CSR REPORT2009
English version

Editing Policy

Contents
Corporate Data/Description of Business,
Major Products/Financial Highlights

1

A Message from the President

2

4 〜 15Special Topic

1 Workshop - Thinking CSR from Executives’ Viewpoints

4

2 Energy Restructuring Project at the Kashima Plant

6

3 The Hokuriku Plant’ s CSR Measures

8

4 Contribution to a Colorful Society: the DIC COLOR GUIDE®

105 DIC Group Products Contributing to a Sustainable Society

12

CSR of The DIC Group16

Corporate Governance / CSR Promotion System

17

Report on Our CSR Themes

18 〜 51

Report on Compliance18

Report on BCP (Business Continuity Plans)

20

Report on Information Security

21

Report on the Reliability of Financial Reporting

22

Report on Supply Chain Management

23

Report on New Technology Development and Value Creation

24

Report on Environment, Safety, and Quality

26

Report on Our Business Models Focused on Customer Satisfaction

41

Report on Human Resource Management

42

Report on Harmony with the Community and Contribute to Society

46

Report on Information Disclosures of CSR

50

DIC CSR Report 2009 Independent Review

52

General Awards Received

53

The DIC Group has incorporated CSR into its management
policies since FY2007, established “CSR Themes,” and is
working ceaselessly to promote corporate activities thatreflect the needs of society. In selecting the description
contents of the FY2009 Report, the DIC Group conductedan ‘evaluation of materiality’ based on the following
reference guidelines for each of the society, economy andenvironment from the perspective of considering what
is important to all stakeholders and the DIC Group. In
consideration of the completeness, the items which should
be reported are determined from the activities which the
DIC Group is promoting.
The details on the scope of the applicable report on the“environment, safety and quality” , are reported on P30 ofP30this report.
<Linkage with Website>
The WEB mark ( WEB ) is indicated in the portions where
the detailed data or related information can be seen, as a
guide to the related pages on our website.

Reporting Period
Target Domestic Companies
April 1, 2008 to March 31, 2009 (FY2008)
Target Overseas Companies
January 1, 2008 to December 31, 2008 (FY2008)(Some of the FY2009 topics are indicated)
IssuedSeptember, 2009
(The next issuance is scheduled for September, 2010.)
Reference Guidelines
GRI “Sustainability Reporting Guidelines 3rd Edition,”
ISO26000 (CD) Issued December, 2008

Cover Design“Sunflower Drawn by Children”

CSR REPORT2009
English version

Data Compilation

54

One of the characteristics of a sunflower is the“flower head.” Inflorescence is a characteristic
where a group or cluster of flowers creates aflower.
Hence, the portion which we regard as the flowerof a sunflower is a group of petals, which is acollection of flowers.
Based on such characteristics, the image of thehorizontal organizational ability of the DIC Group
which creates a sunflower blooming towards the
future was drawn by the hands of the next
generation (the hands of DIC employees’ children).

Financial Highlights

Corporate Data (As of March 31, 2009)
Registered name:
Corporate headquarters:

Date of foundation:
Date of incorporation:

DIC Corporation

Net Sales

DIC Building, 7-20, Nihonbashi 3-Chome, Chuo-ku,
Tokyo 103-8233, Japan

10,000February 15, 1908

10,048

10,157

10,779

2004

2005

2006

2007

9,323

8,000

March 15, 1937

6,000

Paid-in capital: ￥82.4 billion
Number of employees:

4,186 (non-consolidated), 23,613 (consolidated)

Domestic operations:

One branch, nine branch offices,14 sales offices and12 plants (non-consolidated)

Number of aﬃliates:（Billions of yen）

10,029

4,000
2,000
0

2008 （Fiscal year）

209 domestic: 47, overseas: 162, including 81
companies in the Sun Chemical GroupOperating Income

Operations:500

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

300（Billions of yen）

514

495

482

484

400

254

200
100
0

Graphic Arts Business Operation*

2004

2005

2006

2007

2008 （Fiscal year）

Printing inks, printing supplies, organic pigments

Net Income

Industrial Materials Business Operation（Billions of yen）

310

Synthetic resins, additives and chemicals

300

High Performance and Applied Products Business Operation

250

225

200

Special compounds and colorants, building materials, petrochemical-related
products, chemical coatings, pressure sensitive adhesive materials, plastic
molded products, healthcare foods

150
100

106
53

50

Electronics and Information Materials Business Operation

0

Imaging and reprographic products, liquid crystal (LC) materials, engineering
plastics, hollow fibers

Others

2004

26

2005

2006

2007

9,695

9,918

9,783

Total Assets

Color & Comfort (Decorative materials)
10,000*Reorganized to become the Graphic Arts Materials Business Operation as of April 1, 2009.

9,988（Billions of yen）

7,385

8,000

Electronics and Information
Materials Business Operation

Others4.7%

High Performance andApplied Products Business Operation

3.5%

2008 （Fiscal year）

6,000
4,000
2,000

13.2%
￥9,323

Breakdown of sales
Industrial Materials 17.2%
Business Operation

million0Graphic Arts
61.4% Business
Operation

2004

2005

2006

2007

2008 （Fiscal year）*These graphs have been prepared from the accounts maintained in accordance with the provisions set
forth in Japan’ s Commercial Code and Securities and Exchange Law. The scope of consolidation differsfrom that used for the purposes of this report. In fiscal 2008, DIC had 175 consolidated subsidiaries and
34 affiliates.

Global network

EuropeNorth America

58

16

companies

companies

67

6

47 Japancompanies

Asia

companies

Africa companies

2companies

Oceania

13

Central andcompanies South America

1

A Message
from thePresident
TOP COMMITMENT

The DIC Group aims to strengthen its business foundation and achievesustainable corporate growth, by sensitively responding to social demands
and voluntarily continuing to take action, ahead of global changes.
Moving Steadily Forward As a Unique
Chemical Corporation
D I C s t a r t e d i t s b u s i n e s s e s i n 19 0 8 a s a p r i n t i n g i n k
m a n u f a c t u r i n g a n d s a l e s c o m p a n y. H a v i n g p r o m o t e dglobalization from the early stages of its business development,
DIC now boasts a global network of 209 DIC Group companies
in 63 countries, and develops its businesses in wide-ranging
fields, particularly printing inks and synthetic resins. The DIC
Group offers diversified various high-performance products
developed by utilizing core technologies such as dispersion,synthesis, and particle control technologies and provides theseproducts to wide-ranging industries including graphic arts,
automobiles, electronics, housing construction, food products,
textiles, and so on.
The global recession since last year has also affected ourcustomer industries in various ways. Amid this severe economic
climate, I assumed the post as Company President. During
the time of changes like this, I strongly believe there is anurgent need “ to build a business constitution enabling us tomake profit by proposing new business models.”, by fully andoptimally utilizing our inherent management resources.

The best way to bring our management
resources into full play
The DIC Group has been developing our businesses in material
fields such as: synthetic resins and organic pigments; their

2

CSR REPORT 2009

applied products such as printing inks; high performance
products such as industrial adhesive tapes; and electronics& information materials such as liquid crystal compounds.
In addition to wide-ranging technologies and products, our

Promotion of CSR Management for Our
Sustainable Development

specific management resources include: market information

The DIC Group strongly emphasizes the importance of CSR

gathering and technological development capabilities inin our business management. Our Group’s CSR is based on

various industrial fields, close relations with our customers,

the idea that we can fulfill our social responsibility throughand our overseas networks. The DIC Group is organized into

our business activities and contribute to the development

divisions along product lines. At present, each division isof the society. A company cannot last without contributing

responsible for its own marketing and sales individually.

to stakeholders including customers, investors, and local

However, to develop our businesses in the forthcoming

communities. To promote concrete measures in our CSR

era, it is necessary for us to create new markets by utilizing

activities, we have set out our CSR themes for the foundation

our existing technologies and knowledge. At the same time,of our business management: new technologies, compliance,

we combine all of the DIC Group’s management resources,

human resource management, harmony with the community,

depar ting from our traditional way of developing eachand information security. For each of these CSR themes, we

individual business separately by product. In addition, it ishave assigned departments to adopt initiatives to promotealso necessary that we accurately accommodate what ourour CSR activities. In addition, since 1995, we have also beencustomers need at each moment. For an instance, we areworking on Responsible Care activities, as our environment

positively striving for various developmental themes at ourand safety management. Here, we have been working on

Corporate Marketing Department, e.g. solar-cell materials,

harmonizing our production activities to global environment

by centralizing strategic and marketing func tions at ourthrough activities to reduce the environmental impact andHeadquarters when necessary depending on theme.

greenhouse gas emissions.

The DIC Group clearly envisioned the values we would seek

The DIC Group aims to become “a company with visions andin our management vision,“ Color & Comfort by Chemistry”,

vitality”, by valuing initiatives and the sense of responsibility ofannounced in 2007. In our belief that creating and expanding

each one of its employees.

the new business models will lead to the embodiment ofour management vision, we are currently in the process of
formulating a detailed roadmap to realize this vision.

Representative Director, President & CEO

3

1

Special Topic

Workshop - Thinking CSR from Executives’ Viewpoints

The DIC Group has been officially incorporating CSR in our management since fiscal 2007. In our CSR
activities, we have been focusing on “risk management” in its promotion from a viewpoint to create an
opportunity from our potential risks. Since 2007 to 2008, to remain in tune with our social responsibility
requirements and social demands, we promoted risk identification activities throughout the DIC Group, foreach business division and the Saitama Plant. In May 2009, to deepen our awareness of social issues frommanagerial perspectives, we also held a workshop for our top management executives.

A scene from the workshop

A total of 33 DIC top management executives (executive officers
and division presidents) attended this workshop, including
representatives of our overseas Headquarters (China andSoutheast Asia). Prior to the workshop, each of our officers
referenced the list of sustainability-related issues, including
those indicated in ISO26000 (CD), guides on social responsibility,
identified the current social issues, and reviewed their relations
with our businesses.
At the workshop, we invited Mr. Kazutaka Okubo, Certified
Public Accountant of ERNST & YOUNG SHIN NIHON LLC as alecturer. After deepening our understanding in a brief overview
of CSR and the issues threatening the sustainability of the global
environment, society, and the economy, we adopted key themes
such as “the global environment”, “globalization”, and “awarenessreform”, divided into 3 groups, and discussed “what the DIC
Group should do for the next generation.”
Our officers actively exchanged opinions, shared awareness on
the corporate issues the DIC Group should tackle, sorted them allout, and investigated each countermeasure.

4

The DIC Group will utilize the results of discussions at theworkshop in setting out our future CSR policy and priority
subjects and in managing targets at each of our divisions.

Divisions having participated in the workshop:
Corporate Strategic Planning, Public & Investor Relations
Purchasing and Logistics
Human Resources, General Affairs, and Legal
Financial and Accounting
Technology and Production Management
R&D
Business Operations
Graphic Arts; Industrial Materials; High Performance &Applied Products; Electronics and Information Materials
Osaka Branch
Chinese Business Management
Asian Business Management（）

CSR REPORT 2009

History of CSR activities of the DIC GroupAnd the fourth stage
Special Topic 1

Since 2007
CSR

The DIC Group will further strive to meet the demands of society inaddition to the risk management we have worked on.

Since 2003
Risk Management

The third stage was“Risk Management”

Since 2001
Compliance

The DIC Group introduced a risk management structure,in the manner which facilitates the integration ofrisk management program and compliance functions.

W o r k s h o p - T h i n k i n g C S R f r o m E x e c u t i v e s’ V i e w p o i n t sStages of evolution (expansion) of the targeted areas“CSR”

Since 1908
Observation of Laws

The second stage was“Compliance”
The DIC Group has been in compliancewith both laws and social norms.

The first stage was“Observation of Laws”
Ever since the foundation of DIC

VOICE

VOICE

Mr. Kazutaka Okubo,

Kaiji Yamaki,

Partner, Certified Public Accountant, ERNST & YOUNG SHIN NIHON LLC

Director and Managing Executive Officer (CSR Committee Chairman)

Working on CSR involves changing mindsets from corporate-centered to society-

CSR management is often considered, for example, as risk management for

centered. As the economic problems intensify, we tend to focus on benefits

corporate misdoings and the promotion of corporate social contribution aimingfrom a short-term point of view, or localized issues. However, by positively

for environmental protection. However, through this workshop, it became clear

working on social issues, companies can not only avoid potential risks but also

once again that the Corporation aims for sustainable growth by incorporating

obtain opportunities to explore potential businesses. To make CSR efforts morevarious social issues into our own corporate businesses. We must change ourpractical, it was significant that top management executives took the initiative

traditional mindset, namely “viewing society from a corporate perspective,”to identify the social issues surrounding their business fields, and engaged in

to a new mindset of considering corporate ideals from a social perspective.

thorough and intensive discussions at the workshop concerning measures to

In addition, when considering from social viewpoints, in order to promptly

solve them through their business activities.

respond to changes in environment and social

Despite the limited time available forawareness, this workshop showed how vital it

discussions, this workshop provided opportunities

is for the continuous growth of the Company tofor active discussions on specific issues fromhave all employees enhance their sensitivities,

managerial perspectives. Taking this as anwhile top management executives should

opportunity, I hope that the Company willcontinue corporate management based on thiscontinue striving to incorporate CSR issues

heightened employee awareness.

positively to their management and work on
concrete measures to address such issues.

COLUMN

Risk Identification Measures at Business Divisions and the Saitama Plant
In fiscal 2008, the DIC Group conducted risk identification projects at all 18 divisions, and the Saitama
Plant. Some of our domestic subsidiaries joined the projects at our divisions and more than 200 members
participated. In the projects, to ensure the continuous growth of the DIC Group, we identified all possible
risks at our field sites, conducted a risk assessment to transform them into business opportunities, andinvestigated countermeasures.
Risk Identification Project at the Saitama Plant

5

2Special Topic

Energy Restructuring Project at the Kashima Plant

The Kashima Plant is our production site for products such as organic pigments, base inks, and engineering plastics.
Its annual energy consumption totals approximately 20,000 Kl in crude oil equivalent, the most energy consuming
plant in the DIC Group. To date, the Kashima Plant has been positively introducing carbon-neutral equipment
such as a steam boiler fueled by wooden debris as well as gas turbine co-generation facilities to reduce energy
consumption and CO2 emissions. Now, as the steam boiler fueled by wooden debris ages and fossil fuel prices
increase still further, we decided to restructure our energy supply facilities. From fiscal 2008, by introducing Hitachi,Ltd.’s ESCO project*, targeting a drastic reduction in fossil fuel usage and CO2 emissions, we started full-scale
operations of wind power and biomass electric power generation facilities utilizing renewable energy.
*ESCO (Energy Service Company) project: Hitachi Ltd.’s project to provide comprehensive services such as energy saving proposals and the provision,
maintenance and management of facilities.

Renewal of Biomass Electric Power Generation Facilities
In 1985, the Kashima Plant introduced a woody biomass boiler asa pioneer at the time. Now, to cope with the aging facilities andto aim for further expansion of renewable energy utilization, we
renewed our biomass electric power generation facilities.

treatment equipment such as multi-cyclones and bag-filters. All
combustion ash generated will be recycled as roadbed materials.

The biomass electric power generation facilities consist of asteam boiler (evaporation: 30t/h) and a steam turbine electric
power generator (4,000kW), fueled by wooden debris mainly
made of construction waste wood chips as fuel. The steam
generated from the boiler operates the steam turbine, while someis extracted and sent to thermal sources at the manufacturingsite. All the electricity generated by the generator directly
connected to the steam turbine will be sent to areas inside thePlant.
By fully exploiting our abundant operational experience, fromthe carrying-in of the wooden chips to their supply to the boilers,
we are maximizing our labor-saving. As environmental protection
measures, our boilers are also equipped with exhaust-gas

Exterior of the Biomass Electric Power Generation Facilities

Introduction of Wind Power Facilities*The front side of the canal shows the premises of the DIC Kashima Plant

S ize of t he windm ill

Wind gauges are installed at the upper part of the towers.
When the average wind speed measurement exceeds 2.5m/s, they
will start generating electricity. With a rated wind speed of 14m/s, they generate electricity equivalent to the energy consumptionof approximately 2,000 general households. When there is nowind or wind speed exceeding 25m/s, they automatically stop andthe generated electricity will be consumed within the company.
Together with biomass electric generation, they will significantly
contribute to reduce fossil-fuel energy consumption and CO 2
emissions.

70m

100m

The Kashima district is located on the Pacific Ocean coastline withgood wind conditions and an average wind speed of 5.5m/s. To
utilize this natural environment, we commenced the full-scale
operation of Japan’s largest wind power electric generation facilities
from April 2009. These facilities employ variable speed operations,
including 2 wind power generators with 3 rotary blades, featuring
the pitch control method. They are made by ENRCON Services, Inc.
in Germany and have a rated output of 2,300kW.

CSR REPORT 2009

backup reflux boiler, we can now cope with a drastic increasein steam demand, enabling us to significantly reduce fossil fuelconsumption.
Additionally, by introducing large-scale wind power facilities,
we are promoting the positive use of renewable energy, shiftingfrom our traditional energy-saving measures of consumption
reduction.

Purchased electric power

En e r g y R e s t r u c t u r i n g P r o j e c t a t t h e K a s h i m a P l a n t

From fiscal 2004, Kashima Plant started its energy-restructuring
project. In fiscal 2008, to further increase the proportion ofenergy generated by the biomass boiler in energy consumption
at the Plant, we additionally installed a biomass boiler, while
also introducing steam turbine electric power generation
facilities to enable biomass power generation and steam supply
to accommodate energy demands. In addition, by installing aSpecial Topic 2

Energy Restructuring Project

Electric power

No. 4 Biomass boiler(30 tons)

Wood chips

New biomass boiler(30 tons)

Steam turbine

Wind power generator

Powergenerator(4,000kW)(2,300kW×2 generators)

Plant load
Steam

Once-through boiler for backup

Heavy oil

(Total: 30 tons)

Effects of the Restructuring
In fiscal 20 09, commencing full-scale operation of wind
power facilities in addition to the biomass electric generation
facilities will reduce the Kashima Plant’s energy consumption
by approximately 56% to 8,780kl/year and its CO 2 emissions

by approximately 78% to 8,800t CO2 /year from the fiscal 2004
level before restructuring. In addition, the reduction at the Plant
significantly contributes to the energy saving of the whole DIC
Group.

Before the Restructuring Plan

After the Restructuring Plan

(FY2004)

Purchased electric
powerElectric
power

Purchased electric
powerWind PowerElectric
power

Steam

Wood chips

Steam

Kerosene

Wood chips

0

Amount of energy
consumption (kℓ/year)
CO2 emissions(t-CO2/year)

10,00020,00020,00030,00040,00050,0000

10,000

Amount of energy
consumption (kℓ/year)

8,780

CO2 emissions(t-CO2/year)

8,800

39,25020,00030,00040,00050,000-56.1%※2-77.6%*2 -56.1%: The reduction is due to a reduction in the use of fossil fuel energy.

VOICE

Satoshi Hirano, Energy Department, Kashima Plant
From fiscal 2004, we have been working on a 4-year energy restructuring project. As its final stage, we completed the constructionof wind power facilities. As the person in charge of safety management at the Plant, I am grateful that we were able to complete
the introduction without any accidents or disasters and it was an extremely valuable experience for me. The most impressive of
all was the installation of the towers by using a 550t movable crane, one of few such cranes existing in Japan, as its operation
required advanced operational technology and I was deeply impressed. We will manage their safe operation as a new symbol of theKashima Plant. At the same time, we will continue our efforts to reduce energy consumption from fossil fuels.

7

3

Special Topic

The Hokuriku Plant’s CSR Measures

The DIC Hokuriku Plant*1 is located in Hakusan City, Ishikawa Prefecture(in front of JR Komaiko Station). Its area is approximately 150,000 m2
and it employs approximately 200 employees. It is the only DIC plant on
the coast of the Sea of Japan. Over the past 36 years of its operations
since 1959, it has not experienced a single disaster. In addition, the Plant
has earned ISO14001 and ISO9001 certificates and is strengthening its
efforts in environment conservation and quality control.
*1 The Hokuriku Plant was renamed from Mikawa Plant on Feb. 1, 2005.

Hokuriku Plant facing the Sea of Japan

Front Gate of the Plant

Global Environment Protection Activities in Product manufacturing
The Hokuriku Plant produces mainly synthetic resins, which are generally known as plastics. Those produced in the Hokuriku Plant are thermoset
resins that harden when heated and do not revert to their original state, even when cooled down. They are materials used in a wide variety of areas,
including printing materials, imaging and reprographic media, IT and communication-related products and car-related products. The Hokuriku Plant
also produces a variety of products, such as fluorine surface active agents, fluorine fire extinguishing agents, and water-based paints for drink cans.

Production Process for Synthetic Resins
Inputting materials Mixing

Reactions

Taking out/Filling

Chemical raw materials such as acrylic monomers are input in thesynthetic resin production equipment and the products are
manufactured by chemical reactions such as polymerization andcondensation. The input of raw materials and temperatureadjustments are strictly controlled by computer.

Product inspection/Shipping

The product is filled into a drum orcontainer according to the needsof the customer. We strive to
reduce waste by recycling cleaning
solvents and other means.

To reduce greenhouse gases

The product quality is closely inspected
before shipping. An MSDS (Material
Safety Data Sheet), a form containing
information required for the safe handlingof chemical substances, is prepared.

A GHS (Globally Harmonized Systemof Classification and Labelling ofChemicals) label is placed on the
products, before shipping out toboth domestic and foreign customers.

Recycling of organic solvents

We switched the energy source used inplants from heavy oil to LNG*2 (liquefied
natural gas), with lower carbon dioxide
emissions, and successfully reduced CO2
emissions by 2,500 tons from last year.

We maintained efficient recovery andsafety in organic solvent recover yfacilities, reduced the amount used,and engaged in recycling activities touse global resources efficiently, which
resulted in the recovery and reuse of
750 tons of organic solvents.

INPUT

RECYCLE[ Product inspection/Shipping ]

Motor

Raw
materials

FilterMixer
Heating/Cooling

ReactorTransfer pump

Raw material tank

Tank lorry

Product

OUTPUT

Filling
Exclusive-use container

Products tanks

Drum

OUTPUT

To keep the air clean
Exhaust Gas and liquid wastes
generated from production activities
are put through combustion treatment
facilities to reduce air pollutants to
below the legal limits for air without
pollution.

To make the waste water clean
As the activated sludge treatment facilities have been
installed, the discharged water meets and significantly
exceeds the legal standards. Moreover, in orderto achieve a zero emission level, the excess sludge
generated in the waste water treatment process has
been reduced by 190 tons from the previous yearor 13% per product weight. Furthermore, all excess
sludge is effectively used as fuel in cement production.

*2 LNG:Naturul gas mainly consists of methane (CH 4),Clean energy with less-emissions of CO2 and SOx by 20-30% in comparison with heavy oil.

8

CSR REPORT 2009

Special Topic 3

Activities in Local Communities
The DIC Hokuriku Plant prioritizes communication with those in local communities. While the Plant works onlistening to the voices of neighboring residents, it also participates in events of the neighborhood association.
The Plant annually sponsors the “Komaiko DIC Festival”, which is now an established annual event in theregion with more than 1,000 people attending. In addition, the Plant is actively participating in environment
protection activities, including pine forest preservation and the Tedori River cleanup campaign*3.
*3: For details, please also refer to the articles of following section in this Report: “Harmony with the Community and Contribute to Society”.

Main products

Resins for paints
Resins for toners

Delivery

Welcoming people of
Minato-machi,Hakusan CityT h e H o k u r i k u P l a n t ’s C S R M e a s u r e s

P49

Final application*5

Main customers

Coatings forink jet printing

Beverage
manufacturers
Tonermanufacturers
Paints for cars

Conversion into paints

Water-based urethane resins
Reactive hot-melt resins
Resins for adhesives

Adhesives
manufacturers

For artificial/synthetic leathers
Urethane resins

Artificial leather
manufacturers
Synthetic leather
manufacturers

Toners forcopier printers
Paints forhome electric appliances
Paints, adhesives,
glues for cellphones
Paints/Adhesives forbuilding materials

Water-based
paints for drink cans

Artificial/synthetic leather

Can manufacturers

Paints for drink cans

Fluorine surface active agents
Fluorine fire extinguishing agents *4*4 Please refer to the article“DIC Group Products Contributing to a Sustainable Society”

Liquid crystal
panel manufacturers
Fire extinguishing
agent manufacturers

Liquid crystal panels/
Films for liquid crystal panels

P12*5 Our products are used in various other applications as well as the above.

