6
In 1997, we established a Management Policy and Action Guidelines for Environment, Safety, and Health/Hygiene. ESH Management Policy We at Polyplastics take a global perspective in our business activities, continuously and steadfastly promote ESH activities, and make every possible effort to achieve a healthy and prosperous society. ESH Action Guidelines ● Observe laws, rules, and regulations in business activities and work toward environmental protection and safety. ● Provide products and services that satisfy customers and that are easy to use. ● Continue accident-free operations and ensure the safety of local communities and employees. ● Confirm the safety of materials, interim products, and finished goods, and prevent harm to the health of employees, distributors, customers, and general consumers. Assess and reduce environmental impact at all stages from product development to disposal, and work toward environmental protection. Actively guide and support the environmental activities and safety of our group businesses and work toward a safer, better environment in the Polyplastics Group as a whole. ESH activities Polyplastics defines its ESH (Environment, Safety, and Health/Hygiene) activities to broadly comprise its Responsible Care activities* 1 as well as the pursuit of regulatory compliance and the Group’s responsiveness to international management systems.* 2 * 1 Activities that a chemical company undertakes to achieve its independent targets concerning Environment, Safety, and Health/Hygiene (ESH) to drive continuous improvement. The range of targets spans the entire product cycle, from development through manufacture, distribution, end use, and disposal. * 2 An environmental management system (ISO 14001) and an occupational health and safety management system (OHSAS 18001) System for Promoting ESH Activities Targets and Implementation of Specific Items to Reduce Environmental Impact President Director Responsible ESH Activities (Group ESH Meeting) Polyplastics has acquired ISO 14001 and OHSAS 18001 certifications for its manufacturing facilities as in the graph below. Moreover, the Group is committed to upgrading the level of its ESH activities by having these facilities conduct reciprocal voluntary audits once a year. Malaysia/Kuantan Plant China/Nantong Plant (PTM) China/Nantong Plant (PNL) LCP Leuna Carboxylation Plant GmbH Voluntary Methods/ Internal and Mutual Audits Headquarters Sales and Marketing Division Research and Development Division Fuji Plant ISO 14001 Environmental Management System OHSAS 18001 Occupational Health and Safety Management System We make it the top priorities for Polyplastics to minimize the effects of our business activities on the environment and to protect the safety and health of the residents in the vicinity of our plants and of our employees. Environment, Safety, and Health Initiatives * 1 Abbreviation for “Pollutant Release and Transfer Register.” A system for recording and reporting the volume of chemical substances released into the environment by plants and the volume of chemical substances in industrial waste. * 2 Release, usage, and/or generation per production output Measures Current status of achievement ( = achieved = needs attention ×= unachieved ) Page Number 17 page 17 page 18 page 1. Reducing Emissions of Chemical Substances 2. Energy Conservation Activities and Reducing Greenhouse Gas Emissions 3. Reducing Waste and Promoting Recycling Target 2015 2014 2013 Reference Year Reference Year Reference Year Reference Year Japan/Fuji Plant POM Plant introduction Taiwan/Dafa Plant Malaysia/Kuantan Plant China/ Nantong Plant (PTM/PNL) Germany/Leuna Plant See page 37 for details on each plant. 1.9% reduction 1.9% reduction 55% reduction 55% reduction 4.9% reduction 4.9% reduction 13% reduction 13% reduction 2016 Taiwan/Dafa Plant Management Policy and Action Guidelines for Environment, Safety, and Health/Hygiene PRTR Law* 1 By the end of fiscal 2016, reduce the basic unit* 2 of atmospheric emissions of PRTR substances by 30% over fiscal 2013. Energy Conservation Reduce the basic unit of energy consumption by 1% or more per year. Industrial waste output Reduce the basic unit of waste by 1% or more per year. Reduce the basic unit of CO2 by 1% or more per year. Reducing greenhouse gas emissions CSR Report 2017 Polyplastics Co., Ltd. 16 15 Environment, Safety, and Health Initiatives

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Page 1: Environment, Safety, and Health Initiatives · PDF fileWe make it the top priorities for Polyplastics to minimize the effects ... Energy Conservation Activities and Reducing Greenhouse

In 1997, we established a Management Policy and Action Guidelines for Environment, Safety, and Health/Hygiene.

ESH Management PolicyWe at Polyplastics take a global perspective in our business activities, continuously and steadfastly promote ESH activities, and make every possible effort to achieve a healthy and prosperous society.

