Mitsubishi Chemical HoldingsKAITEKI Value for Tomorrow

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.

The Mitsubishi Chemical Holdings (MCHC) Group pursues initiatives in accordance with the Basic Policy on Safety and the Environment below.

Basic Policy on Safety and the Environment

  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 a responsibility to ensure that its products are safe for customers and consumers, and to minimize the impact of its products on the environment.
  3. The company has an obligation to conserve and improve the environment, and become an entity that is friendly to both people and the planet.

Management and Disclosure for Safety and the Environment Issues

The MCHC Group established the Group Synergy Office to develop and strengthen its foundations laterally among Mitsubishi Chemical, Mitsubishi Tanabe Pharma, Mitsubishi Plastics, and Mitsubishi Rayon. Under the leadership of this office, general managers responsible for the environment, safety, and production technology at these four operating companies attend regularly convened Four-Company Production, Safety, and the Environment Cooperation Council (Four-Company Cooperation Council) meetings. At these meetings, attendees exchange detailed information and opinions about the policies, activities, and issues of each company's initiatives. They also check and evaluate the details of activities at individual companies and manage information to build a common awareness among the companies.

Structure of the MCHC Groupe's Four-Company Cooperation Council

Each MCHC Group company is tackling initiatives related to quality management systems and environmental management systems. 98%*1 of our production sites worldwide have acquired ISO 9001 certification, and 97%*2 have acquired ISO 14001 certification. Moreover, MCHC ensures effective environmental management by conducting internal and external audits of these production sites regularly.

Mindful of the importance of verifying and reporting on corporate activities from a global perspective in disclosure related to the environment and safety, the MCHC Group has disclosed information in a manner that is informed by the third generation of the Global Reporting Initiative(GRI)'s Sustainability Reporting Guidelines. MCHC will further enhance the reliability of its disclosure by steadily extending it to include more organizations covered, increase disclosure elements, and heighten their precision.

  • *1 On a net sales basis. However, the Mitsubishi Tanabe Pharma Group is not included because it conducts management in accordance with the Good Manufacturing Practice.
  • *2 On a net sales basis.

Activities at Operating Companies

Disaster Prevention

Basic Approach

Reflecting the understanding that safety lies at the foundation of the MCHC Group's very existence, among the Management of Sustainability (MOS) Indexes, the MCHC Group sets out ensuring there are no material accidents or compliance violations as a benchmark it must meet without fail every year.

Disaster Prevention

MOS Index (Objective to be achieved): Achieve zero occurrences of material accidents and compliance violations
MOS Index C-3-1: Reduce facility-related accidents

Ensuring there are no material accidents is a target the MCHC Group must achieve. Furthermore, MCHC sets a target of reduction in facility-related accidents in the MOS Index.

Basically, each operating site endeavors to prevent facility-related accidents by ensuring the soundness of facilities and equipment and the proper operation through their appropriate maintenance as well as extensive education and training of their operators. If an accident occurs, we work to avoid recurrence by analyzing the cause, taking countermeasures, and verifying their effectiveness through inspections or maintenance patrols. Moreover, The MCHC Group works to prevent accidents by applying these countermeasures laterally to similar facilities and equipment or operations.

The Four-Company Cooperation Council addresses lateral initiatives among operating sites that transcend operating companies' boundaries. In fiscal 2012, Mitsubishi Chemical shared its process safety information database, which it currently operates, and process safety education with Mitsubishi Rayon and began helping Mitsubishi Rayon incorporate them.

Meanwhile, if an accident occurs, it is important that the MCHC Group minimizes the effect on the society through rapid responses from top management in regard to its accountability to local communities and its responsibility to supply products. Therefore, the MCHC Group has established a system at sites in Japan and overseas that expedites the reporting of facility-related accidents, material problems, or industrial accidents to senior management.

