Driving Polyplastics CSR with SDGs

CSR REPORT 20212020.4 - 2021.3Corporate Social Responsibility

Driving Polyplastics CSR with SDGs

2021.07.1.5M.1st (1‒01)CSR21‒E

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〈 Trademark Attribution 〉■ DURACON® is a registered trademark of Polyplastics Co., Ltd. in Japan and other countries.■ DURANEX® is a registered trademark of Polyplastics Co., Ltd. in Japan and other countries.■ RENATUS® is a registered trademark of Polyplastics Co., Ltd. in Japan and other countries. ■ DURAFIDE® is a registered trademark of Polyplastics Co., Ltd. in Japan and other countries.■ LAPEROS®is a registered trademark of Polyplastics Co., Ltd. in Japan and other countries. ■ TOPAS® is a registered trademark of TOPAS Advanced Polymers GmbH in Germany, the United States and other countries. ■ WEB@TSC® is a registered trademark of Polyplastics Co., Ltd. in Japan and other countries.■ PLAMOS® is a registered trademark of Polyplastics Co., Ltd. in Japan.■ AKI-Lock® is a registered trademark of Polyplastics Co., Ltd. in Japan and other countries.

Polyplastics Co.,Ltd.CSR GroupGeneral Administration DepartmentCorporate Support Division

JR Shinagawa East Bldg., 18-1, Konan 2-chome, Minato-ku, Tokyo 108-8280, JapanPhone : +81-3-6711-8614 / Fax : +81-3-6711-8606https://www.polyplastics-global.com

Contact Us

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India

KoreaChina

Germany Seoul

DelhiMumbaiChennai

TaipeiKaohsiung

JapanTokyoFujiNagoyaOsaka

Shanghai

Guangzhou

Shenzhen

Nantong*

Hong Kong

ASEAN

SingaporeKuala LumpurKuantanBangkok

Pathum TaniJakartaHo Chi MinhHanoi

Raunheim*

Oberhausen

Leuna

Mexico

Mexico City

USA

Farmington Hills

Polyplastics’ Business Expansion

Supporting global manufacturing with engineering plastic.

Polyplastics is Japan’s first specialized manufacturer of engineering plastic. Engineering plastic is made from functional resins having such properties as superior mechanical strength and heat resistance. It is used in a variety of products, including aircraft, automobiles, home appliances, and food packaging, and is indispensable to modern manufacturing. The Polyplastics Group has a network of 32 operations sites spread across 13 countries and regions through which we provide engineering plastic and technical support to customers worldwide.

Corporate Outline

DURANEX® PBTSuperior electrical properties and reliability for electronic devices and components

Polybutylene Terephthalate

DURAFIDE® PPSA linear polymer that is extremely tough and shock resistant

Polyphenylene Sulfide

DURACON® POMWell-balanced mechanical properties and outstanding sliding properties

Acetal Copolymer

LAPEROS® LCP"Super Engineering Plastic" with thin-wall flowabilitythat changes what we know about engineering plastic

Liquid Crystal Polymer

TOPAS® COCSuperior transparency and safety suited to healthcare and food packaging applications

Cyclic Olefin Copolymer

RENATUS® PETHigh heat resistance and superior electrical properties rivaling those of thermosetting resins

Polyethylene Terephthalate

* There are 2 sales offices in Raunheim 　and 2 plants in Nantong.

Created from data current as of the end of March 2021.

This report contains information about the activities the

group conducted during the 2020 fiscal year.

The term “employees” as used in this report refers to all

those who work in the Polyplastics Group.

Editorial Policy

ContentsPolyplastics CSR ...............................................03

Top Message......................................................05

Highlights of FY2020

　Certification of TOPAS® COC 　as a “Recyclable Material”..................................07　LAPEROS® LCP　　Additional UL Certification 　for Grade S475 .....................................................09

Engineering Plastic Business..........................11

Harmony with Environment .............................13

Develop Talented and Engaging Human Resources ...................17

Social Contribution Activities..........................19

Compliance ........................................................22

CSR REPORT 2021POLYPLASTICS

��billion yen

Consolidated Net Sales

��billion yen

Consolidated Operating Income

�� sites

R&D/Technical Solution Center

�plants

Production

��offices

SalesNumber of Employees

Engineering plastic from Polyplastics

Company Name

Established

Capital

Shareholders

Representative

Number of Employees

Business Operations

Polyplastics Co., Ltd.May 1964 (Founded: June 1962)3 billion yenDaicel Corporation Toshio Shiwaku, Representative Director and President2,177 (Polyplastics Group)Manufacturing and sales of various types of engineering plastic and polymers Applicable Period April 1, 2020 to March 31, 2021

Organization Covered The Polyplastics Group

TSC (Technical Solution Center)R&D

Plant

Sales company

Representative office

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　　Develop Talented and

　　Harmony with Environment

　　Engineering Plastic Business

　　Compliance

　　Contribution to Society

　　 Engaging Human Resources

Shaping a Sustainable and Abundant Future for Society

0403

Polyplastics CSR

Driving Polyplastics CSR with SDGs

Business Activities

Corporate Philosophy

We contribute to building an abundant future society by innovation and developing talented and responsible people,

through pursuing the unlimited potential of engineering plastics

MISSION

The No.1 solution provider for engineering plasticsWe will continue to provide our customers with the best solutions for engineering

plastics, in technology, quality, services, supply, and all other aspects

VISION

1.The “Polyplastics Way” : We create value together with our customers

・We always stand closest to our customers.・We understand customers’ needs by

knowing our customers from the inside out.・We continue to provide higher-than-

expected value based on the best tech-nology and services.・Following the above, we build strong

relationships of trust with our customers and grow and develop together with them.・We call these activities the “Polyplastics

Way,” which is our most important basic value.

・We consider each other important. We respect individuality and diversity.・We emphasize teamwork based on

mutual trust and cooperation among all employees.・At the same time, as a team, we embrace

the challenge of seeking to constantly evolve.・We call this team the “Polyplastics

Family,” which is our most important basic value.

2. The “Polyplastics Family” :The best teamwork

VALUE

As mentioned in the Corporate Philosophy, our corporate social responsibility (CSR) is contributing to shaping an abundant future for society through our engineering plastic business. In that sense we see a significant overlap between putting our Corporate Philosophy into practice and undertaking CSR. We focus on CSR both in terms of business activities and social contribution activities spanning the five areas of “Engineering Plastic Business,” “Harmony with Environment,” “Human Resources Development,” “Compliance” and “Contribution to Society.”

Shaping a Sustainable Society with Our Plastics

Harmony with Environment

Reduce environmental impact and carry out business operations in harmony with environment

Business Activities

Engineering Plastic Business

Contribute to shaping of anabundant society throughengineering plastic solutions

Business Activities

Compliance

Prioritize compliance andcarry out business in a socially fair and appropriate manner

Business Activities

Contribution to Society

Social Contribution Activities

● Contributing to the prosperity of local areas

● Cultivating the next generation● Supporting employee-led social

contribution activities

Develop Talented and Engaging Human Resources

Utilize and contribute to development of talented and engaging human resources

Business Activities

Contributing to Society through Our Business Activities

Business Activities

CSR Activities

Social Contribution Activities

CSR Activities

Providing opportunities for social improvement

As part of our efforts to facilitate and strengthen CSR activities within the Polyplastics Group, we use the perspectives of SDGs as an important indicator when putting our approach to CSR into action.

