English version

CSR of the DIC Group

WEB

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

The DIC Group positions as the basis of CSR,

The DIC Group has officially taken CSR into its

we can fulfill our social responsibility throughmanagement since FY2007. We make efforts

our business activities and contribute to theto ensure an accurate grasp of changing social

development of the society.

imperatives, including the issue of global warming
and increasingly serious issue of resources, andrespond with solutions that deliver the value

The DIC WAY Our Way of Business

Vision ofManagementthat our many stakeholders expect. Through thecontinuous implementation of these initiatives,

Color & Comfort by Chemistry
Proposing solutions for color &comfort through chemistry

we aim to earn the trust of society and evolving.
The DIC Group formulates CSR policy each year

The DIC SPIRIT
enterprise, Integrity,
sedulity

Business
Principle

Attitude toManagement

Make a total commitment to continuous
innovation to create new value that willcontribute to the betterment of customers,society, and the global environment.

・We shall hone our sensitivity to changes in society and be consciousof our mission to always be ahead of the times.
・Conduct business aimed at the sustainability of society and the global
environment
・Continue refining the DIC Spirit (founding spirit)
・Every employee is self-reliant

starting from FY 2008 as guidelines, to promote
CSR at the ground level, and encourage awarenessat both an organizational and an individual level.
To foster concrete measures, we have set 11 CSR
themes from “Compliance” to “Communication
with Stakeholders” and have been carrying out
them with deepening those major themes.

CSR Promotion System
The DIC Group has a system in which each administrative department is responsible as Department responsible for
implementation to carry out CSR themes under the CSR Committee, to promote specific approaches to CSR. The
Sun Chemical Group, however, promotes CSR under its own system.
◎ Advisory Organ of CSR management◎ Establishment of targets and policy for activities◎ Evaluation of CSR activities

CSR Committee

President

Printing Inks & Supplies
Business Operation
Corporate
Communications Dept.
◎ Coordination of promotion of CSR◎ Comprehension of progress◎ Edification and Support of CSR

Neo Graphic Arts
Business Operation

Synthetic Resins
Business Operation

Chemical Solutions Materials
Business Operation

Business Operation Presidents Division Presidents,
Sales Branch/Factory General Managers, Subsidiary Presidents
Compliance
Information Security
Reliability of Financial Reporting
BCM (Business Continuity Management)

CSR Theme

Department responsiblefor implementation

As of April 2011

Board of Directors

Supply Chain Management
Business Model Focused on Customer Satisfaction
New Technology Development and Value Creation
Environment, Safety, Health and Quality
Human Resources Management
Harmony with the Community and Contribution to Society
Communication with Stakeholders◎ [Supplementary Note 1] Color segment: indicating efforts mainly based on [ ■ Economic perspective],[ ■ Environmental perspective], and [ ■ Social perspective].
◎ The details of each theme will be shown in the “Report on Our CSR Themes.”Please refer toOutline of the Report
This report has been edited so that readers can

CONTENTS

easily understand the CSR of the DIC Group.
The DIC Group conducted an ‘evaluation ofmateriality’ based on the following reference
guidelines for society, economy and environment,from the perspective of importance for bothstakeholders and DIC Group. In consideration ofcoverage and materiality, the items which should
be reported have been determined and the

CSR of the DIC GroupDIC Group, Globally Active and Expanding

2

DIC Top Interview

4

relevant activities of the DIC Group are presented.
Linkage with Website
The WEB markis indicated in the portions

WEB

where the detailed data or related information
can be seen, as a guide to the related pages on
our website.
DIC website

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

WEB

Scope of the ReportCompanies included in the consolidated financial statement.
Please refer to

P27Special Topics
1 Use the power of chemistry for a sustainable
society full of comfort and color

6

2 Achieve a low carbon society and reduce
global CO2 emissions

11

Report on Our CSR Themes, however, for the companies coveredby the report on the “Environment, Safety, Health and Quality”

Compliance18

Reporting Period

Information Security

19

Reliability of Financial Reporting

20

Business Continuity Management (BCM)

21

Supply Chain Management

22

Business Models to Improve Customer Satisfaction

23

New Technology Development and Value Creation

24

Environment, Safety, Health and Quality

26

Human Resources Management

38

Harmony with the Community and Contribution to Society

41

Communication with Stakeholders

44

DIC CSR Report 2011 Third Party Opinion

46

Data Compilation

47

Target Domestic Companies
April 1, 2010 to March 31, 2011 (FY 2010)
Target Overseas Companies
January 1, 2010 to December 31, 2010 (FY 2010)(Some FY 2011 topics are covered here)

IssuedSeptember, 2011 (the next report will be released September, 2012)

Reference Guidelines
GRI “Sustainability Reporting Guidelines 3rd Edition,”
ISO26000 (CD) Issued December, 2008

About the cover design
Making everyday life comfortable andfull of color
Through a variety of efforts, DIC seeks togive abundant color to everyday life andachieve a sustainable society throughscience. We have made symbols fromthe “C”s that begin the words “Color &Comfort by Chemistry”, our management
vision, and in a vivid design incorporated
into the background the idea of our speedy
handling of the desires and expectations ofsociety and stakeholders. It expresses ourcommitment to persistently contribute to
the development of a sustainable society
as a unified DIC Group.
*This report utilizes a color scheme informed byuniversal design, a focus of DIC Group efforts, togive it an easy-to-read design1

The DIC Group has 190 affiliates and is active
in a variety of business operations, including
printing inks and synthetic resins, in 64
countries and regions in the world.

DIC Group, Globally
Active and Expanding*Main countries:
American countries the United States, Canada, Mexico, Brazil, etc.
European countries Germany, the United Kingdom, the Netherlands, France, etc.
Asian and Oceanian countries China, Thailand, Malaysia, India, Australia, etc.
The sum of the operating incomes by region on page 3 below does notcorrespond to that of the operating incomes of all the companies, as theformer includes the canceled amount (¥4 billion)

Corporate Data (As of March 31, 2011)
Paid-in capital: 91.2 billion yen

Registered name: DIC Corporation

Number of employees 3,412 (non-consolidated), 21,572 (consolidated)
Domestic operations: 190 [domestic: 40, overseas: 150, including 82

Corporate headquarters: DIC Building, 7-20, Nihonbashi 3-Chome, Chuo-ku,

Tokyo 103-8233, Japan

companies in the Sun Chemical Group]

Date of foundation: February 15, 1908
Date of incorporation: March 15, 1937

Business Performance Highlights‘10 (Fiscal year)

‘06

‘07

‘08

‘09

310
225

372

‘10 (Fiscal year)

‘06

‘07

‘08

‘09

‘06

‘07

7,038

‘09

0

7,499

‘08

50

7,385

‘07

4,000

9,783

‘06

100

158

0

6,000

25

0

150

26

100

8,000

200

278

2,000

(Billions of yen)

10,000

250

254

200

Operating Income(Billions of yen)

300

484

4,000

7,790

300

7,578

6,000

9,323

400

10,779500

8,000

10,157

10,000Net Income(Billions of yen)

9,918

Total Assets(Billions of yen)514

Net Sales

‘08

‘09

‘10 (Fiscal year)

2,000‘10 (Fiscal year)

0

These graphs have been prepared from the accounts maintained in accordance with the provisions set forth in Japan’ s Companies Act and Financial Instruments andExchange Act. In FY 2010, DIC had 160 consolidated subsidiaries and 30 affiliates.

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 four operations:Operations

Synthetic Resins Business Operation

Printing Inks & Supplies Business Operation
Printing inks, printing supplies,

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

Neo Graphic Arts Materials Business Operation

Chemical Solution Materials Business Operation

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

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

Breakdown of Sales by Segment
Chemical Solution
Materials

18%

Breakdown of Sales by Region

OthersAsia/Oceania

1%

14%

Total:

Total:
Synthetic Resins

19%

779.0

America

779.0

16%

Percentages of the Number of Employees by Region

Asia/Oceania
Japan

27%

47%

billion yen

billion yen

Total:

21,572

Japan

29%

Employees

Printing ink & Supplies
Neo Graphic Arts
Materials

13%

2

49%

EuropeAmerica

Europe

23%

21%

23%

Asia
Japan
Asian and Oceanian countriesJapan

DIC China, DIC Asia Pacific and 61 other companies

DIC, DIC Graphics and 38 other companies

Number of employees
Net sales
Operating income
Main business

5,728
1,080 billion yen
95 billion yen

Number of employees

Printing Inks & Supplies
Neo Graphic Arts Materials
Synthetic Resins

Main businessNet sales
Operating income

Oceania

6,335
3,647 billion yen
227 billion yen
Printing Inks & Supplies
Neo Graphic Arts Materials
Synthetic Resins
Chemical Solution Materials

EuropeAmerica

European countries

American countries

Sun Chemical Group and 3 other companies

Sun Chemical Group and 2 other companies

Number of employees
Net sales
Operating income
Main business

4,880
1,809 billion yen
54 billion yen

Number of employees

Printing Inks & Supplies
Neo Graphic Arts Materials

Main businessNet sales
Operating income

South
America
4,629

1,254 billion yen
36 billion yen

Printing Inks & Supplies
Neo Graphic Arts Materials

3Interview with the President

Towards raising each employee's awarenessand building a CSR program well-suited to
global chemical manufacturers− How is DIC dealing with the aftermathof the Great East Japan Earthquake andwhat impact did it have on business?
I would first like to express my heartfelt
sympathies to people affected by the Great
East Japan Earthquake. I am praying for aquick recovery.
While nobody in my family or the DIC
group lost their lives to the quake, damage
was done to our Kashima plant (Ibaraki
Pref.), where we produce organic pigments,base ink, and engineering plastics. As ourprimary concern is providing supply as amaterials manufacturer, we immediately
sent our managing directors to the area andcommitted everything to getting a handle oninventory at DIC and in our supply chain. We
made resuming the production of pigmentsfor LCD color filters—irreplaceable by othercompanies’ products—our highest priority.
Fortunately, production could resumedin April, with everything back to normal in
May. During this time, I kept our customers
continuously informed of our restoration workand endeavored to avoid supply concerns.
In response to the power shortages fearedfor FY 2011, our employees are working hardto save power at our plants and their own
homes, and we are working to ensure that weachieve a 15% drop in power usage comparedto FY 2010.
−The earthquake as a spark for business
continuit y management (BCM) re evaluation
The DIC Group sees BCM as one priority
task for CSR, but most critical is putting
DIC Corporation
Representative Director,
President and CEO

Kazuo Sugie
Joined Dainippon Ink andChemicals, Incorporated in 1970;
Served as General Manager,
Petrochemical Planning andDevelopment Department, andGeneral Manager, Corporate
Strategic Planning Department,
before being appointed President
in April 2009.

practical measures into place that seek toavoid both natural disaster and business risks.
We are strengthening our BCM initiatives by,for example, working with other companies in
the industry to construct a system of mutual
aid for natural disasters,

− Tell us about the first-year progress withroll out business that will see growth in the U.S.

are also placing an emphasis on developingthe “” medium-term plan.

and Europe.

local managers at plants in East Asia and will“

” seeks to achieve our “Colorcontinue to build a framework so that their& Comfort by Chemistry” corporate vision and− Please share with us your thoughts onorganizations can be self-reliant. Fifth is therestore DIC to a financial position that inspires

CSR program advancement

BCM.

confidence.

I believe that CSR is critical not only

DIC enjoys a large number of core

for a company but also for individuals. In− Talk about the announcement of yourtechnologies cultivated across a wide range ofrelationships between an individual andpar ticipation in the United Nations

businesses. By bringing all of these together,

their family or neighbors or schools, there

Global Compact.(UNGC)

our business will definitely expands. As a

are things people should and shouldn't do.

For the DIC Group to continue to growmeans to promote this, we have integrated

People learn to manage both, producing

as a global chemicals manufacturer, we will

our technical departments to reorganize the“win-win relationships”. When looking at aneed to advance our CSR program throughorganization for facilitating interaction between

company as a person's life, I now see whatorganizational operations in line with global

engineers. We also have made progress on ashould and should not be done, something I

standards. Our participation in the UNGC

framework for going beyond business sectors

learned through my own humble participation

will be a big help in learning how to do this.

to allow any kind of equipment to be used

in UNICEF and local volunteer activities.

whenever needed, as all our products are

Through these activities, we hope the GC will

T he DIC G roup’s busine s s cle a r l y

be a source of new perspectives and hints fordemonstrates our commitment to fulfilling

how companies can fulfill their responsibility to

In some business operations, we have

CSR, and our raison d’être as members

society.

made it so that alignment is not along productof society lies in achieving our corporatelines but along market lines, in areas such as

vision through our work. At the same

- Lastly, please talk about DIC’s challenges

automobiles, housing, information devices,time, we believe it is important to maintainand plans for the next fiscal year.

and packaging materials. With packaging

stakeholders' trust in our financial position in

Our CSR Committee added new members

materials, for example, where separate

order to generate modest profits and growin the form of representatives from the Asia/

businesses used to handle individual products

while continuing to provide them with new

Oceania and China regions. Our aim is the

such as ink, film, or adhesives, now we receive

value.

assets of the entire company.

more and more requests from customers

timely sharing of Group policies and projects
and further spread of the CSR program tofor new composite materials made with a− What challenges are receiving particular

the Asia region. We will also be focusing on

combination of DIC products.

attention?

developing self-reliance in each employee.

The first point to mention would be our

The most important goal for the CSR program−Tell us about future product strategies“Responsible Care (environment, safety,

is to develop a culture where employees

for the global market

health, quality)” program. Second are our

independently recognize and act on issues,

While the DIC Group is one of the world's“new technology enhancement” initiatives,

As president, I will be visiting our plants, to joinleading ink manufacturers, the digital age has

where we benefit the customer and society bytown meetings, and I believe that developing

caused focus to shift away from ink and its

developing brand-new and environmentally-

employees who take an active approach torole in “providing information and color” toconscious products. Third are our ongoingissue resolution is essential to the continued

products like LCDs, pigments, and imaging

endeavors aimed at “customer satisfaction.”

growth of a company.

& reprographic materials. Our strategy

Four th are our initiatives aimed atfor corporate growth for the time being is“enhancing human resources management”.

integrating these elements into the businessWe are focusing on creating a corporate

field of Neo Graphic Arts.

environment where our female employees

Since the facilities of the LCD TVs, cell

can fully exercise their abilities. This includes

phones, printers and other products utilizing

continuing our 2.5-year maximum maternity

our products are concentrated in East Asia,

leave program in addition to building a day

our plan is to step up sales in this region andcare facility in the DIC headquarters area. We

5

Use the power of chemistry
1 for a sustainable society fullof comfort and color

SpecialTopic

Through its “Color & Comfort by Chemistry” concept, the DIC Group contributes
to a comfortable lifestyle and a variety of industries while creating a sustainable
society that is full of color and founded on safety and peace of mind.

DIC’s chemical expertise,a pillar for

LCD evolution

Liquid Crystals
Color filter
Glass substrate

From improving manufacturing process(kaizen) to reducing power usage
LCDs produce a color image from the three primary colors
red (R), green (G), and blue (B), accomplished by passing an LEDor other light from the back of the screen onto multiple layers
which include a polarizer, glass substrate, electrode, alignment
layer, color filter, and liquid crystals. DIC developed a highperformance, long-life liquid crystal material in 1973, later using
it in the world's first calculator to feature a liquid crystal display.
We have since developed high-performance materials critical todisplay manufacturing and continue to provide a wide range of
products to the world's leading consumer electronics and liquid
crystal display manufacturers. Particularly in recent years, DIC
has answered demands for high screen luminance, wide viewing
angles, and 3D imagery. Safety is key, but power and resourcesaving is another priority we address by developing technologies
to save more power when using devices. We are also streamlining
display manufacturing stages. One example of this is the attention
we are focusing on anti-scatting adhesives films and waterresistant adhesive films using adhesive and coating techniques(improving safety) as well as retardation control agents hardcoating agents, and leveling agents*1”, and our brightening of color
filters to reduce backlighting amounts (Energy Conservation).
Throughout these efforts, we have been persistent in improving
liquid crystal compounds. In addition to business involving STN(super-twisted nematic)*2 LCD technology—widely used to provide

Polarizer

color to mobile phone screens—we are currently enhancing
business focused on TFT (thin-film transistor) technology for use
in LCD TVs. Fast-response liquid crystals for 3D TVs (for improved
comfort) and other materials related to LCDs are also targets of
DIC development. In the medium term as well, we will continue tocontribute to society by focusing on the development of products
for new markets including e-paper and providing “color andcomfort”.

Voice

Accelerate our business through ourmarketing power

DIC has many core technologies.
Combining these across sectors
w i l l a l l o w u s to e x p a n d i n tocompletely new areas. By applyingt h i s to o u r r e l a t i o n s h i p w i t hcustomers, I am confident that we
can accomplish something beyond
imagination.

Corporate Marketing Dept.
Section Manager

Toshihiro Ebine*1 Leveling agent: a material that enhances smoothness.
*2 STN (Super-Twisted Nematic): One type of liquid cr ystal display. By greatly increasing liquid cr ystal molecules’ degree of twist, light permeability and contrast
at wider viewing angles are improved.

6

DIC develops new “green pigment” in 2010, achieving
outstanding picture brightness and contrast

Next: a new blue pigment, and a new
business domain
In developing a new blue pigment, we used the same method
as for the green pigment and selected candidate substances.
But despite repeated evaluation and revision, we were unable
to achieve our target brightness. Our engineers then departed
from conventional thinking and, in addition to selecting candidate
substances, made improvements using new methods to satisfy
color filter characteristics and put together a goal for a new blue
pigment that will provide 20% more brightness than conventional
products. Our engineers are currently looking to market it by FY
2012.
The development of a new red pigment is also on thehorizon as a new goal at DIC. Yet liquid crystal technology is
not the only domain we are pursuing. On the table at DIC are an
endless number of projects to develop materials, processes, andfunctions that will allow us to utilize our expertise in chemicals
and always continue to develop products. In the fast evolving
field of electronic devices and organic materials alone, we aredeveloping items like highly conductive ink usable with electrodewiring, high-response organic EL displays, e-paper, and e-books.

Voice

The development of new pigments is a
product of DIC's total power

Developing pigments is like developing
pharmaceuticals. Findings made throughpersistent basic research, chemical structure
design technologies, nano-level production
technologies, inspections and recording ofdata to prove a product's safety internationally,
protection of intellectual rights. There can be
no product without all of these elements. This
is why the creation of new green and blue
pigments is truly an achievement enabled by
the concerted efforts of all of DIC.

Color Materials R&D Group Manager
Fine Synthesis Technical Department

Katsunori Shimada

Comment
Using our supply chain for a better corporate constitution
Liquid crystal is the most important material for DIC’s LCD business. When purchasing these, we demonstrate DIC’s
three competitive advantages. The first of these is superior quality. LCD panels, by their nature, require top-notch
precision. Through its Cross Checking Process, DIC liquid crystal products have never had a quality issue. This is why I
feel DIC makes reliable, high-quality products. The second is DIC’s ability to respond quickly. Starting in October, 2010,
when demand for new models spiked, DIC's excellent responsiveness allowed it to increase its production capacity
threefold in three months after the start of sales.. A third advantage is cost competitiveness. Due to the nature of
consumer electronics, cost competitiveness is becoming ever more important.
buyers of DIC's materials in order to build a coordinated supply chain encompassing everything from the development to

SAMSUNG ELECTRONICS Co.,Ltd.
Procurement Team,LCD Business Manager

shipment of finished goods, and strive to make ours one of the leading groups in the industry.

