CSR Report

2017
Creating a Better Future Through Monozukuri

Message from the President

Contributing to the Establishment of a Truly
Introduction
I was appointed Representative Director, President, and CEO
of Central Glass in June of 2017. We are committed to contributing to the establishment of a truly prosperous society
through the spirit of Monozukuri in our core businesses – glassand chemicals.

The Transition to CSR Reports
Central Glass celebrated its 80th anniversary in 2016. From
2017, we are determined to undertake a variety of initiatives
with a new resolve. Up to now, we had been publishing a Social and Environmental Report (“Responsible Care Report”).
From fiscal 2017 onwards, we will be publishing a CSR Reportwith more fulfilling content that will help our many stakeholders to understand the Central Glass Group.

Realizing Our Corporate Philosophy Is CSR
Under the Central Glass Groupʼs Basic Philosophy, “Creating a
Better Future through Monozukuri,” we are working to contribute to the establishment of a truly prosperous society throughthe spirit of Monozukuri. In order to achieve this philosophy, in
addition to setting out a basic policy, we carry out our business activities on the basis of a Code of Conduct shared by all
members of the Group, and a mid-term management plan that
we are striving to achieve.
As we conduct business under our Basic Philosophy, what
we prioritize above all is proposing, developing, and manufacturing products that offer the highest level of customer satisfaction. We believe that the absolute precondition for conducting such business activities is responding to the
expectations of our diverse stakeholders, while also complying
with societal norms.
That is to say, we believe that the achievement of our
Corporate Philosophy is the cornerstone of our management,
and this also corresponds to our CSR. In order to embody ourideal, we are working on a range of initiatives that will enable
us to respond to the demands of a rapidly changing society.
2

CSR Report 2017•Strengthening Our Management Foundation andCorporate Strategy
At Central Glass, we are continually increasing the transparency and fairness of our overall management in order to further expand our revenue and enhance our corporate value. We
observe the entirety of the Corporate Governance Code, andwe have adopted an executive officer system that clearly distinguishes the auditory function of Directors from the business-execution function of Executive Officers in order to ensure the appropriateness and efficiency of our business. We
are also enriching understanding of compliance among our
employees through educational and awareness-raising activities conducted by our Compliance Promotion Committee.
In our Mid-Term Management Plan, we have establisheda target ROE of 8%, and we are promising all of our shareholders a total return ratio of 30% or more. In fiscal 2016,
although we did not reach our target for ROE, we achieved a
total return ratio as promised, with a dividend of 11 yen per
share and share buybacks totaling one billion yen.

Resolving Problems and Creating Value•Creating Pleasant Workplaces
Maintaining and improving working environments in which our
employees can feel safe and secure is essential to the sounddevelopment of our business. We have introduced a systemthat prohibits employees from putting in hours beyond a prescribed limit. Since 2009, we have also been operating a system under which all employees receive stress checks and consult with specialists if any problems are discovered. We havefurther developed systematic measures to offer employees
peace of mind by actively supporting employees who are raising children or caring for family members.
At the same time, in accordance with our belief that
“Monozukuri starts with Hitozukuri,” or the development of human resources, we have also enhanced our educational systems, including those for employee development and thetraining of global human resources. Additionally, in order topromote diversity, we are working actively to provide opportunities for non-Japanese employees and to increase our ratio of

Prosperous Society through Monozukuri
female employees.
Since the majority of our manufacturing is carried out atfacilities that operate around the clock with no breaks, there
are three shifts at our manufacturing sites, including a night
shift. As a result, the makeup of our workforce is skewed toward male employees. In our future hiring, we intend to consciously increase the ratio of female employees at our manufacturing sites, and introduce reforms and improvements thatincorporate womenʼs perspectives.

Tadashi Shimizu
Representative Director, President & CEO
Central Glass Co., Ltd.
CSR Report 20173

Message from the President•Contributing to Society through Monozukuri
Today, promoting electric vehicles is an urgent task throughout the world as a means of tackling issues such as global
warming and environmental pollution due to exhaust emissions. Central Glass is responding to the demands of global
society by developing high-performance electrolytes for thelithium-ion batteries that are essential components of electricvehicles, and manufacturing them at our plants in Japan, Korea, and China. Our efforts to combat global warming continue
with the development and production of a blowing agent for
rigid urethane foam for onsite use and a cleaning agent thatboth display an extremely low global warming potential (GWP).
In fiscal 2016, we finished installing production facilities forthe new low-GWP blowing agent at our Ube Plant, and areready to respond to future demand.
Autonomous driving is also an essential function in an
aging society, and it will require automotive glass with highsurface quality so that the vehicle can accurately take in images from the exterior. In addition to manufacturing productsthat can respond to this demand, Central Glass is also continuing in its development of connected devices that will enable vehicle-to-vehicle communication.
Demand for semiconductors to assist in the realization ofautonomous driving and boost the performance of smartphones and other communication devices is also continuing togrow, and greater precision is needed. Central Glass is manufacturing products essential to semiconductor production
such as process gases, cleaning gases, and water-repellent
drying agents, developed with our proprietary technologies.
We will further strengthen our management foundation sothat we can continue to provide value to society through ourbusiness activities.
We look forward to your continued understanding andsupport as we move forward.

Corporate Philosophy
Basic Philosophy

Creating a Better Future Through Monozukuri*
The Central Glass Group will contribute to the establishment of a truly
prosperous society through the spirit of Monozukuri.
*Monozukuri refers to all the business activities in which the Central Glass Group engages with a basic stanceof integrity and sincerity, including R&D, quality oriented manufacturing, and sales.
Basic Policy• Create new value through original technology.
• Pursue harmony with the environment and harmonious coexistence with society.
• Strive to increase corporate value powered by global growth.
• Aspire to be a vibrant company that respects the pioneering spirit and diversity.

Code of Conduct
1. Take responsibility for oneʼs own actions, and engage in honest corporate activities.
2. Cultivate sensibilities, and constantly pursue original ideas and technologies.
3. Achieve the establishment of a society in which all people can live in comfort and good health, and protect the global environment.
4. Strive to create products that satisfy customers all over the world by learning about different cultures and customs.
5. Respect the diversity of every individual, and never cease to embrace the challenges of the future.

4

CSR Report 2017

CSR at the Central Glass GroupCSR at Central Glass means achieving our Corporate Philosophy.
It is essential to have cooperation and collaboration with ourmany stakeholders in order to fulfill our social responsibility throughour Basic Policy and Basic Philosophy, based on observance of ourCode of Conduct. In recognition of our corporate social responsibility,
Central Glassʼs management applies and promotes the PDCA cyclewith regard to various activities, based on the system shown below.

Our Mid-Term Management Plan

Mid-Term Management Plan

Basic
Philosophy

Shareholders/
Investors

Localcommunity

Code of Conduct

Our Stakeholders
Employees

Customers/
Business partners

Shareholders/
Investors

Local community

2

CSR at the Central Glass Group/Editorial Policy

5

Business Outline of the Central Glass Group6

Products of the Central Glass Group8

Special Features 1

Next-Generation Fluorocarbon Products– Hydrofluoroolefins (HFOs)

10

The Development of Auroverre®
Transparent Screen Glass

12

Corporate Governance and Compliance

13

Environment, Safety & Quality Management

16

Safety19

Environment

22

Quality

25

Employees

27

Society

30

Activities at Individual Plants

32

Editorial Policy

Basic Policy

Customers/
Business
partners

Message from the President

Special Features 2

Basic Strategies•Achieve revenue growth through aggressive investment
in growth businesses.
•Promote structural reforms in existing core businesses.
•Aggressively expand overseas operations and strength
Group management.
•Strengthen our R&D structure with our eyes set ten
years into the future.

Employees

Contents

Central Glass focuses on the idea that “Monozukuri
starts with Hitozukuri” at the foundation of our corporate growth, and we aim to create workplaces inwhich every employee is able to demonstrate his or
her capabilities and skills to the utmost.
Central Glass carries out quality-control initiatives
that always place customer satisfaction first, so that
we can provide products and services that our customers love and can use with peace of mind.
With our business partners, we work to build fair,equitable, and positive relationships of trust.
Central Glass strives to realize rapid and highly transparent information disclosure. Through our financial
results briefings and publications, we are working toprioritize communication with all shareholders andinvestors.
Central Glass contributes to the realization of a sustainable society while recognizing the effect of ourbusiness activities on the environment, striving to
reduce our environmental burden, and growing inharmony with the regions where we do business.

With this CSR report, Central Glass is transitioning fromthe Social and Environmental Report published up to lastyear, and making efforts to provide greater detail on thefull range of our corporate activities to stakeholders.

Reference Guidelines•Environmental Reporting Guidelines 2012 of the Ministry of theEnvironment•Responsible Care (RC) Code of the Japan Responsible Care Council (JRCC)•ISO 26000 (Guidance on social responsibility)

Report Period
April 2016 to March 2017
(The period for overseas companies was from January to December 2016)

Scope of the Report
Central Glass Group(The scope of data was only gathered from the plants and research institutes of Central Glass Co., Ltd. along with some of its subsidiaries.)
Next scheduled publication date: End of September 2018

What Is Responsible Care (RC)?
Most chemical companies voluntarily work to secure the environment, safety, and health throughout every process, fromthe development stage for chemical substances through totheir manufacture, distribution, use, final
consumption, and lastly their disposal.
Those companies then publicize the results of these activities so as to engage
themselves in dialogue and communication with society. These activities are referred to as responsible care.
Responsible
Care®

CSR Report 20175

Business Outline of the Central Glass Group
Corporate Outline (as of March 31, 2017)
Company NameCentral Glass Co., Ltd.

Established

October 10, 1936

Number of Employees

1,662 (7,236 consolidated)

Capital18,168.28 million

EuropeListed Stock Exchange Tokyo Stock Exchange

Carlex Glass Luxembourg, S.A. (Luxembourg)
Central Glass Germany GmbH (Germany)
Central Glass Europe Limited (UK)
Apollo Scientic Limited (UK)Central Glass Czech s.r.o. (Czech)

List of Workplaces
Head OfficeKowa-Hitotsubashi Bldg.,
7-1 Kanda-Nishikicho 3-chome,
Chiyoda-ku, Tokyo, Japan

ChemicalResearch Center (Tokyo)

17-5 Nakadai 2-chome,
Kawagoe City, Saitama

ChemicalResearch Center (Ube)5253 Okiube, Ube City, Yamaguchi

Glass Research Center

1510 Okuchi-cho, Matsusaka City, Mie

Ube Plant

5253 Okiube, Ube City, Yamaguchi

Matsusaka Plant

1521-2 Okuchi-cho, Matsusaka City, Mie

Matsusaka Plant
Sakai Mfg. Site

6 Chikko-minamimachi,
Sakai-ku, Sakai City, Osaka

Kawasaki Plant

10-2 Ukishima-cho, Kawasaki-ku,
Kawasaki City, Kanagawa

Taiwan Central Glass Co., Ltd. (Taiwan)
Central Glass (Zhangjiagang) Co., Ltd. (China)
Giga Gas & Electronic Materials Company (Taiwan)
Giga Gas & Electronic Materials Trading (Shanghai) Co., Ltd. (China)
Giga Gas & Electronic Materials (Singapore) Pte. Ltd. (Singapore)
Zhejiang Central Glass Chemspec Company Ltd. (China)
JCEL Co., Ltd. (South Korea)

Asia

Central Glass Trading (Shanghai) Co., Ltd. (China)
Central Glass Korea Co., Ltd. (South Korea)
Central Glass Company India Private Limited (India)
Yue Sheng Industrial Co., Ltd. (Taiwan)
Saint-Gobain Central Sekurit (Qingdao) Co., Ltd. (China)
Japan Vietnam Fertilizer Company (Vietnam)

Trends in net sales andordinary income (consolidated)

Trends in
the number of employees

Net sales
Ordinary
Netsalessales
Ordinary
incomeincome
Net
Ordinary
incomeNon-consolidated
Consolidated
Non-consolidated
Consolidated
Non-consolidated
Consolidated

235,361
235,361
235,361
228,898
228,898
228,898
199,010
199,010
199,010
15,09115,091
14,61514,615 15,091
14,32114,321 14,615
14,321(Unit:
million yen)
(Unit:
millionyen)(Unit:
millionyen)(Unit: people)(Unit:
people)(Unit:
people)7,2367,236
7,0527,052 7,236
6,7586,758 7,052
6,758

FY2016sales by segment (consolidated)

3434
34
%% %

Chemicals
business
Chemicals
business
Chemicals
business

78.778.7
78.7

billionbillionyen
yen yenbillionTotal Total
Total

228.9
228.9
228.9
1,6451,645 1,662
1,6621,662
1,5721,572 1,645
1,572

2016
(FY) (FY)2014 2014 2015
2015 2015 20162016 (FY)2014
6

CSR Report 2017

2016
(FY) (FY)2016 (FY)2014 2014 2015
2015 2015 20162014

billionbillionyen
yen yenbillion

6666
66
%% %

Glass business
Glassbusinessbusiness
Glass

150.2
150.2
150.2

billionbillionyen
yen yenbillionNorthwestern Industries, Inc. (US)Central Glass America Inc. (US)Central Glass International, Inc. (US)
SynQuest Laboratories, Inc. (US)Japan

Central Glass Sale Co., Ltd.
Central Glass Engineering Co., Ltd.
Takada Co., Ltd.
Tohoku Garasu Kenzai Co., Ltd.
Bishu Silica Sand Co., Ltd.
Mie Glass Industry Co., Ltd.
Central Glass Plant Services Co., Ltd.
Central Saint-Gobain Co., Ltd.
Central Glass Module Co., Ltd.
Japan Tempered & Laminated Glass Co., Ltd.

America

Central Chemical Co., Ltd.
Central Glass Fiber Co., Ltd.
Tosho Central Co., Ltd.
Ube Trading Co., Ltd.
Sowa Transportation and Warehouse Co., Ltd.
Central Engineering Co., Ltd.
Ube Analytical Center Co., Ltd.
Ube Yoshino Gypsum Co., Ltd.
TOKUYAMA & CENTRAL SODA Inc.
Central Insulation Co., Ltd.

