2012English version

2012
English version<Contact>

Corporate Communications, Dept.
DIC Building, 7-20, Nihonbashi 3-Chome, Chuo-ku, Tokyo 103-8233, Japan
TEL: +81-3-5203-7782 FAX:81-3-3273-7586

http://www.dic-global.com/en/csr/

This booklet uses FSC certified paper and is printed by thewaterless printing method which does not require dampening
water including solvents.
Consideration is given to universal color design so as to convey
information precisely to as many people as possible.

The DIC Group’s Corporate Social Responsibility ProgramWEB

http://www.dic-global.com/en/csr/

The DIC Group launched its corporate social responsibility (CSR) program in the fiscal
year ended March 31, 2008.
In line with the DIC WAY, an articulation of its basic management approach,
DIC has identified fulfilling its responsibilities as a member of society throughits business activities and contributing to the evolution of society as thecornerstones of CSR.
The DIC Group strives to ensure a prompt and accurate grasp of evolving social
imperatives, including global warming and the depletion of natural resources, andrespond with solutions that deliver the value that its stakeholders expect continuously.
The DIC Group pledges to take steps to ensure the DIC WAY Code of Business Conduct,
our standards of conduct to fulfill its responsibilities, into line with the ISO 26000, as wellas to promote CSR initiatives from a broad perspective with the aim of keeping abreast ofchanging perceptions of value.
To guide its efforts to promote CSR as an integral part of its business activities, DIC
formulates annual Groupwide CSR policies. In accordance with it, individual divisions,sites, domestic and overseas subsidiaries are charged with pursuing effective CSR
programs by formulating their own CSR policies.
As a framework for implementing its CSR program in the fiscal year ending March 31,
2013, DIC has developed 10 CSR themes as mentioned below.

System for Promoting CSR
The DIC Group’s system for promoting CSR centers on the Corporate Social Responsibility Committee, whichanswers directly to the president and CEO and is tasked with reporting on the status of CSR themes, as well as withproposing policies and programs for advancing CSR and deliberating matters related to CSR as a vital componentof corporate management. (The Sun Chemical Group has an independent system for promoting CSR.)
Formulation of targets and CSR policies
Submission to the Board of Directors
Evaluation of CSR initiatives
Corporate Social
Responsibility Committee

Board of Directors

As of April 2012

President and CEO
Product divisions (7) + Sales administrative divisions (3)Corporate
Communications Dept.

General managers of sites, presidents of subsidiaries

Promotion of CSR(coordination and support)
Education
Secretariat for Corporate Social
Responsibility Committee

ComplianceBCM

CSR themes

Information security
Environment, Safety, Health and Quality
Human resources management
Supply chain management
Business models focused on customer satisfaction
New technology development and value creation◎ The details of our CSR activities to be described in "Report on Our CSR Themes"
P19of this report.

Harmony with communities and contributions to society
Communication with stakeholders

Initiatives related to the maintenance andimprovement of internal control systems

Departments responsiblefor implementation(Administrative departments)

CSR Framework and Themes for
the Fiscal Year Ending March 31, 2013
Business models focused on customer satisfaction
New technology development and value creation
Harmony with the community and contributions to society
Communication with stakeholders
Environment, Safety, Health and Quality
Human resources management
Supply chain management

Themes that demonstratedistinctive capabilities(A)
Themes that combine
elements of (A)and (B)

Compliance
BCM
Information security

Basic
themes (B)Outline of the Report
This report has been edited with the aim ofenabling readers to easily understand the CSR
initiatives of the DIC Group. The outline firstcovers the corporate data, top message, andspecial topics pages, followed by activity reports
by CSR theme.

Linkage with Website
The WEB mark ( WEB ) is indicated where
detailed information or data is available on thewebsite.
DIC website

WEB

http://www.dic-global.com/en/

Scope of the Report
DIC and domestic /overseas consolidated groupcompanies are the scope of this report. However, pleaserefer to the below link for the scope of the report on the“Environment, Safety, Health, and Quality”:
WEB http://www.dic-global.com/en/csr/pdf/dic_csr_scope_ja_2012.pdf

Reporting Period
For target domestic companies:
April 1, 2011 to March 31, 2012 (FY 2011)
For target overseas companies:
January 1, 2011 to December 31, 2011 (FY 2011)(Some FY 2012 topics are covered here)

CONTENTS
CSR of the DIC GroupDIC Group, Globally Active and Expanding

2

DIC Top Interview

4

Special Topics

6

Special Topics 1

7

DIC SOLUTION

Contributing to solving social issues throughoriginal product development
Special Topics 2

DIC MISSOIN

10

We prioritize the “security of safety/
environment/health” while maximizing thebenefits of chemical products.

Topics12

Topics 1 Stakeholder dialogue
Topics 2 Efforts in DIC color designs
Topics 3 Aiming to realize biofuel

CSR Activities by the DIC Group

14

Targets and Results of Major RC Activities

16

Corporate Governance18

Report on Our CSR Themes
Compliance

19

IssuedSeptember, 2012 (the nex t repor t will be issued in
September, 2013)

BCM (Business Continuity Management)

20

Information Security

21

Reference Guidelines
I SO26000 : 2010 / Responsible Care CodeEnvironment, Safety, Health, and Quality

22

Human Resources Management

29

About the cover design

Supply Chain Management

32

Business Models to Improve Customer Satisfaction

33

New Technology Development and Value Creation

34

Harmony with the Community and Contribution to Society

36

Communication with Stakeholders

39

Third Party Opinion

41

In order to thoroughly respondto social issues with a global
perspective, we have expressed
the “C”s, which are the initials for
DIC’s management vision “Color& Comfort by Chemistry”, widely
spreading to find seeds and needsof our lives.
* This repor t utilizes a c olor scheme
informed by universal design, which is afocus of DIC Group efforts, to give it aneasy-to-read design.

1

DIC Group, Globally Active and Expanding

Network

The DIC Group has 186 affiliates and is active in a variety ofbusiness operations, including printing inks and synthetic resins, in
64 countries and regions in the world.

EuropeEuropean countries

Sun Chemical Group and 3 other companies
Number of employees
Net salebillion yen
Operating income
billion yen
Main business
Printing Inks & Supplies
Neo Graphic Arts Materials

Asian and Oceanian countries

DIC China, DIC Asia Pacific and 61 other companies
Number of employees
Net salebillion yen
Operating income
billion yen
Main business
Printing Inks & Supplies
Neo Graphic Arts Materials
Synthetic Resins

Corporate Data (As of March 31, 2012)
Registered name:

DIC Corporation

Paid-in capital:

Corporate headquarters: DIC Building, 7-20, Nihonbashi 3-Chome, Chuo-ku,
Tokyo 103-8233, Japan
Date of foundation:

February 15, 1908

Date of incorporation:

March 15, 1937

91.2 billion yen

Number of employees: 3,408 (non-consolidated), 20,455 (consolidated)
Domestic operations:

186 [domestic: 36, overseas: 150, including 84
companies in the Sun Chemical Group]

Business Performance Highlights
Net Sales(Billions of yen)

(Fiscal year)

Operating Income (Billions of yen)

(Fiscal year)

Net Income(Billions of yen)

(Fiscal year)

These graphs have been prepared from the accounts maintained in accordance with the provisions set forth in Japan’ s Companies Act and
Financial Instruments and Exchange Act. In FY 2010, DIC had 157 consolidated subsidiaries and 29 affiliates.

2

Total Assets(Billions of yen)

(Fiscal year)

Main countries:
American countries the United States, Canada, Mexico, Brazil, etc.
European countries Germany, the United Kingdom, the Netherlands, France, etc.
Asian and Oceanian countries China, Thailand, Malaysia, India, Australia, etc.
The sum of the operating incomes by region on page 3 below does
not correspond to that of the operating incomes of all the companies,
as the former includes the canceled amount (¥4 billion)

America
American countries

Sun Chemical Group and 2 other companies
Number of employees
Net salebillion yen
Operating income
billion yen
Main business
Printing Inks & Supplies
Neo Graphic Arts Materials

Japan

DIC, DIC Graphics and 38 other companies
Number of employees
Net salebillion yen
Operating income
billion yen
Main business
Printing Inks & Supplies
Neo Graphic Arts Materials
Synthetic Resins
Chemical Solution Materials

Operations

The DIC Group is a global market leader with printing inks, organic pigments and synthetic resins as itscore businesses. The Group currently classifies its businesses into four operations:

Printing Inks & Supplies Business Operation

Synthetic Resins Business Operation

Printing inks, printing supplies,

Synthetic resins for inks and painting, molding, adhesive and fiber
processing, additives and chemicals

Neo Graphic Arts Materials Business Operation

Chemical Solution Materials Business Operation

Special compounds and colorants, building materials, packing-relatedmaterials, pressure sensitive adhesive materials, plastic molded
products, engineering plastics, membrane and related products

Organic pigments, Imaging and reprographic products,
liquid crystal (LC) materials (TFT, STN)

Breakdown of Sales by Segment
Chemical Solution
Materials

Total:
Synthetic Resins
Neo Graphic Arts
Materials

Breakdown of Sales by Region

billionyen

Percentages of the Number of Employees by Region

Asia/Oceania

OthersTotal:

Americabillionyen

Printing ink & Supplies
EuropeAsia/Oceania

Total:

Japan

Japan

Employees
America

Europe3

DIC TopInterview

The DIC Group’s future as a dynamic
organization starts with the abilityof each and every employee toapproach his or her job with a highlevel of awareness.

I realize that your tenure as president of
DIC began in April 2012, but how do you
evaluate the Company’s performance infiscal year 2011, ended March 31, 2012?

I took the helm at a time of great upheaval.
Fiscal year 2011 was the second under ourcurrent medium-term management plan,
DIC 102, which was formulated to guideus from fiscal year 2010 through fiscal
year 2012. Our operating results during
the period were affected significantly bya surfeit of negative factors, including theGreat East Japan Earthquake and fallingdemand, a consequence of the global
economic slowdown. However, efforts aimed
at laying a solid foundation for future growth
met with a certain degree of success. Brightspots on the business front included therapid growth of thin-film transistor liquid
crystals(TFT LCs) and green pigments forcolor filters used in liquid crystal displays(LCDs). Among encouraging developmentson the production front were the launch ofa global project to expand our production
capacity for polyphenylene sulfide (PPS)
compounds, favored as an alternative tometal materials for many applications,and the expansion of our packaging inks
operations in key emerging economies.

Yoshiyuki Nakanishi
Representative Director,
President and CEO
DIC Corporation

Despite operating in a challenging
environment, you implemented amajor corporate reorganization. What
was the intention of this move?
Effective from April 2012, we abolished
our previous business operation - ledorganization, replacing it with a matrix-likeorganization with product divisions along
the vertical axis and market-based sales
administrative divisions, together with ourexisting Technical Administrative Division
and Production Administrative Division,
along the horizontal axis. This has madeit easier to implement unified strategies
for each of our product groups, thereby
enhancing our ability to provide totalsolutions encompassing sales, technology
and production. The new organization
ref lects three key priorities: “ true
globalization,” encompassing Groupwide
administrative functions and personnel
management; “speed,” namely, the ability
to act swiftly and decisively to market
changes; and “mieruka,” a Japanese term
meaning to elucidate something or render
it clearly visible, the objective of which is toensure awareness of key information andmanagement challenges across the entire
DIC Group.
At t h e e n d of t h e d ay, h oweve r, a norganization is simply a framework. The
success or failure of our businesses
will hinge on our ability to change themindset of each and every employee andto ensure the new organization functions
effectively. Accordingly, I will continue tovisit DIC Group sites to speak directly with
employees with the aim of ensuring thatboth management and employees approach
their responsibilities with the same sense of
purpose.

What is the basic philosophy
behind DIC’s corporate social
responsibility (CSR) program?
Like any company, we are essentiallyan aggregate of individuals. The most
crucial factor behind our CSR program isthus the commitment of our employees
to addressing the demands of society,customers, suppliers and local communities
by continuously honing their sensitivity toissues and enhancing their expertise andability to act.
At the same time, we have a second identity,
defined by the Commercial Code andCorporate Law of Japan, as a corporation.
For this reason, the companies of the
DIC Group must conduct themselves in a
responsible manner, mindful always of theirpositions as global corporate citizens. In
2010, the DIC Group became a participant
in the United Nations Global Compact(UNGC), a move aimed at identifying
how we, as a global manufacturer offine chemicals, could best contribute tosustainable growth on a global scale, and atstrengthening our reputation as a company
with integrity.
Conscious always of our position as a
global corporate citizen, we will work to
reinforce corporate governance Groupwide
and to promote the dynamic expansionof our business activities with the goalof providing solutions that draw on ourcapabilities as a manufacturer of finechemicals. Our enduring objective is toremain a vibrant entity that inspires a senseof pride in employees and is welcomed by
the communities in which we operate.

How will DIC help addresssocial and environmental
challenges going forward?
As a manufacturer of fine chemicals, we see
our ultimate purpose as being to provide
products that are indispensible to daily lifeand modern society. At the same time, we
strive to create value by developing new andadvanced products that reduce the impactof our business on the environment andprovide ever-greater levels of convenienceand comfort. Our capacity for creating suchvalue depends on our ability to ensuresocial responsibility in everything we do. To
this end, we recognize Responsible Care asa basic management precept. Responsible
Care encompasses both activities carriedout by companies that manufacture and/or handle chemical substances to protect

the environment, safety and health (ESH)over the entire life cycle of products—from the procurement of raw materials anddevelopment through to use and disposal—
and unceasing efforts to improve productquality.
We recognize the potential of chemicals
and related technologies to help addresscertain key challenges faced by modern
society, including the reduction of energy
consumption, the recycling and reuse ofresources and the achievement of barrierfree accessibility. Through efforts to realize
our management vision — “Color andComfort by Chemistry”—we will continue
working to contribute to environmental andsocial sustainability.

In closing, what resolutions
have you made regarding fiscal
year 2012?
Fiscal year 2012 is an important year for
us as both the final year of DIC 102 and a
crucial period of preparation for our next
medium-term management plan. Before we
formulate any sort of preliminary businessdevelopment outline, however, we must first
get our new corporate organization up andrunning smoothly.
The current global economic situation does
not encourage optimism. Nonetheless, we
remain confident in our core technologicaladvantages, which encompass both hard
technologies, including those used in the
production of synthetic resins, and soft
technologies related to the use of color. We
see significant potential for integrating suchtechnologies and cultivating new markets.
The management and employees of the
DIC Group will work together to drive thedevelopment of innovative new products
and to further reinforce the DIC Group’s
presence across a wide range of markets.

5Special
Topic

The DIC Group: Striving for a
Sustainable Society
Utilizing the Power of Chemistry to
Solve Problems and Create New Value

CSR Activities in Research andDevelopment
The Technical Administrative Division has reorganized thetechnical departments, which used to be located in each businessdivision, into an organization based on the common elemental
technologies in 2010. Since then, it has been producing effects
in the development of high-performance integrated products bypromoting the integration of all technological resources throughout
DIC and internal collaboration. The Corporate R&D Department,
Special Topic

which is in charge of developing the next generation products/
technologies, focuses on operating in various domains, including
new materials/high-performance materials, displays/electronics,
new energies, and life science. In addition, we are making a totalcommitment in solving social issues through mutual collaboration
with domestic group companies, such as DIC Graphics, andoverseas companies, such as Sun Chemical Group research

Managing Executive Officer
General Manager of Technical Administrative Division

laboratories and the Qingdao DIC Finechemicals Co., Ltd., andTetsuro Agawa

utilization of global management resources.

We must save and efficiently utilize energy in order toutilize the limited resources for a long time.

Reduction of greenhouse gas (mainly CO2)
emissions is urgently needed in order toprevent global warming, which is the maincause for climate change

Establishment of a recycling society isrequired in order to reduce the issuesof resource outage and wastes.

Energyconservation
CO 2
reduction

Management and reduction of toxic
chemical substances that may affecthuman health and ecologies are
duties of a company

Social issues
Universal
designResource
Conservation

There are a number of materials around us that wewould like to further improve in order for more people
to have comfortable lives

6

Recycling

ComfortLife

Safety/reliability

There are many obstacles that should
be removed in order to preventsocially vulnerable people fromfeeling inconvenience.

High level safety is required in materials surrounding
accessible tools and food in order to use them withreliability.