PARK JONG-WON

At Samsung, we plan to focus on enhancing our supply chain management for LCDs. We hope to work with DIC and*1 nanometer: 1 billionth of a meter.

7

Special Topic 1

Particularly worthy of a mention among the marks DIC has left in
the liquid crystal field is the development in 2010 of a green pigment
featuring a new molecular structure and used in color filters. The
technology allows for subdued backlight coupled with high lighttransmission and outstanding brightness and contrast. It makes arevolutionary contribution to making screens thinner and cutting
down on power drawn by the light source, which accounts for mostof the power consumed by an LCD TV.
For the origin of this technological development, we must go
back to when most backlighting was performed by florescent tubes.
“In the near future, LCD displays will get larger and thinner, while
demand for better picture quality and energy saving will increase. We
had to redesign chemical structure, and develop a pigment that will
demonstrate overwhelmingly high-performance”. This was a projectthat would entail creating new chemicals, and one that would truly
test our value as a pigment manufacturer.
Our development staff first targeted green pigments in recognizing
their being well-suited to materials made from phthalocyanine, astrong point for us among RGB colors. They then coordinatedwith the Basic Research Dept. and selected dozens of candidate
substances from a countless number of chemicals. To find the optimal
molecular structure, engineers designed prototypes for various
molecular structures, synthesized substances, and continuously
revised. They then discovered that they could dramatically increasebrightness by using zinc instead of copper for the structure's central
metal. Contrast was also greatly improved by making the pigment
particles smaller. Recently, the number of development staff on the
project has ballooned to accelerate development. From staff who
design and manufacture production lines where the crystallizing ofparticles is controlled by nanometers*1 to staff who make evaluations
and record data to ensure substances are in line with international
standards for chemical substances to staff who file for patents, allrelated departments have come together to create products.
The resulting announcement in July 2010 of the “FASTOGENGreen A310” as a pigment that makes the most of particularly LED
backlight characteristics created big waves in the industry. Not longafter producing the product, DIC had 50% of the global market.

Organic pigments for color filters(RGB 3-primary color system)

Package

A High-performance, Colorful
Supported by a Solid Safety Foundation
Pursuing product quality and better
added value
In the packing materials domain, DIC follows its “Color &Comfort” concept in developing high-performance materials
such as eco-friendly printing inks, pigments, aluminum can paint,
barrier coat agents, labels and adhesives. Likewise, we are also
investing our products with ever more added value as we develop
technologies aimed at providing visually-appealing and tactile color.
In food packaging, we are working to preserve quality to prevent
any loss of safety or taste in our products, decreasing CO2
emissions during delivery by making materials thinner and lighter,
controlling the amount of volatile organic compounds (VOCs)
produced in manufacturing processes, and other efforts as we work
to keep up with greater demand every year for more improvement
and variety in these areas. One major pillar supporting our
products is reliable safety in food sanitation. Even from the productdevelopment stage, DIC is focused on the strict management offood safety based on conformity with industry-wide, regional, andnational safety standards and with the food sanitation law in Japanand elsewhere, including the U.S.'s Food and Drug Administration(FDA), considered the strictest organization of its kind.
DIC is also in pursuit of sustainable, colorful packing materials
based on consideration for the environment throughout a product's
entire lifecycle.

Voice

The ability to develop all major basematerials in-house is a DIC strength

Through DIC's triumvirate of the R&D Steering
Committee, Technical Administrative Division, andManufacturing Department, we can develop andmanufacture raw materials (pigments and synthetic
resins) and make products by freely combining
the necessary base materials. This allows us todevelop products such as UV-resistant ink, barrier
coat agents, and high performance adhesivesthat are first-class in performance, appearance,
environmental friendliness, and cost. This is DIC's
greatest strength and why our packing material
customers see value in us.

Coating & Applied Materials TechnicalDept.Styrenic Resin Technical Group
Group Manager

Tsuyoshi Fukukita

The DIC Group’s Packaging Resources and Solutions

C hemistr y
The DIC Group's Packaging Resources and Solutions

Printing Inks
Organic
Pigments

Synthetic
Resins /Colorants

Color

DIC Color
Guide

Packaging
DesignSustainable
Enrichment

Packing
Materials

Adhesive
Materials

C o m f o r t a b l e Fu n c t i o nWith a two-pronged approach emphasizing “worry-free, comfortable functions” anda “colorful life”, the DIC Group is committed to a sustainable and rich future.

8

Synthetic
ResinsAdd color to even the top lids of cansand open up an attractive new field

the organic solvents used in the laminating process contributed
to the production of VOCs, which are thought to cause air“Color End Hana”, an aluminum can paint
DIC sees the can top, which is always gold color to give it ahigh-class look, as an attractive, untapped product market, andhas made many attempts to give color to can tops. But since cantops come in direct contact with the mouth and the content of the
without a high level of safety.
This led our development team to find a material that could be
used as an inner coating film and that would satisfy FDA sanitation
standards and both DIC and the FDA’s coating film performanceadding heat, and by adding stiffening agents, DIC has succeededin creating an adhesive with no compromise in adhesive
performance, without using a single organic solvent.
This “solvent-less laminating adhesive” has completely
eliminated VOC production from the laminating stage, improving
the work environment.

Reducing CO2 emissions with theworld's first super-thin film
Hyperbranched polystyrene

requirements. By then using technologies to distribute thepigments, we developed materialthat could be used to color

When decorating food trays, colors and designs can be printed on a film andcan tops. We have since turned this into our “Color End Hana”

attached to the trays. Making the films lighter makes the trays lighter and helps

product, which beverage manufacturers throughout Japan now

reduce CO2 emissions during transport, conserving resources. While everyone

use to give a unique presence to their products.

currently believes that the strength and tolerance of current films have hit awall, DIC’s R&D Steering Committee and Technical Administrative Division havecollaborated and broken through this wall by introducing a hyperbranched structure

Blocks 99% of UV rays, while being
highly transparent

different from conventional polystyrene. In addition to succeeding in the practicalapplication of the absolute thinnest film in existence, DIC has also reduced energy
UV–cut ink

consumed in the manufacturing stage and improved production stability when

When exposed to UV rays, products suffer ill effects such as

recycling. We have acquired an international patent for “Hybranch”, the world’s firstdecreased quality and faded colors. But consumers are not at ease

hyperbranched polystyrene, and expect to see it succeed in a wide variety of fields.

until they can see what is inside something. To address this issue,
DIC has used its dispersion technique—one of its key technologies—
to develop a technology for evenly applying a UV-absorbent resin to
the surface of the base material (pigment). With “UV-cut ink”, we have

Voice

Develop products that will allow
continuous growth through better costs

succeeded in developing a technology that will absorb 99% of UV rays

Important in the packing materials business is cost

while remaining so transparent that you can see what is underneath.

competitiveness, not to mention the core components of

By using this ink as a packing material, we minimize photodegradationin products, extend freshness dates, and better preserve quality withcosmetics, pharmaceuticals, and other products.

Cut 100% of VOC occurrencesfrom the laminating stage
Solvent-less laminating adhesive
Our resin film packages allow a variety of foods,
pharmaceuticals, and other products to be laminated and sealed
to the strength and tolerance required. However, it used to be thata product’s performance, namely safety, convenience,
beauty, and eco-friendliness. Water-based inks, forexample, allow fewer solvents to be used, but theytake time to dry. This makes limiting their energy cost achallenge. This is why DIC is focused on the developmentof a product that will improve costs to ensure continued

Liquid Ink & Coatings Div.Tokyo

profitability through systems that turn high solid gravure Liquid Ink Sales Dept.
inks lacking in solvents but able to be printed with, Manager
along with solvents evaporated in a hermetically sealed

Tomonari Inoueenvironment to be returned to liquids and reused.

Comment
Anticipating new business proposals to meet social needs through the total power of DIC
As a company people refer to as a leading entity in the field of food containers, the FP Corporation is an active
maker of products that place special emphasis on safety, peace of mind, and the environment. In working with
DIC, we not only enjoy a stable supply, we improve our bottom line thanks to the outstanding quality of theincreasingly thin, lightweight nature of DIC’s hyperbranched polystyrene-containing products. We expect DIC
will continue to develop ever higher quality polystyrene products, using the full extent of their capabilities increating new business solutions like improving service for film printing and other print-related products.

FP Corporation
Executive Director
General Manager
Purchasing Div.

Yoshitaka Ezaki

9Special Topic 1

can, we knew we could not offer such products to our customers

pollution. By changing resin molecule size and viscosity through1

Topics“Contributing to a colorful society” through business

DIC Color Design, Inc.

Supporting the “Chojuku” breadbrand’s entry into China
DIC Color Design (DCD) performs creative consulting in many fields

Comment
Packaging design is key for China's
increasing focus on safetyincluding food, consumer electronics, housing, and stationery with “color

We first began working with thedesign”.

DCD when they gave us ideas for

When asked by the Shikishima Baking Company for help in expanding
the “Chojuku” brand—enjoying the top position in Japan’s bread market—
into China in 2010, we conducted local market research and analysis,taking business to China, a market
we had never considered. Theirbeing with us when exchanging
opinions with Chinese staf fcreated a brand launch strategy, and offered packaging designs. DCD

allowed us to convey our thoughts

attended presentations given to local partner companies conductedto them. While we did not see eyein Sha ngha i, leve rag e d bothto eye with the Chinese staff about

th e c o n s i d e r a b l e c o n s u l ti n gexperience we have in Chinese

China and the Color(Blue)

Keywords
Nobleness, affluence,
decorative, glamorous

market entry and the full extent
of our knowledge of Chinese
preferences, and acted as a bridgein connecting the Shikishima
Baking Company's hopes for their“Traditional”, deep blue
“Modern”, lighter blue

the value of the packaging's color
or design, DCD’s negotiations

Shikishima Baking Co.,LTD.
Director and Officer
R&D Division

Chikara Nemoto

based on predictions for the Chinese market and future
consumption trends eventually won them over. As China comesto see more value in food safety, there will be many more
opportunities for products from Japanese companies. Thus,

Keywords

designs that prioritize safety and peace of mind will be critical in

Refreshing, modern,sophisticated, high-quality

increasing business. We hope DCD continues to provide design“Chojuku” brand with local partner

solutions that will give consumers a sense of security.

companies' strategies.

2

TopicsBiodiversity preservation

The Central Research Laboratories and
A Kawamura Memorial DIC Museum of Art

Protecting nature in Satoyama(border zone
between mountain foothills and arable flat land)

for nature walks, the area has also seen some 200,000
yearly visitors since the opening of the museum in 1990.

The preservation of biodiversity is a critical issue forthe DIC Group and is the subject of various initiatives.
85 top managers from DIC headquarters, DIC plants andPassing to posterity a space where thebeauty of art and nature is in harmony

group companies attended a lecture given by experts in

The DIC Group views parks

January, 2011.

and forests that preserve rich

While the Central Research Laboratories are currently
using ground water, DIC is now working to install a closed

ecologies to be precious assets
fo r l o c a l c o m m u n i ti e s a n dsociety. Continuing to sharesystem for circulating and reusing water and is working

with many people the joy ofwith a waste processing f irm to ensure wastewater

experiencing that beauty anddoes not leave the area. The mountainous area is homerichness requires meticulous

to 200 species of tree, 500 species of flower, and an

management. We feel passing

abundance of other wildlife including birds and insects.
An area where is loved by local communities and society

10

Voice

these joys on to future
generations are our mission.

Kawamura Memorial DIC Museum of Art
General Affairs Group
Group Leader

Masaaki Iwaki

Achieve a low carbon society
2 and reduce global CO2
emissions

SpecialTopic

From total plant management to understanding
individual energy sources per product

EneSCOPE and VETA for better powersaving

The same amounts of CO2 emissions are produced bydomestic and overseas operations in the DIC Group. In
Japan, we are working to save energy by converting to LNG
from heavy oils, adopting Biomass cogeneration system,and since FY 2009 have been power generation using wind
power. We have reduced overall energy usage outside
Japan, too, with biomass boilers and other solutions in tune
with regional characteristics.
In 2010 we star ted “Energy Conser vation throughproduct-specific process improvement” action based on
moving to the next stage from energy-saving improvements
at shared facilities at the DIC Hokuriku Plant (Ishikawa
Pref.). This was to address the fact that the majority of
manufacturing processes were “non-continuous processes”,
where many different products are made on the same line,
as opposed to continuous processes where a few products
such as refined oil are mass-produced. To speed upenergy-saving initiatives, then, we needed to identify energy
challenges for a variety of products and improve processes
in addition to having shared facilities for supplying energy.

In 2009, the DIC Hokuriku Plant implemented centralized
monitoring to understand in real time (in graphs) how much of

Voice

Reducing CO2 emissions is asocial imperative for global firms

The strengthening of international CO 2
emissions regulations, rising prices of energy
resources, and calls for energy conservationin Japan due to the suspension of multiple
nuclear plants are all contributing to a harsher
energy environment. To address this, we are
placing hope on our ongoing “product-specificprocess improvement”, which will be the firststep in CO 2 emissions control via the LCA
method and a means to reduce emissions by

Production Control Department
Senior Manager

Susumu Haibara

individual energy source and overall. We also
see an obligation to society in sharing these
efforts with DIC plans and Group companies.

Manufacturing stage improvement processes to conserve energy

EneSCOPE

Visualize energy investments
at production sites
Production
site
A
Production
site
B

Measuring
instruments
SteamElectricity

Production
site
C
Production
site
D

VETA

Raw material
fusionLights, elevators and otherequipment fundamental
to production

Preparation

An overall 14% reduction when broken down by energy source●Raw material fusion stage power saving ●Cleaning stage minimization

Reaction
Water supply
equipment

Raw material fusing equipment
Agitator
Heating &cooling

Transfer
Adjustment
Cooling

Filling

Removing and Filling Equipment

Raw material tank

Production site A
DIC Hokuriku Plant

Measures & Impact

Visualize energy consumption
at each stage

Manufacturing Stages

The raw material fusion stage
accounts for almost 50% of
power consumption!

Raw material fusion stage
70.6ℓ/t28 %↓ Raw material fusion stage
50.5ℓ/t
Cleaning stage27.6ℓ/t 8 %↓ Cleaning stage25.3ℓ/t
Reaction stage / Other
54.1ℓ/tReaction stage / Other
54.6ℓ/t

4 th quarter, 2009

4 th quarter, 201011

Special Topic 2

While Energy Conservation with its products, the DIC Group also works to cut CO2 emissions frommanufacturing processes and from all elements of the life cycle at its plants around the world.

the electricity, steam, nitrogen, and other energy generated in thePower Dept. was being used on production floors. The facility
also established “EneSCOPE” to verify loss and waste, for large
total contribution to energy-saving. Our next effort was developing
and setting up “VETA*1” to visualize energy consumption by
manufacturing stage. Employing traditional logic to the problem ofpower conservation, we predicted through theoretical heat budget
calculations the amount of energy we could save by upgrading
equipment, shortening operating times, and establishing optimal
operating conditions. But because in creating products changes
must be made to various operating conditions at many stages,
and because we are sharing equipment across multiple reaction
series, it was difficult to correctly ascertain the stages for eachproduct where the most power was being consumed.
*1 VETA: A DIC original system meaning Visualization of Energy based on
Theory and Actual usage.

Taking the first step to achieve“visualization”
It was then that the Engineering Division (Polymer EG)
developed a system for “visualizing” energy usage per
product and manufacturing stage based on a urethane
acrylic polymer line at a new resins plant that had manymeasuring instruments. They enabled the collection andmonitoring of measurement data on computers used incontrol. The effects of “visualization” were seen immediately.
The results overturned common knowledge dictating that themost energy is consumed at the reaction stage and showedthat the raw material fusion stage used the most energy,
accounting for almost 50% of total consumption.
Knowing this, we were able to cut 30% of energy
usage at the raw material fusion stage by strictly managing
temperature, time, and fans in the thermal container where
raw materials are fused. A VETA analysis also showed usthat almost 20% of power was being used at the equipment
cleaning stage when switching products. This prompted us
to optimize production schedules and put the same products

Voice

What issues can be identified
from the data is key

One more way to “visualize”:
CFD(Computational Fluid Dynamics)
A nothe r e le m e nt prov iding bac kgrou nd suppor t forvisualization on production sites is CFD, a CAE*2 tool being usedat DIC's Central Research Laboratories. With CFD, computer
simulations produce images or numbers from distributions of orchanges in temperatures, speeds, or pressure. It then creates animage of the current and future state of manufacturing equipmentthat anyone can understand and share.
With heater boxes, for example (also a target for VETA
mentioned above), a fan is run to evenly distribute heat froma heater. Depending on the force and direction of the windhitting the drum, however, different amounts of heat reacheach one. While it would be difficult to know this using only
measuring instruments, CFD makes it easy to detect problem
areas through imaging
and allows for finding the
optimal fan position, winddirection, and wind power.
In one example, raw material fusion time was shortened by 66% and energy
consumption dramaticallydecreased by only changing the current fan position
inside the heater boxes
and adjusting wind direction and power.

Voice

Existing equipment is a gold
mine for ways to save energy

Even production sites confident they

things where one piece of equipment is shared

are saving as much energy as possible

among multiple boilers, discovering areas

will find new areas for improvement

where energy can be saved from measured

through CFD. We have worked on 50

data and theoretical estimations is no easy

projects a year where CFD were used.

task. Going forward, I believe there need to be

With such a variety of equipment andimprovements to VETA so many more people

manufacturing processes, it is criticalthey lack specialized knowledge. However, I
believe the expertise gained from using VETA
will be a major strength for the DIC Group.

DIC Hokuriku Plant
Engineering Division
Polymer Engineering Group

Dai Yamamoto

CFD analysis for a heaterbox( Velocity distribution of drum
surface)*2 CAE: Computer Aided Engineering

Because our manufacturing stages are complex

can use it as a tool for improvement, even if

12

into continuous reactions to minimize cleaning stage powerusage. Consequently, we determined we would be able torealize a 10% reduction of CO2 emissions produced during
urethane resin synthesis. The Engineering Division (PolymerEG) is now working to ensure that VETA is used to achieve
similar results with other products and at other plants.

for those who know the production site
well to first get the idea of analyzinga certain stage and then finding theopportunity to do it.

