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For life, living, and the living environment. Responsible Care 2001 Edition Responsible Care Report: Environmental Preservation, Product Safety, Operational Safety and Health 2001 Edition Responsible Care Report: Environmental Preservation, Product Safety, Operational Safety and Health

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Page 1: Environmental Preservation, Product Safety, Operational ...Environmental Preservation, Product Safety, Operational Safety and Health 2001 Edition Responsible Care Report: ... methyl

For life, living, and the living environment.

Responsible Care

2001 Edition

Responsible Care Report:

Environmental Preservation, Product Safety, Operational Safety and Health

2001 Edition

Responsible Care Report:

Environmental Preservation, Product Safety, Operational Safety and Health

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MESSAGE FROM THE PRESIDENT

The constant transformation which the Asahi Kasei Group has undergone ever since its establishment is the result of a directed evolution and growth in accord with the times, and our products now find use in practically every field of human activity.

The ecological sustainability of our wide-ranging operations is ensured in accord with the Basic Credo of the Asahi Kasei Group adopted on January 1, 2001, which includes contribution to human life and human livelihood as basic tenets.

We have long been committed to the securement of environmental, product, and operational safety for our employees, the communities in which we work, and society, through our comprehensive ESH efforts. We have reduced the environmental burden of our operations, improved product safety informed by careful determination of potentially harmful effects, and enhanced operational safety throughout the corporation. In each of these areas, we have committed our material and intellectual resources to the advancement of environmental protection, product safety, and workplace hygiene and health. Greater thoroughness and vitality was brought to the comprehensive effort through the introduction of our Responsible Care initiative, inclusive of all ESH-related issues, in 1995.

As an essential part of our corporate responsibility both domestically and internationally, and in concert with our Responsible Care initiative, we will continue our concerted effort for improvement in environmental, product, and operational safety throughout all the corporate activities from R&D to production and marketing.

As a measure to build trust and understanding, an important aspect of our Responsible Care program is the open provision of information regarding ESH issues in the Asahi Kasei Group. This report describing the state of our ESH activities and efforts during fiscal 2000 (ended March 31, 2001) is the latest in a series of reports we publish each year, as a key element of our Responsible Care program. I hope you will find it informative, and welcome any questions or comments you may have.

Kazumoto YamamotoPresidentJuly 2001

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Asahi Kasei Group Overview

Basic Credo of the Asahi Kasei Group

Basic Corporate Policy

Responsible Care Activities of the Asahi Kasei Group

Environmental Protection

Product Safety

Safety and Health

Education and Training

Environment-friendly Products and Technologies

Asahi Kasei Group Locations and Plants

Awards Based on ESH Results

Frequently Asked Questions

Independent Review Report

1

3

4

5

10

24

28

33

37

41

43

44

48

Asahi Kasei Group 2001 Responsible Care ReportThe Japanese Ministry of the Environment's Environment Report Guidelines, 2001 edition, were consulted during the preparation of this report. The content of this report is not limited to environmental protection, but comprises information related to all of our Responsible Care activities, including product safety, operational safety, and workplace hygiene. We have revised the content of the report based on the feedback that we have received from readers of previous years' reports, and enhanced the presentation of information for greater ease of understanding.

This year, the purview of the report was expanded to include all domestic operations of the Asahi Kasei Group, as shown on p. 41. Note that this expansion has resulted in an increase in the number of subsidiaries and affiliates included in the scope of the report this year.

The most recent data contained in the report is for fiscal 2000 (April 1, 2000 to March 31, 2001). Some data is aggregated by calendar year; graphs showing this data indicate "calendar year."

This report is published each year in July. Our first ESH report was published in 1992, and we have published reports each year since 1997. This year's report is our seventh.

Contents Responsible Care

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Tokyo Head Office: 1-1-2 Yurakucho, Chiyoda-ku, Tokyo 100-8440 Japan

Phone: +81-(0)3-3507-2060, Fax: +81-(0)3-3507-2495

Osaka Head Office: 1-2-6 Dojimahama, Kita-ku, Osaka 530-8205 Japan

Phone: +81-(0)6-6347-3111, Fax: +81-(0)6-6347-3077

Paid-in capital:

Consolidated net sales

Consolidated group employees

Net sales by sector

Major products

Asahi Kasei Group Overview

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Chemicals and Plastics34.0%

Housing and Construction Materials34.1%

Fibers and Textiles10.6%

Special Products and Services21.3%

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asei

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1,171,845 1,194,4621,269,414

29,26326,580

1998 1999 2000

1998 1999 2000

26,695

0

300000

600000

900000

1200000

1500000

0

5000

10000

15000

20000

25000

30000

CHEMICALS AND PLASTICS

- Ammonia, nitric acid, caustic soda, acrylonitrile (AN), styrene monomer, methyl methacrylate (MMA) monomer, adipic acid, high-compound fertilizers, Suntec™ polyethylene (PE), polystyrene (PS), Stylac™-AS styrene-acrylonitrile, Stylac™-ABS acrylonitrile-butadiene-styrene, latexes, polymethyl methacrylate, synthetic rubber, thermoplastic elastomers (TPEs).

- Tenac™ polyacetal, Xyron™ modified polyphenylene ether (mPPE), Leona™ nylon 66, molding machine purging agent.

- Saran Wrap™ food wrapping films, Ziploc™ food storage bags, films, sheets, foams.

- Coating materials, Avicel™ microcrystalline cellulose, industrial cleaning agents, bonded anchors, industrial explosives, defense explosives, metal cladding, APR™ photosensitive resins, printing plate making systems.

HOUSING AND CONSTRUCTION MATERIALS

- Hebel Haus™ houses, Hebel Maison™ and other apartments, condominiums, remodeling, real estate, residential land development.

- Hebel™ autoclaved lightweight concrete (ALC) panels, piles, Neoma™ foam insulation panels, artificial fish reefs.

FIBERS AND TEXTILES

- Cashmilon™ acrylic staple, Pewlon™ acrylic filament, Leona™ nylon 66 filament, polyester filament.

- Bemberg™ cuprammonium rayon, viscose rayon.- Roica™ elastic polyurethane filament, Eltas™ spunbond,

Bemliese™ nonwoven cellulose filament, Lamous™ artificial suede.

SPECIAL PRODUCTS AND SERVICES

Electronics- Sunfort™ photosensitive dry film resist (DFR), glass fiber fabric.- Pimel™ Photosensitive polyimide, pellicles.- LSIs, Hall elements.Membranes and Systems- Microza™ ultrafiltration and microfiltration membranes and

systems.- Hipore™ fine porous membranes.- Ion-exchange membranes, electrolysis and electrodialysis

systems.Biotechnology and Medical Products- Elcitonin™, Bredinin™, and other pharmaceuticals.- Pharmaceutical intermediates, feed additives, diagnostic

reagents.- Artificial kidneys, Sepacell™ leukocyte reduction filters, blood and

plasma filters.- Planova™ virus removal filters.- Contact lenses.Engineering and Others- Plant, equipment, process engineering.- Fukumusume™ and other sake, shochu, Hi-Liki™ and other

shochu fizz, salt.

103,388 million (as of March 31, 2001)

Fisc

al y

ear

Fisc

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The history of the Asahi Kasei Group is a history of growth. The first three milestones came in rapid succession: the founding of Nihon Chisso Hiryou K.K. (Japan Nitrogeneous Fertilizer Company) by Shitagau Noguchi, the start of ammonia production by the Casale process at Nobeoka, Miyazaki Prefecture in October 1923, and the start of rayon production at Asahi Silk Weaving Co., Ltd., Zeze, Shiga Prefecture in the following year.

Utilizing this ammonia, Japan Bemberg Fiber Co., Ltd. began production of Bemberg™ rayon by the cuprammonium process in June 1931, and in March of the same year the Nobeoka plant of Nihon Chisso Hiryou was spun off and established as Nobeoka Ammonia Fiber Co., Ltd., the formal establishment date of Asahi Kasei Corporation.

The first decades were a time of growth through expansion in the production of industrial chemicals and chemical derivatives such as caustic soda, chlorine, fertilizers, nitrocellulose and industrial explosives, Bemberg™ and viscose rayon cellulosic fibers (viscose rayon production scheduled to end September 2001), and Asahi Aji* flavor enhancer. The years following World War II began broader ranging expansion into new fields, which has brought Asahi Kasei to the forefront of the Japanese chemical industry.

Fibers and TextilesBemberg™ and viscose rayon were

complemented with Cashmilon™ acrylic staple fiber in May 1959, followed by nylon 6 filament in February 1964 (production ended June 1994), polyester filament in July 1966, Leona™ nylon 66 filament in June 1970, Roica™ elastic polyurethane filament in February 1971, and spunbond nonwoven fabric in September 1973, to establish Asahi Kasei as a comprehensive maker of cellulosic and synthetic fibers. In 1994, Asahi Kasei Textiles, Ltd. and holdings in Nippon Synthetic Fibers Co., Ltd. were absorbed, for integrated fiber operations over the full range of R&D, production, and marketing, from materials to textiles.

Chemicals and PlasticsWe began commercial production of

acrylonitrile monomer in 1962 and synthetic rubber in 1964. With the start-up of our ethylene plant in April 1972, our Mizushima petrochemical complex became the key supply base for our operations in petrochemicals and derivatives. Plastics production began with PMMA in January 1965, and was rapidly followed by HDPE, Tenac™ polyacetal, and Leona™ nylon 66. In April 1975, we led the world with chlor-alkali production using the ion-exchange membrane process. In October 1982, the operations of Asahi-Dow in styrenic resins, Xyron™ m-PPE, LDPE, plastic foams, and Saran Wrap™ and other polyvinylidene chloride resin products were merged into the rapidly expanding product stream. Specialty chemicals operations include photosensitive resins and coating materials.

Housing and Construction MaterialsConstruction materials operations began with

the production of Hebel™ autoclaved lightweight concrete in August 1967, which was soon followed by the production of autoclaved high-strength piles and then autoclaved concrete steel composite piles. Most recently, the Neoma™ high-performance phenolic foam insulation panel

was commercialized in October 2000. Housing operations began in 1972 with the introduction of the quality Hebel Haus™ product line. From the beginning, their market leading design and ALC construction have brought rapid and continuing growth, throughout all targeted urban and metropolitan areas, led by innovations in three-story homes, two-generation homes, and most recently the Long Life Home concept.

Special Products and ServicesA major milestone in the development of

operations in the electronics sector has been the growth of Asahi Kasei Microsystems Co., Ltd., since its establishment in 1983, driven by market-leading innovations in LSIs, crystal oscillator ICs and other devices for mobile phone and other demanding applications.

Our first ion-exchange membrane plant in Kawasaki was completed in 1961, and other major milestones, marking world-leading advances, were achieved in the development of ion-exchange membranes and membrane processes for chlor-alkali and salt production since that time. Membranes and systems operations also include microporous membranes for use as lithium-ion battery separators and hollow-fiber membrane systems for ultrafiltration and microfiltration.

The development of an extensive range of bulk and intermediate pharmaceuticals began in 1970. Major developments included the introduction of our first anti-cancer agent in 1978 and first thrombolytic agent in 1991. In 1992, the pharmaceuticals operating base, market position, and R&D effort were reinforced and expanded by the acquisition of Toyo Jozo. Asahi Medical was established in 1974 for operations in artificial kidneys and other medical devices.

The 1992 Toyo Jozo merger also brought our entry into alcoholic beverages operations. Foods operations, including the Asahi Aji* flavor enhancer first marketed in 1935, were divested to Japan Tobacco Inc. in July 1999.

Today the drive continues, for new advances in both established and leading-edge operations that will write the future history of growth.

* Registered trademark of Japan Tobacco Inc.

History of GrowthResponsible Care

Casale-process ammonia monument.

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The Basic Credo of the Asahi Kasei Group was formulated to clarify our identity, objectives, and principles of action

as we move forward into the 21st century.

We the Asahi Kasei Group, through constant innovation and advances based in science

and the human intellect, will contribute to human life and human livelihood.

1. We will create new value, thinking and working in unison with the customer, from the

perspective of the customer.

2. We will respect the employee as an individual, and value teamwork and worthy

endeavor.

3. We will contribute to our shareholders, and to all whom we work with and serve, as

an international, high earnings enterprise.

4. We will strive for harmony with the natural environment and ensure the safety of our

products, operations, and activities.

5. We will progress in concert with society, and honor the laws and standards of society

as a good corporate citizen.

Breakthrough - Together

Move beyond the current limits, open the path, share the advance...

Focus - Customer

Development - Global

Dynamics - Group

Ensuring environmental protection, product safety, and operational safety throughout all business activities has long been recognized as a fundamental obligation of the Asahi Kasei Group, and public interest has heightened as awareness of global environmental issues has grown.

Environmental protection issues today, including global warming and endocrine disrupters, are worldwide in scope. The rational use of raw materials, energy conservation, recycling, and minimization of wastes and effluents are essential for ecology and preservation of natural resources.

Product development from the perspective of the customer, thoroughgoing quality control, and provision of safety information and guidance to ensure safe and proper product use are important aspects of product safety in recognition of our product liability obligations.

Operational safety is an essential part of the corporate foundation. The level of safety is continuously heightened, with each employee bearing responsibility.

All ESH activities of the Asahi Kasei Group are integrated in our voluntary Responsible Care program. We recognize that simply observing laws and regulations is not sufficient to effectively contend with certain ESH issues such as global environmental problems, and are determined to continue to improve environmental protection measures on a voluntary basis.

Basic tenets

Guiding precepts

Action guideline

We will strive for harmony with the natural environment and ensure the safety of our products, operations, and activities.

Basic Credo of the Asahi Kasei Group

................................Act with the customer as the starting point...........................Act in a global field of vision.

................................Act for a group structure of independent

enterprises in mutual rivalry.

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The basic tenets, guiding precepts, and action guideline of theBasic Credo of the Asahi Kasei Group are fulfilled in accordance with the established

basic corporate policies for environmental preservation, product safety,and operational safety.

Environmental Preservation

Product Safety

Operational Safety

- New technologies and products are developed given full consideration of all

environmentally relevant knowledge and information available worldwide.

- Ecology and the preservation of natural resources are given prominent consideration in

the selection of production materials, with the use of recycled materials a key objective.

- Waste, emission, and effluent are minimized through rational use and storage of raw

materials, process materials, and fuel, and the advancement of energy conservation.

Proper treatment and disposal are confirmed.

- Plants are operated with due consideration for, and constant effort to improve, the

local environment.

- Information related to environmental aspects of operations is disclosed to improve

public transparency.

- Product development is guided by a full and accurate perception of the customer's

needs and standpoint.

- Thoroughgoing quality control and constant enhancement of process technology and

know-how is ongoing in all phases of production.

- Safe and proper use of products is promoted through the provision of safety

information and effective guidance.

- Full, effective consideration is given to the effects of products on safety, health, and the

environment throughout their life cycle of production, use, and final disposal.

- Safety is an essential part of the corporate foundation, and the base of every corporate

activity.

- Safety is secured by all employees, with each individual bearing responsibility.

- The level of safety is continuously heightened through a "plan-do-check-act" cycle.

- Risks are continuously and unrelentingly evaluated, mitigated, and eliminated.

Responsible Care PoliciesResponsible Care

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Responsible Care Activities of the Asahi Kasei Group

5

The Concept of Responsible Care

Historically, progress in dealing with pollution and maintaining safety in Japan was achieved through legal regulation and administrative guidance. However, with technology becoming increasingly advanced and complex, and the pace of technological innovation rising, simple application of uniform rules is no longer sufficient.

At the same time, concern has arisen that global environmental problems such as global warming and stratospheric ozone depletion may even threaten the future of human existence. As a solution to such problems, ordinary measures to prevent environmental pollution are insufficient, and recognition has emerged that corporations must not only satisfy legal regulations but also voluntarily and proactively engage in environmental protection activities based on a comprehensive understanding and awareness of the effects that their business operations have on the environment.

Further, as business activities become increasingly global, there is a heightened need for unified environmental and safety standards which are recognized across national boundaries. The establishment of international standards for product quality and environmental management systems reflects this trend, in response to the demand for management systems which are international, impartial, and transparent. The adoption of common international standards has also come to serve an essential role in efforts to heighten the public's understanding of corporate activities.

