Mitsubishi Chemical HoldingsTHE KAITEKI COMPANY

Sustainability [Green] Index

S-1 Contribute to reducing environmental impact through products and services

S-1-1 Reduce environmental impact by 30% from fiscal 2005 levels Reducing the environmental impact of substances emitted from production processes by gathering the MCHC Group’s technologies

Fiscal 2013 results33% reduction (from fiscal 2005 levels)
We are continuing improvement activities to save energy at manufacturing sites.

Among substances that are recognized as environmentally hazardous, MCHC targets the following six substances: GHG (Greenhouse Gases), NOx (Nitrogen Oxides), SOx (Sulfur Oxide), soot and dust, VOC (Volatile Organic Compounds) and total nitrogen in drained water. MCHC quantifies to what extent these substances have impacts on the environment by using an index based on an environmental impact assessment methodology.

Mitsubishi Plastics, Inc.Installation of co-generation facilities

In July 2013, the Nagahama Plant of Mitsubishi Plastics, Inc. began operating two co-generation facilities. These facilities generate power using environmentally friendly city gas as fuel. Using exhaust heat produced by this power generation contributes to reducing greenhouse gas (GHG) emissions. Moreover, we developed a system to utilize an independent electric power generator with a capacity of 2,000kW so the plants can continue to stably supply products even when power supply is restricted in an emergency.

Nagahama Plant’s co-generation facility
Nagahama Plant’s co-generation facility

S-1-2 Generate reduction of CO2 emissions by 3.5 megatons through products
With energy-efficient products and materials that the MCHC Group provides, striving to reduce CO2 emissions when they are used

fiscal 2013 results 642,000 tons reduction
We aim to achieve the target by expanding sales of energy-efficient products and materials.

CO2 has been ascribed as the cause of global warming. The MCHC Group views the reduction of CO2 emissions in manufacturing as a material issue. At the same time, by providing energy-efficient products and materials, the Group aims to reduce CO2 emissions at the customer product use stage.

Mitsubishi Rayon Co., Ltd.Carbon fiber reinforced plastic is used in outer panels of automobiles

Carbon fiber reinforced plastic developed for mass production by Mitsubishi Rayon Co., Ltd. has been adopted for use in the trunk lid of luxury sports cars. By maintaining greater rigidity than aluminum while having nearly half of aluminum’s weight, it contributes to higher fuel efficiency (reduces CO2 emissions) through lighter weight and driving stability when driving at high speeds. We will further reduce CO2 emissions by increasing orders for automobiles and industrial-related applications.

Car trunk lid of GT-R produced by NISSAN MOTOR Co., Ltd.
Car trunk lid of GT-R produced by

S-2 Take actions against the depletion of natural resources and implement energy-saving initiatives

S-2-1rocure reusable materials equivalent to 10,000 tons of heavy oil in fiscal 2015 Switching from fossil fuels that are at risk of depletion to renewable materials

fiscal 2013 Results 600 tons
We are developing ways of product use with customers to increase the amount of plant-derived plastic used.

The MCHC Group has been promoting the switch from fossil fuels (oil, coal, natural gas, etc.) that are at immediate risk of depletion to renewable materials that use plant-based resources and other natural resources. Our target is to use renewable materials equivalent to 10,000 tons of heavy oil in fiscal 2015.

Mitsubishi Chemical CorporationBio-based engineering plastics adopted for automobile interiors

DURABIO, the bio-based engineering plastic developed by Mitsubishi Chemical Corporation, was adopted in the colored interior panels of compact cars. DURABIO exhibits high functionality and performance, especially in such areas as impact resistance, heat resistance, and weather resistance along with brightness of color and transparency. We will continue to accelerate the development of applications in various fields.

Colored interior panels of HUSTLER produced by SUZUKI MOTOR CORPORATION
Colored interior panels of HUSTLER produced by SUZUKI MOTOR CORPORATION

S-2-2Reduce cumulative rare metal usage by 1,200 tons through improving processes and innovating products Aiming to curb the use of metal resources that are in danger of depletion

Fiscal 2013 results 570 ton reduction

The MCHC Group uniquely designates some kinds of rare metal as those in danger of depletion in light of their status of use against output throughout the world. Our target is to reduce the usage of such rare metals of 1,200 tons by fiscal 2015. To achieve our objective, we attempt to extend the life-span of metal catalysts by improving our manufacturing processes and facilities and manufacturing products using parts made with substitute metals that have a low likelihood of becoming depleted.

S-2-3 Generate resources and power savings of ¥8.8 billion Promoting activities to reduce our use of raw materials and utilities to contribute to a more sustainable future for society and the Earth

Fiscal 2013 results ¥7.42 billion

By reducing our use of raw materials and utilities such as electricity, steam power, and water, we contribute not only to strengthening cost competitiveness but also to solving the problem of the depletion of the resources of the Earth, including energy resources and metal resources. The MCHC Group aims to generate energy and resource savings of ¥8.8 billion in raw materials and fuel equivalents in fiscal 2015 by improving the efficiency of manufacturing processes and facilities.

S-2-4 Provide 900 million tons of reusable water through our products Contributing to solving water issues in areas with growing concerns about water stress

Fiscal 2013 results 380 million tons
To achieve our target, we are strengthening the wastewater treatment business focused on Asia.

Various water shortages caused by rapid world population growth and social progress, and water contamination caused by undeveloped industrial water treatment facilities have become serious social problems. The MCHC Group aims to provide 900 million tons of reusable water in fiscal 2015 by expanding sales of product families with water purification functionalities.

Mitsubishi Rayon Co., Ltd.Expansion of the sales of hollow fiber membrane for wastewater treatment in South Korea

Since 2001, Mitsubishi Rayon Co., Ltd. has been expanding sales of hollow fiber membrane for wastewater treatment for local engineering companies in South Korea and has thus far delivered more than 100 systems. It has also participated in the first-stage construction of one of the largest sewage treatment facilities in South Korea (treatment volume of 91,500 cubic meters (m3) per day) that will begin operation at the end of 2014. After the planned second stage of construction, water treatment volume will total 122,000 m3 per day.

New Construction of Water Purification Center in Dong-Tan, Hwa-Seong, South Korea (Architectural rendering)
New Construction of Water Purification Center in Dong-Tan, Hwa-Seong, South Korea (Architectural rendering)

S-3 Contribute to solving social and environmental issues through supply chain management

S-3-1 Achieve 80% purchased items surveyed for toxic substances Improving the inspection rate for chemical substances contained in purchased raw materials

Fiscal 2013 results77%

The MCHC Group promotes “Green Procurement,” which involves preferentially selecting environmentally friendly products when procuring raw materials, materials, parts, etc. As part of this approach, in cooperation with suppliers, we inspect the chemical substances contained in products. Moreover, we promote activities to ensure management and communication of the information obtained by these inspections. Our target is to conduct inspections for at least 80% of purchased raw material items.

S-3-2 Achieve 90% purchasing of raw materials and packaging according to CSR guidelines Considering environmental and social issues through the entire supply chain

The rate of CSR-Based procurement in fiscal 2013 77%
From fiscal 2014, we plan to visit suppliers to verify their CSR activities.

Companies have to take responsibility for issues of human rights, labor, ethics, etc. not only internally but also in each stage of the supply chain. The MCHC Group has conducted questionnaire surveys since 2008 to confirm whether suppliers of raw materials and packaging materials consider these issues. Through survey feedback, we have promoted environmentally and socially conscious business activities in cooperation with suppliers.

Status of CSR-Based Procurement