VOICE

Mr. Kenichi Matsumoto, Mikawa Branch Office Director, Hakusan City Office
The DIC Hokuriku Plant commenced operations in 1959 as one of the few chemical plants in Hakusan City. Ever since its
establishment, the Plant has gradually expanded its scale, to now become a leading high-quality company in the city. The Plant
has been actively engaged in and regularly worked on activities to preserve the pine forests in its neighborhood, while devoting
its energies to ensuring safe operations. It is working on communication with neighboring residents through events such as the“Komaiko DIC Festival”, with an aim to become more open plant to the neighborhood. We hope that the Plant will continue its
further development as a company which keeps close communication with the region and the community.

94Special Topic

Contribution to a Colorful Society: the DIC COLOR GUIDE®

The DIC Group provides color sample books in the form of the DIC COLOR GUIDE® series, to facilitate smoothercommunication and the assured reproduction of specific colors, based on our management vision, Color & Comfort
by Chemistry. The DIC COLOR GUIDE® series plays an important role in sharing and communicating delicate colors
that reflect personal sensitivity with others. In this section, we will introduce certain examples of the utilization of
the DIC COLOR GUIDE® by our customers who actually use the Guide in their businesses in various industries.

What is the DIC COLOR GUIDE ® Series?
The DIC COLOR GUIDE ® was created in 1968 as a set of color
samples for offset printing inks. Ever since its creation, the
DIC COLOR GUIDE ® has been used in various manufacturing
sites including printing, industrial products, and construction.
Currently, in addition to the original DIC COLOR GUIDE®, we haveits follow-up, the DIC COLOR GUIDE® Part 2, as well as traditional
color series, JAPANESE TR ADITIONAL COLORS ® , FRENCHTRADITIONAL COLORS ®, and CHINESE TRADITIONAL COLORS ®.
With the expansion of its lineup, the DIC COLOR GUIDE® series
now covers a total of 2,230 colors. Delicate colors selected fromdesigners’ perspectives have been playing active roles not only in
its original purpose of a tool to specify printing colors, but also in
use as catalysts to expand the imagination in wide-ranging fieldsof graphic arts materials, fashions, interiors, construction, andproduct designs.

Construction

AGC Monozukuri Training Center

More than 100 Communications
with 100 Colors
The “AGC Monozukuri Training Center’s accommodation facilities”
were constructed as one of Asahi Glass Co., Ltd.’s centenary
projects. The facilities consist of 100 rooms for trainees, 25 rooms
for lecturers, a dining hall, and large common bathrooms. 100
kinds of Japanese traditional colors are used for the interiors of therooms to highlight 100 different individualities.

Mr. Nobuaki Miyashita,
Deputy Manager, Designing Dept., Main Office,Takenaka Corporation

10

The reason for choosing colors from the JAPANESE TRADITIONAL
COLORS ® is the fact that they are ideal for long-stay rooms andcan also convey the Japanese cultures and mentality in quality
manufacturing; not only to Japanese guests but also thosefrom abroad. In addition, we hope that these colors will provide
opportunities to trigger communications among our guests. In
constructon, a 1% difference in coloration is vital, and the wide
range of color choices provided by the DIC COLOR GUIDE® is adefinite advantage. Especially the traditional color series is quite
attractive as their color names alone can stimulate our imagination
alone. The DIC COLOR GUIDE ®, together with the complianceguidebook, is ever-present on my desk. Without JAPANESETRADITIONAL COLORS ®, the concepts for the construction of the
facilities would never have been realized.

CSR REPORT 2009

FashionSpecial Topic 4abx「HAPPY BIRTHDAY POLO-SHIRT」

A Tool to Invoke the Imagination

Co n t r i b u t i o n t o a Co l o r f u l S o c i e t y : t h e D I C CO L O R GU I D E ®

HAPPY BIRTHDAY POLO-SHIRT is a 25th anniversary item of
the abx brand, a series of polo shirts in 12 different colors, each
reprenting each month from January to December. The Shirts
have been well received by both our customers and hence sales
staff.
The idea came to me while browsing through the FRENCHTRADITIONAL COLORS ®. To depict the abx’s concepts, namely
Modern, Stylish, and Comfortable, I always keep the FRENCHTRADITIONAL COLORS ® close at hand and usually browse in
it whenever I have a chance. That is how I get inspiration, notonly for designing but also when I think of a project with color
themes.
The Traditional Colors Series include explanations for eachcolor, which always tempt me to read them. In addition, eachcolor name has something to inspire the imagination and the
Guide is a must for my planning.

Mr. Akimasa Sakai,
Planning, abx Dept., FREE’S INTERNATIONAL CO., LTD.

Stationery

uni COLOR 240 LIMITED EDITIONDIC COLOR GUIDE ® Creating Innovations
The “uni COLOR 240 LIMITED EDITION” is a set of 240 color
pencils specially designed for the 50th anniversary of our “uni”
pencil brand.
When developing new products such as color pencils, I always
use the DIC COLOR GUIDE® series in our planning stage. In the
240 color set, we introduced many colors from the JAPANESETRADITIONAL COLORS ® and FRENCH TRADITIONAL COLORS ®,as those never previously used for traditional color pencils. In
particular, the metallic and pale colors, the first for color pencils,
are technically difficult to manufacture. For this reason, this productwould never have been materialized from the manufacturer’s
viewpoint without the help of DIC COLOR GUIDE®.

Mr. Suguru Yazawa,

Indeed, the use of the DIC COLOR GUIDE ® sparked various
innovations in our development process, such as improvementin the manufacturing processes and reconsideration of raw
materials. We plan to continue creating pens, pencils, and otherwriting instruments, which can inspire people’s imagination tocreate new cultures by utilizing the DIC COLOR GUIDE ® in our
product planning.

A ssistant Manager, Gunma Research andDevelopment Center, Mitsubishi Pencil Co., Ltd.

11

5Special TopicDIC Group Products Contributing to a Sustainable Society

DIC was established in 1908 as a printing ink manufacturer and sales company. Currently, the company
develops wide-ranged businesses, including printing inks, organic pigments, synthetic resins, functional
products, and electronic information materials, providing various products to support the lives of people
while also responding to social needs. Many of DIC Group’s products play important roles in our society inplaces where people cannot see them directly. In this section, we introduce some of these products.

Left and lower right pictures: large capacity water-discharge test with real fire-extinguishing foam Upper right: large capacity water supply pump with an underwater pump

■ Fire-Extinguishing Foam to Combat in the Emergency of Large-Scale Tank Fires
Fire-Extinguishing Foam for a LargeCapacity Foam Water Cannon SystemWEB12

http://www.dic.co.jp/en/products/fluoro/

MEGAFORM ® CV-1’s Features
1. It is a 1% dilution t ype foam. In comparison withthe traditional 3% dilution type, the stock volume of
the undiluted foam solution can be 1/3, facilitatingtransportation in emergencies. In addition, it is ideal
for large capacity foam water cannon systems for water
discharge exceeding 10,000 l/min. for120 minutes.
2. It is aquaous film forming type with viscosity to cope withwide-ranging foam water cannons.
3. Since it is an aquaous film forming type, it suffers from lessdecay degradation in comparison with other types of fireextinguishing foams and withstands long-term storage.
4. Depending on the locations of petroleum complexes inJapan, it can be diluted with fresh water or salt water.

In September 2003, a large-scale petroleum tank fire occurred at
the refineries in Tomakomai City, Hokkaido during the Tokachioki Earthquake. Following this disaster, the Act on the Preventionof Disasters in Petroleum Industrial Complexes and Other
Petroleum Facilities was partially revised. With this revision, by
November 30th, 2008, 12 wide-area common disaster prevention
organizations in Japan were obliged to ensure the installationof large-capacity foam water cannon systems. In response, DIC
with approximately 30 years of technologies in fluorinated fireextinguishing foam and a strong track record of their delivery
to public fire-fighting organizations, developed new fireextinguishing foam, MEGAFORM ® CV-1, for large capacity foam
water cannon systems, in cooperation with Miyata Industry Co.
Ltd., which also boasts distinguished technologies and highdelivery records for fire-extinguisher system and equipment.

type fire-extinguishing foam for large-capacity foam watercannon systems. It has already been introduced to 11 of 12 areasin Japan as equipment for emergencies.

MEGAFORM ® CV-1 received the first approval of its kind inJapan from the Minister of Public Management, Home Affairs,
Posts and Telecommunications in February 2008 as a 1% dilution

MEGAFORM ® CV-1 is manufactured at our Hokuriku Plant. For
further details, please also refer to the following section in thisP8
Report: The Hokuriku Plant’s CSR Measures.

CSR REPORT 2009

Delnature ® FineWEB

Special Topic 5■ Reproducing Delicate Wood Surfaces Appearance and Texture of Natural WoodNIPPON DECOR, INC. websites: http://www.n-decor.co.jp/english/

D I C G r o u p P r o d u c t s Co n t r i b u t i n g t o a S u s t a i n a b l e S o c i e t y

NIPPON DECOR, INC. has been producing wide-ranging products
including house building material sheets, various surface
decorative sheets, and 3D copy sheets, utilizing gravure printing
technology and abundant design software nurtured for the pastquarter century since its establishment.
Decorative sheets are used for substrate surfaces such as
plywood for furniture, household equipment, housing interiors,
fixtures, and finishing carpentry materials. Delnature ® Fine,NIPPON DECOR, INC.’s wood-grain patterned decorative paper, isa paper-based (impregnated paper) decorative sheet. By skillfully
combining advanced printing technologies and optimal printing
materials, delicate wood surface appearances and the texture ofnatural wood are realistically reproduced.
Additionally, it does not use 4 VOC raw materials (toluene,
xylene, ethyl benzene, and styrene) designated by the Printers’
Association of Japan. Furthermore, since it is paper-based,
its VOC emissions are less than those of plastic-film-based
decorative sheets. It is also easily recyclable and is designed in anenvironmentally friendly manner.
Delnature ® Fine realizes “Color & Comfort by Chemistry” byadopting designs to stimulate both visual and tactual sensations,while being more environmentally-conscious.

A variety of Delnature ® Fine’s wood-grain patterns■ Harmonizing Environmental Consciousness and Good Design
Our Products for Film-Laminated Cans
Film-laminated cans are laminated by plastic films both inside andoutside of steel cans. Their superb designs, including the deep
expression and high brightness achieved by gravure printing,mean they are often used in wide-ranging applications such as
for canned coffee.
Generally, film-laminated cans employ reverse printing on theback of the film so that the prints can be viewed from the front
side through the film. With our technology, in addition to inks forthe reverse printing, DIC developed inks for obverse printing on
the topside, representing a world’s first in the practical applicationof this technology. With this technology, DIC can provide an
unprecedented sense of high quality, e.g. in a matt finish. In
addition, we also developed OP (over print) varnish and adhesive
agent, eliminating the use of solvent and heating processes tohelp save energy in can-manufacturing processes. Furthermore,a drastic reduction in painting and printing processes is achieved,
helping to reduce the overall environmental impact.

OP varnish
Plastic film
Gravure ink
Adhesives
Steel plate
Adhesives
Plastic film

Structure of a film laminate can13Special Topic

5

DIC Group Products Contributing to a Sustainable Society■ Our adhesive products have been used for various applications including OA,
AV, cellular phones, and automobiles
DIC has a long history of manufacturing adhesive products for more than 40 years. By utilizing ourtechnologies in adhesive compounds and coatings, we have been providing various products such as
adhesive films for printing and industrial adhesive tapes. Recently, these products have been highly
evaluated for outstanding performance and are also widely used in fields such as office automationequipment, automobiles, and electricity and electronic applications especially for cellular phones.

DAITAC ® Industrial Adhesive Tapes:#8800CH and #8810TDR
WEB

http://www.dic.co.jp/en/products/daitac/industrial/double.html

DIC has various industrial adhesive tapes using nonwoven fabric,
films, foam, metallic foils as substrates and coated with highperformance adhesive compounds featuring removability, lowVOC, no solvents, impact resistance, repulsion-resistance, andlight-shielding properties.
For printers and copiers, to reduce the time required fordisassembly when recycling equipment, use double-sided
adhesive tapes instead of screws to fix parts inside the machines.
Our double-sided adhesive tape, #8800CH, provides bothfeatures to resist peeling when in use, and to be easily removed
when disassembling.
In addition, #8810TDR is used to fix the automobile interiormaterials and home electric appliances. It is low-VOC andremovable to make more environmentally conscious product.

DAITAC ® Adhesive Films for Printing,SUPER-ECOCYCLE ®
WEB

http://www.dic.co.jp/en/products/daitac/print/super_eco.html

SUPER-ECOCYCLE® is a material for adhesive labels and stickers.
It is an adhesive film for printing, which emphasizes the reductionof environmental impact from production to disposal.
Its surface substrate is polyolefin, which does not emit chlorine
gas when burnt, while its adhesive compound is a waterborne
emulsion that can reduce the environmental impact causedby organic solvents in manufacturing. In addition, its releasing
paper does not employ polyethylene-lamination, hence it can berecycled as waste paper after use.
It is popular as a onepoint seal (eye-catchinglabel) to promote sales ofcosmetics and toiletries.

Images of its usage

DAITAC ® Series[ Cellphone ][ Cars ][ Air conditioner ]●To fix the nameplate andmembrane switch, etc.

●To fix the protection sheet●To fix the meter panel
and the screen panel●To fix various devices,●To fix the key sheet
including the car navigation andcar audio systems●To attach the liquid crystal●To fix the shift lever panel, etc.
panel and the backlight unit
●To fix the liquid crystal module, etc. ●To fix and protect the wire harness[ Copier ]●To fix internal
components, etc.

14

CSR REPORT 2009

■ Our Plastic Pallets Contributing to a Recycling-Oriented Society
Special Topic 5

DIC PALLET® was first produced in 1971 as the first plastic pallet made in Japan. Ever since, it has been
contributing to help protect forest resources, save resources, reduce distribution costs and improve healthmanagement at field sites, with its high durability, extended operating life, and recyclability. Today, it also
contributes to zero-emissions (zero waste) in other industries such as food products and petrochemicals.

Recycling of Waste Plastics

WEB

DIC originally developed the SG method – the sandwich gas
assist molding method. This enables waste plastics, which havebeen disposed of as industrial waste, to be recycled and usedas raw materials for plastic pallets. The traditional method of
simply mixing recycled and virgin materials provides productswith deteriorated physical properties and functions, and requires
a certain level of quality in recycled materials in the mixture,
while making it a challenge to control uniform colors in the
products. The SG method, however, is a manufacturing processthat maintains physical properties and the beautiful exterior ofvirgin materials, by sandwitching recycled materials between
virgin materials. In addition, by simultaneously injecting gas whilemolding, high productivity can be realized. With this method, we
can be more flexible whenever we choose the recycled materials
to be used in the products, and pursue more active use of waste
plastics such as PP (polypropylene) bands and films as recycledmaterials.

D I C G r o u p P r o d u c t s Co n t r i b u t i n g t o a S u s t a i n a b l e S o c i e t y

As one of the measures targeting zero emissions, efforts torecycle (and reuse) waste plastic have been strongly urged bysociety.

http://www.dicpallecon.jp/en/

A hollow space createdby gas bubbles
Core layer: PP recycled materials
Skin layers: PP virgin materials

Plastic palette formed with the
SG method

Cross section drawing of a palettemade with the SG method

TOPICS

From 2006, when shipping Beaujolais Nouveau by air, DIC’s plastic pallets
have been used. While traditional wooden pallets weigh approximately 15kg,
our plastic pallets are lightweight at only approximately 7kg, helping reduce
air transportation costs and CO2 emissions. In addition, after distribution in
Japan, we recycle the pallets as raw materials for new pallets.

■ Our High Performance Waterborne Paints
WATERSOL ® and CERANATE ®
In the paint industry, the reduction of VOC is an important
challenge in view of environmental perspective, and the useof waterborne paints is one effective measure to reduce VOC.
DIC has various coating resin products, and keeps productdevelopment efforts to make every coating resin waterborne.

proposing additional functions for new applications such as
electronic materials and optical materials. WATERSOL ® and
CERANATE® have been approved as DIC’s environment-friendly
products.

The WATERSOL ®, our waterborne resin product, has beensuccessfully used as a painting resin in wide-ranging applications
i n c lu d i n g a u to m o b i l e s , p l a s t i c s , s t e e l p l a t e s , a n d c a nmanufacturing. In addition, the CERANATE ®, our polysiloxane
compound type resin, is waterborne and achieves durability
equivalent to that of fluorine resins, highly evaluated in thebuilding material field.
DIC is currently working on further adding high values to ourwaterborne resins, by combining our elemental technologies,

DIC’s functional resins used for painting bridges

15

CSR of The DIC Group
Constantly aware of the importance of maintaining harmony with the global environment, the Grouppositions CSR initiatives as crucial to fulfilling its fundamental responsibility to contribute, through its
business activities, to environmental preservation and the communities in which it operates.

Entire Group initiated CSR Activities
In 2007, we adopted The DIC WAY, an articulation of our new
management approach based on three core elements: Ourmanagement vision, corporate values and principles of conduct.
In line with The DIC WAY, we position CSR initiatives as crucial
to ensuring an accurate grasp of changing social imperatives andresponding with solutions that deliver the value that our many
stakeholders expect. Through the continuous implementation ofthese initiatives, we aim to earn the trust of society and remain
an enterprise that is capable of growing and evolving.
To fo s te r co n c re te m e a sure s , w e have d e ve l o p e d 11
key themes— including “environment, safety and quality”“compliance” and “information security”—that reflect ouroverarching management priorities. Departments have been
named to put these themes into action, thereby advancing efforts

to promote management based on the concept of CSR. Beginningin the period under review, we formulate basic CSR principles foreach fiscal year to guide employees in their everyday activities.
The implementation and targets outlined in these principles aremonitored as a means of reinforcing CSR at the ground level.
Based on these policies, each business operation, department,site and subsidiary— both in Japan and overseas—sets its own
CSR policies, which are incorporated into its business objectives,to encourage awareness of CSR and promote related initiatives atboth an organizational and an individual level.

The DIC WAY
Management
vision

The DIC SPIRITEnterprise,
Integrity
DiligencePrinciples ofconduct

WEB

Corporate
valuesThrough unceasing innovation, the DIC Group
strives to create new value directed atsustainable development for its customers,society and the environment.

We shall hone our sensitivity to changes in society and be aware of
our mission to always be ahead of the times.
We pledge to incorporate the concepts of social andenvironmental sustainability into our corporate activities.
We vow to strive constantly to hone “The DIC SPIRIT.”
We shall respect the autonomy and initiative of each individual employee in
applying his or her talents to the pursuit of our values and realization of our vision.

D I C e n t e r e d t h e 10 0 t h y e a r f r o m i t sfoundation and at the same time as thechang e s in company nam e and branddesign, DIC formulated “The DIC WAY,” a
new concept of management of the DIC
Group and started its second foundation.
“The DIC WAY” consists of three principles of“Management Vision,” “Corporate Values,”
and “Principles of Conduct” and placed “TheDIC SPIRIT” at the core.

http://www.dic.co.jp/en/company/philosophy.html

CSR themes (FY2009)
1. Compliance

5. Supply Chain Management

9. Human Resources Management

2. BCP (Business Continuity Plan)

6. New Technology Development and Value Creation

3. Information Security

7.

10. Harmony with the Community
and Contribute to Sociery

4. Reliability of Financial Reporting

8. Business Model Focused on Customer Satisfaction

Environment, Safety and Quality

For the details of each theme, please refer to Repont on Our CSR Themes pages of this Report,

11. Information Disclosures of CSR

P18

Note:We will continue to address “sustainable use of biological resources,” a theme included in 2008, as part of “new technology development and value creation.”

16

CSR REPORT 2009

Corporate Governance / CSR Promotion System
Corporate Governancefunctions and reinforcing confidence in its ability as a company witha Board of Auditors to respond to the expectations of shareholders.

DIC identifies the purpose of corporate governance as being toensure effective decision making pertaining to its management
policy of achieving sustainable corporate growth and expansion
through sound and efficient management,

In June 2009, DIC established the Nomination Committee
and the Remuneration Committee as internal committees of
the Board of Directors, with the aim of enhancing objectivity inthe nomination and selection of, and determining remuneration
for, directors and corporate officers. Each of these committees
comprises four directors, of which two are outside directors.

To promote sound and efficient management, in July 2003 DIC
introduced a risk management structure—a system of internal
controls designed to enhance its compliance program and facilitate
the integration of risk management and compliance functions.

Annual Meeting of Stockholders

Internal
Auditing

Audit

President

Independent
audit

Board ofAuditors
Independent
auditors

Executive Committee
Department

Business Operations, administrative Dept., Sales Branches, factoriesGroup
companiesC S R o f T h e D I C G r o u p / Co r p o r a t e G o v e r n a n c e / C S R P r o m o t i o n S y s t e m

Having initially included two attorneys as outside
auditors on its Board of Auditors, in June 2008 DIC
sought to further strengthen its internal control system
by appointing two outside directors to its Board of
Directors, thereby ensuring the effectiveness of auditing

Board of Directors

CSR of The DIC Group

With the aim of achieving a higher level of trust on the partof shareholders, customers and other stakeholders
Nominationand enhancing corporate value, in April 2007 DIC
Committee
established the Corporate Social Responsibility
Remuneration
Committee
Committee, which is under the direct supervision of thepresident, as well including riak management, thereby
CSR
P5
creating a structure to guide related activities.
Committee

internal audit

DIC's Corporate Govenance Organization

CSR Promotion System of The DIC GroupThe DIC Group has a system in which each administrative department is responsible for carrying out CSR according to each of the 11 themes under
the CSR Committee directly reporting to the President in order to promote specific approaches to CSR with all companies as one united body.

・Advisory Organ of CSR management of the Company
・Establishment of targets and policy for activities of all companies → put to the Board of Directors
・Evaluation of CSR activities of the Company

Board of Directors

CSR Committee

President
Graphic Arts
Business Operation

Department responsiblefor implementation(each administrative department)

CSR Department

・Coordination of promotion of CSR・Comprehension of progress

Industrial
Materials
Business Operation

High Performance andApplied Products
Business Operation

Electronics andInformation Materials
Business Operation

Business Operation Presidents
Division General Managers, Sales Branches and Factory Managers, Subsidiary Presidents
1. Compliance
2. BCP (Business Continuity Plan)
3. Information Security
4. Reliability of Financial Reporting
5. Supply Chain Management
6. New Technology Development and Value Creation
7. Environment, Safety and Quality
8. Business Model Focused on Customer Satisfaction
9. Human Resources Management
10. Harmony with the Community and Contribute to Sociery
11. Information Disclosures of CSR[Supplementary Note 1] Color segment: indicating efforts mainly based on [ ● Economic perspective], [ ● Environmental perspective], and [ ● Social perspective].
[Supplementary Note 2] [Information Disclosure and Enlightenment of CSR] in the table has two perspectives of [Economic perspective] and [Social perspective].

17

Report on Our CSR Themes
Report on Compliance
In April 2008, in celebration of our centenary, we established DIC Group’s basic management philosophy,
P16 ). At the same time, DIC drastically revised our traditional
The DIC WAY (For details, please refer toCompliance Code of Business Conduct from CSR viewpoints and developed it into the current The DIC WAY
Code of Business Conduct 2008 Edition. We, the DIC Group as a whole, will work on our business activities
in line with the Code.

Composition of The DIC WAY Code ofBusiness Conduct**Hereinafter referred to as ‘the Code’.