Central Research Laboratories
Platform Process EngineeringGroup Senior Manager

Masayuki Nakamura

Sun Chemical Group Initiatives
SunCare Ⓡ

Change in energy usage-13.1%(1,000 MWh)
2,000

Special Topic 2

The Sun Chemical Group considers fulfilling its corporatesocial responsibility a core of its business and works to secure
the safety and health of the environment and its employees
as it promotes its own “Suncare ® ” management systemthroughout the entire group to meet the demands of society.
Since reducing CO2 emissions—which helps prevent global
warming—is linked to reducing energy usage, we are focusedon improving employee awareness of energy conservation,
upgrading and improving equipment and machinery, andreviewing processes. We measured a 13.1% decrease inpower used in FY 2010 compared to FY 2005.

One factor behind this was success in reducing theamount of electricity we purchase by 33%, giving us
278,836 tons in CO2 emissions for the entire Sun ChemicalGroup in FY 2010. We also began a project to reduce
electricity usage by 2% and natural gas usage by 11% at
our main 16 plants for the two years from 2010 to 2011.

on 2005

983

1,000

854
297
557

442
541

0

2005

Left bar: purchased electricity

2010(Year)

Right bar: heat energy*1*1 : Mainly natural gas used as fuel for creating steam inside plants

Carbon Footprint Project

Voice

Aiming to understand greenhouse gas emission levels,

Energy Reduction Project
Muskegon Plant (Michigan State, U.S.A.)Sun Chemical calculated CO 2 emissions for its major

At our U.S. plant in Muskegon, where

products at the production, shipping, and sales stages. In

much of our organic pigments areproduced, methane gas collected

the “2010 Carbon Footprint Report” issued in November,from municipal landfills has offset CO2

2010, we reported on the following points.

emissions from natural gas used forprimary boilers and now provides 41%(1) Quantification of greenhouse gas emissions at the
manufacturing and shipping stages of a product's life cycle.

of the plant’s fuel needs.

(2) Carbon footprint quantification for major products.

preventing air pollution have eliminatedI m p rove m e n ts to e q u i p m e n t fo r

the need for circulating pumps to expel exhaust, and streamlined(3) Identified areas where greenhouse gas emissions can be
reduced based on information gained.

3

Topics“Energy Team” members

energy use has cut power usage by about 225 MWh a year.

Participation in the UNGC

Taking another step forward asa global chemical manufacturer

Contributing to sustainable social and global development

observe internationally accepted norms for human rights, labor, and theenvironment in the course of conducting business.

In order to better fulfill its social responsibilities in the international

Achieving the “DIC WAY” in accordance with the 10 Principles

community, the DIC Group pledged its support and was registered as aparticipating company in December 2010 for the 10 Principles and Millennium
Development Goals (MDGs) being advanced by the United Nations.
The UNGC is a voluntary action plan proposed by former UN Secretary

With the DIC Group's “The DIC WAY Code of Business Conduct”(

P18) in conformance with the 10 Principles of the UNGC, we

General Kofi Annan in 1999, and is run by its member companies. More thanwill use our participation in this initiative to advance business operations

8,000 companies and organizations have pledged their support based on theeven more attentive to the global environment and human rights as we

idea that worldwide sustainable development can be achieved if corporations

strive to achieve sustainable development around the world.

13

The DIC Group's CSR Activities*The “Evaluation” column below indicates CSR-committee-verified self-evaluations of current

CSR Theme /Objective

Objective / Task

Raise awarenessof compliance

FY 2010 Goals

Continue and expand
compliance training(prepare Q&As, conduct
e-learning)

FY 2010 Results

Prepared English andChinese e-learningmaterials from the partiallyrevised Japanese version

Evaluation Reference*

page

FY 2011 Goals

P18

Create and distribute adigest of the DIC WAY to
be used as aneasy-to-understand tool

P18

Prepare e-learning course
for the Subcontract Act andpromote Subcontract Act
observanceCompliance / Fairand transparent
corporate activities

Conduct businessfairlyInformation security/ Make information
secureEstablish a global
information
security framework

Establish a global
standardization
Reliability offinancialreporting / Remaina trustworthy
corporation

Institutequalitative change
to comprehensive
risk management
systems-Properly address Antitrust
Act regulations-Create framework foractions to address“antisocial forces”-Establish a guideline for
confidential information
management and shareregulations information
through internal training-Completed Q&A list (30 inall) concerning the Antitrust
Act based on questions
received hitherto-Completed a framework toaddress antisocial forces atplants-Began review of a guideline
necessitated by regulations revisions,but did not complete in FY 2010

-Bolster the Group's
internal IT governance-Conducted a current situation survey
concerning information security atoverseas group companies;
confirmed tasks and problem areas-Promote standardizationand streamlining ofoperations-Consolidated plant and branchaccounting figures and made itso that figures were collectedbased on function throughout
the company-Promote documenting of
the guideline-Promoted work standardization
and reorganized regulations,guidelines, and manuals-Standardize andstreamline internal
auditing methods-Conducted experimental theme
audits (transfer pricing audits)-Use J-SOX initiatives toextend the range ofmonitoring functions for
all risk management

Create business continuity
plans (BCPs) for all
business operations-Conducted governance audits forregional administrative companies

P19-Draft rules and a framework forcreating an information security
framework for group companies-Prepare for integration of core corporate systems

P20-Create a global accounting policy inanticipation of measures for IFRS andincorporation into next term’s core corporate
system-Plan and promote implementation ofcountry-level shared services-Expand scope of theme
audits (compliance)

P20-Revised internal audit manuals

Achieved initial goals.
Requested business
operations use PDCA

-Create confidential information
management guidelines andestablish an internal management
framework-Actions to improve
quality of internal audits(regional audit team peer
reviews*1, auditor training)-Plan BCM and supply
chain coordination

P21-Formulate frameworks foreach kind of disaster-Roll out BCM at affiliates

Business Continuity
Management (BCM)/ Limit disaster risk

Ensure DIC Groupbusiness continuity

Establish and continuously
review a BCM outline

Create a crisis
management frameworkfor disaster situations*1 Peer review: Mutual quality audits performed between teams

14

An outline is coming
together; work continues
on and review throughtraining and BCP
committees at business
operations

P21

Continue to identify andimprove problem areas
through review meeting after
the Great East Japan
Earthquake and future
training

P21

Conduct media-based training
in preparation of measures forhandling crises, and continue
the training-Manager training through crisis
management seminars at the DIC
Management School-Conducted division training in
headquarters emergency measures toprepare planning for disasters; haveidentified and begun immediately
addressing problem areas

CSR Theme /Objective

Objective / Task

FY 2010 Goals

FY 2010 Results

Create base forfair purchasing
practices

Use DIC Grouppurchasing management
regulations as a model
to follow up on thecreation of purchasing
management regulations
for domestic affiliates

Provided a purchasing
management regulation draft
to domestic DIC groupcompanies and followed up
on the creation of purchasing
management regulations
through briefings, etc.

Promote CSR
procurement

Promote distribution to,and collection from,domestic partners of the
DIC Group Supply-chain
CSR Deployment
Guidebook; begin
actions aimed atoverseas partners

Investigate andreconsider whether
performance and valueof DIC products meetcustomer expectations

Supply chain
management /CSR procurement
to be expanded
globally

Business model
focused on
customersatisfaction/ Establishing“solutions
businesses”

New technology
development andvalue creation /Proposing solutions
that leverage coretechnologies

Human resourcesmanagement /Striving to improve
job satisfaction

Promote solutions
businesses
adapted tochanges in social
imperatives

Improve communication
with customers throughcore technologies andthe introduction of
products for highdemand industries

Evaluation

Reference
page

FY 2011 Goals

P22

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

Gave evaluation results to the
170 companies that completed
questionnaires. Created English
and Chinese versions of theguidebook for overseas business
partners and distributed them toor collected them from some ofthose partners.

P22

Distribute the DIC Group
Supply-chain CSR
Promotion Guidebook to
200 domestic and overseas
business partners; collectquestionnaires

Set up meetings to clarify
the domains and products
DIC technologicaldevelopment would target,and selected themes for
specific solutions
businesses.

P23-Created and distributed productguidebooks for eachhigh-demand industry.
-Held technology exchanges for
major electronics manufacturers
and actively promoted DIC's
core technologies andrepresentative products

Plan and establish as
specific business models
selected solutions forbusiness themes

P23

Take a comprehensive andmultifaceted approach topromoting DIC's coretechnologies and representative
products to important customers
in major high-demand industries;
research customers’ needs andstrengthen relationships

P24

Devise a framework forconsolidating DIC Grouptechnological resources

Enhance ability
to develop new
products andtechnologies tohelp achieve asustainable
society

Reform the organization
to consolidate
technological resources
companywide

Reorganized the Technology
Division based on coretechnologies; built atechnology information
sharing system on theInternet; ramped up
information sharing andhuman resources exchange.

Promotedevelopment ofenvironmentallyconscious
products andservices

Improve communication
with customers throughcore technologies andthe introduction of
products for highdemand industries

Business volume ofenvironmentally-consciou
s products as a percent of
all our products: 50%

Train and appoint
national staff toadvance global
management

Identify highly-capable
human resources andappoint staff, regardlessof nationality(1) Created HR systems for two companies inIndonesia and two companies in Taiwan(2) Established policy for identifying andcreating a database of highly-capablestaff in accounting and finance operationsin the Asia area
(3) Decided to implement HR system at Siam
Chemical in Thailand

P38(1) Help ensure that the Indonesian
HR system takes hold(2) Conduct analyses of accounting
and finance operation staff roles
as well as performance reviews(3) Integrate HR systems at our
three companies in Thailand

Support staff
diversity anddiversity inworking styles
through working
women promotion
activities

Advance initiatives
aimed at expandingroles for women in theworkplaceHeld get-togethers forfemale sales staff;
continued assigning new
female graduates (2 people)
to manufacturing sites

P38

Continue actions aimed at
expanding roles for
women in the workplace

Support staff
diversity anddiversity in working
styles by promoting
employment ofhandicapped
persons

Promote hiring aimed atachieving employment
quota for handicapped
persons of 1.8%

Achieved a 2.0%
employment rate,
exceeding the 1.8% quota(end of FY 2010)

P39

Maintain and improve
yearly employment rates
for handicapped persons
and continue building
comfortable work
environments-Promote research themes
related to the environment

P25-Early launch of newenvironmentally-consciou
s products into markets[“Evaluation” Standards]◎…Extensive progress made (100% achieved) ○…Considerable progress made (60% or more achieved)△…Some progress, but insufficient (30-60% achieved) ×…No progress made (less than 30% achieved)15

RC Targets and Achievements of Major RC Activities

Items

Environmental
conservation
Reduction ofenvironmental impact
caused bybusiness activities

Process Safety andfire prevention/
Occupational safety
and healthViewpoints and tasks of the approaches

Page to refer toPrevention of global warming andpromotion of energy saving

P31

Reduce energy use per energy source to 94%(116.2 l/t) of 1990 levels. (-2% on last year)

Reduction of industrial waste (zero emissions)
Reduction of volume of industrial waste
disposed of as landfill
Reduction of industrial waste discharged from production plants

P30

Reduce volume of industrial waste sent to landfills
DIC: 69 tons (-25% on last year) DIC Group (domestic): 209t (-10% on last year)
Volume of waste produced by production plants
DIC: 17,345 tons DIC Group (domestic): 65,267 tons

Promotion of recycling

P30

Promote recycling at DIC group companies(domestic) and improve resource recycling

Emission control of chemical substances
PRTR 1st-designated chemicals (462)+ Substances targeted for study by JCIA*1. (105)+1 substance group

P28

DIC: 268 tons (-24% on last year)
DIC Group (domestic): 623 tons (-6% on last year)

Reduction of VOC released into the
air

P29

DIC: 255 tons (-25% on last year)
DIC Group (domestic): 610 tons (-6% on last year)

Risk assessment

P35

Provide guidance on risk assessments connectedwith equipment investment.
Be timely in providing information.

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

P35

Conduct accident analyses and be timely in providing
information.
Hold seminars to discuss safety measures forpreventing accident reoccurrence.

Reduction of GHG emissions
caused by transportation

P31

To promote energy saving measures related to
freight transportation to ensure an annual reductionof 1% in terms of the energy consumption per unittransportation

Management of transportation
safety of chemicals

P35

Prepare yellow cards and have general freightvehicles including container trucks, lorries, andvehicles carrying mixed freight carry them.

Promotion of green procurement

P36

Have incoming raw material information collected
and managed by CIRIUS in accordance with the
DIC Group's Green Procurement Guidelines.

Measures to cope with GHS(measures for the requirement todisclose information on chemicals
contained in products)

P36

To prepare MSDS for all of our chemical products,
and distribute them through our website.

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

P36

Assure 2010 registration concerning REACH regulations.
Support filing CLP*2 registrations with the EU. Create thenecessary environment in Taiwan for ensuring the registrationof existing chemicals and for continuing business.

Report on RC activities and site
reports of each plant

P44

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

P37

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

P37

Confirm and organize QMS tasks at business
operations and offices, support improvement
activities, and improve quality management
activities.

Promotion of the environmental
and safety activities at affiliatedcompanies in the Asian andOceanian regions

P35

Support environmental safety activities at overseas
affiliates (Train staff and create an environment andsafety information network)

Environmental/safety data

P27

Draft a medium-term plan for reducing the DIC
Group’s (overseas affiliates) environmental burden(waste and GHG)

Logistics/ Safety

Chemicals/
Product safety

Communications
with society

Quality management(customer satisfaction)

Support forenvironmental safety
management activities
for overseas affiliates

Targets for FY 2010

Securing of quality*1 Japan Chemical Industry Association: JCIA joins ICCA as one of the major industry organization and seeks to the healthy development of the chemical industry withthe other organizations in the world.
*2 CLP (Classification , Labeling and Packaging) is a rule regarding classification, labeling and packaging of chemical substances called CLP-Regulation and mixtures16

Achievements in FY 2010

Evaluation

Targets for FY 2011

DIC (non-consolidated) energy usage by energy source was102.1% that in 1990 (129.0 l/t), +8.5% on last year.

★

Reduce power usage by individual energy source by
1% on last year

Reduction in volume of industrial waste sent to landfills
DIC: 90 tons (+1% on last year) DIC Group (domestic): 207 tons (-11% on last year) = target achieved
Volume of waste produced by production plants
DIC: 16,609 tons DIC Group (domestic): 64,705 tons = target achieved★★

Due to zero emissions activities,
Industrial waste sent to landfills was reduced by:
DIC: 85 tons (-5% on last year) DIC Group (domestic): 151 tons (-27% on last year)
Waste produced by production plants was reduced by:
DIC: 16,219 tons (-2% on last year) DIC Group (domestic): 62,591 tons (-3% on last year)

Resource recycling rate
DIC: 78.0% (+1.5% on last year)
DIC Group (domestic): 89.3% (+1.3% on last year)★★★

Continue domestic DIC Group’s recycling efforts andimprove rate of resource reuse.

DIC: 320 tons (+1% on last year)
DIC Group (domestic): 989 tons (+50% on last year)★

DIC: 292 tons (-9% on last year)
DIC Group (domestic): 799 tons (-19% on last year)

DIC: 309 tons (+1% on last year)
DIC Group (domestic): 977 tons (+51% on last year)★

DIC: 282 tons (-9% on last year)
DIC Group (domestic): 789 tons (-19% on last year)

Conducted risk assessments for DIC offices and affiliates.
Visited plants where accidents occurred, devised measures, andconfirmed how they were being carried out.

★★★

Provide guidance on risk assessments in connection
with equipment investment.
Conduct accident analyses and provide information ina timely manner.

Conducted disaster case study workshops and working groups
for the nurturing of a safe corporate culture.

★★★

Continue working groups for the nurturing of a safe
corporate culture and organize this fiscal year's
proposals. Hold disaster case study workgroups andshare information.

Exceeded our goal of a 1% yearly reduction since the baseyear of 2006 (4% reduction in 4 years) with a 14% reduction.

★★★

Promote modal shift and reduce energy consumed
during transport by individual energy source by 1%.

Yellow cards are now carried in general freight vehicles
including container trucks, lorries, and vehicles with mixed
freight.

★★★

To further promote the same measures

Examined and entered into CIRIUS information on newmaterials.

★★★

Continue to promote centralized management ofincoming raw material information in CIRIUS inaccordance with the DIC Group Green Procurement
Guidelines.

MSDSs were created for all chemical products and madeavailable on the web.

★★★

To continue preparing MSDS for all the chemical
products and delivering them through the website

Completed 2010 registrations for REACH regulations.
Provided comprehensive support for CLP filing for affiliates inthe EU.
Completed registration of existing chemicals in Taiwan on schedule.

★★★

Conduct registrations based on China's amended
Measures on Environmental Administration of New
Chemical Substances. Conduct registrations in accordancewith Taiwan's revised Labor Safety and Health Act.

Publicized RC activities in the CSR report and on DIC's
website, created site reports at each manufacturing site, andprovided this information to plant visitors.

★★★

To further promote the same measures★★

Established “quality” as referring to “productquality” as well as “work quality”, and use QMS
such as ISO9001 as tools to improve customer
satisfaction.

★★

Identif y and organize QMS issues at business
operations and plants, suppor t improvement
activities, and enhance quality management
activities.

Held meetings with safety personnel in the Chugoku region in
February, 2011. Conducted training sessions and company
case study presentations to promote safe life activities.

★★★

Hold safety personnel meetings in the Asia/Oceania
region, Conduct training in basic safety procedures,and support resolution of problem areas atcompanies.

Added inspections, including intake and waste water inspections.
Requested reports on FY 2011 targets and predicted values, andheightened awareness of the importance of managing
environmental burden and conducting regular waste reduction.

★★

Confirm state of management at multiple
companies in the DIC Group (overseas affiliates).
Clarify management targets. Confirm and support
resolution of problem areas.

Confirmation that each factory and business operation has
surely implemented a QMS activity is done and Production,
Sales, Technical and Quality Assurance departments havecollaborated each other. PC Operation have check that the
improvement of customer satisfaction and implemented the
support for effectiveness.

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

17Compliance

Towards Fair and Transparent Corporate Activities
Through persistent adherence to The “DIC WAY Code of Business Conduct”, the unified set of guidelines to befollowed by the DIC Group and its employees and the cornerstones of compliance policy, we strive to achieve
continuous growth of fair and transparent business.
WEB

Promoting Compliance*1

Creating E-Learning Courses
for Overseas Companies

In addition to establishing the DIC WAY(fundamental business principles) on theoccasion of DIC’s 100th anniversary, the
DIC Group also established the DIC WAY
Code of Business Conduct as a guide forGroup employees to fulfilling their social
responsibilities as corporate citizens.
DIC WAY and Code of
These guidelines ask employees to Business Conduct
observe national laws and internationalrules while following social norms in order to provide the valuethat our stakeholders*2—including customers, communities,
and society—require and expect, and achieve sustainablebusiness growth for the DIC Group.
Together with a core group comprised of Sun Chemical
Corporation (Europe and U.S.A.), DIC (China) Co., Ltd. (China),
and DIC Asia Pacific Pte Ltd. (Asia/Oceania), DIC Corporation(Japan) is put ting together a framework to promotecompliance at DIC Group companies around the world.
We are also working to ensure fair trade practices throughefforts including conformance with compliance related laws.