Special Topic1

DIC SOLUTION

Contributing to Solutions for Society’s Problems
through Creative Product Development

Shipping, information, housing, food products—there are number of problems that need solving in the industrial fields that support
our daily lifestyles. Through creative development of new products, the DIC Group is contributing to solutions for such problems
while generating new value.
Socialissues

Improved Fuel Efficiency throughWeight Reductions

In order to alleviate global warming caused by exhaust gas

solved, a shift toward plastic part usage in vehicles for its further

emissions, improved fuel efficiency through vehicle weightweight reduction can be expected.

reductions is needed. On the other hand, numbers of parts arebeing increased to enhance factors such as safety and comfort—
this is where the substitutability of light plastic parts for heavier
metal parts plays an important role.
However, automobiles are used in a wide variety of harshenvironments ranging from deserts to freezing-cold regions,
Special Topic

exposing engine-related parts to high temperatures resulting fromcombustion, vibrations, etc. This means that the role of plastic
products is limited due to demand for parts with extremely highheat resistance, chemical resistance, etc. If such issues are

DIC Solution

Using High-Performance PPS Plastic to Expand Substitutability for Metal Parts

CO 2
reduction

Energyconservation

PPS (polyphenylene sulfide) plastic has half the weight of aluminum, superb chemical-resistant and flameresistant properties. DIC started manufacturing the PPS compound in 1976 and the base polymer in 1987.
Today, this PPS compound accounts for the largest market share worldwide.
Automotive PPS-compound parts meet demand for a wide range of characteristics including hardness,flexibility and precise dimensional stability. DIC utilizes integrated technology to respond to such needs, to
PPS conpound auto components

expand applications to not only engine-related parts but also in brake systems, fuel, and more, contributing to
improved fuel efficiency.

The Strength Needed for Integrated Supply of Everything from Base Plastics to Molding Compounds

VOICE

DIC’s strength lies in our ability to undertake integrated development and manufacturing in all areas
ranging from polymer molecular design to mixing and compounds In recent times, the Company
has developed various innovative PPS compounds, with high levels of dimensional precision as
metal parts, as well as the thermal shock property necessary to enable actual usage. DIC has also
developed a long-glass-fiber compounding agent that replaces its short-glass-fiber counterpart todramatically improve shock resistance, heat resistance, and stronger fatigue characteristics. These
new materials have been adapted in applications such as parts used in next-generation system forhybrid and electric vehicles, creating the potential for even greater fuel efficiency.

Masanori Uchigata

Polymer Processing
Technical Group 3
Polymer Processing
Technical Department

7

DIC SOLUTION

SocialissuesContributing to Solutions for Society’s Problems through Creative Product Development

Efficient Use of Resources for
Newspaper Publication

Newspaper companies in Japan are increasing the number of pages to include
more information while newsprint paper becomes thinner and thinner from theview point of effective use of natural resources and reduction of delivery cost.
In recent years, people become more environmentally aware. So newspaper
companies are urged further efforts for environmental protection and trying to
reduce the ink consumption. But there are many difficulties to balance resource
conservation with printing quality by using thinner newsprint with lower ink film
thikness.

Normal-con
centratednews ink

Higher-co
ncentrated
news ink

Energyconservation

DIC Solution

Resource
Conservation

Solution for the Balance between Resource Conservation and Printing Quality
Higher-concentrated news ink is one solution to achieve the printing on thinner paper with lighter ink film layer.

Top
view

But this type of ink sometimes caused unstable ink density, poor ink transfer and poor water fighting property
under the high speed running condition before. DIC developed by gathering all DIC technology, and finally wehave launched new generation high-concentrated news color ink series “PROUD” that complies with ECO-

Side
view

mark requirements in Japan. PROUD would be expected around 20% reduction of ink usage.

Special Topic

Effective Utilization of Limited Resources, Improvement of Work Environment, and Decrease in Number of Shipments

VOICE

Newspaper companies can decrease the thickness of ink layer by using high-concentrated news
ink “PROUD”. And demands for this ink are increasing rapidly because it reduces the risk of “strikethrough” that the ink penetrates into the paper and can be seen from the back side. PROUD
contributes to prevent the set-off problem. Furthermore, newspaper companies could get the following
benefits from PROUD: decrease in the usage of dampening water, improvement of work environmentby the lower misting of ink, and the reduction of CO 2 emissions from transportation.

SocialissuesEnhancing the Environmental
Performance of Mobile Phones, TVs
and Office Automation Equipment

In contrast to the increasing multifunctionality and circuit integrationencountered in our current society, there is demand for resource andenergy conservation and high recyclability. We must make devices
thinner, lighter and smaller in size; increase functionality while
promoting efficient energy use.

Kazundo Suzuki

Newspaper Ink Technical GroupDIC Graphics Corporation

DIC Solution

Resource
Conservation

Promoting Advances in Mobile Phones via Tapes,
Films and More
DIC plays an important role in advancing mobile phone technology. The useof thin adhesive tape in place of screws
to fix parts in the device contributes tothinner mobile phone designs. In addition,
we developed a water-resistant tape,contributing to the world’s first waterresistant mobile phone. Furthermore, wehave “anti-scattering film” prevents glass
shards on the display from scattering whenbroken should the handset be dropped.

8

DIC’s industrial-use ad
and films hold par ts incontributing to improved
performanceCreating Spaces Where Large
Numbers of People Can Feel
Comfortable and at Ease

People need spaces brimming with warmth and a sense of repose in public,
welfare facilities or in hospitals. However, the natural wood building materials ishindered by failure to meet fire prevention and flame resistance standards, forest
protection measures, and other such factors. On the other hand, many patients,
who see colors differently for genetic reasons, and others with differing visual
capabilities have difficulty distinguishing between different signs, which leads to
Takayama City Kokufu branch office building(“DIC Funen WO” installation example)

problems in terms of universal design.

Universal
designDIC Solution

ComfortLife

Harnessing the Power of Chemistry to Produce the Feel of Natural Wood,and the Power of Color Universal Design for Accessible Color Usage
Non-flammable “DIC Funen WO” decorative board, which features natural wood color patterns madeusing a photomechanical process (“Del Nature-fine” DIC proprietary printing method) and a rough wooden
texture faithfully recreated via resin treatment Hospitals and other facilities have praised its designs highly
and installed them in their own buildings. Additionally, in order to promote color universal design (CUD), DIC
collaborates with Non-Profit Organization to improve public facility signage, along with provision of display boards

Non-flammable “DIC Funen WO” decorative board(such as timetable and route map in train stations etc).
expresses the texture and warmth of natural wood
“Del Nature-fine” for unique design expression

Pursuing “Color & Comfort” through Accumulation of Unique Technologies and Knowledge

Special Topic

dhesive tapes
n place whileenvironmental

Socialissues

VOICE

Non-flammable “DIC Funen WO” decorative board is the perfect product for the facilities wherea sense of warmth and repose is desired. Its cost is more reasonable than that for scarce natural
wood materials, also contributes to forest protection. In addition, our display boards and panelswith consideration for color universal design make use of our knowledge on color science related topigment, paint and coating technologies for truly original products.

DIC Solution

Energyconservation

Recycling

Heat radiation from LED lights, and Easy
Recycling of Office Automation Equipment

Masaki Hayashi

Senior Manager,
DIC200 Promotion Department
Architecture and Housing Material Sales Department

Utilizing DIC’s Combined Power forHigh Added Value in Adhesive Materials
I n dust r i al - us e t ap e s an d f ilm s p lay apivotal role in enhancing the environmental

LCD TVs using an LED back light require adhesion andper formance of electric and electronic

radiating heat for tape. To address this, DIC developed

devices. There is a wide range of needs,

thermally conductive
double-sided adhesive
tape with high thermal

VOICEincluding part attachment, product protection,transparency, and so on. DIC is able toprovide various products with high-levelknowledge covering from polymer design/

conductivity for a powerful

synthesis, resin design for coating films,

heat-dissipation effect.

additive formulation technology, to thereplacement with films and tapes.

Akira Yamakami

Hiroki Takano

Manager, Coating &Manager, Coating &Applied Materials Group 1 Applied Materials Group 1
Coating & Applied Materials Coating & Applied Materials
Technical Department
Technical Department

9

Special Topic

2

DIC MISSION

Placing top priority on safety, theenvironment and health while maximizing
benefits from chemical products

While supporting customer lifestyles through our wide variety of chemical products, the DIC Group makes
efforts to ensure safety, protect the environment and ensure health in every phase of the product life-cycle.

Demandsof Society

Striving for an Ideal Society
and a Favorable Role for
Chemical Products

Special Topic

Chemical products are used in various industrial fields and play avital role in supporting our society, but the use of such products
carries with it the possibility of adverse effects on human beings’
health as well as on the surrounding environment. That is why
we carefully manage and regulate usage, amounts and emission
volumes of chemicals substances according to factors such as
chemical type and properties. Furthermore, businesses involved
with these chemical products implement various measures toensure safety for end users, employees, local residents andothers.
In an effort to achieve an ideal society and favorable rolefor chemical products therein, the action goal of minimizing
environmental and health risk from chemical substances by 2020
was agreed upon in 2002 at the World Summit on Sustainable
Development (WSSD) held in Johannesburg, and following theInternational Conference on Chemicals Management (ICCM)
held in 2006, members in the industry began taking independentmeasures to achieve this target. Numerous businesses involved ineverything from base materials to manufacturing of final products
have brought together information on chemical substances
involved in order to create a scientific basis for risk management
and reduce risk from such substances.

DIC Initiatives

Reduction ofenvironmental
impactPromoting Thoroughgoing Managementof Chemical Substances and Reduction of
Substances that Impact the Environment
The DIC Group integrated Responsible Care (RC) activities into
the management system in 1995, and we are also implementing
thoroughgoing management and taking measures to improve
management of and increase activities related to safety, theenvironment, health and chemical substances while anticipatingchanges to legislation in each country and local region.
These efforts are carried out with a central focus on our proprietary
Chemical substance Information Comprehensive management
System (CIRIUS). While undertaking comprehensive managementthat covers even minute quantities of chemical substances foundin raw materials and products, we apply automated checks fordomestic legal regulations, and as a primary processing company
we also provide accurate information to customers that we deliver
our products to.
Furthermore, we regularly monitor quantities of chemical pollutantsreleased into the environment (air, water and soil) at each DIC
plant while continually
undertaking measures
to reduce the amountof environmentally
harmful substances,minimizing impact
on the surrounding
Volatile organic compound (VOC) processing
environment.
equipment (Saitama Plant)

Proactive cooperation in programs to develop chemical product risk management
We are proceeding with international programs (global product strategy) to improve chemical
product usage and safety management throughout the entire supply chain in the global chemicals
industry and reduce risk to society as a whole from chemical products. The first step in this process
is providing highly reliable information on chemical substances and products and scientificallyevaluating risk. We are involved in this type of program in Japan, through which the government andchemical industry work together to provide the necessary information and assess risk. As a chemicalcompany, DIC strives to actively supply relevant information and promote “risk communication,” andwe also aim to contribute to the improvement of precision in risk assessment. Through such efforts,
we hope to make proper use of chemical substances more widespread, provide stakeholders witheasy-to-understand information, and decrease risk throughout all of society.

10

Safety andreliability

Masato Akama

Department Manager in
Charge of Regulatory
AffairsResponsible Care
Department

VOICE

Demandsof Society

Increased interest in foodproduct packaging material in
Europe and the United States

analysis for levels of such substances were needed.

● Regulations and Guidelines for European Food

Recently, consumers have increasingly expressed concern

Product Packaging

regarding the quality and purity of food products, including factors

In Europe, there are three types of regulations and guidelines set

such as production region and environmental influences whichmight contribute to this. Attention has also been focused in manycases on components of the products’ packaging which are seen
as another possible contributing factor.
In 2005, Italian authorities discovered the photoinitiator isopropyl
thioxanthone in milk-based drinks—a problem that gainedwidespread public attention. This substance was shown to haveno adverse effect on the human body, but because contaminantspresent in food products may not always be detectable by thesensory organs, we realized that more sophisticated methods ofby regulatory institutions/organizations regarding inks, coatingsand other materials used in food product packaging which mustbe followed: (1) activities of the EU and legislative bodies ofmember states, (2) industry associations, and (3) self-imposed
controls of brand owners, converters, etc.
Some brand owners have already taken action to ensure that theirpackaging is produced to low migration standards, requiring strict
control of the raw materials used and proof of low the migration
capability of all packaging components.

Reduction ofenvironmental
impactSun Chemical Group Initiatives

Sun Chemical Group Low-Migration Products
WEB

http://www.sunchemical.com/

coatings and other materials for printing food packaging. In order to meetdemand for materials with low migration characteristics the Group has
followed two formulation routes. The first employs energy curing (ultraviolet
and electron beam curing) and focuses on significantly eliminating theprobability of migration through careful raw material selection. This
achieves the lowest possible levels of migration so minimizing the risk to
the consumer.
The second applies to oil-based,c o nve nt i o n a l i n k s w h e r e t h e
ingredients used are permitted

an analytical department that makes
use of advanced technology andspecialist knowledge on migration

parts per billion levels) are regularly measured.

● Providing Comprehensive Solutions for Food ProductPackaging
For many years, Sun Chemical has been aware of the strong market
demand for guidance on migration characteristics and the correct
specification of food packaging materials. Printing companies, converters,
brand owners and other members of the industry must not only makethe correct selection of inks and coatings and combination of packaging
and environmental measures into consideration, in order to manufacture a
product which fully meets all specifications. This approach is necessary to

Penetration

ensure consistent use of low-migration products suited to specific purposes.

Contact

The latest edition of such information, titled “Designing Packaging with

Evaporation

regarded as a source document throughout the market.

Certainty: A Best Practice Guide” has been published and is highly

permissible daily intake levels for
those materials. Sun Chemical has

where incredibly minute amounts of migrating ink components (down tomaterials, but they must also take factors such as production processes
Migration Typefo o d addit ive s an d mi gr at i o ncharacteristic s are within thecharacteristics to perform analyses to an ISO 17025–certified standard,Special TopicThe Sun Chemical Group has many years of experience in supplying inks,

Safety andreliability

In addition to these activities, Sun Branding Solutions also provides general
Temperature
Gradient

guidance for brand owners on the design of food product packaging for
Migration Mechanism

specific applications.

VOICE

Providing Comprehensive Solutions for Food Product Packaging
For many years, Sun Chemical has been aware of the strong market demand for guidance on migration characteristics and the correct
specification of food packaging materials. Printing companies, converters, brand owners and other members of the industry must not only makethe correct selection of inks and coatings and combination of packaging materials, but they must also take factors such as production processes
and environmental measures into consideration, in order to manufacture a product which fully meets all specifications.. This approach isnecessary to ensure consistent use of low-migration products suited to specific purposes. The latest edition of such information, titled “Designing
Packaging with Certainty: A Best Practice Guide” has been published and is highly regarded as a source document throughout the market.
In addition to these activities, Sun Branding Solutions also provides general guidance for brand owners on the design of food product packaging
for specific applications.

Sun Chemical Ltd.
St. Mary Cray Technical Centre

Dr. Nick Ivory
Technical Director

11Topics1

Dialogue with stakeholders

At DIC, we engage in discussions with various
stakeholders in order to reflect society’s needs in our
corporate activities. We invited two specialists related to
CSR and corporate globalization for our latest dialogue
based on the theme of “initiatives expected of a global
corporation regarding human rights and labor practices.”

Hiroshi Ishida

Executive Director, CRTJapan
Caux Round Table (CRT)

Kaori Kuroda

Executive Director/Board
MemberCSO Network Japan

Date：June 6, 2012
Venue：DIC Corporation, Nihonbashi headquarters building
Experts：Hiroshi Ishida (Executive Director, CRT-Japan Caux Round Table (CRT)
Kaori Kuroda (Executive Director/Board Member CSO Network Japan)
Facilitator：Hiroko Ozawa (Manager, Ernst & Young ShinNihon LLC)
DIC Participants：Head directors of the Logistics Division and General Affairs and Legal
Department; General managers of the General Affairs and Human
Resources Department, Legal Department, Responsible Care Department
and Corporate Communication Department; and other persons in charge

Initiatives expected of a global corporation regarding human rights and labor practices

TopicsOpinions of experts

DIC Responses● It is very important to think from the stakeholder’s viewpoint we have tomention that the ones who evaluate your company are the stakeholders,and also taking notice of whether the trends of society and the actions of thecompany match up.