The Code stipulates the following 8 general standards of conduct:

1.We shall strive to conduct our business operations in a soundand efficient manner, in line with the DIC WAY.
2.We shall comply with international rules and regulations andthe letter and spirit of all applaicable laws of each jurisdictionin which the DIC Group does business.
3.As responsible corporate citizens, we respect all social norms,
and conduct our business in a socially responsible manner.
4.We shall put proper internal controls into place and prepare
all books and records in accordance with fair and properaccounting standards to ensure the reliability of financial
reports.
5.We shall act with a strong awareness of the environment,
safety, health and quality, throughout the entire cycle ofbusiness activity.
6.We shall take a firm stance against demands from antisocialorganizations.
7.We shall not violate the principles set forth in this Code, evenif such violation would appear to be profitable for the DIC
Group.
8.We shall promptly report any violations of this Code and strive
to ascertain the cause of, and to prevent the recurrence of, anysuch violations.

Our Measures on Compliance and Future Plans(1) Our Measures to Heighten Employees’ Awareness on
Compliance
Our Major Efforts in Fiscal 2008
For the period from December 2007 through June 2008, DIC held
explanatory meetings of the Code in 20 countries worldwide.
For two newly established companies in China, DIC (Nantong)
Metallic Pigment Co., Ltd. and Lianyungang DIC Color Co., Ltd.,
since it came right after their company establishments during theabove period, explanatory meetings were held separately in April
2009. This completed all explanatory meetings to all overseas
subsidiaries.
In Japan, nearly all employees at DIC and domestic subsidiaries
completed the e-learning of the Code, which is mandatory for all
DIC employees.
In addition, for board members of domestic subsidiaries,
we prepared documents concerning their responsibilities andobligations to be complied with under the Companies Act. The
documents were distributed to the board members and study
sessions based on the same were held at each Group company.

Our Plans for Fiscal 2009
To further deepen our employees’ understanding of the Code,we are currently planning to prepare Q&A on The DIC WAY
Code of Business Conduct (a Chinese version has already been
completed.) and hold additional explanatory meetings.

Additionally, under the Code, 10 specific standards of conduct define
the qualities expected of our employees, delineating each generalstandard separately and in detail. Included in these 10 standards are:those concerning human rights and the workplace environment,
those concerning the environment, safety, and health, and thoseconcerning competition and international business transactions.
Furthermore, the Code also defines: protection of the consulting/reporting/notifying employees, including procedures for consultation,
reporting and notification on the Code, confidentiality of identityof and prohibition of punishment against the consulting/reporting/notifying employee; and the obligation to preserve records ofconsultations, reports and notifications.
Explanatory meeting held at Lianyungang DIC Color Co., Ltd.

18

CSR REPORT 2009

In addition, we will newly prepard self-check lists for The DIC
WAY and for CSR. These will be distributed to each DIC Group
company. With the lists, those in charge of CSR (the Presidentsof each Group company) will voluntarily check their companies’
status on CSR and compliance. Furthermore, the CSR and Legal
Depts. will thoroughly monitor and improve such status in
the DIC Group, targeting the consolidation of our compliancesystems.

Our Plans for Fiscal 2009
Persons in charge of measures against antisocial forces will
improve preventative measures at their own offices and DIC Group
companies. In addition, they are required to participate in training
sessions held by their neighboring Prefectural Centers for the
Elimination of Boryokudan. We intend for all persons in charge toparticipate in the training sessions by the end of fiscal 2009.

(2) Our Measures to Ensure Fair Trade

In addition, we will confirm the status of establishingpreventative measures and systems at each office and each DIC

DIC is working toward ensuring fair trade of the whole DIC
Group by establishing a basic policy for compliance with theAnti-Monopoly Law, and by passing resolutions on similar basic
policies at board meetings at each DIC Group company.

Our Measures Against Insider-Trading

Our Major Efforts in Fiscal 2008

Group company by their persons in charge.

During the recent global recession, anticipating increased
alliances with competitors, we summarized points to be aware of
in forming production alliances from the standpoints of the AntiMonopoly Law, and distributed notifications company-wide toenhance compliance awareness within the Company.

DIC has set up the Internal Information Management Regulations.
At the same time, we established the Regulations on Disclosure
to Stock Exchange to cope with the timely disclosure of importantCompany-related information.

Our Plans for Fiscal 2009(3) Measures Against Anti-Social Groups
The Code clearly states that “a decisive stance shall be taken
toward anti-social groups” and also prohibits money launderingin our operations. In addition, the DIC Group’s Basic Policy forInternal Control clearly states our strong stance against antisocial
forces and this Policy has been resolved at our board meeting.

Fur thermore, we take ex tra measures to enhance our
employees’ awareness against insider trading, by inviting lecturers
from external organizations and holding training sessions to

Our Responses to Disguised Contracts
and Temporary Workers from Agencies
prevent insider trading.

R e p o r t o n Co m p li a n c e

Furthermore, to properly cope with the Act against Delay inPayment of Subcontract Proceeds, Etc. to Subcontractors, wehave been taking measures such as assigning persons in chargeof subcontractor management. Additionally, we will strengthen
our measures against violations by frequently monitoring thedivisions in charge of orders to subcontractors via subcontractor
management divisions.

Report of CSR theme

DIC Group will further strengthen our measures to ensure fairtrade, taking the following into our consideration: revisions of theAnti-Monopoly Law in Japan, enactment of the Anti-Monopoly
Law in China, and cases where significant penalties were imposedon Japanese companies in Europe. Specifically, we will revise
our current compliance manual for the Anti-Monopoly Law andstrengthen our compliance systems at the Company.

In addition, the DIC Group’s officers, directors and employees
who have access to important information of the Company orof other companies in the course of their duties are required toobtain prior approval from those in charge of CSR when buying
or selling listed shares of DIC and/or DIC Group companies.

For disguised contracts, our investigation confirmed that there
were no such cases. In addition, we have already adopted thenecessary measures for the Labor Contract Law in China.
As for issues related to the firing of temporary workers fromagencies, to cope with operational suspensions at our plants
following plummeting demand since the end of last year, we
terminated some of the contracts before maturity with prior andadequate discussion and agreement with the temporary agencies

Our Major Efforts in Fiscal 2008
In May 2008, DIC revised the section on antisocial forces of our
Basic Policy for Internal Control under which we assigned persons
in charge of measures against antisocial forces at each office andeach DIC Group company, and had them register their nameswith our General Affairs Dept.
At the same time, we prepared the Manual of Dealing with
Anti-Social Groups for these persons in charge, by compiling theitems with which they should comply and points to be awareof when responding to antisocial forces. The Manual has been
distributed to persons in charge, for whom explanatory meetings
were also held.

Our Compliance with Other Laws andRegulations
and no issues arose from a compliance standpoint.
As a chemical manufacturer, DIC is required to comply withvarious laws and regulations including those concerning chemical
substance management, environmental preser vation, andimport and export. For details of our compliance with laws andregulations, please refer to the following section: “Environment,
P26
Safety, and Quality” on

19

Report on BCP(Business Continuity Plans)
The DIC Group is working on measures against various risks including large-scale natural disasters, toprotect people’s lives, targeting the prompt resumption of operations and continuing to supply products toour customers.

＜Role＞

Our Major Efforts in Fiscal 2008
T h e D I C Gro up ha s e s t a b lish e d o rganiz at i o ns of cr isis
management headquarters and product supply continuity plansat each division to cope with emergencies.

To issue instructions to the Business and On-site Task Forces

Task Force

Our organization of crisis management headquarters
Since the DIC’s businesses cover a wide range of businesses, theCompany consists of: divisions which operate each business; andoffices such as plants and branches which operate production
and sales activities in multiple businesses operated by eachdivision. In other words, our organization resembles a matrix
system made of warps and wefts.
For this reason, our organization of crisis management
headquarters does not consist of a single organization. We decided toestablish the crisis management headquarters of business units and(crisis management) headquarters of facilities. The crisis management
headquarters of business units target the early resumption of productsupply to our customers, while (crisis management) headquartersof facilities target the early recovery of our production systems andstrive to ensure the safety of our employees. As an organization
to control these two crisis management headquarters, the crisis
management headquarters was additionally established.

Our product supply continuity plans
Each division investigated its own necessary product supply continuity
plans, which are at the core of our BCP. For cases of productionsuspensions at our production plants in some regions, we investigatedpossible measures such as the following by taking into consideration themechanical production capability, flexibility of personnel distribution, rawmaterial procurement, and utility and supply availability: (1) substituteproduction by plants in other regions, (2) production consignment tocooperative companies, (3) product supply from overseas subsidiaries,and (4) early recovery of operations as soon as possible.
In addition, we conducted a seismic diagnosis at our facilities,
including offices and plants. For facilities with insufficient seismic
resistance, we implemented reinforcement work in order ofprecedence. At the same time, we are taking measures to prevent
any fall of our machinery and equipment.

Business Task Force

On-site Task Force＜Role＞To discuss measures forthe continued provisionof products tocustomers and issue
instructions for
implementation.

＜Role＞
To take actions to securesafety and conduct disaster
relief activities
To implement measures forthe continued provision of
products to customers

Organization of Crisis Management Headquarters

Our Plans for Fiscal 2009
Based on the investigation results conducted in fiscal 2008 on
our product supply continuity plans, each division will clarify thefollowing issues for their business continuity and complete theestablishment of their business continuity plans:

1. Threats analysis
2. Their impacts on our business
3. Recovery time objective
4. Product supply continuity plan
5. Critical functions of business operations
6. The organization of crisis management headquarters
7. Measures to ensure safety (including those for pandemics)
8. Maintenance and management of our systems
9. Education and drills

TOPICS
We conduc t emergenc y drills on aregular basis at each office, preparing
for complex disasters including multiple
occurrences of earthquakes, fire, andexplosions.

An emergency drill at our plant20

An emergency drill at our Corporate Headquarters

CSR REPORT 2009

Report on Information Security
In line with the development and expansion of electronic information and network, in fiscal 2006, the DIC
Group established an Information Security Policy. This sets out our obligations to comply with laws andcompany regulations, working to secure information security by proper information management.

Our Major Efforts in Fiscal 2008

Our Plans for Fiscal 2009

As for our information security management systems, based on
the Information Security Policy established in fiscal 2006, under
our CSR Committee, we established an Information Security
Sub-Committee to improve our information security systems on
a company-wide basis. In fiscal 2008, we reviewed the draft of
the Confidential Information Management Regulations preparedby the Information Security Sub-Committee and investigatedpossible issues when implementing the regulations in our actual
operations.

As for our information security management system, with theenforcement of our Confidential Information Management
Regulations from April 2010 in mind, we established information
management guidelines for each division. At the same time, wewill establish in-house monitoring systems and to enhance our
employees’ awareness on information security, will hold in-house
explanatory meetings, aiming to ensure all employees have athorough understanding of the regulations.

As for measures to protect our business information, we areworking to heighten employees’ awareness by the thoroughimplementation of in-house regulations such as prohibiting thehandling of business information by personal computers installed

As for measures to protect our business information, in fiscal
2009, to further reduce the risks of information leakage, weplan to continue our efforts in establishing an integrated ID
management system on a company-wide basis.

Report of CSR theme

at employees’ homes. In addition, we are taking systematic
measures to prevent information leakage without relying on
human capabilities. These include: automatic update of security
measures, prevention of fraudulent connections to our internal
network, and the automatic detection of harmful software.
In addition, to prevent fraudulent access to our network fromoutside, we regularly have vulnerability diagnoses of our systems
conducted by third parties.

Image of the DIC Group’s “Information Security”

Chief Information Management Officer

Divisions

R&D
Departments

R e p o r t o n BCP ( Bu s in e s s Co n t inu i t y P la n s) / R e p o r t o n I n f o r m a t i o n S e c u r i t y

CSR
Committee

To develop an overall information management system and guidelines

Branchesand plants

Chief Information Manager"

To designate/approve the information managementclassification in respective divisions and departments

Appointment

Information Manager

To manage secret information(Access control measures, approval of disclosure, etc.)
Confidentiality agreement

Internal Audit TeamNew employees Retired individuals External third parties

21

Report on the Reliability of
Financial Reporting
To cope with the management assessment and external audits of internal control (JSOX) to ensure thereliability of financial reporting required by the Financial Instruments and Exchange Law from fiscal 2008,
all employees related to financial reporting in the DIC Group have been jointly working on the issue, both
domestically and globally. As for design of our internal control, we aim to ensure the reliability of our
financial reporting, while simultaneously improving our operational efficiency.

Enhancement of Audit Systems at Domestic Group Companies

Our Major Efforts up to Fiscal 2008
Establishment of Proper Internal Control
At DIC, the Corporate Accounting Department has been mainly
working on improving accounting guidelines, authority-related
rule and documenting operational procedures to date. On
the other hand, our Internal Audit Dept. has been monitoring
the design and operational status of our internal control froman independent position from operational activities and wehave established our system, by repeating the cycle of design,evaluation, and improvement. Consequently, by the end of
fiscal 2008, to cope with JSOX, we conducted a management
assessment to prove the effectiveness of internal control in the
DIC Group, with external auditors approving it as appropriate.

Global Finance and Internal Audit Networks
For the DIC Group, with overseas sales exceeding 60% of its total
sales, it is inevitable to design and validate internal control atoverseas sites together with our domestic locations.
For this reason, we have established regional finance teams andinternal audit teams at our Regional Headquarters in Southeast
Asia / Oceania district and Greater China district including Hong
Kong, and Taiwan. We have standardized basic rules for internal
control and accounting standards. In addition, we conduct
monitoring using common benchmarks, promoting the sameinternal control design globally just as we do domestically.
In the U.S. and European regions, our major subsidiary,
Sun Chemical Group, has internal audit teams at their Global
Headquarters in the U.S. and European Corporate Head Officein the Netherlands, designing their internal control systems andassessment procedures in line with JSOX.
T he internal audit
teams, including DIC
Corporate Headquarters,
share information andexchange opinions bydispatching staff for
backup and holding
global internal audit
meetings.

Measures to Penetrate Awareness of Internal Control Risk andImprovement of Operational Efficiency
We are working to heighten awareness of our managerial levels
at each business location on internal control risks by the following
measures: workshops for executives and financial managers ineach region, self-assessment, and peer reviews between businesslocations.
In addition, by having the financial managers of each businesslocation join internal audit teams, benchmarks for operational
efficiency can be shared, leading to the career development of
national staff from business locations (local) to regions (regional),
and to inter-regional levels.

Integration of Internal Control Flows and Utilization of IT Control
Sun Chemical Group is working on the introduction of a new ERP
packages and shared service centers by fiscal 2010. With thesemeasures, the internal control flow will be integrated and byshifting to IT control, we aim to ensure the effective realization of
ensuring and maintaining the reliability of financial reporting.

Our Plans for Fiscal 2009
As our measures for further improvement, we will continue
to work on improving the internal control environment,
standardizing operational flows, narrowing down key controls,
and further utilizing IT controls.
As for our measures for validation, we will work on streamlining
and improving efficiency by standardizing monitoring procedures
and expanding the use of self-assessment.
With these measures, we aim to ensure and maintain bothinternal control at legitimate standards and operational efficiency.

Participants in the global internal audit meeting

2.Monitoring of the design and operation status on internal control

Additions/Corrections ofinternal rules (if necessary)by major business process(Business locations)
Identification of businessprocesses and thedevelopment of workflows(Business locations)(Internal Audit Division)(Internal Audit Division)
Response to the
Review of the contents
Field audit/Review
Internal Controlof the responses
Questionnaire
Self-assessment by the
Identification of high risk areas
Determining specificmanagement of local sites by the Internal Audit Department weaknesses(Internal Audit Division)
Internal Audit report
Exposing areas
requiring improvement

3.Removal/Mitigation of risk factors(Business locations)(Business locations)

Follow-up of thestatus of mitigation

Improvement in the
responsible sites/divisions(Business locations) (Internal Audit Department・Business locations)Set up of an operational
Review/confirmation of
structure to mitigate
action plans for mitigation
the issues identified
with the management

To the process of mitigation of the issues identified

1.Designing of internal controls(Business locations)
Establishment ofaccounting guidelines andrules of authorization

For domestic group companies, we have established a new policy
for conducting audits by auditors, promoting the introduction ofbenchmarks for audit procedures and quality.

Work flows of the process-level Internal Controls

22

CSR REPORT 2009

Report on Supply Chain Management
In fiscal 2008, the DIC Group newly established the DIC Group Basic Purchase Policy to promote CSR
Procurement to properly cope with customers’ demands such as respect for human rights, compliance withlaws and regulations, and consideration for the environment and safety.

DIC Group’s Purchase Activities

DIC Group Basic Purchase Policy

The DIC Group believes that we need to focus on society and theenvironment in our whole supply chain from the procurement of
raw materials and to manufacturing and sales of our products.
When procuring our raw materials, we aim to continue ourpurchase activities, while paying due consideration to the respectfor human rights, compliance with laws and regulations, and theenvironment and safety in our operations.

1. We will conduct business in a fair and open mannerwith our suppliers

The DIC Group will take a global perspective of its purchasing
activities, and will stress fairness and transparency with all of
its suppliers.

2. We will comply with all governmental laws andregulations, and will strive to build and maintainmutually beneficial relationships with our suppliers.

DIC Group Employees shall comply with governmental laws
and regulations in connection with all the business areas forthe DIC Group, and shall also comply with all company rules.
DIC Group Employees shall seek both reasonable quality andprice in commercial activities, and will strive to build andmaintain harmonious, mutually prosperous relationship withall suppliers worldwide.
3. We will stress conformity to the needs of the

Our Approaches for CSR Procurement
In our purchase activities, the DIC Group aims to fulfill our social
responsibility; not only for DIC Group products but for the whole
supply chain, while having our vendors fully understand DIC
Group’s CSR and collaborating with mutual trust.

environment and to the safety of citizens andemployees.

To achieve this, in fiscal 20 0 9, we will es t ablish CSR
P ro curem ent Guid elin e s (including Gre en P ro curem ent
Guidelines), provide them to our vendors and request that they
pay attention to respecting human rights, complying with laws
and regulations and protecting the environment and safety.
Through our CSR Procurement Questionnaire (tentative name),
we will strive to strengthen the entire DIC Group supply chain.

Report of CSR theme

The DIC Group, as a good corporate citizen, will assume
responsibility for the environment, for safety, for health,and for quality, and will be constantly vigilant to changes insociety, in order to conduct its purchasing operations in fullconsideration of the global environment.
4. We will continuously seek innovation and thecreation of value with our suppliers.

The DIC Group will strive for the creation of new value and“ Sustainable Development,” with like minded suppliers, inorder to fulfill the expectations of our stakeholders

R e p o r t o n t h e R e lia b ili t y o f F ina n c ial R e p o r t in g / R e p o r t o n Su p p l y Chain M a na g e m e n t

Flow of businesses related to the entire lifecycle of products

Research anddevelopment

Procurement of
raw materials

Persons mainly Overall
involved
cycle

Technology, R&D

Materials and purchase

Sales

Inspection

Customers

Supplier

Manufacturing
Manufacture
Consignee
Cooperating companies
Communities and society

Qualityassurance

Sales andlogistics

After-sales
service

Disposal andrecycling

Manufacture

Sales

Technical service

Disposer

Inspection

Logistics

Sales

Manufacture

Quality Assurance

Customers

Customers

Communities and society

Approaches to raw materials, processes, products, services that reduce loads on the global environment (quality and environmental management system)
Thorough observance of the respect of human rights, protection of the labor environment, compliance, internal controls and information disclosure

Illustration of the supply chain

VOICE

Mitsuko Nakamura, Planning and Operations, Purchasing & Logistics Dept.
In 2008, the DIC Group established the DIC Group Basic Purchase Policy. In fiscal 2009, the Group will work to promote CSR
procurement; considering it important to respond to requests from our customers and society and protect the global environment
throughout our supply chain, from the procurement of raw materials to the manufacturing and sales of our products. To conduct
CSR procurement as a whole DIC Group, we are aware of the importance of having our vendors understand DIC Group’s CSR andcollaborating on the activities. Consequently, we are currently preparing to establish the CSR Procurement Guidelines and conduct
the CSR Procurement Questionnaire for our vendors.

23

Report on New Technology
Development and Value Creation
Based on our principles for sustainable development, DIC Group is working on developing technologies andproducts and aiming to achieve our Group management vision, Color & Comfort by Chemistry. We will workon research development with the following as our basic policy: the development of high performance
products by combining various elemental technologies and deepening our inherent technologies; thedevelopment of new manufacturing processes targeting drastic cost reduction; and the establishment ofsolution businesses by combining various businesses, technologies, and materials. With these measures, wewill target increased efficiency and speed by utilizing our global management resources.

Our Major Efforts in Fiscal 2008
The followings are the achievements and status of major research developments in each division:

Graphic Arts Business Operation
For offset inks, we fully entered into the market with prospects for practical applications in the development of UV
inks, which become solid by ultraviolet of light emitting diodes (LED). For adhesives, we are focusing our efforts onhigh solid types, which can reduce the use of organic solvent for food product packages and on those used for theback sheets of solar cells. For pigments, one of our major clients chose our new green pigment for use in coloredfilters for liquid crystal televisions.
In overseas markets, Sun Chemical Corporation, our overseas subsidiary, has been introducing various new
products into the markets. For printing inks, they developed low-VOC environmentally-friendly sheet-feed printing
inks for the North American market, and energy curing screen inks based on new technology for the European
markets. In addition, they are developing oxygen-barrier coatings for packaging utilizing nanomaterials and dispersion
technology and hot-melt type inkjet inks to form resist patterns for the solar cell markets.

Industrial Materials Business Operation
For synthetic resins, while we work on expanding the UV resin business, by combining our various technologies, weare also developing high-value added and environmentally-friendly products. For paints, targeting the development of
new fields, we are developing various types of solvent soluble polyimide resins with characteristics such as fire-resistance,transparency, and heat-resistance, targeting applications for electronic materials, optical materials, and heat-resistantcoating agents. For epoxy resins, for advanced technology fields and mainly for electronic parts such as semiconductors andprinted circuit boards, we have developed super high heat-resistant types with high solubility, workability, and formability
and also developed an ultralow viscosity liquid form type, which achieved a halogen-free mix as a world first.

High Performance and Applied Products Business Operation
For petrochemical products, we are expanding our lineup of hyperbranched polystyrene products for applications
including foam applications such as polystyrene paper, blown films and injection applications. For industrial adhesive
tapes, the application of the following has been expanding: double-faced adhesive tapes without using toluene as
an adhesive compound for speaker parts for flat-screen televisions; and double-faced foam adhesive tapes for cellular
phones and digital cameras requiring waterproof capability. For plastic pallets, we developed combined technology
with sandwich molding and gas-assisted molding, realizing the utilization of waste plastics and beautiful productexteriors, while also simultaneously achieving high productivity. For building materials, we developed super mirror
finish woody decorative sheets and wood-grain patterned fireproof decorative sheets for storage furniture, kitchen,
and interiors for retail premises and promoting the marketing of the products.

Electronics and Information Materials Business Operation
For engineering plastics, to cope with requests to eliminate the use of halogen for electronic parts mainly for connectors,
we have developed our own polymerization technology to reduce halogen usage. By combining this technology withalloying technology, we have completed a lineup of low-halogen PPS compounds. For inkjet inks, other than the waterbased pigment types, we are focusing on the development of UV curing type inkjet ink for industrial applications, whichbecome hardened by UV. For TFT liquid crystals (LCs), we commenced the full-scale mass production of the n-type LCs
for LC display televisions. For hollow fibers, we are working on developing a medium-sized module and targeting thedevelopment of a new field, improving our product lineup at the same time.

24CSR REPORT 2009

Our Plans for Fiscal 2009
The R&D departments of the DIC Group consist of businessspecific R&D departments, directly connected to our businesses(Technical Departments, The DIC Group Technical Departments)
and the Corporate R&D Department, which emphasizes thefortification of basic technologies and the development of
next-generation technologies and products (Corporate R&D
Department, DIC Berlin GmbH R&D Laboratory and Qingdao DIC
Finechemicals Co., Ltd.). Each R&D department works on researchdevelopment while mutually cooperating with each other.
The research themes of the Corporate R&D Department are
decided on by the R&D Steering Committee, which consist of theGeneral Managers of Technical Administrative Department,
Corporate R&D Department, and Technology & Production
Management Department, deciding on values and directions
based on the perspectives of the whole company. In 2009,
we further strengthened cooperation between the Corporate
R&D Department and all others, aiming to accelerate new
produc t development. In addition, for the field of nex tgeneration technologies, we will promote investigative andbasic research, setting “electronics and information materials”
and“ environmental harmony” as the main themes and utilizing
industry-government-academia collaborations.

