Sustainability Report 2020

Comfort
HealthSustainability

Contents

Message from the President...................................... 02
Aiming to Realize KAITEKI.......................................... 04
Initiatives to Help Achieve the SDGs........................... 08
Management Structure............................................... 22
Responsible Care Activities........................................ 38
Together with Stakeholders........................................ 66
About Mitsubishi Chemical......................................... 92

Editorial Policy
Mitsubishi Chemical (MCC) discloses information with theaim of reporting to as many stakeholders as possible on
its initiatives aimed at its vision, realizing KAITEKI.

aimed at realizing KAITEKI. The report also includes
information on our efforts to help achieve the Sustainable
Development Goals (SDGs).

The fiscal 2020 report is organized into three main sections, “Management Structure,” “Responsible Care
Activities” and “Together with Stakeholders,” which detailthe efforts that comprise the foundation of our activities

The content of this report is also available on the Sustainability section of MCC’s website.
https://www.m-chemical.co.jp/en

Reporting Period

Inquiries

Fiscal 2019 (April 2019 to March 2020)
The report also covers some activities undertaken in­fiscal 2020.

Mitsubishi Chemical Corporation
Corporate Planning Department,
KAITEKI Promotion Group
Palace Bldg., 1-1 Marunouchi 1-chome, Chiyoda-ku,
Tokyo 100-8251

Scope of the Report
The basic scope of reporting encompasses Mitsubishi­Chemical Corporation on a non-consolidated basis. However, certain sections contain reporting on a consolidated
basis that encompasses Group companies. The scope ofreporting, whether non-consolidated or consolidated, isindicated in each instance.

Referenced Guidelines•M inistry of the Environment
Environmental Reporting Guidelines 2018 inistry of the Environment•M
Environmental Accounting Guidelines 2005

Disclaimer
This report contains not only past and present facts about
the Mitsubishi Chemical Corporation Group, but also
forecasts related to social conditions, business plans,
policies and estimates of their outcomes. These forecasts
and estimates are assumptions or judgments based on
the information available at the time of their writing. As
such, actual future social conditions and business activity
outcomes may differ from the forecasts and estimatespresented in this report.

Publication
Published February 2021
Previous issue: December 2019
Next issue: December 2021

Mitsubishi Chemical   Sustainability Report 202001

Message from the President
As a core operating company of the
Mitsubishi Chemical Holdings Group,
Mitsubishi Chemical seeks to provide
solutions to environmental and social
issues and to contribute to the sustainable development of people, society
and the Earth through its businesses
built on a foundation of chemistry. In
this way, we aim to realize KAITEKI.1

Masayuki Waga
President & CEO

The Role of Chemistry amid the COVID-19 Pandemic
To begin, on behalf of the Mitsubishi Chemical (MCC) Group, I extend my deepest condolences to all those
who have lost loved ones to COVID-19 and wish those still fighting it a swift and full recovery. I also wish to
express my profound gratitude to the healthcare professionals working tirelessly on the front lines to treat
patients as well as the many others working to keep society running in this challenging time.
The negative impacts of the COVID-19 pandemic—from economic damage to the lifestyle changes we haveall been forced to make—have reached a previously unimaginable scale. At the same time, however, thepandemic has yielded discoveries that will be useful to our work going forward.
One such discovery concerns workstyles. While we had already been building systems and environments toenable remote work, the pandemic has helped us all see that our office workers really can do their jobs without being in the office. However, it is also true that some employees, such as those in manufacturing andR&D, must be physically present, putting them at risk of infection. Innovating our workplaces to maintainstable operations while ensuring employee safety is therefore an urgent task. To this end, we continue toadvance initiatives to enable remote operations by, for example, adopting digital transformation and robotics,
as well as initiatives to create workplaces that function with as few people as possible.
Another discovery has been a renewed awareness of the role of chemistry in preventing the spread of infectious disease. Many of the MCC Group’s businesses support the physical foundations of society, and theGroup manufactures numerous industrial materials that are crucial to the stability of everyday life. Since thestart of the pandemic, many ideas have emerged within the company for ways to modify and apply thesematerials in order to create products that will help prevent the spread of infection, and we have successfully
worked to quickly provide such products to society. These achievements were driven by the desire of ouremployees to contribute to society in the midst of this global pandemic using the power of chemistry.
1 KAITEKI: KAITEKI means “the sustainable well-being of people, society and our planet Earth.” It is an original concept of the Mitsubishi
Chemical Holdings Corporation Group that proposes a way forward in the sustainable development of society and the planet, in addition toserving as a guide for solving environmental and social issues.

Working to Realize KAITEKI
At the same time, in addition to combating infectious disease, it is our responsibility as a chemical company toprovide solutions to such global issues as climate change, natural resource and energy depletion, disparities
02

Mitsubishi Chemical   Sustainability Report 2020

in water and food resource distribution and problems caused by plastic waste. The chemical industry today
has been built by taking things produced in the natural world and, through man-made processes, using themto create products with added functionality at low cost and in high volume. While this basic approach will remain
the same, going forward, an additional focus on avoiding negative environmental impact will be indispensable.
To date, we have provided materials that are lighter than metals, such as plastics and carbon fiber, and thus
helped improve automobile fuel economy and reduce CO2 emissions, but such efforts cannot fully eliminate
emissions. To help reduce atmospheric CO2, a cause of climate change, MCC is taking part in ARPChem,2a NEDO 3 project aimed at realizing artificial photosynthesis in order to utilize CO2 as a source of carbon,
a valuable raw material for chemical products. Through this project, we are developing technologies to use
sunlight to manufacture chemical products from CO2 and water.
To address problems caused by plastic waste, we have for some time been developing a variety of recycling
technologies and biodegradable plastics made from renewable resources to reduce environmental burden as
well as working with CLOMA 4 and other external organizations to expand collaboration across value chains.
At present, however, most plastic is made from fossil fuels and, after use, either incinerated for heat recovery,
emitting CO2, or buried in landfills. In April 2020, MCC established the Circular Economy Department, dedicated to promoting the realization of a circular economy that effectively uses finite resources to simultaneously
realize sustainability and growth. Going beyond simply recycling industrial materials, we will contribute to therealization of a carbon-neutral society by controlling CO2 emissions over entire product life cycles. If used
incorrectly, chemistry can be destructive to the environment. However, I believe that, going forward, only
chemical companies can save our planet. MCC will put its full strength into confronting global-scale issues
head-on. This is how we will realize KAITEKI.
2 ARPChem: Japan Technological Research Association of Artificial Photosynthetic Chemical Process
3 NEDO: New Energy and Industrial Technology Development Organization
4 CLOMA: Clean Ocean Material Alliance

People—Our Most Important Resource for Realizing KAITEKI
Ensuring that every employee can exercise their abilities is the most important thing we can do to realize
KAITEKI. Even as workstyles change, our people remain our greatest resource. We are therefore implementing
a range of measures to create workplaces where diverse human resources can thrive. We have distilled these
efforts into 30 declarations under the title “Mitsubishi Chemical Has Decided” that we have published bothwithin the Group and externally. To accelerate these efforts, we have been implementing personnel system
reforms since October 2020. These reforms are focused on the three key themes of self-directed careerdevelopment; transparent working conditions and compensation structures (in line with individuals’ duties andperformance); and promoting and supporting workforce diversity. Through these changes, we aim to empower all employees to take up new challenges and demonstrate creativity. Even as the external environment andworkstyles change, if each employee exercises their abilities to the fullest in the pursuit of the realization of
KAITEKI, we will overcome the present challenging circumstances.

To Our Stakeholders
On top of ongoing global-scale environmental problems, society now confronts the grave threat of infectious
disease. At the same time, social issues, including human rights issues, are growing increasingly pressing.
Resolving such issues and, beyond that, realizing KAITEKI, will require working in harmony with stakeholders.
MCC will marshal its full strength to contribute to the realization of KAITEKI through its businesses, which arebuilt on a foundation of chemistry. We ask for your continued understanding and support.

Mitsubishi Chemical   Sustainability Report 2020

03

Aiming to Realize KAITEKI

As a core operating company of the Mitsubishi Chemical Holdings (MCHC) Group, Mitsubishi Chemical (MCC)
shares the MCHC Group’s mission, vision and core values, working to realize KAITEKI by providing solutions
to environmental and social issues and contributing to the sustainable development of people, society andthe Earth.

MissionWe create innovative solutions globally based on ourcore values of Sustainability, Health and Comfort,
striving for the well-being of people, society and our planet Earth.

VisionRealizing KAITEKI

Value

Sustainability, Health, Comfort

MCC is working to address the following specific environmental and social issues.
• Efficient use of resources and energy• Climate change (reducing CO2)
• Securing clean water resources• Food and agriculture problems• Health maintenance and disease treatment• Developing a smart society

What is KAITEKI?
Humanity has advanced to where it is today as a result of diverse economic activities as well as scientific andtechnological progress. At the same time, however, we have upset the natural balance of the global­environment and are now confronted with complex problems ranging from climate change and natural­resource and energy depletion to the uneven distribution of food and water. In addition to addressing these
global issues, corporations are being asked by society to contribute to the fields of healthcare and medicine
and to explore ways to improve convenience and advance technology while coexisting harmoniously withthe planet.
KAITEKI refers to “the sustainable well-being of people, society and our planet Earth.” An original conceptcoined by the MCHC Group, KAITEKI points to a way forward in the sustainable development of society
and the planet in addition to serving as a guide for solving environmental and social issues.
MCC shares the vision of realizing KAITEKI with MCHC and, building on a foundation of chemistry, provides
solutions to environmental and social issues through businesses related to performance products and­industrial materials. In addition, MCC aims to more broadly contribute to the sustainable development ofpeople, society and the Earth.
To advance corporate activities under the vision of realizing KAITEKI, we must earn the trust of stakeholders,
and to do that, we must work in harmony with our stakeholders. As we advance our corporate activities,
we will share our goals and the challenges we face with our stakeholders through dialogue and disclosure.
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Mitsubishi Chemical   Sustainability Report 2020

KAITEKI Management
In line with KAITEKI, the MCHC Group seeks to advance corporate activities aimed at solving environmental
and social problems. To do so, however, conventional value criteria and management methods are not­sufficient.
We have therefore created our own management method, which we named KAITEKI Management, and put it
into practice. This method is based on three management axes: Management of Economics, which aims toincrease economic value by focusing on capital efficiency, Management of Technology, which aims to foster
innovation that leads to higher economic and social value, and Management of Sustainability, which aims toenhance social value through improvements in sustainability. The MCHC Group evaluates and implements
corporate activities based on these axes, its mission and its core values, always informed by an awareness ofshifting trends and opportunities. We refer to the corporate value constituted by these three axes as KAITEKI
Value. By enhancing said value, we get closer to realizing KAITEKI while improving the Group’s sustainability.
As an operating company, Mitsubishi Chemical also practices KAITEKI Management, implementing PDCA
cycles using quantitative scoring on each of the three axes as it strives to increase corporate value, i.e.,
KAITEKI Value.

The Mitsubishi Chemical Holdings Group’s KAITEKI Management

Mitsubishi Chemical   Sustainability Report 202005

Aiming to Realize KAITEKI

Materiality Assessment

Mitsubishi Chemical Holdings (MCHC) conducts materiality assessments to identify important management
issues (materiality) and further enhance KAITEKI Value. While referring to processes outlined in internationalsustainability guidelines and incorporating the viewpoints of stakeholders, MCHC identifies and prioritizes
important management issues that it needs to work toward resolving to realize KAITEKI. MCHC has reviewed
its materiality assessments in light of the management strategies and corporate activities for APTSIS 20, themedium-term management plan that ends in fiscal 2020. Mitsubishi Chemical, too, is implementing activities
based on the results of the MCHC Group’s materiality assessments.
Materiality Matrix

Material Issues Related to
the Global Environment

Material Issues
Related to Social Systems

Key management issues that
the MCHC Group should address throughits corporate activities, innovation,and provision of products and services
with the aim of achieving the sustainable
well-being of our planet Earth

Key management issues that
the MCHC Group should address throughits corporate activities, innovation,and provision of products and services
in the aim of creating the sustainable
well-being of society

PROCESS 1

Material Issues
Related to People (the company
and its organization)
Key management issues that
the MCHC Group should address
in its internal operations and social
relations as a corporate groupaiming to realize KAITEKI

Most Important Key Management Issues
Related to the MCHC Group’s Existence

Set issues to beresearched and analyzed

Extremely HighAs a starting point, ordered corporate
activities under APTSIS 20 by analyzing
macro trends. Reviewed material issues
identified in the previous assessment
and added new issues.

PROCESS 2

Compliance, Process Safety,
Corporate Governance

Energy and resources
Water

Climate change

Assess issues from theviewpoint of stakeholders

Food and agriculture

Human resources
development and training

Ordered and quantitatively assessed theimportance of the identified issues basedon public sustainability data, questionnaires,and interviews with experts.

Diversity and inclusion

Occupational healthand safety
Product responsibility

PROCESS 4

Health and wellness

Very HighMCHC management identified relevantmaterial issues for management­strategies, policies and activities under
APTSIS 20 and prioritized them (threehighest priority issues related to the
MCHC Group’s existence and 21 material
issues to be addressed).

Importance for Stakeholders

PROCESS 3
Identify and prioritize material issues
the MCHC Group needs to address

Medical care
CSR in supply chain

Contribution
to communities
Human rights awarenessInformation security
and privacy

Create the materiality matrix
Created a materiality matrix based on theimportance (the magnitude of effect) for
stakeholders and importance for the
MCHC Group as the two axes.

Biodiversity

PROCESS 5

Fulfilled living

Stakeholder­engagement

Initiative and leadershipSocial infrastructure

Company approval procedures

Informationand communication
technology

High

Discussed and approved the process formateriality assessment and the materiality
matrix in the MCHC Management
Committee (currently the Corporate
Executive Officers Committee) andthe Board of Directors.

Smart society

High

Very High
Importance for the MCHC Group06

Mitsubishi Chemical   Sustainability Report 2020

Extremely HighMOS Indices

As part of its efforts to promote KAITEKI Management, Mitsubishi Chemical Holdings (MCHC) has created the
MOS (Management of Sustainability) Indices to gauge its contribution to people, society and the Earth. MCHC
uses these indices to evaluate progress made with regard to MOS, one of its management axes, which aims
to enhance social value through improvements in sustainability. The MCHC Group has revised the MOS
Indices and the ways it is using them in line with updates to its materiality assessments and the formulation of
the medium-term management plan. The Group has been applying the new MOS Indices since fiscal 2016.
As an operating company, Mitsubishi Chemical also implements and evaluates management aimed at improving sustainability based on the new MOS Indices.

Index that needs to be achievedContribute to reducing environmental
impact (S-1)

Achieve zero occurrences of serious accidents
and compliance violations
Reduce burden on the atmospheric environment
Reduce burden on the water environment
Reduce burden on the soil environment

Efficient use of resources and energy(S-2)
S Index

Promote activities to conserve energy
Convert to resource-saving and reusable materials
Promote use of renewable energy

Contribute to the ­sustainability ofthe ­environment and resources
through products and services (S-3)

Provide products and services that contribute to­reducing GHG emissions
Provide products and services that help solve water
resource problems
Provide products and services that help solve
food problems

H IndexContribute to medical treatment (H-1)

Pharmaceuticals provision

Contribute to the ­prevention andearly detection of diseases (H-2)

Provide vaccines

Contribute to achieving healthy andhygienic lives through products andservices (H-3)

Provide products for the health field
Provide products for the sanitation field
Provide products for the medical field

Endeavor to earn greater recognitionof corporate trust from society (C-1)

Improve awareness of compliancePrevent accidents and injuries
Initiatives to provide products and services trusted
by society

C Index

Promote communication and work inconcert with stakeholders (C-2)

Promote communication with business partners
Improve evaluation by stakeholders
Build a dynamic and cooperative organization

Contribute to achieving a more
comfortable society and better
lifestyle (C-3)

Provide products and services that contribute to ­a comfortable society and better lifestyles

Mitsubishi Chemical   Sustainability Report 202007

Initiatives to Help Achieve the SDGs

SDGs and Realizing KAITEKI
The Sustainable Development Goals (SDGs) are a set of development goals for international society as awhole to pursue from 2016 to 2030 that were adopted as part of a resolution titled “Transforming our world:the 2030 Agenda for Sustainable Development” at the UN Sustainable Development Summit in September
2015. The SDGs comprise 17 goals and 169 targets for realizing a sustainable world. Governments and civilsociety, as well as the private sector, including corporations, are expected to utilize their resources and coordinate to help achieve the SDGs.
In accordance with its vision of realizing KAITEKI, the sustainable well-being of people, society and our planet
Earth, the Mitsubishi Chemical Holdings (MCHC) Group adopted improving sustainability as one of its management axes in 2011. We aim to not only help solve environmental and social issues but contribute to thesustainable development of society and the planet. As such, we believe that many aspects of our vision ofrealizing KAITEKI parallel the SDGs.
Furthermore, MCHC has laid out how the SDGs relate to its important management issues (materiality) andMOS (Management of Sustainability) Indices—which it uses as key performance indicators to enhance sustainability—and has linked these issues and indices with SDG efforts.

Mitsubishi Chemical’s Initiatives
As a member of the MCHC Group, Mitsubishi Chemical (MCC) has made realizing KAITEKI its vision anddeclared that it will seek to address societal issues by creating new value and providing said value to customers as solutions, thereby sustainably growing in concert with society. As a result, many of our initiatives,
including the products and services we provide, contribute to the realization of the SDGs.
The MCC Sustainability Report 2020 features the following four items, chosen as representative examples of
MCC’s wide-ranging initiatives that contribute to realizing KAITEKI and the SDGs.

08

KAITEKI Health and Productivity Management—“Mitsubishi Chemical Has Decided”

SDG 8:
Promote sustained, inclusive and­sustainable economic growth, full andproductive employment and decent work
for all

Personnel System Reforms for
a Time of Rapid Change

SDG 8:
Promote sustained, inclusive and­sustainable economic growth, full andproductive employment and decent work
for allResponding to the COVID-19 Pandemic:
Social Contribution through Diverse Products
and Technologies

SDG 3:
Ensure healthy lives and promote
well-being for all at all ages

Building a Circular Economy with
the Aim of Sustainable Growth

SDG 13:
Take urgent action to combat climatechange and its impacts

Mitsubishi Chemical   Sustainability Report 2020

N MCC’s Initiatives to Date
In addition to the four initiatives featured in Sustainability Report 2020, our website also features the following
three ongoing initiatives.

Plant-Derived, Biodegradable Plastic BioPBS™

SDG 12:
Ensure sustainable consumption andproduction patterns

Structural Repair and Strengthening Carbon Fiber
Fabric Replark™

SDG 11:Make cities inclusive, safe, resilientand sustainable

Decentralized Water Treatment & Supply System

SDG 6:
Ensure availability and sustainable
management of water and sanitation
for all

Mitsubishi Chemical   Sustainability Report 202009

Initiatives to Help Achieve the SDGs

KAITEKI Health and Productivity Management—“Mitsubishi Chemical Has Decided”
Relevant SDG

SDG 8: Promote sustained, inclusive and sustainable economic growth, full and­productive employment and decent work for all“Mitsubishi Chemical Has Decided”
Under the banner of KAITEKI Health and Productivity Management, Mitsubishi Chemical (MCC) is focusing on
the pillars of health support and workstyle reforms as it strives to create workplaces where diverse humanresources can thrive. To this end, we are implementing a wide range of measures, which we have distilled into
30 declarations under the title “Mitsubishi Chemical Has Decided” and published both within the Group andexternally. These 30 declarations were formulated to reflect employees’ wishes for the kind of company theywant MCC to be.
By spreading awareness of “Mitsubishi Chemical Has Decided,” we aim to ensure that employees accurately
understand and support our various personnel measures. We hope that all employees will work toward thegoals of KAITEKI Health and Productivity Management.

Mitsubishi Chemical’s Vision for KAITEKI Health andProductivity Management
MCC’s approach to personnel measures is based on three steps, summarized as creating a “safe, secure andpositive workplace,” ensuring that we all “respect and accept each other” and cultivating a “win-win relationship between employees and the company” (see the diagram below). Through these three steps, we willachieve KAITEKI Health and Productivity Management. The 30 “Mitsubishi Chemical Has Decided” declarations spell out measures and targets to achieve this goal.

KAITEKI Health and Productivity Management“Mitsubishi Chemical Has Decided”
Operations & Job
Improve management capability

Self-fulfillment:
Win-win relationship between
employees and the company

Various HR Systems & Policy
Support for career development/Interview

Rationalize the way of working(Revise the frequency, accuracy andvolume of demands, etc.)

Respect and accept each other

Ability-based grade, Job-based grade/
Evaluation/Bonus, wage,
retirement benefit/Employment policy

Safe, secure and positive workplace

Support for child care and nursing care/
Holidays and leave/Working system/
Welfare and benefits

Increase work safety and stability(Improvement by automation, mechanization andingenuity of existing technologies, etc.)

