 2018, two new color options—a warm orangey
yellow and a cool yellowish green—were commercialized by various companies for directional tactile paving, designed to guide people along
DVSHFL¿FURXWHXQGHUWKHUHJLVWHUHGWUDGHPDUNLucida ® ,QDVWURQRP\³OXFLGD´PHDQVWKHEULJKWHVWVWDULQDFRQVWHOODWLRQ ,Q¿VFDO\HDU
2018, DIC also took part in a project to revise the JIS standard for safety colors (JIS Z 9103) with the goal of choosing colors that can be
distinguished by people with diverse color vision. As a member of the original drafting committee, DIC was involved in setting recommended
CMYK values for process printing, which had not previously been provided, and continues to cooperate in initiatives aimed at promoting
awareness.
Since fiscal year 2019, DIC has participated as an expert in the field of color in the verification of safety-related color schemes for
DSSOLFDWLRQVVXFKDVGLVDVWHUSUHYHQWLRQLQIRUPDWLRQ5HFHQWO\WKH&RPSDQ\WRRNSDUWLQYHUL¿FDWLRQIRUWKHVHWWLQJRI5*%YDOXHVIRUVFUHHQGLVSOD\VIRUDFRORUVFKHPH ¿YHFRORUV GHYHORSHGWRFRQYH\KHDY\UDLQZDUQLQJOHYHOVLQDQHDV\WRXQGHUVWDQGPDQQHUDQGDQQRXQFHGLQ
0D\E\-DSDQ¶V&DELQHW2I¿FH,QWKHIRUPXODWLRQRI&0<.YDOXHVIRUWKHVDPHFRORUVFKHPHZKLFKZHUHDQQRXQFHGLQ0DUFK
',&*UDSKLFVFRRSHUDWHGQRWRQO\E\YHULI\LQJFDQGLGDWHFRORUVEXWDOVRE\SULQWLQJDFRORUFKDUWIRUXVHLQWKHYHUL¿FDWLRQSURFHVVDIC Report 2022

159

Harmony with the Community and Social Contributions

In March and April 2022, DIC published a two-part feature on its efforts to contribute to society through color in the Japanese-language space of its global
ZHEVLWH7KH¿UVWSDUWIRFXVHGRQWKH&RPSDQ\¶VUHVSRQVLELOLW\WRVRFLHW\DVDPDQXIDFWXUHURIFRORUVWRVXSSRUWXVHUIULHQGO\FRORUFRPPXQLFDWLRQZKLOH
the second looked at CUD and its increasingly important role in enhancing everyday safety and convenience. The DIC Group continues working to provide
stakeholders with information on its initiatives to make society more accessible to people with diverse types of color vision, as well as to introduce key
difference makers from both within and outside the Group.

Photos from the DIC global website feature “Contributing to Society through Color”
Left: Kei Ito (Visiting Professor, Tokyo University; Professor, University of Cologne (Germany; Vice-Chairman, Color Universal Design Organization)
Right: Masaaki Nakagawa, General Manager, Corporate Communications Department, DIC Corporation

Visiting Science Lab Program
In line with the Japanese government’s efforts to promote career education initiatives, as well as to help curb a decline in the popularity of science amongchildren, DIC and DIC Graphics conduct visiting science labs at public elementary schools. Through this program, the DIC Group seeks to spark children’sinterest in science and encourage them to realize the close relationship between science and their everyday lives.
Designed with the aim of making science fun for children and helping them understand how
VFLHQFHEHQH¿WVVRFLHW\WKHODEHQWDLOVH[SHULPHQWVLQV\QWKHVL]LQJSLJPHQWVDQGSODQRJUDSKLF
printing, that is, printing from a flat surface. Since launching this initiative in 2010, the twocompanies have provided classes at 42 elementary schools for approximately 3,300 sixth graders.
In fiscal years 2018 and 2019, the Group also conducted visiting science labs for elementary
school children as part of the Tohoku University Graduate School of Engineering’s Science
Campus project. The labs were well received by both participating children and their parents.
 ,Q¿VFDO\HDUVDQGWKH',&*URXSPDGHWKHGHFLVLRQWRSRVWSRQHYLVLWLQJVFLHQFH
labs to help prevent the spread of COVID-19. The Group looks forward to restarting this initiative
once the pandemic has subsided.
Visiting science lab
Initiatives Led by the Central Research Laboratories',&¶V&HQWUDO5HVHDUFK/DERUDWRULHVSURYLGHVVXSSRUWIRUHGXFDWLRQWKURXJKDYDULHW\RILQLWLDWLYHV,Q¿VFDO\HDUWKHVHLQLWLDWLYHVLQFOXGHGEDFNLQJWKHWK
Annual Meeting on Scientific Research by High Schools, a program sponsored by Chiba University’s Section of Collaboration with High Schools that features
research presentations by high schools across the country. Five researchers from the Central Research Laboratories attended this event, listening to a total of 290
presentations, taking part in Q&A sessions and otherwise encouraging the research efforts of participating high school students, who aspire to a career in the sciences.
In addition, the Central Research Laboratories offers programs that leverage DIC’s unique capabilities. Particularly notable are lectures for high schools that have earned
Super Science High School* designation, including Seishin Gakuen High School in Ibaraki Prefecture and Sakura Senior High School and Funabashi High School in Chiba
3UHIHFWXUHDVZHOODVIDVKLRQGHVLJQZRUNVKRSVIRUVWXGHQWVIURP6DNXUD+LJDVKL+LJK6FKRROLQ&KLED3UHIHFWXUH,Q¿VFDO\HDURQO\WKHGHVLJQZRUNVKRSVDW
Sakura Higashi High School were held because of concerns regarding COVID-19, but the Central Research Laboratories continued to assist Super Science High School–
designated schools through participation by executive-level employees in the steering committees of Sakura Senior High School and Funabashi High School.
7KH&HQWUDO5HVHDUFK/DERUDWRULHV¶LQLWLDWLYHVIRU¿VFDO\HDUDOVRLQFOXGHGVSHDUKHDGLQJ',&¶VSDUWLFLSDWLRQLQWKH&KLED0XVHXPRI6FLHQFHDQG,QGXVWU\¶V“Now I Get It! Technologies of the Future” exhibition, held to coincide with schools’ summer vacation with the aim of nurturing children’s curiosity about science andtechnology and encouraging the next generation’s interest in work in the manufacturing sector.
* “Super Science High School” is a designation awarded by Japan’s Ministry of Education, Culture, Sports, Science and Technology to high schools that implement curricula focused on the sciences and mathematics that goes beyond the0LQLVWU\¶VRI¿FLDOJXLGHOLQHVZLWKWKHDLPRIIRVWHULQJWKHQH[WJHQHUDWLRQRIWDOHQWHGHQJLQHHUVDQGVFLHQWLVWV

Initiatives Led by the Kashima Plant
The Kashima Plant, in Ibaraki Prefecture, has accepted trainees in cooperation with Ibaraki Hasaki High School’s internship program—dubbed
WKH+DNR'XDO6\VWHP²VLQFH,Q¿VFDO\HDUWKUHHVWXGHQWVIURPWKHVFKRRO¶VLQGXVWULDOFKHPLVWU\DQGLQIRUPDWLRQVFLHQFHSURJUDPV
participated in lectures on product knowledge, safety and compliance, and in practical training at the plant, over a period of three months.

DIC Report 2022

160

Harmony with the Community and Social Contributions

Kawamura Memorial DIC Museum of Art
The Kawamura Memorial DIC Museum of Art, located adjacent to the Central Research Laboratories in Sakura, Chiba Prefecture, was established
LQWRSXEOLFO\H[KLELWZRUNVRIDUWFROOHFWHGE\',&&RUSRUDWLRQDQGLWVDI¿OLDWHV7KHPXVHXP¶VH[WHQVLYHFROOHFWLRQVSDQVQXPHURXVJHQUHV
encompassing an oil portrait by Rembrandt, a rarity in Japan, as well as works by impressionists such as Monet and Renoir; modern European artists
such as Picasso and Chagall; early modern, modern and postwar Japanese artists; and luminaries of late-20th century American art, including Mark
Rothko, Cy Twombly and Frank Stella. In addition to a standing exhibit from its permanent collection, the museum stages special exhibitions multiple
times a year to promote a deeper understanding of the works in its collection.
$QRWKHUDSSHDOLQJDVSHFWRIWKHPXVHXPLVLWVORFDWLRQRQDOXVKO\IRUHVWHGKHFWDUHVLWHDOLYHZLWKVHDVRQDOÀRZHUVDQGIROLDJHWKDWKDVEHHQ
open to the public since the museum’s establishment. A total of 250 cherry trees—10 varieties in total—blossom every spring while in summerZLOGÀRZHUVRIDOOFRORUVEORRPSURIXVHO\,Q¿VFDO\HDUWKHPXVHXPZLOOFHOHEUDWHLWVUGDQQLYHUVDU\7ZRVSHFLDOH[KLELWLRQVDUHSODQQHG³&RORU)LHOGV´LQWURGXFHVDSSUR[LPDWHO\³&RORU)LHOG´SDLQWLQJVIURPWKHDFFODLPHGFROOHFWLRQRI&DQDGD¶V$XGUH\DQG'DYLG0LUYLVK7KLVLV-DSDQ¶V¿UVWHYHUH[KLELWLRQRIWKHPRVWLPSRUWDQW
works in this style of abstract art, which features large canvases dominated by broad expanses of color. “Affections: Objects of Man Ray” will feature
DURXQGREMHFWVSURGXFHGE\0DQ5D\RYHUKLVOLIHWLPHWRJHWKHUZLWKUHODWHGSDLQWLQJVSKRWRJUDSKV¿OPVDQGRWKHULWHPVE\WKHDUWLVW,Q¿VFDO\HDUWKHPXVHXPZDVDEOHWRUHVWDUWUHJXODUO\VFKHGXOHGJXLGHGWRXUVZKLFKLWKDGSDXVHGWHPSRUDULO\DIWHUWDNLQJH[WHQVLYHVWHSVto prevent the spread of COVID-19. The museum also continued to offer its “mite!” interactive art-viewing experience online. Looking ahead, theKawamura Memorial DIC Museum of Art will continue to plan and stage exhibitions centered around works from its collection. The museum will also
promote social contribution activities and enhance its digital presence with a view to encouraging communication with the community.

Museum entrance hallOutdoor terrace

Social Contribution Activities by Overseas Group Companies',&$VLD3DFLÀF,QWHUQVKLSVSingapore-based DIC Asia Pacific recently launched an internship program for students at major local universities, including the National University ofSingapore and Nanyang Technological University, as well as other institutes of higher education such as Singapore Polytechnic. In 2021, the company hired
HLJKWLQWHUQVWRSURYLGHZRUNH[SHULHQFHSHUWLQHQWWRWKHLUDUHDVRILQWHUHVWLQFOXGLQJSURFXUHPHQW¿QDQFHDQGFRUSRUDWHFRPPXQLFDWLRQV7KURXJKWKLV
program, the DIC Group aims to help foster human resources capable of playing an active role in global business settings.

Supporting Humanitarian Efforts for Ukraine,Q¿VFDO\HDU',&GRQDWHGDSSUR[LPDWHO\86WRKHOSSURYLGHKXPDQLWDULDQDVVLVWDQFHIRUUHIXJHHVIURPWKHFXUUHQWFULVLVLQ8NUDLQH,Q
addition to a donation to the United Nations High Commissioner for Refugees (UNHCR)—the UN Refugee Agency—the Company set up a joint fund with
6XQ&KHPLFDOZLWKERWKFRPSDQLHVFRQWULEXWLQJDSSUR[LPDWHO\¼7KLVIXQGIRUZDUGVGRQDWLRQVWRYDULRXVQRQSUR¿WRUJDQL]DWLRQVIRUWKHSURYLVLRQRIDVVLVWDQFHDQGUHOLHILQFOXGLQJKRXVLQJDQGJLIWVIRUFKLOGUHQWRHPSOR\HHVRIWKH',&*URXSDQGFXVWRPHUFRPSDQLHVZKRKDYHÀHGWR3RODQG

Matching Gift Program
DIC has a matching gift program in Japan whereby it matches the total amount collected through anannual year-end fundraising drive spearheaded by its employees’ union. Funds raised through the2021 drive and matching gift program were donated to 19 children’s homes and facilities providing
support for disabled individuals.

DIC Report 2022

161

SDGs Goal 17

Communication with Stakeholders
Promoting Disclosure and Communication

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

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

Ties withshareholders
and investors

Ties withbusiness
partners

Ties with society

Ties with employees

Ties with the media

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

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

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

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

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

Deepen understanding
through effective publicity,
advertising and othercommunications efforts.