Business Division/Segment/Major Products

Glass
Business

Chemicals
Business

Architectural
glass

Float glass, figured glass, wired glass, heat reflective glass, fabricated glass (tempered glass, heat-resistant glass,laminated glass, insulating glass units, security glass), mirrors, anti-fog mirrors, decorated glass

Automotiveglass

IR-cut glass, UV-cut glass, glass antennas, privacy glass, module glass, acoustic glass, glass with conductive heating
defogger print, head-up display glass, and other various safety glasses

Glass forelectronic materials

Thin flat glass for LCDs, chemical tempered glass, powder glass and glass paste

Basic chemicals

Fluorocarbon products, polyaluminum chloride, gypsum, hydrofluoric acid

Fine chemicals

Active ingredients & intermediates for pharmaceuticals/agrochemicals, fluorinated organic/inorganic compounds, highpurity fluorine gases, electronic materials, electrolytes for lithium-ion batteries, fluorinated organic/inorganic reagents

Fertilizers

NPK compound fertilizer, NK compound fertilizer, coated fertilizer, organic chemical fertilizer, fertilizer materials,
microbiological plant-protection agents/materials

Glass fibers

Glass fibers, glass wool

CSR Report 20177

Products of the Central Glass GroupThe Central Glass Group supplies products related to the fields of glass and chemicals. Although the products of Central Glass may not
be visible to the general consuming public, they support many aspects of a comfortable daily life, as well as a well-functioning society
and industry. We provide raw materials for glass products used in commercial buildings, residences and automobiles, as well as raw
materials for industrial products, materials supporting industrial production processes, fertilizers, and pharmaceutical products.
The Central Glass Group is continually pursuing possibilities for the manufacturing and technologies in which we excel along withtaking on the challenges of new fields in the future as well in order to develop and provide environmentally friendly products andproducts that take peopleʼs health and safety into consideration.

6

1

8

5

2
12

Glass

Agri-Bio

1. Architectural glass

6. Environmentally Friendly Agricultural Materials

Glasses like eco-glass, security glass, and soundproof glass that save energy
and contribute to more comfortable interiors

2. Automotive glass

ガラス

Laminated glass and tempered glass for automotive windows, and high-performance glass such as heat-insulating glass that contributes to environmental
protection

3. Glass１、建築・住宅用ガラスfor Touch Panels

Ultra-thin glass for touch sensor panels and cover glass

4. Lead-Free
and Anti-Fog Mirrors
２、自動車用ガラス

Environmentally friendly lead-free mirrors without the harmful components
usually used in back coatings, and anti-fog mirrors with special coatings applied to their surfaces in order to prevent fogging

A controlled-release fertilizer developed based on the concepts of an ideal
fertilizing effect, labor saving and low cost, and environmental friendliness.
Highly effective, so less of the product needs to be used.

Microbial Control Agents

肥料

Anti-microbial agricultural chemicals suitable for organically or specially cultivated agricultural products. Extremely safe for humans, animals, and crops.
Can be used until just before harvest, without being counted toward the number of times pesticides are used.

６、環境配慮型農業資材

３、タッチパネル用ガラス

化学品

４、無鉛鏡・防曇鏡

７、ウレタンフォーム発泡剤

５、オーロヴェール

８、マグネシウム鋳防燃ガス

5. Transparent Screen Glass (Auroverre®)

Glass screens that combine the transparency of glass with the ability to project images

8

Coated Fertilizer Cera-coat®

CSR Report 2017

7

10

２４

9

4

11
3

Basic chemicals

Glass fibers

7. Urethane Foam Blowing Agents

11. Resin-Reinforced Materials (bathtubs, etc.)

One of materials for the heat-shielding rigid urethane foam used in refrigerated equipment such as showcases

Fine chemicals
8. Fluorine Products for Electronic Materials

Glass fiber widely used in such diverse applications as fiber-reinforced plastic
for bathtubs, housing, automobiles, ships, and electronic products

12. Automotive Sound-Absorbing Materials

ファインケミカル
and sound absorption in automobiles, railcars, etc.

Glass wool, a noncombustible, fire-resistant material used for heat insulation

９、リチウムイオン電池

Fluorine-based process gases, cleaning gases, and resist materials employedin the production of semiconductors and LCD panels used in computers andsmartphones

9. Electrolytes for Lithium-Ion Batteries

１０、医薬品原薬・中間体

For applications such as electric vehicles (EVs) and hybrid vehicles

ガラス繊維
10.Active Ingredients & Intermediates for Pharmaceuticals
Active ingredients and intermediates for pharmaceuticals such as anesthetics
and antiulcer drugs utilizing fluorine chemicals and other technologies developed in-house

１１、樹脂補強材（浴槽など）
１２、自動車用吸音材

CSR Report 20179

Special Feature 1 Next-Generation Fluorocarbon Products – Hydrofluoroolefins (HFOs)

Next-Generation Environmentally Friendly
Blowing Agents and Solvents
History of Chlorofluorocarbon Regulation
Chlorofluorocarbon Regulation and Central Glassʼs Business
Chlorofluorocarbons (CFCs) were developed in the 1920s as coolants for refrigerators and similar devices. Demand for CFCs increased from the 1960s onward.
However, the effect of CFCs in depleting the ozone layer andcontributing to global warming became known with the discoveryof the mechanism of ozone depletion in 1974, creating a need forthe development of alternative substances.
Against this backdrop, Central Glass developed the fluorinebased blowing agent HFO-1233zd(E), used mainly in rigid urethane foams, and the fluorine-based solvent HFO-1233zd(Z),used mainly to clean metals and electronic components. These
are non-CFC products that can replace CFCs.

Major Events in Relation to CFC Regulation
1974 Discovery of mechanism of depletion of ozone layer
1985

Adoption of Vienna Convention→ Decision to protect the ozone layer

1987

Adoption of Montreal Protocol→ Decision to regulate production of designated CFCs

1992

Adoption of United Nations Framework Convention on Climate Change→ Agreement to combat global warming

1997

Adoption of Kyoto Protocol→ Decision to regulate emissions of greenhouse gases (including HFCs)

2015

Adoption of Paris Agreement →Decision to make efforts to combat global warming by all signatory nations

2016

Revision of Montreal Protocol (Kigali Revision)→ Decision to regulate production of HFCs

Changes in the Environment surrounding CFCs and Central Glassʼs Fluorocarbon Business
1970

CFCs (Designated CFCs)

1980

1990

CFC-113 (Fluorine-based solvent)

Phased out in 1996

Substitute (Low-ODP)
HCFC-141b (Blowing agent/solvent)

HCFC (Designated CFCs)
Substitute (Zero-ODP)

Responses to the depletion of the ozone layer

HFCs (Substitutes for CFCs)
Substitute (Low-GWP)

Responses to glo

HFOs (Non-CFC)
Discovery of mechanism of depletion of ozone layer (1974)

Internationalframework for
CFC regulation

10

CSR Report 2017

Measures to respond to
the depletion of the ozone layer

Adoption of Vienna Convention (1985)
Adoption of Montreal Protocol (1987)

Decision to protect
the ozone layer
Decision to regulate production of
CFCs and HCFCs

Adoption of United Nations Framew
Convention on Climate Change (1992
Measures to respond toA
global warmingNext-Generation Non-CFC Products
Next-generation blowing agent HFO-1233zd(E)Next-generation solvent HFO-1233zd(Z)HFO-1233zd(E) is a low-GWP product with a GWP*1 approximately one thousandth that of existing products (GWP=1). Its performance is either equal or superior to the currently used HFC245fa, but it does not contribute to ozone depletion.
Hydrofluorocarbons (HFCs) that do not damage the ozone
layer are currently used as fluorine-based blowing agents. Central
Glass is the only company producing HFC-245fa in Japan, andalso sells the product. However, HFCs were targeted for reductionin the Kyoto Protocol as greenhouse gases that absorb heat released from the surface of the earth.
Central Glass therefore worked to develop technologies for anext-generation blowing agent with a low GWP and environmental
burden.

HFO-1233zd(Z), developed by Central Glass, is a fluorine-based
solvent that satisfies all of the requirements of environmental performance, cleaning performance, safety, and easy handling.
Although substances such as chlorine-based methylene
chloride and bromine-based 1-bromopropane were previously
used in fields requiring cleaning performance, the toxicity ofthese substances and especially their effects on health have become issues in recent years.
In the area of fluorine-based solvents and cleaning agents,
HCFC-225 and HFC- and HFE-based substances have been usedsince the complete phase-out of HCFC-141b. However, HCFC225 has a high ODP*2, and will be phased out in 2020. Manyefforts are underway to reduce
HFCs and HFEs, which havehigh GWPs. Under such conditions, there is demand for thedevelopment of environmentally friendly products withzero ODP and low GWP.

*1 Global warming potential (GWP): An index that expresses the degree to which a greenhousegas contributes to global warming, compared to the benchmark of carbon dioxide*2 Ozone depletion potential (ODP): A relative value that indicates the potential of a substanceto destroy the ozone layer, compared to CFC-11 as a benchmark

Our Ube UF-1 Plant, where HFO-1233zd(E) is manufactured

Expansion of the Ube Plant and Future Plans
Formerly, we only manufactured fluorocarbon products at our Kawasaki Plant. As we predict increased demand for our next-generation blowing agent, a promising material in efforts to address
global warming, we began operating a new facility that manufac-

2000

2)

tures HFO-1233zd(E) at our Ube Plant in fiscal 2016.
Central Glass will continue to respond to social demands,
contributing to a better global environment through R&D andglobal supply.

2010

2020

Phased out in 2010
HFC-245fa (Blowing agent/coolant)

obal warming

work

Packaging of HFO-1233zd(Z) (Left: 20L pail; Right: 200L drum)

HFOs (Blowing agent/solvent, etc.)

Revision of Montreal Protocol (Kigali Revision) (2016)

Agreement to combat
global warming

Adoption of Kyoto Protocol (1997)

Decision to regulate emissions ofgreenhouse gases (including HFCs)

Adoption of Paris Agreement (2015)

Decision to regulate
production of HFCs

Decision to make efforts to combat
global warming by all signatory nations

CSR Report 201711

Special Feature 2

Development of Auroverre® Transparent
Screen Glass
A Social Contribution with Added Value Born from Central Glass Technology
As a material, glass offers a variety of functions in addition toadmitting light and providing transparency. It can also blockout heat and sound, and prevent crime and disasters. Thanks
to these functions, glass is used in not just buildings and automobiles, but almost every possible application. Demand for
digital signage in a variety of places including commercial facilities, stores, showrooms, and office buildings is on the rise,and expected to continue growing, particularly in Tokyo as itprepares to host the Olympics.
Under these circumstances, Central Glass developed Auroverre® jointly with Vision Development Co., Ltd. (based in
Hachioji City, Tokyo), with funding from the Strategic Innovation Promotion Program of the Japan Science and Technology
Agency (JST), and began selling the product in March 2017.
Auroverre® is a revolutionary product consisting of glass with atransparent coating, created by dispersing diamond powder
across the surface of transparent float glass. Images or written
information can be displayed on the glass by using a projector,
while the glass itself remains transparent. Conventionally, glasswith a semi-transparent film coating is used for projecting images onto glass. Compared to film-coated glass, Auroverre® offers a greater range of viewing angles – the image retains its
clarity no matter the angle from which it is viewed. Auroverre®

Sampleapplication of
Auroverre®

Beforealso displays excellent durability because the hardness of thecoating is similar to that of glass. Another merit of the productis that it does not require the installation of LCDs, or pasting of
posters or cutting sheets onto the glass surface.
The use of Auroverre® in a wide range of applications willallow Central Glass to contribute to an information-driven society. We will continue to advance R&D aimed at increasing theadded value of glass.

Coating

Glass substrate

Scatteredlight

Projector
Incident lightLight-diffusing material

VOICE
About the Development of Auroverre®
Auroverre® is a new product that Central Glass developed byconcentrating all of its expertise in the area of functional glass
coatings. Because functional glass requires a high-quality ap-

Afterpearance in addition to performance, it is very important to
optimize the selection of materials and the method of coating inorder to satisfy both requirements. My goal is to continue to findways to improve the performance and quality ofglass and expand its applications in order to pursue higher added value.

Masafumi Inoue
Research Engineer
Glass Research Center*The image above is for illustrative purposes, and may differ from the actual product.

12

CSR Report 2017

Corporate Governance and ComplianceCentral Glass has established a corporate governance structure to increase the transparency and fairness of its overall management and to improve efficiency and speed. We are also carrying out initiatives to raise all employeesʼ awareness of compliance in order to practice honest corporate activities.

Environment, Safety &Quality Management

Corporate GovernanceCentral Glass is continually increasing the transparency andfairness of its overall management, and strives to establish an
efficient, rational organizational structure that can respondswiftly to changes in the business environment in order to further enhance its corporate value and expand its revenue. Thisis our fundamental concept of corporate governance.
Based on this concept, we position our Board of Directors
and Board of Corporate Auditors as the foundation of Central
Glassʼs corporate governance. In addition, we have adopted an
executive officer system. By separating decision-making re-

Safetygarding important business matters, the supervision of business execution, and the actual execution of business, we haveslimmed down the Board of Directors to make management
more efficient and prompt.
In order to enhance auditing and supervisory functions,
independent outside directors and outside auditors who poseno risk of a conflict of interest with general shareholders ensure
the fairness of decisions made by the Board of Directors andplay a role in eliminating arbitrary decisions by the Board of
Directors.

Environment

Compliance with the Corporate Governance Codegovernance (via the Japan Exchange Groupʼs website).
Central Glass has put every aspect of the Corporate Governance Code into practice. We will follow the intentions of theCode in establishing fair, rapid, and decisive decision-making
mechanisms as we strive to realize sustainable growth and increase corporate value over the medium and long term.