Improvement
research

The DIC Group in
Japan

Business-specific productand technology
development,
performance improvement
and technical services,
R&D, basic research

Performance
improvement andtechnical services

review of all of our products with this new system, 37% wasenvironment-conscious products. In fiscal 2009, with the renewalof our certification system, we aim to additionally heighten ourenvironment consciousness, and strive further to develop new
products, which are useful for society, energy saving, and theenvironmental impact reduction processes.

Business Operation Technical
Administrative Departments
Unifying R&D directions and maximizing
synergies among business operation technicaldepartments

Technical Departments
Business-specific product and technology
development,
performance improvement and technical services

New productdevelopment

R e p o r t o n N e w Te c h n o l o g y D e v e l o p m e n t a n d Va lu e Cr e a t i o n

Technical
service

Sun ChemicalGroup

From 20 03, we introduced an environment- conscious
product in-house certification system, which we have beenworking to expand. However, we decided that environmentconscious benchmarks should be reconsidered taking the social
requirements of the time into account. In 2008, we renewed
our certification system. In our new system, once every three
years, we redefine environment-conscious benchmarks, includingthat for energy saving, from viewpoints such as market needs
and LCA (life cycle assessment). Based on these benchmarks,
we review all certified products. In fiscal 2008, as a result ofReport of CSR theme

To develop new products, DIC will promote a reduction in theuse of hazardous substances, the development of less hazardous
products, recyclable products, production processes with higher
safety and less waste, considering energy savings as well as thecontinued implementation of environmental assessments. DIC willcomprehend the trend of statutory regulations and environmental
measures of every country worldwide and implement productdesigns conforming to regulations governing chemical substancesin the pertinent country.

R&D Steering
Committee

Corporate R&D Department
Qingdao DIC Finechemicals Co., Ltd.
Striving to improve technological capabilities withthe aim of establishing an R&D center in the PRC

Technology & Production
Management Department

Objective basic
research
Pioneering
technology
development

DIC R&D Department

DIC Berlin GmbH R&D Laboratory

Fortification of basic technologies
Development of next generation
technologies and products

Investigative and basic research aimed at realizing
new chemical products and composites that
capitalize on the ideas of researchers in Europe

Support for efforts toenhance the efficiency ofoverall R&D activities
Support for efforts toenhance cross-divisional
functions and efficiency

Support for efficientadministration
Mutual collaboration

Investigativeand basic
research

Universities (Japan and Overseas)

Kawamura Institute of Chemical Research

National Projects

Nanohybrid materials, green
chemistry, others

High-performance nanocomposites,
nanohybrid materials,
nanointerface-controlled materials

Ultraflexible displays, bio-nanofibers,
applications for sugar chain functions, others

25

Report on Environment,
Safety and Quality
The DIC Group recognizes that preserving the environment and securing safety should be at the core of
our management as a chemical corporation. Through our activities on the environment, safety, health, andquality, the DIC Group aims to become a company with the capacity to respond to requests from society.

Declaration to Support the Responsible Care Global Charter
In 1992, to preserve the environment and secure the safety and health of people, DIC established the “Principle and Policy for theEnvironment, Safety and Health”. In 1995, DIC pledged to 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 Care Global Charter,
promising to further strive to enhance the environment, safety, and health of people.

Principle and Policy for the Environment, Safety and HealthPrinciple

As a responsible corporate citizen, DIC Corporations (DIC), recognizes that care for the environment, safety andhealth (ESH) is fundamental to the management of the Company. DIC is committed to the concept of sustainable
development and contributes to society by creating environmentally sound products and technology.

Policy1.

We establish ESH-related objectives and targets and pursue continual progress.

2.

We comply with laws, regulations and agreements relevant to ESH.

3.

We consider the ESH implications of each of our products throughout their life cycles in accordance with the ideals of Responsible Care.

4.

We instill in our employees a thorough understanding of this fundamental Principle and Policy.

5.

We organize our operations so as to promote the safeguarding of the environment, safety and health andconduct audits to monitor progress throughout the Company.

6.

We ensure that operations are conducted safely and materials are handled properly. We try to prevent
environmental pollution and avoid affecting the environment negatively by recycling waste, conserving energy
and other resources and using materials that are environmentally friendly.

7.

We place the utmost importance on ESH-related considerations at all stages of the new product planning andproduction process.

8.

We promote safety by providing customers with detailed instructions on the proper use and handling of all products.

9.

In our overseas activities, we conduct environmental impact assessments and strictly observe local ESH regulations. In theabsence of such regulations, we work with local officials and our business partners to develop environmental safeguards. We
also follow this procedure when dealing with toxic materials, applying the same stringent standards for their handling as
required in Japan. In addition, we promote the transfer of technology and know-how related to environmental protection.

10. We provide the public and appropriate authorities with ample information about our products and business activities sothat they may have an accurate understanding of our efforts to promote health, safety and environmental protection.

The above Principle and Policy shall be available to all employees and to the general public.
It is our goal that this Principle and Policy be followed at all DIC Group companies.
Established April 1, 1992
Revised February 1, 1996
Revised-2 April 1, 2008

April 2009
Representative Director, President and CEO DIC Corporation

Our Policy for the Environment and Safety Quality for Fiscal 2009
● We promote our activities throughout the DIC Group,

including our affiliates both at home and overseas.

● We promote the transparency of our operations for each of

our stakeholders.

● We promote our activities with the PDCA cycle (plan-do-

check-act).

● We set targets to reduce environmental impact by ouroperations and release the results of our reduction efforts
to the public.
● We manage our chemical substance information properly
and inform our customers of the information.

26

To s teadily implement the “Principle and Polic y for theEnvironment, Safety and Health”, the DIC Group annually
establishes our policy on our activities for the environment,
safety, and health. This is translated into English and Chinese anddistributed to all offices and DIC Group companies both at homeand overseas, familiarizing all of our employees with the policy
throughout the DIC Group to promote the activities.

CSR REPORT 2009

DIC’s Responsible Care (RC) Promotion Organization
Based on the Principle and Policy for the Environment, Safety and Health, DIC promotes our Responsible Care activities as a part of our CSR
activities. Under our CSR Committee, we work with the Responsible Care implementation organization and the Responsible Care audit andsupport organization as a pair of wheels to promote our Responsible Care activities.

<Responsible Care implementation organization><Responsible Care audit and support organization>

In production and technology departments, as organizations
to set out and implement our policy, DIC has established
Environment and Safety committees at DIC plants and R&D
Center and also assigned persons in charge of environment,
safety, and quality in each section. At our sales departments, DIC
has also assigned Safety and Quality Management Supervisorsand persons in charge of Responsible Care. Major plants haveobtained ISO 14001 certificates, the international standard forenvironmental management systems. We utilize this system as atool to promote our Responsible Care activities.

The Responsible Care Dept. and those in charge of theenvironment and safety quality at each division and plant work
as a team in quality audits and environment, safety, and quality
audits, facilitating their in-depth implementation. We are also
striving to improve the auditing skills of our audit staff. In fiscal
2008, we audited DIC’s 17 divisions, 1 semi-division, 13 plants
and branches, and 19 domestic subsidiaries. Especially weconducted top management audits at Saitama and Tokyo Plants.
The Responsible Care Dept. provides support to improve issues
highlighted as a result of the audits.

President

Board of Directors

Corporate Social Responsibility Committee
Environment and Safety Conference

Responsible Care
Implementation System

Business operation presidents
Division presidents

Sales offices (Divisions, branches)

Production/R&D (Plants, R&D centers)
Environment, safety andquality departments

Safety and quality management supervisors
Persons in charge of responsible care
Implementation organization(Branches, departments, sections)Internal branch andsales office audits

Plants, R&D centers, environmentand safety committees

Implementation organization (Departments, sections)

Top management audits

Division audits

Plants, environment, safety
and quality audits

Internal branch and sales
office audits

Report of CSR theme

Responsible Care Dept.

Implementation/Support

Subsidiaries

Quality Conference

Responsible Care, audit and support systems

R e p o r t o n E n v i r o n m e n t , S a f e t y a n d Q u a li t yWhat the DIC Group Strives for
DIC checks the implementation of DIC Group’s activities relating to the environment, safety, health and chemical substance controls, basedon the following “Responsible Care Codes”.

(1) Management System (all codes are applied commonly)(2) Environmental Protection (continuous reduction of emissions andproduction of chemical wastes)(3) Process Safety and Disaster Prevention (prevention of fire,
explosion, outflow of chemical substances)(4) Occupational Safety and Health (protecting the safety and health of workers)

What is Responsible Care ?

WEB(5) Chemical and Product Safety (risk management of chemical
products)(6) Distribution Safety (risk reduction in chemical distribution)(7) Dialogue with Society (communication with local communities
relating to the environment, safety and health)The source : website by "Japan Chemical Industry Association"
http://www.nikkakyo.org/organizations/jrcc/guide_e/index.html

COLUMN

Chemical substances-necessary and important to modern daily life. However, sometimes these substances can turn dangerous, becoming hazardous to human health andsafety and the environment when handled improperly.
The task of preserving the environment and ensuring the health and safety of humans has increased in step with the rise of global environmental problems and the rapid
industrialization of developing countries. Adding to this situation the potential hazards linked to advanced technology has made it difficult to ensure the ecological soundness
and safety of chemical operations and products simply by imposing laws and regulations. Thus, it is increasingly more important for companies that deal with chemical
substances to undertake voluntary measures to ensure environmental preservation and human safety and health.
Reflecting this trend, the world chemical industry started an initiative that promotes a voluntary management system aimed at preserving the environment against andensuring the safety from chemical substances throughout the product's life cycle, from development through disposal. This initiative has been named "Responsible Care" (RC).

27

Report on Environment, Safety and Quality■ RC Targets and Achievements of Major RC Activities
Main item

Viewpoints and issuesof the activities

Prevention of global warming andpromotion of energy saving

Environmental
conservation(Reduction ofenvironmental
impact caused bybusiness activities)

Process Safety
and fire prevention/
Occupational safety
and health

Logistics/
SafetyChemicals/
Product safety

Quality management(customer satisfaction)

P34
P35

Target for fiscal 2008
To make the energy consumption per unit of production to 88% of the figure in 1990

Reduction of waste (zero emissions)
Reduction of volume of industrial waste disposed of as landfill

P34

To reduce the volume of industrial waste disposed of as landfill to 153 tons or less;To broaden the scope of activities to include domestic Group companies in order to promote theefforts

Promotion of recycling

P34

To promote recycling among the domestic DIC Group(Promotion of recycling through the reuse/recycling of waste from plants)

Control of emissions of chemical substances

P32

To reduce emissions of chemicals specified under the PRTR Law (354)+ Chemicals from the JCIA
Voluntary Scheme (126) *98% of environmental emissions (domestic DIC Group) are atmospheric.
We regard them as VOC, which we work to reduce using the facilities and measures required.

Reduction of VOC emissions

P32

The DIC Group will reduce 30% or more VOC emissions from fiscal 2000 level (1,924 tons) by fiscal 2010 (VOC
emission 1,347 tons or less). DIC Group (domestic)：918 tons (A 52% reduction from the base year) DIC：364 tons
(A 35% reduction from fiscal 2000 level) Domestic subsidiaries: 554 tons (A 59% reduction from fiscal 2003 level)

Prevention of soil and groundwatercontamination

P33

To survey the soil in the premises and implement necessary measures during plant closures, salesof land held, etc.

P33

Measures against PCB

To properly dispose of decommissioned PCB-containing equipment in accordance with the progressof the projects conducted by JESCO.

Prevention of ozone layer destruction

To avoid using CFCs as new raw materials

Asbestos

To remove and dispose of asbestos waste that is generated from demolition works in compliancewith relevant laws and regulations

Reporting of the occurrence ofaccidents and disasters without failTo prevent the occurrence of similar accidents by sharing the information on examples of accidents.

Risk assessment

To promote risk assessment concerning occupational safety by working to realize the following: 1. To set
up rules on the wearing of personal protective equipment, 2. To develop the latest collection of examples
of incidents/accidents; 3. To review safety rules in the worksites where synthetic reactions are performed;
4. To share information on examples of accidents in technology and research departments; and others.

Promotion of sharing of information on environmentand safety between DIC and Group companies;
both domestic and overseas

P37

To standardize the format to collect the data of occupational disasters in overseas subsidiaries inorder to share it globally

Reduction of GHG emissions
caused by transportation

P35

To promote energy saving measures related to freight transportation

Management of transportation safety of chemicals

P37

To make both chartered and consolidated cargo carriers carry “yellow cards” to address anemergency during transportation.

Information on minute impurities in
raw materials and products

P38

To build and operate the Integrated Management System of Information on Chemical Substances(CIRIUS）

Addressing the demand for the disclosure of
information on chemical substances and products

P38

To make an MSDS for every chemical product and work to make it available online
To hold training sessions on the work procedures in regular intervals based on the relevant laws
and regulations and knowledge thereof; To start a system where employees who have obtained aninternal license will be assigned to import operations

Development of expert human resources in
raw materials and product safety
Addressing the REACH regulations

Communications
with society

Page to refer to

P39

To complete pre-registration for the substances requiring registration by December 1, 2008

Report on RC activities

To report in CSR reports and on the DIC website

Site report on RC activities developed by plants,

To actively use the site report of the respective DIC production sites to implement risk
communications with local communities

Securing of quality

To improve customer satisfaction by using ISO9001 and other QMS tools for the securing ofproduct quality
To comply with social demands and requirements from customers

Issues related to the proper labeling of products

To improve the ability to design products that satisfy the demands from customers

To maintain and improve the management system

Provision of support to the
management for theenvironment andsafety conducted byoverseas Group companies

28

Environment and safety
Promotion of environment and safety
activities of the Group companies in China,
Southeast Asia, South Asia, and Oceania

P37

To identify the actual state of environmental impact and support related activities to reduce them
To improve the organization to secure the environment and safety of subsidiaries in China andSoutheast Asia; To keep auditing respective subsidiaries in China & Southeast Asia and conduct
follow-up activities based on the audit results; To hold a safety meeting on a global basis,including China and Southeast Asia, to promote the sharing of safety awareness and information;
To hold a meeting of environment and safety staff in respective regions (China, Southeast Asia);
To implement a safety audit of subsidiaries in South Asia (including India)

CSR REPORT 2009

Results of fiscal 2008

Evaluation

Target for fiscal 2009

The energy consumption per unit of production was 93% of the fiscal 1990 level, due to the lower
factory operating rate, while the CO2 was reduced by 12% from the previous fiscal year.

★

Volume of industrial waste disposed of as landfill DIC：125 tons (A reduction of 5% from the previous
fiscal year) Domestic group companies: A significant reduction of 195 tons (A reduction of 52% fromthe previous year) DIC Group (domestic): 320 tons (A reduction of 41% from the previous year)★★★

Recycling rate <Amount recycled/Total amount of final disposal> DIC Group (domestic): 87% (An improvementof 2% from the previous fiscal year) <53,781 tons/61,770 tons> DIC：76% (An improvement of 5% from theprevious fiscal year) Domestic subsidiaries 93% (An improvement of 2% from the previous fiscal year)★★

Environmental emissions DIC：312 tons (A reduction of 118 tons from the previous fiscal year)
Domestic subsidiaries：358 tons (A reduction of 711 tons from the previous fiscal year) DIC Group(domestic)：670 tons (A reduction of 829 tons from the previous fiscal year)★★★

To continue promoting reduction

DIC Group (domestic)：655 tons (A reduction of 66% from the base year)
DIC：298 tons (A reduction of 47% from fiscal 2000)
Domestic subsidiaries: 357 tons (A reduction of 74% from fiscal 2003)★★★

To continue promoting reduction
DIC Group (domestic): 563 tons (A reduction of 71% from the base year) DIC：304 tons (A reduction of
46% from fiscal 2000) Domestic subsidiaries: 259 tons (A reduction of 81% from fiscal 2003)

To make the energy consumption per unit of production 89% of the figure in 1990
To reduce the volume of DIC industrial waste disposed of as landfill to 96t or less;To determine the reduction target for domestic subsidiaries and promote reduction activities;
To gather the data of overseas Group companies。
To continue promoting recycling activities in the domestic DIC GroupTo survey the soil in the premises and implement necessary measures during change of use,
including plant closures and sales of land held.

There was no office or plant that implemented a plant closure or sold the land it owned in Japan.

To properly dispose of decommissioned PCB-containing equipment in accordance with the progressof the projects conducted by JESCO.

We continued to refrain from using CFCs.

★★★

To avoid using CFCs as new raw materials

Disposal of the sprayed-on asbestos was completed by fiscal 2007. The asbestos waste generated
from newly-conducted demolition works has been removed and disposed of in compliance with
relevant laws and regulations.

★★★

To remove and dispose of asbestos waste that is generated from demolition works in compliancewith relevant laws and regulations

The information of accident was made available and shared on the DIC Group Intranet every
month. DIC’s offices and plants and domestic Group companies implemented pre-audits on safetyin addition to regular audits to promote accident prevention.

★★★

To prevent the occurrence of similar accidents by sharing the information of accidents.

1. The DIC protective gear use manual was discussed and determined (completed); 2. The latest collection of examplesof accidents and disasters has been developed; 3. Rules were discussed in sectional meetings; 4. Information on near
miss in technology and research departments was shared and the booklet of basic safety actions was revised.

★★

To continue the relevant activities and promote the risk assessment in occupational safety andhealth. To continue 2., 3., 4. in the left box.

Educational materials such as the collection of accident examples and that of disaster examples
used in Japan have been translated into Chinese and provided to the subsidiaries in China.

★★★

To standardize the format to collect the data of occupational accidents in overseas subsidiaries inorder to share the data globally

We worked to increase the percentage of modal shift (8.7%→10.5%) and strove for the increased use of consolidated
transportation in place of chartered transportation with a lower loading rate (20.1%→26.8％) in order to reduce the energy
consumed in the transportation process. (A reduction of 17% in terms of energy consumption per unit of transportation)★★★

To promote energy saving measures related to freight transportation to ensure a 1% annual
reduction in terms of the energy consumption per unit of transportation

We have compiled yellow cards and requested container trucks, lorries, and freight trucks ingeneral, including those with consolidated cargo, to carry it.

★★★

To make both chartered and consolidated cargo carriers carry “yellow cards” to address anemergency during transportation

We have built and started operating the CIRIUS, a system that integrally manages information on
chemical substances from raw materials to product shipment. We have been developing the MSDS,
MSDSplus, and AIS of our products based on the information on the raw material survey sheets.

★★★

To expand the range of CIRIUS users to cover domestic group companies;
To improve the internal system to manage the CIRIUS steadily.

We prepared an MSDS for every chemical product and provided it to both the customers withwhom we do business with and those to whom we deliver our products. We provided AISs for
non-chemical products to users who requested them. Both MSDS and AIS were made available
online, using the web-based delivery system for DIC MSDS.

★★★

To work to make an MSDS for every chemical product and make it available online

We have implemented training and tests to employees whose work are related to the import ofchemical substances and have operated an internal license system to let only those with a certain
level of expertise engage in import operations.

★★★

To regularly hold training sessions on the work procedures based on the relevant laws andregulations and the knowledge thereof; To surely operate a system where only employees having
obtained an internal license will be assigned to import operations

We selected the substances that require pre-registration, determined the respective amounts
handled in our business and completed their pre-registration before the deadline.

★★★

To prepare for the required registration for the actual registration in 2010

We prepared a CSR report and made it available on the DIC website.

★★★

To prepare a CSR report and made it available on the DIC website.

All DIC production sites prepared a site report, which was used in making explanations to plant
visitors.

★★★

To positively use the site report prepared in the respective DIC production sites in order to promoterisk communications with local communities

We confirmed that the QMS activities in respective production sites were surely implemented by
the annual audit conducted by the sections in charge (RC Department and divisions in charge) and
implemented follow-up audits as needed.

★★★

To improve customer satisfaction by using ISO9001 and other QMS tools to ensure product quality

We surveyed how DIC’s respective divisions and domestic subsidiaries were complying with thesocial demands and requirements of customers and corrected the items that were found to beinappropriate.

★★

To conduct monitoring

We confirmed that customer requirements (including matters related to social demands andrequirements) were input at the designing stage of the product without fail by conducting an audit
and made reviews as needed.

★★

To further improve the product design capability to satisfy customer requirements

We implemented audits to improve the management system and promoted the implementation ofproper management reviews and internal audits.

★★

To promote the maintenance and improvement of the management system

We collected information concerning the actual state of environmental impacts (industrial waste,energy consumption, CO2, etc.) and the safety information of overseas group companies, including
the Sun Chemical Group.

★★

To determine the actual state of environmental impacts and promote the support of activities for
reduction

In China, the RC Department implemented internal audits and follow-up audits of respective
subsidiaries.
We visited subsidiaries in Southeast Asia in turn to improve systems for securing the environment,
safety, and health.
We held a meeting of the environment and safety staff in respective regions (China, Southeast
Asia) (in September and December).

★★★

To hold a safety meeting on a global basis, including China and Southeast Asia to promote thesharing of safety awareness and information;
To hold a meeting of environment and safety staff in respective regions (China, Southeast Asia);
To implement a safety audit of subsidiaries in South Asia (including India)

R e p o r t o n E n v i r o n m e n t , S a f e t y a n d Q u a li t y★★★

Report of CSR theme

One in eleven offices/plants storing decommissioned PCB-containing equipment has completed thedisposal.

* Evaluation symbols: ★ ★ ★ …Excellent ★ ★ …Good ★ …Improvement needed29

Report on Environment, Safety and Quality■ Environmental Impact generated

Material Flow for Fiscal 2008

by Our Business Activities in Fiscal 2008
This illustrates an overall view of the environmental
impact generated by DIC Group’s business activities
in fiscal 2008. As input, 2 items are indicated:energy consumption and total water consumption.
As output, 7 items are indicated: emissions of
480 chemicals released into the atmosphereincluding PRTR* chemicals, VOC emissions into
the atmosphere, SOx emissions, NOx emissions,
COD emissions into water, CO 2 emissions, andindustrial waste disposed of as landfill. As forenergy consumption per unit production indicating
efficiency of usages, please refer to the Data
Compilation at the end of this report.
P54

P55

*The PRTR (Pollutant Release and Transfer Register) is a scheme forassessing, aggregating and disseminating data on the sources ofhazardous chemicals, amounts released into the environment andamounts transferred off-site from industrial establishments via waste
products.