→ We are aware of the frequent differences or mismatches between
what society in general has interest in and what we as a manufacturing
company are aware of, and we are making efforts wherever possible
regarding this issue.

● Many people are aware that human rights has become a central issue, as
seen in the U.N. framework. One needs to take it into consideration within thecorporate group as well as the supply chain.

→ We have been issuing questionnaires to business partners since
February 2010（Refer to
P32 ）● The issue of conflict minerals* has come under close international
scrutiny as a supply-chain human rights problem. It is impor tant torecognize what public consensus calls for and be capable of honestly
explaining your initiatives.

→ Concerning the issue of conflict minerals, DIC is positioned midway
between the upstream and downstream ends of the value chain. Although we
do not directly procure materials from countries involved in such conflicts, weare thinking hard about risk management we can perform.

● Among frameworks related to human rights, ISO 26000 represents thecurrent base of thinking, and it is the standard for OECD multinational
corporate guidelines as well as the international human rights standard
for the U.N. guiding principles, etc. In particular, new ways of thinking
must be taken into serious consideration, including participatory cases ofindirect human rights violations via business partners.

→ We are thinking about modifying our DIC WAY Code of BusinessConduct to bring it in line with ISO 26000. We intend to revise thesestandards further should any new items be required as a result of newly
developed concepts.

● In regard to human rights, corporations are expected to respectsuch rights, while the nation’s role is to protect those rights. As a global
corporation, it is important to consider what shape human rights shouldtake, discuss just how far you can respect those human rights as acompany, and publicly announce your corporate stance.

→ We must think about globalization and diversity together, and pay attention
to link them to our actual business activities. Considering “employees” asstakeholders, we recognize that “respect of human rights” leads to cultivate
comfortable work environment, also to heighten the motivation of each
employee. In future, it may be a good idea to grasp how employees look at thecompany through surveys, to take a suitable approach in view of systems andframeworks.

Concluding the Dialogue
Five years have passed since the DIC Group began taking on CSR-related measures. Through today’s dialogue on “initiatives expected ofa global corporation regarding human rights and labor practices,” we were able to understand just how important deepened recognition andunderstanding are as issues, and we intend to strengthen our efforts further.
* Conflict minerals: Resources mined in areas of armed conflict in Africa, etc.

12Topics

2

DIC color design initiatives

Contributing to enhanced product appeal and brand strength
through color design originating from uniquely Chinese elements

Japanese companies that want to pursue growth within in China’s maturing domestic market, and Chinese companies that want toincrease their value amidst a staggering number of established global brands—DIC continues to provide effective proposals to meetthese types of needs by utilizing our unique analytical capabilities and viewpoint.

A Unique Viewpoint, For Everything from Brand Strategy to Communication of Trends
In order to make one’s presence known in the Chinese market, onemust appeal to consumers through color designs that leverages both
uniquely Chinese characteristics and Chinese novelty, based on
observations of global trends and the latest materials and expressive
techniques. At DIC, we continually provide Chinese color trends basedon many years of surveys and analytical experience, and propose ourhighly effective CMF (Color/Material/Finish) method of communicatingas part of brand strategy. The importance of color-based marketingstrategy continues to grow, expanding rapidly in various industries
including automotive, home electronics, cosmetics, food products,
fashion and others.

5,

T1314-101

Shanghai Trio
／ 上海トリオ

T1314-102

1998年法國設計師 Virginie Fournier 和兩個朋友聯合在上海創立的品牌，如今在T1314-103

北京和巴黎、圖盧茲、布魯塞爾、丹麥等多個世界城市擁有分店。作為藝術總監，她

4,

9

頻繁往來于巴黎和中國，品牌在上海擁有中國設計師、色彩顧問和工坊。最初品牌
做精美的絲綢小包等旅遊紀念品，促進了中國高端紀念品市場的繁榮，出現許多效仿者。其服裝和手袋的設計理念主要從中國的大街上獲得，比如手袋的設計靈感來Tang’ Roulou們費力找到專門為中國郵政供貨的廠家，弄來存貨。這種面料織得非常厚也非常緊，
以至能防水，而色彩的改變使它們成為上海組合獨有的設計，現在廠家已為上海組／ タン・ローロー

DIC-433

合特制面料。設計師還走遍中國尋找最好的綿和絲，尋找有經驗的手工藝人，在被子、桌布和絲綢夾克上運用精美的手工刺繡和飾片，力圖讓中國古老的手工藝流傳下去，同時也緊隨時尚的步伐，在有效率的市場操作中不斷引領潮流。

2004年法國設計師 Amelie 在北京設立的童裝品牌。糖葫蘆是北京特產小吃，“糖

DIC-F322

葫蘆非常北京，它給我的印象就是我的北京生活。
”出於對中國傳統手工藝的熱愛，

1998 年フランス人デザイナー Virginie Fournier と二人の友人が上海で共同設立したAmelie 的設計裡運用中國的花布頭，充滿趣味的布料，鮮豔的顏色，非常傳統的圖ブランド。現在は北京、パリ、トゥールーズ、ブリュッセル、デンマークなど世界の案，同時還帶著法國式的溫馨浪漫。2008年她與朋友 Pierre-Yves（法國 NGO 組織

多くの都市にも支店を持つ。アートディレクターとしてパリと中国の間に頻繁に行き“寧夏婦女”北京聯絡人）成立的寧夏百花刺繡合作社合作，將百花合作社成員們的

DIC-620

来し、上海にも中国人デザイナー、カラーコンサルタントと工房を構える。ブランド

刺繡手藝應用到 Tang' Roulou 的法國式童裝中，希望中國的刺繡能夠在設計中得到は上質なシルク小物バッグなどのお土産品からスタートし、中国ハイエンドギフト市

體現，真正做到中西設計的融合。看到很多中國老傳統正在消失，他們認為，“老傳

場の繁栄を促し、多くの模倣者を追わせた。その服飾とバッグデザインのインスピレー

統如果不拯救，會面臨消失的危險。
”“我喜歡中國的老傳統手工藝，但我想用法國童DIC-578

ションは中国の町並から得ることが多い。例えば中国の郵便配達と電気工事者のバッグ

裝的方式來改變它。
”品牌不僅為農村婦女提供就業機會，還將合作產品 50 ％的收入

10の色に目を付け、その“中国緑”をもとめて専門生産メーカーを探し当てた。それは

捐贈給 NGO 組織“寧夏孩子”項目，資助當地的孩子完成學業。他們希望有朝一日

非常に厚くしっかり織りあげた、防水機能をも持つ生地で、色をアレンジすることで“中式法國童裝”能夠進入法國市場。

ブランド独自のデザインとなり、高い支持を受けた。今やそのメーカーにオリジナル生地を生産してもらっている。デザイナーはまた最高の綿とシルク、 熟練職人を見つ

2004 年フランス人デザイナー Amelie が北京に設立した子供服ブランド。
“ Tang’

けるために中国全土を巡り、キルト、テーブルクロス、シルクジャケットなど伝統工

roulou”は北京特産“串サンザシ”のことで、“私にとってそれはまさに北京での生活

芸の美しい手刺繍や装飾品を施し、さらに卓越したマーケティングマネージメントをを象徴している”。中国伝統工藝への情熱から、彼女のデザインには色鮮やかでカラフル

COLOR & TEXTURE

通して、トレンドを発信しつづけている。

な伝統柄の生地がふんだんに使われ、フランス風子供服のエッセンスが加わり、 ぬく

6 photo : 鈴木弘之 Hiroyuki Suzuki

もり感のあるロマンチックなテイストをみせる。 2008 年友人で NGO 組織“寧夏女各種各樣微妙的色感、彩度感強烈的色澤象徵著新的裝

French designer Virginie Fournier and two friends co-founded the brand in 1998

性”の駐在員 Pierre-Yves が設立した“百花刺繍社”とコラボし、伝統的な生地と刺繍に飾時代。蘊藏著閃爍光澤的紅、濃艷的漆紅色、皮革般

in Shanghai, Now the brand have a branch in Beijing and in Paris, Toulouse,

新しい表現を取り入れ、中洋を融合したものづくりを続けている。「伝統を復興させ

Brussels, Denmark and many other world cities. As artistic
director, her frequent
7

る方法を考えなければすぐに消えてしまうものが多い」と訴える二人は、優れた刺繍

travel between Paris and China, with Chinese designer, color consultant and技術を持ちながら自立できなかった地元の女性たちに仕事を与え、コラボ商品の売

workshop in Shanghai. First brands to exquisite silk packet tourist souvenirs,

り上げの半分を NGO 組織“ 寧夏子供プロジェクト”にも寄付している。今後の目標はpromote the prosperity of Chinese high-end souvenir market, and now there“中国風フランス子供服”をフランス市場に展開すること。

are many imitators. The inspiration of clothing and handbags design almost
come from China's street, such as handbags inspired by the Chinese postman
and electrical work packages, especially its color " Green China" because it is so

The brand of children’s clothing established by French designer Amelie in 2004
in Beijing. “Tang’ roulou” is a specialty candied fruit snacks in Beijing "it gives

special, they found the special effort Postal supply manufacturers in China tome the impression that my life in Beijing." For the love of traditional Chinese

get their stock. This very thick woven fabric is very tight, and even waterproof,
which they changed the color to a unique design of “Shanghai Trio”, and now

arts and crafts, Amelie use the design in full of fun China fabrics with bright8

12

6. 濃艷的土壁上遊盪的風流影像

11

濃艶な土壁に遊ぶ風流な影

also traveled throughout China to find the best cotton and silk, looking forexperienced craftsmen, the quilts, tablecloths and silk jacket used exquisite handcooperatives”, cooperative members will be embroidered flowers craft

embroidery and decorative pieces, trying to make China the ancient craft handed

applied to the Tang' Roulou’s French children's clothing in the hope that

down, but also in an efficient market operations continue to lead the trend.

China's Embroidery can be reflected in the design, truly expresses the new
harmony of Chinese and Western design. See a lot of old Chinese traditions are

交織的飄逸的金色 ；行雲流水般生機勃勃的彩色。
さまざまなニュアンスを持った、彩度感のある色合いがCare-free play of exotic texture combined with diverse feelings

新しい時代を象徴する。きらめく光を奥に湛えたレッド、
艶やかな漆の赤褐色、エナメル調の濡れたようなビビット
レッド。織りと刺繍をかさねた鮮烈な朱、豊潤な色合い、味わい深い素材に大胆でダイナミックなエッセンス

藍染の濃淡を重ねたブルー、妖艶な深みを増した パープ

Give bold and dynamic essence to complex material

ル、光を織り込んだブラウン、緻密な光を秘めたカッパー、

9. 原味的精華 濃郁而有彩度的色澤

黒と交錯する洒脱なゴールド、ダイナミックなうねりをプリミティブなエッセンス

豊かな彩度感のある色
Primitive essence; Colors of rich chromaticness打つ繧繝彩色。

C olors of various nuances and chromaticness

http://www.shanghaitrio.com/index

格調ある色彩の融合

symbolize the arrival of new era. Red embraces

Aesthetics created by natural featuresand ethnics, a fusion of elegant colors

disappearing, they think, "Tradition needs renaissance and support, otherwise it
will be soon vanished and forgotten." "I like old traditional handicraft in China, but

雲母の入り混じった土のようなテクスチャー
Brown worked with delicate shimmer
Texture of soil as if blended with flakes of mica

Theme 1 / Sprit of Asia
13. 隱藏著緻密光澤的古金色

brilliant glow within, reddish brown of glossy

the over wrap of shading indigos. Purple withincreasing depth of glamour; Brown with woven
shimmer within, copper enfolding delicate dazzle.
Unconstrained gold mingling with black; A string of

12. 溫雅柔和的光輝 現代闡釋的傳統美
温雅でおおらかな輝き、現代的に解釈された伝統の美
Brilliance of gracefulness and openness,a modern interpretation of traditional beauty

012

Sparkling vermilion created by the layer of weaving
and embroideries; Colors of abundance. Blue,

細やかな光を織り込んだブラウン

http://www.tangroulou.com

Japanese lacquer, vivid red reminds of wet enamel.

13

11. 交織著細緻光點的暖褐色

employment opportunities for rural women skillful in embroidery works,, coproducts will also donate 50% of revenue NGO organizations “Ning Xia Children
project”, the funding of local children to complete their studies. They hope that澤，藍染的濃濃淡淡的藍，增添一層富麗深度的紫色 ；交織光點的暖褐色、隱藏著緻密光澤的古金色、與黑色Graceful shades floating on enchanting mud wall

さまざまな感覚を自由に遊んだ、エキゾチックなテクスチャー

8. 溫雅的素材呈現的大膽生動的美感

10. 風土與民族交織的美感 富有格調的色彩匯融
風土と民族が生み出した美意識

I want to change the way by the French children's wear." Brands not only provide

濡潤的鮮紅、交疊編織與刺繡的炫麗的朱紅 ；豐潤的色7. 縈迴盤繞、自由灑脫的異國情調的質感

manufacturers have a special combination of fabrics for them. Designers

color and traditional patterns, but also with a French-style romantic taste. In
2008 she collaborated with a friend Pierre-Yves (French NGO organizations,"Ningxia women" Beijing contacts) who set up “Ningxia Bai Hua embroidery

one day "Chinese French children's clothing" will enter the French market.

T1314-104

源于中國郵遞員和電工的工作包，特別是它的顏色“中國綠”，因為它太特別了，他

gorgeous and dynamic waves of colors.

013

Theme 1 / Sprit of Asia

01 9

緻密な光を秘めたカッパー

Subtle dazzle enfolded in copper

TopicsEri Ohmae

Color Director (and editor-in-chief of the Chinese
Color Trend Book)
Consulting Division
DIC Color Design, Inc.

Topics3

2013 –2014 Chinese Color Trend Book

Striving for achievement in biofuel

A Trial in Sustainable Resources and Energy Production throughthe Development of Spirulina Cultivation Technology

With fossil fuel resources running dry, global warming intensifying, therisks of nuclear energy becoming more apparent and other such factors,
natural energy has become the focus of much attention. Plants and algae,
whose photosynthetic processes make use of one of our most familiarenergy sources (the Sun), provide examples of the ultimate sustainable
resource and energy solution. In particular, algae exhibits photosynthetic
efficiency as well as a highly effective CO 2 absorption effect (carbon
offset) while under cultivation—a fact that has caught the interest of many.
The DIC Group sells the photosynthetic algae spirulina for various
purposes, including use as a health food product and use as the foodcoloring “Lina Blue,” and DIC is the only company to use spirulina outdoor
mass cultivation technology, which is based on more than 30 years ofexperience. With the goal of fully utilizing this technology, the Universityof Tsukuba as well as the American company Sapphire Energy are
simultaneously undertaking collaborative research related to outdoor

mass cultivation for production of jet fuel, chemical product raw materials
and other products. The DIC Group plans to utilize its outdoor masscultivation know-how to support practical implementation of an algaebased biofuel, with the goal of freeing society from reliance on nuclear
power, fossil fuels and other such energy sources and contributing
toward the development of clean and sustainable energy and resource
development.

The algae Botryococcus braunii, which isused in biofuel

Earthrise, an American company
undertaking cultivation of spirulina

13

The DIC Group’s CSR Activities＊ The “Evaluation” column is based on self-evaluations of current progress. Evaluation marks: ★★★…Excellent

CSR
Theme/Objective

Objective/Task

Evaluation Reference
Page★…Needs WorkFY 2011 Goals

FY 2011 Results

Raise awareness ofcompliance

・Create and distribute adigest of the DIC WAY to
promote understandingof the code of conduct

・Finished preparing
Japanese and English
materials; Chinesematerials not yet complete
・Utilized e-learningmaterials while promoting
further integration of thecode of conduct

Revise the contents of the2008 edition of the DIC
WAY Code of BusinessConduct and finalize thecontents of the 2013
editionConduct businessfairly・Create e-learning
resources for the
Subcontract Act andensure thoroughcompliance・Completed a basic draft
for e-learning materials

Completeeasy-to-understandmaterials and provide
e-learning education for
employees involved in
subcontracting deals

・Confirmed substitutability
for main products and their・Plan BCM and supply
materials, and began
chain coordinationconsideration of relevant・Formulate frameworks
measuresfor each kind of disaster・Provided support for・Roll out BCM at affiliates expansion of BCM toaffiliates

・Continue examining
substitutability of main
product BCP・Completeestablishment of BCP atdomestic and overseas
subsidiaries

・Identify and improve
problem areas basedon reviews following theGreat East Japan
Earthquake and future
training

・Completed equipment
response manuals
summarizing initial
responses inconsideration of reviews
following the Great East
Japan Earthquake, etc.