It was against a background of such trends that Responsible Care was conceived in Canada in 1985. In 1995 the Japan

Responsible Care Committee was established, with Asahi Kasei among the founding members. While Responsible Care originated in the chemical industry, the Responsible Care program at the Asahi Kasei Group is implemented comprehensively throughout all operations, including non-chemical operations.

EnvironmentalPreservation

ISO 14001

Responsible Care

CommunityOutreach

Safety and HealthProduct Safety

ISO 9000series

Responsible CareResponsible Care represents the commitment and initiative of the chemical industry to secure and im-prove safety and environmental protection at every step of the product life-cycle - including research, development, production, sale, distribution, use, and disposal - through the determination and re-sponsibility of each member corporation. Respon-sible Care entails ongoing review and improve-ment of business activities, for environmental pro-tection ranging from the living environment of local communities to the global environment, and to protect the safety and health of customers, the public, and employees.

Responsible Care at Asahi Kasei

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Responsible Care implementation

Corporate regulations for Responsible Care management have been enacted for efficient implementation of Responsible Care throughout the Asahi Kasei Group. The figure below shows the roles of Responsible Care implementation organizationally.

Each year, the Responsible Care Committee, chaired by the President of Asahi Kasei and composed of the internal company Presidents (previously General Managers of the business unit Administrations), and the General Managers of corporate-level

administrative departments and regional Offices with responsibility for Responsible Care implementation, reviews the previous year's record and determines a new comprehensive yearly plan for all activities related to ESH which comprise the Responsible Care initiative. Based on the plans determined by the Responsible Care Committee, the committee members responsible for implementation then determine objectives and plans for specificexecution by each Department and location.

President

Presidents of internal companies*

*Responsible for implementation within their respective organizations.

General Managers, regional Offices*

General Managers, corporate-level administrative departments*

General Manager, Environment, Safety & Production Technology Administration

Responsible CareCommittee

Responsible Care Committee.

Note: Internal company structure adopted June 28, 2001.

Responsible Care

Closing remarks from the Chair (excerpts)- ESH is an important element of the

corporate foundation, and the base of every corporate activity.

- The preparation of manuals, training, and follow-up are essential for the prevention of workplace accidents.

- Any environmental legacy from past operation has to be cleaned up, despite the cost. We have an undeniable corporate responsibility to do so - if we won't recognize that, we shouldn't be in business.

- Environmental and safety results will be reflected in internal company performance evaluations.

The 7th Responsible Care Committee Meeting (June 4, 2001)Reports were presented on fiscal 2000 results of environmental protection and operational safety activities, product safety activities, energy conservation activities, and amendments to relevant corporate regulations, including the corporate regulations for Responsible Care management.

(responsible for oversight)

Responsible Care SecretariatEnvironment & Safety Department,Quality Assurance & Product SafetyDepartment

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The Responsible Care management system at the Asahi Kasei Group employs a plan-do-check-act cycle for systematic and continuous reevaluation and improvement of EHS activities. Internal company Presidents and General Managers of each regional Office are required to conduct yearly internal audits of the Responsible Care system, execution, and results within their internal companies and regions, and prepare yearly reports based on these audits for presentation to the

Responsible Care Secretariat. Based on these audit reports, the General Manager of the Environment, Safety & Production Technology Administration, with ultimate responsibility for Responsible Care oversight, conducts audits of each internal company (previously business unit Administration), and reports the results to the Responsible Care Committee, where they are used to guide revisions to the Responsible Care policies.

Responsible Care audit

Responsible Care management system

President General Manager of the Environment, Safety & Production Technology Administration

Presidents of internal companies,General Managers of regional Offices

Responsible Care policies

Review (Responsible Care Committee)

Responsible Care guidelines

Policies and targets ateach internal company

Plans

Implementation

Audit

Review

Audit

Responsible Care (ESH) Report

RC DoAct

Check

Plan

RC DoAct

Check

Plan

Responsible Care Management System

Fiscal 2000 Responsible Care AuditsResponsible Care audits of each internal company for fiscal 2000 performed by the General Manager of the Environment, Safety & Production Technology Administration comprised the items shown at right.

- Progress in responding to issues designated for study as a result of the previous audit.

- Progress in implementing the year's Responsible Care plans.

- Revision and preparation of operational safety standards in accordance with the preparation guidelines.

- Incidence of environmental or occupational accidents, and measures taken to prevent recurrence.

- Product safety information, inquiries, and inquiry responses.

- Measures related to recycling of product, containers, and packaging.

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Methods of Responsible Care ImplementationThe Asahi Kasei Group utilizes ISO 14001-compliant environmental management systems and ISO 9000 series-compliant quality management systems as methods to

implement Responsible Care activities. We are considering the adoption of occupational health & safety management systems (OHSMS) compliant with guidelines published by the Japanese Ministry of Health, Labor and Welfare.

Medium-term Responsible Care policies and objectivesOur successive three-year programs for safety and environmental protection have grown and developed in scope and depth since their initiation in 1982. Following study and preparation during fiscal 2000, the succession has been renewed as the Medium-term Responsible Care Program, with the first new

three-year program beginning in fiscal 2001.Group-wide guidelines for determining

objectives for improvement are shown below. Internal company Presidents and General Managers of each regional Office will determine objectives and prepare medium-term plans to achieve them in accordance with these guidelines.

Environmental management systemQuality management systemOccupational health & safety management systemEach of these is a system adopted voluntarily which utilizes specified plan-do-check-act cycles for successive and ongoing implementation - comprising policies and plans and their execution and administration, inspections and corrective measures, and review by management.

Summary of guidelines for determining plans and objectives in the Medium-term Responsible Care Program

Environmental protection

Product safety

Operational safety

Health

- Legal compliance 100% Compliance with all current national and local regulations (including accords with local authorities)- Mitigation of environmental burdens Determine medium to long-term targets with zero emission of industrial wastes as the ultimate objective.

- Not to become the defendant in any product liability litigation.

- Maintain the frequency rate* for the Asahi Kasei Group at 0.1 or less over the long term.- Systematic implementation of a plan-do-check-act cycle, through the adoption of OHSMS or an equivalent system.

- Implementation of programs to reduce the number of employees receiving cautions regarding their health following their annual checkup.

*Number of accidental deaths and injuries resulting in the loss of one or more workdays, per million man-hours worked.

Responsible Care

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The Asahi Kasei Group has constantly adapted and modified its ESH programs and activities in accordance with the public

expectations and demands of the times. A summary of notable milestones is shown below.

Milestones in the Asahi Kasei Group19671970

197119721973

1976

1980

1981

1982

1987

1988

1989

1992

1993

1994

1995

1996

1997

1998

1999

2000

Public Trends and Developments

Establishment of Asahi Kasei Group organizations for safety and environmental management. - Establishment of the corporate-level Safety and Environmental

Department. - Establishment of Environment and Safety Departments at each

administrative and production center. - Enactment of the Environment and Safety Management Regulations as

corporate-wide rules.

Establishment of the Corporate Environment and Safety Committee.

Establishment of the Environment, Safety and Health Administration, replacing the Safety and Environmental Department.Establishment of the basic corporate policy for operational safety.Establishment of the Product Safety Department within the Environment, Safety and Health Administration. Initiation of the first three-year program for safety and environmental protection.

First annual Asahi Kasei Group Environment and Safety Symposium.Certification for independent safety management of high-pressure gas plant at Mizushima.Certification for independent safety management of high-pressure gas plant at Kawasaki.Awarded the Japan Industrial Safety and Health Association prize.

Establishment of the basic corporate policy for environmental preservation.Publication of the first Environment Report.Acquisition of ISO 9000 series certification of quality management systems begins.Establishment of the corporate-level Quality Assurance and Product Safety Department. Establishment of Quality Assurance Departments at each administrative and production center.Enactment of corporate regulations for product safety management.Establishment of the basic corporate policy for product safety. Became a founding member of the Japan Responsible Care Council upon its establishment. Enactment of corporate regulations for Responsible Care management.Integration of environmental preservation, operational safety, and product safety efforts in the corporate Responsible Care initiative.Confirmed commitment to give precedence to environmental preservation, operational safety, and product safety as an underlying operational policy. Acquisition of ISO 14001 certification of environmental management systems begins.Publication of the first annual Responsible Care Report.Initiation of the sixth 3-year program for Responsible Care activities.

Establishment of the Environment, Safety & Production Technology Administration integrating the Environment, Safety and Health Administration, Quality Assurance and Product Safety Department, and Production Technology Administration. Revision of basic corporate policies for environmental preservation, product safety, and operational safety.

Enactment of the Basic Law for Environmental Pollution.Antipollution measure session of the Diet. - Enactment of environment-related laws. - Revision of the Basic Law for Environmental Pollution.

Establishment of the Environment Agency.Enactment of the Law on Industrial Safety and HygieneOccurrence of several fires and explosions at petrochemical complexes.Enactment of the Law on the Prevention of Disasters in Petroleum Industrial Complexes and Other Petroleum Facilities.

Adoption of the Montreal Protocol on Substances That Deplete the Ozone Layer.

Revision of the Fire Laws (clarification of definitions of dangerous objects).

The United Nations Conference on Environment and Development in Rio de Janeiro.Enactment of the Basic Environment Law.

Establishment of the Japan Responsible Care Council (JRCC).The 1st United Nations Framework Convention on Climate Change in Berlin, Germany.The Hanshin earthquake.

The 3rd United Nations Framework Convention on Climate Change in Kyoto, Japan.

Promulgation of the High Pressure Gas Safety Law.Enactment of the Law concerning the Promotion of the Measures to Cope with Global Warming.Enactment of the Law Concerning the Reporting of the Release into the Environment of Specific Chemical Substances and Promoting Improvements in Their Management.Enactment of the Law concerning Special Measures against Dioxins.Enactment of the Basic Law for Establishing a Recycling-based Society.

ESH Milestones

Env

ironm

enta

l Pro

tect

ion

Gro

up O

verv

iew

,B

asic

Cre

do,

RC

Pol

icy

Res

pons

ible

Car

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ctiv

ities

of t

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roup

Pro

duct

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and

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10

Environmental Protection

INPUTS OUTPUTS

On-site recycling: 4,000 tonsOff-site recycling: 120,000 tons

Off-site final disposal waste volume (landfill):27,000 tons

Effluent volume: 360 million m3

COD of effluent: 1,900 tonsEffluentwater

Products

SOX: 8,500 tons, NOX: 6,800 tonsSoot and dust: 310 tonsPriority atmosphericpollutants: 540 tonsGreenhouse gas emissions:9.1 million tons (CO2 equivalent)

Atmosphencemissions

Solidwastes

Environmental targets and results

The Asahi Kasei Group endeavors to continuously review and seek improvements in our efforts to secure environmental preservation and human health and safety in every aspect of all business activities of the Asahi Kasei Group.

In addition to meeting all criteria set forth in national and local regulations and accords with local authorities, we also strive to anticipate increasingly stringent standards and

implement measures to comply with them in advance. Environmental protection efforts are implemented by region, in accordance with the 3-year program for safety and environmental protection, based on regional data and targets. Beginning in fiscal 2001, this is the Medium-term Responsible Care Program. Collective data and targets for the Asahi Kasei Group are shown on the following pages.

Responsible Care

Conceptual flow of environmental aspects

Asahi Kasei Group operations

On-site Off-site

OUTPUTS

INPUTS

Feed-stocks

Energy

Water

R&D,

Production

Sales,

Distribution

ProductUse

Atmosphericemissions

Finaldisposal

Solidwastes

Usedpackaging

Exhaustgas fromshipment

Effluentwater

Main environmental aspects (fiscal 2000 results)

880 million liters(crude oil equivalent)

380 million m3

Feed-stocks

Energy

Water

AsahiKaseiGroupplants

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11

Preventing Global Warming

Electricity sources (fiscal 2000)*

Reduction in greenhouse gas emissionsAt the Third Conference of the Parties to the United Nations Framework Convention on Climate Change (COP3) held in Kyoto in December 1997, accord was reached regarding the reduction in emissions of 6 gases with the capacity to promote global warming. The 6 "greenhouse gases" targeted are carbon dioxide, dinitrogen monoxide, methane, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride. Efforts at the Asahi Kasei Group for prevention of global warming are as follows: - Curtailment of carbon dioxide (CO2) emission

from electricity and steam generation.- Curtailment of emissions of greenhouse

gases from production processes.

For fiscal 2000, greenhouse gas emissions (as converted to carbon dioxide equivalent) were reduced by 23% from the fiscal 1990 level. This far exceeds Japan's national target for greenhouse gas reduction of 6% from the fiscal 1990 level.

The reduction was achieved with equipment to thermally decompose dinitrogen monoxide (N2O) by-product at our adipic acid plant, which was brought on line in March 1999 to enable N2O emissions to be reduced by over 90%. The smaller reduction in N2O emissions during fiscal 2000 resulted from an equipment malfunction.

Fiscal year

CO2

SF6

PFC

HFC

N2O

CH4

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0

Hydoroelectric12%

Purchased15%

Thermal73%

* For six main sites: Nobeoka, Mizushima, Fuji, Moriyama,

Kawasaki, and Ohito.

1990 1995 1996 1997 1998 1999 2000 2001

(forecast)

1990 level

6% reduction

Clean Energy by Hydroelectric GenerationThe Asahi Kasei Group has seven hydroelectric power generation plants. The clean energy generated at these plants supplies 12% of our energy needs.

Note: CO2 equivalent conversion in accordance with the Law concerning

the Promotion of Measures to Cope with Global Warming.

Greenhouse gas emissions

Glo

bal w

arni

ng p

oten

tial

(thou

sand

s of

tons

CO

2 eq

uiva

lent

)

Hydoroerectric plant.

Env

ironm

enta

l Pro

tect

ion

Gro

up O

verv

iew

,B

asic

Cre

do,

RC

Pol

icy

Res

pons

ible

Car

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of t

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roup

Pro

duct

Saf

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12

Energy Conservation

For maximum effective utilization of limited natural resources, the Asahi Kasei Group constantly strives to increase efficiency and thoroughly conserve resources and energy.

Since fiscal 1993, we have had a target of 1% average annual reduction in unit energy consumption, as required by the Law Concerning the Rational Use of Energy (known generally as the "energy conservation law"). Measures to conserve energy include production process innovations, thorough recovery of steam, control of energy losses, and installation of inverters to control electric motors. As shown below, the results have surpassed the target each year.

100

95

90

85

80

75

701993 1994 1995 1996 1997 1998 1999 2000

Inde

x (fi

scal

199

3=10

0)

Framework Convention on Climate ChangeThe United Nations Framework Convention on Climate Change was adopted in 1995 with the objective of stabilizing the concentration of greenhouse gases in the atmosphere to prevent global warming. The Conference of the Parties (COP) to the convention is a regular meeting of signatory nations to promote smooth implemen-tation of the accord. About 170 nations met at the Third Conference of the Parties (COP3) held in Kyoto in December 1997.

Fiscal year

Unit Energy Consumption*

* In terms of kiloliters crude oil equivalent per tons product output, as converted to benchmark product.

Responsible Care

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1995 1996 1997 1998 1999 2000 2001 2002 2003

13

Reduction of Hazardous Atmospheric PollutantsThe Asahi Kasei Group implemented a The Asahi Kasei Group implemented a voluntary program to reduce the release of hazardous atmospheric pollutants with fiscal 1999 as the final year of the program. The reduction target, a 30% reduction from the fiscal 1995 level, was achieved a year early, in fiscal 1998, and in fiscal 2000 a further reduction brought release to 60% of the fiscal 1995 level.

Notable measures implemented to achieve the reduction include the following: A large reduction in release of dichloromethane, mainly used as a foaming agent component, was achieved by modifying the relative gas composition. Through further modification of the gas composition, release of dichloromethane from the foaming process is scheduled to be reduced to zero. Reduction of acrylonitrile release was achieved by improving the performance of recovery equipment.