Improve the workplace environment forsafer and more efficient work

10

Mitsubishi Chemical   Sustainability Report 2020

The 30 Declarations
The 30 declarations reflect employees’ wishes for the kind of company they want MCC to be and cover avariety of personnel-related measures, including eliminating second-hand smoke, improving bathrooms at
manufacturing sites, ensuring that 100% of eligible male employees take child care leave or use shortened
working hours for child care, and making sure that no employee is forced to retire to provide nursing care for afamily member. Notably, the declarations comprise not only existing goals and policies, but articulate futuretargets for the company to address through systems or other measures going forward. By formulating theseas declarations, MCC has made clear its stance and determination as it works to achieve KAITEKI Health andProductivity Management.
Declaration 1
Declaration 2
Declaration 3

We will promote the KAITEKI Health and Productivity Management.
For the sake of the maintenance and control of employees’ health, we will engage more actively andeffectively in the prevention and treatment of diseases, and achieving a balance with work.
We will position the organizational management and cultivation of subordinates based on the KAITEKI
Health and Productivity Management as priority issues of personnel with titles.

Declaration 4

We will eliminate harassment at workplaces.

Declaration 5

We will eliminate workers’ accidents.

Declaration 6

We will fully implement countermeasures against passive smoking at workplaces.

Declaration 7

Personnel assignments will be reviewed so that employees at the manufacturing sites will also be able
to take appropriate holidays and leave.

Declaration 8

We will improve the toilet environment at the manufacturing sites.

Declaration 9

Unpaid overtime work is not acceptable.

Declaration 10

Teleworking will be promoted.

Declaration 11“E-mailing on holidays” and “ordering the preparation of documents assuming work on holidays”
are prohibited.

Declaration 12

All employees will take a vacation of three consecutive days.

Declaration 13
Declaration 14

The head of an organization who lets subordinates take sufficient paid holidays will be evaluated andrecognized by adding the factor to the evaluation/recognition items.
We will actively provide support in cases where an employee wishes to accompany his/her transferredspouse or wishes to return to the parents’ home to provide nursing care.

Declaration 15

We will support employees who are rearing children from a long-term perspective.

Declaration 16

We will achieve a rate of 100% for male employees taking child care leave or shortened working hours.

Declaration 17

Shortened working hours can also be applied under other personal circumstances such as taking careof a sick family member.

Declaration 18

We will eliminate retirement due to providing nursing care for a family member.

Declaration 19
Declaration 20
Declaration 21
Declaration 22
Declaration 23
Declaration 24
Declaration 25

We will convert our workplace into a space in which diverse human resources can work together
actively and with enthusiasm regardless of gender, nationality, disabilities, sexual orientation, gender
identity, etc.
We will promote employment across the company by expanding the scope of work for people withdisabilities and improving the workplace environment.
Welcome Talent!
In addition to new graduates, we will aggressively conduct mid-career employment.
Welcome Back!
We welcome people coming back to our company with experience at other companies.
We will provide support (training, etc.) for all employees so that each one will be able to work comfortably after joining the company.
Appointment will be conducted considering duties, experience and contribution rather than age andyears of service.
The experience of taking child care leave and nursing care leave, etc. is valuable, and thus taking holidays will not be treated disadvantageously upon appointment, promotion and evaluation of employees.

Declaration 26

We will ensure that a career design interview is conducted to support each employee’s growth.

Declaration 27

We will ask what the own career and desired job is before appointing and cultivating an employee.

Declaration 28

We will support employees who have a positive attitude about learning.

Declaration 29

Train yourselves outside MCC!

Declaration 30

We will support employees who have a positive attitude about volunteers.
Mitsubishi Chemical   Sustainability Report 202011

Initiatives to Help Achieve the SDGs

KAITEKI Health and Productivity Management—“Mitsubishi Chemical Has Decided”
Spreading the Word and Employee Perspectives
We are spreading awareness of “Mitsubishi Chemical Has Decided” within the Group through an internal
portal site and a series of six videos. The videos focus on employees, featuring interviews with individuals who
are utilizing or implementing systems related to the declarations and measures. These include employees
using the remote work system and men who are taking child care leave. By directly offering the perspectivesof employees themselves, we hope to foster greater support and understanding.
To communicate externally, MCC President Masayuki Waga and employees discussed related measures andinitiatives with an outside expert for an article published on the online news site HuffPost.
N Employee Perspectives from the “Mitsubishi Chemical Has Decided” Videos

Declaration 5: We will eliminate workers’ accidents.
“After our lunch break, we do KAITEKI exercises to help
prevent occupational accidents due to falls. It helps makeeveryone more health-conscious, and it really seems that the
number of accidents has decreased.”

Declaration 16: We will achieve a rate of 100% formale employees taking child care leave or­shortened working hours.
“I didn’t take child care leave when my first child was born,
but I did for my second and third. Many people might thinkthat a man taking child care leave is something special, so I
think that having an environment where it’s completely normal
is important.”

Declaration 21: Welcome Talent! In addition to new
graduates, we will aggressively conduct mid-career
employment.
“At my previous job, the division of roles was very sharp, so
there was a tendency to stop at the limits of one’s own job
and go no further. At MCC, even a mid-career hire like me
has opportunities to be more proactive and take the lead,which I think I’ve been able to take advantage of.”12

Mitsubishi Chemical   Sustainability Report 2020

Personnel System Reforms for a Time of Rapid Change

Relevant SDG

SDG 8: Promote sustained, inclusive and sustainable economic growth,
full and productive employment and decent work for all

Reforms Born from the Urgent Need to Survive
Mitsubishi Chemical initiated new personnel system reforms in spring 2019. These reforms were spurred by
the urgent conviction that, given changes in the environment surrounding the company and changes in workers’ ways of thinking, both the company and its employees must change in order to survive. We began the
project to help contribute to the company’s growth by examining such questions as whether current personnel systems support initiatives that promote ambitious efforts and innovation on the part of employees, whether the employment we provide is appealing, and whether the mechanisms and environments we have in placeencourage the acceptance of diverse values.
Breaking away from previous systems, we are reexamining our basic goals to consider new systems. We
believe that implementing reforms based on the results of these considerations will help us get closer to ourideal for the company.

Personnel System Reforms to Help the Company and Employees Grow Together
The key themes for these reforms are self-directed career development; transparent working conditions andcompensation structures; and promoting and supporting workforce diversity.
In terms of self-directed career development, we will provide systems that support employees in developing
the careers they themselves want. In addition to increasing the frequency of meetings aimed at expanding
support for employee growth, we have introduced one-on-one meetings between employees and their supervisors (begun in July 2020). In addition, we have adopted open recruitment as the main means of employeetransfer and set up systems to give consideration to location when transferring employees (begun in October2020). Through dialogue between employees and their supervisors, we are promoting self-directed careerdevelopment based on mutual understanding of the kinds of careers that employees want to build and the
support they need.
To ensure transparent working conditions and compensation structures, we are establishing salary and bonus
systems that reflect employee duties and performance as well as market standards. Furthermore, until now,
employees received such benefits as allowances and stipends based on their various individual circumstances. We aim to remove considerations related to specific employee attributes, adopting instead a more uniform
approach to employee welfare and benefits (to be implemented in April 2021).
Finally, in promoting and supporting workforce diversity, we will extend the mandatory retirement age to 65 sothat employees can work longer despite their age. In coordination with self-directed career development
efforts, to enable supervisors to better support the ambitious efforts and growth of their subordinates, we arerevising existing frameworks in which supervisors unilaterally issue instructions. Instead, we seek to encourage
supervisors to take the time to listen to their employees and promote awareness that each individual has
different values and is deserving of mutual respect.

Mitsubishi Chemical   Sustainability Report 202013

Initiatives to Help Achieve the SDGs

Personnel System Reforms for a Time of Rapid Change
What should be done to realize KAITEKI

The Ideal Image of the Company• To realize KAITEKI and make the Company grow further by taking up new challenges
and demonstrating creativity• To that end, we want our employees to work in a cheerful and lively way• We want the Company to become an employer preferred and chosen by diverse talent

Make the Company and employees build relationships
in which they both choose and energize each otherand develop a corporate culture throughwhich they can grow together
Personnel System Reforms

Self-directed Career Development
Enhancing systems

Creating a supportive culture✓ Transfers via internal open recruitment✓ Work Location Continuation Program Preferred Work
Location Registration Program✓ More frequent meetings (mutual communication
between supervisors and employees)•

Transparent Working Conditions and Compensation Structures

Promoting and Supporting Workforce Diversity✓ Hiring and compensation not based on
employee attributes (age, gender, etc.)✓ Extension of mandatory retirement age to 65,with an eye to eliminating mandatory retirement✓ Work evaluations based on job descriptions✓ Welfare and benefits that meet diverse needs✓ Rank depending on work

✓ Expand support for employees balancing workand family responsibilities✓ Compensation commensurate withmarket levels

Fostering a Culture That Will Help Realize KAITEKI
We believe that, even in an environment changing as rapidly as the one we find ourselves in today, if each
employee takes up new challenges and demonstrates creativity, it will lead to corporate growth. Furthermore,
to become a company preferred and chosen by diverse talent, we must ensure that the Company and employees build relationships in which they both choose and energize each other and develop a corporate
culture through which they can grow together. These personnel system reforms will serve as the starting point
to achieve this. By improving our personnel systems, which form part of the foundation for working toward theshared goal of realizing KAITEKI, we aim to fully utilize the abilities and strengths of each individual within theirrespective field of specialization.
We expect to start seeing the results of these systems after they have begun to operate in earnest, once all
their components have gone into effect (April 2021). Furthermore, these reforms are a company-wide project.
Ensuring that all employees understand and fully utilize our personnel systems will require regular, effective
communication within departments, starting with that between supervisors and their employees, and between
departments. By doing so, we will bolster shared values of diversity and mutual respect and thereby develop aculture that will help realize KAITEKI.

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Mitsubishi Chemical   Sustainability Report 2020

Responding to the COVID-19 Pandemic: Social Contribution
through Diverse Products and Technologies
Relevant SDG

SDG 3: Ensure healthy lives and promote well-being for all at all ages

Seeing the strain that the COVID-19 (novel coronavirus) pandemic has put on the medical system, we at
Mitsubishi Chemical (MCC) asked ourselves how we could contribute using the industrial materials and technologies of the MCC Group. Leveraging ideas and networks from within the Group, and the diversity andversatility of its chemicals, we have provided the following products to society.

Contributing through Products
N Plastic Gowns
We developed plastic gowns based on instructions from the Ministryof Health, Labour and Welfare by adapting polyethylene rain ponchos. We added thumb holes at the ends of the sleeves to prevent
them from riding up as well as a perforated line down the back tomake it easy to take the gowns off, reducing the risk of contactbased infection. Furthermore, each gown weighs less than 100
grams, helping to reduce waste when used gowns are thrown away.
Plastic gown

N Face Shields
MCC created face shields by applying polyester sheet
manufacturing technologies used to produce foodpackaging trays along with curved creasing technologies developed for cosmetics case processing.
MCC was quick to donate and supply plastic
gowns and face shields to medical institutions,
helping to prevent the spread of infection in­hospitals and clinics.
Face shield

Glare reduction model

N Laundry Bags
Laundry bags made from our water-soluble film Hi-Selon™ allow users to wash
used sheets or clothing without touching them. Their use, mainly in hospitals,
helps prevent infection.

Laundry bag

Mitsubishi Chemical   Sustainability Report 202015

Initiatives to Help Achieve the SDGs

Responding to the COVID-19 Pandemic: Social Contribution
through Diverse Products and Technologies
N Products to Help Prevent Infection by Airborne Droplets
MCC offers SHINKOLITE™ continuous cast acrylic sheets and Altron™ flexible PVC film, which are used tomake partitions that help prevent the airborne spread of COVID-19 in daily life. Due to their excellent transparency and formability, these products are being used in a wide array of settings, such as at the registers andcounters of stores and restaurants; in offices; service counters at public service facilities; inside taxis, buses
and public transportation; andon TV filming sets.

Standing partition made of
SHINKOLITE™ cast acrylic sheet

Partition curtain made with Altron™
flexible PVC film

N HISHITANK™

HISHITANK™

HISHITANK™ is a water tank made of fiber-reinforced plastic developed primarily to provide clean drinking water and featuring outstanding performance in terms of seismic resistance, hygiene,
durability and workability. These tanks have been installed by the
Nippon Foundation at facilities built to combat the COVID-19 pandemic. They have also been installed at quarantine lodging facilities
built by the Hong Kong government, specifically for COVID-19
patients, to help ensure an adequate supply of hospital beds.

N Wasaouro™
Wasaouro™ is an antibacterial, freshness-maintaining agent, themain component of which is allyl mustard oil (allyl isothiocyanate,“AIT”), the main compound responsible for the spicy flavor of wasabi
and Chinese mustard. AIT-impregnated transparent films gradually
release AIT, providing an easy and safe way of maintaining food
freshness and quality by suppressing the growth of bacteria andmold. This product is well suited to maintaining the quality of products with short shelf lives, such as boxed lunches. We provided it
free of charge for a limited time to restaurants that began selling
boxed lunches while dine-in operations were closed to prevent the
spread of COVID-19.

Wasaouro™

N Repositionable Adhesive Posters Made withYUPO™ SUCTIONTACK™
MCC provided a limited supply of posters to raiseawareness of infection prevention practices free ofcharge to restaurants and companies working to prevent the spread of COVID-19. These posters were madewith YUPO™ SUCTIONTACK™, a repositionable adhesive sheet that uses micro-suction to cling to smoothsurfaces without blisters.
Repositionable adhesive posters made withYUPO™ SUCTIONTACK™

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Mitsubishi Chemical   Sustainability Report 2020

Main Products Helping Combat the Spread of COVID-19
Contribution

Company

Plastic gowns

J-Film Corporation

Face shields

J-Film Corporation

Laundry bags

TAISEI KAYAKU CO., Ltd.

Airborne transmission
prevention products

Partitions made from SHINKOLITE™
cast acrylic sheet

Mitsubishi Chemical Corporation

Partition curtains made with Altron™
flexible PVC film

DiaPlus Film Inc.

HISHITANK™

Mitsubishi Chemical Infratec Co., Ltd.

Wasaouro™

Mitsubishi-Chemical Foods Corp.

Repositionable adhesive posters made withYUPO™ SUCTIONTACK™

YUPO CORPORATIONOther Forms of Contribution
N IP Open Access Declaration Against COVID-19
MCC joined the IP Open Access Declaration Against COVID-19 in May 2020. The declaration is a pledge to
not assert any patent right, utility model right, design right or copyright against any development, manufacture, sale, or other related activity carried out for the purpose of stopping the spread of COVID-19. MCC
declared that, with regard to activities carried out for the sole purpose of stopping the spread of COVID-19, it
would temporarily suspend its assertion of patent rights, utility model rights, design rights and copyrights andrefrain from seeking compensation for their use.
N For Children
With school closures and efforts to stay home to prevent the
spread of infection, many children are spending more timethan usual at home. To make this time more enjoyable andhelp spark an interest in chemistry, since May 2020, MCC
has been soliciting chemistry experiment videos from its
employees and posting them to the MCC Group internal
portal site. Employees submitted more than 10 videos thatencourage children to think, experiment, and learn in a fun
way using household materials and provide explanations ofchemical phenomena. Beginning in July 2020, we publishedsome of these on YouTube.

Experient video

In addition, we donated 17,000 high-efficiency N95 face masks that MCC’s Shiga Plant had stockpiled to
medical facilities in Nagahama City.
Going forward, while working in coordination with government and industry organizations, the MCC Group willcontinue to solicit ideas covering a wide range of topics from employees, seeking to combine its diverse products
and technologies to proactively develop new products that will help combat the spread of COVID-19.

Mitsubishi Chemical   Sustainability Report 202017

Initiatives to Help Achieve the SDGs

Building a Circular Economy with the Aim of Sustainable Growth

Relevant SDG

SDG 13: Take urgent action to combat climate change and its impacts

Offering New Business Solutions by Promoting a Circular Economy
The world today faces numerous serious challenges, such as climate change and the various problems arisingfrom population growth. Chemical technology has tremendous potential to solve a wide range of social issues.
Mitsubishi Chemical (MCC), as a member of society, and as an integrated chemical company, has long faced
such issues head-on.
Particularly in recent years, demand from customers for sustainable products has been growing constantly inresponse to tightening environmental regulations in various countries. MCC aims to meet the demands ofsociety by transitioning from a traditional one-way linear economy of “take-make-waste” to a circular economy(CE) based on the effective use of resources, including recycling, and the use of renewable raw materials.
Below, we highlight some of the concrete steps we are taking, such as the establishment of the Circular
Economy Department (CE Department) and the implementation of initiatives to tackle the issues of waste
plastic and climate change.

Circular economy

Raw Materials

Raw M

Production

Recyc
ling

Linear economy

Waste

Sus
tai
n
duction
Pro
le
ab

Use

aterials

Su

s tai

n a ble U se

Offering Solutions from a Global Perspective
In April 2020, MCC established the CE Department to reinforce initiatives that address social issues related tosustainability. While we have been working to solve sustainability-related issues in each of our businesses, theCE Department will operate with a global perspective and scale across business domains to promote CE-related
solutions and develop them into businesses. The department will also actively promote collaborations withbusiness partners, academia, start-ups, and other partners.
The CE Department will handle CE-related issues on a company-wide basis. The activities of the department
will include identifying CE-related issues and formulating strategies at the company-wide level, promoting thedevelopment of solutions into businesses, and implementing sustainability management to reduce the environmental burden generated by our business activities, including greenhouse gases (GHGs) and wastewater
emissions. In addition, the department will gather and provide information on sustainability-related policy invarious countries and provide support for dialogue about CE with customers.

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Mitsubishi Chemical   Sustainability Report 2020

Advancing Partnerships to Build a Plastic Recycling Scheme
Recycling is extremely important to the transition from a linear economy to a circular economy. The MCC
Group is advancing partnerships with recycling companies that boast both waste plastic collection technologies
and networks.
Plastic recycling is broadly divided into two approaches: mechanical recycling, in which collected waste plastic
is melted down and reformed for reuse, and chemical recycling, in which it is decomposed into monomers orreverted to oil or gas for use as a raw material in chemical production. MCC is advancing partnerships witha variety of partners that include technology development based on both approaches. In doing so, we arereinforcing efforts to build a scheme for recycling waste plastics—which have conventionally been simply
incinerated or buried in landfills—into resources and raw materials.
Partnerships with Recycling Companies
Partner(Location)

Summary

Refinverse, Inc. (Tokyo)

Having started from a business that collected and transported constructionrelated waste for treatment, Refinverse has built an integrated system
extending from waste treatment to resin production, thereby supplying
a diverse range of recycled resources. Through this capital and businessalliance, the two companies will combine Refinverse’s know-how regarding
all aspects of industrial waste with MCC’s technologies and knowledge topromote the appropriate recycling and effective use of waste.

CFK 1 and cNXT 2 (Germany)

CFK has a network for collecting leftover materials generated during themolding of such intermediate materials as carbon fiber (CF) prepreg,
mainly from customers in mobility-related industries, as well as technologies to recycle these materials. cNXT then sells the resulting recycled
products. MCC acquired CFK through Group company Mitsubishi­Chemical Advanced Materials (MCAM; Head office: Switzerland). Goingforward, MCC will establish a circular chain extending from the manufacture of CF and CF composites to the collection and recycling of related
products in Europe.

Minger Group 3 (Switzerland)

The Minger Group boasts superior proprietary recycling technologies forsuch engineering plastics as PEEK, PVDF and nylon as well as a material
collection network that spans much of Europe. MCC acquired the Minger
Group through Group company MCAM. Going forward, MCC will establish
an integrated business model for engineering plastics, from manufacturing
to sales, machining, collection and reuse.

1 CFK: CFK Valley Stade Recycling GmbH & Co. KG
2 cNXT: carboNXT GmbH
3 Minger Group: Minger Kunststofftechnik AG and Minger Plastic AG

Mitsubishi Chemical   Sustainability Report 2020

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Initiatives to Help Achieve the SDGs

Reducing GHGs through an Artificial Photosynthesis Project
Artificial photosynthesis is a promising approach to reducing GHGs that uses CO2 emitted from power plants
and factories as a raw material for chemical products. Since 2012, MCC has participated as a member of
ARPChem,4 a NEDO 5 project aimed at realizing artificial photosynthesis, and is involved in the development ofcore technologies for all of the following three processes.

1. A photocatalyst splits water into gaseous hydrogen and oxygen; 2. the hydrogen is then safely separated
out of the mixed hydrogen and oxygen gas using a separation membrane; and 3. the hydrogen is used asa raw material together with CO2 recovered from the gas emissions of power plants or factories to produce
chemical products.
The project’s target for photocatalyst solar energy conversion efficiency has been set at 10%. In fiscal 2019,an efficiency of 7% was achieved in a laboratory setting. Outdoor demonstrations of the water splitting­systems began in fiscal 2020.
4 ARPChem: Japan Technological Research Association of Artificial Photosynthetic Chemical Process, comprising INPEX CORPORATION,
TOTO LTD., Japan Fine Ceramics Center, Fujifilm Corporation, Mitsui Chemicals, Inc., and MCC.
5 NEDO: New Energy and Industrial Technology Development Organization

Establishing a Long-term Vision for the Chemical Industry
MCC and the Center for Global Commons (CGC) at the University of Tokyo have launched an industry-­
academia partnership with the aim of formulating a long-term vision of the chemical industry’s approach tosustainability with an eye toward society in 2050.
To ensure the sustainability of global environmental systems essential to the development of humankind, CGC
aims to scientifically demonstrate pathways for the fundamental transformation of socio-economic systems
based on modelling and indices. In collaboration with a wide range of stakeholders, including private enterprises,
CGC aims to drive this fundamental transformation through international cooperation.
MCC plans to conduct joint research with CGC to identify the social needs (particularly in the areas of products, services and social systems) of 2050, as well as those along the way in 2030 and 2040. Given suchneeds, MCC plans to outline the role of the chemical industry over the long term.