・Conduct division training
in headquarters
emergency measures toprepare for disasters andconsider measures toimprove effectivenessfurther

・Conduct media-based
training in preparation of
measures for handlingcrises (while
simultaneously
enhancing reputation ona daily basis), andcontinue such measures
based on those results

・Conducted media-based
training for directors,
executives, etc., in
conjunction with othermeasures to achieve
sharing of knowledge

・Work together toorganize themanagement system
and implement
measures to respond tovarious risks

・Organize guidelines forconfidential information
Measures toward
management andachieving andestablish an in-houseensuring information Establish a global
information security management systemsecurity
・Create rules andframework
systems to organize aconfidential information
framework in Group
companies

・While organizing guidelines,
appointed a Chief
Information Management
Officer and Chief Information
Manager for eachdepartment to strengthen the
Company’s internalmanagement system
・Established standard IT
governance rules foroverseas affiliates

・Introduced an internal auditing
system to strengthen theinformation security frameworkfurther・Firmly established a security
management framework indomestic and overseas Group
companies
・Introduced a new system thatis compatible with smartphones
and other new devices

Compliance / fair
and transparent
corporate activities

The DIC Group’s CSR Activities

Business continuity
management
Ensure DIC Group(BCM) / limit
businessdisaster risk
continuity

14★★…Satisfactory

FY 2012 Goals

CSR
Theme/Objective

Human resource
management /striving to improve
job satisfaction

FY 2011 Results

Train and appoint
national staff toadvance global
management

・Support the creation of Indonesian
HR systems
・Carried out analyses of roles andevaluation of results for accounting
and financing operations personnel
・Integrated the HR systems at our
three Thai companies

Completed personnel
system organization in theSoutheast Asia region at
one company in Indonesia.
Completed analyses of rolesat three Thai companies.

Concerning organization ofnational staff HR systems
led by DIC Asia Pacific atoverseas subsidiaries,
reorganization was carriedout at two Indonesiancompanies

Support staff
・Continue with initiatives
diversity anddiversity in working aimed at expanding roles
for women in thestyles throughworkplaceworking women
promotion activities

Increased female sales
staff (16 in May 2011 →20 in May 2012) andfemale manufacturing staff(7 in May 2011 → 8 staff
at 5 worksites in two plants
in May 2012)(1) Increase the number offemale employees hiredand (2) continue to increase
roles for women in theworkplace (sales andmanufacturing positions)

Achieved a 2.098%
employment rate (legally
stipulated rate: 1.8%) by
the end of FY 2011

Further promote
employment ofhandicapped persons in
response to the increasein the legally stipulated
handicapped employment
rate from FY 2013 onward(1.8%→2.0%)

Use DIC Group purchasing
management regulations
as a model to follow up on
the creation of purchasing
management regulations
for overseas affiliates

Carried out explanationsof CSR procurement at 24
subsidiaries in the China
region. Not yet carried out
at overseas subsidiaries
in the Southeast Asia
region.

Provide explanations of
CSR procurement at
subsidiaries in theSoutheast Asia region

・Promote distribution of the
DIC Group Supply-Chain
CSR Promotion Guidebook
to domestic and overseas
business partners (200companies) and collectquestionnaires from said
partners

Collected questionnaires
from 200 businesscompanies. The feedback
rate was 90%, centering
primarily on domestic
suppliers.

Update the DIC Group
Supply-Chain CSR
Promotion Guidebook

・Plan and establish as
specific business models
selected solutions forbusiness themes

Developed multiple
selected themes as part ofmarketing activities. Somethemes progressed as far
as the business model
proposal stage, andoverall development is
progressing smoothly.

Creation of solutions
businesses: select specificthemes from within
next-generation, growing
fields and strive to improvecustomer satisfaction bycreating appealing solutions
businesses

Held numerous
comprehensive technology
exchanges with major
electronics manufactures andachieved results indetermination of customers’
needs

Improve customer satisfactionlevels by utilizing DIC
improvements tools consistingof product guidebooks,
exhibitions and technology
exchanges to achieve
penetration and enhancementof the DIC brandImprovement of・Establish a system todevelopment
consolidate technologicalcapability of new
products/technolog resources throughout the
DIC Group
y contributing tosustainable society

Proceeded with creation of research
reports that are used as important
media for the purpose of consolidating
technological resources, achieved
approximately three times theregistered entries per researcher
compared with the previous year, andplanned active use of these resources

Strengthen collaborationand combining oftechnologies among Group
companies (including
overseas companies)

・Promote research
Promotethemes related to thedevelopment ofenvironment
environmentally-co ・Speedy launch of new
nscious products
environmentally-conscio
and services
us products into markets

Business volume ofenvironmentally-conscious
products as a percent of all
products: 54%

・Promote research
themes related to theenvironment
・Speedy launch of newenvironmentally-conscio
us products into markets

Create base forfair purchasing
practices

Business model
focused on
customersatisfaction /establishing“solutions
businesses”

New technology
development andvalue creation /proposingsolutions thatleveragecomponent
technologies

Promote CSR
procurement

Promote solutions
businesses
adapted to changes
・Take a comprehensive andin social
multifaceted approach to promoting
imperatives
DIC's core technologies andrepresentative products toimportant customers in major
high-demand industries; researchcustomers’ needs and strengthen
relationships

FY 2012 Goals

The DIC Group’s CSR Activities

FY 2011 Goals

・Maintain and improve
Support staff
upon the legally
diversity andstipulated annual
diversity in working
employment rate andstyles by promoting
continue to cultivating
employment of
comfortable workhandicappedenvironments
persons

Supply chain
management / global
expansion of CSR
procurement

Evaluation Reference
Page

Objective/Task

15

RC Targets and Achievements of Major RC Activities＊ The “Evaluation” column is based on self-evaluations of current progress. Evaluation marks ★★★…Excellent

CSR Theme /Objective

Environmental conservation(reduction of environmental
impact via businessactivities)

Objective/Task

RC Targets and Achievements of Major RC Activities

Communications with society

Quality management(customer satisfaction)

Support for environmental
safety management activities
for overseas affiliates

FY 2011 Goals
Reduce energy use per energy source by 1% comparedwith the previous year’s levels

Reduction of industrial waste (zero emissions)
Reduction of volume of Landfilled solid waste
Reduction of industrial waste discharged fromproduction plants

Reduce volume of industrial waste sent to land¬fil s via zero-emissions activities
DIC: 85 t (-5% compared with previous year); DIC Group (domestic): 151 t (-27% compared with previous year)
Volume of waste produced by production plants
DIC: 16,219 t (-2% compared with previous year); DIC Group (domestic): 62,591 t (-3% compared with previous year)

Promotion of recycling

Continue to promote recycling at DIC Group companies(domestic) and improve resource recycling

Emission control of chemical substances

DIC: 292 t (-9% compared with previous year)
DIC Group (domestic): 799 t (-19% compared withprevious year)

Reduction of VOCs released into the air

DIC: 282 t (-9% compared with previous year)
DIC Group (domestic): 789 t (-19% compared with previous
year)

Risk assessment

Provide guidance on risk assessments connected withequipment investment. Be timely in provision of information.

Promotion of sharing of environment andsafety information between DIC and Group
companies (both domestic and overseas)

Continue with safe corporate climate cultivation working
groups and summarize proposals from the current fiscal
year.
Hold accident case study seminars and share information.

Reduction of GHG emissions caused bytransportation

Promoted modal shift and reduce energy consumed duringtransport by individual energy source by 1%

Management of transportation safety ofchemicals

Organize yellow cards and have general freight vehicles
including container trucks, lorries, and vehicles carrying
mixed freight carry themPromotion of green procurement

Continue to have incoming raw material informationcollected and centrally managed by CIRIUS inaccordance with the DIC Group's Green Procurement
Guidelines

Measures to cope with GHS (measures forthe requirement to disclose information on
chemicals contained in products)

Continue to prepare SDS for all Company chemical
products and distribute them through the Company website

Measures to cope with overseas
regulations (e.g., the REACH regulation in
the EU)

Assure registration concerning China’s revised Measure on
Environmental Administration of New Chemical
Substances. Continue with registration under Taiwan’s
revised Labor Safety and Health Act.

Report on RC activities and site reports
for each plant

Make the information on our RC activities public through the
CSR report and DIC website. In addition, promote risk
communications between DIC’s production sites and local
communities through site reports.

Logistics / safety

Chemicals / product safety★…Needs Work

Prevention of global warming andpromotion of energy saving

PRTR 1st-designated chemicals (462)+ Substances targeted for study by JCIA*1 (105)+ 1 substance group

Process safety and fi¬reprevention / occupationalsafety and health

Reference
Page★★…Satisfactory

Securing of quality

Interpret both “quality” and “product quality” as “quality ofwork,” use ISO 9001 and others as QMS tools to ensure
product quality and increase levels of customer satisfaction
Confirm and organize QMS tasks at business divisions
and offices, support improvement activities, and improve
quality management activities

Promotion of the environment and safety
and activities at affiliated companies in the
Asia and Oceania regions

Hold a meeting for personnel in charge of safety in the
Asia/Oceania region, conduct training in basic safety
procedures and provide support for points that need
improvement at each company.

Environmental/safety data

Confirm the actual state of management at several DIC
Group companies (overseas affiliates), clarify management
standards, and confirm and provide support for problem
areas*1 Japan Chemical Industry Association: One of the Japan’s major industry organizations, JCIA is a member of the ICCA and pursues the healthy developmentof the chemical industry with other organizations around the world.

16

FY 2011 Results

Evaluation

FY 2012 Goals
Reduce power usage by individual energy source in FY 2012
by 1% compared with the previous year

Volume of industrial waste sent to land¬fills via zero-emissions activities
DIC: 104 t (+15% compared with previous year); DIC Group (domestic): 158 t (-24% compared with previous year)
Volume of waste produced by production plants
DIC: 16,845 t (+1% compared with previous year); DIC Group (domestic): 65,251 t (+1% compared with previous year)

Volume of landfilled solid waste via zero-emissions activities
DIC: 53 t (-49% compared with previous year); DIC Group (domestic): 104 t (-34% compared with previous year)
Volume of waste produced by production plants
DIC: 17,006 t (+1% compared with previous year); DIC Group (domestic): 65,309 t (0% change compared with previous year)

Resource recycling rate
DIC: 71.9% (-6.1% compared with previous year)
DIC Group (domestic): 87.7% (-1.6% compared with previous year)

Continue domestic DIC Group’s recycling efforts and improverate of resource reuse

DIC: 324 t (+1% compared with previous year)
DIC Group (domestic): 750 t (-24% compared with previous year)

DIC: 332 t (+2% compared with previous year)
DIC Group (domestic): 667 t (-11% compared with previous
year)

DIC: 310 t (0% change compared with previous year)
DIC Group (domestic): 736 t (-25% compared with previous year)

DIC: 318 t (+3% compared with previous year)
DIC Group (domestic): 653 t (-11% compared with previous
year)

Risk assessment guidance was provided for affiliated companies.
Information on accidents and disasters at DIC Group (domestic DIC
plants, domestic affiliates, overseas affiliates) was shared with Group
companies via the intranet network.

Provide guidance on risk assessments in connection withequipment investment. Conduct accident analyses andprovide information in a timely manner.

Working groups were held on a regular basis and proposals weresummarized. Accident information sharing was carried out andinformation was distributed to Group companies.

Continue with safe corporate climate cultivation working groups
and summarize proposals from FY 2012.
Hold working groups and share safety information.

Annual energy consumption during transportation for the 2011 one-year
period decreased by 4.5% per unit of transportation

Continue to promote modal shift and reduce energy consumed
during transport by individual energy source by 1% per year

Yellow cards were carried in general freight vehicles including container
trucks, lorries, and vehicles with mixed freightContinue pursuing the same measures

In accordance with the DIC Group's Green Procurement Guidelines,
materials information collected was organized and centrally managed
using CIRIUS

Continue pursuing the same measures

SDSs were created for all chemical products and made available on
the Web

Continue to distribute SDS for all chemical products through the website. Introduce
a system for creating SDS for each country outside of Japan based on thatcountry’s laws and regulations and in that country’s language(s), and prepare an
operating environment enabling introduction of this system starting in FY 2013.

Conduct registrations based on China's amendment on Environmental
Administration of New Chemical Substances.
Undertake revision operations in order to create a list of existing chemical
substances for Taiwan.

Provide SDS based on China’s Regulations on Safe Management of Hazardous
Chemicals and ensure that labels are properly affixed. Carry out additional registrationsof existing chemicals in Taiwan. Complete registration within the current fiscal year of
substances that will reach their EU REACH registration period expiration in May 2013.

Publicized RC activities in the CSR report and on DIC's website, createdsite reports for each DIC business location, and provided this information
to plant visitors

Continue pursuing the same measures

Confirmed that each factory and business division has reliably
implemented QMS activities and that the Production, Sales, Technicaland Quality Assurance Departments have collaborated each other. Onceper year, audits are carried out by a specialized department (RCDepartment) to confirm improvements in customer satisfaction, andsupport measures to improve effectiveness are implemented.
In February 2012, held a meeting for personnel in charge of safety in the
Asia/Oceania region. Conducted training on environment and safety.
Carried out observation at local affiliates and provided support for points
that need improvement.
Confirmed the state of management at multiple companies in the DIC
Group (DIC (China) Co., Ltd. and DIC Asia Pacific Pte Ltd. overseas
affiliated companies), clarified management targets, and confirmed andsupported resolution of problem areas

RC Targets and Achievements of Major RC Activities

Energy use per energy source increased by 11.2% compared with 1990
levels and by 4.9% compared with the previous year’s levels

Utilize ISO 9001 and other such QMS as tools for carrying out
work efficiently, and promote improved customer satisfaction
through utilization of QMS
Identify and organize QMS issues within new systems while
supporting improvement activities, and enhance quality
management activities
Hold a meeting for personnel in charge of safety in the Asia/Oceania
region, conduct training in basic safety procedures and provide
support for points that need improvement at each company (holdmeetings in alternating years in the Asia/Oceania and China regions)
Provide support for points that need improvement at eachcompany in the DIC Group (overseas affiliates). Select officesthat are in need of special safety-related support, and provide
such support in cooperation with head companies in the regions.

17Corporate GovernanceWEB

http://www.dic-global.com/en/about/governance.html

Corporate Governance

Basic Concept of Corporate
GovernanceConcept and specific initiatives tosecure internal controls

The DIC Group considers corporate governance as “theEstablishment and operation of appropriate internal controls are

system in which decisions are made for the management policy

considered essential in order for a company to fulfill its socialand corporate executives’ business conduct is appropriately

responsibilities and achieve sustainable growth.

monitored, evaluated, and motivated in order to conduct healthier,

The “Basic Policy for Internal Controls”, which was resolved

more efficient, and better management with the aim of sustainable

by the board of directors, stipulates that internal controls arecorporate growth and development”.

established as part of the CSR activities in DIC. The contents of

In addition to appointing two external attorneys as outside

the establishment include compliance with laws and articles ofauditors, DIC also appoints two outside directors to further

incorporation, security of financial report reliability, management ofstrengthen corporate governance. We also have “Nomination

risks of loss, and security of appropriateness of work in a corporate

Committee” and “Remuneration Committee” with outside directors

group, etc. Specifics of the operation include the establishment

as part of members, as the advisory committees for the board ofof the business principle (including the whistle-blowing system),

directors in order to enhance the objectivity of decision-making

risk management activities by the CSR Committee, establishment

for appointment of candidates for DIC directors and executiveof various internal rules, and monitoring (internal controls audit,

officers, etc. and remuneration for them.

environmental safety audit, and Subcontract Act audit, etc.).

Meeting of stockholders
Corporate Governance Structure

Appointment

Board of directors

Nomination Committee
Remuneration Committee

President & CEO

Appointment
Audit

Accounting audit

Board of auditors

Accounting auditors

Executive Committee

CSR Committee

Sales Administrative Division, Product Division, Production Administrative Division,
Technical Administrative Division, R&D Division, Administrative Department, OfficeInternal Control Dept.
Internal audit

Supporting the UN Global Compact as a global chemicals manufacturerWEB

http://www.dic-global.com/en/csr/philosophy/management/gc.html

In order to fulfill its social responsibilities in the international community in a more proactive manner, the DIC Grouppledged its support and was registered as a participating company in December 2010 for the 10 Principles and Millennium
Development Goals (MDGs) which are advanced by the United Nations.
The UN Global Compact (UNGC) is a voluntary action principle for companies, which was proposed in 1999 in order toachieve worldwide sustainable development. More than 8,000 companies and organizations have pledged their support
based on the idea that worldwide sustainable development can be achieved if companies comply with international rules forhuman rights, labor, and the environment in the course of conducting business and fulfill social responsibilities.

