Relations with Society / Environment and Safety Efforts
Our Action with Evolving,
Individualized Chemicals for
People and the Earth...
SHOWA DENKO CSR Report
2011
This Report has been edited as an annual report on non-financial information, presenting
efforts by the Showa Denko Group to contribute to the environment and society. This
Report is divided into the following four sections:
CSR Management; Social Commitment Report; Environmental Efforts and Safety Efforts.
For detailed financial information, please refer to the Financial Results and Financial
Statements.
http://www.sdk.co.jp/english/library/results.html
As for disclosure items, we analyzed our stakeholders' opinions and requests and
covered priority topics, focusing on action policies and performance in 2010 and giving
specific examples.
Please note that the website provides more comprehensive and detailed information on
Showa Denko Group CSR activities, including the latest information and environmental
and social activity reports for individual worksites.
Period covered by this Report
This Report covers information for the period January 1 to December 31, 2010, with
some information also provided for 2011. The term ”the year” as used in this Report refers
to the 2010 calendar year. The term ”fiscal year” as used in this Report refers to the period
from April 1, 2010, through March 31, 2011.
Organization covered
”Showa Denko” as used in the text of this Report refers to Showa Denko K.K., while
“Showa Denko Group” refers mainly to Showa Denko and its consolidated subsidiaries
in Japan. The financial performance data provided herein are consolidated figures for
the Showa Denko Group; environmental performance data are for Showa Denko K.K.
Where environmental performance data include figures for Group member companies,
the scope of applicability is noted for each category of data. Social performance data
provided herein represent information and figures for Showa Denko K.K. Information
on consolidated subsidiaries in Japan and abroad has been added to the sections of
Community Relations and Employee Relations.
Publication date
September 2011 (The next edition is scheduled for publication in July 2012.)
Guidelines/guidance referenced
• ISO 26000 (2010)
• Sustainability Reporting Guidelines 2006 (G3 Guidelines) from the Global Reporting
Initiative (GRI)
• Environmental Reporting Guidelines 2007 from the Ministry of the Environment of Japan
Prepared by
CSR Office, Showa Denko K.K.
13-9, Shiba Daimon 1-chome, Minato-ku, Tokyo 105-8518, Japan
Editorial policies
CSR Report 2011
Report Scope
SHOWA DENKO CSR REPORT 20112
Editorial policies / Report Scope ................................................................................. 2An Overview of the Showa Denko Group / Main products ........................... 4Top Message ........................................................................................................................... 6CSR Activity Report
CSR Management
Past efforts and Future policies and plans ................................................................................... 8CRS Achievements in 2010 and Issues ........................................................................................ 9Corporate governance .................................................................................................................10Risk management ........................................................................................................................12Responsible Care management ..................................................................................................14Responsible Care Activities Plan .................................................................................................16
Social Commitment Report
Relationships with our stakeholders ......................................................................................... 18Stakeholder perspectives ........................................................................................................... 19Employee relations ..................................................................................................................... 20Customer relations ..................................................................................................................... 24Shareholder and investor relations ........................................................................................... 26Partner relations .......................................................................................................................... 27Community relations ................................................................................................................... 28
Environmental efforts
Resource use and environmental impact ................................................................................. 32Environmental accounting .......................................................................................................... 33Climate change efforts ............................................................................................................... 34Reducing chemical substance discharge ................................................................................. 36Environmental considerations: Atmosphere, water, and, soil .................................................. 38Reducing waste and encouraging recycling ............................................................................. 40Biodiversity efforts ...................................................................................................................... 41
Safety efforts
Disaster prevention ..................................................................................................................... 42Occupational health and safety ................................................................................................. 44Chemical substances safety efforts .......................................................................................... 46
Third-party Verification /Assurance .................................................................... 48CSR Report 2011 Response to Third-party Verification/Assurance ......................................... 50
CONTENTS
SHOWA DENKO CSR REPORT 2011 3
An Overview of the Showa Denko Group (as of December 2010)
Major products by sector
Rolled Products Division, Extrusions/Specialty Products Division, Shotic Division, Heat Exchanger Division, Aluminum Can Division, Cooling Device Business Development DepartmentThe Aluminum Sector provides aluminum materials, including rolled products, extruded products, and forged products, as well as high-value-added fabricated aluminum products like heat exchangers and beverage cans.
Aluminum
The HD Sector provides the hard disks used as high-capacity storage media for computers, consumer electronics, and enterprise applications.
HD (Hard Disk)
Electronics Materials Division Rare Earth Division
The Electronics Sector provides compound semiconductors (e.g., ultrabright and high-output LEDs) and rare earth magnetic alloys for high-performance motors.
Electronics
Olefins Division, Organic Chemicals Division
The Petrochemicals Sector provides basic petrochemical products (e.g., ethylene, propylene) and organic chemicals derived from these products, including acetyls and allyl alcohol derivatives.
Petrochemicals
Functional Polymers Division, Chemicals Division
The Chemicals Sector provides wide-ranging products from industrial gases and chemicals, high-performance chemicals, and elastomers to high-purity gases and chemicals for the semiconductor industry and resin composites.
Chemicals
Ceramics Division, Carbons Division, Fine Carbon Department
The Inorganics Sector provides ceramic products (e.g., alumina, polishing materials, abrasives, and refractories) as well as graphite electrodes for electric steel furnaces and highly functional carbon products.
Inorganics
The Advanced Battery Materials Department provides lithium ion battery materials (e.g., anode materials, conductive additives and carbon coated aluminium thin films) and fuel cell carbon components (e.g., separators). The department also develops new products in the field of cutting-edge battery materials to respond to the ongoing technical breakthroughs in this area.
Advanced Battery Materials Department
Company name: Showa Denko K.K.
Head office location: 13-9, Shiba Daimon 1-chome, Minato-ku, Tokyo 105-8518, Japan
Number of Group member companies: 158
Consolidated business results:
Sales: 797.2 billion yen
Operating income: 38.7 billion yen
Net income: 12.7 billion yen
Total number of employees: 11,597
SHOWA DENKO CSR REPORT 20114
America
Showa Denko Carbon, Inc.
Showa Aluminum Corporation of America
Showa Denko America, Inc.
Europe
F2 Chemicals Limited
SHOTIC Europa Industria de Aluminio Lda
Showa Aluminium Czech s.r.o.
Showa Denko Europe GmbH
China, Taiwan, Korea
Shanghai Showa Chemicals Co., Ltd.
Shanghai Showa Highpolymer Co., Ltd.
Shanghai Showa Specialty Gases Purification Co., Ltd.
Showa Denko Scientific Instrument (Shanghai) Co., Ltd.
Zhejiang Quzhou Juhua Showa Electronic Chemical Materials Co., Ltd.
Lianyungang Zaoling Abrasives Co., Ltd.
Showa Denko (Dalian) Co., Ltd.
Grand Ocean-Showa Auto Air Conditioning (Dalian) Co., Ltd.
Ganzhou Zhaori Rare Earth New Materials Co., Ltd.
Baotou Showa Rare Earth Hi-tech New Material Co., Ltd.
Showa Denko (Shanghai) Co., Ltd.
Showa Specialty Gas (Taiwan) Co., Ltd.
Taiwan Showa Chemicals Manufacturing Co., Ltd.
Showa Denko HD Trace Corp.
Taiwan Showa Denko Electronics Co., Ltd.
Korea Showa Chemicals Co.
Other Asian countries
Showa Specialty Gas Singapore (Pte.) Ltd.
SHOTIC (Singapore) Pte. Ltd.
Showa Denko HD Singapore Pte. Ltd.
Showa Denko Singapore (Pte.) Ltd.
P.T. Showa Esterindo Indonesia
P.T. Indonesia Chemical Alumina
Eternal Showa Highpolymer Co., Ltd.
Showa Aluminum (Thailand) Co., Ltd.
Showa Denko Rare-Earth Vietnam Co., Ltd.
Showa Aluminum Manufacturing Philippines Corporation
Showa Denko HD (Malaysia) Sdn. Bhd.
· Tatsuno Plant· Sakai Plant· Hikone Plant
· Tokuyama Plant
· Oita Complex
· Isesaki Plant· Chichibu Plant· Kawasaki Plant· Yokohama Plant· Chiba Plant
Aluminum Technology Center (Oyama)
Corporate R&D CenterAnalysis & Physical Properties CenterSafety Evaluation Center
Head Office
Nagoya Branch
Osaka BranchFukuoka Branch
· Kitakata Plant· Higashinagahara Plant· Oyama Plant· Oyama Plant (Nasu)
· Omachi Plant· Shiojiri Plant
Overseas Sites
Sites in Japan■Changes in consolidated sales
■�Changes in consolidated operating income and ratio of operating income to sales
■�Changes in total number of employees
07 1008 0906
(Billion yen)
(year)0
200
400
600
800
1,000
1,200
(%)
07 10090806
102030405060708090
0-10
0
-1
1
2
3
4
5
6
7
8
(Billion yen)
(year)
Operating income Ratio of operating income to sales
0
2,000
4,000
6,000
8,000
10,000
12,000
07
5,304
6,025
08
5,510
6,246
09
5,115
6,449
10
5,496
6,101
06
4,933
6,251
(year)
(persons) OverseasJapan
■�Consolidated sales by segment
Petrochemicals
34.3%Inorganics
9.4%
Aluminum
22.8%
Chemicals
11.3%Electronics
22.1%
Europe
China, Taiwan, Korea
Etc. Asia
Corporate R&D Center (Kawasaki)Production Technology CenterEngineering Center
Note: Due to rounding, percentage figures for sales by segment may not total 100%.
For information on main Group companies in Japan, please go to the following http://www.sdk.co.jp/english/about/group.html
America
SHOWA DENKO CSR REPORT 2011 5
TOP MESSAGE
[Message delivered March 18 ]Look ahead and join hands, for yourselves and for the society. The social and economic impact on Japan of the Great East Japan Earthquake is extensive. The scale and depth of damage remain unknown. We must remain watchful. The Showa Denko Group itself suffered minimal direct damage to production and other facilities, but the effects on the supply chain were significant, ranging from procurement of raw materials, fuels, and electricity to production and sales. The saddest and most painful news was the death of our colleague of a Group company who was working at the ammonia distribution center in Soma, Fukushima Prefecture, to fulfill his duties when the huge tsunami struck. I express my sincere condolences for the loss of the life of a fellow employee.
I am proud that each of you returned so quickly to your duties and are working to restore business operations to restart Group operations, despite the strong anxiety generated by these devastating circumstances. I wish to express my deepest gratitude to each and every one of you.
Our production facilities located in the district affected by the earthquake halted operations immediately after the earthquake, due to shortages in electricity and equipment safety considerations. As the safety of equipment and other aspects was confirmed at each plant, production of the basic chemicals needed to ensure a stable supply of drinkable water, electric power and other energy, medicine, and food resumed from the 17th. In addition, we plan to resume operations at facilities in other business sectors as soon as we can confirm safety, a stable supply of electricity, and the supply of raw materials. The independent power production facility at the Kawasaki Plant resumed operations at the earliest possible date following the earthquake and began supplying power to the electric power company to help meet electric power shortfalls.
As described above, our Group is taking the first step to achieve recovery from the earthquake disaster, although prospects remain unclear. The Group resumed production of products after ranking various products by significance for social needs. These products are essential for the restoration of areas affected by the disaster.
Wewish to express ourheartfelt sympathies to thevictimsof theGreatEast JapanEarthquakeofMarch11 ,2011.Wehopefortheearliestpossiblerecoveryforallthoseaffectedbythistragedy.Wewouldalso liketoexpressourheartfeltappreciationforall thehelpandsupporttoJapangivenbythepeopleallovertheworld. The ShowaDenkoGroupestablished the emergencycountermeasureheadquartersatthemainofficeimmediatelyafter theearthquakeandstrove to identifyconditionsanddamagesatourplantsandtoconfirmsituationsandsafetyofouremployeesandtheirfamilies.MythoughtsonthisdisasterareexpressedinthefollowingtwomessagesdeliveredtoallemployeesoftheGroup.
[Message delivered March 14 ]
Let's be united groupwide to overcome this unparalleled difficulties and hardships. The mornig of the Day 4 after the earthquake has arrived.People in disaster-stricken areas continue to face extreme difficulties. I want to express my sincere condolences to the Group company employee who fell victim to the tsunami at the ammonia distribution center in Soma, Fukushima Prefecture.
Unless you have urgent business matters to attend to, I urge you all the employees of Group companies in the Tohoku and Kanto districts to stay home with your families for the next three days (14th through 16th), in light of potential strong aftershocks. To ensure safety, please act calmly.
We have made the decision to suspend operations at Group facilities located in the Kanto district and northward for three days to ensure safety against possible aftershocks and to reduce electric power consumption in response to the planned power outages.
We have also established the emergency countermeasures headquarters at the head office to assess conditions at all Group companies and to take appropriate countermeasures.
I ask you all the employees of Group companies for your understanding and cooperation to overcome these unparalleled difficulties.
With evolving, individualized chemicals, we contribute to create a society where affluence and sustainability are harmonized
SHOWA DENKO CSR REPORT 20116
I want all of you to be proud that our Group supplies products essential for the restoration of Japan's lifelines and, therefore, that we ourselves are of great service to society. At the same time, I want to ask all of you to do your utmost to restore our business activities. Employees at worksites and Group companies not directly affected by the earthquake will be asked to provide cooperation and support in various circumstances. I ask that all of you to unite to tackle this difficult situation.
I realize many of those engaged in restoration work have endured significant mental and physical burdens, with accumulating fatigue. Please remember that adequate rest is crucial to good judgment. I also ask that you take adequate precautions to ensure that you, your family, and your friends remain safe and in good health.
We must accept the fact that challenging conditions will remain for some time. Full-fledged recovery of the areas in the Tohoku and Kanto districts devastated by the earthquake will take time. In times like this, we must join hands and move forward. We hold our future in our own hands. Let's work to meet and overcome the ordeal we currently face.
TheShowaDenkoGrouphasbeencommittedtobuildingacompanythatcontributestothesoundgrowthofsocietythroughitsproductsandbusinessactivitiessincetheGroupestablishedanewcorporatestructurein2005,whereinCSRfunctionsasamanagementcornerstone. BecausethefundamentalmaterialsandpartsproducedbyourGroupareusedinupstreamprocessesinthemanufactureoffinalproducts, theyarenotvisibletogeneralconsumers.However,onceasocietyfacesacrisislikethecurrentone,werealizetheweightofresponsibilityformaintainingastablesupplyofproducts. The Showa Denko Group manufactures variousproductsandengagesinawiderangeofbusinessactivities.Immediatelyaftertheearthquake,however,weputpriorityon supplying products essential to the social lifelines:productsrequired toensureair,water,energy,andhealthmaintenance.TheseeffortsaresummarizedintheseparatelyeditedSpecialEditionofCSRReportentitled"OurCSREfforts:TowardRestorationfromtheGreatEastJapanEarthquake." This year, ourGroup launched a newmedium-termconsolidatedbusinessplanPEGASUS. Under thisplan, theGroup focuses twokeybusinessdomains,“Energy/Environment”and“Electronics”,withthegoalofestablishingan“evolvingchemicalcompanygroupwith individualizedproductstohelpcreateasocietywhereaffluenceandsustainabilityareharmonized.” This concept continues to apply, even after theearthquake.Weratherbelievewemustnowsharpen thisconceptatacceleratedspeed. The CSRReport 2011 describes our CSR activitiesconducted in linkwith thismedium-term consolidatedbusinessplan. PleasereadtheseCSRreportsandgiveusyourcandidopinions.
Hideo IchikawaPresident and Chief Executive Officer of Showa Denko K.K.CEO of Showa Denko GroupChairman of CSR Committee
SHOWA DENKO CSR REPORT 2011 7
Through the medium-term consolidated business plan PEGASUS, the Showa Denko Group, with its evolving, individualized chemicals, pursues the goal to “contribute to create a society where affluence and susutainability are harmonized.”As part of its CSR (corporate social responsibility) activities, the Showa Denko Group makes every effort to ensure that each of its employees undertakes Group activities in good faith and meets the expectations of Group stakeholders.
CSR Activity Report: CSR Management
The medium-term CSR plan launched in 2006 ends in 2010. Summarized below are the activities pursued
over the past five years. An overview of medium-term CSR policies and plans from 2011 is also provided.
[Summary of efforts from 2006 to 2010]
(1) Corporate ethics and complianceWhile activities to establish compliance structures and educational programs are advancing according to schedule, further improvements must be made with respect to response to unrecognized violations of laws and ethical awareness among organizations and individuals.
(2) General risk managementThe PDCA cycle (plan-do-check-act management system) for enterprise risk management has taken a firmhold in the company. The company has also invested heavily to achieve progress in long-term measures and in risk countermeasures.We will have the Group's PDCA cycle for enterprise risk management serve as the foundations for PDCA cycles applied to production activities, financial affairs, personnel and labor affairs, and response to legislation. We will address further integration and streamlining of these cycles.
(3) Dialogue with stakeholdersThe Group strengthened tools for communication with society and with communities by expanding the scope of its CSR Report and publishing the Report on our website. Other activities, including guided plant tours and education on chemistry and the environment, have improved mutual dialogue. In this area, efforts to continuously build mutual trust are the keys.We will focus on developing methods to communicate information on our CSR efforts in line with characteristics of each country, local community and our form of operation. Each worksite will pursue activities tailored to its specific locale.Other Group measures will seek to more clarify our course of action and strengthen each employee’s motivation and awareness regarding CSR.
CSR policies for the period from 2011 to 2015 are based on the results above.
[Policies for 2011 to 2015]Contributing to create a society where affluence and sustainability are harmonized
(1) All employees worldwide shall act in clear awareness of corporate ethics and compliance issues.
(2) Companywide general risk management shall function effectively at all levels at each worksite.
(3) Efforts will ensure effective mutual dialogue with stakeholders and establish mutual trust.