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Mitsubishi Chemical   Sustainability Report 2020

Mitsubishi Chemical   Sustainability Report 202021

Management Structure

Basic Policy

As a member of the Mitsubishi Chemical Holdings (MCHC) Group, the Mitsubishi Chemical (MCC) Groupabides by MCHC’s basic Group management guidelines and shares specific Group management policies andstrategy determined by MCHC. The MCC Group also adheres to MCHC Group policies and rules to ensurethat it fulfills its corporate social responsibility in areas such as internal controls, risk management and­compliance and actively implements management initiatives to enhance corporate value as a core operatingcompany of the MCHC Group.

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Mitsubishi Chemical   Sustainability Report 2020

Basic Regulations

The Mitsubishi Chemical Group strives to ensure compliance based on the Mitsubishi Chemical HoldingsGroup Charter of Corporate Behavior, a common set of compliance regulations shared throughout the Group.

Mitsubishi Chemical Holdings Group Charter of Corporate Behavior
We define KAITEKI as “the sustainable well-being of people, society and our planet Earth”, and have “realizing
KAITEKI” as our vision. We will not stop at providing solutions to environmental and social problems, but also
aim to contribute to sustainability in both through our corporate activities.
To this end, we shall act based on the concept of MOS (Management of Sustainability) with sound ethics andgood common sense in every aspect of our corporate activities as outlined below, to ensure sustained­development as a corporate group that engenders society’s trust.
N Awareness and Responsibility
We shall contribute to the realization of KAITEKI through our business with a keen sense of corporate social
responsibility, based on the fundamental understanding that the foundation of our corporate activities issociety’s trust and confidence in us.
N Accountability and Transparency
We shall, recognizing the importance of accountability in corporate activities, preserve transparency in suchactivities, disclose information appropriately, and always maintain a stance of openness, both internally andexternally.
N Legal Compliance and Fairness, Equitability, and Integrity
We shall comply with laws and international standards and shall hold ourselves to the highest ethical conduct
at all times. In addition, we shall always adopt an attitude of fairness, equitability, and integrity towards­customers, business partners, shareholders, government agencies, local communities, and other stakeholders.
This attitude shall also apply to our dealings with each other.
N Valuing Stakeholders
We shall respect and communicate closely with all stakeholders including customers, suppliers, shareholders,business partners, government agencies, local communities, and employees, and consider the outcomes ofsuch communication in our corporate activities.
N Respecting Human Rights
We shall respect the dignity and rights of all people and shall not discriminate against people unfairly on thebasis of race, sex, religion or other protected status. We shall also expect our suppliers and other contractors
to refrain from any infringement of human dignity and rights or discriminatory practices.
N Employment and Labor
We shall not engage in any form of forced, compulsory, or child labor, and shall require our suppliers and othercontractors to adhere to the same standards. Mitsubishi Chemical Holdings Group managers at all levels shallrespect human diversity and create working environments where employees can exercise their abilities to theutmost in safe and healthy settings, in order to make optimal use of human resources. Managers shall build
sound relations with employees through close dialogue, and shall respect employees’ rights, including freedomof association and the right to collective bargaining.
N Environment and Safety
We shall strive to reduce environmental impact and protect the environment and ecosystems in our operationsin addition to supplying environmentally friendly products and services. Recognizing that the health and safetyof our employees and communities in which we do business form the foundation for the very existence of ourcompany and that we have a corporate social responsibility to assure the health and safety of others, we shallcontinue to ensure safe business activities.
Mitsubishi Chemical   Sustainability Report 202023

Management Structure

Basic Regulations
N Fair Business Practices
We shall conduct business fairly and sincerely, adhering to ethical principles and refraining from unfair tradepractices and any form of bribery or corruption, to contribute to sound social and economic development
through fair competition in the market. We shall refuse to work with any group, organization or individual
engaged in unlawful activities, and under no circumstances shall we have any relations with anti-social­influences.
N Customer Satisfaction
We shall constantly strive to satisfy our customers by keeping the promises made in contracts with them,doing our utmost to ensure the safety and quality of the products and services we supply, and engaging in
dialogue and R&D.
N Information Management
We shall, in the course of our corporate activities, maintain appropriate records and make reports as requiredby law and regulation. We shall manage information carefully to prevent leakage of confidential data relating tocustomers, business partners, or our own business.
N Science and Technology
We shall advance R&D by bringing together outstanding researchers from Japan and overseas, and contributeto the realization of KAITEKI through innovation. We shall recognize the importance of our own and others’
intellectual property rights and respect such rights.
N Community Involvement
We shall contribute broadly to society through our businesses. In addition, we shall respond to the desires
and expectations of local communities by enhancing our understanding of their cultures and customs andacting as a good corporate citizen.
N Shared Standards
Mitsubishi Chemical Holdings Group managers shall recognize their responsibility to embody the spirit of thischarter and shall ensure that employees are fully aware of its content. We shall expect our suppliers and otherbusiness partners to share all the standards set out in this charter, including but not limited to standards
relating to human rights, employment, and labor.

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Mitsubishi Chemical   Sustainability Report 2020

Corporate Governance

The top priorities for corporate governance of the Mitsubishi Chemical (MCC) Group are to ensure fast andefficient decision making and business execution, clarify management responsibilities, ensure compliance andstrengthen risk management.
The MCC Group’s basic corporate governance structure is illustrated below. The company has adopted an
executive officer system to separate management and executive functions. Furthermore, MCC has defined
the extent of the authority of such decision-making bodies as the Board of Directors and various management
positions in its internal rules. Through these and other measures, MCC ensures proper, efficient managerial
decision making and business execution.
Corporate Governance Structure of the Mitsubishi Chemical Group (as of June 22, 2020)
Shareholders’ Meeting
Appointment

Appointment

Appointment
Audit

Corporate auditors

Auditing
assistance

Audit

Audit

Audit assistants

Board of Directors(Members of the board)

Accounting auditor

Accounting
audit

Accounting
audit

President

Chief complianceofficer

Chief risk
management officer

Executive Management
Committee

Internal audit units
Coordination

Appointment & supervision

Executive officers

Internal auditing
Retain information
about executionof duties
Investigation

Ensure efficiencyof executionof duties

Ensure appropriatenessPromote andof corporate
ensure compliancegroup operations

Manage risk

Mitsubishi Chemical Group

Board of Directors
The Board of Directors meets once a month in principle. In accordance with the regulations of the Board of
Directors and other relevant rules, the board makes decisions on important managerial matters and basic
matters concerning Group management and provides oversight of the execution of duties by directors. The
six directors (four of whom concurrently serve as executive officers as of June 22, 2020) form a management
structure capable of quickly adapting to environmental changes. To further clarify the managerial responsibilities and role of each director, the term of office for a director is one year. Human resources judged to possess
the necessary skills and qualities to realize the Group’s corporate philosophy and fulfill its social responsibilities
are selected as candidates for director by the Board of Directors. Candidates are then elected by a resolutionof the Shareholders’ Meeting.

Executive Management Committee
The Executive Management Committee is an advisory body that assists the President in making decisions,deliberating important matters concerning business execution, such as the investment and financing activities
of MCC and the MCC Group. Particularly important managerial matters deliberated by the Executive­Management Committee are acted on only upon the resolution of the Board of Directors. The Executive
Management Committee meets twice a month in principle. The committee comprises the President, the chief
operating officers of the business domains, the supervising officers of the corporate function domains,
the presidents of the regional headquarters and the general manager of the Corporate Planning Department.
The members of the board and corporate auditors may also attend its meetings as needed.

Mitsubishi Chemical   Sustainability Report 202025

Management Structure

Corporate GovernanceCorporate Auditors
MCC has four corporate auditors to audit its activities (as of June 22, 2020). The corporate auditors attend
Board of Directors, various committee and other important meetings, receive reports from members of theboard and other relevant parties, investigate the status of the company’s business and property, and audit theexecution of duties by members of the board. MCC does not have a Board of Corporate Auditors, but voluntarily maintains a Corporate Auditors Liaison Committee to facilitate coordination and cooperation among thecorporate auditors. The Corporate Auditors Liaison Committee meets once a month in principle. At meetings,
the corporate auditors discuss audit plans and other important audit-related matters. Corporate auditors, theaccounting auditor and the Internal Audit Department work in close coordination, exchanging opinions on
their respective audit processes and results.

Committees
The company maintains a number of committees, including the Compliance Promotion Committee, Risk
Management Committee, Information Security Committee, Environmental and Safety Promotion Committee,and Human Rights and Diversity Development Committee. These committees refer or report important matters to the Board of Directors or the Executive Management Committee.

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Mitsubishi Chemical   Sustainability Report 2020

Internal Controls

Basic Policy
Based on the Basic Internal Control System Maintenance Policy established by the Board of Directors,­Mitsubishi Chemical (MCC) maintains an internal control system that encompasses MCC Group systems­related to enforcing compliance, risk management, ensuring efficacy and efficiency, and information archiving.
By doing so, MCC strives to ensure appropriate operations and enhance corporate value. The Board of
Directors receives reports on and verifies the maintenance and operational status of the internal control­system once a year, and MCC works to strengthen and improve the system as needed.

Improving Our Internal Control Systems
Based on the Mitsubishi Chemical Group Regulations on Promoting the Improvement of the Internal Control
System, established July 1, 2017, MCC is reinforcing governance, ensuring proper operations, and­establishing and improving related processes and operations to enhance the efficacy and efficiency of suchinitiatives. Together, these efforts constitute the foundation of internal control at MCC Group companies.
In fiscal 2019, in coordination with the regional headquarters, MCC supported the reinforcement of governance and the control of operational processes to strengthen internal control at Group companies. MCC willcontinue to build mechanisms that enable MCC Group companies to independently check the maintenanceand operational status of their internal control systems and implement improvements.

Mitsubishi Chemical   Sustainability Report 202027

Management Structure

Compliance

The Mitsubishi Chemical (MCC) Group regards compliance as a top priority in its corporate activities.
The MCC Group has in place a Compliance Promotion Program that comprises basic regulations concerningcompliance, a structure for compliance promotion, education and training programs, auditing and monitoring
systems, and a consultation and reporting hotline. Based on this program, the MCC Group works to ensure
appropriate and precise operations and management.

Compliance Promotion Structure and the CCO
The Board of Directors appoints the Mitsubishi Chemical Group’s chief compliance officer (CCO).
The CCO has the authority to direct and supervise the MCC business domains and Group companies inmatters related to compliance. The CCO also chairs the Compliance Promotion Committee and reports to
the Board of Directors and CCO of Mitsubishi Chemical Holdings (MCHC) on the status of compliance andimportant issues.
The Compliance Promotion Committee deliberates on such matters as basic policy concerning the development and operation of the MCC Group's Compliance Promotion Program, the performance of the program
and responses to compliance violations. The committee also advises the CCO as necessary.
Furthermore, our designated domain compliance officers, compliance promotion leaders and compliancepromoters in each domain coordinate to promote compliance in the course of daily operations.
Compliance Promotion Structure of the Mitsubishi Chemical Group
Board of Directors

MCHC
Board of Directors
Appointment& supervision

MCHC
Chief Compliance
Officer(CCO)

Reporting
Guidance& requests

Corporate auditors

Appointment

Instruction & supervision

Chiefcompliance officer(CCO)

ReportingBusiness domains

Reporting
Advising

Presiding
ReportingCompliance Promotion
Committee

Guidance

Chair: CCO; Secretariat:
Internal Control Dept.
Establishment(as needed)

Working groups,
subcommittees, etc.

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Mitsubishi Chemical   Sustainability Report 2020

Reporting

Domaincomplianceofficer
Instruction
Reporting& supervisionGroup
companies
PresidingAttendance

MCC Group
Compliance
Liaison Council

Instruction& supervision

ReportingCompliancepromotion
leader

Guidance Reporting& support

Subsidiaries
of Group
companies

Instruction& supervision

CompliancepromoterCompliance Regulations
The MCC Group maintains and operates according to internal compliance-related regulations, including
regulations concerning the compliance promotion structure, hotlines and responses to compliance violations.

Educational, Training and Awareness-Raising Activities
MCC conducts a variety of educational, training and awareness-raising activities in Japan and overseas on
an ongoing basis in order to further instill compliance awareness.
Beginning in fiscal 2018 in Japan, building on the training for compliance promotion leaders and compliancepromoters implemented in fiscal 2017, we held group training sessions aimed at increasing complianceawareness for all non-line managers (employees who are of management rank but who do not have any
subordinates), including those of some Group companies, as part of a two-year plan. The approximately
2,700 non-line managers targeted by this training constitute an important tier of the Group’s workforce interms of compliance penetration. In fiscal 2019, the second year of the two-year plan, we implemented 21
training sessions at nine locations for 1,279 employees. We also provide e-learning for all members of theGroup, seeking to enhance each and every employee’s compliance awareness. Furthermore, we are increasing awareness and knowledge of such important compliance risks as information security through suchmeans as targeted email attack response drills.
Overseas, we carry out training and awareness-raising tailored to the circumstances of each region. We arealso bolstering initiatives through such means as local training and e-learning. In fiscal 2019, we held a meeting of the Compliance Liaison Council, bringing together 49 domain compliance officers and compliancepromoters from Group companies in Singapore, Thailand, Indonesia, India, Vietnam and the Philippines toshare information about compliance.

Mitsubishi Chemical   Sustainability Report 202029

Management Structure

ComplianceFair Business Practices
N Mitsubishi Chemical Holdings Group Global Anti-Bribery Policy
MCHC has established the Mitsubishi Chemical Holdings Group Global Anti-Bribery Policy, aiming to prevent
bribery on the part of its operating companies and their executives and thus ensure compliance with anti-bribery
laws and regulations in all the countries where it operates, prevent corruption, and help establish and maintain
fair business practices.
The policy prohibits bribes to public officials and includes provisions concerning accounting records,­compliance structures and penalties for violations.
Within the MCC Group, the supervisors of domestic sales employees hold interviews with said employees toconfirm their actions with regard to risks related to sales, including those surrounding anti-trust legislation,bribery and the Subcontractor Act.

Monitoring and Reporting Systems
N Compliance Hotline
The MCC Group has established a hotline through which employees can contact the Internal Control­Department, an external lawyer or a hotline service company to seek advice or report possible complianceviolations. The Group strives to ensure that the hotline is operated properly and employees are aware of it.
N Global Compliance Perception Surveys
The MCC Group uses employee perception surveys to monitor the degree of compliance awareness among
employees. In fiscal 2019, these surveys were returned by 32,700 employees of domestic Group companies(or 94.4% of such employees) and 4,735 employees of Group companies in Asia (or 83.6% of such employees).
Survey results are analyzed in detail and used to provide feedback to related officers. Challenges and­problems identified as a result of said analysis are reflected in compliance-related measures and training.
N Response to Compliance Violations
In the event of a compliance violation, the domain compliance officer and the departments overseeing compliance work together to implement an appropriate initial response that rectifies or otherwise deals with thesituation. They then investigate the cause of the violation and implement recurrence countermeasures. Any
employee who has committed a compliance violation is dealt with as necessary, possibly with disciplinary
action, in accordance with the Employee Work Regulations or other relevant regulations of the Group­company to which the employee belongs.

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Mitsubishi Chemical   Sustainability Report 2020

Risk Management

The Mitsubishi Chemical (MCC) Group has established basic regulations for risk management and implements
risk management activities related to the execution of its businesses and operations. Specifically, the Group’s
policy is to accurately identify and evaluate risks that could significantly impact the Group, deal with such risks
appropriately, and minimize the impact of such risks on its businesses and society, including the Group’s
stakeholders.

Risk Management Structure
MCC has set up a Group-wide risk management system headed by its President, who serves as the Group’s
Chief Risk Management Officer, and strives to ensure that this system operates appropriately and smoothly.
The supervising officers of the business domains and corporate function domains serve as domain risk­management officers charged with maintaining, operating, directing and overseeing the risk management
systems within their respective units, including those of MCC Group companies. Meanwhile, the Risk
­Management Committee, established to support the Chief Risk Management Officer as a supplementary­decision-making organ, regularly confirms the operational status of the MCC Group’s risk management­system and deliberates on important matters related to the development and operation of said system, basic
policy and plans regarding risk management activities, and management objectives and countermeasuresrelated to serious risks.
The internal audit units periodically audit the operational status of the risk management system and reporttheir findings to the MCC Board of Directors and the Mitsubishi Chemical Holdings Corporation Chief Risk
Management Officer.

Risk Management Structure of the Mitsubishi Chemical Group
Mitsubishi Chemical Holdings Corporation
Chief Risk Management Officer
Board of Directors
Risk Management Committee

Chairperson(Chief Risk Management Officer)
Vice-chairperson
Secretariat

Domain risk management
officer

Domain risk management
officer

Domain risk management
officer

Risk management
promoter

Risk management
promoter

Risk management
promoterBusiness
Departments

Departments

GroupcompaniesGroup
companies

Site
Site
Site

Mitsubishi Chemical   Sustainability Report 202031

Management Structure

Risk Management

Initiatives
Since the formation of the new MCC, in addition to the risks individually identified and addressed by eachdepartment, management has designated the seven risks listed below as risks to be dealt with on a companywide basis and is working to reinforce risk management efforts accordingly.
(1) Process safety and stable operations(2) Compliance promotion(3) Governance and global management(4) Crisis management and business continuity(5) Information security(6) Management of working hours(7) Climate change issues
In fiscal 2019, in light of the recent ramping up of international trade sanctions, MCC added an eighth risk,“Trade.” Including this new item, approximately 5,300 specific risks were identified across the Group. We
prioritize these risks based on severity and likelihood of actualization and are formulating and implementing
measures to reduce said risks.
In addition, in fiscal 2020, we are reflecting the significant changes in workstyles and work itself caused by the
COVID-19 pandemic in risk management.

Business Continuity Plans
The MCC Group formulates business continuity plans (BCPs) to minimize the impact suffered by its customers
and business partners in the unlikely event of a natural disaster or a major accident.
Specifically, when responding to such crises as a major earthquake in the Nankai Trough or a pandemic,
MCC gives greatest priority to assuring the safety of human life, including the lives of employees, their families,
business partners and local residents. We have also prepared manuals that lay out steps to be taken after
such safety is assured, namely, how to maintain or quickly resume the supply of key products essential tosociety and thus fulfill our product supply obligations to our customers.
In addition, we maintain arrangements that will ensure that operations important to the whole Group can becontinued elsewhere should the head office be incapacitated by a major earthquake striking the Tokyo metropolitan area.

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Mitsubishi Chemical   Sustainability Report 2020

Intellectual Property

Basic Policy
N Respecting Intellectual Property Rights
The so-called intellectual property age has been under way for some time now, and in recent years, not only
conventional patents, know-how, and trademarks, but also data itself, as exemplified by big data, has cometo be recognized as having intrinsic value and an important form of intellectual property. Mitsubishi Chemical(MCC) regards all these forms of intellectual property as important management assets and strives to effectively utilize them to increase corporate value. Accordingly, MCC legally protects these important management
assets by formalizing its intellectual property rights and takes appropriate measures when its own intellectual
property rights are infringed upon by other parties. At the same time, the company endeavors to respect thevalid intellectual property rights of other parties, maintaining an oversight framework and carrying out carefulresearch, oversight and countermeasures to ensure that it does not infringe upon such rights.
N Intellectual Property Strategy
MCC’s intellectual property strategy is to create and utilize intellectual property as necessary to improve andmaintain the intellectual property environment of each of its businesses.
Reflecting the increasing globalization of MCC’s businesses, the company is working to create and utilize
intellectual property from a global perspective that includes overseas locations.
Furthermore, to leverage the tide of digital transformation seen in recent years, we are proactively working toincrease the efficiency and sophistication of our operations using digital technologies.
N Intellectual Property Coordination
MCC actively promotes intellectual property coordination across the MCC Group as a whole. Sharing their intellectual property enables the operating companies to accelerate business and technological development. We also
engage in collaboration with third parties to guard against issues related to utilizing their intellectual property.
In line with this basic policy, MCC advances unified intellectual property activities chiefly though the Intellectual
Property Department and in coordination with the business and R&D departments.

Intellectual Property Training
MCC implements intellectual property training aimed at making practical use of intellectual property—a management resource—in its businesses and management. In addition to on-the-job training, we operatea ­rank-specific program covering everyone from new recruits to the leadership class of the business, R&D,
and other departments. With an emphasis on ensuring that employees utilize the knowledge and skills gained
through such training in their work, we implement practical education for business and R&D departments that
goes beyond just legal knowledge.