ESH Action Guidelines● Observe laws, rules, and regulations in business activities and work toward environmental protection and safety.● Provide products and services that satisfy customers and that are easy to use.● Continue accident-free operations and ensure the safety of local communities and employees.● Confirm the safety of materials, interim products, and finished goods, and prevent harm to the health of

employees, distributors, customers, and general consumers.● Assess and reduce environmental impact at all stages from product development to disposal, and work toward

environmental protection.● Actively guide and support the environmental activities and safety of our group businesses and work toward a

safer, better environment in the Polyplastics Group as a whole.

ESH activitiesPolyplastics defines its ESH (Environment, Safety, and Health/Hygiene) activities to broadly comprise its Responsible Care activities*1 as well as the pursuit of regulatory compliance and the Group’s responsiveness to international management systems.*2

*1 Activities that a chemical company undertakes to achieve its independent targets concerning Environment, Safety, and Health/Hygiene (ESH) to drive continuous improvement. The range of targets spans the entire product cycle, from development through manufacture, distribution, end use, and disposal.

*2 An environmental management system (ISO 14001) and an occupational health and safety management system (OHSAS 18001)

System for Promoting ESH Activities

Targets and Implementation of Specific Items to Reduce Environmental Impact

President

DirectorResponsible

ESH Activities(Group ESH Meeting)

Polyplastics has acquired ISO 14001 and OHSAS 18001 certifications for its manufacturing facilities as in the graph below. Moreover, the Group is committed to upgrading the level of its ESH activities by having these facilities conduct reciprocal voluntary audits once a year.

Malaysia/Kuantan Plant ●●

China/Nantong Plant (PTM) ●●

China/Nantong Plant (PNL) ●●

LCP Leuna Carboxylation Plant GmbH ●

Voluntary Methods/Internal and Mutual Audits

Headquarters

Sales and Marketing DivisionResearch and Development Division

Fuji Plant ●●

●ISO 14001Environmental

Management System

● OHSAS 18001Occupational Health and

Safety Management SystemWe make it the top priorities for Polyplastics to minimize the effects of our business activities on the environment and to protect the safety and health of the residents in the vicinity of our plants and of our employees.

Environment, Safety, and Health Initiatives

*1 Abbreviation for “Pollutant Release and Transfer Register.” A system for recording and reporting the volume of chemical substances released into the environment by plants and the volume of chemical substances in industrial waste.*2 Release, usage, and/or generation per production output

MeasuresCurrent status of achievement

(○ = achieved △ = needs attention × = unachieved) PageNumber

17page

17page

18page

1. Reducing Emissions of Chemical Substances

2. Energy Conservation Activities and Reducing Greenhouse Gas Emissions

3. Reducing Waste and Promoting Recycling

Target201520142013

ReferenceYear

ReferenceYear

ReferenceYear

ReferenceYear

Japan/Fuji Plant

POM

Plant introduction

Taiwan/Dafa Plant Malaysia/Kuantan Plant China/ Nantong Plant (PTM/PNL) Germany/Leuna Plant

See page 37 for details on each plant.

◯1.9% reduction

◯1.9% reduction

○55% reduction

○55% reduction

◯4.9% reduction

◯4.9% reduction

○13% reduction

○13% reduction

2016

Taiwan/Dafa Plant ●●

Management Policy and Action Guidelines for Environment, Safety, and Health/Hygiene

PRTR Law*1By the end of fiscal 2016, reduce the basic unit*2 of atmospheric emissions of PRTR substances by 30% over fiscal 2013.

Energy Conservation

Reduce the basic unit of energy consumption by 1% or more per year.

Industrial waste output

Reduce the basic unit of waste by 1% or more per year.

Reduce the basic unit of CO2 by 1% or more per year.

Reducing greenhouse gas emissions

CSR Report 2017Polyplastics Co., Ltd. 1615

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Actual Results of Reducing Environmental Impact

13.1% Reduction

The Fuji Plant constantly monitors various water quality items to prevent environmental pollution due to plant wastewater, and observed laws and regulations. In the unlikely event of abnormal pH in the plant wastewater, the emergency shut-off valve is closed to prevent outflow from the plant.We have revised the method for handling abnormal pH and improved the action taken in order to more quickly observe the environmental control values and perform recovery work. Specifically, this includes the automation of the emergency shut-off valve, an increase in the number of pH meters, and a reconsideration of the positions of the pH measurement. As a result of this revision, valve shut-off can now be completed more rapidly.* pH: A unit describing the degree of acidity or alkalinity.