(4) Efforts will ensure compliance with guidelines for social responsibility (ISO 26000) and the reliable application of the PDCA cycle to core issues.
Basic action each employee should take: Good-faith implementation of the Code of Conduct and its Guidelines
The following page provides a summary of the plans and achievements in 2010 and plans for 2011 for each of the abovementioned items.
Past Efforts and Future Policies and Plans
CSR Management
SHOWA DENKO CSR REPORT 20118
◎…Fully achieved ○…Achieved 80% or more
2010 plans 2010 achievements Evaluation 2011 plans
Corporate ethics, compliance
● Responding to individual laws; education ● Improved response to antitrust law ● Improved account processing levels of
Group companies◎
● Reviewing and revising the Code of Conduct and its guidelines ● Expanding education on corporate ethics and compliance
● Extracting unrecognized risks ● Compliance risk follow-up ◎ ● Organizing compliance education system
● Providing ethics education through level-specific training
● Provided integrated education on CSR, corporate ethics, and compliance ◎
● Raising awareness through group discussions and e-learning ● Disseminating and promoting use of corporate ethics hotline
General risk management
● Thoroughly implementing general risk management
● Promoted risk response actions among sales personnel and other staff
◎● Simplifying and integrating various management systems (PDCA
cycles) based on general risk management
● Identifying unrecognized risks ● Extracted risks with checklists ◎
● BCP ● Incorporated countermeasure investments against major earthquakes in next medium-term business plan
◎● Promoting countermeasures to major earthquakes
● Extracting general affairs risks ● Risk measures pertaining to community relations strengthened
◎● Follow-up for extracted items
● Reducing overseas risks ● Began providing support for internal controls in China ◎
● Providing support for risk management and internal controls to overseas subsidiaries (including those in China and other Asian countries)
CSR dialogue with stakeholders
● Revising the content of CSR Report ● Issued digest version; posted full report on website
◎● Integrating stakeholder engagement (mutual dialogue)
● Issuing site CSR reports ● Issued reports of 18 worksites◎
● Setting KPI (key performance indicator) for CSR Report based on dialogue with major stakeholders
● Promoting risk communication
Customers, consumers
● Maintaining lines of communication with customers through business transactions
● Reducing complaints
● Continued improving quality assurance activities
● Reduced claims◎
● Maintaining dialogue with customers through business transactions ● Reducing complaints
Shareholders
● Promoting IR (promoting overseas IR) ● Promoted as scheduled ◎ ● Continuing activities to promote IR (promotion of overseas IR)
● Responding to SRI (socially responsible investment) movement
● Continued posting on SRI lists such as FTSE and MS ◎
● Continuing response to SRI ● Continuing response to SRI lists
Employees
● Promoting cooperation with labor union concerning CSR activities
● Continued dialogue with labor union ● Continued CO2 diet*1 activities
○● Examining and implementing new activities
● Promoting programs to support the career advancement of female employees
● Provided education and raised awareness ● Established thoroughly implementation and
application of child support policies ● Expanded career opportunities for female
employees
◎
● Promoting programs for the career advancement of female employees
● Human rights ● Expanded employment of handicapped persons
● Providing human rights education groupwide◎
● Strengthening human rights efforts as part of corporate ethics promotion
● Continuing groupwide human rights education
● Globalization ● Continued employment of foreign national employees
◎● Promoting globalization
Partners● Promoting CSR procurement ● Provided feedback to partners engaged in
self-assessments of CSR procurement ● Commenced CSR visits
◎● Beginning global CSR procurement
Local communities, society
● Promoting interactive communication ● Promoted community activities, including plant tours, classes-on-demand, instructor dispatch, and internships
● Addressing issues in link with general affairs risk reduction
◎
● Contributing to local communities through in-house resources: classes-on-demand, environmental education, plant tours, internships
● Promoting CSR and environmental public relations (inside and outside the company)
● Site or area CSR reports worldwide
CSR Managem
entSocial Com
mitm
ent reportSafety Efforts
Environmental Efforts
*1 CO2 diet : In 2008, the Showa Denko Group initiated carbon-dioxide diet efforts. The key point of these activities
is to have each employee declare his or her own efforts to reduce carbon-dioxide emissions and to
strengthen his or her efforts while keeping a monthly self-assessment log on the corporate intranet.
Progress on these efforts will proceed through labor-management cooperative efforts.
CSR-related Achievements in 2010 and Issues to Be Addressed
SHOWA DENKO CSR REPORT 2011 9
CSR Management
Corporate governance
Showa Denko works to ensure the soundness, effectiveness,
and transparency of its management and to continually improve its
corporate value. To this end, the Group is improving its corporate
governance*1 based on the following strategies:
• Strengthening compliance
• Strengthening management supervision and oversight functions
• Clarifying management responsibilities
• Rapid, effective decision-making and task implementation
• Strengthening the information disclosure system
Group management
While maintaining respect for the independence of affiliated
companies, the Showa Denko Group has established its Vision,
Code of Conduct, medium-term consolidated business plans,
management policies, and annual action plans. Group affiliates
undertake business activities in cooperation with sections in
charge of their businesses and report on the execution of their
business activities in accordance with Group management rules.
Risk management is carried out on a Group basis in
accordance with Group's risk-management rules. The Group
works to ensure thorough compliance throughout the entire
Group by establishing guidelines for corporate conduct based on
business type and conditions of affiliates.
Showa Denko auditors and internal-audit sections audit and
examine the performance of affiliates as necessary. In addition,
auditors work to ensure coordination with corporate auditors of
key affiliates in various ways, including periodic meetings.
The Corporate Vision and the Showa Denko Group Code of Conduct
In 1998, Showa Denko established a Code of Conduct,
which stipulates standards of behavior and basic goals for group
companies, executives and employees. Positioning the Code of
Conduct as the Group's principles for promoting CSR, we have
abided by the Code of Conduct since its establishment.
The Code of Conduct is now being revised in light of ISO 26000
(guidelines for social responsibility) published in 2010.
Corporate governance structure
Cooperation
Decision-making/supervision
Business execution
Business audit
Accounting audit
AuditAccounting office
General meeting of shareholders
Board of Directors
Management CommitteeR&D Committee
Corporate OfficersBusiness sectors
Internal Audit Office
President & CEO
Safety Measures Committee
Responsible Care Committee
IR Committee
Corporate Ethics CommitteeSecurity Export Control
Committee
Risk Management Committee
CSR Committee
Auditors
Guidelines for the Code of Conduct
Established in 1999, the Guidelines for the Code of Conduct
provide specific examples to make the Code of Conduct easier to
understand. The Guidelines were revised in 2005 and 2008 in line
with changes in social trends. Our employees use the Guidelines
to confirm that their speech and behavior is in compliance with the
Code of Conduct.
Aff i l iated companies have also established their own
Guidelines, based on their own specific circumstances.
Study began in 2011 on revising the Guidelines to reflect revisions
in the Code of Conduct.
The Showa Denko Group's VisionWe at the Showa Denko Group will provide products and services that are useful and safe and exceed our customers' expectations, thereby enhancing the value of the Group, giving satisfaction to our shareholders, and contributing to the sound growth of international society as a responsible corporate citizen.
Code of Conduct1. We will develop and provide useful and safe technologies,
products, and services to contribute to the sound growth of society.
2. We will observe the laws of Japan and of foreign countries in which we operate, abide by the company rules and strive to maintain the social order.
3. We will conduct business in Japan and abroad based on the principle of fair and free competition.
4. We will do our best to ensure safety and to protect the global environment.
5. We will make sure that we maintain good communications with the public, and disclose accurate information on our company in a timely manner.
6. We will respect human rights and create a cheerful and comfortable working environment.
7. We will act as a member of the international society and contribute to the development of the regions in which we operate.
http://www.sdk.co.jp/english/about/message/conduct.html
Corporate Governance
Board of Auditors
SHOWA DENKO CSR REPORT 201110
CSR Managem
entSocial Com
mitm
ent reportSafety Efforts
Environmental Efforts
*1 Corporate governance: In the narrow sense, this term refers to the relationship between the
shareholders and the managers of a company and the mechanism or structure of decision making
and business operations in the company. In the broad sense, it refers to the relationship between
the company and its stakeholders and is also related to the question, “For whom does the company
exist?”
*2 Responsible Care: “Responsible Care”is the chemical industry’s global voluntary initiative,
representing a commitment to work together to continuously improve the environmental, health and
safety performance of chemicals over their entire life cycles, namely, the development, production,
distribution, use, final consumption and disposal.
Management Organizations
Board of Directors
At Showa Denko, the Board of Directors is responsible for
important decision-making and supervisory functions, while corpo-
rate officers are responsible for business execution functions. The
Board of Directors consists of 8 directors, including one outside
director. Chaired by the Chairman of the Board, the Board both
determines the company's fundamental policies and considers
and makes decisions on matters stipulated in the Companies Act
and the Articles of Incorporation, in addition to decisions related
to key issues regarding the execution of business operations. The
Board of Directors also oversees each Director's executive ac-
tions.
Board of Auditors
Showa Denko employs an auditor system. The Board of
Auditors consists of five auditors, including three outside auditors.
Auditors attend meetings of the Board of Directors and other
important meetings within the company, offer opinions when
needed, and audit the execution of business operations, offering
suggestions and advice to ensure that the Company operates in
a sound manner. Auditors also seek to strengthen consolidated
Group management by enhancing the overall auditing of Group
member companies.
Corporate Officers
To ensure swift decision-making in the execution of business
operations and to invigorate such operations, Showa Denko has
adopted a corporate officers system.
CSR Committee
Showa Denko has established a CSR Committee at the
highest management level to oversee all management strategies
from a CSR perspective. Chaired by the President & CEO, the
CSR Committee's membership consists of members of the
Management Committee.
Management Committee and R&D Committee
Meeting weekly in principle, the Management Committee
consults and makes decisions on issues to be submitted to the
Board of Directors and on important general issues related to
company management. The R&D Committee deliberates and
makes decisions on important issues related to research and
development.
Business-sector structure
To clarify its system of responsibility for implementing business
operations, Showa Denko has adopted a structure based on
business sectors. To ensure thorough performance evaluations
that focus on results, we have also implemented a system for
evaluating the performance of business sectors.
Committees
Showa Denko has established a number of committees to
handle specific issues central to the undertaking of its business
operations. These include the Risk Management Committee, the
Corporate Ethics Committee, the Responsible Care*2 Committee,
the Security Export Control Committee, and the IR Committee.
Each committee conducts in investigations, research, and
deliberations related to its areas of responsibility.
Internal Audit Office
As an organization under the direct authority of the President,
the Audit Office performs internal audits. The Audit Office
investigates the status of execution of company business
operations, including those of Group member companies, and
verifies their accuracy, appropriateness, efficiency, compatibility
with Group management policies and plans, and soundness.
These measures also include assessment of internal control
over financial reporting as well as the planning, drafting, and
implementation of various steps to maintain and improve the
quality of such reporting.
Legal Advisor
Showa Denko works to ensure compliance with laws,
obtaining advice on legal matters from its Legal Advisor as
needed.
Accounting audits
Showa Denko works to ensure the soundness of i ts
accounting practices, undergoing periodic accounting audits by
certified public accountants.
SHOWA DENKO CSR REPORT 2011 11
CSR Management
Risk management
Showa Denko regards risk management as one of the most important aspects of company management. As such, the company seeks to improve, maintain, and promote its risk management system. The Company has established a Risk Management Committee to promote risk management groupwide. This Committee prioritizes risks that threaten company policies, plans, and the Group as a whole based on assessments of their potential impact and likelihood. It also provides support for promoting measures to circumvent such risks and to respond to them should they occur. Major topics affecting the entire Group are presented for discussion at the CSR Committee, where decisions are based on deliberations from a wide range of perspectives. In addit ion, specif ic r isks involv ing matters such as environmental protection, security and disaster prevention, chemical substances, quality, intellectual property, fair trade, export controls, and contractual agreements are managed through a system of prior examination and decision-making, in accordance with internal regulations. Actions taken in the event of emergencies, including accidents and disasters, are implemented as stipulated in the emergency situation action guidelines and other internal regulations.
In the review undertaken in 2010, we provided information on various cases to other workplaces within the Group to help identify risks from a broad-ranging perspective, including viewpoints not previously recognized. We also organized information on the progress in safeguards and countermeasures against major earthquakes, along with information on BCP efforts.
Risk management
Business Continuity Plan (BCP)
Since 2007, each business section has prepared its own BCP. After establishing a promotion structure and formulating basic policies, each section performs a business impact analysis (BIA) and takes other steps to identify key, high-priority measures. This is followed by process analysis, including identifying bottlenecks for priority measures and considerations of strategies and countermeasures. These activities are documented and implemented fully through training and drills.
The risk-management PDCA cycle
The Group has taken “r isk inventor ies” since 2007, assessing the importance of risks, proposing and promoting risk countermeasures, and implementing annual reviews to strengthen risk management. The results of these efforts are summarized and presented at meetings of the Risk Management Committee. The information is organized into specific topics to be addressed companywide. When necessary, cross-functional efforts based on these topics are implemented companywide. Examples of companywide efforts include preparation of the Business Continuity Plan (BCP) for the event of large-scale earthquakes and countermeasures against a new strain of influenza (H5N1) in 2007 and 2008, and responses to actual outbreak of new influenza (H1N1) in Japan and overseas in 2009.
Countermeasures against new influenza strains
Based on the basic plan for responding to new influenza strains (H5N1), established in 2008 as a fundamental policy for such measures, all Group member companies have prepared their own action plans and drafted specific countermeasures corresponding to various alert levels. Specific measures focus on steps to prevent employee exposure to new flu strains and the spread of such viruses and on the BCP. These measures are discussed in detail in action manuals and implemented firmly through training and drills. With the actual outbreak in 2009 of the new H1N1 influenza strain, we implemented these measures after ascertaining accurate information on various related issues both in Japan and around the world, based on plans developed for the H5N1 influenza.
Information Security
With the rapid growth of the internet, the quality and quantity of the information a company can handle and the speed at which it can do so have grown dramatically. At the same time, the risk of information-related crimes and accidents has never been higher, including the theft of personal information, leaks of internal company information, and unauthorized alteration of company
The risk-management PDCA cycle
Sector summaries Company summaries
Analyzing current conditions
Proposing countermeasures
Implementing risk countermeasure plans
Reviewing companywide tasks
Listing risks Implementing countermeasures
Assessing the potential impact
Management review
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websites. Showa Denko has established Basic Guidelines for Information Security, Information Security Regulations, as well as Personal Information Protection Guidelines, seeking to develop a system to prevent information security incidents and to minimize any resulting damage to its business while ensuring business continuity. We are also proceeding with activities intended to raise employee awareness through e-learning-based training. This will ensure a thorough understanding of these basic guidelines and regulations throughout the organization. As part of efforts to maintain the effectiveness of our information security systems, we take steps to prevent unauthorized access from outside the organization, to prevent information leaks, and to strengthen information security governance at each overseas Group member company. Especially in 2009, we strengthened measures to prevent infections by and the proliferation of computer viruses. As part of its BCP, Showa Denko in 2009 sought to secure stakeholders' confidence by enhancing the reliability of its information networks, establishing a system for allowing employees to work from home in the event of disasters, and enhancing its measures to protect information assets from various threats.
Corporate Ethics Month
Since January 2004, we have designated each January as Corporate Ethics Month. During Corporate Ethics Month, all Showa Denko Group executives and employees are encouraged to carefully review the Code of Conduct and its Guidelines and to reexamine his or her actions in that light. Each year, all executives and managers are required to sign and submit a declaration of compliance with the Code of Conduct and the corresponding Guidelines. From 2011, executives of Group companies are also required to sign and submit a declaration of compliance with the Code of Conduct and the corresponding Guidelines. Case-study-based learning continues as part of Corporate Ethics Month, drawing on the company intranet and other means. An e-learning program for managers, introduced in 2009, continues to provide required training for personnel promoted to management positions.
Compliance
The Showa Denko Group places adherence to societal norms and business ethics at the top of its management agenda and emphasizes compliance in all management activities. In January 2003, we established the Corporate Ethics Committee to ensure legally compliant management. Since 2005, we have strengthened compliance organizations and systems in each business sector and at each site. Other efforts include preparing lists of and ensuring thorough compliance with applicable laws and regulations. In 2010, we strengthened support for subsidiaries in China. In 1987, in the area of security-related trade controls, we established the Security Export Control Committee, which works to enhance compliance with these controls.
Security Export Controls
In 2009, the Foreign Exchange and Foreign Trade Act was amended for the first time in 22 years in response to changing conditions, including advancing globalization and growing importance of information technologies, as well as the increasing incidence of improprieties. In particular, in the area of technology exports, al l international transactions are now subject to regulations, including the provision of technologies from residents in Japan to residents staying overseas. Regulations have been tightened for transactions related to the buying and selling of goods involving their movements between foreign states, and the brokering of technology between foreign states. Corresponding penalties have also been increased. The Showa Denko Group will therefore review its own systems and internal rules to ensure even more rigorous compliance with security export controls. The Showa Denko Group strives to prevent illegal exports through careful, multistage inspections of all products and technologies targeted for export, focusing especially on the following major aspects of export control: 1) identifying whether the items are subject to export restrictions; 2) confirming the applications of the items to be exported; and 3) reviewing customers and consulting with the relevant authorities in case of doubt. Personnel in charge of export operations participate in in-house training programs, e-learning activities, outside training sessions, and practical skil ls certif ication exams to raise awareness of security export controls. Due to rigorous export control measures and efforts by the personnel concerned, there was no violation of the Foreign Exchange and Foreign Trade Act in 2010 with regard to our security export controls.
Corporate Ethics Hotline
Our Corporate Ethics Hotline serves employees of all Showa Denko Group companies. The purpose of this Hotline is to prevent or quickly correct violations of corporate ethics or of laws, regulations, or company rules. Under this system, employees can report any concerns directly to the Corporate Ethics Committee, through the company intranet or e-mail, telephone, or post. Anonymous reports are accepted, but measures are in place to ensure no disadvantages occur when employees provide names. Other measures also ensure employees filing reports receive feedback on the results and that this feedback is adequate. Since January 2006, in addition to their availability within the company, these services have been made available at outside law offices.