The DIC WAY Code of BusinessConduct Self Checks and Results
All companies worldwide in the DIC Group conduct
self checks concerning the DIC WAY Code of BusinessConduct observance to confirm that the DIC WAY is
being instilled in the DIC Group.
Through these ef for ts, high self check scoresconfirm that business conducted at these companies isbeing steadily carried out with a respect for compliance.
Corporate Governance Structure Annual Meeting of Stockholders
Nomination Committee

Board of Directors

Audit

President

Independent
Audit

Remuneration Committee

CSR Committee
Internal Control Dept.

Board of Auditors
Independent Auditors

Executive Committee
Business Operations, Administrative Department, Sales Branches, factories

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

In addition to holding seminars for DIC Group companies aroundthe world to explain and provide a chance to better understand the
DIC WAY and Code of Business Conduct in Japan, we are working todeepen understanding through e-learning courses We have created
English and Chinese versions of the e-learning course with necessary
localization changes. We will deploy them shortly to provide
additional tools for the DIC Group companies and the employees tobetter understand the DIC Way Code of Business Conduct.

Basic Corporate Governance
Philosophy
The DIC Group makes efforts for the improvement of corporate
governance to promote a sounder and more efficient management for
the achievement of sustainable corporate growth and development.
In addition to appointing two outside attorneys as DIC’s outside
corporate auditors, DIC also appoints two outside directors to further
strengthen corporate governance.

Voice
Promote CSR management through self
checksAs a member of the DIC Group, DIC Graphics Chia Lung Corp.
places a focus on sustainable development of business that is fair
and transparent. We take an active approach to self checks toensure the DIC WAY Code of Business Conduct are being instilled
and put into practice.
After accurately assessing Company’s current situation andestablishing a road map for priority initiatives, we will use the PDCA
management cycle to plan, do, and check (evaluate) businessconduct, act to make improvements based on evaluation results,
and work together to establish and promote CSR management.
DIC Graphics Chia Lung Corp..
General Manager

Hsing-Chung Lue

Group Companies

Internal Audit*1 Compliance: Going beyond simple “law observance” to address and conform with social norms requirements and expectation.
*2 Stakeholders: Customers/markets, business partners, communities and society, shareholders/investors, and any other individuals or groups connected with our corporate
activities.

18

Information Security

Making information Secure
In response to the increasing trend of digitization and networking of information, we established the Basic
Policy on Information Security in 2006 mandating the observance of related laws and internal regulations andare working to make information secure through appropriate information management.

Information Management Guideline
Propagation and Development

Initiatives Aimed at Enhancing
Information Security
To enhance security enhancement, we have had
guidelines for the management and usage of devices
such as computers and ser vers, required strict
observance of internal rules that include prohibiting
the handling of work-related information on homecomputers, and conducted employee training in
information security at new employee training andmanager promotion training. To further improve security,
we are also building a company-wide integrated ID
authentication system*1, to be completed in FY 2011.

Our Global Initiatives
FY 2010 saw us take the first step in establishingan information security framework for the entire DIC
Group by conducting a study of current IT governanceand information security frameworks at overseas groupcompanies. The study allowed us to gather information
about current problems on information securit yframework at, and requests for headquarters from,

DIC Group Information Security
Management System Chart

Board of Directors
取締役会
PresidentInternal Audit Team
Audit

Division

Corporate
SocialResponsibility
Committee

Chief Information Management Officer(Information Security Sub-Committee Chairman)
Information Security Sub-Committee

Division

Division

Division

Information Systems Dept., Intellectual
Property Dept., Legal Dept., General Affairs
and HR Dept., Technical Planning Dept.,
Production Management Dept.
Administrative Dept.

Dept.Responsible
for Management

Chief Information Manager (Business Operation President, Officer in charge in the Administrative Dept.)
Designation

Advice and instructions on
management methods, etc.

Information Manager (Division Presidents, Technical Dept. General Manager, etc.)*1 Integrated ID authentication system: A system that manages log-in IDs for various internal servers in a integrated fashion by matching these IDs with a personnel
database

19

Information Security

We had planned to draft a specific information
management guideline during FY 2010 based on DIC's
Confidential Information Management Regulations,established in FY 2009. We instead conducted a reviewof these regulations in order to account for various
business challenges discovered during the guideline
drafting process. DIC will thus prepare an information
management guideline in FY 2011 based on the revised
regulations and share them with all employees by
distributing Q&As and through internal briefings.

Compliancethe group companies. FY 2011 will see us providing
guidance and advice to companies lacking information
securit y frameworks in place to enhance thosebusinesses while building rules and frameworks for theentire Group.
DIC also has plans to develop security measures at
the global level in parallel with the implementation of a
new enterprise system, planned after 2012.

Reliability of Financial Reporting

Striving to Be a Trustworthy and Dependable Organization
DIC has built and currently manages internal control systems to ensure reliability in financial reporting at all
domestic and overseas group locations. We will continue to improve these systems in an effort to remain atrustworthy and dependable organization.

Past Initiatives and Future
Direction
While working on the improvement of internal regulations
and documentation of operating procedures, the DIC Group
has also monitored the design and operational status of internal controls from a standpoint independent of the businessactivities, and by constantly designing, assessing, and improving its efforts, has devised internal control systems.
We are also promoting the consolidation and standardization of our business operation through a shared service centerin order to balance the maintenance and securing of a reasonable level of internal controls and the operational efficiency.
The establishment of systematic internal controls in the DIC
Group was prompted by Companies Act that became effective
in 2006 and by the implementation of J-SOX*1 in 2008. While
we at first made effort on establishing the controls to meet therequirement of the Act, adequate level of internal controls are
now in place, allowing us to further improve internal controls
by promoting unification and standardization of business operation, better IT control, and other continuous improvement
efforts.

Promoting Global Activities
In the course of expanding its business globally, it isessential for the DIC Group to design and verify internal
controls both at domestic and overseas locations. We
have therefore pushed to set up internal controls in
the Japan, U.S., Europe, China, and Southeast Asia/
Oceania regions while sharing information and ideas
among them. For the next stage, we will be integrating
ERP systems as we plan how to build globallybased internal controls. Making IFRS (international
financial repor ting standards)* 2 – expected to be
implemented soon—the driving force behind global
work standardization and streamlining, we will create
our global accounting policy during FY 2011 and aim to
make this a template into which we will integrate IFRS.

Enhancing Internal Audits
After J-SOX was implemented, internal audits functioned as an independent monitoring tool for verifying internal controls to ensure reliability of financial reporting. Now,
audits are done to maintain and improve internal controls ina broad sense, and we are expanding the scope of audits
to facilitate effective and efficient achievement of corporate
targets. At the same time, we are taking a risk-based approach, standardizing audit procedures, and expanding theuse of self-assessment to streamline audits.

Voice
Efforts to establish reliability of financial
reporting in the Asia/Oceania region
Since 2005, the entities in the Asia Pacific Region
have evolved continuously with the Regional Headquarters working with DIC Headquarters evaluating business risks while ensuring reliable financial
reporting. The journey started with the introductionof the standardized accounting policies, the document flow charts and rules of authorization all ofthese forming the basic internal control structurethat we all come to be familiar. I have seen over theyear a greater awareness being demonstrated byeveryone on the need for good and strong internal
control procedures. The last 5 years saw the Group
introducing J-SOX controls and going forward it
would be IFRS. Even Internal Audit team will seechanges in our methodology of internal audit moving towards a more IT based approach. Overall, I
am glad to see the improvements made in the control environment, and high degree of financial reporting standard practiced over the Region. This isa success story and could only be achieved when
everyone works together as a team and sharing acommon vision.
DIC Asia Pacific Region

Bhaskar Kumar Basu

Advisor, Regional Internal Audit（former Regional Internal Audit Director）*1 J-SOX: A term used to refer to certain provisions of the Japanese Financial Instruments and Exchange Law that were adopted to prevent accounting fraud andare modeled after the U.S. Sarbanes-Oxley Act.
*2 IFRS (International Financial Repor ting Standards): Refers to the accounting standards set by the International Accounting Standards Board (IASB).

20

Business Continuity Management (BCM)

Seeking to Reduce Disaster Risk
The year 2011 saw a continuation of DIC's efforts to practice BCM to prepare for various risks due to largescale natural disasters, plant accidents, pandemics and other events capable of disrupting business. We also
practiced crisis management alongside efforts to improve our corporate reputation.
WEB

Handling the Great East Japan
Earthquake

Having had BCM in place, one job of DIC’s divisions
will now be to re-evaluate if BCM functioned properly
during the Great East Japan Earthquake, and thenidentify and resolve problem areas. Damage causedby the earthquake at raw material manufacturers madematerials procurement difficult, and made very clear
the importance of linking BCM to the supply chain. To
address this, our business operations and Purchasing
and Logistics Div. will be discussing how to make BCM
more functional through efforts that include searchingfor additional major raw materials suppliers. In order toprepare for a variety of potential disasters (large-scale
natural disasters, plant accidents, pandemics*1, etc.),
DIC will also be performing regular coordinated training
between our main Organizations of Crisis Management
Headquar ters for each kind of disaster. By also
practicing the PDCA, we will clarify areas requiring
review and improvement as we work to create a solid
BCM framework.

Crisis Management Initiatives

Stepping Up Group Initiatives
DIC held a BCP briefing this year for major domestic
affiliates as a specific measure towards the BCM that
DIC has declared it will conduct as the DIC Group.
While many domestic affiliates have already made such
briefings part of BCM for business operations, DIC
is providing support to affiliates who have branched
off and now run their own businesses. We will also
be providing the same support to overseas affiliates.

Voice
Re-recognizing the Importance of Reviewing Crisis
Management Strategies and Conducting Disaster Training
The Great East Japan Earthquake in March, 2011 madeclear the difficulty of making levelheaded decisions
during disasters and illuminated BCM challenges. With
the shaking threatening to bring the HQ building down
and all the subsequent aftershocks, the need for safety
confirmation system revision was brought into bold relief.
We began getting information as soon as the shaking
stopped, but we had no way of ascertaining the damage
done. Later witnessing the extent of the damage, I realized
the importance of reviewing our traditional philosophy
towards how we would manage if a large earthquake wereto occur in the city
General Affairs and Human
Resources Dept.

Takayuki Hariu

Visiting lecturers spoke this year about crisis
management at our DIC Management School, which*1 Pandemic: geographically widespread, sometimes on a global scale (infectious diseases, etc.). May also refer to such infectious diseases.

21

Business Continuity Management (BCM)

BCM at the Division Levelis attended by top executives in the DIC Group.
Topics discussed were basic themes such as “whata model company is in the eyes of the mass media”
and “how corporations are viewed by the mass media
when scandals occur.” These lectures also looked at
the importance of improving corporate reputation byconsistently (not just when crises occur) disclosing
information to the mass media and stakeholders as aform of crisis management. As DIC works to addressthese issues, we will also be targeting top managers
and plant managers for more future training.

Reliability of Financial Reporting

When the earthquake occurred, we made immediate
efforts to verify the safety of all domestic DIC Group
company employees and their families, and set up
an on-site task force to address the damage to DIC’s
Kashima Plant. Although some equipment, includingthat used in production, was damaged by earthquakeinduced liquefaction at the Kashima plant, restoration
work, coordination with other plants, and various
materials procurement allowed us to minimize theimpact on business operations and completely restore
operations by May.

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

Supply Chain Management

Globally Expanding CSR Procurement
With the DIC Group Supply-Chain CSR Deployment Guidebook at the core, DIC is deploying CSR procurement
throughout the entire supply chain worldwide, including DIC Group affiliates.

WEB● CSR Deployment throughout the Entire
Supply Chain
To promote understanding and sharing of CSR
management strategies throughout the entire globally
expanding supply chain, the DIC Group has preparedJapanese, English, and Chinese versions of our DIC
Group Supply-Chain CSR Deployment Guidebook(referred to as the “Guidebook” below) and distributed
it to suppliers around the world. Suppliers answer 38
questions on the “Self-Check Sheet” (questionnaire)in the Guidebook to identify their own progress with
CSR initiatives and then receive feedback from DIC via
the “Answer Sheet and Report Form” which provides
evaluations and requests and identifies problem areas
based on the answers given. A total of 170 suppliers
completed the questionnaires and received feedback
in FY 2010. DIC visited and exchanged thoughts withsome of these suppliers using the Answer Sheetand Report Forms. DIC will continue promoting CSR
through these activities as it works to further deepen
mutual understanding and strengthen relationships with
suppliers.

● Communication with Overseas Suppliers
DIC conducted a DIC Group CSR procurement
briefing in Shanghai in January, 2011 for 10 suppliers in
China. At the review, we used the Guidebook to provide
information on DIC Group CSR procurement, heard
status updates on CSR initiatives at each company, andexchanged opinions to deepen mutual understanding.
We also visited some of our suppliers, affording us
the worthwhile opportunity to provide feedback on
Guidebook questionnaire results and further strengthen
relations.

● CSR Procurement Foundation Building at
Group Subsidiaries
The DIC Group is putting together a deployment
framework for CSR procurement at DIC Group companies worldwide based on the DIC Group CSR Procurement Guidelines and DIC Group Green Procurement22

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

Guidelines. We have also been using the Guidebook
to conduct CSR procurement briefings as we prepare
CSR procurement tailored to each company's circumstances while sharing and utilizing CSR information
between companies. FY 2010 saw DIC conduct followups on CSR procurement preparation for 17 domestic
DIC Group companies and 24 overseas (Chinese)companies. For F Y
2011, we will be holding CSR procurement
briefings at DIC Group
companies in East
Asian regions.
Eastern China CSR Procurement Briefing

Voice
Starting Immediately on CSR Procurement
and Achieving a Sustainable Society
While it is often said that China still lacks awarenessof CSR procurement, I believe the fact that ourcompany is supplying raw materials to large
overseas business partners, which include the
DIC Group, means we have been quick in setting
up CSR initiatives. For example, we are actively
engaged in setting yearly reduction targets forenergy usage, implementing safety standardization
syste ms pro pose d by th e g ove r n m e nt, a nd
preparing working environments as well as our
REACH regulation response. Going forward, we
will make use of DIC Group CSR briefings, selfcheck list answers, and feedback on evaluation
results to identify where we stand and contribute to
the development of regional societies through ourown sustainable growth.
Suzhou Lintong Chemical Science Corporation
General Manager

Shoumei Karasawa

Business Model Focused on Customer Satisfaction

Establishing a Solutions Business
What solutions can we provide to address the individual concerns of our customers? At DIC, we believe
making customers aware of the solutions available is the best policy in establishing business models aimed athigh customer satisfaction.
WEB

http://www.dic-global.com/en/csr/stakeholder/customer/satisfaction.html● Striving to Ascertain Social Needs Quickly

Private Show with Major Clients

Voice
To Build Trusting Relationships with Customers,
and to Understand the Consumer's Standpoint
T he DIC Group is one of the rare few chemical
manufacturers to offer such a wide range of goods andservices, which include everything from inks (pigments
and resins), adhesives, films, and other intermediatematerials to material property assessments and analyses,
color and design solutions, marketing, and consulting.
In exercising DIC's full potential, it is essential to build
strong trusting relationships with customers, work
together, and resolve issues. Materials manufacturers areprone to adopt business-to-business (B2B) approaches,but by also emphasizing a broad-reaching business-toconsumer (B2B and B2C) approach, DIC will be able toprovide goods and services valuable to the customer.
Food Packaging Division
Senior Manager,
Food Package Marketing Department

Yuji Morinaga

The Corporate Marketing Department has been at the headof two initiatives aimed at providing solutions businesses withhigh-demand industries and customers. The first is creatingproduct guidebooks for each high-demand industry. These
guidebooks classify DIC's characteristic technologies into 7

23

Business Model Focused on Customer Satisfaction● Striving to Strengthen Appeal with HighDemand Industries and Customers

our core technolog i e s a n d re p re sentative products
directly has let
us anticipatechanges in needs
and improve customer satisfaction.

Supply Chain Management

DIC has long had an organizational structure withbusiness operations split along product lines, and has
worked to address individual market needs by developing
new markets and high-demand industries. But how
traditional business methods make one prone to seeing theneeds of customers and society in a narrow, 2-dimensionalway, and how solutions inevitably become single products
or technologies is something we have come to see as an
issue requiring resolution. This is why we are advancing
initiatives with an emphasis on continuous improvementof customer satisfaction in order to avoid falling behind inboth recognizing broad-based changes throughout highdemand industries and formulating our response as acompany. The first of these initiatives began in April 2011
with a dramatic organizational change as we adapted
our former product-specific divisional system to onealigned along high-demand industry lines in the Chemical
Solutions Materials Business Operation, which enjoys
many connections with downstream industries. This
allows us to see customer needs more 3-dimensionallywhile quickly and with a broader perspective responding
to needs as they change. DIC will also assign different
roles to the technology and Marketing departments, clarify
Group strengths by identifying changing social needs andevaluating elemental technologies, and will choose specificthemes for solutions businesses as we continue to decideon the direction we want to take for these businesses.
In recognizing the large distance between DIC and theconsumer in DIC's traditional existence as a B-to-B
Company, the Chemical Solutions Materials Business
Operation is leading the charge in meeting with customers
in order to more fully understand the consumer market.

fields and 29 categories of elemental technologies and take acomprehensive look at DIC's representative products. By providing a matrix of these elemental technologies and products,
our customers better understand what their options are. The
second is the “Comprehensive Technology Exchanges ” (Private
Shows) we hold for large electronics manufacturers. Displaying

New Technology Development and Value Creation

Providing Solutions Utilizing Core Technologies
By leveraging and combining its core materials—namely synthetic resins and organic pigments—and various
core technologies, DIC is working to achieve “Color & Comfort through Chemistry”

FY 2010 Achievements
In the Technology Division, we have devised a framework integrating all technological resources throughout DIC By
reorganizing the old technical departments—formerly attached to specific products—into the Technical Administrative
Division and by realigning these technical departments based on core technologies, we are sharing more relevant
technical information and promoting overall optimization.

● Giving More Functionality to Printing Inks and Adhesives● Contributing to a Wide Range of Industries
with Outstanding Resin Design Capabilities-- Printing Ink Business Operation-- Synthetic Resins Business Operation

In addition to R&D for

The Synthetic Resins Businessvarious printing inks, DIC is

Operation has been focused on thefocused on the development

development of various environmentally-of adhe sive s*1 for foodconscious products, such as UV-

packaging for which solvent-curable or water-based products.

less warm working can be

They have developed a variety of new

performed, as well as backamine hardeners in a prompt response

sheets of solar batteries, and is working to bring all of these to market.

to revisions to legislation concerning chemical safety, emulsion adhesives*3, and so on. andWe have also digitized our color guide—formerly distributed on

chemical safety. In the area of solubility to solvent polyimide resins*4, which possess uniquepaper—and developed it for use with mobile phones from companies

properties, our business operation has developed new products that feature low expansion

such as Apple. Sun Chemical, a U.S. subsidiary, has brought a number

coefficients. They are also working to open up new product areas including coating agents andof products to market including an exciting new concept in sheetfed ink

adhesives for a variety of electronic materials. In the area of polymer additives, they have also

which provides rapid set times for increased press room productivity,

developed surface modifiers to improve the quality of color filters by augmenting color resists ofand the oxygen barrier coatings*2 for dry food packages.

