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SHOWA DENKOCSR Report
This Report has been edited as an annual report on non-financial information, presenting efforts by the Showa
Denko Group to contribute to the environment and society. This Report is divided into the following four sections:
CSR Management; Social Commitment Report; Environmental Efforts and Safety Efforts.
For detailed financial information, please refer to the Financial Results and Financial Statements.
http://www.sdk.co.jp/english/ir/library/results.htmlAs for disclosure items, we analyzed our stakeholders' opinions and requests and covered priority topics,
focusing on action policies and performance in 2011 and giving specific examples.
Please note that the website provides more comprehensive and detailed information on Showa Denko
Group CSR activities, including the latest information and environmental and social activity reports for individual
worksites.
Period covered by this Report
This Report covers information for the period January 1 to December 31, 2011, with some information also
provided for 2012. The term ”the year” as used in this Report refers to the 2011 calendar year. The term ”fiscal year”
as used in this Report refers to the period from April 1, 2011, through March 31, 2012.
Organization covered
”Showa Denko” as used in the text of this Report refers to Showa Denko K.K., while “Showa Denko Group” refers
mainly to Showa Denko and its consolidated subsidiaries in Japan. The financial performance data provided herein
are consolidated figures for the Showa Denko Group; environmental performance data are for Showa Denko K.K.
Where environmental performance data include figures for Group member companies,the scope of applicability is
noted for each category of data. Social performance data provided herein represent information and figures for
Showa Denko K.K. Information on consolidated subsidiaries in Japan and abroad has been added to the sections
of Community Relations and Employee Relations.
Publication date
August 2012(The next edition is scheduled for publication in August 2013.)
Guidelines/guidance referenced● ISO 26000 (2010)●Sustainability Reporting Guidelines 2006 (G3.1 Guidelines) from the Global Reporting Initiative (GRI)●Environmental Reporting Guidelines 2007 from the Ministry of the Environment of Japan
Prepared by
CSR Office, Showa Denko K.K.
13-9, Shiba Daimon 1-chome, Minato-ku, Tokyo 105-8518, Japan
Report Scope
Editorial policies
Editorial policies / Report Scope
An Overview of the Showa Denko Group / Main products
Top Message
Research & Development/Intellectual Property
Future society the Showa Denko Group hopes to create
CSR Activity Report
CSR ManagementPast efforts and Future policies and plans
CSR-related Achievements in 2011 and Issues to Be Addressed
Corporate governance
Risk management
Responsible Care management
Responsible Care Activities Plan
Social Commitment ReportRelationships with our stakeholders
Employee relations
Customer relations
Shareholder and investor relations
Partner relations
Community relations
Environmental effortsResource use and environmental impact
Environmental accounting
Climate change efforts
Reducing chemical substance discharge
Environmental considerations: Atmosphere, water, and, soil
Reducing waste and encouraging recycling
Biodiversity efforts
Safety effortsDisaster prevention
Occupational health and safety
Chemical substances safety efforts
Third-party Verification /Assurance
CSR Report 2012Response to Third-party Verification/Assurance
CSR Report 2012Showa Denko Group CSR Report CONTENTS
24689
101112151820
222428303132
36373841434445
464850
52
54
2
SHOWA DENKO CSR Report 2012
3
SHOWA DENKO CSR Report 2012
Petrochemicals
Chemicals
Electronics
Inorganics
Aluminum
Changes in consolidated sales
(Billion yen)
Changes in total number of employees
(persons)
2007 2008 2009 2010 2011 (year)0
12,000
8,000
4,000
2007 2008 2009 2010 2011 (year)0
12,000
8,000
4,000
Consolidated sales by segment
27.9%
14.5%
18.4%
8.6%
13.8%
Changes in consolidated operating income and ratio of operating income to sales
(Billion yen)Operating income ( )%
2007 2008 2009 2010 2011 (year)
0
900
600
300
0
9
6
3
-100 -1
For information on main Group companies in Japan, please go to the following
Others
16.8%
Japan OverseasOverseas
Ratio of operating income to sales
An Overview of the Showa Denko Group
Major products by sector
Petrochemical
Company name: Showa Denko K.K.
Head office location:13-9, Shiba Daimon 1-chome,
Minato-ku, Tokyo 105-8518, Japan
Number of consolidated subsidiaries: 42
Total number of employees: 11,542
● Olefins Division ● Organic Chemicals DivisionThe Petrochemicals Sector is producing and selling cracker products, such as ethylene and propylene,
and organic chemicals derived from them, including acetyls and allyl alcohol derivatives.
Chemicals● Functional Polymers Division ● Industrial Gases Division ● Basic Chemicals Division ● Electronic Chemicals Division ● Specialty Chemicals Department
The Chemicals Sector provides industrial gases and chemicals, high-performance chemicals, elastomers,
high-purity gases and chemicals for the semiconductor industry, and resin composites.
Inorganics● Ceramics Division ● Carbons Division ● Fine Carbon Department
The Inorganics Sector provides ceramics products such as alumina, abrasive, functional fillers and
graphite electorodes for elecronic steel making furnaces, fine carbon products.
Aluminium● Rolled Products Division ● Extrusions/Specialty Products Division ● Shotic Division ● Aluminum Can Division ● Cooling Device Business Development Department
The Aluminum Sector provides aluminum materials and high-value-added fabricated aluminum.
HD (Hard Disk)The HD Sector provides high-storage-capacity HD media for PCs, consumer electoronics and
enterprises.
Electronics● Electronics Materials Division ● Rare Earth DivisionThe Electronics Sector provides compound semiconductors such as ultra high-bright LEDs and rare earth
magnetic alloys.
Advanced Battery Materials DepartmentThe Advanced Battery Materials Department (ABM) provides lithium-ion battery components. In response
to the progress of technical innovation in this area, ABM is working hard to speedily develop cutting-edge
products.
(as of December 2011)
AmericaEurope
China,Taiwan,Korea
Etc.Asia
2
1http://www.sdk.co.jp/english/about/network/group.html
1 2 3 4
3
4
Head Office Nagoya Branch Osaka Branch
1 2
3
Corporate R&D Center
Analysis & Physical Properties Center
Safety Evaluation Center
Corporate R&D Center(Kawasaki)
Production Technology Center(Okawa)
Kitakata Plant
Higashinagahara Plant
Oyama Plant
Oyama Plant (Nasu)
Isesaki Plant
Chichibu Plant
Kawasaki Plant
Yokohama Plant
Chiba Plant
AmericaShowa Denko Carbon, Inc.
Showa Aluminum Corporation of America
Showa Denko America, Inc.
EuropeSHOTIC Europa Industria de Aluminio Lda.
Showa Denko Europe GmbH
F2 Chemicals Limited
China Taiwan KoreaShowa Denko (Shanghai) Co., Ltd.
Shanghai Showa Highpolymer Trading Co., Ltd.
Shanghai Showa Highpolymer Co., Ltd.
Korea Showa Chemicals Co.