Quality

The Tokyo Stock Exchange began applying Japanʼs Corporate
Governance Code in June of 2015. The Corporate Governance
Code provides rules to ensure that corporate decision-making is
conducted rapidly, transparently, and with integrity. Listedcompanies are expected to explain the status of their compliance with the rules and related policies in reports on corporate

Corporate Governance andCompliance

Increasing the Transparency and
Fairness of Overall Management

Organizational Chart for Corporate Governance
Shareholders’Meeting

Appoint

Board ofCorporate
Auditors

Board of Directors

Audit

Supervise

Coordinate

Employees

Appoint

Appoint

Accounting Audit

Accounting
AuditorDirectors
Supervise

Audit
Department

Management Committee

Accounting Audit

Society

Audit

Coordinate

Executive Officers

Audit

Activities at
Individual Plants

Each Workplace Affiliated Companies
Coordinate

Deliberation / Investigation / Guidance / Education•Compliance Promotion Committee•Anti-Monopoly Law Observance Promotion Committee•Security Trade Control Committee•Environment Safety Promotion Committee•Safety & Health Committee•Product Safety Committee•Financial Reporting Risk Assessment Committee, etc.

CSR Report 201713

Corporate Governance and Compliance
Recent Efforts to Reform Corporate Governance and ComplianceYear

StatusMay 2006

The Board of Directors decides on a basic policy regarding the establishment of an internal control system stipulated in JapanʼsCompanies Act.

April 2008

The system is partially revised with content to exclude antisocial forces.

April 2009

The system is partially revised with regard to internal information management and insider trading rules as well as an internal control system concerning financial reporting and a financial reporting risk assessment committee.

April 2010

The system is partially revised with regard to appointment of outside directors, enhancement of the internal whistleblowing system,
and a compliance promotion committee.

April 2012

The system is partially revised with regard to an appropriate management system for confidential information and measures against
persons from crime syndicates when making contracts.

April 2014

The Board of Directors makes partial revisions with regard to the communication of undisclosed internal information and regulationof acts that recommend trade in line with an amendment to Japanʼs Financial Instruments and Exchange Act, and to prevent unforeseen damages to the company and involvement in unanticipated scandals due to the spread and use of social media.

April 2015

The system is partially revised with regard to the development of a system to ensure reasonable business practices in corporategroups and a system to support auditing by auditors in line with amendments to Japanʼs Companies Act and Ordinance for Enforcement of the Companies Act, as well as personal information protection and prevention of sexual and power harassment.

April 2016

The system is partially revised with regard to ensuring appropriate handling of personal identification numbers, maintaining thesoundness of contract management, and establishing and operating a system for preventing bribery.

* Corporate governance: The way a corporation should be governed* “Compliance” refers not only to the observance of laws and regulations in a limited sense, but also includes the observance of a wide range of social norms when conducting
business activities.

Compliance
In order to establish corporate governance, it is essential toraise our awareness of compliance in addition to upgrading andreinforcing our corporate governance framework. To fulfill thispurpose, the Central Glass Group established the “Central
Glass Groupʼs Code of Conduct” as the internal code for conducting faithful business activities with stakeholders such as
business partners, customers, consumers, and employees. Every employee carries a card displaying this Code of Conduct toconstantly enhance awareness of compliance. The top executives also strive to set a good example through their actions.
We also created a “Compliance Manual” to serve as a
guide on dictating social norms and corporate ethics. This manual covers a wide range of fields including, among others: anti-

monopoly law; independence from antisocial forces; intellectual property rights; regulations on insider trading;environmental conservation; the workplace environment; theprotection and management of information; and respect for human rights. The Central Glass Group also established and started operating a Whistle Blowing System so that all employees
can obtain guidance and consult on issues.
The effective use of these systems, together with regulareducation through internal training seminars, helps each employee gain a deeper understanding of relevant laws and regulations and take appropriate action when conducting business.
Through these activities, the Central Glass Group aims to enhance both awareness and compliance.

Compliance Education
Central Glass conducted an e-learning program for all employees in FY2016. This e-learning program utilized the Compliance Manual discussed in the “Compliance” section of this report, and sought to provide employees with a comprehensive
understanding of its content.
Moreover, to provide further practical education, we havebeen conducting a series of study sessions on the antimonopoly law for salespersons, including employees at our affiliates.
These sessions are held in small groups within each of our de-

14

CSR Report 2017

partments, and emphasize multidirectional communication,
both between participants and lecturers and between participants themselves. Through the examination and discussion ofproblems contained in case studies customized for each participating group, the study sessions give employees an understanding of the antimonopoly law as something that concerns
them closely, and foster an awareness of risk in the course ofdaily work.

Central Glass prepares for the possibility of large-scale accidents, natural disasters, etc. by working to institute measures
for security and disaster prevention at all of our worksites. We
have also formulated a BCP to ensure business continuity. The
appropriate implementation of our BCP at the appropriate timeensures that we can minimize damage when a disaster occurs
and rapidly get our main businesses up and running again, preserving the confidence of our stakeholders. We will continuallywork to maintain and improve our BCP in order to increase its
viability.

Overseas Risks

Information Management System

Central Glass regularly holds meetings attended by responsible
personnel from our overseas affiliates and our own managing
departments, and makes efforts to share information concerning overseas risks. In addition, when the Ministry of Foreign
Affairs provides advisories regarding overseas terrorism incidents, etc., our Head Office quickly makes announcements tothe entire Group. We have systems in place to share the necessary information throughout the Group to ensure that we are
not involved in unexpected contingencies.
When we dispatch staff overseas, we work to proactively
prevent exposure to risks by providing advance lectures andtraining that ensure the staff understands local customs andetiquette.

Central Glassʼs information management system is thoroughly
compliant with the Act on the Protection of Personal Information, and related laws and regulations. As a concrete measure,
we have established Regulations for Protection of Personal Information. In addition, in order to ensure that the spread anduse of social media does not involve the company or our employees in any unforeseen damages or trouble, we have established Social Media Guidelines, and are warning our employeesof the risks involved. We have also responded to Japanʼs new
personal identification number system by creating a safety
management system based on the Basic Guidelines for the Appropriate Treatment of Specific Personal Information, etc. andRules for the Handling of Specific Personal Information, etc.
In compliance with the Timely Disclosure Rules formulated by the Tokyo Stock Exchange, we have established a system to respond rapidly by releasing any company informationthat is subject to timely disclosure.

SafetyIn response to risks that Central Glass regards as particularly
important, we have established a variety of committees that
formulate relevant rules. In addition, each of our business andmanagement departments, including those at affiliated companies, manages risks specific to that department.
When new risks arise or are likely to occur, we quickly appoint an executive officer to take responsibility for response to
the risk. The Board of Directors also receives a report from therelevant committee or executive officer or requests a report, as
necessary, and works to assess the risk, including our social
responsibility, and determine the necessary response.

Environment, Safety &Quality Management

BCP

Corporate Governance andCompliance

Risk Management

Environment
Quality

Whistleblowing System
Employees

In addition to establishing an in-house liaison, Central Glassalso provides access to an external legal office as a whistleblowing system. We have set the system in place to enhance
our compliance, and work to identify and correct organizational
and personal violations of laws and regulations at an earlystage.

Society
Activities at
Individual Plants

CSR Report 201715

Environment, Safety & Quality Management

Promoting Management that Meets
Societal Demands
The Central Glass Group undertakes voluntary management activities aimed at making improvements by taking care to ensure the environment, safety, and health and environmental protection
over the total life cycle of our products, from the R&D stages through to the procurement of raw
materials, production, distribution, use, and disposal. We pay meticulous attention in order tomaintain, manage, and guarantee the quality of the products that we deliver to our customers, andhave set in place structures for their production, transportation, and supply. We promote management that is responsive to the societal demands of every one of our stakeholders as we aspire to be
a company that is truly beneficial and contributes to society.
Mid-term Targets and FY2016 Results
Major Issues〈P〉
Mid-Term Targets•Renew and maintain certification at

Establishment &maintenance ofenvironmental
management
systemUbe, Kawasaki, and Matsusaka Plants(including the Sakai ManufacturingSite).
•Renew and maintain certification andpromote acquisition of new certification at affiliates.
•Improve self-management level ataffiliates that have not acquired certification.

Progress Accomplished:

Made steady progress:〈 D〉
FY2016 Results〈C〉
Ratings〈A〉FY2017 Plans

The Ube Plant, Kawasaki Plant, and Matsusaka Plant (including the Sakai Manufacturing Site) maintained their ISO
14001 certification and underwent a periodic review for certification renewal.
Domestic affiliates that have already acquired certification maintained and continued their certification.
During onsite audits, provided guidance on
self-management to affiliates that have not
yet acquired certification.

Environment, Safety, and Quality Management Promotion Systems

Additional measures required:

Renew and maintain certification
at Ube, Kawasaki, and Matsusaka
Plants (including the Sakai Manufacturing Site).
Renew and maintain certificationand promote acquisition of new certification at affiliates. Improve selfmanagement level at affiliates thathave not acquired certification.

Environment and Safety
Management Promotion System

The various supervisory departments for each area form the core when it comes to promoting the environment, safety, and quality management systems at Central Glass. They coordinate with other related departments in order to follow up on the various activities at ourhead of ce, plants, research centers, and af liate companies.
As indicated in the figure on the right, our Environment Safety Promotion Committee
forms the core of our responsible care activities, while our Environment, Safety and Quality
Management Department serves as the secretariat for this. They support and promote activities
related to environmental and safety matters carried out by each of our departments.

Management Committee
Environment and safety
Management Promotion System
Environment,
Safety and Quality
Management
Department
Head OfficeEnvironmental safety aspects…Environment, Safety, and Quality Management Department
Product safety aspects…Glass Quality Assurance Department; Chemicals Quality Assurance Department;
Environment, Safety, and Quality Management Department
Occupational safety and health aspects…Personnel Department; Environment, Safety, and Quality Management Department
Social demands…Corporate Administration Department
Education/human resource building aspects…Personnel Department

ResearchCenters

PlantsAffiliate Companies
Each RC-Related Committee

Acquisition Status for Environmental, Safety, and Quality Management System
Workplaces

Environment
System ISO 14001, etc.

Ube Plant
Kawasaki Plant
Matsusaka Plant (including Sakai Manufacturing Site)
Central Chemical Co., Ltd. ‒ Ube Plant
Mie Glass Industry Co., Ltd. ‒ Matsusaka Plant
Central Glass Plant Services Co., Ltd. ‒ Matsusaka Plant
Central Glass Plant Services Co., Ltd. ‒ Urayasu Plant
Central Glass Plant Services Co., Ltd. ‒ Sakai Plant / Sakaide Manufacturing Site
Central Glass Fiber Co., Ltd. ‒Matsusaka Plant / Kasugai Plant
Central Glass Engineering Co., Ltd.
Central Glass Module Co., Ltd.‒ Head Office / Kyushu Plant
Japan Tempered & Laminated Glass Co., Ltd.

Quality
ISO 9001

SafetyISO/TS 16949(Matsusaka Plant)(Sakai Plant)(Matsusaka Plant)*1

Carlex Glass America, LLC (Vonore Plant) (US)Carlex Glass America, LLC (Nashville Plant) (US)Carlex Glass America, LLC (Ligonier Plant) (US)Carlex Glass America, LLC (Auburn Plant) (US)Carlex Glass Luxembourg, S.A.(Luxembourg)
Apollo Scientific Limited (UK)
JCEL Co., Ltd. (South Korea)
Taiwan Central Glass Co., Ltd. (Taiwan)
Central Glass (Zhangjiagang) Co., Ltd. (China)
Giga Gas & Electronic Materials Company (Taiwan)
Central Glass Chemspec Company Ltd. (China)*Affiliates shown are those over which Central Glass has the right of control.
*Acquisition statuses for overseas affiliates are as of December 31, 2016.

16

CSR Report 2017

*Acquisition statuses of Central Glass and affiliates in Japan are as of March 31, 2017.
*1 Eco-Action 21

OHSAS 18001

each of our workplaces.
Continuing from FY2015, we conducted audits of four
overseas affiliates in FY2016.

Environment, Safety &Quality Management
SafetyCentral Glass carries out environment and safety audits every
year focusing on our plants, research centers, and domestic
affiliates, in order to verify the status of their responsible care
activities. Our audits are conducted in two stages: a self-audit
in which all targeted workplaces use a checklist to check thestatus of their RC activities, and an onsite audit in which theEnvironment Safety Department checks workplaces, selectedbased on the self-audit results, through direct visits.
In FY2016, onsite audits were carried out at 17 of ourworkplaces, and we also instituted site visits, documentation
checks, and hearings on matters of concern and important issues.
During onsite audits, we verify whether RC activities arebeing implemented appropriately and perform detailed checks
including confirming environmental compliance and conducting safety risk assessments. This helps improve initiatives at

Corporate Governance andCompliance

Environment and Safety Audits

Environment and safety onsite audit (Kawasaki Plant)

Education and Training for Environmental and Safety Aspects
ual to be engaged, correctly recognize problems, and act with
self-awareness.
A partial list of the education/trainings related to theenvironment, safety, and other issues offered at our head
office, research centers, plants, and affiliate companies in
FY2016 is shown in the table below.

Environment
Quality
Employees

Under the recognition that “all of our employees are talented
individuals and treasures to the company”, each of the workplaces in the Central Glass Group focuses its efforts on education and training. Education and training are indispensable forevery one of our employees as members of society to deepening
the understanding of the environment as one of CSR activities,
as well as to acting in a responsible manner or minimizing damage when disasters occur. We offer education and training at
each workplace in a timely manner by choosing themes that aresuited to the timing of implementation and targeted employees,with the goal of raising their awareness of such environmental,
safety, and other issues.
In FY2016 we carried out disaster drills and provided
education related to the environment and safety at many of ourworkplaces on several occasions.
At the Head Office, we conducted a safety training workshop (focusing on “5 Whys” analysis) for employees responsible
for safety at Central Glass and domestic affiliates (twenty-fourpeople). Safety-related problem-solving requires every individ-

Safety training workshop (Head Office)Examples of environmental education and training held in FY2016
Workplaces

Safety training workshop (“5 Whys” analysis)Targeted persons
Employees responsible for safety atCentral Glass and domestic affiliates

Dates held

Number ofattendees

December 2016

24
Approx.
100

Chemical Research Center

Emergency call training

Center staff

February 2016

Chemical Research Center(Ube)

Risk assessment of chemical substances

Center staff

August 2016

57

Center staff

August 201667

All employees of the Ube Plant and affiliates/
Cooperating worksites

November/
December 2016
Different foreach department

Glass Research Center
Ube Plant

Education on health checkups(significance and details of special examinations)
Education on disaster prevention (for line managers,
process supervisors, and operation leaders)419

Matsusaka Plant

ISO 14001 environmental education

All employees within the ISO 14001 site

Safety education using the safety video“Preventing Daily Work Accidents”

All employees of manufacturing sections

May 2016

36

Tsunami evacuation training

All employees

February 2017140

All employees

July 2016155

All employees

November 2016

85

Central Engineering Co., Ltd.
Japan Tempered &Laminated Glass Co., Ltd.