LCD panels with these additives. In addition, they have also acquired government certification for
6% and 3% alcohol-resistant fire-extinguishing foam and begun the full-scale sale of this product.

● New Value Creation in the Digital Industry-- New Graphic Arts Business Operation
In the pigments segment,● Offering Composite Products That Provide Safety, Comfort, and Peace of Mind-- Chemical Solutions Materials Business Operation

DIC has further improved theIn the field of industrial-use

brightness and contrast ofadhesive tape, we have developed aour highly market-acclaimed

solvent-less double-sided adhesive

green pigments for color

tape that is very environmentallyfilters for LCD displays. In

friendly. Replacing traditional solvent-the field of TFT LCs for LCD

based products, its applications

TVs, our new products demonstrate excellent response time and long-include consumer electronics andterm reliability and are being used by large LCD TV manufacturers.

automobile interior parts. In films for wrapping, we have developed a film with a unique

Much effort has gone into managing the technical side of increasing

texture like the skin of a pear, and are using it for applications beyond food packaging

the production and maintaining the quality of these products. For

because of its new tactile quality. Our high-performance PPS compounds are also doing

solar battery-related products, we have collaborated with our U.S.

well as materials for parts for hybrid and electric automobiles. In the area of interior

subsidiary Sun Chemical to develop silver and aluminum pastes

housing products, we have expanded the color gamut by adding high-saturation colors as

used as electrode materials, and have put lead and cadmium-free,well as black to color-painted non-flammable decorative boards, and have given a moreenvironmentally-conscious products on the market.

genuine natural wood appearance to natural-grain non-flammable decorative panels.

*1 Adhesives for solar battery back sheets: Adhesives for laminating various films composed of back sheets (compound film that protects the rear side of solar battery panels).
*2 Oxygen barrier coating: A paint that is applied to films and other products to restrict oxygen permeation. This product fulfills a need in the food packaging field for products
able to restrict oxygen, carbon dioxide and other gas permeation to prevent deterioration of the content.
*3 Emulsion adhesives: Emulsions are mixtures, like milk, and are created by dispersing water-insoluble resins in water. The film that results after evaporating the water can beused as an adhesive.
24 *4 Solubility to solvent polyimide resin: Polyimide resins are engineering plastics with excellent heat resistance and electrical characteristics. While most polyimide resins havepoor solubility, DIC-developed polyimide resins are dissolved in a variety of solvents, giving them superior coatability and workability

New Technology Development and Value Creation

FY 2011 Research and Objectives

New Technology Development and Value Creation

To promote the Technology Division's activities
fur ther , we are enhancing coordination among¬
technical departments, the R&D Steering Committee,
and group companies around the world. By maximizing
the strength of the entire group, cultivating elemental
technologies, and combining techniques, we willcontinue to develop new products and technologies
that contribute to a sustainable society. Throughcollaboration with industry, government, and academia,
we are also focused on investigative and basic research
into new technologies. Another priority is reducing
the usage of toxic substances and reducing toxicity
in products and developing recyclable products andpower-saving manufacturing processes that aresafe and produce little waste, all while continuingenvironmental assessments. We will also place agreater emphasis on sustainability as we put energy
into new initiatives including investigating the feasibilityof implementing LCA (life cycle assessments) andtechnological responses to risks inherent in the raw
materials supply chain. DIC also plans to look at trends
in legislation and environmental measures in various
countries and continue to design products compatible
with each country's chemical substances laws. In
becoming even more environmentally conscious in
FY 2011, DIC will continue to work to further energize
the development of new products and technologies
to b e n e f i t s o c i e t y a n d i n c re a s e i ts n u m b e r ofenvironmentally-conscious products.

The New Technology Division

DIC

Technology Administrative Division

Fine Synthesis Technical Department
Polymer Technical Department 1
Polymer Technical Department 2
Dispersion Technical Department 1
Dispersion Technical Department 2

Voice

Polymer Processing Technical Department
Coating & Applied Materials Technical Department
Technology Collaboration ProjectTechnology Planning Department
Intellectual Property Department

Corporate R&D Department

Color Science Laboratory
Materials Research Laboratory
Process Engineering Laboratory
Priority Development Project
Analysis Center
Materials Research GroupR&D Advancement Corporate R&D Department

Developing Eco-Friendly DoubleSided Adhesive Tape
Double-sided adhesive tape is used for everythingfrom electrical appliances and electronics to interior
parts for automobiles. Our group has developed anemulsion-based adhesive with high adhesivity incollaboration with the Polymer Technical Department#2 and other DIC groups and turned our solventless double-sided adhesive tape into a product. We
will continue to develop eco-friendly products as weleverage the power of the entire DIC Group

Domestic
Overseas

Group Companies

Coating & Applied Materials Technical Department
Pressure Sensitive Adhesive Materials Technical GroupDIC Graphics, etc.

Naoki Kato

Sun Chemical (U.S.)
Qingdao DIC Finechemicals
Co., Ltd. (China)

25

Environment, Safety, Health and Quality

Towards Achieving a Sustainable Society
Chemical companies see environmental preservation and assuring the safety and health of society as thecore of business. Through its activities aimed at the environment, safety, health and consistent quality, DIC is
focused on becoming a company that answers the needs of society.
WEB

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

Our new “Environment, Safety and Quality Policy
In 1992, to preserve the environment and secure the safety
and health of people, DIC established the “Principle andPolicy for the Environment, Safety and Health.” In 1995, DIC
pledged to implement the precepts of “Responsible Care” inour everyday operations.
In Januar y 2006, as a member of global chemical
corporations, DIC signed a declaration to support the
Responsible Care Global Charter, promising to further strive toenhance the environment, safety, and health of people. Also,in order to implement this policy, we prepare an annual “Policy
for the Environment, Safety and Quality,” and translate it into
English and Chinese in order to disseminate the policy acrossthe entire DIC Group and to promote relevant activities.

Principle for the Environment,
Safety and HealthAs a responsible corporate citizen, DIC
Corporation recognizes that care for theenvironment, safety and health (ESH) is
fundamental to the management of theCompany. DIC is committed to the concept of sustainable development, andcontributes to society through our continuous business harmonized with global
environment, including biodiversity, andprovide environmentally sound products
and technology.

Quality Policy
Contribute to the prosperity ofcustomers and society by consistently providing reliable products

Environment, Safety andQuality Policies for 2011
■ Promote Responsible Care activities
across the global network of DIC Corporation■ Establish a safety culture oriented towards “zero accidents.”■ Set targets to reduce environmental
impact through business activities andopenly report performance andachievements■ Manage chemical substance information in an appropriate manner andinform customers of their safe use■ Reexamine and support the transformation of the business from spots to areasfrom the Responsible Care viewpoint

April 1, 2011

Kazuo Sugie,President

FY 2011 Environment, Safety and Quality Policy Poster

DIC’s Responsible Care (RC) Promotion Structure and Our Efforts
Under our CSR committee, we work with the Responsible Care implementation organization and the Responsible
Care audit and support organization as a pair of wheels to promote our Responsible Care activities.
Board of Directors

DIC's Responsible Care (RC)
Promotion Structure Chart

President

Corporate Social Responsibility Committee

DIC's Responsible Care (RC)
Promotion Structure Chart

Division presidents

Sales offices(Divisions, branches)
Persons in charge of
responsible care

Implementation organization(Branches, departments, sections)

Responsible Care Dept

Production/R&D (Plants, R&D centers)
Internal branch andsales office audits

Environment/Safety/Quality Group
Plants, R&D centers, environmentand safety committees
Implementation organization(Departments, sections)

Implementation/Support

Subsidiaries

Business operation presidents

Top management audits

Division audits

Plants, environment, safety
and quality audits

Internal branch andsales office audits

Responsible Care, Audit and Support Structure

DIC checks the implementation of DIC Group’s activities relating to the environment, safety, health and chemical
controls, based on the following “Responsible Care Codes.”Responsible Care Code

1. Management System (all codes are applied commonly)
2. Environmental Protection (continuous reduction of
3. Process Safety and Disaster Prevention (prevention ofemissions and generation of chemical wastes)
4. Occupational Safety and Health (protecting the safety andfire, explosion, outflow of chemicals)
health of workers)
5. Chemical and Product Safety (risk management of
6. Distribution Safety (risk reduction in chemical distribution)
chemical products)
7. Dialogue with Society (communication with local communities relating to the environment, safety and health)26

Environment, Safety, Health and Quality

Environmental Impact generated by Our Business Activities
Illustrated here is a comprehensive image of the environmental impact generated by the domestic DIC Group’s business activities
in FY 2010. As input, 2 items are indicated: energy consumption and total water consumption. As output, 6 items are indicated:emissions of 567(+1 substance group) chemicals released into the environment, including PRTR*1 chemicals, CO2 emissions, NOxemissions, SOx emissions, COD emissions through waste water, and industrial waste disposed of as landfill.
About DIC Group (overseas), the data for 2010 (including energy consumption as input and CO2 emissions and industrial waste
disposed of as landfill as output), is shown.

DIC Group (Domestic)
P31

0.4%

Year-on-year

Total Water Consumption

15,198,000 m

3

3.9%

Year-on-year*3 Renewable energy is not included in the above figures

Emissions into water
NOx Emissions

P31

P29

For details, see262,000 t

For details, see

2.8%

Amount of atmospheric emissions of the 567 substances(and 1 substance group) targeted substanceFor details, see
P28-29

977 t

203 t

Year-on-year

Year-on-year

10.6%

11,749,000 m

P29

63 t

Year-on-year

51.1%

Year-on-year

7.0%

3

Year-on-year

2.6%

COD emissions into waste water For details, see

394 t
12 t

SOx Emissions
For details, see

Emissions into soil

Total emissions

P29

Year-on-year

3.0%

Amount of atmospheric emissions of For details, see
P28
the 567 substancesYear-on-year(and 1 substance group)
19.3%
targeted substanceAmount of industrial waste disposedof as landfill For details, see
P30

207 t

Year-on-year

11.1%

Amount of emissions into soil of
the 567 substances (and 1
substance group)targeted substance For details, see

0t

OUTPUT

CO2 Emissions

Environment, Safety, Health and Quality

Emissions into the air

Production volume

131,901 ㎘

*3

INPUT

Energy Consumption (crude oil equivalent) For details, see

1,049
,000t

P28

DIC Group (Overseas)

194,521 ㎘
CO2 Emissions

427,000 t

Emissions into soil
Amount of industrial waste disposed of as landfill

37,327 t

OUTPUT

Emissions into the air

Production
volume

INPUT

Energy Consumption (crude oil equivalent)

1,358
,000t

*Overseas data includes that from January 2010 to December 2010
● 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>
Suita Plant, Chiba Plant, Hokuriku Plant, Sakai Plant, Kashima Plant, Yokkaichi Plant, Shiga Plant, Komaki Plant, Saitama Plant, Tatebayashi Plant, Central ResearchLaboratories,<Domestic Subsidiaries>
DIC Graphics Corporation, DIC Kitanihon Polymer Co., Ltd., DIC Kyushu Polymer Co., Ltd., DIC Kako, Inc., DIC EP Corp., DIC Interior Co., Ltd., DIC
Color Coating, Inc., DIC Colorants, Inc., DIC Filtec, Inc., Ltd., DIC Plastics, Inc., DIC Molding, Inc., Topic Co., Ltd.,DIC 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 Formalin Company, Inc., DH Material Inc., Sakai Plant, Hitachi Finenext Transport System Co., Ltd<Overseas Subsidiaries>
Overseas subsidiaries of the DIC Group*Please see WEB http://www.dic-global.com/en/worldwide/ for a list of overseas DIC Group companies.
*1 567 substances (and 1 substance group): Targeted for check by the DIC Group are 462 PRTR class 1 designated chemical substances + 105 substances targeted for study
by the Japan Chemical Industry Association (excluding class 1 designated chemical substances) and 1 substance group (chain hydrocarbons with 4 to 8 carbons)*2 The PRTR (Pollutant Release and Transfer Register) is a scheme for assessing, aggregating and disseminating data on the sources of hazardous chemicals, amounts
released into the environment and amounts transferred off-site from industrial establishments via waste products

27

Environment, Safety, Health and Quality■ Reducing Emissions of Chemicals into the Environment

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

An increase of

DIC
Total emissions into the air: 309 tons
Emissions into water: 11 tons
Emissions into soil: 0 tons

1%

320tons

DIC Group companies (Domestic)
Total emissions into the air: 977 tons
Emissions into water: 12 tons
Emissions into soil: 0 tons

Changes in environmental emissions of substances checked

1,647

1,822

（t）
2,000

320

292

799

670

'04

660

'03

317

'02

312

'01

573

'00

660

'99

601

749

'98

652

1,000

Targetfor 2011
989

1,500

1,499

(567 substances including PRTR-designated substances and 1 substance group)

'08

'09

'10

'11 (Fiscal Year)

517

430

0

537

500

'05

'06

'07

DIC: Based on previous JCIA standards (non-consolidated) (284 chemicals)
DIC: Based on PRTR Law and current JCIA standards (non-consolidated) (480 chemicals)
DIC and domestic DIC Group companies: Based on PRTR Law and current JCIA standards (480 chemicals)
DIC: Substances checked (567 substances and 1 substance group)
DIC and domestic DIC Group companies: Substances checked (567 substances and 1 substance group)

Substances Checked (567 substances and 1 substance group)
Chemicals with Emissions Exceeding 10 Tons
DIC

(Tons)DIC Group (domestic)

Volumemanufactured/ usedVolumeemittedVolumemanufactured/ usedVolumeemitted

Ethyl acetate

8,724

100

13,648357

Methyl ethyl ketone

7,299

44

11,225

256

Toluene11,881

68

17,565

213

Propyl alcohol

1,328

7

4,430

25

Chemical name(3 tons) as
compared withthe previous
year

Styrene153,119

11

159,741

18

Xylene

3,017

14

3,494

17

A increase of

Acetone

677

14

798

17

Normal hexane

260

12

268

12

Others221,59350

260,718

74

Total

407,898320

471,887989

50%989tons

Note on FY 2011 targets: Due to VOC combustion device malfunctions that were
not fixed for 2 months at the beginning of the year, we plan to exceed the FY 2009
results.

895

Chemical corporations are expected to pay due
considerations to prevent emissions of chemicals
into the environment in their business operations, since
they deal with various chemicals in large quantities whencompared with those in other industries.
Beginning in FYs 2000 and 2005 for DIC and domestic
affiliates, respectively, the DIC Group has been working to
reduce emissions into the air, water, and soil of substances
designated by the PRTR Law*1 and substances designatedfor voluntar y study by the Japan Chemical Industr y
Association (JCIA). Substances targeted for study in FY2010 according to PRTR Law revisions are 462 PRTR class
1 designated chemical substances + 105 substancestargeted for study by the Japan Chemical Industr y
Association (excluding class 1 designated chemical
substances) and 1 substance group (chain hydrocarbons
with 4 to 8 carbons). The number of substances that
DIC and domestic DIC Group companies either usedor produced more than one ton of in FY 2010 were 120
and 134, respectively. Due to combustion device failuresat some subsidiaries, domestic DIC Group company
targets for environmental emissions were unfortunately
not met in FY 2010. We will be continuing to reduce
chemical substance emissions in FY 2011 by repairing
VOC combustion devices as we take other measures that

include ensuring the proper operation of other required
equipment.

696
856

Chemicals DIC Aims to Reduce(329tons) as
compared withthe previous
year*1 PRTR Law: The PRTR Law is the popular name for the Law Concerning the Reporting, etc. of the Releases of Specific Chemical Substances to the Environment and Promoting Improvement in
Their Management. The law, which went into effect in FY 1999, required companies meeting certain standards to assess the release and transfer of PRTR chemicals from FY 2001 and reportresults to the government from FY 2002. DIC has assessed the release of PRTR chemicals and aggregated and disseminated data in accordance with the law retroactive to 1999.

28

Environment, Safety, Health and Quality

603

419

Changes in Atmospheric Emissions (VOCs) of Substances Checked'90(reference year)

646

655

789

977

1,441

1,552
561

309

282

'07

304

'06

DIC

298

'00

(reference year)

373

0

421

500

'08

'09

'10

'11 (fiscal year)

DIC and domestic DIC Group companies

Soil and Groundwater Pollution Studies
DIC is engaged in the testing of and creation of measuresagainst soil and groundwater pollution in accordance with theSoil Contamination Countermeasures Act and similar legislation.
When acquiring plants overseas or making investments inoverseas businesses, we also refer to Japan's Soil Contamination
Countermeasures Act as well as that country's laws to evaluatesoil under strict standards and preliminarily evaluate risks tosafety and the environment for investing companies.

Reducing SOx, NOx and COD
When released into the atmosphere, it is fearedthat substances such as SOx and NOx —containedin exhaust gas from boiler equipment—are feared to

390

'09

'10 (fiscal year)

'07

203
60
63

156

212
228
68

232

216

72
53

57

188
209

'06

'08

'09

'10 (fiscal year)

SOx Emission Volume：

DIC

DIC and domestic DIC Group companies

NOx Emission Volume：

DIC

DIC and domestic DIC Group companies

Environment, Safety, Health and Quality

1,000

Targetfor 2011

48

100

66

200

（t）
2,000

1,500

'08

DIC and domestic DIC Group companies

254
275

（t）
300

0

(567 substances including PRTR-designated substances and 1 substance group)'07

SOx and NOx Emission Volume

44
67

Beginning in FY 2007, DIC began a policy promoting“reduction of atmospheric VOC emissions by 30% by2010 using FY 2000 as the base year” as a voluntaryemissions reduction target to limit the emission of VOCs,
thought to be a factor in producing photochemical
oxidants in the atmosphere. With this target reached, andwe will continue to set new targets for further reductions.

202

Addressing VOC Regulations

'06

DIC

be harmful to human health as components of acidrain. High COD values indicate highly polluted water.
DIC is currently engaged in reducing SOx and NOx byreviewing fuel sources for boiler equipment using FY1990 as the base year. We are also working to lower
COD values by properly processing waste.