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Activities

SocialContribution

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Adapting to significant change while offering Polyplastics’ distinctive contribution to the realization of a more sustainable society

Polyplastics has embarked on a new Mid-Term Business Plan adapted to changes occurring both internally and in society.We continue to move forward towards our goal of realizing a more sustainable society as the No.1 engineering plastic solutions provider.

POLYPLASTICSCSR REPORT 2021

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-Shaping a Sustainable Society with Our Plastics-

05 06

Toshio ShiwakuRepresentative Director and President

Embarking on a new Mid-Term Business Plan adapted to changes both internal and externalFY2020 was a year of major changes, both inside and outside of Polyplastics. One was COVID-19. The pandemic has caused significant damage to the world’s economy, while, at the same time, giving rise to new needs in society and different approaches to how we work. The other one was the change within our company. In October of last year, Polyplastics moved from a US-Japan joint venture, as it has been since its founding, to a wholly-owned subsidiary of Daicel Corporation. This change has helped to simplify corporate governance and allows for more nimble managerial decision-making.Thus, from FY2021 we have embarked on a new, five-year Mid-Term Business Plan (MTP) which is adapted to these two areas of change. In terms of business, our key focus for the medium term between now and 2025 is to strengthen supply capacity of COC, LCP and POM and to earn the trust of customers in the European and American markets. In addition, we are working to adapt to the world-changing technological innovations taking place in and between various industries, including automated driving and electrical motor innovation in the automotive industry and the launch of 5G communications in the ICT industry, while, at the same time, continuing to pursue CSR activities that contribute to the realization of a more sustainable society. Our MTP is designed to provide clarity of direction for Polyplastics in a time of global economic uncertainty. It goes without saying just how important it is that we change in response to a changing environment. At the same time, however, our commitment to being the global No.1 engineering plastic solutions provider for our customers remains unchanged and undimmed. We are moving forward into a new business landscape, equipped with a new MTP for developing and expanding Polyplastics’ distinctive engineering plastic business.

Accelerating our efforts to reduce environmental impact as we incorporate group technologyFY2020 was an important year in terms of the process for realizing a more sustainable society. In line with the greenhouse gas reduction targets established by the Paris Agreement for 2020 onwards, companies will be expected to achieve specific results. Furthermore, beyond the Paris Agreement targets, there are the voluntary commitments of the world's major nations to achieve carbon neutrality by around 2050, with the year 2020 serving as an important, collective milestone internationally in terms of the timeline for greenhouse gas reductions. Polyplastics, as well, is working, via our MTP, to reduce greenhouse

Embarking on a new Mid-Term Business Plan adapted to changes both internal and externalFY2020 was a year of major changes, both inside and outside of Polyplastics. One was COVID-19. The pandemic has caused significant damage to the world’s economy, while, at the same time, giving rise to new needs in society and different approaches to how we work. The other one was the change within our company. In October of last year, Polyplastics moved from a US-Japan joint venture, as it has been since its founding, to a wholly-owned subsidiary of Daicel Corporation. This change has helped to simplify corporate governance and allows for more nimble managerial decision-making.Thus, from FY2021 we have embarked on a new, five-year Mid-Term Business Plan (MTP) which is adapted to these two areas of change. In terms of business, our key focus for the medium term between now and 2025 is to strengthen supply capacity of COC, LCP and POM and to earn the trust of customers in the European and American markets. In addition, we are working to adapt to the world-changing technological innovations taking place in and between various industries, including automated driving and electrical motor innovation in the automotive industry and the launch of 5G communications in the ICT industry, while, at the same time, continuing to pursue CSR activities that contribute to the realization of a more sustainable society. Our MTP is designed to provide clarity of direction for Polyplastics in a time of global economic uncertainty. It goes without saying just how important it is that we change in response to a changing environment. At the same time, however, our commitment to being the global No.1 engineering plastic solutions provider for our customers remains unchanged and undimmed. We are moving forward into a new business landscape, equipped with a new MTP for developing and expanding Polyplastics’ distinctive engineering plastic business.

Accelerating our efforts to reduce environmental impact as we incorporate group technologyFY2020 was an important year in terms of the process for realizing a more sustainable society. In line with the greenhouse gas reduction targets established by the Paris Agreement for 2020 onwards, companies will be expected to achieve specific results. Furthermore, beyond the Paris Agreement targets, there are the voluntary commitments of the world's major nations to achieve carbon neutrality by around 2050, with the year 2020 serving as an important, collective milestone internationally in terms of the timeline for greenhouse gas reductions. Polyplastics, as well, is working, via our MTP, to reduce greenhouse

gas emissions and other negative environmental impacts from our business practices. In the MTP, by utilizing advanced manufacturing technology possessed by Daicel, we will put in place manufacturing processes that are among the most energy-efficient in the world, switch to using energy with an even lower carbon footprint, and develop a plan for bringing biomaterial-derived POM to market.Additionally, another socially conscious initiative we are pursuing is the development of monomaterial package films using COC and polyolefin. In 2025, Europe is planning to introduce a pricing scheme for plastic packaging that is based on environmental load. And in order to accelerate a switch from disposable materials to materials recycling as a practical means of lowering the environmental load created by plastics, we will work, as a COC resin supplier, to facilitate the widespread adoption of highly functional and easily recyclable polyolefin monomaterial film.

Opening a Technical Solution Center (TSC) in EuropeBuilding a solutions network comprised of six, interconnected hubsEngineering plastic is a valuable material used in fields where dependability is especially required. In the field of mobility, engineering plastic is an essential material for manufacturing lighter, more energy-efficient vehicles, for developing vehicular automation and for improving safety; while, in the field of ICT, engineering plastic helps make high-performance 5G devices possible. We will provide data-based solutions, as engineering plastic experts, for realizing highly reliable and long-life products with a minimum of materials. In FY2021, we opened a Technical Solution Center (TSC) in Europe at a location adjacent to Frankfurt Airport in Germany, which now gives us six TSC working together in a worldwide network that delivers localized solutions to customers.Any company has to contribute to realizing the sustainable society in the future. We will continue to take on the responsibility of tackling this challenge as a leading supplier of engineering plastic which is now essential material for society.

gas emissions and other negative environmental impacts from our business practices. In the MTP, by utilizing advanced manufacturing technology possessed by Daicel, we will put in place manufacturing processes that are among the most energy-efficient in the world, switch to using energy with an even lower carbon footprint, and develop a plan for bringing biomaterial-derived POM to market.Additionally, another socially conscious initiative we are pursuing is the development of monomaterial package films using COC and polyolefin. In 2025, Europe is planning to introduce a pricing scheme for plastic packaging that is based on environmental load. And in order to accelerate a switch from disposable materials to materials recycling as a practical means of lowering the environmental load created by plastics, we will work, as a COC resin supplier, to facilitate the widespread adoption of highly functional and easily recyclable polyolefin monomaterial film.