Mitsubishi Chemical   Sustainability Report 202033

Management StructureIntellectual Property

Human Resource Development and Recruiting of Intellectual Property­Department Staff
MCC believes that its Intellectual Property Department should be staffed by human resources who can­advance intellectual property activities that contribute to MCC’s businesses alongside business and R&D
departments and who can contribute to the company’s businesses and management from the perspective ofintellectual property. Accordingly, we are developing human resources who have practical work execution,planning/strategy and organizational management abilities. Recognizing the importance of diverse experience,
our human resource development includes overseas training using internal systems, various forms of external
training, and, as needed, work experience in areas other than intellectual property. In these ways, we aim todevelop specialized intellectual property-related skills as well as the general business skills necessary fora business person.
To develop the kind of human resources described above, we assign new graduate hires to the Intellectual
Property Department on an ongoing basis and proactively hire mid-career individuals with a view to finding
diverse talent.

Code of Research Conduct
MCC has established the Code of Research Conduct to ensure that its researchers’ conduct, in all R&D
activities, is always exemplary.
To ensure that research is carried out responsibly, the Code of Research Conduct includes provisions regarding the proposal of research topics and execution of related research, management of data, presentation of
results, communication between researchers and procedures for addressing compliance problems.
MCC utilizes a variety of opportunities to implement education related to the Mitsubishi Chemical HoldingsGroup Charter of Corporate Behavior (the Mitsubishi Chemical Holdings (MCHC) Group’s basic regulations
concerning compliance) and the Code of Research Conduct to ensure that researchers act with an awarenessof such rules as they carry out their duties.
Reflecting these efforts, MCC’s researchers bring a strong sense of ethics, sincerity and humility to their R&D
work, seeking to live up to the trust and expectations of society by respecting both our own intellectual property and that of other parties while contributing to the growth and development of MCC and the MCHC Group
as a whole on an ongoing basis.

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Mitsubishi Chemical   Sustainability Report 2020

Information Security

Basic Policy
The Mitsubishi Chemical (MCC) Group undertakes information management in line with the Mitsubishi­Chemical Group Information Security Policy. Under this policy, the MCC Group strives to protect its­information assets and, in the event of an information security incident, acts to minimize the impact on its
businesses and quickly resume any interrupted operations. Furthermore, the MCC Group works to raise
employee a­ wareness of the importance of protecting information assets while striving to maintain and improvethe efficacy of its information security as part of efforts to prevent business interruptions and the loss of­society’s trust due to such problems as information leaks or falsification.

Main Activities
The MCC Group maintains, manages and works to enhance all aspects of information security, including
documents and data, information systems and plant controls, on a Group-wide basis under the leadership ofthe Information Security Committee, established per the Mitsubishi Chemical Group Information Security Policy.
In addition, to counter increasingly sophisticated cyber attacks, the Mitsubishi Chemical Holdings Group
Information System Security Subcommittee enforces a PDCA cycle for the entire Mitsubishi Chemical­Holdings Group, working to maintain and strengthen information security.

Defensive Measures against Threats to Computer Networks
The MCC Group has both technological and management measures in place to ensure network security.
Technological measures include entrance safeguards, such as e-mail filters, exit safeguards, such as systems
that monitor access to the Internet from our internal network, and other security measures that are continually
reinforced through the adoption of the latest security system technologies. In terms of management measures,
the Group regularly urges caution against suspicious e-mails and conducts training drills.

Measures to Prevent Leaks of Personal Informationand the Confidential Information of Customers and Third Parties
MCC has established its own Rules on Handling Personal Information and strives to ensure strict compliancewith the Act on Protection of Personal Information, the Act on the Use of Numbers to Identify a Specific
Individual in Administrative Procedures and other relevant laws, regulations and guidelines as well as the E.U.
General Data Protection Regulation (GDPR) promulgated in May 2018.
As part of measures to prevent information leaks, MCC is taking such steps as strengthening the­management of electromagnetic recording media and restricting access to the Internet.

Internal Education and Training
The MCC Group regularly conducts awareness-raising and training events for employees to promote strict
information management. Moreover, information security training via e-learning is implemented every year, andinformation security training education is built into our internal training curriculum.

Mitsubishi Chemical   Sustainability Report 202035

Management StructureInternal Audits

The Internal Audit Department, which is independent of business and administrative operations, conducts
internal audits to assess the effectiveness of internal controls at Mitsubishi Chemical Corporation and its
Group companies, monitoring such factors as the adequacy and the efficiency of each organization’s­governance, risk management and operating processes. The Internal Audit Department shares the resultsof such internal audits with the relevant organizations, working in close collaboration with them to improve
internal controls.

36

Mitsubishi Chemical   Sustainability Report 2020

Mitsubishi Chemical   Sustainability Report 202037

Responsible Care Activities

Basic Policy

Mitsubishi Chemical carries out Responsible Care (RC) activities,1 which are voluntary activities in the chemicalindustry for ensuring environmental conservation, health and safety. In line with the Mitsubishi Chemical
Holdings Group Charter of Corporate Behavior and with the aim of realizing KAITEKI, we implement RC
activities based on the five pillars of process safety and disaster prevention, occupational safety and health,environmental conservation, chemical and product safety, and logistics safety.
1 Responsible care activities: Voluntary activities undertaken by companies that handle chemical substances to protect the environment,
health and safety across all related processes, from the development of such substances to their manufacturing, distribution, use, final
consumption and disposal. These activities also encompass the publishing of the results of such efforts and dialogue and communication
with society.

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Mitsubishi Chemical   Sustainability Report 2020

Implementation Framework

Mitsubishi Chemical (MCC) has designated departments responsible for promoting each of the five pillars of
its Responsible Care (RC) activities. These departments work together to carry out RC activities. The­designated departments draft annual RC action plans that are then deliberated by the Environmental and
Safety Promotion Committee, comprising the director in charge of RC, representatives of the business­domains and plant general managers, before being discussed by the Executive Management Committee andthen going to the President for final approval. The director quickly informs employees of the approved plansand orders the creation of action plans for plants and business domains based on said plans. The departments responsible for implementing RC activities monitor the action plans of the plants and business domains
and their implementation status and provide support and instruction aimed at improvement, thereby helping
to improve the RC activities of the MCC Group as a whole.

RC activity pillar

Implementation departments

Process safety and disaster prevention
Occupational safety and health

Environment & Safety Dept.

Environmental conservation
Chemical and product safety

Product Stewardship Dept.
Quality Assurance Dept.

Logistics safety

Logistics Dept.

Mitsubishi Chemical   Sustainability Report 202039

Responsible Care Activities

Environment and Safety

Basic Policy
Mitsubishi Chemical (MCC) has established the Environment and Safety Principles as well as Policies Related
to Environment and Safety, and it implements activities related to process safety and disaster prevention,
occupational safety and health, and environmental conservation.

Environment and Safety Principles
1. ‌Safety lies at the foundation of the company’s very existence, and ensuring safety is the company’ssocial responsibility.
2. ‌The company has an obligation to conserve and improve the environment and become an entitythat is friendly to both people and the planet.
Policies Related to Environment and Safety
1. ‌We will comply with social rules and standards, including corporate ethics in addition to applicable laws.
2. We will pursue zero accidents and zero occupational injuries.
3. We will reduce our environmental impact to prevent global warming and protect the natural environment.
4. ‌We will educate our employees about the environment and safety so that they can act with­awareness of their own responsibilities.
5. We will communicate closely with society to enhance understanding and trust.
6. ‌We will continue making improvements by utilizing the latest technologies and available internal andexternal information.

Based on the above environment and safety principles and policies, every year, MCC creates a Group­environment and safety action plan. The plan reflects the results of the previous year’s plan and audits andlays out yearly targets, policies and key measures.
The fiscal 2019 plan included the annual targets of zero serious process safety incidents, zero serious­occupational accidents, zero environmental incidents, and contribution to the global environment. The annual
policy under the plan was to precisely understand workplace weaknesses and steadily make improvements.
In line with this plan and the status of each workplace, we carried out environment and safety activities.

Audits of Environment and Safety Activities
MCC conducts safety audits and environmental audits covering 16 plants, two R&D centers, and 94 domestic
and overseas Group company sites.
In fiscal 2019, MCC conducted safety audits of 11 plants and 33 Group company sites as well as environmental audits of two plants, one R&D center and seven Group company sites. Through the audits, MCC
checked and evaluated the workplaces’ PDCA cycles based on audit subjects designated in the fiscal 2019
audit plan and provided guidance related to needed improvements.
MCC checks to confirm that audited plants, R&D centers and Group companies are working to make necessary improvements by, for example, improving their facilities or reviewing their standards in response to guidance provided as a result of such audits.
FY2019 audits performed

40

Total issues identified

FY2019 audit plan audit subjects

Safety audits
by MCC• MCC: 11 plants• Group companies: 33 sites

168• Implementation of action plans• Implementation of measures to prevent­occupational accidents, other incidents
and their recurrence• Compliance with safety laws

Environmental
audits by MCC• MCC: 2 plants and 
1 R&D center• Group companies: 7 sites

72• Compliance with environmental laws•P
 DCA cycles for environmental
conservation activities

Mitsubishi Chemical   Sustainability Report 2020

Process Safety and Disaster Prevention,
Occupational Safety and Health
Basic Policy
Mitsubishi Chemical (MCC) creates action plans comprising annual targets, annual policies, and key measuresreflecting the status of activities and results of the previous fiscal year and uses said plans to carry out process
safety and disaster prevention and occupational safety and health activities. In fiscal 2019, we implemented
activities in line with the annual goals of zero serious process safety incidents and zero serious occupational
accidents as well as the annual policy of precisely understanding workplace weaknesses and steadily­making improvements.

Focus

The MCC Group Basic Safety Behaviors Initiatives

The MCC Group established the MCC Group Basic Safety Behaviors and began initiatives to ensurethat employees know and consistently practice them in order to prevent employee behavior-related
accidents throughout the global Group. The three basic behaviors were drafted based on opinions
solicited from our 40,000 employees around the world. Under these initiatives, employees not only
work to carry out the basic behaviors themselves, but remind one another and raise each other’sawareness in order to prevent occupational accidents at the organizational level.

The MCC Group Basic Safety Behaviors
1 One MCC: A slogan for bidirectional globalization efforts aimed at becoming a truly global Group and Group-wide cross-border initiatives

Mitsubishi Chemical   Sustainability Report 202041

Responsible Care Activities

Process Safety and Disaster Prevention,
Occupational Safety and HealthPreventing Process Safety Incidents and Occupational Accidents, Key Measures
In fiscal 2019, there were 25 incidents, including small fires and leaks of hazardous materials, as well as six
chlorofluorocarbon gas leak incidents.
The main causes of the incidents were the corrosion and degradation of facilities and insufficient checking
during facility inspections and operations. Behind these factors, were management problems, including delays
in response to facility aging, insufficient knowledge and insufficient education.
In fiscal 2019, 11 serious occupational accidents resulting in four or more days of lost work occurred in ­Japan.
These accidents included such incidents as getting caught or entangled in machinery and falls on level­surfaces and from high places. The main causes of these occupational accidents were lack of competency inbasic practices and operations, inadequacies in work procedures and inadequacies in structure design andmanagement. Behind these factors were management problems, including insufficient education and training,insufficient safety activities, and insufficient risk assessment.
Due to a focus on countermeasures to accidents related to being caught and entangled in equipment, which
often lead to severe occupational injuries that result in lasting physical impairment, such accidents decreased.
However, instances of falls on level surfaces and heat stroke have been increasing, and overall occupational
accidents did not decrease. We will continue striving to reduce the occurrence of occupational accidents.
Mitsubishi Chemical Group Process Safety Incidents
in Japan(Number)

Incidents

40

Mitsubishi Chemical Group Occupational Accidents
in JapanNon-lost-time accidents
Serious accidents(Number)

Serious incidents

100

Lost-time accidents

80

30

60
20

45
33

10

21
12

20

16

2016

2017

2018

2019

(FY)

Annual Rate of Lost-Time Accidents

0.6

11

12

3
8

11

2016

2017

2018

2019

7
5

0

2015

0.8

63

50

20

0

1.0

64
61

40

31

Domestic Mitsubishi Chemical Group
Chemical industry (Source: Ministry of Health, Labour and Welfare)Japan Chemical Industry Association member companies
0.94
0.90
0.88
0.81
0.81

2015

OthersBeing caught
and entangled
in equipment

18%
6%

0.57

0.35

0.42

0.36

Reaction to motion/
improper motion

0.31

0.29

0.27

0.23

23%

0.21

Contact with high/low temperatures

0

2015

2016

2017

2018

2019

Falls fromhigh places

Falls on levelsurfaces

18%
0.36

0.2

(FY)

Mitsubishi Chemical Group Lost-Time Accidents
by Classification (FY2019)

23%

0.4

6

(FY)

6%

6%

Contact withhazardous substances* Data for fiscal 2016 and earlier are the totals of the figures for the previous Mitsubishi Chemical, Mitsubishi Plastics and Mitsubishi Rayonand their respective domestic group companies. The same applies hereinafter.
* The figure for chlorofluorocarbon gas leak incidents represents leaks from refrigeration equipment with a capacity of 20 refrigeration tons or greater.

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Mitsubishi Chemical   Sustainability Report 2020

In light of the problems underlying these process safety incidents and occupational accidents, in fiscal 2020,
we are implementing the following key measures.
I‌ Thoroughness and Continuation of Safety Activities
In addition to efforts to thoroughly ensure safe basic practices and operations, we are reviewing and working to ensure adherence to proper procedures and safety equipment use in construction and other operations, steadily implementing change management and risk assessment, thoroughly responding to incidents
and occupational accidents, and effectively utilizing information to prevent the recurrence of incidents andoccupational accidents as well as the occurrence of similar incidents and accidents.
‌ Thoroughness and Continuation of Facility Management‌I
To prevent incidents and occupational accidents, we properly inspect facilities for age-related deterioration
and repair and replace them as needed while steadily performing regular monitoring to ensure that signs ofirregularities in facilities are quickly detected and dealt with appropriately.
I‌ Human Resources Training‌ 
We strive to train people who can think for themselves, have good judgment, and take action. For inexperienced
employees, we carry out education on not only operational procedures, but also on adhering to basic safety
behaviors and operations and rules about prohibited behaviors. Furthermore, to enhance risk assessments, weare proactively developing human resources with specialized risk assessment knowledge and skills.
‌ Accident and Natural Disaster Response‌I
To minimize and contain harm in the event of an accident or natural disaster, such as an earthquake, wehave in place systems for rapid response within plants and preventing negative impacts on the areas
around our sites and containing harm and conduct training accordingly. In addition, we are advancing
measures to deal with natural disasters caused by extreme weather due to climate change.

Focus 	Creating People-Friendly Workplaces: Automating Cleaning Operations

at the Kagawa Plant
Based on the idea that “Safety lies at the foundation of the company’s very existence, and ensuringsafety is the company’s social responsibility,” which is part of its Environment and Safety Principles,
MCC strives to create people-friendly workplaces by minimizing operations that are physically or
mentally burdensome. To this end, we are advancing facility improvements utilizing AI, IoT, robotics andother cutting-edge technologies.
At MCC’s Kagawa Plant, employees periodically have to clean accumulated grime off of equipment.
Previously, employees used tools to directly scrape this grime off of surfaces. Because this work put
them in danger of cuts and burns, it was physically and mentally burdensome. To address this, theplant adopted an automated cleaning system that uses robotic arms. This has not only reduced theamount of work presenting significant risk of occupational injury, but enabled the optimization ofcleaning conditions, instead of relying on the experience of operators, thereby realizing an improvementin efficiency over manual cleaning.

Risk Assessment
MCC implements robust risk assessments of processes, operations and chemicals, striving to prevent process safety incidents and occupational accidents. In these risk assessments, we comprehensively identify,
evaluate and work to reduce risks related to process safety, occupational accidents and health. This includes
risks not only under steady conditions, but also unsteady conditions, such as when responding to a problem.
Furthermore, to effectively reduce risks related to changes, we use mechanisms for identifying all changes andconduct risk assessments under the supervision of expert technicians.
Mitsubishi Chemical   Sustainability Report 202043

Responsible Care Activities

Process Safety and Disaster Prevention,
Occupational Safety and HealthEnhancing Self-Directed Process Safety
MCC’s Ibaraki, Mie, Okayama and Hiroshima plants are accredited as having high-level process safety underthe High Pressure Gas Safety Act. These plants maintain a high level of process safety by creating mechanisms in line with the requirements for accreditation under the High Pressure Gas Safety Act, such as
1. Process safety management and inspection frameworks, 2. Continuous improvement of process safetysystems via PDCA cycles, 3. Risk assessments and 4. Education and training.
In recent years, the variety of accidents is increasing, plant facilities are aging and the number of highly experienced employees is falling. In light of such factors, we are working to further enhance the level of process
safety by such means as using IoT and big data technologies, implementing sophisticated risk assessments
and receiving third-party process safety assessments.

Working Environment Management
Some employees within the MCC Group perform work that requires occupational health considerations, suchas the handling of specified chemical substances and organic solvents and operations performed in hot or
noisy conditions. To prevent health problems in these employees, the MCC Group manages working environments based on ongoing working environment measurement performed in accordance with relevant laws andguidelines and its own rules. In addition, MCC carries out a range of occupational health measures, such as
implementing specialized health checkups, workplace inspections by industrial physicians and initiatives toreduce risks identified by chemical substance risk assessments.

Focus 	COVID-19 Infection Prevention Measures During Regular Maintenanceat the Ibaraki Plant
MCC’s Ibaraki Plant halted normal operations from May 12 to July 4, 2020, for large-scale regular maintenance, comprising facility inspections and repairs. During this time, many individuals from partner companies across Japan were scheduled to come to the plant. In light of this, we worked with Ibaraki ­Prefecture,
Kamisu City and medical professionals to implement
thorough measures to prevent infection of COVID-19.
Main anti-infection measures• Required visitors from contractors to make a log of theirbody temperature and whereabouts for a period beginning two weeks before their arrival and, prior to entering
the plant for the first time, to undergo a medical­interview with a doctor.
• 	Checked individuals’ temperature and logs of physicalcondition and whereabouts when they entered the planteach day.
• Took thorough measures to avoid work in closed spaces, crowding and close contact, such as restricting
entry to offices, holding construction-related meetings
virtually, improving the efficiency of contractor reception
operations by adopting DX technologies, and cancelling
morning assemblies.
As a result of these measures, the regular maintenancewas completed with zero cases of COVID-19 and zeroaccidents. The Ministry of Economy, Trade and Industry
praised these efforts, saying that “the successful completion of the regular maintenance at the Ibaraki Plant is amodel for such regular maintenance nationwide.”

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Mitsubishi Chemical   Sustainability Report 2020

Medical interview with a doctor before
entering the plant for the first time

Real-time body temperature sensing at theemployee entrance gate

Providing instructions remotely using tabletsHuman Resource Development Initiatives
MCC implements human resource development using educational plans tailored to specific types of work andlevels of seniority.
We carry out education and drills for employees who conduct operations at manufacturing sites to ensure thatthey can correctly carry out basic practices and operations and follow rules about prohibited behaviors. We
also use creative techniques to help employees apply the knowledge gained through education at actual worksites. Furthermore, we carry out experiential education using facilities that provide simulated experiences ofprocess safety incidents and occupational accidents to increase employees’ sensitivity to danger.
For technical staff, we also provide chemical engineering education and carry out such initiatives as mandatory participation in safety assessments of processes at their respective work sites. Through such efforts, weare developing chemical process safety engineers with specialized knowledge of chemical substances andreactions and risk assessment methods.

Focus

New Education Center at the Fukuoka Plant—Virtual Reality Training System

MCC’s Fukuoka Plant established a new education center (completed in January 2020), expanded its
practice plant, adopted a virtual reality (VR) training system and set up an area dedicated to keeping
the lessons of past accidents fresh. The practice plant enables employees to practice performing plant
operations and on-site work (such as replacing pumps and performing work inside tanks), as well as todrill basic operations, such as the handling of tools and correct work posture and position. We expectthat it will be very useful for developing plant operators. The VR training system allows employees tovirtually experience accidents, such as falls and being caught or entangled in equipment, to heighten
their sensitivity to danger and help prevent occupational injuries. The area dedicated to keeping thelessons of past accidents fresh provides information about serious accidents that have occurred at
MCC to renew employees’ determination to ensure safety.

The new education center

Expanded practice plant

VR training system

Area dedicated to keeping the lessons of past
accidents fresh

Mitsubishi Chemical   Sustainability Report 202045

Responsible Care Activities

Process Safety and Disaster Prevention,
Occupational Safety and Health
Accident and Natural Disaster Response
MCC has in place a range of countermeasures to minimize and contain harm due to accidents and natural
disasters. We evaluate potential external effects, including impact on surrounding areas, and establish­response procedures to be implemented in the event of a disaster. We also conduct training based on scenarios
in which accidents occur simultaneously at multiple facilities or plants due to large-scale natural disasters orother factors. Through such efforts, we maintain an emergency response system.
N Earthquake-Resistant High-Pressure Gas Equipment
MCC uses earthquake resistance design standards to evaluate the earthquake resistance of such facilities asspherical storage tanks with welded steel pipe braces and high-pressure gas facilities designated as vital interms of earthquake-resistant design. Based on such evaluation, MCC has drawn up plans to improve­facilities where necessary and is advancing earthquake countermeasures in line with said plans.
(1) Spherical storage tanks with welded steel pipe braces
We have completed earthquake countermeasures for eight of the nine tanks found to require them. The
installation of earthquake countermeasures for the remaining tank is currently under way and expected tobe completed in fiscal 2020.
(2) High-pressure gas facilities designated as vital in terms of earthquake-resistant design
We have completed earthquake countermeasures for 24 of the 28 facilities found to require them.
­Earthquake countermeasures for the remaining four facilities are expected to be completed in fiscal 2020.

