CSR Report 2022

2022

Corporate Social Responsibility ReportCorporate Social Responsibility Report 2022

CONTENTS
2

Greeting

About SHIKOKU CHEMICALS CORPORATION

Relationship with Society

3Management Policy

19

Respect for Individuality and Human Rights

4

Sustainability in the SHIKOKU CHEMICALSCORPORATION Group20

Procurement
Product Liability

7

21

Corporate Governance

Quality Initiatives

Compliance
Risk Management

Environmental Efforts

923

Support and Development of Employees

24

Occupational Safety and Health

25

Security and Disaster Prevention

26

Communication and Collaboration with Stakeholders

27

ESG Performance Data

29

GRI Content Index

30

Corporate Profile

PolicyEnvironment Promotion System

10

Priority Goals and Results of Environmental
Protection in FY2021

11

Environmental Conservation

12

Chemical Substance Management
Environmental Audit, Education

13

Environmentally and People-Friendly Product Lineup

15

Priority Goals of Environmental Protection in FY2022

16

SHIKOKU CHEMICALS CORPORATION Group’s
Climate Change Action(Commitment to TCFD Recommendations)

Editing Policy
Our company started voluntary efforts to protect the environment in the 1990s and the Marugame Plant and the Tokushima Plant acquired ISO 14001 certification in 1998. We started
publishing our environmental protection activities in 2004 and have actively disclosed information, including posting “Environmental Reports” on our website since 2017 and “Environmental
and Social Reports” since 2019. Since 2021, we have been disclosing information based on the GRI in the “CSR Report” to enhance our ESG actions. In preparing this report, we tried touse easy-to-understand, easy-to-read expressions and structure for everyone to understand the contents, in response to inquiries from stakeholders.
<Reference guidelines> Environmental Accounting Guidelines, GRI Sustainability Reporting Guidelines and Standards

Applicable Period

1

April 1, 2021 to March 31, 2022

Corporate Social Responsibility Report 2022

Coverage

All offices and plant facilities of SHIKOKU CHEMICALS CORPORATION
Subsidiaries subject to consolidated accounting of
SHIKOKU CHEMICALS CORPORATION (13 domestic, 1 overseas)

Greeting
SHIKOKU CHEMICALS CORPORATION Group formulated
and launched its long-term vision “Challenge 1000” in April
2020 to make a leap forward to the new stage in 2030.
Under our unwavering corporate philosophy of “Doku-souryoku (creativity)”, we aspire to “Toward ‘one-step-ahead,proposal’ company with creativity” by 2030, striving to become
a company that solves societal issues with original ideas. In
March this year, we set up significant priority issues (materiality)
for our company and society, which we aim to apply to ourbusiness activities in the future, and thereby achieve a balance
between the continuous improvement of corporate value andsolving of social issues through our core business.
In “Challenge 1000”, we have set an activity policy,“YONPO-YOSHI (favorable in all four directions)”, as a good
corporate citizen committed to serving customers, employees,
shareholders, and the society at large. The major topics of lastyear for our contributions to these four stakeholders will bereported.
First, for “Customers”, we created a new production plant forchlorinated isocyanurate. Organic Chemicals business has set
forth “a business that protects environment and sanitationand delivers cleanliness to people around the world” as its“aspirational vision”. The COVID-19 pandemic has raised
hygiene awareness in society at large, and in order to meetthe expected increase in demand for sanitizing and cleaning,
we will expand our business into high-value-added areas suchas commercial and household sanitary products, in addition
to conventional pools and septic tanks. In the Fine Chemicals
business, the demand for high-performance semiconductors isincreasing due to the emergence of the Internet of Things (IoT)
and the spread of 5G (5th generation mobile communication
system). We will utilize a new multi-plant TAP-4 (Tokushima
Advanced Chemicals Plant-4), which was completed last year,
and promptly provide new materials.
Furthermore, for “Employees”, we held information sessions on
evaluation methods and feedback for respective staff members,
aiming for fairer personnel evaluation. Simultaneously, seminars
were held to create a work environment that encourages
individual employees to improve their performance. In addition,with increasing interest in diverse and flexible ways of working,we conducted questionnaire-based surveys for all employees
regarding their work and career values. Various measures willcontinue to be taken to improve the skills and motivation of
employees who comprise our human capital.
For “Shareholders”, targeting 50% of total returns, thecompany acquired approximately 813,000 treasury sharesand retired all those acquired in the last one year, in order toenhance shareholder returns and improve capital efficiency.

In the review of market classification by the Tokyo Stock
Exchange, the company selected “Prime Market”.
Lastly, for “Society”, we have set the expenditure forcontribution to society and communities to up to 1% of ordinary
income each year. At the “Setouchi Triennale 2022” held thisyear in Kagawa Prefecture, where our head office is located, the“PARKLET”, which is being developed through open innovation
with Kagawa University, was presented as a new business, andit was favorably received. In addition, executing the “Partnership
Agreement on Development of Thriving Neighborhoods”
with Marugame City, we are working toward revitalizing thecommunity in cooperation with local residents.
The outlook for the business environment remains uncertain in
the current fiscal year under the impact of COVID-19 and thesituation in Ukraine. However, our group will continue to pursue“safe operations”, “environmental preservation”, and “stable
quality” as the cornerstones of our business activities under
any circumstances, and we will strive to establish an even morerobust business foundation. Furthermore, promoting “YONPOYOSHI”, we will work toward the realization of a corporategroup that is trusted by all stakeholders.
Thanks to your support, our group celebrates the 75th
anniversary of its founding this year. In order to continue its
growth and earn the trust of our numerous stakeholders, weare determined to fulfill our corporate social responsibilities by
ensuring that all officers and employees comply with ethics,
laws, and regulations and always maintain a positive attitude
toward our business.
To mark this milestone year, the company has decided to shift
to a holding company structure in January 2023, centered on
two operating companies, chemicals and building materials, toensure sustainable growth toward a centennial company, andto make a great leap forward as a world-leading company. To
achieve “Challenge 1000”, we will realize and practice flexible
and robust business operations under the new structure.
Thank you for your continued understanding and support.
August 2022

President and C.E.O.

Naoto Tanaka

Corporate Social Responsibility Report 20222

About SHIKOKU CHEMICALSCORPORATIONManagement Policy

Management Policy
SHIKOKU CHEMICALS CORPORATION Group formulated “Challenge 1000”, our long-term vision to guide the company to a new level by 2030.
As financial goals, we are collectively working toward sales of 100 billion yen, operating profit of 15 billion yen, and ROE (equity ratio) of 10%
or higher.
We have also established “YONPO-YOSHI (favorable in all four directions)” as our corporate policy to contribute to customers, employees,
shareholders, and society.

Corporate Philosophy“We always value creativity as a driving force for company development”◎ “Doku-sou-ryoku (creativity)” is the eternal philosophy of SHIKOKU CHEMICALS CORPORATION Group.
◎ Since inventing an innovative manufacturing method for carbon disulfide, we have consideredcreativity as the cornerstone of growth and the power of development.

◎ We will bring together the wisdom of each and every person involved, and will always break new

ground using out-of-the-box ideas.

Long-Term Vision “Challenge 1000”〜 Our Vision for 2030 〜

Toward “one-step-ahead, proposal” company with creativity
Solve social issues with creative ideas,leading the world
YONPO-YOSHI
Customers

Employees“One-step-ahead” values

Challenges and growthProfit return

A better tomorrow

To deliver new value throughunique, state-of-the-art products
and services

To create an environment thatcultivates a sense of real growththrough various work methods
and challenges, always supportinga fulfilling life

We aim for a 50% total return
ratio based on our consolidated
performance

To contribute to the resolution ofsocial issues and to realizea prosperous living environment

Financial Goals
Net Sales

Operating
Income

ROE

3

100
15
10

Corporate Social Responsibility Report 2022

billions of yen

billions of yen% or higher

Shareholders

Community

Pillars for Strategy
Business Reform Policy
Companywide Reform Policy
Proactive Investment
Achievement of SDGs

About SHIKOKU CHEMICALSCORPORATION

Sustainability in SHIKOKUCHEMICALS CORPORATION Group

Sustainability in SHIKOKU CHEMICALS CORPORATION GroupThe Concept of Sustainability
Under our longstanding corporate philosophy of “Doku-sou-ryoku(creativity)”, SHIKOKU CHEMICALS CORPORATION Group considers
addressing the global environment and social issues as one of themost important matters of management policy.
Our approach to the “vision for 2030”, set forth in our long-term
vision of “Challenge 1000”, and “YONPO-YOSHI (favorable inall four directions)”, which is the action plan, defines our group’s
sustainability.
Since environmental and social issues are diverse, we have identified
important issues for prioritization (materiality) that will lead tosustainable company and social growth while solving issues. We will
work efficiently and maximally to serve a business that contributes

to resolving environmental and social issues and the realization of asustainable society.
By reflecting materiality to our business activities, we will strive
for both the continuous improvement of corporate value and theresolution of social issues through our main business activities.
Moreover, the achievement of the “Challenge 1000” financial goals
will also lead to an increase in our management resources. This will
enable material solutions that are developed from the current state
in terms of both quality and quantity, and lead to greater investment.
We believe this will eventually result in a higher level of contribution
for each stakeholder listed in the “YONPO-YOSHI” policy and further
improve our group’s sustainability.

Continuous Sustainability Promotion

Corporate Activities = Sustainability Management

Contribution to Achieving “Challenge 1000”
Improvement in Corporate Value/Sustainability

Embodiment

Corporate
Philosophy

Our Vision for 2030
YONPO-YOSHI

Business Activities

Business Reform Policy↓

Companywide Reform Policy

Solutions to Social Issues

Priority Issues

Materiality
Efficiency and MaximumContributions, and Outcomes

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About SHIKOKU CHEMICALSCORPORATION

Sustainability in SHIKOKUCHEMICALS CORPORATION Group

System for Sustainability Promotion
Efforts toward achieving the long-term vision of “Challenge 1000”,
which is the definition of sustainability for our group, have been madeby each business and group in the company; this progress is reported
and discussed at the “Challenge 1000” meeting progress report.
The contents of this progress report on sustainability promotion are
regularly related to the Board of Directors/Executive Committee, anddecisions are made also based on environmental and social impact.
In addition, we established the “Sustainability Management Dept.”
in April 2021 to further promote sustainability activities in our group,
including the SDGs.
Our group will continue to actively work on providing information to
stakeholders and improving safety, health, and the environment.