TOPIC

Industrial waste reduction and recyclingWe are working to reduce the volume of waste materials generated and to recycle in order to reduce the volume of waste materials.Compared with the target of a reduction of 1% compared with the previous year, the reduction of the unit industrial waste output in fiscal 2016 exceeded the target with a decrease of 13.1%.The Fuji Plant has achieved zero emissions (target: 1% or less) every year since fiscal 2004.We will continue to work to further reduce the volume of industrial waste generated.

Basic unit of CO2 (Compared with 2013) 4.9% Reduction

Basic unit of industrial waste(Compared with 2013)

Energy saving activities and global warming countermeasuresIn fiscal 2014, we set the following targets for the whole Group: to reduce the basic unit of energy consumption by 1% or more per year and to reduce the basic unit of CO2 by 1% or more per year. We have been implementing activities toward these goals since, and compared with these targets, in fiscal 2016, we achieved reductions of 1.9% and 4.9% for the basic units of energy consumption and of CO2, respectively.We will continue to work on activities to reduce energy use through our improvement activities and other efforts.

2011 2012 2013 2015 201620142010

0.7

0.8

0.6

ー● Group results ★Group targets

Basic unit index of energy consumption

Up to fiscal 2013, targets were a 1% reduction each year

compared with fiscal 2010 Up to fiscal 2016, targets were a 1% reduction each year

compared with fiscal 2013

Production-related basic unit index of CO2 emissions

2011 2012 2013 2015 201620142010

1.4

1.6

1.5

1.7

1.8

1.9ー● Group results ★Group targets

Preventing air pollution and water pollutionIn order to prevent environmental pollution due to air-polluting substances or plant wastewater, we constantly monitor the follow-ing items and comply with laws and regulations.

NOx (Nitrogen Oxide) emissions Smoke and dust emissions

SOx (Sulfur Oxide) emissions Chemical Oxygen Demand (COD) in wastewater emitted from plants

(t) (t)

■ Group-wide(t)60

30

45

15

0

■ Group-wide

■ Group-wide■ Group-wide

(t)

2016201520142013201220112010

250

200

150

100

50

0

2016201520142013201220112010

20142013201220112010 2016201520142013201220112010

300

200

100

0

20162015

Emissions of PRTR substances(Compared with 2013 using the same conditions as when the targets were set)

Trends in emissions and transfer of registered chemical substances based on PRTR ActFrom fiscal 2001, we identified and published the emissions and transfer of substances subject to the PRTR Act for the entire Group. In fiscal 2016, the 14 substances listed below were those registered under the PRTR Act.Our target was: By the end of fiscal 2016, reduce the basic unit of atmospheric emissions of PRTR substances by 30% over fiscal 2013. We were able to reduce the emissions by as much as 55%. However, new sources were identified at the Fuji Plant in Japan and the Nantong Plant (PTM) in China, so we will continue our efforts to reduce the emissions for these.

PRTR chemical substancesAntimony and its compoundsXyleneSilver and its water-soluble compounds1,4-dioxane1,3-dioxolaneHydrogenated terphenylTerephthalic acidDimethyl terephthalateTriethylamine1,2,4-trimethylbenzenen-butyl-2,3-epoxypropyl etherBenzeneBoron compoundsFormaldehyde

123456789

1011121314

0.08

0.07

0.06

0.05

0.04

0.03

0.02

0.01

ー● Group results ★Group targets

Basic unit index of atmospheric emissions of PRTR substances

2010 2011 2012 2014 20162013 2015

Value including new sources: 0.051

Value using same criteria as when

target was set: 0.018

Here we introduce Polyplastics’ global activities to reduce our environmental impact.Note: Added Nantong Plant (PNL) in China from fiscal 2014, and Leuna Plant in Germany from fiscal 2015. The figures are for January to December up until fiscal 2013 and then for April to the following March from fiscal 2014.