Education on “Rules for the Management ofChemical Substances Used in Products”
Training for response to emergency situations(methods of shutting off LP gas)

CSR Report 2017

Activities at
Individual Plants

Approx.
1,000

Matsusaka Plant ‒Sakai Manufacturing Site
Kawasaki Plant

Society

Head Office

Overview of education and training

17

Environment, Safety & Quality Management
Environmental Accounting
We calculate the environmental costs related to our environmental preservation initiatives for air, water, soil, and disposalof waste at Central Glass and our main affiliates in Japan.
Our investments increased from the previous fiscal year
due to capital investment in facilities for the production of
next-generation replacements for CFCs. In expenses, a decline
in the volume of production of certain products caused thevolume of industrial waste produced by manufacturing process-es to decrease, and our waste processing expenses were reduced as a result. In terms of environmental preservation effects, our emissions of pollutants affecting water quality
increased as a result of plant operations. We and our domestic
affiliates will continue to work to promote environmental preservation by maintaining appropriate environmental preservation
costs.

Environmental Preservation Costs
Category(Unit: million yen)

FY2015Major initiatives

Investments

Expenses

Investments

Expenses

711

3,327

1,605

3,047

(1) Business area costs

Global environmental
preservation costs

Preventing the pollution of the air,water, soil, etc.
Preventing global warming,measures to conserve energy, etc.

Resource recycling costs(2) Upstream/downstream costs

Pollution prevention costs(3) Cost of management activities(4) Cost of R&D activities(5) Cost of social activities(6) Cost of dealing withenvironmental damage

FY2016

186

1,685

1,350

1,660

520

177

185

172

Waste disposal, recycling treatment, etc.

5

1,465

70

1,215

Collection, recycling, and appropriate
disposal of products, etc.
Maintaining the EMS, environmental
monitoring, environmental education
costs, etc.
R&D of products involved inenvironmental preservation
Improving the environment, contributing to local communities, etc.
Restoring the environment, environmental preservation compensation, etc.

0

0

0

0

3

230

0

247

6

449

19

526

0

3

0

2

Total

0

0

0

0

720

4,008

1,624

3,822

Environmental Preservation Effects (Environmental Impact Indices): Results for FY2016
Effect inbusiness areas
Greenhousegases

Environmental
impact

FY
2015

FY
2016

Yearon-yearchange
(%)

577

540

▲6.4

3,913

3,604

▲7.9

74

87

17.0

CO 2 equivalent(t-CO 2)

Environmental
pollutantAtmospheric impact(SOX, NOX, ash dust)(tons)
Water-quality impact(COD, total phosphorous,
total nitrogen) (tons)

The Flow of Substances at the Central Glass GroupThe Central Glass Group quantitatively tracks the environmental impact of manufacturing processes in order to identify environmental issues and implement measures for making improvements as we constantly strive to reduce the burden on theenvironment.
A huge amount of heat energy is needed to melt raw ma-

terials in the glass business, so its central issue is measures toprevent global warming. The development of environmentallyfriendly products and reducing waste are the central issues of
the chemicals business, and sustained efforts are being madetoward energy saving activities and to establish recycling systems.

INPUT
Total amount of materials input…1,085,000tons

Amount of water resources input…22.252million m3

Central Glass

Affiliate companies

Central Glass

Affiliate companies

444,000tons

641,000tons

12.443million m

9.809million m

3

3

Amount of net energy input…………12,741TJ *Central Glass

Affiliate companies

6,561TJ

6,180 TJ

*TJ (terajoules) is a unit for energy (joules). One terajoule
is equal to one trillion joules.

Central Glass GroupRaw materials
procurement (suppliers)

OUTPUT

ManufacturingSales(clients)

Logistics

Atmosphere

Water

Emissions of greenhouse gases…807,000tons-CO2

Net amount of discharged water…18.195million m

Central Glass

Affiliate companies

Central Glass

460,000tons-CO2

347,000tons-CO2

10.131million m

Emissions of substances that damage the atmosphere…3,755tons

3

Waste
3

Net emissions of waste ……………106,000tons

Affiliate companies

Central Glass

Affiliate companies

8.064million m

39,000tons

67,000tons

3

Emissions of substances that affect water quality…95tons

19千トン
Final amount of waste disposed………19,000
tons

Central Glass

Affiliate companies

Central Glass

Affiliate companies

Central Glass

Affiliate companies

3,597tons

158tons

87tons

8tons

12,000tons

7,000tons

Reporting range•Central Glass…Three plants, one manufacturing site, three research centers, and the head office•Affiliate companies : Seven major domestic affiliates and eleven major overseas affiliates
Tabulation of emissions of environmental impact substances at overseas affiliates began in FY2013. Some worksites
for which calculations were unavailable are excluded.

18

Consumption(end users)

CSR Report 2017

Recycling rate for waste……………………82%
Central Glass

Affiliate companies

69%

90%

Safety
Corporate Governance andComplianceIndustrial Safety and Health, Security andDisaster Prevention, Logistical Safety,
and Safety of Chemical Substances
Mid-term Targets and FY2016 Results
Major Issues〈C〉Ratings〈A〉FY2017 Plans

Among all of our Group companies in Japan, including affiliates, there were six accidents resulting in lost work hours, a
reduction of three from the previous year. This was the low•No injuries causing lost work hours
est number of accidents we have ever recorded.
(try various timely measures)
The total number of accidents, including those that did not
result in lost work hours, was thirty-nine accidents, an increase of two from the previous year.

Implement proactive measures against
accidents based on the analytical resultsof annual reports on Group-wide industrial
accidents (eliminate potential hazards
through risk assessment and KY, etc.) andhold safety training workshops aimed at
implementing sound measures to prevent
recurrence.

Continue to maintain OHSAS18001 certification at our Ube•Enhance risk management for inPlant. Continued efforts toward establishment of risk mandustrial health and safety
agement systems at our Matsusaka and Kawasaki Plants.

Maintain and continue management systemand cross-deploy it to other workplaces.

Periodic inspections were carried out by administrators at
our Ube, Kawasaki, and Matsusaka Plants and Sakai Manu• Conduct voluntary safety audits on facturing Site. Voluntary safety audits on high-pressure gas
high-pressure gas by management were conducted. The state of management at workplaces•Enhance preventative measures with elevators, including statutory inspections, was conagainst disasters
firmed for all group companies in Japan, including affiliates.
Operation of a database for the collection of in-house accident data began in order to prevent similar accidents.
Compliance with the Act on the Evaluation of Chemical Substances, Act on Confirmation, etc. of Release Amounts ofSpecific Chemical Substances in the Environment and Pro•Implement appropriate managemotion of Improvements to the Management. Thereof, andment of chemical substances
Industrial Safety and Health Act, and provision of information to the concerned parties (requiring various submissions). Sequentially improved SDS and labeling.
•Promote alternatives to or detoxification of environmental impact Removed and treated non-scattering asbestos-containing
substancesmaterials from manufacturing facilities when upgrades were・Asbestos
made.
・PCBs
All plants and affiliates sequentially implemented final dis・Other environmental impact sub- posal of low-concentration PCB machinery.
stances
Each Group company in Japan, including affiliates, confirmed chemical substance management (compliance withlaws) and customer response status using an environmental
safety self-checklist.

Continue compliance with laws & regulations and revision of our SDS and labeling.

Continued removal of asbestos used atworkplaces when upgrades are made. Continued strict management of machinerycontaining PCBs and their disposal according to local administrative guidance.
Efforts to reduce the environmental impact
of products by enhancing management ofour database of information and to provide
reliable and prompt information to our customers.

Employees<Promotion of Green Procurement>•Implement audits on chemical
substances•Provide information to customers
promptly

Continue to comply with laws and pass on
safety techniques and know-how. Efforts
toward establishing equipment safety measures.
Make efforts to effectively utilize accident
data.

Quality

Chemical andproduct safety〈D〉FY2016 Results

Additional measures required:

Environment

Securityand disasterprevention

Made steady progress:

SafetyIndustrial
health andsafety〈P〉Mid-Term Targets

Progress Accomplished:

Environment, Safety &Quality Management

The Central Glass Group recognizes industrial safety and health, security and disaster prevention, logistical safety, and safety of chemical substances as the most important challenges inour corporate activities, and promotes initiatives for each of them.

Industrial health and safety
lost work hours declined from nine to six, while the number ofaccidents that did not result in lost work hours increased fromtwenty eight to thirty three, representing an increase of two
accidents in total. However, the number of accidents resulting
in lost work hours was the lowest that we have ever recorded.
Compared to 2015, the rate of accidents resulting in lostwork hours improved at Central Glass and cooperating companies. Figures for both Central Glass and cooperating companies
were also below the averages for all industries and the manufacturing industry.
To make further progress in eliminating industrial accidents, we will work to improve safety awareness among all employees, through to end-process workers. In addition to initiatives such as 5S, safety patrols, risk assessment, and KY,
managers will use reference materials that include case studiesof past accidents to instill an awareness of risks and knowledgeof measures to prevent recurrence.

Activities at
Individual Plants

CSR Report 2017

Society

The Central Glass Group believes that maintaining a safe working environment is a basic requirement for all business operations. In 2016, we once again conducted a variety of activities
aimed at realizing zero accidents throughout the Group. These
included implementation of risk assessment, particularly KY(hazard prediction), and prevention of recurrence of similar accidents by increasing awareness of the relevant preventive
measures, which are among the items for implementation in
our Policies on Safety and Health.
In addition, we called attention to safety measures byholding the “Summertime Industrial Accident Prevention Campaign,” as well as by issuing a white paper on “Industrial Accidents” and awarding “Safe Operation Awards” to further boost
motivation regarding industrial safety.
In 2016, there were thirty-nine accidents in total. Six accidents resulted in lost work hours, and thirty-three accidents did not.
Compared to 2015, the number of accidents resulting in

19

SafetyFrequency rate of accidents resulting in lost work hours

2016 Policies on Safety and
Health‒Priority Implementation Items

1.8
1.6

1. Implement risk assessment, especially KY(hazard prediction).

1.4
Frequency rate

1.2

2. Prevent similar accidents by keeping all members
informed of measures to prevent recurrence.

1.0
0.8
0.6

3. Improve safety awareness by fostering sensitivity to danger.

0.4
0.2(Year)

11

12

13

14

15

16

Central Glass
Cooperating Companies
Manufacturing industry (average)
All industries (average)

Frequency rate of accidents resulting in lost work hours = (Number of deaths or
injuries by accident / Total work hours) x 1,000,000 (The frequency rate of accidents that result in lost work hours per million working hours)

4. Enforce 3S (Shifting/Organization, Sorting, andShining/Cleaning) activities.
5. Promote healthcare, the maintenance of health,and mental healthcare.
6. Prevent traffic accidents during everyday driving as well as commutes.

*Cooperating companies: Affiliate companies and cooperating contractors

Security and Disaster Prevention
Since most of Central Glassʼs major plants are located in areas
designated by the Act on the Prevention of Disaster in Petroleum Industrial Complexes and Other Petroleum Facilities,
each plant has established a full-scale security and disasterprevention system under the guidance of authorities concernedwith the environment, security, and disaster prevention, as we
aim to completely eliminate facility disasters. We make efforts
to preemptively prevent accidents and disasters through efforts
like activities at each plant that are based on the “Security and
Accident Prevention Guidelines” compiled by the Japan Chemical Industry Association (JCIA) and the passing down of knowhow to our young employees. We carry out drills at our plants
and workplaces that simulate various different disasters andabnormal conditions in the aim of raising our level of disaster
preparedness with our employees and the employees of eachplantʼs contractors.

Our domestic affiliates are also working to ensure security
and prevent disasters through facility management and training in accordance with laws and regulations.

Training in response to an oil spill at sea (Sakai Manufacturing Site,
Matsusaka Plant)

In February 2017, a fire occurred at our Ube Plant during work to dismantle idle exhaust-gas treatment equipment. No employees were injured, andno environmental issues resulted. In order to prevent recurrence of a similar accident, we have strengthened our resolve to create safe and secure
plants, and will continue to conduct our activities with safety as the highest priority.

Logistical Safety
Central Glass and its domestic affiliate companies implement periodic training and education for not only theiremployees but also employees at the workplaces to which
they consign transporting. This is done to prevent accidents
during the transportation of chemical substances and tominimize the damage if accidents occur. For example, at ourUbe Plant, when drivers are appointed to transport things
like high-pressure gases, they are given instruction by transportation managers. Furthermore, our domestic affiliatecompanies that handle chemical logistics provide education
via SDS at monthly safety meetings and other such occasions.
When chemical substances are to be transported by road,
20

CSR Report 2017

we prepare emergency contact cards (yellow cards) for drivers,
which they carry not only when obligated by law, such as during
the transportation of high-pressure gases and poisonous substances, but also during the transportation of other chemical
substances, in accordance with the Guidelines for Logistical
Safety Management that we have formulated.
On the cards, measures to be taken to minimize damage
and details to be reported are clarified so that the transporter,
firefighters or police officers can respond appropriately andpromptly should an accident occur during transportation byroad. The details listed on these cards are periodically revisedby the relevant departments.

tions include Europeʼs REACH regulations and Japanʼs revised Act
on the Evaluation of Chemical Substances and Regulation of Their
Manufacture, etc. Furthermore, in recent years revisions to laws on
chemical substances have been pushed forward in Asian countries, and we must continue to comply with these in the proper
manner. Against this background, the Central Glass Group is working to ensure safety through a variety of different initiatives at every
stage in which chemical substances are handled.

