Tokuyama : Sustainability Data book 2021

Sustainability Data Book 2021 reports key data on Tokuyama's CSR activities in fiscal 2020.

Details of Tokuyama's basic philosophy and initiatives for CSR are introduced at the website below.

TOKUYAMA

Sustainability Data Book

2021

Responsible Care	Accident Prevention and	Growing Together with Employees
2	Responsible Care Initiatives	Occupational Health and Safety	11	Developing Talent and Promoting Diversity
3	Quality Management System	9 Comprehensive Safety and	13	Health Management Initiatives
		Accident-Prevention Measures

Environmental Initiatives		Corporate Governance
3	Environmental Management	In Harmony with Society	14	Risk Management
10 Communication with Stakeholders
4	Helping to Fight Global Warming	15	Business Continuity Management (BCM)
5	Reducing Substances with	Community Initiatives		Compliance
	Environmental Impact and Waste
7	Reducing Waste and Managing		Site Reports
	Waste Recycling
		16	Tokuyama Factory
8	Detailed Data
	17	Kashima Factory

18 Sun Arrow Kasei Co., Ltd. /

Tokuyama Polypropylene Co., Ltd.

｜WEB｜ Tokuyama's CSR

https://www.tokuyama.co.jp/eng/csr/

1

Responsible Care	Environmental Initiatives	Accident Prevention and	In Harmony with Society	Growing Together	Corporate Governance	Site Reports
Occupational Health and Safety	with Employees

• Responsible Care Initiatives
• Quality Management System

Responsible Care

Tokuyama has put in place a corporate framework for promoting Responsible Care,* and is incorporating this initiative in each of its management systems as it strives to continuously improve its environmental, safety, and quality systems.

Responsible Care Initiatives

Tokuyama actively practices Responsible Care as one of the original members of the Japan Responsible Care Committee established in 1995 under the Japan Chemical Industry Association (JCIA).

• Responsible Care is a voluntary management initiative undertaken by chemical manufacturers to implement measures that conserve the environment and secure safety and health in all processes from the development of chemical substances to their manufacturing, distribution, use, final consumption, and disposal. Companies publish their outcomes and engage in public dialogue.

｜WEB｜ Basic Philosophy of Responsible Care

https://www.tokuyama.co.jp/eng/csr/responsible_care.html

				Responsible Care
Priority Tasks and Results of Responsible Care Activities in Fiscal 2020	Achieved (A) Not achieved (B)
			Degree of target achievement:
Category	Priority tasks	Results		Degree of target
	achievement
Environmental Conservation	● Comply with legal	● Strictly complied with legal requirements		B
	requirements and other	1 incident exceeding regulatory limits set by Air Pollution Control Act
	regulations
	● Achieve zero	● No environmental accidents		A
	environmental accidents
	● Achieve targets for	● Reduced or maintained levels of emissions of substances of concern		A
	reducing environmental	● Reduced per-unit energy consumption		A
	impact	(KPI: 3% improvement compared with FY2005 levels)
		8.9% improvement compared with FY2005 levels
		● Zero emissions to landfills		B
		(KPI: Maintain 99.9% reuse/recycling rate)
		Zero emissions of industrial waste to landfills: 99.7% reuse/recycling rate
Safety and Accident	● Achieve zero legal	● 1 recommendation for rectification measures under Japan's Industrial Safety and		B
Prevention	violations	Health Act
Occupational Health and	● No accidents or	● 2 fire accidents		B
Safety	accidents requiring work	● Employees: 2 accidents requiring work absence		B
	absence
	● Improved safety management level		A
		● Identified and reduced/eliminated hazards and reduced risks of accidents		A
		● Promoted risk and hazard management		A
	● Reduce rate of work	● Promoted physical and mental health		A
	absences
Chemical Product Safety	● Ensure product safety	● Conducted inspections of products and labeling		A
		● Upgraded safety data sheet (SDS) management		A
		● Addressed regulations on chemicals in and outside of Japan		A
Build Relations of Trust	● Participate in community	● Participated in community volunteer activities		A
with Local Communities	events	● Held dialogues with the community on Responsible Care		A
and Society
● Establish a good	● Factory tours＊		- ＊
	reputation in society
Promote Responsible Care	● Expand the scope	● Conducted safety, environment, and quality audits		A
at Group Companies	of Responsible Care	● Shared Responsible Care information via an online newsletter, etc.		A
	activities
	● Appropriately addressed regulations on chemicals in countries outside Japan		A

• Unable to evaluate because the tour was not held due to COVID-19.

2

Responsible Care	Environmental Initiatives		Accident Prevention and	In Harmony with Society		Growing Together	Corporate Governance	Site Reports
	Occupational Health and Safety		with Employees
● Responsible Care Initiatives	● Environmental Management	● Reducing Substances with Environmental Impact and Waste ● Detailed Data
● Quality Management System	● Helping to Fight Global Warming ● Reducing Waste and Managing Waste Recycling

Responsible Care

Quality Management System

As an internationally competitive company, Tokuyama implements three-year quality management plans based on its Quality Policy in order to provide products and services that accurately meet the needs and expectations of its customers.