Volume of industrial waste generated and basic unit index

(t)

0.004

0.012

0.008

0.016

0.020

2010 2011 2012 2013 2014 20162015

0

1,000

3,000

2,000

4,000

5,000

0

■ Recycling ■ Incineration without heat recovery ■ Landfillー● Unit industrial waste output ー● Target basic unit

60

30

45

15

0

Basic unit55% Reduction

Improving response measures for plant wastewater pH* abnormalitiesUp to fiscal 2013, targets were a

1% reduction each year compared with fiscal 2010

Up to fiscal 2016, targets were a 1% reduction each year

compared with fiscal 2013

CSR Report 2017Polyplastics Co., Ltd. 1817

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Group Kaizen Convention

In March 2017, teams representing each Polyplastics group company gathered at the Fuji Plant to participate in the Third Polyplastics Group Kaizen Convention. The event featured nine presentations covering a broad array of topics, from reducing environmental impact and improving product quality to ensuring more reliable plant operations and improving workflows. A lively Q&A session also helped raise awareness about Kaizen activities.

TOPIC

Environmental AccountingTransparent and Efficient Environmental Preservation Activities

Our environmental accounting is conducted in accordance with Environmental Accounting Guidelines 2005, issued by the Japanese Ministry of the Environment. Our activities and the effects of our environmental preservation efforts are detailed in the following table.

With transparent activities and efficient environmental preservation activities as our targets, we have employed environmen-tal accounting since fiscal 2002 to quantitatively ascertain and evaluate environmental preservation-related investments, costs, and effects.

We are carrying out Kaizen activities that target all kinds of jobs and tasks, driven by our slogan “Be aware, think and act.” Here, we introduce two examples of our activities to reduce environmental impact, which were part of our Kaizen activities this past fiscal year.

Initiatives to Reduce Environmental Impact

Share of Environmental Preservation Activities in Business (unit: %)

Rate of environmental preservation-related R&D costs as part of total R&D costs

Rate of environmental preservation-related investments as part of total equipment investment

2011

11.7

5.3

2010

10.1

11.1

2012

13.7

1.9

2013

10.9

2.5

5.8

2.0

2014

1.8

2.8

2015

2.4

8.1

2016

Environmental Investments(Cumulative totals since 1990; accumulation started from 2004) Changes in Environmental Preservation Costs

Note: Added Taiwan and Malaysia from fiscal 2004, China (PTM) from fiscal 2008, China (PNL) from fiscal 2014, and Germany (LCPG) from fiscal 2015.The data refer to the periods of January to December for prior to fiscal 2013, January to the following March for fiscal 2013, and April to the following March for fiscal 2014 onward.

20152014 2016

(Millions of yen)

2010 2011 2012 2013

0

2,500

2,000

1,500

1,000

500

(Millions of yen)6,000

4,000

5,000

3,000

2,000

1,000

0

1990 20112010 2012 2013 2015 20162014

●Investments show the amounts used for environmental preservation-related equipment in the fiscal year.●Costs show the actual results of depreciation, mainte-

nance, and labor costs of environmental preservation-re-lated equipment.

At the Nantong Plant, we are carrying out a variety of activities in the aim of reducing materials loss and improving usage rate* in the production processes. To improve usage rate, it is important for us to continue activities for preventing problems (stabilization) and minimizing loss (standardization). We were able to reduce the resin loss by about 40% by revising work procedures to reduce loss during extruder startup and shutdown and by working on the stability in operation. Although we initially approached this challenge with the idea of improving the usage rate, our activities ended up cutting back on waste resin and otherwise reducing our environmental impact as well. We will make efforts for further loss reduction through the steady implementation of Kaizen activities.* Product output against material input volume

Activity Report 1

China/Nantong Plant (PNL)

Production Department

Wang Jianwei (left)

Wang Yonghao (right)

Section Manager Engineer

■ Japan ■ Taiwan ■ Malaysia ■ China (PTM/PNL) ■ Germany

Improvement of materials usage rate

Product identification information is printed on the paper bags used to package resin. Misprints result is not only inconvenience for our custom-ers, but also wasted paper bags and extra reprint work. Our most recent Kaizen activity was to reduce the rate of misprints on our paper bags.Although we identified the root cause of the misprints through careful observation of our packaging process, it took a process of trial and error to finally come up with an effective solution. We ultimately decided to review our entire workflow and make revisions. This allowed us to reduce our defect rate by as much as 75%.We want to solve the problems that can occur in the packaging process, one by one.