Opening a Technical Solution Center (TSC) in EuropeBuilding a solutions network comprised of six, interconnected hubsEngineering plastic is a valuable material used in fields where dependability is especially required. In the field of mobility, engineering plastic is an essential material for manufacturing lighter, more energy-efficient vehicles, for developing vehicular automation and for improving safety; while, in the field of ICT, engineering plastic helps make high-performance 5G devices possible. We will provide data-based solutions, as engineering plastic experts, for realizing highly reliable and long-life products with a minimum of materials. In FY2021, we opened a Technical Solution Center (TSC) in Europe at a location adjacent to Frankfurt Airport in Germany, which now gives us six TSC working together in a worldwide network that delivers localized solutions to customers.Any company has to contribute to realizing the sustainable society in the future. We will continue to take on the responsibility of tackling this challenge as a leading supplier of engineering plastic which is now essential material for society.

Top Message

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Certification of TOPAS® COC as a “Recyclable Material”


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Boosting production capacity to realize a circular economyPolyplastics’ product, TOPAS® COC, has received third-party certification as a recyclable material.It is expected to meet and exceed existing plastic recycling-related needs, particularly in the increasingly circular economy-minded European market.

Providing plastic recycling-related solutions

In 2020, the Council of the European Union adopted the “Directive on the reduction of the impact of certain plastic products on the environment,” which puts a ban on the distribution of commonly used, disposable plastic products, such as straws and cutlery (forks, knives, spoons, chopsticks, etc.), by 2021.Also, in order to further accelerate market movement towards plastic recycling for the sake of establishing a circular economy, this directive establishes an extended producer responsibility* for all packaging materials that will take effect by 2024. It is in this context that TOPAS has received third-party certification as “an olefin resin and recyclable material.”* Extended producer responsibility:

An approach to producer responsibility which expands the scope beyond productproduction and usage to encompass disposal and recycling as well

Significance of this certification

TOPAS has been adopted in a broad range of fields, including healthcare and food packaging, thanks to its superior transparency and safety. In addition, due to the fact that TOPAS

is, broadly speaking, an olefin resin similar to PE and PP, it has been increasingly adopted in recent years as an easily recyclable plastic for use with PET bottles and other shrink label and stand-up pouch applications, and it is already widely available within Europe. The circular economy concept is being increasingly implemented throughout Europe, requiring producers and processors to use soft “polyolefin monomaterials” (i.e., materials made solely from olefin resins) for their packaging materials due to the fact that they are perfectly suited to recycling, and this is making TOPAS an increasingly indispensable material.This certification objectively proves that TOPAS can be recycled as a monomaterial together with PE and PP olefin resins in general. It is expected that the acquisition of third-party certification will greatly reassure both the industries currently using TOPAS and the companies considering using it about the reliability.

Applications using TOPAS

There are many examples of PET bottle shrink labels, stand-up pouches and other packaging materials widely used throughout Europe which add TOPAS® COC together with PE and PP olefin resins in order to provide functional enhancement.

The acquired third-party certification indicates that TOPAS can be recycled together with olefin resins, like those contained in these packaging materials, in a specially designated disposal process,

thereby contributing to the development of polyolefin monomaterials and recycling promotion of packaging materials.

CHECK POINT

Institute cyclos - HTP

Institute cyclos-HTP GmbH Maria-Theresia-Allee 35 - 52064 Aachen phone: +49 (0) 241 / 949 00 - 0 fax: +49 (0) 241 / 949 00 - 49

C E R T I F I C A T E Recyclability of Packaging Material

TOPAS Advanced Polymers GmbH Am Prime Parc 9 65479 Raunheim, Germany The company receives the certification of recyclability for the following plastic material.

Designation Cyclic Olefin Copolymers (COC) (with norbornene contents ≤ 50 mol% and ethylene contents ≥ 50 mol%) As blend component or layer in flexible PE-based packaging applications

Test result Assessment via path/specification: LDPE Films, Fraction No. 310 (DE)

Recyclate (final product): LDPE Recyclate Test standard / scope of application:

☒ Requirements and assessment catalogue of the institute cyclos-HTP for EU-wide certification (state 07.10.2019) / Scope of validity according to nation states, see chapter 1

☒ DIN EN 13430 with regard to material recyclability in the post-use phase; also integrated The following reference processes, materials and applications are taken into consideration within the certification process:

Detection as flexible PE packaging in state-of-the-art sorting plants Recyclate use for injection moulding and blown film applications Commercial PCR-based LDPE recyclate as reference Test program based on APR test protocol FILMS1-BG01 with the use of PCR-based LDPE recyclate as reference

According to the CHI standard the plastic material is a valuable material in the tested application and can be considered as:

Fully Recyclable for PE Film Recycling (AT, DE, ES, FR, IT, NL, NO)

This certificate (No. 2171-2020-001719) is valid until the 31.08.2021 (1 year upon issue) relating to the countries identified in the assessment report. This certificate will lose validity in case of qualitative or quantitative changes of packaging components.

Aachen, dated 28.08.2020 Dr. Joachim Christiani Publicly appointed and sworn expert for the IHK for packaging waste disposal Competent authority: IHK Aachen The certificate (No. 2171-2020-001719) is only valid in conjunction with the 1 following pages of the report.

Dr. Roland Bothor Technical supervisor of the investigations

Institute cyclos - HTP

Institute cyclos-HTP GmbH Maria-Theresia-Allee 35 - 52064 Aachen phone: +49 (0) 241 / 949 00 - 0 fax: +49 (0) 241 / 949 00 - 49

C E R T I F I C A T E Recyclability of Packaging Material

TOPAS Advanced Polymers GmbH Am Prime Parc 9 65479 Raunheim The company receives the certification of recyclability for the following plastic material.

Designation Cyclic Olefin Copolymers (COC) (with norbornene contents ≤ 50 mol% and ethylene contents ≥ 50 mol%) As blend component or layer in PP-based packaging applications

Test result Assessment via path/specification: Polypropylene, Fraction No. 324 (DE)

MPO flexible, Fraction No. 323 (DE)

Recyclate (final product): PP and MPO Recyclates Test standard / scope of application:

☒ Requirements and assessment catalogue of the institute cyclos-HTP for EU-wide certification (state 07.10.2019) / Scope of validity according to nation states, see chapter 1

☒ DIN EN 13430 with regard to material recyclability in the post-use phase; also integrated The following reference processes, materials and applications are taken into consideration within the certification process:

Detection as PP packaging in state-of-the-art sorting plants Recyclate use for injection moulding applications Commercial PCR-based PP recyclate as reference Test program based on APR test protocol FILMS1-BG01 with the use of PCR-based PP recyclate as reference

According to the CHI standard the plastic material is a valuable material in the tested application and can be considered as:

Fully Recyclable for PP and MPO Recycling (AT, DE, FR, IT, NL, NO, UK)

This certificate (No. 2171-2020-001720) is valid until the 31.08.2021 (1 year upon issue) relating to the countries identified in the assessment report. This certificate will lose validity in case of qualitative or quantitative changes of packaging components.

Aachen, dated 28.08.2020 Dr. Joachim Christiani Publicly appointed and sworn expert for the IHK for packaging waste disposal Competent authority: IHK Aachen The certificate (No. 2171-2020-001720) is only valid in conjunction with the 14 following pages of the report.