Management of Chemical Substances

SDS and Labeling (Response to the GHS)

◆Select environmentally conscious raw materials from the R&D through to thetrial manufacturing stages◆Manage raw materials based on the “Green Procurement Guidelines”― Confirm the environmental management systems of our suppliers― Confirm whether or not substances designated for voluntarily
restriction are contained within the raw materials we purchase◆ Prevent the intermixing of environmental impact substances throughappropriate process management◆Manage products (management of packaging materials and confirmation thattargeted chemical substances are not contained within products)◆Share information among the concerned parties through the creation and useof a “Green Procurement Database”◆Provide education for the persons in charge of the relevant departments

CSR Report 2017

Activities at
Individual Plants

Central Glass and our affiliates in Japan rigorously store andmanage and properly dispose of waste condensers and otherequipment containing PCBs (polychlorinated biphenyls) incompliance with Japanʼs Waste Management and Public
Cleansing Act and Act on Special Measures concerning Promotion of Proper Treatment of PCB Waste.
In FY2016, the Ube Plant, the Kawasaki Plant, and someaffiliate companies disposed of their PCB waste.

Central Glass is promoting the following initiatives across theentire company in order to proactively advance “green procurement.” Green procurement gives priority to procuring raw materials and materials that have less of an impact on the environment when obtaining such goods.
Nowadays, as a result of moves like the enactment of Europeʼs REACH regulations and the revised Act on the Evaluationof Chemical Substances and Regulation of Their Manufacture,etc., thoroughly ensuring the management of chemical substances throughout the entire supply chain and sharing information related to the chemical substances contained in products have grown increasingly important. Through these
initiatives, we will promote the reliable management of chemical substances and accommodate requests for the public disclosure of information.

Society

Management of PCB Machinery

Initiatives for Green Procurement

Employees

Structural components containing asbestos are still used insome of the buildings and production facilities at Central Glassand our domestic af liate companies. We therefore identify thelocations where those components are used and manage themappropriately. Components used for such applications as insulation or packing for piping in production facilities are being
removed sequentially when facilities are upgraded and disposed of properly. Moving forward, we will continue to comply
with laws and ordinances and promote appropriate measures
for this.

*2 SDS: Safety Data Sheet. These are data sheets that list information related to the hazardousness of chemical substances and the like as well as information concerning theenvironment.
*3 GHS: The Globally Harmonized System of Classification and Labeling of Chemicals

Quality

Handling Asbestos

Environment*1 PRTR: Pollutant Release and Transfer Register

Central Glass and our domestic affiliate companies strive toprovide information through SDS*2 that conform to GHS.*3
When handling chemical substances and the like, measuresnecessary for risk abatement can be taken based on the information listed in the SDS, which is conducive to protecting
safety and the environment. In addition, in an effort to manage
safety, we strive to ensure that employees are thoroughly familiar with the SDS for not only our products but also for purchased raw materials. In addition, we are providing information
through the labeling of containers and packaging in conformity
with the GHS by moving ahead with reliable implementation in
response to the amended Industrial Safety and Health Act thatcame into effect in June 2016. These SDS and labels are included in a company database that is used to share safety information.

SafetyCentral Glass has been surveying, aggregating, and reporting
PRTR*1 data voluntarily since 1995, prior to the enactment of
the Chemical Substances Management Act (2000), in an effort
to reduce emissions of chemical substances into the environment. The number of substances subject to notification in
FY2016 at Central Glass and its domestic affiliates remained
at sixty, as in the previous fiscal year (results for each of Central Glassʼs plants are given in the section “Activities at Individual Plants” at the end of the report).
We will continue to comply with laws and regulations including the Industrial Safety and Health Act, the Poisonousand Deleterious Substances Control Act, and the High Pressure
Gas Safety Act in order to further enhance measures ensuring
the safety and health of workers. Our affiliate companies, bothin Japan and overseas, work to get a grasp of local laws and thechemical substances they handle in an effort to promote themanagement of chemical substances from a global perspective. We will continue working to properly manage chemical
substances.

Environment, Safety &Quality Management

The regulations on chemical substances in countries around theworld have grown more sophisticated, moving from traditional hazard management to risk management that takes into account exposure factors. The intention is to achieve the goal of the accord of
the 2002 World Summit on Sustainable Development in Johannesburg, “Aiming to achieve, by 2020, the use and production ofchemicals in ways that lead to the minimization of significant adverse effects on human health and the environment. ” Such regula-

Corporate Governance andCompliance

Safety of Chemical Substances

21Environment

Enriching Society by Protecting
the Global Environment andthe Health and Safety of People
The Central Glass Group will strive to enrich society through measures that ensure the protectionof the global environment and the health and safety of people throughout the entire lifecycle of our
products̶from product development, the purchasing of raw materials, and manufacturing to distribution, use, and disposal.
Mid-term Targets and FY2016 Results

Progress Accomplished:

Made steady progress:〈C〉Ratings

Additional measures required:

Major Issues〈P〉
Mid-Term Targets〈D〉FY2016 Results

Prevention of global
warming (energy and resource conservation)<FY2020 Target>•Reduce FY2020 CO 2 emissions
by 15% relative to FY2005.

CO 2 emissions totaled 460,000 tons,
down 51% from FY2005.

Continue working toward the FY2020
target of a 15% reduction in CO2 emissions relative to FY2005.

<FY2020 Target>•Reduce final landfill disposal volume by 71% relative to FY2000.

Final disposal volumes at the Ube, Kawasaki, and Matsusaka Plants (including the Sakai Manufacturing Site) were
down 82% from FY2000, meaningthat we have already achieved our
FY2020 target.

Continue to work toward our FY2020
target of a 71% reduction in the volume
of final landfill waste compared to
FY2000. Maintain and continue to realize the level reached in FY2015.

Reduction of waste〈A〉
FY2017 Plans

Our Efforts to Prevent Global Warming
The Central Glass Group strives to reduce emissions of greenhouse gases into the atmosphere through the manufacturing and shipperʼstransportation of goods in order to prevent global warming.

Central Glass
Emissions of greenhouse gases (Central Glass)

1,000

120
940

800
675
600

60

488

460
40

200

20

0

0

(FY)

05

12

Ube

KawasakiMatsusaka

13

14

15

Sakai

3 research centers+head office16

Freight transport

Emissions of greenhouse gases(Central Glass Group)
Central Glass

Domestic affiliates

Overseas affiliates

1,200
Emissions of greenhouse gases

CSR Report 2017

80

682

675

〜

400

1,000

982

1,012

995

800

818

807

15

16

600
400
200
0
(FY)

22

100
51% reduction(Unit: 1,000 tons)

Emissions of greenhouse gases for the Central Glass Group declined fromthe previous year, despite the fact that the number of production sites
managed by overseas affiliates included in the total increased by one.
Each production site is pursuing energy-saving initiatives and upgrading to energy-saving equipment, thereby reducing greenhouse gas
emissions.
In the future, the Central Glass Group will continue to work to reduce its emissions of greenhouse gases in order to combat global warming.

(Unit: 1,000 tons)

1,200

Emissions of greenhouse gases
from Freight transportation

The Central Glass Group(Unit: 1,000 tons)
Emissions of greenhouse gases

Central Glass has set and is working toward a target of reducing thegreenhouse gases given off by the use of fuel, purchased power, and raw
materials for manufacturing by 15% relative to 2005 levels by 2020, withthis serving as a mid-term initiative to prevent global warming.
Our greenhouse gas emissions due to plant operations in FY2016
were reduced by 51% relative to FY2005. In addition, greenhouse gas
emissions resulting from product transportation were down against theprevious fiscal year.
Partly due to a change in our business configuration, which had
previously been centered on the Ube Plant, there has been a significant
drop in our emissions of greenhouse gases. However, in the future we willbuild new manufacturing facilities and expand our product lineup. We will
therefore continue to work to reduce our greenhouse gas emissions.

12

13

14

Corporate Governance andCompliance

Reducing Environmental Impact Substances
The Central Glass Groupʼs manufacturing sites are operated in compliance with emissions standards for the atmosphere, water quality,
and other environmental indicators in the regions where they are located. Reducing environmental impact substances is an important
challenge in consideration of the global environment and human health and safety, and so for the future we will continue to undertake
appropriate management for this.

Countermeasures Against
Pollutants that Impact Water Quality

Of the substances that damage the atmosphere, trends in ouremissions of sulfur oxide (SOx), nitrogen oxide (NOx), and ash
dust are shown below.

Among controlled substances that impact water quality, trends
in our chemical oxygen demand (COD) and total emissions ofboth phosphorous and nitrogen are shown below.

SOx emissions

Chemical oxygen demand (COD)(Unit: tons)(Unit: tons)
100

2,500

80

Safety

3,000

1,847

2,000

1,527

1,500

1,594

1,484

Environment, Safety &Quality Management

Countermeasures Against
Substances that Damage the Atmosphere

59

60

57

1,348

45

42

40

31

1,000

Environment

20

500

0

0
(FY)

12

13

Ube

KawasakiMatsusaka

14
Sakai

15
Domestic affiliates

16
Overseas affiliates

(FY)

12

Ube

Kawasaki

13
Matsusaka

14
Sakai

15
Domestic affiliates

NOx emissions

Total phosphorous emissions(Unit: tons)(Unit: tons)
5

4,000

4

3,000

2,418

2,251

2,395

2,425

Quality

5,000

16
Overseas affiliates

3
2,367
2

1,000

1

0

1.1

1.4

1.3

1.5
1.2

Employees

2,000

0

(FY)

12

13

Ube

KawasakiMatsusaka

14
Sakai

15
Domestic affiliates

16
Overseas affiliates

(FY)

12

Ube

Kawasaki

13
Matsusaka

14
Sakai

Total nitrogen emissions(Unit: tons)

140

100

120

16
Overseas affiliates

Society

Ash dust emissions(Unit: tons)

15
Domestic affiliates

80

100
60

80
55

44
46

40

38

41
32

46

48

43

40

Activities at
Individual Plants

60

34

20

20

0

0
(FY)

12

13

Ube

KawasakiMatsusaka

14
Sakai

15
Domestic affiliates

16
Overseas affiliates

(FY)

12

Ube

Kawasaki

13
Matsusaka

14
Sakai

15
Domestic affiliates

16
Overseas affiliates

CSR Report 201723

Environment
Reducing Industrial Waste
The Central Glass Group is striving to reduce its industrial waste in accordance with the Basic Act on Establishing a Sound MaterialCycle Society.

Central GlassCentral Glassʼs plants uphold “promoting reduction and reuse/recycling ofindustrial waste” as an important task in our responsible care activities,
and each workplace carries out initiatives accordingly.
We have been working toward the target of a 65% reduction in industrial waste (final disposal volume) from the FY2000 level by FY2015.
We met this initial target, and ultimately achieved a reduction of 74%
from the FY2000 level in FY2015. From FY2016 onward, we have set atarget of a 71% reduction from FY2000, based on targets set by the Japan Chemical Industry Association and the Flat Glass Manufacturers Association of Japan according to guidelines established by the Japan Business Federation. We aim to achieve this target by 2020.
In FY2016, our industrial waste (final disposal volume) amounted toapproximately 12,000 tons, down 82% from FY2000. Thus, we havealready achieved our target. We will continue management efforts toachieve our target for 2020.

Final disposed amount of industrial waste(Central Glassʼ plants)(Unit: 1,000 tons)
80
70

67.5

60
50

Target: 71%
reduction relative toFY2000

40
30.9

30

29.7

26.4
17.9

20

19.7
11.8

10
0
(FY)

2000

12

13

14

15

16

(Government target: 70% reduction in the final disposed amount of industrial waste in FY2020 compared to
FY2000)

The Central Glass Group

Final disposed amount of industrial waste(Central Glass Group)

As a waste-emitting company, Central Glass, along with its domestic affiliates, unfailingly complies with Japanʼs Wastes Disposal and Public
Cleansing Act and other relevant laws when it comes to the sorting andstorage of waste, as well as consignment, monitoring, and manifest management for proper disposal by industrial waste disposers.
Each of the Central Glass Groupʼs workplaces carries out its own
original waste-reduction measures, and as a result, the downward trend
in the amount of industrial waste (final disposal volume) continued from
FY2015 to FY2016.
We began tabulating the amount of waste at overseas affiliates in
FY2006 and continued to follow up with them in FY2016. Each individual company is carrying out efforts to reduce its waste. In particular, ourglass plants deployed overseas have been working to reuse nearly 100%of their glass, just like our domestic plants.

(Unit: 1,000 tons)
80

74.2

70
60
50
40

36.5

34.9

31.4

30
23.8
20

19.2

10
0
(FY)

2000

12

Central Glass

13

14

Main domestic affiliates

15

16

Main overseas affiliates

Green Procurement
Central Glass and our domestic affiliate companies enacted “Green Procurement Guidelines” in 2006, and are committed to purchasing
products that contribute to lower environmental impacts. Due to variations in criteria among workplaces, we revised the “Green Procurement Guidelines” in March 2014 to clarify the criteria and targeted items.

24

CSR Report 2017

Quality

Basic Quality Policy

Action Guidelines

We aspire to truly contribute to society with the environment,
safety, and quality as our fundamentals. We always place customer satisfaction first and provide products and services that
customers love and can use with peace of mind throughout theentire product lifecycle, from product development to disposal
after use.

1. We listen to customers and respond promptly.

Environment, Safety &Quality Management

The Central Glass Group carries out quality control initiatives that always place customer satisfaction
first as we work toward our goal of establishing a truly prosperous society through the spirit of Monozukuri. In addition to complying with laws and regulations, we ensure product safety in order to minimizerisks to customers, and take customer feedback seriously so that we can accurately understand theirdemands and provide products and services that they prefer and can use with peace of mind.