Initiatives to Reduce Environmental Impact

MOS Index S-1-1: Reduce environmental impact by 30% from fiscal 2005 levels

Initiatives to Reduce Environmental Impact during Production

Mankind has taken significant strides forward thanks to technological progress. Its immense contribution includes dramatically lower mortality rates and higher standards of living. On the other hand, the negative aspects that have accompanied this progress cannot be ignored. It has increased pollutants and greenhouse gas emissions, causing environmental problems.

In response, the MCHC Group has endeavored to conduct corporate activities in consideration of the environment while contributing to technological development through its businesses by incorporating the MOS concept as a benchmark for business management and reducing emissions of substances that impact the environment.

Specifically, we identified substances that impact the environment. These are greenhouse gases (GHG), which contribute to climate change; nitrogen oxides (NOx) and sulfur oxides (SOx), which contribute to air pollution; nitrogen in wastewater, which contributes to water pollution; and volatile organic compounds (VOCs), which may affect human health adversely.

To make our emissions of these substances into a single, readily understandable benchmark, we prepared a unique environmental impact index that we calculate by giving CO2 a relative value of 1. We then used this figure as a benchmark for initiatives to reduce environmental impact. (MOS Index S-1-1)

Launched in fiscal 2011, the MCHC Group's medium-term management plan, APTSIS 15, calls on the Group to reduce environmental impact by 30% from fiscal 2005 levels by fiscal 2015.

In fiscal 2012, by stepping up heat recovery and continuing other energy-saving activities and maintaining VOC reductions, we reduced environmental impact by 27% from fiscal 2005 levels. In fiscal 2013, we will continue pursuing the 30% reduction target by lowering CO2 emissions through energy-saving initiatives.

Activities at Operating Companies

Initiatives to Reduce GHG Emissions and Energy Consumption

Among the environmental issues the chemical industry faces, tackling climate change must be its highest priority. Therefore, the MCHC Group has been making a concerted effort to reduce GHG emissions for many years. Under our medium-term management plan, APTSIS 15, we have incorporated two types of reduction into a management index and will implement them through the KAITEKI Project; one index is reduction of GHG emissions arising from our manufacturing and another is reduction resulting from providing products that generate lower emissions when used. One of this project's tasks, based on MOS Index S-1-1, is to reduce the GHG emissions of operating sites in Japan by 17% from fiscal 2005 levels.

Fiscal 2012 saw a significant 21% reduction in greenhouse gas emissions from fiscal 2005 levels. However, compared with fiscal 2011 they were up 6%. This was attributable to a pick-up in manufacturing and an increase of emissions due to the purchased electricity resulting from a rise in the proportion of thermal power generation compared with the sluggish manufacturing in fiscal 2011 due to the Great East Japan Earthquake and an economic slowdown.

Energy Consumption (Domestic MCHC Group)
Calculation Standards for Energy Consumption
Electricity consumption volumes are converted to joules using the coefficients stipulated by the Act on the Rational Use of Energy (9.97GJ/MWh for daytime use, 9.28GJ/MWh for nighttime use, and 9.76GJ/MWh for other use). In fiscal 2012, we adjusted the categories for activities to be included based on the Act on the Rational Use of Energy. Data for prior years has been restated in light of this change.

In fiscal 2012, energy intensity, which is energy consumed per unit of domestic net sales, was mostly unchanged. However, at our manufacturing sites, we are proactively improving energy intensity in accordance with the Japan Business Federation's voluntary target. We are reducing GHG emissions steadily by improving these energy-saving intensities.

In addition, operating companies are improving manufacturing processes and adapting logistics and sales activities to further reduce GHG emissions.

Recent years have seen calls for companies to identify and disclose not only GHG emissions stemming from their manufacturing but also those resulting from the delivery to plants of raw materials purchased, customers' use of products, and the disposal of products. These are known as Scope 3 emissions. In response, the MCHC Group identified its Scope 3 emissions in Japan and began disclosing them in fiscal 2012. Going forward, we intend to extend the reach of this initiative to include overseas companies. Furthermore, we plan to prepare a carbon footprint system that will calculate and disclose GHG emissions for individual products, from raw material purchasing through to delivery to customers.