Board of Directors / Corporate Strategy Meeting“Challenge 1000” Progress Report Meeting

Each Business, Group Company

Identification of Priority Issues (Materiality)
We identified materiality to be addressed in order to achieve our aspiration to “Toward ‘one-step-ahead, proposal’ company with creativity” by
2030 set forth in the long-term vision, “Challenge 1000”.

Specific Processes

The materiality of our group was determined through four processes.

Step 1

We identified issues that were of high priority to our stakeholders and our group from among the social issues
addressed in the 17 goals and 169 targets of the SDGs.

Step 2

The relevant divisions within the company held repeated discussions on the issues of high priority, and thereby
identified and examined the initiatives and target items.

Step 3

Dialogues were conducted with external experts on the draft content discussed internally, considering stakeholders’perspectives.

Step 4It was resolved at the Board of Directors.

Materiality

High●Creating a workplace where employees can workwith enthusiasm●Pursue safe operations, environmental preservation,and stable quality●Taking on challenges of new business opportunities

Importance tostakeholders

High Priority
IssuesImportance to the company

5

Corporate Social Responsibility Report 2022High

Sustainability in SHIKOKUCHEMICALS CORPORATION Group

About SHIKOKU CHEMICALSCORPORATION

Materiality and Action taken by SHIKOKU CHEMICALS CORPORATION Group
Materiality

Initiatives

Target value at the end of 2025

∙ Promotion of work-life balance∙ Action for flexible and diverse work styles∙ Promotion of mental and physical health of employees∙ Recruitment and performance of diverse human resources∙ Effective measures to eliminate harassment∙ High engagement ratio from the employee survey:
Measurement and operation∙ Percentage of persons with high stress by stress check: 8% or less
∙ Annual paid leave acquisition rate: 70%/person or higher∙ Certified as a Health and Productivity Management
Outstanding Corporation∙ Ratio of female managers: 5% or more
∙ Employment ratio of people with disabilities: 2.3% or more

∙ Foster a culture of safety∙ Facilitate the transition to a decarbonized society∙ Capital investments in safety/environment/quality∙ Promote responsible care activities∙ Strengthen compliance and risk management∙ Establish a sustainable supply chain∙ Lost time accident: 0 case/FY∙ GHG emissions: Decreased 30%, compared to FY2013∙ Ratio of renewable energy use: 10% or more
∙ Incidence of critical environmental and quality problems: 0 cases∙ Reduction in water consumption (chemical production volume unit
at three chemical plants): 3% reduction compared to FY2020∙ Requesting new business partners to comply with CSR: 100%

∙ Creation of products and services to solve social issues∙ Promotion of open innovation∙ Create a culture, develop human resources, and design
systems to address challenges∙ Sales from new sustainable products and services and thedevelopment of new businesses outside the framework of existing
businesses: JPY 2.5 billion∙ Improvement of new business unit structure: Establishment ofa basic operation system∙ Sales of existing businesses: JPY 77 billion

Creating a workplace where
employees can work withenthusiasm

Pursue safe operations,environmental preservation,and stable quality

Taking on challenges of
new business opportunities

ColumnTransition to Holding Company Structure

PurposeThe speed of change in the business environment surrounding our group is accelerating every year, and it is imperative that all
accumulating management issues be addressed. Under these circumstances, we have decided to shift to a holding company structure
in January 2023, in view of the necessity to strengthen our Group companies’ management structure and expedite decision-making inorder to achieve our long-term vision “Challenge 1000”.
(1)Reinforcement of the business operation system
Expedite decision-making by boldly transferring authority to each operating company(2)Redefinition of governance structure and roles of head office divisions
Specifying the holding company as a group management function
Eliminate and optimize overlapping operations by spinning off indirect divisions in the head office(3)Strengthen the development of management human resources
From the perspective of strengthening sustainable management capabilities, promoting the management of humanresource development for the future management of operating companies with autonomy

Corporate Social Responsibility Report 2022

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About SHIKOKU CHEMICALSCORPORATION

Corporate GovernanceComplianceCorporate GovernanceOur company recognizes that establishing both an organization where
corporate governance is functioning effectively and a transparent
management system that puts shareholders first is an importantmeasure to continuously improve the corporate value. Specifically, we
strive to establish a system to ensure its effectiveness, focusing on

securing shareholder rights and equality, appropriate collaboration
with stakeholders other than shareholders, appropriate information
disclosure and transparency, proper execution of the roles andresponsibilities of the Board of Directors, and constructive dialogue
with shareholders.

Shareholders Meeting

Nomination andCompensation
Committee

Corporate Lawyer

Board of Directors, Director

Board of Auditors
Statutory Auditor

Accounting Auditor
Auditing Company

President and C.E.O.

Corporate Strategy Meeting
Executive Officer

Compliance and Risk
Management Committee

Internal Control
Committee

Each Business Operation

Internal Audit Dept.

Related Operations

Appointment / Dismissal

Audit

Supervision / Management

Internal Reporting

Cooperation

Consultation / ReportComplianceIn the process of sharing and implementing management strategies
by officers and employees, our company recognizes that preparing
and properly operating the internal control system is the basis ofestablishing a compliance system to ensure that the execution ofduties complies with the laws and articles of incorporation, striving toenhance and improve the system.
More specifically, according to the “Basic Policy for Establishment ofInternal Control System” resolved by the Board of Directors, various
compliance-related regulations, such as “Charter of Corporate
Behavior”, “Standard of Corporate Behavior”, “ComplianceManagement Regulations”, and “Whistle-blowing Protection
Regulations” covering the entire group of the company, have been
prepared. We repeatedly educate employees about the importance ofcompliance with the Charter of Corporate Behavior, etc. to make themthoroughly known. All officers and employees have also been givena Charter of Corporate Behavior card and Compliance Handbook

7

Corporate Social Responsibility Report 2022

and provided written commitment to read regularly and comply
with its content. We have also organized a “Compliance and Risk
Management Committee” consisting of executive officers in charge ofeach department for effective management of compliance activities,
striving to establish a system for proper checks. Furthermore, we have
set up an internal and external compliance hotline as consultation/
reporting services for employees of our company group, as well as
our suppliers, regarding the overall corporate ethics, including ourgroup’s compliance, to detect and correct organizational and personal
violations of laws, unjust acts, and improper acts at an early stage. As
for internal control related to financial reporting, we have establishedthe “Internal Control Committee” with the C.E.O. (Chief Executive
Officer) as the chairperson and executive officers in charge of eachdepartment as members, making efforts to continuously maintain andcontrol the internal control function based on the “Basic Policy on
Internal Control for Financial Reporting”.

About SHIKOKU CHEMICALSCORPORATION

Compliance

Risk Management【 Charter of Corporate Behavior 】
In developing our business activities, SHIKOKU CHEMICALS CORPORATION Group respects human rights, complies withall applicable laws and regulations as well as international rules and their spirits, and acts according to the following
eight principles based on high ethical standards at the local and international levels:1

We develop and provide socially useful products and services
with due consideration of safety to earn customer satisfaction
and trust.

5

To protect the global environment, we strive to perform asa corporate citizen who cherishes harmony with nature andcontributes to society.

2

We conduct transactions on the basis of fair and free competition
and maintain healthy and sound relationships with the government.

6

We recognize the importance of intellectual property andpersonal information and the obligation to protect and handle
them appropriately.

3

We communicate with all members of society as well as shareholders
and disclose company information in an appropriate and fair manner
for maximum transparency in company activities.

7

In international business activities, we comply with the applicablelaws and regulations of each country and region, respect theircultures and customs, and contribute to regional development.

4

We secure a safe and pleasant working environment, develop
employees’ abilities and vigor, and respect their personalities andindividuality.

8

We refuse unfair and illegal demands and strongly oppose anyantisocial forces and groups.

Top management and board members in each company of SHIKOKU CHEMICALS CORPORATION Group recognizes that it is
its role to realize the spirit of this Charter and takes the lead in an exemplary manner to implement the Charter within eachcompany of SHIKOKU CHEMICALS CORPORATION Group. They also constantly endeavor to understand diverse voices within
and outside their companies and establish effective company structures.
When a situation that threatens to breach this Charter arises, as part of their responsibility, the heads of each companyof the group act strongly to resolve the problem, investigate the cause, and prevent recurrences of similar problems. In
such cases, they also immediately disclose accurate information and fulfill the group’s accountability to society, clarify theirauthority and responsibilities, and then severely punish the personnel involved, including themselves.

Risk Management
For risk management, the “Basic Risk Management Regulations”,
which are the highest standard for risk management, have been
established, and each executive officer conducts the management
within the scope of their control in accordance with the “RiskManagement Manual”. In addition, we have set up a system

for appropriate risk management where the aforementioned“Compliance and Risk Management Committee” oversees companywide risk management with the C.E.O. (Chief Executive Officer)
defined as the highest responsible person for risk management.

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Environmental Efforts

PolicyEnvironment Promotion System

PolicyBasic Policy for Responsible Care

Chief Responsible Care Officer
Naoto Tanaka President and C.E.O.

Philosophy
We are committed to protecting the global environment, as a broad-minded corporate citizen that contributes to a society
in which harmony with nature is a priority.

Basic Policy
Our actions are based on the idea that it is the dutyof each company to take steps to reduce greenhousegas emissions, conserve resources and energy, andminimize the discharge of environmental pollutants
and generation of industrial waste. These measuresboth protect the environment and ensure safety.

