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Sustainability Report 2017

INDEX
Message from the President...............02
Aiming to Realize KAITEKI..................04
Management Structure.......................08
Responsible Care Activities.................22
Together with Stakeholders................44
About Mitsubishi Chemical.................67

Editorial Policy Referenced Guidelines


N  Ministry of the Environment
Mitsubishi Chemical (MCC) publishes the Sustainability
Environmental Reporting Guidelines 2012
Report with the aim of reporting to stakeholders on its
N Ministry
 of the Environment
initiatives aimed at its vision, realizing KAITEKI.
Environmental Accounting Guidelines 2005
The fiscal 2017 report is organized into three main sec-
tions, “Management Structure,” “Responsible Care
Publication
Published January 2018
Activities” and “Together with Stakeholders,” which detail
Previous issues:
the efforts that comprise the foundation of our activities
Pre-merger Mitsubishi Chemical November 2016
aimed at realizing KAITEKI.
Pre-merger Mitsubishi Plastics September 2016
Pre-merger Mitsubishi Rayon October 2016
About the Sustainability Report * Because the current Mitsubishi Chemical was formed in
To provide information on MCC’s initiatives aimed at April 2017, this is its first Sustainability Report.
enhancing sustainability to as many stakeholders as Next issue: October 2018
possible, we disclose such efforts via our website.
Inquiries
Reporting Period Mitsubishi Chemical Corporation
Fiscal 2016 (April 2016 to March 2017) Corporate Planning Department,
As the current MCC was launched in fiscal 2017, the KAITEKI Promotion Group
reporting in Sustainability Report 2017 focuses mainly on Palace Bldg., 1-1 Marunouchi 1-chome, Chiyoda-ku,
MCC’s policies, internal regulations, operational systems Tokyo 100-8251
and activity plans. However, certain sections of the report,
such as those related to environmental conservation and Disclaimer
collaboration with industry, academic and governmental This report contains not only past and present facts about
partners, cover the fiscal 2016 activities of the former the Mitsubishi Chemical Corporation Group, but also
Mitsubishi Chemical, Mitsubishi Plastics and Mitsubishi forecasts related to social conditions, business plans,
Rayon. The report also covers some social contribution policies and estimates of their outcomes. These forecasts
and other activities undertaken in fiscal 2017. and estimates are assumptions or judgments based on
the information available at the time of their writing. As
Scope of the Report such, actual future social conditions and business activity
The basic scope of reporting encompasses Mitsubishi outcomes may differ from the forecasts and estimates
Chemical Corporation on a non-consolidated basis. presented in this report.
However, certain sections contain reporting on a consoli-
dated basis that encompasses Group companies. The
scope of reporting, whether non-consolidated or consoli-
dated, is indicated in each instance.

Mitsubishi Chemical Sustainability Report 2017 01 


Message from the President

In April 2017, the former Mitsubishi


Chemical, Mitsubishi Plastics
and Mitsubishi Rayon merged to
form the new Mitsubishi Chemical
Corporation (MCC). As a core
operating company of the
Mitsubishi Chemical Holdings
Group, MCC seeks to provide
solutions to environmental and
1
social issues and realize KAITEKI.

Hitoshi Ochi
President & CEO

Growing Volatility in the Operating Environment


Numerous global-scale risks have materialized in recent years: climate change is worsening, extreme weather
events are occurring more frequently, water resources are increasingly unevenly distributed, and populations
around the world are expanding and graying. These and other issues pose many crucial but as-yet unsolved
challenges and have brought the issue of sustainability to a head. At the same time, science and technol-
ogy—including information and communications technologies, IoT-related technologies, artificial intelligence,
robotics, and biotechnologies—are evolving at an unprecedented pace, driving irreversible changes in society,
markets and our ways of being in the world. Our ways of living, our communities and the global environment
are approaching a major turning point.

Alongside these changes, the operating environment is transforming. We can no longer expect steady eco-
nomic growth; as the pace of external change increases, numerous factors are interacting in complex ways,
making the operating outlook less certain and more volatile.

Our Vision—Realizing KAITEKI


Under these circumstances, management focused solely on enhancing capital efficiency will no longer be
enough to ensure sustainable corporate growth. Companies will need management built on unshakable values
that pursues greater corporate value in both financial and non-financial terms.

The enhancement of financial value through business activities is necessary to corporate survival and sustainable
growth. Also crucial, however, are activities that support non-financial value, such as those aimed at spurring
innovation, contributing to sustainability, ensuring safety, security and stability, maintaining thoroughgoing compli-
ance, and enhancing health and comfort. Non-financial value helps us maintain and enhance the trust of stake-
holders while guiding our way forward in an uncertain operating environment and helping us see opportunities in
change. If we are to ensure sustainable corporate growth, we cannot divide our efforts between creating these
two forms of value; we must forcefully advance a virtuous cycle in which we create non-financial value through
our businesses and reinforce said businesses by clearly declaring our approach to non-financial value.

Our KAITEKI Management is based on this approach. With our vision defined as realizing KAITEKI, we are
implementing management that simultaneously improves capital efficiency, fosters innovation and enhances
social value through advances in sustainability, always informed by an awareness of shifting trends and oppor-
tunities. By doing so, we are not only providing solutions to environmental and social problems, but broadly
contributing to the sustainable development of people, society and the Earth.

02 Mitsubishi Chemical Sustainability Report 2017


Fiscal 2017 Initiatives
In fiscal 2017, our first year as the new MCC, we are implementing two major initiatives aimed at realizing
KAITEKI.

The first initiative is health and productivity management. With the dual focus of health support and workstyle
reforms, this initiative aims to maximize the performance of one of the greatest assets of any company—the
people who work there—from the perspective of health. On the health support side, we are encouraging
employees to change both their mindsets and behavior to ensure physical and mental health. Workstyle
reforms, meanwhile, are aimed at achieving radical innovations at the workplace level under the leadership of
on-site managers to free up time that can be used to improve work-life balance or for value-creating work.

The second initiative is UP!20, a company-wide productivity improvement initiative aimed at ensuring efficient
operations. This initiative combines the company-wide initiatives previously undertaken by the three pre-
merger operating companies. All employees are working to identify how their work specifically contributes to
ROIC,2 each division has adopted indicators relevant to its own operations, and each workplace is striving to
achieve the initiative’s goals. Furthermore, we are reexamining work processes at all levels to eliminate waste,
improve efficiency and accelerate innovation. These initiatives are being implemented on a company-wide
basis, with every employee participating.

Health management and UP!20 are not independent of one another. Rather, we are undertaking an organically
integrated implementation, mainly in the area of workstyle reforms, aimed at energizing employees and the
organizations they belong to, improving productivity and spurring innovation. These efforts truly embody
KAITEKI Management, which is focused on the integrated enhancement of financial and non-financial value.

To Our Stakeholders
Harmonious relationships with our stakeholders are indispensible to our vision of realizing KAITEKI—achieving
the sustainable development of people, society and the Earth. As we advance our corporate activities, we will
continue to share our goals and the challenges we face with stakeholders through dialogue and disclosure.
We ask for your continued understanding and support as we move forward under the banner of the new
Mitsubishi Chemical.
1 KAITEKI: An original concept espoused by the MCHC Group defined as “a sustainable condition which is comfortable for people, society
and the Earth, transcending time and generations.”
2 ROIC: Return on invested capital, a management efficiency indicator calculated as core operating income before taxes divided by the sum
of fixed assets and net working capital.

Mitsubishi Chemical Sustainability Report 2017 03 


Aiming to Realize KAITEKI

As a core operating company of the Mitsubishi Chemical Holdings (MCHC) Group, Mitsubishi Chemical (MCC)
shares the MCHC Group’s philosophy, vision and motto, working to realize KAITEKI by providing solutions to
environmental and social issues and contributing to the sustainable development of people, society and the
Earth.

What is KAITEKI ?
Humanity has advanced to where it is today as a result of diverse economic activities as well as scientific and
technological progress. At the same time, however, we have upset the natural balance of the global environ-
ment and are now confronted with complex problems ranging from climate change and natural resource and
energy depletion to the uneven distribution of food and water. In addition to addressing these global issues,
corporations are being asked by society to contribute to the fields of healthcare and medicine and to explore
ways to improve convenience and advance technology while coexisting harmoniously with the planet.

KAITEKI refers to “a sustainable condition which is comfortable for people, society and the Earth, transcend-
ing time and generations.” An original concept coined by the MCHC Group, KAITEKI points to a way forward
in the sustainable development of society and the planet in addition to serving as a guide for solving environ-
mental and social issues.

MCC shares the vision of realizing KAITEKI with MCHC and, building on a foundation of chemistry, provides
solutions to environmental and social issues through businesses related to performance products and indus-
trial materials. In addition, MCC aims to more broadly contribute to the sustainable development of people,
society and the Earth.

To advance corporate activities under the vision of realizing KAITEKI, we must earn the trust of stakeholders,
and to do that, we must work in harmony with our stakeholders. As we advance our corporate activities, we
will invite our stakeholders to share in our goals and the challenges we face through dialogue and disclosure.

Vision Realizing KAITEKI

Envir
onme g
nt Electronics & Livin
Energy Health & Information
Medical Care Technology

Business
Domains

Decision Criteria
for Corporate Sustainability Health Comfort
Activities

Group Philosophy

Management of Sustainability (MOS)


The value create
MOS Axis

Contributing to the resolution of a


variety of environmental and social
04 Mitsubishi Chemical Sustainability Reportissues
2017through corporate activities
that consider the future of people,
society, and the Earth
KAITEKI Management
The word chemistry is used to refer to, of course, the science, but also to the compatibilities, relationships and
connections between objects, between people or between people and objects. The MCHC Group includes
these meanings in the Group philosophy of Good Chemistry for Tomorrow, and working to realize KAITEKI
Vision Realizing
promotes corporate activities that create better KAITEKI
relationships among people, society and our planet. Based on
this philosophy, the MCHC Group asks, “What is the Good Chemistry that the future requires?” The answer
that it has come to is Sustainability, Health and Comfort. The MCHC Group has therefore established
Sustainability, Health and
Env Comfort as three decision criteria for corporate activities.
ironm g
ent Electronics & Livin
Energy Health & Information
In line with KAITEKI, the MCHC Group seeks to advance corporate Te
Medical Care activities
chno log y aimed at solving
environmental
and social problems. To do so, however, conventional value criteria and management methods are not
sufficient.
Business
We have thereforeDomains
created our own management method, which we named KAITEKI Management, and put it
into practice. This method is based on three management axes: Management of Economics, which aims to
increase economic value by focusing on capital efficiency, Management of Technology, which aims to foster
innovation that leads to higher economic and social value, and Management of Sustainability, which aims to
enhance social Decision
value through
Criteria improvements in sustainability. The MCHC Group evaluates and implements
for Corporate
corporate activities based on these axes, Sustainability Health
the Group Philosophy Comfort
and the abovementioned three decision-
Activities
making criteria for corporate activities, always informed by an awareness of shifting trends and opportunities.
We refer to the corporate value constituted by these three axes as KAITEKI Value. By enhancing said value, we
Group Philosophy
get closer to realizing KAITEKI while improving the Group’s sustainability. As an operating company, Mitsubishi
Chemical also practices KAITEKI Management, implementing PDCA cycles using quantitative scoring on each
of the three axes as it strives to increase corporate value, i.e., KAITEKI Value.

Management of Sustainability (MOS)


The value created from MOS
MOS Axis

Contributing to the resolution of a


variety of environmental and social
issues through corporate activities
that consider the future of people,
society, and the Earth
Century Time
Taking into consideration
signs of the times

MOT Axis
Management of Economics (MOE)
The value created from MOT
OE

Decade
M
m
fro

various forms of capital, including


is

Management of Technology (MOT)


ed
Ax

human resources, assets and funds


at
OE

re
ec
M
alu
ev

Quarter Creating innovative products and


Th

of technology that we possess

The Mitsubishi Chemical Holdings Group’s KAITEKI Management

Mitsubishi Chemical Sustainability Report 2017 05 


Aiming to Realize KAITEKI

Materiality Assessment

Mitsubishi Chemical Holdings (MCHC) conducts materiality assessments to identify important management
issues (materiality) and further enhance KAITEKI Value. While referring to processes outlined in international
sustainability guidelines and incorporating the viewpoints of stakeholders, MCHC identifies and prioritizes
important management issues that it needs to work toward resolving to realize KAITEKI. MCHC has reviewed
its materiality assessments in light of the management strategies and corporate activities for APTSIS 20, the
medium-term management plan that ends in fiscal 2020. Mitsubishi Chemical, too, is implementing activities
based on the results of the MCHC Group’s materiality assessments.

Materiality Matrix
Key management issues that the MCHC Group should
PROCESS 1
Key Issues Related to address through its corporate activities, innovation, and
the Global Environment provision of products and services in the aim of achieving
Set issues to be comfort for the Earth.
researched and analyzed
As a starting point, ordered corporate Key management issues that the MCHC Group should
activities under APTSIS 20 by analyzing Key Issues Related to address through its corporate activities, innovation, and
macro trends. Reviewed material Social Systems provision of products and services in the aim of creating
issues identified in the previous a more comfortable society.
assessment and added new issues.
Key Issues Related to Key management issues that the MCHC Group should
the Company and Its address in its internal operations and external relations
Organizational Structure as a corporate group aiming to realize KAITEKI.
PROCESS 2
Assess issues from the
viewpoint of stakeholders Most Important Key Management Issues Compliance, Process Safety,
Ordered and quantitatively assessed Related to the MCHC Group’s Existence: Corporate Governance
the importance of the issues
based on public sustainability data,
questionnaires, and interviews with Energy
Extremely High

experts. and resources

Water Climate change

PROCESS 3 Food Human development


and agriculture and training
Identify and prioritize
Diversity Occupational health
material management and inclusion and safety
issues the MCHC Group
needs to address Product
responsibility
MCHC management identified material
issues accounting for management
strategies, policies and activities under
Importance for Stakeholders

APTSIS 20 and prioritized them (three


issues of highest priority related to Health and wellness
the MCHC Group’s existence and 21
materiality issues to be addressed). Medical care
Very High

CSR in Contribution to
supply chain communities Human rights
awareness
PROCESS 4 Information security
and privacy
Create
the materiality matrix
Created the matrix along the two axes
of importance (the magnitude of effect)
for stakeholders and importance for
the MCHC Group. Biodiversity

Smart society Fulfilled living


Social
PROCESS 5 infrastructure Stakeholder Initiative
engagement
Company approval and leadership
procedures Information and
Discussed and approved the process
communication
High

technology
of materiality assessment and the
materiality matrix in the MCHC
Management Committee and the Board
High Very High Extremely High
of Directors.
Importance for the MCHC Group

06 Mitsubishi Chemical Sustainability Report 2017


MOS Indices

As part of its efforts to promote KAITEKI Management, Mitsubishi Chemical Holdings (MCHC) has created the
MOS (Management of Sustainability) Indices to gauge its contribution to people, society and the Earth. MCHC
uses these indices to evaluate progress made with regard to MOS, one of its management axes, which aims
to enhance social value through improvements in sustainability. The MCHC Group has revised the MOS
Indices and the ways it is using them in line with updates to its materiality assessments and the formulation of
the medium-term management plan. The Group has been applying the new MOS Indices since fiscal 2016.

As an operating company, Mitsubishi Chemical also implements and evaluates management aimed at improv-
ing sustainability based on the new MOS Indices.