INPUT
Energy Consumption
For details, see(crude oil equivalent)

P34

DIC

101,780 kℓ

Year-on-year

13.0%

DIC Group (Domestic)

138,265 kℓ

Year-on-year

12.4%

Total Water Consumption
For details, see

P55

DIC

14,995 ,000m

Year-on-year

4.6%

3

DIC Group (Domestic)

16,398 ,000m

3Year-on-year

4.7%

Scope of Report
DIC plants and research laboratories, domestic subsidiaries of DIC, and domestic affiliates
and plants of affiliates that operate on the same premises of DIC plants and jointly manage
environmental safety(This report includes part of the report on the Corporate Headquarters, Osaka Branch Office,and Nagoya Branch Office.)<Plants and Research Laboratories>
Tokyo Plant, Suita Plant, Chiba Plant, Kyushu Branch Office’ s Ink
Production Department, Hokuriku Plant, Sakai Plant, Kashima Plant,
Yokkaichi Plant, Shiga Plant, Komaki Plant, Saitama Plant, Gunma
Plant, Tatebayashi Plant and Central Research Laboratories.
<Domestic Subsidiaries>
DIC Kitanihon Polymer Co., Ltd., DIC Kyushu Polymer Co., Ltd., DIC
Kako, Inc., DIC Comfort Materials, Inc., DIC EP Corp., DIC Interior Co.,
Ltd., DIC Color Coating, Inc., DIC Colorants, Inc., DIC Precision Corp.,
DIC Engineering Corp., DIC Filtec, Inc., DIC Logitech Co., Ltd., DIC Plastics,
Inc., DIC Molding, Inc., Topic Co., Ltd., Nippon Decor, Inc., Nihon
Packaging Material Co., Ltd., Nippon Plastic Pallet Co., Fuji Label Co.,
Ltd., Seiko PMC Corp.
<Domestic Affiliates, Plants of Affiliates>
SUNDIC Inc., Shiga Plant, DIC Bayer Polymer Ltd., Japan FormalinCompany, Inc., DH Material Inc., Sakai Plant

30

Raw Materials

915,000 tINPUTCSR REPORT 2009OUTPUT

Business activities
Development anddesigning

Emissions into the atmosphere
CO2 Emissions For details, see

P35

DIC

DIC Group (Domestic)

211 ,000 t

283 ,000 t

Year-on-year

11.7%

Year-on-year

10.2%

Amount of atmospheric emissions of the 480* targeted substances For details, see
DIC

Procurement of
raw materials

298 t

655 t

Year-on-year

20.1%

NOx Emissions For details, see

54.5%

DIC Group (Domestic)

216 t

232 t

Year-on-year

14.6%

For details, seeYear-on-year

11.2%

P33

DIC

Production

Year-on-year

P33

DIC

SOx Emissions

P32

DIC Group (Domestic)

DIC Group (Domestic)

57 t

72 t

Year-on-year

17.0%

Year-on-year

9.4%

Total emissions For details, see

P55

DIC

Transportation

12,113 ,000 m

DIC Group (Domestic)

Year-on-year3

7.3%

COD emissions into waste water

12,973 ,000 m

For details, see

DIC

Year-on-year

6.9%

3

P33
DIC Group (Domestic)

Year-on-year

30.7%

419 t

Year-on-year

30.5%

Amount of emissions into water of the 480* targeted substances For details, see
DIC

Sales

14.1 tR e p o r t o n En v i r o n m e n t , S a f e t y a n d Q u a li t y

415 t

Report of CSR theme

Emissions into water

P32

DIC Group (Domestic)

Year-on-year

75.2%

14.6 tYear-on-year

74.6%

Emissions into soil
Amount of industrial waste disposed of as landfill For details, see
DIC

Usage

125 t

P34

DIC Group (Domestic)

Year-on-year

5.4%

320 t

Year-on-year

40.9%

Amount of emissions into soil of the 480* targeted substances For details, see
DIC

0t
DIC’s businessactivities

P32

DIC Group (Domestic)

Year-on-year-%

0t

Year-on-year-%

Products

OUTPUT

887,000 t31

Report on Environment, Safety and Quality■ Reducing Emissions of Chemical Substances into the Environment
Chemical corporations are expected to pay due considerations to prevent emissions of chemical substances into theenvironment in their business operations, since they deal with various chemical substances in large quantities whencompared with those in other industries. Since fiscal 2000, DIC has been taking measures to reduce the emissions of
480 chemical substances into the environment, more specifically the atmosphere, water and soil. These 480 targetedchemical substances are: 354 chemical substances specified under Japan’s PRTR Law and 126 chemical substances addedby the Japan Chemical Industry Association (JCIA) as voluntary targets. With our efforts to reduce these emissions to theenvironment, we have been successful in steadily reducing such emissions. Furthermore, since fiscal 2005, we started
collecting data from domestic Group companies, promoting the reduction of these targeted chemicals released into theenvironment throughout the DIC Group, based on our Principle and Policy for the Environment, Safety and Health.

Amount of emissions of the 480* targeted substances<Chemicals Specified Under PRTR Law + Chemicals from JCIA Voluntary Scheme (126))

DIC
Total emissions into the atmosphere: 298t
Emissions into water: 14.1t
Emissions into soil: 0t

312t

DIC Group companies (Domestic)
Total emissions into the atmosphere: 655t
Emissions into water: 14.6t
Emissions into soil: 0t

1,499

1,647

1,822

2,000

0

'97

'06

'07

670

'05

312

'04

500

430

'03

517

'02

573

'01

537

'00

601

'99

660

'98

652

749

1,000

895

1,500

'08 （Fiscal year）

DIC: Based on previous JCIA standards (non-consolidated) (284 chemicals)
DIC: Based on PRTR Law and current JCIA standards (non-consolidated) (480 chemicals)
DIC Group companies (Domestic): Based on PRTR Law and current JCIA standards(domestic DIC Group companies) (480 chemicals)

Chemical Substances with Emissions Exceeding 10 Tons in Fiscal 2008
(Tons)
among the 480* Targeted Substances
DIC Group (domestic)

DIC
ChemicalVolumemanufactured/
used

VolumeemittedVolumemanufactured/
used

Volumeemitted

Ethyl acetate

15,462.8

94.4

16,436.4

251.8

Methyl ethyl ketone

8,728.8

35.2

9,259.4

125.8

Toluene10,604.8

49.1

11,419.7

122.7

Xylene5,807.4

35.1

6,205.9

37.5

Styrene119,411.6

12.1

127,286.5

21.4

Reduction from fiscal 2008:

Acetone1,000.8

8.4

1,119.2

18.3(A reduction of 118t)

Propyl alcohol

3,793.0

14.1

3,866.7

15.2

Butyl alcohol

3,584.0

11.1

3,584.0

11.1

Methyl alcohol

29,914.5

8.8

30,883.0

9.7

Others179,314.9

43.8

213,620.4

56.4

Total

377,622.7

312.2

423,681.2

670.0

27%

Reduction from fiscal 2008:

670t

（t）
2,500

696
856

Among 480 chemicals DIC aims to reduce, the following are
the numbers of chemicals DIC used or produced in amounts of
1 ton or more in fiscal 2008: 127 chemicals for the domestic
DIC Group as a whole, 122 for DIC alone, and 70 for the totalof the domestic DIC subsidiaries. Of the total emissions by thedomestic DIC Group, 98% of chemical emissions were into theatmosphere. For this fact, the DIC Group has been focusing on
how to reduce this portion of the emissions, considering themvolatile organic compound (VOC) emissions. In fiscal 2008,
DIC introduced thermal-storage type exhaust gas treatment
equipment, improved the efficiencies in printing process, andsuspended the use of some of these chemicals to reduce theirenvironmental dispositions into the atmosphere. Some of ourdomestic subsidiaries changed the solvents they used, andstarted full operations of VOC combustion equipment, especiallyin printing facilities, consequently reducing the emissions ofthese chemicals into the atmosphere drastically. The DIC Groupis committed to introduce all necessary facilities and take all
possible countermeasures in our operations to reduce theemissions of these chemicals into the atmosphere and prevent
environmental pollution.

Changes in the Amount of Emissions of the 480*
Targeted Substances(Fiscal year)

1,948

Chemical Substances DIC Aims to Reduce55%(A reduction of 829 tons)■ Reduction of Environmental Impact to the Atmosphere, Water and Soil

32

Responding to Regulations for Volatile
Organic Compound (VOC) Emissions

approximately 30% in total VOC emissions from fixed emission sources
such as plants from the fiscal 2000 level by fiscal 2010, via the best mixof legal regulations and voluntary measures taken by industry.

VOC emissions have been restricted, due to a series of legal
amendments, including the revision of the Air Pollution Control
Law, from April 1st, 2006. These regulations target a reduction of

The domestic DIC Group set voluntary VOC emission reduction
targets in fiscal 2006. We were successful in achieving these targets
in fiscal 2008 with continuous efforts. (For the details, please refer

CSR REPORT 2009

'10 (fiscal year)

200

Halogenated Dioxins Emission Control Standards
Applicable to Domestic DIC Group Incinerators

48
66

57
72

'06

'07

'08 (fiscal year)

'04

'05

'06

NOx Emission Volume

300
200

216
232

（t）
400

100
0

'90

'03

(reference year)

DIC

'07

'08 (fiscal year)

DIC Group (Domestic)

COD Emission Volume
（t）
800

0.16

10

0.70

DIC
(Hokuriku Plant)

Approx.
0.3t/h50.001010

0.00081

DIC InteriorCo., Ltd.

Approx.
0.1t/h

10

0.69

̶

̶

KITA NIHONDIC CO.,LTD.
(Hokkaido Plant)
KITA NIHONDIC CO., LTD.
(Tohoku Plant)

Approx.
0.2t/h

10

1.0

̶

̶

Approx.
0.2t/h

10

0.029

̶

̶

Seiko PMC Corp.
(Harima Plant)

Approx.
0.2t/h10< 0.06̶̶

DIC Comfort
Materials, Inc.

Approx.
0.2t/h

10

0.067

̶

̶

599
603

400

0

'90

(reference year)

Emissions of SOx, NOx, and Effluent Impact
Substances (COD: Chemical Oxygen Demand)
DIC has been working to reduce SOx, NOx, and COD emissions
from fiscal 1990 levels. However, despite our ceaseless energysaving efforts, due to the introduction of cogeneration systems
since fiscal 2004, our fuel consumption increased, resulting inincreases of SOx and NOx emissions in fiscal 2008 from theprevious year’s levels. On the other hand, COD emissions fell in

415
419

5

448
451

Approx.
3t/h

DIC

'03

'04

'05

'06

'07

R e p o r t o n E n v i r o n m e n t , S a f e t y a n d Q u a li t y

DIC(Chiba Plant)

600

418
422

Drain

recorded
Emissions recordedStandard Emissions
in fiscal 2008 Standard in fiscal 2008
（ng-TEQ/Nm3）（ng-TEQ/Nm3）（pg-TEQ/ℓ） （pg-TEQ/ℓ）

473
474

Exhaust Gas

441
442

Incinerator
capacity'05

Report of CSR theme

We will continue to monitor Dioxin emissions from thesefacilities to secure our compliance with the regulations.

'04

188
209

The Domestic DIC Group monitors the volumes of Dioxin
emissions from our facilities every year. As of the end of fiscal
2008, DIC owned 7 waste combustion facilities. Though all 7
facilities are “specified facilities” under Japan’s Law Concerning
Special Measures Against Dioxins, both exhaust gas andwastewater emission volumes from these facilities were below
criterion values specified by the regulations.

'03

DIC Group (Domestic)

202

Compliance with Regulations for Dioxin
Emissions

'90

DIC

44
67

0

(reference year)

254
275

100

35
61

DIC Group (Domestic)

247
265

(target year)

37
52

'08

204

655

'07

1,347

1,441

'06

298

'05

（t）
300

745

DIC

'04

SOx Emission Volume

392

'00

(reference year)

373

0

421

500

442

561

1,000

440

1,500

244
250

Target

1,552

1,727

（t）
2,000

We will continue to promote the further reduction of SOx,
NOx, and COD emissions by taking all possible measures, while
continuing our existing measures such as shifting our fuel sourcesfrom heavy oils to city gas.

33
50

Changes in air emissions of VOC of 480 substances

fiscal 2008, largely due to our production adjustment.

182
187

P28 ) The DIC Group will continue striving to further reducetothese chemicals in our operations.

'08 (fiscal year)

DIC Group (Domestic)

Pollution Investigation of Soil and
Groundwater
DIC conducts soil investigations and adopts appropriate measureswhen closing our plants or selling our land properties, whichmight result in changes of land applications. Furthermore, when
we acquire plants overseas or invest in overseas businesses, DIC
references Japan’s Soil Contamination Countermeasures Act
and the country’s related regulations, making soil assessments
by applying the stricter regulations of the two. We also conductadvance risk assessments for the environment and safety of therelated overseas companies in the investment.
In fiscal 2008, no office or plant required such soil investigation
due to plant closures or sales of our land properties in Japan.

33

Report on Environment, Safety and Quality■ Reduction of Industrial Waste
DIC has been working on zero-emission activities since fiscal 2001, with a target to reduce the volume of industrial
waste disposed of as landfill to less than 5% (370t) of fiscal 1999 levels by the end of fiscal 2007. We were successfulin achieving this target in fiscal 2007. We will further continue our zero-emission activities at our sites, promoting the
expansion of our zero-emission activities to our subsidiaries both at home and abroad throughout the DIC Group.

Zero-Emission Activities
The volume of industrial waste DIC disposed of as landfill in fiscal
2008 reduced by 5% to 125t from the previous year’s level, asa result of our zero-emission activities (reduction at only 1.6%
from fiscal 1999 level). By actively expanding the zero-emission
activities to the whole DIC Group, the volume of industrial waste
domestic subsidiaries disposed of as landfill was 195t in fiscal
2008, a drastic reduction of 214t (52%) from the previous year’slevel. Among them, the following two measures contributed
greatly to this drastic reduction: an 184t reduction at theSodegaura Plant of DIC EP Corp., by promoting material recycling;
and a 43t reduction at DIC Comfort Materials, Inc., by utilizing
waste plastic as fuel for their boilers.
As a result, the total volume of by the DIC Group as landfill
became 320t in fiscal 2008, achieving a significant reduction of
41% from the previous year’s level.

respectively. These were achieved by promoting reusing andrecycling industrial waste at each of our manufacturing sites (ForP28 ).
the details, please refer to
In fiscal 2009, DIC will work on the following zero-emission
activities: reducing the volume of industrial waste disposed of as
landfill to below 96t; and studying additional measures to reduce
industrial wastes at our plants and other sites.

General Waste from Business Activities
DIC works on reducing wastes and also recycling waste byseparating them by type. At DIC Headquarters and Osaka andNagoya branches, the volume of general wastes was reduced by
60% in fiscal 2008 from the fiscal 2000 level. The recycling rate,
including paper and bottles, became 67% in fiscal 2008.

Our recycling rates were improved by 2% to 5% from theprevious year’s levels, resulting in the rates of 76% for DIC, 93%
for domestic subsidiaries, and 87% for the domestic DIC Group,
Volume of General Waste from Business Activities generated
by Corporate Headquarters and Osaka and Nagoya Branches

Volume of Industrial Waste Disposed of as Landfill

（t）
1,000

DIC

18

20

16

16

15

16

15

DIC Group (Domestic)'01

Total volume (left axis)

'02

355
252

'00

457
338

0

423
308

'09 (fiscal year)

'08

472
348

'07

460
328

'06

200

525
393

'05

10

400

612
469

'04

15

12
630
486

'03

96

'02

DIC planned
value
132
541
125
320

'01

312
809

'00

537
1,282

'99

(reference year)

21

600

1,560
2,229

4,190

3426
4,326

3,000

0

22

800

5,582

6,000

（kg/m2）
25

'03

'04

'05

'06

'07

Recycled (left axis)

255
172

7,981

7,552

（t）
9,000

'08

5
0

(fiscal year)

Waste volume per square meter of floor space (right axis)■ Our Measures to Prevent Global Warming
Prevention of global warming is recognized as the key issue. In line with the voluntary action plan targets of theJapan Chemical Industry Association (JCIA)*, DIC will further expand countermeasures for global warming to overseas
network, mainly focusing efforts on energy-saving activities as total DIC group.
*The voluntary action plan targets of the Japan Chemical Industry Association (JCIA): to reduce the average energy consumption per unit production
for the 5-year period from fiscal 2008 to fiscal 2012 to less than 80% of fiscal 1990.

Energy Conservation
In fiscal 2008, DIC could have its energy consumption index(energy intensity index) declined as the operation rates of DIC
plants declined as a result of global business slowdown. By the
introduction of biomass boiler, however, we were able to keep theindex at 93, equivalent to the previous fiscal year’s level. This level34

is an improvement from the target value of 88 for fiscal 2008. On
the other hand, energy consumption in crude oil equivalent*1 was
101,780kl (a 13% reduction from the previous year’s level).
Energy consumption by our domestic subsidiaries in fiscal 2008
amounted to 36,485kl in crude oil equivalent. As a result, totalenergy consumption by the domestic DIC Group was 138,265kl.

CSR REPORT 2009

Energy Consumption (Crude Oil Equivalent) and Energy
Consumption Index（Thousands ofkiloliters）
200

100

92

91

92

93

Our Efforts in Distribution（Index）

93

100

'90

'04

'05

'06

'07

(Base year)

102
138

117
158

0

116
157

80

116
157

50

116
150

75

120

114

160

25

'08 (Fiscal year)

0

Energy consumption (DIC) (left axis)
Energy consumption (domestic DIC Group companies) (left axis)
Energy consumption index (DIC) (1990=100) (right axis)

CO2 Emissions

In fiscal 2009, we will continue to strive to reduce CO2 emissions
associated with our energy consumption, by operating 2 wind
power generators (output: 2,300kW class) and reviewing ourmanufacturing processes.

400

94

94

96

VOICE

Akinori Ako, DH Material Inc
Granted the Minister of the Environment Awardat the Energy Conservation Contest
At the end of 2007, my family moved from an apartment to a house. Witha 1.5 fold increase in the floor area, electricity consumption increased amaximum of 70%, resulting in a dramatic rise of utility costs. To improve
this situation, I had a family meeting and decided to apply for an Energy
Economy, Trade and Industry and the Ministry of Environment. We targeted

93

94（Index）
100

a 20% reduction of electric consumption from our December 2007 level.
I am a member of the energy conservation committee at Sakai Plantof the increase in the power consumption at my house, we took the0following measures: preventing the outflow of warm air at the opening

0

'90

'04

'05

'06

'07

(reference year)

DIC (left axis)

The DIC Group companies (Domestic) (left axis)

211
283

from the improvement activities at the Plant and searching for the causes

25

239
315

50

251
331

200

248
327

and have been working on reducing environmental impact. By learning

244
304

75

234

300

100

'08 (fiscal year)

Emission index (right axis)

R e p o r t o n E n v i r o n m e n t , S a f e t y a n d Q u a li t y

100

In addition, in fiscal 2008, 30.5% of the carriers DIC usedwere Green Management Certified, a 4.8% increase from theprevious fiscal year’s level. We recommend eco-driving to all our
carriers and provide training to protect the environment andensure safety. We will continue these activities and promote themfurther.

Conservation Contest sponsored by organizations such as the Ministry of

CO 2 Emission Volume and Emission Index（1,000 t ）By increasing the use of mass transportation means such as JR’scontainers and the marine transport of trailers, we succeeded in
reducing transport energy and CO2 emissions. In fiscal 2008, a
modal shift (from track transport to railway freight and marinetransport) accounted for 10.5% of our total transportation
volume, a 1.8% increase from the previous fiscal year’s level.
As a result, we achieved a CO2 emissions reduction of 1,616t, incomparison with truck transport.(612kℓ in crude oil equivalent.)
We will continue to promote the modal shift of our transportmeans, reducing the total transport energy we use, and further
streamlining our distributions to protect the global environment.

Report of CSR theme

DIC is working on reducing CO2 emissions, in conjunction with theplans to reduce energy consumption in our production activities,
which is the main source of our CO2 emissions. In fiscal 2008, westarted full operations of our boilers using carbon-neutral wood chips
as their fuel. Consequently, CO2 emissions were reduced to 211,000t,
12% reduction from the previous year’s level. Originally, we wereplanning to achieve a reduction rate to exceed that for the energy
consumption of 13% previously mentioned. However, affected by theincrease of the emission factor due to the operational suspension ofan electric company's nuclear power plants, the 12% reduction rate
for CO2 emissions was 1% less than that for energy consumption of
13%. CO2 emissions by our domestic subsidiaries totaled 72,000t,
with those by the domestic DIC Group totaling 283,000t (a 10%
reduction from the previous year’s level).

In fiscal 2008, DIC’s total transportation volume was 195.74
million t/km, an 18.2% reduction from the previous year’s level.

of the living room stairs by curtains; collecting data by installing anenergy conservation navigation system; and reducing standby electricity,and so on. Consequently, we achieved the reduction target consumption.
Consequently we were successful in reducing electricity consumption

The Effects of Cool Biz
DIC is working on reducing energy consumption by setting our
air conditioners at higher temperatures. In fiscal 2008, at DIC
Headquarters, we achieved a 1.9kl reduction (1.7%) in our energy
consumption in crude oil equivalent from the previous fiscal year’slevel (for energy consumption for the motive and electric powerof air conditioners). We will further promote our energy-saving
activities at our offices by introducing cool biz in summer and warm
biz in winter and switching off electric lights when not necessary.

to below that for our apartment days before, with a reduction of
approximately 3,000 yen per month.
Through these energy conservation
activities, working on energy saving
together strengthened our family bond.
At the same time, I am proud that wewere able to contribute something tohelp prevent global warming.
At the Environment Award*1: Energy consumption in crude oil equivalent: to compare different volumes of energy consumption in common units of measurement, by using theheating value for crude oil (heating value of 10 million kJ for crude oil of 0.258kl), the crude oil volume (ℓ) is sought.
*2: Green management certificate: the Foundation for Promoting Personal Mobility and Ecological Transportation evaluates the green management levels oftransport operators, including those for trucks, buses, and taxis, and provides certificates for their business operations with reduced environmental impact.

35

Report on Environment, Safety and Quality■ Our Achievements in Occupational Safety and Health
To eliminate work-related accidents during our business activities, DIC continues environment- and safetyrelated audits and accident case study seminars, ensuring all our employees become acquainted with nearmiss information and accident cases.

Our Achievements in Fiscal 2008
In fiscal 2008, prior to our annual environment and safety
quality audits, to further improve our occupational safety andhealth management, DIC conducted safety pre-audits at 6 sites
and 5 domestic Group companies. By establishing the DIC Risk
Assessment Guidelines for Mechanical Equipment, DIC held
training sessions at all manufacturing sites and domestic Group
companies, promoting risk assessments in our operations.
In fiscal 2008, DIC had 3 occupational accidents with lost workdays*1 (1 in fiscal 2007). The occupational accident frequency andseverity rates were 0.38 (0.13 in fiscal 2007) and 0.044 (0.001 in
fiscal 2007), respectively. Domestic Group companies experienced
5 occupational accidents with lost work days (4 in fiscal 2007)
with their frequency and severity rates being 0.84 (0.47 in fiscal
2007) and 0.059 (0.012 in fiscal 2007), respectively.
In addition, from fiscal 20 0 8, as a new index for oursafety activities, we introduced the DART Rate*2 and started
comparisons both at home and abroad. In fiscal 2008, DART
rates were 11.7 for DIC and 14.5 for the domestic DIC Group.
The DART rate includes not only occupational accidents withlost work days, but also those without lost work days and evenminor accidents in some cases, in its calculations. We will use thisnew index annually to reflect our common activities and actual
operational circumstances with respect to our efforts to eliminate
work-related disasters.
*1: Occupational Accidents with Lost Workdays: Occupational
accidents resulting in days away from work, even though one day*2: DART Rate:
Total number of days when ordinary work was not possible plus
above lost days/total annual working hours × 200,000 hours
200,000 hours: number of hours 100 persons work full-time = (8hours/day × 5 days/week × 50 weeks/year) × 100

Occupational Accident Frequency Rate
（Frequency Rate）
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0.00

'70 '75 '80 '85 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 (fiscal year)

DIC

Chemical Industry

Manufacturing Industry＊Occupational Accident Frequency Rate
The occupational accident frequency rate is the number of injuries anddeaths due to occupational accidents per one million hours of labor.
(Calculation: Number of injuries and deaths ÷ Total work hours × 1,000,000).
An occupational accident frequency rate of 1.0, for example, corresponds
to one accident per year in a workplace with 500 employees.

Occupational Accident Severity Rate
（Severity Rate）
1.40
1.20
1.00
0.80
0.60
0.40
0.20
0.00

'70 '75 '80 '85 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 (fiscal year)

DIC

Chemical Industry

Manufacturing Industry＊Occupational Accident Severity Rate
The occupational accident severity rate is the number of work days lost per
1,000 hours of labor. (Calculation: Number of days lost ÷ Total work hours ×
1,000). An occupational accident severity rate of 0.1, for example, corresponds
to 100 work days lost per year in a workplace with 500 employees.Notes:
1.“Chemical Industry” and “Manufacturing Industry” include allcompanies in the chemical industry and the manufacturing industry,
respectively, as defined by the Ministry of Health, Labour and Welfare
for the purposes of its Occupational Safety and Health Statistics.
2. Figures for DIC are for the fiscal year (April 1–March 31). Figures for thechemical industry and the manufacturing industry are for the calendar year.

36

Our Measures in Fiscal 2009

Risk and Hazard Assessment and Education

In fiscal 2009, we will promote safety activities throughout the
DIC Group, by conducting follow-up audits, safety management
support activities, accident case study seminars for those incharge of safety, and risk assessment demonstrations to confirm
improvement from the previous fiscal year.