● Websites● Product pamphlets● Digital marketing● Corporate profile DVDs
● DIC Report● Corporate PR film
● News releases● Television advertisements● Websites● Press conferences● Quarterly results● DIC Group Sustainable Procurement● DIC Plaza● Press conferences● Interviews with

●Yuka Shoken Hokokusho● Supplier sustainable procurement● Websites● Site reports● &RUSRUDWHSUR¿OH'9'V● DIC Report● News releases● Television advertisements● Production facility tours● Participation in projects involving● Labor–management councils● Results presentations

Ties with customers

Basic approach

Communications
tools

announcements(¿QDQFLDOGLVFORVXUHGRFXPHQWUHTXLUHG
of listed companies in Japan)● Timely disclosure● Notice of Convocation of WKH$QQXDO*HQHUDO0HHWLQJ
of Shareholders● Shareholder newsletters● &RUSRUDWHSUR¿OH'9'V

Guidelines● DIC Group Green Procurement

Guidelines

questionnaires● Feedback sheets● &RQÀLFW0LQHUDOV5HSRUWLQJ

Template● DIC Report(in-house newsletter)● Intranet● DIC Pocket Book LQKRXVH*URXSGDWD¿OH ● DIC Report● Corporate PR film
● News releases● Television
advertisements● Global linkage● Branding questionnaire

journalists● DIC Report● News releases● Television

advertisements● DIC Report● News releases● Television advertisements● Sales activities● Participation in

Opportunities forcommunication

exhibitions● Lectures on the SDGs
for customers● Shareholders’ meetings● Results presentations● IR conferences● IR meetings● DIC IR Day● ,QGLYLGXDOLQYHVWRUEULH¿QJV● ESG Presentations● On-site inquiries

collaboration among industrial
concerns, government bodies andacademic institutions● Participation in community events● Environmental monitoring● Plant Bon Odori

DIC Report 2022

162

for employees● Presentations on the DIC Group
Code of Business Conduct● Sustainability presentations● DIC Family Day● Plant tours for employee families● Caravan workshops● Newspapers● Economic publications● Industry publications

Communication with Stakeholders| Ties with Customers
With the aim of becoming a unique global company that is trusted by society, the DIC Group prioritizes and works to strengthen communications
with its customers. Principal avenues of communication include participating in exhibitions, events and lectures, providing support for business
SDUWQHUVDQGKROGLQJZRUNVKRSV,Q¿VFDO\HDUWKHVSUHDGRI&29,'RQFHDJDLQHQFRXUDJHGWKH*URXSWRXVHDQRQOLQHRUK\EULGIRUPDWIRU
H[KLELWLRQVSUHVHQWDWLRQVDQGRWKHUHYHQWV7KH*URXSFKRVHDK\EULGIRUPDWIRUWKH7RN\R,QWHUQDWLRQDO3DFNDJLQJ([KLELWLRQ 72.<23$&.
 KHOGLQ)HEUXDU\FRPELQLQJDSK\VLFDOERRWKDQGDYLUWXDOH[KLELWLRQ6LPLODUO\IRUWKH&RVPHWLF,QJUHGLHQWV 7HFKQRORJ\([KLELWLRQ &,7( -DSDQH[KLELWLRQLQ0D\WKH*URXSDOVRRSHQHGDQRQOLQHFRVPHWLFVPDWHULDOVVKRZURRPWKDWLQFOXGHGDQXPEHURIRQOLQHYLGHRSUHVHQWDWLRQV,QDGGLWLRQWKH*URXSXVHGVRFLDOPHGLDWRLQWURGXFHH[DPSOHVRISURGXFWXVH)RUWKH6XVWDLQDEOH0DWHULDO([SR 6860$ LQ'HFHPEHUWKH*URXS
H[SDQGHGLWVYLUWXDOH[KLELWLRQIRUWKHEHQH¿WRISHRSOHZKRZHUHXQDEOHWRDWWHQGWKHH[KLELWLRQLQSHUVRQ6XQ&KHPLFDORIWKH8QLWHG6WDWHVZKLFKRYHUVHHV*URXSRSHUDWLRQVLQWKH$PHULFDVDQG(XURSHSDUWLFLSDWHGLQHYHQWVVXFKDVWKHYLUWXDO
,1)2)/(;LQ0D\DQG,QQRYDWH7H[WLOH,QQRYDWLRQ:HHNLQ2FWREHUDOORZLQJLWWRSUHVHQWLWVOLQHXSRIVXVWDLQDEOHSDFNDJLQJSURGXFWVDV
well as its new jet inks for printing on textiles and other products, to a global audience. In November, Sun Chemical began offering “What’s IN Asia,”
an online trends program highlighting the latest inspirations in the Asian beauty industry.
,Q-XO\WKH',&*URXSODXQFKHGDQHZFRPPRQFRDWLQJUHVLQVSURGXFW¿QGHUZKLFKLVDYDLODEOHLQ-DSDQHVH(QJOLVKDQG&KLQHVHRQLWV
global website, making it easy for users to identify the right product for their needs from among a range of more than 300 coating resins and to
FRQ¿UPUHFRPPHQGHGDSSOLFDWLRQVNH\IHDWXUHVDQGRWKHUEDVLFSURGXFWLQIRUPDWLRQ7RPHDVXUHWKHEHQH¿WVRISDUWLFLSDWLRQLQWKHDIRUHPHQWLRQHGH[KLELWLRQVDQGRIHIIRUWVWREXLOGUHODWLRQVKLSVRIWUXVWZLWKFXVWRPHUVWKH*URXS
continued to employ a system that looks at the portion of sales accounted for by repeat customers, that is, its customer retention rate, which is a key
indicator of customer satisfaction. The Company thus continues working unceasingly to bolster its grasp of and improve customer satisfaction.

Digital Marketing
7KH',&*URXSDFWLYHO\SURPRWHVGLJLWDOPDUNHWLQJDFWLYLWLHV,QDGGLWLRQWRVLJQL¿FDQWO\H[SDQGLQJWKHFRQWHQWRILWVJOREDOZHEVLWHWKH*URXSKHOGPXOWLSOHRQOLQHH[KLELWLRQVDLPHGDWKHOSLQJFXVWRPHUVDGGUHVVQHHGVLQDYDULHW\RIVSHFL¿FDUHDV7KH*URXSDOVRVKDUSO\LQFUHDVHG
its use of electronic tools, including email and third-party websites, to communicate with customers. In fiscal year 2022, the Group willcontinue to enhance the content of its global website, as well as to expand digital efforts to reach customers, including participating in online
exhibitions in new areas and holding webinars.

| Ties with Shareholders and Investors
The DIC Group has established a policy for promoting constructive dialogue with shareholders and strives to ensure fair, appropriate and timely
disclosure and to communicate closely with shareholders and investors, as well as to raise awareness of its ESG initiatives. Views and concerns
expressed are shared with management and incorporated into operations as appropriate.
:KLOHRSSRUWXQLWLHVIRULQSHUVRQFRPPXQLFDWLRQZLWKVKDUHKROGHUVDQGLQYHVWRUVLQ¿VFDO\HDUZHUHUHVWULFWHGE\WKHSDQGHPLFWKH',&*URXSZRUNHGWRVHFXUHRSSRUWXQLWLHVIRUUHPRWHGLDORJXH1RWDEOHVWHSVLQFOXGHGKROGLQJ¿QDQFLDOUHVXOWVSUHVHQWDWLRQVIRULQVWLWXWLRQDOLQYHVWRUVand securities analysts four times each fiscal year using teleconferencing and web conferencing systems. For institutional investors in North$PHULFD(XURSHWKH35&DQGWKH$VLD±3DFL¿FUHJLRQWKH*URXSKHOG,5PHHWLQJVYLDWHOHFRQIHUHQFHWRHQFRXUDJHJUHDWHUIDPLOLDULW\ZLWKLWV
EXVLQHVVVWUDWHJLHV7KH*URXSDOVRKHOGLWV¿UVWRQOLQH(6*SUHVHQWDWLRQIRULQVWLWXWLRQDOLQYHVWRUVDQGVHFXULWLHVDQDO\VWVWRHQKDQFHGLVFORVXUHUHJDUGLQJLWVVXVWDLQDELOLW\SURJUDP2WKHUDFWLYHHIIRUWVWRDGYDQFHFRPPXQLFDWLRQZLWKGRPHVWLFDQGRYHUVHDVLQYHVWRUVLQFOXGHGRQHRQRQH
meetings conducted in person or by telephone.
The DIC Group also continued to actively provide information for individual investors, posting a video of an online asset management fair, as wellas various corporate information videos, to encourage a deeper understanding of the Group’s business activities and ESG initiatives among investorsof all ages. These videos have been viewed approximately 4,400 times to date.
In addition, the Group continued to actively provide information for investors with whom direct communication was not possible, publishing
WUDQVFULSWVDQGYRLFHUHFRUGLQJVRILWV(6*DQG¿QDQFLDOUHVXOWVSUHVHQWDWLRQVRQLWVJOREDOZHEVLWH,QGLFDWLYHRIWKHKLJKPDUNVJLYHQWKHVHHIIRUWVLQ¿VFDO\HDU',&ZRQDJUDQGSUL]HLQ'DLZD,QYHVWRU5HODWLRQV&R/WG¶V,QWHUQHW,5$ZDUGVDQGZDVLQFOXGHGLQ1LNNR,QYHVWRU5HODWLRQV&R
Ltd.’s Ranking of Japanese Listed Companies’ Websites, both for the second consecutive year. The Company also won a grand prize in the newly
established Sustainability category of the aforementioned Daiwa Investor Relations’ competition.

*UDQGSUL]H'DLZD,QYHVWRU5HODWLRQV¶,QWHUQHW,5$ZDUGV(Sustainability category)*UDQGSUL]H'DLZD,QYHVWRU5HODWLRQV¶,QWHUQHW,5$ZDUGVDIC Report 2022

163

Communication with Stakeholders| Ties with Society
In addition to the business community, the DIC Group strives to communicate effectively with ordinary consumers, including students.

Kawamura Memorial DIC Museum of Art$IWHUDKDOI\HDUFORVXUHIRUPDLQWHQDQFHWKH.DZDPXUD0HPRULDO',&0XVHXPRI$UWUHRSHQHGZLWKDVSHFLDO&ROOHFWLRQ9LHZSRLQWVHULHV¶
H[KLELWLRQWLWOHG³&KULVWRDQG-HDQQH&ODXGH:UDS3DFN6WDFN´$VHFRQGVSHFLDOH[KLELWLRQ³0LQLPDO&RQFHSWXDO'RURWKHHDQG.RQUDG)LVFKHUDQGWKH$UW6FHQHVLQWKHVDQGV´FRRUJDQL]HGE\.XQVWVDPPOXQJ1RUGUKHLQ:HVWIDOHQWKHDUWPXVHXPRIWKH*HUPDQVWDWHRI1RUWK5KHLQ±:HVWSKDOLDEHJDQLQWKHDXWXPQ,QDGGLWLRQWRPXOWLSOHH[DPSOHVRI0LQLPDODQG&RQFHSWXDODUWWKHH[KLELWLRQ
featured valuable materials related to their creation, including letters and instructions, providing an opportunity for visitors to look back at two
key trends that had a major impact on present-day art.
,QILVFDO\HDUWKHPXVHXPZDVDEOHWRUHVWDUWUHJXODUO\VFKHGXOHGJXLGHGWRXUVZKLFKLWKDGSDXVHGWHPSRUDULO\DIWHUWDNLQJ
H[WHQVLYHVWHSVWRSUHYHQWWKHVSUHDGRI&29,'7KHPXVHXPDOVRFRQWLQXHGWRRIIHULWV³PLWH´LQWHUDFWLYHDUWYLHZLQJH[SHULHQFHRQOLQH
7KHQHZRXWGRRUYLVLWRUORXQJHFRPSOHWHGLQ¿VFDO\HDUSURYLGHGDZHOFRPHVSDFHZKHUHSHRSOHFDQHDWDQGGULQNDQGZDLWIRUWKH
shuttle buses that run between the museum and local railway stations.

Calendar,QDGGLWLRQWRIHDWXULQJZRUNVIURPWKHFROOHFWLRQRIWKH.DZDPXUD0HPRULDO',&0XVHXPRI$UW',&¶VRULJLQDOFDOHQGDUIRU²WLWOHG
VLPSO\³&DOHQGDU5R\/LFKWHQVWHLQ´²LVGHVLJQHGZLWKDFRORUVFKHPHFRPSDWLEOHZLWK&8'SULQWHGZLWKHQYLURQPHQWIULHQGO\LQNVDQG
produced in a manner that is environmentally sound and conducive to recycling, thereby leveraging multiple key DIC Group technologies.
',&¶VFDOHQGDUUHFHLYHGDQLQFHQWLYHDZDUG FDWHJRU\ LQWKHUG$OO-DSDQ&DOHQGDU&RPSHWLWLRQ7KH&RPSDQ\ZLOOFRQWLQXHWRSODQdesign and produce attractive, useful original calendars that earn high marks from stakeholders.

Corporate Advertising',&FRQWLQXHGWRSURPRWHDFWLYHEUDQGLQJLQLWLDWLYHVLQOLQHZLWKLWV³&RORU &RPIRUW´EUDQGVORJDQ7KH&RPSDQ\SURGXFHGDVL[WKLQVWDOOPHQWRILWVEUDQGDGYHUWLVHPHQWIRUWHOHYLVLRQIHDWXULQJDFWUHVV5LKR<RVKLRNDWKDWSXWVWKHVSRWOLJKWRQ',&*URXSSURGXFWVWKHYDOXHLWSURYLGHVWRVRFLHW\
DQGLWVFRPPLWPHQWDVDFRUSRUDWHHQWLW\&DSLWDOL]LQJRQWKHLQFUHDVLQJGLYHUVL¿FDWLRQRIPHGLD',&DOVRIRFXVHGHIIRUWVRQGLJLWDODGYHUWLVLQJ

Website and Social Media
7RHQKDQFHFRPPXQLFDWLRQZLWKVWDNHKROGHUV',&XQL¿HGWKHGHVLJQDQGH[SDQGHGWKHFOHDUO\ZRUGHG
content of DIC Group company websites. As noted in “Ties with Shareholders and Investors” above,
the Company’s website- and social media–related initiatives continue to be evaluated highly by externalorganizations. DIC is also working to further improve website accessibility to overseas stakeholders.
The expansion of ESG information is another focus of DIC’s website improvement efforts. In addition
to explaining its sustainability policy in an easy-to-understand manner, the Company is increasing
its publication of related quantitative data in response to requests for information from a variety of
VWDNHKROGHUV,QILVFDO\HDU',&ZRQDJUDQGSUL]HLQWKHQHZ6XVWDLQDELOLW\FDWHJRU\RI'DLZDInvestor Relations’ Internet IR Awards.