Focus

Countermeasures for Major Earthquakes at the Mie Plant

MCC’s Mie Plant has long implemented earthquake countermeasures based on a scenario of anearthquake occurring in the Tokai region. Following the Great East Japan Earthquake, we strengthened
and revised countermeasures based on a scenario of a major earthquake in the Nankai Trough, tookfacility-related measures, revised related manuals and reinforced related drills.

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Mitsubishi Chemical   Sustainability Report 2020

Environmental Conservation

Basic Policy and Key Measures
Aiming to contribute to the global environment, Mitsubishi Chemical (MCC) proactively works to reduce its
greenhouse gas emissions, conserve resources and energy, prevent contamination of the air, water and soil,
limit waste generation, encourage reuse and recycling, engage in activities and develop technologies that help
conserve the natural environment, and develop and produce environmentally friendly products. In these ways,
MCC strives to reduce its environmental burden at every level of its business activities.
In addition, to ensure legal compliance, we carry out training on environmental laws and regulations, conduct
environmental audits and hold twice annual liaison meetings at which MCC Group managers in charge ofenvironmental issues exchange the latest information about legal amendments and other issues.
In fiscal 2019, we set the annual targets of zero environmental incidents and contributing to the global­environment and implemented the following key measures.
I‌ Reducing Environmental Risk
We are implementing legal education and environmental audits to ensure compliance with environmental
laws and regulations while systematically reducing environmental risk by implementing risk assessments.
I‌ Reducing Environmental Impact
We are working to reduce our environmental impact through such means as cutting greenhouse gas­emissions, saving resources and energy, and reducing emissions of pollutants.
I‌ Coexisting Harmoniously with Local Communities
We are letting local communities know about our environmental conservation initiatives and promoting
harmonious coexistence through communication.

Mitsubishi Chemical   Sustainability Report 202047

Responsible Care Activities

Environmental Conservation

Addressing Climate Change
In line with the target set by Mitsubishi Chemical Holdings of reducing greenhouse gas emissions at least 17%
compared with fiscal 2005 levels by fiscal 2015, MCC worked to cut its greenhouse gas emissions andachieved the fiscal 2015 target. We have maintained emissions at this lower level since fiscal 2016.
Going forward, we will expand the range covered by this measure to include overseas Group companies andadvance initiatives to further reduce greenhouse gas emissions as we aim for the targets of the MCC Groupmedium-term management plan.
Energy Consumption

Greenhouse Gas Emissions

1,000 kl crude oil equivalent

GHG (kt)

2,800

2,700

10,000
2,700

9,000
8,600
2,600

2,600

2,600

8,400

8,400

8,000

7,900

8,100

2,500

2,500

7,000
2,400

2,400

6,000

2,300
2,200

5,000

2015

2016

2017

2018

2019

(FY)

2015

2016

2017

2018

2019

(FY)

* Environmental data for fiscal 2016 and earlier are the totals of the figures for the previous Mitsubishi Chemical, Mitsubishi Plastics, Mitsubishi
Rayon, and their respective domestic group companies. Energy consumption is given as the total of that for the three previous companies
before the formation of the current Mitsubishi Chemical but does not include their domestic group companies.
** Since fiscal 2015, energy consumption and GHG emissions have been calculated based on the GHG Protocol.

Focus

Energy Saving via Solar Power Generation at the Shiga Plant

MCC’s Shiga Plant (Azai Area) has installed rooftop solar panels to generate solar power. Witha ­maximum capacity of 250 kW, these solar panels help reduce net power consumption at peakdemand times in the summer, when the use of air
conditioning increases demand. From their installationin 2014 to June 2019, they generated approximately
1,600 MWh (reducing CO2 emissions approximately
696 tons). MCC will continue to use clean energy tohelp prevent climate change.

Solar panels at the Shiga Plant

N Life Cycle Assessments
Life cycle assessment is an approach that enables the quantitative evaluation of the environmental burden
generated by a product or service over its entire life cycle (from resource collection through raw ­material
production, product manufacturing, distribution, consumption, disposal and recycling) or at specific stages ofsaid life cycle. The evaluation of the environmental impact of MCC’s products and services over their entire life
cycles better enables the company to develop environmentally friendly products and services and provide
them to society.
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Mitsubishi Chemical   Sustainability Report 2020

Preventing Air, Water and Soil Pollution
MCC handles a wide range of chemical substances and therefore maintains ongoing measures to reduce
emissions of hazardous air pollutants and of pollutants into public bodies of water through such means as
installing and improving emission gas and wastewater treatment facilities.
We have been reducing or maintaining at a steady level the environmental burden our businesses place on
atmospheric and water quality, as measured by NOX, SOX and dust emissions as well as chemical oxygen
demand (COD). MCC’s emissions of PRTR-regulated substances1 and VOCs2 have also been declining.
1 Pollutant Release and Transfer Register (PRTR): A system for filing notifications of the amounts of chemical substances released andtransferred. This system enables the identification, aggregation and publishing of data on the types, sources and amounts of hazardous
chemical substances that have been released into the environment or transferred outside facilities as waste.
2 Volatile organic compound (VOC): Typical substances include toluene and xylene. These compounds became subject to regulation by
the amended Air Pollution Control Act of 2006 as source substances of photochemical oxidants (photochemical smog).

Reducing Our Environmental Burden on the Atmosphere andPublic Water Sources
NOx
SOx
COD (t)Dust ( t )

NOx

9,000

8,000

SOx
8,200

COD

Dust

300

7,300

7,500

250
6,700

6,600

200

6,000

200
180

170

160

4,500
3,100

3,000

150

2,900

2,900

2,700

2,600

1,700

1,700

1,700

1,600

1,500

2015

2016

2017

2018

2019

150
100

1,500

50

0

0

PRTR-Regulated Substance Emissions(FY)

VOC Emissions

(t)

(t)

1,200

6,000
1,100
1,000

1,000

1,000

5,000
900

860

4,900

4,800

4,400

4,300

800

4,000

600

3,000

400

2,000

200

1,000

0

3,900

0

2015

2016

2017

2018

2019

(FY)

2015

2016

2017

2018

2019

(FY)

Mitsubishi Chemical   Sustainability Report 2020

49

Responsible Care Activities

Environmental Conservation

 kayama Plant Carries out Environmental Education Initiatives
O
for Local Residents

Focus

MCC’s Okayama Plant invited local children on a plant tour, part of which was used for environmental
education about ocean plastic issues and initiatives to solve them. In addition to providing information
about plastics made with biodegradable polymers that MCC manufactures and employees’ coastal
clean-up activities, we taught the participants about the importance of each individual’s efforts toproperly sort garbage and recycle.

Environmental education presentation
for local residents

Waste Reduction and Recycling
MCC is advancing 3R activities (reduce, reuse, recycle) in an effort to reduce its industrial waste. As a result ofsuch efforts, the industrial waste recycling rate is increasing, and the amount of waste disposed of in landfills
has been decreasing. Going forward, we will continue working to improve our industrial waste recycling rateby strictly enforcing sorted collection and strengthening coordination with disposal contractors.
Industrial Waste Emissions and Recycling Rate(t)

400,000

Waste emissions (left scale)
Recycling rate (right scale)
347,000

340,000

343,000

331,000

76

81

8,000

80

6,000

81

1.6

1.6

5,500

5,300

60

4,000

100,000

40

2,000

20

0

2016

2017

Mitsubishi Chemical   Sustainability Report 2020

2018

2019

(FY)

(%)

2.0

1.5
1.3
4,500

200,000

2015

Waste disposed of in landfills (left scale)
Landfill disposal rate (right scale)

72

0

50

(t )

100
344,000

300,000
80

Waste Disposed of in Landfills and Landfill Disposal Rate
(%)

1.1

1.2
4,100

3,600

1.0

0.5

0

2015

2016

2017

2018

2019

(FY)

Biodiversity Conservation
Based on the Mitsubishi Chemical Holdings Group Biodiversity Preservation Policy, MCC pursues initiatives
that contribute to the global environment and thus conserve biodiversity. Through these initiatives, we work to
reduce environmental risk and impact, and thereby lessen our business activities’ impact on biodiversity. In
addition, we strive to conserve the natural environment by cleaning up neighboring areas and coastal areasand protecting our plants’ green areas.

Environmental Accounting
MCC uses environmental accounting, based on the Ministry of the Environment’s guidelines, to better­understand the costs and effects of its environmental burden reduction and conservation efforts.
In fiscal 2019, MCC invested ¥4.7 billion in such areas as reinforcing wastewater management and air pollution
prevention and incurred ¥33.4 billion in expenses, including those for the operation and maintenance of pollution prevention equipment and proper waste disposal. Meanwhile, such positive factors as revenue from thesale of valuable materials and savings from energy use and lower waste disposal costs totaled ¥1.9 billion.
Investment and Expenses Related to Environmental Conservation and Process Safety

Environmental conservation costs
Category

Costs
withinbusinessareas(Millions of yen)
FY2019Main initiatives

Investment

Expenses

3,746

17,242

Pollution prevention costs

Air pollution prevention, dust
­countermeasure reinforcement,
dust collection system replacement,water pollution prevention, activatedsludge consolidation, wastewater
management reinforcement,­response to deterioration of­wastewater facilities and pipes, etc.

Global environmental
conservation costs

CO2 emissions reduction,
operational improvement, etc.

355

958

Resource-recycling costs

Industrial waste reduction,
proper waste disposal,
resource conservation, energy­conservation, etc.

452

7,504

Upstream/downstream costs

Waste reclamation,
green purchasing, etc.

00

Environmental conservation costs
in management activities

Operation of units to address­environmental conservation, ISO 14001
compliance and renewal, national
exams, environmental education, etc.

0

1,945

Environmental conservation costs
in R&D activities

R&D for increased productivity

0

4,806

Environmental conservation costs
in social contribution activities

Construction and upkeep offactory green spaces

114

389

Costs of dealing with environmental damage

Cleanup of contaminated soil, etc.

Other environmental conservation-related costs
Total

Positive economic effects

0

53

1

550

4,667

33,446(Millions of yen)

FY2019
Income from recycling

1,176

Energy cost savings

382

Income from resource conservation

306
Total

1,864

Mitsubishi Chemical   Sustainability Report 202051

Responsible Care Activities

Product Stewardship

Basic Policy
Product stewardship refers to responsible product management in cooperation with stakeholders that protects the environment and the health and safety of people across the supply chain throughout product life
cycles (encompassing the procurement of raw materials, research & development, production, distribution
and marketing, and use, waste and recycling). Product stewardship initiatives are part of the foundation of
responsible care.
In line with its mission of realizing KAITEKI and as part of its responsible care activities, Mitsubishi Chemical
strives to implement product stewardship through safety management at every stage of its products’ life
cycles. In addition, we provide information about product risks to stakeholders and engage in dialogue toensure proper management and work to ensure appropriate end use and end users of our products from theperspective of security export control.
Mitsubishi Chemical’s Product Stewardship Initiatives

Communication
Procurement of
Raw Materials

Research & Development

Production

Distribution and Marketing

Use, Waste and Recycling

Regulatory compliance(Product safety management, export control management)
Safer products

Responsible procurement(Green procurement)

Safe transport of products

Sustainable processes
Management of chemicals in productsManagement and provision of safety information
Risk assessment and management

Product StewardshipI‌ Communication
Communicate with stakeholders, both internal and external, including customers, regulators and the public,
about the safe and secure use and potential hazards of the products we manufacture and any associatedrisks to ensure that our products are handled appropriately at each stage of their life cycles.
I‌ Procurement of Raw Materials
Set high expectations for the health, safety, security and environmental performance and social responsibilityof suppliers and obtain information related to the safety of procured raw materials from business partners.
I‌ Product Development
Develop products that have no risk or minimize the risk of adverse health, safety and environmental impacts
throughout their entire life cycles and deliver added value, and retain development information for security.

52

Mitsubishi Chemical   Sustainability Report 2020

I Production
Protect the health and safety of our employees and the local community by improving production processes and promoting a corporate culture that places the highest priority on human health and safety; andminimize our environmental footprint by avoiding chemical pollution, reducing energy consumption, supporting recycling and ensuring proper disposal of wastes from the products we manufacture, and keep
production information for security.
I Distribution and MarketingProvide accurate and detailed information related to product safety and handling to business partners
involved in the storage, transport, distribution, marketing and use of our products; and, if necessary, provide additional support to improve product handling practices or suspend sales to a particular entity or forcertain uses for safety and security.
I Use, Waste and Recycling
Work with our business partners to provide relevant information to ensure safe and secure use and tosupport the recycling and proper disposal of our products.
These initiatives are in line with the Strategic Approach to International Chemicals Management (SAICM).1
Along with process safety and disaster prevention, occupational safety and health, environmental conservation, chemical and product safety, and logistics safety, these initiatives are aimed at realizing KAITEKI throughrisk-based chemicals management across product life cycles.
1 Strategic Approach to International Chemicals Management (SAICM): A strategic approach to international chemicals management
adopted by the International Conference on Chemicals Management (ICCM) and approved by the United Nations Environment Programme(UNEP) in 2006.

Mitsubishi Chemical   Sustainability Report 202053

Responsible Care Activities

Security Export Control

Basic Policy
At present, ongoing efforts are being made by international initiatives, mainly though the United Nations, toreduce the threat of weapons of mass destruction. At the same time, however, tensions between the UnitedStates and China as well as between the United States and Iran and elsewhere in the world are intensifying.
The international security environment is changing rapidly, and security export control initiatives on the part ofcompanies are growing in importance.
Mitsubishi Chemical (MCC) produces and possesses numerous products and technologies that can be used
for both civilian and military applications (“dual-use” goods), such as carbon fiber. The appropriate applicationof not only Japan’s Foreign Exchange and Foreign Trade Law, but also export-related U.S. laws and thesimilar laws of many other countries is necessary to prevent MCC’s broad-ranging products and technologies
from reaching countries of concern, terrorist organizations or other improper destinations or recipients.
­Accordingly, we have, 1. designated officers responsible for security export control in Japan as part of efforts
to maintain and enhance export management and 2. established security export policies to support Group
companies in and outside Japan. Furthermore, 3. as part of efforts to respond to U.S. sanctions, we haveestablished a policy on said sanctions and provided it to Group companies in and outside Japan.
In particular, we took steps in 2019 to respond to the tightening of various regulations, such as those onexports from Japan to South Korea and U.S. economic sanctions. Specifically, we quickly revised our­screening criteria and, in line with the addition of export control items to MCC’s M&A Screening Guidelines,­reinforced risk management within due diligence by preparing a manual of procedures for applying said
guidelines. In addition, we built a network in each region to reinforce the export control functions of our­regional headquarters.

Security Export Control System
MCC has established an export control system based on its Security Export Control Rules. The chief executive of this system is MCC’s president and chief executive officer, under whom are the supervisor of security
export control, the Product Stewardship Department and the chief export control officers of exporting departments. Through this system, we work to prevent legal violations, including improper exports, whenever possible,
using such means as strict, thorough export screening, notifications about legal changes, raising internal
awareness about security export control and internal audits of exporting departments.

Mega-FTAs and Mega-EPAs
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (TPP11) went into effect on
December 30, 2018, followed by the EU-Japan Economic Partnership Agreement (EU-Japan EPA) on­February 1, 2019. These agreements each address multilateral economic coordination between numerous
countries. One advantage of the agreements is reduced import tariffs on trade with many countries. To takeadvantage of these reductions, enterprises must complete certificate of origin procedures. Previously, underbilateral trade agreements (such as that between Japan and Indonesia), to receive such certification, users
had to submit the relevant documentation to the Japan Chamber of Commerce and Industry, which would
then issue a certificate. Under the new agreements, however, users provide their own certification via a selfcertification system. Accordingly, we designated the Product Stewardship Department to handle certification
management. The department began considerations of certification procedures in fiscal 2018 and commenced internal screenings in April 2019. As of March 31, 2020, this system had been used for 136 cases,
with savings on customs duties reaching approximately ¥1 billion.

54

Mitsubishi Chemical   Sustainability Report 2020

Export Control Mechanisms
Security control comprises three steps: Item classification, customer screening and transaction verification.
Each step is uniformly managed using a dedicated system so that the results can be used as part of anactivity trail if needed.
Item classification is the process of determining whether the product or technology being exported or suppliedis subject to legal restrictions (namely, listed as a restricted item). We implement a double-check process
wherein, based on the latest restricted item lists, the exporting departments perform the initial check and theProduct Stewardship Department grants final approval.
Customer screening entails using the export control system, which contains the latest risk information, toscreen customers, including both customers in Japan who indirectly export and end-users at the item’s finaldestination. This screening system is highly effective in preventing the circumvention of regulations throughthird-country exports and checking for customers of concern based on U.S. export laws. As with item
­classifications, a double-check process is applied to customer screenings.
For transaction verification, the exporting departments fill out a transaction verification form using the results of
the item classification and customer screening as well as other information as needed. Based on this form,
the export control system then automatically classifies the transaction by risk level and determines who will be
responsible for granting final approval. In principle, the Product Stewardship Department grants final approval
for items listed as restricted that are considered high-risk, such as carbon fiber.
In addition, in fiscal 2019 we created a new system for screening and approval under TPP11 and EU-Japan
EPA. Screening is based on the security export control approval process, with a built-in double-check. The
exporting departments first carry out origin certification for individual products and then refer items to the
Product Stewardship Department for confirmation and final approval.

Training and Education
In fiscal 2019, MCC held 71 explanatory meetings targeting business domains, corporate function domains,
plants and our R&D center, focusing mainly on export control related to the provision of technology. In addition,in light of the beginning of trade under the TPP11 and EU-Japan EPA, we held a total of nine orientations toprovide an overview of relevant EPAs and FTAs and prepare to carry out origin certification.
Going forward, we will continue to carry out training and education that covers the basics of legal compliancewhile finding new ways to increase its effectiveness, such as introducing content important to the real-life
practice of compliance and new educational tools.

Mitsubishi Chemical   Sustainability Report 2020

55

Responsible Care Activities

Chemicals Management

Management System and Rules
Mitsubishi Chemical (MCC) maintains a system that ensures the rigorous product stewardship-based­management of chemicals in all its business domains.
To effectively utilize the favorable properties of its chemical raw materials, MCC collects and shares within thecompany information on all substances related to its products, including that on chemical hazards, applicable
domestic and international regulations, and the results of risk assessments. In addition, we have builta ­support structure to better enable the business domains to implement proper chemicals management.
Because chemical regulations vary by country and region, MCC has appointed persons responsible for­overseeing product stewardship at the regional headquarters to reinforce the global management system.
We have laid out the essentials of chemicals management in our Chemicals Management Regulations,­Standards for the Safe Management of Chemicals and Standards for Product Safety Management.
­Furthermore, we have formulated guidelines and manuals that provide concrete methods for working within
regulations, authoring and issuing SDSs,1 and implementing voluntary chemicals management. These efforts
help ensure proper management.
1 Safety data sheet (SDS): A document for providing information on the properties, hazards and toxicity, safety measures and emergency
responses concerning chemical substances when transferring or providing chemicals to other business entities.

Compliance with Chemicals Management Regulations
N 1. Japanese Laws and Regulations
MCC complies with wide-ranging laws concerning chemicals, including the Chemical Substances Control
Law (CSCL), the Industrial Safety and Health Act’s requirements concerning filing new chemical substance
notifications, and the Poisonous and Deleterious Substances Control Law’s requirements concerning theregistration and management of manufacturing, importing and sale businesses as well as record maintenance.
To ensure that such compliance is thorough and comprehensive, MCC has established internal guidelines andrules related to compliance with domestic laws and carries out centralized management using a database of
notifications filed. In fiscal 2019, we revised our legal compliance confirmation procedures in line with theamendment of the CSCL and updated our internal guidelines, clearly laying out confirmation procedures forimporting chemical substances, including the handling of internal product returns.
N 2. Overseas Laws and Regulations
In the run-up to 2020, the target deadline for achieving the overall goal of the SAICM,2 countries around theworld (including China, South Korea, Taiwan, the United States and Turkey) enacted and amended legal
regulations on chemicals. In particular, the mandatory registration of existing chemicals, begun under EU
REACH,3 commenced in South Korea, Taiwan and Turkey. To respond to these changes, we are working withthe regional headquarters and local Group companies to collect the latest information on legal requirements ineach region or location and develop a system to ensure a more accurate response to regulations. In fiscal
2019, we focused efforts on dealing with issues related to EU REACH and UK REACH arising from Brexit,
preparing for pre-registration under Turkey’s KKDIK (a law similar to REACH), and standard registration andvolume reporting under Taiwan’s Toxic and Concerned Chemical Substance Control Act (TCCSCA).
2 Strategic Approach to International Chemicals Management (SAICM): A strategic approach to international chemicals management
adopted by the International Conference on Chemicals Management (ICCM) and approved by the United Nations Environment Programme(UNEP) in 2006.
3 Registration, Evaluation, Authorization and Restriction of Chemicals (REACH): EU regulations regarding the registration, evaluation,
approval and restriction of chemical substances.