Activity Report 2

Malaysia/Kuantan Plant

Production NPP/Polymer

AZRI AMYRUL Bin Zainal Abidin(left)

Assistant PlannerSyahimi Bin Sazini (right)

Associate Engineer

Reduction of misprint rate

Environmental preservation costs

About JPY 2.1 billion

Quantitative Evaluation of Environmental Preservation

Environmental preservation costs (Unit: millions of yen)

Total

Category Main activities

(1) Environmental preservation costs to reduce environ-mental impact caused by production and service activities on the sites (on-site costs)

(7) Other environmental preservation costs

(2) Costs for the reduction of environmental impact in upstream or downstream areas caused by production and service operations (upstream/downstream costs)

(3) Environmental preservation costs for management activities (management activity costs)

(4) Environmental preservation costs for R&D activities (R&D costs)

(5) Environmental preservation costs for social activities (social activity costs)

(6) Costs for environmental damage (environmental damage costs)

(b) Global environmental preservation costs

(c) Resource recycling costs

Details

Investments

331

326

154

172

0

5

0

0

0

0

0

Main pages

17, 18

17

18

21, 22

20

29, 30,31, 32

Total costs

2,111

1,344

15

332

148

62

136

43

27

1,690

5

Period: April 2016–March 2017 Scope: Polyplastics Co., Ltd. ; Taiwan/Dafa Plant, Malaysia/Kuantan Plant, China/Nantong Plant (PTM/PNL), Germany/Luena Plant

(a) Pollution control costs

Assessment of environmentally hazardous substances in products, information provision, and green purchasing

Labor costs for environmental management, ISO14001 operation/maintenance costs, environmental training costs, and environmental impact reduction costsR&D costs to reduce environmental impact in material development and processesCosts for greening, beautification, and other environ-mental activities as well as community event participation and membership fees

Air pollution charges

Energy saving (prevention of global warning)

Reduction, separation, and recycling of industrial waste

Reduction of air/water pollution and chemical substance emissions in the environment

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Product Assessment System

Regulatory compliance chart

Electrical/electronics Automotive Others

Product manufacturing

(Japan, China, Taiwan, Malaysia,

Germany)

(Japan)Product design

(Japan, China, Taiwan, Malaysia,

Germany)

Materials procurementProduct sales (including exports)

Region

Worldwide

Japan

EU

US

China

*1 Safety Data Sheet*2 International Material Data System*3 Registration, Evaluation, Authorization, and Restriction of Chemicals: A regulation for chemical substances in Europe*4 Restriction of Hazardous Substances: A European directive regulating the content of certain hazardous substances in electrical and electronic devices*5 End-of Life Vehicles: A set of European regulations controlling the content of specific hazardous substances in automobiles

Note: More information on these abbreviations can be found on our Corporate Social Responsibility (CSR) page on our company website.

In February 1998, we started to implement stricter regulations for chemical substances in our products than the Act requires, based on the ISO 14001 environmental management system. We created the List of Environmentally Impacting Substances in accordance with existing laws and other regulations to manage chemical substances and their content. We provide customers with products that are environ-mentally friendly, safe, and suitable for human health thanks to this system, including the assessments in the three processes of materials procurement, product manufacturing, and colorants.

BasicSystem

UL FDA

NSF

CQC CAMDS

We have centralized control over the purchased raw materials and request that all raw material suppliers submit data for any chemical substance that is included on List of Environmentally Impacting Substances so that it may conduct product assessments based on this data.

Procurement Assessment

We calculate the total chemical content of all raw materials at the product development stage. If any value exceeds the self-imposed limits set forth in our List of Environmentally Impacting Substances or if the product contains prohibited substances, it is redesigned. With this system, we are able to ensure that targeted chemical substances are kept within our company’s self-imposed limits from the time our products are designed.

Product Assessment

We provide List of Environmentally Impacting Substances to subcontractors engaged in the manufacture of colored products so that they can identify and manage colorants and other chemical substances contained in their products.

Colorant Assessment

Issuance of certifications

ISO

Issuance of SDS*1

IEC IMDS*2

Compliance with various national laws controlling chemical substances

CMJ Food SanitationAct and others

Export-related laws and regulations

Industrial Safety and Health Act

Poisonous and Deleterious Substances Control Act

Pollutant Release and Transfer Register Act

RoHS*4 ELV*5 WRAS andothers

REACH*3 SVHC

List of Environmentally Im

pacting Substances

Every country has its own safety regulations. It is essential to con-form to international product standards so that everyone can use our products safely all over the world. Jun Haruhara from the Polyplastics Quality Assurance Department is a member of the International Electrotechnical Commission*, and he recently re-ceived the IEC 1906 Award. The award is presented to members who have made an outstanding contribution to the IEC’s efforts to standardize electric and electronic devices, systems, and related technologies. This year, Haruhara was recognized for his work with TC112, the committee that evaluates electrical insulating materials and systems. We will continue to actively promote inter-national standardization activities.