Moreover, from fiscal 2012 we began receiving third-party assurance for our disclosure of GHG emissions in Japan, including Scope 3 emissions.

Scope 3 Emissions (Domestic MCHC Group)

Scope 3 category GHG emission volumes (million tCO2e)
Purchased goods and services 9.3
Fuel- and energy-related activities not included in scope 1 or scope 2 0.8
Use of sold products 19.1
End-of-life treatment of sold products 11.2
Total 40.4

Emissions volumes are calculated in accordance with the Greenhouse Gas Protocol's Corporate Value Chain (Scope 3) Accounting and Reporting Standard as well as the World Business Council for Sustainable Development's Guidance for Accounting & Reporting Corporate GHG Emissions in the Chemical Sector Value Chain. The Company tracks and discloses emissions volumes for greenhouse gases emitted during the following activities. In relation to purchased goods and services, we track gas emissions from extraction, production and transportation of purchased raw materials. For fuel- and energy-related activities not included in scope 1 or scope 2, we track emission volumes associated with extraction, production and transportation of purchased fuel. In regard to use of sold products, gases emitted during combustion of sold fuel (coke, coke oven gas, etc.) are tracked. As for end-of-life treatment of sold products, emissions are tracked from combustion and decomposition reactions accompanying disposal of sold petrochemicals. Emissions covered under other categories of scope 3 are not disclosed as these emissions have been judged to be insignificant in volume.

Activities at Operating Companies

Trend in MOS Index S-1-1 Results (Domestic MCHC Group)
*In-house comparative index scaling CO2 to 1
NOx/SOx Emissions (Domestic MCHC Group)
Total Nitroen in Discharged Water (Domestic MCHC Group)
PRTR Chemical Substance Emissions (Domestic MCHC Group) Thoushand tonnes
GHG Emissions (Domestic MCHC Group) Thoushand tonnes of CO2e
Calculation Standards for Greenhouse Gas Emissions
For greenhouse gases covered by the Act on the Rational Use of Energy and Act on Promotion of Global Warming Countermeasures, the Company's calculations are in accordance with the methods stipulated by these laws. For gases not covered by either law, the Company develops calculation methods for each individual gas based on consideration such as the balance of chemical reactions. In fiscal 2012, we adjusted the categories for activities to be included based on the Act on the Rational Use of Energy. Data for prior years has been restated in light of this change.
Particulate Emissions from Industrial Sources (Domestic MCHC Group)
VOC Emissions (Domestic MCHC Group)

Initiatives to Save Resources

Initiatives to Reduce Rare Metal Usage

MOS Index S-2-2: Reduce cumulative rare metal usage by 1,200 tons through improving processes and innovating products

At the MCHC Group, we are helping to counter resource depletion by reducing rare metal usage.

  1. Initiatives to reduce rare metal use in products
    We will reduce the use of particularly rare metals by switching to cathode materials of lithium ion batteries that include less of the particularly rare metal cobalt but realize the same or better performance.
  2. Initiatives to use less rare metals in manufacturing processes
    We are using less rare metals in catalysts while improving productivity.

Mainly through the two above-mentioned initiatives, we reduced the use of rare metals by 170 tons in fiscal 2012. Through continuation of these initiatives, we plan to reduce cumulative rare metal usage by 1,200 tons by fiscal 2015.

Initiatives to Reduce Waste

To contribute to the formation of a recycling society, the MCHC Group aims to reduce landfill waste and achieve zero emission by recycling and reducing waste generation. Because each business format emits different types of waste, we are advancing initiatives based on separate targets and achievement plans for each operating company.

Activities at Operating Companies

Industrial Waste Generated
Landfill Disposal

Initiatives to Preserve Water Resources

MOS Index S-2-4: Provide 900 million tons of reusable water through our products

The MCHC Group views preserving water resources as an important part of environmental preservation and advances initiatives accordingly.

We make efforts to reduce our business activities' impact on water resources and to contribute to resolving water supply and demand issues through our products that help preserve water resources.

Efforts to reduce our impact on water resources include lowering water intake by reusing cooling water rigorously resulting in preserving water sources and managing wastewater quality appropriately resulting in maintaining water quality of seas and rivers.

Furthermore, to contribute to solving water supply and demand issues through our products, we develop and market products with water purification capabilities. Our products enable water resources that were unusable previously to be usable industrially and water that used to be discharged as sewage to be reusable within operating sites; as a result, we preserve water resources. As part of these initiatives, in fiscal 2013 we established "aiding the resolution of water problems through our products" as a new benchmark.

Water Usage

Initiatives to Promote Biodiversity Preservation

Biodiversity is indispensable for the realization of a rich, comfortable life for all of humanity. It is connected to our food and water, rich soil and fuel, and the quality of the air we breathe. The very habitat of creatures around the world, global cultural diversity, and the scientific knowledge depend on it. MCHC is devising the "Mitsubishi Chemical Holdings Group Biodiversity Preservation Policy"  to aim at the realization of a sustainable society.

Concrete Initiatives

The MCHC Group endorsed the Declaration of Biodiversity by Keidanren* in 2010 and began focusing on how to reduce its business activities' effect on biodiversity. As the first stage of this initiative, we are conducting basic analysis to determine the effect of operations on ecosystems, which companies in the chemical industry should examine as a priority. Referring to the Japanese Ministry of the Environment's Guidelines for Private Sector Engagement in Biodiversity, we are reevaluating operating sites by adding evaluations of their effect on biodiversity to existing evaluations of environmental preservation. As a model establishment, we have evaluated Mitsubishi Chemical's Yokkaichi sites, and in fiscal 2012 we evaluated Mitsubishi Rayon's Otake Production Center. We rechecked compliance with laws and regulations related to biodiversity and our activities that help preserve biodiversity, such as cleanup activities in the areas surrounding plants and the prevention of damage to ecosystems arising from invasive alien species. In conjunction with these efforts, we analyzed the use of industrial water and the emissions of chemicals. These studies confirmed that the production sites do not have environmental impacts affecting biodiversity. Through our business activities and their life cycles, we will perform actions to preserve biodiversity.

  • *Declaration of Biodiversity by Keidanren: Issued in March 2009 by Nippon Keidanren (Japan Business Federation), this declaration comprises seven main goals, including calls to aim for corporate activities in harmony with the natural environment and to promote corporate management for sustainable resource use.

Use of Genetically Modified Organisms

Our use of genetic engineering technology including handling and labeling of products that we manufacture using genetically modified organisms comply with the applicable laws and regulations of each country or region and appropriately established in-house rules.

Initiatives to Realize Product Liability

Safety Management for Chemicals

MOS Index C-3-5: Confirm product safety according to GPS for 70% of products

In recent years, chemicals management has become more robust worldwide. An initiator of this trend was the 2002 World Summit on Sustainable Development (WSSD), often called the Earth Summit 2002 or Johannesburg Summit, which advocated chemicals management so that chemicals are produced and used in ways that minimize significant adverse impacts on human health and the environment as a 2020 goal.

Aiming to achieve the WSSD's 2020 goal, the International Council of Chemical Associations (ICCA) is promoting voluntary initiatives in the chemical industry under its Global Product Strategy (GPS)*1, which emphasizes risk-based chemicals management throughout supply chains and disclosure of risk management information on chemicals and products.

Sympathizing with the ICCA's stance, the MCHC Group launched GPS initiatives in fiscal 2009. Since then, we have been steadily assessing the risks inherent in the chemicals we manufacture, managing them appropriately based on assessment results, and compiling and publishing the results as GPS Safety Summaries.

