JCIA Annual Report 2016 Reference Materials As a supplement to the contents of JCIA Annual Report 2016, this pamphlet introduces various data and initiatives relating to the activities of the Japan Chemical Industry Association.はPlease read it together with JCIA Annual Report 2016. Japan Chemical Industry Association
Contents
1-1 1-2 1-3 1-4 1-5 1-6 (Prevention of Atmospheric Pollution and Water Pollution) … 04 Environmental Protection (Prevention of Soil and Ground Water Pollution, PCB)  …… 05 Environmental Protection (Environmental Investment and Biodiversity)  ………………・ 06 Process Safety and Disaster Prevention 07 (Efforts to Prevent Plant Accidents) 2-1 2-2 Process Safety and Disaster Prevention (Response to Possible Large-Scale Earthquake)  -------------  08
Chemicals and Product Safety (Safety Assessment)  ..........  12 5-1 Chemicals and Product Safety (Information Supply) ・・・・・・・ 13 5-2 6-1 7-1
Dialogue with the Community 7-2 Members' Self-Assessment 8-1 Responsible Care Verification 9-1
Environmental Protection (Prevention of Global Warming)
| Reduction of Emissions of CO 2 and Four Alternatives to Freon ■ CO, emissions (10,000 tons/CO,): Energy source CO, emissions ■■ Estimated emissions in manufacture of HFCs, etc.: CO,e" emissions of four alternatives to Freon * CO e (CO, equivalent): Corresponding value of CO, emissions (%) 120 CO2 Emissions Index The “Commitment to a Low-carbon Society" activities by the Keidanren (Japan Business Federation) were launched in FY 2013. Compared with FY 2005, taken as the base year, CO 2 emissions have been reduced by 7,500,000 tons. Reduction of Emissions of CO 2 and Four Alternatives to Freon When the reduction of CO 2 emissions and the reduction of emissions in the manufacture of four alternatives to Freon(HFCs, PFCs, SF e , NF s ) are combined,emissions in 2013 were down 29% from the base years (= 100%). Nikkakyo Annual Report 2016 References
| Progress in Achievement of FY 2015 Target for Final Disposal Volume
| Final Landfill Disposal Volume

Progress in Achievement of FY 2015 Target for Final Disposal Volume In accordance with the Keidanren (Japan Business Federation) Voluntary Action Plan on the Environment (Section on the Establishment of a Sound Material-Cycle Society), JCIA has set a new target since FY 2011 (a reduction in final disposal volume by about 65% from the FY 2000 level by FY 2015) and is making efforts to achieve that goal. Industrial Waste Volume and Effective Resource Utilization Ratio Industrial waste volume in FY 2015 was 4,084,000 tons, down 43% from the level in the base year of FY 2000. We are also making positive efforts to encourage sorting and reuse. The effective resource utilization ratio (the ratio to the volume of waste discharged by effectively used resources) increased from 42% in FY 2000 to 67% in FY 2015. Final Landfill Disposal Volume The final landfill disposal volume in FY 2015 was 177,000 tons, down 20,000 tons from FY 2014 and down 72% from the FY 2000 level. Furthermore, as well as reducing the final landfill disposal volume, in accordance with legal revisions member companies are strengthening their verification of the proper disposal of waste by, among other things, the issuance, recovery, and verification of industrial waste manifestos and the inspection of final disposal sites.