14Strive for safety and environmental considerations
throughout the entire life cycle of our products tomitigate risks and achieve continuous improvement.

We make products that are friendly for both people
and nature.

2

5

Actively provide product safety, environmental andquality information.

6

We follow domestic and overseas laws and regulations
and take active environmental protection measures.

レスポンシブル・ケア

Strive to preserve the environment and ensure thesafety and health of our employees and citizens,
while also considering biodiversity and working inharmony with local communities.

3

What is Responsible Care (RC)?
Responsible Care (RC) refers to voluntary activities conducted by the business operators manufacturing or handling chemical substances, for the purpose of protecting the safety, environment and healththroughout the entire life cycle from development, manufacturing, distribution, use, final consumption, disposal to recycle of products.
*Our company promotes its activities as a member of the Responsible Care Committee.

Environment Promotion System
Board of Directors

President and C.E.O.

RC Promotion Committee
・Basic Policy for Responsible Care, Priority Goals and Results of Environmental Protection

Management Activities[Sustainability Management Dept.]

With the initiative of the RC Promotion Committee,
each plant facility and office has developed annual
plans to achieve “Priority Goals of Environmental
Protection”, continuing improvement activities.
The results of these activities are assessed bymanagement, and necessary corrective actions
are taken to incorporate the outcome into theplan for the coming year, resulting in improved
environmental protection activities.

・Action plans, safety and health education

Information Activities[Chemicals Compliance Promotion Committee]
・Information collection

Act

Plan

Reporting the results of
the annual plan andtaking corrective
actions

Annual goal
setting and plandevelopment

Continuing
Improvement

Environmental Conservation[Plant facilities: Marugame Plant, Tokushima Plant (Kitajima location, Yoshinari location)][Offices: Head Office, Makuhari Branch Office, Osaka Branch Office, Each Sales Office, R&D Center]
・Energy saving activities, chemical substance management, resource saving, occupational
health and safety activities, internal audits, waste reduction activities

Communication with Local Community[General Affairs/Public Relations Department]

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Corporate Social Responsibility Report 2022

Check

Do

Assessment of the
progress of the annual
plan and internal
audits

Implementation inaccordance withthe annual plan

Environmental Efforts

Priority Goals and Results ofEnvironmental Protection in FY2021

Priority Goals and Results of Environmental Protection in FY2021■ As for the priority goals of environmental protection in FY2021, SHIKOKU CHEMICALS CORPORATION Group has worked to achieve
the objectives.
■ Regarding GHG emission reductions, GHG emissions increased from the previous year due to increased insoluble sulfur production andelectricity emission factors.
■ Regarding the reduction in energy use, activities were carried out with three goals in mind. The increase in insoluble sulfur production
and more efficient production led to a decrease in the specific energy consumption, resulting in a reduction compared to the previous
year. The 5-year average also improved from +0.5% in the previous fiscal year to 0.0% in the current year.
■ The amount of industrial waste processed by external vendors was reduced due to an increase in production volume and the ability tocontrol the waste volume to the same level as in the previous fiscal year.
Priority Goals

TargetResults in FY2021

SHIKOKU CHEMICALSCORPORATION Group(Scope 1,2)

∙FY2030 : 26% from FY2013∙FY2021 : 2.1% from FY2020(Unit consumption of sales)

7.5% from FY2013+19.6% from FY2020

SHIKOKU CHEMICALSCORPORATION Group(Scope 1,2)

∙ 1% from FY2020(Unit consumption of energy)

0.3% from FY2020

SHIKOKU CHEMICALSCORPORATION(Scope 1,2)

∙Reduction by 1% of the 5-year average(Unit consumption of energy)

SHIKOKU CHEMICALSCORPORATION(Transportation)∙ 1% from FY2020(Unit consumption of energy)

3Management andreduction ofenvironmental
burdens on waterand the atmosphere

Plant facilities∙ Annual average value for drainage into
the water area below the legal limit*1∙ Atmospheric emissions lower than theemission standard specified by the Air
Pollution Control Act*2

4

Reduction in industrial
waste to be processed
externally

Plant facilities∙Equal to the previous year or lower(Waste per unit of production)

1

2

5

6

Reduction in greenhousegas (GHG) emissions(CO2 equivalent)

Scope

Reduction in energy
consumption(Crude oil equivalent)Participation andcooperation in safety
and environmental
conservation activities

Over View of Results
Compared to the previous year, it
increased owing to an increase in
insoluble sulfur production andelectric emission factors.

Increased insoluble sulfur production
improved specific energy consumption
and enabled reduction compared tothe previous fiscal year; however, thetarget was not achieved.

0.0% of the 5-year average

Appropriate selection of routes andcharter flights continued, resulting ina decrease compared to the previous
year. However, the target was notachieved.

0.4% from FY2020∙Water : Below the discharge criteria∙Air: Below the discharge criteria

We were able to properly control inaccordance with the criteria.

Due to increased production volume,the consumption units decreased.

10.4% from FY2020

SHIKOKU CHEMICALSCORPORATION Group∙Safe and stable operations∙Participation in local environmental
conservation activities∙Promotion of environmental
conservation activities in cooperation
with business partners∙Implementation of general
disaster prevention training in the
Marugame and Tokushima Plants∙Participation in volunteer andcommunity-cleaning activities∙Set supply chain procurement
criteria∙Each production site made efforts
for maintenance and managementof facilities, security, and disasterprevention.
∙Community activities decreased
under the impact of COVID-19, butcleaning activities were conductedvoluntarily.
∙Procurement criteria were set, andoperations were initiated.

Plant facilities∙Proper management of substances
subject to control under the PRTR
systemNo problem was found in themeasurement and management ofemissions and transfers.

Efficient management resulted inmaintaining the emissions andtransfers at approximately the sameamount as that in the previous year.

Marugame Plant,
Tokushima Plant∙Actively utilize ISO14001 to control
various burdens on the environment

Systematic implementation of aninternal ISO14001 audit

We confirmed compliance with alllaws and regulations as well as theeffective operation of our management
system through internal audit.

Promotion ofenvironmental
management system■Scope∙SHIKOKU CHEMICALS CORPORATION Group : All of the SHIKOKU CHEMICALS CORPORATION Group companies∙SHIKOKU CHEMICALS CORPORATION : SHIKOKU CHEMICALS CORPORATION alone∙Plant facilities : Marugame Plant, Tokushima Plant, Tadotsu Plant, Naruto Plant, Ranzan Plant, Oita Plant, Takase Plant*1 : “Discharge of wastewater into water areas below the discharge criteria of the Water Pollution Prevention Act and other laws”*2 : “Emissions into the atmosphere, etc. below the emission criteria of the Air Pollution Control Act and other laws”

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Environmental Efforts

Environmental Conservation

Environmental Conservation
We aim to contribute ensuring protection of the environment, safety and health of the community residents and our
employees by continuously reducing environmental burdens caused by the greenhouse gas, chemical substances, andindustrial wastes emitted from each of our plants and facilities.

Overview of Environmental Burden (To understand the environmental burden of production activities)

Materials Balance at Production Sites in FY2021
Figures in ( ) indicate the variation from the previous fiscal year

INPUT

Raw materials

Fuel (crude oil equivalent)Electricity

Water

94,000t (+13,000t)

9,500kℓ (+2,200kℓ)

47MWh (+7MWh)

2,200kt (+300kt)

Marugame Plant andTokushima Plant

INPUT
Raw materials, energy, andwater used to manufacture
products

OUTPUT
Products manufactured, as wellas emissions to air, emissions
to water, and wastes generated
by business activities

OUTPUT

Products

Air emission

Waters emission

74,000t (+17,000t)

CO2/46.8kt (+14.9kt)
SOX/1t (±0t)
NOX/9t ( 1t)
PRTR substances/113t ( 7t)

COD/3t ( 1t)
Nitrogen /18t (+2t)
Phosphorus /0.09t (+0.01t)
PRTR substances/0.4t (+0.2t)

WastesYield /1,680t (+160t)
Internal processing capacity /880t (+290t)
Outsourcing /810t ( 110t)
PRTR substances/118t (+7t)* We have confirmed that the risk to the production business associated with water is low according to the water risk map (AQUEDUCT).

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Corporate Social Responsibility Report 2022

Environmental Efforts

Chemical Substance Management

Environmental Audit, Education

Chemical Substance Management
Correspondence Situation of PRTR System
The PRTR system specifies requirements
for the business operators to grasp andvoluntarily control the volume of chemical
substances, which can be hazardous tohuman health and the ecosystem, discharged
to the environment and moved as containedin the wastes.
*Top four substances (accounting for 90.4%)
of emissions and movement : carbon disulfide,
toluene, xylene and ethylbenzene.

Gas emission washing treatment facility(Tokushima Plant (Kitajima location))

Equipment for recovery of carbon disulfide(Marugame Plant)This is the facility for gathering chlorine generated in the process This is the equipment for recovering carbon sulfide used in the
manufacturing chlorinated isocyanuric acid and treating it by process manufacturing insoluble sulfur.
washing.

Environmental Audit, Education
Progress on Activities related to ISO 14001
Our Marugame Plant and Tokushima Plant (Kitajima location) acquired the certification of ISO 14001, the international standard for environmental
conservation in 2002. We have been developing our environmental conservation activities with the participation of all employees. We conduct risk
assessment, education, and self-audit in accordance with the activity plan established by ISO 14001.
Marugame Plant ISO 14001 certificate

Tokushima Plant (Kitajima location) ISO 14001 certificate

Eco-Action 21 Certification
In May 2018, our group company Shikoku Environmental Business Company obtained certification under “Eco-Action 21”.
“Eco-Action 21” refers to an environmental management system for Environmental efforts small- to medium-sized businesses
developed by the Ministry of the Environment to work on energy saving, water saving, waste reduction, and related issues. Shikoku
Environmental Business Company worked on waste separation, electricity saving, and promotion of a paperless environment tofacilitate environmental burden reduction activities and employee environmental awareness. As a certified business, it has received
a request for an interview from the Ministry of the Environment and a request from the government of Kagawa Prefecture topresent case examples of its efforts. We will continue to promote these activities further in the future.