Acetaldehyde, released from polyester polymerization and filament production processes, has been newly added to the substances surveyed and reported. Ethylene oxide, which is included in the list of substances the Japan Chemical Industry Association has designated for voluntary control, has been added to our survey program, and release amounts for previous years have been estimated.

Our second program of release reduction targets a 70% reduction from the fiscal 1999 level by fiscal 2003.

Release of dichloromethane

Hazardous Atmospheric PollutantsJapan's Air Pollution Control Law defines hazardous at-mospheric pollutants as substances which, as sources of atmospheric pollution, are believed to damage human health in case of continuous exposure. The Central En-vironment Council has prepared a list of substances, and specified 22 substances for priority action based on evi-dence of a high level health risk. The Air Pollution Con-trol Law also requires corporations to curtail and control atmospheric release of hazardous atmospheric pollu-tants on their own initiative. The following 12 substances have been identified for control due to the large amounts of their production and importation, relatively well estab-lished understanding of their behavior in the atmosphere, and recognition of their long-term toxicity: Acrylonitrile, acetaldehyde, vinyl chloride monomer, chloroform, 1,2-dichloroethane, dichloromethane, tetrachloroethylene, trichloroethylene, 1,3-butadiene, benzene, formaldehyde, and sulfides and sulfates of nickel. The Japan Chemical Industry Association recommends substitution of ethy-lene oxide in this list in place of sulfides and sulfates of nickel, as member companies only handle the latter in nominal amounts.

Release of priority atmospheric pollutants Release of tetrachloroethylene

Release of 1,3-butadiene

Fiscal year

Fiscal year

Fiscal year

1,400

1,200

1,000

800

600

400

200

01995 1996 1997 1998 1999 2000 2001 2002 2003

Rel

ease

(ton

s/ye

ar)

Fiscal year

Rel

ease

(ton

s/ye

ar)

600

500

400

300

200

100

0

Rel

ease

(ton

s/ye

ar)

1995 1996 1997 1998 1999 2000 2001 2002 2003

200

150

100

50

0

Rel

ease

(ton

s/ye

ar)

1995 1996 1997 1998 1999 2000 2001 2002 2003

600

500

400

300

200

100

0

(forecast)

(forecast)

(forecast)

(forecast)

Formaldehyde

Benzene

1,3-Butadiene

Ethylene oxide

Trichloethylene

Tetrachloroethylene

1,2-dichloroethane

Dichloromethane

Chloroform

Vinyl chloride monomer

Acetaldehyde

Acrylonitrile

Preventing air pollution

Env

ironm

enta

l Pro

tect

ion

Gro

up O

verv

iew

,B

asic

Cre

do,

RC

Pol

icy

Res

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Car

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50

40

30

20

10

0

200

150

100

50

01995 1996 1997 1998 1999 2000 2001 2002 2003

1995 1996 1997 1998 1999 2000 2001 2002 2003

1995 1996 1997 1998 1999 2000 2001 2002 2003

1995 1996 1997 1998 1999 2000 2001 2002 2003

1995 1996 1997 1998 1999 2000 2001 2002 2003

1995 1996 1997 1998 1999 2000 2001 2002 2003 1995 1996 1997 1998 1999 2000 2001 2002 2003

1995 1996 1997 1998 1999 2000 2001 2002 2003

50

40

30

20

10

0

50

40

30

20

10

0

100

80

60

40

20

0

14

Release of acrylonitrile

Relese of 1,2-dichloroethane

Release of formaldehyde

Release of benzene

Release of vinyl chloride

Release of trichloroethylene

Relese of acetaldehydeRelease of ethyene oxide

Fiscal year

Fiscal year

Fiscal year

Fiscal year

Fiscal year

Fiscal yearFiscal year

Fiscal year

Tota

l rel

ease

* (to

ns/y

ear)

Tota

l rel

ease

* (to

ns/y

ear)

Tota

l rel

ease

* (to

ns/y

ear)

50

40

30

20

10

0

50

40

30

20

10

0

Tota

l rel

ease

* (to

ns/y

ear)

Tota

l rel

ease

* (to

ns/y

ear)

Tota

l rel

ease

* (to

ns/y

ear)

Tota

l rel

ease

* (to

ns/y

ear)

Tota

l rel

ease

* (to

ns/y

ear)

50

40

30

20

10

01996 1997 1998 1999 2000 2001 2002 2003

Oita

Suzuka

Kawasaki

Ohito

Fuji

Moriyama

Mizusima

Nobeoka

Other sites

(forecast)

(forecast)

50

40

30

20

10

0

Release of chloroform

Fiscal year

Tota

l rel

ease

* (to

ns/y

ear)

(forecast)

(forecast)(forecast)

(forecast)

(forecast)

(forecast)

(forecast)(estimate)

No data

Responsible Care

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15

SOX, NOX, soot and dustSulfur oxides (SOX) are the most stringently regulated air pollutant in Japan. The Asahi Kasei Group has reduced SOX emissions through installation of flue gas desulfurization apparatus, use of low-sulfur fuel oil, use of low-sulfur by-product fuel from ethylene production, and changeover from fuel oil to LNG (liquefied natural gas). As a result of such measures, total SOX emissions in fiscal 1993 were 30% of the fiscal 1976 level, and further reduction continues, as shown in the graph below. For fiscal 2000, use of fuel with low sulfur content enabled a reduction in emission per unit product.

Measures to suppress emissions of nitrogen oxides (NOX) include installation of apparatus for their removal from flue gas and improvements to the combustion process by using burners which reduce NOX formation.

Suppression of soot and dust emissions has been achieved through the installation of electric dust collectors for their removal from flue gas and the effects of changeover to cleaner burning fuels. As a result, soot and dust emissions have been maintained far below permissible levels.

Measures to prevent water pollution at the Asahi Kasei Group include efforts both to reduce the volume of and to improve the quality of effluent. As shown in the graph, the volume of effluent has followed a gradual downward trend despite increases in the variety of products and production volumes. The increase shown for effluent volume in fiscal 2000 is the result of an increase in the number of affiliated companies included in our Responsible Care program. Chemical oxygen

demand (COD) of effluent - which indicates the level of pollution - has also followed a clear downward trend in terms of unit product, as shown in the graph. COD loads and total COD are well below permissible levels at all sites.

During fiscal 2000, there were three cases where problems or anomalies occurred in the effluent water of certain Asahi Kasei Group facilities. In each case, responsive measures were immediately performed, and no

Sulfur oxides (SOX)Sulfur oxides are formed when crude oil, fuel oil, or coal containing sulfur are used as fuel, or when industrial wastes containing sulfur are incinerated. Sulfur dioxide (SO2) is most common, but some sulfur trioxide (SO3) also forms. The term SOX is inclusive of both of these.Nitrogen oxides (NOX)Nitrogen oxides are formed in nature and during combustion at thermal power plants, factory boilers, internal combustion engines, and incinerators. The term NOX is inclusive of both nitric oxide (NO) nitrogen dioxide (NO2).

Preventing water pollution

Emission Unit emission * Permissible level (tons/year) **

10,000

8,000

6,000

4,000

2,000

0

250

200

150

100

50

0

Total NOX emissions

Em

issi

on (t

ons/

year

)

Uni

t em

issi

on(fi

scal

199

3=10

0)

1993 1994 1995 1996 1997 1998 1999 2000

Fiscal year

1993 1994 1995 1996 1997 1998 1999 2000

5,000

4,000

3,000

2,000

1,000

0

100

0

Total soot and dust emissions

Em

issi

on (t

ons/

year

)

Uni

t em

issi

on(fi

scal

199

3=10

0)

Fiscal year

1993 1994 1995 1996 1997 1998 1999 2000

40,000

30,000

20,000

10,000

0

200

150

100

50

0

Total SOX emissions

Em

issi

on (t

ons/

year

)

Uni

t em

issi

on(fi

scal

199

3=10

0)

Fiscal year

Env

ironm

enta

l Pro

tect

ion

Pro

duct

Saf

ety

Saf

ety

and

Hea

lthE

duca

tion

and

Trai

ning

Env

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enta

l Pro

tect

ion

Gro

up O

verv

iew

,B

asic

Cre

do,

RC

Pol

icy

Res

pons

ible

Car

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ctiv

ities

of t

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roup

Pro

duct

Saf

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and

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and

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* Emission per unit product as converted to benchmark product.

** At some sites, regulation by total pollutant amount applies for some pollutants

in addition to concentration limits. Permissible levels shown are the sums of

gross emission limits where they apply and concentration limits times amount

of emitted gas where they do not. Permissible levels therefore fluctuate from

year to year with fluctuations in production volumes.

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Noise, vibration, odors

Groundwater and soil contamination

16

significant effects on the surrounding environment resulted. Where appropriate, additional measures to prevent recurrence were also implemented.

Emission

* Effluent or COD of effluent, per unit product as converted to

benchmark product.

Unit emission* Permissible level (tons/year)**

Chemical oxygen demand (COD)Chemical oxygen demand is an indicator of water pollution by organic matter. COD is expressed in terms of the amount of oxygen required to chemically oxidize the organic matter contained in the water by an oxidizer.

1993 1994 1995 1996 1997 1998 1999 2000

400

300

200

100

0

200

150

100

50

0

Total effluent water volume

Effl

uenc

e (m

illion

m3 /

year

)

Uni

t em

issi

on(fi

scal

199

3=10

0)

Fiscal year

1993 1994 1995 1996 1997 1998 1999 2000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

Total COD of effluent

CO

D (t

ons/

year

)

Uni

t CO

D(fi

scal

199

3=10

0)100

0

Fiscal year

At each plant location, levels of noise, vibration, and odors are periodically measured at specified locations on the boundaries of plant grounds during specified time periods. When necessary, measures are taken to modify facilities for improvement to ensure that noise, vibration, and odors do not exceed regulatory limits or levels acceptable to the

surrounding community.Five complaints were received from

adjacent communities regarding noise or odors from our facilities during fiscal 2000. In each case, responsive measures were immediately performed.

As described in our previous reports, groundwater samples taken in fiscal 1998 near the boundary of the plant grounds at two sites in Nobeoka exceeded the permissible contamination level for chlorinated hydrocarbons. The cause of this contamination was determined to be by-product and residue containing chlorinated hydrocarbons which had been disposed of underground prior to their being designated as hazardous substances.

The buried wastes were immediately removed, and an ongoing program to draw the affected groundwater for purification by treatment with activated charcoal was begun.

As a result of progress in purification thus far, the concentration of contaminants in groundwater samples taken at the relevant locations were brought below the permissible level in fiscal 2000. Asahi Kasei and affiliated companies regularly monitor groundwater quality, and will immediately perform corrective measures if any contamination is newly discovered.

Responsible Care

** At some sites, regulation by total COD applies in addition to COD concentration

limits. Permissible levels shown are the sums of total COD limits where they apply

and concentration limits times amount of effluent water where they do not.

Permissible levels therefore fluctuate from year to year with fluctuations in

production volumes.

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17

In addition to efforts to reduce the amount of waste, we perform strict supervision of waste treatment. Loads of industrial waste for off-site treatment and disposal are recorded and managed using manifests, and our personnel periodically observe the operations of outside firms consigned to treat and dispose of waste.

Reduction of off-site final disposal volumeAs the shortage of landfill sites has become increasingly serious, reduction of waste disposal volumes has become an urgent problem in recent years. An essential means of reducing disposal volumes is to curtail waste at its source. The volume of waste generated at the Asahi Kasei Group is minimized through careful selection of feedstocks and packaging materials, and processes optimization. Useful substances are recovered for reuse or recycling as feedstock or material for other production processes. As shown in the graph at right, the volume of industrial waste transferred off site for final disposal during fiscal 2000 was reduced to approximately one fourth of the fiscal 1993 level.

Waste treatment and disposal (fiscal 2000)

1993 1994 1995 1996 1997 1998 1999 2000

120

100

80

60

40

20

0

Vol

ume

(thou

sard

s of

tons

)

Off-site final disposal waste volume

Off-site final disposal waste, by category (fiscal 2000)

Sludge33%

Others4%

Constructiondebris

7% Plastic waste27%

Glass, ceramics29%

On-site treatment Off-site treatment

(thousands of tons)

Effluent wasteWaste generated

362 (100%)

4 (1%) 187 (52%) 122 (34%) 22 (6%)

0 27 (7%)

171 (47%)

Recycling Recycling

Landfill Final disposal

Volume reduction(incineration, dehydration)

Volume reduction(incineration,dehydration)

Fiscal year

Reduction of industrial waste

Env

ironm

enta

l Pro

tect

ion

Pro

duct

Saf

ety

Saf

ety

and

Hea

lthE

duca

tion

and

Trai

ning

Env

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l Pro

tect

ion

Gro

up O

verv

iew

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asic

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Res

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Car

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Pro

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18

Zero emission of wastesThe Asahi Kasei Group has set the reduction of waste emission to zero by 2010 as a stretch target, with each internal company preparing goals and plans toward this objective. This will largely be achieved the development of technologies and innovations to minimize the generation of wastes. Any wastes still generated will then be reused or

recycled as feedstocks, eliminating the need for landfilling or simple incineration. Following is an overview of the pilot "zero emission" project at one internal company.

Zero emission project at our Fabricated Home Products Company (Suzuka Plant, Suzuka Wrap Film Plant, VDC Polymer Plant, Asahi Kasei Pax Co., Ltd.)

Generation of wastes is reduced by raising productivity, and effective uses are found for wastes that are generated. Examples of measures being implemented include thermal recycling of plastic waste for use as furnace fuel in cement and steel production. Ash is then recycled as feedstock for cement. Plastic waste is also used in place of coke as a reducing agent

for the removal of copper, lead, and other nonferrous metals from iron ore in steel production. Material recycling examples include recycling of used cardboard and scrap paper as toilet paper for use within the internal company facilities. Potential applications for other wastes are being studied, and technologies for their effective recycling are under development.

12000

10000

8000

6000

4000

2000

0

Vol

ume

(tons

/yea

r)

Trend for recycling industrial wastes, Fabricated Home Products Company

1995 1996 1997 1998 1999 2000 2001 2002 2003

Recycling

Incineration

Landfilling

Fiscal year (forecast)

RecyclingThe effective utilization of resources through reuse and recycling of wastes has been an important focus of research at the Asahi Kasei Group. It is through such research that much of the reduction in waste for disposal over the past few years has been made possible. Examples include the recycling of sludge within Asahi Kasei, and the recycling of sludge and coal ash as feedstock for cement.

We have also developed chemical recycling technology for polyester, originally for the

effective utilization of waste fibers generated in our own polyester filament plant. After studying the feasibility of applying this technology to the recycling of PET bottles, recovery technology for PET bottles was established in fiscal 2000, with large-scale PET bottle recovery and recycling operation beginning in fiscal 2001 in concert with local community associations and surrounding corporations. This PET bottle recycling operation will subsequently be expanded and enlarged.

Responsible Care

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19

ESH-related InvestmentsEnvironmental protection and safety measures have long been an important priority in the investment of management resources at the Asahi Kasei Group. A record of investments in plant and equipment modifications related to environmental and safety measures began in 1970, when the Safety and Environmental Department (presently the Environment, Safety & Production Technology Administration) was established. As shown in the figure below, these investments averaged approximately Y= 4 billion per year. Figures do not include the portion of investment in new plant and equipment related to environment and safety, or investment related to energy conservation.

Environmental AccountingWe have prepared Asahi Kasei Group Environmental Accounting Guidelines following the Guidelines for Adoption of Environmental Accounting Systems published by the Ministry of the Environment in May 2000. Trial implementation of environmental accounting for fiscal 2000 based on these guidelines was performed at two internal companies, the Chemicals and Plastics Company and Fabricated Home Products Company.

Results of cost classification through this trial are shown below. As we are still in the trial phase these classifications are not yet finalized, and we are studying methods to more accurately classify relevant expenses in order to enable a more precise accounting. Environmental accounting will be expanded incrementally throughout the Asahi Kasei Group based on the results of these trials.