Shanghai Showa Specialty Gases Purification Co., Ltd.
Showa Specialty Gas (Taiwan.) Co., Ltd.
Shanghai Showa Chemicals Co., Ltd.
Taiwan Showa Chemicals Manufacturing Co., Ltd.
Lianyungang Zaoling Abrasives Co., Ltd.
Showa Denko (Dalian) Co., Ltd.
Showa Denko Aluminum (Nantong) Co., Ltd.
Taiwan Showa Denko Electronics Co.,Ltd.
Baotou Showa Rare Earth Hi-tech New Material Co., Ltd.
Showa Denko HD Trace corp.
Ganzhou Zhaori Rare Earth New Materials Co., Ltd.
Shodex China Co., Ltd.
Shanghai Showa Electronics Materials Co., Ltd.
Zhejang Quzhou Juhua Showa Electoronic Chemical Materials Co., Ltd.
etc AsiaPT.Showa Esterindo Indonesia
Eternal Showa Highpolymer Co., Ltd.
Showa Highpolymer Singapore Pte.Ltd.
Showa Specialty Gas Singapore (Pte.) Ltd.
SHOTIC (Singapore) Pte Ltd.
Showa Aluminum Manufacturing Philippines Corporation
PT Indonesia Chemical Alumina
Omachi Plant
Shiojiri Plant
Tatsuno Plant
Sakai Plant
Hikone Plant
Tokuyama Plant
Oita Complex
Aluminium Technology Center (Oyama)
Fukuoka Branch
Sites in Japan
Overseas Sites
Showa Denko HD Singapore Pte Ltd.
Showa Denko HD (Malaysia) Sdn.Bhd.
Showa Denko Rare-Earth Vietnam Co., Ltd.
Showa Denko Singapore(Pte.)Ltd.
3
2
1
854.2 billion yen
47.4 billion yen
17.0 billion yen
Sales:
Operating income:
Net income:
Consolidated business results:
4
SHOWA DENKO CSR Report 2012
5
SHOWA DENKO CSR Report 2012
Since the determination in 2005 to strengthen its CSR
activities with the establishment of the CSR Committee and
other measures, the Showa Denko Group has been exerting
its efforts toward “a company contributing to the sound
growth of society” through the supply of products and ser-
vices.
Because the fundamental materials and parts produced
by our Group are used in upstream processes in the manu-
facture of final products, they are not directly visible to gen-
eral consumers. However, facing a crisis like the Great East
Japan Earthquake last year, we realized again that our group
has a wide variety of products indispensable to support the
social infrastructure, represented by sodium hypochlorite
used for sterilization of water and sewerage as well as am-
monia necessary for denitration of exhaust gas, and that we
are required to continue a stable supply of those products.
At the same time, we became keenly aware that our busi-
ness assumes major responsibilities for society, and felt even
more proud of the significance of our business activities. (See
the Special Edition of Showa Denko CSR Report 2011
released last year.)
With regard to the disaster of the Great East Japan Earth-
quake, as we conduct business at four worksites and affili-
ated companies in Fukushima Prefecture, we have many
chances of being informed of the status of the affected
areas. We are well aware of the realistic challenges including
the status of the sufferers’ inconvenient life in many affected
areas in Fukushima Prefecture, and the industries that suffer
from stagnating restoration.
Once again, we would like to pray that the souls of victims
may rest in peace, and we are firmly determined to continue
to provide assistance for restoration of the quake-hit regions
through planning and implementing the activities such as
Fukushima and Aizu Foods and Products Marché. The
Showa Denko Group will exert its efforts to contribute to the
quick restoration of the industries and the life of those
affected people.
The Group has been promoting its five-year medium-term
consolidated business plan “PEGASUS” since 2011. Under
this plan, we aim to materialize an evolving chemical com-
pany group with individualized products to help create a
society where affluence and sustainability are harmonized.
“Energy/Environment” and “Electronics” have been set as
two key business domains.
The CSR Report 2012 summarizes our CSR activities
conducted in link with this medium-term consolidated busi-
ness plan. Additionally, a separate volume of the CSR Report
fully introduces products and services that serve as strong
wings of the flight of PEGASUS, together with detailed expla-
nations on the products and businesses aimed to build a
society where affluence and sustainability are harmonized, as
well as the in-depth illustration of the directions of technologi-
cal development.
The majority of the Group’s products are produced and
distributed to our customers by taking out substances useful
to society, or increasing added values through chemical
reactions or processing based on materials obtained from
the natural world. We are well aware that our whole business
activities have a major impact on the global environment in
that process.
The Showa Denko Group enacted the Responsible Care
Action Guidelines in 1995 as its corporate policy related to
the environment, safety and health, and positioned such
policy as the Group-wide activities, and signed the Respon-
sible Care Global Charter in 2005. Responsible Care is the
chemical industry’s voluntary initiative, representing a com-
mitment to improve the environmental, safety and health per-
formance of chemicals over their entire life cycles, namely,
from the development, production, use to the disposal, in
pursuit of increasing social trust and communication. This
CSR report describes these environmental considerations
from a variety of angles.
For instance, in procuring materials, the Group promotes
collaboration with supplier partners by establishing the
Guideline for CSR Purchasing, which states consideration for
CSR purposes. Also, we investigate the impact of our busi-
ness activities on the environment, the result of which is used
to prioritize our measures to grapple with biodiversity prob-
lems.
What is indispensable for attaining these sustainable
growths is the presence of our employees. We believe it is
also important to create appropriate environment so that the
individual employees can upgrade their capability and dem-
onstrate it to the maximum extent. To that end, we place an
emphasis on building comfortable worksites in collaboration
with cooperative companies, which means happy, healthy
and safe working environment not only for our employees but
also for their families, together with measures to nurture
diverse human resources capable of supporting the global-
ization of the Group’s business activities.
Concurrently, as to stable operations of the manufacturing
sites, we consider it very important to provide environment in
which local residents living nearby understand our business
and can live without anxiety. To that end, we will continue
our activities in pursuit of understanding by local residents of
our business, while promoting dialogues in various forms to
listen to their honest opinions and realize our harmonious
coexistence.
This report provides plain explanations on these general
activities of the Group. Please read our CSR reports and give
us your candid opinions.
With evolving, individualized chemicals,
we contribute toward creating a society
where affluence and sustainability are harmonized
Introduction
Contribution to restoration andreconstruction in the quake-hit regions
Promotion of the Medium-term ConsolidatedBusiness Plan “PEGASUS
For a sustainable growth
T O P M E S S A G E
Hideo IchikawaPresident and Chief Executive Officer ofShowa Denko K.K.