Achieve zero occurrences of serious accidents and


Index that needs to be achieved
compliance violations
Contribute to reducing environ- S-1-1 Reduce burden on the atmospheric environment
mental impact
S-1-2 Reduce burden on the water environment
S-1-3 Reduce burden on the soil environment
Efficient use of resources and S-2-1 Promote activities to conserve energy
energy
S-2-2 Convert to resource-saving and reusable materials
S Index S-2-3 Promote use of renewable energy
Contribute to the sustainability S-3-1 Provide products and services that contribute to
of the environment and reducing GHG emissions
resources through products
S-3-2 Provide products and services that help solve water
and services
resource problems
S-3-3 Provide products and services that help solve food
problems
Contribute to medical H-1-1 Pharmaceuticals provision
treatment
H-1-2 Provide clinical testing services
Contribute to the prevention H-2-1 Provide vaccines
and early detection of diseases
H-2-2 Provide health management and health checkup
H Index
information
Contribute to achieving healthy H-3-1 Provide products for the health field
and hygienic lives through
products and services H-3-2 Provide products for the sanitation field
H-3-3 Provide products for the medical field
Endeavor to earn greater C-1-1 Improve awareness of compliance
recognition of corporate trust
from society C-1-2 Prevent accidents and injuries
C-1-3 Initiatives to provide products and services trusted
by society
Promote communication and C-2-1 Promote communication with business partners
C Index
work in concert with
stakeholders C-2-2 Improve evaluation by stakeholders
C-2-3 Build a dynamic and cooperative organization
Contribute to achieving a more C-3-1 Provide products and services that contribute to
comfortable society and better a comfortable society and better lifestyles
lifestyle

Mitsubishi Chemical Sustainability Report 2017 07 


Management Structure

Basic Policy

As a member of the Mitsubishi Chemical Holdings (MCHC) Group, the Mitsubishi Chemical (MCC) Group
abides by MCHC’s basic Group management guidelines and shares specific Group management policies and
strategy determined by MCHC. The MCC Group also adheres to MCHC Group policies and rules to ensure
that it fulfills its corporate social responsibility in areas such as internal controls, risk management and compli-
ance (with laws and corporate ethics) and actively implements management initiatives to enhance corporate
value as a core operating company of the MCHC Group.

08 Mitsubishi Chemical Sustainability Report 2017


Basic Regulations

The Mitsubishi Chemical Group strives to ensure compliance based on the Mitsubishi Chemical Holdings
Group Charter of Corporate Behavior, a common set of compliance regulations shared throughout the Group.

Mitsubishi Chemical Holdings Group Charter of Corporate Behavior


Based on our Group philosophy, “Good Chemistry for Tomorrow—Creating better relationships among peo-
ple, society, and our planet,” we shall contribute to the realization of KAITEKI through our corporate activities.
The term KAITEKI signifies achieving true sustainability where we create comfort for people as well as for
society and the Earth.

To this end, we shall act based on the concept of MOS (Management of Sustainability) with sound ethics and
good common sense in every aspect of our corporate activities as outlined below, to ensure sustained devel-
opment as a corporate group that engenders society’s trust.

  Awareness and Responsibility


We shall contribute to the realization of KAITEKI through our business with a keen sense of corporate social
responsibility, based on the fundamental understanding that the foundation of our corporate activities is
society’s trust and confidence in us.

  Accountability and Transparency


We shall, recognizing the importance of accountability in corporate activities, preserve transparency in such
activities, disclose information appropriately, and always maintain a stance of openness, both internally and
externally.

  Legal Compliance and Fairness, Equitability, and Integrity


We shall comply with laws and international standards and shall hold ourselves to the highest ethical conduct
at all times. In addition, we shall always adopt an attitude of fairness, equitability, and integrity towards cus-
tomers, business partners, shareholders, government agencies, local communities, and other stakeholders.
This attitude shall also apply to our dealings with each other.

  Valuing Stakeholders
We shall respect and communicate closely with all stakeholders including customers, suppliers, shareholders,
business partners, government agencies, local communities, and employees, and consider the outcomes of
such communication in our corporate activities.

  Respecting Human Rights


We shall respect the dignity and rights of all people and shall not discriminate against people unfairly on the
basis of race, sex, religion or other protected status. We shall also expect our suppliers and other contractors
to refrain from any infringement of human dignity and rights or discriminatory practices.

Mitsubishi Chemical Sustainability Report 2017 09 


Management Structure

Basic Regulations

  Employment and Labor


We shall not engage in any form of forced, compulsory, or child labor, and shall require our suppliers and other
contractors to adhere to the same standards. Mitsubishi Chemical Holdings Group managers at all levels shall
respect human diversity and create working environments where employees can exercise their abilities to the
utmost in safe and healthy settings, in order to make optimal use of human resources. Managers shall build
sound relations with employees through close dialogue, and shall respect employees’ rights, including free-
dom of association and the right to collective bargaining.

  Environment and Safety


We shall strive to reduce environmental impact and protect the environment and ecosystems in our operations
in addition to supplying environmentally friendly products and services. Recognizing that the health and safety
of our employees and communities in which we do business form the foundation for the very existence of our
company and that we have a corporate social responsibility to assure the health and safety of others, we shall
continue to ensure safe business activities.

  Fair Business Practices


We shall conduct business fairly and sincerely, adhering to ethical principles and refraining from unfair trade
practices and any form of bribery or corruption, to contribute to sound social and economic development
through fair competition in the market. We shall refuse to work with any group, organization or individual
engaged in unlawful activities, and under no circumstances shall we have any relations with anti-social
influences.

  Customer Satisfaction
We shall constantly strive to satisfy our customers by keeping the promises made in contracts with them,
doing our utmost to ensure the safety and quality of the products and services we supply, and engaging in
dialogue and R&D.

  Information Management
We shall, in the course of our corporate activities, maintain appropriate records and make reports as required
by law and regulation. We shall manage information carefully to prevent leakage of confidential data relating to
customers, business partners, or our own business.

  Science and Technology


We shall advance R&D by bringing together outstanding researchers from Japan and overseas, and contrib-
ute to the realization of KAITEKI through innovation. We shall recognize the importance of our own and others’
intellectual property rights and respect such rights.

  Community Involvement
We shall contribute broadly to society through our businesses. In addition, we shall respond to the desires
and expectations of local communities by enhancing our understanding of their cultures and customs and
acting as a good corporate citizen.

  Shared Standards
Mitsubishi Chemical Holdings Group managers shall recognize their responsibility to embody the spirit of this
charter and shall ensure that employees are fully aware of its content. We shall expect our suppliers and other
business partners to share all the standards set out in this charter, including but not limited to standards
relating to human rights, employment, and labor.

10 Mitsubishi Chemical Sustainability Report 2017


Corporate Governance

The top priorities for corporate governance of the Mitsubishi Chemical (MCC) Group are to ensure fast and
efficient decision making and business execution, clarify management responsibilities, ensure compliance and
strengthen risk management.

The MCC Group’s basic corporate governance structure is illustrated below. The company has adopted an
executive officer system to separate management and executive functions. Furthermore, MCC has defined
the extent of the authority of such decision-making bodies as the Board of Directors and various management
positions in its internal rules. Through these and other measures, MCC ensures proper, efficient managerial
decision making and business execution.

Corporate Governance Structure of the Mitsubishi Chemical Group (as of June 26, 2017)
Shareholders’ Meeting
Appointment Appointment Appointment

Audit
Board of Directors
Corporate auditors Audit
Accounting auditor (Members of the board)
Accounting
Accounting audit
audit Appointment & supervision

Auditing
Audit
assistance

President Chief risk management officer


Chief compliance
Audit assistants officer
Executive Management Committee

Internal audit units Executive officers

Coordination
Internal auditing

Retain information Ensure efficiency Ensure appropriateness


Promote and
about execution of execution of corporate group Manage risk
of duties of duties operations ensure compliance

Investigation
Mitsubishi Chemical Group

Board of Directors
The Board of Directors meets once a month in principle. In accordance with the regulations of the Board of
Directors and other relevant rules, the board makes decisions on important managerial matters and basic
matters concerning Group management and provides oversight of the execution of duties by directors. The
five directors (four of whom concurrently serve as executive officers) form a management structure capable of
quickly adapting to environmental changes. To further clarify the managerial responsibilities and role of each
director, the term of office for a director is one year. Human resources judged to possess the necessary skills
and qualities to realize the Group’s corporate philosophy are selected as candidates for director by the Board
of Directors. Candidates are then proposed at the Shareholders’ Meeting, where they may be elected by a
resolution of shareholders.

Mitsubishi Chemical Sustainability Report 2017 11 


Management Structure

Corporate Governance

Executive Management Committee


The Executive Management Committee is an advisory body that assists the President in making decisions,
deliberating important matters concerning business execution, such as the investment and financing activities
of MCC and the MCC Group. Particularly important managerial matters deliberated by the Executive
Management Committee are acted on only upon the resolution of the Board of Directors. The Executive
Management Committee meets twice a month in principle. The committee comprises the President, the chief
operating officers of the business domains, the supervising officers of the corporate function domains, the
presidents of the regional headquarters and the general manager of the Corporate Planning Department. The
directors of the board and corporate auditors may also attend its meetings as needed.

Corporate Auditors
MCC has corporate auditors to audit and supervise its activities. The corporate auditors attend Board of
Directors, various committee and other important meetings, verify the contents of reports submitted by direc-
tors of the board and other relevant parties, investigate the status of the company’s business and property,
and audit the execution of duties by directors of the board. MCC does not have a Board of Corporate
Auditors, but maintains a Corporate Auditors Liaison Committee, meetings of which are attended on a volun-
tary basis, to facilitate coordination and cooperation among the corporate auditors. The Corporate Auditors
Liaison Committee meets once a month in principle. At meetings, the corporate auditors discuss audit plans
and other important audit-related matters. As of the end of June 2017, MCC has five corporate auditors.
Corporate auditors, the accounting auditor and the Internal Audit Department work in close coordination,
exchanging opinions on their respective audit processes and results.

Committees
The company maintains a number of committees, including the Compliance Promotion Committee, Risk
Management Committee, Information Security Committee, Environmental and Safety Promotion Committee, and
Human Rights and Diversity Promotion Committee. These committees refer or report important matters to the
Board of Directors or the Executive Management Committee.

12 Mitsubishi Chemical Sustainability Report 2017


Internal Controls

Basic Policy
Based on the Basic Internal Control System Maintenance Policy established by the Board of Directors,
Mitsubishi Chemical (MCC) maintains an internal control system that encompasses MCC Group systems
related to enforcing compliance, risk management, ensuring efficacy and efficiency, and information archiving.
By doing so, MCC strives to ensure appropriate operations and enhance corporate value. The Board of
Directors receives reports on and verifies the maintenance and operational status of the internal control sys-
tem once a year, and MCC works to strengthen and improve the system as needed.

Improving Our Internal Control Systems


Based on the Mitsubishi Chemical Group Regulations on Promoting the Improvement of the Internal Control
System, established July 1, 2017, MCC is reinforcing governance, ensuring proper operations, and establish-
ing and improving related processes and operations to enhance the efficacy and efficiency of such initiatives.
Together, these efforts constitute the foundation of internal control at MCC Group companies.

Mitsubishi Chemical Sustainability Report 2017 13 


Management Structure

Compliance

The Mitsubishi Chemical (MCC) Group regards compliance as a top priority in its corporate activities. The
MCC Group has in place a Compliance Promotion Program that comprises basic regulations concerning
compliance, a structure for compliance promotion, education and training programs, auditing and monitoring
systems, and a consultation and reporting hotline. Based on this program, the MCC Group works to ensure
appropriate and precise operations and management.

Compliance Promotion Structure and the CCO


The Board of Directors appoints the Mitsubishi Chemical Group’s chief compliance officer (CCO).

The CCO has the authority to direct and supervise the MCC business domains and Group companies in
matters related to compliance. The CCO also chairs the Compliance Promotion Committee and reports to the
Board of Directors and CCO of the Mitsubishi Chemical Holdings (MCHC) on the status of compliance and
important issues.

The Compliance Promotion Committee deliberates on such matters as basic policy concerning the develop-
ment and operation of the MCC Group's Compliance Promotion Program, the performance of the program
and responses to compliance violations. The committee also makes proposals to the CCO as necessary.

Furthermore, our designated domain compliance officers, compliance promotion leaders and compliance
promotors in each domain coordinate to promote compliance in the course of daily operations.

Compliance Promotion Structure of the Mitsubishi Chemical Group

MCHC Board of Directors Board of Directors Corporate auditors


Appointment & Reporting Appointment
supervision
Guidance & Instruction & supervision
MCHC requests Chief
Chief Compliance compliance officer Reporting
Officer Reporting (CCO) Business domains
(CCO) Domain
Advising Presiding compliance
Reporting Instruction &
Reporting Guidance
officer supervision
Compliance Promotion
Instruction & Reporting
Committee supervision
Chair: CCO; Secretariat: Compliance
Internal Control Dept. Group
promotion
companies
leader
Establishment Guidance & Instruction &
(as needed) Presiding Attendance Reporting support Reporting supervision

Subsidiaries
Compliance
MCC Group of Group
Working groups, promotor
Compliance companies
subcommittees, etc.
Liaison Council

Compliance Regulations
The MCC Group maintains and operates according to internal compliance-related regulations, including
regulations concerning the compliance promotion structure, hotlines and responses to compliance violations.

Educational, Training, and Awareness-Raising Activities


MCC conducts a variety of educational, training and awareness-raising activities in Japan and overseas on an
ongoing basis in order to further instill compliance awareness.

In fiscal 2017, in Japan, we are implementing group training for compliance promotion leaders and compli-
ance promotors, including those at Group companies. In addition to lectures, such training incorporates
role-playing using highly realistic case studies prepared in-house in order to help participants gain a first-hand
understanding of the importance of compliance and the difficulty of making decisions when confronted with
such situations. We also provide e-learning for all members of the Group, seeking to enhance each and every

14 Mitsubishi Chemical Sustainability Report 2017


employee’s compliance awareness. Furthermore, we are increasing awareness and knowledge of such impor-
tant compliance risks as bribery, the Anti-Monopoly Act and information security through such means as
holding risk confirmation interviews with sales employees and targeted email attack response drills.

Overseas, in the Americas, Europe and China, such activities are entrusted to MCC’s regional headquarters,1
which carry out training and awareness-raising tailored to the circumstances of each region. We are also
bolstering initiatives in other regions (Taiwan, Singapore, Thailand, Indonesia, India and South Korea) through
such means as local training and e-learning.
1 The following four companies, established to accelerate Mitsubishi Chemical’s overseas business development by supporting business and
revenue growth in their respective regions.
• Mitsubishi Chemical America, Inc. • Mitsubishi Chemical Europe GmbH
• Mitsubishi Chemical (China) Co., Ltd. • Mitsubishi Chemical Asia Pacific Pte Ltd.

Fair Business Practices


  Mitsubishi Chemical Holdings Group Global Anti-Bribery Policy
MCHC has established the Mitsubishi Chemical Holdings Group Global Anti-Bribery Policy, aiming to prevent
bribery on the part of its operating companies and executives and thus ensure compliance with anti-bribery
laws and regulations in all the countries where it operates, prevent corruption, and help establish and maintain
fair business practices.

The policy prohibits bribes to public officials and includes provisions concerning accounting records, compli-
ance structures and penalties for violations.

Monitoring and Reporting Systems


  Compliance Hotline
The MCC Group has established a hotline through which employees can contact the Internal Control
Department, an external lawyer or a hotline service company to seek advice or report possible compliance
violations. The Group strives to ensure that the hotline is operated properly and employees are aware of it.

  Global Compliance Perception Surveys


The MCC Group uses employee perception surveys to monitor the degree of compliance awareness among
employees of Group companies in and outside Japan. Survey results are analyzed in detail and used to
provide feedback to related officers. Challenges and problems identified as a result of said analysis are
reflected in compliance-related measures and training.

  Response to Compliance Violations


In the event of a compliance violation, the domain compliance officer and the departments overseeing compli-
ance work together to make an appropriate initial response that rectifies or otherwise deals with the situation.
They then investigate the cause of the violation and implement recurrence countermeasures. Any employee
who has committed a compliance violation is dealt with as necessary, possibly with disciplinary action, in
accordance with the Employee Work Regulations or other relevant regulations of the Group company to which
the employee belongs.

Mitsubishi Chemical Sustainability Report 2017 15 


Management Structure

Risk Management

The Mitsubishi Chemical (MCC) Group has established basic regulations for risk management and implements
risk management activities related to the execution of its businesses and operations. Specifically, the Group’s
policy is to accurately identify and evaluate risks that could significantly impact the Group, deal with such risks
appropriately, and minimize the impact of such risks on its businesses and society, including shareholders.

Risk Management Structure and Regulations


The MCC Group has set up a Group-wide risk management system headed by the MCC President, who
serves as the Group’s Chief Risk Management Officer. The MCC Group strives to ensure that this system
operates appropriately and smoothly.