DIC’s global website

Communication with Local Communities'HVSLWHUHVWULFWLRQVRQFRPPXQLW\IRFXVHGHYHQWVGXHWR&29,'',&*URXSFRPSDQLHVSURPRWHGDYDULHW\RILQLWLDWLYHVZKLOHWDNLQJ
stringent steps to prevent the spread of infection. Examples included a nutrition education class titled “Exploring the Secrets of the Colorof Sweets” offered by DIC Lifetec Co., Ltd., at the Shibuya Children’s Science Center Hachi Lab, a facility in Tokyo providing a variety of
H[WUDFXUULFXODUVFLHQFHWHFKQRORJ\DQGPDWKHPDWLFVSURJUDPV$WWKH.DZDPXUD0HPRULDO',&0XVHXPRI$UWVWDIIFRQWLQXHGWRSODQWWUHHV
as part of a program to create a wooded area where visitors can relax within an ecosystem that supports the coexistence of wild birds andsmall animals.

| Monetary Contributions and Other Expenditures
The DIC Group conducts its operations while maintaining relationships with a broad range of industry associations and other external organizations.

Monetary Contributions
7KH',&*URXS¶VPRQHWDU\FRQWULEXWLRQVLQILVFDO\HDUDPRXQWHGWRDSSUR[LPDWHO\PLOOLRQ,Q-DSDQPRQHWDU\FRQWULEXWLRQVLQFOXGHGDGHVLJQDWHGGRQDWLRQRIURXJKO\PLOOLRQWRVXSSRUWHGXFDWLRQDQGUHVHDUFKDQGDURXQGPLOOLRQWRVSHFL¿HGSXEOLFVHUYLFH
promotion corporations and for other social contribution–related purposes. The Group made no contributions to political organizations during
the period.

DIC Report 2022

164

Communication with Stakeholders

Participation in Industry Organizations
In its capacity as a manufacturer of fine chemicals, the DIC Group participates in a variety of activities as a member of key industry
organizations, including providing specialized information, conducting investigations and collecting materials. In Japan, the Group is a
PHPEHURIRUJDQL]DWLRQVUDQJLQJIURPWKH-&,$WKH.HLGDQUHQ -DSDQ%XVLQHVV)HGHUDWLRQ WKH-DSDQ'\HVWXIIDQG,QGXVWULDO&KHPLFDOV$VVRFLDWLRQ -',&$ WKH-DSDQ7KHUPRVHWWLQJ3ODVWLFV,QGXVWU\$VVRFLDWLRQ -73,$ DQGWKH-DSDQ3ULQWLQJ,QN0DNHUV$VVRFLDWLRQ -3,0$ 
WRWKH*OREDO&RPSDFW1HWZRUN-DSDQ *1&- ,Q¿VFDO\HDUH[SHQGLWXUHVIRUSDUWLFLSDWLRQLQYDULRXVH[WHUQDODFWLYLWLHV PHPEHUVKLSGXHV DFURVVWKHHQWLUHJOREDO',&*URXSDPRXQWHGWRDSSUR[LPDWHO\PLOOLRQ| Ties with Employees
The DIC Group continues to promote a variety of initiatives to facilitate active communication with Group employees around the world, including
establishing an internal Group chat function, a Group intranet and other new digital channels, thereby enhancing its communications infrastructure.

Global Communications
DIC recently revised The DIC Way, which represents the DIC Group’s fundamental management philosophy, to enhance understanding
among Group employees overseas. A video was also produced to ensure The DIC Way permeates the entire organization, as well as toencourage a sense of unity. In addition, a new digital communication channel was established to convey information on the outstanding
initiatives and actions by employees across the global DIC Group. The Group also compiled branding guidelines to ensure effective control of
the DIC brand worldwide, as well as standardized materials templates, a key point of contact with stakeholders around the world.

In-House Newsletter,Q-DQXDU\',&ODXQFKHGDQHZGLJLWDOLQKRXVHQHZVOHWWHUWLWOHGBetter Tomorrows with the goal of improving internal communications.
With articles not only from DIC in Japan but also from DIC Group companies overseas, Better Tomorrows highlights DIC Group technologies,
products and businesses, serving as an important way for employees everywhere to share information on their activities, as well as on theGroup’s corporate culture.

| Ties with the MediaDIC is reinforcing its publicity activities as a means of communicating with its many stakeholders,
LQFOXGLQJLWVFXVWRPHUVVKDUHKROGHUVLQYHVWRUVDQGORFDOFRPPXQLWLHV7KLVUHÀHFWVLWVFRQYLFWLRQ
that promoting active disclosure that facilitates objective media coverage is vital to securing
stakeholders’ understanding of the DIC Group and its operations, and to promoting a sense of
XQLW\DPRQJHPSOR\HHV,Q¿VFDO\HDU',&SXWRXWQHZVUHOHDVHVUHJDUGLQJWKHDFTXLVLWLRQ
of a business, new products, investments in facilities, operating results and sustainability, among
RWKHUV7KH&RPSDQ\DOVRGLVVHPLQDWHGLQIRUPDWLRQDERXWWKH*URXS¶VLQLWLDWLYHVLQWKH¿JKWDJDLQVW
&29,'XQGHUVFRULQJLWVFRPPLWPHQWDVDFKHPLFDOVPDQXIDFWXUHUWRKHOSSURYLGHVDIHW\DQG
peace of mind for people everywhere.

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

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

83

69| External Assessments,QILVFDO\HDU',&ZDVVHOHFWHGIRULQFOXVLRQLQWKH'RZ-RQHV6XVWDLQDELOLW\,QGLFHV$VLD3DFLILF,QGH[DOHDGLQJEHQFKPDUNIRUVXVWDLQDELOLW\LQLWLDWLYHVLQWKH$VLD±3DFL¿FUHJLRQDQGSDUWRIWKH'RZ-RQHV6XVWDLQDELOLW\,QGLFHV '-6, DJOREDOIDPLO\RILQGLFHVIRU
socially responsible investment (SRI). This was the seventh straight year that DIC was selected for inclusion.
',&ZDVDOVRVHOHFWHGDVDFRQVWLWXHQWRIWKH06&,-DSDQ(6*6HOHFW/HDGHUV,QGH[²DQ(6*LQYHVWPHQWLQGH[RIOHDGLQJ-DSDQHVHFRPSDQLHV²DQGWKH06&,-DSDQ(PSRZHULQJ:RPHQ,QGH[ :,1 ERWKGHYHORSHGE\86EDVHG06&,,QFIRUWKH¿IWKFRQVHFXWLYH\HDU
and the FTSE4Good Index and the FTSE Blossom Japan Index for the fourth consecutive year. In addition, DIC was selected for inclusion
LQWKH6 3-3;&DUERQ(IILFLHQW,QGH[ZKLFKZHLJKWVFRQVWLWXHQWVXVLQJGLVFORVXUHRIHQYLURQPHQWDOLQIRUPDWLRQDQGFDUERQHIILFLHQF\
FDUERQHPLVVLRQVSHUXQLWRIUHYHQXH ZLWKLQDQLQGXVWU\JURXSHDUQLQJWKHVHFRQGKLJKHVW³´UDWLQJIRUWKHODWWHUIDFWRU,Q0DUFK
WKH&RPSDQ\ZDVFKRVHQIRUWKH¿UVWWLPHIRULQFOXVLRQLQ)76(5XVVHOO¶V)76(%ORVVRP-DSDQ6HFWRU5HODWLYH,QGH[ZKLFKFRPSULVHV
Japanese companies demonstrating outstanding ESG practices in their respective sectors.
,Q¿VFDO\HDU',&ZDVWKXVRQFHDJDLQLQFOXGHGLQWKH¿YH(6*LQYHVWPHQWLQGLFHVWDUJHWLQJ-DSDQHVHHTXLWLHVXVHGE\-DSDQ¶V
*RYHUQPHQW3HQVLRQ,QYHVWPHQW)XQG *3,) ZKLFKVHHNVVWRFNLQGLFHVFRPSULVLQJFRPSDQLHVZLWKRXWVWDQGLQJ(6*SHUIRUPDQFHV 06&,
-DSDQ(6*6HOHFW/HDGHUV,QGH[:,1)76(%ORVVRP-DSDQ,QGH[)76(%ORVVRP-DSDQ6HFWRU5HODWLYH,QGH[DQG6 3-3;&DUERQ
(I¿FLHQW,QGH[ ',&¶V(6*SHUIRUPDQFHDOVRUHVXOWHGLQLWEHLQJVHOHFWHGIRULQFOXVLRQLQWKH61$06XVWDLQDELOLW\,QGH[DFRQVWLWXHQW
LQGH[WKDWLVUHYLVHGDQQXDOO\DQGXWLOL]HGE\6RPSR-DSDQ1LSSRQNRD$VVHW0DQDJHPHQW&R/WG 61$0 ¶V6RPSR6XVWDLQDELOLW\,QGH[DIC Report 2022

165

Communication with Stakeholders

',&UHSRUWVWRWKH&'3DJOREDOQRQSUR¿WRUJDQL]DWLRQWKDWZRUNVRQEHKDOIRILQVWLWXWLRQDOLQYHVWRUVWRFROOHFWDQGDQDO\]HLQIRUPDWLRQRQ FRUSRUDWH LQLWLDWLYHV WR DGGUHVV FOLPDWH FKDQJH DQG RWKHU HQYLURQPHQWDO LVVXHV ,Q ILVFDO \HDU  ',& HDUQHG D VFRUH RI %
0DQDJHPHQW/HYHO LQWKH&'3SURJUDP¶VFOLPDWHFKDQJHDQGZDWHUVHFXULW\VHFWRUV,QUHFRJQLWLRQRILWVVXSHUEHIIRUWVWRH[SDQGFDUHHURSSRUWXQLWLHVIRUZRPHQ',&ZDVVHOHFWHGDVD1DGHVKLNR%UDQGIRU¿VFDO\HDUWKHIRXUWKVWUDLJKW\HDULWZDVKRQRUHGXQGHUWKLVSURJUDPZKLFKLVVSRQVRUHGE\-DSDQ¶V0LQLVWU\RI(FRQRP\7UDGHDQG,QGXVWU\and the Tokyo Stock Exchange (TSE).
)RUWKHILIWKFRQVHFXWLYH\HDU',&DQG',&*UDSKLFVHDUQHG FHUWLILFDWLRQLQWKHODUJHHQWHUSULVHFDWHJRU\RIWKH +HDOWK 
3URGXFWLYLW\2XWVWDQGLQJ(QWLWLHV5HFRJQLWLRQ3URJUDP GXEEHGWKH³:KLWH´ ZKLFKLVRUJDQL]HGE\WKH0LQLVWU\RI7UDGH(FRQRP\
DQG,QGXVWU\DQG1LSSRQ.HQNR.DLJL ³-DSDQ+HDOWK&RXQFLO´ :LWKWKHDLPRIGULYLQJVXVWDLQDEOHJURZWKLQ¿VFDO\HDUWKH',&*URXSFRQWLQXHGWRSDUWLFLSDWHLQDQXPEHURI8QLWHG1DWLRQV*OREDO&RPSDFW 81*& ZRUNLQJJURXSV (6*&UHDWLQJ6KDUHG9DOXH &69 *&,QWHUQDO3URPRWLRQ5HSRUWLQJDQG(QYLURQPHQWDO0DQDJHPHQW 

DIC Report 2022

166

',&5HSRUWDQGWKH*5,6WDQGDUGV',&5HSRUWZDVSUHSDUHGLQFRPSOLDQFHZLWKWKH*5,6WDQGDUGV¶³&RUH´RSWLRQ
6WDQGDUG'LVFORVXUHV3DJH V HWF

5HODWHGLQIRUPDWLRQ5HDVRQVIRURPLVVLRQ

ISO 26000

102*HQHUDO'LVFORVXUHVGRI 102:*HQHUDO'LVFORVXUHV1

2UJDQL]DWLRQDOSURÀOH

102-1

1DPHRIWKHRUJDQL]DWLRQ

11 (The DIC Group: A Global Powerhouse)

ʋ

102-2

$FWLYLWLHVEUDQGVSURGXFWVDQGVHUYLFHV

5–6 (The DIC Group’s Approach to Value Creation),
25–31 (The DIC Group’s Business Portfolio)

ʋ

102-3

/RFDWLRQRIKHDGTXDUWHUV

11 (The DIC Group: A Global Powerhouse)

ʋ

102-4

/RFDWLRQRIRSHUDWLRQV

11 (The DIC Group: A Global Powerhouse)
2YHUVHDVVXEVLGLDULHVDQGDI¿OLDWHVKWWSVZZZGLFJOREDOFRPHQDERXWRYHUVHDVKWPO'RPHVWLFVXEVLGLDULHVDQGDI¿OLDWHVKWWSVZZZGLFJOREDOFRPHQDERXWVXEVLGLDULHVKWPO

ʋ

102-5

2ZQHUVKLSDQGOHJDOIRUP

11 (The DIC Group: A Global Powerhouse)

ʋ

102-6

0DUNHWVVHUYHG

25–31 (The DIC Group’s Business Portfolio),
120 of the Annual Securities Report

ʋ

102-7

6FDOHRIWKHRUJDQL]DWLRQ

11 (The DIC Group: A Global Powerhouse), )LQDQFLDO,QIRUPDWLRQ

ʋ

102-8

,QIRUPDWLRQRQHPSOR\HHVDQGRWKHUZRUNHUV

129 (Basic Personnel Statistics (DIC))