Corporate Governance andCompliance

To Provide Products and Services That
Our Customers Can Use With Peace of Mind

2. Our basic approach is to build quality into

Safetyprocesses and improve quality continually.

3. We provide customers with appropriate

information regarding quality and features.

Quality Improvement Activities: Toward Sustainable Consumption〈P〉FY2016
Quality Policy and Plan

Enhance quality management.

Customer Improve quality performance.
satisfaction Improve quality with awareness

Ensure complianceFurther enhance quality management at Central Glassʼs plants, subsidiaries, affiliates and departments managing subcontractors by implementing
the PDCA cycle.

2. Improve quality performance.

Improve quality with awareness that “Quality must be built in during the
manufacturing processes” and “The next processes are our consumers.”

3. Ensure compliance.

Ensure strict compliance. “Follow what is decided” and “Follow what we
decide.”Progress Accomplished:

Made steady progress:〈D〉FY2016 Results•Conducted quality audits based on ISO 9001 standards or ISO/TS 16949
standards at each workplace and affiliated manufacturing site, and provided support and guidance for maintenance and improvement of qualitycontrol systems.
•Conducted quality management activities targeting subcontractors andsuppliers of raw materials.
•Conducted activities to reduce risk at an early stage with decisions on R&D
feasibility (gate meetings) and design reviews (DR).
•Conducted complaint reduction initiatives providing guidance on thepractice of “5 Whys Analysis” as a method of analyzing the causes ofquality defects.
•Identified cases of complaints by business and product category, determined causes, and instituted measures to prevent occurrence and defects
reaching the market.
•Actively collected quality evaluations from customers and applied them toquality improvement initiatives.
•Actively responded to demands for improvement based on quality auditing by customers.
•Conducted quality and product-safety education for employees by positionand division.

•Confirmed conformity with public standards for products at each workEnsure strict compliance. “Follow place and affiliate.
what is decided” and “Follow what •Conducted product safety training sessions that include understanding oflaws and regulations related to product liability and quality
we decide.”〈C〉
RatingAdditional measures required:〈A〉FY2017
Quality Policy and Plan

Improvement of quality
management system

Improve initiatives to create a more
effective quality management systemthrough awareness in all processes
that “Quality must be built in during
manufacturing processes” and “Thenext processes are our consumers.”

Continue and enhancerisk-reduction initiatives.

Predict potential risks in all processes and make efforts to reduce them.

Activities at
Individual Plantsthat “Quality must be built in during the manufacturing processes”
and “The next processes are ourconsumers.”

1. Enhance quality management.

Society

Further enhance quality management at Central Glassʼs plants,
subsidiaries, affiliates and departments managing subcontractors
by implementing the PDCA cycle.

FY2016 Quality Policy

Employees

Major
Issuesly by separating corporate functions for glass and chemicals.
Our objectives are to establish quality-assurance systems suited to the different businesses of glass and chemicals products,
and to enhance the functioning of those systems.

Quality

Details of Activities and Evaluation

Environment

The Central Glass Group formulates annual quality policies
based on the Basic Quality Policy and in consideration of quality assessment results for the previous fiscal year. These annual policies are rolled out at each workplace and affiliates inJapan and abroad. Each worksite strives to make continuous
quality improvements in order to achieve quality objectives
based on the quality policies. We check and assess conformity
with requirements as well as the validity of our Quality Management System (QMS), manufacturing processes, and products
through quality audits and reviews of quality improvement initiatives, tying the results into activities aimed at improving
quality.
We have developed an organizational structure for qualityassurance activities that allows us to take practical action on
quality assurance for glass and chemicals products respective-

Ensure compliance

Ensure strict compliance. “Follow
what is decided” and “Follow what
we decide” in all processes.

CSR Report 201725

Quality
Quality and Product-Safety Education: Educating Employees to Ensure the Protection of Consumersʼ Health and Safety
In order to conduct comprehensive and systematic quality-related education, we established a quality education system forCentral Glass and our affiliates in Japan in FY2016, and provide employees with systematic education organized by position and division in the areas of laws and regulations, qualityrelated knowledge, management methods, and quality
awareness.
As one of our educational initiatives by position, we holdproduct-safety training sessions including coverage of productliability law and quality-related laws and regulations, with specialists invited from outside the company, for committees composed of the heads of departments including sales, technology,
and back-office departments. This educational initiative isaimed at preventing product accidents and serious quality issues.
Among our educational initiatives by division, we provide
education on “5 Whys Analysis” as a method of preventing therecurrence of quality defects not only to employees of our quality and manufacturing departments, but also to employees of
R&D and sales departments. We also educate employees of oursales departments regarding quality and product safety, andemployees of our R&D and manufacturing departments regarding SDS and labeling (compliance with the GHS).
Central Glass and our affiliates in Japan have been en-

couraging employees to take the Quality Management andQuality Control (QM/QC) Exam since 2007 in an effort to promote the acquisition of knowledge related to quality management and improvement. Each workplace and affiliate in Japanis working continuously on this initiative. Additionally, Central
Glass became a sponsor of the Japanese Standards Associationʼs QM/QC Exam in 2016.
Through these efforts, we have raised quality awarenessamong all employees and applied quality-related knowledge
and techniques to quality activities, helping us carry out better“Monozukuri ”.

Product-safety training session

34th Company-Wide QC Circle Rally
We held the 34th Company-Wide QC Circle Rally on November
22, 2016.
A total of eleven circles gave presentations at the 34th
rally, consisting of five circles from our plantsʼ manufacturing
divisions, one from the Head Office, four from affiliates in Japan, and one from overseas affiliates.
There were presentations by each circle on various proposals and measures for cutting costs, as well as the outcomesof their efforts over the past year. There was also a lively ques-tion and answer session between judges and attendees.
As our QC circles engage in friendly competition witheach other through these company-wide rallies, they pursue therealization of the Central Glass Groupʼs corporate philosophy,“the creation of a better future through Monozukuri.”Circles Participated in the 34th Company-Wide
QC Circle Rally
Workplace

Carlex Glass Americaʼspresentation

26

CSR Report 2017

Awards Ceremony

Circle Name

Mie Glass Industry Co., Ltd.

Eight MenUbe Plant

TEKI

Central Chemical Co., Ltd.

The Guts D

Matsusaka Plant

Blue Impulse

Glass Manufacturing Technology Center

Red Lantern

Central Glass Plant Services Co., Ltd.

JEEPCarlex Glass America, LLC

Assembly Line Relocation

Ube PlantGroup F

Ube Plant

Gas-ConKawasaki Plant

Wave

Central Glass Fiber Co., Ltd.

MFC

Employees

Central Glassʼs Education System

Environment, Safety &Quality Management

Central Glass is a “Monozukuri” (manufacturing) company that has continually provided superior products with higher added value in order to enrich peopleʼs lives. We focus on Hitozukuri (developing
human resources) as the foundation of our corporate growth, and strive to enhance our human resource
development and HR programs with the aim of creating an environment where each individual candemonstrate his or her capabilities and skills to the utmost.

Corporate Governance andCompliance

Making Things (Monozukuri ) Is about
Developing Human Resources (Hitozukuri )The education that Central Glass provides to employees has two pillars: education for career development to foster global human resources and candidates for managerial positions, and education for Monozukuri to pass on and develop advanced techniques and skills.
In both cases, we offer a wide range of educational opportunities including position-based education programs organized according toparticipantsʼ ages and positions, as well as selective education programs organized according to work duties and abilities.

Education for career development

New leader training

Environment◆

OJT system

Distance
learning

Quality

Training for new employees/Training at plants/
Training by assignment to section

Training for new employees /Follow-up training for new employees

Overseas job training

2nd-year training

Short-term study abroad*Language study, etc.

5th-year training

Programs to fostera global mindset

Training for newly appointed
assistant managers◆
Preparatory
educationfor employeestransferredoverseas(language
study)MOTOJT system (On-the-Job Training)

Education for HR assessment anddevelopment personnel

Management trainingMBA(overseas/domestic)

QCC Company-WideRally /
Lectures fortechnicians /Various study groups

J-Grade training

Language
study(English/
Chinese/Korean)Training for newly appointed managers

Leadership
position (S Grade)Standard position (J Grade)

Approximately every five years

Skill acquisition
support system
SE training(passing onof skills)

Selective education programs

K1 selective
training

Training
for
employees ofback-office
departments

Training for
selected ACE
trainees(fostering leaders)Training for executives on
temporary dispatch

Supervisory
position (K Grade)

Leadership position (S Grade)

Subleader training

Participatory education programs

Managerial
position (M Grade)

Enhancement programs

Ability-based
grade

Ability-based
grade

Position-based education programs

S-Grade training

SafetyMonozukuri education[For all employees]◆ Distance learning ◆ Language study (English/Chinese/Korean)◆ Preparatory education for employees transferred overseas (language study)

Central Glass has been conducting education for selectedtrainees at our Active Expert Centers (AECs) since 2006, aiming to foster new generations of technical leaders at our plants.
The AECs established in each plant are educational centersdedicated to passing on and developing technical skills. Each
year, candidates for the next generation of leaders are selectedfrom our manufacturing plants and leave their posts for one
year of education as AEC trainees. After studying topics suchas problem-solving methods in the classroom, trainees participate in themed activities involving problem resolution and improvements to actual manufacturing sites. By teaching trainees
how to logically assess situations and respond to them, we are
fostering a new generation of leaders who can take charge anddevelop high-level manufacturing technologies.

Central Glass has established three overseas study systems for
employees in order to develop candidates for managerial positions who will be responsible for the companyʼs future, as follows:•MBA program: Employees study at domestic or overseas graduate schools for two-year periods in order to foster high-level
management skills.
•MOT program: Employees study at domestic or overseas graduate schools for two-year periods in order to foster an extensive knowledge of technology and management and the ability
to advance strategic research and technological development.
•Short-term study abroad program: Employees study at overseas
language schools for half a year in order to foster practical abilities and international awareness through language study.

Number of trainees by fiscal year
Number of trainees

Fiscal year

Number of trainees

2006
2007
2008
2009
2010
2011

15
11
14
12
12
11

2012
2013
2014
2015
2016
Total

10
11
10
11
9
126

Number of participants in each program
Fiscal year

MBA･MOT

Short-term study abroad

2011
2012
2013
2014
2015
2016
Total

2
4
4
2
4
4
20

2 (USA: 2)2 (USA: 1, China: 1)
2 (Canada: 1, India: 1)
2 (Canada: 1, China: 1)2 (USA: 2)3（USA: 2, China: 1）

CSR Report 2017

Activities at
Individual Plants

Fiscal year

Society

Study Abroad Programs

Employees

Training for Selected AEC Trainees

27

Employees

VOICE
As an AEC trainee, I was given the opportunity to study a variety of

Before my AEC study, I only thought about things from the perspec-

subjects over a one-year period.

tive of my own department. Since finishing the AEC program, I per-Through the basic education on topics such as data stratification and IE techniques as well as theme-based activities in the AEC

form my job with a consciousness of the lateral communications
within the plant.

program, I learned problem-solving methods applicable to manufac-

I would like to apply the knowledge andturing sites. The program also increased my safety awareness. Think-experience I gained from the AEC to boost

ing about safety is now a habit for me. In addition, I received educa-

the productivity of my plant, and actively

tion and guidance that encouraged me to think about problems andmake improvements to both safety and pro-take action on my own so that I can pursue AEC activities autono-

duction. I will also try to provide guidance tomously. I also discovered things that I hadnʼt noticed while I was fo-

younger employees so that they can function

cused on my regular manufacturing duties. I had the opportunity tomore autonomously, thereby increasing the

be involved with a variety of other departments within the plant andproductivity of the plant as a whole.

learn about their jobs.

Masaru Numata
AEC participant
Specialty Chemicals
Section 1, Production
Department, Kawasaki Plant

Fostering Awareness of Diversity and a Global Mindset by Accepting Interns
Central Glass began accepting interns from overseas universities at
our plants in FY2012 in an effort to promote employeesʼ awarenessof diversity and improve their ability to communicate with people
from other countries. By communicating with interns as they perform their work duties, our employees can practice English andlearn about foreign cultures, along with developing a diverse outlook that is not bound by national origins.
In addition to performing a variety of duties, interns also hostEnglish classes at their plants. By providing employees who havelittle contact with the English language in the course of their regular duties with the chance to communicate in English, we hope toboth improve their language skills and foster a global mindset. To
promote diversity and develop a global mindset among our employees, we will continue to actively accept overseas interns.

Number of interns accepted
Fiscal year

Number of interns

Nationality of intern(s)

2012
2013
2014
2015
2016
Total

1
ー
2
1
2
6

UK
ー
USA, Korea
USA
USA

Creating a Healthy and Vibrant Corporate CultureWith the formulation of our Action Plan to Promote Female Workplace Participation in April 2016, we are striving to reform working
styles and change awareness by making the most of the diverse
resources represented by our employees, providing effective education, reforming our working environments, and increasing productivity, in order to foster a healthy and vibrant corporate culturethat allows all employees to succeed.
We are expanding the job opportunities available to female
employees by making efforts to assign them not only to sales, management, and research divisions, but also to shiftwork positions,where female employees have not previously been assigned.
In July 2016, to further invigorate efforts to promote the active participation of female employees, we hosted lectures andmeetings regarding future initiatives for top managers and theheads of all Group worksites. Through company-wide cooperation,
we have begun to establish more varied work styles by designating
the second and fourth Wednesdays of each month as “Smart Days”(days to leave work on time), and implementing a planned time-off
system that encourages employees to take at least one dayʼs paid
leave per month.
We also conducted a survey of all employees in March 2017,with questions on topics such as workplace environments that accommodate child-raising and the provision of care for family members, and employeesʼ work-related motivation. The results of thesurvey will be reflected in future initiatives.
28

CSR Report 2017

First Action Plan to Promote
the Active Participation of Female Employees
Goal 1

Establish a target percentage for female
hires in recruitment (numerical goal).

Goal 2

Reconsider working styles.
1. Change from “overtime as the norm” to “overtime as something extra”
2. Create an environment where taking time off is“the norm”

Goal 3

Conduct an awareness /environmental survey.