Tools for corporate ethics education
SHOWA DENKO CSR REPORT 2011 13
CSR Management
*1 15 Group companies which work together with Showa Denko in promoting Responsible Care
(as of June 2011): Tsurusaki Kyodo Doryoku K.K., Tokyo Liquefied Oxygen Co., Ltd., Showa Titanium
Co., Ltd., Shinshu Showa Co., Ltd., Showa Denko Packaging Co., Ltd., Showa Aluminum Can Corp.,
Showa Denko Sakai Aluminum Co., Ltd., Showa Denko Electronics K.K., Showa Denko Kenzai K.K.,
Union Showa K.K., Niigata Showa K.K., Showa Aluminum Can Recycling Center, HI-PACK CO., LTD.,
Showa Tansan K.K., and Clean-S Showa Co., Ltd.
Responsible Care Action Guidelines
Showa Denko enacted the Responsible Care Action Guide-
lines in March, 1995 as its corporate policy related to the environ-
ment, safety, and health and declared that it would implement
Responsible Care.
Since then, all business sectors of the Company have been
engaged continuously in the relevant activities under these Guide-
lines. These activities also are being expanded throughout the
entire Group.
In 2005 we signed the Responsible Care Global Charter,
which contains international
guidelines to Responsible
Care activities, declaring our
support for and intention to
implement Responsible Care.
Responsible Care promotion system
Responsible Care activities are promoted by the Responsible
Care Committee, throughout the Showa Denko organization and
throughout the Group.
As of June 2011, the head office, six business sectors (13
business divisions and 15 sites), three branches, the Corporate
R&D Center, and 15 Group companies*1 engaged in Responsible
Care activities.
In addition, as part of its efforts to strengthen the Group's Re-
sponsible Care activities, Showa Denko is expanding the scope of
such activities by ascertaining performance and providing on-site
guidance concerning Responsible Care for domestic and over-
seas Group member companies involved in manufacturing.
Furthermore, the Responsible Care Committee and the Risk
Management Committee were placed under the CSR Committee
to promote Responsible Care as a core element of our CSR ef-
forts.
Responsible Care management
Global Responsible Care Verification Certificate
Responsible Care promotion system Responsible Care Action Guidelines
Responsible Care Action improvement Guidelines
❶ Throughout the entire life cycle of chemical substances, we shall make our best efforts to review and improve business activities from the viewpoints of ensuring safety and health and protecting the environment.
❷ In manufacturing activities, we shall make our best efforts to reduce the burden on the global environment not only through conventional approaches to environmental protection but also through promotion of switching raw materials, energy conservation, waste reduction and recycling, and reductions in the release of chemical substances.
❸ In the development of new products and businesses and in the establishment, enlargement, and renovation of facilities, we shall undertake our best efforts to ensure safety and health and to protect the environment.
❹ We shall promote R&D and develop technologies that will contribute to the improvement of safety and health and to the protection of the environment. We shall also promote the marketing of alternative or new products.
❺ We shall investigate the effects of the products and materials we handle on safety, health, and the environment, and we shall encourage our employees to develop a deep knowledge of safe use and handling and provide our customers with such information as well.
❻ In overseas business activities, technology transfer, and international trading of chemical products, we shall give full consideration to ensuring safety and health and to protecting the environment.
❼ We shall comply with international rules and domestic laws and regulations and make our best efforts to cooperate with the relevant international organizations and both foreign and domestic regulators.
❽ We shall participate proactively in various activities related to environmental protection and make our best efforts to communicate with society and local communities to achieve better understanding and trust.
Security Export Control Com
mittee
President & CEO
Corporate Ethics Com
mittee
Aluminum
Can Recycling Prom
otion Comm
ittee
Accident Prevention Subcom
mittee
Secretariat (Environm
ent & Safety Office)
Responsible Care Planning Com
mittee
Safety Measures
Comm
ittee
CSR Committee
Risk Management Committee Responsible Care Committee
Occupational Health and Safety Subcom
mittee
Chemical Substances
Release Control Subcomm
ittee
Waste Reduction
Subcomm
ittee
Resource Saving/Recycling Subcom
mittee
Energy Saving/Global Warm
ing Issue Subcom
mittee
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*2 Third-party verification: This term refers to the verification of the information or data in
sustainability reports or environmental reports of a company or association when the verification is
conducted by an organization independent from the company or association in concern.
The PDCA cycle
The Showa Denko Group works to achieve continuous im-
provement in its Responsible Care activities through the plan-do-
check-act (PDCA) cycle of formulating Responsible Care activity
plans (plan), implementing these (do), auditing and evaluating the
results (check), and reflecting these via management review in the
next round of objectives and activity plans (act).
Auditing structure
The Showa Denko Group carries out the following audits at
each stage, to confirm that activity plans concerning Responsible
Care are implemented according to plans.
Self-auditing
Using checklists, the workplaces of Showa Denko and major
Group companies evaluate their own Responsible Care systems
and the status of its implementation, promoting continuous im-
provements by reporting to the Safety Measures Committee on
the results of these self audits and reflecting such results in objec-
tives and activity plans of the following fiscal year.
Workplace auditing
The Safety Measures Committee performs on-site audits of
the state of efforts at sites operated by Showa Denko and main
Group companies. The Committee also performs quantitative
evaluations based on the results of audits, identifying weaknesses.
Furthermore, it provides needed guidance and reports audit re-
sults to the Responsible Care Committee. The Responsible Care
Committee reviews these results and reflects them in company-
wide and groupwide policies, objectives, and plans.
At manufacturing companies within the Group, both in Japan
and overseas, other than the above companies, Responsible Care
efforts are subject to onsite checking of their status and to on-site
guidance.
Overall auditing
The Internal Audit Office audits the status of Responsible Care
measures throughout Showa Denko and reports on the results of
these audits to the Responsible Care Committee.
Third-party verification
Showa Denko has undergone third-party verification*2 in such
aspects as Responsible Care activities and the accuracy of data
collection. The content of this CSR Report 2011 has been verified
by SGS Japan Inc.
In the future, we will continue to draw energetically on third-
party verification to ensure continued improvements in our Re-
sponsible Care systems and in our performance.
The PDCA cycle
Continual improvement
Implementation
DInternal audit, evaluation of
results
C
Management review
Activity plans
PA
Formulating management policies and objectives
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Responsible Care Activities Plan: Achievements in 2010 and Targets for 2011Every two or three years, the Showa Denko Group establishes a medium-term Responsible Care activities plan, which is then
used as the basis for annual action plans during the period covered. All workplaces promote Responsible Care and draft detailed action plans based on the comprehensive plan, tailored to local conditions and circumstances. The following table lists the policy, plans, achievements, and ratings for primary activities undertaken in 2010, together with the policy and plans for 2011.
We will continue these efforts to achieve our goals.
Environmental conservation
2010 policy and plans 2010 results and progress Evaluation 2011 policy and plans
Environmental management
[policy] Zero environmental problems[plans]• Steady implementation and comprehensive awareness of Active Safty
efforts (utilizing checklists to prevent environmental problems)• Planning and implementing reductions in potential risks
• Target of zero environmental problems achieved by Showa Denko Group.
• Using checklists to prevent environmental problems• �Implementing risk reduction measures at each site
◎
[policy] Zero environmental problems[plans]• Steady implementation and comprehensive awareness of Active Safty
efforts (utilizing checklists to prevent environmental problems)• Planning and implementing reductions in potential risks• Responding appropriately to revised laws
Global warming initiatives
[policy] Achieving the unit energy consumption target of 80% or better
[plans]• �Creating energy conservation measures
• Unit energy consumption: 91.8% (compared to 1990 levels), down 0.3% from 2009
• Implementing regular reporting△
[policy] Continuously reducing unit energy consumption[plans]• Creating energy conservation measures
[policy] Achieving Kyoto Protocol targets by the Showa Denko Group
[plans]• �Implementing reduction plans at each site
• Greenhouse gas emissions: 20% reductions at Showa Denko, 19% reductions across entire Showa Denko Group (compared to 1990 levels)
• Implementing the plan to achieve Kyoto Protocol targets in promise period (by Showa Denko)
• 2009 unit energy consumption as designated shippers and reduction plans for 2010 reported to authorities
◎
[policy] Achieving Kyoto Protocol targets for the Showa Denko Group by itself; preparations for post-Kyoto Protocol
[plans]• Implementing reduction plans at each site
Reducing industrial waste
[policy] Achieving zero emissions[plans]• � Eliminating landfill waste through efforts such as more effective use of
sludgeShowa Denko: 1,900 t or less
Showa Denko Group: 3,100 t or less
• Landfill waste: 2,591 t (down 161 t from 2009) across Showa Denko Group; targets achieved
◎
[policy] Achieving zero emissions[plans]• Eliminating landfill waste through efforts such as more effective use of sludge
Showa Denko (two sites added): 2,200 t or lessShowa Denko Group: 2,500 t or less
[policy] Contributing to a recycling-based society[plans]• � Promoting recycling
• Chemical-recycling production: up 4% from 2009• Paper-recycling rate (head office): 85% (up 2% from 2009)• �Aluminum can recycling: Group participation rate 94%, with each
employee bringing in an average of 191 cans over a three-month period
○
[policy] Contributing to recycling-based society[plans]• Promoting recycling
Occupational safety and health
2010 policy and plans 2010 results and progress Evaluation 2011 policy and plans
Occupational safety and health
[policy] Zero lost-time and non lost-time injuries [plans]• � Enhancing safety strength of worksites and personnel• Addressing equipment and process deficiencies• Improving safety management levels (expanding attainment of
Occupational Safety and Health Management System accreditation)
• � Lost-time injuries in Showa Denko: one case (three cases in 2009), lost-time injuries in Showa Denko Group: One case (one case in 2009)
• Non lost-time injuries in Showa Denko: One case (three cases in 2009), Non lost-time injuries in Group companies: 0 cases (three cases in 2009)
• Rate of incidents resulting in lost-time injuries in Showa Denko Group: 0.14 (0.29 in 2009)
• Oita Complex, Shiojiri Plant, and Showa Denko Electronics K.K. win Accident-free Record Certification from the Ministry of Health, Labor and Welfare.
• Oita Complex and Ohmuta Plant of Showa Aluminum Can Corp.recognized by third-party safety awards
• Higashinagahara Plant, Shiojiri Plant and Kitakata Plant certified under the Occupational Safety and Health Management System (total of 11 sites now certified)
○
[policy]• � Zero lost-time and non lost-time injuries at each site• � Establishing the chemical industry’s strongest safety management system [plans]• Enhancing safety strength of worksites and personnel• Addressing equipment and process deficiencies• Improving safety management levels• Following up on special safety activities and strengthening measures
to prevent similar incidents
Security and fire prevention
2010 policy and plans 2010 results and progress Evaluation 2011 policy and plans
Equipment safety
[policy] Zero equipment incidents[plans]• � Holding and utilizing Active Safety study meetings• Enhancing the engineering change management system• Promoting voluntary safety initiatives
• Showa Denko: Two cases of leakage, one case of fire, one case of damage (one case in 2009)
• Group companies: Two cases of leakage, one case of fire (one case in 2009)
• Active Safety activities expanded to and implemented by affiliated companies and research facilities
• Function-specific personnel meetings (electric, instrumentation, machinery, process) planned
• Oita Complex: Certification as continuous high-pressure gas operation site renewed for fourth consecutive year
△
[policy] Realizing zero equipment incidents[plans]• � Thoroughly implementing Active Safety activities• Organizing and applying function-specific personnel meetings• Thoroughly implementing HRM*1 examination• Promoting voluntary safety initiatives
◎Fully achieved (100%) ○Achieved 80% or more △Achieved less than 80%(Numerical data without range indications apply to Showa Denko only.)
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2010 policy and plans 2010 results and progress Evaluation 2011 policy and plans
Occupational health
[policy] Zero work-related illnesses*2
[plans]• Enhancing sanitation management structure• Improving work environment and work methods
• Zero work-related illnesses
◎
[policy] Zero work-related illnesses[plans]• Enhancing sanitation management structure • Improving work environment and work methods
Health management
[policy] Promoting Showa Denko Group Health 21 Plan[plans]• Enhancing health support system• Mental-healthcare efforts at worksites
• Implemented preventive activities to reduce lifestyle-related diseases in accordance with Showa Denko Group Health 21 Plan
• Twenty-six sites, divided into five groups, presented examples of activities and exchanged opinions
• Policy for promoting Health 21 Plan activities for the next two years determined in general worksite meetings
• Promoted participation in third-party seminars for improving skills of public health nurses and other nurses
• Mental health care seminars planned by each worksite• Provided stress check sheets to employees during National Industrial
Hygiene Week
◎
[policy] Addressing common priority targets specified in Showa Denko Group Health 21 Plan
[plans]• Common priority targets(1) Preventing or improving incidence of lifestyle-related diseases (BMI,
blood pressure, fat, blood glucose)(2) Enhancing mental healthcare efforts (3) Reducing smoking rates• Effectively applying health management system
Chemical substance safety
2010 policy and plans 2010 results and progress Evaluation 2011 policy and plans
Chemical substance management
[policy] Zero accidents/incidents involving chemical substances or violations of chemical substances legislation
[plans]• Comprehensive implementation of compliance, education, and
management structures• Collecting, assessing, and providing safety information (REACH
compatibility, etc.)
• Zero accidents/incidents involving chemical substances or violations of chemical substances legislation
• Revision to GHS*3-compatible MSDS*4 promoted (completed for substances for which notification is required by Industrial Safety and Health Law)
• Chemicals Management Officer provided information on relevant legislation and follow-up training.
• Completed registration of substances under the REACH*5 regulations before deadlines for substances that must be registered by 2010
• Completed notification under the CLP regulation*6 before deadlines and amended CLP compliant labels and MSDS
◎
[policy] Appropriate response to revisions in domestic and overseas laws
[plans]• Comprehensive implementation of compliance, education, and
management structures• Collecting, assessing, and providing safety information• Establishing comprehensive chemicals management database
[policy] Reduced chemical emissions[plans]• Developing and implementing reduction plans for each worksite
• Emission of PRTR-listed substances: 316 t, up 35 t from 2009 (increased number of target substances due to legal updates)
• Emission of toxic atmospheric pollutants: 33 t, down 28% from 2009, target achieved
○
[policy] Reducing chemical emissions[plans]• Thoroughly disseminating information on PRTR revisions• Developing and implementing reduction plans for each worksite
Quality assurance
2010 policy and plans 2010 results and progress Evaluation 2011 policy and plans
Quality assurance
[policy] • Making products that offer total safety in use• No product accidents, no major complaints[plans]• Securing product safety (performing appropriate risk assessments for newly
developed products and specified products; ensuring compliance with inspection standards for products subject to absorption by or contact with the human body)
• Thorough quality control (setting and pursuing challengingly high target values to achieve significant reductions in customer complaints)
• Product safety secured and zero product accidents maintained by performing appropriate risk assessments for newly developed products and specified products and by ensuring compliance with inspection standards for products subject to absorption by or contact with the human body
• Customer complaints reduced by 30% (compared to 2009 figures) by setting challengingly high reduction targets and thorough implementation of corresponding measures
◎
[policy]• Making products that offer total safety in use • No product accidents, no major complaints
*1 HRM: High Risk Material
*2 work-related illnesses: Legally recognized work-related sickness by the Workers' Compensation Insurance Law. Appearing symptoms of illness caused by exposure to harmful factors under circumstances of employers' control.
*3 GHS: (Globally Harmonized System of Classification and Labelling of Chemicals) This is a system for classifying the hazards and toxicity of chemical substances according to certain criteria, reflecting the results on labeling and MSDS, and using these to prevent accidents and protect human health and the environment.
*4 MSDS: (Material Safety Data Sheet) This is a document provided by the supplier to the user (customer) of a chemical substance, covering such matters as its name, toxicity, and physical/chemical properties; cautions concerning its handling and storage; and emergency measures.
*5 REACH Regulation: EU Regulation on Registration, Evaluation, Authorization, and Restriction of Chemicals
*6 CLP Regulation: EU Regulation on Classification, Labeling, and Packaging
SHOWA DENKO CSR REPORT 2011 17
The Showa Denko Group places great emphasis on continuous dialogue with customers, shareholders, local communities, raw materials and service providers, and our employees and their families. We believe the relationships of mutual trust we have established with these stakeholders are critical assets of the Showa Denko Group.
Social Commitment Report
CSR Activity Report: Social Commitment Report
Customers
We strive to ensure satisfaction with Group products and services, thereby securing our customers' patronage.
Local communities and authorities
We strive to ensure that local communities and authorities have confidence in the safety and stability of our operations.
Employees and their families
We strive to provide rewarding worksites in which employees and their families can take pride.
Shareholders and investors
We strive to ensure satisfaction with Group performance and continued shareholding.
Business partners
We strive to maintain mutually beneficial relationships based on trust in transactions with the Group.
お客様株主・投資家様
パートナーの皆様社員およびご家族
地域・行政の皆様
お客様株主・投資家様
パートナーの皆様社員およびご家族
地域・行政の皆様
お客様株主・投資家様
パートナーの皆様社員およびご家族
地域・行政の皆様
お客様株主・投資家様
パートナーの皆様社員およびご家族
地域・行政の皆様
お客様株主・投資家様
パートナーの皆様社員およびご家族
地域・行政の皆様
Each of us at the Showa Denko Group strives to build relationships of trust with our stakeholders.
Relationships with Our Stakeholders
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Stakeholder perspectivesThe Showa Denko Group communicates with its stakeholders in various contexts.
We believe it is important for us to review the Group's visions for the future with thorough understanding of our stakeholders'
expectations and concerns for the Group, which are identified through this communication.