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Environmental Efforts

Environmentally and
People-Friendly Product Lineup

Environmentally and People-Friendly Product Lineup
SHIKOKU CHEMICALS CORPORATION Group continues to make efforts for environmental protection and manufactures products contributing
the global environment and living environment, health and safety in the aspect of product development.

NEO-CHLOR
Chlorinated isocyanurates mass produced by our company for the first time in Japan in 1964. With its
excellent characteristics, the pool sanitizer NEO-CHLOR series contributes to a comfortable and safe
swimming environment in school and leisure pools, along with an automatic chlorine feeder NAPIX.

SPACLEAN
In bathing facilities such as hot spring and public bathhouses, it is important to always keep the waterin the baths clean. In the hot water which looks clean at a glance, bacteria such as Legionella remain if
it is cyclically used after only filth are removed.
SPACLEAN, a chlorinated isocyanurates-based chlorine agent dedicated for bathwater, always keeps
bathwater hygienic because of the strong active chlorine. This allows people to bathe without worry
when used in combination with an automatic chlorine management system. We also provide SPACLEAN
BROM 60T for hot spring containing alkali and the Legio Hunter mini tablets for medium-scale andsmall-scale baths such as social welfare facilities.

NEO-CHLOR MARINE
Ballast water, which is water loaded into a ship to maintain its balance, is injected at the port wherecargo is unloaded and ejected at the port where cargo is loaded. To prevent damage to the environment
caused by the discharge of organisms contained in ballast water, an international treaty came into
effect in September 2017 to require ships to properly manage ballast water. “NEO-CHLOR MARINE”
contributes to the protection of ecosystems as a disinfecting chemical agent for ballast water.

Glicoat-SMD (Organic Solderability Preservative for printed circuit boards)
High-density surface mounting of parts using lead-free solder is the dominant technique for the printed
circuit boards used in the electronic appliances such as PCs and smartphones from the viewpoint ofprotecting the global environment. Glicoat-SMD is a heat-resistant water-soluble preflux which is able
to provide good solderability demanded by customers even for lead-free solder which cannot be easily
soldered.
Glicoat-SMD is water-soluble, and hence, also helps make the work environment friendly to people andthe earth.

Ohdelight (Agents for reduction of excess sludge)
Ohdelight is the system that reduces excess sludge generated in the wastewater treatment using theactivated sludge method. This is the simple system consisting of a dissolver and a dedicated chemical
agent, needs no expensive initial investment, and can be additionally installed in the wastewater
treatment facilities such as rural community sewerages and food plants. The system was selected as thetechnology for the "Environmental Technology Verification Project" in 2011 which is the environment
technology verification system established by the Ministry of the Environment. Ohdelight passed theobjective verification test conducted by the third-party organization and the performance was approved.

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Environmental Efforts

Environmentally and
People-Friendly Product Lineup

Green ShadeAs one measure against the heat-island phenomenon, green roof has been increasingly introduced inbuildings. Our mid-air greening system "Green Shade" is a planter containing rainwater storage tank,covered with a two-tier mesh panel, along which a creeper grows to make a shadow of green. Our
greening system solves problems seen in the existing products for green roof because it needs no largescale renovation work and can reduce labor of watering by using rainwater and then it can be madeuse of green wall, too. This product also helps reduce carbon dioxide.

Keiso-kabe Series
The products are wall finishing materials containing diatomaceous earth as a major ingredient and haveexcellent humidity control feature, heat insulating effect, and sound absorbability. They are peoplefriendly interior finishing materials which adsorb hazardous formaldehyde and decompose it into
harmless substances. The products which can be painted directly to plasterboards needs no intercoatingprocess when blended with carbon fibers, contributing to resource saving.
We also have renovation materials which can be applied on vinyl cloth wallpaper without stripping thewallpaper are also available.
SATORI (our wall material brand in the U.S.) acquired the Indoor Advantage TM Gold.
-What is the Indoor Advantage TM Gold ?The Indoor Advantage™ Gold is the U.S. standard to certify product safety and the certification is given based on the third-party certification agency. For the buildings using the certified
products, the points required for the "LEED certification" indicating are given as the indoor air quality of the buildings is good. The buildings are authorized as green buildings based on
the total number of points.
-What is LEED (Leadership in Energy and Environmental Design) ?LEED is one of the programs established and promoted by the "U.S. Green Building Council" organized and operated by the private companies mainly from the construction industry in
the U.S. It is the system to evaluate how a building contributes improvement of the environment from various perspectives such as design concept and materials used.

Link Stone G (EcoMark-certified product: Certification No.08 131 008)
"Link Stone G" series are environmentally-friendly recycling paving materials madefrom waste glass materials such as used bottles. With high weather-resistance andexcellent water permeability, the products avoid puddles being left over and are safe.
This series are the EcoMark-certified products with appropriate asperities allowing
people to walk comfortably on them.

再生材料を使用94％
ガラスカレット
エコマーク認定番号
第08131008号

Art Wall“Art Wall” is an exterior fence that combines an aluminum frame and decorative materials. With a main
light-weight body structure, it delivers the feature of having approximately 1/20* weight compared toa light-weight concrete block fence, while also presenting a sufficiently aesthetic appearance. The fence
is designed to minimize the damage of accidents involving injuries in case of collapse. It is a productwith excellent safety, designated as a “recommended superior part for school facilities” by the ResearchInstitute of Educational Facilities and registered in the New Technology Information System(NETIS) of the Ministry of Land, Infrastructure, Transport and Tourism.
* The weight of Art Wall with seed paint finish is 12kg/m2. Compared to this, the weight ofa concrete block fence is 250kg/m2 (15cm block), which is approximately 20 times larger.

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Priority Goals of Environmental
Protection in FY2022

Environmental Efforts

Priority Goals of Environmental Protection in FY2022
SHIKOKU CHEMICALS CORPORATION Group, which is mainly engaged in manufacturing, is committed to the maintenance and control of facilities, as well
as disaster prevention to ensure stable and safe operations. We also aim to ensure environmental health and the health and safety of local residents andemployees. We will achieve this through the reduction of greenhouse gas emissions generated at each site, reduction of the use of resources such as energy
and water, and continuous reduction of the burden of chemical substances and industrial wastes on the environment.

Chief Responsible Care Officer
President and C.E.O. Naoto Tanaka

1

Item

Scope

Reduction in greenhousegas(GHG) emissions(CO2 equivalent)

SHIKOKU CHEMICALSCORPORATION Group(Scope 1,2)

TargetPolicy•FY2029 : 38% from FY2013•FY2025 : 30% from FY2013(Unit consumption of sales)*Priority goals are set based on the national policy
seeking carbon neutrality, and periodic reviews are
implemented to continuously improve these.

2

Reduction in energy
consumption(Crude oil equivalent)

SHIKOKU CHEMICALSCORPORATION Group(Scope 1,2)

•Reduction by 1% compared to the previous year
(Energy consumption rate)

SHIKOKU CHEMICALSCORPORATION(Scope 1,2)

•Reduction by 1% of the 5-year average(Energy consumption rate)

SHIKOKU CHEMICALSCORPORATION(Transportation)•Reduction by 1% compared to the previous year
(Energy consumption rate)[ Office ]•Implementing Cool Biz and Warm Biz•Strictly obeying the rule to set the temperature at energy
saving ranges•Updating to highly efficient equipment (LED luminaire)[ Transportation ]•Improving the efficiency in transportation of products(efficient use of transportation routes, rationaltransportation of freight, consolidated shipping, etc.)•Cooperation in the promotion of eco-drive

3

Reduction in water
consumption

The three chemicalplants•FY2025 : 3% from FY2020(Production volume unit)

4

Expanding the ratio ofrenewable energy sourcesin electricity consumption

SHIKOKU CHEMICALSCORPORATION Group•FY2025 : 10% or more

•Developing goals and installing in-house renewableenergy equipment•Procure electricity from renewable energy sources tocover shortfalls

5Management andreduction of environmental
impact on water and air

Plant facilities•Discharge of wastewater into areas below thedischarge criteria of the Water Pollution Prevention
Act and other related laws
•Emissions into the atmosphere below the emission
criteria of the Air Pollution Control Act and otherrelated laws

•Analysis and monitoring of waste discharged into water/
atmosphere•Compliance with national and local laws and regulations•Control based on in-house criteria set stricter than legal
standards

6

Reduction in industrial waste
to be processed externally

Plant facilities•Equal to the previous year or lower•Working on 3R activities, for example, with reviews of
raw materials and packaging•Promotion of the use of groupware and digitalization of
documents

7

Participation and cooperationin safety and environmental
conservation activities

SHIKOKU CHEMICALSCORPORATION Group•Safe and stable operations•Participation in local environmental conservation
activities•Promotion of environmental conservation activities
in cooperation with business partners•Facility maintenance, facility security, and disasterprevention•Participation in local activities near our operation sites•Operation of the procurement system■Scope•SHIKOKU CHEMICALS CORPORATION Group : All of the SHIKOKU CHEMICALS CORPORATION Group companies•SHIKOKU CHEMICALS Corp. : SHIKOKU CHEMICALS CORPORATION alone•The three chemical plants : Marugame Plant, Tokushima Plant, Oita Plant•Plant facilities : Marugame Plant, Tokushima Plant, Tadotsu Plant, Naruto Plant, Ranzan Plant, Oita Plant, Takase Plant

15[ Plant facilities ]•Promote improvement activities to increase production
efficiency, reduce waste, and improve equipment
performance•Optimization of operating conditions for facilities thatuse heating, air conditioning equipment, freezers, andrefrigerators•Consideration of renewable energy use

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Environmental Efforts

SHIKOKU CHEMICALS CORPORATIONGroup’s Climate Change Action

SHIKOKU CHEMICALS CORPORATION Group’s Climate Change Action(Commitment to TCFD* Recommendations)
SHIKOKU CHEMICALS CORPORATION Group recognizes that the permanent preservation of the global environment in which people can live in peace is amaterial issue common to all humankind. Moreover, the long-term impact (risks and opportunities) of climate change on our business activities is significant,making it a material management issue. The international frameworks, the Paris Agreement, and the Sustainable Development Goals (SDGs) also necessitatea stronger action on climate change. Our group aims to contribute to the realization of a sustainable society by working in harmony with the global
environment in all aspects of business activities.
* TCFD : Task Force on Climate-related Financial Disclosures. Individual companies are required to disclose the impact of climate change on their financial reporting.