The supervising officers of each business domain and corporate function domain serve as domain risk man-
agement officers charged with maintaining, operating, directing and overseeing the risk management systems
within their respective units, including those of MCC Group companies. Meanwhile, the Risk Management
Committee, established to support the Chief Risk Management Officer as a supplementary decision-making
organ, regularly confirms the operational status of the MCC Group’s risk management system and deliberates
on important matters related to the development and operation of said system, basic policy and plans regard-
ing risk management activities, and management objectives and countermeasures related to serious risks.

The Risk Management Committee regularly reports to the MCC Board of Directors and the Mitsubishi
Chemical Holdings Corporation Chief Risk Management Officer regarding the operational status of the risk
management system.

Risk Management Structure of the Mitsubishi Chemical Group

Mitsubishi Chemical Holdings Corporation


Chief Risk Management Officer

Board of Directors

Risk Management Committee


Chairperson
(Chief Risk Management Officer)

Vice-chairperson

Secretariat

Domain risk management Domain risk management Domain risk management


officer officer officer

Risk management Risk management Risk management


promoter promoter promoter

Business Group Departments Group Site


Departments companies companies Site
Site

16 Mitsubishi Chemical Sustainability Report 2017


Action Plan
In fiscal 2017, in addition to the risks individually identified and addressed by each department, management
has designated the following risks to be dealt with on a company-wide basis. Each of these risks has been
assigned to a department and is being examined.

(1) Process safety and stable operations


(2) Compliance promotion
(3) Governance and global management
(4) Crisis management and business continuity
(5) Information security
(6) Management of working hours
(7) Climate change issues

Business Continuity Plans


MCC formulates business continuity plans (BCPs) to minimize the impact suffered by its customers and
business partners in the unlikely event of a natural disaster or a major accident.

Specifically, we are creating manuals for responding to such crises as a major earthquake in the Nankai
Trough or a pandemic. While giving greatest priority to assuring the safety of human life, including the lives of
employees, their families, business partners and local residents, these manuals lay out how to maintain or
quickly resume the supply of key products essential to society and thus fulfill our product supply obligations to
our customers. In addition, we are making arrangements to ensure that operations important to the whole
Group can be continued elsewhere should the head office be incapacitated by a major earthquake striking the
Tokyo metropolitan area.

Mitsubishi Chemical Sustainability Report 2017 17 


Management Structure

Intellectual Property Strategy

With socioeconomic globalization advancing and markets growing larger and more complex, the Mitsubishi
Chemical Holdings (MCHC) Group believes that it is essential to expand and strategically utilize the value of its
patents, expertise, trademarks and other accumulated intellectual capital in order to realize synergies between
its operating companies and achieve further growth.

In line with this conviction, Mitsubishi Chemical (MCC) formulates and executes its intellectual property strat-
egy with a focus on the type of intellectual property environment it seeks to create and the nature of the
technologies and other intellectual property that each of its businesses creates and utilizes. Alongside these
efforts, MCC works to reinforce the legal protections and improve the effectiveness of its intellectual property.
Accordingly, the company endeavors to respect the valid intellectual property rights of other parties and takes
appropriate measures when its own intellectual property rights are infringed upon.

Furthermore, aiming to expand the operating revenue of the MCHC Group as a whole, we actively promote
coordination between operating companies in the area of intellectual property. By sharing intellectual property,
we aim to enhance the MCHC Group’s overall competitiveness and R&D productivity. At the same time, we
work with third parties to employ the intellectual property of the operating companies in mutually complemen-
tary ways. By doing so, the entire MCHC Group works as one to maintain the value of its intellectual property
and exercise and protect its rights.

In-House Intellectual Property Training


MCC’s business departments, R&D departments and Intellectual Property Department work together to
implement in-house training aimed at developing strategic intellectual property activities. We strive to imple-
ment practical education for business and R&D departments that goes beyond just legal knowledge.

Intellectual Property Department Human Resource Development


MCC believes that its Intellectual Property Department should be staffed by human resources who can lever-
age their intellectual property expertise and advance intellectual property activities that contribute to operating
revenue alongside business and R&D departments. Accordingly, we are developing such human resources.
We have divided the abilities required of such personnel into the categories of practical work execution,
planning/strategy and organizational management. We are working to strengthen these abilities through a
human resource development program that includes an overseas training system.

  Code of Research Conduct


MCC has established the Code of Research Conduct to ensure that its researchers’ conduct, in all
R&D activities, is always exemplary.

To ensure that research is carried out responsibly, the Code of Research Conduct includes provisions
regarding the proposal of research topics and execution of related research, data management, the
presentation of results, communication between researchers and procedures for addressing compli-
ance problems.

MCC utilizes a variety of opportunities to implement and reinforce education related to the Mitsubishi
Chemical Holdings Group Charter of Corporate Behavior, MCHC’s basic regulations concerning com-
pliance, and the Code of Research Conduct to ensure that researchers act with an awareness of such
rules as they carry out their duties.

Reflecting these efforts, MCC’s researchers bring a strong sense of ethics, sincerity and humility to
their R&D work, seeking to live up to the trust and expectations of society by respecting both our own
intellectual property and that of other parties while contributing to the growth and development of the
MCHC Group as a whole on an ongoing basis.

18 Mitsubishi Chemical Sustainability Report 2017


Information Security

Basic Policy
The Mitsubishi Chemical (MCC) Group undertakes information management in line with the Mitsubishi
Chemical Group Information Security Policy. Under this policy, the MCC Group strives to protect its informa-
tion assets and, in the event of an information security incident, acts to minimize the impact on its businesses
and quickly resume any interrupted operations. Furthermore, the MCC Group works to raise employee aware-
ness of the importance of protecting information assets while striving to maintain and improve the efficacy of
its information security as part of efforts to prevent business interruptions and the loss of society’s trust due to
such problems as information leaks or falsification.

Main Activities
The MCC Group maintains, manages and works to enhance information security on a Group-wide basis
under the leadership of the Information Security Committee, established per the Mitsubishi Chemical Group
Information Security Policy.

In addition, to counter increasingly sophisticated cyber attacks, the Mitsubishi Chemical Holdings Group
Information System Security Subcommittee enforces a PDCA cycle for the entire Mitsubishi Chemical
Holdings Group, working to maintain and strengthen information security.

Defensive Measures Against Threats to Computer Networks


The MCC Group has both technological and management measures in place to ensure network security.
Technological measures include entrance safeguards, such as e-mail filters, as well as exit safeguards, such
as systems that block access from within the network to websites that present security risks. In terms of
management measures, the Group regularly urges caution against suspicious e-mails and conducts training
drills.

Measures to Prevent Leaks of Personal Information and


the Confidential Information of Customers and Third Parties
MCC has established its own Rules on Handling Personal Information and strives to ensure strict compliance
with the Act on Protection of Personal Information, the Act on the Use of Numbers to Identify a Specific
Individual in Administrative Procedures and other relevant laws, regulations and guidelines.

As part of measures to prevent information leaks, MCC is taking such steps as strengthening the manage-
ment of electromagnetic recording media and restricting access to the Internet.

Internal Education and Training


The MCC Group regularly conducts awareness-raising and training events for employees to promote strict
information management. Moreover, information security training via e-learning is implemented every year, and
information security training education is built into in the employee training curriculum.

Mitsubishi Chemical Sustainability Report 2017 19 


Management Structure

Security Export Control

Basic Policy
Amid rising international tensions that reflect such factors as armed conflicts, military provocations and fre-
quent terrorist attacks around the world, security export control initiatives are growing more important than
ever.

Mitsubishi Chemical (MCC) produces and possesses numerous products and technologies that can be used
for both civilian and military applications (“dual-use” goods), such as carbon fiber. Appropriate security export
control compliant with the Foreign Exchange and Foreign Trade Law and other relevant laws is necessary to
prevent MCC’s broad-ranging products and technologies from reaching countries under export bans, coun-
tries of concern, terrorist organizations or other improper destinations or recipients.

Security Export Control System


Upon its launch in April 2017, the new MCC established both internal Security Export Control Rules and an
export control system. The chief executive of this system is MCC’s president and chief executive officer, under
whom are the supervisor of security export control, the Export Control Department and the chief export
control officers of exporting departments. Through this system, we work to prevent improper exports, includ-
ing those that constitute legal violations, whenever possible using such means as strict, thorough export
screening, the notification of information about legal changes, raising internal awareness about security export
control and internal audits of exporting departments. Furthermore, we carefully maintain export records to
ensure preparedness for risks that could arise should our products or technologies be improperly exported.

Export Control Initiatives


Security control comprises three steps—item classification, customer screening and transaction verification—
that are uniformly managed using a dedicated system.

Item classification is the process of determining whether the product or technology being exported or supplied
is subject to legal restrictions (namely, listed as a restricted item). We implement a double-check process
wherein, based on the latest versions of restricted item lists, the exporting departments perform the initial
check and the Export Control Department grants final approval.

Customer screening entails using the export control system, which contains the latest risk information to
screen customers, including both customers in Japan who indirectly export and end-users at the item’s final
destination. This screening system is highly effective in preventing the circumvention of regulations by export-
ing through a third country. As with item classifications, a double-check process is applied to customer
screenings.

For transaction verification, the exporting departments fill out a transaction verification form using the results of
the item classification and customer screening. Based on this form, the export control system then automati-
cally assesses the riskiness of the transaction and determines who will be responsible for granting final
approval. The Export Control Department grants final approval for items listed as restricted that are consid-
ered high-risk, such as carbon fiber.

20 Mitsubishi Chemical Sustainability Report 2017


Internal Audits

The Internal Audit Department, which is independent of business and administrative operations, conducts
internal audits to assess the effectiveness of internal controls at Mitsubishi Chemical Corporation and its
Group companies, monitoring such factors as the adequacy and the efficiency of each organization’s gover-
nance, risk management and operating processes. The Internal Audit Department contributes to the improve-
ment of the internal controls in close collaboration with the relevant organizations.

Mitsubishi Chemical Sustainability Report 2017 21 


Responsible Care Activities

Basic Policy

Mitsubishi Chemical carries out Responsible Care (RC) activities,1 which are self-initiated activities in the
chemical industry for ensuring environmental conservation, health and safety. In line with the Mitsubishi
Chemical Holdings Group Charter of Corporate Behavior and with the aim of realizing KAITEKI, we implement
RC activities based on the five pillars of process safety and disaster prevention, occupational safety and
health, environmental conservation, chemical and product safety, and logistics safety.
1  Responsible care activities: Voluntary activities undertaken by companies that handle chemical substances to protect the environment,
health and safety across all related processes, from the development of such substances to their manufacturing, distribution, use, final
consumption and disposal. These activities also encompass the publishing of the results of such efforts and dialogue and communication
with society.

22 Mitsubishi Chemical Sustainability Report 2017


Implementation Framework

Mitsubishi Chemical (MCC) has designated departments responsible for promoting each of the five pillars of
its Responsible Care (RC) activities. These departments work together to carry out RC activities. The desig-
nated departments draft annual RC action plans that are then deliberated by the Environmental and Safety
Promotion Committee, comprising the director in charge of RC, representatives of the business domains and
plant general managers, before being discussed by the Executive Management Committee and then going to
the President for final approval. The director quickly informs employees of the approved plans and orders the
creation of action plans for plants and business domains based on said plans. The departments responsible
for implementing RC activities monitor the action plans of the plants and business domains and their imple-
mentation status and provide support and instruction aimed at improvement, thereby helping to improve the
RC activities of the MCC Group as a whole.

RC activity pillar Implementation departments

Process safety and disaster prevention

Occupational safety and health Environment & Safety Dept.

Environmental conservation

Chemicals Management Dept.,


Chemical and product safety
Quality Assurance Dept.

Logistics safety Logistics Dept.

Mitsubishi Chemical Sustainability Report 2017 23 


Responsible Care Activities

Environment and Safety

Basic Policy
Mitsubishi Chemical (MCC) has established the Environment and Safety Principles as well as Policies Related
to Environment and Safety, and it implements activities related to process safety and disaster prevention,
occupational safety and health, and environmental conservation. MCC has published these principles and
policies, as laid out below.

  Environment and Safety Principles


1. Safety lies at the foundation of the company’s very existence, and ensuring safety is the company’s
social responsibility.
2. The company has an obligation to conserve and improve the environment and become an entity
that is friendly to both people and the planet.

  Policies Related to Environment and Safety


1. We will comply with social rules and standards, including corporate ethics in addition to applicable laws.
2. We will pursue zero accidents and zero occupational injuries.
3. We will reduce our environmental impact to prevent global warming and protect the natural environment.
4. We will educate our employees about the environment and safety so that they can act with aware-
ness of their own responsibilities.
5. We will communicate closely with society to enhance understanding and trust.
6. We will continue making improvements by utilizing the latest technologies and available internal and
external information.

Based on the above environment and safety principles and policies, every year, MCC creates a Group envi-
ronment and safety action plan. The plan reflects the results of the previous year’s plan and audits and lays
out yearly targets, policies and key measures.

The fiscal 2017 plan includes the annual targets of zero serious accidents,1 zero serious occupational acci-
dents,2 zero environmental accidents3 and contribution to the global environment. The annual policy under the
plan is to effectively understand workplace weaknesses and steadily make improvements. In line with this plan
and the status of each workplace, we are carrying out environment and safety activities.
1 Serious accidents: Accidents deemed by MCC to have a major social impact.
2 Serious occupational accidents: Occupational accidents resulting in four or more days of lost work or the incurrence of a certified graded
disability.
3 Environmental accidents: Incidents of non-compliance with legal or regulatory standards reported to the government (excluding transient
incidents).

Audits of Environment and Safety Activities


MCC conducts safety audits of 16 plants, one R&D center, 28 domestic Group company locations and 42
overseas Group company locations. Through these audits, MCC checks and evaluates the status of safety-
related activities and provides guidance related to needed improvements. In fiscal 2017, we are confirming
whether workplaces are implementing PDCA cycles for activities based on the annual policy of effectively
understanding workplace weaknesses and steadily making improvements. In addition, we are checking the
implementation status of the environment and safety activity plan and measures to prevent problems and their
recurrence as well as the status of legal and regulatory compliance.

Furthermore, MCC conducts environmental audits of 16 plants, one R&D center and 30 domestic Group
companies. Through these audits, MCC checks and evaluates compliance with environmental laws and the
status of PDCA cycles related to environmental conservation activities and provides guidance related to
needed improvements.

In response to guidance provided as a result of such audits, audited plants and Group companies are working
to make necessary improvements by, for example, improving their facilities or reviewing their standards.

24 Mitsubishi Chemical Sustainability Report 2017


Process Safety and Disaster Prevention,
Occupational Safety and Health

Basic Policy and Key Measures


In line with its environment and safety principles and policies, Mitsubishi Chemical (MCC) engages in process
safety and disaster prevention activities as well as occupational safety and health activities. In fiscal 2017, we
have set the goals of zero serious process safety incidents and zero serious occupational accidents and are
implementing the following key measures.

M Thoroughness and Continuation of Safety Management Activities


To eliminate occupational accidents caused by employee behavior, we are thoroughly reinforcing basic
safety practices and basic operations while implementing exacting risk assessments, measures to ensure
the effective use of information on accidents, and field work and construction management.

M Thoroughness and Continuation of Facility Management


We systematically inspect, diagnose and repair aging facilities while steadily performing regular monitoring
to ensure necessary functions are maintained. Furthermore, to prevent incidents, we rapidly respond to any
report of irregularity.

M Developing Safety Professionals (Education and Passing Down Skills)


We implement education and training for less experienced employees, as well as education aimed at
increasing their understanding of facilities and processes. Furthermore, to enhance process risk assess-
ments, we are proactively developing human resources with highly specialized knowledge and analytical
skills.

M Incident and Natural Disaster Response


We have in place robust earthquake and tsunami countermeasures and carry out related drills. In addition,
we are advancing measures to deal with natural disasters caused by extreme weather (wind and flood
damage) due to climate change.

M Enhancing Chemicals Management


We designate chemical substances that could be particularly harmful if stolen or lost and abused as MCC
Specified Chemicals. We manage these substances, from manufacturing to distribution and transfer to
customers, in accordance with methods laid out in relevant guidelines, thereby reinforcing chemicals
management.

  Focus: Safety Conventions at Mitsubishi Chemical Plants

On June 30, 2017, MCC’s plants and R&D centers held


conventions aimed at increasing employees’ safety
awareness. The conventions were attended by President
Ochi or other members of top management, who spoke
directly to employees about the importance of safety.
After the events, the top management representatives
visited factory floors, held roundtable discussions and so
on, providing opportunities for management and employ-
ees at manufacturing sites to talk directly with one
another about safety.

In tandem with the safety conferences, MCC held the


President’s Environment and Safety Award ceremony to
recognize departments and employees for outstanding
contributions to environment and safety activities.

Mitsubishi Chemical Sustainability Report 2017 25 


Responsible Care Activities

Process Safety and Disaster Prevention,


Occupational Safety and Health

Preventing Process Safety Incidents and Occupational Accidents

As of October 2017, no serious facility-related accidents have occurred in fiscal 2017. There have, however,
been 20 incidents, including small fires and leaks, 14 of which were leaks of chlorofluorocarbon gases from
cooling machines. Going forward, in addition to implementing the priority measures, we will work to prevent
chlorofluorocarbon gas leaks by reinforcing inspections and systematic repairs.

Mitsubishi Chemical Group Process Safety Incidents in Japan


(Number)
20 Incidents Serious incidents

15

10
20
15 16
14
12
5

0 1
2013 2014 2015 2016 2017 (FY)
(Apr.–Oct.)

* Data for fiscal 2016 and before are the totals of the figures for the previous Mitsubishi Chemical, Mitsubishi Plastics and Mitsubishi Rayon
groups. The same applies hereinafter.

Although MCC has worked to thoroughly reinforce basic safety practices and basic operations, in fiscal 2017,
four serious occupational accidents resulting in four or more days of lost work have occurred in Japan (as of
October 2017). These accidents were due to falls on level surfaces and from elevated surfaces and getting
caught in machinery. To prevent such accidents, MCC has ordered facility inspections and safety countermea-
sures. We continue to work to prevent occupational accidents.

Mitsubishi Chemical Group Lost-Time Injury Frequency


Occupational Accidents in Japan

Domestic Mitsubishi Chemical Group


(Number) Non-lost-time accidents Lost-time accidents Chemical industry (Source: Ministry of Health, Labour and Welfare)
100 Serious accidents 1.0 Japan Chemical Industry Association member companies

0.85 0.88
0.82 0.81
80 0.8 0.76

60 0.6
0.55
72
45 0.40
40 0.4 0.35
53 50 0.34 0.33

0.34 0.32 0.33


20 7 38 0.2 0.29
5 0.23
4 5
20
15 11 11
0 4 0
2013 2014 2015 2016 2017 (FY) 2012 2013 2014 2015 2016 (FY)
(Apr.–Oct.)

26 Mitsubishi Chemical Sustainability Report 2017


From fiscal 2012 to 2016, 26% of all occupational
Mitsubishi Chemical Group Lost-Time Accidents by
accidents that occurred within the global MCC Group Classification (FY2012–2016)
were due to falls on level surfaces. To eliminate such
accidents, our plants have been implementing edu- Others Cuts and scrapes
Struck by flying/falling objects
cation and awareness raising while improving facilities 3%
5% 7%

in line with the Ministry of Health, Labour and Falls from elevated surfaces
10%
Welfare’s “STOP!” project aimed at preventing falls on
level surfaces. However, these efforts have not Collisions
3%
Being caught
and entangled
eliminated such accidents. In addition to the above- Reaction to motion/ in equipment
5%
improper motion 27%
mentioned measures, we have therefore determined
that employees must have the physical strength and Contact with 5%
hot or cold objects
dexterity to prevent such falls. We have therefore
rolled out KAITEKI exercises, which help improve 9%
Falls on
Chemical burns and toxicosis
strength and physical skills that are effective in pre- level surfaces
26%
venting falls, on a company-wide basis.

  Focus: Koriyama Plant Receives Award


from the Minister of Health, Labour and Welfare
The Koriyama Plant received an encouragement award in
the fiscal 2017 Labour Minister’s awards to excellent
workplaces, organizations and persons who contributed
to occupational safety and health. This award recognizes
workplaces, organizations and individuals that maintain
excellent safety and health standards and serve as mod-
els for others. The Koriyama Plant received the award in
recognition of its 22-year accident-free record and efforts
aimed at improving safety and realizing KAITEKI in the
workplace. The plant received specific praise for the
installation of safety covers and sensors to automatically
halt machinery if needed and other facility-related mea-
sures as well as organizational measures, such as the use
of a five-grade evaluation system to promote the estab-
lishment of correct work procedures.

Risk Assessment
MCC implements risk assessments as described below, striving to prevent process safety incidents and
occupational injuries.

  Manufacturing Process and Operation Risk Assessment


MCC identifies risks present in manufacturing processes and the operations of manufacturing sites and
implements countermeasures as necessary to prevent process safety incidents and occupational accidents.
In addition to risk assessments prior to beginning the manufacture of a new product or when changes are
made to manufacturing processes or work methods, we carry out assessments to reconfirm the efficacy of
existing safety measures. Furthermore, we evaluate risks related to non-routine operations, such as those
occurring during facility startup and shutdown as well as those arising during power outages and other
extraordinary circumstances. Based on such assessments, we implement countermeasures for risks related
to a wide range of operating conditions.

Mitsubishi Chemical Sustainability Report 2017 27 


Responsible Care Activities

Process Safety and Disaster Prevention,


Occupational Safety and Health
  Chemical Substance Risk Assessment
MCC implements chemical substance risk assessments in line with Japan’s Industrial Safety and Health Act in
order to identify the dangers and hazards posed by the chemical substances it handles and reduce the risk of
danger and health impairment faced by its workers. We have explicitly outlined our risk assessment protocol
and are steadily implementing assessments.

Use of Past Incident/Accident Information


MCC uses shared information about past accidents and incidents at the company and other companies to
help prevent both recurrences and the occurrence of similar accidents. When incidents or occupational
accidents do occur, we determine the root causes and implement countermeasures without fail in order to
prevent recurrences. Furthermore, we use data on incidents and accidents that have occurred at MCC and
other companies to predict where similar incidents and accidents are likely to occur within MCC and then take
preventive steps at the sites thus identified.

Human Resource Development Initiatives


With the aim of strengthening and enhancing risk assessment, MCC implements process safety education to
systematically educate mid-career technical staff in the fundamentals of process safety. This education first
imparts basic process safety skills and then teaches safety evaluation techniques that employ analytical
methods. Participants also examine the safety of the processes employed in the manufacturing units to which
they belong. This training aims to develop staff that can put process safety skills to use and direct others at
manufacturing sites.

  Focus: MCC Receives the Outstanding Award


in the Japan Chemical Industry Association’s Responsible Care Award

MCC received the Outstanding Award in the Japan


Chemical Industry Association’s Responsible Care
Award. This award was given in recognition of MCC’s
achievements in developing technical staff with pro-
cess safety skills.

Strengthening Earthquake Countermeasures


Based on the results of risk evaluations, MCC’s plants have developed and are systematically implementing
medium- to long-term earthquake countermeasure plans. In addition to ensuring compliance with related laws
and regulations, we are focusing on measures to prevent harm to plants and their surrounding communities.
To this end, we are advancing the seismic reinforcement of facilities in accordance with an order of priority
based on the anticipated intensity and frequency of earthquakes in each region. Furthermore, we are working
to secure evacuation routes and emergency roads that will be safe from liquefaction and implementing tsu-
nami evacuation drills.

  Earthquake-Resistant High-Pressure Gas Equipment


MCC uses earthquake resistance design standards to evaluate the earthquake resistance of such facilities as
spherical storage tanks with welded steel pipe braces and high-pressure gas facilities designated as vital in
terms of earthquake-resistant design. Based on such evaluation, MCC has drawn up plans to improve facili-
ties where necessary and is advancing earthquake countermeasures in line with said plans. We plan to com-
plete all of these measures by fiscal 2020.

28 Mitsubishi Chemical Sustainability Report 2017


Environmental Conservation

Basic Policy and Key Measures


Aiming to contribute to the global environment, Mitsubishi Chemical (MCC) proactively works to reduce its
greenhouse gas emissions, conserve resources and energy, prevent contamination of the air, water and soil,
limit waste generation, encourage reuse and recycling, engage in activities and develop technologies that help
conserve the natural environment, and develop and produce environmentally friendly products. In these ways,
MCC strives to reduce its environmental burden at every level of its business activities.

In addition, to ensure legal compliance, we carry out training on environmental laws and regulations and
regularly hold liaison meetings at which MCC Group managers in charge of environmental issues exchange
the latest information about legal amendments and other issues.

In fiscal 2017, we are implementing the following key measures

M Reducing Environmental Risk


We are implementing legal education and environmental audits to ensure compliance with environmental
laws and regulations and systematically reducing environmental risk by implementing risk assessments.

M Reducing Environmental Impact


We are working to reduce our environmental impact through such means as cutting greenhouse gas emis-
sions, saving resources and energy, and reducing waste disposed of in landfills.

M Coexisting Harmoniously with Local Communities


We are letting local communities know about our environmental conservation initiatives and promoting
harmonious coexistence through communication.

  Focus: Kurosaki Plant Receives Award from the Minister of the Environment
The Kurosaki Plant received the Exemplary Environmental Initiative
Award in the fiscal 2016 Environment Minister’s Awards. This
award recognized the plant’s ongoing initiatives to improve and
deepen employee awareness related to the prevention of environ-
mental incidents and other problems as well as environmental
conservation and the results of said initiatives as exemplary in
contributing to the prevention of pollution from industrial activities.

Mitsubishi Chemical Sustainability Report 2017 29 


Responsible Care Activities

Environmental Conservation

Addressing Climate Change


In line with the target set by Mitsubishi Chemical Holdings (MCHC) of reducing greenhouse gas emissions at
least 17% compared with fiscal 2005 levels by fiscal 2015, MCC has been working to cut its greenhouse gas
emissions. We achieved the fiscal 2015 target and have maintained emissions at this lower level in fiscal 2016
and into fiscal 2017. In fiscal 2016, energy use decreased significantly due to business reorganization.

Going forward, we will expand the range covered by this measure to include overseas Group companies and
advance initiatives to further reduce greenhouse gas emissions as we aim for the targets of the MCC Group
medium-term management plan.

Energy Consumption Greenhouse Gas Emissions


1,000 kl crude oil equivalent GHG (kt)
3,000 10,000
2,800 2,800
2,700
2,600
2,500
9,000 8,900 9,000
2,200 8,600
8,500 8,400
2,000
8,000

1,500

7,000
1,000

6,000
500

0 5,000
2012 2013 2014 2015 2016 (FY) 2012 2013 2014 2015 2016 (FY)

* Data shown above are the totals of the figures for the previous Mitsubishi Chemical, Mitsubishi Plastics and Mitsubishi Rayon and their
respective domestic group companies. The same applies to the environmental data hereinafter.

Tsurumi Plant and Yokohama R&D Center Receive


the Yokohama Global Warming Countermeasures Award
The Tsurumi Plant and Yokohama R&D Center received the
Yokohama Global Warming Countermeasures Award from the City
of Yokohama in recognition of their outstanding greenhouse gas
emission reductions under the City of Yokohama global warming
countermeasures plan system in fiscal 2016.

  Life Cycle Assessments


Life cycle assessment (LCA) is an approach that enables the quantitative evaluation of the environmental
burden generated by a product or service over its entire life cycle (from resource collection through raw mate-
rial production, product manufacturing, distribution, consumption, disposal and recycling) or at specific stages
of said life cycle. The evaluation of the environmental impact of MCC’s products and services over their entire
life cycles better enables the company to develop environmentally friendly products and services and provide
them to society.

30 Mitsubishi Chemical Sustainability Report 2017


Preventing Air, Water and Soil Pollution
MCC handles a wide range of chemical substances and consumes large quantities of fossil fuels that are
sources of nitrogen oxides (NO x ), sulfur oxides (SO x ) and dust. We therefore maintain ongoing measures to
reduce emissions of hazardous air pollutants and of pollutants into public bodies of water through such
means as installing and improving emission gas and wastewater treatment facilities.

We have been reducing or maintaining at a steady level the environmental burden our businesses place on
atmospheric and water quality, as measured by NO x , SO x and dust emissions as well as chemical oxygen
demand (COD). MCC’s emissions of PRTR-regulated substances1 and VOCs 2 rose in fiscal 2014, due in part
to increased production volume, but decreased in fiscal 2015 as a result of revisions to manufacturing meth-
ods and other reduction efforts. They have continued to decrease since.

Reducing Our Environmental Burden on the Atmosphere and Public Water Sources
NOx
SOx
COD (t) Dust (t)
12,000 NOx SOx COD Dust 300
10,900

10,000 9,900 250


8,800
240 8,000 8,200
8,000 200
210
200 200
6,000 180 150

4,000 100
3,100 3,200 3,000 3,100 2,900

2,000 50
2,000 1,900 1,700 1,700 1,700
0 1 0
2012 2013 2014 2015 2016 (FY)

1 Pollutant Release and Transfer Register (PRTR): A system for filing notifications of the amounts of chemical substances released and
transferred. This system enables the identification, aggregation and publishing of data on the types, sources and amounts of hazardous
chemical substances that have been released into the environment or transferred outside facilities as waste.
2 Volatile organic compound (VOC): Typical substances include toluene and xylene. These compounds became subject to regulation by the
amended Air Pollution Control Act of 2006 as source substances of photochemical oxidants (photochemical smog).

PRTR-Regulated Substance Emissions VOC Emissions


(t) (t)
2,000 6,000
5,500

1,600 5,000 4,800


1,500 4,400 4,500
4,300
4,000
1,200
1,100 1,100
1,000 3,000
860

2,000
500
1,000

0 0
2012 2013 2014 2015 2016 (FY) 2012 2013 2014 2015 2016 (FY)

Mitsubishi Chemical Sustainability Report 2017 31 


Responsible Care Activities

Environmental Conservation

Waste Reduction and Recycling


MCC is advancing 3R activities (reduce, reuse, recycle) in an effort to reduce its industrial waste, with the
ultimate goal of achieving zero emissions* of such waste. As a result of such efforts, the amount of waste
generated by the company has been decreasing. Although there have been fiscal years in which, due in part
to increased construction waste, waste disposed of in landfills increased, we have put the generation of said
waste back on a downward track by promoting recycling. Going forward, we will continue working to improve
the recycling rate of industrial waste by strictly enforcing sorted collection and strengthening coordination with
disposal contractors while seeking to recycle construction waste.

* Zero emissions: MCC defines achieving “zero emissions” as keeping the percentage of industrial waste
ultimately disposed of in landfills at 1% or less.

Industrial Waste Emissions and Recycling Rate Waste Disposed of in Landfills


and Landfill Disposal Rate
Waste emissions (t) Recycling rate (%) Waste disposed of in landfills (t) Landfill disposal rate (%)
500,000 Waste emissions Recycling rate 100 8,000 Waste disposed of in landfills Landfill disposal rate 3.0
7,600
7,000
400,000 405,000 90
6,000 6,000 2.5
352,000 350,000 347,000 340,000 5,500 5,300
2.2
300,000 80
76
75 4,000 2.0
70
200,000 70

61 2,000 1.7 1.7 1.5


100,000 60 60 1.6 1.6

0 50 0 1.0
2012 2013 2014 2015 2016 (FY) 2012 2013 2014 2015 2016 (FY)

Biodiversity Conservation
We are aware that our business activities are made possible by the benefits we receive from biodiversity, and
that our business activities impact the natural environment and ecosystems. For this reason, MCC pursues
initiatives that contribute to the global environment and thus conserve biodiversity. Through these initiatives,
we work to reduce environmental risk and impact while conserving the natural environment by cleaning up
neighboring areas and coastal areas and protecting green areas.

Environmental Accounting
To fulfill its environment-related social responsibilities, MCC engages in environmental conservation activities.
In the interest of maximizing the effectiveness and efficiency of these activities, we have introduced environ-
mental accounting—a methodology used in environmental management that links environmental and eco-
nomic activities. MCC uses environmental accounting to better understand the costs and effects of its
environmental burden reduction and conservation efforts.

Fiscal 2016 environmental accounting totals included ¥3.6 billion in investment in such areas as reinforcing
wastewater management and air pollution prevention as well as ¥32.0 billion in expenses, including those for
the operation and maintenance of pollution prevention equipment and proper waste disposal. Meanwhile,
such positive factors as revenue from the sale of valuable materials and savings from reduced raw material
and energy use totaled ¥2.6 billion.

32 Mitsubishi Chemical Sustainability Report 2017


Investment and Expenses Related to Environmental Conservation and Process Safety

Environmental conservation costs (Millions of yen)

FY2015 FY2016
Category Main initiatives
Investment Expenses Investment Expenses

Air pollution prevention,


dust countermeasure reinforce-
ment, dust collection system
replacement, water pollution
1. Pollution
prevention, activated sludge
prevention 2,138 16,018 2,417 15,967
consolidation, wastewater
costs
management reinforcement,
response to deterioration of
Costs
wastewater facilities and pipes,
within
etc.
business
areas 2. Global
environmental CO2 emissions reduction,
213 1,936 594 2,072
conservation operational improvement, etc.
costs
Industrial waste reduction,
3. Resource-
proper waste disposal,
recycling 588 6,086 389 6,300
resource conservation,
costs
energy conservation, etc.

Upsteam/downstream Waste reclamation,


55 350 10 189
costs green purchasing, etc.

Operation of units to address


Environmental environmental conservation,
conservation costs in ISO 14001 compliance and 0 1,793 17 1,903
management activities renewal, national exams,
environmental education, etc.
Environmental
conservation costs in R&D for increased productivity 21 4,045 29 5,315
R&D activities
Environmental
conservation costs in Construction and upkeep of
37 426 144 389
social contribution factory green spaces
activities
Costs of dealing with Cleanup of contaminated soil,
0 127 0 132
environmental damage etc.

Subtotal 3,052 30,781 3,600 32,268

Positive economic effects (Millions of yen)

FY2015 FY2016
Revenues Sale of recycled valuable materials 1,403 1,249
Raw material cost savings 550 438
Energy cost savings 723 883
Water cost savings 0 5
Cost savings
Waste disposal cost savings 74 61
Savings of costs of dealing with environmental damage 0 0
Other cost savings 2 0

Mitsubishi Chemical Sustainability Report 2017 33 


Responsible Care Activities

Product Stewardship

Basic Policy
Based on a product stewardship approach, the Mitsubishi Chemical (MCC) Group strives to minimize the
adverse effects of its products on human health and safety and the environment. To this end, we evaluate and
share information on risks related to product safety throughout product life cycles (raw materials procurement,
development, manufacturing, marketing and sales, distribution, use, and disposal and recycling), working with
stakeholders to proactively advance initiatives to secure the safety and wellbeing of society at all stages of the
value chain.

These initiatives are in line with the Strategic Approach to International Chemicals Management (SAICM).1
Along with process safety and disaster prevention, occupational safety and health, environmental conserva-
tion, chemical and product safety, and logistics safety, these initiatives are aimed at realizing KAITEKI through
risk-based chemicals management across product life cycles.
1 Strategic Approach to International Chemicals Management (SAICM): A strategic approach to international chemicals management
adopted by the International Conference on Chemicals Management (ICCM) and the United Nations Environment Programme (UNEP) in
2006.

Mitsubishi Chemical’s Product Stewardship Initiatives

Raw materials procurement Development Manufacturing Marketing and sales Distribution Customers
(Value chain)

- Use
Regulatory compliance - Disposal
- Recycling
Green procurement Green processes

Management of chemicals in products

Management of SDSs and labels

Reducing hazardous substances Transport of dangerous goods; emergency response

Development and manufacture of chemicals of low-concern and alternatives

Risk assessment

Product Stewardship

34 Mitsubishi Chemical Sustainability Report 2017


Chemicals Management

Management System and Regulations


Mitsubishi Chemical (MCC) maintains a system that ensures the rigorous management of chemicals in all its
business domains.

To effectively utilize the favorable properties of its chemical raw materials, MCC collects and shares informa-
tion on all substances related to its products, including that on chemical hazards, applicable domestic and
international regulations, and the results of risk assessments. In addition, we have built a support structure to
better enable the business domains to implement proper chemicals management.

Because chemical regulations vary by country and region, MCC has appointed a person responsible for
overseeing chemicals management at each of the regional headquarters1 to reinforce the global management
system.

We have laid out the essentials of chemicals management in our Chemicals Management Regulations,
Standards for the Safe Management of Chemicals and Standards for Product Safety Management.
Furthermore, we have formulated guidelines and manuals that provide concrete methods for working within
regulations, authoring and issuing SDSs,2 and implementing voluntary chemicals management. These efforts
help ensure proper management.
1 The following four companies, established to accelerate Mitsubishi Chemical’s overseas business development by supporting business and
revenue growth in their respective regions.
• Mitsubishi Chemical America, Inc. • Mitsubishi Chemical Europe GmbH
• Mitsubishi Chemical (China) Co., Ltd. • Mitsubishi Chemical Asia Pacific Pte Ltd.
2 Safety data sheet (SDS):
A document for providing information on the properties, hazards and toxicity, safety measures and emergency responses concerning
chemical substances when transferring or providing chemicals to other business entities.

Compliance with Chemical Regulations


  1. Japanese Laws and Regulations
MCC complies with wide-ranging laws concerning chemicals, including the Chemical Substances Control
Law (CSCL), the Industrial Safety and Health Act’s requirements concerning filing new substance notifications,
and the Poisonous and Deleterious Substances Control Law’s requirements concerning the registration and
management of manufacturing, importing and sale businesses as well as record maintenance. To ensure that
such compliance is thorough and comprehensive, MCC has established internal guidelines and rules related
to compliance with domestic laws and carries out centralized management using a database of notifications
filed. In fiscal 2017, we are focusing specifically on training responsible persons in MCC’s departments and
launching guidelines for our chemicals management that will enable each business domain to verify the name
and inventory status (new or existing chemical) for each substance in accordance with the CSCL.

  2. Overseas Laws and Regulations


In the run-up to 2020, the target deadline for achieving the goals of SAICM,3 countries around the world
(including China, South Korea, Taiwan, Thailand, the United States and Turkey) are enacting and amending
legal regulations on chemicals. In particular, the mandatory registration of all existing chemicals, begun under
REACH 4 in Europe, will soon be adopted in South Korea and Taiwan. To respond to these changes, we are
working with the regional headquarters established in fiscal 2017 and other Group companies to collect the
latest information on legal requirements in each region or location and develop a system to ensure a more
accurate response to regulations. In fiscal 2017, we are preparing for the full-fledged enforcement of new
standards from 2018, namely registration under K-REACH 5 in South Korea and TCSCA 6 in Taiwan, compli-
ance with the inventory reset rule under the U.S. TSCA,7 and the registration of chemical substances pro-
duced or imported in quantities of less than 100 tons annually under REACH in Europe.
3 Strategic Approach to International Chemicals Management (SAICM):
A strategic approach to international chemicals management adopted by the Governing Council of the United Nations Environment
Programme in 2002.
4 Registration, Evaluation, Authorization and Restriction of Chemicals (REACH):
European Union regulations regarding the registration, evaluation, approval and restriction of chemical substances.
5 Korea REACH (K-REACH): A law concerning the registration and evaluation of chemical substances.
6 TCSCA: Toxic Chemical Substance Control Act
7 TSCA: Toxic Substance Control Act

Mitsubishi Chemical Sustainability Report 2017 35 


Responsible Care Activities

Chemicals Management

Voluntary Chemicals Management Initiatives


  1. Participation in Initiatives In and Outside Japan
MCC contributes to the Global Product Strategy (GPS) 8 activities advanced by the International Council of
Chemical Association (ICCA)9 on an ongoing basis. MCC actively works with the ICCA as a CP&H LG10
member to plan and hold educational programs and workshops aimed at advancing capabilities in developing
countries in order to achieve the goals of SAICM. We actively participate in Japan Chemical Industry
Association as an activity-promoting member of JIPS.11

  2. Mitsubishi Chemical’s Voluntary Initiatives


As part of its GPS activities, the MCC Group evaluates the risks of its chemical products, compiles the results
as GPS Safety Summaries,12 and publishes these summaries via a portal page (available in Japanese only) on
the MCC website as well as on the ICCA website.

Furthermore, to prevent the theft and/or abuse of chemicals, MCC has established its own list of MCC speci-
fied chemicals, which includes voluntarily designated substances in addition to legally designated or restricted
substances. We have established safety management guidelines for managing these substances at plants
and laboratories, during logistics operations and during transfer to customers. In this way, we are working to
reinforce the management of such substances.
8 Global Product Strategy (GPS):
A voluntary initiative wherein companies appropriately manage and conduct risk assessments of their chemical products in order to
minimize risks posed by chemical substances throughout the supply chain.
9 International Council of Chemical Associations
10 Chemical Policy and Health Leadership Group
11 Japan Initiative of Product Stewardship (JIPS):
A voluntary initiative promoted by the Japan Chemical Industry Association aimed at reinforcing risk-based chemicals management at
companies.
12 GPS Safety Summary (sometimes abbreviated as GSS):
Documents that clearly explain methods for handing chemical substances and other information in detail that cannot be fully included on
SDSs. These summaries are used in risk management-based chemicals management.

Initiatives to Provide Reliable Chemical Substance Information:


SDS Management
We use comprehensive chemicals management systems (for example, K-Mates13 ), to support our expert staff
in the proper provision of information to customers and supply chain operators as well as reliable chemicals
management within the company.

The systems comprise databases of the chemical substances and components of products handled by MCC,
their hazardous properties, relevant domestic and international laws and regulations, and other information.
The system is capable of performing the GHS14 classification of chemical substances, determining the appli-
cability of laws and regulations, and producing SDSs and labels in line with the laws and standards of a wide
range of countries and regions, including Japan, Europe, the United States and East Asian and ASEAN coun-
tries for review by expert staff. The system uses highly reliable data that is carefully reviewed by experts at
Mitsubishi Chemical Research, an MCC Group company, to generate GHS classifications. Furthermore, we
are implementing proactive management using a function of the system that enables users to search chemical
substances and products in the MCC database that may be subject to anticipated legal or regulatory
amendments.
13 KAITEKI-integrated System of Risk Management & Technical Information Supports on Chemicals
14 Globally Harmonized System of Classification and Labelling of Chemicals (GHS):
A system for classifying chemicals by the type and degree of their hazardous properties based on globally harmonized rules and commu-
nicating this information using labeling and the provision of SDSs.

36 Mitsubishi Chemical Sustainability Report 2017


In-House Chemicals Management Training
In addition to basic chemicals management education, MCC hosts the Chemicals Management Seminar on a
monthly basis at MCC Group headquarters. This seminar serves to teach Group company employees about
increasingly stringent regulations in and outside Japan and how to address them. Furthermore, plants and
R&D centers provide education on relevant laws and regulations as well as practical training on GHS classifi-
cation and labeling methods, and reading and preparing SDSs.

In-house chemicals management training

Mitsubishi Chemical Sustainability Report 2017 37 


Responsible Care Activities

Quality Assurance

Basic Policy
The Mitsubishi Chemical (MCC) Group believes that implementing thorough quality control (QC) is important to
ensuring product safety and continuously improving quality so that MCC Group customers can use MCC
Group products safely and with confidence.

As an integrated chemical company that provides a wide array of products and services to customers in a
broad range of industries, it is MCC’s duty to prevent quality and product liability issues while working to
further increase customer satisfaction by offering safe, reliable products. We strive to fulfill this duty in line with
the following basic policy.

M In order to realize KAITEKI for customers, we provide products and services that customers can use with
confidence.
M We listen carefully to each customer’s requests and respond rapidly and sincerely.
M In accordance with the basis of our responsible care activities, we strive to achieve continuous improve-
ment in quality.

Product Information Disclosure


Around the world, corporations are facing growing demands to exercise proper management of chemical
substances in products throughout the entire life cycle as well as to disclose information on such chemical
substances. To accurately respond to these demands, MCC has established management standards for
chemical substances in products and continues to contribute to the smooth operation of chemSHERPA1
through the Joint Article Management Promotion-consortium (JAMP).2 Furthermore, with regard to conflict
minerals,3 which present possible human rights issues, we have established a policy and strive to meet cus-
tomer requests.

MCC is working with its business partners and customers to contribute to the creation of a social system
capable of managing chemicals throughout the supply chain.
1 chemSHERPA: A new private-public information communication scheme aimed at standardizing communications about the chemicals
included in products.
2 JAMP: A cross-industry organization that works to promote the appropriate management, disclosure and communication of information on
chemicals contained in “articles” (parts and final products) throughout the supply chain.
3 Conflict minerals: Tantalum (Ta), tin (Sn), gold (Au), tungsten (W) and other minerals extracted in the Democratic Republic of the Congo and
neighboring countries that are used to fund armed groups.

38 Mitsubishi Chemical Sustainability Report 2017


Logistics

Basic Policy
Mitsubishi Chemical (MCC) strives to put safety first and promote strict compliance, risk management, respect
for human rights and communication with business partners in order to realize KAITEKI. Based on a product
stewardship approach, we are promoting KAITEKI logistics to earn the trust of customers and society in
logistics operations.

Hazardous Materials Transport Initiatives and System to Prevent


External Harm in Case of an Accident
MCC focuses considerable effort on ensuring the safe transport of hazardous materials.

MCC’s business domains regularly hold responsible care meetings with logistics subsidiaries, maintaining
close communication and implementing measures aimed at reducing problems, accidents and occupational
injuries.

We work with logistics subsidiaries to ensure that all shipments are accompanied by yellow cards1 and edu-
cate our business partners about the chemical properties of our products. In these ways, we work to enhance
understanding of the products being transported and sensitivity to safety.

In addition to initiatives aimed at preventing accidents, we also conduct regular disaster drills with logistics
subsidiaries and are taking steps to address the risk of a serious road accident through a contract with the
Maritime Disaster Prevention Center. Furthermore, for products that present particularly high risk if stolen or
lost, we have established our own management standards that we use in the transportation and storage of
such products.
1 Yellow card: A document that contains emergency safety procedures to be taken in the event of a transportation accident and contact
information for fire departments and other relevant parties.

Modal Shifts: Increasing Energy Efficiency


MCC is also aggressively working to save energy in logistics.

We are working with logistics subsidiaries to improve energy efficiency and reduce CO 2 emissions.
Specifically, we are implementing such measures as increasing transport lot sizes and promoting weight
reductions by utilizing ship propellers made with carbon fiber, an MCC product. MCC is also actively advanc-
ing modal shifts to rail transport. As a result of these efforts, MCC has received Eco Rail Mark certification
from the Ministry of Land, Infrastructure, Transport and Tourism in recognition of its efforts to promote environ-
mentally friendly logistics.

Propeller made with carbon fiber Eco Rail Mark

Mitsubishi Chemical Sustainability Report 2017 39 


Responsible Care Activities

Company Data (Environment and Safety)

Mitsubishi Chemical Group Companies Promoting


Responsible Care Activities
As of October 2017

Petrochemicals Business Domain High Performance Chemicals


Japan Polychem Business Domain
Japan Polypropylene DIACHEM RESINS INDONESIA
Japan Polyethylene Toei Kasei
Mitsubishi Chemical Indonesia Dianal America
Japan Coating Resin
Mitsubishi Chemical Analytech
Carbon Business Domain ARKEMA Yoshitomi
Kansai Coke and Chemicals Mitsubishi-Chemical Foods
Nippon Kasei Chemical

MMA Business Domain


Mitsubishi Chemical Lucite Group Information, Electronics &
Huizhou MMA Display Business Domain
Suzhou Sanyouli Chemicals MC PET FILM INDONESIA
MCC Unitec Mitsubishi Polyester Film Suzhou
Thai MMA Mitsubishi Chemical Converting Film Wuxi
Mitsubishi Chemical Polymer Nantong Tai Young High Tech
Suzhou MRC Opto-Device Mitsubishi Chemical Infonics
Diatec Shinryo
Ryoko Mitsubishi Chemical Media
Acry Sunday The Nippon Synthetic Chemical Industry
Diapolyacrylate
The Saudi Methacrylates Company
High Performance
Films Business Domain
Advanced Polymers Business Domain J-Film
Mitsubishi Chemical Performance Polymers Hishi Plastics U.S.A.
Europe Tai-Young Film
Mitsubishi Chemical Performance Polymers DiaPlus Film
Echizen Polymer Mitsubishi Polyester Film (U.S.A.)
Japan Unipet Mitsubishi Polyester Film (Germany)
RHOMBIC

40 Mitsubishi Chemical Sustainability Report 2017


Environment & Living Solutions Advanced Moldings &
Business Domain Composites Business Domain
Dalian Rayon Environmental Equipment Quadrant
Wuxi Rayon Membrane Technology Toyama Filter Tow
Fengxin JDL Environment Protection Tosen
Mitsubishi Chemical Aqua Solutions Ryoko Sizing
MCC KODA TK Industries
Mitsubishi Chemical Cleansui Mitsubishi Chemical Carbon Fiber and
Wellthy Composites (U.S.A.)
Resindion Challenge
Tai Young Chemical MCC Composite Products
Mitsubishi Chemical Agri Dream Aldila
Mikado Chemical M.F.G. Wethje Carbon Composites
KAITEKI Fresh Australia Wethje Immobilien
Mitsubishi Chemical Infratec ALPOLIC
Astro Mitsubishi Chemical Composites America
DIATEX Ryobi Techno
Nitto Kako Shanghai Baoling Plastics
Yuka Denshi
Dia Molding

New Energy Business Domain


MC Ionic Solutions UK
MC Ionic Solutions US
Qingdao Anode Kasei

Corporate Domain
Mitsubishi Chemical Logistics
Ryowa Logitem
Mitsubishi Chemical Engineering Corporation
Ryouei
Ryoko Tekunika
Hokuryo Mold
Mitsubishi Chemical High-Technica

Mitsubishi Chemical Sustainability Report 2017 41 


Responsible Care Activities

Company Data (Environment and Safety)

Safety Data
All data below for years prior to and including fiscal 2016 are the sums of the figures for the previous
Mitsubishi Chemical, Mitsubishi Plastics and Mitsubishi Rayon, before the formation of the current Mitsubishi
Chemical.

Mitsubishi Chemical Group Process Safety Incidents in Japan

FY2017
Classification FY2013 FY2014 FY2015 FY2016
(Apr.–Oct.)

Incidents 15 14 12 16 20
Serious incidents 1 0 0 0 0

Mitsubishi Chemical Group Occupational Accidents in Japan

FY2017
Classification FY2013 FY2014 FY2015 FY2016
(Apr.–Oct.)

Non-lost-time accidents 72 53 45 50 38
Lost-time accidents 5 4 7 5 0
Serious accidents 15 11 20 11 4

Mitsubishi Chemical Group Accidents by Classification

Classification FY2012 FY2013 FY2014 FY2015 FY2016 Total

Cuts and scrapes 1 2 1 1 6 11

Being caught and entangled in


5 10 10 10 9 44
equipment

Falls on level surfaces 7 8 7 10 9 41

Chemical burns
2 2 2 3 6 15
and toxicosis
Contact with
2 1 3 2 8
hot or cold objects
Reaction to motion/
3 4 1 8
improper motion

Collisions 2 3 5

Falls from
1 5 3 3 4 16
elevated surfaces

Flying/falling objects 1 3 1 5

Others 2 1 1 2 2 8

42 Mitsubishi Chemical Sustainability Report 2017


Environmental Data
All data below for years prior to and including fiscal 2016 are the sums of the figures for the previous
Mitsubishi Chemical, Mitsubishi Plastics and Mitsubishi Rayon, before the formation of the current Mitsubishi
Chemical.

Mitsubishi Chemical Group Emissions of Pollutants into the Atmosphere and Water Systems (t)

Pollutant FY2012 FY2013 FY2014 FY2015 FY2016


NO X 10,900 9,900 8,800 8,000 8,200
SO X 3,100 3,200 3,000 3,100 2,900
COD 2,000 1,900 1,700 1,700 1,700
Dust 240 210 200 200 180
Total phosphorus 80 70 60 50 60
Total nitrogen 6,000 5,700 5,700 5,500 5,700
VOCs* 4,400 4,500 5,500 4,800 4,300
* Includes PRTR-regulated substances.

Mitsubishi Chemical Group Water Intake and Discharge Volumes ( km3 )

Type FY2012 FY2013 FY2014 FY2015 FY2016

Intake Tap water 32,000 30,500 29,300 28,400 31,300


Groundwater 26,500 26,500 24,200 22,300 23,200
Industrial water 120,200 115,600 109,800 102,000 97,800
Seawater 509,400 517,700 473,100 457,800 463,100

Discharge Oceans 573,700 577,100 522,400 493,900 495,100


Streams and wetlands 28,300 46,400 42,300 51,200 48,300
Sewerage 3,700 3,900 3,300 3,500 3,600

ISO 14001 Certified Mitsubishi Chemical Plants

Certification Certification
Plant Registration date Plant Registration date
body body
1 Mizushima
Otake Plant LRQA March 2016 JCQA March 2000
Plant
2
Kurosaki Plant JQA July 2000 Kashima Plant JCQA March 2001

Nagahama and
JQA December 1999 Sakaide Plant LRQA December 2000
Azai Plants
3
Yokkaichi Plant JCQA July 1999 Tsukuba Plant JCQA February 2000

Toyama Plant LRQA July 2016 Santo Plant JCQA December 2001

Hiratsuka Plant JQA March 2000 Tsurumi Plant LRQA October 2016

Toyohashi Plant LRQA July 2016 Ueda Plant JCQA October 2003

1 Lloyd’s Register Quality Assurance Limited


2 Japan Quality Assurance Organization
3 Japan Chemical Quality Assurance Ltd.

Mitsubishi Chemical Sustainability Report 2017 43 


Together with Stakeholders

Basic Policy

The Mitsubishi Chemical Holdings Group identifies its stakeholders as its customers, shareholders, investors,
communities, employees, business partners and everyone else who supports its corporate activities, as well
as society at large and the foundation upon which it is built, the Earth. Based on this understanding,
Mitsubishi Chemical works to earn the trust of its stakeholders by valuing and respecting stakeholders,
engaging in dialogue and proper disclosure, and reflecting the fruits of such efforts in all its corporate
activities.

44 Mitsubishi Chemical Sustainability Report 2017


Together with Customers

Basic Policy
In line with the Mitsubishi Chemical Holdings Group Charter of Corporate Behavior, Mitsubishi Chemical
(MCC) constantly strives to achieve customer satisfaction by keeping the promises made in contracts with
them, ensuring the safety and quality of all the products and services it supplies, engaging in close customer
communications and advancing R&D.

Making Product Information Available


Over 1,100 product information entries (approximately 530 in Japanese, 350 in English and 240 in Chinese),
including information on the products of Group companies, are available on MCC’s website. In addition,
Safety Data Sheets (SDSs) and GPS Safety Summaries (GSSs) can also be accessed through the website
(available in Japanese only).

For product information, please contact the department or Group company that handles the product in ques-
tion. Lists of MCC’s departments and Group companies with information on the products they handle are
available on MCC’s website.

If you are unsure which department to contact, please contact the call center for guidance.

Call center (+81) 3-6748-7300


9:00–12:00, 13:00–17:45 (Closed Saturdays, Sundays and national holidays)

Customer Satisfaction Surveys


The Mitsubishi Chemical Holdings (MCHC) Group believes that close customer communication is essential to
achieving accurate insight into social issues and the challenges that customers face and to finding solutions
together. Accordingly, the Group has been conducting customer satisfaction surveys since fiscal 2012.
Specifically, we survey customers in and outside Japan about products handled by our core businesses,
covering such topics as quality, supply systems, sales promotion and technical support, as well as the atti-
tudes and reliability of individual operating companies. By analyzing the results of these surveys and imple-
menting a PDCA cycle, MCC aims to provide even better customer service and improve customer
satisfaction.

Mitsubishi Chemical Sustainability Report 2017 45 


Together with Stakeholders

Together with Customers

  KAITEKI SQUARE

KAITEKI SQUARE was established in October 2012 in our Tokyo headquarters as a showroom for the
MCHC Group. It is an important platform for communication with our customers and clients, a place
where we can interact and exchange ideas about a better future.

KAITEKI SQUARE comprises three zones. The first zone is the Special Exhibition Zone, which focuses
on the role of science and technology in solving various challenges facing 21st-century society. The
second zone is the Permanent Exhibition Zone, which highlights the technological capabilities and
collective strength of the MCHC Group by showcasing products and technologies that the Group is
working on that are aimed at realizing KAITEKI. The last is the Concept Zone, an interactive video
exhibition that offers a glimpse into the societies of the future.

We look forward to welcoming more and more visitors to our showroom and having meaningful dis-
cussions on how to realize KAITEKI in the future together.

KAITEKI SQUARE at the Tokyo headquarters

46 Mitsubishi Chemical Sustainability Report 2017


Together with Business Partners

Aiming to realize KAITEKI, an original concept created by the Mitsubishi Chemical Holdings (MCHC) Group,
Mitsubishi Chemical (MCC) works with business partners to promote purchasing and procurement that take
into account CSR-related considerations based on the Mitsubishi Chemical Holdings Group Charter of
Corporate Behavior.

Promoting Communication
We facilitate communication with raw materials and packaging materials suppliers using a guidebook and
survey to ensure that said suppliers share our understanding of CSR issues and to confirm the status of
related initiatives.

We utilize survey results to provide feedback to business partners and engage in dialogue about making
specific improvements. By doing so, MCC aims to build sound relationships with its business partners that
enable mutual growth and improvement.

In fiscal 2017, we plan to completely revamp the content of our business partner survey. We believe that
updating the survey to reflect the new MCC’s management policy and changes in external demands will allow
us to more accurately express our commitments and priorities, and improve the quality of communications
with business partners.

Mitsubishi Chemical s CSR Procurement


Upstream suppliers to our business partners
We ask that our business partners particularly exercise caution regarding We request caution be taken to guard against
their suppliers’ business practices in the areas of legal compliance, risks arising from increasingly globalized and
respect for human rights, hiring and labor, the environment and safety, multi-layered supply chains.
conflict minerals and information management.

Business partners
We ask business partners to consider establishing PDCA cycles to address
items covered in surveys in light of survey results.
Through dialogue using the guidebook
and survey, we aim to advance initiatives
with business partners that will realize
Mitsubishi Chemical (purchasing departments) mutual sustainable growth.
1. Guidebook: Principles We Ask Our Business Partners to Embrace
(Request for Suppliers)
2. Survey: Business Partner Survey on CSR
We provide feedback based on survey results.

Compliance with the Subcontract Act


To maintain sound relationships with its business partners, MCC has clearly articulated a system for ensuring
compliance with the Subcontract Act and established internal rules, including the Subcontract Act
Compliance Regulations, in which the specific scope of application and compliance requirements of the
Subcontract Act are laid out. To ensure that transactions are conducted pursuant to such internal rules, MCC
systematically implements internal training and audits of related departments.

Mitsubishi Chemical Sustainability Report 2017 47 


Together with Stakeholders

Together with Employees

Mitsubishi Chemical (MCC) is implementing a range of initiatives aimed at enabling employees—upon whom
realizing KAITEKI depends—to exercise their abilities to the fullest as well as at achieving sustainable corpo-
rate development based on a new relationship of trust between employees and management.

Basic Policy
“Utilizing people’s capabilities” is one of the fundamental management policies of the MCC Group. We prac-
tice health and productivity management and carry out management with the aim of empowering all Group
members to work with enthusiasm, motivation and initiative, allowing each individual to exercise their abilities
to the fullest while promoting diversity and viewing the diversity of human resources as a strength.

  The Human Resources and Organization We Aspire to Be

We, as individuals, aspire to:

• Think deeply about, take action according to, and take responsibility for our own duties and roles.
• Proactively embrace differences, respect one another and broadly connect with others.
• Look beyond the status quo and take new action to continuously and ambitiously seek to create value.

We, as an organization, aspire to:

• Share common goals and a common direction and create an organization where we can all thrive.
• Anticipate change and work together to take action quickly.
• Leverage diverse individuality and ways of thinking to continually seek value creation that is greater
than the sum of our individual contributions (1 + 1 > 2).

48 Mitsubishi Chemical Sustainability Report 2017


Personnel Strategy for Sustainable Corporate Development

Kazuyuki Futamata
Director of the Board and Managing Executive Officer
Mitsubishi Chemical

In fiscal 2017, MCC is mainly implementing initiatives


related to the following issues with the aim of utilizing
people’s capabilities.

• KAITEKI Health and Productivity Management


• Respect for human rights and promoting diversity
• Effective placement and human resource development

In implementing initiatives related to the first of these, KAITEKI Health and Productivity Management,
we are focusing on both health support and workstyle reforms, aiming to improve health at the indi-
vidual and workplace levels. That is, we are working to realize workstyles that facilitate health and job
satisfaction for every employee as well as workplace environments that allow each individual to thrive
and utilize their abilities to the fullest. MCC is working strategically—investing and building frame-
works—to make this happen. We are encouraging every employee to proactively examine their own
health, work and workplace, ask what they can do to enhance their own health and vigor at work,
and take action accordingly. We believe that this approach will help each employee achieve a greater
sense of satisfaction and achievement both at work and in their everyday lives. Furthermore, individu-
als and organizations backed up by health exert a positive influence their families and communities. In
this way, I am confident that we can contribute to society through our businesses and thus contribute
to realizing KAITEKI.

As for the second issue, respect for human rights and promoting diversity, we want the MCC Group
to be an organization in which all employees respect one other’s diverse individuality and values,
including nationality, race, religion, age, gender, sexual orientation and disability or lack thereof, and
together fulfill the Group’s corporate social responsibility while enabling every individual in the Group to
exercise their abilities to the fullest. Aiming to lay the foundations and create support to enable diverse
human resources to thrive, we are further developing our existing initiatives related to respect for
human rights, hiring people with disabilities, enabling woman to succeed, and providing support for
child care and nursing care. At the same time, we are working to create environments that are
accommodating of all employees, regardless of nationality, and to foster understanding and provide
support for LGBT individuals.

The third issue is effective placement and human resource development, an area in which we aim to
enable every employee to work with enthusiasm, motivation and initiative and to exercise their abilities
to the fullest. Specifically, we are engaging in personnel placement on a Group-wide basis to meet the
demands created by globalization. We have also adopted a career development program—a system
for medium- to long-term strategic personnel placement and development with the aim of encourag-
ing employees to pursue self-directed growth. Going forward, based on this program, while clearly
delineating the roles of the Group in Japan and the regional headquarters, we will advance effective
placement and human resource development across the MCC Group as a whole.

Mitsubishi Chemical Sustainability Report 2017 49 


Together with Stakeholders

Together with Employees

Employee Perception Surveys


Once a year, the MCC Group conducts an employee perception survey of its employees in Japan and those
temporarily stationed overseas. The survey covers a diverse range of topics, including employees’ mindsets
and values regarding work and their workplace conditions. The survey results provide useful information on
employee satisfaction, one of the items in the MOS Indices, and we use them with the results of other surveys
to reflect employee perspectives in management.

50 Mitsubishi Chemical Sustainability Report 2017


KAITEKI Health and Productivity Management

Basic Policy
Mitsubishi Chemical (MCC) is implementing KAITEKI Health and Productivity Management, aiming to ensure
not only employee safety and health but that every employee can thrive and find purpose and satisfaction in
their job. Before the merger, the three companies that formed the new MCC were each implementing their
own health and productivity management initiatives. We have redefined these initiatives and their goals under
a new name that incorporates our ideal of KAITEKI—KAITEKI Health and Productivity Management.
Accordingly, we are strategically investing management resources in order to maximize the performance of
one of the greatest assets of any company—the people who work there—from the perspective of health.

KAITEKI Health and Productivity Management at Mitsubishi Chemical

KAITEKI Health and Productivity Management


Initiatives to maximize the performance of one of the greatest assets of any company
—the people who work there—from the perspective of health, with the dual focus of
health support and workstyle reforms for employees and workplaces
• Company where a variety of human resources work actively and energetically
• Company that possesses a high degree of productivity and creativity
• Company that contributes to health promotion at the levels of family, community and society

Activated Productivity Satisfaction


organization improvement improvement

Health support Workstyle reforms


Compliance Reputation
Self wellness improvement
• Health awareness • Work reform
• Proper lifestyles • Diverse, flexible ways of working
• Prevention of occupational injuries Workplace wellness • Effective capability development
• Creation of safe and healthy • Proper management of working
workplaces Family wellness hours

ICT/IoT utilization
Community and social wellness

We are implementing KAITEKI Health and Productivity Management initiatives with the dual focus of health
support and workstyle reforms. To achieve the goals of these initiatives, we have designated themes like those
shown above and are carrying out concrete activities and measures in line with said themes. Furthermore, we
have built a framework to implement a PDCA cycle, including monitoring criteria to confirm the progress of
such activities.

We are advancing KAITEKI Health and Productivity Management with particular awareness of the three forms
of wellness shown below. We are also working with our health insurance union and promoting information
sharing and coordination with Group companies.

Self Wellness
Being Healthy Ourselves
In line with the principle that the primary responsibility for one’s health lies with oneself and to ensure
that we can work effectively, we will each take the initiative to manage our own well-being.

Workplace Wellness
Creating Healthy Workplaces
We will respect the individuality of the people we work with and support one another in order to build
vibrant, creative workplaces by improving workplace environments and work processes.

Social Wellness
Building Healthy Families and Nurturing Our Ties to the Community
By enhancing self wellness and workplace wellness, we will aim to broadly contribute to society as
members of our respective families and communities.

Mitsubishi Chemical Sustainability Report 2017 51 


Together with Stakeholders

KAITEKI Health and Productivity Management

Health Support
  Basic Policy for Managing and Enhancing Health
MCC has laid out necessary rules for managing employees’ physical and mental health in its Health
Management Regulations. We maintain a health and safety management system and provide health check-
ups and stress check tests in compliance with relevant laws and regulations. While duly respecting our
employees’ privacy, we actively work to maintain and improve their physical and mental health and implement
health management activities. Managers and specialized staff, including human resource department staff and
industrial physicians, each aware of their own roles and duties, coordinate to maintain and improve conditions,
namely working hours, work content and burden, and work environments. Furthermore, should any physical
or mental health problems that may affect an employee’s ability to do their job arise, said staff responds
appropriately.

  Occupational Accident Countermeasures Focusing on Human Factors


KAITEKI Exercises and Safety Fitness Tests
In Japan and within the company, falls are one of the most frequently occurring causes of occupational injury.
We have made company-wide efforts to prevent such falls, including improving facilities, revising work prac-
tices and implementing various forms of training, but these initiatives have not reduced the number of occupa-
tional injuries caused by falls.

To address this problem, in addition to existing measures, we have begun focusing on human factors, namely
physical strength and dexterity. Specifically, we are advancing fall-prevention physical training as part of
KAITEKI exercises and carrying out safety fitness tests to assess employees’ ability to avoid falls. Though
such measures, we are working to help employees of all ages develop the physical strength and skills to
prevent falls.

  Raising Health Awareness and Improving Lifestyle Habits


Adopting Health Support Tools That Use ICT/IoT
We have introduced i 2 Healthcare, a system to support employee health, as infrastructure to back up KAITEKI
Health and Productivity Management. We are using the system as part of our initiatives to improve lifestyle
habits, seeking to increase health awareness and help employees improve their lifestyle habits.

To this end, we are loaning wearable activity tracking devices to employees who request them. Fitting like a
wristwatch, such devices allow users to monitor their physical condition, including heart rate and the amounts
of exercise and sleep they are getting. Data collected from such devices are being used with the i 2 Healthcare
system to enhance employee health.

Workstyle Reforms
  Work Reform
By achieving radical innovations at the workplace level under the leadership of on-site managers, we are
eliminating inefficiencies and freeing up time. By doing so, we aim to pursue more value-creating work and
improve work-life balance. To support such work reforms, shared function departments, such as human
resources and administration, suggest guidelines for running meetings and preparing documents and e-mails
while providing enhanced IT communication tools. We are advancing work reforms in coordination with the
UP!20 company-wide productivity improvement initiative.

  Proper Management of Working Hours


As part of workstyle reforms under KAITEKI Health and Productivity Management and to prevent excessive
working hours and ensure compliance, MCC is working to appropriately manage working hours.

52 Mitsubishi Chemical Sustainability Report 2017


Eliminating Excessive Working Hours and Increasing the Paid Vacation Usage Rate
To accurately track actual working hours, our attendance system records when employees log on and off of
the computers they use. This helps prevent discrepancies between actual and reported working hours.

We are also implementing awareness-raising activities, such as presentations for managers about the proper
management of working hours, aimed at reducing overtime through self-directed work improvement in each
department.

Furthermore, we are working to make it easier for employees to take time off using such programs as the
refresh leave system 1 and by setting planned annual days off. 2 Furthermore, to support employees’ self-
directed social contribution efforts, we have established a volunteer leave system (up to five days per year)
and donor leave system (as many days as needed).

Promoting Flexible Workstyles


Remote Work System
In November 2017 we introduced a remote work system, enabling employees to work from home or else-
where.3 Eligibility for this system is not limited to employees engaged in child care or nursing care; all daytime
employees who have been with MCC for a year or more can use the system up to two days a week. We
believe this system will benefit employees, helping to improve work-life balance and reduce the burden of
commuting.
1 Once a year, employees who take two or more consecutive annual paid vacation days can receive one additional day off on the following
business day. Employees who have been with MCC for more than a year as of April 1 are eligible to use this system.
2 A system that makes it easier for daytime employees to use their annual paid vacation by designating certain days for everyone in the
company to take off at once. Up to three days per year.
3 The status of system implementation varies by location.

Overview of Leave Systems


MCC has established the following leave systems to enable employees to balance their work and private lives.

Main Leave Systems ( Besides Child Care and Nursing Care Leave)
Leave to accompany a spouse on overseas assignment; volunteer leave with the Japan Overseas
Cooperation Volunteers; fertility treatment leave

Livelihood Support Leave


Employees can accumulate up to 40 expired annual paid vacation days (which are valid for two years
after being granted) as days they can use under the livelihood support leave system. These days can
be used by employees if they are ill or injured, pregnant, engaged in nursing or child care, undergoing
fertility treatment, victims of a natural disaster or volunteering.

Principal Special Types of Time Off


Bereavement/memorial service leave; marriage leave; menstrual leave; leave for employees directly
affected by or unable to get to work due to a natural disaster; volunteer leave; donor leave; workplace
transfer leave; home visit leave; refresh leave; jury duty leave; public service leave; maternity leave;
paternity leave; nursing care leave

Mitsubishi Chemical Sustainability Report 2017 53 


Together with Stakeholders

Respect for Human Rights and Promoting Diversity

Basic Policy
Mitsubishi Chemical (MCC) regards respect for human rights as the basis of its management and the develop-
ment of diversity as part of its management strategy. MCC has established its Basic Policy on Respect for
Human Rights and the Development of Diversity to focus efforts on these issues.

  Basic Policy on Respect for Human Rights and the Development of Diversity
Within the MCC Group, all employees shall respect one other’s diverse individuality and values, includ-
ing nationality, race, religious beliefs, age, gender, sexual orientation and disability or lack thereof, and
together fulfill the Group’s corporate social responsibility. Building on this foundation, we aim to enable
every individual in the Group to develop their abilities to the fullest.

Respect for Human Rights


In line with the Mitsubishi Chemical Holdings Group Charter of Corporate Behavior, we shall respect
the dignity and rights of all people and shall not unfairly discriminate under any circumstances.
Furthermore, each employee shall endeavor to correctly understand human rights and related issues
and realize workplaces that realize KAITEKI and are free of discrimination and harassment.

Developing Diversity
In line with the Mitsubishi Chemical Holdings Group Charter of Corporate Behavior, we shall build
organizations that take strength from diversity, in which each individual is aware of their role, strives to
enhance their abilities as needed, and utilizes said abilities to the fullest to contribute to the creation of
KAITEKI value. Furthermore, we shall endeavor to balance our work and personal lives and, by deep-
ening dialogue and mutual understanding, create a workplace culture that is rich in drive and energy
and that realizes KAITEKI.

To promote respect for human rights and diversity on a company-wide basis, we have established the Human
Rights and Diversity Development Committee, chaired by the Supervising Officer (in charge of Human
Resources) and comprising the chief operating officer of each business domain and common function depart-
ment. The members of this committee implement PDCA cycles, discuss their implementation policies and
plans and monitor and periodically and report on performance.

Respect for Human Rights


The Mitsubishi Chemical Holdings (MCHC) Group has established the Mitsubishi Chemical Holdings Group
Global Policy on Respecting Human Rights, Employment and Labor. In light of the Universal Declaration of
Human Rights and United Nations Global Compact, MCC has adopted this policy as its action guidelines.

In addition to implementing the necessary education to ensure respect for individual dignity and rights, MCC
forbids child labor and forced labor and strives to maintain proper working conditions. Through these efforts,
MCC seeks to fulfill its corporate social responsibility to ensure that the rights of all its stakeholders are
respected.

To this end, we maintain systems for dealing with issues in this area appropriately. Specifically, we are imple-
menting a variety of educational and other initiatives, including rank-specific training, aimed at deepening
awareness and knowledge of human rights. In addition, at each plant, we have appointed harassment coun-
selors, to whom employees can go to seek help or guidance related to harassment or human rights issues.

54 Mitsubishi Chemical Sustainability Report 2017


Enabling Women to Succeed
In line with its basic policy on promoting diversity and as part of efforts to utilize its people’s capabilities, MCC
is providing support to enable its female employees to achieve greater success. As a result of enhancements
to systems to support employees in balancing their work and personal lives, we have almost eliminated the
gender gap in the number of years that employees stay with us, but the rate at which women are promoted to
management positions remains an issue. In light of this, we have formulated the action plan below based on
the Act on Promotion of Women’s Participation and Advancement in the Workplace. We are advancing a
range of measures in line with said plan.

MCC’s Action Plan


We have established the following action plan to support the development and success of female employees.

1. Plan Duration
April 1, 2017–March 31, 2021 (four years)

2. Numerical Target
Double the percentage of management positions (line manager or equivalent and above) held by
women from the 2017 level

3. Initiatives
(1) Implement systematic career development support for female employees
(2) Develop female managers
(3) Enhance educational opportunities for motivated employees
(4) Implement workstyle reforms and develop workplace culture

Balancing Work and Personal Lives


To effectively promote diversity and enable every employee to utilize their abilities, employees must be able to
balance their work and personal lives. MCC supports its employees with numerous systems designed to meet
the needs attendant to a range of life stages.

  Main Systems to Support Employees in Balancing Their Work and Personal Lives
M Child care leave: Until the April 30 after the child’s third birthday
M Reduced work hours for child care: Until the end of the child’s third grade school year
M Nursing care leave: One year per qualifying family member
M Reduced working hours for nursing care: Maximum two-hour reduction in working hours per day (as long
as necessary)
M Reduced work days for nursing care: Maximum five-day reduction in working days per month (as long as
necessary)
M Life support leave (system for accumulating expired annual paid leave): Can be used for recovery from
illness or injury, child care, nursing care, etc.
M Declaration of desired place of work: Allows employees to specify their desired place of work to accom-
modate family circumstances
M Leave to accompany a spouse on overseas assignment: Allows employees to take leave of up to three
years to accompany their spouse on an overseas work assignment
M Remote work system: Employees whose work is suitable for telecommuting can do so up to two days a week
M Day care cost stipends
M Day care information service
M Nursing care stipends and financial support
M Home care worker stipend
M Establishment of external nursing care consultation points

In addition, we have formulated the action plan below based on the Act for the Promotion of Measures to
Support the Nurturing of the Next Generation. We are advancing measures in line with said plan.

Mitsubishi Chemical Sustainability Report 2017 55 


Together with Stakeholders

Respect for Human Rights and Promoting Diversity

MCC’s Action Plan


To facilitate balanced work and personal lives for employees and enable all employees to exercise their
abilities, we have established the following action plan and are creating accommodating work
environments.

1. Plan Duration
April 1, 2017–March 31, 2021 (four years)

2. Targets and Initiatives

Target 1: Create environments that facilitate the success of employees engaged in child care
• Monitor the usage of systems to support employees in balancing their work and personal lives as
well as the results of related initiatives and share findings broadly with employees
• Provide support to help employees continue working and return to work smoothly and promptly
after child care leave

Target 2: Develop a workplace culture that is supportive of employees balancing work and home
responsibilities
• Foster increased understanding of company systems
• Respect employees’ diverse values and workstyles while creating a workplace culture in which each
employee recognizes their role and can exercise their abilities to the fullest
• Reduce working hours
• Encourage the use of paid leave

Target 3: Carry out other initiatives to support the development of the next generation
• Provide opportunities for children to come into contact with workplaces, such as plant tours
• Foster understanding of the meaning of work among young people and provide work experience
opportunities

56 Mitsubishi Chemical Sustainability Report 2017


Support to Enable People with Disabilities to Exercise Their Abilities
MCC is advancing initiatives to promote the hiring of people with disabilities and enable them to exercise their
abilities. Each business site partners with special-needs schools and institutions to proactively provide work
experience opportunities. We also accept job applicants with disabilities, matching them to workplaces and
seeking to retain them. Furthermore, we are advancing such initiatives as making bathrooms barrier-free,
improving workrooms to suit the needs of people with disabilities and making work hours more flexible.

In 1993, we established the special subsidiary Kasei Frontier Service, Inc., which provides PC data entry and
printing services, to help people with disabilities achieve growth by taking on work responsibilities and thus
contribute to society. As of June 2017, said company had 69 employees with disabilities (of 105 total
employees).

A Company Where People with and without Disabilities Work as One


to Take on Ambitious Goals

Koji Nakano
Managing Director
Kasei Frontier Service, Inc.

At Kasei Frontier Service, Inc., although we provide both
tangible and intangible accommodations to enable people with
disabilities to thrive at work, we do not give such employees
special treatment. This is because our aim is to be a company
where people with and without disabilities work as one to take
on ambitious goals.

In managing Kasei Frontier Service, we continually strive to


make the company an organization we can be proud of as a
team of human beings. To that end, it must be a company where anyone can work comfortably in a
friendly but competitive environment. At the same time, as employees age, their circumstances and
abilities change. Even so, we must cooperate and help one another to develop working environments
that offer each employee the joy of working and a true sense of participating in and contributing to
society.

In June 2017, 2.05% of Group employees were people with disabilities, above the legally mandated
rate of 2.00%. MCC’s basic policy is to ensure that the individuality of every employee, disabled or
not, is respected and that all employees can thrive. At each site and at Kasei Frontier Service, we are
encouraging the hiring of people with disabilities and providing support to enable such employees to
exercise their abilities on an ongoing basis.

Mitsubishi Chemical Sustainability Report 2017 57 


Together with Stakeholders

Effective Placement and Human Resource Development

Basic Policy
At Mitsubishi Chemical (MCC), we aim to achieve our vision—realizing KAITEKI. To that end, we strive to
secure and retain human resources who are understanding of diverse values, identify issues on their own, and
involve those around them as they continually take on new challenges.

Hiring
We do not hire individuals less than 18 years old, and practice fair, non-discriminatory hiring.

Effective Placement and Human Resource Development


  Basic Policy
We aim to realize optimal personnel placement on a Group-wide basis to meet the demands created by
changes in the business environment and globalization. To this end, we have also adopted a career develop-
ment program—a system for medium- to long-term strategic personnel placement and development with the
aim of encouraging employees to pursue self-directed growth. Specifically, we are working to effectively place
and develop the next generation of executive management candidates for the MCC Group and promising
human resources in each region.1

With regard to the next generation of executive management candidates, we are working with the regional
headquarters 2 established in April 2017 to implement unified global management, identifying key positions
and preparing succession plans for them as well as monitoring the placement of management candidates
who are expected to fill such positions in the future. The company-wide HR Committee convenes on a regular
basis to manage such efforts. Furthermore, we are applying these initiatives not only to MCC employees but
expanding them to include the entire MCC Group, including overseas companies, working to implement more
systematic and efficient human resource development and placement.

At the same time, with regard to promising resources in each region, the regional headquarters implement
systematic human resource development and placement within their respective regions.

Based on the above policies, in April 2017 we introduced a new personnel system for employees of MCC in
Japan as described below.

1 Refers to the four regions that the MCC Group has designated as its units for global business development, namely the Americas; Europe,
the Middle East and Africa; the ASEAN region, India and Australia; and China and Hong Kong.
2 The following four companies, established to accelerate Mitsubishi Chemical’s overseas business development by supporting business and
revenue growth in their respective regions.
• Mitsubishi Chemical America, Inc. • Mitsubishi Chemical Europe GmbH
• Mitsubishi Chemical (China) Co., Ltd. • Mitsubishi Chemical Asia Pacific Pte Ltd.

  Career Design
As a part of personnel measures designed to encourage employees to think about their careers, we have
introduced career design interviews. Such interviews involve an employee and their supervisor discussing the
employee’s current situation and how said employee plans to grow over the medium to long term. This
approach is designed to help employees take the initiative and grow.

Employees work to identify their own strengths and consider how they can hone and utilize those strengths to
contribute to society. At the same time, the company systematically examines ways to utilize and enhance
each individual’s strengths in order to achieve corporate growth.

58 Mitsubishi Chemical Sustainability Report 2017


Human Resource Development System
MCC believes that on-the-job training—learning through actual, on-site work experience—is the foundation of
employee growth. We expect on-the-job training to lead employees to grow autonomously through the pro-
cess of indentifying issues in the course of their ordinary work and solving said issues with support from those
around them.

To support and reinforce this process, we have introduced measures to enable employees to proactively
design their own careers. We also maintain an off-the-job training program that enables employees to learn
how to fulfill their expected roles.

Furthermore, we organize training programs according to five perspectives that are based on business,
workplace and individual needs. These are the junior employee development perspective, management
perspective, global perspective, skill and specialist knowledge perspective and career perspective. Using such
training programs, we support the growth of each employee while encouraging self-directed career
development.

Management perspective Skill and specialist knowledge perspective


Participants
Junior employee Career perspective Global perspective Conceptualization Interpersonal Business MCHC Programs
Others
development perspective skills skills execution skills

Career design
training Management
Supervisors New supervisor training (career Seminars
management
course)

Correspondence and online courses/External courses

Junior Management Seminars


Practical management training I

中国ビジネス研修
Career design training (e-learning)

Managers

Business model training


Overseas Business Challenge

United States business training


New manager training
Short-term overseas assignment training

China business training


English language training
Global business training

Problem-solving skills training

Management Management
Diversity communication training

Time management training

basics basics
training I training II
Professional career group

Self-management training
General career group

Logical thinking training

Presentation training

Third year training


(General career group)

Second year training


(General career group)

New employee training


(General career group)

At the same time, Mitsubishi Chemical Holdings (MCHC) holds such programs as Management Seminars and
Junior Management Seminars that provide management literacy training as well as a Global Executive
Program and Group New Executive Training for executives. The MCC Group actively sends its employees to
participate in these programs, which offer opportunities for employees to develop themselves through friendly
competition within the MCHC Group.

Mitsubishi Chemical Sustainability Report 2017 59 


Together with Stakeholders

Effective Placement and Human Resource Development

Global Executive Development


The MCC Group is forcefully globalizing its management structure. To encourage the development of the
human resources needed to handle global management, we are carrying out a range of training and other
programs in and outside Japan.

The development of globally oriented management personnel requires the cultivation of global mindsets and
amassing of global experience. To this end, we offer rank-specific programs to develop global mindsets in
Japan. We also provide overseas dispatch programs, including the Overseas Business Challenge Program,
which combines foreign language training with internship programs at overseas Group companies, and the
Overseas Survival Experience, a short-term program in which participants work to solve problems on their
own in a multicultural environment. Through such work experience, overseas experience, language study and
other programs, we provide opportunities for employees to gain global business and living experience tailored
to the specific level of each individual.

60 Mitsubishi Chemical Sustainability Report 2017


Labor-Management Relations

Building New Labor-Management Relations


The former Mitsubishi Chemical, Mitsubishi Plastics and Mitsubishi Rayon, which merged in April 2017 to
create the new Mitsubishi Chemical, each had their own labor union, namely the Mitsubishi Chemical Labor
Union, Mitsubishi Plastics Labor Union and Mitsubishi Rayon Labor Union. The three labor unions continue to
exist and have changed their names to the Mitsubishi Chemical MC Labor Union, Mitsubishi Chemical MP
Labor Union and Mitsubishi Chemical MR Labor Union, respectively. The status of these unions’ membership
or non-membership in umbrella organizations and the particular umbrella organizations to which they belong
may vary. While respecting the pre-merger state of relations with each union, Mitsubishi Chemical is working
to provide opportunities, such as holding meetings of management and all three unions together, for sound
discussion aimed at building new labor-management relations.

Mitsubishi Chemical Sustainability Report 2017 61 


Together with Stakeholders

Together with Communities and Society

Basic Policy
In line with the Mitsubishi Chemical Holdings Group Corporate Citizenship Activities Policy, the Mitsubishi
Chemical (MCC) Group provides not only monetary and material support, but contributes to actual activities
(providing human support) in such areas as creating an inclusive society, fostering the development of the next
generation, protecting the global environment, communicating with local communities and disaster support.

Mitsubishi Chemical Holdings Group Corporate Citizenship Activities Policy


The Mitsubishi Chemical Holdings (MCHC) Group strives to deepen its understanding of the culture and
customs of the communities and countries where it operates and to contribute to society through its busi-
nesses. Furthermore, as a good corporate citizen, the MCHC Group works to meet the demands and expec-
tations of society and communities and realize KAITEKI.

Approach
• Conduct corporate citizenship activities in communities and countries where we operate from a
viewpoint of sustainability, health, and comfort.
• Deepen our understanding of social needs through communication with various stakeholders and
other organizations.
• Conduct activities together with employees and encourage their positive participation.
• Support employees in their volunteer activities.

Social Contribution Activities


Creating an Inclusive Society
In April 2017, MCC signed an agreement to become an official
partner of the Japanese Para-Sports Association (JPSA).

MCC agrees with JPSA’s mission of creating a vibrant, inclu-


sive society and seeks to contribute to the realization of a
society that is healthy both physically and mentally, where
everyone can enjoy the benefits of sports and each individual’s
individuality is respected. As an official partner of JPSA, MCC
works to contribute to the realization of a vibrant, inclusive
society by supporting JPSA’s activities and thus helping to May 2017
Volunteers at the Japan Para Wheelchair
further spread and develop sports for people with disabilities. Rugby Championship venue

  Fostering the Development of the Next Generation


The MCC Group holds chemistry experiment workshops at various locations, aiming to spark an interest in
chemistry and science among children, who represent the next generation.

Furthermore, by performing chemistry experiment shows for children at events held by the Yume Kagaku-21
Committee, we actively support the committee’s activities. (The Yume Kagaku-21 Committee comprises the
Chemical Society of Japan; Society of Chemical Engineers, Japan; Japan Association for Chemical
Innovation; and Japan Chemical Industry Association.)

62 Mitsubishi Chemical Sustainability Report 2017


Protecting the Global Environment
and Communicating with Local Communities
The MCC Group has participated in Tokyo Greenship Action
since 2015. Under this initiative, every spring and autumn the
Tokyo Metropolitan Government, NPOs and companies
together undertake activities aimed at preserving nature con-
servation areas in Tokyo. At our business sites, we enthusiasti-
cally participate in woodland conservation and local area and
waterway cleanup activities. Furthermore, on a regular basis,
we participate in local events, invite local residents to events at
plants, and open our sports fields and athletic facilities to the
public. We also proactively host tours for elementary, junior
high and high school students as part of ongoing efforts to
communicate with local communities.

Disaster Support
The MCHC Group provides ongoing support to the areas
affected by the Great East Japan Earthquake through mon-
etary and material donations and by backing the volunteer
June 2017 Tokyo Greenship Action
activities of employees. (Kiyose Matsuyama nature
conservation area)
As part of efforts to support recovery in the Tohoku region,
every year we hold exhibitions of local specialty products from
Iwate, Miyagi and Fukushima prefectures at the Group head-
quarters, where many employees buy a wide variety of prod-
ucts, supporting recovery.

In November 2016, we held Let’s Go to Tokyo, an event in


which we invited elementary school students and their guard- May 2017 Sakawa River
coordinated cleanup
ians from Iwate’s Kamaishi City and Otsuchi Town to Tokyo.
The participants visited Tokyo Disneyland, went sightseeing at
TOKYO SKYTREE and learned about chemistry at the Group
headquarters. 2016 marked the fifth time we have held this
event. With help from MCHC Group employee volunteers, we
put together a fun schedule for the children and their guardians
that included a chemistry experiment workshop, a tour of the
MCHC Group’s KAITEKI SQUARE showroom, and a visit to the
June 2016 Toyohashi Plant tour for
observation floor of the Group’s head office building. students of Aichi Prefectural
Toyokawa Technical High School
The MCHC Group will continue to pursue activities that sup-
port the recovery of the Tohoku region.

The MCHC Group has also provided support to areas affected


by the 2016 Kumamoto Earthquake and July 2017 northern
Kyushu floods in the form of monetary and material contribu-
tions and support for the volunteer efforts of its employees.
Overseas, the Group donated U.S. $100,000 to support the
recovery of areas on the east coast of the United States that
suffered tremendous damage from Hurricane Harvey and
Hurricane Irma in August 2017.

August 2017 Volunteers


in areas affected by
the northern Kyushu floods

Mitsubishi Chemical Sustainability Report 2017 63 


Together with Stakeholders

Collaboration with Industry, Academic


and Governmental Partners

Basic Policy
Based on Mitsubishi Chemical Holdings Corporation’s medium-term management plan, we are working to
effectively use internal and external technological resources to expand and deepen our existing technologies,
accelerate the development of current and new technologies, and thus contribute to new business creation.
To achieve this, we are implementing measures in the following three areas.

1. Actively Promoting Collaboration with External Research Institutions


Utilizing external research resources, we are increasing the odds of success in R&D, shortening R&D lead
times needed to bring technologies to commercialization and reducing development costs over the long term.
We are also striving toward disruptive innovation, which is difficult to achieve through internal R&D alone.
Furthermore, by using external R&D resources with untapped potential, we are working to identify research
themes that will lead to new businesses.

2. Securing New Core Technologies Through External Collaboration


By integrating technologies and expertise secured through external collaboration with our in-house technolo-
gies, we are creating differentiated products and services. At the same time, we are working to strengthen the
core technologies that will be necessary to new businesses in the future.

3. Globalizing Research and Development


By collaborating with institutions in and outside Japan that boast cutting-edge technologies, we are further
enhancing our in-house technologies and thus continuously developing world-leading products. To this end,
we are promoting and expanding joint research, principally in Japan, the United States, Asia and Europe,
working to build a global R&D network. At the same time, we are developing globally oriented human
resources with the ability to take a broad, global perspective and produce results in a diverse society.

Collaboration in Fiscal 2016


1. United States
• Comprehensive partnership with the University of California, Santa Barbara (UCSB), to develop advanced
functional materials
• Partnership with Georgia Institute of Technology to develop photoelectric materials

2. China
• Comprehensive partnership with Dalian University of Technology for organic synthesis and process
development

3. Japan
• Summer internship program for students of the University of Tokyo Graduate School of Engineering
Department of Chemical System Engineering (“Todai Practice School”)
• Partnership with the National Research and Development Institute for Materials Science (NIMS) for func-
tional inorganic materials development
• Evaluation of organic devices as a member of Chemical materials Evaluation and REsearch BAse (CEREBA)

All of the above are collaborative efforts undertaken by the pre-merger Mitsubishi Chemical.

64 Mitsubishi Chemical Sustainability Report 2017


Company Data (Social)

Employee Composition

Employees Working at Mitsubishi Chemical

By gender By employment type By age group

29 or 1,778
Open ended 11,980 younger
Male 11,178
30 to 39 3,259
Fixed term (rehired retirees,
975 40 to 49 4,242
contractors)
50 to 59 2,855
Female 1,777
Other (part-time, etc.) -
60 to 69 812

Total: 12,955

As of April 2017

Employees Employed by Mitsubishi Chemical

By gender By employer Average age

Mitsubishi Chemical 12,724


Male 14,307

Group companies 43.4

3,911
Female 2,328
Auxiliary organizations

Total: 16,635

As of April 2017

Mitsubishi Chemical Sustainability Report 2017 65 


Together with Stakeholders

Company Data (Social)

Managers Employed by Mitsubishi Chemical Employment of People with Disabilities

Male 4,712 ( 94%) Full-time positions held by


340.5
employees with disabilities
Female 286 ( 6%)
Total number of employees
Total 4,998 used to calculate the percentage of 16,625
employees with disabilities
As of April 2017

Percentage of employees
2.05%
with disabilities
New Hires to Mitsubishi Chemical
As of June 1, 2017
Male 181 ( 83%)

Female 38 (17%) Total Working Hours

Total 219 1,974


Average total annual working hours
hours
Individuals hired during the regular annual hiring
period, whose employment began April 1, 2017
(includes individuals other than new college Average monthly overtime pay ¥41,087
graduates).

Year ended March 31, 2017

Third-Year Employee Turnover Rate Paid Time Off Usage

Male 5.4%
Paid time off usage rate 73.4%
Female 9.7%
Employees who used maternity leave 76
Average 6.3%

Calculated as the percentage of employees who Male 22


joined the company on April 1, 2014 who were no Employees who used child
longer employed by the company as of March 31,
care leave
2017.
Female 154

Year ended March 31, 2017

Employee Union Membership Rate


65.7% (As of March 31, 2017)

* D ata for the year ended or as of March 31, 2017 are totals or averages of the figures for the previous Mitsubishi Chemical,
Mitsubishi Plastics and Mitsubishi Rayon prior to the merger that formed the new Mitsubishi Chemical.

66 Mitsubishi Chemical Sustainability Report 2017


About Mitsubishi Chemical

Company and Group Overview

The new Mitsubishi Chemical Corporation was formed on April 1, 2017 through the merger of the previous
Mitsubishi Chemical Corporation, Mitsubishi Plastics, Inc. and Mitsubishi Rayon Co., Ltd. As of September
2017, Mitsubishi Chemical Corporation and its 368 Group companies operate in business areas that include
performance products and industrial materials.

  Mitsubishi Chemical Corporation Overview

Established August 31, 1933 (current company established April 1, 2017)

Palace Bldg., 1-1 Marunouchi 1-chome, Chiyoda-ku,


Head office
Tokyo 100-8251, Japan
Representative Director,
Hitoshi Ochi
President & CEO

Paid-in capital ¥53,229 million

Employees 12,955 (non-consolidated basis)

Listings Unlisted

Website https://www.m-chemical.co.jp/en/

As of April 2017

  Group Overview

Subsidiaries 311

Affiliates 57

Total 368

40,914 (Consolidated basis; total of the figures for


Employees
the three pre-merger operating companies as of March 31, 2017)
As of September 2017

Group Network

Europe,
the Middle East
and Africa
78 companies

Japan
140 companies The Americas
50 companies
China and Hong Kong
48 companies
ASEAN region,
India and Australia
52 companies

Regional headquarters

Mitsubishi Chemical Sustainability Report 2017 67 


About Mitsubishi Chemical

Company and Group Overview

  Business Domains

By providing solutions to issues related to people, society and the Earth, Mitsubishi Chemical is accelerating
the growth of its businesses. As challenges in such areas as the intensification of climate change, uneven
distribution of water resources, growing and graying populations, and food and agriculture continue to emerge
and evolve, the company’s business domains related to each will work together to create new value and
provide comprehensive solutions.

Social Issues That Mitsubishi Chemical Addresses


• Efficient use of resources and energy
• Climate change (reducing CO 2 )
• Securing clean water resources
• Food and agriculture problems
• Health maintenance and disease treatment
• Smart society

Business Domains
• Petrochemicals
• Carbon
• MMA
• Advanced Polymers
• High Performance Chemicals
• Electronics & Displays
• High Performance Films
• Advanced Moldings & Composites
• Environment & Living Solutions
• New Energy

68 Mitsubishi Chemical Sustainability Report 2017


http://www.m-chemical.co.jp/en/

Printed in Japan

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