Dr. Roland Bothor Technical supervisor of the investigations

Third-party certification acquired

20202020

Shrink labels for PET bottles and other containers Stand-up pouches

Left：Certificate attesting to the fact that TOPAS can be recycled together with PE

Right： Certificate attesting to the fact that TOPAS can be recycled together with PP

©2021 Taghleef Industries.　All Rights Reserved

This also makes it possible to demonstrate to the relevant authorities that products containing TOPAS are sufficiently recyclable.

Construction of No. 2 Plant in 2023 to meet supply needs

With demand for TOPAS continuing to grow, local German subsidiary TOPAS Advanced Polymers GmbH will establish a new plant in Leuna that is scheduled to start operation in 2023 aside from existing plant in Oberhausen. This new plant will have an annual production capacity of 20,000 tons, which is more than double the current capacity and, moving forward, will serve as a central production hub for providing customers with a stable supply of TOPAS.

©2021 CCL LABEL Industries.　All Rights Reserved

07 08

HighlightHighlight

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Leuna

No.2 Plant

NEW

Oberhausen

No.1 Plant

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Working towards certification

High temperatures and shearing forces (forces applied to the materials when performing mixing and high-speed injection) are applied to the sprues and runners during the molding process. The use of recycled materials might have an impact on material quality. To meet the customers’ request, we had to check and certify the quality would not be affected by the use of recycled materials. Thus, we set out to obtain additional UL certification showing that the quality (physical properties) at a recycled material usage rate of 80% is equivalent to that of a product made from virgin materials. Before applying to the UL for this additional certification, we needed to confirm for ourselves, in-house, whether or not the quality required for certification could be achieved at a recycled material usage rate of 80%. We first performed molding using virgin materials, after which we manufactured recycled materials.

Prescribed amounts of recyc led and v i rg in materials were mixed together and molded to make the test pieces. They were subjected to testing to see whether its physical properties held up as well as a test


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*1 A third-party product safety/environmental assessment organization’s UL certification attesting to conformity with North American product safety requirements

Needs for reuse of LAPEROS® LCP

Characterized by its thinness and high flowability, LAPEROS® LCP is the prime example of a super engineering plastic. It boasts superior heat resistance and the unusual property of greater mechanical strength the thinner it is, as well as high dimensional precision. Due to these properties, it is frequently used in the ultra-miniature precision connectors found in mobile tablets, smartphones and other cutting-edge IT devices that are being made increasingly smaller.Normally, when molding these connectors, they must be attached to sprues and runners, but, once they are molded, these attachments are thrown away. As the size of the products being manufactured grows smaller, the percentage of sprues and runners gets higher, causing a problem of more waste. With society becoming increasingly concerned

about the needs for more effective u t i l i za t ion o f resources , our LAPEROS customers expressed a desire to use their sprues and runners as a recyclable resource that can make up to 80% of the resin content used in product molding.

piece made of 100% virgin materials.The process of obtaining certification for the recycled materials, which first required the creation of recycled materials, and then the comparison of test pieces results with those of virgin materials, was much more involved than the certification process for just the virgin materials. In the end, we were able to obtain additional UL certification of S475 as capable of achieving required product quality, even at a recycled material usage rate of 80%.

Providing effective resource utilization along with product quality

Society’s expectations with regard to effective resource utilization will only continue to go higher. From the standpoint of product quality assurance, using virgin materials is easier and more certain. However, in order to meet the needs of customers and, by extension, society with regard to effective resource utilization, we will need to offer resins that incorporate an even greater proportion of recycled materials while reliably ensuring a high level of product quality.Moving forward, we will, as the No.1 engineering plastic solutions provider, actively pursue further certifications and seek to develop and propose new products that can realize both effective resource utilization and reliable product quality for a sustainable and abundant future for society.

CHECK POINT

In-house testing

Application to UL

Additional UL certification process*2

02 03 04Creation of molded item

using virgin materialsCreation of recycled

materialsCreation of test pieces

containing prescribed amounts of recycled materials

In-house testing of required physical properties,

such as combustibility

01

02 03 0401

HighlightHighlight20202020

Molded product

Documentation To UL Test pieces Test pieces

Recycled materials Test pieces Test pieces

CHECK!

CHECK!

Virgin materialsMolded product

Yellow Card*3

*2 The figure above is a conceptual drawing of the general certification process; the actual process may vary from that shown.

*3 The information shown was the information current as of January 27, 2021. The pictured image is a trademark of UL LLC.The latest Yellow Card information can be found here. https://iq.ul.com/ul/cert.aspx?ULID=499586(User registration is required to view Product iQ.)

09 10

LAPEROS® LCP Additional UL Certification for Grade S475

Providing essential product quality even at a recycled material usage rate of 80%To meet our customers’ needs to ensure effective resource utilization, Polyplastics has secured additional UL certification*1 for Grade S475 of LAPEROS® LCP which verifies the fact that its quality (physical properties) at a recycled material usage rate of 80% is equivalent to that of a product made from virgin materials (i.e., a product containing no recycled materials).

Molded item

Sprue

Runner

Virgin materials + recycled materials

Virgin materials + recycled materials

Documentation submission Testing at ULMolding and submission of test pieces

Quality standards passedCertification obtained

Yellow Card*3 (UL certification documentation)

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Using engineering plastic business for realizing a circular economy

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�� Growing demand for TOPAS® COC during the COVID-19 pandemic

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Polyplastics’ approach to - and initiatives to achieve - a circular economy

Awards from customers��

��A growing, global movement to establish a circular economy

Impact on society and global environmental preservation

Applying Polyplastics’ own analysis technology and methods to help customers solve technical problems

Polyplastics’ comprehensive initiatives

There is increasing interest worldwide in the circular economy concept, which involves shifting from an economy built on disposable goods to one built on long-lasting goods. The entire social economy, from the supply chain to the consumer, needs to change to realize a circular economy, as shown in the following five. (See (1) to (5) in the figure below)

In order to help the Daicel Group in building a more recycling-oriented society through efforts that promote a more sustainable society and expand sustainable business practices, we in Polyplastics are undertaking sustained and active efforts to “do what we can, do what we should” (see (1) to (3) in the figure below) through our Engineering Plastic Business to hasten the establishment of a circular economy.

It is expected that transitioning to a circular economy will facilitate slower, more sustained use of raw materials from petroleum resources, including engineering plastic, and materials used for energy, and that this will result in less landfill disposal and incineration without heat recovery, as well as less illegal dumping. In addition, it is predicted that a circular

The infectious spread of COVID-19 was quickly accompanied by a worldwide shortage of glass vials in the health care industry, which is likely to have a major impact on the development and distribution of vaccines. This situation has drawn attention to TOPAS® COC, which possesses glass-like transparency with high-purity, as a glass alternative that is contributing significantly to the health care industry, particularly in meeting the rapidly growing needs for vaccine packaging and container materials.Vials which use TOPAS have been subjected to numerous tests and are already starting to find their way onto the market. In addition to its transparency, TOPAS is attracting attention worldwide due to the fact that it does not easily react with other chemical substances (highly chemically inert) and does not impede the various analyses. We want to see an end to the COVID-19 pandemic, and we, through our products, are helping the health care industry to do this.