204■ Reducing the Environmental
Impact on the Air, Water and Soil

'90

(reference year)

403

0

415

448

599

400

394

451

600

406

（t）
800

745

COD Emission Volume

Compliance with Regulations for
Dioxin Emissions
Domestic DIC Group companies are monitoring
dioxin emissions from waste combustion facilities,
which produce dioxins. At all of our 6 facilities, we haveachieved results far below the standards specified in
the Act on Special Measures against Dioxins.
Halogenated Dioxins Emission Control Standards Applicable toDomestic DIC Group Incinerators

Plant Name

Exhaust Gas
Exhaust Water
Plant
FY 2010
FY 2010
nameIncinerator Standard
Standard(ng-TEQ/ measurements
measurements
capacity(pg-TEQ/ℓ)
Nm3)(ng-TEQ/Nm3)(pg-TEQ/ℓ)

DIC(Chiba Plant)

Approx.
3t/h

5

1.2

10

0.060

DIC
(Hokuriku plant)

Approx.
0.3t/h50.0000012

100.00041

DIC Interior Co., Approx.
Ltd.
0.1t/h

10

1.8

N/A

ー

Approx.
0.2t/h10＜ 0.04

N/AーApprox.
0.2t/h100.0082

N/AーApprox.
0.2t/h10＜ 0.06

N/Aー

DIC Kitanihon
Polymer Co., Ltd(Hokkaido Plant).
DIC Kitanihon
Polymer Co., Ltd(Tohoku Plant)
Seiko PMC
Corp.
(Harima Plant)

29

Environment, Safety, Health and Quality■ Reduction of Industrial Waste

4

Topics

'99

'00

'01

'02

'03

DIC

'04

'05

'06

'07

'08

'09

90
207

Targetfor 2011

'10

85
151

0

(reference year)

1,560

3,426

3,000

537
1,288
312
991
128
537
125
320
89
232

2,296

4,190

6,000

4,326

5,581

（t）
9,000

'11 (fiscal
year)

DIC and domestic DIC Group companies

Striving to Reduce Industrial Waste

Recycling Initiatives at
DIC EP Corp.’s Sodegaura Plant

At the Sodegaura plant we produce polyphenylene sulfide(PPS), an engineering plastic. PPSs are thermoplastic resins withexcellent heat and chemical resistance that have a wide range ofuses in everything from electronic components and residential
hot water heater parts to parts for automobile interiors, where
they are fortified with glass fiber or another material and used as
a compound. As an alternative to metal, their being lightweightand easy to produce in high volume makes them extremely useful in reducing energy usage (by improving fuel efficiency).
There are 2 main kinds of industrial waste produced at theplant. The first is sludge, a low-molecular-weight material (polymerization residue, reaction solvents, etc.) produced as a byproduct during polymerization reactions. The second is waste
alkali (the product of allowing unreacted sodium sulfide to be

30

Changes in amounts of industrial waste sent to landfills

7,981

As part of its Zero-Emission Activities, DIC began
in FY 2001 to reduce amounts of industrial waste sent
to off-site landfills. Since FY 2008, we have also been
expanding the scope of our Zero-Emission Activities
throughout the DIC Group through the horizontal
sharing of these activities with domestic subsidiaries.
DIC has succeeded in reducing emissions in FY 2010by 99% compared to the base year (FY 1999).
We have also achieved an 11% reduction throughout
the DIC Group thanks in part to an 18% reduction
compared to FY 2009 at domestic subsidiaries. A
primary factor behind this was outsourced material
recycling and waste sorting for sludge and waste
plastics generated at DIC EP’s Sodegaura plant and
DIC Kitanihon Polymer’s Hokkaido plant. In FY 2011,

further efforts will be focused on reducing Groupwide amounts of industrial waste sent to landfills andreducing industrial waste generated by our plants.

7,552

Reduction in the volume of industrial waste
disposed of as landfill and the volume of industrial
waste discharged from production plants

Plant Manager,
Sodegaura Plant
DIC EP Corp

Hiroshi Tanaka

absorbed in a caustic soda solution). Full-scale efforts to reduce
industrial waste began in FY 2002, and since FY 2008 we havebeen working to improve our recycling efforts. Consequently,
we were able to reduce energy usage, given the amount of
production in FY 2010, of low-molecular-weight materials andwaste alkali by 70% and 50%, respectively, compared to FY
2002. This was accomplished by repeatedly outsourcing recycling operations to interim waste treatment companies andby processing more hard to treat industrial waste. Our efforts
in promoting recycling at organizations reusing these materials
also played a part in our efforts that paid off in FY 2010. Going forward, we hope to continue promoting recycling as we
consider how waste alkali could be put to use as sodium hydrosulfide.

Environment, Safety, Health and Quality
CO 2 Emission Volume and Emission Index(Thousands of kiloliters)
400

100

96

234

251
331

239
315

211
283

191
270

190
262

50

'90

'06

'07

'08

'09

'10

'10

132

138

93

158

138

99
'09

0
'11 (fiscal year)

Energy consumption (DIC) (left axis)
Energy consumption (DIC and domestic DIC Group companies) (left axis)
Energy consumption index (DIC) (right axis)
Target energy consumption index per unit production (right axis)

Efforts to Reduce CO2 Emissions
In FY 2010, CO2 emissions saw a small decrease of 0.4%
for DIC and 2.8% for domestic DIC Group companies.
Despite malfunctions involving biomass energythat increased emissions by about 17,000 tons at the
Kashima plant—a big contributor to overall CO2 emissions
reductions—the benefits of organizational restructuring
begun in FY 2009 offset this increase. Also responsible
for the decreases were efforts to reduce emissions at
individual domestic DIC Group companies, in addition to
the sale of affiliates. Going forward, the DIC Group will

CO2 Emissions Generated by the Distribution Arm and History of Energy Consumption Index per Unit Production(1,000 tons of CO2)
(Thousandsof kiloliters)100
40
30

100

99

98

97

78

74

93

20
10
0

'06

'07

96
86

15.8
8.3

'08

25

DIC is working to ship more using JR containers,
marine transport trailers, and other means of masstransport (modal shifting) to cut transport energy
use and CO 2 emissions. Shipping by mass transport
through our FY 2010 modal shifting efforts accounted
for 9.4% of all transport. Compared to truck transport,
we re du c e d e n e rg y u s ag e by 50 5kℓ (c r u d e o il
equivalent) and CO 2 emissions by 1326 tons. DIC willcontinue to cut transport energy use through further
modal shifting and eco-driving programs, and byworking with more companies that use clean-energy
vehicles. We are also providing training to the transportcompanies we use concerning environmental issues
such as eco-driving.
Forty-eight percent of the transport companies weused in FY 2010 were Green Management certificate*2,
a 15-point increase compared to FY 2009.

17.4
7.1

'07

75
50

102

'06

157

'90

(base year)

117

116

0

114

120
80

100

Targetfor 2011

Environmental Preservation Initiatives in Logistics

17.4
7.4

160

101 (Energy consumption index)

At DIC, we promote Cool Biz and Warm Biz campaigns
in an effort to save energy. FY 2010 saw us register
as a challenger in the “Challenge 25 Campaign”*1 anddraw even the Administration Department into further
power-saving efforts that included extending the Cool
Biz period and turning off lights at lunchtime.

24.2

102

95

93

Cool Biz Promotion and Impact

9.0

93

92

be working to meet its FY 2020 CO2 emissions reduction
targets established in FY 2010 that use FY 2005 as thebase year.

26.2

100

0
(fiscal year)

CO2 emissions (DIC) (left axis)
CO2 emissions (DIC and domestic DIC Group companies) (left axis)
Energy consumption index (DIC) (right axis)

9.6(Thousands ofkiloliters)
200

25

Environment, Safety, Health and Quality

Energy Consumption (Crude Oil Equivalent) and Energy Consumption Index(Energy consumption index)
100
75(base year)

As part of DIC's FY 2010 energy-saving activities, we
improved awareness concerning energy conservation withmostly plant employees by upgrading utility equipment to makepower saving and energy usage visible. We also set up a working
group (WG) to address power saving and global warming andconducted an organization-wide energy conservation program.
This working group was made up of the Management Standards,
Power-saving Equipment and Database Information groups.
The Management Standards Group drafted the DIC Corporate
Standards and Management Standards and promoted theirimplementation at each facility. We also undertook a numberof efforts to build awareness. These included power-saving
initiatives where we prepared a collection of case studies
concerning energy conservation and reviewed the cost effectof investments into power saving equipment, as well as an ITrelated initiative that promoted the use of internal SNS .

104

200

0

Promoting Energy Conservation

97

300

100

■ Our Measures to Prevent Global Warming

94

93

'08

'09

'10

CO2 emissions (1,000 tons of CO2) (left axis)
Energy consumption per unit production (kℓ/1,000 t) (right axis)(Energy consumption
index)
95
100

Targetfor 2011

75
50
25

0
'11 (fiscal year)

Energy consumption per unit production（kℓ/1,000 t) (left axis)
Target energy consumption index per unit production (right axis)*1 Challenge 25 Campaign: A wide-scale public program in Japan that proposes specific actions for reducing CO 2 and encourages citizens to act.
*2 Green management certificate: the Foundation for Promoting Personal Mobility and Ecological Transportation evaluates the green management levels of transport
operators, including those for trucks, buses, and taxis, and provides certificates for their business operations with reduced environmental impact

31

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

Activities for Safety
Risk Prediction Program to Prevent Accidents
DIC Décor, Inc. (Japan)
DIC Décor is engaged in
the de sign a nd ma nu facture ofdecorative sheets that satisf y
3D decoration for materials withc o m p l e x s h a p e s , e.g., i n te r i o rbuilding materials, housing
equipment, interior automobile partsand computers. We have continued
risk prediction training since October
2010, at the same time declaration ofsafety was issued.
We are conducting prediction of

accidents by utilizing “pointing andcalling” method for workplaces andoperations, in order to reduce risks
at design, technology and especially
production departments, at which
various raw materials including
solvents are employed. More than 30
DIC employees have had leadershipfor risk prediction program, after
attending risk prediction training heldat Japan Industrial Society & Health
Association (JISHA).

Pointing and Calling in the Production
Department

Safe Production Embodied by utilizing DCS
DIC Synthetic Resins (Zhongshan) Co. Ltd. (China)
DIC Synthetic Resins (Zhongshan) has ensured safe production
while maintaining high product quality with automated manufacturing
processes by introducing distributed
control system (DCS) since 2008.
Different from DCSs introduced
in many companies in China, our
DCS is built based on unique production technology, including not
only software design and creation
but also equipment selection andconstruction.

In February, 2011, we received
high acclaim for our efforts fromthe Guangdong Province andZhongshan Administration of Work
Safety and were chosen as a Model
Company for Safe Production in FY
2010. We are also visited by manysafety personnel in government
and industry at the request of them,and carry other non-DCS safety
programs and local safe production
programs.

DCS Control Panel

Near-miss Reporting System and Potential Accident Identification
DIC Australia (Australia)
DIC New Zealand (New Zealand)
While we work hard to identify
many risks in our routine workthrough regular safety audits andrisk assessments, it is dif ficult
to determine all the areas where
accidents could occur. But with
our near-miss reporting system,
we can illuminate many potential
accidents and work to prevent

them. In order for the system tosucceed, it is important to keep
report cards as simple as possible
and be suppor tive of the actof repor ting. Repor t cards areavailable at all locations, including
plants, warehouses, and offices,and employees can fill them out at
any time.
Near-Miss Report Card

32

Activities for Environmental Preservation
Reducing Waste from Spirulina Algae Production
Hainan DIC Microalgae Co., Ltd. (China)
At the Hainan DIC Microalgae
Co. Ltd. production plant, we
produce a nutritional supplement
known as “DIC Spirulina”. Spirulina
grows using sunlight and CO 2 fromnature-rich Hainan Island in China.
To help its growth, we also produce
raw materials called culture media
that include nitrogen, phosphorus,
potassium and other elements
also used to grow plants. However,
because residue from injected culturem e d i a i n c re a s e s th e a m o u nt ofwastewater reprocessing, the amountof culture media we inject must be
kept as low as possible in the interestsof environmental preservation. As
efforts to reduce these culture media,
from FY 2006 our plant has engaged
proactively in concentration control
and recycling, and we have reduced
wastewater through a 30% reduction
in culture media injected compared to
FY 2006.

Spirulina Cultivation Facility

New Cleaning Methods Reducing Environmental Impact

BeforeZhongshan DIC Colour Co., Ltd. (China)
to process these effluents after
cleaning. By changing to a highpressure water cleaning method
and forgoing the use of the new
method beginning in June 2010, wereduced the cleaning time by 80%
and enabled effluent processing to
be conducted in-house, allowing us
to greatly reduce energy usage andindustrial waste.

Environment, Safety, Health and Quality

The system we used to use forcleaning reactors at Zhongshan
DIC Colour Co. involved dissolving
residue remaining on reactor wallswith heated caustic soda water.
But this method was inefficient as it
took 36 hours for a single cleaning
and resulted in energy leakage dueto the need to heat up the caustic
soda water in the reactors. Also, thecaustic soda water contained in theeffluents forced us to hire experts

After

Reviewing Our Reactor Cleaning
MethodEfforts to Establish an Environmental Management System
DIC Graphics (Thailand) Co., Ltd. (Thailand)
DIC Graphics is now more focused thanever on reducing environmental impact. We
have been striving to meet customer needs
and follow governmental policies throughour supply chain, and have worked to
implement an environmental management
system in order to systematically reduce
environmental impact. By consolidating all
related projects in the company, we havemade progress in measuring and managing
the sorting of industrial waste, measuringand managing the amount of atmosphericpollution, establishing regulations
concerning protective equipment, andsetting up wastewater channels, and havelearned systematic management methods.
On July 14, 2010, we acquired certification
for ISO 14001, an international standard
for environmental management. Goingforward, we hope to further environmental
conser vation programs under thismanagement system as we practice the
PDCA cycle and work to take our activities
to the next level.

ISO 14001 Certificate

33

Environment, Safety, Health and Quality■ Actual Condition of Occupational Safety and Health
Our Activities for Safety and Health in FY 2009The Status of Occupational Injury

In DIC, by providing Security and Disaster Prevention Codes
and Occupational Safety and Health Codes in the framework of
our Responsible Care Activity Policy for each fiscal year, we post
specific goals of our efforts for this fiscal year and undertake thetask of securing and enhancing the occupational safety and health.

The number of cases of occupational injury, which
resulted in employees’ absence from work, at DIC in
FY 2010 was three (three cases in FY 2009), and theoccupational accident frequency rate was 0.51 (0.45
in FY 2009), while the severity rate was 0.017 (0.029
in FY 2009). As for the entire domestic DIC Group, thenumber of lost-work-time injuries in FY 2010 was 10 (13Rate)
in (Frequency
FY 2009).
2.00
With the number of occupational accidents with lost
1.50 days similar to that in FY 2009, there has beenwork
no substantial decrease in labor accidents. To address
1.00
this, the DIC Group will be focusing more on safety
management
activities.
0.50
In order for the DIC group to further promote the0.00
safetyactivities,
continuously
since
FY '08
2008,
we
added
'09
'00
'01
'02
'03
'04
'05
'06
'07
'10 (fiscal year)
1,
a DART (Days Away,
Restricted
orTransferred)
Rate*
DIC
Chemical Industry
Manufacturing Industry
the index commonly used in various countries. TheDART Rate of DIC in FY 2010 was 9.5, with 12.9 forthe domestic DIC group, 12.2 for the overseas and theoverall DIC Group.

Security and Disaster Prevention Codes andOccupational Safety and Health Codes for FY 2010

1. Identifying accident risk and training for securing safety andtransferring skills to ne next generation
2. Reporting, without fail., on the occurrence of an accident/
injury and conducting lateral sharing of analysis methods andcountermeasures
3. Promoting risk management

In FY 2010, we implemented not only regular annual
audits on the environment and quality, but also support
activities such as safety training. We also played asupporting role in auditing environmental safety at four
plants at DIC Graphics — a new entrant to the DIC Group— and then verified improvement through regular audits.

Occupational Accident Severity Rate

Occupational Accident Frequency Rate

(Severity Rate)(Frequency Rate)

0.40

2.00

0.30

1.50

0.20

1.00

0.10

0.50

0.00

'00

'01

'02

'03

'04

DIC

'05

'06

Chemical Industry

'07

'08

'09

'10 (fiscal year)

'00

'01

Number of injuries and deaths
Total work hours

×1,000,000

'03

'04

'05

'06

Chemical Industry

'07

'08

'09

'10 (fiscal year)

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 =An occupational accident frequency rate of 1.0, for example, corresponds
to one accident per year in a workplace with 500 employees.

'02

DIC

Manufacturing Industry*Occupational Accident Frequency Rate: The occupational accident frequency rate is the numberof injuries and deaths due to occupational accidents per one million hours of labor.
Calculation: =0.00

Number of days lost
Total work hours

×1,000An occupational accident severity rate of 0.1, for example, corresponds
to 100work days lost per year in a workplace with 500 employees.

(Severity Rate)

Note:0.40
1. “Chemical Industry” and “Manufacturing Industry” include all companies in the chemicalindustry and the manufacturing industry, respectively, as defined by the Ministry of Health, Labour and Welfare forthe purposes of its Occupational Safety and Health Statistics.
2. Figures for DIC are for the fiscal year (April 1–March 31). Figures for the chemical industry and the manufacturing industry are for the calendar year (January 1-December 31
0.30*1 DART Rate: Includes cases involving days away from work, restricted work activity, and transfers to another job. It is calculated as (number of days unable to do normal
work / total hours worked in one year) × 200,000 hours (200,000 hours: the number of hours worked full-time by 100 people = four weeks/month, 50 weeks/year)
0.20

34

0.10

0.00

'00

'01

'02

'03

'04

'05

'06

'07

'08

'09

'10 (fiscal year)

Environment, Safety, Health and Quality

China region EHS meeting

FY 2011 Initiatives and Objectives

Risk and Hazard Assessment and Education
Aiming to achieve safety and reliability, as a chemicalmaterial manufacturer, DIC conducts environment
assessments, while promoting the development ofrecyclable, safer, energy-saving products with lesshazardous substances and less waste. Seeking tobuild safe production facilities, we have establishedthe DIC Risk Assessment Guidelines for MechanicalEquipment. When formulating facility investment plans
and renovating existing facilities, we use the PSM risk
assessment method. We also provide educational
programs regularly to our employees concerning thesafety and handling of chemicals by utilizing safety
guidelines for technology and research departments,
MSDS, basic safety actions, and accident case studies.

The second China Regional Safety Meeting for Chinese affiliates washeld at Qingdao DIC Fine chemicals Co., Ltd. for 2 days in February,
2011. The participants, which included Chinese affiliate companies
working in production, DIC China, the RC Department (headquarters),
and CSR personnel (a total of 32 people from 20 companies) took partin poster sessions for each company, presented on safety managementcase studies, and discussed issues in groups. The Group discussions
allowed for lively exchanges of ideas and provided an opportunity
for each company to share their methods. Participants stated on thequestionnaire that the ideas and information they shared would be ofgreat value in making improvements at their own companies.

Morale-Boosting “Safety Tree Rings”

Environment, Safety, Health and Quality

In FY 2011, we will be getting back to the basics,
further instilling the “pointing and calling” method while
fundamentally improving risk prediction.
We will also be utilizing experience-based training
a nd v ide o mate r ials (K-SHOW, etc.) to prov ide
effective education and training in pursuit of a safe
work environment and technologies for the upkeep ofequipment. Accident reports and information sharing
are at the foundation of safety measures. In addition
to ensuring that these are solid, we will also be seeing
to the horizontal expansion of reported case study
analyses in order to prevent accidents. In addition
to accident case study reviews, we have also foundrisk assessments (RA) to be effective in preventing
accidents. RA must be performed not only when
installing new equipment, but also when changing
processes. Depending on what is being assessed, we
will carry out RA pertaining to PSM (process safety
management)*1 and mechanical equipment or RA forwork actions as we continue conducting “preliminaryRA.