The views of our stakeholders can serve as another yardstick for the Group to determine the priority assigned to various risk
management issues. Understanding the Group's issues from the perspective of our stakeholders helps us correctly prioritize
Group risk management issues and makes it possible for us to respond to stakeholder expectations with more rationales, thereby
permitting risk management in the broader sense.
Dialogue with stakeholders
Increased sales
Growing numbers of business
associates
SRI fund allocation
Improved fund-raising capabilities
Improved brand image
Improved reputation
Compensation
Loss due to business suspension
Loss due to property damage
Suspension of business transactions
Boycotts
Decline in asset value
Difficulty in finding new employees
Impaired fund-raising capabilities
Damage to corporate image
CSRActivities to maintain and improve corporate value by
responding to stakeholder expectations
Risk management (in the narrow sense)Activities that safeguard corporate value by focusing on actions
that prevent damage to stakeholder expectations
Expanding over time
Expanding over time
Contributing to local communitiesActive information disclosure
Developing eco-friendly productsEnergy and resource conservation efforts
Preventing accidents that could cause damage to surrounding areas
Preventing production stoppages that could inconvenience many parties
Preventing product liability accidentsPreventing environmental contamination and
pollutionPreventing industrial accidents
Eliminating discrimination; safeguarding human rights
Preventing improprietiesPreventing misconducts
Preventing violations of the law
Expectations for the companyResponding to expectations...
Positive aspects
Negative aspects
Failing to respond to expectations...
Comm
unication
Corporatevalue
Consumers
Society
Customers
Shareholders
Partners
Local communities
Employees
Administrativeoffice
NPOs,NGOs
Impression, opinion Business, product Issue of interest Issue of concern Expectations for Showa Denko Other comments
CustomersThe plant is clean. I understood the processes. Technology, Quality Technology, Quality Technology, Quality
Very informative I understood the products. Cost, Competitiveness Cost, Competitiveness Cost, Competitiveness
Local residents
Very informative I had a detailed understanding of the business. Environmental efforts Environmental efforts Mitigating global warming I hope plant tours will continue to be offered in the future.
I’ve always thought chemistry was hard to understand. I learned chemicals are used all around us.Good I gained an understanding of
how Showa Denko works.Environmental conservation
Environmental conservation Environmental conservation
Employee families
The plant is clean. I had a detailed understanding of the business.
Employees, Personnel system It gave me a chance to see where my father works.
It was reassuring to see the careful consideration given to ensuring safety.Very informative I gained an understanding of
how Showa Denko works.
Authorities
Very informative I had a detailed understanding of the business. Environmental efforts Technology, Quality Environmental efforts
The site was clean and well-managed.I gained an understanding of how Showa Denko works. Chemical substances Chemical substances Chemical substances
Shareholders, investors
Good I understood the processes. Cost, Competitiveness Technology, Quality
The plant is clean. I understood the products. Environmental efforts Cost, Competitiveness
SchoolsVery informative I understood the processes. Employees, Personnel
systemEmployees, Personnel system Employees, Personnel system
Good I understood the products. Scale, Size Technology, Quality Technology, Quality
The information gathered will be organized by each worksite and by the entire Group and examined during reviews of our Group CSR
issues, improving our CSR performance and allowing us to incorporate these perspectives into our risk management activities.
Communicating with stakeholders
In 2009, we began gathering the opinions, comments, and requests from stakeholders visiting our worksites. Although we have not
systematized the information-gathering procedures, introduced below are some of the viewpoints expressed during these visits.
SHOWA DENKO CSR REPORT 2011 19
Social Commitment Report
Human rights policies and systems
The Showa Denko Group believes respect for human rights underlies all our efforts to realize the vision expressed in the following phrase: contributing to the sound growth of society.
Accordingly, the Group's Code of Conduct and its Guidelines makes the following declaration: "We will respect human rights and create a cheerful and comfortable working environment." We have also established a human rights promotion system that incorporates human rights activities as an integral part of efforts to improve corporate ethics and promote CSR.
Efforts to resolve human rights issues are reported and discussed annually by the Human Rights Committee. Policies for the next fiscal year are determined based on issues addressed in the previous year.
Last year, the Human Rights Committee took up matters related to human resource diversity, including career advancement for women, employment of non-Japanese employees and expanding job opportunities for handicapped persons.
We hold the annual Human Rights Promotion Conference, which consists of personnel in charge of human rights at each site, to share information on policies for the next fiscal year as deliberated on and approved by the Human Rights Committee. The Group also provides training for personnel in charge of human rights education to promote better understanding of human rights issues.
We will continue to address human rights issues with focuses on (1) respect for diversity; (2) promoting global initiatives; and (3) maintaining training to raise awareness of human rights issues.
Personnel system and training
The fundamental concept of Showa Denko's personnel system is to provide motivated and capable employees with opportunities to thrive, and to reward them appropriately in keeping with their contributions. Since the company and individual employees are bound on an equal footing by a contractual relationship based on the employment relationship, our goal is to build a win-win situation and to grow side-by-side.
Based on these fundamental concepts, Showa Denko operates a career-planning*1 system. This tool supports the efforts of employees to achieve autonomous and continual career development while helping the employees to consider what responsibilities they want to experience in the future and their own career goals.
Showa Denko has also established various systems, including a study-abroad program, support for foreign language study, and support for self-development, in addition to level-specific education and specialized training. These programs further proactive skills development among our employees. To further strengthen educational systems, we will examine and implement new programs from fiscal 2011.
Employee relations
Company appointment of trainees and transfer for development purposes Support for employees seeking to improve their skills on their own
Basic management training
Career training in second year after promotion to Class S
Overseas study assignment, study graduate schools in Japan (M
BA, law
school, accounting, research)
Specialized training by function
English-language education (TOEIC, foreign language program
for language study)
Self-Development Program
Education by correspondence
Career-planning systemDevelopment-based assignment and transfer
Eight years minimum
Year two
Year one
Six months
Entry
On the Job Training
Management qualification trials
Class S qualification trials
Class C selective trials
SHOWA DENKO Management School
Top Management Seminar
Management Leader Course
Professional Leader Course
Run-up Program
Finishing training
Follow-up training
Training on company entry
Basic technical-employee training
Basic clerical-employee training
Training themes
Showa Denko's training system
Since January 2011, I’ve been doing research to identify new battery materials at the University of Southampton, located in the south of England. I’m scheduled to stay here for two years.
Around half of the research staff come from countries outside the United Kingdom. In terms of national background, it’s a miniature version of the world. Everyone differs in the culture that forms the basis of their thoughts, and I’ve come to realize the importance of expressing myself in writing or speaking in my daily research activities so as to deepen mutual understanding.
When we first arrived, I found it a bit difficult to establish ordinary lives for myself and my family in this country. But after a half year here, I’ve come to see the positive things about Japan I hadn’t seen when I actually lived there. I’ve also come to realize some things we can learn from other countries.
My goal is to gain as many valuable experiences as I can in both my research and daily life. This will give me what I need to do my work from a different perspective when I return to Japan.
Research at the University of Southampton, United Kingdom
VOICE
Kanjiro SakoCorporate R&D Center, Research & Development Headquarters
(Toke Group 1)
Studying at the University of Southampton
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*1 Career-planning: Career-planning refers to plans intended to visualize and help achieve employee’s
own goals and ideals for the future
Recruiting and fostering globally competitive personnel
Recruiting and fostering globally competitive personnel is central to creating a chemical company with a distinctive presence in the global market.
Showa Denko has pursued recruiting activities on a global scale in recent years to provide an environment in which outstanding human resources can make full use of their abilities and capabilities, regardless of nationality. To that end, we hire not just foreign students graduating from universities in Japan, but university graduates in China and Thailand on a regular basis. These employees receive Japanese language training after entering the company and apply their advanced and specialized knowledge and skills in their work.
Showa Denko offers study-abroad programs as a human resource development support policy. Through short-term programs for learning foreign languages (e.g., English and Chinese), as well as two-year programs for research, investigation, and acquisition of advanced management knowledge, the company sends employees overseas based on specific planning.
Last year the company i n i t i a t e d a p e r s o n n e l development policy for full-time employees at subsidiary companies in China, with g roup t r a i n i ng sess ions for local employees at the management level.
Offering opportunities for diverse individuals to make full use of their abilities
Hiring and developing female employees
Showa Denko provides all employees, regardless of gender, age, or nationality, with opportunities to demonstrate their competence. It promotes a management policy emphasizing respect for employee diversity, with the goal of further vitalizing corporate organizations.
As part of these efforts, during the period from 2008 to 2012, Showa Denko intensively seeks to create opportunities for female employees in Japan on a non-consolidated basis to actively demonstrate their competence.
During 2010, the company continued to implement policies to actively employ and assign female employees to various positions, with the goal of supporting career/ability development, raising
awareness, and creating an environment that furthers diverse work styles.
Consequently, in Japan, the percentage of female employees at Showa Denko as of the end of 2010 rose to 8.1% (an increase of 0.8 percentage points from the previous year) on a non-consolidated basis and to 9.3% (an increase of 0.4 percentage points from the previous year) on a consolidated basis. On a globally consolidated basis, female employees accounted for 19.0% (unchanged from the previous year). The percentage of female managers continued to show a gradual upward trend, at 1.6% (an increase of 0.4 percentage points from the previous year) on a non-consolidated basis, 1.8% (unchanged from the previous year) on a consolidated basis in Japan, and 4.0% (an increase of 0.3 percentage points from the previous year) on a globally consolidated basis.
Showa Denko continues to foster a corporate culture that allows a diverse workforce, including women, to demonstrate their competence and capabilities.
Employing handicapped persons
In a bid to create workplaces where a wide range of individuals can work side-by-side, Showa Denko consistently employs handicapped persons and provides them with career advancement opportunities. Since 2006, the ratio of handicapped employees has consistently met the legal requirement.
By working with Public Employment Security Offices and special-needs schools, Showa Denko continues to address the development of job opportunities so that handicapped persons can make the most of their own individual abilities.
Change in the number of employees on consolidated basis (from 2007 to 2010)
17000
18000
19000
20000
21000
17000
18000
19000
20000
21000
17000
17800
18600
19400
20200
21000
17000
17800
18600
19400
20200
21000
17000
17800
18600
19400
20200
21000
6,025 6,246 6,4496,101
1,000
2,000
3,000
4,000
5,000
6,000
7,000
0
(persons)
07 08 09 10 (year)
5,304 5,5105,115
5,496
414
1,792
496
1,695
575
1,625
566
1,638
Total number of employees in Japan on consolidated basis
Number of female employees in Japan on consolidated basis
Total number of all overseas employees on consolidated basis
Number of overseas female employees on consolidated basis
Percentage of handicapped employees
(%)
0
1.5
2.5
2.0
06/6 07/6 08/6 09/6 10/3 (Year/month)
Showa Denko Legal requirement
10/6 11/3
Training session held in China for local employees at the management level
SHOWA DENKO CSR REPORT 2011 21
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Creating a comfortable workplace
Showa Denko believes that it is essential for its future
prospects to respect a work-life balance, encouraging employees
to work with vigor and enthusiasm, and in harmony with society.
As the first step to this end, Showa Denko is working to reduce
working hours. While the percentage of annual paid holidays taken
by employees is increasing from year to year, we will take various
measures, including a reexamination of work modes, to link these
efforts to further reductions in total working hours.
Change in working hours (per employee per year)
2,070.02,055.6 2,076.0
2,048.4
1,922.4
1,700
1,800
1,900
2,000
2,100
0
(hours)
05 06 07 08 09 10 (year)
2,055.6 2,080.2 2,063.2 2,054.4 1,969.3 2,019.2
Manufacturing industry average*Showa Denko (actual working hours)
* Based on data in the "Annual report on the monthly labour survey" published by the Ministry of Health, Labour and Welfare (by manufacturing industry, national survey, companies of 30 persons or more, and general labourers) Encouragement to use various available systems has
increased employee willingness to use them. In 2010, all eligible
female employees took childcare leave. More than 20 male
employees also took advantage of childcare leave.
These systems win high marks from municipalit ies. In
December 2010, in recognition of support for employees
seeking to work and raise children at the same time and other
achievements, the Showa Denko Chichibu Plant (Chichibu City,
Saitama Prefecture) won the incentive award in The 4th Warm
Childrearing Support Company Awards.
The company will continue to improve work conditions to give
all employees the opportunity to achieve harmony between life and
work.
Promoting a sound work-life balance
To support ways of working suited to diverse employee
lifestyles, Showa Denko has established the support systems
described below for both work and home life.
Main systems Description
Childcare leave
Eligible: Employees with one or more years of continuous service who live with dependent children of less than two years of age. Available through the day preceding the child's second birthday.
Family care leave
Eligible: Employees with one or more years of continuous service who have a family member requiring nursing care. Both short-term leave (30 days in total over a three-month period) and long-term leave (12 consecutive months or 12 months in total over a two-year period) are offered.
Shortened working hours for childcare/family care
Eligible: Employees with one or more years of continuous service and who have a child of preschool age or who are eligible for family-care leave. Eligible employees may choose to reduce standard working hours by up to two hours/day.
Cumulative leave
Eligible: Employees who have accumulated leave time (annual paid holidays carried over from year to year). Eligible employees may take leave to attend school events at day nursery, kindergarten, or elementary school until their child graduates elementary school, or to care for a child until the child graduates elementary school.
Child nursing care leave
Eligible: Employees with six or more months of continuous service who have a child who has yet to graduate elementary school. Eligible employees may be absent for up to eight days of work per eligible child per year.
(Portions in blue represent systems that exceed legal requirements in Japan.)
"The 4th Warm Childrearing Support Company Awards" ceremony
Kurumin certification mark granted by the Tokyo Labour Bureau in 2008
Annual paid holidays taken (per employee per year)
0
15.0
10.0
5.0
(days)
05 06 07 08 09 10 (year)
9.9 10.29.6 10.0 10.0
13.1 12.8 13.3
9.9
13.113.9 14.2
Manufacturing industry average*Showa Denko (actual working hours)
* The data of manufacturing industry average is extracted from the “General survey on working conditions” published by the Ministry of Health, Labour and Welfare.
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In April 2011, I took childcare leave for 23 days, from the sixth day after the birth of my second son up to the 28th day.
When my wife had our first son in September 2001, I tried to help as much as I could. I ended up getting in the way.
I learned from that experience and decided to take childcare leave so that I could share some of the physical and mental burdens assumed by my wife.
Since I work on rotating shifts, I consulted with my superior and colleagues about caring for my oldest son while my wife was in the hospital. All of them encouraged me to take childcare leave. I decided to do so.
During childcare leave, I saw a whole range of expressions on my son's face throughout the day in circumstances other than meal times: when I changed his diaper, when I tapped him on the back to make him burp after drinking milk, when I held him in my arms until he fell asleep, when he cried.
He wailed the first time I gave him a bath, but he eventually grew accustomed to this and appeared content. That made me proud and happy to be a father.
The leave seemed so shor t. St i l l , i t was incredibly valuable.
Taking childcare leaveVOICE
Hideki AbeCarbons Division, Inorganics Sector
Manufacturing Department (LNG), Omachi Plant
government and scheduled to end in fiscal 2010 has been
extended for two years (to 2012). Likewise, the Showa Denko
Group has decided to extend the Showa Denko Group Health 21
Plan for two years.
The following three items are set as the Group's common
priority targets:
(1) Preventing or improving conditions related to lifestyle-related
diseases (BMI, blood pressure, fat, blood glucose)
(2) Enhancing mental healthcare efforts
(3) Reducing smoking rates
Relations with the labor union
Showa Denko and the Showa Denko Labor Union have built
relations of mutual trust through years of dialogue. For both parties,
the fundamental policies of labor agreements are: (1) solving
problems through dialogue; (2) pursuing employment stability and
rewarding work; and, (3) improving working conditions by achieving
together both company growth and improvements in profitability.
Joint labor-management Responsible Care training (held in Sakai Plant in June 2011)
Mental health seminar for managers (head-office district)
Health class (Oyama Plant)
Gum disease prevention class (Higashinagahara Plant)
Mental and physical health
The Showa Denko Group encourages employees to maintain
and promote their own health and the health of their families
throughout their lives. This approach will help maintain a lifelong
capacity to work energetically.
Since 2005, the Group has promoted the Showa Denko
Group Health 21 Plan with a focus on safeguarding the physical
health of its employees.
To implement this plan, each site has set forth health targets
and promoted specific measures to improve employee health.
Based on the results of health checkups, each employee
has received health guidance and encouragement to prevent
or improve factors related to lifestyle-related diseases, such as
metabolic syndrome. Exercise and healthy diet seminars have also
been held to motivate employees to better take care of their health.
To ensure mental health and prevent mental health problems,
the Showa Denko Group has provided mental health seminars and
had employees perform self-reviews using a stress check chart.
The "Healthy Japan 21" project initiated by the Japanese
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Ensuring product safety
Observance of relevant lows and internal rules
To make it possible for customers to use Showa Denko Group
products in full confidence, product safety must remain a top-
priority issue.
With this in mind, we have established the Quality Assurance
and Quality Control Rules (see illustration below) as company rules.
The Rules are periodically reviewed and revised to bring them up
to date with current conditions. We abide by them in the same way
as we do laws and regulations pertaining to products.
These rules have been established to ensure the rational,
systematic implementation of product-safety activities through all
stages, including product design and development, commercial
introduction and manufacture, and sales, as well as after-sales
information management.
For products and ingredients that might be absorbed directly
or indirectly into or that come into contact with the human body,
such as raw materials for pharmaceuticals and cosmetics, we’ve
established effective systems to ensure the products we provide to
our customers are always safe. These include rigorous screenings
of products brought to market and mechanisms that require strict
compliance with specified procedures in the event of any change
in manufacturing conditions. These procedures thoroughly account
for the possible effects of changes on product quality.
The screening process does more than simply verifying
product safety: Screening committees and other organizations
also undertake thorough studies of potential risks associated
with each item and ways to avoid such risks. Corresponding to
various stages of product life cycle from design and development
to after-sales, these studies examine various aspects, including
the properties of each product, intended use, usage patterns, and
user characteristics and issues related to disposal.