Lecture on promoting the active participation of female
employees

Central Glass has been conducting mental health checkups or“stress checks” since 2009. As more and more people struggle
with mental health problems in our society, mental healthcheckups became mandatory for businesses with fifty or more
employees in 2015. Central Glass has also adopted stresschecks as an important primary preventive measure. Thesechecks alert employees to their own stress levels, and if theywish they may also discuss their issues with our industrial physician, who also provides us with advice on how to improve theworking environment and other aspects of our operations.
We are also working to create more comfortable workplaces and help our employees maintain their mental health by reducing anxiety among our employees and problems in our organization through initiatives such as support in workplaces andtelephone consultations by external advisors (counselors).

Employment status data
Item
Number of employees
Number of new recruits
Average age

FY2014FY2015FY2016

1,572

1,645

1,662

76

64

83

36.5

36.4

36.2

Average years of continuous employment

14.9

14.7

14.5

Percentage of persons with disabilities

2.21%

2.20%

2.21%

Initiatives to Support a
Balance between Work and Family

VOICE
Environment

I have an eight-month-old daughter. I returned to the workplace

In order to support employees who are raising children or caring
for family members, we have been working to enhance our support systems, such as by extending childcare leave and granting partial pay, expanding the scope of our system of reduced
working hours for childcare, and increasing the flexibility ofnursing care leave and reduced working hours. We will continue
to enhance support systems that allow our employees to balance work and family with peace of mind, and strive to createa culture where all employees can enjoy an active working life.

in April of this year, using the system for shortened working
hours while raising children. The day before I was due to return
to work, my daughter suddenly developed a fever, and I had tomake use of the system for nursing care leave for children. Babies often get sick very suddenly, so I am extremely grateful forthis system.
Since returning to work, I have been making an effort to

Qualitycooperate closely with my colleagues, not only to increase myefficiency in the job, but also to ensure that they are able torespond when I have to take time off on short notice.
My days are very busy, but I value time spent with my fam-Childbirth preparation leave

Two days off per month for hospital visits, etc. during pregnancy

Maternity leave

Legally mandated leave before and after childbirth.

ily. In the future, I want toChildbirth leave

Three days off within a one-month period around the expected delivery datecontinue to perform in myChildcare leave

Legally mandated childcare leave.

job in order to show my grati-Childrearing leave

One day off per month for childcare

tude to my workplace.
Employees

Staggered working hours
during childcare
Shortened working hours
during childcare
Nursing care leave forchildren

SafetyAs of the end of FY2016, our rate of employment of persons
with disabilities was 2.21%, above the 2.0% mandated by law.
However, the Ministry of Health, Labour and Welfare has announced its intention to increase the legal requirement in stages, to 2.2% in April 2018, and then to 2.3% by the end of
March 2021. Amid these efforts to provide stable employment
to disabled workers and promote their independence, Central
Glass is committed to continuing to advance its employment of
persons with disabilities, and to creating accommodating environments where they can exercise their diverse abilities.

Environment, Safety &Quality Management

Mental Healthcare

Corporate Governance andCompliance

Employment of persons with disabilities

One-hour postponement of the start of the workday

Yuriko Harada

Shortening of working hours by a maximum of two hours per day
Thirty-six days off per year for nursing care for children, etc.

Nursing care leave

Total of 365 days leave, dividable into up to three periods

Time off for nursing care

Ten days off per year for nursing care and attendance of family members, etc.

Shortened working hours
for nursing care

Shortening of working hours by one hour per day

Architectural Glass Sales Promotion
and Engineering Section,
Flat Glass Marketing andSales Department

Pregnancy

6 weeks

Childbirth preparation leave

8 weeks

1 year old

2 years old

Before elementary school enrollment

First grade

Society

Applicable periods for childcare support system (from pregnancy to child-raising)
Elementary school
graduation

Delivery dateMaternity leave
Childbirth leave (3days)(Can be extended
until the child is
two years old)

Activities at
Individual Plants

Childcare leave

Childrearing leave
Staggered working hours during childcare
Shortened working hours during childcare

Shortened working hours during childcare
Nursing care leave for children*Only female employees are eligible for maternity leave, and only male employees are eligible for childbirth leave; all other measures are open to both male and female employees.

CSR Report 201729

Society

To Grow with Society
The support of and harmony with members of the local community are absolutely essential for a companyʼs continued existence. Central Glass will continue to build even better relations with every oneof its stakeholders, starting with members of local communities and customers, while also growing
and improving together with society in order to realize a sustainable society.

51st Central Glass International Architectural Design Competition
Central Glass began sponsoring a competition for architecturaldesign ideas in 1966. Starting with the 10th competition in
1975, it was renamed the Central Glass International Architectural Design Competition to invite entries from overseas. The
theme of the 51st competition in 2016 was “Houses to Livewith Fūdo.” There were 188 entries in total, 101 from Japanand 87 from overseas (refer to the back cover for the First
Place Prize design). The theme of the 52nd International Architectural Design Competition in 2017 was “Redesigning Urban

Presentation by the winner of thecompetition

Open Space.” We live in a time in which we need to pursue
economic efficiency and rationality, while simultaneously preserving the natural environment and protecting historical andtraditional cultures. As a company that promotes architectural
culture, we believe that it is highly meaningful for us to provide
occasions to consider a desirable society and environment
through this competition. Central Glass takes great pride in ourcontinuing efforts to sponsor this competition over many years.

Chief Judge

Hiroshi Naito (Naito Architect & Associates)

JudgesTaro Ashihara (Taro Ashihara Architects)
Tadao Kamei (Nikken Sekkei Ltd.)
Teruo Kobayashi (Obayashi Corporation)
Kengo Kuma (Kengo Kuma & Associates)
Yoshiharu Tsukamoto (Atelier Bow-Wow)
Satoshi Takayama (Central Glass Co., Ltd.)

Commemorative photo28th Junior Science Classes
The “Summer Vacation Junior Science Class” is held every year
under the auspices of the Summer Vacation Junior Science
Class Executive Committee and jointly hosted by the Yamaguchi Industrial Promotion Foundation in cooperation with universities, technical colleges, corporate research institutes, andmore. It is held in the hope of showing children with infinite
future potential how interesting and fun science can be. In
2016, it was held at 17 venues in Yamaguchi Prefecture in collaboration with 16 related organizations between July 22 andAugust 28.
Central Glass wholeheartedly agrees with the premise,and on July 28 we held a class at the Chemical Research Center (Ube) in which 20 elementary and junior high school students from Ube City and other cities in Yamaguchi Prefecture

Lesson in progress
30

CSR Report 2017

participated. Under the theme of “Experiencing the wonders ofheat and light,” young researchers played the role of instructor
and prepared hands-on experiments that allowed students toexperience the heat energy and light energy found all aroundus. Participants formed small groups and the seats were arranged for all of the children and their parents to enjoy theclass. The children engaged enthusiastically in the experiments, asked the instructors questions, and sometimes gasped
in surprise while their parents looked on in enjoyment.
We hope to be able to continue hosting these classes in
the future to provide opportunities for more children to learn
how exciting and fun science can be and grow up with a greaterinterest in science.

Participating children and their parents

Group photogroups and held discussions on the topics of “management ofchemical substances” and “emissions from plants (air and water quality).” Each group had a lively exchange of opinions, andspecific concerns regarding security and the environment wereraised, making this a highlymeaningful town hall meeting. We will continue our efforts to engage in communication with the residents of
the region in order to createa safe and secure plant toThe 14th Regional Town Hall Meeting
gether.

Environment, Safety &Quality Management

Four chemical companies located in the Ube District hold anannual regional town hall meeting with local residents. The
fourteenth meeting was held on January 21, 2017, in the gymnasium of Central Glassʼs Ube Plant. Fifty-six people including
members of the local government, NGOs, and local residents
participated. The four companies involved first offered overviews of their plants and their environmental initiatives. The
Japan Chemical Industry Association then gave a presentationon the history of responsible care and activities associated withthe concept. Next, the Ube municipal government explained its
environmental protection initiatives in Ube City. Following
these presentations, the participants were divided into two

Corporate Governance andCompliance14th Regional Town Hall Meeting in the Ube District

lected by the Eco-Cap Collection initiative since its start in2009. Converted into the cost of polio vaccines, our donations
are equivalent to vaccines for approximately 735 children.
Through the activities of its Volunteering and Charity
Committee, the Matsusaka branch of the Central Glass Labor
Union will continue to actively support children inneed around the world.

Environment
Quality

The Volunteering and Charity Committee of the Matsusaka
branch of the Central Glass Labor Union is conducting an “EcoCap Collection” initiative. This involves collecting used PET
bottle caps from each of our workplaces and selling them to a
recycler, with the proceeds donated to the Japan Committee,“ Vaccines for the Worldʼs Children” (JVC).
In FY2016, 114,380 PET bottle caps collected from Central Glass workplaces were delivered to recyclers. The resulting
donation was equivalent to the cost of polio vaccines for approximately 133 children. Since the incineration of the same
number of bottle caps would release approximately 837.9 kg of
CO2 into the atmosphere, the initiative also contributed to a
reduction in CO2 emissions.
A cumulative total of 632,620 bottle caps have been col-SafetyParticipation in Ecocap activities

Bottle caps collected for donation

Volunteer Roadside CleanupSociety
Activities at
Individual Plants

The cleanup

to the second training period for newly recruited members in
July. The temperature was above 30°C, but the volunteers
were happy to work and have the opportunity to communicate
with local residents, and their expressions were filled with satisfaction when they saw the pile of trash that they had collected
through their hard work.
The Ube Plant Labor Union will continue to fulfill its CSR
commitments by conducting activities in which all employees
can participate and collaborate.

Employees

The Ube branch of the Central Glass Labor Union conducts avariety of volunteer activities in order to contribute to the local
community. One of these is the “ Volunteer Roadside Cleanup”
conducted every April during the first training period for new
union members. The Ube Labor Union organized this initiative
for the seventh time in 2016 (the first was in 2010). The cleanup is conducted along public roads and residential streets, andin parks around the Ube Plant.
The purpose of this initiative is to allow newly recruitedmembers from all over Japan to
become more familiar with theplace where they will live, and tofoster an awareness of the deep
ties between the company andthe local community.
The activity was called off
in April 2016 because of rain,
but given its importance as a
CSR activity, it was rescheduled

A cleanup by new employees

CSR Report 201731

Activities at Individual Plants

Ube Plant▎

Message from the General Manager

Address

5253 Okiube, Ube City, Yamaguchi

Number of
employees

547 (as of March 31, 2017)

Major items
produced

Fluorine-related products, other chemicals
Acquired ISO 9001 certification (December 1997)
Acquired ISO 14001 certification (December 2000)
Acquired OHSAS 18001 certification (April 2011)

The Ube Plant started manufacturing soda ash and caustic
soda in 1936, and expanded its operations into the manufacturing of chemical fertilizers and organic and inorganic
chemical products. In May 2015, we discontinued production of soda ash and related products, which had been our
main products since the founding of the company. We havelaunched new plant facilities for manufacturing products
Nobuyuki Tokunaga
General Manager
such as HFO-1233zd(E), a foaming agent with a low global
Ube Plant
warming potential, in addition to our business for fine chemicals including active pharmaceutical ingredients and high-purity fluoride gas. Going forward, we will continue providing environmentally friendly products.
The plantʼs green spaces have been furnished with rows of cherry trees, andin spring, local residents are able to enjoy the beautiful blossoms and the naturalenvironment that exists in harmony with us. We will continue in our efforts to be asafe and open plant that offers local residents a feeling of security.

Regional Activities■ Cleanup activities for city and prefectural roads on our plant-wide 5S Day (oncea month)■ Cleanup activities in Tokiwa Park (once a year)■ Cleanup activities in the Ube city area (once a year)■ Cleanup activities around Lake Ono (once a year)■ Protection and cultivation of grasslands at Akiyoshidai (once a year)■ Cleanup activities around Ube Higashi Port (once a year)■ Forest maintenance activities to protect water resources (once a year)■ Road cleaning using road sweepers (every day)Preparing for Accidents and Disasters
The industrial complexes that dot Japan handle enormous volumes of high-pressure gases and dangerous substances. Ensuring security at these industrial complexes is therefore a very
important element in ensuring the safety and security of thenationʼs citizens.
In recent years, numerous accidents have occurred at industrial complexes, and their incidence is expected to remainhigh. Considering this, we work regularly to increase our ability
to maintain security and prepare for disasters, and to take preventive steps against trouble. On November 8, 2016, around260 representatives of twelve organizations including the local
government participated in drills in the Ube Plant tank yard ascomprehensive disaster prevention training for petrochemicaland other industrial complexes in Yamaguchi Prefecture.
The land-based portion of the training assumed the oc-

currence of an earthquake centered in the Nankai Trough, withan intensity of five on the Japanese scale in Ube City and damage to many facilities. On the water, in addition to oil recovery,
the training assumed the occurrence of a tsunami resulting
from the earthquake. Participants confirmed emergency procedures by practicing closing a seawall and evacuating to higher
ground.
We will continue working to further
strengthen our security management. Our
employees and cooperating workplaces
are united in their efforts to ensure security so that our plant is safe enough forneighboring residents to enjoy complete
peace of mind.
Earthquake disaster-prevention
training

PRTR(Unit: kg/year)

CSR Report 2017

➡
➡

⬇

➡
➡
➡
➡
➡

➡
⬆

32

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

⬆

Quantities emitted, discharged, or transferred are listed for those materials handled in amounts exceeding 1,000 kg in 2016 (except for dioxins)

Soil

⬆

0
0
0
0
0
0
0
0
0
0
0.92
0
0
180
0
0
0
0

⬆ ⬆

0
0
2,600
0
1,500
0
0
810
0
19
0.0001
5,500
80
100
670
76
0
48

⬇

Atmosphere

Comparison withthe previous year⬆

Asbestos3ʼ-Isopropoxy-2-trifluoromethylbenzanilide(also known as Flutolanil)
Ethylbenzene
Ferric chloride
XyleneQuinoline
Chloroethylene (also known as vinyl chloride)
Carbon tetrachloride
N,N-Dimethylacetamide
N,N-Dimethylformamide
Dioxins (Unit: mg-TEQ/year)
Trichloroethylene
1,2,4-Trimethylbenzene
PhenolHydrogen fluoride and its water-soluble salts
BenzeneFormaldehyde
Methylnaphthalene

Emissions
Water

⬆

33
41
53
71
80
81
94
149
213
232
243
281
296
349
374
400
411
438

Substance name⬇

Ordinance
designation No

Quantitytransferred
18,000
0
0
0
2.2
0
0
17
7,900
3,800
0
0
0
0
4,100
1,500
0
0

10-2 Ukishima-cho, Kawasaki-ku, Kawasaki City,
Kanagawa

Number of
employees

202 (as of March 31, 2017)

Major items
produced

Inorganic chemicals, organic chemicals
Acquired ISO 14001 certification (May 2007)
Acquired ISO 9001 certification (July 2001)

Environment

Regional Activities■ Roku-Cho-Kai (Regular social gatherings with residents of neighboring areas
including Tono Town and the Daishi District)■ Regular cleanups of the roads around the plant■ Regular exchanges of information concerning the environment and safety with
employees of neighboring plants in the Kawasaki Industrial Complex■ Participation in joint disaster drills with neighboring businesses in the Ukishima
District■ Participation in street-level traffic safety guidance(organized by the Kawasaki
Rinko Traffic Safety Association)■ Participation in Tokyo Bay General Survey for Water Environment (Analysis ofand report on water quality in Tokyo Bay near plant)■ Activities related to environmental safety conducted to improve the local
environment through the Research Society for Environmental Safety Technology
in the Kawasaki Industrial Complex

Quality

Initiatives for Security and Disaster Prevention
We have also joined the Ukishima Joint Disaster Prevention Association, made up of companies located near Kawasakiʼs Ukishima district. The association conducts monthly disaster prevention drills in membersʼ facilities, and has a mutual aid
system in place in case a member
company experiences an emergency
as a result of an accident or a natural disaster such as an earthquake,
typhoon, etc. Members also regularly exchange information on security and disaster prevention.

(Unit: kg/year)

➡
⬇

0
0
11,00071,000
0
1,700
2,200
8,300
10,000

⬇ ⬇

0
0
0
0
0
0
0
0
0

⬇

0
0.3
1.1
0
0.12
0.6
0
0
0

Quantitytransferred➡

Activities at
Individual Plants

0
3,000
260
11
0.050
0
23
0
0.2

Soil

⬆

Quinoline
Chloroethylene (also known as vinyl chloride)
Carbon tetrachloride
N,N-Dimethylformamide
Dioxins (Unit: mg-TEQ/year)
1,1,2-Trichloroethane
TolueneHydrogen fluoride and its water-soluble salts
n-hexane

Atmosphere

Comparison withthe previous year⬇

Substance nameEmissions
Water

⬆

81
94
149
213
243
280
300
374
392

Society

Earthquake disasterprevention training

PRTR
Ordinance
designation No

Employees

Since the Kawasaki Plant is located in an area where industrial
complexes are clustered, as defined in the Act for the Prevention of Disasters at Petrochemical Complexes, etc., we are required to maintain a system for the maintenance of security
and prevention of disasters at all times. We boost awareness of
security and disaster prevention and keep systems for responseto emergencies in place even under normal conditions by conducting plant-wide earthquake disaster-prevention training thatassumes the occurrence of earthquake-related leaks and fires,training in evacuation from the plant utilizing the time between
operations, and education for members of our plant disasterprevention organization several times a year.

SafetyHaving transitioned from its electrolytic soda business tothe fine chemicals business, the Kawasaki Plant is now
equipped to offer a stable supply of a wide range of products. The main products of the plant currently include HFC245fa (an alternative to CFCs), pharmaceutical intermediates, cleaning gases for semiconductors, and photoresist
materials.
Yukinari Hashimoto
General Manager
We are actively working to manufacture new products
Kawasaki Plant
that meet customer needs. We have launched mass production of Pattern Keeper™, a water-repelling drying agent that addresses circuit-pattern collapse in semiconductors.
As environmentally friendly products, we are producing HFO-1233zd(E), a
foaming agent with a low global warming potential and superior heat-insulating
properties, HFO-1233zd(Z), a cleaning agent that also has a low GWP, and nextgeneration electrolytes for lithium-ion batteries.
Our efforts in conducting environmental activities over many years have beenrecognized by Kawasaki City. The Kawasaki Plant has been certified as a workplacetaking environmental action, as defined in the cityʼs bylaws. Our entire team isunited in its efforts to ensure perfect scores for the environment and commitment
to safe operations.

Environment, Safety &Quality Management

Address

Message from the General Manager

Corporate Governance andCompliance

Kawasaki Plant▎

Quantities emitted, discharged, or transferred are listed for those materials handled in amounts exceeding 1,000 kg in 2016 (except for dioxins)

The Kawasaki Plant is continuing groundwater purification treatment as a result of contamination by a leak of 1,2-dichloroethane in 1982.
CSR Report 201733

Activities at Individual Plants

Matsusaka Plant▎

Address

1521-2 Okuchi-cho, Matsusaka City, Mie

Number of
employees

Plant :199 (as of March 31, 2017)

Major items
produced

Safety glass for automobiles, architectural andindustrial flat glass, fabricated glass, functional
glass for electronic equipment
Acquired ISO 14001 certification (April 2000)
Acquired ISO 9001 certification (November 2003)
Acquired ISO/TS 16949 certification (June 2004)

Message from the General Manager
The Matsusaka Plant manufactures polished plate glass using the worldʼs only duplex equipment capable of employing
a consecutive double-sided polishing method. We also manufacture flat glass such as high-permeability cover glass forphotovoltaic cells and processed glass for automotive andindustrial applications.
Because the plant consumes a huge amount of energy
Denzo Tokushima
General Manager
and resources, we continually work to rigorously implement
Matsusaka Plant
environmental conservation activities.
In order to conserve energy and power and reduce CO2 emissions, we areworking to reduce loss, introducing equipment that conserves energy in conjunction
with large-scale renovations, and pushing ahead with improvements to our operational technologies.
Since 2004, we have maintained zero emissions, but we are working to derivevalue from our waste (i.e. convert it into products) in order to achieve further reductions.
Each of our employees is continually working to achieve growth and improvement, based on our motto, “The Matsusaka Plant: Everything for the sake of people
and the global environment - Looking at the future through glass.” We will continue
to contribute to our region and work to make our plant safe and happy, never forgetting our sense of gratitude.

Regional Activities■ Participation in Mie Prefecture Kidsʼ ISO 14000 Program activities■ Participation in cleanup of waste drifting ashore at Toshijima Island, Toba City,
organized by the Mie Prefecture Industrial Waste Countermeasures Promotion
Council■ Exhibition of Eco-Glass at the Matsusaka Environmental Fair held by the Matsusaka City Environmental Partnership Committee■ Participation in the Matsusaka Street Cleanup organized by Matsusaka City
■ Opening of plant grounds to youth sports associations and other organizations free of charge■ Provision of company-owned land to neighboring municipalities as temporary
parking areas free of charge■ Inviting local residents to plantʼs summer festival■ Participation in the Aqua Social Festival in Matsunase, organized by Mie
Universityʼs Mie Global Environment Center for Education & Research (beachcleanup)■ Participation in voluntary cleanup activities at Matsunase Beach organized by
the Matsusaka Taki District Workersʼ Welfare Council■ Participation in Ecocap (bottle cap collection) activities

Safety Initiative: Danger Simulation Dojo
The Matsusaka Plant carries out danger simulation workshopswith the aim of raising the danger sensitivity and safety awareness of each and every employee.
In March of 2015, we opened a “Danger Simulation Dojo”
equipped with original devices designed jointly by veteran andjunior employees of the Engineering & Technical Section, including a falling glass weight simulation device and a glass cut
simulation device. The dojo is used for a variety of educational
programs, such as job rotation training and training of newhires including employees of cooperating companies.
In FY2016, we installed an electrical leak simulation de-vice. This device simulates the current produced during an electrical leak, and gives users firsthand awareness of the safety provided by correct grounding, and the risk of electrocution whengrounding is neglected.

Dojo entranceElectrical leak simulation device

PRTR(Unit: kg/year)

31
132
242
412
438

Substance name
Antimony and its compounds
Cobalt and its compounds
Selenium and its compounds
Manganese and its compounds
Methylnaphthalene

Atmosphere
0
0
86
62
22

Emissions
Water
0
0
0
0
0

Soil
0
0
0
0
0

Comparison withthe previous year

Quantitytransferred

➡

0
0
0
0
0

➡
⬇ ⬇ ⬇

Ordinance
designation No

Quantities emitted, discharged, or transferred are listed for those materials handled in amounts exceeding 1,000 kg in 2016 (except for dioxins)

In 2002, the Matsusaka Plant discovered groundwater containing arsenic and lead attributable to a past production method. It is currently continuing
groundwater purification treatment.
34

CSR Report 2017

6 Chikko-minamimachi, Sakai-ku, Sakai City, Osaka

Number of
employees

Plant : 45 (as of March 31, 2017)

Major items
produced

Architectural and residential flat glass, flat glass forelectronic equipment, architectural frosted glass
Acquired ISO 14001 certification (December 1999)
Acquired ISO 9001 certification (February 1999)■ Participation in the Osaka Bay Cleanup Project■ Participation in comprehensive disaster drills in the Sakai/Senboku coastal area
■ Support for a flea market and donation of proceeds to social welfare activities■ Activities to inform the public about fires and first aid at the Sakai Fureai Festival as a member of the Sakai City Disaster Response Committee■ Provision of support for a project conducted by the Osaka Prefectural Seikoukai
in Sakai Senboku Port to ensure the safety of ships navigating through the port
and protect the environment

Environment

Regional Activities■ Blood donation drive at the Sakai Manufacturing Site
■ Acquisition of proficiency in cardiopulmonary resuscitation technique throughemergency lifesaving course offered by Sakai Fire Department (6 employees)

Quality

Participation in FY2016 Osaka Bay Cleanup Project
lives do not just return to nature when discarded. Our participation in this cleanup reminded us of the importance of collecting
and recycling them.
The Sakai Manufacturing Site will continue to participate
actively in these kinds of activities, with the aim of minimizing
the amount of trash littering Osaka Bay.

Society
Activities at
Individual Plants

Cleaning up

PRTR
Substance nameXylene1,2,4-Trimethylbenzene

Atmosphere
62
71

Emissions
Water
0
0

Soil
0
0

Comparison withthe previous year

Quantitytransferred⬇ ⬇

(Unit: kg/year)

Ordinance
designation No
80
296

Employees

Every year, Central Glass (including Central Glass Plant Services Co., Ltd.) takes part in beautification activities conductedalong the Osaka Bay sea walls as part of a campaign organized
by Osaka Prefecture to remove trash and ensure the cleanlinessof the water in Osaka Bay.
This beautification activity was hosted by the Port andHarbor Bureau of the Osaka Prefectural Government, and cohosted by Sakai City and the Sakai City Federation of Fisheries
Cooperative Joint Associations. In 2016, eleven employees
from the Sakai Manufacturing Site took part, with almost 200
participants in total collecting trash from the sea walls.
Looking over the sea walls before starting the cleanup, it
seemed that there was less trash than in the past several years.
However, once we started cleaning up, it became apparent that
there were just as many discarded PET bottles as usual. We
realized that our task of picking up a variety of trash was just asvital as ever.
The PET bottles that are so convenient to us in our daily

SafetyThe Sakai Manufacturing Site is located in the center of the
Coastal Industrial Zone in Sakai City, Osaka, and it has been
manufacturing flat glass continuously since 1959 as thebirthplace of the Central Glass Flat Glass Division. In 1982,
we adopted the float process as our manufacturing method
and started manufacturing high-grade flat glass.
In 2007, we completed our second round of cold repair
Keiichi Kon
General Manager
work (repairs of the entire manufacturing lines starting from
Sakai Manufacturing Sitemelting furnaces). As part of this process, we conducted
Matsusaka Plant
improvement work that reduced our CO2 emissions by 3%,
and restarted production in April 2008. In August 2009, we conducted work to
improve our float baths, and began manufacturing thin flat glass for use in electronic devices such as smartphones and other mobile terminals.
In May 2012, we completed our installation of spattering equipment that deposits thin metallic membranes on glass surfaces and began manufacturing EcoGlass, a product that can reduce the cost of cooling and heating buildings.
We are currently improving heat retention and adjusting operating conditions
for our glass-melting furnace in order to reduce our fuel consumption.

Environment, Safety &Quality Management

Address

Message from the General Manager

Corporate Governance andCompliance

Sakai Manufacturing Site
Matsusaka Plant

00

Quantities emitted, discharged, or transferred are listed for those materials handled in amounts exceeding 1,000 kg in 2016 (except for dioxins)

CSR Report 201735

51th Central GlassInternational Architectural Design Competition
First Place : Ryo Itoigawa (NOSIGNER Co., Ltd.)

Theme:

Houses to Live with Fūdo

Since times long past, humans have created houses to protect
themselves from the natural environment. Over many years,
they created buildings with characteristics unique to their own
regions. As a result, different architectural styles arose in different places, forming the fertile soil for distinctive regional
cultures.
However, with the rise of modernism in the 20th century, similar kinds of architecture began to be built all over theworld. Architecture prioritizing function, rationality, and economy has provided indoor spaces with constant temperatures,
humidity, and lighting, regardless of place, season, or time.
But as the trade-off for this, energy consumption has expand-ed, and regional cultures have declined.
In the 21st century, facing natural disasters and the destruction of the earthʼs environment, we need to reevaluate
our relationship with places. There is a Japanese word, fūdo,which refers to the distinctive climate, geology, topology, andscenery of a place, together with the history and culture thatwere born there. Architecture today has been called upon toreestablish harmony with nature and rediscover its relationship with fūdo.
Thinking about fūdo means not only grasping the climate and landscape of a place, but also thinking about thepeople who live there.

Environment, Safety and Quality Management Department