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Mitsubishi Chemical   Sustainability Report 2020

Voluntary Chemicals Management Initiatives
N 1. Participation in Chemical Industry Activities
MCC takes part in the international activities of the Chemicals Policy & Health Leadership Group of the International Council of Chemical Associations (ICCA) and cooperates in promoting product stewardship in thechemical industry. In recent years, MCC has also actively participated in initiatives to address the global issueof microplastics.
Furthermore, looking toward new developments in chemicals management beyond the 2020 goal of SAICM
and building on the SDG4 vision established by the Japan Chemical Industry Association (JCIA), MCC aims to
go beyond solving environmental and social issues as a chemicals manufacturer to contribute to the sustainable development of society and the planet, in line with its vision of realizing KAITEKI.
N 2. Mitsubishi Chemical’s Voluntary Initiatives
As part of its GPS5 activities, the MCC Group evaluates the risks of its chemical products, compiles the results
as GPS Safety Summaries,6 and publishes these summaries via a portal page (available in Japanese only) on
the MCC website.
Furthermore, to prevent the theft and/or abuse of chemicals, MCC has established its own list of MCC specified chemicals, which includes voluntarily designated substances in addition to legally designated or restricted
substances. We have established safety management guidelines for managing these substances at plants
and laboratories, during logistics operations and during transfer to customers. In this way, we are working toreinforce the management of such substances.
4 Sustainable Development Goals (SDGs): A set of development goals aimed at realizing a sustainable world by 2030 that were adopted at
the UN Sustainable Development Summit in September 2015.
5 Global Product Strategy (GPS): A voluntary initiative wherein companies appropriately manage and conduct risk assessments of theirchemical products in order to minimize risks posed by chemical substances throughout the supply chain.
6 GPS Safety Summary (sometimes abbreviated as GSS): Documents that clearly explain methods for handing chemical substances andother information in detail that cannot be fully included on SDSs. These summaries are used in risk management-based chemicals management.

Mitsubishi Chemical   Sustainability Report 202057

Responsible Care Activities

Chemicals Management

Providing Reliable Chemical Substance and Product Information (SDSs, etc.)
MCC has adopted comprehensive chemicals management systems (for example, K-Mates7), to support ourexpert staff in the proper provision of information to customers throughout supply chains in and outside Japan
as well as management based on the most up-to-date information related to chemicals management.
The systems comprise databases of the chemical substances and components of products handled by MCC,
their hazardous properties, relevant domestic and international laws and regulations, and other information.
The systems are capable of performing the GHS 8 classification of chemical substances, determining theapplicability of laws and regulations, and producing SDSs and labels in line with the laws and standards ofa wide range of countries and regions, including Japan, Europe, the United States, and East Asian and ASEAN
countries for review by expert staff. The system uses highly reliable data that is carefully reviewed by experts
at Mitsubishi Chemical Research, an MCC Group company, to generate GHS classifications. Furthermore,
we are implementing proactive product management using a function of the system that enables users tosearch chemical substances and products in the MCC database that may be subject to anticipated legal or
regulatory amendments.
7 K-Mates: KAITEKI-integrated System of Risk Management & Technical Information Supports on Chemicals
8 Globally Harmonized System of Classification and Labelling of Chemicals (GHS): A system for classifying chemicals by the type and degreeof their hazardous properties based on globally harmonized rules and communicating this information using labeling and the provision of SDSs.

In-House Chemicals Management Training
In addition to basic chemicals management education, MCC hosts the Chemicals Management Seminar (“PSSeminar”) on a monthly basis at MCC Group headquarters. This seminar serves to teach Group company
employees about increasingly stringent regulations in and outside Japan and how to address them. In fiscal
2019, we used an online meeting system to enable remote participation, including for employees working
from home, and a total of 691 employees participated. In particular, we conducted e-learning about the
Poisonous and Deleterious Substances Control Law and laws related to pharmacological agents to prevent
compliance violations due to inadequate understanding to the law, in which a total of 3,939 employees participated.
We also provided education to enhance understanding of the CSCL and Industrial Safety and Health Act andheld liaison meetings on specific topics, such as food packaging material regulations and chemical productregulations in certain countries. Further, we provided basic training in relevant laws on 17 occasions at plants,
our R&D center and Group companies, providing detailed, concrete guidance on working within laws.

In-house chemicals management training

58

Mitsubishi Chemical   Sustainability Report 2020

Quality Assurance

Basic Policy
The Mitsubishi Chemical (MCC) Group believes that implementing thorough quality control (QC) is important toensuring product safety and continuously improving quality so that MCC Group customers can use MCC
Group products safely and with confidence.
As an integrated chemical company that provides a wide array of products and services to customers ina broad range of industries, it is MCC’s duty to prevent quality and product liability issues while working tofurther increase customer satisfaction by offering safe, reliable products and services. We strive to fulfill thisduty in line with the following basic policy.
I In order to realize KAITEKI for customers, we provide products and services that customers can use
with confidence.
I We listen carefully to each customer’s requests and respond rapidly and sincerely.
I In accordance with the basis of our responsible care activities, we strive to achieve continuous improvement
in quality.

Quality Assurance Initiatives
The MCC Group established new rules and policies at the time of the merger that formed the new MCC in
April 2017 and has since been working to ensure awareness of the basic policy throughout the company. We
are building appropriate quality management systems (based on ISO 9001,1 GMP,2 etc.) at our manufacturing
sites and working to strengthen our quality assurance framework. Furthermore, we hold regular quality assurance meetings to share and effectively utilize information about quality within the Group as part of continuous
efforts to improve quality. At the same time, we are focusing on quality assurance training. In fiscal 2019, we
held lectures with outside instructors for executives (a total of 200 participants). Through such initiatives, we
are working to increase awareness of quality and translate this awareness into practice. The training for managers that was scheduled for March 2020 was cancelled in accordance with measures to prevent the spreadof COVID-19.

Product Information Disclosure
Around the world, corporations are facing growing demands to exercise proper management of chemical
substances in products throughout the entire product life cycle as well as to disclose information on suchchemical substances. To accurately respond to these demands, MCC has established management standards
for chemical substances in products and continues to contribute to the smooth operation of chemSHERPA3
through the Joint Article Management Promotion-consortium (JAMP).4 Furthermore, with regard to conflictminerals,5 which present possible human rights issues, we have established a policy and strive to meet­customer requests.
MCC is working with its business partners and customers to contribute to the creation of a social systemcapable of managing chemicals throughout the supply chain.
1 ISO 9001: An international standard for quality management published by the International Organization for Standardization.
2 Good Manufacturing Practice (GMP): Quality management standards for the production management of pharmaceuticals and related products.
3 chemSHERPA: A new private-public information communication scheme aimed at standardizing communications about the chemicals
included in products.
4 JAMP: A cross-industry organization that works to promote the appropriate management, disclosure and communication of information on
chemicals contained in “articles” (parts and final products) throughout the supply chain.
5 Conflict minerals: Tantalum (Ta), tin (Sn), gold (Au), tungsten (W) and other minerals extracted in the Democratic Republic of the Congo andneighboring countries that are used to fund armed groups.

Mitsubishi Chemical   Sustainability Report 202059

Responsible Care Activities

Quality Assurance

Handling Product Complaints
Information about complaints related to products is compiled in a quality complaint database so that it can beeffectively utilized. Business departments take the main role in quickly responding to customers as needed,
striving to enhance customer satisfaction. Significant complaints are aggregated at the company-wide level
and analyzed to prevent recurrences.

60

Mitsubishi Chemical   Sustainability Report 2020

Logistics

Basic Policy
Mitsubishi Chemical (MCC) strives to put safety first and promote strict compliance, risk management, respectfor human rights and communication with business partners in order to realize KAITEKI. Based on a productstewardship approach, we are promoting KAITEKI logistics to earn the trust of customers and society inlogistics operations.

Hazardous Materials Transport Initiatives andSystem to Prevent External Harm in Case of an Accident
MCC focuses considerable effort on ensuring the safe transport of hazardous materials.
MCC’s business domains regularly hold responsible care meetings with logistics subsidiaries, maintaining close
communication and implementing measures aimed at reducing problems, accidents and occupational injuries.
We work with logistics subsidiaries to ensure that all shipments are accompanied by yellow cards1 and educate
our business partners about the chemical properties of our products and safety. In these ways, we work toenhance understanding of the products being transported and sensitivity to safety.
In addition to initiatives aimed at preventing accidents, we also conduct regular disaster drills with logistics
subsidiaries and are taking steps to address the risk of a serious road accident through a contract and drills
with the Maritime Disaster Prevention Center. Furthermore, for products that present particularly high risk if
stolen or lost, we have established our own management standards that we use in the transportation andstorage of such products.
1 Yellow card: A document that contains emergency safety procedures to be taken in the event of a ­transportation accident and contact
information for MCC.

Participation in the Sustainable Logistics Movement
Japan’s Ministry of Land, Infrastructure, Transport and Tourism, Ministry of Economy, Trade and Industry and
Ministry of Agriculture, Forestry and Fisheries are calling on listed companies and key companies in eachprefecture of Japan to participate in the Sustainable Logistics Movement.2
As this movement aligns well with MCC’s existing KAITEKI logistics initiatives, the company is participating by
expanding initiatives aimed at achieving sustainable logistics based on the following eight-point voluntarydeclaration of conduct.
I We will work with logistics subsidiaries to improve the efficiency and stability of logistics on an ongoingbasis and sincerely discuss any suggested improvements or questions from logistics operators.
I We will implement lorry and truck reservation systems to reduce waiting times.
I We will promote the use of palettes to reduce cargo handling that truck drivers perform by hand.
I We will consolidate product storage spread across warehouses near plants to improve shipment­collection efficiency.
I We will formulate transport plans in advance to ease shipping rushes around long holiday periods, such asGolden Week and New Year’s.
I We will promote modal shifts of long-distance truck transport to railways and ships to improve logistics
stability and per-unit energy consumption.
I We will prioritize compliance with relevant laws when selecting and hiring logistics operators.
I We will clearly indicate safe work procedures, take steps to secure safe routes and, as needed, form security transport agreements to prevent occupational injuries and accidents.
2 Sustainable Logistics Movement: An initiative aimed at creating more worker-friendly working conditions in response to the increasingly
serious shortage of truck drivers in Japan. Specifically, the movement aims to stably secure the necessary logistics operations for the
livelihood of Japan’s people and its industrial activity and thereby contribute to stable economic growth by improving trucking productivity
and logistics efficiency and creating more worker-friendly working conditions, including those for women and drivers over the age of 60.

Mitsubishi Chemical   Sustainability Report 202061

Responsible Care Activities

Company Data (Environment and Safety)

Mitsubishi Chemical Group Companies Promoting Responsible Care Activities
As of March 2020

N Petrochemicals Business Domain
Japan Polychem

N High Performance Chemicals BusinessDomainJapan Polypropylene

DIACHEM RESINS INDONESIA

Japan Polyethylene

Toei Kasei

Mitsubishi Chemical Indonesia

Dianal America
Japan Coating Resin

N Carbon Business Domain

ARKEMA Yoshitomi

Kansai Coke and Chemicals

Mitsubishi-Chemical Foods
MCC Unitec

N MMA Business Domain
Mitsubishi Chemical Lucite Group
Huizhou MMA
Suzhou Sanyouli Chemicals
Thai MMA
Mitsubishi Chemical Polymer Nantong
Suzhou MRC Opto-Device
Ryoko
Diapolyacrylate
N Advanced Polymers Business Domain
Mitsubishi Chemical Performance Polymers Europe
Mitsubishi Chemical Performance Polymers
Mitsubishi Chemical Performance Polymers (China)
RHOMBIC

Onahama Distillation
N Information, Electronics & Display Busi-

ness Domain
MC PET FILM INDONESIA
Mitsubishi Polyester Film Suzhou
Mitsubishi Chemical Converting Film Wuxi
Tai Young High Tech
Mitsubishi Chemical Infonics
Cleanpart
ShinryoMitsubishi Chemical MediaTaisei Kayaku
Kansai Kagaku Kogyo
N High Performance

Films Business Domain
J-FilmTai-Young Film
DiaPlus Film
Mitsubishi Polyester Film (U.S.A.)
Mitsubishi Polyester Film (Germany)62

Mitsubishi Chemical   Sustainability Report 2020

N Environment & Living Solutions Busi-

ness Domain

N New Energy Business Domain
MC Ionic Solutions UK

Dalian Rayon Environmental Equipment

MC Ionic Solutions US

Wuxi Rayon Membrane Technology

Qingdao Anode Kasei

Mitsubishi Chemical Aqua Solutions
Mitsubishi Chemical Cleansui

N Corporate Domain

Resindion

Mitsubishi Chemical Logistics

Tai Young Chemical

Mitsubishi Chemical Engineering Corporation

Mitsubishi Chemical Agri Dream

Ryouei

Mitsubishi Chemical Infratec

Ryoko Tekunika

Astro

Hokuryo Mold

DIATEX

Mitsubishi Chemical High-Technica

N Advanced Moldings &Composites Business Domain
Mitsubishi Chemical Advanced Materials
Toyama Filter Tow
Tosen
Ryoko Sizing
Mitsubishi Chemical Carbon Fiber and Composites(U.S.A.)
Challenge
MCC Composite Products
AldilaWethje Carbon Composites
Wethje Immobilien
ALPOLIC
Mitsubishi Chemical Composites America
Ryobi Techno
Shanghai Baoling Plastics
MCC Advanced Moldings

Mitsubishi Chemical   Sustainability Report 202063

Responsible Care Activities

Company Data (Environment and Safety)
Safety Data
Data for years prior to and including fiscal 2016 are the sums of the figures for the previous Mitsubishi­Chemical, Mitsubishi Plastics, Mitsubishi Rayon and their respective domestic group companies before theformation of the current Mitsubishi Chemical.

Mitsubishi Chemical Group Process Safety Incidents in JapanClassification

FY2015FY2016FY2017FY2018FY2019

Incidents

12

16

21

33

31

Serious incidents

0

0

0

0

0

Mitsubishi Chemical Group Occupational Accidents in JapanClassification

FY2015FY2016FY2017FY2018FY2019Non-lost-time accidents

45

50

61

63

64

Lost-time accidents

7

5

0

3

6

Serious accidents

20

11

12

8

11

Mitsubishi Chemical Group Lost-Time Accidents by Classification
Classification

64

FY2015FY2016FY2017

Cuts

1

6

1

Being caught and ­entangled
in equipment

10

9

14

5

3

41

Falls on level surfaces

10

9

8

1

4

32

Contact with hazardous
substances

3

6

2

1

12

Contact with high/low temperatures

3

2

1

6

Reaction to motion/
improper motion

1

3

6

Collisions

3

Falls from high places

3

4Struck by flying/falling objects

3

1

Others22

Mitsubishi Chemical   Sustainability Report 2020

FY2018FY2019

8

2
5
8

8
2

1

1
4

Total

18
5

4

12

Environmental Data
Data for years prior to and including fiscal 2016 are the sums of the figures for the previous Mitsubishi­Chemical, Mitsubishi Plastics, Mitsubishi Rayon and their respective domestic group companies before theformation of the current Mitsubishi Chemical.

Mitsubishi Chemical Group Emissions of Pollutants into the Atmosphere and Water Systems (t)Pollutant

FY2015FY2016FY2017FY2018FY2019

NOx

8,000

8,200

7,300

6,700

6,600

SOx

3,100

2,900

2,900

2,700

2,600

Dust

200

180

170

160

150

VOCs1

4,800

4,300

4,900

4,400

3,900

BOD

100

100

250

160

160

COD

1,700

1,700

1,700

1,600

1,500

50

60

50

50

50

5,500

5,700

5,800

5,400

5,500

Total phosphorus
Total nitrogen
1 Includes PRTR-regulated substances.

Mitsubishi Chemical Group Water Intake and Discharge Volumes (km3)Type

FY2015

Tap water

IntakeDischarge

FY2016FY2017FY2018FY201928,40031,300

1,400

1,300

1,300

Surface water——

47,80048,30052,900Groundwater

22,30023,20025,50025,90026,000Industrial water

102,000

97,80082,90077,00074,100

Seawater

457,800

463,100

461,300

493,500

486,500

Oceans493,900

495,100

488,800

552,000

555,000

Streams andwetlands

51,20048,30052,40052,00049,500

Sewage

3,500

3,600

3,300

3,800

4,000

Manufacturing Site

Certification
body

Registration dateISO 14001 Certified Mitsubishi Chemical Manufacturing Sites
Certification
body

Registration date

Ibaraki Plant

JCQA1March 2001

Tsukuba Plant

JCQA

February 2000

Toyama Plant

LRQA2July 2016

Tsurumi Plant

LRQA

October 2016

Aichi Plant

LRQA

July 2016

Hiratsuka Plant

JQA

March 2000

Mie Plant

JCQA

July 1999

Ueda Plant

JCQA

October 2003

Shiga Plant

JQA3

December 1999

Ogaki Plant

SGS4

July 2001

Okayama Plant

JCQA

March 2000

Kumamoto Plant

SGS

July 2001

Hiroshima Plant

LRQA

March 2016

Manufacturing Site

Kagawa Plant

LRQA

December 2000

Fukuoka Plant

JQA

July 2000

Onahama Plant

JCQA

March 2003

As of March 31, 2020
1 JCQA: Japan Chemical Quality Assurance Ltd.
2 LRQA: Lloyd’s Register Quality Assurance Limited
3 JQA: Japan Quality Assurance Organization
4 SGS: SGS Japan Inc.

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Together with Stakeholders

Basic Policy

The Mitsubishi Chemical Holdings Group identifies its stakeholders as its customers, shareholders, investors,
communities, employees, business partners and everyone else who supports its corporate activities, as well
as society at large and the foundation upon which it is built, the Earth. Based on this understanding,­Mitsubishi Chemical works to earn the trust of its stakeholders by valuing and respecting stakeholders,­engaging in dialogue and proper disclosure, and reflecting the fruits of such efforts in all its corporate ­activities.

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Together with Customers

Basic Policy
In line with the Mitsubishi Chemical Holdings Group Charter of Corporate Behavior, Mitsubishi Chemical(MCC) constantly strives to achieve customer satisfaction by keeping the promises made in contracts withthem, ensuring the safety and quality of all the products and services it supplies, engaging in close customer
communications and advancing R&D.

Making Product Information Available
Over 900 product information entries (approximately 400 in Japanese, 300 in English and 230 in Chinese),
including information on the products of Group companies, are available on MCC’s website. In addition,
Safety Data Sheets (SDSs) and GPS Safety Summaries (GSSs) can also be accessed through the website(available in Japanese only).
For product information, please contact the department or Group company that handles the product in question. Lists of MCC’s departments and Group companies with information on the products they handle areavailable on MCC’s website.
https://www.m-chemical.co.jp/en/products/departments/mcc/index.html
If you are unsure which department to contact, please contact the call center for guidance.
Inquiries via the call center are directed to the relevant departments and logged in a database that is available
to management.
Call center (+81) 3-6748-7300
9:00–12:00, 13:00–17:45 (Closed Saturdays, Sundays and national holidays)

Enhancing Customer Satisfaction
The Mitsubishi Chemical Holdings (MCHC) Group believes that close customer communication is essential toachieving accurate insight into social issues and the challenges that customers face and to finding solutions
together. Accordingly, the Group has been conducting customer satisfaction surveys since fiscal 2012.
­Specifically, we survey customers in and outside Japan about products handled by our core businesses,
covering such topics as quality, supply systems, sales promotion and technical support, as well as the­attitudes and reliability of individual operating companies. By analyzing the results of these surveys and­implementing a PDCA cycle, MCC aims to provide even better customer service and improve customer
satisfaction.

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Together with Stakeholders

Together with Customers

Thinking about Creating a Better Future with Customers: KAITEKI SQUAREKAITEKI SQUARE was established in October 2012 in our Tokyo headquarters as a showroom for
the MCHC Group. It is an important platform for communication with our customers and clients, aplace where we can interact and exchange ideas about a better future.
This facility comprises two areas, namely, (1) an exhibition area showcasing the wide-ranging technologies the MCHC Group has developed to date and its forward-looking business initiatives and (2)the KAITEKI Theater, which shows a video on the theme of what we can do now for the children of
the future. The displays in the exhibition area are focused mainly on products and provide visitors withhands-on experience with MCHC Group technologies.
In addition to the KAITEKI SQUARE showroom at the Tokyo headquarters, the MCHC Group operates
KAITEKI SQUARE Yokohama at the Science & Innovation Center (Kanagawa Prefecture), KAITEKISQUARE Yokkaichi at the Mie Plant, KAITEKI SQUARE Aichi at the Aichi Plant and KAITEKI SQUARE
Sakaide at the Kagawa Plant. We use all of these facilities as places for communication with customers.
In particular, KAITEKI SQUARE Yokkaichi not only features a showroom displaying Group technologies
and products, but collaborates with the Customer Laboratory, a facility established to facilitate collaboration with customers, with the aim of fostering innovation.
A reservation through an MCHC Group employee is required to visit KAITEKI SQUARE facilities.