18

Group
companies

Core theme

Compliance

Towards Fair and Transparent
Corporate Activities
WEB

http://www.dic-global.com/en/csr/philosophy/management/compliance.html

Basic Concept of Compliance

We promote the establishment of the “DIC Way Code of Business

Compliance in the DIC Group is to not only comply with laws

employees but also through e-learning. In addition, we also holdbut also respond to and meet social norms and requirements bystakeholders, such as customers, communities, and society.
We consider that the compliance and adherence to the “DIC
Way Code of Business Conduct”, which is the unified set of
guidelines to be followed by DIC Group employees, is the basis ofcompliance. We pursue actions that comply with this Code in thebusiness activities in order to achieve sustainable growth of fair

Conduct” not only by holding explanatory seminars for DIC Grouplegal seminars for employees who are newly employed, promoted
and transferred overseas in order to enhance their awareness ofcompliance.
The DIC Group will continue to never violate the principles set
forth in this Code, even if such violation would appear to be
profitable for the DIC Group. We also respect fair social norms
and act with social wisdom as a corporate citizen.

and transparent businesses of the DIC Group.

The “DIC Way Code of Business Conduct” embodies theprinciples of action based not only on compliance with lawsin every country and international rules but also on social
norms, expectations, and requirements of each country/region
worldwide in order for the DIC Group to not only fulfill its social
responsibilities as a corporate citizen but also accurately respondto the values required by stakeholders worldwide, such as
customers and societies, etc., and achieve sustainable growthof the group’s businesses. DIC Group employees are required tobase their decision-making for all of their duties and work-related
matters on this Code.

VOICE

Compliance

Program to Promote Compliance

System to maintain compliance
The DIC Group utilizes the whistle-blowing system. In case ofissues or questions regarding compliance, one can directly report
the matter to the president, auditors, and external attorneys, etc.
In case of such reports, we appropriately respond to such reports
according to the law while incorporating internal and external
opinions with the aim of finding and correcting wrongful conducts,
etc. in an early stage.
The DIC Group is operating globally and has established a global
compliance promotion system led by DIC Corporation (Japan),
Sun Chemical Corporation (Europe and U.S.A.), DIC (China) Co.,
Ltd. (China), and DIC Asia Pacific Pte Ltd. (Asia/Oceania) as thecore members.

Employee’s voiceCompliance guidelines by Sun Chemical

Sun Chemical Corporation

Mr. Eric Finkelman

Vice President and General Counsel

The Sun Chemical Group has established its own “code of business conduct and guidelines” in addition to the “DIC Way
Code of Business Conduct” and thoroughly complies with these rules. All employees are required to undergo the e-learning
courses and sign a letter of acknowledgement. By doing so, the group commits to enhancing and maintaining the awarenessfor compliance. In addition, the group also has established an ethical hotline to enable relevant parties within and outside of
the Sun Chemical Group to enhance the fairness and transparency of their businesses by thoroughly executing the reports
sent via this hotline.

19

BCM (Business Continuity Management)

Seeking to Reduce
Disaster Risks
WEB

http://www.dic-global.com/en/csr/philosophy/management/bcm.html

BCM (Business Continuity Management)

BCP Promotion by the DIC Groupus to quickly restore the business and fulfill the supply provision

After experiencing the difficulty of raw material procurement in the

training by company-wide task force based on this manual andGreat East Japan Earthquake due to the damage to raw material

enhance its effectiveness.

manufacturers, we have further recognized the importance ofIn addition, we have reviewed the risk management system and

BCP initiatives with more focus on the supply chain.

established the Risk Management Conference as a company-

Therefore, we have reevaluated the BCP for major products

wide organization. We will consider measures to respond towithin the group and begun considering the use of generalvarious risks and start initiatives to conduct a series of risk

products for monopoly raw materials and industrial coordination

management tasks, including risk identification and emergency

for product replacement involving the Purchasing Department andresponses, and risk management, which is individually conductedTechnology Department.

by each department, in a sectoral manner in the future with theWe will further promote BCM enhancement for the DIC Group by

aim of establishing an even stronger system.

responsibility of our products to customers. We will conductpromoting BCP in group companies, providing BCP establishment
support both in Japan, and overseas.

Crisis Management Initiatives
Enhancing Group Initiatives

As part of crisis management, we have held media training
targeting and top management. The contents were made highly

Based on the problem areas, etc. that were discovered after

effective by incorporating training with simulations in addition

the Great East Japan Earthquake, we have completed theto a lecture regarding crisis response by an external lecturer. In

emergency response manual that summarizes initial responses

addition, we have also prepared a manual based on the training

upon emergency. This stipulates responses upon emergency andwith the aim of sharing the information.

prior initiatives as it is important to quickly restore affected plants

We hope to enhance our risk communication initiatives on ain order to minimize the impact to business activities, It enables

regular basis and enhance the reputation in the future.

VOICE

Employee’s voice
General Affairs and HR Dept. Assistant Manager

Focusing on the establishment of the risk management system

Tomohiko Hamazaki

I am in charge of the office for the Risk Management Conference, which was newly established after the Great East Japan Earthquake.
The conference has prepared the emergency response manual that summarizes specific responses in case of earthquakes. We arescheduled to start preparing response manuals for various risks that surround our company. After the preparation of such manuals, wewill evaluate the effectiveness by conducting training and review the contents for further improvement.

20

Information Security

Initiatives to Ensure
Information SecurityWEB

http://www.dic-global.com/en/csr/philosophy/management/security.html

Basic Concept of Information
Security by the DIC GroupAs a specific operation guideline for our “Confidential Information
Management Regulations”, which was stipulated in 2009, we haveestablished the general “Information Management Guidelines”
and “Individual Guidelines” for confidential information that
require special management in 2011. In addition, we have notcompanies. In addition, we have been promoting thoroughstandardization of work flows in the new enterprise system,
which is currently being introduced in each group company, withthe aim of enhancing the security level, such as unifying accessauthorities, etc.

Information Security Initiatives
As part of the initiatives to enhance information security, we haveManagers” for each information management unit, such as

thoroughly promoted internal rules by establishing guidelines

business operations, etc., based on the regulation, but we havefor the management and usage of information devices, suchalso held internal seminars for regulations and guidelines withas computers and servers, and conducted employee training

the aim of enhancing the management system for information

for information security at new employee training and manager

security. In 2012, we will conduct internal audit in order to confirm

promotion training, etc. In 2011, we not only established athe establishment status of the information security system andcompany-wide integrated ID authentication infrastructure

confirm current issues in order to make further improvement.

but also established a management system for common IDs

Promotion and Enhancement ofInformation Security Response

Information Security

only appointed “Chief Information Managers” and “Informationand special authority IDs in order to enhance the system that
supports information security. The integrated ID authentication
infrastructure is already utilized for usage authorization for
integrated equipment and entry/exit management, etc. However,Based on the results of the current status evaluation of

we will deploy it to various internal systems, such as theinformation security systems in each group company overseas

new enterprise system, etc., in 2012. In addition, we are also

conducted in 2010, we have established standard IT governancescheduled to establish system infrastructure that enables safe

rules in 2011. In 2012, we will promote initiatives in preparation

utilization of smartphones and Wi-Fi, etc.

for the establishment of information security systems in eachgroup company with the cooperation of regional administrative

VOICE

Employee’s voice

Establishing an environment in which we can share
information with security

Intellectual Property Dept. Senior Manager

Michihiro Kono

DIC possesses a number of original technologies in a wide variety of domains and aims to display its total power by sharing/combining information. In order to promote this activity in an efficient and safe manner, we must clarity the rules regarding
information security and establish the environment and climate in which we can share information with security.
Therefore, we have established guidelines for information management for each type of information and held sessions toprovide explanations and exchange opinions in the 11 major plants. The employees’ understanding and awareness regarding
information security have clearly improved.
Although we still have a number of issues to overcome, I hope that the guidelines will surely be reflected to daily tasks in the
future and information sharing will be activated to produce great results.

21

Main and Categorized Themes

Environment, Safety, Health and Quality

Toward the Achievement ofa Sustainable SocietyWEB

http://www.dic-global.com/en/csr/environment/(Other activities based on the themes of environment, safety, health and quality are outlined in detail on the website)

Basic Approaches to and Initiatives in Environment, Safety, and Quality● Basic Stance and Main Initiatives
In 1992, to preserve the environment and secure the safety andhealth of people, DIC established the “Principle and Policy for

Policy for the Environment, Safety, and Healththe Environment, Safety and Health.” In 1995, DIC pledged to

As a responsible corporate citizen, DIC Corporation recognizes that care for the environment, safety, and health (ESH) is fundamental to the management of the Company. DIC
is committed to the concept of sustainable
development, and contributes to society
through our continuous business harmonized with global environment, including
biodiversity, and providing environmentallysound products and technology.

implement the precepts of “Responsible Care” in our everyday
operations. In January 2006, as a member of global chemical
corporations, DIC signed a declaration to support the Responsible
Environment, Safety, Health and Quality

Care Global Charter, promising to further strive to enhancethe environment, safety, and health of people. Also, in order

Quality Policy

to implement this policy, we prepare an annual “Policy for theContribute to the prosperity of customers and society by consistently providing reliable products.

Environment, Safety and Quality,” and translate it into English andChinese in order to disseminate the policy across the entire DIC
Group and to promote relevant activities.

April 1, 2012

Policy for Responsible
Care Initiatives 2012
Promote Responsible Care activities across the global network of
DIC Corporation
Establish a safety culture oriented
towards “zero accidents”
Set targets to reduce environmental
impact through business activities
and openly report performance andachievements
Manage chemical substance information in an appropriate mannerand inform customers of their safe
use
Support the redesign and restructuring of corporate operational systems
Yoshiyuki Nakanishi, President

DIC Corporation

FY 2012 Environment, Safety, and Quality Policy Poster

DIC’s Responsible Care (RC) Promotion Structure Chart

Product
Task Force

Responsible Care Dept.
Implementation

Sales Management Task Force
Technical Management Task Force
Production Management Task Force
Production/R&D(plants, R&D
centers)

Sales offices(sales divisions,branches)

Person in chargeof responsible
care

Environment/Saf
ety/Quality
Group

DIC’s Responsible Care (RC) Promotion Structure ChartTop
management
auditsDivision audits

Environment,
safety, and quality
audits for plants

Internal branchand sales
office audits

Responsible Care, Audit and Support Structure

As of April 1, 2012, DIC is utilizing a new Responsible Care (RC) Promotion Structure Chart as a basis for its continuing activities.
*See the following page for details:

22

WEB

http://www.dic-global.com/en/csr/environment/responsible.html

DIC Group Performance● Overview of Environmental Impact Generated by Our Business Activities
The following is a broad overview of the environmental impact generated by the domestic DIC Group’s business activities in FY 2011.
DIC Group (Domestic)*

Total water consumption

For details, seeYear-on-year,000m3NOx emissions

Emissions into water
Total emissions
Year-on-year,000m3

Production volume

Energy consumption (crude oil equivalent)Year-on-year* Renewable energy is not included in the above figures
Emissions into the air
CO2 emissions

For details, see

For details, see,000t

Year-on-year

Year-on-year

Amount of atmospheric emissions of the 567 substances
SOx emissions(and 1 substance group) targeted substanceFor details, see
For details, seeYear-on-year

Amount of industrial waste disposedof as landfill
For details, see,000t

Year-on-year

Year-on-year

Amount of atmospheric emissions of the 567 For details, see
substances (and 1 substance group)
Year-on-yeartargeted substanceAmount of atmospheric emissions of the
567 substances (and 1 substance group)targeted substance

Energy Consumption (crude oil equivalent)

Emissions into the air
CO2 emissions

Emissions into soil

Initiatives Related to the Climate
Change Problem,000t

Amount of industrial waste
disposed of as landfill,000t* See the following page for more information about the scope of the report:* Overseas data includes that from January 2011 to December 2011

Environment, Safety, Health and Quality

Production
volumeDIC Group (Overseas)

Year-on-year

COD emissions into wastewater For details, see

Emissions into soilWEB

http://www.dic-global.com/en/csr/pdf/dic_csr_scope_ja_2012.pdf

CO2 Emissions and Changes in Energy Consumption Index(Thousands of tons)(Energy consumption index)● Efforts to Reduce CO 2 Emissions
The DIC Group is working to meet its FY 2020 CO 2 emissions
reduction targets established in FY 2010 that use FY 2005 as thebase year.

● Energy-Saving Activities
As part of initiatives to conserve energy, we have (1) promoted
visualization of energy use, (2) performed energy-conservation(FY)(Base year)
DIC CO2 emissions (left axis)
DIC + domestic affiliate CO2 emissions (left axis)
DIC energy consumption index (right axis)

Energy Consumption (Crude Oil Equivalent) and Energy Consumption Index(Thousands of kL)

checks at offices, and (3) utilized bridge charts to analyze theTarget gor
2012worsening energy consumption rate per unit of production.

● Undertaking of Initiatives
Along with energy-saving and CO 2 -reduction measures, we
implemented “cool biz” and “warm biz” energy-saving campaigns(Energy consumption index)(Base year)(FY)

DIC energy consumption(crude oil equivalent) (left axis)
DIC + domestic affiliate energy consumption(crude oil equivalent) (left axis)
DIC energy consumption index (right axis)
Target energy consumption index per unit production (right axis)

as our main initiatives in FY 2011.

23

Reducing Emissions of Chemicals
into the Environment● Initiatives to Reduce Emissions into the Environment of
Substances Targeted for Study*
In FY 2011, the domestic DIC Group was able to meet its targets
for volumes of emissions into the environment by repairing

Atmospheric Emissions of Substances Checked(567 substances including PRTR-designated substances and 1 substance group)

DIC

Total emissions into the air 310t
Emissions into water 14t
Emissions into soil: 0t

DIC Group companies (Domestic)
Total emissions into the air 736t
Emissions into water 14t
Emissions into soil: 0t

324t

An increase of 1%(4 tons)
as compared with theprevious year

750t

A decrease of 24%(239 tons)
as compared withthe previous year

malfunctioning VOC combustion equipment, ensuring the proper
operations of other required equipment, and other such measures.

Reducing Environmental Impact on
the Air, Water and Soil

Changes in Atmospheric Emissions (VOCs) of Substances Checked(567 substances including PRTR-designated substances and 1
substance group)

Target for2012● Addressing VOC Regulations
DIC succeeded in its policy, initiated in FY 2007, of “reduction of
atmospheric VOC emissions by 30% by FY 2010 using FY 2000

(Base year)

as the base year” as a voluntary emissions reduction target toEnvironment, Safety, Health and Quality

limit the emission of VOCs.

(FY)

DIC + domestic affiliates

DIC

COD Emission Volumes● Soil and Groundwater Pollution Studies
The Water Pollution Prevention Act was revised in 2012. DIC
is already engaged in the testing of, and creation of measuresagainst, soil and groundwater pollution in accordance with theSoil Contamination Countermeasures Act and similar legislation,
and we sufficiently evaluate risks to safety and the environment.

● Reducing SOx, NOx and COD(Base year)

(FY)

DIC

DIC + domestic affiliates

SOx and NOx Emission Volumes

The DIC Group is striving to reduce SOx, NOx and COD throughreview of fuel sources for boiler equipment, proper managementof wastewater processing and other such measures.

● Compliance with Regulations for Dioxin Emissions
At all of our six facilities, we have achieved results far below
the standards specified in the Act on Special Measures against(FY)(Base year)

SOx emission volume:
NOx emission volume:

DIC
DIC

DIC + domestic affiliates
DIC + domestic affiliates

Dioxins.
Changes in Amounts of Industrial Waste Sent to Landfills

Reduction of Industrial Waste● DIC Group Initiatives to Reduce Industrial Waste
DIC began zero-emission activities in FY 2011, and domestic
Group companies are taking measures to reduce amounts ofTarget for2012

industrial waste sent to off-site landfills.