Customer relations
Quality Assurance and Quality Control Rules
Product safety screeningProduct risk assessmentSafety tests
New-product launch proceduresQuality assurance capability screeningProcedures for changes in manufacturing conditions
Screening before concluding contracts and specificationsScreening of sales and PR materials
Management of after sale information
SalesAfter-sale
Design and development
Marketing and manufacture
Efforts to meet environmental and social demands
There is growing sentiment worldwide, particularly among
customers in the information technology, electronics and
automotive industries, to select and procure products with the
lowest possible environmental impact, based on the philosophy of
caring for the Earth through all stages of a product's life cycle, from
production, through use, and all the way to disposal.
The Showa Denko Group responds appropriately and in
good faith to meet customer requests to reduce the use of
harmful substances and to
reassure customers that the
Group's products do not
use or incorporate harmful
chemical substances subject
to regulations in the EU or
other regions. The Group
also responds in good faith to
CSR-related inquiries and surveys from customers.
Analysis & physical properties center
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*1 ISO (International Organization for Standardization) : A private-sector international specialist
organization established in 1947 to promote international standardization of products and services.
In 1987, it established the ISO 9000 series of standards on quality control and assurance; in 1996,
it began establishing the ISO 14000 series of environmental standards. The ISO 26000 standard for
social responsibility was announced in 2010.
Improving quality assurance and quality control levels
Quality management system (Quality control scheme)
Rather than a defensive approach to quality assurance that
seeks to prevent defects from occurring, the Showa Denko Group
implements a proactive approach in which customer satisfaction
constitutes the key to the Group's own satisfaction. The Group
does this by developing and supplying products that will satisfy our
customers.
Nearly all Group member companies have undergone
inspection and registration of quality management systems under
applicable international standards, including ISO*1 9001 and
ISO/TS 16949. These Group companies constantly strive to
improve the quality of their products and services by applying and
improving the effectiveness of their quality management systems.
Reducing complaints
To minimize problems for our customers, the entire Showa
Denko Group works to reduce the number of complaints received.
In 2010, we reduced customer complaints by an even greater
margin than we did in 2009.
We intend to promote the implementation of the quality
management system in order to achieve even greater reductions
in the number of complaints and maintain zero product-related
accidents for preventing any threats or damage to customers'
lives/health or their properties. We plan to seek to earn even higher
levels of trust from our customers and to further increase corporate
value.
Activities targeting improved quality management levels
The Showa Denko Group performs periodic audits groupwide
across business divisions and worksites to raise quality
management levels.
In 2010, we implemented vigorous audits at 53 sites,
identifying issues and providing advice on improvements. This
year's audits will continue to focus on increasing the effectiveness
of the quality management system.
In addition to annual periodic events such as training seminars
for internal auditors, presentations on quality assurance and
quality-control rules, and product risk seminars, we undertake a
wide range of other educational and training activities throughout
the year, including field seminars to improve the skills of internal
auditors.
Trends in annual numbers of complaints (With a score of 100 representing the number of claims in 2006)
0
20
40
60
80
100
Index (%)
06 07 08 09 10 Year (Covering Showa Denko K.K. only)
SHOWA DENKO CSR REPORT 2011 25
Social Commitment Report
Basic policy on information disclosure
Showa Denko believes disclosure and investor relations play a
vital role in deepening shareholder and investor understanding of
our approach to various issues, including corporate management,
business activities, and strategy, helping these stakeholders
accurately assess our corporate value. Our information disclosure
measures are based on the following policies:
1. We seek to communicate proactively with shareholders and
investors and to improve management transparency.
2. We strive to disclose information concerning Showa Denko in a
clear, fair, timely, and accurate manner to deepen understanding
of and trust in our company.
Communicating with shareholders and investors
Communicating with institutional investors and shareholders
We keep domestic institutional investors, analysts, and other
market participants informed in various ways, including meetings
to explain annual and semiannual financial results, net-conferences
for results announced for the first and third quarters, and meetings
to outline progress with management plans.
Overseas institutional investors and shareholders receive
English-language versions of our annual results and transcripts of
net-conferences, and other materials. In addition, several times
each year, the President and/or members of the management
team visit Europe, North America and Southeast Asia to report in
person on various issues, including Group business results and
management plans.
The company takes every
opportunity to participate in
individual interviews, small
group meetings and other
forums for interacting with
institut ional investors and
shareholders.
Communicating with individual shareholders and investors
Individual shareholders and investors receive Interim Reports
and Business Reports as well as announcements of semiannual
and annual results. Via our website, they also have access to
materials used in meetings in which results are announced, as well
as video and audio footage of such meetings. This information is
made available soon after the actual meetings. In another effort to
improve dialogue with individual shareholders and investors, we
have set aside an area of our website to respond to their IR-related
inquiries.
Nume rous i n i t i a t i v es
i n v o l v i n g d i a l o gu e w i t h
s t a k e h o l d e r s i n c l u d e
participation in seminars for
private investors hosted by
securit ies f irms and other
organizations.
Shareholder meetings
Showa Denko holds a regular general meeting of shareholders
each year at the end of March. In addition to invitations issued
around four weeks before these meetings, we post related
information on our website to ensure shareholders have enough
time to consider various proposals. We have adopted a system
whereby shareholders can exercise voting rights via the Internet,
allowing even greater numbers of shareholders to participate.
At the venue of the shareholder meetings, reports are
presented on a giant screen to make the proceedings as easy
to follow as possible. Issues discussed include progress on the
medium-term management plan and other business issues. Venue
space is also set aside to introduce some Showa Denko Group
products and technologies.
Shareholder and investor relations
Presentation on medium-term business plan for institutional investors and securities analysts
Presentation for private investors
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Partner relations
CSR procurement activities
The Showa Denko Group places great emphasis on
undertaking business activities based on a consideration of
society and the environment throughout the supply chain. In
2009, purchasing and procurement sections undertook CSR
procurement activities in compliance with the Showa Denko Group
CSR Procurement Guidelines in collaboration with our supplier
partners, a major stakeholder constituency.
Described below are some of our activities in 2010.
* New target partners to whom self-assessment forms were sent
in 2010
Forms sent to approx. 220 companies
Forms returned by approx. 150 companies
* Self-assessment forms returned in 2009 were compiled
and analyzed. The results were provided as feedback to
approximately 540 companies.
* After the start of the CSR visit program, Showa Denko personnel
visited 38 partners each year to confirm the state of mutual CSR
efforts through discussions.
The partner sites visited by our personnel reported on voluntary
improvement activities, indicating the steady expansion of CSR
procurement activities.
No follow-up activities were required to resolve CSR issues with
any of our partners, a feat in which we can take great pride.
Activities for 2011
We suspended business operations in the wake of the Great
East Japan Earthquake of March 11. In May, we resumed self-
assessments, CSR visits, and feedback activities after assessing
conditions at individual regions and companies.
With the support of our partners, we will continue to promote
the steady pursuit of CSR procurement activities.
Example of feedback information
20××年 ○月 △日
A工業株式会社様昭和電工株式会社
購 買 室
ご回答いただきました『自己診断』の結果を送付申し上げます。
今後の貴社のCSR活動の参考にしていただければ幸いです。
【全体の傾向】
・業種毎に集計いたしましたが、業種間に特筆すべき差異は見受けられませんでした。
・C.公正取引 と D.環境安全 は平均が低く、F.人権・労働 と G.情報セキュリティ
は平均が高くなっておりますが、設問および配点の特性によるものと思われます。
・H.社会貢献 につきましては、記述がある場合のみ加点しています。
【貴社の状況】
(※当欄では、各パートナーの状況についてコメントしております。)
ご協力ありがとうございました
『自己診断』の結果
0102030405060708090100
A.企業倫理・コンプライアンス
B.品質・製品安全
C.公正取引
D.環境保全
E.職場の安全・衛生
F.人権・労働
G.情報セキュリティ
H.社会貢献
全体平均
業種平均
貴社結果
SHOWA DENKO CSR REPORT 2011 27
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Class-on-demand at a local elementary school (Higashinagahara plant)
In November 2010, the Higashinagahara Plant held a class-
on-demand for the first time at a local elementary school. With the
cooperation of the Oita Complex and Office, the members of the
plant designed safe and enjoyable experiments to stimulate interest
in chemistry for 77 fifth-graders at the school and to deepen their
understanding of the Higashinagahara Plant.
The 18 employees, mainly personnel in charge of R&D and
analysis, held four morning classes, performing two experiments
for each of two topics: Gel Formation and The Three States of
Matter.
In the experiment on gel formation, a material called PAS, taken
from a paper diaper, was used to demonstrate water absorption
and discharge. For the talk on the three states of matter, the
instructor performed various demonstrations: striking a nail with a
banana exposed to liquid nitrogen; varying the size of a balloon
using liquid nitrogen; keeping soap bubbles afloat using dry ice;
and demonstrating how a reagent changes colors continually as a
result of chemical reactions.
The written descriptions of
their impressions of the class
later submitted by the children
indicate the exper iments
helped inspire an interest
in chemistry among many
children. The Higashinagahara
Plant will continue to hold the
class-on-demand as part of
activities to contribute to the
local community and to inspire
children.
Participation in "Chemistry Makes Our Dreams Come True," a summer chemistry experiment event for children
Showa Denko's Head Office and Analysis & Physical Properties
Center participated jointly in the "Chemistry Makes Our Dreams
Come True" chemistry experiment event for elementary school
and junior high school students held in the National Museum of
Emerging Science and Innovation ("Miraikan") in Odaiba, Tokyo, on
August 21 and 22, 2010.
Our company gave demonstrations based on the theme of
"Making candles from soap."
The participating children listened attentively to instructions
from staff members who served as teachers, then performed the
experiments in a spirit of great
earnestness. Staff members
were delighted to see the
happy faces of the children
when they had f i n i shed
making their candles.
This summer event was
initiated in 1993 as a joint
effort involving the chemicals
indust r y, academia, and
government. Showa Denko
participates as part of its CSR
activities.
Community relationsThe Showa Denko Group contributes to society by providing products and services and by making the most of the Group's
unique resources (technologies, human resources, facilities).
The Group participates aggressively in educational programs for children, who will assume leading roles in our future society. It
also contributes to local communities through demonstrations and lectures on chemistry and the environment, as well as guided
tours of the plants.
Chemistry Makes Our Dreams Come True: A summer chemistry experiment event for children
Class-on-demand provided by Higashinagahara Plant
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A new contest for the Hachiman Waterfront Festival helps generate a festive atmosphere (Chiba Plant)
The Chiba Plant participated in the annual Hachiman Waterfront
Festival held in May 2010 in Ichihara City, Chiba Prefecture. This
festival is planned and managed jointly by the town association
and companies to deepen exchange between local residents and
local companies and to revitalize the local community.
The Showa Denko Group established a children's booth. This
year, we set up an original LED roulette machine made by the
LED factory. Various prizes
were awarded to children,
based on the number of
"Win" tickets they collected.
Despite pour ing rain, the
booth attracted many children,
probably marking a record
high attendance.
The Ch iba P l an t w i l l
continue to promote active
dialogue in various ways with
the local community and
residents.
Offering the use of grounds to a Gunma baseball team composed of handicapped players (Isesaki Plant)
Gunma Atom is a baseball team based in Isesaki City
composed of handicapped players. From some six years ago, this
team has practiced every Sunday on the grounds located at the
Isesaki Plant site, a tradition that started with a person associated
with Gunma Atom who worked at the Isesaki Plant.
Gunma Atom captured the victory in the Kanto district
tournament in 2010 and went on to the national tournament.
Some team members were selected as members of the Japanese
team to participate in the Baseball World Series for the Physically
Challenged held in Kobe,
Japan, in November 2010.
L as t y ea r, l o ca l med i a ,
including Jomo Newspaper
and TV Asahi, v isi ted the
grounds to cover the team.
Players practicing on the grounds at Isesaki Plant
Showa Denko Group's booth at Hachiman Waterfront Festival
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Participating in RC (Responsible Care)
community dialogues in Toyama and Takaoka districts (Showa Titanium)
The fifth Responsible Care (RC) community dialogues for the Toyama and Takaoka districts organized by Japan Responsible Care Council (JRCC) were held in Toyama City in March 2010. This event was attended by 96 representatives from local governments, community associations, citizens' groups, and companies.
The RC community dialogues sought to promote an understanding of efforts for the environment, safety, and health and to respond to the concerns and questions of local residents. Showa Titanium Co., Ltd. announced it had achieved zero waste emissions in the process of becoming an eco-friendly company.
During the Q&A session, people inquired about the public relations activities of participating companies in the event of an emergency. The results of the questionnaire survey also indicated growing demand for information disclosure.
Showa Titanium plans to expand its annual factory tour program and hands-on learning events for elementary school children in the local area. It will also take active part in local events to achieve closer ties to the local community.
Fourth Niigata Minamata disease lawsuit settlement
In March 2011, a settlement was reached with plaintiffs in the fourth Niigata Minamata disease lawsuit filed in 2009.For other Niigata Minamata disease victims, Showa Denko is promoting response in accordance with the Law Concerning Special Measures for Compensation of Minamata Disease Victims and Resolution of Minamata Disease Problems, enacted in 2009.According to a court decision in response to the first lawsuit in 1971, Niigata Minamata disease (first revealed in 1965) was due to the release of methyl mercury in industrial wastewater from Showa Denko's then Kase Plant. This chemical bioaccumulated in shellfish and fish in the Agano River, which were then eaten by residents, resulting in mercury poisoning.
Outflow of organic compound from the Isesaki Plant
On July 1, 2010, an incident at the Showa Denko Isesaki Plant resulted in an outflow of phenol, an organic compound.We extend our heartfelt apologies and wish to acknowledge the concerns of local residents and other individuals.Due to a power outage caused by thunderstorms, the content of a reactor vessel used for synthesizing phenol resin leaked from the safety valve.Immediately after the incident, we notified local residents and took action to contain the outflow. We also undertook good-faith actions to aid residents affected by the outflow.In light of this incident, we have strengthened measures to prevent recurrence, including reviewing the equipment and operating manuals.
The president of Showa Titanium giving an opening address
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Aluminum can recycling activities
As part of its CSR (Corporate Social Responsibility) efforts, the Showa Denko Group asks employees and cooperative companies to collect aluminum cans for recycling. In fiscal 2010 (from April 1, 2010, to March 31, 2011), these efforts resulted in the collection of 6.2 million cans, equivalent to approximately 100 t of aluminum.* The revenue generated was donated to local councils active in social welfare, associations for the physically challenged, and other organizations and used to promote welfare activities in local communities.(* Calculations assume 1 can = 16.2 grams)
The raw aluminum used to manufacture aluminum cans can be obtained by melting and refining raw ore. Using aluminum
obtained from recycled cans cuts the electrical power required for production to as low as 3% of the power required for raw ore. The Showa Denko Group aggressively promotes aluminum can recycling not just to contribute to regional communities, but to help conserve energy and resources. As of the end of 2010, the employee participation rate was 94.3%.
Showa Aluminum Can Corp., a subsidiary, manufactured aluminum beer cans for the first time in Japan in 1971. The company initiated voluntary aluminum can recycling activities by employees ahead of others industry-wide in 1972. These activities have gradually expanded to involve the entire Showa Denko Group. These activities marked their 40th anniversary in 2011. We will continue to energetically pursue these efforts to contribute to the environment and to our local communities.
Higashinagahara PlantLightweight wheelchair donated to the Kawahigashi branch office of the Council of Social Welfare
Oyama PlantDonation of revenue to the Donguri Fund of the Oyama City Council of Social Welfare
Poster commemorating the 40th year of aluminum can recycling efforts
SHOWA DENKO CSR REPORT 2011 31
Recognizing environmental conservation as a high-priority management issue, the Showa Denko Group is committed to cutting emissions of chemical substances and reducing industrial waste generation to prevent global warming and other environmental problems. The Showa Denko management policy also includes safe, stable operations and thorough Responsible Care activities. All members of the Group work hand-in-hand to eliminate accidents and disasters.
Environmental efforts
CSR Activity Report: Environmental efforts
Typical environmental impact index at Group companies*5
2006 2007 2008 2009 2010
GHG emissions (kt-CO2) 494 456 429 406 435
Final landfill disposal (t)*6 1,715 1,540 1,341 1,120 201
Emissions of JCIA PRTR-listed substances (t) 76 68 90 69 62
Resource use and environmental impactThe diagram below summarizes the resource use and environmental impact associated with the operations of Showa Denko
and its Group companies.
To reduce our impact on the environment, the Group is currently pursuing the efforts described below.
*1 Greenhouse gases (GHGs): This term refers to atmospheric gases that have greenhouse effects. GHGs emitted in large volumes by human activity cause global warming. GHGs include carbon dioxide, methane, nitrous oxide, and chlorofluorocarbons. Infrared light radiated from the earth’s surface releaes heat brought by sunlight into outer space. GHGs trap this infrared light, resulting in higher atmospheric temperature.
*2 Emissions of toxic atmospheric pollutants are included in emissions of PRTR-listed substances.
*3 Waste water volume from designated facilities: Wastewater volume from business facilities designated under the Water Pollution Control Act.
*4 Reductions: This term refers to reducing the volume of waste by dewatering, drying, burning, and other means.
I N P U T (Showa Denko K.K. only)
The figures in parentheses represent increases or decreases relative to the previous year.
Note: In principle, the data provided on this page represent total calendar year values. Data that must be reported to authorities represent total fiscal year values.
