the Future - Toyobo · 03 TOYOBO GROUP CSR Report 2011 TOYOBO GROUP CSR Report 2011 04 Business Reforms Aimed at Overseas Expansion The Toyobo Group’s basic philosophy is expressed

2-8, Dojima Hama 2-chome,Kita-ku, Osaka 530-8230, Japan

CSR Promotion GroupTelephone: +81-6-6348-4210Facsimile: +81-6-6348-3443E-mail: [email protected]: http://www.toyobo-global.com/

ⒸYOSHIHITO TAKEUCHI

K01221

TOYOBO GROUP Corporate Social Responsibility Report 2011

the Future

Transforming MaterialsTransforming

TOYOBO CO., LTD.

ContentsBasic Information on This Report

03

05

07

09

11

13

14

Message from the President

TOYOBO SPECIAL FEATURE

15

17

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29

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38

■Scope of CoverageThe scope of coverage of this publication various by item. The member companies of the Toyobo Group are shown in the item “Companies Covered (Toyobo Group)” below.■Companies Covered (Toyobo Group)In Japan (in Japanese alphabetic order)Ashimori Kogyo Co., Ltd., Kizu Kasei Kogyo Co., Ltd., Kanae Shoji Co., Ltd., Kyushu Toyo Knit Co., Ltd., Kureha Elastomer Co., Ltd., Kureha Tech Co., Ltd., Cosmo Denshi Co., Ltd., Sandaiya Co., Ltd., Tsuruga Film Co., Ltd., Toyo Cloth Co., Ltd., Toyobo Engineering Co., Ltd., Toyobo Kankyo Techno Co., Ltd., Toyobo System Create Co., Ltd., Toyobo GFA Co., Ltd., Toyobo GMS Co., Ltd., Toyobo Specialties Trading Co., Ltd., Toyobo Techno Wool Co., Ltd., Toyobo Techno Service Co., Ltd., Toyobo Techno Uni Co., Ltd., Toyobo Biologics Co., Ltd., Toyobo Package Plan Services Co., Ltd., Toyobo Fair Tone Co., Ltd., Toyobo Real Estate Co., Ltd., Toyobo Living Service Co., Ltd., Toyobo Logistics Co., Ltd., Toyoshina Film Co., Ltd., Toyo Knit Co., Ltd., Nippon Exlan Co., Ltd., Nippon Daineem Co., Ltd., Nippon Unipet Co., Ltd., Nippon Yupika Co., Ltd., Nippon Ryutan Industrial Co., Ltd., Mizushima Aroma Co., Ltd., Miyuki Holdings Co., Ltd., Yuho Co., Ltd.Overseas Companies (by region)China: TOYOBO (SHANGHAI) BIOTECH CO., LTD., SHANGHAI KEHUA DONGLING DIAGNOSTIC PRODUCTS CO., LTD., TOYOBO STC (SHANGHAI) CO., LTD.Hong Kong: SANTOYOKO (HONG KONG) CO., LTD., TOYOBO STC (HONG KONG) LIMITEDTaiwan: TOYOBO STC (TAIWAN) CO., LTD.South Korea: TOYOBO STC (KOREA) CO., LTD.Indonesia: P.T. TOYOBO KNITTING INDONESIA, P.T. SHINKO TOYOTO GISTEX GARMENTMalaysia: PERAK TEXTILE MILLS SDN. BHD., TOYOBO TEXTILE (MALAYSIA) SDN. BHD., TOYOBO WOOL (MALAYSIA) SDN. BHD.Thailand: TOYOBO INDUSTRIAL MATERIAL (THAILAND) LTD., TOYOBO STC (THAILAND) CO., LTD.United States of America: TOYOBO SPECIALTIES (U.S.A.) INC., TOYOBO KUREHA AMERICA CO., LTD.El Salvador: INDUSTRIAS UNIDAS, S.A.Brazil: TOYOBO DO BRASIL INDUSTRIA TEXTILES LTDA.■Period CoveredApril 1, 2010 to March 31, 2011 (Some items (regarding the Great East Japan Earthquake) are as of May 31, 2011.)■Date of PublicationJune 29, 2011■Scheduled Next Publication DateJune 2012■Cautionary StatementStatements in this report of a forward-looking nature, including future plans, strategies, and forecasts, are based on judgments made using information at the time of preparation. Readers of this report should be aware that such information may change as a result of developments in the world economy and industry trends. Therefore, the Toyobo Group makes no guarantees of the certainty of these judgments.

● Date of establishment: May 3, 1882

● Date of incorporation: June 26, 1914

● Paid-in capital: ¥51,730,003,166

● Number of employees on a nonconsolidated basis: 3,238 (as of March 31, 2011)

● Number of employees on a consolidated basis: 10,178 (as of March 31, 2011)

● BusinessLocations

Trends in Toyobo Group PerformanceTOYOBO CO., LTD. in Outline

Editorial Policy: This Year’s Theme—“Transformation”This publication re�ects elements of ISO26000 and reports mainly on the Toyobo Group’s CSR activities during �scal 2011 (April 1, 2010 to March 31, 2011).

In line with this year’s theme of “transformation,” we have included a special feature section at the beginning of the report. In this section, we seek to communicate how we are helping to give people new aspirations and hopes as well as a brighter future through our activities as we transform points of view, materials, and methods. Also, by using our website in tandem with this report, we have sought to provide more-detailed information.

This year’s cover is the work of mural artist and illustrator Yoshihito Takeuchi. Through his depiction of children and animals, Takeuchi communicates a joyous feeling of familiarity and buoyant energy, and we hope the readers will have a sense of a powerful transforming energy.

02006

100

200

300

400

500

2007 2008 2009

30.4

2010 (Fiscal years)

(¥ billion) (¥ billion)

0

10

20

30

40

50

27.1

11.2 11.5

426.7 431.4

367.3

318.8340.6

Toyobo Group Operating Income by Business Segment

02007

10

20

30

40

50

2008 2009 2010 (Fiscal years)

(¥ billion)

27.1

11.2 11.5

20.9

2.6 1.9

3.04.1

4.3

1.41.8

4.0

6.1

2.3

0.43.8

5.1

5.5

13.7

Net sales Operatingincome

Films and Functional Polymers

Industrial Materials

Life Science

Textiles

Other

2.3

3.7

12.5

4.9

0.6

“Transforming” Materials～Toyobo’s Green Technology～

20.9

01 TOYOBO GROUP CSR Report 2011 02TOYOBO GROUP CSR Report 2011

The category leader for providing new value in the areas of the natural environment, the life sciences, and functional productsSince its establishment in 1882, Toyobo has worked to accumulate and re�ne its core technologies as it has also broadened its business domains from textiles to �lms and functional polymers, industrial materials, and life science.

Being a category leader means holding the undisputed top position in specialized markets and �elds based on Toyobo’s technological strengths and know-how.

Toyobo is an enterprise that seeks to contribute broadly to its customers and society by offering new value as it draws on the strengths of each of its businesses to maintain a sustainable superior position.

Head Of�ce/Branches/Sales Of�ces: Head Of�ce (Osaka), Tokyo Branch, Nagoya Branch, Kyushu Of�ce

Business Locations/R&D Centers/Plants: Tsuruga Research and Production Center (Tsuruga Institute of Biotechnology, Tsuruga Polymers Plant, Tsuruga Films Plant, Tsuruga Functional Materials Plant, Tsuruga Biochemicals Plant, and Tsuruga Fine Chemicals Plant); Iwakuni Production Center (Iwakuni Polymers Plant, Iwakuni Functional Materials Plant, and Iwakuni Membrane Plant); Toyama Center (Nyuzen Mill, Inami Mill, and Shogawa Mill); Research center (Corporate Research Center, Plastics R&D Center, Functional Materials Research Center, Membrane R&D Center, and Fine Chemicals Research Center); Inuyama Plant; Ohtsu Pharmaceutical Plant; Mie Mill; Takasago Plant; Takefu Plant

Overseas Business Locations/Of�ces: Toyobo America, Inc.; Toyobo Co., Ltd., China Of�ce; Toyobo Co., Ltd., Europe Of�ce

Outline of the Business Domains of the Toyobo Group

What Toyobo Is Doing to Make It Possible for the Peoples of the World to Feel Secure in Using Water Resources, Which Are the Source of Life

“Transforming Plastic Raw Materials” Practical Applications for a Wide Range of Plant-Derived Materials

Producing Polyester with Eco-Friendly Catalysts Rather than Higher-Cost Rare Metal Materials

Cosmetics Derived from Natural Materials Are Gentler to the Skin and the Eco-System.

The Toyobo Group’s CSR Activities

CSR Activities of the Toyobo Group

Corporate Governance

Compliance

“Transforming” Relationships

Customers

Suppliers and Business Partners

Shareholders and Investors

Employees

Communities

“Transforming” for a Better Natural Environment

Environmental Management

TOYOBO—Global Green Action Plan(Medium-Term Plan for Environmental Activities)

Initiatives to Reduce the Burden on the Environment

Management of Chemical Substances

Environmental Impact of Business Activities


Business Reforms Aimed at Overseas ExpansionThe Toyobo Group’s basic philosophy is expressed in Japanese as Junri-Sokuyu. This motto means “Adhering

to reason leads to prosperity” and was a personal maxim of our founder, the Meiji Era industrialist Eiichi

Shibusawa. It has been handed down as Toyobo’s management philosophy and has remained unchanged and

practiced to the present day. These words were spoken by Cheng Yi, a Chinese philosopher of the Song Dynasty.

The word junri means not only “thinking and acting rationally and logically” but also expresses the idea that

“reason and ethics form one’s basic attitude as a human being, and ethics form one’s basic attitude as a human

being, and ethical values must be respected.” Junri-Sokuyu is the starting point of our corporate social

responsibility (CSR), and the basis for developing our management vision and business policy.

We have positioned this fiscal year as a stage for reforms aimed at growth and expansion, particularly for further

expanding our overseas activities. We have, therefore, chosen “Innovate and Build a Strong Toyobo” as our

management policy. To this end, the management and staff of the Toyobo Group are working as one, sharing a

common understanding of current conditions and the nature of the times, and exerting our maximum efforts to

build a strong corporate group.

Revising Our CSR Charter in Keeping with ISO26000Toyobo has established a CSR Committee, which I chair as president, as the core of its CSR structure. This

committee provides a framework for the unified management and oversight of Toyobo’s relationships with all its

stakeholders, including customers, shareholders and other investors, suppliers and other business partners, local

communities, and employees as well as Toyobo’s interaction with the global environment.

Message from the President

Realizing Our Dreams and 　　 Building a Strong Toyobo

The cornerstone supporting and guiding the Toyobo Group’s CSR activities is the CSR Charter. We have revised

this charter in accord with ISO26000, which was launched last year as our set of guidelines for CSR. The basic

tenet of this charter is that “a company is a member of society,” and it commits the Toyobo Group to actively

fulfilling its social responsibilities and contributing to the development of a sound and sustainable society.

Under its CSR Charter, Toyobo is presently implementing the following CSR initiatives. First, we are developing

a governance system that will enhance the management surveillance and checking function to secure

transparency and fairness in decision making and the conduct of work. In addition, to provide a framework for

ensuring high standards of compliance as well as raise the awareness among employees of the necessity for

compliance with laws and regulations, we have formulated the Toyobo Corporate Code of Conduct and the

Compliance Manual, and are implementing training programs and providing one-on-one guidance throughout the

Toyobo Group.

To provide for the management of various types of risks, we have formed several committees to deal with

specific risks. For example, to address environmental issues, the relevant committee has prepared the Toyobo

Group’s Fundamental Policy on the Global Environment. Initiatives under this policy include reducing the

environmental burden, developing products that contribute to environment preservation, supporting

conservation activities in local communities, and responding appropriately to biodiversity.

Contributing to Society through CSR Activities Integrated with Business ActivitiesThe Toyobo Group believes that corporate, business, and CSR activities should be integrated. Proactively

integrating CSR measures into management strategies is important for attaining sustainable development.

The Toyobo Group’s vision is to be the category leader for providing new value in the areas of the natural

environment, the life sciences, and high-functional products. Being a category leader means holding the

undisputed top position in specialized markets and fields based on Toyobo’s technological strengths and

know-how. We believe that providing new value to customers and markets in the global fields of the

environment, the life sciences, and high-functional products is the essence of the Toyobo Group’s CSR activities.

This year, the Toyobo Group has already prepared its Medium-Term CSR Plan that outlines the areas of

responsibility for each committee and specific issues to be addressed and will remain committed to continuing

its activities toward reform and establishing an even stronger corporate position, while continuing to follow the

principles of CSR. We will continue to act responsibly toward society, while adapting to the changing times.

Ryuzo SakamotoRepresentative Director and President

To begin,

●

we would like to express our deepest sympathies to all those who suffered from

the effects of the Great East Japan Earthquake.

Japan has experienced unprecedented damage as a result of this natural catastrophe.

The earthquake has had an impact not only on the Tohoku and Kanto regions of Japan,

but also on the nation as a whole, and the effects of the disaster have been felt throughout the world.

This is a time for everyone to draw on their knowledge and their strengths to contribute to recovery.

The Toyobo Group will devote its maximum efforts to this task.

●


Outline of the Business Domains of the Toyobo Group

How the Development of the Toyobo Group Is Contributing to Making the “Lifestyles of the Future” Possible

■Cosmetics

Cosmetic raw materials made from natural materials, gentle on the environment and on human skin

■Automobiles

“VYLOSHOT®” epoxy-free heat malleable plastic

Option mats made using “Bio-Volans®” bio-PET Spunbond

“ECO-VYLOPET®” recycled PET-based extrudable plastic materials and “ECO-ECULE®” made from reused airbag fabric material

“SurfMellow™” natural moisturizer derived from vegetable yeast

“PHYTOPOLYAMINE™” antiaging material derived from wheat germ

“AminoPGALE™” natural moisturizer derived from Natrialba aegyptiaca bacteria

■Convenience stores

“Bio-PET wrapping film” “ECOSYAR®” (for food product packaging)

■Seawater desalination or puri�cation plants

Producing valuable water resources

Toyobo’s “HOLLOSEP®” reverse osmosis membrane modules

“DURASEP®” hollow fiber type UF modules

■Plants

“Honey-Rotor®” Adsorption and concentration apparatus

“PROCON®” “ToyoboP84”

“VYLOAMIDE®” plant-derived polyamide resin, featuring a high degree of stability and a high melting point

“SOFTSHINE®” polyester film that contributes to thinness and lightness

“ECHORCLUB®” and other textile products made from recycled PET bottles

High-function materials that aim for harmony among people, automobiles, and the environment

■Hospitals

“POCube®” compact fully automated chemiluminescentimmunoassay system

“U-SCANNER®” system for urinary sediment analysis

“GENECUBE®” fully automated gene analysis system

Compact and capable of measuring many clinical trial items in a short period of time

Effective absorption and elimination of volatile organic compounds from emission gases

Bagfilter with strong resistance to heat and chemicals

Partially plant-derived PET plastics

Barrier materials that can substitute for aluminum foil and other materials

■Mobile phones, smartphones, PCs, etc.

■Of�ces (uniforms)

■Shinkansen seats

“BREATHAIR®” cushion materials that can be recycled, are porous, and durable

“SHINEBEAM®” films for solar battery systems

Free of heavy metals, low environmental impact,

expected to be highly durable

■Homes/Solar battery systems

“Being the category leader for providing new value in the areas of the environment, the life sciences, and high-functional

products”—That is the vision of the Toyobo Group. Since its founding in 1882 as a leading company in Japan’s textile industry, as

it has responded to the needs of the times, Toyobo has developed and applied its accumulation of original technologies in many

�elds. We believe that the foundation for our CSR activities is being useful to people in a wide range of life situations.

Developing own unified brand of eco-friendly products based on Toyobo’s original technology

Toyobo’s families of high-function materials draw on Toyobo’s technological capabilities and are indispensable for today’s af�uent lifestyles.

But, at the same time, to continue to produce and use these materials, we must reduce their impact on the natural environment, including reduction in emissions that may cause global warming.

By “transforming” these materials, we help to change society for the better.

The Toyobo Group aims to contribute to the creation of a sustainable society through its products.

“Transforming” Materials～Toyobo’s Green Technology～Transforming Green Sustainable Materials into Global Standard Materials

■T OYO B O S P E C I A L F E AT U R E


ArabianSea

The Gulf

Gulf of Aden

Red Sea

ETHIOPIA

United ArabEmirates

QATARBAHRAIN

ERITREA

DJIBOUTI

Aqabah

Sana

Djibouti

Asmara

Addis Ababa

Abu Zaby

Muscat

Dawhah

Manamah

KUWAIT

OMAN

YEMEN

SAUDIARABIA

Dubbay

Jiddah

Medina

Buraydah

Mecca

Abha

Jizan

Hudayda

Port Sudan

Aden

Salalah

Jawara

Dammam

Berbera

Alula

Mukha

Riyadh

Toyobo’s “HOLLOSEP®” RO membrane modules were

chosen for use in the Jeddah RO No. 3 Plant, which was

completed in November 2010 on the Red Sea coast of

Saudi Arabia and is the largest seawater desalination

plants in the Middle East Gulf states with a daily

production capacity of 260,000m3. “HOLLOSEP®”

SPECIAL FEATURE

0 1

Our Earth, which is called the “water planet,” has about 1.4 billion cubic kilometers of water, but freshwater accounts for only 2.5% of the total. Today, with growth in populations and social development, many countries around the world suffer from serious shortages of water. Toyobo is putting its technology to work in helping the peoples of the world to secure safe supplies of water for drinking and for industrial use.

What Toyobo Is Doing to Make It Possible for the People of the World to Feel Secure in Using Water Resources, Which Are the Source of Life

Toyobo has used the technology developed in creating

the “HOLLOSEP®” element and other membrane

technologies and the analytic membrane technologies

developed in the medical �eld to develop the polyeter

sulfone “DURASEP®” modules that are used in

�ltration membranes. “DURASEP®” has been adopted

in the largest domestic water puri�cation plant using

membrane �ltration in Japan, which is located in Kozan

in Tottori Prefecture and has a daily processing

maximum processing capacity of 80,000m3. The Kozan

water puri�cation plant began to be used jointly by

several water supply areas in April 2009, and it began

to serve the entire areas jointly during �scal 2011.

Water puri�cation using osmosis membranes is effective in

eliminating Cryptosporidium and other disease-causing

microorganisms that have a strong resistance to chlorine

disinfection, and, therefore, these membranes can produce

safer and better tasting drinking water. However, there

have been complaints about previous membrane �ltration

systems, such as “they have a high capacity for eliminating

microorganisms but tend to clog up” and “they are not

durable.” However, clogging does not normally occur in

“DURASEP®” elements and they excel in durability. At

present, based on its track record in Japan, Toyobo is

working to expand sales of “DURASEP®” overseas.

Toyobo is also striving to contribute to the provision of

stable and safe water supplies through its

“HOLLOSEP®” and “DURASEP®” water related business

activities.

Biomass MarkThis mark signifies that Toyobo products make use of resources derived from vegetable matter and clear specified quality standards. Evaluation and certification are performed by the Japan Organics Recycling Association (JORA), and, as of April 2011, a total of 255 products have received this certification.

If a vessel containing freshwater and salt water is divided by a membrane (semipermeable membrane) that allows only freshwater to pass but not salt water, freshwater will pass into the salt water to dilute the salt concentration in the salt water. This phenomenon is called “osmosis.”

After a certain period, the level on the saltwater side will rise and the flow from the freshwater side will stop. This flow is called the “osmosis equilibrium,” and, at that time, the difference between the level of freshwater and salt water is called the osmosis pressure. (Note that the osmosis pressure will depend on the temperature and level of salt concentration.)

If the reverse osmosis phenomenon is used and pressure equal to or more than the osmosis pressure is applied on the saltwater side, only the water content on the saltwater side will be pushed over the osmosis membrane (a half transparent membrane) into the freshwater side. This is known as the “reverse osmosis phenomenon” and, if this phenomenon is used, this will result in the extraction of the freshwater from the salt water.

■The Reverse Osmosis Principle

■Location of Principal Desalination Plants Making Use of Toyobo RO Membranes (Middle East)

Osmosis pressure

Freshwater

Saltwater

Osmosis membrane(semipermeable

membrane)

Water �ow

Fresh-water

Saltwater

Water �ow

Fresh-water

Saltwater

Water passes through, salt stays behind

❶ Osmosis phenomenon ❷Osmosis equilibrium ❸Reverse osmosis

Haql

Duba

Yanbu

Rabigh

Jeddah RO-3Jeddah RO-1,2

Bahrain

Al Jabayl

Tanajib

ShuqaiqAl Birk

TOPICS ❶Toyobo Begins Local Production of RO Membrane Elements Overseas.In March 2010, Toyobo established a joint venture, Arabian Japanese Membrane Company, LLC, together with ACWA Holding of Saudi Arabia and ITOCHU Corporation. Beginning in 2011, this company is scheduled to begin to implement step-by-step measures to manufacture and market RO membrane elements for use in desalination plants.

TOPICS ❷

The raw material for Toyobo’s reverse osmosis membranes is cellulose triacetate made from cellulose derived from plant matter cells. Since these materials are made from natural plant matter, in June 2010, Toyobo received permission to use the Biomass Mark, which signi�es products that use biomass (vegetable matter) and meet speci�ed quality standards. This is the �rst time for a company in Japan to receive permission to use this mark for membranes used for the seawater desalination for freshwater.

Certi�cate of quali�cation for use of the biomass mark

The “DURASEP®” waste purification membrane module (shown on the right) has been adopted at the Kozan water purification plant. This module uses technology that was developed in connection with membrane analysis and other applications in the medical field, and it makes use of straw-like fibers with an open center.

Three-dimensional cross section of an RO membraneToyobo’s cellulose triacetate material, which is used in its reverse osmosis membranes, has a high chlorine tolerance. For this reason, because of the disinfecting action of chlorine, desalination equipment that uses Toyobo’s reverse osmosis membranes prevents the growth of microorganisms that are the cause of clogging of the membrane filters.

“Transforming” Materials


Toyobo’s “HOLLOSEP®” reverse osmosis membrane elements for use in desalination facilities are drawing attention for their contributions to securing water resources in the Middle East Gulf states.

modules have already been selected for many desalination

plants in the Middle East Gulf states, and they account for

more than 50% of such modules used in the region. The

total output of these modules is more than one million

tons per day, and the reason they were chosen for use in

the Jeddah RO No. 3 Plant was that their record of

performance has been highly evaluated.

The Middle East Gulf states have a shortage of water

resources and are one of the areas with the highest

demand for seawater desalination. However, because the

water in the Red Sea and the Gulf of Arabia has a high

microorganism growth potential, it is necessary to employ

chlorine disinfection to prevent microorganism pollution.

“HOLLOSEP®,” which uses cellulose triacetate (CTA)

material, is highly resistant to the effects of chlorine, making

it possible to disinfect the seawater inside the module. In

addition, since these modules are easy to maintain,

desalination plants employing them are able to sustain

stable operations. The strong points of “HOLLOSEP®”

modules have been highly evaluated, and these modules

have come to account for the leading market share in the

desalination plants in the Middle East Gulf states.

“DURASEP®”Contributes to Even Safer Water Supplies

“HOLLOSEP®” Has the No. 1 Record in the Middle East Gulf States

Toyobo Receives the First Biomass Mark in the Field of Reverse Osmosis seawater desalination for Drinking Water

BiomassRegistration Number

100002

PET bottles and certain other everyday items are made

from polyethylene terephthalate (PET) resin. Toyobo

began the marketing of products made from PET, which,

in turn, is made from terephthalate acid and ethylene

glycol (EG), after transforming EG from a

petroleum-based to a sugar cane based chemical.

By transforming a portion of the raw materials needed

for this plastic to a plant-based substance, Toyobo

succeeded in reducing the consumption of petroleum

resources and thereby contributed to restraining global

warming. These plant-derived PET products have the

same strengths as petroleum-derived PET, including

dimensional stability, uniformity of thickness, and

superior transparency. For this reason, plant-derived PET

can be processed into various products under the same

conditions as petroleum-derived PET.

In 2010, Toyobo made it possible to produce a

plant-derived PET �lm that shrinks when heat is applied and

can be used as a labeling material for PET bottles, canned

drinks, glass bottles and other types of containers as well as

in food product packaging. In 2011, Toyobo began the

development “Spunbond,” and it is expected to come into

wide use for wrapping and packaging of everyday items,

automotive materials, and construction materials. Toyobo

plans to move forward with the development of apparel

uses of this material also in the years ahead.

Polyamide resins that �nd application in a wide range of

products excel in resistance to heat, resistance to oil, and

mechanical strength.

Toyobo began the full-scale production of “VYLOAMIDE®” in

April 2011. It is a polyamide resin made from biomass.

One of the major differences from previous polyamide resins

is that it is made from castor oil beans, which are an inedible

plant material. As a result of the usage of this plant-derived

material, products made from this plastic can be recycled in a

short period of time, in comparison with similar

petroleum-based plastics. In addition, “VYLOAMIDE®” resin

has a melting point of 315, which is the highest among

previously-existing polyamide resins. Also, since the

water-absorption ratio of “VYLOAMIDE®” is only one-third

that of previous polyamide resins, it can be used in

applications where other polyamides cannot be used

because they tend to lose dimensional stability when

dampened.

As a result of these various features, this resin is expected to

come into use in a wide range of applications, including in

electric and electronic parts as well as automotive materials

where heat resistance and dimensional stability are required.

“VYLOAMIDE®” resin has already been adopted for use in

certain mobile phone parts. Going forward, Toyobo plans to

work to aggressively expand its use globally.

Castor oil plant beansPlants in the castor oil plant family of the wartgrass genus are not edible.

GreenPla MarkUse of this mark is certified by the Japan Bio-Plastics Association, and it enables users to see at a glance that the products labeled with this mark are made with biodegradable plastics. Products certified to bear this mark must satisfy other conditions as well, including not having any detrimental impact on the soil after biodegrading and satisfying other environmental compatibility criteria. To receive the GreenPla Mark, inks, adhesives, pastes, and other coatings must also be biodegradable.

Polylactic acid resins are one of the most widely used

types of plant-derived plastics, and one of their features

is biodegradability by microorganisms in the soil and

elsewhere. These plastics are used in a wide range of

products, but because most polylactic acid resins tend to

crystallize, they do not generally dissolve in solvents and,

therefore, have not been used in inks, adhesives, or

paints.

Using the compounding technology it has developed over

many years, Toyobo has developed “Vyloecol®” which is

the �rst polylactic acid resin in the world that does not

crystallize. It can, therefore, generally be dissolved in a

solvent, and then used as a resin mixed with inks,

adhesives, and paints. In addition, the adhesiveness of

“Vyloecol®” to polylactic acid �lms is high, and by

combining these with polylactic acid �lms, it is possible to

make products that feature overall “biodegradability” and

are “plant-derived.” Toyobo is actively marketing

“Vyloecol®,” which has been certi�ed for the “GreenPla”

mark, and it is contributing to expanding the use of

biodegradable products that have superior eco-friendly

features.

The burden on the natural environment can be reduced by making use of plant-derived materials and lowering the usage of petroleum-derived materials. As interest in environmental preservation rises, the need for many types of products is rising.

At Toyobo, by making use of our diversity of technologies in the high-polymer �eld that we have developed over many years, we are engaging R&D in plant-derived materials. We have made it possible to use plant-derived plastic resins in making practical, everyday products, including containers made from polyethylene terephthalate (PET) and high-performance polyamide resins that are used in the electric and electronic �elds as well as in automobiles. In the coming years, Toyobo is committed to developing plant-derived materials that will have a high degree of applicability in our daily lives and proactively introducing these to the market.

Materials

Corn husksSugarcane husksCastor oil plant beans

CornSugarcaneCassavasSugar beets

Petroleum

Plant-derived

Petroleum-derived

Characteristics

Inedible plant matter

(Cannot be used for food)

Edible plant matter

(Can be converted to food)

Limitedresources

Recyclable

Recyclable

These parts for the camera portion of mobile phones are made from “Biroamide” resin.

Sugarcane is the raw material for the production of “PET Film” and “PET Spunbond.”

“PET Spunbond” is also used for wrapping flowers.

SPECIAL FEATURE

0 2

It has been pointed out that there are limitations on the resources for making petroleum-derived materials. These materials also give rise to large volumes of CO2 when they are incinerated and cause other environmental problems. By using materials derived from plants, these risks of petroleum-based materials can be reduced, and this will contribute to the realization of a sustainable society.

“Transforming Plastic Raw Materials”Practical Applications for a Wide Range of Plant-Derived Materials


Transforming to a Sugar Cane Based Chemical

“PET Film” and “PET Spunbond”“Vyloecol®”Biodegradable Resin for Use in Inks, Adhesives, and Paints

“VYLOAMIDE®” Resin Is Made from Castor Oil Plant Beans,


Production of polyester resin, which is used in the

manufacturing of PET bottles and many other products,

requires the use not only of raw materials but also catalysts

that cause chemical reactions. Previously, antimony,

germanium, titanium, and other rare metals were used as

catalysts. To replace the use of these rare metals as catalysts,

Toyobo developed the world’s �rst aluminum-based catalysts.

Aluminum is a base metal that is found in deposits around

the world, and its supply is expected to be stable.

Previously, aluminum was believed to have low

effectiveness as a catalyst for polyester compounding.

Toyobo, however, has been successful in combining

aluminum with a catalytic promoter metal and developing

a strong catalyst based on aluminum.

This “Toyobo GS Catalyst®” does not make use of rare

metals, which are some of the world’s most valuable

resources, and, thereby, reduces the burden on the

environment. Moreover, polyester made with the “Toyobo

GS Catalyst®” has the following characteristics. It is

(1) free of heavy metals,

(2) has a high level of transparency, thus making

color-adjusting additives unnecessary,

(3) can be formed into the desired shapes, just as can

polyester made with the previous catalysts, and

(4) has a good balance of properties (water and heat

resistance).

Polyester is recyclable, and, for example, used PET bottles

can be recycled into textile products, but polyester made

with previous catalysts has low heat stability and various

problems arise, such as a yellow discoloration of the

recycled material. Polyester made with “Toyobo GS

Catalyst®” however, is highly heat resistant and is superior

as a recyclable material.

“Toyobo GS Catalyst®” can be used in the production of

polyester for use in many products, including �lms, textiles,

and various molded products. At present, it is being used in

“SHINEBEAM®” �lm for solar-power systems and in the

manufacturing of PET bottles for beverages.

“SurfMellow™” is a lipophilic moisturizer made from

olive oil that has been fermented with a strain of plant

yeast that was discovered in a �ower in the Mt. Tsukuba

region of Japan. While it has moisturizing characteristics

similar to natural ceramid, it has better interface

properties than natural ceramid, thus making it easier to

blend into cosmetic preparations.

In August 2010, Toyobo, together with Daido Kasei

Kogyou Co., Ltd., developed a foundation powder using

SurfMellow™” and will now work to expand its use in

skincare, makeup, and other products.

A solar power system module incorporating “SHINEBEAM®” backsheets and parts supplied by Japan’s National Institute of Advanced Industrial Science and Technology (including glass, solar cells, EVA, etc.). “SHINEBEAM®” draws on the special features of “Toyobo GS Catalyst®” which include eco-friendliness because of the absence of heavy metal usage and a long useful life of the solar battery system itself because of the use of “SHINEBEAM® as a backsheet that is resistant to water and heat.

“Toyobo GS Catalyst®” which is in the foreground in this photograph, is clearly distinguished by its higher degree of transparency and clarity in comparison with the two other types of catalysts shown in the background.

Polyamines are found in animals, plants,

microorganisms, and in all other living things that

engage in cell division, protein synthesis, and other life

processes. For example, it has been con�rmed that in

plants they restrain the stress coming from low

temperatures, dryness, high saline content, active

oxygen, and other phenomena as well as prolong the

life of �owers. Within the human body, the amount of

polyamines decrease with age and have, therefore,

attracted attention as anti-aging substances.

“PHYTOPOLYAMINE™” is made from wheat germ as the

raw material, and it is extracted using a special process

that yields an essence with a higher level of polyamines.

Model experiments have con�rmed that it enhances the

vitality of cells as well as increases collagen, and it is

being selected for use in skincare and other products.

TOPICS


SPECIAL FEATURE

0 3

In the production of chemicals, in addition to raw materials, substances called “catalysts” must also be used to bring about chemical reactions. Previously, catalysts made from heavy metals were used in the production of polyester resins, but Toyobo has developed catalysts derived from aluminum in place of rare metals, which are one of the Earth’s precious resources.

Producing Polyester with Eco-Friendly Catalysts Rather than Precious Rare Metal Materials

“Transforming” Materials SPECIAL FEATURE

0 4

We use cosmetics everyday perhaps without thinking about it. But, attention is being directed to natural materials as cosmetic ingredients. Toyobo has drawn on its technology for nurturing cultures of microorganisms and its re�ning technology to develop plant-derived moisturizing ingredients. Toyobo is continuing its development in this area with the goal of realizing “ingredients that are not only gentle to the skin but also to the eco-system.”

Cosmetics Raw Materials Derived from Natural Materials Are Gentler to the Skin and the Eco-System.


“Toyobo GS Catalyst®” Receives “Best Practices Award”In December 2010, the “Toyobo GS Catalys®t” received the “Best Practices Award” from Frost & Sullivan of the United States. This award is presented by Frost & Sullivan, which is a company known throughout the world for its work in international marketing, market research, and consulting; the award is presented in recognition of “innovative products of companies that excel in their respective industries.”

“Toyobo GS Catalyst®” the World’s First Aluminum-Based Catalyst, Is Not Reliant on Heavy Metals.

“PHYTOPOLYAMINE™” Is Expected to Revitalize Skin Cells and Increase Collagen.

“SurfMellow™” Moisturizer Made from Olive Oil

A microorganism living in the soil in the heights above

the saltwater coastal regions of Egypt produces a natural

polyglutamine acid polymer comprised entirely of

L-bodies that protects it from dryness and salt. This

natural polymer differs from conventional polyglutamine

acid, and one of its properties is resistance to the effects

of salt.

“AminoPGALE™” is a hydrophilic moisturizer produced

through the fermenting action of this microorganism. It

is resistant to the effects of salt on the skin from

perspiration and other sources and has superior

moisturizing properties. It has already been adopted for

use in skincare products that are already on the market.

“AminoPGALE™” Moisturizer with Resistance to Salt

The Toyobo Group’s CSR Activities

The Toyobo Group’s Basic Philosophy is

Junri-Sokuyu, which means Toyobo CorporateCode of Conduct

(Toyobo Group CSR Charter)

The Toyobo Group’sImage of an Ideal

Employee

Customers

Suppliersand otherbusinesspartners

Shareholdersand otherinvestors

Employees

Communities

Earth’senvironment

The Toyobo Group CSR CharterBased on the basic recognition that “a company is a member of society,” the Toyobo Group will continue to aggressively ful�ll its social responsibilities so that it may continue to be a company that is trusted by society. Moreover, the Toyobo Group is committed to contributing to the creation of a sound and sustainable society by providing socially bene�cial products and services.

To meet these objectives, in Japan and the rest of the world, the Toyobo Group conducts is activities based on the following 10 principles, as it respects human rights and follows the prescribed laws and international rules as well as the spirit on which these laws and rules are founded.

1. Toyobo works to earn the con�dence and maintain the satisfaction of its customers and clients through the development and provision of socially bene�cial and safe goods and services.

2. Toyobo engages in fair, transparent, and free competition and conducts transactions appropriately, while maintaining sound and proper relationships with political and government administrative authorities.

3. Toyobo communicates widely with its shareholders and the rest of society and discloses Company information proactively and fairly. In addition, Toyobo takes necessary measures to protect and manage personal data and customer-related information.

4. Toyobo respects the diversity, personality, and individuality of its employees, works to provide a safe and easy-to-work job-site environment, and helps them to realize a comfortable and af�uent lifestyle.

5. Toyobo regards addressing environmental issues as one of mankind’s common concerns, and takes responsible action since dealing with such issues is a condition for Toyobo’s survival and the continuation of its activities.

6. As a “good corporate citizen,” Toyobo engages in activities that contribute to the community and society.

7. Toyobo takes resolute countermeasures against, and cuts any ties with, all antisocial groups that may constitute a menace to social order and safety.

8. In developing its business activities globally, Toyobo works to promote and contribute to the development of local communities as it observes all laws and regulations applying to its overseas activities; respects international best practices, including having respect for human rights; and manages its activities with due regard for culture, customs, and the interest of stakeholders.

9. Toyobo’s top management recognizes that realizing the spirit embodied in this Charter is their role, and that, by demonstrating leadership by example, they will ensure that these principles are followed in Toyobo and the rest of the Toyobo Group, as well as encourage business partners to follow Toyobo’s example. Management will also constantly monitor commentary and views of its activities within and outside the organization as well as establish an effective internal organization to take appropriate action when necessary.

10. In the event of a violation of these principles, top management will take the initiative themselves to make it clear internally and externally their intention to address the issues involved, investigate the cause of the violation, and take action to prevent a recurrence of such a violation. In addition, top management will make information publicly available promptly and appropriately, ful�ll their duty to give explanations, and, after clarifying issues of authority and responsibility, take initiatives themselves, as necessary, to take severe disciplinary action.

The ManagementVision of the

Toyobo Group


“Adhering toReason Leads to

Prosperity.”

(1) People who can think from the customers’ perspective and create new value

(2) People who can conceptualize what they want to be and can reform themselves

(3) People who have a strong self-awareness and a sense of responsibility and take thoroughgoing initiatives in all they undertake

(4) People who actively work to create networks inside and outside the Company

(5) People who participate in teamwork and share a sense that work is worthwhile

“To be the category leader for providing new value in the areas of the environment, the life sciences, and functional products.”

■ CSR Activities of the Toyobo GroupThe Toyobo Group implements diverse social and environmental initiatives based on the fundamental understanding that our Company is a member of society and

will continue to contribute to society to remain a company that is trusted by people. In addition, the Toyobo Group contributes to the creation of a sound and

sustainable society by providing useful products and services.


Related Items Basic Principles Related Page(s)

Activities in Fiscal 2011* (Including items carried over into fiscal 2012*)

Initiative Theme Main Implementation (Plan) Items Specific Implementation (Plan) Items, Periods, Progress Made, Etc.

Corporate Governance

Strive to achieve sustained increases in corporate value

19

Fostering an organizational culture that emphasizes internal controls Implement activities to improve understanding of internal controlsIn addition to incorporating internal control education into sales training in 2009, prepare and distribute the Internal Controls Deficiencies Improvement Manual. Continuing activities to improve understanding of internal controls

Communication for dealing with crises Held training for dealing with crises Held training sessions on three occasions in fiscal 2011 and three more are scheduled in fiscal 2012

Proper brand management Reviewed the corporate identity (CI) operations manual and disseminated it throughout Toyobo and the rest of the Toyobo Group Currently reviewing the operations manual to prevent damage to the brand

Sharing and accumulation of management policies and other informationImproved teamwork between corporate communications and investor relations (IR) departments Working to promote the interdepartmental exchange of personnel and share information

Held meetings of cross-organizational committees Will hold periodic meetings of the IR Liaison Committee and the Web Management Committee, etc.

ComplianceFollow rules in accordance with our corporate philosophy Junri-Sokuyu

(“Adhering to Reason Leads to Prosperity”)20

Increase awareness of the corporate philosophy and make it understood by all employees. Prepare action guidelines and thoroughly inform all personnel Prepared and distributed Toyobo Group Compliance Manual Distributed to all employees

Teach compliance awareness Read through Toyobo Group Compliance Manual and conduct a compliance survey (covering all employees)

Read through manual at the workplace level, conduct surveys, compile results and provide feedback on the surveys

Improve the compliance structureOperated compliance consultation line There were 11 cases of consultation in fiscal 2011, and all were responded to quickly.

Upgraded the management of Group management information and responded to the International Financial Reporting Standards (IFRS) Structuring of systems is scheduled for fiscal 2013

Compliance in the operation of information systems Created a new server environment for the Toyobo Group Integrated server with virtual technology in November 2010, and completed the portion planned for the first year

Compliance in procurement activities CSR procurement activities (green procurement) and green purchasing activities Implemented monitoring of business partners in September 2010 and striving for continuing improvement

Compliance in distribution activities Implemented education inside and outside the Company and expanded individual guidance (checking) Implemented three times in 2011 and will continue in 2012

Compliance in environmental preservation activities Survey trends in Japan and overseas and then respond appropriately Continuing also in fiscal 2012

Customers Offer high-quality products and services 21 and 22

Develop tactics for product safety activities Activities of the product liability and quality assurance committees, operation of the promotion committee, implementation of product safety activities Continuing in fiscal 2011 and in fiscal 2012

Upgrade quality assurance promotion system Upgrade quality assurance systems of Toyobo Group companies in Japan and overseasObtain understanding of the status of quality assurance overseas during fiscal 2011

Find solutions to issues in fiscal 2012 and aim for standardization

Develop tactics for quality management activities Conduct quality assurance assessments in Toyobo Group companies Continuing in fiscal 2011 and in fiscal 2012

Respond to changes in the external environment for quality assurance systems Develop tactics for monitoring overseas information Make further improvements

Establish quality assurance systems Quality assurance of suppliers, conduct questionnaire survey Continuing in fiscal 2011 and in fiscal 2012

Improve consultation for customers Promote sharing of information with related departments Continuing in fiscal 2011 and fiscal 2012

Suppliers Comply with laws and regulations and conduct proper transactions while giving due attention to equality of opportunity

23 Aim for full knowledge of and compliance with CSR procurement guidelines Conduct quality audits of suppliers and questionnaire surveys Continue and expand scope of surveys

Shareholders and Other Investors

Implement timely and appropriate disclosure of information while considering fairness and equity, and aiming for robust communications

24 Corporate communications

Hold meetings explaining performance to institutional investors and the mass media, and arrange individual media coverage Continuing in fiscal 2011 and in fiscal 2012

Publish quarterly financial reports and explanatory materials, Annual Securities Reports, Flash Reports (quarterly Preliminary Financial Results), Business Reports, Annual Reports, and other publications

Are now preparing the fourth Securities Report and Flash Report, the second Business Report, and the first Annual Report

Responding to socially responsible investors and research organizations Replying to questionnaires and other inquiries

EmployeesCreate easy-to-work office environments

and pursue safety in all aspects of corporate operations

25 and 26

Secure strict compliance with personnel systems Respond appropriately to revisions in the Labor Standards Act and the Child Care and Family Care Leave Act Company employment regulations were revised at the end of June 2010.

Promotion of proper time management Introduced and secured compliance with labor time management systems Extended systems in operation in the Head Office to Company branches

Raise awareness of proper consideration for human rights Heighten awareness through training in branches and training for various employee levelsContinuing in fiscal 2011 and in fiscal 2012

Maintain good management and labor relationships Sound operation of the management/labor consultation system

Take initiatives to achieve an overall optimum in personnel management Make everyone aware of “The Toyobo Group‘s Image of an Ideal Employee” This was announced to all employees in April 2010. Efforts to increase awareness will continue.

27

Examination and promotion of measures to improve communication Examination and promotion of welfare facilities Continuing in fiscal 2011 and in fiscal 2012

Consideration for diversity Promote use of individual abilities that are unrelated to gender

Implement measures related to Japan’s declining birthrate and aging of society as well as achieve a good balance between work and private lives Made preparations for obtaining certification under Article 13 of Japan’s Next Generation Law Received certification for use of the Kurumin Mark in May 2010

Examine status of and promote compliance with regulations for specified diagnoses and health guidance Implemented at the branch level

Continuing in fiscal 2011 and in fiscal 2012Implement mental health measures Promoted development of measures at the branch level and encouraged networking

Continue to reduce sanitary risks Respond to new strain of influenza

28Securing labor safety

Conducted new equipment risk assessments under Ministry of Health, Labour and Welfare Continuing in fiscal 2011 and in fiscal 2012

Active initiatives by top-line managers Continuing safety initiatives by top-line managers

Upgrading safety and disaster prevention Preparation of fire prevention measures following major earthquakes Selection of persons to be in charge of preventive measures and review of fire prevention plans

Community Activities

Build up good relationships with local communities to create a sound,

sustainable society29 and 30

Participation in community activities Participate in traditional activities and in activities in the vicinity of the branch offices

Continuing in fiscal 2011 and in fiscal 2012Provide support for employees’ voluntary activities Activities to beautify the areas surrounding branch offices and support for Toyobo Future Forest volunteer activities

Contributing to policies to prevent global warming Support for the Toyobo Miyazaki Forest

Natural Environment

Contribute to society through technologies that are gentle to people

and the Earth, work to preserve the global environment, and leave behind

a comfortable and rich environment for future generations

3132

Develop strategies for environmental activitiesExpand the environmental management system Continuing in fiscal 2011 and in fiscal 2012

Promotion of environmental education for Toyobo Group employees Promotion of ECO-SHINE Club activities, holding of environment-related seminars

32 Biodiversity initiatives Toyobo Future Forest activities, implementation of cleanup campaigns by branch offices Continuing in fiscal 2011 and in fiscal 2012

33 and 34 Promotion of green distribution in response to the revision of Japan’s Environment Law

Contribute to reduction in CO2 emissions through active joint distribution activities with other companies and improvements the efficiency of distribution Continuing joint distribution arrangements with three other companies

33 to 36

Reduction in CO2 emissions Energy conservation activities and conversion to non-carbon forms of energy

Continuing in fiscal 2011 and in fiscal 2012

Reduction in industrial waste Promotion of zero-emission activities

Reduction in emissions of harmful substances Reduction in PRTR, VOC, atmospheric, and effluent emissions

Expansion of eco-related businesses Promotion of CSR procurement and green procurement

Broadening range of eco-friendly products Improve framework for eco-reviews

36 Promote use of port facilities in the vicinity of branch offices Shifted to the closest port for export/import cargos Using ports in Tsuruga, Shin-Toyama, Yokkaiichi, and Iwakuni and, thereby, reducing energy used in transportation

37 Improving systems for safe management of chemical substances Introduced systems for management of chemical substances Went into operation in June 2010

38 Disclosure of environmental information Made further disclosure, including environmental accounting data Published in the CSR Report

Strengthening ofGroup Governance

Basic Policy

Toyobo’s GovernanceStructure

The Toyobo Group, to respond to the changing times and enhance sustainable corporate value, has established the policies of ensuring rapid and accurate decision making, ensuring transparency in management, and emphasizing fairness. Based on these principles, we are working to strengthen governance structure, as well as bolster risk management and compliance structures.

●Board of Directors and Board of Executive OfficersToyobo as a “Company with Auditors” appoints one outside director to its Board of Directors and has adopted the Executive Of�cer System. By clearly separating the decision-making and oversight functions of the Board of Directors from the business execution functions of the executive of�cers, Toyobo strives to increase management transparency and fairness as well as create a corporate governance structure that enables rapid decision making and ef�cient conduct of business activities.

The Board of Directors, which is responsible for decision making and oversight, consists of nine members, including the previously mentioned one outside director, whose role is to ensure transparency and fairness in corporate management. In view of the diverse and specialized nature of Toyobo’s business activities, the eight members of the Board of Directors, after exclusion of the outside director, also hold positions as executive of�cers and are responsible for rapid and accurate decision making.

Business execution is conducted by the Board of Corporate Executive Of�cers and the Board of Corporate Of�cers, which are convened by the President and Chief Operating Of�cer (COO). The role of these boards includes making decisions on matters relating to business execution as delegated by the Board of Directors and reporting on Companywide projects. ●Auditing StructureThe auditing structure consists of four auditors, two of whom are outside auditors. Auditors attend meetings of the Board of Directors and other important meetings and provide their opinions as necessary, as well as oversee the business execution of directors through such means as operational audits of each division. Toyobo has retained KPMG AZSA LLC as its accounting auditor �rm in accord with Japan’s Companies Act. Meetings are held periodically to exchange information with the representatives of the accounting auditor �rm, as well as receive auditing plans and reports on the results of audits.

Toyobo has also created its Internal Audit Department to monitor the effectiveness of internal control systems. The Internal Audit Department reports the results of its internal audits to and exchanges opinions with the corporate auditors.

Risk ManagementStructure

Toyobo has established the Planning Council and Management Council under the Board of Corporate Executive Of�cers. These bodies examine in advance major capital investments and new projects as well as major investment projects and other undertakings from a specialist point of view and take steps to manage any business risks. For the management of speci�c risk, Toyobo has formed the CSR Committee, which is chaired by the President, for overall risk management. Subcommittees under this body that manage individual types of risk in the Toyobo Group as a whole are the Global Environment and Safety Committee, Product Liability Prevention/Quality Assurance Committee, Compliance Committee, Export Reviewing Committee, Internal Control Committee, Information Committee, and Research and Development Committee.

Toyobo has created a structure for Company wide corporate governance that assigns supervisory responsibility to Toyobo’s operating divisions based on the nature of the businesses of speci�c subsidiaries and af�liates. In addition, the Corporate Planning Division promotes corporate governance from an overall perspective. For auditing on a Groupwide basis, Toyobo’s corporate auditors collaborate with the corporate auditors of Group subsidiaries and af�liates to make improvements in auditing activities.

Compliance Promotion

■Corporate Governance Structure

■Exhibit 1: Results of the Compliance Questionnaire (Administered in October 2010, with 4,076 responses)

Basic Policy Toyobo has summarized the meaning of its basic philosophy, Junri-Sokuyu, which means “Adhering to

Reason Leads to Prosperity,” which is the core of its compliance policy, as well as its speci�c guidelines for

action in the Toyobo Group CSR Charter and the Toyobo Group Employee Guidelines for Action. (Please

refer to pages 15 and 16.)

●Promotion StructureAs an operating structure, Toyobo formed a compliance group within its Legal Department to promote

compliance. In addition, Toyobo has created a Compliance Committee as a standing unit, and it oversees

decision making related to compliance.

●Reading through the Toyobo Group Compliance ManualToyobo has combined its Toyobo Group CSR Charter and Toyobo Group Employee Guidelines for Action into

one manual and, during the speci�ed month for focusing on compliance, the content is read aloud in all

workplaces to raise awareness and promote full compliance with laws and regulations. Also, to make it

possible for this manual to stay in step with social changes, it is revised annually.

●Explanatory Meetings and Training for Various Employee LevelsFor managerial-level staff in Toyobo and the rest of the Toyobo Group, explanatory meetings are held that

cover revisions in legal regulations and provide opportunities for studying cases of violations of rules and

regulations. Toyobo also works to heighten the awareness of compliance for new employees and for staff

who have been promoted to more senior positions. These activities have the objective of permeating the

understanding of compliance throughout the organization and promoting the observance of rules and

regulations.

●Conducting of Compliance Questionnaire SurveysToyobo uses a “compliance checklist” to survey staff in managerial positions in all its workplaces and,

thereby, con�rm standards of compliance in daily work activities. In addition, Toyobo conducts a

“Compliance Questionnaire” among all employees to identify any issues related to the status of compliance

and activities to promote compliance. (Refer to the summary in Exhibit 1 below.)

●Publication of the Compliance ReportsTo increase awareness of compliance risk in business activities, examples of compliance violations are

introduced every month, and employees are encouraged to be aware of risks.

●Establishment of a Compliance Consultation LineTo provide for an internal consultation function, Toyobo has established its “Compliance Consultation Line.”

This provides a channel for addressing legal violations and improper activities at the workplace level as

Company issues, taking swift and appropriate action, and preventing recurrences of such issues.

General Meeting of ShareholdersElection/Dismissal

Conduct of Operations

Decision Making, Oversight, Election, and Dismissal

Election/DismissalElection/Dismissal

Board of Directors

Board of Corporate Executive Of�cers

President and COO

Board of Corporate Of�cers

Corporate Auditors ofToyobo Group Companies

Group Companies

Planning Council

Management Council

Accounting AuditorNine Directors (including one outside director)

Board of AuditorsFour Corporate Auditors

(including two outside auditors)

Council for Deliberation onRegulations Related to Directors

(including one outside member)

Proposals

Proposals

Reports

Reports

- Approval of Election/Dismissal-Judgments on the Quali�cations and Appropriateness of the Accounting Auditor

Accounting Audit

InternalOperations

Audit

Division・・・ Internal Audit DepartmentInternal Audits

Collaboration Collaboration

20080

20

40

60

80

100

2009 2010 (Fiscal yers)

（%）

19

59

20

1

18

51

31

1

17

50

32

20060

20

40

60

80

100

2007 2008 2009 2010 (Fiscal yers)

（%） 3

34

36

26

Question 1: Did you read last year’s or this year’s Compliance Manual?

1

24

36

38

2

18

33

46

1

14

30

53

1

11

34

5320

40

60

80

100（%）

20060

2007 2008 2009 2010 (Fiscal yers)

22

25

27

25

10

19

25

45

6

18

24

51

4

16

25

55

4

16

25

56

Corporate Governance Compliance

Other CommitteesGlobal Environment and Safety Committee, Product Liability, Prevention/Quality Assurance Committee, Compliance Committee, Export Reviewing Committee, Internal Control Committee, Information Committee, Research and Development Committee

❶ It is still sitting there where I put it.❷ I glanced through it.❸ I read the sections related to my work (including

workplace readings of the manual).❹ I read the manual from cover to cover (including

workplace readings of the manual).

❶ No, I did not know about it.❷ I have heard about it, but I do not really

understand the purpose or how to use the consultation line.

❸ I know about it, but, if possible, I would prefer not to use it.

❹ I know about and will use it when necessary.

❶ As long as we obey the law, we can do anything we want to.

❷ I certainly do not violate the law or internal Company rules.

❸ I certainly do not violate the law, and I never do anything that is unethical.

❹ In addition to ❸ above, as one Company employee, I try to be a model for others.

Question 2: Did you know that the Company has provided for a Compliance Consultation Line for reporting and obtaining advice regarding legal violations in the workplace that you cannot deal with yourself?

Question 3: Regarding your own views on compliance, which of the following best describes your ideas?


InternalAudits

CSR Committee

Product SafetyPhilosophy

Product SafetyTraining

The �fth basic and practical product safety engineer training seminar was held at the Toyobo Head Of�ce �ve

times during the �scal year. These sessions are held as part of product safety training within product liability

and quality assurance activities. The seminar is attended by product safety engineers who have been appointed

by business segment general managers, and their objective is to raise the level of product safety engineers.

This seminar is in two parts, with the �rst presented by the

Quality Control Of�ce and covering product safety engineers’

duties and basic product safety. The second part includes a report

on topics raised in previous sessions and an exchange of opinions

among the participants. The topic raised in the previous session

that was covered this time, which was proposed by the head of

the secretariat, was the preparation of commercial distribution

�owcharts of products of the participants’ respective divisions

and summaries of issues identi�ed. The objective of these

�owcharts was to clarify where product liability risks may arise.

Product Liability andQuality Assurance

Activities in Fiscal 2012

●Product Liability and Quality Assurance Activity PolicyThe Toyobo Group implements quality assurance and product safety activities all along its supply chains.

Systems have been created to capture external information as well as data on changes in the world around

us, and then re�ect these in product quality.

●Principal Activities

●Strengthening quality assurance systems overseas (production and raw materials procurement)

●Making risks transparent: Promoting the use of business �owcharts for the assessment of risks and

increasing risk transparency

●Making management systems transparent: Designing a quality assurance system chart for each business

model, integrating the evaluation of the assessment of product liability and quality assurance (to increase

ef�ciency)

Activities to PromoteProduct Safety

Toyobo had no incidents related to product liability in �scal 2011. By anticipating changes in business

activities, Toyobo has made its product liability risk and related management systems transparent. By giving

thoroughgoing guidance, we work to prevent major product liability issues.

●Accompanying the formation of Toyobo’s Fine Chemical Headquarters Division (formerly, Toyo Kasei

Kogyo Co., Ltd.), we have implemented product liability and quality assurance support systems.

Speci�cally, this division has been designated as a unit for quality improvement, and we have conducted

audits and follow-up on a monthly basis regarding legal compliance, focusing on chemical substance

management, and the division’s quality assurance

system. Also, through assessments of product safety

and quality assurance, we have reviewed the division’s

product safety and quality assurance subcommittee

system and made suggestions to the head of the

division, including the conduct of reviews.

●We also conducted product safety assessments

periodically (in �ve of Toyobo’s business segments and

one Toyobo Group company). As a result, all received

an S evaluation, based on a �ve-rank scale of E, S, A,

B, and C, with S or higher being the goal.

●Product liability response training sessions were held

in nine of Toyobo’s departments and 10 Toyobo

Group companies to identify strong and weak points

and established items for evaluation aiming at the

next set of response training sessions.

Activities to PromoteQuality Assurance

In response to customer requests and changes in the world around us, we work to create systems for quality

assurance that re�ect these requests and changes in detail and in a timely fashion, to prevent the emergence

of major issues .

●To secure effective quality management activities in the Toyobo Group, we conducted quality assurance

assessments (in �ve of Toyobo’s business segments, four business departments, and two Toyobo Group

companies). As a result, we were able to con�rm

the effectiveness of quality management

activities of the business segments and business

departments. On the other hand, in those two

Toyobo Group companies, we identi�ed issues

and made con�rmations in the workplace, and

then we worked together to respond to the

issues that were identi�ed.

●To prevent the spread of problems that had

occurred in the past, we centralized the handling

of major complaints and created a database of

the relevant information. In addition, we

prepared materials related major issues

experienced by the Toyobo Group, conducted

seminars and other internal educational

activities, as well as worked to create

frameworks for re�ecting these in quality

assurance activities.

Quality AssuranceTraining

In November 2010, which was designated as Quality Month, a

seminar was held to make the most of the Toyobo Group’s

quality assurance activities. The theme of the seminar was

“Customer Satisfaction and Quality Management,” and a

lecturer from another company was invited to speak. Topics

covered included brand strategy, the concept of customer

satisfaction within the context of globalization, quality assurance

systems, quality training, and human resource development.

Speci�c examples of activities were also covered in the seminar.

■Toyobo Group Product Liability Response Framework

Quality AssurancePhilosophy

Policies

Deliberation and decisions on product safety measures

Implementation of product safety measures

Product safety examinations

Product liability response training

Toyobo Group Product Safety Policy

Product Liability Prevention/Quality Assurance Committee

Product Liability Prevention/Quality Assurance Promotion Committee

Product Safety Assessments

Bioethics Screening Committee

Product Safety Screening Committee

Product Liability Response Training

Product Safety Training (Practical liability training seminars/basic and practical

product safety engineer training seminars, etc.)

■General Framework for Quality Assurance Activities　

Activity assessments/Guidance for improvement/Resource reallocations

Make continuingimprovements inquality assuranceactivities

Reports on activities

Capture informationon external

developments Satisfaction/

trust

RequestsSatisfaction/

trust

RequestsProducts andservices

Evidence assessments/Guidance forimprovement

Evidence of activities/Reports for improvement

Customers/Stakeholders/Markets/Environmental Regulations

Quality Assurance Of�ce Business Departments

The basic and practical product safety engineer training seminar

Activities of theCustomer Consultation

Room

To have customers use the products and services of the Toyobo Group with security and peace of mind, we believe

it is necessary to respond proactively to customers’ inquiries, requests for advice, complaints, and suggestions.

The Toyobo Customer Consultation Room was established in 1995, and, with the motto of “Giving responses

that are prompt, polite, and appropriate,” the consultation room listens actively to customers’ opinions and

requests. The information obtained from customers is used to signi�cantly improve the safety of products and

services and work to prevent product liability issues in advance as well as prevent their recurrence. Personnel of

the consultation room take care to be fully responsive from the very �rst contact with customers.

Product Safety PhilosophyApplying technologies that are gentle on human beings and the natural environment, we contribute to society by providing safer products and aim to create a more-af�uent society in the 21st century.

Quality Assurance PhilosophyWe always take the perspective of the customer, and each of us insists on putting quality �rst as we work to develop and offer products and services that are useful to society, give due consideration to safety and protection of private information, as well as strive to win customer satisfaction and trust.

Quality assurance seminar

Customers“Transforming” Relationships


Qualitymanagementactivities

Ensure that qualityis built into products

Quality assuranceactivities

Building inquality

Quality controlactivitiesQuality

assuranceassessments

Internalaudits

CSR ProcurementGuidelines

Criteria forSelecting Suppliers

Criteria for SelectingBusiness Partners

(Collaborators)

■Common Stock (As of March 31, 2011)

■Composition of Shareholders by Type

Issuance ofNew Shares in

Overseas Markets

Communication withShareholders and

Investors

Responses to SociallyResponsible Investing

(SRI)

CSR Procurement Guidelines

Number of sharesauthorized for issue

Suppliers and Business Partners“Transforming” Relationships

Shareholders and Investors“Transforming” Relationships

(1) Maintain and improve compliance with laws and other relevant regulations

(2) Maintain and improve fairness in transactions and observance of corporate ethics

(3) Disclose and discuss timely and proper information with stakeholders as well as maintain and improve information security

(4) Ensure product safety as an integral part of supplying products

(5) Respect employees and give due consideration to human rights, employment conditions, as well as safety and sanitation

(6) Maintain and improve environment-related activities (green procurement and green purchasing)

(7) Take proactive initiatives in contributing to the community

Individuals and others46.39％

Financial institutions31.22％

Companies6.27％

Foreigners12.76％

Securities companies3.37％


The Toyobo Group aims to increase its corporate value through sustainable growth. The Toyobo Group also

works to increase management transparency through communication with shareholders and investors, while

providing timely and appropriate disclosure of information with due regard for fairness.

●Approach to Information DisclosureToyobo complies with legal requirements and the regulations of stock exchanges in disclosing its corporate

information. However, the Toyobo Group goes beyond legal disclosure standards and proactively offers

information that may be useful to investors in making judgments.

●Financial Reports and PresentationsBased on disclosure rules, the Toyobo Group releases quarterly �nancial results through the Tokyo Stock

Exchange and the mass media. When reports on results for the full �scal year and the second quarter are

announced, the President himself explains the content of these reports. In addition, Toyobo holds

presentations for �nancial institutions, including institutional investors and securities analysts, and the

President explains the content of the results and management policies going forward.

Further more, following the announcements of quarterly results, the staffs in change of the Investor Relations

(IR) Group meets with institutional investors and securities analysts individually. Feedback on the opinions

received from shareholders and investors is provided, to Toyobo Group management.

●Annual General Meetings of ShareholdersThe Annual General Meeting of Shareholders is held each year in late June at Toyobo’s Head Of�ce in Osaka.

A total of 493 shareholders attended the general meeting at the end of June 2010. The meeting covered the

reports and accounts, including the Business Report and Financial Statements as well as proposals brought

before the annual meeting for decision by shareholders.

●IR InformationThe Toyobo Group is also working to expand its IR information dissemination activities via its Internet

website, which offers the advantage of immediate communication. Information made available according to

timely disclosure practices (�nancial Reports, etc.) is posted on the website at the same time it is made

publicly accessible. In addition, the website contains an archive of press releases and Securities Reports issued

previously. In �scal 2011 also, the Toyobo Group has worked to expand its document disclosure, give due

consideration to ease of understanding, and updated information as appropriate.

The Toyobo Group has virtually completed structural reforms in its textiles and other businesses and is now

aggressively expanding its business activities focusing its management resources on specialty businesses. To

raise funds for this aggressive program of expansion, in March 2011, Toyobo issued new shares in overseas

markets. As a result of this action, while striving to grow as a strong enterprise and expand its net income,

the Toyobo Group is implementing measures to improve its return on assets and strengthen its �nancial

position.

To provide for the sustainable growth of the Toyobo Group, we are working actively to conduct our

corporate activities, business activities, and CSR activities as an integrated whole. We respond to requests for

interviews and other information-gathering related to SRI, and we use these as opportunities to explain our

approach to CSR. Going forward, the Toyobo Group will continue to act in a socially responsible fashion at

all times while, at the same time, endeavoring to contribute to a better understanding among investors of

our CSR activities. In March 2011, the activities of the Toyobo Group in the areas of “environment,”

“society,” and “governance” were recognized, and Toyobo shares were selected for inclusion in the

FTSE4Good Index, the SRI index prepared by FTSE International Limited*.

*FTSE International Limited is a specialized organization based in the United Kingdom that develops, computes, and manages representative indexes of stocks and bonds. In addition to its head of�ce in London, FTSE has of�ces in New York, Paris, Frankfurt, Hong Kong, and elsewhere, and it provides a range of indexes to investors throughout the world.

2,000,000,000

890,487,922 (Including 1,872,894)

103,768Number of shareholders

Shares issued to date

With legal compliance and environmental preservation as a baseline, necessary information on items

procured is gathered and compiled as well as then provided accurately and promptly in response to requests

from internal users.

The Toyobo Group provides fair business opportunities to all companies in Japan and overseas as well as aims

to conduct its transactions in a fair and transparent manner.

Since �scal 2007, the Toyobo Group has instituted full-scale green procurement and green purchasing

activities, and these were stepped up to the next level as CSR procurement activities in �scal 2009. In �scal

2012, we are working to make these activities more broadly based and improve them on a continuing basis

by providing feedback on actual accomplishments and results of assessments in the previous �scal year.

When selecting suppliers, the following criteria are considered, taking CSR procurement guidelines as a base.

(1) Management policies are clear

(2) Financial condition is sound

(3) Quality/Cost/Delivery

Quality: Technological and development capabilities, quality management systems

Cost: Productivity, cost improvement activities*, cost-competitiveness

*Value engineering (VE) and value analysis (VA)

Delivery: Capabilities for providing stable supplies, production capacity

(4) Strong information supplying capabilities

(5) Strong abilities to provide business solutions

(6) Partnership

In addition to the criteria for selecting suppliers, the strength of awareness as a member of the corporate

group is also taken into consideration.

(1) Quality and philosophy of management

(2) Stance toward transactions

(3) Sincerity and sense of responsibility regarding transactions

(4) Cooperativeness

(5) Price level

(6) Activities to improve capabilities for raising corporate quality

(a) Level of specialization and professionalism

(b) Technological and development capabilities, ability to improve

To respect the personalities and individual characteristics of employees as well as create workplace

environments where employees will be motivated to work actively, Toyobo works to increase the awareness

of human rights issues. In each business location, Toyobo provides training

that covers human rights and harassment issues for newly employed

personnel as well as training for employees at various levels and job roles,

including annual training sessions, workplace leader training, as well as

training for newly appointed managerial-level personnel.

Especially in Toyobo’s Head Of�ce and business locations, which are focal

points, Toyobo managers in personnel and general affairs sections have

appointed “Of�cers for Promoting Awareness of Human Rights and Fair

Employee Practices” based on guidance from prefectural labor of�ces.

Each year, periodic training sessions are held on a continuing basis for

these of�cers, and they are responsible for brie�ng personnel in charge of

interviewing employee candidates and lecturers who conduct internal

training sessions as well as work to create a better awareness of human

rights among employees.

DevelopingOutstanding Human

Resources

Toyobo’s human resource development programs are designed and managed for providing integrated and

continuing support for (1) on-the-job training and personnel systems, (2) off-the-job training, and (3)

self-development.

On-the-job training accounts for a large portion of human resource development activities, and an issue-oriented,

on-the-job training system has been established based on speci�c issues and themes to make these activities

systematic and effective. In addition, “personnel systems” are regarded as the supporting pillar of human

resource development, and, in the personnel evaluations that are conducted annually, key elements are “work

assessments and setting goals” as well as, simultaneously, “content aimed at setting courses for career

development,” which are made clear in discussions between employees and their superiors.

Along with this on-the-job training, systems have been put into place that enable employees to select from a

diverse and �exible set of off-the-job training options and support for self-education when they consider their

career objectives. These systems provide support to motivated employees in furthering their career development.

Drawing on Diversity Toyobo makes personnel evaluations and sets employment conditions with an emphasis on capabilities and

without regard for gender, nationality, or other personal attributes to create a corporate culture where a

diversity of personnel will have a feeling that Toyobo is a worthwhile and rewarding place to be employed.

For example, the percentage of women in managerial positions is steadily increasing, and Toyobo is creating

a working environment where women can make active contributions. In addition, senior employees over 60

years of age may be re-employed to participate in the training of younger employees and in transmitting

skills and techniques to the next generation. Moreover, the percentage of employees with physical disabilities

at Toyobo exceeds the minimum legal percentage requirement.

Measures toPrevent Sexual

Harassment

As provided for under Japan’s Equal Employment Opportunity Act for Men and Women, which went into effect in

April 1999, Toyobo has formed grievance committees in various business locations that are responsible for providing

consultation on the issues covered by the Act (sexual harassment, etc.). In addition, to provide a framework for

dealing promptly and appropriately with these issues, Toyobo has established a

Compliance Consultation Line for smooth internal communication on these

issues and also works with the labor union on these matters.

Moreover, Toyobo is working proactively to heighten the awareness of

these issues both in Toyobo itself and in the Toyobo Group and

collaborator companies. These activities include the holding of internal

training sessions, training for managerial-level personnel, and meetings to

explain compliance issues.

Human RightsEducation andEnlightenment

Promoting HealthyLabor and

ManagementRelationships

Toyobo conducts collective bargaining and labor-management consultations within the framework of the

“Management Consultation System.” In addition to the annual Central Management Consultation Meeting,

which is held every six months, Toyobo holds management policy brie�ng meetings, conferences on

operations of business segments, production explanation meetings, management consultation meetings at

the business location level, and other meetings for exchanging opinions proactively with the labor union and

deepening communication between labor and management.

■Human Resource Development Programs

Training courses in individual of�ces

On-the-job leader training

Training for mid-career hires

Specialized technical courses

Departm

ental training

Departm

ental training

For obtaining special quali�cations, correspondence courses/e-learning, education, English-language skill im

provement support

Marketingtraining

coachingcourse

Technical/practical training courses

MarketingTrainingmid-levelcourse

MarketingTraining

Basiccourse

Trainingprogram for

businessmanager

candidates

Outsideseminars Seconding

to outsideseminars

EJSEngineering

Practicalseminar

EKSEngineering

Basicseminar

Language training and overseas study

Voluntary training

*3

Training forMG-level

promotions

Linemanagertraining

Practicaltrainingsystem

Personnel evaluation system

Issue-oriented on-the-job training (system)

Personnelsystems

Self-development

On-the-jobtraining

Personnel-level

classi�cation

MG-level

Firstto

third

Fourth

Fifth

Sixth

Seventh

Courses forselection

Courses forselected

employeesDepartmental

trainingSupport

Marketing Technical Research Specialized

Courses by job groupCourses bypersonnel-level classi�cation

Off-the-job training

Notes: *1: MSS (leadership courses, personnel management courses, Time management (TM) method courses for attaining speci�c goals, courses for management strategy and exchange with other industries)

*2: BSS (conceptual development improvement courses, basic �nance courses, digital presentation courses, courses for improving problem-solving abilities)*3: Courses led by internal instructors, English-language writing courses, training in intellectual property, and necessary training for individual departments

■Internal Training Courses for Ability Development(Common across Categories)

Planning/conceptualization

Performance management/analytical capabilities

Organizational management/Dealing with people

Training Capabilities

Required training

Training Courses Training courses are divided into courses

for selection, courses by personnel-level

classi�cation, courses prescribed for

employees, and courses by job type. A

broad curriculum is provided, including

courses for selection that enable

employees to acquire necessary skills for

personal growth and training to enable

employees to gain necessary skills for their

employee-level classi�cation.

Courses by job group enable employees to

obtain training appropriate for their career

level and include training for employees

working in marketing, research, and other

areas to enable them to acquire the

needed skills.

Classi�cation

Improvementtraining

Improvementtraining

MSS

Employee

MG-levelcandidates

Mid-levelmanagerialemployees

Managers

Specialist trainingby job type fornew employees

for basic improvement

Training for department managers (Programs for candidates for general managers of departments/seconding for external training)

Screening/training for M-level promotion candidates

Line manager training

Mid-level business training

Basic business training

Training for new employees (�rst half/second half)/training for changing job group/training for mid-career hires

Courses for management strategy and interchange with other industries (for selected personnel)

Course for strengtheningconceptualization

Toyobo basic �nance course(required) Digital presentation course

Toyobo personnelmanagement course

Course for problem solving andapproach improvement

TM-method courses forattaining speci�c goals Toyobo �nancial

strategy coursePractical course in planningand conceptualization Leadership course

Courses for selection (options) Courses for selected employees

Number of Women in Managerial Positions (Level 3 or Higher) Total Ratio

(Toyobo basis)

2007 2008 2009 2010 (Fiscal years)0

5

10

15

20

30(Number)

25

0

0.5

1.0

1.5

2.0

3.0（%）

2.5

2006

2520 24 2617

2.4

2.8 2.83.1

1.9

Ratio of Employees with Disabilities*

*The minimum legal percentage requirement is 1.8%.

2007 2008 2009 2010 (Fiscal years)0

0.5

1.0

1.5

2.0

2.5（%）

2006

2.09 2.00 2.002.00 1.93

Training session in harassment prevention at the Iwakuni Of�ce

Training for personnel who have completed three years of work at the Tsuruga Of�ce

Assistant manager level personnel receiving training in the Toyoma Of�ce

Employees“Transforming” Relationships


MSSmanagement

skillseminars*1

BSSbusiness

skillseminars*2

Mid-levelbusinesstraining

Basicbusinesstraining

Newemployeetraining

Trainingfor jobgroup

transfers

BSS

Initiatives forSecuring a ProperWork-Life Balance

Toyobo has introduced such systems as “special leaves for child rearing” and “leaves for caring for the elderly”

that enable employees to combine performance of their duties as employees and attend to family matters as

well, with the aim of offering options for more-ful�lling lifestyles. In addition, Toyobo offers “volunteer leaves,”

“donor leaves,” and “�exible leave time” arrangements, while also encouraging male employees to take some

leave time to assist their wives with child rearing.

Also, to provide support for combining work and attending to family matters, Toyobo has designated one day

per month as “family day” or “no overtime day,” and is encouraging acceptance internally of the ideas of

giving employees more time of their own and for spending with their families as well as opportunities for

re�ecting on their lives.

Health ManagementSystems

During �scal 2011, as part of activities in support of the health management goal of “Everyone Protecting Their

Minds and Bodies—Let’s Work Together to Create a Healthy Workplace,” Toyobo choose four key themes:

“No Smoking,” “Nourishment,” “Exercise,” and “Creating Healthy Minds and Spirits.”

Also, the industrial health staff of each business location, based on the results of periodic health checkups,

provided guidance and support for improving lifestyles, thereby assisting employees in maintaining good health.

Mental Health Toyobo conducts an active program of measures based on the Ministry of Health, Labour and Welfare’s

“Guidelines for Maintaining Worker Mental Health.” Through the conduct of programs to improve the awareness

of managerial personnel and promotion of teamwork and other activities with specialist organizations, positive

results have emerged, including a decline in the number of long-term absentee employees. Also, beginning in

�scal 2010, Toyobo introduced a “trial return-to-work system,” to provide support for employees who have

become long-term absentees for mental health reasons but wish to return to their jobs.

Labor Safety andHealth

Toyobo is working toward zero accidents under its basic

understanding that “securing safety and health are major

prerequisites for corporate activities.”

Toyobo has put in place a safety management system through

production line management centering around its Safety and

Security Promotion Committee. Toyobo Group companies

promote safety activities through the Toyobo Group

Environmental Safety Committee. In addition, employees of

subcontractors who work on factory premises joint together with

Toyobo employees to conduct safety-related activities.

Status of LaborAccidents

In �scal 2011, there were eight accidents in the Toyobo Group as

a whole that required the personnel affected to take time off.

(Five of these were in Toyobo, and three were in the rest of the

Toyobo Group.) This was one less than in �scal 2010. However,

the number of such leaves due to accidents has not reached the

targeted zero level.

Number of Female Employees Taking Materity/Child Rearing Leave and the Ratio of Usage of This Bene�t

Number taking leave Ratio of women taking leave time

2007 2008 2009 2010 (Fiscal years)0

10

20

30

40

50(Number)

0

20

40

60

100（%）

80

2006

3137 2837

88

8088

100

86

16

Note: Incidence ratios are the number of cases where employees had to take leave due to accidents per one million hours worked. Employees include those working for the Toyobo Group and its subcontractors. The incidence ratio is computed each year on a calendar-year basis.

Creating a SafeWorkplace

To create a safe workplace, Toyobo prepared a medium-term plan

covering the period from �scal 2007 to �scal 2011, focused around

three objectives: “Improving Safety Management,” “Making

Equipment Safer,” and “Improving Safety Consciousness of

Workers.”

Improving Safety ManagementTo improve safety management, Toyobo is proceeding with activities

in line with its labor safety and health management system. In

addition, to communicate the stance of top management regarding

safety, the President and general managers of business headquarters

give appeals regarding the importance of safety directly to employees

in safety rallies and on other occasions.

Making Equipment SaferTo make equipment in the production workplace safer, Toyobo

conducts risk assessments periodically. When risk is determined to be

high, various safety measures are taken, including the installation of

guard devices and safety equipment. Improvements of this kind focus

especially on “eliminating situations where a worker may be caught

up in the machinery” and “creating work environments that are safe

even for elderly workers.” When new equipment is introduced, risk

assessments are conducted with the manufacturer of the equipment

and measures taken to secure the intrinsic safety of the machinery. In

addition, before the equipment goes into operation, a safety screening is conducted to ensure that it will

operate safely from the very �rst time it is used.

Improving Safety Consciousness of WorkersTo raise the safety consciousness of workers, Toyobo conducts periodic safety training in addition to training

carried out when employees enter the Company or are promoted to new positions. When accidents occur,

information on the incident is disseminated to all workplaces, and activities are under way at all times to

prevent the occurrences of similar accidents.

Aiming for ZeroLabor Accidents

Over the �ve-year period from �scal 2012 through 2016, Toyobo has prepared a new medium-term plan for

labor safety. The goal is to attain zero leave time due to accidents by �scal 2016 and to keep the number of

accidents that do not require leave time to less than 20 annually. To attain these goals, Toyobo will be

implementing four types of activities: “Top Management Proclamation on Safety,” “Use of the PDCA Cycle in

Safety Activities,” “Making People and Work Safer,” and “Making Equipment Safer.”

Trends in Incidence Ratios in the Toyobo Group

2007 2008 2009 2010 (Fiscal years)

0

1.0

2.0

2006

0.54

voice“Changing the Way to Use Time”Mayuko KozueInternal Audit DepartmentToyobo

I took a maternity/child rearing leave of absence and then

returned to work when my child reached one year of age, but

when the time to go back to work approached, a number of

uncertainties crossed my mind. About this same time, I heard

that the Company had introduced a new system internally

that allowed employees raising children to work shorter

hours. I decided to make use of this system right away and shortened my workday by two hours per day.

For women to work for long periods, I thought that it would be good if making use of the child-rearing

leave system could become a routine practice. For female employees raising children, for the time being,

I would like to see them using the Company’s leave system, determining what use of time is best for

them, and then �nding a harmonious balance with work activities.

0.35

Average for manufacturing in JapanToyobo (nonconsolidated) Toyobo Group


Employees“Transforming” Relationships

Child Support MarkOf�cial Certi�cation of Japan’s Ministry of Health,

Labour and Welfare

000

000

Communication withRegional Communities

The Toyobo Group positions the maintaining of relationships of trust with regional communities as the basis for

its corporate activities. To this end, the Toyobo Group places emphasis on information disclosure, proactive

participation in community activities, and maintaining close communication.

Each year, Toyobo holds exchange meetings with local community associations at each of its business locations.

To give community members a good understanding of the general outline of the activities of each business

location and promote mutual understanding, the meetings include explanations of Toyobo’s business

operations and introduce environmental protection and safety initiatives.

The Toyobo Group’s personnel also participate actively in regional cultural activities and work to contribute to

the community.

Initiatives at VariousBusiness Locations

At the Tsuruga Of�ce, Toyobo Group personnel participate in the Tsuruga Festival, which is held each September

to mark the coming of fall with events based on the history and culture of the area. In �scal 2011, 168,000

persons attended the festival and about 100 Toyobo Group personnel participated in the carnival and procession.

Personnel also took part actively in the environmental exhibition that was held in each region and worked to

deepen communication with local residents by providing introductions of the Toyobo Group’s

environment-related activities and its eco-friendly products.

The Iwakuni Of�ce presented an exhibit at the “Global Warming, Water, Environment, and Us 2010” event, which

was sponsored by the Iwakuni City Global Warming Countermeasure Discussion Council. About 400 persons

attended the event, and the environment-related products presented by the Toyobo Group attracted attention.

Support forVolunteer Activities

The Toyobo Group and its employees participate in clean up activities in

the vicinity of their business locations, including the cleaning of the

shores of Lake Biwa and the Suma coastline. The Toyobo Group is also

participating in the “Corporate Forest” activities of Wakayama

Prefecture and has leased an area of forestland of about 0.75 hectare in

the prefecture and given it the name “Toyobo Mirai Forest*.” Staff from

Toyobo Group business locations volunteer their time and gather

together to maintain the forestland. With the cooperation of local

forestry associations, volunteers have planted about 1,900 trees that are

well suited to the land. Each year, the volunteers also come to the forest

to cut the underbrush and conduct other activities that promote

biodiversity, and their activities help to promote a better understanding

and awareness of the environment among employees.

*Toyobo Future Forest

Assistance throughResearch Foundation

The Toyobo Centennial Biotechnology Research Foundation provides support for young researchers and assists

them in studying overseas and presenting papers at academic meetings.

Along with this, the foundation also provides support for the World Wildlife Fund (a leading international

organization in wildlife conservation and endangered species), accepts interns for practical training, recovers

apparel that is no longer needed from Toyobo’s of�ces, and engages actively in a range of other support activities.

Responding to theGreat East Japan

Earthquake

1. Impact on the Toyobo GroupThere were no instances of injury to personnel of the Toyobo Group, and the damage sustained by buildings,

equipment, and other assets was minor. The impact on the consolidated performance of the Toyobo Group of

the earthquake is not clear at the present time.

2. Assistance to the Stricken Areas(a) Relief donations

The Toyobo Group made a donation of ¥10 million through the Japan Red Cross.

(b) Relief suppliesRelief supplies were also provided that were appropriate to speci�c regions, including blankets, towels,

underwear, and food products.

(c) Other assistance●Relief donations and a group message received from Industrias Unidas (El Salvador), a Toyobo Group

company, were forwarded to Minami Sanriku-cho, a town in the stricken area (in Miyagi Prefecture) via

Takarazuka City.

●An event was held entitled “Let’s Make Original PET Bottles,” in which children painted drawings and

messages of encouragement on bottles �lled with drinking water. These were then delivered to primary

schools in the stricken areas through the relief supplies reception center of Minami Soma-shi (in

Fukushima Prefecture).

Masayoshi NakamuraNara Institute of Science and Technology, Graduate School of Biological Sciences

Clari�cation of the Molecular Basis for Microtube Severance in Plant Cortical Microtubes

I would like to express my deepest thanks for your assistance for my overseas

research activities. I understand that the Foundation’s research support

activities, which began in 1982, have provided long-term support to a total of

150 researchers over the years, with four receiving assistance this �scal year.

Among those who have received assistance for overseas research in the past

are many professors and others who are leaders in their respective �elds. We

are committed to moving forward with the development of our ideas and

research, and we hope that it will contribute to the advancement of medicine,

the life sciences, and biotechnology.

A Message from a Fiscal 2011 Recipient of Support for Overseas Study from the Toyobo Centennial Biotechnology Research Foundation

Researchtheme

Tsuruga Festival Interchange activities of the Inuyama Plant with the local community association

Cleanup activities at the Takasago Plant

Volunteers in the Toyobo Future Forest*

Tsuruga Environmental Forum

The Nyuzen Industrial Environment Fair

Relief supplies in transit

Group message from El Salvador Children who painted drawings and messages on PET bottles �lled with drinking water for people in the stricken areas

Exhibit presented by the Iwakuni Of�ce at the “Global Warming, Water, Environment, and Us 2010” event


Communities“Transforming” Relationships

Basic EnvironmentalPolicy

Environmental PhilosophyWe contribute to society through the application of technologies that are gentle to people and on the natural environment. We work to preserve the earth’s environment and leave behind to future generations a world that is more livable and an af�uent society.

Policy for Environmental Activities(a) Development of Technology

The Toyobo Group draws on its full range of capabilities to develop technologies (product and production process technologies) that are gentle to people and on the natural environment and, thereby, implements its environmental measures.

(b) Environmental ProtectionAt all stages of product lifetimes, from development through design, manufacturing, sales, disposal, and recovery, the Toyobo Group works to forecast, assess, and reduce the environmental impact and thereby protect the natural environment.

(c) Contributions to SocietyAiming for a better global environment, the members of the Toyobo Group, as good corporate citizens, take proactive initiatives to support and participate in the preservation of the environment in society and the community and to protect biodiversity.

Status of ISO14001Certification

To upgrade and expand the Toyobo Group’s framework for environmental management, and then go on to

make further improvements, Toyobo’s business locations and the Toyobo Group’s companies are moving

forward with structuring environmental management systems to meet the requirements of ISO14001, the

international standards for environmental management. Thus far, 20 business locations have been certi�ed for

the ISO14001 designation for environmental management systems.

Environmental SafetyManagement System

The Toyobo Group has established the organization shown in the chart below with the aims of promoting

initiatives related to the environment and safety as it also ful�lls its social responsibilities, contributes to the

attainment of a sustainable society, and works to preserve the earth’s environment. The Global Environment

and Safety Committee discusses issues related to the environment and safety and sets related policies. The

Global Environment Preservation Promotion Committee and the Safety and Security Promotion Committee,

based on the policies set by the Global Environment and Safety Committee, discuss and make decisions on

speci�c matters for promotion and then supervise progress.

The Toyobo Group Environment and Safety Committee works to develop consensus regarding environmental

and safety initiatives and exchange information with the aim of taking environment and safety management

within the Toyobo Group as a whole to a higher level.

EnvironmentalCompliance

While working to prevent atmospheric pollution and water contamination to be in compliance with current legal

standards, the Toyobo Group is taking initiatives to reduce emissions by making continuing improvements. All

business locations have cleared regulatory standards, but by implementing further improvements in equipment

and facilities, the Toyobo Group is continuing to reduce its environment footprint going forward.

The Toyobo Group has conducted soil and underground water surveys of land it has sold and former plant sites. As

a result of these surveys, cleanup and remediation work is in progress on sites that were found to have irregularities.

To prevent the emergence of environmental issues and keep the impact on the environment to the

lowest-possible level from the time the issues occur, environmental preservation manuals have been prepared and

are used as the basis for action. In addition, the Toyobo Group is continuing to identify and assess environmental

risks, undertake environment-related training, and conduct risk response exercises.

To raise the level of environmental safety in the Toyobo Group, the Company’s staff conduct autonomous

environmental safety assessments. At Toyobo’s business locations and at Toyobo Group companies, on-site visits

are made once every three years and steps are taken to raise the level of environmental management. In �scal

2011, these assessments were conducted in two of Toyobo’s business locations and in 13 Toyobo Group

companies, and, in all locations, the status of environmental safety was found to be satisfactory.

To raise the awareness of environmental issues among employees, the Toyobo Group carries out many kinds of

educational and awareness-raising activities.

During “environment month,” environment seminars are held each year with university professors and lecturers

are invited from other companies.Many employees participate in these seminars. Also, during �scal 2011, among

awards presented within the Toyobo Group, the chairperson’s award of the Global Environment and Safety

Committee was given to the Tsuruga Of�ce for “reductions in CO2 emissions through the stoppage of internal

power generation (shifting to purchased power) and transition to other energy fuels.” Other activities inside and

outside the Company included the convening of a panel to improve environmental awareness and the sponsoring

of an environmental exhibit with the aim of introducing the Toyobo Group’s initiatives to employees and

members of the community. During the global warming prevention month in December, an exhibition was held

to showcase global warming products, and in �scal 2007 the “eco-SHINE Club” was created to implement four

items: namely, “household environment records,” “eco-drives,”

“zero receipt of bags at retail store cash registers,” and

“warm-biz/cool-biz.” Each month, the members of this club

distribute an e-mail magazine containing information related to

the environment. At present, about 2,100 persons are members of

the eco-SHINE Club.

Also, for new employees, the Toyobo Group has developed a

unique curriculum that includes environmental education

programs and a course for training ISO14001 internal auditors,

which is offered for members of the Toyobo Group as a whole.

EnvironmentalEducation and

AwarenessImprovement

BiodiversityInitiatives

Along with other previously ongoing environmental preservation activities,

the Toyobo Group has made clear its initiatives related to the preservation

of biodiversity and is actively engaging in the following activities.

1. In the “Corporate Forest” program of Wakayama Prefecture, the Toyobo Group is participating through the Toyobo Future Forest, which involves not only preservation of forestlands but also contributing to the securing of living space for wildlife.

2. The Toyobo Group is also working to improve the habitats for living creatures through the periodic cleanup activities conducted in the vicinity of its business locations.

3. Activities are also conducted to make improvements in idle land within business locations to create spaces suitable for wildlife habitats.

Through these various activities, the Toyobo Group is working to achieve symbiotic

relationships with nature and minimize the impact of its activities on biodiversity.

Environmental RiskManagement

Environmental SafetyAssessments

■Organization Chart

■Business Locations with ISO14001 Certi�cations

Toyobo Toyobo Group

PresidentAction planimplementationand management Global Environment and Safety Committee Toyobo Group

Environment andSafety CommitteeGlobal Environment Preservation

Promotion Committee

Environment and Safety Department

Safety and SecurityPromotion Committee

(Committee chairperson: Director in overall charge of production technology/Committee members: General managers, directors in charge)

Preparation of policy and auditing

(Secretariat)

Business segments

Business locations

Environment and Safety Of�ce

CSRCommittee

Environmental award ceremony at the Tsuruga Of�ce

“Biotope” at the Inami Plant

Toyobo Future Forest


Environmental Management“Transforming” for a Better Natural Environment

Companies/Business Locations

Research Center (Ohtsu, Shiga Prefecture)

Tsuruga Of�ce (Tsuruga, Fukui Prefecture)

Inuyama Plant (Inuyama, Aichi Prefecture)

Takasago Plant (Takasago, Hyogo Prefecture)

Takefu Plant (Echizen, Fukui Prefecture)

Shogawa Plant (Imizu, Toyama Prefecture)

Iwakuni Of�ce (Iwakuni, Yamaguchi Prefecture)

Group Companies

Toyo Cloth, Tarui Plant (Sennan, Osaka)

Mizushima Aroma (Kurashiki, Okayama Prefecture)

Date of Certi�cation

December 1996

December 1996

March 1998

March 1999

July 2000

July 2001

November 2002

Date of Certi�cation

December 1999

May 2000

Tsuruga Film (Tsuruga, Fukui Prefecture)

Nippon EXLAN, Nishioji Plant (Okayama, Okayama Prefecture)

Nippon Yupika, Misho Plant (Mine, Yamaguchi Prefecture)

Toyobo Techno Wool (Yokkaichi, Mie Prefecture)

Cosmo Denshi (Yokkaichi, Mie Prefecture)

Kureha Elastomer, Tsu Plant (Tsu, Mie Prefecture)

Kureha Elastomer, Kameyama Plant (Kameyama, Mie Prefecture)

Kureha Tech (Ritto, Shiga Prefecture)

Toyo Cloth, Iwakuni Of�ce (Iwakuni, Yamaguchi Prefecture)

Miyuki Elecs, Amazaki Of�ce (Amazaki, Hyogo Prefecture)

Miyuki Elecs, Itami Of�ce (Itami, Hyogo Prefecture)

December 2000

June 2001

October 2001

April 2002

January 2004

December 2004

December 2004

June 2005

October 2005

May 2006

October 2007

0

100

300

200

50

250

150

(registered)

0

15

10

30

25

20

5

TOYOBO --- Global Green Action Plan(Medium-Term Plan for Environmental Activities)

“Transforming” for a Better Natural Environment

First Period: Fiscal 2007 to Fiscal 2011

Priority issues and objectives for fiscal 2011 Results through fiscal 2011 (final year) Items for initiatives Objectives for fiscal 2016Level ofattainment

Second Period: Fiscal 2012 to Fiscal 2016Level of attainment: 100% or more 80% or more Less than 80%

Develop and commercialize green products

●Raise ratio of “Eco-Partner System®” products to 25%

1 Continuation of green products and green procurement(1) Creation of products that reflect concern for the environment

●Expansion of range of eco-friendly products

●Creation of products that reduce the burden on the environment

(2) Continuation of green procurement and green purchasing

1

Production in green factories(1) Energy conservation initiatives

●Activities to increase energy efficiency in manufacturing processes, etc.

●Promote distribution with small environmental footprint

(2) Recycling society initiatives●Promote the 3Rs

●Promote reduction in volume of industrial waste put in landfills

2

Implementation of environmental risk measures

(1) Management of risk of harmful substances●Improve supervision of chemical substances

●Reduce use of harmful chemical substances

(2) Reduction in environmental risk●Improve pollution prevention systems

●Dealing with sensory nuisances

●Promotion of wastewater crisis management

(3) Dealing with environmental liabilities●Handling PCB disposal

●Handling soil pollution

3

Improvement of good communication with society

(1) Publish Toyobo Group CSR Report

(2) Promote proactive communication with community members

(3) Promote activities to contribute to social diversity and biodiversity

4

Tactics for promoting environmental activities

(1) Upgrade the environmental management system

(2) Environmental safety assessments

(3) Sharing of environmental information

(4) Implement environmental awareness improvement policy

5

Production in green factories

● Improve energy unit (1.5% reduction year on year)

●Attain CO2 emission objective (10% reduction from fiscal 1994)

●Reduce industrial waste* (30% reduction from fiscal 2006)*The change in fiscal 2011 was due to the merger with Toyo Kasei Kogyo Co., Ltd.

●Attain zero emission status for the Toyobo Group as a whole (Reduction of industrial waste added to landfill to 2% or less)

●Reduce emissions reportable under the Pollution Release and Transfer Register (PRTR) requirements (Reduction of 20% compared with fiscal 2005)*

*The change in fiscal 2011 was due to the merger with Toyo Kasei Kogyo Co., Ltd.

2

Green procurement

●Complete transition to green procurement

3

Tactics for promoting environmental activities●l Promoted autonomous activities at business

locations and Toyobo Group companies

5

Maintain good communication with society

●Good evaluation from stakeholders●Maintain good community relations

4

0

100

200

300

400

CO2 emissions (Toyobo Group)

20072006 2008 2009 2010 (Fiscal years)

(1,000 tons )

0

200

400

600

800

1,000

CO2 emissions (Toyobo)

1993

Reference year

20072006 2008 2009 2010 (Fiscal years)

(1,000 tons )

0

0.55

0.60

0.65

0.70

Energy unit (Toyobo)

2005 2006 2007 2008 2009 2010 (Fiscal years)

・Published Toyobo Group CSR Report 2010・There were no major complaints from community residents.・Implemented Toyobo Future Forest activities, Suma coastline cleanup, apparel support,

cleanup activities near offices, and other initiatives

・Regarding CSR procurement, a questionnaire survey was conducted among principal suppliers and on-site visits were made for confirmation.

・For green procurement also, a questionnaire survey was conducted among principal suppliers as well as a chemical substance survey.

・Green purchasing initiatives were implemented for eight items, and, among these, 100% was attained for all items except office supplies and (fluorescent) lights.

・Implemented environmental safety assessments at two Toyobo business locations and 13 Toyobo Group companies

・Participated in Toyobo Group environmental exhibits, environmental seminars, and the Global Warming Prevention Month activities; solicited members for the “Eco-SHINE Club; trained ISO14001 internal auditing personnel; and conducted activities to heighten the awareness of environmental education

0

5

10

20

15

Volume of industrial waste emissions (Toyobo, excluding incinerated waste)

2005 20072006 2008 2009 2010 (Fiscal years)

(1,000 tons )Volume of industrial waste (Toyobo Group)

2005 2007 2008 2009 2010 (Fiscal years)

(1,000 tons )

0

500

1,500

1,000

PRTR emissions and transfers (Toyobo)

2004 2007 2008 2009 2010 (Fiscal years)

(1,000 tons )

0

2,000

1,000

3,000

PRTR emissions and transfers (Toyobo Group)

2004 2007 2008 2009 2010 (Fiscal years)

(1,000 tons )

0

1

2

4

3

5

Industrial waste added to land�lls (Toyobo)

Objective

2006 2007 2008 2009 2010 (Fiscal years)

(%)

0

3

1

2

4

5

6

7

Industrial waste added to land�lls (Toyobo Group)

Objective

2006 2007 2008 2009 2010 (Fiscal years)

(%)

2006

Number of “Eco-Partner System®” products

2006 2007 2008 2009 2010 (Fiscal years)

2006

Objective

0

10

30

20

Ratio of “Eco-Partner System®” product sales

2006 2007 2008 2009 2010 (Fiscal years)

(%)

2006


Actual

Reference year Reference year

Reference year Reference year

Increase the number of products with eco-mark certification

Raise green purchasing to 100%

Annual reduction of 1.5% in the energy unitReduction of 5% in CO2 emissions compared with fiscal 2006Annual reduction of 1% in distribution unit (ton/kilometers)Toyobo: Continuation of zero emissionsToyobo Group: Promotion of zero emissions

Reduce usage of A- and B-ranked substances

Eliminate legal violations

Symbiosis with community members

Participate in volunteer and support activities

Implement one every three years at business locations and Toyobo Group companies

Hold committee meetings and disseminate information

Carry out environmental education, hold environmental events, etc.

Progress ofEnvironmental

Preservation Initiatives

Under the Fundamental Policy on the Global Environment, prepared by Toyobo, active initiatives are being

taken to upgrade the infrastructure to address environmental issues and undertake eco-related businesses. In

addition, the Toyobo Group is working to establish uni�ed operation to help preserve the global environment.

Efforts to PreserveAtmospheric and

Water Quality

To preserve the quality of the air and water, the Toyobo Group is implementing measures to reduce the volume

of emissions. To lower emissions into the atmosphere, initiatives have included shifting energy fuels, including

replacing heavy fuel oil as the energy source for boilers with LNG. In the water sector, to lower the volume of

emissions, the capacity of water emission facilities has been increased, and measures have been taken to turn

highly polluted water that would place a burden on emissions treatment facilities into industrial waste.

Also, to reduce the intake of water as well as wastewater emissions, measures have been implemented to reduce

the usage and emission of cold water in water cooling equipment and promote the better management of water

usage by optimizing operating conditions.

Energy Conservationin the Office

To promote energy conservation in the of�ce, the Toyobo Group has

undertaken its “Challenge 25” initiative. Key goals of this initiative, which is

aimed at reducing CO2 emissions, are “setting the thermostat at 28°C for

air-conditioning and 20°C for heating,” “encourage cool biz and warm biz,”

“always turn off lights when they are not needed,” and “always turn the

switches on electric devices to the off position when not in use.”

In �scal 2010, to reduce air-conditioner usage during times when people are out of the of�ce, the Toyobo

Head Of�ce reduced the automatic running time of air conditioners by one hour to conserve energy.

Exhibition ofEco-Products

From December 9 through 11, 2010, the “Eco-Products 2010” exhibition was held at the Tokyo Big Sight

exhibition hall. It is the largest show of its kind in Japan, and the total number attending over the three-day period

exceeded 180,000 people.

The booths were divided into a number of categories by key

word, including “Plant-Derived,” “Solar Light/Water/Air,”

and “Warm Biz,” and the booths introduced CSR activities

related to the key words. In the plant-derived categories,

plastics obtained from inedible plant materials attracted

particular attention (including Toyobo’s use of caster oil

beans as a raw material for plastics).

Keeping a HouseholdEnvironmental Ledger

The “Eco-SHINE Club,” which was founded in 2007 (page 32), is promoting the

keeping of household environmental ledgers. In �scal 2011, 63 households

submitted their ledger covering a one-year period. Of these, the 13 households

who had submitted their ledger for three consecutive years and had the least

CO2 emissions received an Environmental Household Ledger Continuation Prize.

Going forward, these activities will be promoted, and we would like them to

contribute to reducing CO2 emissions.

Reducing theEnvironmental

Burden throughModal Shifts

To improve the ef�ciency of distribution, Toyobo is taking active initiatives that include implementing

distribution jointly with companies in the same industry and other industries and adopting a policy of delivering

goods to the nearest port. These activities also include implementing modal shifts, or switching from transport

by trucks to the use of ships.

Thus far, most of Toyobo’s products have been exported via ports in the Kansai region, including those in

Osaka and Kobe. By shifting to the use of the nearest ports for export, it has been possible to reduce the use of

overland truck transportation and, thereby, cut CO2 emissions. In addition, when importing raw materials and

other items, just as with exports, Toyobo has shifted to bringing imports in through the nearest ports, which

also substantially reduces the need for inland truck transport and thereby increases ef�ciency.

As a result of these initiatives, which began with the use of Tsuruga Port in �scal 2009, Toyobo has gradually

increased its use of ports in Iwakuni, Yokkaichi, and the new port in Toyama. During �scal 2011, this resulted in

a reduction in CO2 emissions of about 900 tons.

Also, as a result of using the nearest ports, not only has the ef�ciency of distribution increased and CO2 emissions

reduced but also this has contributed to revitalizing the regions where the ports are situated. Through active

participation in business activities that help to revitalize regional ports

and promoting green distribution, the Toyobo Group is striving to

contribute to regional communities.

●Principal Close-Proximity Ports Toyobo Is PromotingThe main seaports where the Toyobo Group is expanding its export

and import activities are the following: Tsuruga Port (located in

Fukui Prefecture, where Toyobo usage is contributing to expansion

in the use of the port facilities), Iwakuni Port (located in Yamaguchi

Prefecture), Yokkaichi Port (located in Mie Prefecture, where

Toyobo usage is contributing to encouragement of green

distribution) and Toyama New Port (located in Toyama Prefecture).Products that ReflectConcern for the

Environment

Under the Fundamental Policy on the Global Environment, prepared by Toyobo, assessments are made based

on Toyobo’s Eco-Review System*, and those products certi�ed as having an assessment above a certain level

are designated as “Eco-Partner System®” products, and this has been used as a uni�ed brand for eco-friendly

products since 1998. Areas covered by the assessments are “reduction in CO2,” “reduction in harmful chemical

substances,” “conservation of materials and reduction in waste,” “overall improvement,” and “third-party

assessment items.” As of April 2011, 281 products (including those covered by

non-disclosure agreements) have been registered. (In the Toyobo Group as a whole,

325 products have been registered.)*The Eco-Review System aims to promote the creation of products and technologies that are gentle to people and on the environment. Under this system, before a product is reviewed for product development, production technology development, and design of infrastructure facilities, consideration is given to and assessments are made of the life-cycle impact of the product in six stages (from design/development, raw materials, production, distribution/packaging, and usage/consumption to recycling/disposal/incineration). At Toyobo, it has been a registration condition for products to be designated as “Eco-Partner System®” products.

●Eco-Partner System®

For further information on the progress of environmental preservation initiatives, please access the following URL.

http://www.toyobo-global.com/sustainability/initiatives/efforts/

Volume of Water Intake (Toyobo Group)

2007 2008 2009 2010 (Fiscal year) (Fiscal year)

0

50

100

150

200

300(Million m3)

250 233233 221203

Total Emissions into Water Environments (Toyobo Group)

■2007　■2008　■2009　■2011　■2011 (Fiscal years)

COD Nitrogen Phosphorous0

200

400

600

800

1,400(tons)

1,000

1,200

1,322

1,1031,183 1,2051,195

Wastewater Emissions (Toyobo Group)

2007 2008 2009 20100

50

100

150

200

300(Million m3)

250

189205

2006

222

2006

207185 177

Total Emissions into the Atmosphere (Toyobo Group)

■2007　■2008　■2009　■2011　■2011 (Fiscal years)

NOx0

500

1,000

1,500

2,000

2,500(tons)

SOx

417371

433

313 334

1713 20 21 26

1,1171,111

1,3701,506

1,364

1,206

1,048

1,310

1,5681,642

Toyobo’s booth at the “Eco-Products 2010” exhibition

An example of a household environmental ledger

■Toyobo Group Making Active Use of Nearby Ports

Toyama Of�ceUse of Toyama New Port (from June 2010)

Tsuruga Of�ceUse of Tsuruga Port (from April 2008)

Iwakuni Of�ceUse of Iwakuni Port (from August 2010)

Inuyama PlantUse of Yokkaichi Port (from April 2010)


Initiatives to Reduce the Burden on the Environment“Transforming” for a Better Natural Environment

“Eco-Partner System®” mark

Toyobo has established “Standards for Chemical

Substance Management” and bases its related

management activities on these standards. Chemical

substances handled are classi�ed into �ve ranks based on

domestic and international legal regulations and

international agreements as well as on requests from

customers and other considerations. The management of

these substances depends on the rank they are assigned

to. Substances in ranks A and B are, in principle, forbidden

or subject to reduction measures. However, risk

assessments based on screening are conducted, but only in

cases where the substances in question are judged to

meet international regulations and where risk can be

suf�ciently averted is handling permitted.

System forManagement of

Chemical Substances

The Toyobo Group endeavors to manage chemical substances properly over the life cycle of its products (from

development to design, manufacturing, sales, usage, and disposal) to preserve the environment, prevent

accidents, secure labor safety, maintain health, as well as ensure product safety.

In �scal 2010, the Toyobo Group fully restructured its chemical substance management system and all its

companies, including Group companies managed by the production line departments of Toyobo’s business

segments. As part of these activities, measures were

implemented to ascertain and reduce the risks of

chemical substances that are used. Rules have been

established related to determining the risk of chemical

substances (including the compilation of data on

substances subject to PRTR and VOCs), the replacement

and reduction of harmful chemical substances in use,

improvements in the workplace and peripheral areas, and

the management of substances containing harmful

chemicals (including green procurement, responding to

green procurement, and the preparation of material

safety data sheets (MSDS)).

Standards forChemical Substance

Management

●Reducing Risks of Chemical Substance UsageIn �scal 2011, a review of risks of chemical substances was conducted, and, for chemical substances with high

risk in usage, measures were implemented to reduce the volume of use and risk of exposure. In addition, a review

is now under way of the rules for the management of chemical substances contained in products (green

procurement, response to green procurement, and the preparation of MSDS).

Activities forManagement of

Chemical Substances

●Introduction of Chemical Management SystemsUnder the chemical restriction regulations of the EU (such as

ELV, RoHS, REACH, etc.), management and supervision are

required along the supply chain. Also, the United Nations

has established its Global Harmonization System (GHS)

regarding the classi�cation of chemical substances and their

labeling. Taking these circumstances into consideration, to

respond accurately and promptly to green procurement

requirements and customers’ requests, Toyobo has

introduced a chemical management system that covers the

stages from procurement to product manufacturing as well

as sales and has begun to implement this system in all its

business departments. In addition, consideration is being

given to applying this system to all Toyobo Group

companies that handle chemical substances.

Notes: 1. ELV and RoHS refer to restrictions on the usage of harmful substances contained in automobile and electric/electronic devices.2. REACH stands for Registration, Evaluation, Authorization, and Restriction of Chemicals and is a new set of restrictions issued by the EU on chemical

substances. Also, risks assessments and registrations are required of manufacturers and others for previously speci�ed substances, and restrictions as well as the need for permits apply for substances that cause serious concerns. Noti�cations are required for products formed from these substances.

Material Flows The following �owchart depicts the impact of the Toyobo Group’s business activities on the natural environment.

EnvironmentalAccounting

As part of environmental preservation, the Toyobo Group releases information on environmental accounting

based on the Environmental Accounting Guidelines issued by Japan’s Ministry of the Environment.

Going forward, the Toyobo Group will continue to work to improve the accuracy and ease of understanding of

its environmental accounting disclosure.

■Chemical Substance Management Organization

■Standards for Chemical Substance Management

Sub-Committee on Chemical Substance Management

Secretariat(Environment and Safety Department,

Quality Assurance Of�ce)

Business Segments EngineeringDepartment

Group companies Business departments

Group companies

Environmentand Safety

departments

Management at the business location level

Manufacturingdepartments

Constructiondepartments

EnvironmentalSafety Of�ce

Developmentdepartments

■Safety Information on Chemical Substances

Information on raw materials/MSDS

Eco-reviews　　　　Product reviews

Greenprocurement

Responding to greenprocurement of business partners

Chemical substances Safe handling

Responding to legal regulations

Suppliers

Toyobo

■Impact in Monetary Units

Type of Improvements Amount(¥ million)

Cost reduction due to energy conservation

Revenue from sales to recycling companies 576

185

164

Product information/MSDS

Customers/Consumers/Government agencies

Management for system for chemicalsubstances contained in products

Underground water: 38,074 thousand m3

River water: 192,751 thousand m3

Public water supply: 1,236m3

Industrial-use water: 1,076m3

Water

Working to reduce emissions due to business activities

OUTPUTWorking to reduce the volume of energy and resource usage

INPUT

Emissions into water areas

CO2: 1,073 thousand tonsOther greenhouse gases: 17 thousand tonsSOx 1.2 thousand tonsNOx 1.1 thousand tonsVOCs: 0.2 thousand ton

Atmospheric emissions

Externally: 53,720 tons

Waste discharged

Chemicals: 640,452 tonsRecycled materials: 10,800 tons

Raw materials

Electric power purchased: 530,480MWCoal: 226,300 tonsFuel oil: 49,609klGas: 25,649 tonsCokes: 36,048klKerosene: 505 tons

Energy

Research anddevelopment Production

Details of the Data Compilation●Scope of the compilation:

Toyobo’s business locations●Period covered:

April 1, 2010 to March 31, 2011●Methods used:

Compiled from data on environment-related capital investment, personnel costs, and other expenses. However, the amount of expenses does not include depreciation.

・Actual impact (economic impact computed based on sound evidence)

■Environmental Preservation Costs

(1) Cost inbusinessareas

Type of Cost

(2) Upstream/downstream costs

(3) Management activity costs

(4) R&D costs

(5) Social activity costs

(6) Environmental damage costs

Sub-totals

Principal ActivitiesLegal compliance, environmental measures in the region, fire/disaster prevention

Energy conservation

Green procurement

340

330

0

0

0

0

520

0

1,190

Amount ofInvestment

360

130

1,850

90

180

20

130

130

2,890

Expenditures

■Impact in Physical Units

Type of PositiveImpact ContentEnvironmental

Impact Indicator

Cost inbusiness area

Energyvolume

Reduction in electric powerusage: 10,428MWReduction in fuel usage: 2,558kl

Type of Inferred Positive Impact Amount(¥ million)

Value-added contribution of R&D

0

2

1,915

・Inferred impact (economic impact based on assumptions)

(¥ million)

Amount of Environment-Related Investment by Purpose(Toyobo Group Companies)

2007 2008 2009 2010(Fiscal years)

0

200

400

600

700(¥ million)

100

300

500

2006

Amount of Environment-Related Investment by Purpose (Toyobo nonconsolidated)

2007 2008 2009 2010(Fiscal years)

0

400

800

1,200

1,600(¥ million)

200

600

1,000

1,400

2006

94

91

193

121

1395158

134

65

143

47

48971

23 193

5

247

■Fire prevention　■Pollution prevention　■Greening, etc., activities　■Energy conservation　■Industrial waste

Internalrecycling

TOYOBO GROUP

Thermal recycling:15,321 tons

Material recycling:883 tons

Intermediate water:84m3

Externalrecycling

Thermal recycling:7,519 tons

Material recycling:36,956 tons

9,245 tons

COD: 1,195 tonsSewage: 1,697 thousand m3

Discharged into rivers: 154,794 thousand m3

Discharged into the ocean: 32,072 thousand m3

External�nal disposal

Land�ll, simpleincinerationOutput of principal products:

482,001 tons(Toyobo (nonconsolidated)

71085132

356

63

183

51172

0 3711442126

413

446

33204

168

336

342

520

334

0

3 3 262809


Management of Chemical Substances“Transforming” for a Better Natural Environment

Environmental Impact of Business Activities“Transforming” for a Better Natural Environment

Rank ManagementClassi�cation Legal Basis and Other Matters

E

D

C

A

B

Other

Measures toprevent exposure

Reduce emissions/strict measures toprevent exposure

Forbidden

Eliminate orreduce

Speci�ed in category No. 1 of the Chemical Screening Law, forbidden or require permission under safety and health laws, speci�ed poisonous substances, speci�ed in ozone layer protection laws, POPS*, PIC*, forbidden in the EU (RoHS, etc.), forbidden under chemical warfare substance laws, etc.

Speci�ed in category No. 2 of the Chemical Screening Law or in category No. 1 for supervision, classi�ed as No. 1 substance under chemical management laws, speci�ed under safety and health laws, poisonous substances, cancer-causing substances (in humans), etc.

Speci�ed as needing management in categories No. 2 or No. 3 of the Chemical Screening Law, classi�ed as a No. 1 substance under chemical management laws, speci�ed under safety and health laws, toxic substance, classi�ed as dangers under �re prevention laws, speci�ed in environmental standards, etc.

Speci�ed as a No. 2 substance under chemical management laws, substances speci�ed in health and safety notices (MSDS), etc.

Other than legal basis, etc. for A to D

*Notes: POPS (treaty agreement) Speci�ed as forbidden or in need of reduction as a polluting organic substance that remains in the environment. PIC (treaty agreement) Speci�ed and noti�ed previously as a harmful substance (trade)

Greening, beautification, protection of nature, donationsSOx-related levies, repairs related to soil pollution, damage to nature, etc.

ISO14001 certifications, environmental education

Resource conservation, waste management

(a) Pollution prevention costs

(b) Regional environmental 　 protection costs

(c) Resource recycling costs

Cost reduction due to materials conservation and reduction in waste

Impact of education and Toyobo Group company supportImpact of support for creating environmental management systems

Development of eco-friendly products

Documents

the Future - Toyobo · 03 TOYOBO GROUP CSR Report 2011 TOYOBO GROUP CSR Report 2011 04 Business Reforms Aimed at Overseas Expansion The Toyobo Group’s basic philosophy is expressed