Used by more than 30,000 people

in 50 countries worldwide

Handles over 15,000 requests

and inquiries per year

economy would lead to more active adoption of renewable energy and resources, thereby promoting resource and energy eff ic iency across the ent i re product l i fe cyc le , f rom manufacturing to consumption to disposal, and this, in turn, would lead to further reductions in greenhouse gas emissions across the life cycle, including manufacturing, with the stated goal of Europe and Japan to achieve net-zero greenhouse gas emissions by 2050.

We have established a free, on-line technical support service, “WEB@TSC®,” for receiving support 24 hours a day, 365 days a year. In addition to providing various technical information, other product-related inquiries, requests for safety and export-related certificate issuance and other customer needs are meticulously handled. This easily accessible, Web-based service has been well-received among our customers.

Providing Greater Technological Support via On-line

HI-LEX CORPORATION [Overall Award] Prize for Excellence

DENSO CORPORATION Top Performance Award

■ Swift issuance of various certifications via a website has been of great help.■ Thanks to a more user-friendly website, we can easily get the necessary

information at any time.■ For physical properties data not listed on the website, we received

a response based on testing data. It helped our product design.

1Research and develop products which effectively utilize reusable, plant-derived raw materials and mechanical/chemical recycling processes

Customers' voice Consumption

　　　 Production

R

ecyc

ling

（1） Utilize more biomass andother renewable energy and materials

（2） Supply reusable and durable products and long-life materials

（3） Supply product users with additional services, such as maintenance

（4） Move from exclusive ownership to shared use among consumers in society

（5） Utilize recycling-focused designs based on classification and separation of waste products

TOPICS

Pick UP

In May 2020, we were presented with the Top Performance Award by DENSO CORPORATION, one of Polyplastics' customers. This decision was based in large part on the significant contribution that Polyplastics’ own analysis method - the “Hole-Drilling Method” - has made in solving the technical problems facing DENSO, and it is a great honor to be chosen as “one of DENSO’s most outstanding business partners, providing a balance of quality, cost and supply.” We will continue to work alongside our customers to develop techniques and technology tailored to their needs.

Engineering Plastic Business Contribute to shaping of an abundant society through engineering plastic solutions

Raw materials

1Research and develop products which effectively utilize reusable, plant-derived raw materials and mechanical/chemical recycling processes

2Pursue market development for long-life, durable products with high added value, and improve the precision of technology used to estimate reusable lifespan

3

Explore methods for actively achievinggreenhouse gas reductions in the process of production and transportation, as well as methods for communicating greenhouse gas reduction by product

ai162579895326_p11-12_k2_E_0709.pdf 1 2021/07/09 11:49

The Polyplastics Group pursues reduction of the Group's environmental footprint as a whole through the initiatives undertaken by each plant individually. This page presents key topics and themes, together with performance, for the fiscal year. In line with our newly established

Group Environmental Basic Policy, we have made further efforts in environmental impact reduction activities to achieve medium and long-term environmental targets in our Mid-Term Business Plan.

Reduce CO2 emissions intensity by 26% or more by FY2030 (compared with FY2013)

Long-Term Vision

Theme 3

By FY2030, achieve and maintain zero-emissions targets for the entire group

Long-Term Vision

The Kuantan Plant, which has had a high rate of landfill disposal and incineration without heat recovery, has pursued sludge recycling and plastic film and cushion pad recycling. The Kaohsiung Plant also has proceeded to use the dust from bag filters as fuel, and, although still slightly above the target for FY2020, the rate of landfill disposal and incineration without heat recovery declined to 18.4%.

Along with a reduction in production volume, PRTR substance emissions at the Fuji Plant declined 17.1% in FY2020 compared with FY2019. The plant is continuing to work to reduce emissions further through a variety of initiatives, including introducing emissions control equipment.

Theme 3

Air Pollution Emissions Reduction　

Theme 4

Theme 1

CO2 Emissions Reduction

As a result of the Kuantan Plant’s decision to switch to external procurement of steam power (at left), the plant achieved a 9.1% improvement in energy efficiency compared with FY2019.

The Kuantan Plant in Malaysia has switched from using its own steam boiler to using that of another company whose energy source creates significantly fewer CO2 emissions. As a result, the plant has reduced its emissions by 27.9% compared with FY2013.

*1 Release, usage and generation per production volume *2 New medium-to-long-term focused targets established in FY2020*3 Abbreviation of “Pollutant Release and Transfer Register”

14.00

19.00

24.00

29.00

34.00

39.00

44.00

2014 201720162015 2018 2019 2020 20222021

Rate of landfill disposal and incineration without heat recovery (%)

■ FY2020 Performance

13 14

ResultTarget

Reduce CO2 emissions intensity*1 by 20.4% compared with FY2013

Reduce PRTR substance atmospheric emissions by 50% by FY2022(compared with FY2019 for the Fuji Plant)

Reduce specific energy consumption by 1% or more compared with FY2019

Rate of landfill disposal and incineration without heat recovery under 17.9%

TargetCompared with FY2013

27.9% reduction

Compared with FY2019

17.1% reduction

Rate of landfill disposal and incineration without heat recovery

18.4%

Compared with FY2019

9.1% reductionResult ResultTarget

ResultTarget

Overall group

Theme 2

Energy Saving Activities

Industrial Waste Reduction

Overall group

Overall group

Fuji Plant

Overall group

��

��

CO2 Emissions Reduction Energy Saving Activities

Reducing Emissions of Chemical Substances (PRTR Substances*3)

Theme 1 Theme 2

Industrial Waste ReductionTheme 4

Based on Corporate Philosophy, Group Code of Conduct, and Polyplastics’ CSR Approach, we will make efforts to reduce the environmental burden in all business activities of product development, production, and sales, aiming to achieve both economic development and global environmental conservation. We will contribute to the realization of sustainable society.

We seek to improve quality of life in society through our products, as well as to contribute to the development of a circular economy by providing products that are smaller and more lightweight with a longer-life.In addition, we will keep actively addressing environmental and other social issues by developing and offering products and solutions which contribute to global environmental preservation.

2.Contribute to the environment through our products

3.Reduce the environmental burden of all business activities

4.Foster an environmental mindset

We actively seek to protect the global environment through the following initiatives that we undertake in all of our business activities, including product development, production and sales.

■ Regular and quantitative assessment ofenvironmental burden

■ Reduction of CO2 emissions to mitigateclimate change

■ Promotion of energy-saving activities■ Reduction, reuse and recycling of waste

materials■ Reduction of chemical and waste materials

emissions into the air, water and soil■ Utilization of renewable energy■ Effective utilization of water resources

（Fiscal year）

Reduce CO2 emissions intensity by

21.5%by FY2022 (compared with FY2013)

Reduce the rate of landfill disposal and incineration without heat recovery to less than

16% by FY2022

Reduce PRTR substance emissions volume by

50% or more by FY2022 (compared with FY2019)