Environmental accounting at the Chemicals and Plastics CompanyAs shown in the table, pollution prevention and the related management costs were the most substantial cost for Chemicals and Plastics. Within this classification are operating, management, and maintenance expenses for processing facilities to prevent air and water contamination. Global environmental protection cost indicates expenses for energy conservation such as cogeneration facilities. Resource circulation cost includes expenses for processing industrial waste and for measures to reduce the amount of industrial waste generated. Research and development cost includes expenses for development of non-halogen flame-retardant resins, and technologies for recycling waste plastic, to conserve energy in production processes, for solvent recovery, to mitigate the release of hazardous atmospheric pollutants, for resource conservation, and to reduce the amount of waste generated.

Economic benefits included a Y= 5.8 million gain on sale of valuable material, a Y= 9.6 million decrease in waste processing costs due to the reduction in waste, and a Y= 6.9 million decrease in expenses due to energy conservation. Material effects included a 13% decrease in the release of hazardous atmospheric pollutants and a 10% reduction in the amount of industrial waste for off-site final disposal compared to fiscal 1999. All air and water quality standards were maintained well within the permissible range.

Investments ESH, Environmental Accounting

70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00

140

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8

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Fiscal year

Chemicals and Plastics Environmental Accounting

(Millions of yen)

Investment Expense

Combined operating area cost

Pollution prevention cost

Global environmental protection cost

Resource circulation cost

Upstream and downstream cost

Management cost

Research and development cost

Community outreach cost

Environmental damage cost

Total

800

450

60

290

0

10

90

0

0

900

2,500

1,750

130

620

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670

730

130

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Cumulative(left-hand scale)

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Fabricated Home Products CompanyEnvironmental Accounting (Millions of yen)

Investment Expense

Combined operating area cost

Pollution prevention cost

Global environmental protection cost

Resource circulation cost

Upstream and downstream cost

Management cost

Research and development cost

Community outreach cost

Environmental damage cost

Total

210

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230

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The 13th Asahi Kasei GroupEnvironment and Safety Symposium.

Environmental accounting at the Fabricated Home Products CompanyAs shown in the table, the most substantial costs for Fabricated Home Products were for pollution prevention, including maintenance and control expenses for anti-pollution equipment and investments in equipment to mitigate the release of hazardous atmospheric pollutants, and for measures to reduce emission of wastes to zero, shown in the table as resource circulation cost. Research and development cost comprised research to mitigate hazardous atmospheric pollutants and research on biodegradable film. Upstream and downstream cost was the cost to recycle Saran Wrap™ packaging into new products. Community outreach cost was mainly for gardening in plant grounds (see p. 22), and environmental damage cost was mainly for purification of contaminated groundwater (see p.16).

Material effects included a 30% decrease in the release of hazardous atmospheric pollutants and an 11% reduction in the amount of industrial waste for simple incineration and off-site final disposal compared to fiscal 1999.

ISO 14001 certificationSites Date of certification Sites Date of certification

Kawasaki

Moriyama

Mizushima

Housing Company, Asahi Kasei Juko Co., Ltd., Shiga Plant

Asahi Kasei Metals Ltd., Tomobe Plant

Suzuka Plant

Ohito

Matsudo Plant

Fuji

Chiba Plant

Nobeoka (Nobeoka Office, Tohmi District, Nagahama District)

Shin NihonSalt Co., Ltd.

1998. 8.28

1998.10.19

1998.12.25

1999. 3.26

1999.10.22

1999.10.25

1997. 4.21

1997.12.26

1998. 3. 6

1998. 3.31

1998. 5.18

1998. 8.21

As part of our Responsible Care initiative, we are progressively adopting ISO 9000 series standards for quality management systems and ISO 14001 standards for environmental management systems at facilities and sites throughout the Asahi Kasei Group.

When the ISO 14001 standards for environmental management systems were issued, we determined that they would facilitate the reevaluation of the environmental effects of our operations, enabling the efficient and effective implementation of measures to reduce the environmental burden. The table at right shows the districts and sites which have obtained ISO 14001 certification. In fiscal 2000, the scope of certification at Nobeoka was

expanded, and further certification of additional sites will continue progressively.

Each year, production supervisors and researchers from throughout the Asahi Kasei Group gather for the Asahi Kasei Group Environment and Safety Symposium, where technologies and management techniques related safety and the environment are exchanged.

The 13th symposium was held on December 1, 2000 with four hundred attendees, including the chairman and president of Asahi Kasei, general managers of each business unit administration, each division, and each regional office, presidents of affiliated companies,

general managers of plants, production departments, and production sections, and labor union leaders.

In addition to the chairman's opening remarks entitled The Responsibilities of the Asahi Kasei Group for the Environment, the Consumer, and the Maintenance of Safety and the president's speech entitled The Environment and Safety in Corporate Management, presentations included examples of outstanding environmental and safety practices at certain business units and lessons learned from plant accidents.

ISO 14001 certification

Group Environment and Safety Symposium

Responsible Care

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21

As part of our Responsible Care initiative, the Asahi Kasei Group actively seeks to maintain a relationship of mutual understanding and cooperation with the communities in which we operate. The wide-ranging effort includes communication with the public through a variety of forums, participation in environmental conservation activities organized by public bodies, and encouragement and promotion of employee participation in community volunteer activities. Each regional location and plant enjoys broad latitude to determine their own community outreach program and activities, based on local circumstances. Following are some examples of community outreach activities and events.

Information and dialogPlant tours, school visitsPlant tours are held to allow members of the community to gain a better appreciation of our environmental and safety measures. These plant tours also provide the opportunity for dialog about any of our guests' questions or concerns. The public was invited to a plant tour at Fuji as an Environment Month event in June.

At several sites including Mizushima, Kawasaki, Wakayama, and the Asahi Vet plant at Shiraoi, students visited our facilities in cooperation with local college, high school, and elementary school study trips. Production activities and environmental preservation activities were described, and students were shown environmental facilities. At Nobeoka, Asahi Kasei Group engineers visited local schools to describe our technologies and ESH activities.

Participation in local forumsRepresentatives from our various plants actively participate in a variety of local forums and assemblies for community discussion of environmental issues. Such forums not only enable us to present our perspective, but also provide valuable opportunities for community members to express their concerns, leading to constructive discussions and exchanges of opinion.

Expansion plansAt relevant sites, public meetings are held to outline our plans for plant expansions and address community concerns about external effects of the construction work, such as noise and electromagnetic disturbance.

Regional Responsible Care forumsThe Japan Responsible Care Committee held regional public forums on Responsible Care issues, attended by representatives of relevant local governments, non-profit organizations, the media, and local associations, toexplain Responsible Care and its results. Representatives of the Asahi Kasei Group attended the forums.

Environmental Policy leafletsAt sites with ISO14001 environmental management systems, Environmental Policy leaflets were prepared and made available to the public.

Lesson on Wastes and the Environment at Urashiro Middle School.

Lesson on Conserving Water at Hori Elementary and Middle School.

Students visitingincineration facilities.

Community outreach

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Community fellowshipOpening of plant groundsEach year, the grounds at the Tohmi Plant in Nobeoka, are opened to the public for the spring tradition of picnicking under the cherry blossoms. At Suzuka there is a similar tradition of opening the avenue in front of the employees residence complex to the public during cherry blossom season. In addition, the area around the main gate of the Suzuka Plant has been transformed into a garden path that is open to the public throughout the year. The path is adorned with laurel trees, the environmental symbol of the Fabricated Home Products Company, and a variety of flowers.

Maintaining neighborhood cleanlinessEmployees at many sites periodically clear the plant vicinities of litter, rubbish and weeds. The Fabricated Home Products Company held "Operation Eco-Cleanup" at its Suzukaand Nobeoka plants, Tokyo and Osaka offices, and the Ageo, Ono, and Gunma plants of subsidiary Asahi Kasei Pax. This is a volunteer event for employees, their families, and the public to remove trash and litter from the area around the nearest train stations, the plant surroundings, and nearby parks. A total of 621 kg of trash and litter was collected.

Area environmental councilsRepresentatives of many Asahi Kasei plants and regional Offices play an active role as members of various environmental councils organized by their respective Prefectural, City, Town, and Village governments, participating in the planning and administration of a variety of functions and monthly events.

Employee volunteerism Throughout the Asahi Kasei Group, employees participate in a wide-range of volunteer activities in their local areas. Examples include "Operation Clean Lake Biwa"in Moriyama and Fuji City's beech tree-planting on Mt. Fuji in April and "Operation Clean Fuji River" in November.

"Operation Eco-Cleanup" at Osaka.

The garden path at the Suzuka Plant.

Responsible Care

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Alleviating the environmental effectsof product distribution

ACTION 4

The process of distributing our products to our customers entails environmental effects as materials used for packaging place a demand on resources and exhaust gases form through fuel consumption during shipment. Measures to improve efficiency in this area not only reduce the burden placed on the environment but also bring cost savings, giving us a strong incentive to constantly strive for greater efficiency in product distribution. Implementation of the following measures, described in previous reports, are being expanded throughout the Asahi Kasei Group, and further measures to mitigate the environmental effects of product distribution are being advanced.

Increasing sales lot sizesWe are working with our customers to increase the volumes of individual purchases. Greater fuel efficiency is achieved by reducing the number of shipments and using larger trucks for each shipment, resulting in reduced fuel consumption and less pollution from exhaust.

Reduction of packagingEven with increased lot sizes, product is commonly packaged in disposable 25-kg bags for shipment. We are encouraging our customers to switch to 1-ton flexible containers, which are returnable for reuse, or to bulk product, which is loaded directly into trucks with no packaging. By reducing the amount of resources consumed for packaging, as well as increasing minimum shipment volumes, the environmental burden of distribution can be significantly lightened.

Product swapsFor certain commodity products where common quality standards can be maintained, it is possible to shorten shipping distances by arranging swaps with other producers. As shown in the figure below, in such an arrangement we ship our product to the plant or customer of another producer, and in return the other producer ships their product to a plant or customer of ours. Reducing the distances that products are shipped results in reduced fuel consumption and less pollution from exhaust.

Transportation mode changeover At present, shipment by road is the principle mode of transportation for many of our products. Together with major customers, we are studying the feasibility of switching to rail and coastal sea lanes, which are more energy efficient than road shipment. Such a change would result in significant reductions in the energy consumption and exhaust pollution entailed during product distribution.

Disposable25-kg bags

1-ton flexiblecotainer

Hopper truck

Swap Swap

CompanyB

Company B plantor customer

Company A plantor customer

Ordinarydistribution

CompanyA

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As an integral part of our Responsible Care initiative, implementation of the product safety effort is based in the Responsible Care organization. In accordance, the corporate organization and managerial activities focus all day-to-day operations on the achievement and maintenance of product safety.

Product safety organizationEach internal company holds responsibility to implement and maintain the basic corporate policy and activities for the control of its own product quality and safety, as appropriate to the needs and requirements of its product sector, while the General Manager of the Environment, Safety & Production Technology Administration and the Quality Assurance & Product Safety Department promote and coordinate the implementation of product safety activities in accord with this policy throughout the corporation.

Group-wide product safety systemEach internal company prepares specific product safety plans and targets to be implemented through a plan-do-check-act cycle in accordance with corporate regulations, guidelines, and standards for product safety, which are based on the basic corporate policy for product safety.

Results of implementation are audited by the General Manager of the Environment, Safety & Production Technology Administration and reported to the Responsible Care Committee. Corporate regulations, guidelines, and standards for product safety are then revised to reflect these results.

Implementation of Product Safety ActivitiesEach internal company implements product safety activities following its plans, targets and policies. Results of implementation are audited and a plan-do-check-act cycle is applied based on their operations.

Risk assessments concerning human safety and health and the effects on the environment are performed for individual products, and product safety is ensured by applying the results of these assessments. Whenever there is a change in a product, the results of risk assessments are reviewed to ensure against any omission.

Securing product safety for the customerIn addition to ensuring the safety of products themselves, product safety information is provided to customers in the form of instructions for product handling and use and material safety data sheets as part of the effort to secure safety throughout the product life cycle from use to disposal.

Product Safety

Corporate Management System

Risk assessmentThis is the quantitative evaluation of the effects on health and the environment. The evaluation and estimation of whether or not chemical substances in the environment have effects on human health or the environment comprises four processes: Hazard identification, characterization of the relationship between doses of chemical substances and the severity of adverse health effects, exposure assessment, and risk characterization. In this sense,

"risk" means a combination of the probability and severity of injury or health damage occurring.

Material safety data sheet(MSDS) Data sheets containing information related to the safety of chemical products, MSDSs for each product are provided by the supplier to all firms involved in use and handling to prevent accidents involving the product.

Responsible Care

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Managing chemical substances

25

Risks associated with all chemical products handled in the Asahi Kasei Group are evaluated and reduced to an acceptable level. To reaffirm awareness and consistency, systematic chemical risk assessment and risk management processes are being established. Specifically, this entails the following:

Knowledge of all chemical substances handledA comprehensive listing of all chemical substances handled in the Asahi Kasei Group as feedstocks, intermediates, products, and process materials has been prepared. The list includes relevant regulations in Japan and other countries, hazard information, and acceptable concentrations in the workplace environment. The list is utilized in the daily ESH effort of each internal company. Each year, specialist staff update and revise the list to ensure that information regarding the chemical substances handled, relevant regulations, and hazardousness are kept up-to-date.

Collecting safety information for each chemical substanceSafety information for each chemical substance handled, including physical and chemical properties, effects on humans, and effects on the environment, is collected by surveying literature and reports available in Japan and worldwide. Where the available information is insufficient, tests are planned and performed to obtain the necessary supplemental information.

Providing safety information to relevant partiesSafety information for chemical substances and chemical products are provided to employees, customers, physical distribution firms, and other related members of the public in the form of MSDSs, Yellow Cards (Transport Emergency Cards), technical manuals, and product brochures. All safety information whose provision to customers and other relevant parties is required by law is provided in MSDSs. Following the recommendations of the Japan Chemical Industry Association, MSDSs are being revised to further enhance and enrich the information provided.

Evaluating and managing risksRisks associated with chemical substances are evaluated with reference to their safety information and the circumstances in which they are handled and used. If the risk is determined to be at an unacceptable level, an alternative chemical substance with an acceptable level of risk is selected or the circumstances of handling and use are modified to reduce risk to an acceptable level.

Corporate regulations for product safety management.

MSDS

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High Production Volume (HPV) Chemical InitiativeThe Asahi Kasei Group began participation in the International Council of Chemical Associations (ICCA) HPV Initiative in fiscal 1999, with regard to nine chemical substances.

An international consortium has been established to perform the evaluation work of the HPV initiative, through the close cooperation of participating companies throughout the world.

Long-range Research Initiative (LRI)Through our membership in the Japan Chemical Industry Association (JCIA), the Asahi Kasei Group is an active participant in the LRI. We have been a member of the LRI since its initial stage, and have contributed to the establishment of research systems, administration, planning specific research projects, and selection of research subjects. We continue to take a leading role in the advancement of LRI worldwide, including participation in international conferences and discussions with researchers at overseas universities.

The ICCA HPV Initiative

In 1990, the Organization for Economic Cooperation & Development (OECD) began promoting the gathering of safety data for HPV chemicals (1000 tons/year or more produced in one or more countries) for which existing safety data is inadequate to enable their risk assessment and determination of the need for their control. However, as over 4000 chemical substances were subject to evaluation, progress was slow to obtain: By the end of 1999 the evaluation of only 150 substances was completed, with another 250 in progress.

Realizing the inadequate state of progress, in 1998 the ICCA determined to bring the efforts and resources of the world chemical industry to bear in advancing the HPV Initiative in concert with the OECD. The ICCA designated the completion of evaluation of all substances produced in volumes of 1000 tons/year or more in two or more countries by 2004 as a target. Work is now in progress coordinated by the chemical industry associations of Japan, the US, and the EU.

The LRI Initiative

The LRI is a long-term research program to increase scientific knowledge regarding the effects of chemical substances on health and the environment, carried out by the chemical industries of Japan, the US, and Europe to promote the safe handling and use of chemical substances. LRI involves research on a scale and depth that is beyond the capabilities of corporations working individually. The results of the LRI will be used to assist public policy decision-making, and are also expected to make a valuable contribution to the enhancement of Responsible Care. The JCIA is actively supporting LRI, and research work began in fiscal 2000.