| Emissions of PRTR Substances ■■ Atmosphere   ■■ Water  ■■ Soil
│ VOC Emissions
Emissions of PRTR* Substances In FY 2015 Emissions of PRTR substances amounted to 11,100 tons, a reduction of about 76% from the FY 2000 level. Because the number of designated substances increased following a revision of the law, the volume of emissions temporarily increased in FY 2010, but since then the downward trend has continued. Emissions into the atmosphere accounted for 93% of the total, and emissions into water areas for 7%. No emissions to soil were reported. * PRTR (Pollutant Release and Transfer Register): The PRTR system is designed to identify, collect and disseminate data on the amounts and sources of a variety of toxic chemicals released to the environment or transferred outside of facilities in the form of waste. PRTR Law: Act on Confirmation, etc. of Release Amounts of Specific Chemical Substances in the Environment and Promotion of Improvements to the Management Thereof
Emissions of Voluntary Surveyed
Substances
The emissions of voluntary surveyed substances was 19,000 tons, resulting in over 66% reduction compared to FY 2000. The breakdown of the emission quantities was 91% for emissions into the air and 9% for emissions into water areas. No emissions to soil were reported. Note) Change in the number of substances voluntarily surveyed by JCIA: From FY 2000 to 2009: 125 substances and 1 substance group* From FY 2010 to 2012: 105 substances and 1 substance group' From FY 2013 to the current: 89 substances and 1 substance group" * Chain hydrocarbons with up to 4 to 8 numbers of carbon atoms
VOC* Emissions
Member companies are making tremendous efforts to install equipment and improve processes for controlling emissions of VOCs. The VOC emissions in FY 2015 amounted to 27,500 tons, a 69% reduction compared with FY 2000 level, continuing a significant downward trend. * VOC (volatile organic compound): VOC is a collective term for a wide variety of volatile organic compounds that turn into gas and enter the atmosphere, including toluene, xylenes and ethyl acetate.
Member companies in Japan have significantly reduced their emissions of air and water pollutants. In particular, member companies not only comply with regulatory standards but also agreements with municipalities. They also set their own voluntary management criteria, which are more rigorous than government standards, to intensify their ongoing efforts to reduce emissions.
| SOx Emissions
│ NOx Emissions
│ COD Emissions

Soil and Ground Water Pollution
│ Reasons for Implementing an Investigation (Multiple answers allowed) ‖ Countermeasures against Contamination (Multiple answers allowed) Reasons for Implementing an Investigation Regarding soil pollution, member companies not only conduct surveys based on the Soil Contamination Countermeasures Act but also in many cases implement their own voluntary surveys and adopt necessary countermeasures if pollution is discovered. 100% Countermeasures against Contamination In FY 2015, 41 companies conducted surveys in 103 places, and 14 companies discovered pollution exceeding the standards in 19 places. When cases of pollution discovered before FY 2015 are included, 25 companies have implemented countermeasures against contamination at 37 places. 80% 100%
PCBs
Notes: 1. High-concentration PCB waste: Electric equipment, such as transformers and capacitors, that used PCB intentionally as insulating oil before the termination of PCB manufacture (before 1972). Insulating oil contains from about 50% to 100% PCB. 2. Low-concentration PCB waste: a general term for trace-level PCB waste (waste that unintentionally contains PCBs) and for waste containing PCBs at a rate of up to 5,000mg/kg.
State of Storage and Disposal of PCB Waste
State of Storage and Disposal of PCB Waste The actual results obtained from treatment of the PCB wastes are steadily increasing every year. Under the Act on Special Measures for Promotion of Proper Treatment of PCB Waste (enforced on July 15, 2001), companies were obligated to report on the state of storage and disposal of polychlorinated biphenyls (PCBs) to the prefectural governor and to dispose of PCB waste by July 2016. However, the decree was revised in December 2012, extending the deadline for the disposal of PCB waste to March 31, 2027. Compared with FY 2014, the recorded disposal rates in FY 2015 increased for both high-concentration PCB waste (from 82% to 88%) and low- concentration PCB waste (from 69% to 77%). 1-6
■ Consideration for Biodiversity in Procurement of Materials

| Reference Guidelines
Investment in Environmental
Measures
In FY 2015, investment for the installation and maintenance of environment-friendly equipment, such as energy-saving and CO 2 -reduction equipment, and for the development of environment-friendly products and technologies and so on remained at roughly the same level as FY 2014, amounting to ¥74.1 billion, or the equivalent of 0.39% of sales. Member companies are implementing planned investment in environmental measures and steadily linking that investment to sustained improvements in their environmental performance. State of Efforts to Preserve Biodiversity Regarding biodiversity, 47% of member companies said they were "already implementing" measures and 13% said they were "planning or considering" measures. Furthermore, about half of the member companies already implementing measures said that they took biodiversity into consideration in the procurement of materials.