It has been 19 years since a quality management system was introduced company-wide, including in sales and development departments, in fiscal 2002. The system is now well-established in all departments and is generating continuous improvement. An external audit by a third party in fiscal 2020 pointed out no major or minor nonconformances.

Internal audits check the progress of action plans and the status of the system based on the JISQ 9001:2015 standard, requiring corrective actions for any defects. In addition to compliance with the requirements of the standard, audits also verify the effectiveness of the quality management system and whether or not it is helping to improve customer satisfaction.

Environmental Initiatives

For Tokuyama, the pursuit of proactive initiatives to protect the earth's environment is an important part of its corporate social responsibilities. Accordingly, the Company practices environmental management that takes into account the natural environment in all business activities.

Environmental Management

Tokuyama works to accurately determine the input and output of materials in its operations and regularly sets new targets for reducing environmental impact.

Environmental Initiatives

Tokuyama Environmental Management Policy

Three-Year Policy (FY2021-2023)

Tokuyama actively undertakes global environmental conservation and strives to help build a sustainable society based on its Basic Philosophy of Responsible Care and the following policies.

Focus Items in Fiscal 2021

・Strictly comply with legal requirements, etc. ・Continue zero environmental accidents

・Reduce environmental impact

Maintain or reduce emission levels of environmentally hazardous substances

Promote zero waste emissions ・Combat climate change

Take action to achieve FY2030 greenhouse gas (GHG) target Promote energy-saving and conservation of electricity ・Expand communication with stakeholders and improve

information disclosure

・Help conserve biodiversity

Flow of Materials in Business Activities

(Unit: 1,000 metric tons)

Tokuyama Quality Policy

As an internationally competitive company, Tokuyama Corporation always puts its customers first and to ensure their satisfaction, provides products and services that accurately meet their needs and expectations.

Waste and by-products

1,730

Fuel

2,100 (46,800,000 gigajoules)

Raw materials 6,370

Carbon dioxide(CO2)

Production	6,300
	Waste (incinerated and landfill)
	20.6
INPUT	OUTPUT
	Substances with
TOKUYAMA	environmental impact
11.1

To achieve these goals, the Company complies with laws and regulations and continuously improves the effectiveness of its quality management system.

Industrial water	Process effluent
41,400	22,210
Coolant water and other types of effluent
Products	basis in fisical 2020
6,100
	Note: All amounts are for Tokuyama Corp. on a non-consolidated

3

Responsible Care	Environmental Initiatives		Accident Prevention and	In Harmony with Society		Growing Together	Corporate Governance	Site Reports
	Occupational Health and Safety		with Employees
	● Environmental Management	● Reducing Substances with Environmental Impact and Waste ● Detailed Data

• Helping to Fight Global Warming ● Reducing Waste and Managing Waste Recycling

Environmental Initiatives

• Environmental Accounting

Tokuyama has been carrying out environmental accounting since fiscal 2000 in order to accurately determine and analyze the investment amounts and costs associated with its environmental conservation activities, thereby providing a sound basis for making environmental investments.

Fiscal 2020 Environmental Conservation Costs

		Category	Major Activities	Amount	Costs
		Invested
		(million yen)
				(million yen)
			Installation of electrostatic
		Pollution	precipitators for reducing smoke	179	4,321
		Control	and dust, upgrade of related
Areas
		equipment, etc.
Business		Global	Remodeling and upgrade of
	equipment for reducing CO2,
	Environmental	16	474
	upgrade of freon removal
	Conservation
	equipment, etc.
in
Costs
		Installation of waste disposal
	Resource	facilities, upgrade of equipment
		688	1,335
		Recycling	in waste disposal facilities, PCB
			waste disposal costs, etc.
Upstream and		0	1
Downstream Costs
Management Activity	Installation and upgrade of
equipment for environmental	17	257
Costs
monitoring and analysis
Research and		0	0
Development Costs
			Greenification and beautification
Social Activity Costs	measures	0	82
			Production of CSR report
Costs for	Imposition, management of a
Environmental	0	100
former mining site
Damage
Total			899	6,568

Change in Environmental Accounting (Ratio to Sales)

(%)					Investments	Costs
4
3
2
1
0	14	15	16	17	18	19	20（FY）

• Biodiversity

Tokuyama endorses Nippon Keidanren's (Japan Business Federation) Declaration on Biodiversity and is a member of the Japan Business and Biodiversity Partnership. The Company studies the impact of its business activities on ecosystems, with the aim of conducting its business sustainably while conserving biodiversity.