Improvement of Overseas
Environment and Safety System

Safety Tree Rings is DIC’s safety commendation system tohonor our plants, R&D facilities and part of our domestic Group
companies accomplishing accident-free (no occupational accidents
with lost work day)s for a full year. Those achieving no occupational
accidents will be given an
annual growth ring to their
Safety 20 silver rings for 20
years without occupational
accidents. When 20 silver
rings are completed, fromthe 21st year, a gold ring will
replace each silver ring foreach additional year without
any occupational accident
involving lost work days.

Safety Tree Rings of the Hokuriku Plant

Our Measures in Distribution
To cope with emergencies while transporting chemicals, we provide
Yellow Card*2, not only to freight-exclusive vehicles such as containers andtank trucks, but also to general freight vehicles which carry mixed loads.
For the transportation of DIC products, we use special containers thatcomply with transport-related regulations such as the Fire Defense Law
and United Nations Standards.

*1 Process safety management: Risk management to minimize accidents (and the impact thereof) caused by factors in a process (plant).
*2 Yellow Card: Relative to a voluntary activity promoted by the Japan Chemical Industry Association (JCIA). This card indicates contact information and the appropriate
actions to be taken at the time of an accident during the transportation of chemicals for carriers, firefighters and police officers. All carriers of chemicals are obliged
to carry this card.

35

Environment, Safety, Health and Quality■ Environmental Cost/Safety and Health Costs
DIC has been publishing our environment and safety costs since FY 1998, obtained from our own calculation methods. From FY 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.

● Environment Costs in FY 2010

● Safety and Health-Related Costs in FY 2010

Environment-related capital investment in F Y
2010 was 717 million yen, and 782 million yen for thedomestic DIC Group. Environment-related expenses for
DIC came to 10.798 billion yen and 11.46 billion yen forthe domestic DIC Group.
For details,
P47

In FY 2010, capital investment related to safety andhealth was 120 million yen and 174 million yen for thedomestic DIC Group. Expenses related to safety andhealth for DIC came to 852 million yen and 1.13 billion
yen for the domestic DIC Group.

■ Management of Information on Chemicals Involved in Our Products
Making Use of the Chemical Substance Information
Comprehensive Management System (CIRIUS)
Built at DIC, the chemical substance information
comprehensive management system—or CIRIUS—is used tohelp us comprehensively manage information about chemical
substances for our raw materials and products. This system
is also used for security trade control. We have also arranged
it so that CIRIUS automatically files the numbers of chemical
substances manufactured, imported, and shipped, as such
filing is mandated by the revised Chemical Substances
Control Law (a law concerning regulations for the inspection,
manufacture, etc. of chemical substances).

Providing Accurate Product Information
At DIC we have a system—developed in-house—that
automatically generates MSDSs, and it automaticallychecks domestic regulations when generating andproviding homogenous, highly-reliable MSDSs. A partof CIRIUS, this system automatically checks eventrace ingredients in raw materials. Information about
trace elements is reflected not only in MSDS, but also
MSDSplus*1 and AIS*2

Strengthening Efforts Aimed at Overseas Regulations
As planned, DIC has completed registration for
EU REACH* 3 . In addition to compiling information
concerning revisions to both China's New Chemical
Substances Control Law and Taiwan's Occupational
Safety and Health Act, we have taken appropriate
measures to ensure seamless business continuation.

Advancing Employee Education
To better observe compliance, DIC is working to
educate its employees on laws both in Japan and overseas
and is devising an internal licensing program for imports
and exports. Through this program, only employees with
DIC licenses can engage in import and export work.
1

日本の輸出規制とJapan'sExport Regulations and
当社の輸出管理
DIC's
Export Management1

化学物質の輸入に関する法規制とChemical Substance Import Regulations
輸出規制品貨物取扱者ライセンス
輸出規制品貨物取扱者ライセ
Licensesto Handle Export-Controlled Products
当社の管理体制
Ａ Session
講習会資料and DIC's
Management Framework
Class ＣｌａｓｓA Training
Material
2010 Care
2010.1010 Department
レスポンシブル・ケア部
レスポンシブル
ケア部
Responsible
October2010 化学物質の輸入業務に関する
ChemicalSubstance Import Work - DIC License

Workgroup Study Materials
社内ライセンス勉強会資料

Responsible Care
Department Aprilケア部
2011
２０１１年４月
レスポンシブル・ケア部
レスポンシブル

Textbooks for the importing/exporting licensing program*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 chemicals regulations. Under REACH, businesses bear responsibility for evaluating thesafety of chemicals with no distinction made between existing and new chemicals. REACH also prohibits the use of specified chemicals in principle.

36

Environment, Safety, Health and Quality■ Quality Policy and Quality Activities
DIC’s Customer-First Flowchart
Part visible tocustomers

Requests from customers/market and society
Information from customers

Requirements

Output from DIC
Products

Customer satisfaction
realization system of DIC

Sales strategies

Quality assurance

Planning and framing
Design and development

Marketing

Production

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

MSDS
Technical
documents

Labeling
Package
Sample for evaluation test

Design review
Validation
Control of changes

Product evaluation
Trial production
Mass trial production

Contract/Delivery Specifications
COA (Certificate of Analysis)
MSDS
Catalog
Product

Production/
quality confirmation→ Products

DIC Website
Customer consultation information
Technical service
Quality validation

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

Business activities of DIC to deliver high quality products that are safe and reliable

Planning and Framing
In product planning, related manufacturing, sales, technology and administration departments collaborate
and determine the basic performance of 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 the basic performance of products based on market
trends and requests from customers, and create values for the same, by reflecting DIC’s inherent technologies andaccumulated 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 the voicesof our customers. To ensure our customers can use our products
safely and reliably, We provide information, data and technical services
through our sales offices, to further enhance customer satisfaction.

FY 2010 Primary Quality Initiatives

Environment, Safety, Health and Quality

Strengthen the Product Provision Process

1. At our 10 dome stic plants, we are maintaining
quality and environment management systems while
continuously enhancing effectiveness. This policy is
being shared with affiliates.
2. At DIC Graphic Corporation, we have begun efforts
towards acquiring ISO 9001 certification, which we planto acquire within FY 2011.
3. We have passed Sony’s Green Partner renewal test andbeen recertified (10 domestic plants and 3 overseas
affiliates).
4. At the DIC Hokuriku plant, we have begun implementing
a management system that uses barcodes for the
management of raw materials and manufacturing
processes. System implementation will be completed
within FY 2011. This management system will allow us
to further improve product quality.
5. DIC Interior Co., Ltd. is working to improve quality
through “‘Ask Why’ Analysis”*1 efforts.

FY 2011 Initiatives
We are furthering quality coordination between business operations in manufacturing, sales, technology, and quality
assurance to ensure that the quality management system is being fully utilized at each manufacturing facility and business
operation. We are also conducting quality audits that include checking customer satisfaction improvement. We are also
conducting follow-up audits while continuously improving the preservation and effectiveness of the quality management system.
*1 “Ask Why’ Analysis”: A method of repeatedly asking “why” to avoid jumping to conclusions about the factors of a problem and to ensure the logical and complete
identification of factors in order to prevent problem recurrence.

37

Human Resources Management

Pursuing Higher Job Satisfaction
DIC takes an active approach towards ensuring that all our employees can exercise their full potential in jobs
suited to their abilities as we strive to build a satisfying work environment where each employee's work-lifebalance is been considered.
WEB

Respect for Human Rights●Respect for Human Rights and Elimination of Discrimination
Respect for human rights is a fundamental element of any
sustainable society. Through the DIC WAY Code of BusinessConduct, the DIC Group states in no uncertain terms that it will
eliminate all human rights violations in our corporate activities
and encourage mutual respect through the following tenets:(1) Respect for human rights, (2) Prohibition of forced labor, (3)Prohibition of child labor, (4) Prohibition of inhumane treatment,(5) Prohibition of discriminatory treatment, (6) Payment ofwages, (7) Management of hours worked, (8) Respect for therights of employees representing labor unions.

● Pursuing Deeper Trust between Labor and Management
DIC is working to foster trusting relationships throughinformation exchange via labor-management councils
and safety and health committee meetings at eachplant. We also discuss management information and
our Vision in labor-management councils, and havecandid exchanges of ideas between labor unions andmanagement.

Promoting Diversity*1● Global Human Resources Appointment and Training
In keeping with the global expansion of its business,
DIC is working to create a framework to appoint humanresources based on job content rather than nationality.
We have completed a number of efforts to acquire
highly-capable human resources and further develop
their skills since FY 2009 at Group companies in theSoutheast Asia region through initiatives that include HR
systems standardization, which we started in China, andmanagement training aimed at developing tomorrow's
top management. In FY 2010, we standardizedHR
systems at two companies in Indonesia. Going forward,
we will be bringing this standardization to Group
companies in Thailand as we work to create a personnel
database of human resources in the Asia/Oceania area
and create a systematic training program.

http://www.dic-global.com/en/csr/stakeholder/staff.html● Providing More Opportunities for Female Employees
DIC is working hard to provide more opportunities
for female employees in order to be a company whereanyone with the desire to can fully exercise theirabilities. Our efforts to expand roles for women in theworkplace include appointing more female employees
to traditionally male-dominated positions such as
salesperson or production operator. FY 2008 saw us
begin increasing the number of female production
operators at plants on a 3-shift system*2, and we now
have 2 such plants and 4 such offices. As part of our
network-building activities for female salespersons,female sales staff are also holding regular discussion
sessions. Going forward, we will be working to provide
ever more opportunities for women in a variety of roles.

Voice
Thoughts on the 8th Female Salespersons
Discussion Session* The 8th female salespersons discussion session was anopportunity for 17 DIC employees to passionately exchange
ideas in a panel discussion format with 5 female managers
in sales and purchasing segments at other companies.

Each panelists’ career histories, from starting out from a
new employee to a manager were totally different. Meetingwith those who have continued to work after getting
married and having children, I realized that if we havethe will and the flexibility to get help from those around,
we can balance both work and child-rearing. I was also
very motivated to see senior colleagues enthusiasticallyexchanging ideas with the panelists about work problems
and career building. This was truly a good opportunity toconsider how to work and plan my life in the future.
Specialty Resins Division
Leather Materials Sales Department

Naoko Tsurumi*1 Diversity: Drawing on the capabilities of all human resources in the company, regardless of race, nationality, gender, age, etc. to enhance the company's
competitiveness.
*2 3-shift system: A work system wherein workers take turns working 3 shifts a day in times of high demand.

38

Human Resources Management

Childcare Leave Program Participants(Number of Participants)

40
30
20
10
0

28

33

ʻ03

ʻ04

27

28

30

ʻ05

ʻ06

ʻ07

40

ʻ08

31

30

ʻ09

ʻ10 (Fiscal Year)

Inside the Control Room in the Production Department● Promotion of Employment of Persons with Handicapped

Work and Childcare Balance Support Programs

The employment rate of handicapped persons at DIC
was 2.0% in FY 2010, surpassing the legal minimum of 1.8%.
In order to continue to exceed the legal minimum, we will bemaking further efforts to prepare suitable work environments
and expand our local job placement office network.

Rules concerning We have devised certain rules to follow whenreturning to one’s returning to one's original (or equivalent)
previous position
position after leave.
(or equivalent)●Promoting Re-Employment Opportunities for Retirees
In 1991, DIC was one of the first companies to implement a
re-employment system for retirees. Re-employment is currently
available to those up to age 65, and we are maintaining proper
conformance with the Law concerning Stabilization of Employment ofOlder Persons. This system provides an opportunity for individuals toleverage their experience and demonstrate the advanced capabilities
and expertise they have developed throughout their career
Re-employment at DIC
Fiscal Year

No. of Re-employment

Rate (employed/ applicants)

41

87.2％

2007

43

95.6％

2008

94

92.2％

2009

84

88.4％

2010

99

97.1％

Measures to Achieve Work-Life
Balance
As part of our efforts to ensure that each employee
maintains a healthy work-life balance, and to build
a work environment where our employees—thecornerstones of the workplace and the company—candemonstrate their capabilities, we have made DIC’s“Work and Childcare Balance Support Program” oneth at m o re th a n s ati s f i e s
l e g a l r e q u i r e m e n t s. D I C
was designated a “FY 2008
certified employer” by the
Ministry of Health, Labourand Welfare in recognition of
DIC's proactive support forthe development of the next
Next-generation certification
mark “Kurumin”
generation.

Leave Program For the period between a child's birth and thefor Child-Rearing following 8 weeks, a male employee can takechildcare leave of up to 5 days.
Partners

Economic
Support System

Employees on childcare leave without pay
may borrow par t of their bonus, or may
obtain an in-company loan to pay for infertility
treatment or childcare facility costs.

Information
A detailed guide to these programs is posted
Sharing toPromote Program on our intranet.
Participation

Human Resources Management

2006Childcare While Work is shortened (by up to 3) hours or is instaggered shifts until the end of the child's
Working Program 3rd year in elementary school.

Voice
Promoting Expanded Employment of
Persons with Handicapped
In fulfilling our corporate social responsibilities, wehave devoted ourselves for many years to employing
persons with handicapped, who now enjoy positions
in a wide range of jobs and workplaces such as thosein administration, production, and technology. We willcontinue to coordinate with local job placement offices(Hello Work) and training facilities to expand these
employment efforts and create workplace environments
where people can work with peace of mind for the longterm.
General Affairs and Human Resources Dept.
Manager

Yoko Baba*1 FY 2008 certified employer: Companies are certified as childcare support companies by a Health, Labour and Welfare Minister when the actions they perform basedon action plans created of their own accord satisfy certain conditions with regard to preparing employment environments intended to support a balance between
employee work and childcare based on the Law for Measures to Support the Development of the Next Generation. Certified companies may indicate their status withthe "Kurumin" certification mark. DIC received certification in FY 2008.

39

Human Resources Management

Employment Opportunities andEmployee Development● A Performance-Based Employee Qualification System
In pursuit of workplaces that enable all employees to realize
their full potential and ensure that the efforts of employees are
fairly reflected in salaries, DIC has consolidated all of its employee
qualification systems. Promotions within DIC are determined once
annually and are based on the results of an objective assessment
procedure that includes a written test, essay, interviews, andpersonnel evaluation. This ensures equal opportunities foradvancement for all employees exhibiting initiative and skill.

● Fair and Impartial Compensation
Objectives-Based HR Evaluation System
In DIC, we believe that an important part of improving job
satisfaction is rewarding those who work hard. This means
properly evaluating ability and performance and ensuring
those results are promptly reflected in compensation. To
further heighten the transparency and legitimacy of our
HR evaluation system, we have adopted the "management
by objective (MBO)" concept. Based on objectives set atthe beginning of each period, each employee is evaluatedsemiannually. The evaluation results will be communicatedand disclosed to the employee, along with the reasons for
Employee Evaluation Process

CareerDevelopment Sheet

parts are implemented on the Intranet
Target setting, evaluation, feedback, fillingin career development sheets are implemented on the Intranet

Process
Evaluation

Execution of Duties

Interview

Individual Targets

DivisionTargets

Individual

Results
Evaluation

Supervisor

Semiannual Evaluation Annual Evaluation

Feedback

Bonuses

SalaryPromotion

Outline of Employee Training Curriculaum
I n p a r t i c u l a r, D I C 's G l o b a l - M i n d e d P e r s o n n e l
Development Training Program and Self-Development
Support Training have specific characteristics. Selfdevelopment support training is an optional program to help
interested participants autonomously develop their abilities.
The program sees active involvement from many younger
par ticipants and is
ex tremely impor tantin not only providing
employees necessary
workplace skills
but also in allowing
par ticipants to build
net works with each
During a Training Session
other.

Voice
Thoughts from a "Marketing
Course" Seminar ParticipantThis was the first marketing seminar I had evertaken. Though it was intended for people new
to marketing and covered only the basics, it
introduced me to new concepts and methods. I
thought the fundamental analysis methods andmarket research strategies such as SWOT and
KFS would be particularly useful for me in setting
research and development targets. The seminar
was also very valuable as a trigger to make me
consider more deeply consider how to satisfy thecustomer.
Polymer Technical Department 2

Appropriate Assignment*2

those results. We also utilize evaluation results to further
develop our human resources.

Hiroki Tokoro

Skill Development*1 MBO: Management By Objectives and self-control*2 Career development sheet: includes information about an employee's skills and qualifications, training history, desire to be transferred, and process evaluation results.
Evaluation results are used in individual development.
*3 Self-development support training: includes correspondence courses, in-company seminars, and e-learning and video library courses.

40

Harmony with the Community and Contribution to Society

In Pursuit of a Colorful, Comfortable Life
Based on the Guidelines for Social Contribution Activities established in FY 2009, the DIC Group is promoting
harmony with local communities and society and advancing our activities to build a strong relationship withsociety.
WEB

Harmony with Society through Spirulina● Spirulina Project Beginning in Earnest
The DIC Group recently signed a support agreementwith the Alliance Forum Foundation-an NGO active insupporting developing countries-to offer help in Africa
to eradicate hunger and improve nutrition through the
Spirulina Project.
Working with local NGO organizations* 1 in the
Republic of Zambia-the first nation to receive theChildren in Zambia Are Eating
Spirulina
I have been living in Zambia since the end of
February, 2011, working on the Spirulina project.
In a village neighboring Lusaka, our developmentof a recipe using Spirulina has led to the creationof a porridge with pumpkin leaves that is quite
popular. From there we began adding spirulina to
the children's food at AIDS orphanages run by KaraCounseling, an NGO. They now have no problem
eating their porridge, so we nutritional balance toimprove. We plan to test the actual effect of thisSpirulina diet in the future.

● Spirulina Dietary Education in Japan
DIC Lifetec Co., Ltd. has devised a dietary education
program using Spirulina, which it is teaching to 5th and 6th
graders at two elementary schools in Tokyo's Chuo ward. The
program has been successful in raising the students awarenessof Spirulina and the very concept of food through microscopic
observation and extraction of Spirulina pigments (which areblue), the natural colorants
in sweets. The experience
heightened children's interestin the topic and prompted
many to announce ideas suchas "I want to develop a new
Spirulina Dietary Education Class
sweet using Spirulina!".

Voice
Finding a New Appreciation for Spirulina
By creating a story to use for a dietary education
class for elementary school students and thenbecoming the instructor, I found myself becominginterested in and developing a new appreciation
for spirulina. Seeing for myself in class the wonder
and surprise in those children's sparkling eyes as
they thought about the future of spirulina made me
feel very keenly how important and rewarding thisproject was.

Alliance Forum Foundation

DIC Lifetec Co., Ltd.
Marketing Department

Junichiro Matsugami

Mihoko Miyasato*1 NGO organizations: The Programme Against Malnutrition (PAM), an NGO specializing in rural development, and Kara Counseling, an NGO providing
suppor t for HIV countermeasures in developing nations.