Because LRI is lead by the chemical industry, there is strong public concern that the administration of the initiative be impartial, that the subjects of research be proper and valid, that the research process be transparent, and that the results be completely open. To ensure impartiality, a peer-review committee composed of researchers who have no conflict of interest with the chemical industry has been established, and the scope of activity of corporations participating in LRI has been limited to eliminate the possibility of bias.

The actual research is carried out on consignment by independent research institutions. With the exception of work consigned supplementally to research already in progress, subjects of research are adopted after broad canvassing and rigid screening, including by the researchers of the peer-review committee. In fiscal 2001, the JCIA is advancing research in three fields: Endocrine disrupters, chemical carcinogenicity, and hypersensitivity. Separately, the JCIA has been consigned by the Japanese government to perform research related to risk assessment.

Through our membership in the Japan Chemical Industry Association (JCIA), the Asahi Kasei Group is an active participant in voluntary international

research efforts to advance the safe management of chemical substances.

International efforts for chemical safety

Responsible Care

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Adoption of ISO 9000 series systemsThe Asahi Kasei Group was one of the earliest in the chemical industry to obtain ISO 9000 series certification for its quality management systems. During 1993 and 1994, we obtained certification for our production sites in Mizushima, Nobeoka, Kawasaki, Fuji, Moriyama, and Suzuka. Subsequently, to further enhance our quality management, ISO-compliant systems were adopted for product design, development, marketing, and physical distribution functions. Beginning in 1996, we began a transition of the scope of certification to internal company and divisional units.

Transition of certification to our Fibers and Textiles Company and Fabricated Home Products Company was completed in fiscal 2000. With this, nearly all products are now certified under ISO 9001 by business unit. These quality management systems have also been valuable in the systematic review of a variety of activities related to product safety.

Compliance with ISO 9000:2000As a result of the transition to internal company and divisional unit-scope certification, the Asahi Kasei Group was already substantially in compliance with the ISO 9000:2000 standards when they were published. We nevertheless prepared corporate guidelines for compliance with the 2000 revision in order to further heighten the efficiency and effectiveness of our quality management systems. The Fibers and Textiles Company is presently in compliance with ISO 9000:2000, and revision of quality management systems throughout other internal companies is advancing toward compliance throughout the Asahi Kasei Group.

Registered entity Date of initial reg. Registration No.

ISO 9000 series certification

ISO 9000 series certification

Internal companies

Divisions

Plants

Chemicals & Plastics Company

Performance Plastics & Compounds Company

Fabricated Home Products Company

Fibers & Textiles Company

Industrial Membranes Div.

Electronics Materials Div.

Imaging Products Div.

Ion Exchange Membranes Div.

Metal Cladding, Explosives Div.

Industrial Explosives, Explosives Div.

Fastening Products, Explosives Div.

Defense Explosives, Explosives Div.

Tohmi Plant, Huga Chemicals Plant, others (Nobeoka Office)

Production Control Dept., Construction Materials Works

Wakayama Plant

Asahi Kasei Microsystems Co., Ltd.

Asahi Kasei Color Tech Co., Ltd.

Asahi Kasei Techno Plus Co., Ltd.

Shin Nihon Salt Co., Ltd.

System Integration Div., Asahi Kasei Jyoho System Co., Ltd.

Asahi Kasei Finechem Co., Ltd.

Mizushima Plant, Asahi Kasei Epoxy Co., Ltd.

Oita Plant, Asahi Medical Co., Ltd.

Nobeoka Plant, Asahi Medical Co., Ltd.

Moriyama Plant, Asahi-Schwebel Co., Ltd.

Tomobe Plant, Asahi Kasei Metals Ltd.

Nobeoka Plant, Asahi Kasei Electronics Co., Ltd.

Mizushima Plant, Sanyo Petrochemical Co., Ltd.

November 11, 1993

November 11, 1993

December 15, 1993

July 8, 1994

February 21, 1994

April 7, 1995

April 7, 1995

March 31, 1997

August 1, 1998

October 23, 1998

March 12, 1999

September 27, 1999

August 7, 1998

April 24, 1998

August 21, 1998

June 9, 1995

January 12, 1998

August 5, 1998

October 5, 1998

September 23, 1999

December 28, 1999

January 10, 1994

November 10, 1994

November 14, 1995

October 20, 1995

April 22, 1996

June 7, 1996

January 9, 1998

ISO9001-JQA0374

ISO9001-JQA3013

ISO9001-JQA0344

ISO9001-JQA0549

ISO9001-JQAQM4618

ISO9001-JQAQM3841

ISO9001-JQAQM5364

ISO9001-JQA1668

ISO9001-98QR120

ISO9001-JQA2717

ISO9001-JQA3154

ISO9001-BSK0041

ISO9002-JQA0350

ISO9001-JQA2308

ISO9001-JQA2587

ISO9001-JQA0899

ISO9001-JCQA0278

ISO9001-SGS/J51/98

ISO9001-JCQA0376

ISO9001-JQAQM3579

ISO9001-JQAQM4180

ISO9001-JQA0369

ISO9001-BSI

ISO9001-BSIFM32751

ISO9001-JQA1006

ISO9001-JCQA0133

ISO9002-JQA1301

ISO9001-JQA0305

Note: Due to changes in scope of registration, dates of initial registration shown above do not correspond to certification date for all products handled

by each entity registered.

Companies or Divisions

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The safety targets and priorities for safety activities during the 3-year program which ended with fiscal 2000 are shown above. To attain these targets, specific plans were determined based on the individual circumstances of each internal company and geographical region.

Application of advanced know-how and techniques for safety was included as a priority to bring greater emphasis to the technological aspects of safety in addition to the priorities on predicting hazards, confirming safety, and keeping good operation habits, and stable operation and intrinsic safety of equipment. The priority on predicting hazards, confirming safety, and keeping good

operation habits is not limited to individual operators or groups prior to and during operation, but is a broadly applied fundamental concept which encompasses managers' confirmation of workplace safety and includes organizational safety activities such as reporting of near-accidents and potential safety hazards.

Responsible Care at the Asahi Kasei Group encompasses measures to prevent plant and equipment accidents. These measures include making safety a primary consideration in the planning, design, installation, and control of plant and equipment where dangerous or hazardous substances are handled, as well as training to ensure safe operation and proper response in the event of any abnormality.

Advance safety management and inspectionAdvance safety management and inspection of plant and equipment is an essential facet of our effort to secure safe, accident-free operation. When there are plans for a significant investment in plant and equipment, we employ a system of checks to ensure sound crisis prevention and management, environmental protection, product safety, and workplace safety and hygiene. Any potential problem revealed in the checking process is resolved before initiating the operation.

Prior to purchasing land, new plant construction, or a significant plant expansion, an ESH management plan is prepared for inspection by the General Manager of the Environment, Safety & Production Technology Administration, who acts as an independent third party in his responsibility for oversight of ESH. Plans only proceed upon gaining

approval following this inspection.An ESH management plan comprises a

description of the plans for construction, a list of the relevant regulations, a list of substances handled, and plans for crisis prevention and management, environmental management, management of workplace safety and hygiene, an evaluation of safety (identification and evaluation of potential plant hazards), organization of operation (including relevant outside companies), and measures to be implemented at start-up.

We have also established a Safety Engineering Test Center for the evaluation of substances handled in the Asahi Kasei Group. The center functions to evaluate physical and chemical properties of substances to be newly handled, as well as to evaluate the safety of other chemical substances and to enrich and enhance the information provided in MSDSs.

Safety and Health

Safety targets and plansZero plant accidentsIndustrial accidents - Frequency rate*: 0.1 or less Severity rate**: 0.005 or less

Group-Wide Targets

The Safety Engineering Test Center

Safety through prevention andpreparation

Responsible Care

Number of accidental deaths and injuries resulting in the loss of one or more workdays, per million man-hours worked.Lost workdays, severity-weighted, per thousand man-hours worked.

*

**

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Crisis management

Emergency responseBasic aspects of the emergency response system (notification, reporting, establishment of corporate-level Emergency Response Headquarters) are specified in the corporate-wide Environment and Safety Management Regulations which apply to the environmental and safety aspects of all phases of every operation throughout the Asahi Kasei Group. Based on these regulations, the Emergency Safety & Security Guidelines specify safety measures, public announcements, evacuation, and communication channels to be implemented and utilized in response to emergencies.

In addition, each operational region and plant has prepared internal rules and regulations for their own specific measures to be taken in response to disasters and emergencies, in accord with these regulations and guidelines. Our sites in Mizushima and Kawasaki, where the petroleum complex disaster prevention law applies, have joined cooperative arrangements with nearby petrochemical plants for mutual emergency assistance, based on their respective Joint Emergency Response agreements.

Earthquake countermeasuresEarthquake damage resistance and countermeasures have always been particularly strong at the Fuji, Ohito and Kawasaki plant complexes, in light of seismological estimates of the vulnerability of these regions to major earthquakes.

Following the 1995 Hanshin Earthquake, the earthquake resistance and vulnerability of plants and related facilities were reviewed throughout the company, and a program of structure reinforcement and emergency procedures has been implemented. Facilities for high-pressure gas and hazardous materials, as well as buildings and structures were investigated, and reinforcement and modification were carried out with priority based on degree of potential risk.

Corporate regulations for disaster prevention and emergency control have been strengthened and expanded. Contingency planning has been extended to ensure concerted, effective response even in the event of extremely severe earthquakes.

Emergency safety systems and equipmentIn accordance with regulatory standards, a full range of emergency safety systems and equipment are in place, including gas sensors, alarms, systems to monitor emitting gases and effluent water, absorbents to remove hazardous material, electric power back-up systems, and fire prevention and extinguishing systems. Plans are now under way to improve the capability of such equipment to further enhance the level of safety at our plants.

Training for emergency situations Training and drills for fire extinguishing, disaster prevention, evacuation, summoning needed personnel, notification, and reporting in emergency situations are periodically conducted at each operational region and plant. In addition, joint disaster response drills are periodically conducted with Fire and Police Departments, and nearby petrochemical plants with whom we have established mutual assistance regimes.

Emergency response training at Kawasaki

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Sev

erity

Rat

e**

Frequency rate (three-year trailing average)

Severity rate (three-year trailing average)

Freq

uenc

y ra

te*

30

Results of the safety effortAn array of measures are employed in An array of measures are employed in recognition that the maintenance of safety is fundamental to all business activities of the Asahi Kasei Group. Beginning in 1982, a series of three-year initiatives have established the goals and impetus for safety training and education programs, preparation and utilization of technical guidelines for safety and accident prevention, routine safety assessments prior to equipment installation and modification, and regular safety audits conducted by corporate-level management.

Year by year, these measures have led to improved safety performance. The frequency rate*, which averaged 0.59 during the first 3-

year program, from 1982-1984, was reduced to an average of 0.13 during the fifth 3-year program, from 1995-1997. However, for the sixth 3-year program, from 1998-2000, the average was 0.24.

After achieving an outstanding record for severity rate** from 1990-1993, our record began to decline in 1994. Efforts since then to improve the severity rate resulted in a recovery to around 0.03 for 2000.

Guidelines for the preparation of workplace safety standards and an Occupational Health & Safety Management System (OHSMS) have been adopted as part of the effort to maintain the frequency rate at 0.1 or less, the world's most demanding target.

Workplace safety

4.0

3.0

2.0

1.0

0.0

Calendar year

Calendar year

0.6

0.5

0.4

0.3

0.2

0.1

0.0

75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00

75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00

Asahi Kasei

Chemical industry, Japan

Manufacturing industries, Japan

Asahi Kasei

Chemical industry, Japan

Manufacturing industries, Japan

Responsible Care

Number of accidental deaths and injuries resulting in the loss of one or more workdays, per million man-hours worked.Lost workdays, severity-weighted, per thousand man-hours worked.

*

**

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The Asahi Kasei Group constantly strives to maintain and heighten safety in the physical distribution of harmful and hazardous materials.

- Arrangements for physical distribution safety control are established in cooperation with firms involved in storage, loading, unloading, and transportation, and these firms are given instruction and guidance regarding physical distribution safety.

- Together with firms involved in physical

distribution, meetings are periodically held to make all persons involved with physical distribution thoroughly familiar with safety policies and plans, and to provide a forum to bring potential problems to light and discuss preventative measures.

- Physical distribution safety control

standards specific to each product and mode of transportation are prepared, to be adhered to by firms engaged in physical distribution.

- We have assembled a compilation of know-how related to near-accidents and potential safety hazards which have occurred in connection to physical distribution. The compilation is used for physical distribution safety education and training.

- Safety practices and activities of firms

involved in physical distribution are inspected regularly, and improvements are recommended as needed.

- Commendation is given to firms in recognition of outstanding safety practices.

- Transport Emergency Cards, known as "Yellow Cards," which clearly indicate all

information which would be urgently needed in case of an accident during physical distribution, are prepared for each product and mode of transportation and provided to firms involved in physical distribution. These firms are instructed in their use, and the drivers or parties responsible for the product during transport unfailingly keep the Yellow Cards on hand at all times during physical distribution.

Physical distribution safety conferenceTo help ensure effective physical distribution safety by reinforcing awareness of the importance of safety among the upper management of firms involved in physical distribution, the Asahi Kasei Group holds a physical distribution safety conference each year. The fiscal 2000 conference was held with approximately one hundred attendees, including the presidents and executive officers of environment and safety of 31 firms involved in physical distribution, Asahi Kasei Group personnel involved in physical distribution, and technical experts in the field.

Recent ESH activities of the Asahi Kasei Group were explained, results of the previous year's physical distribution safety activities were reported, and specific examples of problems encountered in physical distribution were explained. As an incentive to heighten the level of physical distribution safety, awards were presented to firms in commendation for outstanding safety practices.

Physical distribution safety

Yellow CardsNotification procedures and specific measures to be taken in case of accident during physical distribution are clearly indicated on Yellow Cards, as well as physical properties and hazards of the particular chemical substance, and its safety precautions and warnings. In case of emergency, a quick look at the Yellow Card will enable proper measures to be taken immediately, to minimize any danger and prevent the occurrence of any secondary incident. Yellow Cards have been prepared for all 185 relevant chemical products handled in the Asahi Kasei Group.

For the Asahi Kasei Group, these conferences provide a valuable impetus in the effort to constantly improve physical distribution safety by helping firms involved in physical distribution to learn from accidents and problems which have occurred, and encouraging them to thoroughly educate and train their employees on safety issues and practices.

Points of focus

Ongoing themes

Safety awards

Physical distribution safety policy themes and safety awards for fiscal 2000

- Comprehensive inspection in the shipment of ISO containers: Eliminating accidents in a period of deregulation.

- Thorough safety education and training: Raising awareness of safety among drivers.

- Enactment of safety verification.- Promotion of improved facilities and improved loading and

unloading work among users.- Cataloging safety issues concerning Asahi Kasei Group

facilities, and implementing measures for improvement.

- Outstanding Safety Practices: Awarded to 13 companies in 15 categories.

- Continuous Accident-Free Record: Awarded to 2 companies in 2 categories.

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Workplace hygiene and health

The maintenance of employee health is an important focus at the Asahi Kasei Group. To ensure a safe workplace environment, proper measures are taken when chemical substances or other hazards are present, in accordance with the Industrial Safety and Health Law. As many chemical substances are handled at Asahi Kasei Group companies, the safe management of chemical substances is a particular point of emphasis. In addition, efforts to achieve a comfortable workplace environment are ongoing. Outside the workplace, facilities for the promotion of employee fitness are also provided.

A comfortable workplace environmentThe provision of a comfortable workplace environment, so that employees experience a minimum of fatigue and stress, has become an important issue. The Asahi Kasei Group implements thoroughgoing measures and controls to prevent damage to health due to exposure to chemical substances, noise, and vibration. For certain specialized tasks, there are some workplace environments where we recognize the need to address the level of noise. In fiscal 2000, we began examining possible measures to mitigate this problem based on the analysis and advice of specialist consultants.

In the Asahi Kasei Group, the improvement of the workplace environment is actively pursued through a closely coordinated effort by labor and management. Group-wide guidelines have been prepared to promote comfortable employee facilities including break rooms, cafeterias, lavatories, changing and locker rooms, and bath and shower rooms. A program of upgrading and improvement is in progress.