Aiming to achieve safety and reliability, as a chemical material
manufacturer, DIC conducts environment assessments, while
promoting the development of recyclable, safer, energy-saving
products with less hazardous substances and less waste.
To establish safer production facilities with more reliability,
DIC newly established the DIC Risk Assessment Guidelines for
Mechanical Equipment. When formulating facility investment
plans and renovating existing facilities, we additionally use
our current risk assessment method, PSM (Process Safety
Management), together with the new guidelines.

CSR REPORT 2009

We also provide educational programs regularly to our employees
concerning the safety and handling of chemical substances, byutilizing safety guidelines for technology and research departments,
MSDS, safety basic actions, and accident case studies.

Improvement of Overseas Environment
and Safety System(1) Information collection of our overseas Group companies’
environment and safety activities“Safety Tree Rings”
Safety Tree Rings is DIC’s safety commendation system tohonor our plants, R&D facilities and part of our domestic Group
companies accomplishing no occupational accidents with lostwork days for a full year. Those achieving no occupational
accidents will be given an annual growth ring to their Safety
Trees. Each Safety Tree consists from
20 silver rings for 20 years without
occupational accidents. When 20 silver
rings are completed, from the 21st year,
a gold ring will replace each silver ringfor each additional year without any
occupational accident involving lostwork days.
Safety Tree Rings of the Hokuriku Plant

Major Achievements of “Safety Tree Rings” (more than 5 rings)

In fiscal 2008, the following were the major awards DIC received
related to safety and health from external institutions:

Shiga Plant
Fire Depar tment Chief Commendation: Top Hazardous
Substance Handling Office Commendation
Chiba Plant, Yasuo Hashiura (Manufacturing department 2,
Manufacturing section 3)
Ichihara City Fire Department Chief: Certificate of appreciation(lifesaving)
The Mayor of Ichihara City: Official commendation for lifesaving
Kashima Plant, Kaname Seino (Environmental and safety quality
manager)Japan Industrial Safety and Health Association (JISHA): Greencross award
Komaki Plant, Toshikazu Kitao and Akinori Moriwaki (Oganmanufacturing section)
Komaki City Fire Department Chief: Certificate of appreciation (lifesaving)

In 2008, to improve systems to secure the “Environment, Safety,
and Health” at our overseas Group companies in Asia and China, at
our regional headquarters (Shanghai and Singapore), DIC assigned
ESH coordinators and established information networks between
the coordinators and persons in charge of environment and safetyat each Group company. In addition, to promote information
sharing, we held three ESH meetings in 2008 as followings; Global
Safety Meeting in Japan in May; China Regional Safety Meeting inShanghai in September; and Asia Regional Safety Meeting in Kuala
Lumpur in December. At these meetings, persons in charge ofsafety at each Group company gathered, introduced safety activity
cases, and exchanged information concerning their safety measuresand education methods. Additionally, from January 2009, DIC has
been exchanging information on accidents/incidents with regional
ESH coordinators and sharing information on safety measures
between our Group companies on a monthly basis. In 2009, we
will continue to conduct environment and safety audits and followup audits of each company on a regular basis, improving oursystems to secure the environment, safety, and health of people.

R e p o r t o n E n v i r o n m e n t , S a f e t y a n d Q u a li t yAwards Received(2) Improvement of our overseas Group companies’ environmentand safety activities and sharing of information (Asia and China)

Report of CSR theme

Sakai Plant: 7 rings, Central Research Laboratories: 8 rings,
Suita Plant: 9 rings,
Tokyo Plant: 11 rings, Kashima Plant: 11 rings,
DIC Kitanihon Polymer Co., Ltd., Hokkaido Plant: 15 rings,
Hokuriku Plant: 20 rings (of which, 15 in gold),
Kyushu Branch: 20 rings (of which, 20 in gold)

We have been collecting ESH information of our overseas Group
companies since 2007. In 2008, the number of overseas Group
companies from which we collected information reached 43, an
increase of 12 companies from 2007. In addition, the reliabilityof information gathered, e.g. energy consumption and Industrial
Waste volumes, has been improved. In 2009, we aim to movea further step forward from a mere understanding of actual
situations, improving safety activities and setting targets for the
reduction of environmental impact.

We also exchange our environment, safety, and accident information
with the Sun Chemical Group in
Europe and the United States,
establishing systems to share oursafety measures to work on global
environment and safety activities.

Regional Safety Meeting in Kuala Lumpur

Our Measures in Distribution
To cope with emergencies while transporting chemicals, we
provide Yellow Card*3, not only to freight-exclusive vehicles such as
containers and tank trucks, but also to general freight vehicles whichcarry mixed loads. For the transportation of DIC products, we use
special containers that comply with transport-related regulations
such as the Fire Defense Law and United Nations Standards.

*3 Yellow Card: A voluntary activity promoted by the Japan Chemical Industry Association (JCIA). To take proper measures when accidents
occur during the transportation of chemical substances, on this yellow card, steps to take in accidents and contacts are indicated so that carriers,
firefighters, and law enforcement can take proper actions. All carriers of chemical substances are obliged to carry this card.

37

Report on Environment, Safety and Quality■ Environmental Cost/Safety and Health Costs
Since fiscal 1998, DIC has been using the “Environmental Accounting System” to improve the efficiency ofenvironment investment and activities, and promote our continual improvement.

Environment and Safety Costs
DIC has been publishing our environment and safety costs since fiscal 1998, obtained from our own calculation methods. From fiscal 2000,
to calculate our environment costs (investments and expenses), we have been referencing the Preparation for the Establishment of an
Environmental Accounting System (reported in 2000) by Japanese Ministry of Environment. For the investment amounts and expenses forsafety, health, and disaster prevention, we will continue to use our own calculation methods and disclose these costs in our operations.

(1) Environment Costs in Fiscal 2008

(2) Safety and Health-Related Costs in Fiscal 2008

In fiscal 2008, environment-related capital investment was \976
million, as total domestic DIC Group (including DIC) was \1.035
billion.

In fiscal 2008, safety- and health-related capital investment was\385 million, as total domestic DIC Group (including DIC) was\452 million.

As for environment-related expenses, DIC spent a totalof \10.432 billion, total domestic DIC Group (including DIC)
was \10.968 billion. (For the details, please refer to the Data
P56 )Compilation at the end of this Report,

As for safety- and health-related expenses, DIC spent a total of\1.085 billion, as total domestic DIC Group was \1.233 billion. (Forthe details, please refer to the Data Compilation at the end of thisP57 )Report,■ Management of Chemical Substances Involved in Our Products
By preparing the MSDS (Material Safety Data Sheet = product safety data sheet) and establishing achemical substance information comprehensive management system (CIRIUS), DIC has been working on theinformation management of our raw materials and chemical substances involved in DIC products to provide
proper information on various chemical products used in our operations to our customers and stakeholders.

Providing Proper Information about
Our Products
DIC prepares MSDS in line with the Japanese Industrial
Standards (JIS) for all chemicals we produce, and provides proper
information on the chemicals used. Information on the MSDS
always involves safety in handling products and proper methods
for their disposal, focusing strictly on preventing occupational
accidents or environment pollution by the products.
DIC has also developed our own automatic MSDS preparation
system. This system automatically checks domestic regulations
and prepares uniform and highly reliable MSDS. We had co-opted
the system by incorporating this automatic MSDS preparation
system into the chemical substance information comprehensive
management system (CIRIUS). Now, even minor components
included in raw materials can be checked by this system. The
information of minor components included in our products will be
indicated not only on MSDS, but also on MSDSplus*1 and AIS*2.
From April 1, 2010, PRTR laws will be revised. We willcommence the distribution of MSDS in line with the revisions
from October 1, 2009. Furthermore, we provided our opinions
concerning measures to be taken upon the revisions to theauthorities concerned through our industry organization fromthe perspective of a private company. At the same time, we arepreparing ourselves for the upcoming revisions of the regulations.

38

CIRIUS (Chemical Information & Regulations Integrated into Upgrade System)
From February 2009, by reinforcing the functions of our former
MSDS system, DIC has been utilizing our expanded system,
chemical substance information comprehensive management
system (CIRIUS). To promptly and accurately respond to requests toprovide various chemical substance information, DIC utilizes CIRIUS
for the comprehensive management of information relating to all
chemical substances, including the procurement of raw materials
and shipment of products. By reinforcing its functions, in addition to
MSDS, the system can also prepare MSDSplus and AIS. Furthermore,
CIRIUS can now transfer products’ chemical substance information toother systems to print product labels and export products overseas.

CIRIUS: a screen image to search raw material information

CSR REPORT 2009

By utilizing information comprehensively managed by CIRIUS, DIC
can always reference the latest regulations related to chemical
substances we are handling in our operations. With the CIRIUS, DIC
will continue to comprehensively manage and provide our chemical
substance information to our customers and stakeholders. DIC will
expand the use of CIRIUS to our domestic DIC Group companies inorder of precedence.

VOICE

Mika Iiyama,
Manager, CIRIUS project secretariat, Responsible Care Dept
In the past few years, laws and regulations on
chemical substances have been strengthened;
while there have also been renewed requests
from society for the provision of information.
Manufacturers of electric and electronic

Complying with Overseas Laws andRegulations
The DIC Group has completed preliminary registrations of
the chemical substances required to comply with European
REACH*3 regulations by the designated deadline of December
1, 2008. We have already finished selecting the chemicals to be
actually registered, the registration of which will start in order ofprecedence between 2010 and 2018. In addition, by preparing
MSDSplus and AIS with CIRIUS and providing this information
to our customers, we will also provide information on REACHapproved chemical material to our customers.

In fiscal 2008, we promptly responded to the introduction of
the GHS*4 system in the Republic of Korea, China, and Taiwan,
preparing MSDS and labels and providing them to our customers.

been promoting the improvement of chemical
substance management systems such asenvironment-related material management
systems and MSDS preparation systems.
Though DIC has been striving to improve our chemical substancemanagement system, since kinds of businesses, industries, and productsvary widely and we deal with large quantities of chemicals, DIC’s
traditional chemical substance management system did not cover allnecessary specifications.
For this reason, DIC continued our discussions concerning specificationsof the system, and finally established a new system, CIRIUS, singlehanded, after considerable struggle. With this system, we can prepare therequired documents on chemical substance information, such as MSDS
and AIS, depending on our customers’ requests for all of our products
including mixtures, polymerization products, and molded products. Since
these should be promptly provided to our customers, with this system,

Report of CSR theme

To manufacture and export DIC products overseas e.g. to theUnited States, China, and the Republic of Korea, we will takeappropriate measures including registrations of new chemical
substances or applications for the exemption of registrations
and strictly comply with the necessary regulations governing thechemical products we handle.

appliances and chemical raw materials have

CIRIUS, we employed a web-distribution system so that customers canview the necessary documents via Internet. As of July 2009, MSDS
viewable by customers through the web-distribution system is correspondto new chemicals to be included following the revisions of PRTR laws to
be enforced on April 1, 2010. Accordingly, DIC aims to provide chemical
substance information with CIRIUS promptly and accurately.

R e p o r t o n E n v i r o n m e n t , S a f e t y a n d Q u a li t y

Education on Chemical SubstanceManagement
Aiming to improve the awareness and knowledge of chemical
substance regulations both at home and overseas, DIC provide
education sessions mainly to those in charge of chemical
substance safety information assigned at each technology
department, to enhance our in-house chemical substancemanagement.
In fiscal 2008, DIC focused on educating those in charge of theimports and exports of chemical substances.

*1: MSDSplus: A document format to supplement information on MSDS advocated by JAMP (Joint Article Management Promotion-consortium) to
be uniformly used by the industry*2: AIS: Article Information Sheet
Another document format advocated by JAMP. While MSDSplus is for chemical products, AIS is for articles.
*3: REACH: Registration, Evaluation, Authorization and Restriction of Chemicals
European chemical substance regulations. Under REACH, businesses bear responsibility for evaluating the safety of chemicals with no distinction
made between existing and new chemicals. REACH also prohibits the use of specified chemicals in principle.
*4: GHS: Globally Harmonized System of Classification and Labeling of Chemicals
Recommendations of the United Nations Economic and Social Council for the classification of chemicals according to their type and level ofdangerous toxicity, in accordance with globally uniform rules, and for the transmission of information on pre-existing dangerous poisons by labelingthat can instantly be understood by those handling the chemicals and MSDS.

39

Report on Environment, Safety and Quality■ Quality Policy and Quality Activities
DIC’s Quality Policy

Contributing to the prosperity of customers and society by providing products that are always trusted
Flow of Customer First Policy of DIC
Par t visible
to customers

Request s from cu stomer s /market and societ y

Customer s atisfac tion
realiz ation system of DIC

MSDS
Technical
information

Labeling
Package
SampleContract/
delivery specifications
COA (Certificate of analysis)
MSDS/Catalog
Products

DIC Website
Customer consultation
information
Technical service
Quality validation

Design review
Validation
Control of changes

Product evaluation
Trial production
Mass trial production

Production/
quality → Products
confirmation

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

Information from customers

Requirements

Output from DIC
Products

Sales strategies

Quality assurance

Contents/composition
Container/mode of packing
Consideration of environment
Workability and convenience in handling
Disposal after use

Planning and framing
Design and development

Marketing

Production

Hazard of raw materials
Conformity to laws and regulations
Productivity and capacity
Safety and stability of process
Cost/stable supply

Bu siness ac tivities of DIC to deliver high qualit y produc t s that are s afe and reliable

DIC’s Product Provision Process
Planning and Framing
In product planning, related manufacturing, sales, technology andadministration departments collaborate and determine the basic performanceof products based on requirements from the market and customers.
Development and Design Review
In development and design review, quality targets are set in line with thebasic performance of products based on market trends and requests from
customers, and create values for the same, by reflecting DIC’s inherent
technologies and accumulated data. Concurrently, we confirm that raw
materials and products have no problem from social perspectives.
Production and Quality Confirmation
To ensure product quality, we conduct thorough process and identification
management. To maintain mutually beneficial relationships with customers,
DIC focuses on resource-saving, energy-saving and cost reduction.
Sales and Technical Services
We will strive to improve our product quality, by listening to thevoices of our customers. In addition, to ensure our customers canuse our products safely and reliably, we provide information, data
and technical services through our sales offices, to further enhancecustomer satisfaction.
WEB

Current Situation of ISO Certification

Major Quality Activities and Review in Fiscal 2008
1.DIC worked on continual improvement to heighten theeffectiveness of our quality and environment management
systems and their sustainment. All Group companies also workon these activities under the same policy. In fiscal 2008, DIC
Kyushu Polymer Co., Ltd. obtained ISO9001 (2008 ver.).
2.In fiscal 2008, the Kyushu Branch’s manufacturing department,
and our 2 overseas Group companies (China and Malaysia)
obtained Sony’s green partner certifications. Additionally,another Group company (Malaysia) is applying for the same.
Our overseas Group companies aim to positively respondto requests from our supply chains, improving our systems
accordingly.
3.In fiscal 2008, the number of complaints from our customers
decreased by 24% from the previous fiscal year’s level. We
will continue to share information on complaints from ourcustomers among our manufacturing, sales, and technology
departments, utilizing the shared information to promptly andaccurately handle complaints and improve our product andservice quality for better customer satisfaction.
4.For Liquid Cr ystal Material Division, we introduced amanagement system which utilizes bar codes to manage
liquid crystal and the manufacturing process. Liquid crystal
materials must be blended differently for each customer, withthe respective correct amount of liquid crystal ensured ineach case. With the introduction of this management system,
DIC can properly manage the manufacturing processes andimprove the quality of products required by customers.

http://www.dic.co.jp/en/csr/environment/iso.html

Plans for Fiscal 2009
For DIC’s 13 manufacturing sites, we conducted top management
auditing, environment and safety quality audits, and follow-up
audits. We continue our improvement efforts to further improveand sustain the effectiveness of our quality and environment
management system. For each of our division, by conducting quality

40

audits, we will further enhance their quality management system.
For our domestic Group companies, based on self-audit checksheets, their divisions in charge of auditing will conduct quality
audits and follow-up audits to sustain and improve their quality
levels.

CSR REPORT 2009

Report on Our Business Models
Focused on Customer Satisfaction

In providing various products and services, and targeting the continual improvement of the same, the DIC
Group acknowledges that our continued business growth means constantly listening to the comments ofour customers and seeking to enhance their satisfaction. Based on this understanding, the DIC Group strives
to establish our business models to achieve higher customer satisfaction levels.

Our Major Efforts in Fiscal 2008
For DIC’s graphic arts business operation, to improve ourcustomer support systems in our organization, we newly
established Customer Service Department in our Pigment Division
and Technical Sales Department in our Printing Inks & Supplies
Division.
In addition, since DIC’s businesses are deeply related to the
housing industry in various aspects, DIC started innovating ourbuilding material business. Specifically, we started formulating
business visions to maximize our strength in related businesses,
and identify issues in each of them. We also clarified the ideal
business visions and themes for each business, by confirming
the expectations of customers and distribution channels to DIC,
through interviews and exhibitions and identifying issues andstrengths by discussions with our executives and the key persons
in our major departments.

Building material messe (exhibition)

DIC is carefully considering the way it should be in the DIC’sbuilding material business and the selected thems from user
perspectives. We also offer what makes people feel confortable intheir home life based on our offering products made from highperforamce materials and technologies capitalizing our materials.
We will aim to enhance our customers’ satisfaction in the housing
industry. In addition, DIC will continue to improve our web sites.
Specifically, we will reconstruct them by application and category,
to facilitate product searches on the web sites. We will also
improve the user-friendly interfaces and indicate our products,
applications, and contacts more clearly. This improvementof our web sites should successfully enhance our customers’
understanding of our businesses and products and help them findproper contacts for each of our businesses and products moreeasily.

R e p o r t o n En v ir o n m e n t , S a f e t y a n d Q u ali t y / R e p o r t o n O u r Bu s in e s s M o d e ls F o c u s e d o n Cu s t o m e r S a t is f a c t i o n

We will shift from our traditional individual approach of providing
products to our customers from each business groups to offeringa package of solutions to our cusotmers in favor of looking fromthe whole DIC Group’s perspective. Specifically, we will review
our evaluation systems, utilize the technologies of each divisionin the whole DIC Group and investigate the ideal business models
for each industry and customer. To begin with, we will reconstruct
our organization and newly establish Corporate Marketing
Department. This Department will work on business areas, which
are related to multiple departments, by establishing interdivisional
business ideas in our company and presenting them as a single
concrete business proposal to our customers. For instance, we will
optimize our businesses such as solar-cell materials, inkjet inks,
and materials for high performance films.

Report of CSR theme

Our Plans for Fiscal 2009

VOICE

Yoshihiro Terada, Senior Manager, Technical Service Department, Pigment Division
Establishment of Customer Service Department
Our Pigment Division has newly established a Customer Service Department for technical services to our customers, the collection ofcustomer information and information of new competing products, and quality assurance of our products. These were previously handledby multiple sections in our division before the establishment. This newly established Department handles all customer services, not only forJapan but also Singapore and China. By further training and increasing our customer service staff, we aim to enhance customer satisfaction
still further by responding to their requests promptly and accurately, creating new markets, and finding potential demand in the markets.

41

Report on
Human Resource Management
DIC Group aims to be a company where every employee can maximize their individual capabilities
depending on their respective ability. Targeting this, for all employees to concentrate on their work withpeace of mind, DIC endeavors to create an appealing workplace, which respects work-life balance of each
employee.

Measures for Work-Life Balance
DIC has been working on improvement of systems to realize
work-life balance as a foundation to create corporate cultures inwhich female employees can play active roles and all employees,
disregard to their gender, can choose various life styles.
Specifically, our systems related to child rearing and protecting
motherhood capacity go beyond what is legally required. We
have been improving the systems to make them more userfriendly depending on each employee’s situation. Child-careleave by male employees has been gradually increasing and todate 3 male employees have taken such leave. The contents ofsystems and information on new establishments and revisions areannounced through in-house newsletters and our Intranet, sothat each employee has updated information to promote further
understanding and utilization of the systems.
Thanks to these measures, DIC wascertified by the Tokyo Labor Bureau asa Certified Employer 2008, namely acompany to positively promote the next
generation of rearing support measures.

1. Shortening of working hours (fixed):
When working full-time is regularly difficult, due to reasons
such as needing and drop-off to pick up the child, shorteningof working hours of up to 2.5h/day can be permitted.
2. Shortening of working hours (flexible):
When working full-time is difficult for specific days due toreasons such as needing and drop-off to pick up the child,shortening of working hours of up to 3h/day can be permitted.
3. Staggered working hours:
When working normal hours is difficult due to reasons such as
needing and drop-off to pick up the child, staggered working
hours of up to 2h/day can be permitted.

Child Care Leave System for Child Rearing Partners
Aiming to provide opportunities for male employees to participate
in child rearing, for the period between the child’s birth and thefollowing 8 weeks, a male employee can take childcare leave of
up to 5 days

Improvement of the Economic Support System
Next Generation
Certification Mark
“Kurumin”

Various Systems to Support the WorkLife BalanceContinuing Working While Child Rearing
DIC provides various systems to support employees who wish tocontinue working while raising their children, enabling them tocontinue to contribute to their department and the Company

During child-care leave without pay, those on leave can utilize
a system whereby he/she is loaned part of his or her bonus.
The in-company loan system can be used to eliminate economic
anxiety when significant payments are generated for cases suchas fertility treatment and the use of child-care facilities.

Creation of an Organization to Provide
Opportunities for Female Employees
Promotion Activities to Support Successful Careers for Female
Employees
Our Major Efforts in Fiscal 2008

Child-Care Leave System
DIC sets the period for child-care leave until the child reaches
the age of 2 years and 6 months, 1 year longer than legallyrequired.

Since fiscal 2006, DIC has been working on promotional activities
for female employees to play active roles at the Company, aiming
to become a Company where all employees with willingness canplay active roles disregard to their gender. In these activities, we

The Company also established the rule that employees who
have taken the leave shall return to their original job or a job ofequivalent rank
Number of Employees Taking Advantage of the Childcare Leave System
Fiscal year

Number of Employees

Number of female employees (DIC)

2006
2007
2008

28
30
40

702
681
679

Our System for Working while Child Rearing
DIC provides the following working systems until the end of thechild’s third grade school year:

42

Career development training for female employees

CSR REPORT 2009

work on innovations of all employees’ awareness and revolutionsof corporate culture. In addition, aiming to enhance female
employees’ willingness to challenge, our Human Resources
Dept., mainly the section in charge of female employees’ careerdevelopment promotion, is working on awareness development
education, expansion of work fields for female employees, andimprovement of employment rate for female employees.
As major activities in fiscal 2008, by setting our theme, Creationof Organization to Provide Opportunities for Female Employees,
we held lecture meetings for female department managers or
those in higher positions. In addition, for supervisors with female
subordinates, we provided management training and for middleranking female employees, career development training.
Furthermore, of 56 new recruits with academic careers above
technical college or university level, 15 were female.

Our Plans for Fiscal 2009
DIC continues our efforts to positively hire female employeeswith academic careers above technical college or university
level. Additionally, DIC will further promote the expansion of theworking fields of female employees by supporting those assigned
to sites of three-shift work at our plants for the first time last
fiscal year, where previously only male regular employees wereassigned.

Our Plans for Fiscal 2009
DIC will continue our efforts to further encourage the reemployment of senior persons.
Reemployment

at DICFiscal year

Number of employees reemployed

Reemployment rate (%)

2007
2008
2009 (plan)

43
94
93

95.6 %
92.2 %
96.9 %

Promotion of Employment of Persons with Handicaps
Our Major Efforts in Fiscal 2008
DIC has been working to promote the employment of handicapped
persons. In particular, there has been a significant improvementin our employment rate for handicapped persons over the past
few years. In fiscal 2008, our employment rate for handicapped
persons reached the level specified by the law (1.8%).

Our Plans for Fiscal 2009
DIC will aim to constantly maintain this 1.8% employment rate
for those with handicaps specified by the law, by cooperatingwith unemployment offices (Hello Work) and education andtraining facilities and further actively promoting the employmentof those with handicaps.