Content of Efforts
Member companies are also aggressively promoting specific activities and activities in collaboration with external organizations, including tree planting and the conservation of forest resources, the conservation of river and ocean resources, the restoration of lost ecosystem parts in the vicinity or elsewhere, the installation of biotopes using green zones at plants, the preservation of water resources, and the protection of endangered species.
Reference Guidelines
In conjunction with the 10th Meeting of the Conference of the Parties to the Convention on Biological Diversity (COP 10) held in Nagoya in October 2010, Nippon Keidanren and others established the Japan's Biodiversity Initiatives based on Private Sector Engagement to promote the preservation of biodiversity by companies and launched the Japan Business and Biodiversity Partnership. About half of member companies addressing the issue of biodiversity take part in this partnership. Member companies that are working to address biodiversity issues use this Partnership's Guidelines and other guidelines as their standards. 0%
│ Accident Occurrences (Explosions, fires, leakage, etc.) The figures in the bars indicate the number of companies that submitted data.
Efforts to Prevent Plant Accidents
│ Main Targets of Review Countermeasures (Multiple answers allowed) Identification of potentially dangerous places, strengthening of inspections, and implementation of countermeasures; review of work standards and management standards; preparation of educational materials based on examples of accidents; strengthening of worker education; etc. | Reasons for Conducting Prior Plant Evaluations | Investment in Safety, Security, and Disaster-Prevention Measures Accident Occurrences The total number of accidents at plants in FY 2015 was 88, which was lower than in FY 2014, and the number of accidents at plants per company (1.06) slightly decreased from FY 2014. Efforts to Prevent Plant Accidents In response to the frequent outbreak of incidents at equipment in recent years, many member companies are reviewing and strengthening their plant countermeasures, work management countermeasures, and worker education and training. Prior Plant Evaluations and Management All member companies have prior evaluation criteria for plants. In FY 2015, 99% of member companies conducted prior plant evaluation. In 88% of the cases, the motivation was the new construction, expansion, or modification of plants. Breakdown of Safety and Disaster- Prevention Investment Amount Of the investment in safety and disaster prevention in FY 2015, the investment in "measures against aging of facilities" accounts for nearly half of the total. Investment in Safety, Security, and Disaster-Prevention Measures The investment in safety and disaster prevention in FY 2015 was 94.4 billion yen (up 7% from FY 2014) and the investment-to-sales ratio was 0.50% (up 5% from FY 2014). Member companies are implementing safety and disasterprevention investment in a planned and sustained manner.