(FY)(Base year)

DIC* For details on substances checked, see the following page:

24

WEB

http://www.dic-global.com/en/csr/environment

DIC + domestic affiliatesOccupational Safety and Health
Initiatives● Basic Approach to Ensuring Occupational Safety and HealthAs an active member of society, the DIC Group recognizes that
ensuring proper consideration of safety, the environment and healthform the foundation of our operations, and we make every effort toincorporate this into all business activities in the following ways:

・Undertaking Responsible Care activities as part of overall Group
activities

・Striving to firmly establish a safe corporate environment with thegoal of “zero accidents”
Based on this fundamental approach, we strive to ensure
occupational safety and health.

● Risk and Hazard Assessment and Initiatives
Aiming to achieve safety and reliability, as a chemical material
manufacturer, DIC conducts environmental assessments while
promoting the development of recyclable, safer, energy-saving
products with less hazardous substances and less waste.
Seeking to build safe production facilities, we have establishedthe DIC Risk Assessment Guidelines for Mechanical Equipment
and utilize them at our business offices. When formulating facility
investment plans and renovating existing facilities, we use thePSM (process safety management)*1 risk assessment method.
We also provide educational programs regularly to our employees
concerning the safety and handling of chemicals by utilizing DIC
basic safety actions, safety guidelines for technology and research
departments, SDS, accident case studies and other resources.

● Our Measures in Distribution

There were three cases of occupational injury resulting in

To cope with emergencies while transporting chemicals, weemployee absence from work in FY 2011 at DIC (one case in FY

provide Yellow Cards* 2—not only to freight-exclusive vehicles

2010), and there were nine case within the domestic DIC Groupsuch as containers and tank trucks, but also to general freight(also nine cases in FY 2010).

vehicles which carry mixed loads. For the transportation of DIC

Although there was a declining trend in the number of accidents

products, we use special containers that comply with transport-

compared with the previous year, a similar decline was not seen in

related regulations such as the Fire Defense Law and United

the number of accidents resulting in employee absence. The DIC

Nations Standards.

Group is endeavoring to enhance its safety management activities
in order to further reduce the number of accidents resulting in
employee absence.

TopicsEnvironment, Safety, Health and Quality● Summary of the Status of Occupational Injuries*1 Process safet y management: Risk management to minimize accidents (and theimpact thereof ) caused by factors in a process (plant).
*2 Yellow Card: Relative to a voluntar y activit y promoted by the Japan Chemic alIndust r y A s soc iat i on (J CI A). T his c ar d indic ates c ont ac t infor mat i on and t heappropriate actions to be taken at the time of an accident during the transportationof chemicals for carriers, firefighters and police officers. All carriers of chemicals
are obligated to carry this card.

Kashima Plant makes great strides in environmental measures and cost reductions
through introduction of ultra-high-efficiency wastewater treatment equipment

With the goal of bolstering wastewater treatment facilities at the Kashima Plant, DIC installed one anaerobic wastewater treatment device (BIOIMPACT®
system manufactured by Sumitomo Heavy Industries Environment Co., Ltd.) and is making progress in wastewater treatment capabilities and enhancedenergy savings.
Chemical treatment of water generally utilizes activated sludge*, which requires oxygen, for an aerobic treatment
method that breaks organic components down into carbonic gas and water. However, this newly installed BIOIMPACT
equipment utilizes a speedy anaerobic treatment method (granular method) recently developed for practical application,
which quickly breaks organic components in the wastewater down into methane gas and carbon dioxide (CO2) in a tankcontaining high concentrations of anaerobic (not requiring oxygen) “granular” bacteria. This revolutionary wastewater
treatment system is garnering much attention for its reuse of the methane gas generated in plant operations, which help
achieve high efficiency, as well as for its contributions to reduced space and energy use, among other benefits.
At the Kashima Plant, this system is expected to bring about annual CO 2 reductions of 720 tons as well as major
decreases in operating costs.
*1 Activated sludge: A biomass comprised primarily of artificially cultured aerobic microorganisms.

Kashima Plant “BIOIMPACT” anaerobic
wastewater treatment system

25

Activities at
Business
Offices

Responsible Care Program at DIC Group Offices

The DIC Group is conducting Responsible Care programs globally. Various efforts such as ensuring production safety, energy conservation
and CO2 reductions are promoted at each plant in the DIC Group.

Activities for Safety
Improvement of Overseas Environment and Safety System
DIC Asia Pacific Pte Ltd. (operating subsidiary with locations in Indonesia and elsewhere)

The third Asia/Pacific Regional Safety Meeting (ASEAN ESH Meeting) for affiliates in Asiaand Oceania was held in Jakarta, Indonesia for two days in February 2012. Participants
included subsidiary manufacturing companies in the Asia/Oceania region, the headquarters RC
Department and CSR representatives for a total of 14 companies.
Along with sharing of occupational safety and health policies of the DIC Group, each company
Environment, Safety, Health and Quality

shared best practice examples with others present at the meeting. In addition, visits were madeto three plants in Indonesia, and all participants shared opinions on various topics on-site in
ASEAN ESH Meeting

pursuit of improvements at their own companies.

Overcoming Challenges Related to Information Visibility
DIC Kyushu Polymer Co., Ltd. (Japan)

DIC Kyushu Polymer manufactures synthetic resins and supplies them mainly to customers inwestern Japan. Starting in FY 2010, the Company organized and introduced case examples fromother companies and improved the visibility of information through displays and similar measures,
successfully changing their ways of thinking regarding safety and quality.
As a result, the Company thoroughly implemented the “5S” workplace organization method
in order to prevent misunderstandings, and combined this with measures such as complete
elimination of dangerous tasks and places, and promotion of danger-prediction activities in order

Visible information board

to achieve safe workplaces free from accidents, problems, etc. From FY 2011 to present, 1,500
product lots have been successfully classified as A-grade, and measures taken have not only
Plant main entrance

had a positive effect on safety, but have also helped improve quality, creating a synergistic effect.
Moving forward, the Company strives to further develop true visualization of information (sharingof problematic points, etc.) to achieve a plant environment that will be perceived as clean and safe

VOICEby everyone.

Employee’s voice

Active "Hands-on Safety Training" to Help Employees Experience

Tetsuya Morita

Manager, Environment,
Safety and Quality Group
Komaki Plant

Are you aware of the dangers posed by the machines you operate on a regular basis? Do you know if these machines have fail-safes installed,
and whether or not these fail-safes are functioning properly? What would you do to prevent yourself and coworkers from falling victim to accidents?
What areas in particular should you pay attention to? At the Suita Plant, hands-on safety training
was started as a way to help employees experience these issues using their whole bodies while
confirming and think about the above topics. By making use of this training equipment, starting in
FY 2012 we have been implementing mobile hands-on safety training at production sites throughout
Japan. In FY 2011, we cultivated hands-on safety training instructors: candidates for these positions
Experiencing a motor’s rotary force
firsthand26

were gathered from various plants around the country, and because they all displayed high levels ofawareness we are confident that they can provide effective safety training.

Activities for Environmental Preservation
Reducing Thermal Energy and Electric Power Consumption
DIC Australia Pty Ltd.
DIC New Zealand Ltd.

Environment, Safety, Health and Quality

At DIC Australia Pty Ltd. and DIC New Zealand Ltd., continual efforts are being made inaccordance with CSR policy to reduce environmental impact through reduction of waste,
improvements in energy efficiency during manufacturing operations and decreased energy use
at all business locations. Targets and action plans are set for each year, and information on levelsof progress and issues are shared at management conferences held each quarter in order toachieve planned goals. Specific examples of measures taken include recycling of cardboard,plastic and metal containers, and a service providing solvent refills for containers collected from
customers. In addition, timers are being installed on hot water tanks and other mixing equipment tocontrol operating time, lighting is being reduced in a way that does not affect resulting workplacebrightness, and other such energy-reduction measures are being carried out.

Promoting energy savings through use ofmaintenance sheets

CSR Promotion and Biomass Boiler Usage
DIC (China) Co., Ltd.

The Ecological Civilization Award

DIC (China) Co., Ltd. was selected to receive the 2011 GoldenBee CSR China Ranking “Ecological
Civilization Award” at the 7th CSR International Forum hosted by the WTO Tribune*.
In the GoldenBee CSR China Ranking, companies with outstanding CSR performance are selected
as “GoldenBee” companies and presented with an award utilizing the honey bee symbol, which
represents “social harmony” in China.
The Company was chosen because of its high evaluations in questionnaire surveys on CSR
activities they reported, and also because of high ratings for their carbon-neutral biomass boilers
utilizing waste wood as fuel, which are used by Deqing DIC Synthetic Resins (a manufacturerof hard resin used in ink) as steam boilers for heating and heat-retention of rosin and other raw
materials as well as for production-line heating.
* A monthly economic magazine put out by Chinese Ministry of Commerce(equivalent to the Ministry of Economy, Trade and Industry in Japan).

Initiatives Toward Acquisition of an Environmental and Occupational Safety Management System
DIC Pakistan Ltd.

DIC Pakistan Ltd. set the target of becoming a “safe and environmentally friendly company” as its
management policy, and in the first quarter of FY 2011 the Company kicked off a project to acquire
two types of management systems. The project was implemented in three stages: DIC Pakistan
introduced ISO 14001:2004 during the first stage, completed introduction of OHSAS 18001:2007
during the second stage, and during the third and final stage pursued integration of the two
management system standards, achieving certification under both on May 16, 2012.
Moving forward, the Company plans to further utilize its extant ISO 9001:2008 system standards,
environmental and occupational safety management system and similar systems to reduce
operating risk and contribute to sustainable development in society.

Project team27

Chemical Substances Management Initiatives● System for Accurate Provision of Information● Compliance and Employee Education with Overseas

Designed by DIC, the proprietary Chemical Substance Information

Regulations.

Comprehensive Management System—or CIRIUS—is used to

We quickly acquire information on the latest changes in overseas

help us comprehensively manage information about chemical
substances for our raw materials and products. CIRIUS is also
used to file the numbers of chemical substances manufactured,
imported and shipped as mandated by Export Trade Control
Order, the revised Chemical Substance Substances Control Law (alaw concerning regulations for the inspection, manufacture, etc.,
of chemical substances), and so forth.
The system checks domestic legal regulations while creating andproviding consistent and highly reliable SDS.

regulations and provide summaries to relevant departments,
provide information on the impact they will have on the Company,
and take action as appropriate. We also carry out general
education on overseas regulations for employees who arescheduled to work in other countries.
In addition, DIC has implemented an internal licensing program forimports and exports to ensure compliance. Through this program,
only employees who have passed DIC licensing tests can engage
in import and export work.

Quality Management Initiatives
Environment, Safety, Health and Quality● DIC’s Customer-First Flowchart

Requests from customers/market and societyPart visible tocustomers
DIC customer satisfaction realization
systemSDS
Technical
documents

Labeling
Packaging
Sample for
evaluation test

Contract / delivery specifications
COA (certificate of analysis)
SDS
Catalog
Product

Design review
Validation
Control of changes

Product evaluation
Trial production
Mass trial production

Production /qualityconfirmation

Information from customer
Requirements

Output from DIC
Products

Sales strategies
Quality assurance
Planning and proposals
Design anddevelopment

Marketing

Production

Contents/composition
Container / mode of packing
Consideration of environment
Workability and convenience in handling
Disposal after use
Safety level of raw materials
Conformity to laws and regulations
Productivity and capacity
Safety and stability of processes
Costs / stable supply

Products

DIC website
Customer consultation information
Technical service
Quality validation

Requests for improvement
Requests for cost reduction
Dealing with customer information
Top management diagnosis / internal audit
Market requirements
Self-regulation of industry

Business activities of DIC to deliver high-quality products that are safe and reliable● Primary Quality Initiatives
1 We made sincere efforts to listen to customer comments andto logically uncover the causes of those problems.

opinions and share them with manufacturing, sales, technical

3 At the DIC Hokuriku plant, we have introduced aand quality assurance departments. By incorporating thismanagement system that uses barcodes for the

information in quality improvement efforts, the number

management of raw materials and manufacturingof customer complaints declined 22% from FY 2010.

processes. Through this management system, we are

2 As part of efforts to take precise countermeasures

making even further improvements to product quality.

and prevent reoccurrence of problems, the DIC

4 All business locations of DIC Graphics Corporation havegroup has begun applying “‘Why-Why‘ Analysis”*

been unified through acquisition of ISO 9001 certification.

* “‘Why-Why‘ Analysis”: A method of repeatedly asking “why” to avoid jumping to conclusions about the factors of a problem and to ensure the logical and complete
identification of factors in order to prevent problem recurrence.

28

Human Resources Management

Striving to Improve
Job Satisfaction
WEB

http://www.dic-global.com/en/csr/stakeholder/staff.html

Goal of the DIC Group Human
Resources Management

develop the next generation of top management, etc. We have

DIC proactively makes efforts to respect the work life balanceetc.

also been making efforts in creating a database for national staff
human resources and establishing systematic training programs,of each and every employee and create a workplace that can
provide job satisfaction with the aim of becoming a company in● Providing More Opportunities for Female Employees

which all employees can exercise their full potential in jobs suited

DIS is working on "women's working opportunities promotion

to their abilities.

activities" eagerly so that they can exercise their full potential.
First, we have been continuing to establish work systems to
support “work and childcare balance” and providing management

The DIC Group clearly states to remove all human rights

training for management positions

infringement in corporate activities and to respect diversity in theas part of the efforts to establish a“DIC WAY Code of Business Conduct” and promotes businesssound workplace environment andactivities based on this philosophy. The group proactively holds

provide individual support to help

dialogues with external stakeholders and held the “Stakeholder

female employees expand their

Dialogue” on human rights/labor practice in 2012.

work opportunities. As a result, thePursuing Deeper Trust between
Labor and Management

number of female employees who
become qualified as candidates for
management positions has certainly

We make efforts in cultivating trust based on dialogues, such as

been increasing. DIC will continuelabor-management councils and casual management conferences,to promote female employees’

etc. with the aim of maintaining/improving healthy relationshipworking opportunities in the future.

with labor unions. Furthermore, we make efforts in sharing

In addition, we have also been

management information and visions in the labor-management

employing female new graduates

councils and exchange honest opinions with labor unions.

constantly. (Female ratio among

Diversity● Development and Employment of Global Human Resources

Human Resources Management

Respect for Human Rights

the college graduate employees inFemale employees working hard at the
manufacturing site in the Saitama Plant

2011: 35.7%)

The DIC Group has been establishing a system that enables us to● Promotion of Employment of Persons with Handicaps

develop staff for global management and employ human resources

The employment rate for persons with handicaps at the end ofregardless of their nationalities. Specifically, we have been

2011 was 2.1%, which is over the 1.8% of the legally required

promoting it in group companies in Southeast Asia in steps. These

employment rate in Japan. We will make further efforts to enhance

steps include the deployment of the human resources system forthe retention rate by streamlining the workplace environment andlocal employees, which had already been introduced in our groupproactively promote the enhancement of the workplace in which

companies in China, and provision of management training topersons with handicaps can work.

29

Number of Childcare Leave Program Participants(Number of participants)(Year)● Promotion of Re-employment
According to the Law Concerning Stabilization of Employmentof Older Person, DIC has not only established the system thatenables us to re-employ those up to 65 years old but also
been making efforts to secure re-employment opportunities by
also utilizing work sharing. With this system, re-employment
employees have been utilizing their previous experiences andWork and Childcare Balance Support ProgramChildcare Leave
ProgramRules concerning returning
The rule specifies that the person will return to her
to one’s previous (ororiginal (or equivalent) position after leave.
equivalent) position

exercising great skills and expertise that they have cultivated.

● Mental HealthChildcare While
Working Program

For the period between a child's birth and the following
8 weeks, a male employee can take childcare leaveof up to 5 days with the aim of creating an opportunity
for a male employee to participate in childcare as apartner in childcare.

Establishmentof the Economic
Support System

The system allows an employee on childcare leave
without pay to borrow part of her bonus.

DIC proactively promotes mental health management with the aim
Human Resources Managementof establishing a workplace in which all employees can exercise
their full potential. We conduct periodical self-checks for each
employee to comprehend their mental health and provide selfmanagement training and line care training. In addition, we havebeen establishing internal systems in the DIC Group in Japaneven including the provision of appropriate leaves, support forsmoothly returning to work, and prevention of recurrence in case
employees require recovery.