By fiscal 2018, the MCHC Group aims to complete GPS assessments of its high priority chemicals. In addition, we have included an achievement percentage for GPS assessments as a benchmark: MOS Index C-3-5.

  • *1 This strategy calls on companies to minimize risk inherent in chemicals throughout supply chains by conducting risk assessments of their chemicals, implementing management approximately in light of risks identified, and releasing information on the safety and risks of products to customers and society at large.

Activities at Operating Companies

Initiatives to Manage and Provide Chemical Information of Products

MOS Index S-3-1: Achieve an 80% toxic substance inspection rate on purchased items

The MCHC Group believes information on the chemicals that products contain is critical for their use and disposal. Accordingly, based on a unique green purchasing investigation system, we investigate the toxic substances included in products purchased from suppliers. (MOS Index S-3-1)

Also, in Japan and overseas we are steadily advancing efforts to provide Safety Data Sheets*2 pursuant to the Globally Harmonized System of Classification and Labeling of Chemicals*3.

  • *2 Documents including information on chemicals' properties and hazardousness and related safety measures and emergency measures that companies provide when transferring chemicals or products to other companies
  • *3 An internationally harmonized system of classification criteria and labeling methods relating to the hazardousness of chemicals

Initiatives for Logistics

With a view to achieving efficient logistics in line with the concept of KAITEKI, the MCHC Group is further improving logistics efficiency, energy-saving, and safety.

In energy-saving efforts, we aim to realize environment-friendly logistics by promoting the improvement of loading ratios and a modal shift to railway freight transport. In addition, the Group is encouraging its 10 Group companies that are specified consigners under Japan's Partially Amend Act on the Rational Use of Energy to share information on measures. In another initiative, we are working with logistics companies to reduce CO2 emissions by upgrading equipment. For example, this initiative is introducing dedicated ships installed with friend fins or contra-rotating propellers.

As for safety, the Group uses Safety Data Sheets to conduct education on the properties of products it deals with and how to handle them, and we share safety information throughout the Group. We have built systems to prevent sudden accidents during transit and storage by sharing information internally on the properties of particularly hazardous chemicals, their transportation routes, and other aspects of logistics.

Activities at Operating Companies

Environmental Accounting

The MCHC Group takes measures to preserve the environment, including the strengthening of measures to reduce emissions of air pollutants and wastewater management measures. In fiscal 2012, the MCHC Group invested ¥3.7 billion and recognized expenses of ¥35.4 billion in relation to such measures. Going forward, we intend to continue environmental preservation initiatives.

Activities at Operating Companies

Participation in Developing of International Standards and Public Policy

As a member of the Japan Chemical Industry Association (JCIA), MCHC is involved in investigating and researching safety and environmental issues and developing related countermeasures. Through its activities with JCIA, we participate in the management of the ICCA. In this capacity, we work to solve issues common to chemical companies worldwide, such as chemicals management and climate change countermeasures.

Also, we are directly involved in creating an international framework for managing, disclosing, and communicating information regarding chemicals, which the Joint Article Management Promotion-consortium (JAMP) is promoting.

Furthermore, in fiscal 2012 we participated in the following initiatives.

  • Chaired the ICCA's Energy & Climate Change Leadership Group. Prepared technological roadmap and life cycle assessment guidelines, and participated in COP18* side event.
  • Participated in the ICCA's Chemical Policy & Health Leadership Group as a member. Developed guidance on the methods of assessing risk associated with chemicals and participated in activities to spread GPS initiatives in Asia.
  • In the World Business Council for Sustainable Development's chemical sector project, participated in development of operational guidelines for the chemical sector on calculating GHG emissions under Greenhouse Gas Protocol Scope 1, 2, and 3.
  • In the World Economic Forum's chemical sector project, participated in development of basic guidelines for sustainability management in the chemical industry.
  • * COP18: 18th Conference of the Parties to the United Nations Framework Convention on Climate Change, held in Qatar in 2012