Energy
1.05Mkl(crude oil equivalent)
(+30,000Kl)
Water
67.21Mm3(-2.24Mm3)
Raw materials
Plants operated by
Showa Denko
Waste reductions*4 inside Showa Denko
61,744t(+16,261t)
Internal Utilization 5,558t(-2,283t)
Products
Emissions of air pollutants
Emissions of water pollutants
Waste discharge
O U T P U T
Greenhouse gases*1 2,306kt-CO2
(-117kt-CO2)
SOx 464t (-30t)
NOx 1,285t (-104t)
Soot and dust 132t (+38t)
JCIA PRTR-listed substances 273t (+19t)
JCIA Toxic atmospheric pollutants*2 33t (-14t)
36,195t (-17,708t)
Landfill disposal 2,390t (+ 758t)
Use outside Showa Denko 11,742t (- 13,577t)
Reductions*4 in volume outside Showa Denko 22,063t (- 4,888t)
COD 444t (+11t)
Total nitrogen 574t (0t)
Total phosphorus 12t (+2t)
JCIA PRTR-listed substances 43t (+13t)
Wastewater volume from
designated facilities*330,117 Mt (-2,050 Mt)
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2010 results
Showa Denko is committed to ongoing environmental investment designed to reduce energy consumption and minimize environmental impact of our operations. Since 2000, environmental investment and associated expenses as well as their effects have been subject to evaluation in the form of
environmental accounting*7
In 2010, the Oita Complex renovated the ethylene cracking furnace to improve efficiency. The Kawasaki Plant invested in maintaining the dust collector. The Omachi Plant and the Higashinagahara Plant invested in facilities related to hydroelectric power generation. The Chiba Regional Office strengthened its wastewater monitoring systems.
Investment in the environment (cumulative total from 1990) Investment in safety and disaster prevention (cumulative total from 1990)
08 09 100706050402 03010099989796959493929190 (year)0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000(million yen) (million yen)
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
08 09 10070605040302010099989796959493929190 (year)(Showa Denko K.K. only)
((((((((
(million yen)
((((((((
(Showa Denko K.K. only)
(Showa Denko K.K. only)
Cost
Reducing environmental impact Economic benefits
Environmental accounting
*5 Scope of the Showa Denko Group: Total for the ten consolidated manufacturing subsidiaries in Japan: Showa Tansan K.K., Showa Titanium Co., Ltd., Showa Aluminum Can Corp., Showa Denko Packaging Co. Ltd., Showa Denko Kenzai K.K., Niigata Showa K.K., Nippon Polytech Corp., Showa Denko Kenso Co., Ltd., Tohoku Metal Chemical Co., Ltd., and Showa Denko HD Yamagata K.K. GHG emissions include those for Showa Denko Electronics K.K. and Tsurusaki Kyodo Doryoku Co., Ltd. and exclude those for Niigata Showa K.K., Nippon Polytech Corp., and Showa Denko Kenso Co., Ltd., which are not required to report emissions as emitters designated under the Act on Promotion of Global Warming Countermeasures.
*6 The figures given for final landfill disposal cover only waste generated by production activities in the respective years.
*7 Environmental accounting: A method whereby companies and other organizations measure and manage their effects on the environment in monetary terms as accurately as possible and report the results.
Detail Capital investment Expenses
Cost within business site
Pollution preventionCapital investments and expenses associated with prevention of atmospheric/water/soil pollution, noise, vibration, odor, etc.
905 364
Global environmental protectionCapital investments and expenses associated with energy conservation and combating global warming and ozone-layer depletion
17,911 787
Resource recyclingCapital investments and expenses associated with resource conservation and waste treatment
118 2,033
Upstream and downstream costsCosts associated with reducing environmental impact in business operations upstream and downstream, including green purchasing and recycling of products and packaging
1 19
Administrative costsAdministrative costs relating to environmental conservation, including environmental issues training, introduction of environmental management systems, and environmental impact evaluations
43 607
R & D costsCosts associated with research and development of environment friendly products and technologies
43 270
Community outreach costsEnvironmental conservation costs for local community outreach activities not directly linked to business operations, such as environmental conservation projects in communities, dialogue with residents, and plant tours
0 8
Other Compensation for health damages resulting from environmental pollution, etc. 208 242
Total 19,229 4,330
1990 2010
SOx 3,698 464
NOx 3,522 1,285
Soot and dust 283 132
COD 786 444
Total nitrogen 607 574
Total phosphorus 51 12
Landfill disposal 19,723 2,390
Unit energy consumption 100% 91.8%
(Showa Denko K.K. only)
Energy conservation 1,282
Resource recycling 741
Waste reduction 20
Other 0
Total 2,043
(Showa Denko K.K. only)
(million yen / year)(t)
SHOWA DENKO CSR REPORT 2011 33
Environmental Efforts
Promoting energy conservation
Regarding energy conservation as a major issue both for pre-
venting global warming and protecting resources, the Group is
currently advancing various measures to conserve energy, includ-
ing reviewing and optimizing production processes and modifying
facilities.
In 2010, new cracking furnaces began operating at the Oita
Complex, improving the energy efficiency of the ethylene plant by
6%. However, this gain was offset by other factors, including the
suspension of plant operations for quadrennial inspections and
unit energy consumption inflated by the closure of the Tokuyama
Plant and Hikone Plant. Thus, energy conservation results for
Showa Denko remained roughly equal to the previous year.
Showa Denko also operates hydraulic power plants near its
inland sites. These clean energy sources supply approximately
24% of Showa Denko’s total electricity use. In addition, the in-
house thermal power plants, located mainly in coastal areas, sup-
ply approximately 13% of our total electricity use. Together, they
contribute to the stability of facility operations.
Reducing greenhouse gas emissions
The Showa Denko Group reduced its greenhouse gas (GHG)
emissions*2 13% from the reference year (1990), based on the av-
erage figure for the commitment period (2008 to 2010). We have
set a goal of 6% reductions from the reference year specified in
the Kyoto Protocol by itself and are pursuing further reductions in
greenhouse gas emissions. We have also set reduction targets for
the emission intensity of greenhouse gases in our manufacturing
and filling processes, including carbon dioxide, nitrous oxide, and
CFC substitutes (e.g., HFC and PFC). To achieve these targets,
we are systematically promoting various emissions control mea-
sures, including the recovery of gases emitted during filling pro-
cesses and the installation of GHG decomposition and treatment
units.
*1 Unit energy consumption: This term refers to unit energy consumption for Showa Denko K.K. only, based on voluntary targets set by the Japan Chemical Industry Association. This is the energy required for production divided by the amount produced. A lower figure means more efficient production and lower environmental impact.
*2 Greenhouse gas emissions: This term refers to the volume of emitted greenhouse gases under Japan’s Act on Promotion of Global Warming Countermeasures. Up to fiscal 2008, this law applied only to major facilities. It has since been amended to apply to all facilities. Figures for fiscal 2009 and beyond in this report cover even small facilities lacking manufacturing functions, including the Head Office and branch offices. These figures exclude emissions generated by transport.
Trends in unit energy consumption (Showa Denko K.K. only)
Change in discharged amounts of greenhouse gases and target figures (Showa Denko Group*)
Index (%)
60
70
80
90
100
90 99 00 01 02 0403 06 07 08 0905 100
(FY)
+1%-1%
-5%
-16% -19%
-6%
2,000
0
2,500
3,000
3,500
Amount discharged
(kt-CO2)
90 06 07 08 09 10 08~ 12 Group's target (FY)(Reference year)
2010 plans
[Policy]● Achieving unit energy consumption target
of 80% or better
● Achieving Kyoto Protocol targets for the Showa Denko Group (6% GHG reductions compared to 1990 levels) by itself
[Plans]● Creating energy conservation measures
● Implementing reduction plans at each site
2010 achievements
● Unit energy consumption*1: 91.8% (compared to 1990 levels), down 0.3% from 2009
● Implementing regular reporting● Greenhouse gas emissions: 20% reductions at
Showa Denko, 19% reductions across entire Showa Denko Group (compared to 1990 levels)
● Implementing the plan to achieve Kyoto Protocol targets in promise period (by Showa Denko)
● 2009 unit energy consumption as designated shippers and reduction plans for 2010 reported to authorities
2011 plans
[Policy]● Continuously reducing unit energy
consumption● Achieving Kyoto Protocol targets for the
Showa Denko Group by itself; preparing for post-Kyoto Protocol
[Plans]● Creating energy conservation measures● Implementing reduction plans at each site● Thoroughgoing power consumption reductions
Climate change efforts
Note: Scope of the Showa Denko Group: See *5 at the bottom of page 33. Data for the reference year includes data for Showa Light Alloy Co., Ltd. (Plant No. 1) and Shunan Denko K.K. but excludes data for Showa Denko Electronics K.K., Tohoku Metal Chemical Co., Ltd., and Showa Denko HD Yamagata K.K.
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Reducing environmental impact through supply chain management (SCM)*3
Lessening environmental impact in transportation
Showa Denko K.K. is working to reduce its environmental
impact by improving transportation efficiency and by promoting a
modal shift throughout its supply chain, from the procurement of
materials, through production and sales, to delivery.
Unfortunately, the unit energy consumption in fiscal 2010 in-
creased by approximately 7% from the previous fiscal year, due
mainly to the following factors: The recent merger added a new
business whose main line of business involves truck transport,
which consumes significant amounts of energy. Additionally, the
method for calculating energy consumed for certain products shift-
ed from the ton-kilometer method to the fuel consumption method.
Effects of the Great East Japan Earthquake
Since total values are calculated over the period from April
2010 to March 2011, the fiscal 2010 results show no conspicu-
ous effects from the Great East Japan Earthquake.
However, the tsunami destroyed our distribution center at
Soma Port, used for sea transport of liquid ammonia. We have
shifted entirely to transport by tanker trucks to transport products
from the Kawasaki Plant to customers in the Tohoku area. This
measure will likely degrade unit energy consumption figures in fis-
cal 2011.
Promoting a modal shift *4
To reduce the environmental impact associated with product
transport, Showa Denko K.K. is promoting a modal shift from truck
transport to sea and rail transport, since the latter modes generate
lower CO2 emissions. In 2010, we switched from truck transport
for shipments from Oita Prefecture to Aomori Prefecture to rail
transport.
In fiscal 2010, the freight ton-km by rail and ship transport
in Japan was approximately 363 million ton-km. This value cor-
responds to approximately two-thirds of our total freight ton-km in
Japan.
In addition to the modal shift, we are improving transporta-
tion efficiency by increasing the size of delivery lots, improving the
loading ratio of trucks and containers, and reducing transport dis-
tances. In cooperation with transport companies, we are striving to
reduce energy consumption by adopting low-emission vehicles,
digital tachographs,*5 and eco-friendly tires, in addition to encour-
aging eco-friendly driving.
*3 SCM (Supply Chain Management): SCM refers to company activities to comprehensively control the entire flows of articles and information using information systems, covering all stages from purchase of raw materials through product manufacture, inventory control, distribution, and sales.
*4 Modal shift: Switching the primary means of transporting goods from trucks and airplanes to rail and sea transport to reduce environmental impact and to increase efficiency.
*5 Digital tachograph: A tachograph is a device installed in a motor vehicle to record driving behavior. Tachographs help drivers and managers achieve safe, economical driving by recording driving speeds
and times and logging related data. A digital tachograph makes possible more detailed and precise recording and analysis than traditional tachographs, which record data on paper.
*6 Freight ton-km: Cargo weight (t) x Transportation distance (km)
*7 Designated shipper: A shipper shipping cargo of 30 million ton-kilometers or more per fiscal year.
Transportation sector's CO2 emissions and energy consumption rate
FY2010 ratios for use of various modes of transport
Amendments to Energy Conservation Law
The amended Energy Conservation Law, which went into ef-
fect in April 2006, requires shippers to reduce the environmental
impact of distribution activities. In particular, the law requires des-
ignated shippers*7 with large volumes transported to report energy
consumption and CO2 emissions results and to submit plans
for reducing unit energy consumption. As a designated shipper,
Showa Denko K.K. will steadily implement measures to reduce the
environmental impact of its transport activities, in this way reducing
CO2 emissions and meeting its social responsibilities.
Freight ton-km*6
(million ton-km)
0
100
200
300
400
500
600
(FY)
550
08
470
09
551
10
2022242628303234363840CO
2 emissions by transport sector
Unit energy consumption for transport
(thousand tons)
㎘/kl per million ton-km (crude oil equivalent)
(FY)08
20.2
29.826.2
33.1
20.9
22.5
09 100
24
23
0
17
18
19
20
21
22
(%)
CO2 emissions Freight ton-km Freight ton0
20
40
60
80
61%
34%
64%
38% 63% 35%
1%
100RailRoad Sea
3%
1%
SHOWA DENKO CSR REPORT 2011 35
95 96 97 98 99 00 01 02 03 04 05 06 07 08 09(FY)
0
200
400
600
800
1,000 (t)
10
PRTR
As a member of the Japan Chemical Industry Association (JCIA), Showa Denko since 1996 has voluntarily undertaken sur-veys of the volumes of chemical substances it has discharged and transported. In 2010, the Company performed a survey of 590 substances, including substances subjected to the PRTR Law, submitting a report to the JCIA on 160 substances (of which 103 were subject to the PRTR law). Total emissions of PRTR-listed substances were approximately 316 tons, approximately 35
Reducing chemical substance discharge
2010 plans
[Policy]● Reducing chemical emissions[Plans]● Developing and implementing reduction
plans for each worksite
2010 achievements
● Total emissions of PRTR-listed substances: 316 t, up 35 t from 2009
2011 plans
[Policy]● Reducing chemical emissions[Plans]● Thoroughly disseminating information on
PRTR revisions● Developing and implementing reduction
plans for each worksite
tons higher than the previous fiscal year. This is attributable to the merger with Showa Highpolymer Co., Ltd., and the effects of fis-cal 2010 revisions in PRTR-listed substances. Showa Denko will continue to make focused efforts to reduce discharge volumes by preparing reduction plans for each site for PRTR-listed substances and for substances with high annual dis-charge volumes. The Company is currently seeking to ascertain and assess potential impact in areas surrounding its sites and improve communication with local communities and governments concerning risks as it works to reduce discharge volumes.
PRTR-listed substances released and transferred (Showa Denko K.K. only)transferred (Showa Denko K.K. only)
Volume transferred 1,870t
Total volume released 316t
Into soil 0t
Into air 273t
Into water 43t
Volume released/tansferred
Environmental Efforts
Release of PRTR-listed substances (Showa Denko K.K. only)
OthersWater-soluble salts of peroxodisulfuric acid
1,3-butadieneToluene
Kawasaki Plant (Total emissions: 43.9 t)
47.5%
25.6%
8.9%
18.0%
Isesaki Plant (Total emissions: 8.6 t)
OthersPhenol
FormaldehydeToluene
46.1%
18.7%
20.7%
14.5%
25.6%
Tatsuno Plant (Total emissions: 15.1 t)
OthersVinyl acetateStyrene
73.8%
11.8%
14.4%Oita Complex (Total emissions: 13.1 t)
OthersBenzene
Vinyl acetateNormal-hexane
27.6%
32.2%24.0%
16.2%
Shiojiri Plant (Total emissions: 2.1 t)
Hydrogen fluoride and its water-soluble salts
Boron compounds
88.0%
12.0%
Yokohama Plant (Total emissions: 1.3 t)
OthersBoron compounds
100%
Chichibu Regional Office (Total emissions: 4.1 t)
Others
Methyl (S)-7-chloro-2, 3, 4a, 5-tetrahydro-2-[methoxycarbonyl (4-trifluoromethoxyphenyl) carbamoyl] indeno [1, 2-e] [1, 3, 4] oxadiazine-4a-carboxylate
85.5%
14.5%
27.6%
Omachi Plant (Total emissions: 64.5 t)
OthersPhenol
BenzeneAcenaphtheneNaphthalene
37.5%
23.2%17.3%
14.3%
9.5%
Oyama Regional Office (Total emissions: 2.9 t)
OthersNickel
TolueneXylene
31.5%
27.0%
19.1%
22.5%
Higashinagahara Plant (Total emissions: 4.3 t)
OthersTolueneDichloromethane
97.8%
2.0% 0.2%
Emissions of PRTR-listed substances at respective sites (Showa Denko K.K. only)
Note: The sum of the emission fractions for each site is not always 100% due to rounding.
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FY 2010 List of PRTR-listed substances released and transferredSubstances subject to the PRTR Law, other than dioxin: 103 substances (Substances with 1 t or less emissions or transfer volumes are excluded.) (Showa Denko K.K.only)
JCIA No.PRTR No.