Fitness promotionEmployee health and fitness facilities and systems are being planned and implemented

at each operational region and plant, in accord with the nationwide recommendations embodied in the Ministry of Labor's "Total Health Promotion Plan," or THP Plan. The THP Plan at Asahi Kasei is being tailored to the specific circumstances and needs of each location.

Our current 3-year environment and safety program includes an objective to halt the increase in the number of employees receiving cautions regarding their health following their annual checkups. To achieve this objective, the program of fitness promotion through health-related advice and exercise is being enhanced and expanded with the guidance of physicians specializing in industrial medicine.

At Nobeoka, the site of one of our main plant and office complexes, a full range of facilities, equipment and professional staff have been provided. The main facility in Nobeoka, the Asahi Health Promotion and Fitness Center, includes a heated swimming pool, weight-training room, aerobics floor, and relaxation room. Based on the results of individual physical fitness testing by professional trainers, Nobeoka employees receive specific instruction and guidance for an individual program of health and fitness.

Health lecture at the Asahi Health Promotion and Fitness Center.

Weight-training room at the Asahi Health Promotion and Fitness Center.

Responsible Care

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Whatever organizational structures, systematic processes, and physical assets we employ for EHS purposes, effective implementation is ultimately dependent on the constant awareness and comprehensive understanding of every single employee, which underlie the innumerable individual judgments and acts entailed in day-to-day operation throughout the Asahi Kasei Group.

Thorough and complete education and training of employees thus provides the

essential foundation for our EHS effort. The process is unrelenting, beginning with orientation of new hires and continuing throughout their career with us. In addition to the company-wide training program, each business division and operational region implements a training program specifically tailored to their particular requirements.

Education and Training is performed jointly with Asahi Kasei Amidas, our specialist subsidiary for human resources development.

Education and Training System

Asahi Kasei Group ESH education and training

Education and Training

Objective Course (summary)New hires

Follow-up after hiring

Training prior to appointment as supervisor

Training upon appointment as supervisor

Training for candidate operation supervisors

Plant and laboratory staff training

Training for managers

Training for newly appointed section chiefs

Training for newly appointed general managers

Ordinary employees (by workplace or group)

- Basic ESH knowledge. - Observation of basic safety practices, company rules. - Managing one's health as lifestyle habits change.

- Follow-up to training upon hiring, when one has become accustomed to working life after a few months.

- ESH knowledge needed as a supervisor. - Awareness of duty and responsibility for safety.

- Follow-up to training prior to appointment as supervisor.

- Operational safety knowledge needed as operation supervisor. - Awareness of responsibility as operation supervisor. - Learning safety evaluation techniques.

- Plant and laboratory staff training - ESH knowledge needed as staff.

- ESH knowledge needed as manager. - Awareness of responsibility as manager.

- Awareness of responsibility as section chief.

- ESH expected of newly appointed general managers

- Raising sensitivity to ESH issues - Awareness of responsibility to observe basic procedures and rules.

- Safety and hygiene training upon hiring, based on the Industrial Safety and Health Law. - Public trends related to ESH. - ESH ideals and responsibilities. - Responsible Care, and the Asahi Kasei Group program. - The basics of safety and hygiene. - Environmental issues primer.

- Responsible Care in the workplace. - Studying examples of plant accidents. - Managing one's health.

- Safety and hygiene training for supervisors, based on the Industrial Safety and Health Law. - Public trends related to ESH. - Responsible Care. - Relevant laws and regulations. - Duty and responsibility for safety. - Asahi Safety Training (AST). - A comfortable workplace environment.

- Asahi Kasei Group safety technology guideline. - Studying examples of plant accidents.

- Public trends related to ESH. - Responsible Care, and the Asahi Kasei Group program. - Duty and responsibility for safety. - Asahi Safety Training (AST). - Making equipment inherently safe. - Safety evaluation techniques. - Training by simulation.

- Public trends related to ESH. - Responsible Care, and the Asahi Kasei Group program. - Relevant laws and regulations. - Overview of environmental issues. - ISO management systems.

- Public trends related to ESH. - Responsible Care, and the Asahi Kasei Group program. - Duty and responsibility for safety. - Asahi Safety Training (AST). - Overview of environmental issues. - Product safety issues. - ISO management systems.

- Duty and responsibility for safety. - Emotional fitness.

- Training based on the Industrial Safety and Health Law. - Studying actual incidents, using AST manual. - Duty to maintain safety. - Environmental issues primer.

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Uniform company-wide trainingIn order to raise the level of knowledge and management skills related to EHS issues to a uniformly high standard throughout the company, a tiered training program is implemented, beginning with orientation and training of new hires and progressing through training for individuals appointed to supervisory and managerial positions.

To heighten the environment and safety management ability of line managers, AST training by a specialist lecturer from Asahi Kasei Amidas Co., Ltd. was held for 250 section chiefs of production lines throughout the Asahi Kasei Group during fiscal 1999 and 2000. Including those who had done so earlier, nearly all production line section chiefs have now completed AST training, and it has now been made a condition for new nominees to production line section chief.

Company-wide education regarding specific issuesTo keep personnel abreast of specific EHS issues, the Environment, Safety & Production Technology Administration conducts company-wide education and information programs as deemed necessary. Examples include programs to educate all management-level personnel regarding current ESH issues.

By business division and operational regionEducation and training programs at the regional and divisional levels are implemented in parallel with the company-wide training program. Education and training related to product liability, ISO 9000 series quality management systems, and ISO 14001 environmental management systems are performed at each business division. Education and training programs related to EHS issues specific to particular production processes and equipment are implemented by operational region.

Training by computer simulationAdvanced safety systems and equipment are important elements of safe operation at every chemical plant, but the key lies in the skill of highly trained, professional operating personnel. The operators must not only be capable of controlling routine operation, startup, and shutdown, but must also be able to respond quickly and appropriately to any process abnormality or emergency. To aid in the training of skilled operators, we have developed computer models to simulate the behavior of actual plants, and used this simulation as part of the operator training course since 1987. An advanced simulator at our Mizushima plant complex is used to develop the skills of well-trained operators.

Process simulation facility at the Mizushima Process Training Center.

Machine training room at the Mizushima Technology Training Center.

Responsible Care

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Outside the companyTo keep abreast of information, knowledge, and administrative trends as they relate to EHS issues, personnel attend various lectures and conferences held by administrative authorities, industry associations, and other relevant organizations. Personnel also attend public classes and seminars to obtain the capabilities, skills, and qualifications needed for specific work responsibilities.

Officially certified qualificationsIn conjunction with the corporate training program, the acquisition of officially certified qualifications is encouraged and supported. As shown in the following table, the total number of personnel who have obtained each class of qualification is well in excess of the regulatory minimum required for our operations.

Mini-plant at the Mizushima Technology Training Center.

Personnel with officially certified qualifications

Completion of ISO internal auditor training

Class of qualification No. certified* Regulatory minimum

No. of personnel

ISO internal quality auditor

ISO internal environmental auditor

High-pressure gas manufacturing safety

Hazardous materials handling

Pollution prevention control

Energy management

Workplace health and hygiene

Workplace environment analysis

Boiler operation

387

1,018

144

49

88

26

72

2,239

6,233

1,030

170

965

117

1,381

362

610

* Some personnel have more than one certification.

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AST is a manual developed by the Asahi Kasei Group for safety training. The objective is for personnel to gain a heightened sensitivity to safety issues and to anticipate potential problems and respond proactively. The training, comprising the following, is employed as an essential element of the safety training curriculum throughout the Asahi Kasei Group at each plant and workplace.

- All employees contribute to safety with an

awareness of accident prevention gained by thinking subjectively about the work they perform.

- Preparing preventive measures which take into consideration origins of people's blind spots, such as illusions, operational mistakes, and mistakes in judgment.

- Analyzing past incidents to be able to foresee potential problems and think proactively to prevent accidents.

Asahi Safety Training System

Asahi Safety Training (AST)

Actual incidents Potential problems foreseen

Operationalaccidents

Processincidents

ImplementationcardsHypothesis

State ofstability

State ofinstability

State ofdanger Human

(blind spot)

Errors injudgment

Operationalmistakes

Equipment SystemState ofhazard

Problems ofawareness

Environmentalcauses

Forcedconceptualization

Direct cause

Accident analysis

Preventingrecurrence

Evaluatingpresent practices

III. Techniques for reviewing safetyII. Gaining awareness of safetyI. Fundamentals of accident prevention

Mechanismof occurrence

Four-step Asahimethod for

accident analysis - Asahi method for problem hypothesizing. - Problem hypothesizing based on operability study.

Responsible Care

Disaster p

otential

TM card

(statistical analysis)

Blind

spot hyp

othesizing based

on behavior analysis.

Review

based

on assumed

imp

edim

ent.

Utilizing exam

ples of actual incid

ents at other sections,

TMH

cards (d

iagramm

atic analysis)

H card

s (blind

spot classification)

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Asahi Kasei Group Results

37

In addition to fully considering the effects of our products on health, safety, and the environment throughout their life cycle of production, use, and disposal, as a matter of basic policy, the Asahi Kasei Group also endeavors to develop products and

technologies which themselves serve to alleviate the ecological burden of human activity. As shown below, such development efforts have resulted in a wide range of environment-friendly products and technologies.

Environment-friendly Products and Technologies

Product/technology

Internalcompanies/subsidiariesand affiliates

Ecological aspects

Fibers and Textiles

Chemicals and Plastics

Performance Plastics and Compounds

Fabricated Home Products

Specialty Products and Systems

Housing

ConstructionMaterials

Asahi Engineering Co., Ltd.

Shin Nihon Salt Co., Ltd.

Toyo Kensa Center Co., Ltd.

San Denshi Industry Co., Ltd.

Toyo Clean Chemical Co., Ltd.

Asahi KaseiAmidas Co., Ltd.

Eutec™ oil-water separators.

Bemberg™ and Bemliese™ regenerated cellulose.

AGI hollow plastic molding technology.

Clear Surface Molding technology.

Long™ coated fertilizer and Ecolong™ environmentally degradable coated fertilizer.

Halogen-free flame-retardant acrylonitrile-butadiene-styrene resins.

Suntec™ PAK coating powder.

Methyl methacrylate production process by direct oxidative esterification.

Phosgene-free, methylene chloride-free polycarbonate production process.

Asaclean™ purging agent for plastic molding machines.

Acclima.

Halogen-free cleaning agent.

Membrane electrolysis process.

Microza™ MF and UF modules and systems.

Acilyzer™ electrodialyzers.

Long Life Home products.

Neoma™ foam.

Suny Lite™ SD airtight insulation system.

Exhaust gas treatment technologies.

Waste liquid treatment equipment.

Waste liquid incinerator.

Fluorine and arsenic adsorbent.

Magnesium hydroxide for desulfurization.

Environmental analysis.

Apolarm™ C oil leak detector.Apolarm™ M waste water monitor.

Liquid fertilizer production facility.

Environmental consulting.

Water treatment by filtration to separate oil from water.

Effectively utilizes natural resources, enables environmentally compatible disposal.

Reduced number of parts, reduced materials consumption, reduced weight.

Eliminates the need for painting, reducing paint and solvent use.

Coated fertilizer enables controlled release of fertilizer to avoid excessive application. Photodegradable, biodegradable coating is restored to the natural cycle.

Flame retardance without using halogens.

Powder coating requires no solvents, for reduced atmospheric emission.

Eliminates ammonium sulfate by-product.

Eliminates the need for the hazardous phosgene as reactant and methylene chloride as solvent.

Reduces the amount of waste during material changeover.

Biological membrane carrier for water treatment.

Metal cleaning, precision cleaning, electronics cleaning without ozone-depleting halogen compounds.

Eliminates the need for asbestos and mercury in chlor-alkali production.

Purification of drinking water, treatment of waste water; enables closed water systems in industrial and commercial applications

Removal of nitrates from drinking water, treatment of waste water.

60-year durability enables reduction of waste from demolition and rebuilding.

High-performance home insulation panels, for energy conservation.

Airtight, high-performance insulation system for energy conservation in wooden homes.

Elimination of hazardous substances and recovery of useful substances from exhaust gases.

Activated sludge treatment. High-performance fluorine adsorption.

Treatment of highly concentrated organic waste liquids, and waste liquids containing inorganic salts.

High-performance adsorbent for water treatment.

Economic, efficient flue gas desulfurization without need for secondary treatment.

Capable of analyzing endocrine disrupters and dioxins in addition to ordinary environmental analyses.

Detection of oil leaks and monitoring of industrial waste water for surface oil.

Production of safe, stable liquid fertilizer from human and animal sewage.

Establishment of environmental management systems.

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* Resource conservation includes energy conservation, water conservation, and reduced consumption of raw materials.Chemical substances indicates reduction in use or effluence of chemical substances, or removal of chemical substances by treatment of waste water or exhaust gas.Waste reduction indicates mitigation of the amount of waste generated or reduction of waste through recovery or recycling.

Resource

conservation

Chem

ical substances

Waste

reduction

Other

For m

ore,

see pag

e:

Category*

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Ecolong™ environmentally degradable coated fertilizerLong™ coated fertilizer from the Asahi Kasei Group holds the top share in the Japanese market with its established reputation for controlled-release performance, contributing to environmentally friendly agriculture. Ecolong™ additionally features a biodegradable, photodegradable coating to provide nutrients to crops while the remaining coating is broken down and returned to the natural environmental cycle.

Clear Surface Molding (CSM) molding technologyEmploying an insulating layer at the mold cavity surface so that the heat of the molten resin raises the mold surface temperature during molding, CSM improves surface transfer and enables the molding of parts with excellent surface appearance. This makes painting to improve appearance unnecessary, eliminating the associated environmental effects.

Asaclean™ purging agent for plastic molding machinesProcessing loss from plastic molding in Japan amounts to almost 800,000 tons of plastic

each year, largely during material changeover. Asaclean™ enables loss from material changeover to be reduced by 90%. Another significant portion of processing loss is the result of contamination from heat-deteriorated material which adheres to screw and cylinder surfaces. By cleaning the screw and cylinder prior to processing, Asaclean™ eliminates this loss as well, for a significant reduction in wastes.

Acclima biological membrane carrier for water treatmentAble to remove organic matter, ammonia, algae, and odors from contaminated water at a relatively low cost with simple operation, the biological membrane process for water treatment holds great potential for application in areas with water pollution problems. Microorganisms in the water adhere to a carrier, where they form a biological membrane. Contaminants are decomposed by the microorganisms when brought into contact with the membrane. The Acclima membrane carrier made of Saran™ fiber is used in a wide variety of forms due to the outstanding water purification performance enabled by its large microorganism retention capacity.

Ecolong™

Asaclean™

Acclima before and after use (scales differ).

Responsible Care

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Hebel Haus™ Long Life HomeThe Long Life Home concept is part of a new strategic vision for Hebel Haus™ products which will maintain ownership satisfaction over more than half a century. Given the serious shortage of landfills, and that homes have an average life span of 26 years in Japan, Long Life Home products with the durability to last for over 60 years make a valuable contribution to waste reduction by reducing the need to demolish and rebuild.

Membrane electrolysisAsahi Kasei has long been a world-leader in the development and establishment of the membrane electrolysis process for chlor-alkali production, which eliminates the need for mercury and asbestos as process materials. At present, our technology for membrane electrolysis is employed at 50 plants in 14 countries around the world, with a total annual capacity of over 6 million tons of caustic soda per year. Ongoing technological advancement continues to bring greater efficiency for energy conservation.

Microza™ MF and UFMicroza™ MF (microfiltration) and UF (ultrafiltration) modules and systems bring benefits of energy conservation and waste reduction in a wide range of industrial processes in the fields of biotechnology, chemicals, and electronics. Microza™ water purification systems also enable the recycling of water in closed systems at many factories and resort centers. In addition, Microza™ systems increasingly serve the public with safe, high-quality drinking water, as their use at municipal waterworks grows.