Hideo IchikawaPresident and Chief Executive Officer ofShowa Denko K.K.CEO of Showa Denko GroupChairman of CSR Committee
従業員との関わり
トップメッセージT O P M E S S A G E
6
SHOWA DENKO CSR Report 2012
7
SHOWA DENKO CSR Report 2012
(Number of applications) (%)
2005 2006 2007 2008 2009 (year)0
1,000
800
600
400
200
0
50
40
30
20
10310
228
455
322
221284
387384
205
686
31.133.4
40.742.3
34.8
24.0 26.027.0
28.0
26.0
Number of global applications (Showa Denko)
(Showa Denko) (Showa Denko) (All applicants)
Global application ratio Global application ratioNumber of applications in Japan
Trend of number of our patent applications in Japan and abroad
Research & Development/Intellectual Property
Intellectual Property
Energy/Environment
Acquisition of intellectual property rights and establishment of
patent networks
As the majority of Showa Denko’s businesses are operated globally, we
aggressively apply for patents in foreign countries with the aim of support-
ing those businesses from the intellectual property side.
The chart shown in the right is an excerpt from “Self-analysis data of
Patent Strategy Portal Site 2012” on the Japan Patent Office website. It
illustrates that the Showa Denko’s global application ratios were about
10% higher than those by all applicants.
We use best efforts to secure our superiority in the principal businesses
and newly developed important products based on intellectual property
rights by establishing patent networks.
Risk Management
“Our Code of Conduct” stipulates that the Company shall
respect other parties’ intellectual property rights. To that
end, we have been consistently watching the trend of other
parties’ intellectual property since a patent surveillance system
was established in 1996. At the initial stage of such system,
surveillance was conducted using “paper” documents, and
electronic procedures were introduced gradually from 2005.
Last year, the Company established a new system capable of
monitoring both Japanese and foreign patents including the
Chinese ones by using the group-wide patent search system,
called “Shareresearch” (developed by Hitachi Ltd.).
System relating to employee inventions
Following the amendments to the Patent Act in 2004, the
Company revised its system relating to employee inventions in
2005, and revised it again last year with the aim of improving
fairness for inventors, effective July 1, 2011. In the process of
revision, we had “deliberation meetings” with employees at 21
offices nationwide, to comply with the provisions of Article 35 of
the Patent Act.
It is our policy to pay “a reasonable remuneration” for the
inventor’s contribution as stipulated in the Patent Act, and no
employee has ever entered an action against us in connection
with the remuneration for invention.
Trinity Strategy
Under the new medium-term consolidated business plan PEGASUS, we have decided to focus on the two business
domains of “Energy/Environment” and “Electronics.” To maximize the values we provide to society in the two domains,
we will brush up our proprietary key technologies and acquire innovative technologies, thereby creating new businesses.
We will aggressively promote “open innovation” and establish ties with partners inside and outside Japan, and quickly
realize commercialization of new technologies.
Also, we position the intellectual property strategy as one of our crucial management strategies to promote the Trinity
Strategy operation combined with business strategy and R&D strategy.
BusinessStrategy
IntellectualPropertyStrategy
R&DStrategy
We will contribute to creating a society in which
affluence and sustainability are harmonized through
providing our customers with components, materials and
solutions that lead the advanced and pioneering technol-
ogy domains based on our unique and superior technolo-
gies in the two business domains of “Energy/Environment”
and “Electronics” as set in the PEGASUS.
Future societythe Showa Denko Group
hopes to create
●
●
●
●
Heat-resistant transparent films
Functional monomers
IT-related chemicals
Printed electronics● Next-generation high-density
storage media
Electronics
● LED and High heat conduction aluminum substrates
● Biorefinery● Fuel Cell Materials
● LiB Materials● SiC epitaxial wafers forPower Devices
● Organic EL
The above data represents data up to 2009 due to time lags from application in Japan until application in foreign countries.
The graph of the global application ratio (All applicants) was made based on figures taken from portal websites.
*
*
8
SHOWA DENKO CSR Report 2012
9
SHOWA DENKO CSR Report 2012
お客様との関わり
We have formulated the CSR policies and plans linked to the medium-term Consolidated Business plan “PEGASUS” which started in 2011.
Each one of the employees worldwide shall act in clear awareness
of corporate ethics and compliance issues.
2011/2015The Group’s CSR Policies
“We contribute to creating a society whereaffluence and sustainability are harmonized”
– That is CSR well established in the heart of each one of us.
CSR-related Achievements in 2011 and Issues to Be Addressed労働安全衛生 Plans for 2011 Achievements in 2011 Plans for 2012
Corporate ethics andcompliance
◎ P13
P14
P16
P15
P15
P16
P29
P29
P30
P30
P27
P26
P24
P25
P31
P32-35
P20-21
-
-
-
-
-
P14
P16
◎
◎
◎
◎
◎
◎
◎
◎
◎
◎
◎
◎
◎
◎
◎
◎
◎
◎
◎
◎
◎
◎
◎
General riskmanagement
Dialogue withstakeholders
Customers
Shareholders
Employees
Partners
Localcommunitiesand society
Responsible Care
Reviewing and revising the Code of Conductand its guidelines
Expanding education on corporate ethics andcompliance
Disseminating and promoting use ofcorporate ethics hotline
Raising awareness through group discussionsand e-learning
Organizing compliance education system
Reviewed and revised the Code of Conduct and its Guidelines, and issued under the name of “Our Code of Conduct and Its Practical Guide 2012.”
Disseminating “Our Code of Conduct and Its Practical Guide”Issuing a global version
Raising awareness through group discussions, etc.
Expanding education on corporate ethics and compliance
Disseminated by distributing “Our Code of Conduct and Its Practical Guide” to all the Group companies.
Formulating countermeasures against a major quake hitting the capitalReviewing the details of investments stated in the second half of the medium-term management plan
Reviewed the details of investments under the medium-term management plan.
Implemented an in-house training of crisis communications
Implemented the 2nd support program for internal controls in China.
Summarizing the support program for internal controls in China.
Expanding the use of independent organizations for internal audit.
Used independent organizations for internal audit.
Posted full report on website and issued a Special Edition.
Issuing CSR reports
Enhanced the issue of site CSR reports.
Reducing complaints
Mainta in ing dia logue wi th customers through business transactions
Cont inued to improve qual i ty assurance activities.
Maintaining dialogue with customers through business transactions
Reduced complaints. Reducing complaints
Enhanced the Corporate Ethics Month activities.
Organized the level-specific contents of the CSRand compliance education.
Implemented as in the past.
Evaluation Page
Promoting risk management Reviewed the existing risks. Promoting risk management
Promoting countermeasures against majorearthquakes
Follow-up for extracted items of generalaffairs risks
Implementing education on the risks commonlyobserved in the general affairs
Providing support for risk management andinternal controls to overseas subsidiaries
Issuing CSR reports
Considering creating overseas ethics hotline
Promoting IR (promotion of overseas IR)
Responding to SRI(socially responsible investment)
Examining and implementing new activitiesin collaboration with labor union
Promoting programs to support the careerdevelopment of female employees
Promoting CSR procurement
Promoting CSR and environmental publicrelations
Ensuring implementation of RC action plan Promoted based on the plan. See Pages 18-19. Ensuring implementation of RC action plan
Promoting CSR and environmental public relations
Contributing to local communities throughin-house resources
Promoted classes-on-demand, plant tours andinternships.