CAS No Substances
FY2010 Release (t/y)FY2009
Total release
(t/y)
The amount of increase or decrease for FY2009
(t/y)
FY2010 Total amount of transfer
(t/y)
FY2009 Amount of transfer
(t/y)To Air To Water To Soil Total
150 300 108-88-3 Toluene 31 0 0 31 35 -4 91 286
151 302 91-20-3 Naphthalene* 23 0 0 23 14 9 0 0
15 83-32-9 Acenaphthene* 15 0 0 15 − 15 0 −
199 400 71-43-2 Benzene 13 0 0 13 10 3 47 334
139 240 100-42-5 Styrene 12 0 0 12 12 0 56 72
177 351 106-99-0 1, 3-Butadiene 12 0 0 12 10 1 0 0
176 349 108-95-2 Phenol 7 0 0 7 6 2 4 5
115 134 108-05-4 Vinyl acetate 5 0 0 5 2 3 5 5
167 392 110-54-3 Normal-hexane* 5 0 0 5 5 -1 0 0
21 186 75-09-2 Dichloromethane 4 0 0 4 21 -17 113 64
251 405 - Boron compounds 0 4 0 4 3 1 7 4
395 - Water-soluble salts of peroxodisulfuric acid* 0 4 0 4 − 4 0 −
430 173584-44-6
Methyl(S)-7-chloro-2,3,4a,5-tetrahydro-2-
[methoxycarbonyl(4-trifluoromethoxyphenyl)
carbamoyl]indeno[1,2-e][1,3,4]oxadiazine-4a-
carboxylate*
3 0 0 3 − 3 4 −
102 80 1330-20-7 Xylene 3 0 0 3 2 1 10 0
30 -Linear alkylbenzene sulfonate and its salt (limited to those whose alkyl group carbon number ranges from 10 to 14)
0 2 0 2 2 0 0 1
202 411 50-00-0 Formaldehyde 0 1 0 2 1 0 1 2
225 1 - Zinc compounds (water-soluble) 0 2 0 2 1 1 10 13
32 120-12-7 Anthracene* 1 0 0 1 − 1 0 −
86 53 100-41-4 Ethylbenzene 1 0 0 1 1 0 0 0
73 12 75-07-0 Acetaldehyde 1 0 0 1 1 0 94 147
104 75-45-6 Chlorodifluoromethane 1 0 0 1 1 0 0 1
1096 374 - Hydrogen fluoride and its water-soluble salts 0 1 0 1 1 0 9 12
244 308 7440-02-0 Nickel 0 1 0 1 0 1 6 0
378 12071-83-9Polymer of N,N'-propylenebis(dithiocarbamic acid) and zinc
1 0 0 1 0 1 1 0
82 20 141-43-5 2-Aminoethanol 0 0 0 0 0 0 38 2
64 4 - Acrylic acid and its water-soluble salts 0 0 0 0 0 0 10 6
11 127 67-66-3 Chloroform 0 0 0 0 0 0 4 2
263 436 98-83-9 Alpha-methylstyrene 0 0 0 0 0 0 4 10
137 232 68-12-2 N, N-Dimethylformamide 0 0 0 0 0 0 119 298
231 75 - Cadmium and its compounds 0 0 0 0 0 0 16 0
1068 272 -Copper salts (water-soluble, except complex salts)
0 0 0 0 0 0 12 13
1117 28 107-18-6 Allyl alcohol 0 0 0 0 0 0 8 5
246 321 - Vanadium compounds 0 0 0 0 0 0 3 3
373 88-60-8 2-2-tert-butyl-5-methylphenol* 0 0 0 0 − 0 1 −
280 207 128-37-0 2,6-di-tert-butyl-4-cresol* 0 0 0 0 0 0 1 2
Total of the PRTR-listed substances 141 14 0 155 130 25 671 1,286
Total of the other substances (including JCIA PRTR-listed substances) 132 30 0 161 152 10 1,199 1,306
Total 273 43 0 316 281 35 1,870 2,593
* Substance newly listed in the PRTR Law at the revision of 2010.Among these,for each of those substances not subject to JCIA's voluntary reporting program,the amount of release in 2009 is indicated as "-" and the increase or decrease of release is calculated on the presumption of zero release in 2009.
Note: The numerical sum of each column or raw and the grand total may not agree due to rounding.
SHOWA DENKO CSR REPORT 2011 37
Environmental Efforts
2010 plans
[policy]● Reducing chemical emissions[Plans]● Developing and implementing reduction
plans for each worksite
2010 achievements
● Emissions of toxic atmospheric pollutants: 33 t, down 28% from 2009; target achieved
2011 plans
[policy]● Reducing chemical emissions[Plans]● Developing and implementing reduction
plans for each worksite
Environmental considerations: Atmosphere, water and soil
■Oita ■Tokuyama ■Kawasaki ■Higashinagahara ■Omachi ■Oyama ■Isesaki ■Tatsuno
(FY)
(t)
0 01 02 03 04 05 06 07 08 09 10
50
100
150
200
250
300
350
400
(FY)
(t)
0
50
100
150
200
250
300
350
400
01 02 03 04 05 06 07 08 09 10
OyamaHigashinagahara
(t)
0
5
10
15
20
25
30
(FY)01 02 03 04 05 06 07 08 09 10
Kawasaki
Oita
(FY)
(t)
0
5
10
15
01 02 03 04 05 06 07 08 09 10
Kawasaki
(FY)
(t)
Omachi
0
5
10
15
01 02 03 04 05 06 07 08 09 10
OitaKawasaki
(FY)01 02 03 04 05 06 07 08 09 10
(t)
0
1
2
3
4
Kawasaki Isesaki
(t)
0
1
2
3
4
(FY)01 02 03 04 05 06 07 08 09 10
Oita
Tokuyama Tatsuno
(t)
0
1
2
3
4
(FY)01 02 03 04 05 06 07 08 09 10
Omachi Kawasaki
Oyama
(t)
0
1
2
3
4
(FY)01 02 03 04 05 06 07 08 09 10
(FY)01 02 03 04 05 06 07 08 09 10
Tokuyama
(t)
0
1
2
Kawasaki
Total amounts released of harmful atmospheric pollutants
Acrylonitrile
Acetaldehyde
Trichloroethylene
Dichloromethane
Benzene
Tetrachloroethylene
1,3-Butadiene
Formaldehyde
Chloroform
Reducing emissions of toxic atmospheric pollutants
On completing the JCIA Phase 2 Voluntary program for reducing discharged volumes of 12 harmful atmospheric pollutants*1, the Showa Denko Group is now working to achieve a new target: a 10% year-on-year reduction in pollutants released in relatively large volumes. In 2010, the total amount discharged of nine substances handled by the Company was 33 tons, a decrease of 13 tons from the previous year. This result is mostly due to reduced use of dichloromethane at the Higashinagahara Plant. The Group remains committed to achieving steady reductions in the discharge of toxic atmospheric pollutants through a combination of various measures, including switching to substitute materials and boosting recovery and recycling rates.(All graphs apply to Showa Denko alone.)
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*1 12 harmful atmospheric pollutants : The 12 substances are the hazardous air pollutants selected by the JCIA for voluntary control, which include acrylonitrile, acetaldehyde, vinyl chloride monomer, chloroform, 1, 2-dichloroethane, dichloromethane, tetrachloroethylene, trichloroethylene, 1, 3-butadiene, benzene, formaldehyde, and ethylene oxide.
*2 SOx : SOx is generated through the combustion of sulfurcontaining fuel. This pollutant affects the respiratory organs.
*3 NOx : NOx generally occurs as a result of oxidation of nitrogen in the air where fuels and wastes are burned. This pollutant is said to contribute to photochemical smog.
*4 Soot : Soot and solid particles generated from the burning of fuels and other materials.
*5 COD : Chemical oxygen demand, a common index of water quality, is the amount of oxygen required to fully oxidize chemicals in water.
*6 Total nitrogen : Total nitrogen is the sum of inorganic nitrogen (e.g., nitrite, nitrate, and ammonium ions) and organic nitrogen (nitrogen in protein and various other organic compounds).
*7 Total phosphorus : Total phosphorus is the collective term for inorganic and organic phosphorous compounds. Phosphorus is an essential element for all living things, but excessive phosphorus concentrations can, for example, lead to algae blooms.
Reducing atmospheric impact
The Showa Denko Group is working to reduce emissions of
pollutants such as sulfur oxides (SOx)*2, nitrogen oxides (NOx)*3,
and soot*4 through the following measures:
• Shift in fuel
• Modifying combustion processes (e.g., using low-NOx burners)
• Appropriate operation and management of desulphurization and
denitration systems
• Reductions in fuel consumption through exhaust heat recovery
systems
• Strengthening monitoring systems
Amounts of SOx and NOx declined from 2009 levels. The
Group will continue to seek to reduce its environmental impact on
the atmosphere.
Reducing water quality impact
The Showa Denko Group continues in efforts to reduce its im-
pact on water quality in areas such as chemical oxygen demand
(COD*5), total nitrogen*6 , and total phosphorus*7 through the fol-
lowing measures:
• Improvements in manufacturing processes
• Improvements in wastewater processing equipment and opera-
tion and control factors
• Promoting water reuse
• Strengthening monitoring systems
COD and total phosphorus increased slightly from 2009 lev-
els. The Group will continue in efforts to reduce its impact on wa-
ter quality.
Measures to prevent soil and groundwater pollution
On occasions such as changes in the uses of plant sites or
soil removal, the Showa Denko Group undertakes surveys and
other measures in line with the Soil Contamination Countermea-
sures Law and local government regulations.
Change in discharged amounts of substances with atmospheric impact (Showa Denko K.K. only)
Change in discharged amounts of substances with water quality impact (Showa Denko K.K. only)
SOX NOX Soot and dust
009 10
(year)08070605040302010099989796959493929190
500
1,000
1,500
2,000
2,500
3,000
4,000
3,500
(t)
0
200
400
600
800
1,000
COD and total
nitrogen( t )
0
20
40
60
80
100
Total phosphorus( t )
COD Total nitrogen Total phosphorus
100908070605040302010099989796959493929190(year)
SHOWA DENKO CSR REPORT 2011 39
Environmental Efforts
Reducing industrial waste and encouraging recycling
To reduce the volume of industrial waste generated and
disposed of, the Showa Denko Group seeks to curb waste gen-
eration, encourage reuse, and identify ways for effective use of
wastes.
• Reuse of waste acids and waste alkalis
• Use of waste oil and waste plastics as fuels (heat recovery)
• Effective use of inorganic sludge (e.g., in cement)
The final landfill waste volume for fiscal 2010 was 2,390 tons
for Showa Denko K.K. (including 823 tons from the former Showa
Highpolymer Co., Ltd.) and 201 tons for Group companies, for a
grand total of 2,591 tons for the Showa Denko Group. Although
the increased production raised the amount of waste actually dis-
posed of, lower construction waste, efforts to promote effective
use (Kawasaki), and special factors applying during the previous
year (regular maintenance in Oita) offset this increase and resulted
in net final landfill waste reductions of 161 tons compared to the
previous year. We achieved the Group target value of 3,100 tons.
We plan to continue to make progress in reducing waste, setting
a fiscal 2011 target of 2,500 tons for the Group. Fifteen sites—
roughly half of all sites—achieved zero emissions*1 (final landfill
waste corresponding to no more than 1% of all waste). We plan
to continue striving to expand the number of zero-emissions sites
this year. In addition, Showa Denko is currently assessing contrac-
tors for intermediate processing and final disposal to ensure ap-
propriate processing and disposal of generated waste.
PCB control
Based on its PCB control checklist, Showa Denko K.K. regu-
larly checks the status of stored polychlorinated biphenyl (PCB)*3
waste. This waste is appropriately stored in suitable facilities to
prevent leaks. Additionally, each worksite submits an annual report
on the status of stored PCB waste and related matters to the pre-
fectural governor, as required under the Law Concerning Special
Measures Against PCB Waste.
Taking full advantage of the waste processing facilities of Ja-
pan Environmental Safety Corporation, we are continuing system-
atic disposal of PCB waste.
*1 Zero emissions : A concept, now a goal throughout society, to eliminate the generation of various waste substances by reusing materials rather than processing them as waste. Proposed by the United Nations University in 1994, this concept seeks to realize a recycling-based society by reducing to zero the level of emissions into the environment through the most efficient resource and energy use possible.
*2 Bauxite residue : Unwanted substance remaining after alumina is extracted from bauxite ore during the alumina production process.
*3 PCB (Polychlorinated biphenyl) : PCB is a material with high electrical insulation and chemical resistance. It was used in wide-ranging applications, including insulating oil for electrical appliances, paints, and carbonless copy paper. Due to its carcinogenicity and other problems, however, the manufacture, import, and use of PCB are now prohibited.
2010 plans
[Policy]● Achieving zero emissions
● Contributing to a recycling-based society[Plans]● Eliminating landfill waste through efforts such as
more effective use of sludge Target: Showa Denko: 1,900 t or less Group companies: 3,100t or less
● Promoting recycling
2010 achievements
● Landfill waste: 2,591 t in the Showa Denko Group (down 161 t from 2009); target achieved
● Chemical-recycling production: up 4% from 2009
2011 plans
[Policy]● Achieving zero emissions
● Contributing to a recycling-based society[Plans]● Eliminating landfill waste through efforts such as
more effective use of sludge Target: Showa Denko: 2,200t or less (The number of business sites increased by two.) Showa Denko Group: 2,500 t or less
● Promoting recycling
Changes in final landfill volume
5,000
10,000
15,000
20,000
25,000
0
(t)
(year)90 98 99 00 01 02 03 04 05 06 07 08 09 10
■Showa Denko K.K. ■Group companies
0
5000
10000
15000
20000
25000
Data for 2007 and earlier years represent total values for January through December. Data for 2008 and later years represent total values for April through March of the next year. (January through December for the Kawasaki Plant)
Reducing waste and encouraging recycling
With respect to the discharge of bauxite residue*2 into the
sea, the Company in fiscal 2010 maintained the volume of this
discharge at 20% below fiscal 2000 levels. The Company plans to
completely eliminate the discharge of bauxite residue into the sea
by 2015 and will continue to work to reduce discharge volumes.
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The Showa Denko Group has aggressively pursued various
Responsible Care efforts in its business activities, including activi-
ties that reduce greenhouse gas emissions or address other en-
vironmental considerations. In 2011, we have begun to organize
the use of ecosystem services to better understand the impact on
ecosystems in our business activities from a broader perspective.
Based on the following perspectives, we are investigating the
relationship between biodiversity and the Group’s business sites
and supply chain for products and services:
Use of ecosystem services
Materials:
Use of living organisms or raw materials of biological origin
Energy:
Use of hydroelectric power and biomass fuel
Water:
Use of natural fresh water
Wastewater, exhaust gas:
Wastewater purification andair protection using ecosystem
services
Waste:
Discharge of organic (biodegradable) waste out of worksites
Process:
Processes using ecosystem services
Transport:
Use of rivers and canals
Ground:
Use of ecosystem services to prevent natural disasters
Others:
Welfare measures and facilities using natural environment
Controlling impact on ecosystems
Raw fuel:
Use of mineral resources and fossil fuel
Use of materials derived from plantation crops
Wastewater:
Gathering information on discharge into closed water systems
such as lakes and swamps
Exhaust gas:
Effects of discharge on ecosystems
Product:
Products and services intended to preserve ecosystems
Products and services intended to reduce impact on ecosys-
tems
Transport:
Environmental loads imposed by transport activities
Ground:
Gathering information on relationships with endangered spe-
cies
Based on the results of these investigations, we will determine
the items to be addressed in our biodiversity efforts and the ur-
gency and priority of the various items.
Biodiversity efforts
SHOWA DENKO CSR REPORT 2011 41
“We can prevent labor accidents, equipment accidents and environmental problems by learning from past accidents, by sharing information throughout the Group, and by implementing proactive countermeasures.” Based on the approach articulated in this way, Showa Denko launched its “active safety” initiative in 2008. Under the policy of “zero labor accidents, zero equipment incidents, and zero environmental problems,” each worksite has implemented this initiative in its own way, generally focusing on risk assessment activities based on checklists. The efforts are beginning to yield results.
Safety Efforts
CSR Activity Report: Safety Efforts
*1 Maintenance Prevention (MP) information: The Showa Denko Group has accumulated a database of accidents, troubles, significant near-misses and countermeasures in and out of the Group, and now shares information on approximately 4,800 cases among all employees.
*2 Earthquake Motion Prediction System : A system developed by National Research Institute for Earth Science and Disaster Prevention.Japan Seismic Hazard Information Station J-SHIS
Disaster Prevention
2010 plans
[Policy]● Zero equipment incidents[Plans]● Holding and utilizing Active Safety study
meetings
● Enhancing the engineering change management system
● Promoting voluntary safety initiatives
2010 achievements
● Accidents: Four leaks, two fires, and one breakage in the entire Showa Denko Group
● Active Safety activities expanded to and implemented by affiliated companies and research facilities
● Function-specific personnel meetings (electric, instrumentation, machinery, process) planned
● Oita Complex: Certification as continuous high-pressure gas opertation site renewed for fourth consecutive year
2011 plans
[Policy]● Realizing zero equipment incidents[Plans]● Thoroughly implementing Active Safety activities● Organizing and applying function-specific personnel
meetings● Thoroughly implementing HRM examination● Promoting voluntary safety initiatives
Equipment safety
Based on the policy goal of completely eliminating equipment
incidents, the Showa Denko Group has proceeded with its Active
Safety initiative since 2008 by analyzing past accidents and other
problems to prevent their recurrence. In 2010, four equipment
incidents occurred at business sites operated by Showa Denko
K.K. Three equipment incidents occurred at business sites oper-
ated by affiliates. All these incidents were discovered in their early
stages and did not cause any human damage or external effects.
All cases were thoroughly investigated and countermeasures were
implemented to prevent any recurrence. Including these cases,
past cases are systematized with the active safety checklists in
the Active Safety initiative, and are used in all business sites to
prevent future accidents.
In 2010, to incorporate studies of potential accidents and of
the essential nature of safety and to extend the activities thor-
oughly across all facilities of our Group including R&D centers and
those of the affiliates, we classified and analyzed the corporate
MP information*1 according to technical elements and further reor-
ganized it in view of specialized fields (machinery, electricity, instru-
mentation, and process). In the future, we will hold study meetings
combining members in the Head Office and business sites to pro-
mote standardization of inherently safe design, prepare guidelines,
cultivate next generation key persons, and improve the skills of the
workers.
Safety measures for earthquakes
By assuming worst-case risks such as fire and leakage of chemical substances, the Showa Denko Group has systemati-cally promoted seismic performance evaluations of equipment and buildings, along with the corresponding countermeasures. In 2010, at our 16 worksites, including affiliates, we used the existing earthquake motion prediction system*2 to estimate the scale of the ground motion expected at each location in the event of an earth-quake. We evaluated the seismic performance of equipment and buildings based on the ground motion predicted, inspected safety equipment and safety shutdown systems, and implemented any necessary countermeasures. Our precautions bore fruit during the Great East Japan Earth-quake of March 11, 2011. Showa Denko Group worksites in the Kanto and Tohoku areas escaped significant damage. However, the tsunami that followed the earthquake damaged the facilities of the ammonia distribution center of our group company in Soma Port in Fukushima Prefecture. In 2011, we will continue to evaluate the performance of conventional seismic safety measures; evaluate seismic performance at business sites where evaluations remain incomplete; and formulate appropriate new measures. In addition, we will revise our worst-case scenarios for major earthquakes to encom-pass tsunami damage.