Initiatives to Achieve Work-Life
Balance

Regarding Childcare Leave Program, the maximum
length of leaves is “until the child becomes 2 years
and 6 months old”, which is 1 year more than the legal
requirement.

There is an internal loan system to resolve financial
concerns in case of large expenses for infertility
Information sharing treatment or childcare facility, etc.
to promote program The website in which DIC’s concept on work andchildcare balance and the summary and usage ofparticipation
various systems are clearly explained can be found on
our intranet.

Acquisition of the “Kurumin” Mark

DIC’s “Work and Childcare Balance Support Program” in Japan

DIC is acknowledged as ”FY 2008
Ac c r e dite d Emp l oyer s” by t he
Ministr y of Health, Labour andWelfare, as a company that actively
drives the Measures to Supportt h e D e v e l o p m e n t o f t h e N ex t
Generation.

stipulates a system that more than satisfies legal requirementswith flexible work styles, such as childcare leaves, various
leaves, and short working hours. We continue to make various
improvements in the operation so that they can be easily utilizedaccording to each employee’s situation.

VOICE

Employee’s voice
DIC (Taiwan) Ltd.
Sales Dept. 1 Manager

Experiencing the responsibility as a global company in the field

Hsin-Fang Chang

For 2 months from October, 2011, I took training in Japan, on not only liquid crystal-related work but also pigments andfunctional polymers. Furthermore, I also studied patent-related information and flow of application. Since I had only been
involved in sales activities for liquid crystal, I was able to expand my perspectives with the knowledge of various fields. Not
only that, but I was also able to experience the rapid changes of the market, strengths of competitors, harshness of raw
material and production costs, and the difficulty each department faces in response.
Since DIC deploys various products on a global scale, I especially felt the importance of communication with eachdepartment of each region.

30

In addition, we have been operating the system, in which antreatment, DIC has completely unified the qualification system

employee can select the course depending on relocation in the

regardless of the job type or education. For promotion selection

human resources system for general employees, since 2002.

for employee qualification, fair selection opportunities are given to

We have newly established the “relocation limiting system forall employees with motivation and skills by conducting selection

management positions” in 2012 for people in management

tests based on objective standards.

positions can also achieve work and life balance.

In addition, we also consider it impor tant for skills andperformance exercised by each person to be appropriately

Employment/development of
Human Resources
DIC promotes the enhancement of global human resources
development. In terms of Off-JT, we have started holding
training for young employees with the aim of cultivating global

satisfaction. Due to such perspectives, the HR evaluation system
has introduced a system based on “management by objective(MBO)”. Reflection of more transparent and legitimate evaluation
results on the treatment is made possible by employing the

Human Resources Management● Training Systemevaluated and reflected in a timely manner for their job

system in which the evaluation results, including the reasons, areprovided to individuals as feedback.
Overall image of the HR evaluation systemminds, understanding of different cultures, mental toughness,

In order to enable all employees to exercise their full potential
in jobs suited to their abilities and to fairly reflect this on their

VOICE

Carrier development
sheet● Performance-Based Employee Qualification System andFair Treatment

Individual

Process
evaluation

practical global human resources.

Execution of duties

overseas group employees come to Japan in order to developInterview

Additionally we introduced the Reverse Trainee System, in which

Setting ofindividual targets

overseas trainees from Japan to overseas group companies.

Setting ofdivisiontargets

training. In terms of OJT, we have increased the number ofResults
evaluation

introduced open-style area studies and global management

Superior

Semiannual evaluation Annual evaluation

Feedbackand English/Chinese learning. In addition, we have also newly

Bonus

SalaryPromotion
Skills development
Appropriate
appointment" → " parts are implemented on the intranet
Target setting, evaluation, feedback, and preparation of the careerdevelopment sheet are implemented on the intranet.

Employee’s voice

Experiencing the speed of China business as an overseas trainee

Fine Synthesis Technical Department

Kenzo Takeishi

I experienced being an overseas trainee for 1 year from February, 2011 in Guangzhou DIC International Co., Ltd. During mystay, I spent a lot of time with local staff and experienced various tasks, such as responding to customers, logistics-related tasks,
and responding to chemical substance-related laws and regulations, etc. In particular it was truly rewarding for me to be able todirectly experience the speed of China businesses in the course of my stay.
On the other hand, I struggled with the Chinese language outside of work. Chinese language focuses on tones, and people
would not understand you if you make even the slightest mistake. It was very beneficial that I was able to receive instructions in
the course of daily conversations. I still continue the studies after my return to Japan.

31Supply Chain Management

Globally Expanding CSR ProcurementWEB

http://www.dic-global.com/en/csr/stakeholder/partner.html

Basic Concept of Supply Chain
Management by the DIC GroupWe consider that the CSR of DIC Group supply chain is promoted
by each supplier fulfilling our CSR Procurement Guidelines.
The CSR Procurement Guidelines of the DIC Group consist of
9 items, including <I. Compliance with Laws/Social Norms>,<II. Respect for Human Rights and Consideration for Working
Environment>, <III. Promotion of Healthy Business Management>,<IV. Consideration for the Environment>, <V. Information
Security>, <VI. Appropriate Quality/Improvement of Safety andSupply Chain Management

Technologies>, <VII. Stable Supply and Flexible Responses toChanges>, <VIII. Contributions to Communities/Society>, and<IX. Promotion of CSR and Its Application in the Supply Chain>.
Based on this, we conduct questionnaire studies for guidelineachievement status and studies by visit to deepen the mutual
understanding.

Supply and Flexible Responses to Changes>, <VIII. Contributions
to Communities/Society>, and <IX. Promotion of CSR and Its
Application in the Supply Chain>.
Af ter this, we have visited some of the supplier s andcommunicated the evaluation results of each item and evaluation
by DIC and unified the decision-making standards of eachother. Furthermore, we deepened our mutual understanding by
introducing the CSR initiatives by the DIC Group. In the future, wewill request them to promote initiatives with the focus on the itemswith low evaluations in the studies by visit. We will also request
new suppliers to conduct questionnaire studies. We are scheduled
to explain the CSR procurement to Southeast Asian affiliates aspart of overseas initiatives.

Updating the “DIC Group
Supply-Chain CSR Deployment
Guidebook”

CSR Activity Status Studies

Upon the studies by visits with suppliers, we received a number

Based on the “DIC Group Supply-Chain CSR Deployment

Deployment Guidebook” questionnaire studies, such as “Indication

Guidebook”, we have conducted questionnaire studies with
suppliers for 2 years regarding the compliance status of our CSR
Procurement Guidelines. We have received questionnaire replies
from approximately 350 companies, which are over 90% of thepurchasing amount. In the questionnaire, they evaluated their own
status for each guideline on a scale of 3. The average value was
2.6. Items with low self-evaluation results included <VII. Stable

COMMENTof opinions regarding the “DIC Group Supply-Chain CSRof evaluation is difficult because the responding internalorganization is not clear” and “It is unclear how long ‘confirmation
by periodical studies’ is referring to”, etc. We felt the necessity to
prepare a section for suppliers’ comments, etc. in order to deepen
the mutual understanding through questionnaire studies. In the
future, we will consider the entry method/study contents, etc. andupdate the guidebook.

Stakeholder’s voice

We contribute to CSR based on the philosophy of“mutually prosperous relationship”

Kyoeisha Chemical Co., Ltd.
Quality Assurance Dept. Manager

Yasuhide Hirota

After listening to the CSR activities by the DIC Group, we have re-acknowledged the fact that they are promoting
enlightenment activities to all stakeholders.
We have also realized that the efforts toward “mutually prosperous relationship”, which we have been promoting for a longtime, are part of the CSR activities and made the decision to further enhance our activities. We will review the 9 items that weshould follow as a supplier again and promote activities in order to fulfill our social responsibilities.

32

Theme to Display Originality

Business Models to Improve Customer Satisfaction

Establishing a Solutions BusinessWEB

http://www.dic-global.com/en/csr/stakeholder/customer/satisfaction.html

Customer Satisfaction Striven forby the DIC Group2012. As a result, we have become a matrix type organization

The solution business striven for by the DIC Group is to combine

perspectives.

multiple products and technologies and propose total solutions

Since the sales organization now covers a wide range, we canfor customers’ concerns. We think we can enhance customer

now respond to customers’ concerns with integrated products andsatisfaction for the DIC Group by developing this solution

technologies rather than with individual products as we used to.

business. In addition, we also aim to establish a system that

In addition, we also think that we will be able to make proposals

enables us to make quick responses to changes in market needs

involving processes and equipment as necessary so that ourby activating marketing activities for each focus market.

customers will be able to fully utilize the integrated products and

DIC had employed the product-specific divisional system, so
we were not able to sufficiently capture the needs of the market
or overall society. In order to overcome such issues, we havecompletely discontinued the product-specific divisional systemand have been making drastic organizational changes since

Existing
organizations

Business Operation
Business Div.

Organization starting Newlyon April 1 established
Product Division
Newly
established
Sales Administrative
Division

Technical
Administrative Division

Technical
Administrative Division

Production
Administrative Division

Production
Administrative Division

and a product division that leads product strategies with global

Business Models to Improve Customer Satisfaction

Organizational Changes toEstablish a Solution Businesscontaining a sales organization covering each focus market

technologies.

Marketing Activities by DIC
The DIC Group also proactively promotes marketing activities
based on company-wide perspectives. We make efforts inenhancing the DIC brand values through comprehensive
introductory activities utilizing tools and opportunities, such as
product guidebooks, technology exchanges, and external shows,etc.
On the other hand, we also focus on activities to anticipate theneeds of the overall society, such as social requirements andmarket changes, etc. We select specific themes and consider
turning them into businesses by comparing needs information
gained through these activities and possibilities of the internal
technologies. Through such activities, we not only “propose
Color & Comfort by Chemistry” to respond to social requirements
but also contribute to achieving a society with sustainable
development.

VOICE

Employee’s voice

We strive for comprehensive initiatives

Advanced Technology Marketing Dept. Manager

Mariko Okihama

DIC possesses products and technologies covering quite a large range, and it is a manufacturer with the potential to turncustomers into DIC fans. I think the key to this is to make accurate proposals with speed for objects and matters that customers
need and to try to solve issues together with them. In 2010, we held lectures every month by inviting customers from various
demand industries as lecturers to discuss what customers in each industry strive for and what they expect from DIC. Now that
we have organizations for each demand industry, customers’ industries and DIC organizations can integrate with each other.
Not only that DIC is starting to make proposals with depth, but customers are also starting to see the advantages in dealing
with DIC. I think we will be able to further deepen proposals that sensitively capture industry trends in the future.

33

New Technology Development and Value Creation

Proposing Solutions Utilizing
Elemental Technologies
WEB

http://www.dic-global.com/en/csr/technology_development.html

What We Pursue in the Themes for New Technology Development andValue Creation
The DIC Group proactively promotes the development of next generation products and new technologies that lead to sustainable growth andmakes efforts in the development of high value added products by utilizing various elemental technologies, such as chemical structure designand dispersion, etc., based on synthetic resins and organic pigments, which are core materials. We focus on various domains, such as highperformance hybrid products, new materials/new high-performance materials, display/electronics, new energies, and life science, throughintegration of company-wide technical resources with the aim of developing new products/technologies that are original and competitive.
Correlation Diagram of Elemental Technologies
New Technology Development and Value Creation

Rheology

Dispersion

Chemical structure design

Elemental
technologies
of DIC

Coloring/decoration

Adhesion

Synthetic resins
Organic pigments
Cultivation/
hybridization

New materials/high-performance material
Display/electronics
New energies
Life science

Molding/filming

Specific efforts
We are making efforts in developing water-based and solvent-less materials as well as various environment-conscious products which can beutilized to create products with consideration for the environment in various fields, such as printing, electronic/electric products, automobiles,
and housing equipment, etc. that use our products.

● Various inks
With printing inks, we have developed offset ink in which printability has
been greatly improved by combining the elemental technologies of resin
design/pigment surface process/ink combination.
With gravure inks, we have
improved the gloss andadherence on films, which had
been the issue for urethane inks
that excel in reducing solvent
residue and recreating photolike prints, used in obverse

34

printing of food packaging, such as bread, etc. Sun Chemical has
developed various new products, such as sheet-feed printing inks andoxygen-barrier coatings, mainly for food packaging.
With inkjet inks, we have been developing not only water-based
pigments but also UV curable products for industrial use.

● Solar Batteries related products
In terms of solar batteries related products, we have developed weatherresistant and low-pollution UV curable Multi-Function-Glass Resin forprotection coating material for front sheet and back sheet adhesive
resin, which excels in humidity and heat-resistance. Sun Chemical also

provides etching resist, etc.

● Display/electronics

Promotion of environmentconscious products

We will strive to develop new products and technologies that
contribute to the society and increase the ratios of environmentconscious products with a great awareness for environmental

Products
With LCD panel-related

consideration. We will reduce the usage of toxic substances,promote the usage of products with less toxicity, and promote thefor large panels for TVs, etc. With organic pigments, we are focusing on

development of recyclable products and production processes

improving the performance of products for color filters. The brightening

with considerations to energy conservation with enhanced safetyof pigments contributes to the reduction of electricity consumption

and less waste, etc. Furthermore, we will continue to conduct

for backlighting. In addition, we have also developed a double-sided
adhesive tape with thermal conductivity to be used to release heat fromLCD TVs with LED backlighting. In addition to its heat releasing function,
it can also be handled more easily compared to the existing screws.
With epoxy resins, which are used to seal semiconductors or as materials
for PC boards, we have continually been introducing various differentiatedenvironmental assessment and observe the trends for legal
requirements and environmental measures throughout the world
in order to continue designing products that comply with chemical
substance regulations in each country.

products that are environment-conscious, such as halogen-free products,

Efforts for Future Issues

in the market in order to respond to customer needs in detail.

In 2012, we will further enhance our coordination with domestic

In addition, we have also been promoting the development of products inthe field of printed electronics*, such as coated transparent conductive
f ilm and leveling agent for
ultrafine coating with the unified
coating thickness of a nanolevel, etc.

New Technology Development and Value Creation

products, we have equipped the mass production system for TFT LCs

and overseas group companies and promote technicalhybridization with the perspective of global deployment. We will
also enhance our awareness for sustainability. We will consider
the LCA (life cycle assessment), through which we consider entire
lifecycles of our group’s products becoming final products andbeing used, recycled, and disposed of through our customers.
We will also make proactive efforts in identifying risks in the raw
material supply chain and the technical responses toward this* Printed electronics: They are attracting a lot of attentions due to the perspectivesof mass production, cost reduction, and environmental consideration, etc. as the“next generation manufacturing process” to create electronic circuits with printing
technologies.

VOICE

in order to provide our products to the market in a continual andstable manner.

Employee’s voice

About Developing UV Curable Type Multi-Function-Glass Resin

Polymer Technical Group 1

Koji Uemura

The MFG (Multi-Function-Glass Resin) that we have developed is UV curable resin with the durability that is unique to nonorganic materials and suitability for painting that is unique to organic materials. Since MFG coating displays a self-cleaning
property in which dirt is naturally removed with rain and water when used outdoors, it is ideal as a plastic coating material
used outdoors, such as front sheet for solar batteries and various plastic parts for automobiles, etc. We are making proactive
efforts to expand the usage as a superior environment-conscious product.

35

Harmony with the Community and Contribution to Society

For Colorful andComfortable Lifestyles
WEB

http://www.dic-global.com/en/csr/society/

Concept of Social Contribution by the DIC Group
Based on the Guidelines for Social Contribution Actiivities, which was stipulated in 2009. The DIC Group promotes activities with the focus onestablishing a healthy relationship with the society

Guidelines for Social Contribution Activities
Harmony with the Community and Contribution to Society

The DIC Group, based on its Management Vision: Color & Comfort by Chemistry will engage in social contribution activities inthe three areas of business activities, culture and education, and communities and societyWEB

http://www.dic-global.com/en/csr/society/guideline.html

Highlights of Social Contribution Activities● Initiatives Toward Color Coordination that is Harmonious
with Landscape
Development and Evaluation of New Tactile Paving Aimed
at Low-vision People

For the project, DIC Color Design proposed color schemes

The DIC Group promotes the development of colors and color

experiments by trial subjects and promoting the project for

combinations that can be recognized equally by as many people

practical usage.

as possible.