Conducted environmental public relations in MECC(Minato Eco-conscious Consortium). Posted an advertisement on the environmental management forum.
Contributing to local communities through in-houseresources
Disseminated the self-assessment, anddeepened CSR visits.
Considering horizontal development to affiliatedcompanies
Implemented programs to support the careerdevelopment of female employees as scheduled.Introduced new measures to support reinstatement.
Promoting programs to support the careerdevelopment of female employees
Launched a study team of personnel systems Promoting collaboration with the labor union concerningthe creation of more comfortable working environment
Promoted as scheduled. Responding to SRI (promotion of overseas IR)
Continued response to SRI lists. Responding to SRI Continuing response to SRI lists
Establishing and maintaining human rightsconsciousness
Continued to provide human rights education.
Globalization of employees' nationality Globalization of employees' nationalityContinued to employ foreign national employees
Establishing and maintaining human rightsconsciousness
CSR ManagementThrough the medium-term consolidated business plan PEGASUS, the Showa Denko Group, with its evolving, individu-
alized chemicals, pursues the goal to “contribute to create a society where affluence and sustainability are harmonized.”
As part of its CSR (corporate social responsibility) activities, the Showa Denko Group makes every effort to ensure that
each of its employees undertakes Group activities in good faith and meets the expectations of Group stakeholders.
Comply with the guidelines for social responsibility (ISO 26000),
and turn the PDCA cycles of core issues.
Companywide general risk management shall work effectively
at all levels of each worksite.
Interactive dialogues with stakeholders shall be secured and
strong relationships of mutual trust exist.
CSR Activity Report : CSR Management
CSR Policies and Plans linked to the Medium-termConsolidated Business Plan “PEGASUS”
10
SHOWA DENKO CSR Report 2012
11
SHOWA DENKO CSR Report 2012
Corporate Governance
Corporate governance structure
Decision-making/supervision
Business execution
Audit
Cooperation
Board of Directors
IR Committee
President & CEO
Security Export ControlCommittee
Safety Measures Committee
Responsible CareCommittee
Corporate Officers
Business sectors
Auditors
Board of Auditors
Accounting officeAccountingaudit
Businessaudit
General meeting of shareholders
Internal Audit Office
CSR Committee
Risk Management Committee
Corporate Ethics Committee
Management Committee
R&D Committee
1 Corporate governance:In the narrow sense, this term refers to the relationship between the shareholders and the managers of a company and the mechanism or structure of decision making and business operations in the company. In the broad sense, it refers to the relationship between the company and its stakeholders and is also related to the question, “For whom
does the company exist?”
2 Responsible Care:“Responsible Care”is the chemical industry’s global voluntary initiative, representing a commitment to work together to continuously improve the environmental, health and safety performance of chemicals over their entire life cycles, namely, the development, production, distribution, use, final consumption and disposal.
TOPICS
Corporate governanceShowa Denko works to ensure the soundness, effectiveness,
and transparency of its management and to continually improve its
corporate value. To this end, the Group is improving its corporate
governance 1based on the following strategies:
Group managementWhile maintaining respect for the independence of affiliated
companies, the Showa Denko Group has established its Vision,
“Our Code of Conduct”, medium-term consolidated business
plans, management policies, and annual action plans. Group affili-
ates undertake business activities in cooperation with sections in
charge of their businesses and report on the execution of their
business activities in accordance with Group management rules.
●Strengthening compliance ●Strengthening management supervision and
oversight functions●Clarifying management responsibilities●Rapid, effective decision-making and task
implementation●Strengthening the information disclosure system
Risk management is carried out on a Group basis in accor-
dance with Group's risk-management rules. We have exerted our
efforts to establish firmly the group-wide awareness of compli-
ance based on “Our Code of Conduct and Its Practical Guide.”
Showa Denko auditors and internal-audit sections audit and
examine the performance of affiliates as necessary. In addition,
auditors work to ensure coordination with corporate auditors of
key affiliates in various ways, including periodic meetings.
Management OrganizationsBoard of Directors
At Showa Denko, the Board of Directors is responsible for
important decision-making and supervisory functions, while cor-
porate officers are responsible for business execution functions.
The Board of Directors consists of 9 directors, including two
outside director. Chaired by the Chairman of the Board, the
Board both determines the company's fundamental policies and
considers and makes decisions on matters stipulated in the
Companies Act and the Articles of Incorporation, in addition to
decisions related to key issues regarding the execution of busi-
ness operations. The Board of Directors also oversees each
Director's executive actions.
Board of AuditorsShowa Denko employs an auditor system. The Board of
Auditors consists of five auditors, including three outside audi-
tors. Auditors attend meetings of the Board of Directors and
other important meetings within the company, offer opinions
when needed, and audit the execution of business operations,
offering suggestions and advice to ensure that the Company
operates in a sound manner. Auditors also seek to strengthen
consolidated Group management by enhancing the overall
auditing of Group member companies.
Corporate OfficersTo ensure swift decision-making in the execution of business
operations and to invigorate such operations, Showa Denko has
adopted a corporate officers system.
CSR CommitteeShowa Denko has established a CSR Committee at the high-
est management level to oversee all management strategies
from a CSR perspective. Chaired by the President & CEO, the
CSR Committee's membership consists of members of the
Management Committee.
Management Committee and R&D CommitteeMeeting weekly in principle, the Management Committee
consults and makes decisions on issues to be submitted to the
Board of Directors and on important general issues related to
company management. The R&D Committee deliberates and
makes decisions on important issues related to research and
development.
Business-sector structureTo clarify its system of responsibility for implementing business
operations, Showa Denko has adopted a structure based on
business sectors. To ensure thorough performance evaluations
that focus on results, we have also implemented a system for
evaluating the performance of business sectors.
CommitteesShowa Denko has established a number of committees to
handle specific issues central to the undertaking of its business
operations. These include the Risk Management Committee,
the Corporate Ethics Committee, the Responsible Care 2
Committee, the Security Export Control Committee, and the IR
Committee.
Each committee conducts in investigations, research, and
deliberations related to its areas of responsibility.
Internal Audit OfficeAs an organization under the direct authority of the President, the
Internal Audit Office performs internal audits. The Internal Audit
Office investigates the status of execution of company business
operations, including those of Group member companies, and
verifies their accuracy, appropriateness, efficiency, compatibility with
Group management policies and plans, and soundness. These
measures also include assessment of internal control over financial
reporting as well as the planning, drafting, and implementation of
various steps to maintain and improve the quality of such reporting.
Legal AdvisorShowa Denko works to ensure compliance with laws, obtaining
advice on legal matters from its Legal Advisor as needed.
Accounting auditsShowa Denko works to ensure the soundness of its accounting
practices, undergoing periodic accounting audits by certified public
accountants.
CSR Education and Enlightenment ActivitiesContribution to sustainable growth of international society
through manufacturing is set as the management philosophy of
the Showa Denko Group as its basic value.
Practical Guide
Our Code ofConduct
Groupmanagementphilosophy
Philosophy diagram
Our Code of Conduct and Its Practical GuideThe Showa Denko Group clarified in the “Code of Conduct”
and the corresponding Guidelines what should be done by each
employee as a member of society.
In January 2012, we established “Our Code of Conduct and
Its Practical Guide” as a revised version, reflecting the recent
changes in the needs of society to companies as well as the
changes in our Group itself.
They were compiled with a view of what kind of values should
be offered to our stakeholders, upon consideration of contents to
be included and by reference to ISO26000. The booklet
distributed to the Group employees contains “Commentaries,”
“Relevant laws and regulations, and internal rules” and “Points
for discussion” for each item, which is intended for use as a tool
to “understand, discuss and put into practice.”
We will make every effort to disseminate the Code of Conduct
so that each employee will be able to realize the actual
connection of his/her work with society.
Our Code of Conduct and Its Practical Guide
12
SHOWA DENKO CSR Report 2012
13
SHOWA DENKO CSR Report 2012
Risk management
TOPICS for 2011
Our Countermeasures against an Earthquake with an Epicenter in the Tokyo Metropolitan Area
TOPICS
Bulletin board screen
Our Efforts during the Corporate Ethics Month for 2012The Showa Denko Group focuses on enhancement of corporate
ethics, compliance and CSR in January every year by setting
Corporate Ethics Month. In January 2012, when the timing coin-
cided with the establishment of “Our Code of Conduct and Its Prac-
tical Guide,” our activi-
ties were centered on
gaining deep under-
standing of our code of
conduct through group
discussions at work-
places and putting it into
practice.
Assuming an earthquake with a magnitude of 7.3 in the north Tokyo Bay,
in which the number of totally destroyed structures is expected to reach the
highest among those earthquakes with an epicenter in the Tokyo Metropoli-
tan Area anticipated by the Cabinet Office, Showa Denko’s Head Office has
checked the seismic capacity of the Head Office building, and is engaged in
securing stockpiles such as food, drinkable water, blankets, etc. in preparation
for an event of damage in electricity, water supply and sewerage systems,
telecommunication and other essential utilities and means of transportation.
In March 2012, Showa Denko signed the “Cooperation Agreement
concerning Accepting People Experiencing Trouble in Returning Home, etc. in
the Event of Disasters” with the Minato Ward Office of Tokyo. Based on this
agreement, we will cooperate in offering part of our facilities for use as
temporary shelters and reserved food and drinkable water to people facing
difficulties in returning home.
The risk-management PDCA cycle
Listing risks Implementingcountermeasures
Managementreview
Proposingcountermeasures
Reviewingcompanywide tasks
Companysummaries
Sectorsummaries
Implementing riskcountermeasure plans
Assessing thepotential impact
Analyzing currentconditions
It was the first time for us to have discussions within a group on
a theme selected by the group while in the past discussions we
had confirmed the details of the former “Code of Conduct and Its
Guideline” in the Corporate Ethics Month. Active exchange of
views was conducted at all workplaces concerning compliance,
safety management, communication in the workplace and involve-
ment with local community, etc.
Reports on the discussions were submitted to the secretariat,
the results of which were disclosed via the intranet. We will raise
our consciousness further by knowing the details of discussions of
other worksites
One of the Group’s challenges on the CSR activities is for each
employee to act with the awareness of CSR on a daily basis. To
that end, we believe that the most important thing is to understand
the content of “Our Code of Conduct and Its Practical Guide,” and
think what should be done, and put it into practice. We plan to
disseminate them not only in the Corporate Ethics Month but also
through in-house training programs and the internal media.
Discussions within a group
1 BCP (Business Continuity plan):
事業継続計画。自然災害や大火災などの緊急事態に備える企業の危機管理手法であり、事業活動を早期に復帰させるための計画。
Risk managementShowa Denko regards risk management as one of the most
important aspects of company management. As such, the company
seeks to improve, maintain, and promote its risk management system.
The Company has established a Risk Management Commit-
tee to promote risk management groupwide. This Committee
prioritizes risks that threaten company policies, plans, and the
Group as a whole based on assessments of their potential
impact and likelihood. It also provides support for promoting mea-
sures to circumvent such risks and to respond to them should
they occur. Major topics affecting the entire Group are presented
for discussion at the CSR Committee, where decisions are
based on deliberations from a wide range of perspectives.
In addition, specific risks involving matters such as environ-
mental protection, security and disaster prevention, chemical
substances, quality, intellectual property, fair trade, export con-
trols, and contractual agreements are managed through a
system of prior examination and decision-making, in accor-
dance with internal regulations. Actions taken in the event of
emergencies, including accidents and disasters, are imple-
mented as stipulated in the emergency situation action guide-
lines and other internal regulations.
The risk-management PDCA cycleThe Group has taken “risk inventories” since 2007, assessing
the importance of risks, proposing and promoting risk counter-
measures, and implementing annual reviews to strengthen risk
management. The results of these efforts are summarized and
presented at meetings of the Risk Management Committee. The
information is organized into specific topics to be addressed
companywide. When necessary, cross-functional efforts based
on these topics are implemented companywide.
Examples of companywide efforts include preparation of the
Business Continuity Plan (BCP) for the event of large-scale
earthquakes and countermeasures against a new strain of
influenza (H5N1) in 2007 and 2008, and responses to actual
outbreak of new influenza (H1N1) in Japan and overseas in 2009.
In 2011, we continued to organize information on the status
of preparation of the BCP as well as countermeasures against a
major earthquake, which we started in 2010.
Business Continuity Plan (BCP)Since 2007, each business section has prepared its own
BCP. After establishing a promotion structure and formulating
basic policies, each section performs a business impact analy-
sis (BIA) and takes other steps to identify key, high-priority mea-
sures. This is followed by process analysis, including identifying
bottlenecks for priority measures and considerations of strate-
gies and countermeasures. These activities are documented
and implemented fully through training and drills.
Furthermore, in the wake of the Great East Japan Earth-
quake, we reviewed the expected impacts of a major earth-
quake on our data center in 2011.
We will act with integrity as a responsible citizen of the international society.1. We will act in strict compliance with laws and regulations and according to high ethical standards.
2. We will promote Responsible Care programs.
3. We will conduct business based on the principle of fair and free competition.
4. We will respect human rights.
5. We will work to prevent bribery and other forms of corruption.
We will provide our customers with satisfaction and safety.1. We will develop and provide “individualized” products, technologies, and services that satisfy our customers and promote the
sound growth of international society.
2. We will ensure stable supply of products that meet customers’ expectations, in cooperation with our business partners.
We will develop corporate culture that helps every member of the Group to fully display his/her ability.1. We will create new values based on mutual respect for personality, free thinking, and constructive discussions.
2. We will give the highest priority to safety, and strive to maintain and improve the working environment.
We will meet the expectations of local communities.1. We will disclose accurate information on our activities in a timely manner to the countries and local communities in which we
operate, so as to maintain good communication and promote mutual understanding.
2. We will grow with the countries and local communities in which we operate, and contribute to their social and economic growth.
We will make vigorous efforts to maintain and improve the global environment.1. We will reduce environmental impact of our business activities, and contribute toward the mitigation of climate change and the
conservation of biological diversity.
2.We will develop and provide environment-friendly products and technologies.
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Our Code of Conduct
14
SHOWA DENKO CSR Report 2012
15
SHOWA DENKO CSR Report 2012
Risk management
(See page 24)
Information SecurityWith the rapid growth of the internet, the quality and quantity
of the information a company can handle and the speed at
which it can do so have grown dramatically. At the same time,
the risk of information-related crimes and accidents has never
been higher, including the theft of personal information, leaks of
internal company information, and unauthorized alteration of
company websites. Showa Denko has established Basic
Guidelines for Information Security, Information Security Regula-
tions, as well as Personal Information Protection Guidelines,
seeking to develop a system to prevent information security inci-
dents and to minimize any resulting damage to its business
while ensuring business continuity. We are also proceeding with
activities intended to raise employee awareness through
e-learning-based training. This will ensure a thorough under-
standing of these basic guidelines and regulations throughout
the organization.
Countermeasures against new threats to the information secu-
rity facing us on a daily basis have been established and main-
tained both by improving facilities and systems, and reinforcing
the internal rules. As part of our efforts to maintain the effective-
ness of information security systems, we take steps to prevent
unauthorized access from outside, and reinforce the measures to
avert information leaks, and strengthen information security gover-
nance at each overseas Group company. With regard to the
internal rules, we revised the information security operational regu-
lations in 2011 to keep them in line with the actual conditions,
and conducted the enlightenment activities of the revised rule.
ComplianceThe Showa Denko Group places adherence to societal
norms and business ethics at the top of its management agenda
and emphasizes compliance in all management activities. In
January 2003, we established the Corporate Ethics Committee
to ensure legally compliant management. Since 2005, we have
strengthened compliance organizations and systems in each
business sector and at each site. Other efforts include preparing
lists of and ensuring thorough compliance with applicable laws
and regulations. In 2010, we strengthened support for subsidiar-
ies in China. Also in “Our Code of Conduct and Its Practical
Guide” established in January 2012, “Compliance and Corpo-
rate Ethics” is placed in the first item for further understanding.
In 1987, in the area of security-related trade controls, we
established the Security Export Control Committee, which works
to enhance compliance with these controls.
Corporate Ethics HotlineOur Corporate Ethics Hotline serves employees of all Showa
Denko Group companies. The purpose of this Hotline is to pre-
vent or quickly correct violations of corporate ethics or of laws,
regulations, or company rules. Under this system, employees
can report any concerns directly to the Corporate Ethics Com-
mittee, through the company intranet or e-mail, telephone, or
post. Anonymous reports are accepted, but measures are in
place to ensure no disadvantages occur when employees pro-
vide names. Other measures also ensure employees filing
reports receive feedback on the results and that this feedback
is adequate.
Since January 2006, in addition to their availability within the
company, these services have been made available at outside
law offices.
Consultation desk for victims ofsexual harassment
In December 2011, we reinforced the function of the con-
ventional consultation desk for victims of sexual harassment by
adding outside consultation services to accept complaints
relating to power/sexual harassment through “Corporate Ethics
Hotline.”
Corporate Ethics MonthThe Showa Denko Group has set January every year as
Corporate Ethics Month since 2004. Traditionally, we engaged
mainly in the enhancement of our Code of Conduct and its
Guideline during this month. In FY2012, we had group discus-
sion meetings using the newly issued “Our Code of Conduct
and Its Practical Guide,” putting our initiatives into practice. Fur-
thermore, all executives and managers have signed and sub-
mitted to the Company “The Oath of Office” and “The Oath of
Compliance with the Code of Conduct and Its Practical Guide”,
respectively.
We also continue to implement an e-learning program on
corporate ethics and compliance for managers, which was
introduced in 2009 to provide required training for personnel
newly promoted to management positions.
E-learning programs on individual laws and regulations, and
information security are also provided, which we will enhance
the contents of the education.
Security export controlsConcerns over development and proliferation of nuclear
weapons and threats of disastrous terrorism, including Iran’s
nuclear programs and the North Korea’s missile launch, have
been increasingly widespread around the world. Meanwhile,
amid the globalization, development of computerization, and
increasing illegal exports by Japanese companies, the Export
Compliance Regulation was enforced in 2010, whereby export-
ers, etc. are legally required to implement proper export con-
trols based on the compliance standards.
The Showa Denko Group has a voluntary internal regulation
for export control to ensure the security export controls. This
regulation satisfies the requirements of the Export Compliance
Regulation. Furthermore, following a partial tightening of the
relevant regulations in 2011 from the perspective of confirma-
tion of trade partners, we reviewed the internal control regula-
tions, etc. implementing the security export control more rigor-
ously.
The Group implements multistage inspections of all products
and technologies for export, and personnel in charge of export
operations participate in educational programs proactively such
as in-house training programs, e-learning activities, outside
training sessions, and practical skills certification exams to raise
awareness of security export controls.
Due to rigorous export control measures and efforts taken
by the personnel concerned, there was no violation of the For-
eign Exchange and Foreign Trade Act in 2011 with regard to
our security export controls.
Establishment of a Legal Guideline (Prohibition of Bribery)
Groupwide efforts to enhance the knowledge and aware-
ness of compliance represent a vital challenge for our group
management.
In 2011, Showa Denko started to formulate legal guidelines
to help the legal personnel of the Group companies to fully
disseminate priority domains requiring special attentions and
criteria to be complied with in their respective companies.
To start with, we established a legal guideline concerning
the prohibition of bribery, following the enforcement of the Anti-
Bribery Act in July 2011 in the United Kingdom under which
non-UK companies and acts are subject to the extraterritorial
application under certain conditions.
Thus, we place an emphasis on reconfirmation and dissemi-
nation of the prohibition of bribery, etc. based on laws and
regulations of each country.
We seek further improvement of compliance level of the
Showa Denko Group as a whole by formulating legal guidelines
as necessary.
修正予定
16
SHOWA DENKO CSR Report 2012
17
SHOWA DENKO CSR Report 2012
Responsible Care management
Throughout the entire life cycle of chemical substances, we shall make our best efforts to review and improve business activities from the view-points of ensuring safety and health and protecting the environment.
In manufacturing activities, we shall make our best efforts to reduce the burden on the global environment not only through conventional approaches to environmental protection but also through promotion of switching raw materials, energy conservation, waste reduction and recy-cling, and reductions in the release of chemical substances.
In the development of new products and businesses and in the establishment, enlargement, and renovation of facilities, we shall undertake our best efforts to ensure safety and health and to protect the environment. We shall promote R&D and develop technologies that will contribute to the improvement of safety and health and to the protection of the environ-ment. We shall also promote the marketing of alternative or new products.
We shall investigate the effects of the products and materials we handle on safety, health, and the environment, and we shall encourage our employees to develop a deep knowledge of safe use and handling and provide our customers with such information as well.
In overseas business activities, technology transfer, and international trading of chemical products, we shall give full consideration to ensuring safety and health and to protecting the environment.
We shall comply with international rules and domestic laws and regulations and make our best efforts to cooperate with the relevant international organizations and both foreign and domestic regulators.
We shall participate proactively in various activities related to environmental protection and make our best efforts to communicate with society and local communities to achieve better understanding and trust.
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Responsible Care Action Guidelines
Responsible Carepromotion system
President & CEO
CSR Committee
Responsible Care Committee
Security ExportControl Com
mittee
Corporate EthicsCom
mittee
Safety Measures
Comm
ittee
Energy Saving/Global W
arning IssueSubcom
mittee
ResourceSaving/RecyclingSubcom
mittee
Waste Reduction
Subcomm
ittee
Chemical SubstancesRelease ControlSubcom
mittee
OccupationalHealth and SafetySubcom
mittee
Accident PreventionSubcom
mittee
Risk Management Committee
Aluminum
Can RecyclingProm
otion Comm
ittee
Secretariat(Environm
ent & Safety Office)
Responsible CarePlanning Com
mittee
Formulatingmanagementpolicies andobjectives
Continual improvement
The PDCA cycle
Managementreview
P
DC
AActivity plans
Internal audit,evaluation of
results
Implementation
Responsible Care Action GuidelinesShowa Denko enacted the Responsible Care Action Guide-
lines in March, 1995 as its corporate policy related to the envi-
ronment, safety, and health and declared that it would imple-
ment Responsible Care. Since then, all business sectors of the
Company have been engaged continuously in the relevant
activit ies under these Guidel ines.
These ac t i v i t i es a l so a re be ing
expanded throughout the entire Group.
In 2005 we signed the Responsible
Care Global Charter, which contains
international guidelines to Responsible
Care activities, declaring our support
for and intention to implement Respon-
sible Care.
Responsible Care promotion systemResponsible Care activities are promoted by the Responsible
Care Committee, throughout the Showa Denko organization
and throughout the Group.
As of June 2012, the head office, six business sectors (14
business divisions and 15 sites), three branches, the Corporate
R&D Center, and 15 Group companies 1 engaged in Respon-
sible Care activities.
In addition, as part of its efforts to strengthen the Group's
Responsible Care activities, Showa Denko is expanding the
scope of such activities by ascertaining performance and pro-
viding on-site guidance concerning Responsible Care for
domestic and overseas Group member companies involved in
manufacturing.
Furthermore, the Responsible Care Committee and the Risk-
Management Committee were placed under the CSR Commit-
tee to promote Responsible Care as a core element of our CSR
efforts. We maintain proper internal regulations, etc. to promote
Responsible Care specifically.1 15 Major Group companies which work together with Showa Denko in
promoting Responsible Care (as of June 2012):Tsurusaki Kyodo Doryoku K.K., Tokyo Liquefied Oxygen Co., Ltd., Showa Titanium Co., Ltd., Shinshu Showa Co., Ltd., Showa Denko Packaging Co., Ltd., Showa Aluminum Can Corp., Showa Denko Sakai Aluminum Co., Ltd., Showa Denko Electronics K.K., Showa Denko Kenzai K.K., Union Showa K.K., Niigata Showa K.K., Showa Aluminum Can Recycling Center, HI-PACK CO., LTD., Showa Denko Gas Products Co., Ltd., and Clean-S Showa Co., Ltd.
2 Third-party verificationThis term refers to the verification of the information or data in sustainability reports or
environmental reports of a company or association when the verification is conducted by
an organization independent from the company or association in concern.
The PDCA cycleThe Showa Denko Group works to achieve continuous
improvement in its Responsible Care activities through the plan-
do-check-act (PDCA) cycle of formulating Responsible Care
activity plans (plan), implementing these (do), auditing and evalu-
ating the results (check), and reflecting these via management
review in the next round of objectives and activity plans (act).
Education systemThe Showa Denko Group implements Responsible Care Edu-
cation Programs focusing on occupational safety, environmental
conservation and compliance when employees join the Group and
are promoted. Responsible Care Training Programs for New Sec-
tion Heads of Production Divisions, etc. are conducted every year
at the respective plants, providing practical risk assessment training
using the actual manufacturing sites and operations as training
materials.
We also implement annual periodic training seminars for internal
auditors on environmental management systems to nurture relevant
human resources. We plan to start a training seminar for internal
auditors on occupational health and safety management system in
2012.
Auditing structureThe Showa Denko Group carries out the following audits at
each stage, to confirm that activity plans concerning Respon-
RC training seminar for new employees(Head Office, April 2012)
RC training seminar for new section heads of theproduction divisions, etc. (Kitakata Plant, October 2011)
sible Care are implemented according to plans.
Self-auditingUsing checklists, the workplaces of Showa Denko and major
Group companies evaluate their own Responsible Care sys-
tems and the status of its implementation, promoting continuous
improvements by reporting to the Safety Measures Committee
on the results of these self audits and reflecting such results in
objectives and activity plans of the following fiscal year.
Workplace auditingThe Safety Measures Committee performs on-site audits of
the state of efforts at sites operated by Showa Denko and main
Group companies. The Committee also performs quantitative
evaluations based on the results of audits, identifying weak-
nesses. Furthermore, it provides needed guidance and reports
audit results to the Responsible Care Committee. The Respon-
sible Care Committee reviews these results and reflects them in
companywide and groupwide policies, objectives, and plans.
At manufacturing companies within the Group, both in Japan
and overseas, other than the above companies, Responsible
Care efforts are subject to onsite checking of their status and to
on-site guidance. In 2011, we performed workplace auditing
and inspection of 28 worksites (including the Head Office,
branches and business divisions), 11 worksites of the domestic
Group companies and 6 worksites of overseas Group compa-
nies.
Overall auditingThe Internal Audit Office audits the status of Responsible
Care measures throughout Showa Denko and reports on the
results of these audits to the Responsible Care Committee.
Third-party verification Showa Denko has undergone third-party verification 2 in
such aspects as Responsible Care activities and the accuracy
of data collection. The content of this CSR Report 2012 has
been verified by SGS Japan Inc.
In the future, we will continue to draw energetically on third-
party verification to ensure continued improvements in our
Responsible Care systems and in our performance.
Global Responsible CareVerification Certificate
18
SHOWA DENKO CSR Report 2012
19
SHOWA DENKO CSR Report 2012
レスポンシブル・ケア行動計画 2011年実績と2012年目標
Responsible Care Action Plan: Achievements in 2011 and Targets for 2012
Every two or three years, the Showa Denko Group establishes a medium-term Responsible Care action plan, which is then used as the
basis for annual action plans during the period covered. All workplaces promote Responsible Care and draft detailed action plans based on
the comprehensive plan, tailored to local conditions and circumstances. The following table lists the policy, plans, achievements, and ratings
for primary activities undertaken in 2011, together with the policy and plans for 2012. We will continue these efforts to achieve our goals.