｜WEB｜ Business Activities and Biodiversity

https://www.tokuyama.co.jp/eng/csr/pdf/2020csrpdf_4_e.pdf

Helping to Fight Global Warming

Tokuyama is helping to mitigate global warming by conserving energy used in its business activities, developing and manufacturing products that help to reduce GHG emissions and managing Scope 3 emissions.

• Promoting Energy Conservation

In fiscal 2020, per-unit energy consumption remained level with the previous fiscal year despite lower operating rates caused by the COVID-19 pandemic, thanks to the steady implementation of energy conservation measures and use of non-coal energy sources. As a result, the Company has achieved the annual target of reducing its per-unit energy consumption by 3% from fiscal 2005 levels.

Unit Energy Consumption Index＊

Per-unit energy consumption

（％） 100

100

97.0

(Target)

9594.6 93.6

				90.5	91.2	91.0	91.1
90	05	15	16	17	18	19	20（FY）

＊The unit energy consumption index is calculated using a method recommended by the Japan Chemical Industry Association (JCIA).

4

Responsible Care	Environmental Initiatives		Accident Prevention and	In Harmony with Society		Growing Together	Corporate Governance	Site Reports
	Occupational Health and Safety		with Employees
	● Environmental Management	● Reducing Substances with Environmental Impact and Waste ● Detailed Data

• Helping to Fight Global Warming ● Reducing Waste and Managing Waste Recycling

Energy Consumption

(1,000 of gigajoules/year)		Tokuyama Corporation	Group companies
60,000	3,500	2,500	2,700	2,600	2,700	2,500
53,700
50,000	47,300	49,600	49,100	49,200	46,800
40,000
30,000
20,000
10,000
0	05	16	17	18	19	20 （FY）

CO2 Emissions

	■ Attributable to fuel	■ Attributable to raw materials
(1,000 metric tons/year)	■ Attributable to waste	■ Group companies

CO₂ Emissions by Scope	（10,000 metric tons）
		FY2019	FY2020
Scope 1	(Direct CO2 emissions)	655	629
Scope 2	(Energy indirect CO2 emissions)	3	4
Scope 3		179	172

Third-party verification of fiscal 2019 Scope 1 and Scope 2 data was conducted in fiscal 2020.

Scope 3 CO2 Emissions by Category

3

Environmental Initiatives

Reducing Substances with Environmental Impact and Waste

Tokuyama is continually working to reduce its emissions of air and water pollutants and implementing environmental conservation initiatives such as waste recycling.

• Amounts of Atmospheric Emissions

In order to reduce atmospheric pollution from sulfur oxides (SOx) and nitrogen oxides (NOx), Tokuyama equips boilers, cement kilns, and other pollutant-generating facilities with flue gas desulfurizers, denitration equipment, low-NOx burners, and high-performance dust collectors.

9,000		250
	210

6,000	2,110
	4,820
3,000
0	05

190	190
250
250
1,720	1,820
4,300	4,510

16 17

180 190

280 250

1,800	1,850
4,440	4,470
18	19

180

260

1,810

4,240

20（FY）

％

				Category 1
29％ CO₂ Emissions				Category 2
			Category 3
1.72	42	％		Category 4
million metric tons

Other

25％

1％

Emissions of SOx, NOx, and Soot

(Metric tons)			SOx emissions		NOx emissions	Soot emissions	(Metric tons)
	12,000	9,470	10,100	10,100	10,220		320
								9,900
9,000											240
		138	168
6,000						122	127	116	160

• Calculating and Managing Supply Chain Emissions

Based on the Scope 3 Standard of the GHG Protocol,* Tokuyama accounts for supply chain emissions for Category 1 through 7 and Category 9 emissions under Scope 3. The emissions from these categories were calculated at 1.72 million metric tons, a decrease of 70,000 metric tons from fiscal 2019. The decrease was mainly due to reducing 30,000 metric tons of Category 1 emissions and 10,000 metric tons each of Category 2 and Category 4 emissions.

＊The Greenhouse Gas Protocol (GHG Protocol) was jointly formulated by the World Resources Institute (WRI) and World Business Council for Sustainable Development (WBCSD), and the Scope 3 Standard was issued in November 2011 as a standard for calculating CO2 emissions throughout supply chains.

Guidelines: Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain (Ver. 2.3), December 2017, Ministry of the Environment and Ministry of Economy, Trade and Industry, Government of Japan

CO₂ Emissions Unit Database: Emissions Unit Value Database for Calculating Greenhouse Gas Emissions, etc., by Organizations Throughout the Supply Chain (Ver. 3.1), March 2021; LCI Database IDEA v2.3 (for calculating supply chain GHG emissions; for general use), Sustainable Management Promotion Organization, December 2019

Note: Emissions were calculated for the top 10 raw materials by purchase amount.

3,000	780	800	810	760	80
750

0

16

17

18

19

20（FY）

0

5