GovernanceOur group’s sustainability activities, including climate change, are overseen by the Board of Directors and reflected in management.
To strengthen the group’s overall sustainability activities, the president is positioned as the Chief Responsible Care* Officer. Additionally, an RC
Promotion Committee, consisting of executive officers, has been established under this position.
RC Promotion Committee meetings (held twice a year) check the progress of targets and set agendas for continuous improvement under theleadership of the committee chair, who is responsible for promoting specific activities. The results were reported and supervised by the Board of
Directors.
* For more information on Responsible Care, see Page 9.

Organizational Chart for Climate Change

SHIKOKU CHEMICALS CORPORATION Board of Directors
ReportingOversight

President and C.E.O.
Supervision / Management【RC Promotion Committee】
・Sharing sustainability issues (including climate change) and setting action policies
・Confirmation and review of KPI progress related to RC promotion

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SHIKOKU CHEMICALS CORPORATIONGroup’s Climate Change Action

Environmental Efforts

Strategy
The company has identified the following as material, physical and transition risks and opportunities related to climate change.
Based on scenario analysis, we will continue efforts to increase resilience to climate change.
Type of Risks / Opportunities
2℃

Strengthening legal regulations

2℃

Expansion of information disclosure obligations

2℃

Delayed response to environment-friendly technologies

2℃

Increased investment and R&D costs for environment-friendly technologies

Policy / Legal / Regulatory Risk

Technology Risk

Transition Risk

2℃

4℃

Decreased demand for products with high environmental impact

Market Risk
2℃

Longer product life cycle

Reputation Risk

2℃

Decline in appreciation by stakeholders

Acute Risk

2℃

4℃

Incidence of abnormal weather

4℃

Increased abnormal weather

Physical Risk
Chronic Risk

Opportunities

Improvement of Resource Efficiency

2℃

Improved resource conservation and recycling

Energy Sources

2℃

Shifting energy sources to create business opportunities

Products and Services

2℃

4℃

Increased opportunities to capture markets through the development ofenvironment-friendly products and goods

Stock Market

2℃

4℃

Enhance corporate image by promoting environment-friendly products andinformation disclosure

Resilience

2℃

Improved ability to adapt quickly to market changes associated with climatechangeTo identify and assess risks, we referred to the Guidebook for Promoting Decarbonization Management published by the Ministry of theEnvironment and other sources.
Most material risks and opportunities were identified by assessing the risks and opportunities faced by the company in relation to climate changeusing the criteria in the table below, based on the timing of manifestation and the degree of impact on the company’s business.
Time of Risk Manifestation

17

Business Impact

Likelihood of Incidence

TimingMagnitude of Impact

Impact10-30 years

Long term

Significant impact

Large3-10 years

Medium term

Temporary impact

Medium0-3 years

Short term

Minor impact

Small

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SHIKOKU CHEMICALS CORPORATIONGroup’s Climate Change Action

Environmental Efforts

Risk Management
The RC Promotion Committee, in consultation with the risk management division, annually identifies company-wide risks. The policy for responding
to the material risks identified through the above risk assessment process is reviewed annually upon consultation with the RC Promotion
Committee and risk management divisions. The results of the above risk assessment are then reported by the RC Promotion Committee to theBoard of Directors, which is responsible for corporate risks, and further climate change risks are incorporated into the corporate risks.

Indicators and Targets
The GHG emissions were selected as indicators of climate change. In addition, we disclose the following indicators for Scope 1 and 2 as GHG
emissions.
Item

1

Reduction in greenhousegas (GHG) emissions(CO2 equivalent)

Scope

SHIKOKU CHEMICALSCORPORATION Group(Scope 1,2)

SHIKOKU CHEMICALSCORPORATION Group(Scope 1,2)

2

3Reduction in energy
consumption(Crude oil equivalent)Management andreduction ofenvironmental
impact on water and air

SHIKOKU CHEMICALSCORPORATION(Scope 1,2)

TargetPolicy•FY2029 : 38% from FY2013•FY2025 : 30% from FY2013(Unit consumption of sales)*Priority goals are set based on the national policy
seeking carbon neutrality, and periodic reviews are
implemented to continuously improve these.

•Reduction by 1% compared to the previous year
(Energy consumption rate)[ Office ]•Implementing Cool Biz and Warm Biz•Strictly obeying the rule to set the temperature atenergy saving ranges•Updating to highly efficient equipment (LED luminaire)•Reduction by 1% of the 5-year average(Energy consumption rate)

SHIKOKU CHEMICALSCORPORATION(Transportation)•Reduction by 1% compared to the previous year
(Energy consumption rate)

Plant facilities•Discharge of wastewater into water areas below
the discharge criteria of the Water Pollution
Prevention Act and other laws
•Emissions into the atmosphere below the emission
criteria of the Air Pollution Control Act and otherlaws•Scope 1 : Direct GHG emissions from the business itself (fuel combustion and industrial processes)•Scope 2 : Indirect emissions from electricity, heat, and steam supplied by other companies[ Plant facilities ]•Promote improvement activities to increase production
efficiency, reduce waste, and improve equipment
performance•Optimization of operating conditions for facilities thatuse heating, air conditioning equipment, freezers, andrefrigerators•Consideration of renewable energy use[ Transportation ]•Improving the efficiency in transportation of products(efficient use of transportation routes, rationaltransportation of freight, consolidated shipping, etc.)•Cooperation in the promotion of eco-drive•Analysis and monitoring of waste discharged into
water/atmosphere•Compliance with national and local laws andregulations•Control based on in-house criteria set stricter thanlegal standards(Excerpts from the Priority Goals of Environmental Protection in FY2022)

Items to be considered for Disclosure in the Future
We will continue to consider ways to expand our disclosure of the scenario analysis and the financial impact of each risk and opportunity.

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Relationship with Society

Respect for Individuality and
Human Rights

Respect for Individuality and Human Rights
Policy/Concept
1.Respect for Human Rights
We respect the individuality and the rights of all people.
We do not discriminate on the basis of birth, nationality, ethnicity, belief, religion, gender, age, disability, educational background, etc.

2. Non-Complicity in Human Rights Violations
We request that all employees refrain from infringing on human rights or discriminating against others, and that they not become involved in humanrights violations, even indirectly.

3. Employment and Labor Policies<Prohibition of Forced Labor and Child Labor>
We prohibit the employment of children who have not reached the working age stipulated by national and local laws and regulations. In addition,
we will not tolerate forced labor, slave labor, or labor from human trafficking. We require our business partners to do the same. We will not impose
unreasonable restrictions on employees leaving their jobs or terminating employment at any time.

<Good Labor-Management Relations>
We guarantee the freedom of employees to form a union and approve the right to collective bargaining.

<Correct and Fair Compensation>
We pay our employees fair and correct compensation in accordance with all applicable wage laws, including minimum wage, overtime, and legally
mandated benefits laws.

<Elimination of Discrimination>
We ensure equal opportunity in recruitment, assignment, promotion, and competence development.

4. Remedial Action
If our business activities have resulted in a human rights violation, we will take appropriate measures to remedy and correct it.
In 1966, we concluded a labor agreement with our labor union. We are committed to respecting each other’s positions and cooperating with eachother in the spirit of mutual trust to ensure sound development of the company and improvement of the welfare of union members. We have promised
to comply with the safe and peaceful labor-management relationship that we have established.

[Reference] The labor agreement was concluded with the UA-Zensen SHIKOKU CHEMICALS Labor Union.
(Right to Collective Bargaining)
Article 1 The Company shall acknowledge that the Union is a legitimate representative of union members and shall negotiate with the Union onlabor conditions of union members.

(Confirmation of Rights)
Article 2 The Company shall acknowledge the Union’s right to solidarity, right to collective bargaining, and other collective action rights, and theUnion shall confirm the management rights of the Company.

(Freedom of Union Activities)
Article 9 The Company shall accept the freedom of union activities of union members, and shall not discriminate in treatment on the grounds ofbeing a union member, or of conducting a legitimate union activity.

Our company aims to “create a bright workplace where the human rights of each employee are respected, and individual abilities and individuality canbe fully demonstrated”, and is engaged in human rights awareness for employees. To avoid forced labor, we provide harassment prevention education
to managers. In addition, we adopt procedures to confirm that workers are at or older than the minimum age based on identification documents at thetime of employment to avoid employment of child labor.

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Procurement

Procurement
Procurement Policy
SHIKOKU CHEMICALS CORPORATION Group, according to its corporate philosophy of “Doku-sou-ryoku (creativity)”, considers addressing global
environmental and social issues as one of its most important management policies. It aims for sustainable development through the commitment to the“YONPO-YOSHI” activity policy of the long-term vision, “Challenge 1000”.
Regarding procurement, we have established a procurement policy to ensure fair and transparent trading with our business partners, and we aim to fulfill
our social responsibility in cooperation with them.
Our group’s procurement policy also covers conflict minerals (tin, tungsten, tantalum, and gold)* produced in the Democratic Republic of Congo andsurrounding conflict areas.

1.Compliance with Laws and Social Norms
We will comply with all domestic and foreign laws, social norms, and international rules.

2.Fair, Just, and Transparent Trading
We will conduct our trading in a fair, just, and transparent manner.