Protection of Workers’ Rights

Personnel Exchanges and Education for Global Management

The DIC Group promotes the creation of a workplace where all
employees are properly aware of human right issues and mutuallyrespect each other’s human rights. In addition, to promote thesemeasures, DIC has stated that the Company shall use the U.N.’s
Global Compact as standards. In the DIC WAY Code of BusinessConduct, the Company clearly states its support and respect for
the Universal Declaration of Human Rights. The Company will
eliminate various violations of human rights in our corporate
activities by the following means: (1) respect for human rights,(2) prohibition of forced labor, (3) prohibition of child labor,(4) prohibition of inhumane treatment, and (5) prohibition of
discriminatory treatment.

Our Major Efforts in Fiscal 2008

Our Plans for Fiscal 2009
The DIC Group will expand the establishment of systems in
the Southeast Asia and Oceania areas, based on those alreadyestablished in China for our global management.

Promotion of Employment of Senior Persons
Our Major Efforts in Fiscal 2008
With the aim of providing employment opportunities for capablesenior employees who wish to continue working, in 1991, DIC
became one of the first companies in Japan to introduce a reemployment system that enables employees to continue working
beyond the mandatory retirement age. This system allows for reemployment up to the age of 65. In addition to broadening thescope of opportunities for retirees, DIC has modified this system
in accordance with revisions in 2006 to the Law Concerning the
Stabilization of Employment of Older Persons.

Measures to Protect Human Rights

Repor t on Human Resource Management

The DIC Group has been taking measures to consign the
management of our overseas Group companies to national
staff as much as possible. In China in particular, we nearlycompleted the following measures in fiscal 2008: (1) personnel
systems related to evaluation, compensation, and employee
qualifications; (2) management training for executive candidates;and (3) enhancement of welfare programs mainly through theintroduction of medical insurance.

Report of CSR theme

Measures to Cope with Diversity in
Employment

Measures to Prevent Sexual Harassment
As for our measures against sexual harassment, the DIC Groupprohibits sexual harassment behavior in our DIC WAY Codeof Business Conduct. This prohibition is also clearly stated inour company rules and in DIC’s declaration to prohibit sexual
harassment at work. In addition, DIC aims to create a sound andcomfortable workplace by preventing sexual harassment by thefollowing measures: posting of guidelines to create a workplace
without sexual harassment in our Intranet; the installation ofcounseling and complaint windows at each office; and educating
new managers to prevent sexual harassment.

43

Report on Human Resource Management

Our Measures for Labor-Management and Safety and HealthTo create workplaces where employees can actively work withpeace of mind, DIC holds labor-management councils andsafety and health committee meetings on a regular basis ateach office, aiming to further develop mutual trust between
labor and management through information exchanges. In
addition, in semiannual labor-management negotiations inspring and autumn, we share mutual understanding of thecurrent circumstances around salaries, working hours, holidays,

and welfare programs, and of both sides’ needs, measures, andissues at work for successful bilateral negotiations. Furthermore,believing that sound and strong business foundations andcorporate development will help promote employment stability
for a lifetime and of our employees’ daily lives, as one of theactivities proposed from labor union to management, we holda management council meeting on an annual basis, exchanging
frank opinions mainly on business activities and the future policyof each division.

The spirit and willingness of our employees to pursue new challenges is the driving force behind DIC’s
ongoing evolution. DIC strives to provide our employees with such challenges, as well as to ensure support
through advanced personnel and compensation systems.

Employment Opportunities and Employee Development
A Performance-Based Employee Qualification System
With the aim of building a workplace that enables all employees
to realize their full potential and ensuring the effor ts of
employees are fairly reflected in salaries, DIC has long applied an
employment system that rejects job category, academic recordand other such factors unrelated to performance. Moreover,in 2002, DIC eliminated distinctions between career and noncareer path employees and integrated our employee qualification
system.

Strengthening Coordination among Evaluation System, Salary
System and Training System
To further reflect the capabilities and performances of employees
in their salaries, we are working to strengthen capability
development directly related to their courses of duty, and improvetraining contents for employees to voluntarily and actively
improve their capabilities.

Promotions within DIC are determined once annually and basedon the results of an objective assessment procedure that includes
a written test, essay, interview and personnel evaluation. This
ensures equal opportunities for advancement for all employees
exhibiting initiative and skill.

A Salary System that Motivates Employees

Supervisor

Division targets

Individual

Individual targets

Feedback

DIC has been introducing a salary system to reflect capabilities
and performances of each employee by eliminating and reducing
seniority and qualification based salary and benefit systems. In
other words, we aim to achieve a “pay for performance” system
to properly evaluate the capabilities and performances of each
employee and reflect the same in their salaries accordingly. We
believe that this is a salary system, which is rewarding for our
employees.

Employee Evaluation Process

Interview

A Goal-Oriented Evaluation System

Process
evaluation

Results
evaluation

Annual evaluation

Semiannual evaluation

Bonuses

SalaryPromotion

Skilldevelopment

Appropriate
assignment

44

Execution of duties

Careerdevelopment
sheet

To truly improve job satisfaction by the salary system, the needfor an evaluation system to properly evaluate the capabilities andperformances of each employee is inevitable. To further heighten
the transparency and legitimacy of the evaluation system, DIC
has introduced the concept of “management by objective (MBO)”
in our system. Based on this concept, targets will be set at the
beginning of each period. Based on these, each employee’s
capability and performance will be semiannually evaluated.
The results of this evaluation will be fed back to the employee
together with the reasons for the evaluation and disclosed. In
addition, we also utilize the results of the evaluations to develop
our own human resources. (For details of our evaluation system,
please refer to the chart below.)CSR REPORT 2009

It is quite common for DIC to entrust young employees with large projects from early in their careers. For each
employee to exert a high performance, DIC prepares various training contents and progressively promotes the
improvement of each employee’s capability to execute their duty, by arousing the urge for self-improvement
and following up on employees’ related activities.

DIC’s Training Programs
DIC’s training programs can be roughly divided into 4 categories, with global-minded personnel development training and self-developmenttraining in particular having specific characteristics. Specifically, as for our self-development training, even new recruits actively participate
the training programs. With the latter, while employees can acquire the necessary skills in executing their duties at work, the programs playa vital role as venues for participants to create networks at the Company.

VOICE

Global-Minded Personnel Development Training Program
The program is mainly for the personnel development ofexecutives and staff at our overseas Group companies. The
programs consist of the following: training of candidates foroverseas assignments to strengthen not only language skills but
also intercultural communication and management capabilities;
overseas training to send our personnel as trainees to ouroverseas subsidiaries or research institutes for educational
purposes and MBA overseas education to send our personnel tograduate schools in the United States to foster human resources
responsible for our global strategies.

Daisaku Miura, News Ink Sales,
In-House Seminar:
Accounting and Finance Course
Analysis practices with DIC’s financial
statements were the best to start withand significantly helped me to acquire theknowledge in this Accounting and Finance
Course. Working as a sales person requires decision-making on a daily
basis. By fully utilizing the management analysis methods acquired inReport of CSR theme

practice, numbers in financial statements, which are records of corporate

Self-Development Training Programs (DIC Business School and others)

activities, started to have meaning to me, helping me to clarify the

They are optional programs to suppor t self- and abilit ydevelopment for employees with willingness. We have a selectionof approximately 200 correspondence courses and approximately
800 video library courses. In our in-house seminar courses, ouremployees can systematically acquire special, systematic andpractical knowledge in subjects such as the following: accounting
and finance, marketing, logical communication, and assertive
communication. In addition, in our e-learning courses, we also
provide programs to improve English proficiency.

awareness of problems, which was previously lacking. Consequently, thisshould increase the number of choices in my everyday decision-making,some of which have been overlooked to date, helping me to make
optimal decisions in future.
At the beginning of the course, my objective was to improve my skills andacquire qualification. Now, in addition, I was also able to understand partof the management division’s businesses. This understanding will lead toRepor t on Human Resource Management

respect. Having our employees participate in various seminars should help
deepen understanding and mutual respect on a cross-sectional basis. I
believe that this will make DIC stronger and better for all of us.

Outline of Employee Training Curricula

Management-level training curricula
Curricula aimed at training and reinforcing the competence of management-level employees in an increasingly global corporate market
DIC Management School

DIC Business College

Curricula for cultivating competent human resources in global markets
Curricula aimed at strategically cultivating management- and staff-level human resources for DIC Group companies overseas by imparting essential, comprehensive expertise
Training for employees assigned to posts related to overseas businessSupport for employees seeking MBAs at overseas educational institutions

Training overseas

Level-specific curricula
Curricula for newly recruited and promoted employees to learn the knowledge required to carry out the role at different levels
Training for newly promoted employees at different levels

Training in coaching

Training for new middle management-level employees

Follow-up training for new employees

Training for new recruits

Training in mentoring

Self-development curricula
Various curricula offered by DIC Business School to employees who positively and voluntarily work for skill development
Correspondence courses

Video library courses

e-learning courses

In-house seminar courses

45

Report on Harmony with theCommunity and Contribute to Society
The DIC Group, as a member of society, has been working on social contribution activities, targeting
coexistence with neighboring regions and those in society and to establish good relationships with thesociety. DIC has set out the following guidelines for social contribution activities to further continue ouractivities:

Guidelines for Social Contribution Activities
The DIC Group, based on its Management Vision: Color & Comfort by Chemistry will engage in social contribution
activities in the three areas of business activities, culture and education, and communities and society to improvecolor culture and comfortable living.

Business activities

The DIC Group will offer products and services that contribute to the development of a sustainable society andprotection of the global environment from the viewpoint of “CSR through business activities.”

Culture and education

The DIC Group will engage in activities that will contribute to the development and promotion of culture, the arts,
science and education in the areas of the culture of color and chemical science, including the development of
next-generation human resources.

Communities and society

The DIC Group will strive to co-exist harmoniously with local communities to develop a relationship of mutual trust.
Moreover, the Group will provide an environment that enables employees to engage in voluntary contribution activities
to their respective local communities.

■ Our Measures in Our Business Activities
Promotion of Color Universal Designs
The DIC Group has been working on developing colors andcolor combinations, which can be equally identified by as many
people as possible based on concepts of color universal designs;
supervised by Associate Professor Kei Ito of the Institute of
Molecular and Cellular Biosciences, at the University of Tokyo,
People sense colors differently. In particular, depending on
disorders such as glaucoma and cataracts or types of DNA, it issaid that more than 5 million people see colors differently fromordinary people in Japan. Color universal designs are colors
and color combinations designed with due consideration tovarious people’s color senses so that all people can identify color
information equally.
Following numerous investigations under the supervision of
Associate Professor Kei Ito, DIC and DIC Color Design, Inc. havechosen 20 colors, which can be identified as many people aspossible. They consist of 9 accent colors with high saturation
for letters and signs, 7 base colors with high brightness as

Verification of colors andcolor combinations at the University of Tokyo46

background colors for guide maps and other maps, and 4
achromatic colors such as white, grey, and black. The DIC Grouphas jointly released the results of these efforts together with the
University of Tokyo, the Japan Paint Manufacturers’ Association(JPMA), and NPO Color Universal Design Organization. We willcontinue our research on colors and color combinations based on
the concepts of color universal designs to respond to demands
from society.

CSR REPORT 2009

Participation to Spirulina ProjectWEB

DIC Lifetec Co., Ltd. website: http://www.dlt-spl.co.jp/business/en/spirulina/index.html

The DIC Group is the world’s largest Spirulina* supplier with 30
years of history and experience in the research, application, andproduction of Spirulina for the past 30 years. Spirulina is edible
blue-green algae that has been highly evaluated by the WHO(World Health Organization) and FDA (the U.S. Food and Drug
Administration) as an ideal dietary supplement. DIC has been
providing Spirulina to various places including Chernobyl andCroatia to date. DIC has decided to support the Spirulina Project
led by the Intergovernmental Institution for the use of Microalgae Spirulina against Malnutrition (IIMSAM), a Permanent

Observer with the United Nations Economic and Social Council(ECOSOC), to utilize our experiences and knowledge to solve
starvation issues due to serious malnutrition in developing
countries.
In the Spirulina Project, we aim to solve issues such as
malnutrition and starvation in developing countries by promoting
it and educating people by directly handing out Spirulina, which
has a high nutritional value, to local people. Through the Alliance
Forum Foundation, which promotes this Project, DIC Group
provides technologies and funds related to Spirulina.

*Spirulina: spiral-shaped dark green edible micro-algae, 5-8μm in width and 300-500μm in length. They are tropical algae grown naturally in lakes
in Africa and Latin America since ancient times. They have been used as valuable food sources of people through the ages.

DIC’s
Contributions

The DIC Group provides the technologies developed to date (incubation technology
and purification technology for Spirulina) to the Spirulina Project.
The DIC Group provides the Spirulina we produced to the Spirulina Project.
The DIC Group provides fund to the Spirulina Project.

Report of CSR theme

DIC Group’s Spirulina
Incubation Facilities

The State of California, U.S.

Hainan, China

R e p o r t o n H a r m o n y w i t h t h e Co m m u n i t y a n d Co n t r i b u t e t o S o c i e t y

Background of IIMSAMThe Food and Agriculture Organization (FAO) of the United Nations has adopted the Rome Declaration on World Food Security (halving thenumber of undernourished people, 800 million worldwide, by 2015) as its target. IIMSAM is a unique U.N. approved organization focusedon Spirulina as a means of solving such serious malnutrition issues.

Why the “Spirulina Project”?
1.An excellent food

2.Efficiency of protein production
Area of land required to
produce 1 kilogram protein

Amount of water required forthe production of 1 kilogram protein

50

190

30

40

The water need not
be fresh. (Evenbrackish water is OK.)

30

20

10

2.1
9

0.6

16

10

22

20

Amount of water (liters)

Rich in beta-carotene,
a component of green andyellow vegetables

13 minerals

Area of land (m2)

12 vitamins

Dietary fiber
Polysaccharide
Phycocyanin
Zeaxanthin
Chlorophyll a
Essential fatty acid
Nucleic acid
SOD

40

50

The land need not be
fertile.
(Even a desert is OK.)

105

55-70% protein with agood balance ofamino acids

Rich in highly
absorbable iron

Developing countries suffer from a deficiency ofprotein as well as that of Vitamin A and iron.

0

Spirulina Soy bean

Corn

Beef

0

Spirulina Soy bean

12.5

18 amino
acids

Corn

ℓ

Beef

Spirulina can be produced on a desertified land where irrigation is difficult.

47

Report on Harmony with the Community and Contribute to Society■ Our Cultural and Educational Activities
Kawamura Memorial Museum of Art: Project Exhibitions and Art Educational Support
The DIC Group operates the Kawamura Memorial Museum ofArt, in Sakura City, Chiba Prefecture, to have the general public
enjoy more than 1,000 colorful works of art that we collected
together with our Group companies.
In 2008, together with its permanent exhibition, the Museum
held DIC’s centenary project exhibitions, “Matisse et Bonnard:
Lumière de la Méditerranée” and “Morris Louis: Secret Color
Layers”. In addition, by June 2009, the Museum held anotherproject exhibition, “MARK ROTHKO: Meditation Painting”,
attracting many people’s attention. The Museum is scheduled
to hold two further project exhibitions: “Four Stories: Paths toJapanese Modern Art” and “Stillness into Color: Inframince ofMoonlight”.

The Museum located in the vast garden exhibits various artworks
including Western contemporary art, Japanese art on folding screens,and 20th century American arts.

In addition, we are opening the natural strolling roads on its
premises to the public free of charge, so that people can enjoy
the changes of vast and sylvan nature every season.
As educational support activities to art, for groups of people,
including elementary school students and above, we provide
programs involving the viewing of paintings and sculptures and to
exchange opinions, which have been highly rated. In fiscal 2008,
a total of 1,478 students from 28 schools and organizations
participated in such programs.

WEB

Kawamura Memorial Museum of Art website:
http://kawamura-museum.dic.co.jp/en/index.html

At the exhibition of MARK ROTHKO, a representative post-war
American artist, half of the Seagram Murals were displayed at theMuseum for the first time in the past half century, gathering many
people’s attention.

Establishment of the DIC High-Performance Materials Prize
The DIC Group joins in with awarding activities established by theSociety of Synthetic Organic Chemistry in Japan and establishedthe DIC High- Per formance Materials Prize. By awarding
researchers with excellent achievements in the specific field oforganic synthetic chemistry, we work to further develop organic
synthetic chemical research from the corporate perspective.

The 1st DIC High-Performance Materials Prize was awarded
to Professor Kazuo Takimiya of the Chemistry and Chemical
Engineering Graduate School of Engineering, Hiroshima
University.
The research theme of this year’s award was: The developmentof high-performance organic semiconductor materials withatmospheric stability.

Acceptance of Internship Trainees
The DIC Group is positively and annually accepting many
internship trainees, including students from junior high schools,
high schools, technical colleges, universities, and graduate
schools, aiming to support the young generations who will
shoulder the future of Japan to acquire a view of career andwork, work-related knowledge and skills in the early stages anddeepen their understanding of themselves. In fiscal 2008, the DIC
Group provided work experience to 59 students at our field sites.
Awarding ceremony48

CSR REPORT 2009

■ Our Efforts in Regions and Society
Plant Tours for Elementary School Students
Aiming to promote interaction with regional societies, the DIC
Group provides opportunities for plant tours at our facilities.
In fiscal 2008, we accepted groups from elementary schools,
high schools, and women’s associations at 5 plants, providing
explanations of our facilities and tours inside the plants.
At DIC Molding, Inc., in April 2008, a total of 105 elementary
school students visited the company. They were 6th graders of
3 classes from the neighboring Kobari Kita Elementary School in
Ina Town, Saitama Prefecture. DIC Molding, Inc. manufactures
helmets and during the visit, the company provided explanationsof the helmets’ manufacturing processes and simple practicaltraining. The company informed us that the wearing of helmets
had become mandatory by the revisions in the Road Traffic Law
last year for children under the age of 13 when riding bicycles.
The company also provided detail of a traffic safety campaign.

105 elementary school students decorated helmets manufactured by
DIC Molding, Inc. with their favorite seals and wore them.

In July 2008, DIC International (Thailand) presented part of the
profits from made-in-Thailand offset processes inks, Natural, asa donation to Princess Maha Chakri Sirindhorn at the Chitralada
Palace, in the Kingdom of Thailand.

the DIC Group started a project to donate 3 baht for each 1 kg
sale of Natural; the sales of which started in 2006 and for which
donations of 500,000 baht were received in 2008.

R e p o r t o n H a r m o n y w i t h t h e Co m m u n i t y a n d Co n t r i b u t e t o S o c i e t y

The Royal Family of Thailand has been greatly focusing its
efforts on the cultural development of its country. In recent years,
Princess Maha Chakri Sirindhorn has been actively visiting bookprinting companies and newspaper companies. The Princess
seems particularly interested in printing, which is the foundationof culture. With these as cultural backgrounds, the DIC Group has
also been establishing a long history in ink businesses in Thailand
over the past 48 years. In celebrating the 80th birthday of theKing of Thailand and extending our gratitude over the years,

Report of CSR theme

Donations of Profits from Inks to the Royal Family of Thailand

We were given the opportunity
to present the donation to
Princess Maha Chakri Sirindhornof the Royal Family of Thailand
in person.

Regional Clean-Up Activities and Others
To help preserve and beautify the regional environment, the DIC
Group has been conducting clean-up activities in places such asneighboring roads in various regions. At our plant in Hakusan
City, Ishikawa Prefecture, many of our employees and their family
members participated in activities involving the cleaning of theneighboring Tedorigawa River.
In addition, at our plant in Komaki City, Aichi Prefecture, we
are actively working on voluntary activities, such as cleaning
the Oyamagawa River and the beautification campaign for Mt.
Komaki.
Additionally, we are cooperating to realize a better environment
for regional societies, by opening some of the sports facilities at
our plants to local residents in the regions, and planning festivals
to which local residents are invited.

At our Hokuriku Plant in Hakusan City, Ishikawa Prefecture, a totalof 63 employees and their family members participated in theTedorigawa Cleanup Campaign, working to improve the environment.

49

Report on Information
Disclosures of CSR
DIC has striven for information disclosure through various media and will continue to strive to communicate
with as many stakeholders as possible, both now and in future, to enhance understanding of the DIC Group

Communicating with Shareholders and Investors
IR Policy

Plan for fiscal 2009

DIC views investor relations (IR) as “two-way communications,
namely, the continuous disclosure to stakeholders of timely,
accurate and impartial information pertaining to its management
philosophy and policies, transparency of management, operating
results and prospects of DIC (including negative information), andthe concurrent gathering of external opinions and information
and reflection thereof in management.” As a listed company,
DIC strives to fulfill its responsibility for being accountable for
its actions, thereby ensuring its acceptance as a contributing
member of society and carries out activities so that DIC continues
to exist and grow in future.

DIC continues to communicate with institutional investors andsecurities analysts both domestically and overseas. Moreover, DIC
will positively conduct IR activities for individual investors.

Enhancement of Finance and IR Page
DIC maintains an IR information page on its website. Visitors
can access and download the necessary information in a timely
manner, such as announcements of the operating results andexplanatory materials (Japanese, English), financial reports, lettersto shareholders, and annual reports (English).
WEB

Major Activities in Fiscal 2008
For institutional investors and securities analysts in Japan, DIC
held explanatory meetings of financial results and small groupmeetings. At these meetings, as a valuable communication
forum over and above mere performance reports, top executives
themselves provided explanations on management strategies and
Q&A sessions were held for active communication. Following
the announcement of quar terly financial results, IR staff
members individually interviewed investors and analysts (30 to
40 interviews for respective quarters) and explained businessperformance, etc. Moreover, the visits of major factories helped
visitors to acquire a better knowledge of products by actuallyseeing the production process.

IR Information Page: http://www.dic.co.jp/en/ir/index.html

Relationship with Shareholders
Since 20 07, DIC has held an annual general meeting ofshareholders at its easily accessible Headquarters in Nihombashi,
Chuo Ward, Tokyo, in consideration of the need to encourage
the attendance of more shareholders. Moreover, DIC sincerely
respond to inquiries from shareholders made via the Internet,
email, and over the phone.

For the full scale overseas IR activities that started in fiscal
2006, DIC participated in conferences and visited investors in
Europe, the U.S. and Singapore. DIC also took part in conferences
held in Japan for overseas investors.

Operating Results Briefing

50

Letter to Shareholders “Report for the 111th Term”

CSR REPORT 2009

Relationship with Related Industries
and Organizations

Communications with local
communities

The Tokyo International Packaging Exhibition 2008, the largest
comprehensive packaging exhibition in Asia, was held between
October 7 and 11, 2008. After a spectacular opening ceremonyon the first day, the exhibition kicked off with the opening
remarks by Mr. Oe, then president of DIC and chairman of theJapan Packaging Institute. The above exhibition was the firstlarge-scale exhibition in which DIC participated since its centenary
and the new company name DIC was promoted extensively at theexhibition.

DIC participated in the “Japan Beauty from Edo-Tokyo Skillfully
Depicted by Ukiyo-e Artists” organized by the Tokyo Chuo Net
Nihombashi Beauty Promotion Group and held for the 17 days
between October 24 and November 9, 2008. The DIC Color Square,located on the first floor of the DIC Building, which is the DIC
Headquarters, was opened to the general public as an exhibition
space for reprinted editions of Ukiyo-e (produced by the Adachi
Institute of Woodcut Prints) and hence promotes the community.
The DIC Color Square was designated as one of the main venues
and there were many visitors during the exhibition. Taking thisopportunity, DIC handed out the“ photo collection commemorating
the centenary of DIC, presented the company, and explained thebusiness activities of chemical material manufacturers, with which
consumers generally tend to be unfamiliar.

The exhibition was made in three categories, namely: “packing,”,“attracting,” and “carrying,” and under 38 themes, a 6 color
printing system for seal label printing, products related toenvironmental load reduction, an EB (electoron beam) curing
printing system, “Wet Flex,” developed by Sun Chemical, one of
the Group companies, and other new technologies and products
attracting attention in the industry were exhibited.

Presenting DIC to visitors to the
Ukiyo-e Exhibition

Communications over the web
DIC positively works to improve its website as a venue for theprovision of information to all stakeholders. Enhanced usability
and accessibility was the focus of the complete renewal of thewebsite implemented in April 2008 in accordance with thechange of company name in April 2008. Consequently, DIC’s rank
went up from 137th the previous year to 10th in the Corporate
Website Ranking 2008 implemented by the Nikkei Personal
Computing magazine. DIC continues to improve its website forthe better understanding of DIC in the future.

WEB

Repor t on Information Disclosures of CSR

As for overseas activities, DIC participated in the China
Coat 2008 (Guangzhou) held in Guangzhou, China between
November 26 and 28 in 2008 and promoted the new company
name and the logo to industry participants in the Asian regions.
DIC exhibited pigment products, coating resin products, C&C
Headquarters’ decorative products for PC covers, the Functional
Polymers Division’s epoxy resin products, and many others, which
received favorable comments from many visitors.

Exhibition of Ukiyo-e at the
DIC Color Square

Report of CSR theme

This past exhibition focused on the consumers’ viewpointand creative forms of expression were made when introducing
products so that DIC’s business and products were better
understood by the general public. New forms of portrayal werepositively used to respond to questions and requests from visitors,
including the establishment of a concierge desk and holding ofan event, in which the contents of the exhibition were presented
as if it were a TV news show. During the exhibition period, DIC
business operations and products were introduced to many
visitors and a photo collection commemorating the centenaryof DIC was handed out when requested. It was a successful
exhibition.

DIC website: http://www.dic.co.jp/en/index.html

DIC Booth at the Tokyo International
Packaging Exhibition 2008 (TOKYOPACK 2008)

DIC Booth at the China Coat2008 (Guangzhou)“Applications” Page in the DIC Website

51

DIC CSR Report 2009
Independent Review

52

CSR REPORT 2009

General Awards Received
General Awards Received

Environment and Safety Awards Received

1973

1973

Amagasaki Plant

Minister of Labour

Effort Prize

1974

Warabi Plant

Minister of Labour

Effort Prize

1976

Warabi Plant

Minister of LabourFirst Prize (Hygiene)

1978

Mikawa Plant

Minister of Labour

Progress Prize

Sakai Plant

Minister of Labour

Progress Prize

Hokkaido Plant

Minister of Labour

Effort Prize

Mikawa Plant

Minister of Labour

Effort Prize

Received the Japan Society for the Promotion of the Machine
Industry Prize for the development of “DIC-TRON,” an automaticcolor separation device.

1985

Received the GATF Technology Award Grand Prix 1985 for thedevelopment of an ultra-high sensitive OPC printing plate.

1988

Banner series advertisements received the Nikkei Advertising Award.

1989

President, Shigekuni Kawamura, received the Mainichi Business
Person Award.

1979

Annual Report received the Special Prize in English publicity
contest.

1981

Tokyo Plant

Minister of Labour

Effort Prize

1982

Mikawa Plant

Minister of LabourFirst Prize (Safety)

Sakai Plant

Minister of Labour

Effort Prize

Tokyo Plant

Minister of LabourFirst Prize (Hygiene)

Hokkaido Plant

Minister of LabourFirst Prize (Hygiene)

1989

1990

Banner series advertisements received the Nikkei AdvertisingAward for three consecutive years

1984“Hollow fiber technology” received the Technology Incentive
Award of the Japan Chemical Industry Association

1986

Mikawa Plant

Minister of LabourFirst Prize (Hygiene)

1991

Kawamura Memorial Museum of Art received the Gold Prize of the
Building Contractors Society

1987

Sakai Plant

Minister of LabourFirst Prize (Hygiene)

1989

Amagasaki Plant

Minister of LabourFirst Prize (Hygiene)

1992

DIC Americas received the GATF Grand Prix for the “waterless flat
plate printing system”

1991

Sakai Plant

Minister of Labour

Progress Prize

1992

Chiba Plant

Minister of Labour

Effort Prize

Sakai Plant

Commissioner, Fire Defense Agency

Top Hazardous Substance Operation Commendation

Chiba Plant

Minister of International Trade and Industry

Top Plant for High-Pressure Gas Safety Commendation

Mikawa Plant

Commissioner, Fire Defense Agency

Top Hazardous Substance Operation Commendation

Mikawa Plant

JCIA

Safety Effort Award

Suita Plant

Minister of Labour

Effort Prize

Chiba Plant

Commissioner, Fire Defense Agency

Top Hazardous Substance Operation Commendation

Sakai Plant

Minister of LabourFirst Prize (Safety)

Warabi Plant

Commissioner, Fire Defense Agency

Top Hazardous Substance Operation Commendation

Saitama Plant

Minister of Labour

Progress Prize

Nagoya Plant

Minister of Labour

Effort Prize

Calendar was awarded for four consecutive years at the National
Calendar Exhibition.

Amagasaki Plant

Commissioner, Fire Defense Agency

Top Hazardous Substance Operation Commendation

Annual Report received the Mercury Award, the Gold Prize of theInternational Media Conference, for two consecutive years.

Nagoya Plant

Commissioner, Fire Defense Agency

Top Hazardous Substance Operation Commendation

Fukuoka Plant

JCIA

Special Commendation

Mikawa Plant

Minister of International Trade and Industry

Top Plant for High-Pressure Gas Safety Commendation

Tokyo Plant

Commissioner, Fire Defense Agency

Top Hazardous Substance Operation Commendation

Tokyo Plant

JCIA

Safety Award

Fukuoka Plant

Commissioner, Fire Defense Agency

Top Hazardous Substance Operation Commendation

Ishikari Plant

Commissioner, Fire Defense Agency

Top Hazardous Substance Operation Commendation

Suita Plant

Commissioner, Fire Defense Agency

Top Hazardous Substance Operation Commendation

Kansai Polymer Sakai Plant

JCIA

Safety Effort Award

Nagoya Plant

Minister of Labour

Progress Prize

Mikawa Plant

JCIA

Safety Award

Mikawa Plant

Minister of LabourFirst Prize (Safety)

DIC

Japan Industrial Safety and Health Association

Chairman’s Award

Saitama Plant

Commissioner of the Fire and Disaster Management Agency

Top Hazardous Substance Operation Commendation

Saitama Plant

Minister of Health, Labour and WelfareFirst Prize

Tokyo Plant

Commissioner of the Fire and Disaster Management Agency

Top Hazardous Substance Operation Commendation

Suita Plant

Minister of Health, Labour and WelfareFirst Prize (Occupational Health)

Saitama Plant

Reduce, Reuse and Recycle Promotion Committee

Chairman’s Award

Kashima Plant

Commissioner of the Fire and Disaster Management Agency

Top Hazardous Substance Operation Commendation

Kashima Plant

Minister of Health, Labour and Welfare

Incentive Prize (Occupational Safety)

Yokkaichi Plant

Reduce, Reuse and Recycle Promotion Committee

Chairman’s AwardTokyo Plant

Minister of Health, Labour and Welfare

Incentive Prize(Safety)

Fukuoka Plant

Reduce, Reuse and Recycle Promotion Committee

Chairman’s Award

2005

Komaki Plant

Commissioner of the Fire and Disaster Management Agency

Top Hazardous Substance Operation Commendation

2006

KITANIHON DIC CO., LTD.(Tohoku Plant)

Minister of Health, Labour and Welfare

Incentive Prize (Safety and Health)

2007

Tokyo Plant

Minister of Health, Labour and WelfareFirst Prize (Safety and Health)

Director of Tokyo Plant

Tokyo Fire Department

Fire Chief Commendation

Shiga Plant

Commissioner of the Fire and Disaster Management Agency

Top Hazardous Substance Operation Commendation

Kashima Plant

Japan Industrial Safety and Health Association

Green Cross Award

1991

1993
1994

Annual Report received the Mercury Award, Silver Prize (Design
Section) of the International Media Conference.
Polychrome received the GATF Grand Prix for CTX plate technology.

1995

DIC Building received the BELCA Award.

1996

Received the Recycling Promotion Council President Award for
SMC scrap wood recycling technology, jointly developed with Aisin
Seiki Co., Ltd.

1996

1996
1997
1997
1999

2000

2001
2002

2003

2004

2004

2006
2006

2007
2008

2008

1993

1994

Received the Technology Award of the Japan Chemical Industry
Association for “Development and commercialization of Tolan typeliquid crystal.”“Development of functional polyisocyanate” received theTechnology Award of the Japan Society of Color Material.

Received the Technical Development Award of The Society ofRheology, Japan for the “Development of rheology measurement
equipment for printing inks.”“Naturalis 100,” 100% soy bean oil ink received the Outstanding
Performance Award of the Nikkei Excellent Product/Service
Awards.
Received Best Poster Paper Prize by the SID International Academic
Society for research into PN liquid crystal.
Received the Technology Award, Special Technology Prize of
the Japan Chemical Industry Association for the development of“Naturalis 100.”“Ceryl,” a silica/nylon nanocomposite fibrid, received theTechnology Award of The Society of Fiber Science & Technology,
Japan.
“Japanese Traditional Colors,” a corporate series advertisement,
serially published in Mostly Classic magazine, received the
Fujisankei Advertising Award Grand Prix.
“Mecenat Grand Prix” was awarded by the Association for
Corporate Support of the Arts for operation of the Kawamura
Memorial Museum of Art.
“Liberty,” environmentally-friendly sheet fed inks of Sun Chemical,
received the 2006 PIA/GATF InterTech Technology Award.
Adviser, Okumura received a “Special Award” and Mr. Hideki Kato
received the “Network Polymer Merit Award” from the Synthetic
Resin Industry Association.
Sun Chemical received the Gold Prize as the Technology
Achievement Award from the EFTA.
The “100th Anniversary Commemorative Photo Collection"
received the Chairman’s Award of the Japan Federation of Printing
Industries at the 50th Catalogue & Poster Fair.
Mr. Ehara, Senior Managing Director, received “Qingdao Award”
from Qingdao city, China for the activities of Qingdao DIC Fine
Chemicals Co., Ltd.

1996

1997

1998
1999

2000
2001

2002

2003

2004

2008

DIC CSR Report 2009 Independent Review / General Awards Received

Corporate advertisement received the Japan Advertisers
Association INC. President Award.

Data Compilation

1990

53

Data Compilation
Data of 1999 and before can be accessed on the DIC website at the following URL:
WEB

http://www.dic.co.jp/en/csr/

Table 1 Emissions of PRTR and JCIA Chemicals
DIC
Fiscal year

2000

2001

2002

2003

2004

2005

2006

2007

2008

PRTR and JCIA chemicals (480 chemicals) (tons)

749

652

660

601

573

537

517

430

312

2000

2001

2002

2003

2004

2005

2006

2007

2008

̶

̶

̶

（879）

（900）

1,822

1,647

1,499

670

DIC Group (Domestic)
Fiscal year
PRTR and JCIA chemicals (480 chemicals) (tons)

Note: For fiscal 2003 and 2004, the substances targeted for the survey for domestic DIC Group companies, excluding DIC, were 354 PRTR chemicals only.

Table 2 SOx Emissions
DIC
Fiscal year

1990(Base year)

2000

2001

2002

2003

2004

2005

2006

2007

2008

204
221
100

55
54
24

63
65
30

33
33
15

33
32
15

37
37
17

35
34
15

44
43
19

48
47
21

57
64
29

2000

2001

2002

2003

2004

2005

2006

2007

2008

̶

̶

̶

̶

̶

̶

50
42

52
41

61
45

67
50

66
50

72
62

SOx (ton)SOx emissions per unit of production (g/ton)SOx emission index

DIC Group (Domestic)
Fiscal year
SOx (ton)SOx emissions per unit of production (g/ton)Note: SOx emissions per unit of production is the volume of SOx emitted per ton of production. The SOx emission index compares the change in emissions per unit of production with fiscal 1990 as the base year.

Table 3 NOx Emissions
DIC
Fiscal year

1990(Base year)

2000

2001

2002

2003

2004

2005

2006

2007

2008

202
219
100

185
182
83

174
180
82

166
166
76

182
177
81

244
240
109

247
239
109

254
247
113

188
185
84

216
243
111

2000

2001

2002

2003

2004

2005

2006

2007

2008

̶

̶

̶

̶

̶

̶

187
155

250
194

265
195

275
206

209
158

232
201

NOx (ton)NOx emissions per unit of production (g/ton)NOx emission index

DIC Group (Domestic)
Fiscal year
NOx (ton)NOx emissions per unit of production (g/ton)Note: NOx emissions per unit of production is the volume of NOx emitted per ton of production. The NOx emission index compares the change in emissions per unit of production with fiscal 1990 as the base year.

Table 4 COD (chemical oxygen demand) Emissions in Wastewater
DIC
Fiscal year

1990(Base year)

2000

2001

2002

2003

2004

2005

2006

2007

2008

745
809
100

615
606
75

545
563
70

474
475
59

441
430
53

473
465
57

418
405
50

448
435
54

599
588
73

415
468
58

2000

2001

2002

̶

̶

̶

̶

̶

̶

2003
442
367

2004
474
368

2005
422
311

2006
451
337

2007
603
457

2008
419
363

COD (ton)
COD emissions per unit of production (g/ton)
COD emission index

DIC Group (Domestic)
Fiscal year
COD (ton)
COD emissions per unit of production (g/ton)Note: COD emissions per unit of production is the volume of COD emitted per ton of production. The COD emission index compares the change in emissions per unit of production with fiscal 1990 as the base year.
Calculations for sites having no COD emissions data are based on biological oxygen demand (BOD) emissions.

54

CSR REPORT 2009

Table 5 Volume of Industrial Waste Disposed of as Landfill
DIC
Fiscal year

1999(Base year)̶

Volume generated (tons)
Volume disposed of as landfill (tons)
Zero emission index

7,552
100

2000
127,758
7,981
106

2001
117,682
5,582
74

2002
125,680
4,190
55

2003
118,708
3,426
45

2004
120,084
1,560
21

2005
111,414537
7

2006
119,581
312
4

2007
124,1801322

2008
103,654
125
2

2000

2001

2002

̶

̶

̶

̶

̶

̶

2003
149,781
4,326

2004
155,494
2,229

2005
162,300
1,282

2006
171,086
809

2007
181,284541

2008
151,516320

DIC Group (Domestic)
Fiscal year
Volume generated (tons)
Volume disposed of as landfill (tons)

Note: Industrial waste disposed of as landfill refers to the volume of industrial waste buried in landfill sites after reduction (through desiccation or incineration)or directly. DIC has set a goal for industrial waste disposal of 267 tons by fiscal 2007.
The zero emission index compares changes in the volume of industrial waste disposed of as landfill with fiscal 1999 as the base year. DIC’s zero emission index goal is less than 5%.

Table 6 Energy Consumption
DIC
Fiscal year
Energy consumption (calculated in terms of the volume of crude oil used) (1,000 kl)

Energy consumption per unit of production (liters/ton)
Energy consumption index

1990(Base year)

2000

2001

2002

2003

2004

2005

2006

2007

2008

114
124
100

127
125
102

120
124
100

120
120
98

117
114
92

116
114
92

116
113
91

116
113
92

117
115
93

102
115
93

DIC Group (Domestic)
Fiscal year

2000

2001

2002

2003

2004

2005

2006

2007

2008

Energy consumption (calculated in terms of the volume of crude oil used) (1,000 kl)

̶

̶

̶

Energy consumption per unit of production (liters/ton)

̶

̶

̶

145
121

150
116

157
116

157
117

158
120

138
120

Note: Energy consumption per unit of production is the volume of energy consumed per ton of production, calculated in terms of the volume of crude oil used.
The energy consumption index compares the change in consumption per unit of production with fiscal 1990 as the base year.
DIC has set its target goal as reducing its average annual energy use over the fiscal years 2008-2012 to 80% of its energy use in 1990, expressed in units of the energy source.

Table 7 CO2 Emissions
DIC
Fiscal year

2001
241
249
98

2002
240
241
95

2003
244
238
94

2004
244
240
94

2005
248
240
94

2006
251
244
96

2007
239
235
93

2008
211
238
94

Fiscal year

2000

2001

2002

CO2 emissions (1,000 tons)
CO2 emissions per unit of production (g/ton)

̶

̶

̶

̶

̶

̶

2003
296
246

2004
304
236

2005
327
241

2006
331
248

2007
315
239

2008
283
245

1990(Base year)
234
254
100

Data Compilation

2000
256
253
100

CO2 emissions (1,000 tons)
CO2 emissions per unit of production (g/ton)
CO2 emission index

DIC Group (Domestic)

Notes: CO2 emissions per unit of production is the volume of CO2 emitted per ton of production, calculated in terms of the volume of carbon released.
The CO2 emission index compares the change in emissions per unit of production with fiscal 1990 as the base year.

D a t a Co m p il a t i o nTable 8 Water Consumption and Wastewater Emissions
DIC
Fiscal year

2000

2001

2002

2003

2004

2005

2006

2007

2008

Water consumption (city water) (1,000 m³)
Water consumption (industrial water, others) (1,000 m³)
Waste water emissions (1,000 m³)

482
17,178
13,771386
14,918
11,813339
13,588
10,985346
12,27010,906362
14,24911,810335
12,78910,594315
14,262
12,015355
15,371
13,061351
14,644
12,113

2000

2001

2002

2003

2004

2005

2006

2007

2008

̶

̶

̶

̶

̶

̶

̶

̶

̶

664
12,683
11,222692
14,665
12,159851
13,778
11,528818
15,212
12,892847
16,356
13,936801
15,597
12,973

DIC Group (Domestic)
Fiscal year
Water consumption (city water) (1,000 m³)
Water consumption (industrial water, others) (1,000 m³)
Waste water emissions (1,000 m³)55

Data Compilation

2008 Environmental Costs Detailed Data
Table 1 Environmental Costs (Investments and Expenses) Figures in brackets [ ] are for the domestic DIC Group.

Unit: Millions of yen

Category

Scope

Investments

1. Costs incurred through activities aimed at minimizing theenvironmental impact generated within the business area throughproduction and sales activities (costs within the business area)

Costs related to preserving air and water quality, or
maintaining or improving waste disposal andrecycling activities

481
［540］

3,061
［3,525］

Cost of pollution prevention
and global environment conservation

Cost of conservation of the environment, including
the atmosphere and water quality

366
［416］

1,911
［2,164］Main items

Operating/maintenance expenses related to activities aimed at curbing air pollution (204) [391], global warming (503) [504],
29％
water pollution (818) [879], soil pollution prevention expenses (21) [21] and other expenses［32％］
Investments in air pollution prevention activities (88) [94]; water pollution prevention activities (278) [322]; and other investments

Resource recycling costs

Costs related to energy conservation and internaland external waste disposal

Main items

Operating/maintenance expenses for activities aimed at reducing energy and resource consumption (391)[406], water consumption (9)[9] and waste disposal (604) [800]; expenses related to the obligatory recycling of used merchandise (0.7) [0.7], and other expenses
Investments in activities aimed at reducing energy consumption (108) [117], waste disposal activities(7) [7] and other investments

Breakdown

2. Environmental costs related to management activities(management activity costs) (Note 1)

Costs related to environmental and safety promotionand education; environmental management and auditing
related to acquisition of ISO 14001 certification

Main items

Environmental education expenses (5)[7], personnel/administrative expenses (218) [245],
ISO 14001 maintenance expenses (12) [22], environmental impact measurement andmonitoring expenses (42) [51]and other expenses

3. Environmental costs related to technological activities(technological activity costs) (Note 2)

Expenses and investments related to the developmentof products that reduce environmental impact(including personnel expenses)

4. Environmental costs related to social activities (social activity costs)

Costs of plant and office greening programs and sponsorship money

Main items

Internal maintenance expenses (10) [13], fees to external organizations (92) [101],
investment in greening programs (5) [5] and other expenses

5. Costs related to damage inflicted on the environment (environmental damage costs)

Environmental clean-up and other expenses

Main items

Levies on lake development (65) [65] and other expenses

115
［124］

Expenses

1,150［1,361］

348
［406］

※1

3％
［4％］

490
［490］

66％
6,845
［6,845］ ［62％］

5
［5］

106
［120］

0
［0］

72
［72］

2％
［2％］

976
10,432100％［1,035］ ［10,968］

Total DIC
Total DIC Group (domestic)

Notes: 1. The investment portion of management activity costs is included in costs within the business area.
2. Technological activity costs are those related to the development of products that reduce the environmental impact and include the R&D costs of new products as well as improving/customizing existing products

Environment-related social activities, etc.

2％

Environment-related social activities, etc.

Pollution control,
environment conservation,
resource recycling activities

DIC

2％

32％

29％

Domestic
DIC Group(￥10,432 million)

Environment-related
management activities

66%

56

Pollution control,
environment conservation,
resource recycling activities(￥10,968 million)

Environment-related
technological activities

3％

Environment-related
technological activities

62％

Environment-related
management activities

4％

CSR REPORT 2009

Table 2 Economic Effects of Environmental Conservation Measures Figures in brackets [ ] are for the domestic DIC Group.
Category

Millions of yen

Amount114 ［202］

Income earned by waste recycling

68 ［211］

Treatment cost reduction through waste recycling

151 ［151］

Cost reduction through energy conservation

333 ［563］

Total

Table 3 Impact of Measures to Protect the Environment
Category

Environmental Load Indices1.Impact of environmental protection
measures within the business area

Base IndicesCO2 emissions (calculated in tons of carbon) per unit of production

Fiscal 1990 (Base year) = 100

SOx emissions per unit of production

Fiscal 1990 (Base year) = 10029

NOx emissions per unit of production

Fiscal 1990 (Base year) = 100

111

COD emissions per unit of production

Fiscal 1990 (Base year) = 100

58

Energy used (calculated in volume of crude oil used) per unit of production

Fiscal 1990 (Base year) = 100

93

Emissions of solid wastes disposed of as landfill(of the fiscal 1990 level)(base year for plan)

1%

Target under DIC’s reduction plan(of the fiscal 1999 level)(base year for plan)

2%

Fees paid for waste disposed of as landfill (fiscal 2008 actual payment base)(of the fiscal 2007 level) A reduction of ￥23 million

Emissions of PRTR chemicals (revised list)(of the fiscal 1999 level)(base year for plan) 36% ※1

93

CO2 emissions realized as a result of modal shifts were 1,616 tons more than would have been the casewith truck transport. (Note 2)

2. Impact of upstream and downstream
environmental protection measures

1. Figures represent emissions of PRTR chemicals based on a revised list of target chemicals that went into effect in fiscal 2001 and is retroactive to fiscal 1999.
2. Calculations are based on standards set forth by the Japan Federation of Freight Industries in its Report on Survey of Modal Shifts. A significantly greater reduction in CO2 emissions was realized through the use of large-scale transport modes in fiscal 2008.

2008 Safety- and Health-Related Costs Detailed Data
Table 4 Safety- and Health-Related Costs Figures in brackets [ ] are for the domestic DIC Group.
Category

Investments

Safety and health management costs(Safety management costs)(External training participation costs; qualification acquisition costs)

301［333］

Millions of yen

Expenses % of Total

38% ［37％］

180 ［227］

17% ［18％］257 ［260］

24% ［21％］

Safety- and health-related activity costs
Chemical substances safety data costs
Fees paid to outside firms for safety data-related tests

ー ［ー］
84［120］

Safety and fire prevention activity costs

229 ［294］

385［452］

Total

21%

Safety and health management costs

38%

Safety and fire
prevention activity costs

24%(￥1,085 million)

24%

Safety and health-related activity costs

17%

100%［100%］

Safety and health management costs

37%

Domestic
DIC Group

DIC
Fees paid to outsidefirms for safety
data-related tests

21% ［24％］

1,085［1,233］

D a t a Co m p il a t i o n

Safety and fire
prevention activity costs

Data Compilation

419 ［452］（389） ［420］（30） ［32］(￥1,233 million)
Fees paid to outsidefirms for safety
data-related tests

21%

Safety and health-related activity costs

18%

57

<Inquiries>

CSR Department
DIC Building, 7-20, Nihonbashi 3-Chome, Chuo-ku, Tokyo 103-8233, Japan
TEL: +81-3-3278-0304 FAX: +81-3-3272-7505

http://www.dic.co.jp/en/csr/

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