| Self-Evaluation on Emergency Measures
Following the Great East Japan Earthquake, many member companies have undertaken reviews of their earthquake and tsunami countermeasures. Changes in review items surveyed in a questionnaire conducted immediately after the earthquake during the last four years are shown below, indicating that the state of preparedness for a large-scale earthquake has been steadily improving. | Implementation of Emergency Drills in the Event of a Tsunami | Seismic Diagnosis on Facilities and Reinforcement Work | Preparation/Revision of Earthquake Disaster Prevention Guidelines | Securing Internal and External Means of Communication | Securing Supply Resposibility Protection of Facilities against Tsunamis
Occurrence of Occupational Accidents │ Lost Time Injury Rate (LTIR) Number of lost time injuries LTIR = Total working hours (per one million hours) *Lost Time Injury rate: Indicator that shows the frequency
  of lost time injuries
| LTIR Trends
| Lost Time Injury Severity Rate* Trends Number of work days lost Lost Time Injury Severity Rate = Total work hours (per thousand hours) *Lost Time Injury Severity Rate: Indicator that shows the severity of occupational accidents
│ Overall Severity Rates

LTIR Trends
In 2015 LTIR for member companies and their contractors was lower than in the manufacturing industry as a whole and in the chemical industry as a whole, although the figure is hovering around the same level. Lost Time Injury Severity Rate Trends The severity rate of the member companies and their contractors in 2015 improved compared to 2014. However, further efforts for improvement by contractors continue to be needed. Number of Fatalities from Occupational Accidents The number of fatalities at member companies and their contractors significantly declined in 2015. Nikkakyo Annual Report 2016 References
Efforts to Prevent Occupational Accidents
| Review and Strengthening of Countermeasures │ Main Targets of Review Countermeasures (Multiple answers allowed) Specific Review Examples Promotion of risk assessment; strengthening of danger prediction; strengthening of measures for dangers inherent in the workplace, such as rotating objects; review and compilation of standards; implementation of safety-awareness education; etc.
State of Preparedness for the “Mandatory Risk
Assessment of Chemicals” Required by the Revised
Industrial Safety and Health Act
| Percentage of Member Companies dealing with 640 Substances which require Risk Assessment Assessment level of Usage status of 640 Substances | Readiness for the Risk Assessment Requirements (at present) Efforts to Prevent Occupational Accidents In recent years many member companies have been reviewing and strengthening their worker education and training, work management countermeasures, and equipment countermeasures. Furthermore, member companies have been actively investing in safety and disaster-prevention measures. (See section 2-1 Process Safety, Investment in Safety, Security, and Disaster-Prevention Measures.) State of Preparedness for the “Mandatory Risk Assessment of Chemicals" Required by the Revised Industrial Safety and Health Act The act to partially revise the Industrial Safety and Health Act (Act No. 82, 2014) was issued on June 25, 2014. Among the revised items in the Act was “mandatory risk assessment of chemicals," enforced in June 2016. We surveyed the current state of members' preparedness for addressing the requirements. Response to Distribution Accidents | Emergency Contact Arrangements for Distribution Accidents ‖ Mutual Support Partners for Emergencies (Multiple answers allowed)
| Emergency Drills with Mutual Support Partners (Multiple answers allowed) (%) Possession of the Yellow Card and Availability of the Container Yellow Card labeling system | Check of Yellow Card Use Introduction of Container Yellow Cards labeling system Response to Distribution Accidents In preparation for unexpected accidents, member companies implement emergency-response training for distributors. Almost all member companies have emergency-response manuals and have established 24-hour emergency-response contact networks. Mutual Support in Accidents and Emergencies Also, about 90% of member companies have established mutual support systems for emergencies involving combustible solids, liquids, gases, high-pressure gases, corrosive substances, and acute toxic substances. Emergency Drills with Mutual Support Partners Furthermore, about 90% of member companies implement emergency- response drills with mutual support partners. Possession of the Yellow Card* As a means of providing information to parties responding to emergencies, member companies have prepared and promote the carrying of Yellow Cards. *Yellow Card: A card for a driver containing necessary information for emergency response.

Prior Safety Assessment
║ Application of Prior Safety Assessment (Multiple answers allowed)
| Reasons for Implementing Prior Safety Assessment Management of Chemicals Based on Risk Assessment │ State of Introduction of Risk Assessment for Chemical Substance Evaluation Prior Safety Assessment All member companies implement prior safety assessment to specify the safety of chemical substances and evaluate their impact on the health of people handling them and the environment. Prior safety assessment is conducted not only by substance and inside the plant but also more broadly for transportation, use by the customer, disposal, and so on. Factors Covered by Prior Safety Assessment Prior safety assessment covers such factors as the health and safety of handlers, explosiveness and inflammability, and the environmental impact of emissions. Reasons for Implementing Prior Safety Assessment Almost all member companies implement prior safety assessment every year not only for the development, manufacture, and sale of new substances but also when existing substances are newly introduced or when methods of manufacturing, transportation, use, and disposal are changed. State of Introduction of Risk Assessment for Chemical Substance Evaluation A new initiative is the management of chemical substances on the basis of risk assessment. 96% of member companies have already incorporated risk assessment in their chemicals management, a significant increase from the 83% recorded in last year's survey data. Targets of Risk Assessment Risk assessment covers the entire lifecycle of chemical substances, from R&D and manufacturing to disposal.