Contributing to International Electrotechnical Standardization: Ensuring that people can safely make our products a part of their lives

* The International Electrotech-nical Commission (IEC) is an international organization for the preparation and publication of International Standards for all electrical, electronics, and relat-ed technologies.

Working towards Meaningful International StandardsComments from the winner of the IEC 1906 AwardI’ve actively worked towards international standardization as a representative of Japan and one of the leading stan-dards experts for the plastics industry since 2008. I’ve done this by taking advantage of my experience serving as the electronic materials standards committee chair for the Japan Plastics Industry Federation. In recent years, along with the rapid technology innovation standardiza-tion activities are becoming more important from the as-pect of not only product safety but also corporate multi-national business operations. I’ll continue doing every-thing I can to create meaningful international standards that have value for our customers, our supply chain, and the everyday people who use our products, based on the Polyplastics-Way.

Jun Haruhara, Quality Assurance Department

VOICE

We conduct three assessments (Procurement Assessment, Product Assessment, and Colorant Assessment) in order to ensure that customers can use our products with confidence. By making full use of these assessment systems, we promptly respond to inquiries from customers about the presence and the volume of regulated chemical substances in our products. We also participate in regulation-related activities held by industry groups, propose regulatory changes, and contribute to efforts towards global standardization.

Realizing Product Safety

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Safe and Healthy Workplace- Occupational Health and Safety/Disaster Prevention/Logistics Safety Management

Disaster PreventionAs chemical worksites where chemical substances are handled in large quantities, each plant has not only developed daily activities to prevent disasters but has also prepared emergency response measures in case of disaster.At our plant in the Fuji district, we conduct a general earthquake disaster prevention drill once a year. The disaster prevention drill was conducted in FY2016. It started with a morning call drill, followed by the announcement of official warning, earthquake, and tsunami. In the process of the drill, each employee and each organization check their behavior. The drill also assumes a leak of hazardous chemical materials. Rescue teams practiced administering first aid to victims. Our Tokyo Head Office also participated in disaster prevention drills for our office building. On the day of the exercise, there was a series of drills that included an earthquake, body protection, checking disaster conditions, discovering fires, notifying the fire department, carrying out mock firefighting activities, and providing guidance for evacuation.We’re also conducting the same kinds of drills at our overseas plants. In November, the drill was held at the Nantong Plant in China, and all 180 participating employees were able to evacuate to a safe location within 10 minutes. Rescue teams were even able to safely evacuate injured persons within the time limit as well.To become a company that can respond to disaster promptly, we will continue to seriously engage in each training drill, making the most of the insights we gain while carefully reflecting on areas for further improvement.

Risk Simulation Training InitiativesWe provide risk simulation workshops with our employees and in-house contracting employees as part of our efforts to raise to the safety awareness. We selected simulation equipment that was similar to past accident cases and with cases where rules were already established based on past accidents.The workshops got their start at the Fuji Plant in fiscal 2009 with three types of risk simulation equipment. Today, we’ve expanded to eighteen different types of equipment. We’ve been steadily introducing more devices at our overseas plants since fiscal 2011, which today number nine at China’s Nantang Plant, seven at Malaysia’s Kuantan Plant, and nine at Taiwan’s Dafa Plant. We introduced heat simulators into overseas plants to remind people of the dangers associated with burns. The workshops enable new employees to learn what kind of dangers might exist in their daily operations and also serve as an opportunity for mid-career and veteran employees to re-acquaint themselves with the dangers in familiar work operations.

Unfortunately, in fiscal 2016, there were four major injuries and one minor injury, which prevented us from reaching our group target of “zero major injuries and minor injuries, including in-house contractors” and our numerical target of a 0.07 OIR or lower. Looking at the results for individual plants, we see a larger number of accidents at the Fuji Plant, the Kuantan Plant in Malaysia, and the Luena Plant in Germany. Meanwhile, China’s Nantong Plant (PTM) has now achieved a rate of zero accidents for seven years running.We promote TBM/KY activities as well as near-miss accident activities further to eliminate potential risks in the operation and intend to create the workplaces without accidents.

*1 A safety index indicating the rate of occurrence of industrial accidents, based on the number of accidents resulting in worker injury with or without loss time per 200,000 man-hours of labor.

*2 TBM/KY activities [Toolbox meeting (TBM) and KY (from the Japanese term for predicting danger) activities]Prior to the start of operations, workers break into small groups and try to identify the dangers in their work operations and arrangements of the day in order to plan the procedures for safe work operations. Traditionally, workers held these meetings while sitting on their toolboxes, hence the name.

*3 A series of steps to specify risks and hazards in the workplace, estimate the level of such risks, set priorities regarding operations, and decide on measures to take to reduce risks. Based on the results of this process, appropriate countermeasures will be taken against occupational disasters.

*4 These activities aim to prevent accidents through the collection and disclosure of reports concerning incidents where disaster has been narrowly averted (near-misses) experienced by workers during work operations.

*5 Five basic practices for workers known as the “5S” system (based on five Japanese words beginning with “s” that means, respectively, namely, organization, tidiness, cleanliness, hygiene, and discipline).

10

8

6

4

2

0

0.90

0.60

0.75

0.45

0.30

0.15

201020092007 2008 2011 2012 2013 2014 2015 2016

0

■ Fuji ■ Research & Development ■ Taiwan ■ Malaysia ■ China (PTM) ■ China (PNL) ■ Germany ー● OIR

(Number of injuries)

Occupational Health and SafetyIn order to achieve our goal of zero occupational disasters, we define policies on environment, safety, and health in every plant; set Group-wide common targets; and work proactively toward raising the safety awareness of all the people who work for us.

Trends in Accidents Resulting in Injury and OIR Values

●Zero lost-time injuries and non-lost-time injuries, including in-house contractors (numerical target: OIR*1 ≤ 0.07)●Zero fire or explosion accidents

Group Target

●Establishing safety basic rules●Implementing regular G-ESH auditing of

each plant●Promoting activities to raise safety

awareness●Eradicating unsafe actions and unsafe

conditions through site patrols

●Promoting TBM&KY*2 activities●Improving risk assessment *3 skills●Promoting near-miss accident activities*4

●Thoroughly enforcing 5S practices*5

●Entrenching the pointing and calling●Reducing the risks related to the

occurrence of a state of emergency

Main Initiatives

Magnet pinch risk simulation(Japan/Fuji Plant)

Heat simulation(Taiwan/Dafa Plant) Disaster prevention drill (China/Nantong Plant [PTM/PNL] ) Disaster prevention drill (Japan/Fuji Plant)

Safety inspection after new equipment introduced (China/Nantong Plant [PNL] )

In a plant during a worksite tour (Malaysia/Kuantan Plant)

Conducting ESH AuditsWe have been conducting ESH audits for one another since fiscal 1999. Audit teams tour the worksites at each plant and check the status of management system operations and the progress of safety activities. Seeing things from the perspective of another production site helps operators discover hidden risks (unsafe conditions or behaviors) so that they can prevent accidents and disasters. The goal of these activities is to take safety practices at individual plants to the next level while working to create common awareness through the sharing of accident information and safety rules.In fiscal 2016, a regular audit was conducted at the Kuantan Plant in June and many points for improvement were found.We will continue these activities into the future so that our plants can motivate one another to improve.

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Logistics Safety ManagementThe Fuji Plant is engaged in the following initiatives focused on logistics companies in order to prevent logistics-related traffic accidents and disasters and to ensure safety inside and outside of the plant premises.

The Environmental Monitoring Meeting* for NeighboursThe Fuji Plant is engaged in activities to enhance environmental preservation activities and promote mutual understanding with local communities. We hold the Environmental Monitoring Meeting in June every year as part of our environmental awareness month. We explain our environmental initiatives to the residents of local areas, and exchange opinions with them. We also invite them to visit our on-site environmental facilities.

Green LogisticsAs one of its global warming prevention countermeasures, the Fuji Plant proactively worked together with logistics companies on activities to drive down the CO2 emitted during procurement of raw materials and shipping of products. Some concrete examples of our initiatives are improving the load factor when using trucks, encouraging driving practices that lower emissions, switching means of transport from trucks to railways and ships (modal shift), and adjusting transport routes.In fiscal 2016, as a result of such activities, we were able to reduce the basic unit of energy consumption per ton-kilo-meter*1 (which shows the energy efficiency of transport) by 23% compared to fiscal 2006, the year these activities began.Also, as a designated shipper under the Energy Saving Law, Polyplastics must strive to reduce its five-year average of unit energy consumption*2 by at least 1% per year on average. In fiscal 2016, we exceeded that target with a 3.2% reduction in our five-year average. We will continue to promote initiatives to reduce energy consumption.*1 The amount of energy required to carry a one-ton load for one kilometer*2 The amount of energy required to carry a one-ton load

*3 Figures for fiscal 2006 represent estimated results for April through December.

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1,000

2,000

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5,000

6,000

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9,000

10,000CO2 emissions (tons)

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2006*3 2007 2008 2009 2010 2011 2012 2013 2015 20162014

(Unit: %)

Five-Year Average Unit Energy Consumption

2012

96.7

2013

91.6 94.1

2014

97.7

2015

96.8

2016

Trends in Five-Year Average Unit Energy Consumption

* The yellow cards have information on appropriate responses in the event of an accident. Transport drivers carry these cards at all times.

Basic unit of energy consumption (index)

Responsible Care Award from the Japan Chemical Industry AssociationThe Fuji Plant has been regularly carrying out its Environmental Monitoring Meetings for over forty years. It has been recognized for the quality of its communication activities with local residents all this time, and this year, it was presented with the Responsible Care Award from the Japan Chemical Industry Association.

In fiscal 2016, there were 17 participating representatives from six nearby districts, including four first-time participants. We gave them an overview of our operations, and reported that the result of environmental impact were lower than the regulated or previ-ously agreed levels.Moreover, we expressed our gratitude that we were able to receive the RC Award as a result of communication activities with local community for over forty years. We will continue our efforts to foster sustained relationships with local com-munities through these activities.

* Conducted by request of the Fuji City Pollution Prevention Liaison Committee, which was founded for the purpose of preventing pollution before it can occur. Representatives from the local community visit corporations to confirm their environmental countermeasures and facilities, then report the results to Fuji City.

As a Good Corporate CitizenCommunicating with Local Communities

Receiving the RC Outstanding AwardI am so delighted to have received this award recognizing the quality of our communication activities, which include the Environ-mental Monitoring Meetings we hold every year, renting out social services facilities for local residents, hosting sporting events, our local environmental initiatives, and more. This achievement would not have been possible without the full cooperation of everyone at the Fuji Plant. We intend to continue listening carefully to the members of the community, taking swift action to resolve any problems, and working hard to maintain our positive relationships.

Kunitomo YamamotoGeneral Manager, Fuji Plant

(left)

Chikahiro KatoOrganizer for SukerokukuFuji City Pollution Prevention Liaison Committee

Presentation on the company outline Participants being given a tour of the plant

VOICE

VOICE

Safe and Healthy Workplace

TOPIC

Boosting Employee Motivation at the Quality DojoWe have newly introduced Quality Dojo at the Fuji Plant to raise quality awareness among employees, and to have employees share the importance of compliance with laws and regulations as well as ethical behaviour. They provide the training on the characteristics of resins produced at the Fuji Plant, introduce the products in which our resins are used, and provide training on past customer complaints. Numerous Fuji-area employees and in-house contracting employees have studied in the Quality Dojo in the year or so since it has been in operation. The participants gave feedback such as “I gained a better understanding of the products that we produce,” and “Learning about past complaints reminded me of the importance of process and quality management”. That helps to boost employee motivation. We also started these kinds of activities at our overseas plants as well. We will provide continuous training to keep producing good quality products toward the future.

■ CO2 emissionsー● Basic unit of energy consumption per ton-kilometer

(with fiscal 2006 as a value of 100)

CO2 Emissions and Basic Unit of Energy Consumption (Index) in Transport

Visualization of Environmental Data Builds Trust from Local CommunitiesI participated in the Environmental Monitoring Meeting for the first time, and was surprised to hear that Polyplastics conducts all its operations in-house—even generating its own electricity. The environmental data they presented and explained was clear, with numbers stretching from the past to the present. This was quite reassuring, and made it very easy to understand where they were coming from. The fact that they received the RC Award as a result of their communi-cation with the local community also made the local residents very happy, and I believe it’s an achievement to be proud of. As the years go by, people are making increasingly high demands when it comes to environ-mental protection, but we’re looking to Polyplastics to continue building trust through commu-nity interaction while using its role as a local company to drive the revitalization of Fuji City.

●We sign memoranda of understanding related to transport, storage, and loading operations, and perform regular visits to conduct checks and training about logistics quality.

●Polyplastics ensures thorough compliance with logistics-related safety regulations.

●We introduced a system of yellow cards* that drivers carry at all times.

CSR Report 2017Polyplastics Co., Ltd. 2625

Environm

ent, Safety, and H

ealth Initiatives