41

Harmony with the Community and Contribution to Society

Comment

support-we have been working to improve nutrition
by rationing Spirulina to educational facilities for 5to 6-year-olds since May 2011. We are also awaiting
permission from the Zambian government to begin on a
project to measure the impact of the Spirulina supplies.
Through these activities, we will also be contributing to
the Millennium Development Goals (MDGs) that are partof the UN Global Compact.

Human Resources Management

Spirulina Porridge Breakfast

http://www.dic-global.com/en/csr/society/Harmony with the Community and Contribution to Society

During the Lab Lesson

Lab Lessons for the Next Generation
DIC participated in the Ministry of Economy, Trade andIndustry's (METI) Teacher Education Support Project*1, where in
January and February we conducted a lab lesson entitled "Making
Life Colorful through Science” for 5th and 6th graders at 4 public
elementary schools in Chiba Prefecture, namely, Nishimisaki
Elementary in Tateyama City, Oikawa Elementary in Otaki
Town, Matsugaoka Elementary in Matsudo City, and Makizono
Elementary School in Ichihara City. The goal of this course wasto allow its participants to experience the role and function ofcolor in daily life and the close connection between scienceand our lives through a curriculum carefully devised by speciallyselected staff that included experiments involving planography
and simple pigment synthesis. The course won high acclaim fromthe schools and some of the education committees expressed
the desire to have these courses continue in the next term. In
addition, students who participated in the course developed agreater interest in color, an interest they later told us they still had.
While METI discontinued this program at the end of FY 2010, DIC
considers lab lessons such as these to be an important activity inconnection with "Harmony with the Community and Contribution
to Society", one of our CSR themes. We will therefore exercise
our unique corporate characteristics to continue such activities
independently.

Voice
Teaching Lab Lessons
Witnessing the children's enthusiastic reactions
throughout the lesson and experiments reallymade me feel how meaningful this special action
program was. Creating a curriculum that utilized
our company's core technologies took time, but I
hope more children became interested in science
because of these lessons.
DIC Graphics Co., Ltd.
Ink Materials Division

Tomoyuki Watanabe

Color Universal Design is Changing
Teaching Materials at Elementary Schools
In the DIC Group, we are working to develop colors and color
combinations that can be recognized equally by more people. We recently
had a chance to teach the utilization of universal design*2 at elementary
schools nationwide. Working with us on the project was Shingakusha Co.,
Ltd., an educational material publisher and a company with a long historyof developing a variety of mostly compulsory educational materials that
seek to enhance academic performance and enthusiasm for learning.
Using FY 2011 teaching materials, DIC Color Design, Inc. conducteda seminar that improved participants' understanding of how people see
color differently depending on color vision characteristics. Throughout theyear, the company oversaw activities that included color format creationand color correction. The seminar was a result of sharing the same
mindset throughout the editing, design, sales and all other segments,
and was arealization of
Shingakusha's
passion forcontributing toour children's
future.

Shinpan

40 Mangoku or more

Fudai

25 - less than 40 Mangoku

Tozama10 - less than 25 Mangoku

Area where the Japanese
government directly governed

Maeda (Kanazawa)Ii(Hikone)
Tokugawa (Mito)

Edo
Tokugawa (Wakayama)

Tokugawa (Nagoya)

0

200km

Figure from social studies test of lementary school:
Map of Daimyo placement

Comment
Consider Everyone's Perspective, andEnrich the Classroom Every Day: A Lab
Lesson Instructor's Message to Students
At Shingakusha, we focus first and foremost on creating
materials easy for students to use. We try to realizematerials that will help learning and improve academic
performance. Through these efforts in conjunction with
DIC aimed at re-evaluating color in teaching materials, wewere able to get students to consistently and objectively
rethink the role of color in making learning interesting.
Shingakusha Co., Ltd.
General Manager, Editing Department,
Elementary Education Division

Keiji Jindo*1 Teacher Education Support Project: A project aimed at fostering a deeper interest in science for children and developing future researchers and engineers, andproviding support in conducting science lessons that connect real society with science learned in elementary school, ended at the end of FY 2010.
*2 Universal design refers to design facilities, products, and information so that anyone, regardless of culture, language, nationality, age, gender, ability or disability, canuse them.

42Harmony with the Community and Contribution to Society

Kawamura Memorial DIC Museum of Art

Regional and Overseas
Activities● Changing Our Name and Promoting Local Initiatives-- Kawamura Memorial DIC Museum of Art(Participating schools: Azumadaini Junior High School, Sumida
Ward Bunka Junior High School, Sakuragaoka High School,
Higashimurayama 7th Junior High School, Oshiage Elementary
School, AOTO Lower Secondary School, Kokugakuin Kugayama
Junior High School, and Fujimi Junior & Senior High School)

On April 1, 2011, the name of our museum waschanged to the Kawamura Memorial DIC Museum ofArt. Just as DIC is a company committed to providing
color and comfort, as indicated in our Management
Vision, our museum is committed to sharing with the
public at large our cultural heritage rich in the color andart that has been passed on to us. This name change
will be the first step of our mission to achieve ourManagement Vision and improve DIC brand awarenessas we pursue our activities with renewed effort.
A School Visit from President Sugie● Contributing to a More Abundant Lifestyle● Being Active with School Visits
DIC is also participating in special action programs
held by the Japan Business Federation, Japan Committee
for Economic Development, and other economic groups.
President Kazuo Sugie made visits in person to relate
his experiences to students at various elementary, juniorhigh, and high schools as part of the "Committee for the
Promotion of Exchange among Schools and Corporate
Executives" program run by the Japan Committee for
Economic Development, of which Mr. Sugie is President.

● Support for Dayan Elementary School in
Guangdong Province, China
Harmony with the Community and Contribution to Society

The Kawamura Memorial DIC Museum of Art houses
some 1,000 works of art in a wide range of genres
ranging from 17th-century works to 21st-century pieces
from living artists, and we frequently put our collectionsof representative pieces on display. We also holdseveral exhibitions a year. One of the three exhibitions
we held in FY 2010 was the "Barnett Newman: Dialogue
between Man and Work" exhibition to celebrate our20th anniversary. In FY 2011, we will be hosting the"Moholy-Nagy in Motion: A Visual Experiment Lab" and"Abstract and Form (name pending)" exhibitions.

Dayan Elementary School, located in a mountainvalley in Qingyuan City in northern Guangdong Province,
is a public elementary school with 328 students and
11 teachers, and was founded in 1958. Suffering fromgeographical disadvantages and limited government
subsidies, classrooms and a basketball court are theschool’s only facilities.
At DIC Graphics (Guangzhou), employees built a libraryand filled it with books they donated or bought so that students could have more new knowledge to absorb. Schoolstaff also sought to improve physical education by donating equipment
for ball games.
T h e sc ho o l's
principal reported that theseef for ts greatly
increased students' interest
and enthusiasm
for sports.

Students Studying at the Library*1 Committee for the Promotion of Exchange among Schools and Corporate Executives: one of the Japan Association of Corporate Executives. The committee seeks topromote the "exchange among schools and corporate executives" that the JACE is conducting as a specific-action company and have corporate executives advancethe “development and education of people who will contribute to a vibrant Japanese society in the 21st century.”

43

Communication with Stakeholders*1

Promoting Communication and Information Disclosure
DIC strives to disclose information through various media and improve communication among ever more
stakeholders as it works to see everyone develop a better understanding of the DIC Group.
*1 We changed our CSR theme name in FY 2011 from "CSR Information Disclosure" to "Communication with Stakeholders."

WEB

Communications with Customers● Strengthening Communication through Exhibitions
Communication with customers is important, whether inproduct development or sales. Through our exhibitions and otherevents, we are working to build more connections with potential
customers to give them a deeper understanding of the DIC Group's
products and lines of business. In FY 2010 we set up our largest
exhibition space ever at "Tokyo Pack 2010", the biggest packaging
show in Asia. There we adopted an "Environment, Safety, andColor Expression" theme and presented DIC solutions to manypotential customers. We also held private shows for individual
customers in food packaging, canning and other segments,
presenting DIC's elemental technologies and new products topeople in a variety of industries. From February through March,
2011, we participated in the 4th International Photovoltaic Power
Generation Expo and the 17th Architecture Building Exhibition 2011
where we offered DIC solutions to those in the photovoltaic power
generation and architecture and housing industries.

http://www.dic-global.com/en/csr/stakeholder/reflected in our business management. DIC participated in
IR conferences and small meetings organized by securities
companies, as well as holding two operating results
briefings for institutional investors. We also organizedplant tours and briefings to explain growth products suchas TFT liquid crystals and pigments for color filters. In
addition, DIC further strengthened communication withoverseas institutional investors through participation in
IR conferences in Hong Kong, Singapore, New York,
London, and Edinburg. We are also bolstering information
provision initiatives through our website, posting of articles
to influential IR information magazines and participation in
events for individual investors.

Operating Results Briefing

Communication with
Communities and Society
The 4th International Photovoltaic Power Generation Expo

Communications with
Shareholders and Investors● More Event Participation and More Information Sharing
We strive to make fair, appropriate and timely disclosureof information, closely communicate with shareholders
and investors, and have their remarks and requests● Initiatives Aimed at Areas around Our Plants
As part of its Responsible Care activities, the Japan Chemical
Industry Association's RC Committee has organized town hallmeetings across the country to strengthen communication withpeople locally.
In February 2011, The DIC Komaki plant organized the 5th
Responsible Care Aichi Regional Town Hall Meeting at the Komaki
Kinro Center, where it presented its Responsible Care initiatives
to local citizens. Its presentations covered mainly safety (passing
on techniques through K-SHOW)*2 and eco-friendly products,*2 Passing on technique through K-SHOW: passing on techniques through training, using video to explain.

44

Communication with Stakeholders

DIC Digital Color Guide

also providing reports on matters such as energy conservation,industrial waste reduction, and local support activities (Oyamagawa
cleanup). The DIC Komaki plant focused especially on discussionof its production and development of environmentally conscious
products such as lightweight PPS for cars, low-VOC-emission
printing ink, and decorative sheets for de-plating products*1. The
plant also talked about the various problems it has related to theenvironment. After the meeting, the plant made time to answer
questions from local citizens and strengthen mutual understanding.

DIC's Newly Redesigned Global Website

Communications with Employees● Strengthening Communication through Global Systems
5th Responsible Care Meeting in Aichi Area

Needs of the Times
DIC is taking new steps to help people learn more
about the DIC Group. The redesign of our websites,
which began in 2010, was completed in May 2011.
Our global website provides content such as “A
5-minute introduction to DIC” and “DIC: Here, there
and everywhere.” Also online are our regional sites forJapan, China, the U.S., Asia/Pacific, and Europe, which
each provide detailed region-specific information about
the DIC Group's products. In another development, the
DIC Graphics Corporation began selling the DIC Digital
Color Guide in December, 2010. Free from Apple's iOS
App Store, this multifunctional color guide tool will allow
DIC's Color Guide to be used by even more people.

of DIC topics fromvarious depar tments
and plants. We have also
been issuing English andChinese versions sinceF Y 2 0 10 , p r o m o t i n g
information sharing
among our global staff.
SNS have also been
adopted in the DIC
G ro u p i n a n ef fo r t to
invigorate intra-company
communication.

[ DIC Plaza ]2011 Winterno.

Communication with Stakeholders● Contributing with Products That Satisfy the

DIC strives to stimulate communication with its
employees through a variety of initiatives and systems.
In FY 2010, DIC held its town hall meetings 33 times
to provide an opportunity for the president to speak
directly with DIC employees. We also publish a quarterly
publication called the DIC Plaza to share a wide range
63

English Version Second Issue

Special Feature

CSR Management of the DIC Group 2011
Part.1 Interview with Mr. Nakanishi, Executive Officer
Part.2 Initiatives for key CSR themes
Part.3 Message from the President and CSR topics

The English Version of “DIC Plaza”*1 Decorative sheets: sheets onto which designs or patterns are printed or vapor-deposited before being further processed. Integrating these with thermoplastic resin
achieves a color and feel not possible by painting molded parts.

45

2011 CSR Report

Third-Party Opinion
The Japan Research Institute, Ltd.
Chief, Head of ESG Research Center

Eiichiro Adachi
Conducts industrial surveys and corporate evaluations in connection with corporate social responsibility
focused on measures to address environmental problems. Provides financial institutions with corporate
information to be used for socially responsible investment (SRI) and environment-focused financing.
Involved in the publishing of "The 15th Corporate White Paper-Market Evolution and CSR Management"
as a member of the "Market Evolution and Corporations in the 21st Century" working group organized
for the KEIZAI DOYUKAI (Japan Association of Corporate Executives). Currently a member of the ISO
26000 JIS Promotion Committee under the Japanese Standards Association (was Japan expert for
the ISO 26000 working group until May, 2009). Author of such books as "An Introductory Guide toEnvironmental Management" and "Environmental Problems Illustrated for Businesses."

In last year's “Third-Person Perspective,” I discussed

topics it will report based on "materiality evaluations" it has

the need to (1) not only set objectives and ensure that they

conducted from the perspectives of what stakeholders andare achieved, but seek new challenges each year, (2) share

DIC, respectively, consider important. If DIC can also provide

more information about overseas initiatives, (3) focus on

information on the processes it went through to determine

what is important given individual business characteristics,

what to report, reported information will likely carry more

(4) maintain regard for biodiversity and increases in chemical

weight with investors.

substances released into the environment, (5) be thorough in

It is regrettable that environmental emissions of chemical

disclosing results of initiatives in the supply chain, and so on.

substances in the domestic DIC Group in FY 2010 saw such

It seems in reading this year's report that much progressa large increase. The reason given was "VOC combustion

has been made in disclosing overseas CSR initiatives.

device malfunctions", but more details here would be

Through the "Voice" pieces from DIC employees andwelcome. There are still those who would like to see safety"Comment" pieces from those outside the company, it

re-evaluations and risk evaluations for chemical products. At

was very clear that DIC Group projects and CSR programsthe very least, I hope DIC will enhance its measures aimed

have achieved global scale. The fact that DIC became aat reducing emissions of chemical substances into the air,participant in the UN Global Compact in December, 2010

water, and soil.

is a clear declaration of DIC's intent to make regard forFurthermore, the procurement of many raw materials in

the global environment and human rights an even bigger

the DIC Group is reliant on petroleum resources. Yet, despitepart of its business management as a global chemicals

the fact that the impact on business will be considerable

manufacturer.

should supply of these resources become a concern, there

Improvement has also been seen from the perspective

was no mention of how DIC would fulfill its responsibilities

of "Materiality". Special topics focusing on how DIC has

in such an event. The DIC Group states that the basis of"achieved revolutionary reduction in energy usage for LCDs

its CSR is the "the fulfillment of its social responsibility

using pigments that allow for outstanding screen brightness

to contribute to the development of society through its

despite less-bright backlighting" and "decreased CO2

business activities". However, I believe it may not be clear foremissions during transport by making food tray decorations

every reader of this report just what the DIC Group means

as thin as possible to make them lighter" paint a clear pictureby the "development of society". I will be looking forward toof how DIC's technologies are benefiting society. At theseeing the issues mentioned here addressed in next year's

beginning of this report it states that DIC has decided on thereport.

I thank you for granting me the opportunity to provide a third-party perspective-and from my perspective as one who provides corporate
information to financial institutions for the sake of socially responsible investment-on the social and environmental activities, and the ideal
method of disclosing this information, of the DIC Group as understood through this report. Please note that comments expressed here are notintended to provide judgment concerning whether or not the data presented in this report has been measured and computed in accordancewith criteria generally accepted as fair and appropriate for the preparation of environmental reports, or whether or not this report has, withoutomission, covered all important matters.

46

Data Compilation

Table 1 Environmental Costs (Investments and Expenses)(Millions of yen)

Investments

Scope

Category

Expenses and Rate

1. Costs incurred through activities aimed at minimizing theenvironmental impact generated within the business area through Costs related to preserving air and water quality, or maintaining
or improving waste disposal and recycling activities
production and sales activities (costs within the business area)

257

3,583

Cost of pollution prevention and global environment conservation

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

55

2,085

Main items

Operating/maintenance expenses related to activities aimed at curbing air pollution (421), global warming(651), water pollution (880), soil pollution prevention expenses (62) and other expenses Investments in air
pollution prevention activities (13); water pollution prevention activities (2); and other investments (2), other

Resource recycling costs

Costs related to energy conservation and internal andexternal waste disposal

Main items

Operating/maintenance expenses for activities aimed at reducing energy and resource consumption (292), water consumption(20) and waste disposal (759); expenses related to the obligatory recycling of used merchandise (0.6), and other expenses
Investments in activities aimed at reducing energy consumption (85), waste disposal activities(3) and other investments

Breakdown

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

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

Main items

Environmental education expenses (2), personnel/administrative expenses (124), ISO maintenance expenses(20), environmental impact measurement and monitoring expenses (41) and other expenses

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

Expenses and investments related to the development of productsthat 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 (11), fees to external organizations (103), Expenses related
to environmental improvement, afforestation, and preserving nature (112), other

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

Environmental clean-up and other expenses

Main items

Levies on lake development (10) and other expenses

202

31%

1,498

Note 1

469

4%

359

7,204

63%

142

140
1%

Total DIC Group (domestic)

0

10

782

11,406100%

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*Scope of the data gathered for Tables 1, 2 and 4 are those of the domestic DIC Group companies and for Table 3 DIC only.
*The period covered is between April 1, 2009 and March 31, 2010.

Table 2 Economic Effects of Environmental Conservation Measures
Contents of the Effects
Income earned by waste recycling
Treatment cost reduction through waste recycling
Cost reduction through energy conservation

212
169
166
547

Table 3 Impact of Measures to Protect the Environment
Contents of the Effects

1. Impact of environmental protection
measures within the business area

2. Impact of upstream and downstream
environmental protection measures

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

FY 1990 (Base year) = 100

Base Indices

SOx emissions per unit of production

FY 1990 (Base year) = 100

Emissions of PRTR chemicals (revised list)of the FY 1999 level104
37
NOx emissions per unit of production
FY 1990 (Base year) = 100
99
COD emissions per unit of productionCOD emissions per unit of production FY 1990 (Base year) = 100
67
Energy used (calculated in volume of crude oil used) per unit of production FY 1990 (Base year) = 100
102
of the FY 1999 level
Emissions of solid wastes disposed of as landfill
0.7%
of the FY 1999 level
Target under DIC’s reduction plan
1.2%of the FY 2009 level
Fees paid for waste disposed of as landfill (FY 2010 actual payment base)111 million yen reduction
CO2 emissions realized as a result of modal shifts were 1,326 tons more thanwould have been the case with truck transport.

37% (Note 3)
1,326 t Reduction (Note 4)

Notes:
3. Studies were conducted on 462 PRTR class 1 designated chemical substances and 105 substances targeted for study by the Japan Chemical Industry Association(excluding class 1 designated chemical substances) and 1 substance group according to revisions to the PRTR (Pollutant Release and Transfer Register) Law in FY 2010.
4. 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 FY 200947

Data Compilation

Third-party Perspective

Total(Millions of yen)Amount<Contact>

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

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

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