Acilyzer™ electrodialyzersAcilyzer™ electrodialyzers enable the efficient removal of ionic substances from various solutions. Acilyzer™ systems contribute to the supply of safe drinking water by removing nitrates from contaminated water, and enable resource conservation and waste reduction in the food and biotechnology industries. Additional applications include treatment of industrial waste water and ash swill from industrial waste incineration.

Addition of a 3rd floor with the Urbing™

Membrane electrolysis.

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Waste liquid incineratorThe waste liquid incinerator developed by Asahi Engineering Co., Ltd. is able to safely and efficiently treat highly concentrated organic waste liquids and waste liquids containing inorganic salts, which are ordinarily very difficult to treat. These incinerators feature fully automatic operation, and emission con centrations of dioxins, carbon monoxide, and soot and dust all well within the increasingly stringent regulatory limits.

Environmental analysisWith a full array of high-precision analytical technology, Toyo Kensa Center Co., Ltd. serves the environmental protection effort by providing a variety of environmental analyses. Capability to analyze extremely trace concentrations of environmental endocrine disrupters, dioxins, and coplanar polychlorinated biphenyls complement its facilities for ordinary analysis of water quality, atmospheric and soil pollutants, and industrial waste for regulatory compliance. Additional capabilities include analyses related to sick house syndrome, such as inspection of homes and testing of emanation from construction materials. ISO 9001 certification attests to the reliability of its analytical results.

Read-F fluorine and arsenic adsorbentRead-F, made by Shin Nihon Salt Co., Ltd., efficiently removes fluorine and arsenic from water by adsorption. It features high performance to enable compliance with the strictest water quality standards, low running cost, and reduction in the generation of sludge from water treatment.

Fluorine adsorption applications are principally in treatment of waste water from semiconductor production and thermal power generation. Read-F is in use for fluorine adsorption at over 50 sites. Arsenic adsorption application, featuring extreme ease-of-use by simply passing water through a column filled with the adsorbent, is helping to protect health in Japan and overseas by removing arsenic from groundwater to produce safe drinking water.

Environmental management systemsAsahikasei Amidas Co., Ltd. has developed and made patent applications for a "Flow Chart and Format" (FCF) method to establish management systems compliant with ISO standards. Many companies have employed the FCF method for ISO 14001 environmental management systems and ISO 9000-series quality management systems, through the consulting services of Asahikasei Amidas. Clients have been pleased with the results, as the FCF method enables the simple establishment of efficient and effective systems. The FCF method is also a powerful tool when modifying or improving established management systems.

Waste liquid incinerator.

Read-F adsorbent.

Toyo Kensa Center Co., Ltd., at Ohito.

Responsible Care

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Asahi Kasei Group Locations and Plants

Our Responsible Care program is uniformly applied throughout all locations, subsidiaries, and affiliated companies of the Asahi Kasei Group. The map below shows the locations

of the six regional offices and the plants of Asahi Kasei. The following page shows all locations and group companies included in our Responsible Care program.

Shiraoi Plant

Tokyo Head Office

Matsudo Plant

Kawasaki OfficeChiba Plant

Ohito Office

Fuji Office

Kakegawa Plant

Suzuka Plant

Osaka Head Office

Nagoya Plant

Hozumi Plant

Sakai Plant

Wakayama Plant

Mizushima OfficeMoriyama Office

Iwakuni Plant

Nobeoka Office

Chikushino Plant

Oita Plant

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Offices and Plants

6-4100, Asahimachi, Nobeoka, Miyazaki 882-0847 Japan Tel.+81-982-22-2011 Leona PlantPolyester PlantBemberg PlantRayon PlantNonwovens PlantChemicals PlantVDC Polymer PlantTohmi PlantDetonator PlantNobeoka Pharmaceuticals PlantHyuga Chemicals PlantFP Coil Development Dept.Planova PlantAramica PlantPower Supply Dept.3-13, Ushiodori, Kurashiki, Okayama 712-8633 Japan Tel. +81-86-458-2111Basic Petrochemical Production Dept.1st Monomers Production Dept.2nd Monomers Production Dept.ABS & SB Latex Production Dept.Suntec Production Dept.Tenac Production Dept.Power Supply Dept.515 Kojimacho, Moriyama, Shiga 524-0002 Japan Tel. +81-77-581-4001Spunbond PlantRoica PlantMoriyama Industrial Membranes PlantArtificial Fishing Reef Development Dept.Power Supply Dept.2-1, Samejima, Fuji, Shizuoka 416-8501 Japan Tel .+81-545-62-2111Cashmilon PlantPewlon PlantPhoto Products PlantFertilizers PlantPlastics Fabrication PlantFuji Plant, Construction MaterialsFuji Industrial Membranes PlantElectronics Materials PlantFuji Pharmaceuticals PlantPower Supply Dept.632-1, Mifuku, Ohitocho, Tagata-gun, Shizuoka 410-2321 Japan Tel. +81-558-76-7011Ohito Pharmaceuticals PlantOhito Diagnostics PlantOhito Liquors PlantKamishima Pharmaceuticals PlantOhito Liquors Plant, Kyoto BranchNagoya Pharmaceuticals PlantKakegawa Pharmaceuticals PlantEngineering Dept.1-3-1,Yako, Kawasaki-ku,, Kawasaki, Kanagawa 210-0863 Japan Tel. +81-44-271-2021Monomers Production Dept.ABS & SB Latex Production Dept.Synthetic Rubber Production Dept.Acrylic Plastics Production Dept.Ion Exchange Membranes Production Dept.Power Supply Dept.Chiba Plant106 Oaza-Someya, Sakaimachi, Sarushima-gun, Ibaraki 306-0493 Japan Tel. +81-280-87-5202 Iwakuni PlantHozumi Plant Matsudo Plant Sakai PlantShiraoi PlantNeoma Foam PlantOita PlantChikushino PlantWakayama PlantSuzuka PlantSuzuka Wrap Film Plant

Adipic acid, hexamethylenediamine, nylon 66.Polyester filament.Cuprammonium rayon, nonwoven cellulose filament.Viscose rayon.Artificial suede, melt-blown/spunbond nonwoven fabrics.Nitric acid, caustic soda, chlorine, hydrochloric acid, fertilizer.Polyvinylidene chloride resin, polyvinylidene chloride latex.Explosives, nitrocellulose, microcrystalline cellulose.Detonators.Pharmaceutical intermediates.Industrial cleaning agents, coating materials.Fine-pattern coils.Virus removal filters.Aramid film.Utilities (electrical power, steam, water)

Ethylene, benzene.Styrene monomer, cyclohexanol, ammonia.Styrene monomer, acrylonitrile.Acrylonitrile-butadiene-styrene resin, styrene-butadiene latex.High density polyethylene, low density polyethylene. Polyacetal.Utilities (electrical power, steam, water)

Spunbond nonwoven fabrics.Roica elastic polyurethane filament.Li-ion rechargeable battery separator membranes, filtration membranes and modules.Artificial fish reefs.Utilities (electrical power, steam, water)

Acrylic staple.Acrylic filament.Photosensitive resins.Fertilizer, nitric acid.Polymethyl methacrylate sheet.Autoclaved lightweight concrete panels, piles.Filtration membranes and modules.Photosensitive dry film resist, photosensitive polyimide.Pharmaceutical intermediates.Utilities (electrical power, steam, water)

Pharmaceutical materials.Diagnostic reagents.Liquors.Pharmaceuticals.Liquors.Pharmaceuticals.Pharmaceutical distribution.Equipment design, construction, and maintenance; utilities management.

Acrylonitrile, methyl methacrylate, 2,6-xylenol.Acrylonitrile-butadiene-styrene resin, styrene-butadiene latex.Synthetic rubber.Polymethyl methacrylate.Ion-exchange membranes.Utilities (electrical power, steam, water)Modified polyphenylene ether, polymethyl methacrylate, plastic optical fiber.

Autoclaved lightweight concrete panels, piles.Autoclaved lightweight concrete panels, piles.Autoclaved lightweight concrete panels, piles.Autoclaved lightweight concrete panels, piles.Autoclaved lightweight concrete panels, piles.Phenolic foam insulation panels.Explosives.Metal cladding.Acrylic latex, stencil paper.Polyvinylidene chloride wrapping films, biaxially oriented polystyrene sheets, polyolefin films, foams.Food wrapping films.

Region Plant Main products

Tokyo head office 1-1-2, Yurakucho, Chiyoda-ku, Tokyo 100-8440 Japan Tel. +81-3-3507-20601-2-6 Dojimahama, Kita-ku, Osaka 530-8205 Japan Tel. +81-6-6347-3111Osaka head office

Asahi Kasei Eltas Co., Ltd.Nobeoka Asahi Senni Co., Ltd.Sanyo Petrochemical Co., Ltd.Asahi Kasei Color Tech Co., Ltd.Japan Elastomer Co., Ltd.Kawasaki Sun Business Co., Ltd.Leona Kiko Co., Ltd.Asahi Home Products Co., Ltd.Suzuka Sun Business Co., Ltd.Wacker Asahikasei Silicone Co., Ltd.Asahi Kasei Metals Ltd.Asahi Geotechnologies Co., Ltd.Asahi Kayaku Kyushu Co., Ltd.Asahi Kasei City Guy Co., Ltd.Sakai Kako Co., Ltd.Fuji Kako Co., Ltd.Kyowa Kako Co., Ltd.Chuwa Kako Co., Ltd.Hokkaido Shiba Kogyo Co., Ltd.Asahi Kasei Microsystems Co., ltd.Asahi-Schwebel Co., ltd.Asahi Medical Co., Ltd.Asahi Vet Japan Co., Ltd.Koyo Fudosan Co., Ltd.Asahi Kasei Amidas Co., Ltd.Asahi Kasei Fukuri Service CorporationAsahi Research Center Co., Ltd.Shin Nihon Salt Co., Ltd.Ako Kaisui Co., Ltd.Asahi Finance Co., Ltd.San Denshi IndustryAsahi Kasei Kankyoujigyou Co., Ltd.Sun Business Services Co., Ltd.Toyo Kosan Co., Ltd.

Spunbond nonwoven fabrics.Cuprammonium rayon and polyester subcontracting, fish bait.Petrochemical feedstocks.Coloring and compounding of synthetic resins.Synthetic rubber.Contract work.Packing and shipping of resins and fibers.Sale of wrapping film and other household products.Plastic processing.Silicone products.Aluminum paste.Industrial explosives.Industrial explosives.Installation of piles.Construction materials processing.Construction materials processing.Construction materials processing.Construction materials processing.Construction materials processing.LSIs.Glass fabrics.Medical devices.Animal health products.Real estate brokerage, subcontracted office work.Employment agency, research.Management of welfare facilities.Information and analysis.Table salt.Table salt.Investment, finance.Engineering of electronics, control, and information systems.Disposing of industrial waste.Subcontracting.Welfare, insurance, advertising.

Rayon Techno Service Co., Ltd.Asahi Kasei Techno Plus Co., Ltd.Asahi Kasei Newport Terminal Co., Ltd.A&M Styrene Co., Ltd.Mizushima Sun Business Co., Ltd.Nippon Crenol Co., Ltd.Nobeoka Plastics Processing Co., Ltd.Asahi Kasei Pax CorporationAsahi Kasei Finechem Co., Ltd. Nobeoka PlantAsahikasei Epoxy Co., Ltd. Mizushima PlantAsahi Chemitech Co., Ltd.Oita Sun Business Co., Ltd.Asahi Kasei Construction Materials Co., Ltd.Hozumi Kako Co., Ltd.Matsudo Kako Co., Ltd.Asahi Giko Co., Ltd.Matsudo Matt Co., Ltd.Tanaka Kiko Co., Ltd.Asahi Kasei Marinetech Co., Ltd.Asahi Kasei Electronics Co., Ltd.Asahikasei Aime Co., Ltd. Nobeoka PlantMitaka Pharmaceutical Co., Ltd. Ohito PlantFukumusume Sake Brewery Co., Ltd.Sun Associates Co., Ltd.Asahi Kasei Ability Co., Ltd.Sun Foods Co., Ltd.Sun Trading Co., Ltd.Asahi Salt Co., Ltd.Asahikasei Jyoho System Co., Ltd.Asahi Engineering Co., Ltd.Nobeoka-sizai Industry Co., Ltd.Moriyama Sun Business Co., Ltd.Toyo Clean Chemical Co., Ltd.Toyo Kensa Center Co., Ltd.

Rayon subcontracting.Plastic molding, sale.Storage of raw materials.Polystyrene.Subcontracting.2,6-xylenol.Nylon 66 compounding. Fabricated plastic products.Specialty chemicals.Epoxy resin.Resin capsule anchors.Public welfare.Construction materials.Construction materials processing.Construction materials processing.Construction materials processing.Construction materials processing.Construction materials processing.Artificial fish reefs.Hall elements, pellicles.Contact lenses.Animal health products.Alcoholic beverages.Patent-related subcontracting.Printing, bookbinding, and office work.Provision of employee meals.Sales of fibers, chemicals, and medical devices.Table salt for food processing.Computer software.Plant, equipment, process engineering.Warehousing raw materials.Subcontracting.Environmental chemicals, antipollution equipment.Environmental and other analyses, clinical testing.

Company Business line/Main products Company Business line/Main products

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Outstanding achievements at Asahi Kasei Group plants and locations resulting from the constant effort to improve performance in terms of environmental protection, operational safety, and workplace hygiene and health were recognized with the following awards for fiscal 2000.

Awards for operational safety and workplace hygieneRecord for longest lost time accident-free operationThe Cashmilon Plant in Fuji received a certificate and plaque in recognition of its record for the longest lost time accident-free operation (28.84 million man-hours at the end of 1999) in the chemical fibers industry segment.

Commendation by the Commissioner of the Fire and Disaster Management AgencyThe Newport/Totoro district security association, to which our subsidiary Asahi Kasei Newport Terminal Co., Ltd. belongs, received an award from the Commissioner of the Fire and Disaster Management Agency in commendation for its efforts for voluntary and proactive safety in the handling of dangerous materials, active cooperation with government bodies to promote safety regarding dangerous materials, and outstanding merit in securing the safety of the public.

The Japan Chemical Industry Association Safety Effort AwardAwarded to the Chiba Plant for its accident-free record (establishment of a new record for longest accident-free operation in industry segment no. 3), implementation of safety management and education measures, and the safety management of business partners.

The Japan Chemical Industry Association Certificates for Accident-free OperationSeventeen plants throughout the Asahi Kasei Group received certificates from the Japan Chemical Industry Association for achieving accident-free operation over a specified period.

Asahi Kasei Group Safety AwardsThe Asahi Kasei Group presents internal safety awards to plants and laboratories in recognition of outstanding records of accident-free operation resulting from efforts to improve safety management and safety technology. Awards presented for fiscal 2000 are shown below.

Awards for fiscal 2000

Asahi Kasei Group Safety Awards

President's Safety Awards

Safety Effort Awards

Asahi Medical Co., Ltd., Oita Plant

Asahi Engineering Co., Ltd., System Machinery Dept. Electronics Materials Division, Resist Technology Center

Polyester Plant

Nobeoka Pharmaceuticals Plant

Polymer Center Group

Institute for Life Science Research

9.9 million man-hours accident-free (Ministry of Health, Labor and Welfare Class 2 accident-free record)

15 years accident-free15 years accident-free

3.5 million man-hours accident-free (Halfway to Ministry of Health, Labor and Welfare Class 1 accident-free record)

3.1 million man-hours accident-free(Halfway to Ministry of Health, Labor and Welfare Class 1 accident-free record)

3.5 million man-hours accident-free (Halfway to Ministry of Health, Labor and Welfare Class 1 accident-free record)

3.5 million man-hours accident-free(Halfway to Ministry of Health, Labor and Welfare Class 1 accident-free record)

Presentation of President's Safety Award

Awards Based on ESH Results

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Frequently Asked Questions

We receive many inquiries covering a wide range of subjects related to environmental and safety

concerns. Our response to some of the most common are given below

Q1:

Efforts at the Asahi Kasei GroupThe Japan Chemical Industry Association (JCIA) is working in cooperation with Japanese governmental bodies, academia, and industry associations in Europe and North America to advance the necessary research and investigation to increase scientific understanding of endocrine disrupters (also called endocrine modulators, environmental estrogens, or exogenous hormonally active agents). The Asahi Kasei Group has taken an active role in promoting the JCIA's work in this area.