6.4
6.4.3

102-9

6XSSO\FKDLQ

± 6XVWDLQDEOH3URFXUHPHQW

102-106LJQLILFDQWFKDQJHVWRWKHRUJDQL]DWLRQDQGLWV
VXSSO\FKDLQ

7KHUHZHUHQRVLJQL¿FDQWFKDQJHV

102-113UHFDXWLRQDU\SULQFLSOHRUDSSURDFK

± (QYLURQPHQW6DIHW\DQG+HDOWK (6+6.2

102-12([WHUQDOLQLWLDWLYHV

 (QVXULQJ',&5HPDLQVD*OREDOO\7UXVWHG&RUSRUDWH&LWL]HQZLWKD3URXG5HSXWDWLRQ

6.2

 3DUWLFLSDWLRQLQ,QGXVWU\2UJDQL]DWLRQV

6.2

ʋ

102-130HPEHUVKLSRIDVVRFLDWLRQV

26WUDWHJ\

102-14

6WDWHPHQWIURPVHQLRUGHFLVLRQPDNHU

± $0HVVDJHIURPWKH3UHVLGHQW

6.2

102-15.H\LPSDFWVULVNVDQGRSSRUWXQLWLHV

 2YHUYLHZRI0DWHULDOLW\

6.2

3(WKLFVDQGLQWHJULW\

102-16

9DOXHVSULQFLSOHVVWDQGDUGVDQGQRUPVRIEHKDYLRU

 7KH',&:D\  %DVLF6XVWDLQDELOLW\3ROLF\ 
71 (The DIC Group Code of Business Conduct)
KWWSVZZZGLFJOREDOFRPSGIFVUSKLORVRSK\FRPSOLDQFHFRGHBRIBEXVLQHVVBFRQGXFWBHQSGIʋ

102-17

0HFKDQLVPVIRUDGYLFHDQGFRQFHUQVDERXWHWKLFV (VWDEOLVKLQJDQG2SHUDWLQJD:KLVWOH%ORZLQJ6\VWHP

ʋ4*RYHUQDQFH

102-18*RYHUQDQFHVWUXFWXUH

59–60 (Corporate Governance), 6\VWHPIRU3URPRWLQJ6XVWDLQDELOLW\,QLWLDWLYHV

6.2

102-19'HOHJDWLQJDXWKRULW\

 6\VWHPIRU3URPRWLQJ6XVWDLQDELOLW\,QLWLDWLYHVʋ

102-20([HFXWLYHOHYHOUHVSRQVLELOLW\IRUHFRQRPLF
HQYLURQPHQWDODQGVRFLDOWRSLFV 6\VWHPIRU3URPRWLQJ6XVWDLQDELOLW\,QLWLDWLYHVʋ

102-21&RQVXOWLQJVWDNHKROGHUVRQHFRQRPLF
HQYLURQPHQWDODQGVRFLDOWRSLFV± &RPPXQLFDWLRQZLWK6WDNHKROGHUV

6.2

102-22&RPSRVLWLRQRIWKHKLJKHVWJRYHUQDQFHERG\DQGLWVFRPPLWWHHV

59–64 (Corporate Governance)

6.2

102-23&KDLURIWKHKLJKHVWJRYHUQDQFHERG\

± 'LUHFWRUV$XGLW 6XSHUYLVRU\%RDUG0HPEHUVDQG([HFXWLYH2IILFHUV

6.2

102-24

1RPLQDWLQJDQGVHOHFWLQJWKHKLJKHVWJRYHUQDQFHERG\

 &RUSRUDWH*RYHUQDQFH ± 'LUHFWRUV$XGLW 6XSHUYLVRU\%RDUG0HPEHUVDQG
([HFXWLYH2IILFHUV ±RIWKH$QQXDO6HFXULWLHV5HSRUW

6.2

102-25&RQIOLFWVRILQWHUHVW

57–58 of the Annual Securities Report

6.2

102-26

5ROHRIWKHKLJKHVWJRYHUQDQFHERG\LQVHWWLQJSXUSRVHYDOXHVDQGVWUDWHJ\

59–60 (Corporate Governance), 6\VWHPIRU3URPRWLQJ6XVWDLQDELOLW\,QLWLDWLYHVʋ

102-27&ROOHFWLYHNQRZOHGJHRIWKHKLJKHVWJRYHUQLQJ
ERG\

 %LRGLYHUVLW\  ,QLWLDWLYHV$LPHGDW([SDQGLQJ&DUHHU2SSRUWXQLWLHVIRU:RPHQʋ

102-28(YDOXDWLQJWKHKLJKHVWJRYHUQDQFHERG\·VSHUIRUPDQFH (YDOXDWLQJWKHRIWKH(IIHFWLYHQHVV%RDUGRI'LUHFWRUV

6.2

102-29,GHQWLI\LQJDQGPDQDJLQJHFRQRPLF
HQYLURQPHQWDODQGVRFLDOLPSDFWV

102-30(IIHFWLYHQHVVRIULVNPDQDJHPHQWSURFHVVHV

 $0HVVDJHIURPWKH3UHVLGHQW  2YHUYLHZRI6XVWDLQDELOLW\  'LVDVWHU3UHYHQWLRQ  +XPDQ5HVRXUFHV0DQDJHPHQW  0DQDJHPHQWRI*RYHUQDQFHDQG&RPSOLDQFH5LVNV

102-315HYLHZRIHFRQRPLFHQYLURQPHQWDODQGVRFLDOWRSLFV

59–64(Corporate Governance)

102-32+LJKHVWJRYHUQDQFHERG\·VUROHLQVXVWDLQDELOLW\ 7KH6XVWDLQDELOLW\&RPPLWWHHZKLFKLQFOXGHVWKHUHSUHVHQWDWLYHGLUHFWRUVUHSRUWLQJDSSURYHVVXVWDLQDELOLW\UHSRUWLQJEHIRUHLWLVPDGHSXEOLF

± 2YHUYLHZRI6XVWDLQDELOLW\  2YHUYLHZRI0DWHULDOLW\

6.2

± 2YHUYLHZRI6XVWDLQDELOLW\  2YHUYLHZRI0DWHULDOLW\

ʋ

6.2
± 2YHUYLHZRI6XVWDLQDELOLW\  2YHUYLHZRI0DWHULDOLW\

ʋ

102-33&RPPXQLFDWLQJFULWLFDOFRQFHUQV (VWDEOLVKLQJDQG2SHUDWLQJD:KLVWOH%ORZLQJ6\VWHP

6.2

102-34

1DWXUHDQGWRWDOQXPEHURIFULWLFDOFRQFHUQV—ʋ

102-355HPXQHUDWLRQSROLFLHV 5HPXQHUDWLRQIRU'LUHFWRUVDQG$XGLW 6XSHUYLVRU\%RDUG0HPEHUV 
65–69 of the Annual Securities Report

6.2

102-36

3URFHVVIRUGHWHUPLQLQJUHPXQHUDWLRQ 5HPXQHUDWLRQ&RPPLWWHH  5HPXQHUDWLRQIRU'LUHFWRUVDQG$XGLW 6XSHUYLVRU\%RDUG0HPEHUV

ʋ

102-37

6WDNHKROGHUV·LQYROYHPHQWLQUHPXQHUDWLRQ—

102-38$QQXDOWRWDOFRPSHQVDWLRQUDWLR—

102-393HUFHQWDJHLQFUHDVHLQDQQXDOWRWDOFRPSHQVDWLRQUDWLR—

6.2
9 of the Annual Securities Reportʋʋ

DIC Report 2022

167

5

6WDNHKROGHUHQJDJHPHQW

102-40/LVWRIVWDNHKROGHUJURXSV

102-41&ROOHFWLYHEDUJDLQLQJDJUHHPHQWV -DSDQRIHPSOR\HHVEHORQJWRDODERUXQLRQ
IRUHOLJLEOHHPSOR\HHVWKHUDWHLV2YHUVHDV(PSOR\HHVKDYHFROOHFWLYHEDUJDLQLQJULJKWVDVDOORZHG
IRUE\WKHODZVDQGUHJXODWLRQVRIWKHFRXQWU\WHUULWRU\LQZKLFKWKH\
DUHHPSOR\HG

6.3.10
6.4
6.4.3
6.4.4
6.4.5

102-42,GHQWLI\LQJDQGVHOHFWLQJVWDNHKROGHUV

 %DVLF6XVWDLQDELOLW\3ROLF\
± &RPPXQLFDWLRQZLWK6WDNHKROGHUV

6.2

102-43$SSURDFKWRVWDNHKROGHUHQJDJHPHQW

102-44.H\WRSLFVDQGFRQFHUQVUDLVHG

6

5HSRUWLQJSUDFWLFH

102-45(QWLWLHVLQFOXGHGLQWKHFRQVROLGDWHGILQDQFLDOVWDWHPHQWV

11–12 (The DIC Group: A Global Powerhouse)

6.2

102-46'HILQLQJUHSRUWFRQWHQWDQGWRSLFERXQGDULHV

 2YHUYLHZRI0DWHULDOLW\

ʋ

102-47/LVWRIPDWHULDOWRSLFV 2YHUYLHZRI0DWHULDOLW\

102-485HVWDWHPHQWVRILQIRUPDWLRQ

102-49&KDQJHVLQUHSRUWLQJ

 2YHUYLHZRI0DWHULDOLW\

ʋ

102-505HSRUWLQJSHULRG

2 (About this Report)

ʋ102-51'DWHRIPRVWUHFHQWUHSRUW

2 (About this Report) (June 2021)

ʋ

102-52

5HSRUWLQJF\FOH

2 (About this Report) (Annual)ʋ102-53&RQWDFWSRLQWIRUTXHVWLRQVUHJDUGLQJWKHUHSRUW%DFNFRYHU

ʋ102-54&ODLPVRIUHSRUWLQJLQDFFRUGDQFHZLWKWKH*5,
VWDQGDUGV

2 (About this Report)
7KLVUHSRUWKDVEHHQSUHSDUHGLQDFFRUGDQFHZLWK*5,6WDQGDUGV ³&RUH´RSWLRQ ʋ102-55*5,FRQWHQWLQGH[

This table

102-56([WHUQDODVVXUDQFH

 7KLUG3DUW\9HULILFDWLRQ

7.5.3

103

0DQDJHPHQW$SSURDFKGRI 103:

0DQDJHPHQW$SSURDFK

103-1([SODQDWLRQRIWKHPDWHULDOWRSLFDQGLWVERXQGDU\

 2YHUYLHZRI0DWHULDOLW\

ʋ

103-2

7KHPDQDJHPHQWDSSURDFKDQGLWVFRPSRQHQWV

 2YHUYLHZRI0DWHULDOLW\

ʋ

103-3

(YDOXDWLRQRIWKHPDQDJHPHQWDSSURDFK 6\VWHPIRU3URPRWLQJ6XVWDLQDELOLW\,QLWLDWLYHV200(FRQRPLF7RSLFVGRI 201:(FRQRPLF3HUIRUPDQFH

201-1'LUHFWHFRQRPLFYDOXHJHQHUDWHGDQG
GLVWULEXWHG

80–138 of the Annual Securities Report,
11–12 (The DIC Group: A Global Powerhouse),
± 0DQDJHPHQW¶V'LVFXVVLRQDQG$QDO\VLV

6.8
6.8.3
6.8.7
6.8.9

201-2

)LQDQFLDOLPSOLFDWLRQVDQGRWKHUULVNVDQG
RSSRUWXQLWLHVGXHWRFOLPDWHFKDQJH

± 'LVFORVXUHVLQ/LQHZLWK7&)' 5HFRPPHQGDWLRQV

6.5.5

 &RPPXQLFDWLRQZLWK6WDNHKROGHUV

6.2

6.2
6.7
6.7.4
6.7.5
6.7.6
6.7.8
6.7.9

± &RPPXQLFDWLRQZLWK6WDNHKROGHUV

± &RPPXQLFDWLRQZLWK6WDNHKROGHUV 7KLUG3DUW\2SLQLRQ5HJDUGLQJ',&5HSRUW

6.2

ʋ
NA

ʋ

201-3

'HILQHGEHQHILWSODQREOLJDWLRQVDQGRWKHUUHWLUHPHQWSODQV

115 of the Annual Securities Report

ʋ

201-4

)LQDQFLDODVVLVWDQFHUHFHLYHGIURPJRYHUQPHQW

134 of the Annual Securities Reportʋ

GRI 202:

0DUNHW3UHVHQFH

202-1

5DWLRVRIVWDQGDUGHQWU\OHYHOZDJHE\JHQGHUFRPSDUHGWRORFDOPLQLPXPZDJH'DWDRQHQWU\OHYHOKLULQJIRU¿VFDO\HDU
KWWSVGLFVQDUMSMREERDUGGHWDLODVS["LG RIE;7XWUR$TT/ED-,&)B4

6.4.4
6.8

202-2

3URSRUWLRQRIVHQLRUPDQDJHPHQWKLUHGIURPWKHORFDOFRPPXQLW\

―

6.8
6.8.5
6.8.7

GRI 203:,QGLUHFW(FRQRPLF,PSDFWV

203-1,QIUDVWUXFWXUHLQYHVWPHQWVDQGVHUYLFHVVXSSRUWHG

± +DUPRQ\ZLWKWKH&RPPXQLW\DQG6RFLDO&RQWULEXWLRQV

6.3.9
6.8
6.8.3
6.8.4
6.8.5
6.8.6
6.8.7
6.8.9

203-2

6LJQLÀFDQWLQGLUHFWHFRQRPLFLPSDFWV± +DUPRQ\ZLWKWKH&RPPXQLW\DQG6RFLDO&RQWULEXWLRQV

6.3.9
6.6.6
6.6.7
6.7.8
6.8
6.8.5
6.8.6
6.8.7
6.8.9

GRI 204:

3URFXUHPHQW3UDFWLFHV

204-1

3URSRUWLRQRIVSHQGLQJRQORFDOVXSSOLHUVGRI 205:$QWL&RUUXSWLRQ

205-1

2SHUDWLRQVDVVHVVHGIRUULVNVUHODWHGWRFRUUXSWLRQ

± &RPSOLDQFH

6.6
6.6.3

205-2

&RPPXQLFDWLRQDQGWUDLQLQJDERXWDQWLFRUUXSWLRQ ± &RPSOLDQFH
SROLFLHVDQGSURFHGXUHV

± 6XVWDLQDEOH3URFXUHPHQW

6.6
6.6.3

205-3

&RQÀUPHGLQFLGHQWVRIFRUUXSWLRQDQGDFWLRQVWDNHQ

± &RPSOLDQFH 1$

6.6
6.6.3

6.6.6
6.8
6.8.5
6.8.7

―

72

DIC Report 2022

168

GRI 206:$QWL&RPSHWLWLYH%HKDYLRU

206-1/HJDODFWLRQVIRUDQWLFRPSHWLWLYHEHKDYLRUDQWLWUXVWDQGPRQRSRO\SUDFWLFHVGRI 207:

Tax 2019

207-1$SSURDFKWRWD[

7KH',&*URXS¶V$SSURDFKWR7D[KWWSVZZZGLFJOREDOFRPHQFVUSKLORVRSK\WD[KWPO

207-2

7D[JRYHUQDQFHFRQWURODQGULVNPDQDJHPHQW

7KH',&*URXS¶V$SSURDFKWR7D[KWWSVZZZGLFJOREDOFRPHQFVUSKLORVRSK\WD[KWPO

207-3

6WDNHKROGHUHQJDJHPHQWDQGPDQDJHPHQWRI
FRQFHUQVUHODWHGWRWD[

7KH',&*URXS¶V$SSURDFKWR7D[KWWSVZZZGLFJOREDOFRPHQFVUSKLORVRSK\WD[KWPO

207-4&RXQWU\E\FRXQWU\UHSRUWLQJ

 7D[DWLRQ&RPSOLDQFH300(QYLURQPHQWDOWRSLFVGRI 301:

0DWHULDOV

301-1

0DWHULDOVXVHGE\ZHLJKWRUYROXPH

―

301-2

5HF\FOHGLQSXWPDWHULDOVXVHG

―

301-3

5HFODLPHGSURGXFWVDQGWKHLUSDFNDJLQJPDWHULDOV

―

6.5.3
6.5.4
6.7.5

GRI 302:(QHUJ\

302-1(QHUJ\FRQVXPSWLRQZLWKLQWKHRUJDQL]DWLRQ *URXSZLGH(QYLURQPHQWDO3HUIRUPDQFH

6.5.4

302-2

(QHUJ\FRQVXPSWLRQRXWVLGHWKHRUJDQL]DWLRQ

―

6.5.4

302-3

(QHUJ\LQWHQVLW\ *OREDO(QHUJ\&RQVXPSWLRQDQG(QHUJ\&RQVXPSWLRQSHU8QLWRI3URGXFWLRQ ',&*URXS

6.5.4

302-4

5HGXFWLRQRIHQHUJ\FRQVXPSWLRQ *OREDO(QHUJ\&RQVXPSWLRQDQG(QHUJ\&RQVXPSWLRQSHU8QLWRI3URGXFWLRQ ',&*URXS

6.5.4
6.5.5

302-5

5HGXFWLRQVLQHQHUJ\UHTXLUHPHQWVRISURGXFWVDQGVHUYLFHVGRI 303::DWHUDQG(IÁXHQWV

303-1,QWHUDFWLRQVZLWKZDWHUDVDVKDUHGUHVRXUFH

 0DQDJLQJ:DWHU5HVRXUFHV

6.5.4

303-2

0DQDJHPHQWRIZDWHUGLVFKDUJHUHODWHGLPSDFWV 0DQDJLQJ:DWHU5HVRXUFHV

6.5.4

303-3

:DWHUZLWKGUDZDO .H\'DWD

6.5.4

303-4

:DWHUGLVFKDUJH

 .H\'DWD

6.5.4

303-5

:DWHUFRQVXPSWLRQ

―

6.5.4

304-1

2SHUDWLRQDOVLWHVRZQHGOHDVHGPDQDJHGLQRU ―DGMDFHQWWRSURWHFWHGDUHDVDQGDUHDVRIKLJKELRGLYHUVLW\YDOXHRXWVLGHSURWHFWHGDUHDV

6.5.6

304-2

6LJQLILFDQWLPSDFWVRIDFWLYLWLHVSURGXFWVDQG
VHUYLFHVRQELRGLYHUVLW\

―

304-3

+DELWDWVSURWHFWHGRUUHVWRUHG

 %LRGLYHUVLW\

304-4,8&15HG/LVWVSHFLHVDQGQDWLRQDOFRQVHUYDWLRQOLVWVSHFLHVZLWKKDELWDWVLQDUHDVDIIHFWHGE\RSHUDWLRQV―GRI 305:(PLVVLRQV

305-1'LUHFW 6FRSH *+*HPLVVLRQV .H\'DWD

6.5.5

305-2

,QGLUHFW 6FRSH *+*HPLVVLRQV .H\'DWD

6.5.5

305-3

2WKHULQGLUHFW 6FRSH *+*HPLVVLRQV *UDVSLQJ&2 2(PLVVLRQV$FURVVWKH6XSSO\&KDLQ 6FRSH

6.5.5

305-4

*+*HPLVVLRQVLQWHQVLW\ .H\'DWD

6.5.5

305-5

5HGXFWLRQRI*+*HPLVVLRQV &OLPDWH&KDQJH

6.5.5

305-6

(PLVVLRQVRIR]RQHGHSOHWLQJVXEVWDQFHV
2'6  3URWHFWLQJWKH2]RQH/D\HU

6.5.3
6.5.5

305-7

1LWURJHQR[LGHV 12[ VXOIXUR[LGHV 62[ DQG
RWKHUVLJQLILFDQWDLUHPLVVLRQV 5HGXFLQJ62[12[DQG&2'  .H\'DWD

6.5.3

GRI 306::DVWH

306-1:DVWHJHQHUDWLRQDQGVLJQLILFDQWZDVWHUHODWHG
LPSDFWV± 0DQDJLQJ,QGXVWULDO:DVWH

6.5.3

306-2

0DQDJHPHQWRIVLJQLILFDQWZDVWHUHODWHGLPSDFWV± 0DQDJLQJ,QGXVWULDO:DVWH

6.5.3

306-3

:DVWHJHQHUDWHG

 ,QGXVWULDO:DVWH*HQHUDWHGDQG'LVSRVHGRIE\WKH*OREDO',&*URXSLQ)LVFDO<HDU  .H\'DWD

6.5.3

306-4

:DVWHGLYHUWHGIURPGLVSRVDO

 ,QGXVWULDO:DVWH*HQHUDWHGDQG'LVSRVHGRIE\WKH*OREDO',&*URXSLQ)LVFDO<HDU  .H\'DWD

6.5.3

306-5

:DVWHGLUHFWHGWRGLVSRVDO

 ,QGXVWULDO:DVWH*HQHUDWHGDQG'LVSRVHGRIE\WKH*OREDO',&*URXSLQ)LVFDO<HDU  .H\'DWD

6.5.3

GRI 307:(QYLURQPHQWDO&RPSOLDQFH
 2XWOLQHRI(6+$XGLWV,PSOHPHQWHGLQ)LVFDO<HDU

4.6

± &RPSOLDQFH 1$

6.6
6.6.5
6.6.7

6.5.4
 5HVSRQGLQJWRD&LUFXODU(FRQRP\

6.5.4

6.5.4
6.5.5

GRI 304： %LRGLYHUVLW\

 %LRGLYHUVLW\

6.5.6
6.5.6

 %LRGLYHUVLW\

6.5.6

307-1

1RQFRPSOLDQFHZLWKHQYLURQPHQWDOODZVDQGUHJXODWLRQVGRI 308:

6XSSOLHU(QYLURQPHQWDO$VVHVVPHQW

308-1

1HZVXSSOLHUVWKDWZHUHVFUHHQHGXVLQJHQYLURQPHQWDOFULWHULD

 6XVWDLQDEOH3URFXUHPHQW

6.3.5
6.6.6
7.3.1

308-2

1HJDWLYHHQYLURQPHQWDOLPSDFWVLQWKHVXSSO\FKDLQDQGDFWLRQVWDNHQ± 6XVWDLQDEOH3URFXUHPHQW

6.3.5
6.6.6
7.3.1

400

(QYLURQPHQWDO

GRI 401:(PSOR\PHQW

401-1

1HZHPSOR\HHKLUHVDQGHPSOR\HHWXUQRYHU

129 (Basic Personnel Statistics (DIC))

± +XPDQ5HVRXUFHV0DQDJHPHQW

6.4
6.4.3

401-2

%HQHILWVSURYLGHGWRIXOOWLPHHPSOR\HHVWKDWDUHQRWSURYLGHGWRWHPSRUDU\RUSDUWWLPHHPSOR\HHV

143 ⑥ 3URJUDPVWKDW+HOS(PSOR\HHV%DODQFHWKH'HPDQGVRI:RUNDQG+RPH

± +XPDQ5HVRXUFHV0DQDJHPHQW

6.4
6.4.3
6.4.4

401-3

3DUHQWDOOHDYH

143 ⑦ 8VHRIWKH&KLOGFDUH/HDYHDQG/HDYHWR$VVLVWZLWK3DUHQWLQJ3URJUDPV

± +XPDQ5HVRXUFHV0DQDJHPHQW

6.4
6.4.3

DIC Report 2022

169

GRI 402:/DERU0DQDJHPHQW5HODWLRQV

402-1

0LQLPXPQRWLFHSHULRGVUHJDUGLQJRSHUDWLRQDO
FKDQJHVGRI 403:

2FFXSDWLRQDO+HDOWKDQG6DIHW\

403-1

2FFXSDWLRQDOKHDOWKDQGVDIHW\PDQDJHPHQW
V\VWHP

± (6+  2FFXSDWLRQDO6DIHW\DQG+HDOWK

6.4
6.4.6

403-2

+D]DUGLGHQWLILFDWLRQULVNDVVHVVPHQWDQG
LQFLGHQWLQYHVWLJDWLRQ

± 3ULQFLSDO,QLWLDWLYHVLQ)LVFDO<HDU  'LVDVWHU3UHYHQWLRQ

6.4
6.4.6

403-3

2FFXSDWLRQDOKHDOWKVHUYLFHV &RUSRUDWH+HDOWK0DQDJHPHQW

6.4
6.4.6
6.8
6.8.3
6.8.4
6.8.8

403-4

:RUNHUSDUWLFLSDWLRQFRQVXOWDWLRQDQG
FRPPXQLFDWLRQRQRFFXSDWLRQDOKHDOWKDQG
VDIHW\

± 2FFXSDWLRQDO6DIHW\DQG+HDOWK

6.4
6.4.6

403-5

:RUNHUWUDLQLQJRQRFFXSDWLRQDOKHDOWKDQG
VDIHW\

± 2FFXSDWLRQDO6DIHW\DQG+HDOWK  'LVDVWHU3UHYHQWLRQ

6.4
6.4.6

403-6

3URPRWLRQRIZRUNHUKHDOWK

± &RUSRUDWH+HDOWK0DQDJHPHQW

6.4
6.4.6

403-7

3UHYHQWLRQDQGPLWLJDWLRQRIRFFXSDWLRQDOKHDOWKDQGVDIHW\LPSDFWVGLUHFWO\OLQNHGE\
EXVLQHVVUHODWLRQVKLSV± 2FFXSDWLRQDO6DIHW\DQG+HDOWK  'LVDVWHU3UHYHQWLRQ

6.4
6.4.6

403-8

:RUNHUVFRYHUHGE\DQRFFXSDWLRQDOKHDOWKDQG ± (6+  2FFXSDWLRQDO6DIHW\DQG+HDOWKVDIHW\PDQDJHPHQWV\VWHP

6.4
6.4.6

403-9

:RUNHUUHODWHGLQMXULHV .H\'DWD

6.4
6.4.6

403-10:RUNUHODWHGLOOKHDOWK .H\'DWD

6.4
6.4.6

GRI 404:

7UDLQLQJDQG(GXFDWLRQ

404-1$YHUDJHKRXUVRIWUDLQLQJSHU\HDUSHUHPSOR\HH ―404-2

3URJUDPVIRUXSJUDGLQJHPSOR\HHVNLOOVDQG
WUDQVLWLRQDVVLVWDQFHSURJUDPV

404-3

3HUFHQWDJHRIHPSOR\HHVUHFHLYLQJUHJXODUSHUIRUPDQFHDQGFDUHHUGHYHORSPHQWUHYLHZVGRI 405:'LYHUVLW\DQG(TXDO2SSRUWXQLW\

405-1'LYHUVLW\RIJRYHUQDQFHERGLHVDQGHPSOR\HHV  ([HFXWLYHV
53–57 of the Annual Securities Report %DVLF3HUVRQQHO6WDWLVWLFV ',&6.3.7
6.3.10
6.4
6.4.3

405-2

5DWLRRIEDVLFVDODU\DQGUHPXQHUDWLRQRIZRPHQWRPHQ

―

6.3.7
6.3.10
6.4
6.4.3
6.4.4

GRI 406:

1RQ'LVFULPLQDWLRQ

406-1,QFLGHQWVRIGLVFULPLQDWLRQDQGFRUUHFWLYHDFWLRQVWDNHQGRI 407:)UHHGRPRI$VVRFLDWLRQDQG&ROOHFWLYH%DUJDLQLQJ

407-1

2SHUDWLRQVDQGVXSSOLHUVLQZKLFKWKHULJKWWRIUHHGRPRIDVVRFLDWLRQDQGFROOHFWLYHEDUJDLQLQJPD\EHDWULVN

GRI 408:&KLOG/DERU

408-1

2SHUDWLRQVDQGVXSSOLHUVDWVLJQLILFDQWULVNIRU
LQFLGHQWVRIFKLOGODERU

GRI 409:)RUFHGRU&RPSXOVRU\/DERU

409-1

2SHUDWLRQVDQGVXSSOLHUVDWVLJQLILFDQWULVNIRU
LQFLGHQWVRIIRUFHGRUFRPSXOVRU\ODERUGRI 410:

6HFXULW\3UDFWLFHV

410-1

6HFXULW\SHUVRQQHOWUDLQHGLQKXPDQULJKWVSROLFLHVRUSURFHGXUHVGRI 411:5LJKWVRI,QGLJHQRXV3HRSOHV

411-1,QFLGHQWVRIYLRODWLRQVLQYROYLQJULJKWVRILQGLJHQRXVSHRSOHV$PLQLPXPQRWLFHSHULRGLVSURYLGHGDVVSHFLILHGLQODERUDJUHHPHQWV

6.4
6.4.3
6.4.4
6.4.5

± +XPDQ5HVRXUFHV0DQDJHPHQW

± +XPDQ5HVRXUFHV0DQDJHPHQW  5HHPSOR\PHQWDIWHU5HWLUHPHQWDQG6XSSRUWIRU5HWLUHPHQW3ODQQLQJ

6.4
6.4.7
6.8.5
± )UDPHZRUN&UHDWLRQ3HUVRQQHO6\VWHP
*OREDO+XPDQ5HVRXUFHV6\VWHPDQG:RUN6W\OH5HIRUP

―

6.4
6.4.7

6.4
6.4.7

± &RPSOLDQFH  (VWDEOLVKLQJDQG2SHUDWLQJD:KLVWOH%ORZLQJ
6\VWHP

6.3
6.3.6
6.3.7
6.3.106.4.3

 %XLOGLQJ7UXVWZLWKWKH',&(PSOR\HHV¶8QLRQ

6.3
6.3.3
6.3.4
6.3.5
6.3.8
6.3.10
6.4.3
6.4.5

 6XVWDLQDEOH3URFXUHPHQW 

6.3
6.3.3
6.3.4
6.3.5
6.3.7
6.3.10 6XVWDLQDEOH3URFXUHPHQW 

6.3
6.3.3
6.3.4
6.3.5
6.3.7
6.3.10

―

6.3
6.3.5
6.4.3
6.6.6

NA

DIC Report 2022

170

6.3
6.3.6
6.3.7
6.3.8
6.6.7

GRI 412:+XPDQ5LJKWV$VVHVVPHQW

412-1

2SHUDWLRQVWKDWKDYHEHHQVXEMHFWWRKXPDQULJKWVUHYLHZVRULPSDFWDVVHVVPHQWV 5HVSHFWIRU+XPDQ5LJKWV

6.3
6.3.3
6.3.4
6.3.5

412-2

(PSOR\HHWUDLQLQJRQKXPDQULJKWVSROLFLHVRU
SURFHGXUHV 5HVSHFWIRU+XPDQ5LJKWV

6.3
6.3.5

412-3

6LJQLILFDQWLQYHVWPHQWDJUHHPHQWVDQG
FRQWUDFWVWKDWLQFOXGHKXPDQULJKWVFODXVHVRUWKDWXQGHUZHQWKXPDQULJKWVVFUHHQLQJ

―

6.3
6.3.3
6.3.5
6.6.6

GRI 413:/RFDO&RPPXQLWLHV

413-1

2SHUDWLRQVZLWKORFDOFRPPXQLW\HQJDJHPHQWLPSDFWDVVHVVPHQWVDQGGHYHORSPHQWSURJUDPV 7LHVZLWK6RFLHW\

413-2

2SHUDWLRQVZLWKVLJQLILFDQWDFWXDODQGSRWHQWLDOQHJDWLYHLPSDFWVRQORFDOFRPPXQLWLHV―GRI 414:

6XSSOLHU6RFLDO$VVHVVPHQW

414-1

1HZVXSSOLHUVWKDWZHUHVFUHHQHGXVLQJVRFLDOFULWHULD

± 6XVWDLQDEOH3URFXUHPHQW

ʋ

414-2

1HJDWLYHVRFLDOLPSDFWVLQWKHVXSSO\FKDLQDQG
DFWLRQVWDNHQ

± 6XVWDLQDEOH3URFXUHPHQWʋ

GRI 415:

3XEOLF3ROLF\

± &RPPXQLFDWLRQZLWK6WDNHKROGHUV

6.3.9
6.6.7
6.8
6.8.5
6.8.7
6.3.9
6.5.3
6.5.6
6.8.9

415-1

3ROLWLFDOFRQWULEXWLRQVGRI 416:&XVWRPHU+HDOWKDQG6DIHW\ 0RQHWDU\&RQWULEXWLRQV

416-1$VVHVVPHQWRIWKHKHDOWKDQGVDIHW\LPSDFWVRISURGXFWDQGVHUYLFHFDWHJRULHV

± 4XDOLW\

6.3.9
6.6.6
6.7
6.7.4
6.7.5

416-2

,QFLGHQWVRIQRQFRPSOLDQFHFRQFHUQLQJWKH
KHDOWKDQGVDIHW\LPSDFWVRISURGXFWVDQG
VHUYLFHV 4XDOLW\

6.3.9
6.6.6
6.7
6.7.4
6.7.5

GRI 417:

0DUNHWLQJDQG/DEHOLQJ

417-1

5HTXLUHPHQWVIRUSURGXFWDQGVHUYLFH
LQIRUPDWLRQDQGODEHOLQJ 6DIHW\0DQDJHPHQWLQ/RJLVWLFV ± (QVXULQJWKH6DIHW\RI&KHPLFDO
Substances)

6.7
6.7.3
6.7.4
6.7.5
6.7.6
6.7.9

417-2

,QFLGHQWVRIQRQFRPSOLDQFHFRQFHUQLQJSURGXFWDQGVHUYLFHLQIRUPDWLRQDQGODEHOLQJ

NA

6.7
6.7.3
6.7.4
6.7.5
6.7.6
6.7.9

417-3

,QFLGHQWVRIQRQFRPSOLDQFHFRQFHUQLQJPDUNHWLQJFRPPXQLFDWLRQV

NA

6.7
6.7.3
6.7.6
6.7.9

GRI 418:&XVWRPHU3ULYDF\

418-1

6XEVWDQWLDWHGFRPSODLQWVFRQFHUQLQJEUHDFKHVRIFXVWRPHUSULYDF\DQGORVVHVRIFXVWRPHUGDWD

NA

6.7
6.7.7

GRI 419:

6RFLRHFRQRPLF&RPSOLDQFH

419-1

1RQFRPSOLDQFHZLWKODZVDQGUHJXODWLRQVLQ
WKHVRFLDODQGHFRQRPLFDUHD

± &RPSOLDQFH ± &RPSO\LQJZLWK/DZVDQG5HJXODWLRQV

6.6
6.6.3
6.6.7
6.8.7

DIC Report 2022

171

Financial Report for Fiscal Year 2021
| Analysis of Results of Operations
Overview of Operating Results(Billions of yen)

FY2020Change (%)

Change(%)

FY2021[Local currency basis]

Net sales

701.2

855.4

22.0%

18.2%

Operating income

39.7

42.9

8.1%

7.1%

Ordinary income

36.5

43.8

20.0%

-

Net income attributable to owners of
the parent

13.2

4.4

-67.0%-EBITDA*

55.6

69.0

24.1%

-

¥/US$1.00 (Average rate)

106.37109.75

3.2%-¥/EUR1.00 (Average rate)

121.43129.73

6.8%-* EBITDA = Net income attributable to owners of the parent + Total income taxes + (Interest expenses – Interest income) + Depreciation and amortization,QWKH¿VFDO\HDUHQGHG'HFHPEHUFRQVROLGDWHGQHWVDOHVDGYDQFHGWRELOOLRQ,IWKHUHVXOWVRIWKH& (pigments business (formerly BASF SE’s Colors & Effects business), included in the scope of consolidation since July 2021,
were discounted, the increase would have been 15.3%. With progress in the drive to vaccinate people against COVID-19 andthe effectiveness of vaccinations, the effect of the pandemic on economic activity eased, particularly in developed countries andterritories. Against a backdrop of buoyant digital-related demand worldwide, shipments remained robust, including those of highvalue-added products such as materials for use in semiconductor devices and in electrical and electronics equipment. Shipments
RIPDWHULDOVIRUXVHLQGDLO\QHFHVVLWLHVVXFKDVIRRGSDFNDJLQJVWD\HG¿UPZKLOHWKRVHRISLJPHQWVIRUFRVPHWLFVVKRZHGVLJQVRI
recovering. While certain products and regions continued to feel the brunt of falling automobile production, a result of semiconductor
device shortages, shipments of materials for automotive applications were steady overall.
Operating income, at ¥42.9 billion, was up 8.1%. If the impact of the C&E pigments business was excluded, the gain would havebeen 31.6%. This was despite the impact of elevated raw materials costs, a consequence of rising crude oil prices, among others, andhigher logistics costs, attributable to supply chain stagnation, throughout the period, and was due to solid shipments in all segments,
SDUWLFXODUO\RIKLJKYDOXHDGGHGSURGXFWVDQGRQJRLQJHIIRUWVWRUHGXFHWKHLQÀXHQFHRIHVFDODWLQJFRVWVE\DGMXVWLQJVDOHVSULFHV
1RQHWKHOHVVRSHUDWLQJLQFRPHJURZWKZDVKLQGHUHGE\ÀDJJLQJVDOHVLQWKH& (SLJPHQWVEXVLQHVV²UHÀHFWLQJVKLSPHQWGHOD\V
DWWULEXWDEOHWRWKHIDFWWKDWLWWRRNVRPHWLPHWREXLOGDORJLVWLFVFRQ¿JXUDWLRQIROORZLQJWKHLQWHJUDWLRQRIWKHQHZEXVLQHVV²DVZHOODV
by an increase in operating costs to resolve this business’ logistics-related issues, among others.
2UGLQDU\LQFRPHURVHWRELOOLRQRZLQJWRH[SDQGHGHTXLW\LQHDUQLQJVRIDI¿OLDWHVDQGIRUHLJQH[FKDQJHJDLQVNet income attributable to owners of the parent tumbled 67.0%, to ¥4.4 billion. The principal factor behind this steep decrease was
the reversal of deferred tax assets in the United States and the recording of an equivalent amount as income taxes–deferred, as
detailed in the press release titled “Notice Regarding Revision of Consolidated Operating Results Forecasts for Fiscal Year 2021 andReversal of Deferred Tax Assets,” published on February 7, 2022.
Earnings before interest, taxes, depreciation and amortization (EBITDA) reached ¥69.0 billion, up 24.1%.
Segment Results(Billions of yen)

Net sales

Operating income (loss)

FY2020

FY2021

Change(%)

Packaging & Graphic

388.4

439.8

13.2%

Color & Display

105.8

167.2

Functional Products

236.0

Others, Corporate and eliminations
Total

Change (%)

Change(%)

Change (%)

FY2020

FY2021

9.8%

21.8

21.6

-0.7%

-0.2%

58.0%

51.7%

8.4

4.0

-53.2%-49.3%

283.3

20.1%

17.1%

17.1

26.2

53.2%

49.4%

(29.0)(34.9)

-

-

(7.6)

(8.9)

-

-

701.2

855.4

22.0%

18.2%

39.7

42.9

8.1%

7.1%

[Local currency basis]

DIC Report 2022

172

[Local currency basis]

Packaging & Graphic
FY2020

FY2021

Change (%)

Change (%)[Local currency basis]

Net sales¥388.4 billion¥439.8 billion

13.2%

9.8%

Operating income¥21.8 billion¥21.6 billion

-0.7%

-0.2%

Segment sales rose 13.2%, to ¥439.8 billion. In materials for food packaging, sales of packaging inks were bolstered by thecontinued expansion of shipments in the Americas and Europe, and signs of a recovery in demand in Japan. Sales of publication
LQNV ZKLFK FHQWHU RQ LQNV IRU FRPPHUFLDO SULQWLQJ DQG QHZV LQNV ZHUH DOVR XS²GHVSLWH D GHFOLQH LQ GHPDQG IRU WKH IRUPHU
LQ -DSDQ QRWDEO\ IRU SULQWLQJ SDPSKOHWV DQG HYHQWUHODWHG SULQWHG PDWHULDOV²WKDQNV WR KLJKHU VDOHV LQ $VLD EROVWHUHG E\SHUVLVWHQWO\ UREXVW PDUNHW FRQGLWLRQV DQG LQ WKH $PHULFDV DQG (XURSH EDFNHG E\ ILUP GHPDQG 6DOHV RI MHW LQNV IRU GLJLWDO
printing increased sharply, buttressed by brisk sales throughout the year for industrial applications, including outdoor signage(billboards and posters) and banners, and for commercial printing, as well as by the positive impact of the June 2020 acquisition
RIDEXVLQHVVHQJDJHGLQWKHSURGXFWLRQRIMHWLQNVIRUGLJLWDOSULQWLQJRQWH[WLOHV
Segment operating income edged down 0.7%, to ¥21.6 billion. Notwithstanding ongoing efforts to counter the heightened
LQIOXHQFHRIHVFDODWLQJUDZPDWHULDOVFRVWV²DUHVXOWRIULVLQJ UDZPDWHULDOVSULFHV²ZRUOGZLGHRSHUDWLQJLQFRPHZDVGRZQLQ
Japan and Asia, as a consequence of which the overall result remained essentially level with the previous fiscal year.

Color & Display
FY2020Net sales
Operating income

FY2021

Change (%)

Change (%)[Local currency basis]¥105.8 billion¥167.2 billion

58.0%

51.7%

¥8.4 billion¥4.0 billion-53.2%-49.3%

Segment sales climbed 58.0%, to ¥167.2 billion. If the impact of the C&E pigments business was excluded, the increase would havebeen 13.9%. Among existing businesses, sales of color materials rose, as shipments of pigments for cosmetics continued showing
VLJQVRIUHFRYHULQJ,QGLVSOD\PDWHULDOVVDOHVRISLJPHQWVIRUFRORU¿OWHUVZHUHXSZLWKVKLSPHQWVUHPDLQLQJKLJKVXSSRUWHGE\VWHDG\GHPDQGIRUXVHLQOLTXLGFU\VWDOGLVSOD\V /&'V DOWKRXJKVDOHVRIWKLQ¿OPWUDQVLVWRUOLTXLGFU\VWDOV 7)7/&V GHFUHDVHG
RZLQJWRLQWHQVL¿HGFRPSHWLWLRQZLWKPDQXIDFWXUHUVLQWKH3HRSOH¶V5HSXEOLFRI&KLQD 35& ,QSLJPHQWVIRUVSHFLDOW\DSSOLFDWLRQV
sales of effect pigments remained on an uptrend, bolstered by higher demand in Europe for autoclaved aerated concrete for
FRQVWUXFWLRQUHODWHGDSSOLFDWLRQV,QDGGLWLRQWRDPSOL¿HGUHVXOWVLQWKHVHH[LVWLQJEXVLQHVVHVVHJPHQWVDOHVZHUHERRVWHGE\WKH
inclusion of the results of the C&E pigments business. Sales in the C&E pigments business flagged, reflecting shipment delays
attributable to a tight supply–demand situation in the area of maritime shipping arising from a global container shortage, as well as to
WKHIDFWWKDWLWWRRNVRPHWLPHWREXLOGDORJLVWLFVFRQ¿JXUDWLRQIROORZLQJWKHLQWHJUDWLRQRIWKLVQHZEXVLQHVV
Segment operating income fell 53.2%, to ¥4.0 billion. If the impact of the C&E pigments business was disregarded, thiswould have been a gain of 56.8%. Despite a recovery in shipments of pigments for cosmetics and persistently firm shipmentsof high-value-added products such as pigments for color filters and effect pigments, numerous factors, including sluggish sales
in the C&E pigments business, an increase in operating costs to resolve this business’ logistics-related issues and one-timecosts associated with the integration of this business, combined to push operating income down.

Functional Products
FY2020Net sales
Operating income

FY2021

Change (%)

Change (%)[Local currency basis]¥236.0 billion¥283.3 billion

20.1%

17.1%

¥17.1 billion¥26.2 billion

53.2%

49.4%

Segment sales advanced 20.1%, to ¥283.3 billion. Shipments of epoxy resins, the principal application for which is semiconductor
devices, were brisk overall for use as sealing materials in electronics equipment. Shipments of industrial-use tapes, used primarily
LQVPDUWSKRQHVDQGRWKHUPRELOHGHYLFHVZHUH¿UP6DOHVRIDOOHQYLURQPHQWIULHQGO\UHVLQV LQFUHDVHGOHGE\UREXVWVKLSPHQWVRI
products for a wide range of applications, including electrical and electronics equipment, and building materials, although shipments of
FHUWDLQPDWHULDOVIRUXVHLQDXWRPRELOHVLQ$VLDÀDJJHG6DOHVRISRO\SKHQ\OHQHVXO¿GH 336 FRPSRXQGV²XVHVIRUZKLFKFRQWLQXH
WRPXOWLSO\XQGHUSLQQHGE\WKHWUHQGWRZDUGOLJKWHUDQGPRUHHOHFWUL¿HGYHKLFOHV²ZHUHXSLQDOOUHJLRQVDVRUGHUVUHPDLQHGVROLG
particularly in Japan, although concerns remained over the impact of a shortage of semiconductor devices in the automobile industry.
6HJPHQWRSHUDWLQJLQFRPHOHDSWWRELOOLRQ7KLVVKDUSJDLQZDVGHVSLWHHOHYDWHGUDZPDWHULDOVFRVWVDQGUHÀHFWHG
FRQWLQXHGEULVNVKLSPHQWVRIHSR[\UHVLQVDQGRWKHUKLJKYDOXHDGGHGSURGXFWVDQGHIIRUWVWRDGMXVWVDOHVSULFHV* DIC uses the term “environment-friendly resins” to describe strategic resins designed to improve both environmental performance and functionality. These include waterborne, ultraviolet(UV)-curable, polyester, acrylic and polyurethane resins.

DIC Report 2022

173

|Consolidated Financial Statements
Consolidated Balance Sheet

As of December 31, 2020 and 2021

（Millions of yen）

2020

2021

AssetsCurrent assets
Cash and deposits

44,88538,253

Notes and accounts receivable-trade197,595

237,916

0HUFKDQGLVHDQG¿QLVKHGJRRGV

78,273

132,773

Work in process

9,065

9,651

Raw materials and supplies

55,05891,199Other

24,29436,282

Allowance for doubtful accounts(9,171)(3,959)399,997542,114262,318

288,987

Accumulated depreciation(175,432)(185,949)

Buildings and structures, net

86,885103,039

Machinery, equipment and vehicles

404,451

461,394(337,065)(351,875)

67,386

109,519

7RROVIXUQLWXUHDQG¿[WXUHV

65,312

74,041

Accumulated depreciation(54,844)(59,111)

7RROVIXUQLWXUHDQG¿[WXUHVQHW

10,46814,930Land

51,36264,219Construction in progress

11,977

15,978

Total property, plant and equipment

228,078

307,684

Goodwill

819

20,182

Software

2,963

4,002

Customer-related assets

2,853

3,107

Other

4,877

25,022

Total intangible assets

11,51252,313

Investment securities

57,201

59,289Deferred tax assets

32,407

17,3201HWGH¿QHGEHQH¿WDVVHW

63,78469,715

Other

25,70523,201

Allowance for doubtful accounts

(734)

(156)

Total investments and other assets

178,363

169,370

417,953

529,367

817,950

1,071,481

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

Accumulated depreciation
Machinery, equipment and vehicles, net

Intangible assets

Investments and other assets

Total non-current assets
Total assets

DIC Report 2022

174

Consolidated Balance Sheet

As of December 31, 2020 and 2021

（Millions of yen）

2020

2021

Liabilities
Current liabilities
Notes and accounts payable-trade95,263

145,816

6KRUW²WHUPORDQVSD\DEOH

10,275

10,437

Current portion of long-term loans payable

27,096

37,131−

20,000

Lease obligations

1,061

1,092

Income taxes payable

4,985

5,640

Provision for bonuses

5,480

6,125

Other

53,022

79,334

197,181305,575

Bonds payable

100,000

140,000

Long-term loans payable

123,766

171,443

Lease obligations

4,543

4,112

Deferred tax liabilities

12,525

10,725

1HWGH¿QHGEHQH¿WOLDELOLW\

17,071

35,989Asset retirement obligations

1,691

7,689

Other

9,809

14,940Total non-current liabilities

269,405

384,897

Total liabilities

466,586

690,473

Capital stock

96,55796,557

Capital surplus

94,46894,468Retained earnings

219,778

214,665

Treasury shares(1,800)(1,780)409,003403,910

Valuation difference on available-for-sale securities

2,903

5,449

Deferred gains or losses on hedges

2,468

92

)RUHLJQFXUUHQF\WUDQVODWLRQDGMXVWPHQW(82,321)(55,456)

5HPHDVXUHPHQWVRIGH¿QHGEHQH¿WSODQV(13,562)(8,067)

Total accumulated other comprehensive income(90,511)(57,983)

Non-controlling interests

32,87335,081

Total net assets

351,364

381,008

817,950

1,071,481

Current portion of bonds payable

Total current liabilities
Non-current liabilities

Net Assets
Shareholders’ equity

Total shareholders’ equity
Accumulated other comprehensive income

Total liabilities and net assets

DIC Report 2022

175

Consolidated Statement of Income

Years ended December 31, 2020 and 2021
（Millions of yen）

2020
Net sales
Cost of sales*URVVSUR¿W
Selling, general and administrative expenses
Freightage and packing expenses
Employees’ salaries and allowances
Provision of allowance for doubtful accounts
Provision for bonuses
5HWLUHPHQWEHQH¿WH[SHQVHVResearch and development costs
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Foreign exchange gains(TXLW\LQHDUQLQJVRIDI¿OLDWHV
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income*DLQRQVDOHVRIVXEVLGLDULHV¶DQGDI¿OLDWHV¶VHFXULWLHVGain on sales of non-current assets
Gain on bargain purchase
Insurance income
Total extraordinary income
Extraordinary losses
Acquisition-related expenses
Loss on disposal of non-current assets
Impairment losses
Severance costs
Loss on disaster
Provision for environmental measures
Loss on business liquidation
Total extraordinary losses
Income before income taxes and non-controlling interests,QFRPHWD[HV²FXUUHQW,QFRPHWD[HV²GHIHUUHG
Total income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of the parent

Consolidated Statement of Comprehensive Income

2021
701,223544,430
156,793855,379
678,061
177,318

12,914
42,776
866
2,242
(257)
12,02946,560117,130
39,663

15,87048,950
287
2,431
(552)
13,50353,935
134,425
42,893

1,263
416
−
771
2,066
4,516

1,223
401
250
2,943
2,017
6,835

2,225
1,384
4,117
7,726
36,452

2,176
−
3,794
5,970
43,758

−
5,226
1,295
531
7,052

769
482
−
−
1,251

4,563
2,903
1,251
924
−
−
8,762
18,40325,102
10,336(1,651)
8,685
16,417
3,184
13,233

6,911
3,139
1,563
522
463
300
−
12,897
32,112
13,60912,04125,650
6,462
2,097
4,365

Years ended December 31, 2020 and 2021

（Millions of yen）

2021

2020
Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges)RUHLJQFXUUHQF\WUDQVODWLRQDGMXVWPHQW
5HPHDVXUHPHQWVRIGH¿QHGEHQH¿WSODQVQHWRIWD[
Share of other comprehensive income of associates accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests

DIC Report 2022

176

16,417

6,462

1,175
1,785
(9,827)
10,689158
3,980
20,3962,549(2,376)27,0105,616
1,334
34,13440,596

17,3683,028

36,894
3,702

Consolidated Statement of Changes in Net Assets Years ended December 31, 2020 and 2021
Fiscal year ended December 31, 2020

（Millions of yen）

Shareholders’ equity
Capital stock

Capital surplus

96,557

94,456

Balance at January 1, 2020

Retainedearnings

218,209

Treasury shares

Total
shareholders’ equity(1,823)407,398

Change in FY2020
Dividends from surplus(8,531)

Net income attributable to owners of the parent

13,233(8,531)
13,233Purchase of treasury shares(5)

Disposal of treasury shares

28

Change of scope of equity method(3,133)

Change in ownership interest of parent due to transactions with non-controlling interests(5)28(3,133)12

12

Net changes of items other than shareholders’ equity
Total change in FY2020
Balance at December 31, 2020

−

12

1,569

23

1,605

96,557

94,468219,778(1,800)409,003（Millions of yen）

Accumulated other comprehensive income

Balance at January 1, 2020

Valuation difference
on available-for-salesecurities

Deferred gains orlosses on hedges

Foreign currencytranslation
adjustment

Remeasurements
RIGHÀQHG
EHQHÀWSODQV

Total accumulated
other comprehensive
income1,676

683(72,671)(24,346)(94,658)

Non-controllinginterests

30,757Total
net assets

343,497

Change in FY2020
Dividends from surplus(8,531)

Net income attributable to owners of the parent

13,233Purchase of treasury shares(5)

Disposal of treasury shares

28

Change of scope of equity method(3,133)

Change in ownership interest of parent due totransactions with non-controlling interests
Net changes of items other than shareholders’ equity

1,227

1,785

(9,650)10,784

4,147

2,116

6,262

Total change in FY2020

1,227

1,785

(9,650)10,784

4,147

2,116

7,868

Balance at December 31, 2020

2,903

2,468

(82,321)(13,562)(90,511)32,873351,364

12

Fiscal year ended December 31, 2021

（Millions of yen）

Shareholders’ equity
Capital stock

Capital surplus

96,557

94,468

Balance at January 1, 2021

Retainedearnings

219,778

Treasury shares

Total
shareholders' equity(1,800)409,003

Change in FY2021
Dividends from surplus(9,479)Net income attributable to owners of the parent

4,365(9,479)4,365

Purchase of treasury shares

(9)

(9)

Disposal of treasury shares29

29

Net changes of items other than shareholders’ equity
Total change in FY2021
Balance at December 31, 2021−−

(5,114)20(5,094)96,557

94,468214,665(1,780)403,910（Millions of yen）

Accumulated other comprehensive income

Balance at January 1, 2021

Valuation difference
on available-for-salesecurities

Deferred gains orlosses on hedges

Foreign currencytranslation
adjustment

Remeasurements
RIGHÀQHG
EHQHÀWSODQV

Total accumulated
other comprehensive
income

2,903

2,468

(82,321)(13,562)(90,511)

Non-controllinginterests

32,873Total
net assets

351,364

Change in FY2021
Dividends from surplus(9,479)Net income attributable to owners of the parent

4,365

Purchase of treasury shares(9)

Disposal of treasury shares
Net changes of items other than shareholders’ equity

29
2,546

(2,377)

26,865

Total change in FY2021

2,546(2,377)

26,865

5,494

32,5282,208

29,643

Balance at December 31, 2021

5,449

92

(55,456)(8,067)(57,983)

35,081

381,008

DIC Report 2022

177

5,494

32,5282,208

34,736

Consolidated Statement of Cash Flows Years ended December 31, 2020 and 2021
（Millions of yen）

2020
Net cash provided by (used in) operating activities
Income before income taxes and non-controlling interests
Depreciation and amortization
Amortization of goodwill
Loss (gain) on bargain purchase
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Interest and dividends income(TXLW\LQ HDUQLQJV ORVVHVRIDI¿OLDWHVInterest expenses
Loss (gain) on sales and retirement of non-current assets
Impairment losses
Loss on business liquidation/RVV JDLQ RQVDOHVRIVXEVLGLDULHV¶DQGDI¿OLDWHV¶VHFXULWLHV'HFUHDVH LQFUHDVH LQQRWHVDQGDFFRXQWVUHFHLYDEOH²WUDGH
Decrease (increase) in inventories,QFUHDVH GHFUHDVH LQQRWHVDQGDFFRXQWVSD\DEOH²WUDGH
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of shares and investments in capital of subsidiaries resulting in change in scope of consolidation
Proceeds from sales of shares and investments in capital of subsidiaries resulting in change in scope of consolidation
Payments for sales of shares and investments in capital of subsidiaries resulting in change in scope of consolidation
3URFHHGVIURPVDOHVRIVXEVLGLDULHV¶DQGDI¿OLDWHV¶VHFXULWLHV
Purchase of investment securities
Proceeds from sales and redemption of investment securities
Proceeds from sales of businesses
Payments for transfer of businesses
Other, net
Net cash provided by (used in) investing activities
1HWFDVKSURYLGHGE\ XVHGLQ ÀQDQFLQJDFWLYLWLHVNet increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of bonds
Cash dividends paid
Cash dividends paid to non-controlling interests
Net decrease (increase) in treasury shares
Purchase of shares and investments in capital of subsidiaries not resulting in change in scope of consolidation
Other, net
1HWFDVKSURYLGHGE\ XVHGLQ ¿QDQFLQJDFWLYLWLHV
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the period
Cash and cash equivalents at end of the period

DIC Report 2022

178

2021
25,10232,581143(1,295)(548)(124)(1,679)(771)
2,225(2,324)
1,251
8,762
−
10,781
10,158(12,453)(10,847)
60,963
3,249(2,385)(7,366)54,462

32,11237,394656−(1,386)632(1,624)(2,943)
2,176
2,657
1,563
−
(769)
(15,963)(34,348)
34,261
2,676
57,093
3,358(1,963)(13,676)
44,812(8,024)
4,589(32,719)
5,895(1,280)(2,817)
890
(16)
226
(51)
352
−
(78)
(3)
(33,037)

(402)
3,433
(35,935)909(2,706)(124,095)−−
11,618
(142)
1,589
95
−
(1,975)(147,612)(8,866)
42,105(35,325)
20,000(8,531)
(782)
23
(114)
(2,173)
6,338(3,100)24,663
16,69041,354(650)
89,070(36,277)
60,000(9,479)(1,475)20−(1,660)99,549(531)(3,782)
41,35437,572

Third-Party Verification

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

DIC Report 2022

179

Third-Party Verification

DIC Report 2022

180

Third-Party Verification

DIC Report 2022

181

Third-Party Opinion Regarding DIC Report 2022

Counselor,
The Japan Research Institute, Limited

Eiichiro Adachi,Q KLV FXUUHQW FDSDFLW\ (LLFKLUR$GDFKLLV UHVSRQVLEOH IRU UHVHDUFK DQG SROLF\SURSRVDOV UHODWHG WR VXVWDLQDEOH ILQDQFH
$ PHPEHU RI WKH 0DUNHW (YROXWLRQ DQG&RUSRUDWLRQV LQ WKH VW &HQWXU\ ZRUNLQJJURXS RUJDQL]HG E\ WKH .HL]DL 'R\XNDL-DSDQ$VVRFLDWLRQRI&RUSRUDWH([HFXWLYHV 
Mr. Adachi was involved in the preparation
RI 7KH WK &RUSRUDWH :KLWH 3DSHU RQ
³µ0DUNHW(YROXWLRQ¶DQG&650DQDJHPHQW
7RZDUG %XLOGLQJ ,QWHJULW\ DQG &UHDWLQJ
6KDUHKROGHU 9DOXH´ )URP 0DUFK  WR
May 2009, he also served as a national
H[SHUW ZLWKLQ WKH -DSDQHVH GHOHJDWLRQ WR
WKH ,62  ZRUNLQJ JURXS ,Q 0DUFK KH ZDV DSSRLQWHG D QDWLRQDO H[SHUWZLWKLQWKH-DSDQHVHGHOHJDWLRQWRWKH,62
7& WKH ,QWHUQDWLRQDO 2UJDQL]DWLRQ IRU6WDQGDUGL]DWLRQ¶V WHFKQLFDO FRPPLWWHH
IRU VXVWDLQDEOH ILQDQFH 6LQFH -DQXDU\ KH KDV DOVR EHHQ D PHPEHU RI WKH)LQDQFLDO 6HUYLFHV$JHQF\¶V ([SHUW 3DQHO
RQ6XVWDLQDEOH)LQDQFH0U$GDFKLLVDOVRNQRZQ DV WKH DXWKRU RI VHYHUDO ERRNV
including Environmental Management:
A Beginners’ Guide, ESG Handbook for
Investors and Businesses and The Business
Person’s Guide to the SDGs SXEOLVKHGLQ-DSDQHVH 

7KLV WKLUGSDU W\ RSLQLRQ UHI OHFWV P\ YLHZ
RI WKH VXVWDLQDELOLW\ LQLWLDWLYHV DQG UHODWHG
d i s c l o s u r e o f D I C a n d i t s c o n s o l i d at e d
VXEVLGLDU LHV LQ -DSDQ DQG RYHU VHDV DV
XQGHUVWRRGIURPUHDGLQJWKLVUHSRUW,WLVQRW
LQWHQGHG DV D FRPPHQW RQ ZKHWKHU RU QRWWKH LQIRUPDWLRQ KHUHLQ KDV EHHQ PHDVXUHG
DQG FDOFXODWHG DFFXUDWHO\ WR FRQIRUP ZLWKF R P P R Q O \  D F F H S W H G  V W D Q G D U G V  I R U  W K HSUHSDUDWLRQRIHQYLURQPHQWDORURWKHUUHSRUWVRU DV D MXGJPHQW RQ ZKHWKHU WKH UHSRU W
FRYHUVUHOHYDQWLPSRUWDQWPDWWHUVLQIXOO

Once again this year, I had the honor of reviewing the DIC Report. My attention was
SDUWLFXODUO\GUDZQWRWKHUHGH¿QLWLRQRIWKHZHOOHVWDEOLVKHG³&RORU &RPIRUWE\&KHPLVWU\´
YLVLRQVWDWHPHQWWRHPEUDFHWKHSURYLVLRQRIYDOXHEH\RQGWKHUHDOPRI³FKHPLVWU\´WRLPSURYHWKHKXPDQFRQGLWLRQDQGWKHJOREDOHQYLURQPHQWIRUDEULJKWHUIXWXUH,DOVRIRXQG
WKHIDFWWKDW',&9LVLRQFRPHVULJKWRXWDQGGHFODUHVWKDW',&DLPVWRHVWDEOLVKDEXVLQHVVSRUWIROLRWKDWGRHVQRWGHSHQGVROHO\RQLWVLQNVEXVLQHVV,WLVQRWFRPPRQLQ
JHQHUDOIRUWKHPHVVDJHVRI-DSDQHVHFRPSDQLHVWRVD\WKHFRPSDQ\LVJRLQJWRnot do
VRPHWKLQJ7KLVFHUWDLQO\OHIWQRGRXEWVUHJDUGLQJ',&¶VUHVROYHWRH[SDQGLWVSUHVHQFHLQJURZWKPDUNHWVDQGFUHDWHQHZEXVLQHVVHV:LWKHQYLURQPHQWDODQGVRFLDOGHJUDGDWLRQLQFUHDVLQJO\DSSDUHQWDQGFRQVWUDLQWVRQHFRQRPLFDFWLYLW\LPSRVVLEOHWRLJQRUHWKHGLOHPPDVIDFLQJFRUSRUDWHPDQDJHPHQWWRGD\
DUHPDQ\,QLWVGHVFULSWLRQRIWKH',&6XVWDLQDELOLW\,QGH[WKH&RPSDQ\VWDWHVWKDW³PRGHUQ
OLIHSUHVHQWVDQXPEHURIFRPSOH[GLOHPPDV´)RUFRPSDQLHVZLWKSURGXFWVLQ³KDUGWR
DEDWH´VHFWRUVVWHHULQJPDQDJHPHQWWRZDUGFDUERQQHXWUDOLW\ZKLOHDWWKHVDPHWLPH
VHFXULQJHDUQLQJSRZHUDQG¿QDQFLDOVRXQGQHVVLVFHUWDLQO\RQHRIWKHVHGLOHPPDV,EHOLHYHWKDWZKDWVWDNHKROGHUVLQFOXGLQJLQYHVWPHQW¿UPVDQGLQYHVWRUVZDQWWRNQRZLVZKHWKHU',&KDVERWKWKHZLOODQGWKHVWUDWHJLHVQHFHVVDU\WRRYHUFRPHWKLVGLOHPPD
7KLVLVZKHUHWKH³LQWHJUDWHG´LQ³,QWHJUDWHG5HSRUW´FRPHVIURP,QWKHSDVWWKHW\SLFDOHQYLURQPHQWDOUHSRUW&65UHSRUWDQGVXVWDLQDELOLW\UHSRUWKDVEHHQDQRPQLEXVRIGDWD
FRPSDULQJWKHUHVXOWRIYDULRXVLQLWLDWLYHVZLWKYDULRXVQRUPVDQGVWDNHKROGHUH[SHFWDWLRQV$QXPEHURIZLGHUHDFKLQJJOREDOFKDQJHVKDYHIRUFHGDUHWKLQNRIWKLVDSSURDFK)LUVWVXVWDLQDELOLW\FKDOOHQJHVDQG(6*UHODWHGLVVXHVDUHLQWHUWZLQHGDQGLQFUHDVLQJO\WKUHDWHQSHRSOH¶VOLYHOLKRRGVLIQRWWKHLUOLYHV,Q)HEUXDU\ WKH8QLWHG1DWLRQV'HYHORSPHQW3URJUDPPH 81'3 UHOHDVHGDVSHFLDOUHSRUWWLWOHGNew threats to humansecurity in the Anthropocene: Demanding greater solidarityZKLFKHVWLPDWHVWKDWWKH
QXPEHURISHRSOHDURXQGWKHZRUOGIRUFHGWRPLJUDWHLQEHFDXVHRIWKUHDWVWRWKHLU
VDIHW\IURPZHDWKHUUHODWHGGLVDVWHUVZDVDSSUR[LPDWHO\PLOOLRQ,WLVEHFRPLQJPRUH
DQGPRUHGLIILFXOWWRSHUFHLYHWKH³HQYLURQPHQWDO´DQG³VRFLDO´FRPSRQHQWVRI(6*DVLQGHSHQGHQWFRQFHSWV,QDZRUOGLQZKLFKKXPDQVHFXULW\LVVRHDVLO\WKUHDWHQHGWKH
RQXVLVRQFRPSDQLHVWRGHWHUPLQHZKDWWKH\FDQGRDQGZKDWWKH\VKRXOGQRWGRDQGWRFRPPXQLFDWHWKLVXQDPELJXRXVO\7KHVHFRQGLVVXHHQFRXUDJLQJFRPSDQLHVWRUHDVVHVVWKHRPQLEXVDSSURDFKLVWKH
UDSLGV\VWHPDWL]DWLRQRIVXVWDLQDELOLW\UHODWHGGLVFORVXUH7KH,)56)RXQGDWLRQUHFHQWO\HVWDEOLVKHGWKH,QWHUQDWLRQDO6XVWDLQDELOLW\6WDQGDUGV%RDUG ,66% ZKLFKLVH[SHFWHGWRGHYHORSDFRPSUHKHQVLYHJOREDOEDVHOLQHRIVXVWDLQDELOLW\DQGFOLPDWHUHODWHGGLVFORVXUH
VWDQGDUGVODWHULQ,QOLQHZLWKWKHUHFRPPHQGDWLRQVRIWKH7DVN)RUFHRQ&OLPDWHUHODWHG)LQDQFLDO'LVFORVXUHV 7&)' WKH7RN\R6WRFN([FKDQJH KDVUHTXHVWHGWKDW3ULPH0DUNHWOLVWHGFRPSDQLHVGLVFORVHFOLPDWHUHODWHGEXVLQHVVULVNVLQDFFRUGDQFHZLWKLQWHUQDWLRQDOIUDPHZRUNVEURDGHQLQJWKHVFRSHRIGLVFORVXUH+HDGLQJLQWRILVFDO\HDUWKH)LQDQFLDO6\VWHP&RXQFLO¶V:RUNLQJ*URXSRQ&RUSRUDWH'LVFORVXUHZLOODGG
DQHZVHFWLRQIRUVXVWDLQDELOLW\LQIRUPDWLRQWRDQQXDOVHFXULWLHVUHSRUWVDQGUHTXLUHWKDWDOOFRPSDQLHVLQFOXGHLQIRUPDWLRQRQJRYHUQDQFHDQGULVNPDQDJHPHQWZKLOHOHDYLQJWKHGHFLVLRQUHJDUGLQJGLVFORVXUHRIVWUDWHJLHVDQGPHWULFVWDUJHWVXSWRWKHLQGLYLGXDOFRPSDQLHV,WLVWKXVFRQFHLYDEOHWKDWIURPWKHFRQWHQWDQGRUJDQL]DWLRQRIWKH',&5HSRUWZLOO
QHHGWREHUHYLVHGVLJQL¿FDQWO\,QRWKHUZRUGVLWPLJKWEHZRUWKFRQVLGHULQJWUDQVIHUULQJ
LQIRUPDWLRQRQLQGLYLGXDOLQLWLDWLYHVWRDVHSDUDWHGDWDERRNDQGIRFXVLQJWKH',&5HSRUWRQPDWHULDOLW\LQLWLDWLYHVULVNVDQGRSSRUWXQLWLHVDQGYDOXHFUHDWLRQ7KLVLVMXVWDQLGHDEXW
RQH,KRSHWKDWWKH&RPSDQ\ZLOOWDNHLQWRFRQVLGHUDWLRQDIC Report 2022

182