Enacted : June 1, 2019
Revised : June 18, 2021

TODA KOGYO Group
Environmental Vision
2033
Commitment of Upper Management
Global warming is causing grave problems all over the world, such as abnormal weather, environmen-tal pollution, resource depletion, international conﬂict, a widening gap between the rich and poor, anddiscrimination. A range of initiatives are being implemented to solve these problems, such as the adop-tion of sustainable development goals (SDGs) at a United Nations summit, the adoption of the COP21
Paris Agreement, and the Government Pension Investment Fund (GPIF) becoming a signatory to theUnited Nation's Principles for Responsible Investment (UN-PRI), and great strides are being madetoward achieving a sustainable society.

As a chemical material manufacturer, the TODA KOGYO Group recognizes that environmental prob-lems are a major challenge that threatens our very existence, and has been reducing our environmental

impact for a long time. For example, we have transformed our production technology from a dry
synthesis method with a large environmental impact to a wet synthesis method that is non-polluting, as

well as reusing the waste liquid of steel sheet manufacturers and the waste materials of our own plants.
We currently have a CSR policy, four guidelines for CSR, and an environmental policy that promote

activities that contribute to the creation of a sustainable society. With the year 2033 being the 100th
anniversary of the founding of our company, we have also formulated

Environmental Vision 2033

asa medium-term vision for ESG initiatives that also deﬁnes where we want our company to be in 2033.

Via these activities, we shall strive to conserve and protect the environment and achieve the SDGs

together with our stakeholders.

Shigeru Takaragi, President and Representative Director

ー1ーBasic Environmental Policy
TODA KOGYO Group conducts environmental management based on the ISO14000 series, and not

only recognizes environmental conservation as the mission imposed on global citizens, but also considers environmental conservation activities and management activities coaxial. We are responsible forourselves and work on these activities across the entire group.

Concrete codes of conduct(1) Setting and achievement of high environmental conservation goals

Executives and employees set high goals that anticipate social expectations at their own responsibility,

and strive to create economic value through the achievement of them, as well as compliance with laws
and regulations.

(2) Promotion of the development of innovative environmental technologies

Executives and employees create customer value, proceed with the development of innovative environ-mental technologies widely used across society, and promote the development of environmentally
harmonized products.

(3) Continuous improvement with the participation of all executives and employees

Executives and employees grasp the impact on the environment in all business activities, and continu-ously improve on the prevention of pollution and eﬀective use of energy and resources by all participants.
(4) Provision of environmentally conscious products and services

When providing products and services, executives and employees strive to reduce the environmentalload in all stages leading to sales, logistics, use, recycling and disposal from procurement policies andproduction.

(5) Improvement of consciousness and promotion of responsible environmental conservation activities

Each and every executive and employee broadly looks at society, raises awareness through positive

learning, and proceeds with environmental conservation activities by his/her own responsibility.
(6) Contribution to the realization of a sustainable society

Executives and employees contribute to the realization of a sustainable society by means of joining andsupporting environmental conservation activities.

(7) Acquisition of social trust through communication

Executives and employees develop environmental conservation activities in cooperation with stakehold-ers and gain the trust of society through active communication.

Introduction
Executives and employees of the TODA KOGYO Group discussed

Our Ideal 2033 Self , 2033 being

the 100th anniversary of the founding of our company, and formulated the2033

based on the perspective of four sustainability principles.

Five Pillars of Environmental Management(1) Conserving biodiversity(2) Reduction greenhouse gas emissions(3) Providing environmentally-harmonized products and technologies(4) Forming a recycling-oriented society(5) Eﬀectively utilizing industrial wasteー2ーEnvironmental Vision

Five Pillars of Environmental Management

Company managers

We shall establish an Environmental

CSR Departmentpointed by each of our departments as

Environment CommitteeCommittee made up of members appart of the CSR Department under theEﬀectively utilizing industrial waste

Forming a recycling-oriented society

Providing environmentally-harmonizedproducts and technologies

Reduction greenhouse gas emissions

Conserving biodiversity

Management System

Internal Audit Oﬃce

Head Oﬃce Division

direct jurisdiction of upper manage-

ment, which shall promote the initia-

Sales Division

tives of Environmental Vision 2033.

Manufacturing Division
Research & Development Divisionー3ー(1) Conserving biodiversity
The Japan Business Initiative for Biodiversity (JBIB) established in April 2008 formulated and published

Guidelines for Private Sector Engagement in Biodiversity, and conducts various activities based on theseguidelines. At the tenth meeting of the Conference of the Parties (COP10) held in Nagoya, Aichi Prefecture, global targets for biodiversity ( Aichi Targets ) were adopted and each country deﬁned nationaltargets for their achievement that are required to be reﬂected in a national strategy for biodiversity.

In accordance with the Action Guidelines for Biodiversity deﬁned by the TODA KOGYO Group, we

promote activities for conserving biodiversity via our business activities and social life.

Action Guidelines for Biodiversity
1. Recognizing the preservation of biodiversity to be an important issue in the corporation,
we will practice environmental management.
2. We will understand the inﬂuences on biodiversity aﬀected by our business activities
including our raw materials procurement policy, and endeavor to continuously reducethese inﬂuences.
3. We will continuously promote resource saving, energy saving and 3R (reduce, reuse, recycle) not only in our own business activities but also in cooperation within our supply chain.
4. We will promote manufacture of products which contribute to the preservation of biodi
versity, technological development and innovation of the production process.
5. We will endeavor to enhance communication and contribute to cooperation with custom
ers, suppliers, other corporations, NGOs, education and research agencies, local
governments and so on.
6. Because the activities of each and every employee are essential for preserving
biodiversity, we will increase awareness for protection of abundant ecosystems througheducation of employees.

ー4ー(2) Reducing greenhouse gas emissions
With the signing of the Paris Agreement, worldwide eﬀorts for combatting global warming are intensi-fying. The Japanese cabinet decided on a plan for tackling global warming in May 2016, which aims toreduce 2013 levels of greenhouse gas emissions by 26% by the year 2030 and by 80% by the year 2050.
At the G20 Riyadh Summit held in a video conference format for two days on November 21st and22nd, 2020

Prime Minister Yoshihide Suga reiterated his determination to achieve "carbon neutrality" by reducing green-house gas emissions by 46% by 2030 and virtually zero by 2050, making it an international commitment.

Toda Kogyo Group has reviewed its existing goals and set new goals to achieve the following by 2033
compared to 2013.

We have therefore set the following targets to achieve by the year 2033 compared to 2013 levels.

① Energy consumption rate

20% reduction② Renewable energy

20% adoption③ Sales-based GHG emissions

40% reduction④ CO₂ emissions of transport and commuting

30% reduction(3) Providing environmentally-harmonized products and technologies
The Japanese government has set a target for reducing greenhouse gas emissions by 80% of 2013

levels by the year 2050, and achieving this requires innovation in various industries and cross-industry
cooperation.

Based on the motto of Fine Materials for the Future the TODA KOGYO Group shall contributeto the environment with the power of cutting-edge raw materials.
<Targets to achieve by 2033>
We shall conduct a three-level assessment ( excellent (environmentally harmonized) , good (environmentally friendly) , andacceptable (standard level) ) of the products and technologies provided by the TODA KOGYO Group via an environmental-harmonization assessment sheet, and achieve a rating ofexcellent (environmentally harmonized)
for 100% of ourproducts and technologies by the year 2033.

ー5ー(4) Forming a recycling-oriented society
Based on our obligations as a business as stipulated in the Basic Act on Establishing a Sound Materi-al-Cycle Society, Act on the Promotion of Eﬀective Utilization of Resources, and Law Concerning thePromotion of Procurement of Eco-Friendly Goods and Services by the State and Other Entities,

weimplement the measures required in order to limit the raw materials, etc., that become waste, etc., due
to our business activities.

When raw materials, etc., become a recycled material in a certain business activity, we shall proac-tively implement the required measures for ensuring their reuse. For materials that are not recycled,
we shall bear responsibility for their appropriate disposal.

We shall strive to form a recycling-oriented society via eﬀorts such as the use of recycled items andcooperate with national and local measures regarding the formation of a recycling-oriented society.

In order to form a recycling-oriented society, the TODA KOGYO Group comprehensively promotes

initiatives for the 3Rs.

This involves the major themes indicated below.
①Reducing the use of rare metals②Recycling used rare metals③Reusing industrial waste (such as scrap)④Green procurement

We shall strive to contribute to the environment and reduce our environmental impact in all stages(from cradle to grave), such as procurement of raw materials, product development, manufacturing,transport, sales, recycling, and disposal.

Iron

Water Wood

Steel scrap

Plastic

CobaltNickelNickelZinc

Neodymium Samarium

BariumStrontium

Petroleum

NOx

Mineral resources

Raw materials
procurementLNG(liqueﬁed natural gas)

SOx

CO2

Emissions of chemical substances

Energy resources
Development

Neodymium Samarium

Coal

Manganese Aluminum

Energy resources

Renewable resources

IronCobalt

Mineral resources

Strontium

Mineral resources

Collection and recycling
Land use (Plant construction)

Environmental
management

Energy resources
Manufacturing

LNG(liqueﬁednatural gas)

Petroleum

Mineral resources
Emissions of chemicalsubstances

NOx

SOx

CO2

COD

SS

dust

Transport and sales

Energy resources

Introduction and removalof substances
Reformulation of soil

Renewable resources

ー6ーPetroleum

Petroleum
Plastic(5) Eﬀectively utilizing industrial waste
We shall reduce the industrial waste produced at our sites and continue to promote reuse.
Our concrete target values are indicated below.

①Reducing industrial waste by 30% of ﬁscal year 2013 levels by the year 2033
②Achieving a reuse rate of 100%

Contact address : CSR, Environment Group (Tel +81-827-57-6129)

ー7ー2021.6. vol.2