Measures regarding specific substancesThe relevant manufacturers associations are working to advance research, experiments, and other concrete measures in response to concerns about the endocrine disrupting potential of specific chemical substances. As a member of the Japan Styrene Industry Association (JSIA), the Asahi Kasei Group is involved in efforts related to styrene oligomers.

Because polystyrene is commonly used in food containers, it was feared that styrene dimers and trimers may be extracted and ingested in harmful amounts. The JSIA has commissioned independent studies to investigate the biological effects of styrene dimers and trimers. The Netherlands Organization for Applied Scientific Research (TNO), an independent testing authority, was commissioned to conduct animal tests to confirm whether or not styrene dimers and trimers displayed estrogenic activity. The results of these tests indicated no estrogenic activity. The Shokuhin Yakuhin Anzen Center (Food and Drug Safety Center) was commissioned to conduct animal tests to confirm whether or not styrene dimers and trimers resulted in any adverse reproductive or behavioral effects. The results of these tests indicated no adverse effects.

Based on the results of these and other tests conducted worldwide, the Japanese Ministry of Health and Welfare (presently Ministry of Health, Labor and Welfare), Environment Agency (presently Ministry of the Environment), Ministry of Agriculture, Forestry, and Fisheries, and Ministry of International Trade and Industry (presently Ministry of Economy, Trade and Industry) have clearly concluded in interim reports and other documents that on present evidence, "it is not necessary to proscribe polystyrene use," and "there is noparticular need to perform further tests."

Further, the Environment Agency (presently Ministry of the Environment) stated, "we see no reason for any further scientific study on styrene dimers and trimers" in its Environmental Hormone

Strategic Plan "Speed '98" announced in May 1998. Styrene dimers and trimers were deleted from the list of "chemical substances suspected of having endocrine disruption activity" in theNovember 2000 revision.

Ongoing effortsNevertheless, because so much unclarity remains regarding the endocrine disrupter hypothesis, we believe further investigation based on sound scientific principles is essential. The Asahi Kasei Group will continue to promote the advancement of studies to address outstanding questions, while closely following the progress of the various investigations and research ongoing worldwide, and we are prepared to swiftly implement appropriate risk management measures which are deemed necessary during the course of this process.

Endocrine disruption is one area of priority for research being conducted by the JCIA as part of the Long-range Research Initiative (LRI), with a delegate from the Asahi Kasei Group involved from the outset. We also actively participate in international conferences on endocrine disruption.

Q2:

Containers and packaging make up a large portion of post-consumer waste. The Law for Promotion of Sorted Collection and Recycling of Containers and Packaging was enacted to reduce the volume of waste for disposal through measures to recycle post-consumer containers and packaging. At present, measures to recycle bottles made of glass and polyethylene terephthalate (PET) are being implemented, and beginning in April 2000, implementation will expand to include other containers and packaging made of paper and plastic.

Consumers, producers, and local governments each play a role in the recycling system established with this law. Consumers have the responsibility to separate recyclable materials from other wastes, and present them for collection in accordance with local guidelines. Local governments then are responsible for collecting the recyclable materials. Producers are obligated to recycle and reuse these materials. As an alternative to recycling the materials themselves, producers may consign recycling work to the Japan Container and Packages Recycling Association (JCPRA). The Asahi Kasei Group fulfills its obligation to recycle packaging for its consumer products through a consignment agreement with the JCPRA.

What is being done at the Asahi Kasei Group with regard to endocrine disrupters?

What measures is the Asahi Kasei Group taking to comply with mandatory recycling of containers and packaging?

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Q3:

We are working in cooperation with a wide variety of related parties to promote the establishment of a practical recycling system, and are participating in the Plastic Waste Management Institute's research on plastic recycling technology. At the same time, we are independently working to develop easily recyclable materials, and technologies for the utilization of recycled materials.

We have also sought to develop technologies to enable a reduction of the amount of plastic waste generated during the production process, as well as technologies to recycle plastic waste as feedstock for reuse.

For example, many common plastic moldings such as TV housings use halogen compounds as flame retardants for improved safety. Plastic wastes containing these compounds are difficult to recycle or incinerate safely, and so have generally been landfilled. The Asahi Kasei Group has developed recycling technology to remove and recover the halogen compounds as gases after melting the waste plastic. The remaining plastic can be reused by processing into solid fuel for steam boilers and steel mill blast furnaces. Practical application of this technology is now being studied.

As an example of plastic recycling in commercial use, scrap polyethylene terephthalate (PET) resin from bottles and film is broken down into its constituent monomers, which are then used for the production of polyester filament at our Nobeoka plant.

Q4:

During the past few years, we have made great strides in enhancing our capabilities to monitor and record chemical release and effluence. In 1995, the Japan Chemical Industry Association began an industry-wide program to survey and monitor the release of hazardous substances. Of the 286 substances under survey, 98 are handled in our operations. Through this monitoring program, we have identified the amounts of release and transfer of these substances at each of our sites, in concert with efforts to curtail their release throughout our operations.

In 1997, the Ministry of the Environment began pilot implementation of a Pollutant Release and Transfer Register (PRTR) program at selected locations, with our plant complex in Kawasaki participating actively from the outset. Through the

practical experience of participation in this ongoing pilot program, we have gained the know-how and capabilities which will form a reliable foundation for effective implementation of PRTR throughout the company.

In accordance with the Law concerning Reporting, etc. of Release of Specific Chemical Substances to the Environment and Promotion of the Improvement of Their Management (the "PRTRLaw") issued in July 1999, the record for fiscal2001 is to be reported between April and June 2002. With the monitoring capabilities we have established throughout the company, we are fully prepared to comply with these requirements.

In fiscal 2000 we prepared management systems at each internal company for compliance with respect to the 91 substances handled in the Asahi Kasei Group among the 354 substances specified by the PRTR Law.

Q5:

This is not a question which can be answered with a simple "yes" or "no." As many expertshave indicated, there are many complicated factors in the combustion process which are involved in the formation of dioxins. Unfortunately, the public image of polyvinylidene chloride (PVDC) and other chlorinated plastics has often been portrayed quite negatively, particularly with regard to the issue of dioxin formation.

It is known that dioxins can form during incomplete combustion of waste containing chlorine. Because chlorinated plastics contain chlorine, it is possible that dioxins will form when they are burned, depending on the combustion conditions. Some have suggested that chlorinated plastics should not be included with wastes to be incinerated, as dioxins would not form under any combustion conditions if wastes did not contain chlorine.

However, typical waste for incineration contains many different sources of chlorine: Chlorinated plastics are one; paper and cloth bleached with chlorine bleaches, and kitchen scraps containing salt are others. Even without chlorinated plastics, typical waste contains more than enough chlorine from other sources for the formation of dioxins, so removing chlorinated plastics from waste to be incinerated would not itself prevent dioxin formation. Further, chlorine is so common that it would be practically impossible to completely remove all sources of it from waste to be incinerated.

On the other hand, it has been substantiated that if waste incineration is performed under proper conditions, the formation of dioxins can be

What is the Asahi Kasei Group doing to promote the recycling of plastics?

How is the Asahi Kasei Group complying with Pollutant Release and Transfer Register?

Since Saran Wrap™ is made from polyvinylidene chloride, don't dioxins form when it is burned?

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What is the Asahi Kasei Group doing with regard to the control of stratospheric ozone layer-depleting substances?

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suppressed to an extremely low level, below that which is associated with health effects.

In January 1997 the Ministry of Health and Welfare (presently Ministry of Health, Labor and Welfare) established "Guidelines to Prevent Formation of Dioxins from Waste Treatment," to reduce the concentration of dioxins in emission gas to 0.5 ng-TEQ/Nm3 or less in existing incinerators and 0.1 ng-TEQ/Nm3 or less in new incinerators, through improvements to the incinerators and exhaust gas treatment apparatus, and proper control of operating conditions.

If incineration is performed in accordance with these guidelines, there is no need for concern about the formation of dioxins, whether or not the waste contains Saran Wrap™ or other products made of chlorinated plastics. Many municipal incinerators are now implementing the guidelines, and their operational performance is being verified. To encourage proper incineration, we have added an instruction to the product label which states: "After use, do not dispose by burning at home. Dispose with waste to be incinerated according to municipal regulations."

Far from being environmentally harmful, the outstanding properties of PVDC in fact result in environmental benefits which could not be obtained by substitution with other materials.

To prevent foods from spoiling, wrapping films must act as an effective barrier to both oxygen and water vapor. With its excellent gas barrier properties, PVDC film plays an essential role in the preservation of foods during shipment and in storage, reducing the amount of waste from spoilage.

Further, because a principal component of PVDC is chlorine, of which the earth holds an inexhaustible supply, its use actually contributes to resource conservation and emissions reduction. The production of a non-chlorinated wrapping film with the same barrier properties as PVDC would require much higher inputs of petroleum and energy, and result in much higher emissions of waste gases such as carbon dioxide.

In Japan, there is no realistic alternative to the present reliance on incineration to dispose of most wastes. Measures to deal with the dioxin problem through improved incineration are steadily yielding results. In fiscal 1999, the amount of dioxins emitted from municipal waste incinerators was one third the fiscal 1997 level. As the phase-in of these measures progresses, emission is targeted to fall to one tenth the 1997 level by 2002, and the problem will be resolved as implementation of these measures becomes complete.

Q6:

When new waste disposal regulations were enacted in 1997 specifying dioxin emission levels from industrial incinerators, we surveyed emissions from all 48 incinerators operated the Asahi Kasei Group, including small-scale incinerators (50 kg/hr capacity or less) to which the 1997 waste disposal regulations did not apply. To ensure that emissions from all of our incinerators would comply with the regulatory limit, we decided that we would cease using any incinerator which could not be brought into compliance.

Results of our survey indicated that none of our incinerators exceeded the regulatory limit. In anticipation of the structural and control standards which will come into effect in November 2004, we have reduced the number of incinerators to 22, and an program to achieve full compliance with the new standards is progressing.

Q7:

Condensers, transformers, and ballasts from disused fluorescent lamps have been recorded in a ledger and stored under strict control. Following the guidelines published jointly by the Ministry of the Environment and the Ministry of Economy, Trade and Industry for surveying the use and storage of ballasts with PCBs, we conducted a renewed survey which indicated that there is a possibility that some fluorescent lamp ballasts still in use may contain PCBs. We will systematically replace these fluorescent lamps, and ballasts with PCBs will be stored safely until an effective means of disposal is available.

Q8:

Of the stratospheric ozone layer-depleting substances defined by law, those handled in the Asahi Kasei Group are mostly used as freezer refrigerants. Some are also used as solvents and cleaning agents. Refrigeration equipment is being replaced or modified with the latest technology for operation without refrigerants specified as ozone- depleting. We are also conducting research on

What is the Asahi Kasei Group doing in relation to the issue of dioxin emissions from incinerators?

What measures is the Asahi Kasei Group taking related to the control and management of PCBs?

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Is the Asahi Kasei Group implementing life cycle assessment (LCA)?

What research and developmentis the Asahi Kasei Group performing related to environmental protection?

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the substitution of solvents and cleaning agents, and plan to cease using ozone layer-depleting substances when technology for their substitution is established.

Q9:

Because waste water from the steaming of cotton linter contains only inert matter of natural origin, its ocean disposal is not believed to directly cause harmful environmental effects, and is legally permissible. Nevertheless, ocean disposal relies on natural mechanisms to decompose and eliminate waste, and the capacity of these mechanisms is not unlimited. In a nation such as Japan - which is sometimes described as the world's largest disposer of waste in the ocean -it is possible that localized limits to natural decomposition mechanisms may be exceeded.

Based on our evaluation using the best available knowledge, we concluded that the environmental burden would be best minimized through a land-based treatment and disposal process. A concerted technological development effort resulted in a process which enables the incineration of waste water from the steaming of cotton linter while recovering energy in a thermal recycling system and generating almost no ash. Operation is precisely controlled to ensure that the environmental burden is minimized.

Q10:

The Asahi Kasei Group has long worked to develop technology which would contribute to environmental protection, and as shown in the Environment-friendly Products and Technologies section of this report, these efforts have yielded a variety of results. In addition, the Corporate Research and Development Administration is presently conducting research in several areas which are relevant to environmental protection.

These include the development of halogen-free flame retardants, development of basic technology for water treatment using microorganisms with water purifying activity in place of chemical agents, and development of an anisotropic conductive film used for electrical connections in place of solder to prevent lead pollution. To mitigate the amount of waste, a variety of applications in addition to construction

materials have been developed to effectively utilize sludge generated in the production of autoclaved lightweight concrete panels.

For energy conservation and clean energy, we have developed a phenolic foam insulation panel with outstanding thermal insulation performance in construction applications. We are also developing a proton exchange membrane for use in polymer electrolyte fuel cells, a promising next-generation clean energy source.

In addition, development is progressing for microanalysis technology to enable analysis of samples of extremely low concentration. Applications will include endocrine disrupters and substances associated with sick house syndrome.

Q11:

In the Asahi Kasei Group, we have performed studies using LCA and life-cycle energy assessments for our food wrapping film and housing products. Based on a product's function and performance characteristics, LCA is a method of evaluation of the environmental burden of a product throughout its life cycle -from the procurement of raw materials, through production, distribution, and use, to disposal. We believe LCA is potentially an effective tool for comparing the environmental impact of different products.

Recently, purchasers have begun including consideration of environmental impacts in the selection of products, but an objective determination of which among several products is most environment-friendly can be difficult. Concepts such as LCA can be very useful in assisting this process. Unfortunately, LCA is still under development, and sufficient data has not yet been compiled for its use to be practical at present.

Despite the challenges, we believe that concepts such as LCA to evaluate the environmental impact of products over their life cycle are important, both for consumers when they choose products and for manufacturers when they develop new products.

Does incineration of waste water from the steaming of cotton linter really lessen the environmental burden compared to ocean disposal?

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Independent Review

1. Scope and Objectives of VerificationWe have reviewed the "Responsible Care Report: Environmental Preservation,

Product Safety, Operational Safety and Health, 2001 edition" ("the Report"), which Asahi Kasei Corporation Co., Ltd. ("the Company") has prepared on its own responsibility.

The scope of this review covers all information included in the Report. The objective of this review is to express our independent view, to the extent that we perform review procedures, on the reliability of the Responsible Care data ("the RC data") collection and reporting processes used to compile the Report and the accuracy of the information included the Report. The review, however, does not guarantee the completeness of the information included in the Report.

2. Basis of OpinionThere are no generally accepted standards for reporting or verifying the RC

data. Therefore, we have adopted a verification approach that reflects emerging practices and guidance.

To reach our opinion we conducted the following verification procedures at the headquarters, the Moriyama branch, the Kawasaki branch and the Suzuka plant.

At the corporate level(1) Examination of various internal rules and documents related to processes to

manage, collect and compile data reported from each site, and (2) Interview with the management and persons responsible for environmental

management. At the site level(1) Examination of various internal rules and documents related to processes to

manage, collect, compile and report data obtained from each division, and(2) Interview with persons responsible for environmental management and each

operation leader.

3. Opinion

We have reached the following opinion as a result of our comprehensive evaluation of the information obtained through our verification.

(1) The Company established and used reasonable data collection and reporting processes to compile the Report.

(2) The information contained in the Report is consistent with the supporting documents that have been obtained during our review process.

[translation from Japanese]

June 17, 2001

Chuo Sustainability Research Institute Corporation(Member of ChuoAoyama Audit Corporation Group)

To: Kazumoto Yamamoto, President Asahi Kasei Corporation

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Printed on recycled paper 01.10 (SN)

Hibiya Mitsui Building1-2 Yurakucho 1-chome, Chiyoda-ku

Tokyo 100-8440, Japan

Environment & Safety DepartmentPhone: +81-3-3507-2192, Fax: +81-3-3507-2452

URL: http://www.asahi-kasei.co.jp/

Published October 2001

TM: Trademark or registered trademark of Asahi Kasei Corporation or third parties granting rights to Asahi Kasei Corporation.

Please direct any questions or comments regarding this pamphlet to: