Mitsubishi Chemical Holdings

THE KAITEKI COMPANY

Comfort Index

C-1 Deliver products (development and manufacturing) for comfortable lifestyle

C-1-1  Increase sales of comfort-oriented products by ¥400 billion (compared with fiscal 2010) Providing people with comfortable lifestyles by expanding sales of products that contribute to “convenience,” “pleasure,” “peace of mind” and “relief”

Fiscal 2013 results ¥154.0 billion increase (compared with fiscal 2010)

The MCHC Group has defined products that contribute to “convenience,” “pleasure,” “peace of mind” and “relief” as comfort-oriented products. We are aiming to increase the sales of such products by ¥400 billion compared with fiscal 2010.
When the MCHC Group established the MOS Indexes, it was a difficult challenge to quantify the degree of contribution to people’s comfort. After deliberations, we have concluded that increasing sales of comfort-oriented products will lead to provision of comfort over a wide range, and have therefore made it our target to increase the sales of comfort-oriented products.

C-1-2 Increase the new product ratio from 16% to 30% Supporting the creation of comfortable lifestyles by providing new products

New product ratio in fiscal 2013 22%
We will achieve our target by developing new products that reflect customer needs and expanding sales of new products.

To provide people more comfortable lives, we need to continuously release products that feature new performance without being bound by our existing products. The MCHC Group seeks to increase the proportion of new products in its lineup.

DiaPlus Film Inc.*1Released a hanging smokeproof panel*2 to help build a safe and secure society

When the Great East Japan Earthquake occurred in 2011, there were many instances in which glass-sheet barriers dropped from the ceiling and caused injury to people and damaged property. As a result, DiaPlus Film Inc. developed and began sales of RKP Hanging Smoke Barrier Panel. This new product is one-eighth lighter than the glass equivalent and is immune to cracking or shattering, even if it drops from the ceiling or breaks during an earthquake, thus minimizing injuries.

Hanging smokeproof panel
Hanging smokeproof panel

*1 DiaPlus Film Inc. is a member of the Mitsubishi Plastics Group

*2 Hanging smokeproof panel: A hanging smokeproof panel is a partition suspended 50cm or more from the ceiling to facilitate evacuation in the event of a fire by delaying the flow of smoke and high-heat toxic gases. Buildings of a certain size, such as supermarkets, hotels and hospitals, are required by Japanese law to install smoke barriers.

C-2 Improve stakeholder satisfaction

C-2-1 Promoting all corporate activities, including MOS, to improve the results of third-party corporate assessments

Fiscal 2013 results Nikkei NICES Ranking:72

MCHC responds to questionnaires sent from newspapers and publishing companies. Many of these questionnaires evaluate activities that cannot be grasped through financial statements, such as activities contributing to improving sustainability. We consider these questionnaires as good opportunities for us to receive third-party evaluations of our activities for MOS (Management of Sustainability). We will further improve the level of our activities related to MOS and aim to be highly placed in the following third-party corporate rankings (assessments)* with respect to all of our corporate activities, including MOS.

* Examples of third-party corporate rankings (assessments) that cover the C-2-1 index
Nikkei NICES: Comprehensive ranking of listed companies in Japan by Nikkei Inc., which is a Japanese newspaper company.
Dow Jones Sustainability Indices: Corporate assessment based on contribution to the improvement of sustainability by Dow Jones & Company, Inc.

C-2-2 Achieve targets for employee-related indexes*

Fiscal 2015 target58.0% Results
We will consider and implement policies and measures that reflect the monitoring of past performance.

The MCHC Group believes that it is important to provide employees with rewarding work so they can grow and live fulfilling lives as it leads not only to their individual happiness, but to increased corporate value.
Specifically, we have formulated employee-related indexes and will take measures to achieve these index targets.

* Employee-Related Indexes
C-2-2 Index Items

  • Employee satisfaction
  • Percentage of female employees to employees at assistant manager level and above
  • Percentage of female employees on employees recruited
  • Percentage of overseas employees in positions of Director and above at major overseas subsidiaries
  • Decrease in workers putting in long hours
  • Increase in paid vacation utilization rate
  • Employee self-development ratio
  • Length of time employees spend on self-development
  • Percentage of employees involved in volunteer activities

Raise employee job and workplace satisfaction

We began conducting an employee survey for employees in Japan in fiscal 2011 and investigated changes in employees’ satisfaction in terms of job motivation and workplace conditions. Based on the results of these surveys, we gained an understanding of employee issues and we reflected these findings in our policies and measures.

Create workplace diversity

We strive to create workplaces where all employees can respect diverse ideas and flourish, regardless of nationality, gender, etc. For example, we train women and local staff at overseas subsidiaries in order to promote them to leadership positions.

Create workplaces that support work-life balance

Emphasizing both the working and personal lives of each and every employee, we strive to work more efficiently while limiting work hours and believe in the importance of choosing how one wants to work to support work-life balance.
We therefore promote initiatives to reduce the proportion of workers putting in long hours and raise the paid vacation utilization rate.

Increase opportunities for self-development and contribution to society

We expect all employees to voluntarily improve their abilities, enthusiastically take on new challenges and create new value and innovation. We therefore support the development of employees skills through on-the-job training, instruction and personal development programs in the course of their daily work. We also support the social contributions of employees by providing them with information about volunteer activities over our corporate Intranet.

Huizhou MMA Co., Ltd.*Boosting motivation at the point of production with a local flavor of TPM

Huizhou MMA Co., Ltd., which has produced and sold MMA monomers in China since 2006, has sought to develop human resources and raise productivity and therefore began Total Productive Maintenance (TPM) activities in fiscal 2010. As a result of conducting improvement activities involving all staff based on practices that reflect local culture and customs, Huizhou MMA has achieved increased MMA monomers production and drastically reduced processing loss. Moreover, employee motivation is also improving at the production site.

Huizhou employees
Huizhou employees

* Huizhou MMA Co., Ltd. is a group company of the Mitsubishi Rayon Group

Mitsubishi Chemical CorporationInitiated program to support the early return of employees from maternity and childcare leave

In anticipation of the medium- and long-term careers of female employees, Mitsubishi Chemical Corporation wants female employees to exhibit their pre-leave performance as soon as possible after resuming work following maternity leave or childcare leave and continue to flourish even when facing major life events such as childbirth or the raising of children. With this intent, Mitsubishi Chemical Corporation started the Work Resumption Support Program in February 2013. Under the program, managers regularly check with employees about their work status and thoughts on their future career, their physical condition and that of their children, and support for rearing children. Then, together with the Company, they consider how to work to maximize their abilities. Moving forward, Mitsubishi Chemical Corporation will create an environment in which women who are expectant mothers or raising children can flourish at work in their own way.

Program to support employees’ early return
Program to support employees’ early return

C-2-3 Improve customer satisfaction to 80% or more Grasping customer needs through Customer Satisfaction Surveys and building a better relationship of trust with them

Fiscal 2013 results78.2%
Conducting improvement activities based on the analysis of Customer Satisfaction Survey results.

The MCHC Group started the Customer Satisfaction Survey in fiscal 2012 and expanded the scope of the survey overseas in fiscal 2013. Considering the results and other factors, from fiscal 2014 we set a target for Customer Satisfaction Survey results in fiscal 2015 of 80% or more. Customer requests gained from the questionnaire answers will be resolved through direct communication with customers.

Customer Satisfaction Survey

C-3 Earn recognition of corporate trust

Developing into a company that earns even greater trust from its stakeholders through our corporate activities

The MCHC Group strives for safe operation at production sites to ensure that local residents can go about their lives with peace of mind.
In addition, through initiatives such as ongoing employment and activities to support governments, we aim to contribute to the sustainable development of local regions and society. We have established the following five targets to become a more trusted company and to have a more positive influence.

Safety accidents in fiscal 2013 47% reduction(compared to the base year*)
  • Reduce safety accidents
  • Reduce environmental accidents
  • Reduce claims to products
  • Reduce the lost-time injuries frequency rate
  • Assess product safety according to GPS* for 70% of products

* GPS: Global Product Strategy

Environmental accidents in fiscal 2013 0 incidents
There were no environmental accidents in fiscal 2013 due to improved pipe inspections and waste water management.

Mitsubishi Chemical CorporationThanks to stronger coordination with business partners, large-scale periodic maintenance work at our chemical plants was completed with zero accidents

At Mitsubishi Chemical Corporation’s Mizushima Plant, large-scale regular maintenance of continuously operating facilities including the ethylene plant, which is conducted once every four years, was carried out in fiscal 2013. With the aim of achieving zero accidents during maintenance work, we discussed the various themes, work procedures, rules, the 3S (Sort, Set in order, Shine), and information sharing with business partners during the nine months before the start of work, thereby establishing a task framework. As a result, we achieved zero accidents and injuries.

Safety meeting of regular maintenance work
Safety meeting of regular maintenance work
Claims relating to products in fiscal 2013 37% reduction(compared to the base year*)
Lost time injuries frequency rate in fiscal 2013 0.32
Confirmation of product safety according to GPS in fiscal 2013 31% of products confirmed
* The year with the most accidents or claims from fiscal 2008, 2009 and 2010 has been taken as the base year.