Reduce specific energy consumption by

1% or more per yearby FY2022 (compared with FY2019)

by FY2022

The Polyplastics GroupEnvironmental Basic Policy

1.Comply with all environmental laws and regulations

FY2020 FY2020

FY2020

3,0003,5004,0004,5005,000

5,5006,0006,5007,0007,5008,000

2019 2020 2021 2022

PRTR substance emissions (kg)Fuji Plant target

Fuji Plant performance

（Fiscal year）

New

1.15

1.25

1.35

1.45

1.55

1.65

1.75

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 （Fiscal year）

CO2 emissions intensityGroup target

Group performance

Group target

Group performance

Group target

Group performance

New target*2 established in FY2020

0.57

0.63

0.61

0.59

0.65

0.67

0.69

0.71

0.73

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Specific energy consumption

（Fiscal year）

New target established in FY2020



FY2020 Environmental Targets and Performance

Harm

ony with Environm

ent Reduce environmental im

pact and carry out business operations in harmony w

ith environment　

■ Medium and Long-Term Environmental Targets

Establish VOC measurement methods and benchmarks

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15 16

The Fuji Plant is actively working with logistics companies to reduce CO2 emissions generated from products transportation processes. There was a large drop in demand due to the COVID-19 pandemic; however, the subsequent and sudden rebound in demand has meant a corresponding increase in urgent shipments. As a result, specific energy consumption, as an indicator of the energy efficiency of our logistics operations, was 3% higher than FY2019, but we are actively working to shorten overall delivery distances, to utilize backhaul shipping, modal shifts, and other practices that will help reduce our CO2 emissions.

2468

1012

Within the Polyplastics Group, together with in-house contractors, we are working to raise safety awareness among our employees with the goal of eliminating occupational accidents.

��

�� Reduce environmental impact through raw materials management with RFID

Environmentally-friendly logistics

Group-wide safety activities

��

��

TOPICS

��

��

Installation of additional detectors as a result of stronger VOC regulations in ChinaTo reduce greenhouse gas emissions, China’s government has strengthened its VOC (Volatile Organic Compound) gas detection and warning-related standards.Accordingly, Nantong Plant has installed additional gas detectors to ensure any VOC or other gas leakage can be immediately identified and treated.

2016

(Incidents)

OIR

(Fiscal year)

（OIR）

2017 2018 2019 20200 0.0

0.10.20.30.40.50.6

Zero lost-time injuries or non-lost-time injuries including in-house contractors

Failure to meetLost-time injury 5 casesNon-lost-time injury 2 cases

OIR *

Target

OIR ： 0.33

Regrettably, there were seven occupational accidents during this fiscal year. Urgent action was, of course, taken on-site when the accidents occurred, and permanent prevention measures are being investigated.*Occupational accident incidence safety indicator. This indicator represents the number of employee lost-time injuries and non-lost-time injuries per 200,000 working hours.

RORO vessel* shipping

Utilize backhaul shippingIn the past, the Fuji Plant had been using courier delivery for some small cargo deliveries to the Chubu region. In FY2020, backhaul shipping by truck of small cargo deliveries of raw materials from the same Chubu region to the Fuji Plant was introduced as a means of improving transportation efficiency. Because reducing small cargo deliveries contributes to reducing delivery distance, the use of backhaul shipping is being actively explored.

Shorten delivery distance

Group target and results

In March 2020, following evaluation by the Development Bank of Japan Inc.(DBJ), using the screening system (grading system) it developed to evaluate corporate environmental management, Polyplastics was rated as an “Advanced company in activities for environment preservation.”

Polyplastics recognized by the DBJ for its “advanced, environmentally-conscious initiatives”

TOPICS

2019

In terms of CO2 emissions reduction, railway shipping produces fewer emissions than maritime shipping, which produces fewer emissions than truck shipping. We were actively pursuing railway shipping up until the year before last, when torrential rains and other factors made railway shipping an impractical option; so, we then actively began pursuing RORO vessel shipping as an alternative. We are currently exploring how to expand the scope of the product delivery area serviced by RORO vessels.

Prior to FY2020, after the processing of polymer resins at a compounder in the Chubu region, the compounded products were shipped back to the Fuji Plant instead of being directly shipped to customers in the Kanto region. In FY2020, these delivery routes were revised so that the compounded products could be sent directly to the customers in the Kanto region without returning to the Fuji Plant, thereby shortening delivery distance. This shortening of delivery distance is connected with a reduction in CO2 emissions. Moving forward, we will continue to work towards even greater optimization of our delivery routes.

*“RORO” stands for “roll-on roll-off” and involves the use of shipping vessels that carry the cargo-laden trucks and trailers directly.

Introduction of raw materials management system with RFIDOne of the challenges was improving product quality and operational efficiency via raw materials management. This challenge consists of the following four specific points.

Reducing environmental impactThis initiative is expected to improve product quality and operational efficiency. Furthermore, it is also expected to reduce the product waste generated from wrong input of raw materials and to reduce paper usage as a result of moving over to a paperless system. That leads to reducing the environmental impact of business activities. Moving forward, Polyplastics will continue to focus on the production advancement, the delivery of high-quality products, and the reduction of environmental impact in its processes.

To realize the above goals, raw materials management system with RFID was introduced. This system makes it possible to perform real-time checking and assessment of raw materials stocks by affixing RFID tags to raw materials pallets, reading/writing the data via antennas set up around the plant and handy terminals, and connecting to various other systems.

Product quality improvement● Prevent wrong input of raw materials● Ensure traceability of raw materials

Operational efficiency improvement● Prevent errors by eliminating manual checking● Use automated checking to shorten operation time, eliminate checklists

Overview and impact of raw materials management system with RFID

Raw materials data is written into the RFID tag

02 03 0401

RFID tag

Warehouse storage and conveyance inside the plant Sorting area Raw materials input

and shipmentReceiving raw materials

After RFID tag data is identified at each production process, raw materials are used

Label

Instruction display

Tag data is obtained by the receiverStorage status is confirmed in real-time

Warehouse

RFID

Server

Label is generated using data read from the RFID tag

RFID tag RFID tag

● Prevent wrong input of raw materials● Visualize raw materials storage locations● Improve precision of product traceability● Prevent operational errors by eliminating manual checking● Increase operational efficiency by going paperless (e.g., eliminating the need for paper checklists)

● Reduce the amount of wasted product (waste material) generated from wrong input of raw materials

● Reduce paper usage by moving over to a paperless system

Improve product quality and operational efficiency

Also contribute to environmental impact reduction

RFID, which stands for “Radio Frequency Identification,” is a system which uses scannersto read and write data stored in the memory of specialized tags.(RFID in use at the Fuji Plant)

? What is “RFID?”

Target0.07 or less

Since 2018, when it marked its 50th year in operation, the “Fuji Plant Restructuring Project” has been underway to develop a vision for the plant's future and to come up with and implement measures that will turn this vision into reality. One of these measures was the introduction of raw materials management system with RFID.

Harm

ony with Environm

ent Reduce environmental im

pact and carry out business operations in harmony w

ith environment　

Safety Foster Greater Safety Aw

areness among A

ll Employees

Result

Number ofincidents

Scanner

＜ 0.07

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At Polyplastics, we have made efforts to create a work environment where employees can appealingly realize their potential, irrespective of their gender, nationality, age or other attributes. As part of this, we have established a management system in our Group companies utilizing national staff who play a larger and more independent role.There have been already some national staff who played important roles as top management in Group companies, and FY2020 saw that other national staff members were newly assigned as managing directors in Group companies. Promoting localization of management makes it possible to meet the needs of local employees meticulously, to achieve smooth business

operation based on deep understanding for each country's environment, and, as a result, to provide more opportunities for national staff to achieve better performance.

17 18

F-BASE, which is a key element of the Fuji Plant Restructuring Project (see p.15), was completed in December 2020.The role of F-BASE is to “bring together the collective wisdom of the Fuji Plant and promote external collaboration,” as well as to further promote human resources development and diversity. In order to achieve these goals, F-BASE is has a carefully designed layout and setup fil led with spaces conducive to human interaction.

Up until now, the Fuji Plant has had each department working in its own separate space, which physically makes it harder for different departments to work together or for more natural communication to take place between generations. F-BASE helps resolve this by bringing together the different departments onto a single floor, and by installing free-address seating and spaces that are conducive to debate and discussion, thereby stimulating more active collaboration among employees. This will support employees by giving them a new and innovative workspace which prioritizes communication and facilitates more independent working styles.

I became a member of PTM in April 2003 as the first employee hired upon construction of the PTM Nantong Plant, and in the years since, I have worked in the Human Resources Department, ESH Department, and as General Plant Manager and, later, Assistant Managing Director before receiving the great honor of being appointed Managing Director of PTM. In recent years, the Chinese government has enacted a variety of safety enhancement, environmental protection and energy efficiency-related laws and regulations for chemical plants. In order to ensure stable plant operations in this environment, it is essential that not only the company but all of its employees, as well, be acutely responsive to the changes around the company. I view my role as providing employees with a positive model and fostering mutual trust that leads to the development of a highly productive team, from which both the employees and the company will benefit and grow.

Create an employee-friendly workplacePolyplastics achieved the highest rating of the “DBJ Health Management Rating” for finance

Childcare Leave Usage Rate Percentage of Employees with Disabilities

In December 2020, the Development Bank of Japan (DBJ) introduced the world's first finance menu for its “Health Management Rating” method, and, in terms of “DBJ Health Management Rating” finance, we received the top rating in recognition of the high level of emphasis it places on employee health.

We actively encourage employees to make use of childcare leave.In FY2019, the childcare leave usage rate among women employees was 100% and 73.3% among men.

We strive to provide a work environment which is conducive to persons with disabilities.In FY2020, persons with disabilities comprised 2.39% of Polyplastics’ workforce.We will continue our proactive hiring practices in the future.

1.81.92.02.12.22.32.42.52.6

2017

2.26%

2.43%

1.72%

2018 2019 2020

（%）Statutory

employment rate 2.2%

(from FY2018)

Statutory employment rate

2.0%(up to FY2017)

2.39%FY2020

Source: Ministry of Health, Labour and WelfareBasic Survey of Gender Equality in Employment Management in FY2019

(Fiscal year)（%）

Men

Women

0 20 40 60 80 100

100%

73.3%

FY2019 National average

83.0%

FY2019 National average

7.48%

We implement a standardized training program for newly assigned managers across the entire Polyplastics Group designed to facilitate mutual understanding and respect of diversity, cultivation of globally applicable skills and the creation of a human resources network.

In Taiwan, management training was provided to managers which utilized the LIFO approach, focusing on individual strengths and styles. Thanks in part to this, employee satisfaction scores increased by 27.3% in the FY2020 employee engagement survey.* LIFO: Life Orientations

Training for newly assigned managers

TOPICS

Management training using LIFO*

The different departmentsare brought together on asingle floor equipped withfree-address seating tofacilitate natural collaboration.

For a passing chat, there isthe Huddle Point; if thatchat develops into adiscussion andconsultation session, there is the Solution Field.

Incorporate a seating height designed to encourage free exchange of ideas and opinions between managers and employees.

This space is foremployees who want achange in mood andperspective, a place wherethey can concentrate.

One Floor

Solution Field & Huddle Point

Solution Field & Huddle Point

Manager Zone

F-CAFÉ

National staff appointed Managing Director of Group company

��

��

��

Manager Zone

Role of F-BASE in the Fuji Plant Restructuring Project

Fostering changes in working style and creating an office environment that stimulates communication

Phase 1 Phase 2 Phase 3 Phase 4FY2019FY2018 FY2021 FY2025

Improving efficiency with smart technology and automation,

and laying a foundation for innovation

Combining gathered expertise with more sophisticated

analysis capabilities

Productivity innovation through new technology/process development

Time

Achievement

By improving efficiency with smart technology to create extra resources, we will gather our expertise at F-BASE and move forward with further technological innovation

※Present

Planning

Creating extra resources

Visualizing productionQuality improvement

Technology developmentOverseas expansion

Gatheringexpertise

ProductioninnovationF-BASE

Construction of

Our aim is to create a company which is accommodating of diverse human resources and which enables them to effectively and happily perform their duties. As the foundation for such an environment, we develop mechanisms to facilitate the taking of paid leave, and we operate various employee-focused systems, including employee reappointment and rehiring systems and childcare and family care leave systems.

Name: Walter Dong　　Company: PTM Engineering Plastics (Nantong) Co., Ltd. / Polyplastics (Nantong) Ltd.　　Position: Managing Director

Develop Talented and Engaging Hum

an Resources Utilize and contribute to development of talented and engaging hum

an resources

Build a more robust management system in our Group companies via national staff

Launch innovative F-BASE workspace to support future working styles

Training systems to foster diverse human resources Initiatives for stimulating collaboration

Statutory employment rate

2.3%(from March 2021)

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As a result of an employee-proposed initiative, employees at the Leuna Plant in Germany donated approximately 2,000 euros to an organization which provides support to local pediatric cancer patients and their families. The money donated will be used as funding for recreat ional act iv i t ies and the purchase of toys for children who have reached the end of their long-term treatment and for supporting the families of children who have died from cancer.

19 20

This initiative is a great way to connect to nature and experience seeing how human actions directly affect the waterway. Even though it’s a small activity in the world, it brings elation that we are helping to improve the watershed locally and that we can collect data to help educate the public about the importance of water health. Although just two PolyUS members and their families participated in this year's event, we are striving for more participation in the future.

Organizer's Comments

Fuji-Higashi High School

Volunteers from PolyUS sort and check the insects found in the sediment

Volunteers study sediment ata second site

PolyUSJolene Kijorski

Yoshiwara-Kita Junior High School Welcoming students from Fuji-MinamiElementary School

��

��

Farmington HillsLocal river water quality and microbiological surveys

Three focus areas for social contribution activities

At Polyplastics, we pursue CSR activities in the entire Group.Up until now, each Group company has acted independently in pursuing CSR activities; however, in order to enhance both the quality and quantity of our activities, we have created a network which brings all of our CSR-related members from every company together. The aim of this network is to facilitate the smooth exchange of ideas and information between the Headquarters and Group companies, as well as between the Group companies themselves, in order to make our initiatives more active and effective.Also, in implementing our social contribution activities, the CSR-related members belonging to this network will be spearheading local initiatives aimed at “contributing to the prosperity of local areas,” “cultivating the next generation” and “supporting employee-led social contribution activities.”

In October 2020 and January 2021, some of the employees in PolyUS (in Farmington Hills, Michigan, USA) volunteered to collect data to monitor the condition of the Rouge River, which is within the local area of the office. These were bug-hunt surveys conducted by an NPO which is overseeing the condition of the Rouge River. On the day of the survey, our employees collected sediment from the riverbed and dispersed it into trays. Insects (specifically invertebrates) were collected from the trays and cataloged. These collected insects were analyzed by the NPO to determine the impact of environmental changes and human impacts to the watershed. The data will be also used to publish the report and to hold future events. Water is critical to maintaining the environment in all communities. As a company with its office located near the Rouge River Watershed, it is very important to know the condition of the river, to cooperate in maintaining it, and to understand the impact of our business on the local environment and ecosystems.

Kuantan Donating plant equipment to educational institutions

The Kuantan Plant in Malaysia made a donation to educational institutions of injection molding machines, analytical instruments and other plant equipment that is no longer used. Everything that was donated was equipment that is no longer suitable for industrial use but still more than suited for educational use. This initiative was intended as way of contributing to the education and development of the next generation.

FujiInitiatives for cultivating the next generation

Leuna Donating to organization supporting pediatric cancer patients and their families

Receiving the office building's trash separation contest award

Employees at the Shanghai office in China are being proactive about trash separation in their office. And, in FY2020, their efforts were rewarded with the receipt of the Environmental Award as part of the Trash Separation Contest held at their office building.

Shanghai

Contributing to the prosperity of local areas

Cultivating the next generation

Supporting employee-led social contribution activities






Employees around the world doing what they can to enrich their local communities

Providing the children who represent the future of society with learning opportunities via Polyplastics-style initiatives

Supporting volunteering-minded employees at each of our business sites

CSRNETWORK

CSRNETWORK

CSRNETWORK

The social contribution activities focused on in the CSR Network are specially marked.

CSRNETWORK

In recent years, children in Japan have fewer opportunities to experience manufacturing first-hand.As a manufacturing company, we are motivated to help cultivate the next generation, as they represent the future of manufacturing, and, towards that end, we undertake educational activities aimed at local children and students.In FY2020, we worked in coordination with the Fuji Chamber of Commerce & Industry to provide vocational presentations at Shizuoka Prefectural Fuji-Higashi High School and Fuji Municipal Yoshiwara-Kita Junior High School.We also welcomed students visiting from Fuji Municipal Fuji-Minami Elementary School as part of their life sciences studies.

Social Contribution Activities O

pportunities provided by the Polyplastics Group, as a corporate citizen, to m

ake society better　

Accelerate CSR activity through the “CSR Network”

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Ten employees in Taiwan took part in a volunteer event held in Kaohsiung C i ty in suppor t of persons with disabilities. They had an enjoyable time barbecuing with disabled attendees. It was a valuable experience which afforded them the opportunity to provide support to those in need.

　

22

��

��

Hold a “Compliance Photo Contest”

Across the Polyplastics Group, August is Compliance Awareness Month, and it is used as a time to reaffirm the importance of compliance as well as to ensure compliance-related practices are in place and being followed.During Compliance Awareness Month in FY2020, individual companies within the Group implemented their own, original program in addition to the Group-wide program in order to ensure that the information and approaches were tailored to local conditions and social considerations.In Germany, TAP and PolyEU jointly ran a Compliance Photo Contest intended to raise individual awareness about compliance violations. Photos portraying the sorts of workplace compliance violations that can commonly occur were collected and a winner was selected.

At Polyplastics, we have applied the “three lines of defense” approach, which is widely used in internal control, to compliance. The three lines of defense can be roughly sorted between “Operations departments,” “Administrative departments” and “Internal auditing departments,” and each of these performs specific defense functions tailored to their role. In FY2020, these three lines of defense were introduced into three areas representing high compliance-related risk (quality-related fraud, subcontractor-related legal impropriety, harassment prevention).

Introduction of “three lines of defense” to strengthen the compliance system

Polyplastics places great importance on ensuring company business practices are in compliance with laws and social norms and, towards this end, promotes compliance-related activities from a variety of perspectives to enhance each and every employee’s awareness of compliance. In FY2020, some Group companies implemented their own, independent initiatives in addition to the Group-wide activities.

First line of defense Second line of defense Third line of defense

Take ownership of compliance risks by performing risk control

Perform monitoring of the first line of defense

Provide reasonable guarantees

Internal auditing departmentsOperations departments Administrative departments

● Identify compliance risks● Take action to

address identified risks

● Check that the PDCA cycle isbeing implemented properly

● Provide training to the first line of defense as needed

● Perform checking from anindependent position

21

Doing what we can in the midst of the COVID-19 pandemic

Japan“Mottainai* Initiatives” during the COVID-19 pandemic

Each year for the past three years, we held the "Mottainai Initiatives" event in which our employees can donate household goods that they no longer use. In a normal year's event, employees bring in their goods on the event days, and they are distributed to those in need by NPO Mottainai JAPAN; however, because the event had to be canceled in FY2020 due to the COVID-19 pandemic, each site in Polyplastics set up donation boxes instead. After discussion with the NPO about what goods to donate, we decided, based on the current situation, to include soap and other hygiene items. Also, in order to give employees a better understanding of the pandemic situation in the recipient countries and help give them a greater incentive to participate, information about what is happening in those countries was provided by the NPO and compiled into articles that were shared in company bulletin board. The employees responded to this by donating nine boxes full of goods, including soap.

Employees at the Hong Kong office collected four bags worth of clothing, shoes and other items from their employees and donated these to a local charity.

Normally, employees give the presentations at local schools; however, in FY2020, the format was changed to a webinar for students at universities in Mumbai and Chennai in India. It featured employees talking about their work, including giving examples of Polyplastics technology that has been adopted for use in the automotive industry.

This initiative was originally planned as an office-based recycling promotion initiative, but, because employees were working from home, the emphasis was changed to promote recycling within the employees’ individual households.

By utilizing the regular meetings, employees presented and exchanged information about social contribution activities that they were pursuing individually.

A platform was created for employees to introduce and share information about social contribution activities that they can pursue on their own, such as energy-saving activities.

Hong Kong Taiwan

Mumbai and Chennai


Hong Kong

CSRNETWORK

CSRNETWORK

CSRNETWORK

CSRNETWORK

CSRNETWORK

Clarification of each department’s roles following introduction of the three lines of defense



Supporting employee-led social contribution activities Supporting employee-led social contribution activities



The winners enjoy the top prize meal voucher

A photo enactment of an employee “receiving an outside kickback” won the top prize.

Social Contribution Activities O

pportunities provided by the Polyplastics Group, as a corporate citizen, to m

ake society better

Compliance Prioritize com

pliance and carry out business in a socially fair and appropriate manner

Supporting the social contribution activities of individuals

Volunteering to supportpersons with disabilities　

Farmington HillsOnline vocational

presentation for universities

Sharing insights from employees' social contribution activities

Sharing information about how to contribute to society

Promoting recycling in households

Mexico City

Group company's own compliance-related activities

As a result of the infectious spread of COVID-19, many of the social contribution activities that involve employees gathering together had to be canceled in FY2020. However, at Polyplastics, because we believe that it is important to continue these activities, even if the scale is reduced or the formats are changed, we have tried and found different ways to keep contributing to society, such as by conducting activities from home or via online. Here are some examples of the activities we carried out in FY2020.

* Mottainai means “What a waste!” in Japanese.

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Documents

Driving Polyplastics CSR with SDGs