KAITEKI SQUARE at the Tokyo headquarters

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Together with Business Partners

Aiming to realize KAITEKI, an original concept created by the Mitsubishi Chemical Holdings Group, Mitsubishi
Chemical (MCC) works with business partners to promote purchasing and procurement that take into accountCSR-related considerations based on the Mitsubishi Chemical Holdings Group Charter of Corporate Behavior.

Promoting Communication
We facilitate communication with raw materials and packaging materials suppliers using a guidebook andsurvey to ensure suppliers share our understanding of CSR issues and to confirm the status of related­initiatives.
We utilize survey results to provide feedback to business partners and engage in dialogue about making
specific improvements. By doing so, MCC aims to build sound relationships with its business partners thatenable mutual growth and improvement.
In fiscal 2019, we provided feedback based on the results of a survey of our key business partners conductedin fiscal 2018. We believe that the survey, covering such topics as the Mitsubishi Chemical Holdings Group
Charter of Corporate Behavior and responses to recent external trends, helps us to more accurately express
our commitments and priorities, and improve the quality of communications with business partners.
Mitsubishi Chemical’s CSR Procurement
Upstream suppliers to our business partners
We ask that our business partners particularly exercise caution regarding
their suppliers’ business practices in the areas of legal compliance,
respect for human rights, hiring and labor, the environment and safety,
conflict minerals and information management.

We request caution be taken to guard against
risks arising from increasingly globalized andmulti-layered supply chains.

Business partners
We ask business partners to consider establishing PDCA cycles
to address items covered in surveys in light of survey results.

Mitsubishi Chemical (purchasing departments)

Through dialogue using the guidebook andsurvey, we aim to advance initiatives withbusiness partners that will realize mutual
sustainable growth.

1. Guidebook: Principles We Ask Our Business Partners to Embrace(Request for Suppliers)
2. Survey: Business Partner Survey on CSR
We provide feedback based on survey results.

Compliance with the Act against Delay in Payment of Subcontract Proceeds,
Etc. (the “Subcontract Act”)
To maintain sound relationships with its business partners, MCC has clarified a system for ensuring compliance with the Subcontract Act and established internal rules, including the Subcontract Act Compliance
Regulations, which indicate the specific scope of application and compliance requirements of the Subcontract
Act. To ensure that transactions are conducted pursuant to such internal rules, MCC periodically implementsinternal training and audits of related departments.

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Together with Stakeholders

Together with Employees

Mitsubishi Chemical (MCC) is implementing a range of initiatives aimed at enabling employees—upon whom
realizing KAITEKI depends—to exercise their abilities to the fullest as well as at achieving sustainable corporate
development based on a relationship of trust between employees and management.

Basic Policy“Utilizing people’s capabilities” is one of the fundamental management policies of the MCC Group. We­practice health and productivity management and carry out management with the aim of empowering all
Group members to work with enthusiasm, motivation and initiative, allowing each individual to exercise theirabilities to the fullest while promoting diversity and viewing the diversity of human resources as a strength.

The Human Resources and Organization We Aspire to Be
We, as individuals, aspire to:• Think deeply about, take action according to, and take responsibility for our own duties and roles.
• Proactively embrace differences, respect one another and broadly connect with others.
• Look beyond the status quo and take new action to continuously and ambitiously seek tocreate value.
We, as an organization, aspire to:• Share common goals and a common direction and create an organization where we can all thrive.
• Anticipate change and work together to take action quickly.
• Leverage diverse individuality and ways of thinking to continually seek value creation that is greaterthan the sum of our individual contributions (1 + 1 > 2).

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Personnel Strategy for Sustainable Corporate Development
MCC is mainly implementing initiatives related to the following issues with the aim of utilizing­people’s ­capabilities.
I KAITEKI Health and Productivity Management
I Respect for human rights and promoting diversity
I Effective placement and human resource development
In implementing initiatives related to the first of these, KAITEKI Health and Productivity Management, we arefocusing on both health support and workstyle reforms, aiming to improve health at the individual and workplace levels. That is, we are working to realize workstyles that facilitate health and job satisfaction for every
employee as well as workplace ­environments that allow each individual to thrive and utilize their abilities to thefullest. MCC is working s­ trategically—investing and building frameworks—to make this happen. We areencouraging every employee to proactively examine their own health, work and workplace, ask what they can
do to enhance their own health and vigor at work, and take action accordingly. We believe that this approach
will help each employee achieve a greater sense of satisfaction and achievement both at work and in theireveryday lives. Furthermore, individuals and organizations backed up by health exert a positive influence intheir families and communities. In this way, we are confident that we can contribute to society through ourbusinesses and thus contribute to realizing KAITEKI.
As for the second issue, respect for human rights and promoting diversity, we want the MCC Group to be
an organization in which all employees respect one other’s diverse individuality and values, including nationality,
race, religion, age, gender, gender identity, sexual orientation and disability or lack thereof, and together fulfill
the Group’s corporate social responsibility while enabling every individual in the Group to exercise their abilities
to the fullest. Aiming to lay the foundations and create support to enable diverse human resources to thrive,
we are further developing our existing initiatives related to respect for human rights, hiring people with disabilities, enabling women to succeed, and providing support for child care and nursing care. At the same time, we
are working to create environments that are accommodating of all employees, regardless of nationality, and tofoster understanding and provide support for LGBT individuals and other sexual minorities.
The third issue is effective placement and human resource development, an area in which we aim to enable
every employee to work with enthusiasm, motivation and initiative and to exercise their abilities to the fullest.
Specifically, we are engaging in personnel placement on a Group-wide basis to meet the demands created by
globalization. We have also adopted a career development program—a system for medium- to long-term
strategic personnel placement and development with the aim of encouraging employees to pursue self-directed
growth. Going forward, based on this program, while clearly ­delineating the roles of the Group in Japan andthe regional headquarters, we will advance effective placement and human resource development across the
MCC Group as a whole.

Aiming for “Sustainable Engagement”: The MCC & me Survey
In fiscal 2019, MCC Group launched the MCC & me Survey, an engagement survey replacing the Employee
Perception Surveys implemented in years past, on a global basis. Approximately 34,000 Group employees
answered the survey, for a response rate of 79%.
We aim to use the survey to understand the state of “sustainable engagement”—a term we use to refer to theintensity of employees’ connection to their organization, marked by committed effort to achieve goals (being
engaged) in environments that support productivity (being enabled) and maintain personal well-being (feelingenergized). We believe that understanding and bolstering sustainable engagement will help enhance employee
performance and thereby improve customer satisfaction and business performance.

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Together with Stakeholders

KAITEKI Health and Productivity Management

Basic Policy
Mitsubishi Chemical (MCC) is implementing KAITEKI Health and Productivity Management, aiming to ensurethat every employee can thrive and find purpose and satisfaction in their job while leading a rich life, striking agood balance between work and private life. We have defined what KAITEKI Health and Productivity Management is and set out initiatives and goals in this area under a name that incorporates our ideal of KAITEKI—
KAITEKI Health and Productivity Management. Accordingly, we are strategically investing management
resources in order to maximize the performance of one of the greatest assets of any company—the people
who work there—from the perspective of health.
KAITEKI Health and Productivity Management
Productivity
and creativity
improvement

Activatedorganization

Satisfaction
improvement
Reputation
improvement

Compliance

Maximize the performance of employees
Create a company and workplaces where diverse human resources can work with cheer and vigor
Health support

Workstyle reforms

Self wellness• Health awareness• Proper lifestyles• Prevention of occupational injuries• Creation of safe and healthy workplaces

Workplace wellness
Family wellness• Strengthen management• Work process revision• Diverse, flexible ways of working• Effective capability development• Proper management of working hours

ICT/IoT utilization
Community and social wellness
We are advancing KAITEKI Health and Productivity Management, based on health support and workstylereforms, by carrying out specific initiatives and measures based on the three perspectives shown below.

Self Wellness
Being Healthy Ourselves
In line with the principle that the primary responsibility for one’s health lies with oneself and to ensurethat we can work effectively, we will each take the initiative to manage our own well-being.
Workplace Wellness
Creating Healthy Workplaces
We will respect the individuality of the people we work with and support one another in order to build
vibrant, creative workplaces by improving workplace environments and work processes.
Social Wellness
Building Healthy Families and Nurturing Our Ties to the Community
By enhancing self wellness and workplace wellness, we will aim to broadly contribute to society as
members of our respective families and communities.
We have established a vitality index, workstyle index, and health index as key performance indicators (KPIs) of
the progress and results of the initiatives and measures based on the above three perspectives. We use these
KPIs to implement PDCA cycles.
We are also working with our health insurance union and labor unions while promoting information sharing
and coordination with Group companies.
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Health Support
N Health Support Measures to Realize KAITEKI Health and Productivity Management
MCC positions all health support measures, including those required by law, as KAITEKI Health and Productivity Management initiatives. We are implementing a variety of measures to realize self wellness, workplace
wellness and social wellness. Specifically, we maintain a health and safety management system and provide
health check-ups and stress check tests in compliance with relevant laws and regulations. While duly respecting
our employees’ privacy, we actively support the maintenance and improvement of their physical and mental
health. Going forward, we will coordinate and collaborate with the health insurance union to more accurately
grasp challenges to employee and workplace wellness and promote more effective and efficient measures inline with such challenges as we aim to realize KAITEKI from the perspective of health.

N Raising Health Awareness and Improving Lifestyle Habits
Collaborative Health Initiatives
MCC proactively coordinates and collaborates with its health insurance union, working to raise the healthawareness of employees and their families and carry out effective, efficient health promotion efforts based on
the clear division of roles and good workplace environments. Going forward, we will use special health guidance to help prevent lifestyle-related disease, provide follow-up guidance by sharing health check-up data thatis available to both employees and the company, and encourage at-risk employees to receive consultations at
medical institutions.

N Creation of Safe and Healthy Workplaces
Second-Hand Smoke Countermeasures
To reduce second-hand smoke in work environments as much as possible and create workplaces where all
employees can work in good health and with peace of mind, we banned smoking by employees at all company workplaces, including the head office and branches, effective April 1, 2020. At the same time, in consideration of the health of individuals from outside the company, local residents and employees’ families, we havebanned smoking during work hours even when employees are working outside company premises. In addition,
we continue to provide support services for employees aiming to quit smoking, which we introduced before
the ban on smoking during work hours, and have in place an antismoking support system.

N Occupational Accident Countermeasures Focusing on Human Factors
KAITEKI Exercises and Safety Fitness Tests
In Japan and within the company, falls are one of the most frequently occurring causes of injury. We have madecompany-wide efforts to prevent such falls, including improving facilities, revising work practices and implementing
various forms of training, but these initiatives have not reduced the number of injuries caused by falls.
To address this problem, in addition to existing measures, we have begun focusing on human factors, namely
physical strength and dexterity. Specifically, we are advancing fall-prevention physical training as part of
KAITEKI exercises and carrying out safety fitness tests to assess employees’ fall risk. Beginning in fiscal 2017,
we steadily began such initiatives across the company. Medical interviews over the ensuing three years
through fiscal 2019 found that the number of times employees reported having fallen in the past year had
declined, and approximately 65% of employees showed improvement in their fitness test results. In fiscal
2020, we have been working on exercise-related tools, such as videos, for the global Group and diverse
employees to accelerate the expansion of initiatives at Group companies in and outside Japan. Through suchmeasures, we are working to help employees of all ages, throughout the MCC Group, develop the physicalstrength and skills to prevent falls.
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Together with Stakeholders

KAITEKI Health and Productivity Management

Workstyle Reforms
N Work Reform
By achieving radical innovations at the workplace level under the leadership of on-site managers, we are
eliminating inefficiencies and freeing up time. By doing so, we aim to pursue more value-creating work andimprove work-life balance. The corporate function domains, such as human resources and administration,
publish guidelines for running meetings and preparing documents and e-mails. At the same time, we aresupporting such work reforms by providing enhanced IT communication tools. We are advancing work
­reforms in coordination with the UP!20 company-wide productivity improvement initiative.
N Proper Management of Working Hours
As part of workstyle reforms under KAITEKI Health and Productivity Management and to prevent excessive
working hours and ensure compliance, MCC is working to appropriately manage working hours.
Eliminating Excessive Working Hours and Increasing the Paid Vacation Usage Rate
To accurately track actual working hours, our attendance system records when employees log on and off thecomputers they use. This helps prevent discrepancies between actual and reported working hours.
We are also implementing awareness-raising activities, such as presentations for managers about the proper
management of working hours, aimed at reducing overtime through self-directed work improvement in eachdepartment.
Furthermore, we are working to make it easier for employees to take time off using such programs as therefresh leave system1 and by setting planned annual days off.2 Furthermore, to support employees’­self-directed social contribution efforts, we have established a volunteer leave system (up to five days per year)
and donor leave system (as many days as needed).
1 Employees who take two or more consecutive annual paid vacation days can receive one additional day off on the following business day
once a year (up to three days a year for employees who are 30, 35, 40, 45, 50, or 55 years old as of April 1 of said year).
2 A system that makes it easier for daytime employees to use their annual paid vacation by designating certain days for everyone in thecompany to take off at once. Up to three days per year.

Between-Shift Intervals
To help ensure that employees get adequate rest and do not begin a new day before recovering from thefatigue of the previous, and to avoid health risks stemming from overwork as a result of long working hours,
we have established the Between-Shift Interval Guidelines. These guidelines recommend that employees try
to secure an interval of at least 11 hours between the time they finish work one day and begin work the next.
We have also made it easy to check if employees have secured this interval on their attendance charts.

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N Promoting Flexible Workstyles
Remote Work System
As part of efforts to enable employees to work more productively, we have introduced a remote work system.
Eligibility for this system is not limited to employees engaged in child care or nursing care; all daytime employees can use the system. Previously, use of this system was capped at two days a week, but we removed thislimit in October 2020 for greater flexibility. In addition to their regular workplaces or homes, employees canuse satellite office spaces contracted by the company.
Overview of Leave Systems
MCC has established the following leave systems to enable employees to balance their work and private lives.

Main Leave Systems (Besides Child Care and Nursing Care Leave)
Leave to accompany a spouse on overseas assignment; volunteer leave with the Japan Overseas
Cooperation Volunteers; fertility treatment leave
Livelihood Support Leave
Employees can accumulate up to 40 expired annual paid vacation days (which are valid for two years
after being granted) as days they can use under the livelihood support leave system. These days canbe used by employees if they are ill or injured, pregnant, engaged in nursing or child care, undergoingfertility treatment, victims of a natural disaster or volunteering.
Principal Special Types of Time Off
Bereavement/memorial service leave; marriage leave; menstrual leave; leave for employees directly
affected by or unable to get to work due to a natural disaster; volunteer leave; donor leave; workplacetransfer leave; home visit leave; refresh leave; jury duty leave; public service leave; maternity leave;paternity leave; nursing care leave

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Together with Stakeholders

Respect for Human Rights and the Development of Diversity

Basic Policy
Mitsubishi Chemical (MCC) regards respect for human rights as the basis of its management and the­development of diversity as part of its management strategy. MCC has established its Basic Policy on­Respect for Human Rights and the Development of Diversity to focus efforts on these issues.

Basic Policy on Respect for Human Rights and the Development of Diversity
Within the MCC Group, all employees shall respect one another’s diverse individuality and values,
including nationality, race, religious beliefs, age, gender, gender identity, sexual orientation and disability or lack thereof. In this way, we aim to enable every individual to develop their abilities to the fullest
and to achieve sustainable growth by creating new value for society.
Respect for Human Rights
In line with the Mitsubishi Chemical Holdings Group Charter of Corporate Behavior, we shall respect
the dignity and rights of all people and shall not unfairly discriminate under any circumstances.
­Furthermore, each employee shall endeavor to correctly understand human rights and related issues
and help create workplaces that realize KAITEKI and are free of discrimination and harassment.
Developing Diversity
In line with the Mitsubishi Chemical Holdings Group Charter of Corporate Behavior, we shall build­organizations that take strength from diversity, in which each individual is aware of their role, strives toenhance their abilities as needed, and utilizes said abilities to the fullest to contribute to the creation of
KAITEKI value. Furthermore, we shall endeavor to balance our work and personal lives and, by­deepening dialogue and mutual understanding, create a workplace culture that is rich in drive andenergy and that realizes KAITEKI.

To promote respect for human rights and diversity on a company-wide basis, we have established the Human
Rights and Diversity Development Committee, chaired by the President and comprising the chief operating
officer of each business domain and corporate function domains. The members of this committee regularly
monitor performance and discuss new initiatives as they implement PDCA cycles.

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Respect for Human Rights
The Mitsubishi Chemical Holdings Group has established the Mitsubishi Chemical Holdings Group Global
Policy on Respecting Human Rights, Employment and Labor. In light of the Universal Declaration of Human
Rights and United Nations Global Compact, MCC has adopted this policy as its action guidelines.
In addition to implementing the necessary employee education to ensure respect for individual dignity andrights, MCC forbids child labor and forced labor and strives to maintain proper working conditions. Throughthese efforts, MCC seeks to fulfill its corporate social responsibility to ensure that the rights of all its stakeholders are respected. We have also begun to create a human rights due diligence system based on the United
Nations Guiding Principles on Business and Human Rights. Currently, we are preparing to publish an MCC
Group human rights policy.
Within the company, we maintain systems for dealing with human rights issues appropriately. Specifically, we
are implementing a variety of educational and other initiatives, including rank-specific training and e-learning,
aimed at deepening awareness and knowledge of human rights. In addition, we are promulgating a clear
message of zero tolerance for harassment while working to improve awareness and mindsets. At each plant,
we have appointed harassment counselors, to whom employees can go to seek help or guidance related toharassment or human rights issues.
In fiscal 2019, as part of initiatives to deepen understanding of gender diversity in particular, we implemented
e-learning for all MCC employees. We also began applying benefit and support systems to employees withsame-sex partners on an equal basis to those with legally recognized spouses.

K Fiscal 2019 Human-Rights Related Training
Human rights
slogans1

In-house training
Sessions

Participants

Slogans submitted

Mitsubishi Chemical

76

3,882

3,408

Group companies

246

6,891

7,493

Total

322

10,773

10,901

1 To promote employee awareness of human rights, every summer we ask employees and their families to submit
human rights-related slogans.

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Together with Stakeholders

Respect for Human Rights and the Development of Diversity

Enabling Women to Succeed
MCC is working to develop female managers, provide career development support for female employees,
implement workstyle reforms and develop its workplace culture through a range of initiatives.
The Mitsubishi Chemical Women’s Council, launched in 2018, is a company-wide project sponsored by thepresident and aimed at promoting the success of women. The Council works to provide career development
support to women by holding career workshops for specific job types, providing opportunities for participants
to network and consider their careers as well as their own development. In addition, the Council has held
dialogues with top management as part of efforts to understand the challenges faced by female employees.
Furthermore, we send employees to training programs organized by external organizations and offer training
on various specific themes that is open to all. Through such initiatives, we are providing opportunities for
employees to expand their perspectives and enhance their skills.
MCC is providing support to enable its female employees to achieve greater success as part of efforts toutilize its people’s capabilities in line with its basic policy on promoting diversity. At the same time, we arebuilding a foundation to ensure that women and all employees can succeed in their own ways by providing
accurate evaluations and increasing awareness of flexible workstyles.
We have formulated the action plan below based on the Act on Promotion of Women’s Participation andAdvancement in the Workplace.

MCC’s Action Plan
We have established the following action plan to support the development and success of female
employees.
1. Plan Duration
April 1, 2017–March 31, 2021 (four years)
2. Numerical Target
Double the percentage of management positions (line manager or equivalent and above) held by
women from the 2017 level
3. Initiatives(1) Implement systematic career development support for female employees(2) Develop female managers(3) Enhance educational opportunities for motivated employees(4) Implement workstyle reforms and develop workplace culture

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Balancing Work and Home Lives
Enabling every employee to utilize their abilities and balance their work and home lives is essential to promoting
diversity. MCC supports its employees with numerous systems designed to meet the needs attendant toa range of life stages.
N Initiatives Related to Child Care
We have created an environment that supports employees with children from a long-term perspective to makeit easier to work while raising children. To help avoid difficulties related to taking and returning from child careleave, we have made pre-child care leave (or for women, pre-maternity leave) meetings between employees
and their line managers mandatory and, to facilitate an earlier return from child care leave, set up a “concierge
service” to assist parents in finding and securing spots in daycare facilities. Furthermore, to alleviate concerns
about difficulties securing such a spot, ineligibility for certain support systems after children begin their fourth
grade school year, or finding a place to care for children during long school breaks, we have partnered withexternal daycare facilities to secure a number of places for the company. Through such measures, we havecreated an environment that helps employees return to work with confidence.
To facilitate fathers’ active participation in child care, we have extended the period during which they can takepaternity leave and allowed the use of expired annual paid vacation days for child care. We are also working
to foster a corporate culture that encourages the use of child care leave by such means as providing awarenessraising videos that expecting fathers and their supervisors can watch together and distributing handbooks onbalancing work and child care.
In fiscal 2019, for Family Day at the head office and nearby sites, we held workplace tours and other events,
helping to boost employee motivation and understanding at workplaces of employee’s home circumstances.
We have formulated the action plan below based on the Act for the Promotion of Measures to Support the
Nurturing of the Next Generation.