● Harmony with Society through Spirulina

Tactile pavement that indicate safe walking paths are consideredideal to have a clear contrast with the road by using highly visible
yellow color. However, urban landscape designers often feelthe color too vivid that does not harmonize with the surrounding
environment. Therefore, it is required to develop guide blocks thatsimultaneously fulfill safety and aesthetical requirements.
Associate Professor Kei Ito of the Institute of Molecular andCellular Biosciences at the University of Tokyo has been
attempting to use two different colors for guide blocks as acountermeasure to this issue. By using low intensity color forthe base part andsurrounding environments and cooperated in color selections
for the prototype samples. We have been repeating evaluation

The DIC Group has concluded a support agreement with
the Alliance Forum Foundation, which is active in supporting
developing countries, with “Spirulina Project”, to eradicate hunger
and improve nutrition promoted in Africa by the foundation.
In the Republic of Zambia, which is where the support is provided,
we have been working with local NGO organizations actively
in the area to improve nutrition through Spirulina rationing to
educational facilities since May, 2011. Furthermore, we haveacquired the permission to execute the project to measure theimpact of the Spirulina supplies from the Zambian government inFebr uar y, 2012. We

pale yellow for thehave started the efforts

protrusions, the new

to improve the chronic

blocks would not violate

growth deficiency of 1

the landscape while

to 3-year old children

securing both visibility(a p p r ox i m at e l y 6 0

and sign property.
Braille Guide Blocks

36

that simultaneously achieve functionality and harmony withchildren) in the village of

Support for the “Spirulina Project”

Kawamura Memorial DIC Museum of Art

Kanakantapa in cooperation with local volunteers since June, 2012.

Biodiversity Center was established in the break area in the vast

DIC LIFETEC Co., Ltd. has also provided Spirulina tablet packages

garden operated by the museum. The satellite displays panelswith high amounts of vitamins and minerals through the pharmacists

communicating the importance of biodiversity as well as leaflets.

associations of Miyagi and Fukushima and NPO to support thehealth of those affected in the Great East Japan Earthquake.

● Lab Lessons● Kawamura Memorial DIC Museum of Art

In response to children moving away from science, which has

DIC operates Kawamura Memorial DIC Museum of Art in
the museum’s 22nd anniversary, and the museum exhibits
approximately 1,000 internal artworks including impressionist art,such as Rembrandt, Renoir, Chagall and Picasso, etc., modern
Western paintings, contemporary art, such as Newman an Stella,etc., and Japanese art, such as Korin Ogata and Tohaku Hasegawa,etc. In addition to exhibiting these internal artworks, the museum
has held approximately 70 exhibits

These lessons with the title of “Making Life Colorful throughScience” utilize the characteristics of DIC’s businesses by
including experiments involving planography and simple pigment
synthesis. In 2011, we held lab lessons targeting over 300 sixth
grade students from 4 schools, including Matsudo municipal
Hachigasaki 2nd Elementary School, Kamihongo Elementary
Elementary School in Itabashi Ward. We will continue holding
these lab lessons by

have received a great reputation, and
DIC has been awarded the Mécénat

positioning them as partAward (Association for Corporateof important activities

Support of the Arts) in December,for “ Harmony with

2008 and Culture Promotion Awardt he C ommunit y andby the Western Art Foundation inContribution to Society”,

June, 2012.

COMMENT

that “science classes are closely connected to life”.

School, Matsugaoka Elementary School as well as Hasunedaini

until now. The high quality activities

In addition, a satellite for the Chiba

elementary schools with the aim of enabling them to experience

Harmony with the Community and Contribution to Society

Sakura, Chiba as part of the CSR activities. May of 2012 marked

become a social issue, DIC provides lab lessons to publicwhich is one of the CSR
Satellite for the Chiba Biodiversity
Centerthemes.

Lab Lesson

Stakeholder’s voice

We hope to provide children with learning opportunities that areconnected to life

Matsudo-city Board of Education
Lifelong Learning Department
Director of School Education

Hiroyuki Tohata

The city of Matsudo proactively promotes lab lessons by companies with the hopes that children realize the importance andjoy of learning by experiencing that studies in science classes are closely connected to life.
Our focuses upon lab lessons are safety and lessening burdens on schools in which these lessons are held. We think DIC isvery well prepared in that aspect as well.
DIC program has been held in elementary schools in Matsudo since 2010, and the contents are filled with attractions thattell us that colors of industrial products in our daily life are created and expressed with “chemistry”, which is an extension ofscience. These lab lessons are very beneficial as “career education” that develops children’s view on jobs, so we hope that
DIC would continue holding these lessons.

37

IPPO IPPO NIPPON

Local Junior High School Students
Experiencing Work

●Support for Reconstruction after the Great East Japan Earthquake
DIC participates in the “IPPO IPPO NIPPON Project”, which
is a project sponsored by the Japan Association of Corporate
Executives to aid reconstruction in areas devastated by the Great
East Japan Earthquake. Over the course of this five-year endeavor,
the Association will continue to appeal for corporate and individual
donations, which will be used to provide support, with the aim ofHarmony with the Community and Contribution to Society

fostering human resources and revitalizing local economies. DIC
has resolved to donate \5million annually to the project beginning in
2011.

Charity Jogging Held in Guangzhou

people who will lead the next generation to experience working
in order to acquire career or working views and proactively hosts
internship students, etc. “Saitama Plant” (Ina City, Saitama) that
manufactures UV paint, LC materials, and adhesive films, etc.
cooperates with the “Social Experience Challenge”, which isplanned by the board of education, and continually holds working
experience opportunities for 7th and 8th grade students. In 2011,
the plant held 4 opportunities and 12 junior high school students
participated from the community. They commuted to the Saitama
Plant for 3 days at a time and experienced light work, such as
inspections of products, packaging, etc. They presented what theyIn addition, DIC haslearned through work and exchanges with employees at school.

als o c o nt r ib ute d ¥ 5 0

These efforts are also promoted in Chiba Plant and Komaki Plant

million through the Japan(Aichi) and are highly regarded by the local communities.

Business Federation anddonated a total of 5,000
helmets manufactured by
DIC Plastics, Inc. to the● Support for Persons with Intellectual Handicaps

Miyako, Omoe and Taro

“Huiling” is an NGO that was established in 1990 by a Chinese

fisheries cooperatives andnational and supports persons with intellectual handicaps. It promotes

the city of Miyako, which

its activities in 8 locations in China. DIC Co., Ltd. (Guangzhou)

are located in Iwate. DIC

observed various activities of Huiling Guangzhou, deepened thewill continue to take anactive role in efforts aimed

Letter of Appreciation for the Helmet Donations from
the Mayor of Miyako, Iwate

at rehabilitating quake-ravaged regions.

● Proactively Supporting the Next Generation Development from Working
Experience for Junior High School Students to Training Cooperation for Teachers

understanding, and supported the philosophy. The company has
appealed for donations from both employees and the company.
In addition, 86 employees/family members participated in
the charity jogging, which was held in the “Oriental Resort
Guangzhou” in Báiyún area, Guangzhou, and held social
exchanges with persons with intellectual handicaps in May, 2011.

Each plant in the DIC Group holds opportunities that enable young

VOICE

Employee’s voice

Backup is Provided through Cooperation of Each
Department with the Focus on Safety

Saitama Plant
General Affairs Group

Chiharu Nakanishi

Saitama Plant has been hosting working experience opportunities since approximately 10 years ago. First, we communicate
safety cautions to children, and each department decides the work contents in cooperation with each other. Seeing papers
with honest opinions, such as “I’ve learned the difficulty of the society” and “I’ve experienced the importance of people’s
considerations as well as organization”, etc. after the experience and hearing voices of different departments, such as“Thanks to them, we’ve made a good progress in work”, etc., make us happy. In 2011, teachers also cooperated with thetraining to learn local industries and accepted plant tours. I think it is very beneficial for others to learn the technologies andmanufacturing of DIC through such opportunities.

38

Communication with Stakeholders

Promoting Communication and Information DisclosureWEB

http://www.dic-global.com/en/csr/stakeholder/society.html

Basic Concept ofCommunication Promotion

and investors, and take their remarks and requests into

The DIC Group considers communication with stakeholders toresults briefings per year but also participated in IR conferences

be important and makes efforts through various opportunities,

and small meetings organized by securities companies and heldsuch as dialogues, exhibitions, website, and event, etc. We strive

plant tours, etc. in order to enhance communication. For overseas

to gain sufficient understanding of stakeholders’ expectations

institutional investors, we held IR meetings, etc. in Hong Kongin order to reflect it to our actual business. In addition, we will

and Singapore in Asia, New York, Boston, and Toronto in North

also enhance our awareness on the concept of stakeholder

America, and London, Edinburgh, Paris, and Zurich in Europe

engagement, in relation to ISO 26000.

in order to enhance communication. In addition, for individual

consideration on our business management.
For institutional investors in Japan, we not only held two operating

Communication with Stakeholders

investors, we participated in the “Tokyo Stock Exchange IR Festa”(event aimed for communication with individual investors) as well

Ties with Customers

as company introductory sessions for individual investors. We

DIC has been trying to enhance our ties with customers throughefforts in enhancing ourcommunication. Especially in 2011, with customers in the electric/

information provisionelectronic product industries, we have focused on communicating

initiatives through ourthe latest products/technologies by not only participating in

website.

have also been making

exhibitions for FPD (flat panel display) and solar batteries but alsoTokyo Stock Exchange IR Festa

hosting technology exchanges with customers, etc.
On the other hand, we have established the “DIC Interior SquareTokyo”, which is a show room displaying major products, inNovember of 2011 in order to propose solutions to customers inTies with local communities

the field of architecture and housing. We have also participated in● Hokuriku Plant was Awarded the Energy Conservation

the International Graphics Arts Show “IGAS 2011” and introduced

Grand Prize

the “DIC Digital Color

On February 1, 2012, Hokuriku Plant was awarded the “Chairman

Guide” to many visitors

Prize of ECCJ” at the 2011 Energy Conservation Awards whichand promoted it as aare sponsored by Energy Conservation Center (ECCJ) with thecommunication tool.

cooperation of the Ministry of Economy, Trade and Industry. The
honor was given in recognition of the plant’s system for reducing
DIC Interior Square Tokyo

Ties with Shareholders andInvestors

energy consumption, which employs visual representation toclarify energy consumption. The following day, February 2, Sayaka
Hashimoto of the Hokuriku Plant’s Utility Control section took thestage to talk about the plant’s goal of capitalizing on its awart-

The DIC Group strives to make fair, appropriate and timely

winning system to establish itself as a world-class production

disclosure of information, closely communicate with shareholders

facility.

39

At the Ceremony

Initiative by Hokuriku Plant

Hokuriku Plant employs visual representation aimed at, among
others, clarifying energy use by application, reducing the amountof energy used per unit of production and rationalizing energy

Guide's Traditional Japanese Colors collection”.
In March, a workshop was held at Yawata Hanazono Kindergarten
in Tagajo, Miyagi with DIC employees.
In addition to this, DIC promotes “color education activities”,

costs. Of particular note, the plant has implemented a four-

such as color seminars for nursery teachers and color education

step energy management system that creates a detailed visual

workshops for young children utilizing the “DIC Color Guide”, etc.

representation of energy use through infrastructure development

in order to communicate the vast color variations to children sinceand the visualization of energy data for steam lines up to the
production floor entrance, as well as of product-specific energy
use per unit of production and manufacturing data. The system
Communication with Stakeholders

enabled the plant to achieve a 220-kiloliter reduction in annual
energy consumption, calculated in tons of crude oil. The plantalso publishes a short newsletter outlining its various energy
conservation initiatives on the DIC Group’s intranet

2011 with the aim of promoting communication with the society
through colors.

Ties with Employees
The DIC Group promotes rejuvenation of communication with
employees through various efforts and tools.
DIC also held 36 town meetings in 2011 as opportunities for the● Color Education Project“Making the Cherry Trees Blossom with Love”

president and employees to directly hold dialogues. In addition,

DIC has launched the color education project “Making thea global scale by issuing the English and Chinese versions ofCherry Trees Blossom with Love”. In this project, sets of heartshaped stickers (made to look like cherry blossom petals) and apasteboard with painted cherry tree trunk/branches were given
to 34 nursery schools and kindergartens in Iwate and Miyagi.
The idea was to have children affix the blossom petal stickers to
the tree branches to make their cherry tree burst into bloom. The
stickers made to look like cherry blossom petals consist of 12

40

we strive to have closer communication among employees on“DIC Plaza”, which is an internal seasonal magazine that widely
introduces topics from various departments and plants in thecompany. Furthermore, we have also launched a website called“Comfort Cafe” in order to promote employee enlightenment
toward CSR through the intranet in 2011. We promote sharing of
information for environmental issues, which the DIC Group should
strive to solve through business activities, by covering the “climate

delicate colors, which were carefully selected from the “DIC Colorchange issue”, etc.

Cherry Blossoms in Full Bloom with the Hands of Children

Employee Enlightenment Website “Comfort Cafe”

Third-Party Opinion
for CSR Report 2012

The Japan Research Institute, Ltd.
Counselor, Head of ESG Research Center

Eiichiro Adachi

Conducts industrial surveys and corporate evaluations in connection with corporate social responsibility
focused on measures to address environmental issues. Provides financial institutions with corporate
information to be used for socially responsible investment (SRI) and environment-focused financing.
Involved in the publishing of "The 15th Corporate White Paper-Market Evolution and CSR Management"
as a member of the "Market Evolution and Corporations in the 21st Century" working group organized
for the KEIZAI DOYUKAI (Japan Association of Corporate Executives). He was Japan expert for the
ISO 26000 working group from March, 2005 until May, 2009. Author of such books as "An Introductory
Guide to Environmental Management" and "Environmental Problems Illustrated for Businesses."paid to the enhancement of risk assessment for chemical

I have focused on the section “accurate grasp of evolving

substances/products overseas, we were also forced to takesocial imperatives, and respond with solutions that deliver the

another look at the ways of risk management for scientificvalue that its stakeholders expect from the DIC Group” in thetechnologies after the nuclear power plant accident in Japan.

beginning of this report again.

In March, 3 applications were filed for an industrial accident

Part of the DIC Group’s perspectives on the “evolving social

case by employees who were at a printing plant in Osaka thatimperatives” and “expectations by stakeholders” is included inthey were diagnosed with bile duct cancer. While the cause isthis report’s “Special Topics”, and I read this with great interest.

unclear at this point, the Ministry of Health, Labour and Welfare

The chart surrounding “Social Issues” on page 6 and the articles

instructed printing industry organizations to take appropriatecomprising of “Social Issues” and “DIC’s Initiatives” in pairsmeasures for chemical substances in May,2012.

included in case examples were extremely clear and easy to

It was beneficial for me to be able to learn from this report that

understand.

the DIC Group makes efforts in proactively participating in risk

I think it probably would have been more effective if thesemanagement improvement programs and designing more low-

expressions were also used in other sections of the report.

transfer products. I hope that the group will continue to enhance

For example, there was hardly any mention of “how customer

their activities in this domain with anticipation of the future,requirements have changed” in the article of “Businessincluding the application of the precautionary principle, andModels to Improve Customer Satisfaction”. I hoped to learn

voluntarily disclose information.

the objectives of performance enhancement in relation to the

Finally, DIC Group’s management vision includes the sectionsociety in this section.

“Propose Color by Chemistry”. I expect that there are a number

I assume that the theme “prioritize the “security of safety/of aspects in which colors can be used as effective approaches

environment /health” while maximizing the benef its ofto “social issues”. Although this report contains several

chemical products” in “Special Topics” on page 10 cameexamples, I think the report would be extremely interesting iffrom the perspectives of “changing needs of the society” andDIC could pursue the opportunities in a comprehensive manner“expectations by stakeholders”. While more attention has beenand report the results if possible.

Third-Party Opinion

This is my third year to read the CSR report by the DIC Group.

I have provided this third-party opinion for the ways of CSR activities and information disclosure by the DIC Group which I have understood through this report from theperspective as one who provides corporate information to financial institutions for the sake of socially responsible investment. This opinion is not intended to provide
judgment concerning whether or not this report has been accurately measured and calculated in accordance with the preparation criteria for environmental reports, etc.
that are generally regarded appropriate or whether or not this report covers important items without omission.

41

2012
English version

2012

English version<Contact>

Corporate Communications, Dept.
DIC Building, 7-20, Nihonbashi 3-Chome, Chuo-ku, Tokyo 103-8233, Japan
TEL: +81-3-5203-7782 FAX:81-3-3273-7586

http://www.dic-global.com/en/csr/

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