Provision of Information on Products ║ GHS Compliance of SDSs in Member Companies
GHS* Compliance of SDSs in Member Companies While substances for which it is obligatory to provide Safety Data Sheets (SDSs) are stipulated by the PRTR Act, Industrial Safety and Health Act, and Poisonous and Deleterious Substances Control Act, almost all member companies also voluntarily issue SDSs for substances (products) for which there are no legal requirements. In their compilation of SDSs, most member companies endeavor to fulfill the obligation to make efforts to comply with GHS. * GHS (Globally Harmonized System of Classification and Labelling of Chemicals): A system to communicate hazard information on labels and Safety Data Sheets. The information provided is classified according to the type and severity of hazards of chemicals according to globally standardized rules.
GHS Compliance of Labeling in
Member Companies Regarding labeling as well, most member companies endeavor to fulfill the obligation to make efforts to comply with GHS. Understanding of Purpose and Use of Supplied Products Furthermore, from the perspective of Responsible Care, it is important to understand how your company's chemical products are being used and processed by customers and what products are finally made from them and delivered to consumers. Most member companies therefore make efforts to find out about usage by customers and so on.
| Status of Environmental Management Systems (EMSs) Certification | Trend in Adoption of Occupational Safety and Health Management Systems (OSHMSs) | Verification of System's Establishment (Multiple answers allowed)
| Global Reporting Initiative
100% 100% ■ External Certification Acquired (Multiple answers allowed) Reference Standards for Self-Certification (Multiple answers allowed) Status of Environmental Management Systems (EMSs) Certification The introduction of Environmental Management Systems (EMSs) is steadily increasing: about 90% of the member companies have acquired some kind of EMS certification, such as ISO 14001, for their entire production sector (plants). Trend in Adoption of Occupational Safety and Health Management Systems (OSHMSs) The number of member companies introducing Occupational Safety and Health Management Systems (OSHMSs) is steadily increasing as well; the ratio of members with such systems is now 64%. Furthermore, the establishment of such systems is verified by the acquisition of external certification, such as OHSAS18001, or internal auditing with reference to the standards of such organizations as the Japan Industrial Safety and Health Association (JISHA). Global Reporting Initiative GRI (Global Reporting Initiative) is a non-profit organization whose mission is to develop globally applicable guidelines for global sustainability reporting. Companies have started to adopt sustainability reporting, including not only environmental but also social and economic dimensions, according to the indicators developed by the GRI.
Publication of Responsible Care
Reports
The ratio of member companies issuing Responsible Care Reports in FY 2015 was about 90%, almost the same as in previous years. If group publications are included, the ratio rises to about 100%. Publication of Site Reports More than 30% of the member companies issued local site reports. This trend has remained the same for the last few years. 60%

Contents of Responsible Care
Reports
Most of the reports carried the result of activities in the six main areas of Responsible Care, namely, environmental protection, process safety and disaster prevention, occupational health and safety, chemicals and product safety, distribution safety, and social dialogue. In particular, at a time when global environmental problems are attracting the attention of society, all of the reports carried the results of activities in the category of environmental protection.