3.Consideration for Human Rights, Environment, and Other Social Responsibilities
To realize a sustainable society, we will strive to procure goods with due consideration of human rights and the preservation of global environment.

4.Optimal Procurement
We will conduct optimal procurement for the company by comprehensively assessing quality, price, delivery time, service responsiveness, occupational
health and safety, and the environment.

5.Building Partnerships
All officers and employees of the SHIKOKU CHEMICALS CORPORATION Group shall comply with and live the Charter of Corporate Behavior and Codeof Business Conduct and strive to build a relationship of mutual cooperation and trust with our business partners.
*Conflict minerals : Some minerals produced in the Democratic Republic of Congo and neighboring countries are used to finance inhumane armed groups. Efforts to eliminate the use ofsuch conflict minerals, including the Financial Regulatory Reform Act passed in the United States in 2010, are expanding worldwide.

The group takes the issue of conflict minerals seriously and will practice responsible mineral sourcing to ensure that it is not complicit in conflict andinhumane activities.

Matters to be addressed with Business Partners
SHIKOKU CHEMICALS CORPORATION Group recognizes that, in order to earn the trust of society in the course of its business activities, it is necessary toaddress social responsibility not only within the group, but also throughout the entire supply chain, including the business partners.
We are committed to working with our business partners on the following topics to fulfill our corporate social responsibility and achieve mutual prosperity
and survival.

(1) Compliance with Laws and Regulations, Social Norms, and Ethics(2) Respect for Human Rights and Trade(3) Focus on Occupational Safety, Health, Environmental Protection, and Quality* We may check the status of actions on the above topics in our survey and audits, and we would appreciate the cooperation in this regard.

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Relationship with Society

Product Liability

Quality Initiatives

Product Liability
Product Safety
We comply with the regulations in each country based on the GHS*1 Guidelines recommended by theUnited Nations and prepare a safety data sheet (SDS) for every chemical product, which allows us toprovide information on hazards and toxicity, first aid measures, measures to be taken in case of fire orleakage, handling and storage precautions, physical and chemical properties, information on
environmental impacts, disposal and transport precautions, and applicable laws and regulations, etc.
In this way, we show customers how to handle our chemical products safely in an easy-to-understandmanner. We also implement surveys on the status of environmental management and regulated
substances with our suppliers, from whom we purchase products on a regular basis, and provide
information quickly to our customers.

SDS*1 GHS : Globally Harmonized System of Classification and Labelling of Chemicals

Safety in Logistics
In case of accidents during transportation, we issue the emergency contact card, "Yellow Card",
containing the contents of safe measures to be taken by the carrier, police, fire fighters, and otherpeople concerned in dealing with the accidents. We also annually provide contract carriers with training
for unexpected accidents including things to be carried with them in transportation. These cards contain
information such as names of the substances transported, their properties, first aid measures, andemergency contact.

Yellow Card

Quality Initiatives
1

PolicyOur group has formulated “Challenge 1000”, the long-term vision we aim to achieve by 2030, and “Toward ‘one-step-ahead, proposal’ company withcreativity” as our desired state for 2030. Under this long-term vision, we will aim to achieve a state in which each and every one of us continues to provide
products, services, and values that are one step ahead.
To achieve these goals, we have established the SHIKOKU QUALITY POLICY and will implement PDCA cycle activities based on this policy across the group.
In addition to the quality of products, we will strive to continuously improve SHIKOKU QUALITY through efforts, for example, to improve the quality ofservices, take into consideration environment and safety, and increase the level of satisfaction at related departments within the company.

SHIKOKU QUALITY POLICY

2“Improve not only products, but also the levels of all activities”

Initiatives : Creation of Customer Value through Participation of all Employees (YONPO-YOSHI)SHIKOKU QUALITY refers to the quality of all activities related to products, services, and values provided by SHIKOKU CHEMICALS CORPORATION Group to
our customers.
We provide SHIKOKU QUALITY not only to the customers who use our products and services, but to all of our stakeholders, including employees,
shareholders, and society.

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3

Quality Initiatives

System Diagram Based on the Policy

SHIKOKU QUALITY POLICY

Plan

Changes in Environment

SHIKOKU CHEMICALS CORPORATION
Plan by Each Division

Plan by Each Group Company

Action Plan

Target for Next Year

Action Plan by Each Department

Action Plan by Each Department

Results and Challenges

Action Plan by Department Members

Action Plan by Department Members

4

Progress on Activities related to ISO 9001

The quality assurance system for our company is based on ISO 9001. Marugame Plant, Tokushima Plant (Kitajima location,Yoshinari location), Tadotsu Plant(SHIKOKU KEIZAI CORPORATION), Takase Plant (NIHON KOHKI CORPORATION), and Shikoku Analytical Laboratories have obtained ISO 9001 certificationand have received maintenance and updates by qualified certification organizations.
Marugame Plant ISO 9001 certificate

Tokushima Plant (Kitajima location) ISO 9001 certificate

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Relationship with Society

Support and Development of
Employees

Support and Development of Employees
1Work Support

With a declining birthrate and an aging population, we are offering employees various kinds of support programs that make it possible for them to achievea balance between work and family, encouraging employees who need to provide childcare or nursing care to work with peace of mind.
◯Period of Childcare / Nursing Care Leave

Employees are able to take childcare leave until the child turns the age of 1 year and 6 months. They may also take up to one year of leave for each family
member in need of nursing care, which may be divided into at most three times in a case.
◯Accumulated Annual Leave
For general employees, up to 40 days of expired, unused paid leave accumulated over a period extending up to three years may be used as sick leave.
◯Mutual Aid Association
In accordance with the spirit of mutual cooperation, we implement mutual relief and welfare enhancement for employees, including injury and disease
benefits, congratulatory or condolence money, and solatium money.
◯Mutual Aid Society
In accordance with the spirit of mutual cooperation, we provide mutual relief to members as benefits such as child education pension to support thehealthy development of the children of any member who dies or retires due to severe disability.
In the future, we will continue to foster a workplace environment and climate to realize an environment where all employees can work with peace of mind.

2

Management of Working Hours

In order to optimize the working hours and working hours management, we trengthened the function of the attendance management system in March
2019. We have used the cloud system and established a mechanism to effectively understand and manage the working hours, and allow employees and theirsuperiors to check the working conditions at all times. To reduce overtime work, for example, we are working to optimize the working hours and improve themanagement of working hours with the introduction of a system which generates an alert when the monthly overtime work hours or the total working hours
reach a certain number.

3

Human Resource Development
Ideal Candidate Profile

Human resources with a strong sense of mission and ability of
taking on challenges by themselves

We are focusing on securing and developing excellent human resources, aiming at “Toward ‘one-step-ahead, proposal’ company with creativity”,as statedin the long-term vision “Challenge 1000”.
In particular, with regard to training employees who engage in business activities, we are working on the development and use of human resources thattake advantage of each employee’s strengths and abilities from a mid- and long-term perspective. The company provides employees with the tools andsupport they need to engage in the independent and ongoing development of their abilities. As a means of providing on-the-job training in daily operations,
we have implemented a system of work targets. Every six months, employees meet with their superiors to complete a full management cycle of Plan, Do,
Check, and Action, which means goal setting, implementation to achieve goals, confirmation of performance, and making use of their results next. Superiors
hold periodic meetings with employees to set goals, check interim progress, and assess outcomes, through discussion and guidance, to steadily raise thebusiness execution capabilities of each employee, with the aim of further boosting their department’s performance.
Employees also have opportunities to attend various seminars, workshops, and social university courses held outside the company as necessary. As foroff-the-job training, we conduct group training for new recruits, regular employees, and managers, apart from daily operations. In addition, for career
enhancement through self-development, we encourage the acquisition of qualifications and attending correspondence education courses; we deliver
rewards to an employee successfully acquires a new qualification and pay for all expenses if an employee successfully completes an education course withexcellent grades.

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Occupational Safety and
HealthOccupational Safety and HealthIn our company, the corporate safety and health meeting, chaired by the President and C.E.O., determines the basic policy on safety and healthmanagement and other important matters concerning the promotion of safety management. Based on the decisions made at this meeting, eachsite devises the “Safety and Health Activity Plan” every year to prevent accidents. Under the “Safety and Health Activity Plan” prepared at eachsite, we hold joint labor-management safety and health committees on a regular basis to promote improvements in the workplace environment.
Furthermore, the Marugame and Tokushima Plants have established and actively operated the occupational safety and health management
systems in accordance with ISO45001.

Marugame Plant

Tokushima Plant (Kitajima location)

Tokushima Plant (Yoshinari location)

Holding the Convention for Safety and Health in Production & Technology Division
The Convention for Product/Technology Safety and Health is organized at the Marugame and Tokushima
Plants, and aims to make both plants reliable for local communities by building culture fostered on
the concept which shows that “Safety overrides everything else”. Top management share their plansto ensure safety, employees communicate with each other through presentations on risk prediction
activities, and excellent safety and health activities are recognized.

Commendation for Safety

Education on Safety
Our safety activities focus on risk assessment, detection of near-miss incidents and concerns, and risk
prediction to prevent the occurrence of serious industrial accidents. In addition, our education andtraining aim to prevent accidents by improving individual risk sensitivity, for example through safety
education involving simulations in which participants can virtually experience an accident caught in amachine and a potential risk in a plant such as combustion and explosion, as well as risk prediction
training to extract potential risks in operations.

Education Involving Simulations

Education on HealthIn activities for occupational health, we work for employees’ health management through theimplementation of mental health workshops, periodical health checkups, counseling, and stresschecks for all employees because mental and physical fatigue or poor physical condition may cause
occupational accidents.
We also provide education on harassment to improve our work environments, where fundamental
human rights are respected.

Succession of Safety (Marugame Plant)

Relationship with Labor Union
Labor and management work in collaboration in a relationship of mutual trust. We focus on specificcollaborative themes such as revision of the personnel system, reduction of overwork, promotion of
yearly paid vacations, and review of the personnel evaluation system. We hold monthly meetings ofthe labor-management expert committee to discuss workplace issues and improve the workplaceenvironment.