Showa Denko Group Emergency Civil Engineering and Building Personnel Meeting (at the Head Office on May 20, 2011)Using the Great East Japan Earthquake as a lesson, we held a group-wide meeting to discuss and share information on the possible worst-case damage at each business site in the event of large-scale earthquakes and tsunamis and related countermeasures.
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To p i c s Seismic safety measures for phosgene production facility (the Higashinagahara Plant)
Approximately three years have passed since the 2008 phosgene leaks. At the Higashinagahara Plant in Aizuwakamatsu-shi, Fukushima Prefecture, production, engineering and construction staff have undertaken ceaseless efforts to ensure thorough control of operations; to identify potential issues; and to ensure essential safety. These efforts include thorough countermeasures to prevent the recurrence of leaks. The countermeasures also take into account the possibility of major earthquakes. We have performed seismic diagnosis for all related facilities, including buildings, bases, and main units of equipment, piping, and abatement systems. We have also implemented all necessary seismic strengthening.
The automatic shutdown system installed as a seismic safety measure was designed to generate and issue a comprehensive system emergency shutdown* command to the production plant when the seismometer installed in the worksite detects seismic acceleration exceeding a specified threshold value.
On March 11, the day of the earthquake, the seismometer in the worksite detected seismic acceleration (intensity of 5+) exceeding the specified threshold value during normal operations. The automatic shutdown system activated, and the entire system at the phosgene production plant automatically proceeded to emergency shutdown, as designed. (The abatement system and cooling system continued to operate.) Later, those in charge from the facility management department visually inspected the external appearance of the facilities in the areas in their charge and confirmed that the facilities were free of leaks or damage.
* Comprehensive system emergency shutdown at the phosgene plant: The production facility halts production by shutting down the material feed system. The storage facility halts phosgene output by halting the feed pump and closing the shutoff valve. The abatement system and the cooling system continue to operate. Confirmation by pointing to and calling out the status of a
facility on a large display used to monitor operating status.
External appearance of phosgene production facility
SHOWA DENKO CSR REPORT 2011 43
Safety Efforts
Occupational health and safety
To eliminate workplace accidents, the Showa Denko Group
promotes active safety activities that draw on risk assessments*1
to identify and correct risk sources. This initiative was launched in
2008. Specifically, in addition to the active safety checklists we
prepared based on past accidents, our primary sites have begun
using the occupational health and safety management systems*2
that focus on risk assessments. As of June 2011, 12 worksites in
Japan and five worksites abroad have acquired the relevant certifi-
cation.
The number of lost-time injuries Groupwide totaled two (one
incident in Showa Denko K.K. and one incident in a Group com-
pany) in 2010. As of June 2011, the number of lost-time injuries
remains zero.
All worksites have already established activities to identify and
correct risk sources, and these activities will be made even more
thoroughgoing.
* Scope of Group companies (As of December 2010): Tsurusaki Kyodo Doryoku K.K., Tokyo Liquefied Oxygen Co., Ltd., Showa Titanium Co., Ltd., Shinshu Showa Co., Ltd., Showa Denko Packaging Co., Ltd., Showa Aluminum Can Corp., Showa Denko Sakai Aluminum Co., Ltd., Showa Denko Electronics K.K., Showa Engineering Co., Ltd., Showa Denko Kenzai K.K., Union Showa K.K., Niigata Showa K.K., Showa Aluminum Can Recycling Center, HI-PACK CO., LTD., Showa Tansan K.K., Clean-S Showa K.K.
Asbestos
Conditions related to asbestos were as follows.
■ Use of asbestos
The Group neither manufactures nor sells any products incor-
porating asbestos.
The Group uses sealing materials containing asbestos for certain
production facilities, including those for chemicals.
We are currently replacing these materials with materials that do
not contain asbestos.
■ Health damage
For employees who have directly or indirectly handled asbes-
tos, we perform periodic health checkups as required by relevant
laws. No incidents of health damage have been reported to date.
We also provide asbestos health checkups for former em-
ployees of the Showa Denko Group, in addition to responding to
various inquiries. In 2009, two cases (Latest edition announced
by Ministry of Health, Labour and Welfare) were recognized as
occupational accidents. We have received no reports of injury or
damage to health from families of employees, former employees,
or residents of local communities.
*1 Risk assessment: A series of processes intended to identify the risks and dangers inherent
in a workplace; to estimate the extent of damage and likelihood of occurrence based on such
identification; and to prioritize countermeasures and determine risk-reduction measures.
*2 Occupational health and safety management systems: They are intended to allow organizations
to reduce the likelihood of problems by identifying, establishing, and implementing countermeasures
against risks related to the occupational health and safety of employees.
Occupational health and safety
2010 plans
[Policy]● Zero lost-time and non-lost-time injuries[Plans]● Enhancing safety strength of worksites
and personnel
● Addressing equipment and process deficiencies
● Improving safety management levels (expanding attainment of Occupational Safety and Health Management System accreditation)
2010 achievements
● Two incidents resulting in lost-time injuries (three in 2009) and one non-lost-time injury (four in 2009) for the entire Showa Denko Group
● Rate of incidents resulting in lost-time injuries in Showa Denko Group: 0.14 (0.29 in 2009)
● Oita Complex, Shiojiri Plant, and Showa Denko Electronics K.K. win Accident-free Record Certification from the Ministry of Health, Labor and Welfare
● Oita Complex and the Ohmuta Plant of Showa Aluminum Can Corp. recognized by third-party safety awards
● Higashinagahara Plant, Shiojiri Plant, and Kitakata Plant certified under the Occupational Safety and Health Management System (total of 11 sites now certified)
2011 plans
[Policy]● Zero lost-time and non-lost-time injuries at
each site
● Establishing the chemical industry’s strongest safety management system
[Plans]● Enhancing safety strength of worksites and
personnel
● Addressing equipment and process deficiencies
● Improving safety management levels
● Following up on special safety activities and strengthening measures to prevent similar incidents
Changes in frequency rate of lost-time injuries*3
Year
All Industries Chemical Industries
Showa Denko K.K. Showa Denko Group company*
0
2.0
4.0
6.0
8.0
10.0
100806040200989694929088868482807876747270
SHOWA DENKO CSR REPORT 201144
*3 Frequency rate of lost-time injuries: Number of deaths and injuries occurring per one million
working hours, as calculated by the following formula:
Frequency rate of lost-time injuries = (Number of deaths and injuries) / (total working hours) x
1,000,000
2010-2011 List of RC-related awards
Name of award Recipient site and individual Year received
Disaster prevention
2011 Fire and Disaster Management Agency Commissioner award (for superior facility in the handling of hazardous substances)
Oyama Plant of Showa Aluminum Can Corp. 2011
Health and occupational safety
Accident-free record certificate from the Ministry of Health, Labour and Welfare (Manufacture of Electrical Machinery, Equipment and Supplies, Class II)
Showa Denko Electronics K.K. 2010
34th JCIA/JRCC Grand Prix Safety Award Oita Complex 2010
Award for Excellence, 2009 Japan Aluminum Association Occupational Safety Awards
Ohmuta Plant of Showa Aluminum Can Corp. 2010
Accident-free record certificate from the Ministry of Health, Labour and Welfare (Manufacture of Chemical and Allied Products, Class I)
Oita Complex 2010
Accident-free record certificate from the Ministry of Health, Labour and Welfare (Manufacture of Ceramic, Stone and Clay Products, Class I)
Shiojiri Plant 2010
Japan Industrial Safety & Health Association Green Cross Award Omachi Plant, Environment and Safety Section, Section Head, Mr. Watanabe 2010
Japan Industrial Safety & Health Association Green Cross AwardProduction Technology Headquarters, Environment and Safety Office, Staff Manager, Mr. Kimura
2010
2010 Minister of Health, Labour, and Welfare's Award for business-facility managers who place priority on safety
Extrusion/Specialty Products Division, Production & Technology Control Department, Manufacturing Department, Extrusion Section, Mr. Keino
2011
Award for Special Excellence, 2010 Japan Aluminum Association Occupational Safety Awards
Ohmuta Plant of Showa Aluminum Can Corp. 2011
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The Oyama Plant of Showa Aluminum Can Corp. was awarded the Fire and Disaster Management Agency Commissioner award as a superior facility in the handling of hazardous substances in fiscal 2011. At the 2011 Safety of Hazardous Materials Conference on June 6, the awards ceremony was held and Mr. Moriguchi, the Plant Manager, received the award certificate.
This award is given to business sites that promote the safety management of hazardous materials, cooperate w i t h g o v e r n m e n t initiatives related to the safety of hazardous mater ia ls, and have m a d e o u t s t a n d i n g a c h i e v e m e n t s i n ma in ta in ing human safety.
Oyama Plant of Showa Aluminum Can Corp. wins 2011 Fire and Disaster Management Agency Commissioner award
Manager of the Oyama Plant (left) and Head of the Facility Section, holding the award certificate
On May 2011, the Ohmuta Plant of Showa Aluminum Can Corp. achieved a record of five continuous years free of lost-time injuries. This achievement was recognized by the Award for Special Excellence in the 2010 Japan Aluminum Association Occupational Safety Awards.
Ohmuta Plant of Showa Aluminum Can Corp. won the Award for Special Excellence, 2010 Japan Aluminum Association Occupational Safety Awards
Manager of the Ohmuta Plant holding the award certificate
Ohmuta Plant staff
SHOWA DENKO CSR REPORT 2011 45
Safety Efforts
International chemicals management activities
As it works to achieve the goal agreed to in the World Summit on Sustainable Development (WSSD) “to minimize the negative effects of chemical substances on people and the environment by 2020”. The Showa Denko Group is seeking to implement integrat-ed management of chemical substances under the International Council of Chemical Associations (ICCA). The Group is also taking part in Japan Initiative of Product Stewardship, the new voluntary chemical management initiative by JCIA to enhance risk assessment and risk management with consideration for supply chain. Through this initiative, the Group is strengthening product stewardship in various ways, including collection of information and safety assessment at each stage of manufacture, sales, and use/consumption.
Foreign laws and regulations
In response to the enforcement of EU Regulations on the Registration, Evaluation, Authorization and Restriction of Chemi-cals (REACH) and the Regulation on Classification, Labeling and Packaging of chemical substances and mixtures (CLP), we are participating in various activities as a member of the REACH sub-committee in the JCIA. We are ascertaining proper responses to the REACH and CLP regulations mainly through the activities of the REACH Promotion Group, which consists of members from various business divisions, Group companies as well as staff sec-tions at the head office and overseas companies. For products exported to the EU and subject to REACH regu-lations, we are carrying out our activities within the Substance Information Exchange Forum (SIEF) to prepare for the registration of each product before its deadline. We are also striving to collect relevant information from our supply chain. We have finished the registration of substances that must be registered by 2010. For products exported to the EU but not subject to REACH regula-tions, we are proceeding with hazard assessment and informa-tion sharing throughout the supply chain and have completed
*1 Yellow card : This refers to an emergency contact card briefly describing appropriate response by transportation company personnel, police, and fire-fighters in the event of accidents involving hazardous or toxic substances.
Chemical substances safety efforts
2010 plans
[Policy]● Zero accidents/incidents involving
chemical substances or violations of chemical substances legislation
[Plans]● Comprehensive implementat ion of
compliance, education, and management structures
● Collecting, assessing, and providing safety information (REACH compatibility, etc.)
2010 achievements
● Zero accidents/ incidents involv ing chemical
substances or violations of chemical substances legislation in the Showa Denko Group
● Revision to GHS-compatible MSDS promoted
(completed for substances for which notification is required by Industrial Safety and Health Law)
● Chemicals Management Officer provided information
on relevant legislation and follow-up training
● Completed registration of substances under the
REACH regulations before deadlines for substances that must be registered by 2010
● Completed notification under the CLP regulation
before deadlines and amended CLP compliant labels and MSDS
2011 plans
[Policy]● Appropriate response to revisions in
domestic and overseas laws[Plans]● Comprehens i ve imp lemen ta t i on o f
compliance, education, and management structures
● Collecting, assessing, and providing safety information
● Establishing comprehensive chemicals management database
all procedures of CLP notification for relevant products by their deadlines. Furthermore, we are responding carefully to new legal and regulatory trends in South Korea, Taiwan, China, Malaysia and elsewhere.
GHS-compatible MSDS
The Group provides its customers and consumers with in-formation on risks or hazards related to its products via labeling and MSDSs prepared for all products in Japan based on JIS standards. We are also in the process of revising all labels and MSDSs to include GHS information. For overseas products as well, we are making progress in including GHS information on labels and MSDSs in accordance with the relevant regulations in each country. Furthermore, the Group prepares yellow cards*1 to protect against accidents involving chemical substances during road transport. We enforce truck drivers to carry the cards at all times when transporting harmful substances.
In 2008, the General Assembly of the United Nations declared 2011 the "International Year of Chemistry" (IYC 2011). The year 2011 marks the 100th anniversary of the Nobel Prize in Chemistry awarded to Madame Marie Curie. The unifying theme of IYC 2011 is “Chemistry—our life, our future.” Goals include increasing public appreciation of chemistry in meeting world needs, encouraging interest in chemistry among young people, and giving support to scientists' enthusiastic contribution to the creative future. Showa Denko K.K. co-sponsors this activity as a member of the International Year of Chemistry Japan Committee.
International Year of Chemistry
To p i c s
IYC 2011 logo
SHOWA DENKO CSR REPORT 201146
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To help achieve goal of the 2020 World Summit on Sustainable Development (WSSD)—To use and produce chemicals in ways that minimize significant adverse effects on human health and the environment— the Showa Denko Group has introduced a comprehensive chemicals management system to provide the basic infrastructure for managing chemicals. The newly introduced comprehensive chemicals management system will integrate information management for all chemicals we use in and outside Japan and allow information sharing Groupwide. The system will also ensure response in compliance with EU/REACH regulations, CLP regulations, and various notifications required under the amended Chemical Substances Control Law.
<Intended effects>1) Sharing of information on chemicals throughout the Showa
Denko Group Integrated management of information, including information on
production, sales, the supply chain (SC) and use.2) Safeguarding against human error related to the enforcement or
revision of related laws and regulations Automatic updates of information on laws and regulations
concerning products, linked to the databases of Japanese and foreign laws and regulations
3) Streamlined procedures for chemicals management Automatic updating and output of MSDS information Improved data precision and transparency for each business
site for use in compiling various statistical reports
Introducing a comprehensive chemicals management system
The Showa Denko Group’s comprehensive chemicals management system
To p i c s
*2 CSA : Chemical Safety Assessment
First Step (2011)• Link to existing systems• Building the production and import
volume notification system in compliance with the amended Chemical Substances Control Law
Second Step (2012)• Multilingual support• Automatic MSDS output and labeling
system
Third Step (2013)• Risk assessments of chemicals, linked to
existing evaluation tools
Supplier
Showa Denko
Customers
Public organizations
Chemicals management system(Comprehensive EH&S management system)
Japanese laws and regulations
database
Chemicals management
database
Foreign laws and regulations
database
WEB API platform
Purchase and sales system
Purchase and sales information
Production system
Product and material information
MSDS
Notification of quantity
CSA*2
MSDS risk assessment reports
SHOWA DENKO CSR REPORT 2011 47
Third-party Verification/Assurance
SHOWA DENKO CSR REPORT 201148
SHOWA DENKO CSR REPORT 2011 49
We wish to express our heartfelt sympathy for the victims of the Great
East Japan Earthquake of March 11, 2011. We hope for the speediest
possible recovery. We would also like to express our heartfelt appreciation
for all the help and support to Japan given by the people all over the world.
The Great East Japan Earthquake occurred as this Report was being
edited. The disaster compelled the Showa Denko Group to briefly cease
production and business activities. We also suspended editing work of
this report to confirm the safety of our employees; to ensure adequate
communication with business sites; and to prepare to resume business
activities. As we tackled these tasks, we saw signs every day of the close
link between the businesses, products, and services provided by the Group
and our society.
In striving to resume our operations, we renewed our recognition
that each of the steady day-to-day CSR activities we undertake with many
stakeholders is the common treasure.
The activities we undertook to provide the materials needed for
the proper functioning of lifelines for disaster-stricken areas received
significant support from the supply chain and distribution companies,
as well as from members of the municipalities in the areas where our
business facilities are located.
In this year's CSR Report, we wanted to present information on the
meticulous, responsible restoration and recovery efforts undertaken by
our employees, efforts generally not visible to the public. We prepared two
editions: the Special Edition of CSR Report 2011 “Our CSR Efforts: Toward
Restoration from the Great East Japan Earthquake” and the CSR Report
2011 (full version).
Changes in our editorial policies in the middle of the editing process
resulted in some inconvenience to the assurance team who undertook
third-party verification/assurance of the full-version CSR Report, due to
CSR Report 2011 Response to Third-party Verification/Assurance
changes in the timetable for various steps of the process, including efforts
to confirm data. We want to take this opportunity to express our gratitude
for their flexibility, energy and commitment.
This year, we have launched our new medium-term CSR plan linked
to PEGASUS, our new medium-term consolidated business plan. The goal
of the new CSR plan is to ensure that each and every employee tackles
CSR activities responsibly, based on a consideration of the results of past
efforts.
With respect to the topic of Groupwide information disclosure
initiatives previously described and addressed in the Assurance, we
are now preparing the database that will serve as the key source for
information disclosure. We will expand the scope of the information
disclosed while taking steps to ensure consistent data handling for both
our international and regional operations.
We regard ISO26000, announced last year, as a guidepost for our
CSR activities. We are currently reviewing the Code of Conduct and the
corresponding Guidelines that serve as CSR cornerstones. Our hope is that
every employee will make effective use of the revised Code of Conduct
and the Guidelines.
At the Showa Denko Group, dialogue with our many stakeholders
represents the very foundations of our CSR activities. Your opinions
and comments are important Group assets. We welcome your candid
comments on this Report.
July 2011
Yasumichi Murata
Director and Managing Corporate Officer
Chief Risk Management Officer (CRO)
Showa Denko K.K.
SHOWA DENKO CSR REPORT 201150