MCC’s Action Plan
To facilitate balanced work and personal lives for employees and enable all employees to exercise theirabilities by creating accommodating work environments, we have established the following action plan.
1. Plan Duration
April 1, 2017–March 31, 2021 (four years)
2. Targets and Initiatives
Target 1: Create environments that facilitate the success of employees engaged in child care• Monitor the usage of systems to support employees in balancing their work and personal lives aswell as the results of related initiatives and share findings broadly with employees• Provide support to help employees continue working and return to work smoothly and promptly
after child care leave
Target 2: Develop a workplace culture that is supportive of employees balancing work and home
responsibilities• Foster increased understanding of company systems• Respect employees’ diverse values and workstyles while creating a workplace culture in which each
employee recognizes their role and can exercise their abilities to the fullest• Reduce working hours• Encourage the use of paid leave
Target 3: Carry out other initiatives to support the development of the next generation• Provide opportunities for children to come into contact with workplaces, such as plant tours• Foster understanding of the meaning of work among young people and provide work experience
opportunities
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Respect for Human Rights and the Development of Diversity
N Initiatives Related to Nursing Care
Aiming to eliminate retirement due to the need to provide nursing care for a family member, MCC works toraise awareness of the importance of advance preparation for providing nursing care by offering handbooks
about nursing care and holding seminars. At the same time, we are creating environments that allow employees to work with confidence by promoting awareness of available work support, allowances and subsidies
and providing individual consultations with experts.
We also support networking among employees facing the need to provide nursing care by providing the
Nursing Care Cafe as a place for dialogue.
From fiscal 2020, we are working to make the information employees need readily available and accessible
whenever they need it by, for example, publishing a video on measures employees should take when theneed to provide nursing care arises and creating an electronic version of the nursing care handbook. We arealso reinforcing the internal consultation system, centered on advisors specializing in measures to prevent theneed for retirement to provide nursing care, and working to raise the quality of nursing care support services.

Handbook on balancing work andnursing care (24 pages)

The “Tomonin” mark, created by the Ministry of Health,Labour and Welfare, can be used by companies thatstrive to ensure workplace environments that enable
employees to balance work and nursing care. MCC
has been certified to use this mark.

N Main Systems to Support Employees in Balancing Their Work and Personal Lives
I Temporary retirement for child care: Until the April 30 after the child’s third birthday
I Reduced work hours for child care: Until the end of the child’s third grade school year
I Injury/illness nursing care leave: Up to 10 days per year (can be used in half-day units)
I Temporary retirement for family care: One year per qualifying family member
I Reduced working hours for nursing care: Maximum two-hour reduction in working hours per day(as long as necessary)‌Reduced work days for nursing care: Maximum five-day reduction in working days per monthI(as long as necessary)
I Nursing care leave: Up to 20 days per year (can be used in half-day units)
I Livelihood support leave (system for accumulating expired annual paid leave): Can be used for recovery
from illness or injury, child care, nursing care, etc.
I Declaration of desired place of work: Allows employees to specify their desired place of work to accommodate family circumstances
I Temporary retirement for spouse’s overseas service: Allows employees to take leave of up to three years toaccompany their spouse on an overseas work assignment
I Menstrual leave: Allows employees to take leave of up to a total of one year for advanced fertility treatmentthat meets certain standards
I Telework system for employees whose work is suitable for telecommuting
I Day care cost allowance
I Day care information service
I Partnerships with nursing care facilities
I Nursing care subsidies and allowances
I Home care worker allowanceI Establishment of external nursing care consultation points
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Hiring People with Disabilities
MCC’s basic policy is to ensure that the individuality of every employee, disabled or not, is respected and that
all employees can thrive. In accordance with this policy, MCC is advancing initiatives to promote the hiring ofpeople with disabilities and enable them to exercise their abilities. Each business site partners with special-needs
schools and institutions to proactively provide work experience opportunities. We also strive to develop working environments that are accommodating to employees with disabilities and seek to retain such employees.
As of June 2020, 2.28% of MCC employees were people with disabilities.
In 1993, we established the special subsidiary Kasei Frontier Service, Inc., which mainly provides PC data
entry and printing services, to help people with disabilities achieve growth by taking on work responsibilities
and thus contribute to society. As of June 2020, said company had 78 employees with disabilities (of 108
total employees).
In April 2020, MCC signed on to The Valuable 500, an international initiative aimed at promoting disability inclusion. The entire Group, including Kasei Frontier Service, will continue to promote the employment of people withdisabilities as it strives to meet the expectations and requirements of today’s increasingly diverse society.

Sharing the Dignity and Fulfillment of Work while Contributing to Society
Kasei Frontier Service has many employees with disabilities
of varying types and degrees, as well as employees without.
We are truly a company where diverse human resources areable to work with vigor. Based on our corporate philosophy
of “Brighten the world at your corner,” we focus on carryingout our work with care and sincerity at all our workplaces.
In addition to developing diversity, we strive to createan ­inclusive corporate culture of mutual assistance, trust
and respect.
Going forward, while sharing the value and fulfillment of workwith everyone at Kasei Frontier Service, we will meet theneeds of the MCC Group and a wide range of customers as
we strive to contribute to the good of people and society.

Kouichi Ishida
Managing Director
Kasei Frontier Service, Inc.

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Together with Stakeholders

Effective Placement and Human Resource Development

Basic Policy
At Mitsubishi Chemical (MCC), we aim to achieve our vision—realizing KAITEKI. To that end, we strive tosecure, retain and effectively place human resources who are understanding of diverse values, identify issues
on their own, and involve those around them as they continually take on new challenges.

Hiring
MCC does not hire individuals younger than 18 years old and practices fair, non-discriminatory hiring.
Specifically, we take thoroughgoing measures to enforce a stance of respecting human rights such that mattersunrelated to the applicant’s suitability and capabilities are neither asked about nor investigated in the course of
the hiring process, including in interviews, and that such matters do not factor into hiring decisions. Unrelated
matters include nationality, religion, gender, gender identity, sexual orientation, disability and pregnancy.
We strive to ensure fairness in hiring new graduates, regardless of where the applicant lives or when they
graduate, by such means as holding hiring orientations and interviews online and hiring in both the spring andautumn. Furthermore, by offering scholarship programs and internships for which students can receive college
credit, we provide work experience opportunities and support the development and research activities of thenext generation.
Furthermore, to secure human resources with experience at other companies and specialized knowledge, we
also focus efforts on mid-career hiring. By hiring human resources with varying backgrounds and values, we
aim to further bolster diversity and our businesses.

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Effective Placement and Human Resource Development
We aim to realize optimal personnel placement and human resource development on a Group-wide basis tomeet the demands created by changes in the business environment and globalization while encouraging
employees to pursue self-directed growth.
“Utilizing people’s capabilities” is a component of MCC’s fundamental management policies. We carry out
management with the aim of empowering every Group member to work with enthusiasm, motivation andinitiative, allowing each individual to exercise their abilities to the fullest while promoting diversity and viewing
the diversity of human resources as a strength. With employees thinking ever more autonomously about theirown careers and working lives lengthening, we are working to proactively provide career development support
so that every individual is able to flexibly adapt to changes in their environment and find professional fulfillment
in their work.
As a part of career development support measures, we conduct career design interviews. Such interviews
involve an employee and their supervisor discussing the employee’s current situation and how said employeeplans to grow over the medium to long term. This approach is designed to help employees take the initiativeand grow. Each employee works to identify their own strengths and consider for themselves how they canhone and utilize those strengths to, ultimately, contribute to society. At the same time, the company systematically examines ways to utilize and enhance each individual’s strengths in order to achieve corporate growth.
In recognition of these initiatives, MCC received the Innovation Prize in the Ministry of Health, Labour andWelfare’s Good Career Company Awards 2019.

Across the entire MCC Group, including overseas sites, we are working to effectively place and develop
promising human resources in each region1 and the next generation of executive management candidates for
the MCC Group.
With regard to promising human resources in each region, the regional headquarters established in April 2017
implement systematic human resource development and placement within their respective regions. At thesame time, regarding the next generation of executive management candidates, we are working with theregional headquarters to implement unified global management, identifying key positions and preparing
succession plans for them as well as monitoring the placement of management candidates who are expected
to fill such positions in the future. The company-wide HR Committee convenes on a regular basis to manage
such efforts. Furthermore, we are applying these initiatives across the entire MCC Group, including overseas
companies, working to implement more systematic and effective human resource development and placement.
1 Refers to the four regions that the MCC Group has designated as its units for global business development, namely the Americas; Europe,
the Middle East and Africa; the ASEAN region, India and Australia; and China and Hong Kong.

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Together with Stakeholders

Effective Placement and Human Resource Development

Human Resource Development System
MCC believes that on-the-job training—learning through actual, on-site work experience—is the foundation of
employee growth. We expect on-the-job training to lead employees to grow autonomously through the process ofidentifying issues in the course of their ordinary work and solving said issues with support from those around them.
To support and reinforce this process, we have introduced measures that enable employees to proactively
design their own careers. We also maintain an off-the-job training program that enables employees to learn
how to fulfill their expected roles.
Furthermore, we support both human resource development and organizational development. In doing so, we
aim to help strengthen individuals and the organization, by both supporting the individual efforts of employees
to develop their abilities by, for example, acquiring the skills needed to carry out their duties, and by increasing
engagement. In this way, we seek to build win-win relationships that empower each employee to autonomously
learn and work with vigor.

Interview Skill Training

Third Year Employee Training

Engagement Survey

Individual Advice to Each Division

Mentor Training

Diversty (Human Rights) Promotion

Management
Basic Training I & II

Career Design Workshop(for employees
around 40 y/o)

Mid-Level
Staff

Off-Site/Language/Official Certificates

Management PracticeTraining I & II

New Manager Training

Younger
Staff

Survey/Training

New Positional Manager Training

Short-Term Overseas Training

Manager

Positional
Manager

In addition to the human resource development initiatives implemented by the Human Resources Department,each business department implements measures tailored to its unique characteristics. For example, technicaldepartments carry out uniform education and training through internal projects, aiming to develop engineers
with the abilities to work in a wide range of fields and advanced professional safety skills. Such initiatives at thebusiness department level are a tremendously important part of company-wide human resource development.

Second Year Employee Training

Categories ofTraining

New Employee Training

Hierarchical/Basic

Digital/IT

Enhancement of Individuals

GlobalSupport Learning

CareerDesignDiversity/
Contact

Organization
Development

Enhancement of Organization/Improvement of Engagement

At the same time, Mitsubishi Chemical Holdings (MCHC) holds such programs as Group New Executive
Training. The MCC Group actively sends its employees to participate in these programs, which offer­opportunities for them to develop themselves through friendly competition within the MCHC Group.

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Global Executive Development
The MCC Group is forcefully globalizing its management structure. To encourage the development of thehuman resources needed to handle global management, we are carrying out a range of training and otherprograms in and outside Japan.
The development of globally oriented management personnel requires the cultivation of global mindsets andamassing of global experience. To this end, we offer programs to develop global mindsets in Japan as well as
overseas dispatch programs, including Short-Term Overseas Training, in which participants work to solve
problems in a multicultural environment. By providing opportunities to gain global experience tailored to thespecific level of each individual, we are working to develop globally oriented management personnel.
Furthermore, in April 2019, we launched “Experience JAPAN,” a program through which non-Japaneseemployees of Group companies at overseas sites can come to work in Japan for about a year. By providing
work experience in Japan, this program enables such employees to learn about Japanese culture, the particular characteristics of Japanese companies and Mitsubishi Chemical while promoting mutual understanding
between such employees and those based in Japan, fostering a sense of unity across the MCC Group.

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Together with Stakeholders

Labor-Management Relations

Labor-Management Relations Based on Mutual Trust
In line with the Mitsubishi Chemical Holdings Group Charter of Corporate Behavior, Mitsubishi Chemical(MCC) respects employees’ rights, including freedom of association and the right to collective bargaining, andstrives to build sound relations with employees through close dialogue.
Mitsubishi Chemical is working to build labor-management relations based on mutual trust with its employees’labor union through such means as maintaining close ongoing dialogue and holding regular biannual management meetings (in spring and autumn) with the labor union in line with a labor agreement to exchange opinions.

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Together with Communities and Society

Basic Policy
In line with the Mitsubishi Chemical Holdings Group Corporate Citizenship Activities Policy, the Mitsubishi
Chemical (MCC) Group conducts corporate citizenship activities in such areas as creating an inclusive society,fostering the development of the next generation, protecting the global environment, communicating with local
communities and disaster support. Since fiscal 2019, we also focus efforts on initiatives to address ocean
plastic issues.
N Mitsubishi Chemical Holdings Group Corporate Citizenship Activities Policy
The Mitsubishi Chemical Holdings (MCHC) Group strives to deepen its understanding of the culture andcustoms of the communities and countries where it operates and to contribute to society through its­businesses. Furthermore, as a good corporate citizen, the MCHC Group works to meet the demands and­expectations of society and communities and realize KAITEKI.

Approach• Conduct corporate citizenship activities in communities and countries where we operate from aviewpoint of sustainability (Green), health, and comfort.
• Deepen our understanding of social needs through communication with various stakeholders andother organizations.
• Conduct activities together with employees and encourage their positive participation.
• Support employees in their volunteer activities.

Corporate Citizenship Activities
N Creating an Inclusive Society
In April 2017, MCC signed an agreement to become an official
partner of the Japanese Para-Sports Association (JPSA), as it
agrees with JPSA’s mission of creating a vibrant, inclusive society.

G Employees at
the JPSA’s
Japan ParaChampionships
in July 2019
A guest trying
Boccia on Family
Day in July 2019(head office)G

At JPSA sporting events, employees volunteer (operating
reception, setting up facilities, etc.) in addition to watching andcheering the matches. We also hold internal Boccia competitions and provide an opportunity for employee’s family members to experience the sport on Family Day, when we invite
them to our workplaces. Through such efforts, we actively
promote understanding of parasports among employees. By
helping to further spread and develop such sports, MCC seeks
to contribute to the realization of an inclusive society that is
healthy, both physically and mentally, and where each person’s
individuality is respected.
N Fostering the Development of the Next Generation

The MCC Group holds chemistry experiment workshops at various locations, aiming to spark an interest inchemistry and science among children, who represent the next generation. Furthermore, we perform chemistry
experiment shows for children at events held by the Yume Kagaku-21 Committee. (The Yume Kagaku-21
Committee comprises the Chemical Society of Japan; Society of Chemical Engineers, Japan; Japan Association
for Chemical Innovation; and Japan Chemical Industry Association.)

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Together with Stakeholders

Together with Communities and Society
N Protecting the Global Environment and Communicating with Local Communities
MCC works to protect the global environment by engaging in woodland conservation and clean-up activities
of local areas and waterfronts near its operating sites. We also proactively work to maintain communication
with local communities.
Woodland Conservation Activities
At the Okayama Plant, to protect and nurture the Takahashi River system, from which the plant draws water
for industrial use, we work with an NPO to implement woodland conservation activities in an upstream area
known as Takahashi Utsukushii Mori (“Beautiful Forest of the Takahashi District”). Similarly, in Tokyo, we
participate in Tokyo Greenship Action, under which the Tokyo Metropolitan Government, NPOs and companies work together. Through such efforts, we carry out woodland conservation activities in the areas where the
MCC Group operates.
Communicating with Local Communities
We implement regular clean-up activities in the areas around our operating sites. Furthermore, we participate
in local events, invite local residents to events at plants, and open our sports fields and athletic facilities to the
public. We also host tours for students as part of ongoing efforts to communicate with local communities.

April 2019 woodland conservation activities at
Takahashi Utsukushii Mori
(Okayama Plant)

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November 2019 workplace experience event for
students of a nearby junior high school(Shiga Plant)

N Disaster Support
In and outside Japan, MCC provides monetary and material donations to areas affected by natural disasters.
Within Japan, we also actively provide human support to affected areas, including through employee volunteering.
After typhoons Faxai and Hagibis in 2019, we made monetary donations, and Mitsubishi Chemical Cleansui
provided Cleansui Pure Water bottled water.
As part of efforts to support recovery in Japan’s Tohoku region, since 2013, the MCHC Group has held anannual market featuring local specialty products from Iwate, Miyagi and Fukushima prefectures. We also carryout a project in which high school students directly sell products they develop and manufacture themselvesusing locally produced goods at these markets. Going forward, we will continue to support recovery directly
and the recovery initiatives of Tohoku residents.

Addressing Ocean Plastic Issues: Beach and Other Clean-Up Activities Near All Domestic Sites
In line with its vision of realizing KAITEKI—the sustainable well-being of people, society and our planet
Earth—MCC has long contributed to solving social issues through its businesses, for example, throughthe provision of the biodegradable biomass plastic BioPBS™.
At the same time, in light of growing calls for responsible consumption and production, as set forth in
the SDGs, we believe that, in addition to contributing through our businesses, every employee musttake action as part of corporate citizenship activities. As such, the entire company is promoting cleanup activities in coastal and other areas. In fiscal 2019, all of MCC’s domestic locations implemented
clean-up activities along coasts, rivers, lakes and other areas, helping to reduce plastic waste that iswashed out to sea.
In fiscal 2019, a total of 1,160 people took part in these activities (including employees’ families).

Clean-up activities at Waita Beach (Fukuoka Plant)

Nasa Beach, Toushijima (Mie Plant)

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Together with Stakeholders

Company Data (Social)

Employee Composition

Employees Working at Mitsubishi Chemical
By gender

By employment typeOpen endedMale

By age group

12,574

Female29 or younger

2,311

30 to 393,344

40 to 494,407

50 to 59

3,774

60 to 69744

70 to 79

2

13,683Fixed term(rehired retirees, contractors)

825

Other (part-time, etc.)

80

2,014

Total: 14,588
As of April 2020

Employees Employed by Mitsubishi Chemical
By gender

By employer

Mitsubishi Chemical
Male

Average age

14,382

15,637

Group companies

43.3
3,896

Female2,641
Auxiliary organizations

Total: 18,278
As of April 2020

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Managers Employed by Mitsubishi Chemical
Male

Total Working Hours

4,847 (93.3%)

FemaleAverage total annual
working hours

2,008

349 (6.7%)

Total

5,196

Average monthly
overtime pay¥51,055

As of April 2020

Year ended March 31, 2020

New Hires to Mitsubishi Chemical
New Graduate Hires

Paid Time Off Usage

Professional
career group
Male

Female176 (92.6%)

Career group

72.6%

188 (84.7%)

14 (7.4%)

Total

Paid time off usage rate

Employees
who used maternity leave

75

Male

52

Female145

34 (15.3%)

190

222

Employees
who usedchild care leave

Year ended March 31, 2020 (except for the paid time off usage
rate, which is for the year ended December 31, 2019)

Mid-Career Hires
Professional
career group

Career group
Management positions

Employee Union Membership Rate

68.1% (As of March 31, 2020)
Male

148 (75.5%)

99 (80.5%)

Female48 (24.5%)

24 (19.5%)

196

123

Total

Individuals hired from April 2, 2019 to April 1, 2020

Employment of People with Disabilities
Full-time positions held byemployees with disabilities

426

Total number of employees
used to calculatethe ­percentage of
employees with disabilities

18,711.5

Percentage of employeeswith disabilities

2.28%

As of June 1, 2020

Mitsubishi Chemical   Sustainability Report 202091About Mitsubishi Chemical

Company Overviews
The current Mitsubishi Chemical Corporation was formed on April 1, 2017 through a merger with Mitsubishi
Plastics, Inc. and Mitsubishi Rayon Co., Ltd. As of March 2020, Mitsubishi Chemical Corporation and its 314
Group companies operate in business areas that include performance products and industrial materials.

Company Name

Mitsubishi Chemical Corporation

Address

Palace Bldg., 1-1 Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8251, JapanFoundedAugust 31, 1933

Established

April 1, 2017

Paid-in capital¥53,229 million

Businesses

Performance products, industrial materials and others.

Sales revenue (consolidated)¥2,338.0 billion (fiscal 2019)

Employees (consolidated)

40,776 (as of March 31, 2020)

As of April 1, 2020

Business Domains
By providing solutions to issues related to people, society and the Earth, Mitsubishi Chemical is accelerating
the growth of its businesses. As challenges in such areas as the intensification of climate change, uneven
distribution of water resources, growing and graying populations, and food and agriculture continue to emerge
and evolve, the company’s business domains related to each will work together to create new value andprovide comprehensive solutions.

Environmental and Social Issues Mitsubishi Chemical Is Addressing• Efficient use of resources and energy• Climate change (reducing CO2)
• Securing clean water resources• Food and agriculture problems• Health maintenance and disease treatment• Developing a smart society

Business Domains• Carbon Chemicals• Carbon• MMA• Advanced Polymers• High Performance Chemicals

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Mitsubishi Chemical   Sustainability Report 2020

• Electronics & Displays• High Performance Films• Environment & Living Solutions• Advanced Moldings & Composites• New Energyhttps://www.m-chemical.co.jp/en

P r inte d i n J a p a n