Mental Health Workshop

Corporate Social Responsibility Report 2022

24

Relationship with Society

Security andDisaster Prevention

Security and Disaster Prevention
We proactively conduct regular education and training programs on disaster prevention and security, as well as comprehensive disaster drills, tobe prepared for unexpected accidents.
In addition, we developed BCP*2 to secure the safety of employees and ensure early resumption of business activities in preparation for the“Major Nankai Trough Earthquake” that is expected to occur in the near future.
*2 BCP (Business Continuity Plan) : A summary of countermeasures for business continuity in case of disasters and accidents

Manufacturing building reinforced for earthquakes in Marugame Plant

Comprehensive disaster drill in Tokushima Plant

25

Corporate Social Responsibility Report 2022

Comprehensive disaster drill in Marugame Plant

Relationship with Society

Communication and
Collaboration with Stakeholders

Communication and Collaboration with Stakeholders
In our long-term vision “Challenge 1000”, we specify “YONPO-YOSHI” as the company’s activity policy. “YONPO-YOSHI” means to contributeto customers, employees, shareholders, and society. We will deliver “one-step-ahead values” to our customers, “challenges and growth” to ouremployees, more “profit return” to our shareholders, and “a better tomorrow” to society, so that we can contribute to all of our stakeholders.
Our group started business with the production of carbon disulfide, the raw material of rayon, and has been supported by the community
residents and many other people. Even now, we continue to have opportunities to communicate with stakeholders in various situations toconfirm their expectations and demands for our group companies. We believe that it is important to take expectations and demands obtained
through such communication in our supply chain activities for the establishment of trust relationships with stakeholders and sustainable
development.
■List of communication with key stakeholders (as of March 2022)
Stakeholders

Communication

Customers

Contribute to our customers with chemicals and housing materials andtheir quality produced by our creativity.

Information provision to environment surveys and CSR-related surveys

Supplier

SHIKOKU CHEMICALS CORPORATION Group, which operates globally,purchases products from many suppliers.

Survey for supplier environmental management system, audit

Employees

A total of 1,210 employees of SHIKOKU CHEMICALS CORPORATIONGroup. Respect each individual’s personality, strive to ensure their safety
and health.

Collective bargain, labor-management council, education training,
evaluation interview, health and safety committee, compliance hotline

Shareholders /Investors

The total number of issued shares is approximately 54 million sharesand the number of shareholders is 3,986.

General meeting of shareholders IR activities, including a financial results
briefing for investors

Community

In line with the YONPO-YOSHI approach, the company spends up to
1% of its ordinary income on contributions to society and communities.

Community Information provision of business activities, participation inregional volunteer activities,guest lectures at high schools in local Kagawa
Prefecture, industry-academia collaboration with Kagawa University, Donation
to Mitoyo City, execution of a partnership agreement with Marugame City

Guest lectures at high schools(Conducted as part of community contribution)

T o p ic s

Executed “Partnership Agreement on Development ofThriving Neighborhoods” with Marugame City

As a new business, the company is working on the development of “PARKLET*”,whichtakes advantage of the design and safety features that are the strength of company’s
exterior products, aimed at developing “comfortable neighborhoods perfect for a stroll”, aconcept promoted by the Ministry of Land, Infrastructure, Transport, and Tourism.
As part of this effort, from 2021, we began studying the development of thriving
neighborhoods in Marugame in partnership with the Marugame City Urban Planning
Division, the Department of Community Development Promotion of Kagawa University,and local residents through collaboration among industry, government, academia, andthe private sector. To further promote these efforts and work together to create thriving
neighborhoods and revitalize local communities, we have executed a “Partnership
Agreement on Development of Thriving Neighborhoods in the City of Marugame”. The
revitalization of neighborhoods centered on PARKLET will be a new challenge for thecompany, and we will continue to work with Marugame City to vitalize communities.

In-kind at PARKLET (Takamatsu Port Ferry Pier)*PARKLET is a temporary structure for rest and relaxation where pedestrians can casually rest, eat, etc.,
in a surplus space on the road, through which we aim to create new relaxation spaces and revitalize
communities.

Corporate Social Responsibility Report 2022

26

ESG Performance Data

CO2 emission(Scope1,2)

Indicator

Unit

Scope

FY2017FY2018FY2019FY2020

FY2021

Emission

Thousand t

SHIKOKU CHEMICALS Corp.

42.6

44.0

42.2

32.9

47.9

Unit consumption

tCO2/Thousand t

SHIKOKU CHEMICALS Corp.

0.6

0.6

0.7

0.6

0.6

Emissionfrom 2013 *1

SHIKOKU CHEMICALS Corp.

101.9%

105.2%

100.7%

78.6%

114.5%

Thousand t

Domestic consolidated subsidiary

59.9

61.7

59.0

49.2

64.2

tCO2/Thousand t

Domestic consolidated subsidiary

0.53

0.53

0.55

0.50

0.58

Emission
Unit consumption

Energyconsumption(Crude oil
equivalent)(Scope1,2)Energy basic
unit for producttransportation

Consumptions

Thousand ㎘

SHIKOKU CHEMICALS Corp.

20.4

20.9

20.0

17.7

21.8

Unit consumptionℓ/Thousand t

SHIKOKU CHEMICALS Corp.

294.1

294.3

311.8

308.7

293.2

Consumptions

Thousand ㎘

Domestic consolidated subsidiary

29.0

29.7

28.5

25.9

29.8

Unit consumptionℓ/Thousand t

Domestic consolidated subsidiary

256.8

256.0

267.7

265.7

268.7

Transport volume

million ton-kilometers

SHIKOKU CHEMICALS Corp.

38.2

37.8

36.8

32.3

33.0

Unit consumption㎘ /million ton-kilometers kt

SHIKOKU CHEMICALS Corp.

75.8

79.5

76.6

76.9

76.6

CO2 emissions

kt

SHIKOKU CHEMICALS Corp.

7.7

8.0

7.5

6.6

6.7

SOx and NOx
emissionsSOxt

the three chemical plants

1.0

1.6

1.2

1.5

1.1

NOx

t

the three chemical plants

9.9

12.3

12.2

10.2

9.4

Soot and dust emissions

Soot and dustt

the two chemical plants

0.1

0.3

0.1

0.8

0.0

Water input anddrainage

Input

Ten thousand m3

the three chemical plants

211.9

220.0

200.7

193.4

218.3

Emission

Ten thousand m3

the three chemical plants

181.7

174.0

156.8

158.0

174.9

COD

t

the three chemical plants

4.7

4.8

3.5

4.3

3.2

Total nitrogent

the three chemical plants

14.0

12.3

12.6

16.2

17.8

Water pollutant
Environmental emissions
Wasteemissions

Total phosphorust

the three chemical plants

0.05

0.05

0.05

0.08

0.09

Emissiont

the three chemical plants

1,000.6

1,034.2

931.9

849.5

809.5

kg/t

the three chemical plants

14.5

14.6

14.5

14.8

10.9

Total

t

the three chemical plants

132.4

266.2

168.8

230.8

230.9

Air

t

the three chemical plants

94.5

194.3

111.5

120.5

112.7

Public waterst

the three chemical plants

0.2

0.2

0.0

0.2

0.4

Industrial wastet

the three chemical plants

38.2

71.7

57.3

110.6

117.8

Air

t

the three chemical plants

94.0

194.1

111.0

120.2

112.7

Public waterst

the three chemical plants

0.0

0.0

0.0

0.0

0.0

Industrial wastet

the three chemical plants

0.0

0.0

0.0

0.0

0.0

Emission andmovement of
tolueneAirt

the three chemical plants

0.0

0.0

0.0

0.0

0.0

Public waterst

the three chemical plants

0.0

0.0

0.0

0.0

0.0

Industrial wastet

the three chemical plants

13.2

46.7

24.2

72.1

48.8

Emission andmovement ofxyleneAirt

the three chemical plants

0.0

0.0

0.0

0.0

0.0

Public waterst

the three chemical plants

0.0

0.0

0.0

0.0

0.0

Industrial wastet

the three chemical plants

7.1

7.0

9.5

9.7

21.7

Emission andmovement of
ethylbenzene

Airt

the three chemical plants

0.0

0.0

0.0

0.0

0.0

Public waterst

the three chemical plants

0.0

0.0

0.0

0.0

0.0

Industrial wastet

the three chemical plants

8.3

8.2

11.2

11.4

25.5

Emission andmovement of
substances
specified in
PRTR*2Emission andmovement ofcarbon disulfide

Unit consumption

The three chemical plants: Refer to Marugame Plant, Tokushima Plant (Kitajima location), and Tokushima Plant (Yoshinari location).
The two chemical plants: Dust is applied to Tokushima Plant (Kitajima, Yoshinari locations). Dust is eliminated at Marugame Plant due to the change to city gas.
*1 CO2 emissions in 2013 were 41,800 tons.
*2 Top four substances (accounting for 90.4%) of emissions and movement : carbon disulfide, toluene, xylene and ethylbenzene.

27

Corporate Social Responsibility Report 2022

ESG Performance Data
Unit

Scope

FY2017FY2018FY2019FY2020Work-related fatalities

Indicator

Case

SHIKOKU CHEMICALS Corp.

0

0

0

0

0

Rate of accidents resulting in absence from work–

the three chemical plants

3.2

5.2

10.3

0.0

2.7

PeopleSHIKOKU CHEMICALS CORPORATION Group

1,131

1,167

1,206

1,194

1,210

PeopleSHIKOKU CHEMICALS Corp.

642

660

660

618

619

PeopleSHIKOKU CHEMICALS Corp.

528

543

538

495

492

Number of employees
Number of employees (men)Number of employees (wemen)PeopleSHIKOKU CHEMICALS Corp.

114

117

122

123

127

Average age (men)Age

SHIKOKU CHEMICALS Corp.