| Implementation of Regional Dialogue Meetings

Other Community Activities
| Means of Communication (Multiple answers allowed) | Agenda Items in Discussion Forums (Multiple answers allowed) 100% Implementation of Regional Dialogue Meetings Responsible Care Committee holds dialogue meetings with local communities once every two years in areas where there is a concentration of member company sites, especially chemical complexes. Other Community Activities Besides these meetings, member companies endeavor to promote communication with the local community by participating in and supporting community events and volunteer activities, hosting plant visits for local residents and elementary and junior high school students, and giving lectures at schools and civic groups. In FY 2015, 79% of member companies created opportunities for exchange with local residents, and dialogues were conducted on a total of 790 occasions in 159 areas. Agenda Items in Discussion Forums The discussions often involved matters closely related to the local community, such as safety (accident- and disaster- prevention measures, etc.), pollution, chemical substances, and plant management (the construction of new facilities, site changes, etc.).
■ Details of Self-Assessment Scores (Average scores for all member companies based on a five-level assessment system)

Change in Comprehensive Assessment
| Management System | Environmental Protection | Process Safety and Disaster Prevention ■ Just about satisfactory ■ Unsatisfactory Details of Self-Assessment Scores (Average scores for all member companies) On a scale of 5, scores in the 4-point range were recorded for all of the important items in the categories of management system and occupational health and safety, showing that the PDCA cycle is rotating at a high level in these categories. In the category of environmental preservation, more efforts should be made to improve communication and operation management. In the category of process safety, enhanced communication is desirable. In the category of distribution safety, there are issues especially in the response to emergency situations. In the category of chemical product safety, the improvement of operation management is desirable. In the category of social dialogue, there are still many issues, such as objectives, education and training, and inspection and monitoring. Management System Regarding trends over the last three years, in the category of management system, the ratio of member companies replying "very satisfactory" or "just about satisfactory" has maintained a high level of over 90%.
Environmental Protection
In the category of environmental protection, the ratio of member companies replying "very satisfactory" or "just about satisfactory" has maintained above 90%.
Process Safety and Disaster
Prevention
In the category of process safety and disaster prevention, the ratio of member companies replying “very satisfactory” or “just about satisfactory” has maintained above 90% and on an upward trend.
│ Occupational Health and Safety
| Distribution Safety
| Chemicals and Product Safety
Responsible Care Verification
| Companies Undergoing a Responsible Care (RC) Verification Occupational Health and Safety In the category of occupational health and safety, the ratio of member companies replying "very satisfactory" or "just about satisfactory" has remained above 90%, and the ratio replying "very satisfactory" is now approaching 70%. Distribution Safety In the category of distribution safety, the ratio of member companies replying “very satisfactory” or “just about satisfactory" accounts for more than 80%. Chemicals and Product Safety In the category of chemicals and product safety, the ratio of member companies replying "very satisfactory" or "just about satisfactory" is almost 90%. Social Dialogue In the category of social dialogue, the ratio of member companies replying “very satisfactory” or “just about satisfactory" accounts for more than 70%. Companies Undergoing a Responsible Care (RC) Verification In FY 2015, 11 companies underwent a responsible care verification (10 for verification of reports and 1 for verification of actions). The total number of companies that have undergone an RC verification is 185 (140 for verification of reports and 45 for verification of actions). Verification of reports (10 companies): Sanyo Chemical Industries, Ltd., Daicel Corporation, Nippon Shokubai Co., Ltd., Asahi Kasei Corporation, Kaneka Corporation, Ube Industries, Ltd., JSR Corporation, Shin-Etsu Chemical Co., Ltd., Sumitomo Seika Chemicals Company Limited, and Nippon Soda Co., Ltd. Verification of actions (1 company): Nihon Nohyaku Co., Ltd.
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■ Contacts
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It is printed on paper certified by the Forest Stewardship Council (FSC) that contains ingredients from forests that are manages in an appropriate manner. JCIA Annual Report 2016 Reference Materials Japan Chemical Industry Association 7F Sumitomo Fudosan Rokko Building 1-4-1 Shinkawa, Chuo-ku, Tokyo 104-0033 TEL 03-3297-2555  FAX 03-3297-2615