36.3

37.5

40.3

41.0

40.8

Age

SHIKOKU CHEMICALS Corp.

36.8

38.1

39.9

39.8

39.3

Average length of service (men)Years

SHIKOKU CHEMICALS Corp.

14.3

15.4

15.4

16.9

16.7

Average length of service (wemen)

Years

SHIKOKU CHEMICALS Corp.

13.4

13.8

14.0

14.1

13.9

Average monthly overtime hours

Hours

SHIKOKU CHEMICALS Corp.

14.7

17.2

17.3

16.2

17.7

Number of new graduate hires

PeopleSHIKOKU CHEMICALS Corp.

14

14

18

18

21

Number of new graduate hires (men)PeopleSHIKOKU CHEMICALS Corp.

11

11

13

11

16

Number of new graduate hires (wemen)PeopleSHIKOKU CHEMICALS Corp.

3

3

5

7

5

Number of mid-career hires

PeopleSHIKOKU CHEMICALS Corp.

22

20

17

9

15

%

SHIKOKU CHEMICALS Corp.

38.9

41.2

51.4

66.7

58.3

Average age (wemen)SocialHiring ratio (new graduate hires)(Number of new graduate hires / Number of new hires)

Hiring ratio (mid-career hires)%

SHIKOKU CHEMICALS Corp.

61.1

58.8

48.6

33.3

41.7

Female employment rate%

SHIKOKU CHEMICALS Corp.

17.8

17.9

18.5

38.5

23.1

Turnover rate%

SHIKOKU CHEMICALS Corp.

2.8

4.2

4.0

9.6

5.2

PeopleSHIKOKU CHEMICALS Corp.

2(0)

2(1)

2(0)

6(3)

7(4)

(Number of mid-career hires / Number of new hires)

Rate of acquisition of childcare/family care leave;
figures in ( ) indicate the number of male employees

Governance

FY2021

Rate of paid holiday use%

SHIKOKU CHEMICALS Corp.

53.7

69.2

73.6

69.6

68.0

Annual average salary

million yen

SHIKOKU CHEMICALS Corp.

6.98

6.95

6.90

6.71

6.78

Donations to local communities

million yen

SHIKOKU CHEMICALS Corp.

–

2.7

53.6

8.4

51.5

Number of Internal Directors

PeopleSHIKOKU CHEMICALS Corp.

10

8

8

7

7

Number of Outside Directors

PeopleSHIKOKU CHEMICALS Corp.

2

2

2

3

4

Number of Internal Auditors

PeopleSHIKOKU CHEMICALS Corp.

2

2

2

2

2

Number of Outside Auditors

PeopleSHIKOKU CHEMICALS Corp.

2

2

2

2

2

Number of female executives

PeopleSHIKOKU CHEMICALS Corp.

0

0

0

0

0

Number of managers

PeopleSHIKOKU CHEMICALS Corp.

125

124

126

129

134

Number of female managers

PeopleSHIKOKU CHEMICALS Corp.

3

4

6

6

8

Ratio of female managers%

SHIKOKU CHEMICALS Corp.

2.4

3.2

4.8

4.7

6.0

The three chemical plants : Refer to Marugame Plant, Tokushima Plant (Kitajima location), and Tokushima Plant (Yoshinari location).
SHIKOKU CHEMICALS CORPORATION Group : All SHIKOKU CHEMICALS CORPORATION Group companies are covered.
■ CO2 Emissions (SHIKOKU CHEMICALS CORPORATION · Thousand t)(Thousand t)

50

42.6

44.0

47.9

■ Waste Emissions (The three chemical plants · t)
(t)

1,500

42.2

40

32.9

1,000

30
20

1,000.6

1,034.2

931.9

849.5

809.5

2020

2021

500

10
0

2017

2018

2019

2020

2021

■ Rate of Paid Holiday Use (SHIKOKU CHEMICALS CORPORAATION · %)
(%)

80
60

69.2

73.6

0

2017

2018

■ Ratio of Female Managers (SHIKOKU CHEMICALS CORPORAATION · %)
（％）

69.6

68.0

10
8

53.7

6.0

6
40
4
20
0

2019

2.4

4.8

4.7

2019

2020

3.2

2
2017

2018

2019

2020

2021

0

2017

2018

2021

Corporate Social Responsibility Report 2022

28

GRI Content Index
GRI Content*
Index

Contents

Location Published102-1

Name of the organization(P30) Corporate Profile

102-2

Activities, brands, products, and services(P30) Description of Major Businesses and Products

102-3

Location of headquarters(P30) Corporate Profile

102-4

Location of operations(P30) Corporate Profile

102-5

Ownership and legal form(P30) Corporate Profile

102-6

Markets served(P30) Description of Major Businesses and Products

102-7

Scale of the organization

Asset securities report, (P30) Corporate Profile

102-8

Information on employees and other workers

Asset securities report

102-9

Supply chain(P20) Procurement102-10Significant changes to the organization and its supply chain-

102-11

Precautionary principle or approach(P8) Risk Management102-12External initiatives(P9) Responsible Care, (P12,22) ISO

102-13

Membership of associations

Japan Chemical Industry Association, Japan Electronics Packaging and Circuits
Association, Japan Exterior Construction Association

102-14

Statement from senior decision-maker(P2) Greeting102-16

Values, principles, standards, and norms of behavior(P3~8) About SHIKOKU CHEMICALS CORPORATION, Compliance102-18Governance structure(P7) Corporate Governance, (P9) Environment Promotion System, Asset securities report102-40

List of stakeholder groups(P26) Communication and Collaboration with Stakeholders

102-41

Collective bargaining agreements-

102-42

Identifying and selecting stakeholders(P26) Communication and Collaboration with Stakeholders

102-43

Approach to stakeholder engagement(P26) Communication and Collaboration with Stakeholders

102-44

Key topics and concerns raised-

102-45

Entities included in the consolidated financial statements

Asset securities report102-46

Defining report content and topic boundaries-

102-47

List of material topics(P6) Materiality and Approach of SHIKOKU CHEMICALS CORPORATION Group

102-48

Restatements of information-

102-49Changes in reporting-

102-50

Reporting period(P1) Editing Policy

102-51

Date of most recent report

Back Cover

102-52

Reporting cycle(P1) Editing Policy

102-53

Contact point for questions regarding the reporthttps://www.shikoku.co.jp/inquiry/index-corp.php

102-54Claims of reporting in accordance with the GRI Standards

This report has been prepared with reference to the core options of the GRI Standards.

102-55

GRI content index(P29) GRI Content Index

102-56External assurance-*Global Reporting Initiative (GRI) is an international and independent nonprofit organization that publishes GRI Standards.
The GRI Standards provide a framework for reporting an organization’s impact on the economy, environment, and society, and explain its contribution to sustainable development.

29

Corporate Social Responsibility Report 2022

■ Corporate Profile (as of the end of March, 2022)■ Description of Major Businesses and Products

Trade NameSHIKOKU CHEMICALS CORPORATION

Chemical Products

Foundation

October 10,1947

Inorganic Chemicals : Carbon Disulfide, Insoluble Sulfur, Sodium Sulfate

Capital6,867 million yen

Organic Chemicals

Representative

Naoto Tanaka President and C.E.O.

: Chlorinated Isocyanuric Acid (NEO-CHLOR),
Wastewater Treatment Agent (HIPOLKA)

Fine Chemicals

Number of
Employees

619 (SHIKOKU CHEMICALS alone) ,: Chemical Agents for Printed Circuit Boards,
Imidazole Derivatives

1,210 (including employees in consolidated subsidiaries)

Housing Materials

Sales

54,137 million yen (consolidated statement)Interior: Interior Finishing Materials (Keiso-kabe, walls
made of natural materials), Exterior FinishingMaterials, Paving Materials

Exterior: Gate Doors, Fences, Garages, Shutters

Establishments
Head Office8-537-1, Doki-cho Higashi, Marugame, Kagawa

Branch Offices

Makuhari, Osaka

Sales Offices

Nagoya, Fukuoka, Sendai, Hiroshima, Shikoku,
Kitakanto, Shizuoka, Los Angeles (U.S.A.),
Shanghai (China), Shenzhen (China), Taiwan,
Singapore

R&D CenterUtazu (Kagawa)

PlantsMarugame, Tadotsu,Takase (all three in Kagawa
Prefecture), Kitajima,Yoshinari, Naruto (all three inTokushima Prefecture), Ranzan (Saitama), Oita (Oita)

Subsidiaries Subject
to Consolidated
Accounting·SHIKOKU KEIZAI CORPORATION·SHIKOKU KEIZAI KANTO CORPORATION·SHIKOKU KOSAN CORPORATION·SHIKOKU SYSTEM KOHBOH CORPORATION·Shikoku Foods & Trading Company·Shikoku Foods & Insurance Service Co., Ltd.
·Shikoku Analytical Laboratories·Shikoku Environmental Business Company·Nippon Ryutan Kogyo Co., Ltd.
·NIHON KOHKI CORPORATION·SHIKOKU INTERNATIONAL CORPORATION (U.S.A.)·SHIKOKU CHEMICALS CORPORATION CHEMICALSOPERATIONS SPLIT PREPARATION CORPORATION·SHIKOKU CHEMICALS CORPORATION HOUSING
MATERIAL OPERATIONS SPLIT PREPARATIONCORPORATION·SHIKOKU CHEMICALS CORPORATION SHAREDSERVICES SPLIT PREPARATION CORPORATION· 13 domestic· 1 overseas

Other Business
IT Systems, Fast-food Sales and Other Service Operations■ Sales Amount Constituent Ratio

Others2.2%
Housing
Materials
Operations

33.2%

Chemicals
Operations

64.6%

Corporate Social Responsibility Report 202230

8-537-1, Doki-cho Higashi, Marugame, Kagawa 763-8504
Tel.0877-22-4111
URL.https://www.shikoku.co.jp

Date issued : August 2022 (Next issue: Scheduled for August 2023 ; Previous issue : August 2021)