1 HRM :High Risk Material
2 work-related illnesses :Legally recognized work-related sickness by the Workers' Compensation Insurance Law.
Appearing symptoms of illness caused by exposure to harmful factors under circum-
stances of employers' control.
5 SDS : (Safety Data Sheet)This is a document provided by the supplier to the user (customer) of a chemical
substance, covering such matters as its name, toxicity, and physical/chemical properties;
cautions concerning its handling and storage; and emergency measures.
3 REACH Regulation :EU Regulation on Registration, Evaluation, Authorization, and Restriction of Chemicals
4 CLP Regulation :EU Regulation on Classification, Labeling, and Packaging
Security and fire prevention
Chemical substance safety
Quality assurance
Environmental conservation
△
●労働安全衛生Policy and plans for 2011 Results and progress in 2011 Policy and plans for 2012Evaluation
Occupational safety and health
[Policy]●Zero lost-time and non- lost-time injuries at each site●Establishing the chemical industry’ s strongest safety management system
[Plans]●Enhancing safety strength of worksites and personnel●Correcting equipment and process deficiencies● Improving safety management levels● Following up on special safety activities and strengthening measures to prevent similar incidents
● Expanded the scope of industrial accident statistics (12 worksites of affiliated companies were additionally included).
● Two incidents resulting in lost-time injuries (two in 2010) and zero non-lost-time injury (one in 2010) for the entire Showa Denko Group
●Rate of incidents resulting in lost-time injuries in Showa Denko Group: 0.13 (0.14 in 2010)●Oyama Plant of Showa Aluminum Can Corp. won Accident-free Record
Certification (Third-class) from the Ministry of Health, Labor and Welfare.●Showa Titanium Co., Ltd. and Ohmuta Plant of Showa Aluminum
Can Corp. recognized by third-party safety awards.●Showa Titanium Co., Ltd. certified under the Occupational Safety
and Health Management System (total of 12 sites now certified)
[Policy]●Zero lost-time and non- lost-time injuries at each site●Establishing the chemical industry’ s strongest safety management system
[Plans]●Enhancing safety strength of worksites and personnel●Correcting equipment and process deficiencies● Improving safety management levels● Following up on special safety activities and strengthening measures to prevent similar incidents
●労働安全衛生Policy and plans for 2011 Results and progress in 2011 Policy and plans for 2012Evaluation
[Policy]●Appropriate response to revisions in domestic and overseas laws
[Plans]●Comprehensive implementation of compliance, education, and management structures●Collecting, assessing, and providing safety information●Establishing comprehensive chemicals management database
●Zero violations of chemical substances legislation by Showa Denko Group
●Established comprehensive chemicals management database.●Chemicals Management Officer provided information on relevant
legislation and follow-up training.●Registration prepared concerning substances under the REACH
regulations 3 before deadline for substances that must be registered by 2013.
●CLP-compliant 4 labels and SDS 5 amended.
◎
○
[Policy]●Appropriate response to revisions in domestic and overseas laws
[Plans]●Comprehensive implementation of compliance, education, and management structures●Promoting and disclosing information on GPS/JIPS risk assessments●Effective use of comprehensive chemicals management database
[Policy]●Reducing chemical emissions
[Plans]●Thoroughly disseminating information on PRTR revisions●Developing and implementing reduction plans for each worksite
● Emission of PRTR-listed substances: 372 t, up 15 t from 2010.● Emission of toxic atmospheric pollutants: 28 t, down 12% from
2010, target achieved.
[Policy]●Reducing chemical emissions
[Plans]●Thoroughly disseminating information on PRTR revisions●Developing and implementing reduction plans for each worksite
●労働安全衛生Policy and plans for 2011 Results and progress in 2011 Policy and plans for 2012Evaluation
[Policy]●Making products that offer total safety in use●No product accidents, no major complaints
[Plans]●Performing appropriate product risk assessments●Establishing secure corrective measures
●Product safety secured and zero product accidents maintained by performing appropriate risk assessments for newly developed products and by complying with the standards for products intended for absorption by or contact with the human body and new export.
●Number of serious complaints decreased about 30% from 2010 by identifying thoroughly the causes, and implementing corrective measures. Target achieved.
◎
[Policy]●Making products that offer total safety in use●No product accidents, no major complaints
[Plans]●Performing appropriate product risk assessments (reviewing new-product launch procedures)●Countermeasures against spills :Establishing secure corrective measures to be taken at sources.
●労働安全衛生Policy and plans for 2011 Results and progress in 2011 Policy and plans for 2012Evaluation
[Policy]●Realizing zero equipment incidents
[Plans]●Thoroughly implementing Active Safety activities●Organizing and applying function-specific personnel meetings●Thoroughly implementing HRM 1 examination●Promoting voluntary safety initiatives
● Accidents: Four cases of leakage (seven cases in 2010) in the Showa Denko Group● Active Safety activities expanded to and implemented by affiliated
companies and research facilities.● Function-specific personnel meetings (electric, instrumentation,
machinery, process) were held.●HRM examinations were implemented for four cases.●Oita Complex: Continued certified high-pressure gas operations.●Oyama Plant of Showa Aluminum Can Corp. won the prize of the
Commissioner of the Fire and Disaster Management Agency.
[Policy]●Realizing zero equipment incidents
[Plans]●Thoroughly implementing Active Safety activities●Organizing function-specific personnel meetings and preparing guidelines●Ensuring implementation of HRM examination●Promoting voluntary safety initiatives
●Environmental management
労働安全衛生Policy and plans for 2011 Results and progress in 2011 Policy and plans for 2012Evaluation
[Policy]●Zero environmental problems
[Plans]●Steady implementation and comprehensive awareness of Active
Safety efforts (utilizing checklists to prevent environmental problems)●Planning and implementing reductions in potential risks●Appropriate responses to amendments to laws
● Target of zero environmental problems in the Showa Denko Group attained.
●Utilized checklists to prevent environmental problems.● Implemented measures to reduce risks in each plant ◎
◎
◎
◎
○
△
[Policy]●Zero environmental problems
[Plans]●Steady implementation and comprehensive awareness of Active
Safety efforts (utilizing checklists to prevent environmental problems)●Planning and implementing reductions in potential risks●Appropriate responses to amendments to laws
●[Policy]●Continuously reducing unit energy consumption
[Plans]●Creating energy conservation measures
[Policy]●Achieving Kyoto Protocol targets for the Showa Denko Group by itself; and preparations for post-Kyoto Protocol
[Plans]● Implementing reduction plans at each site
● Unit energy consumption: 91.4% (compared with 1990 levels), down 0.1% from 2010
● Implemented regular reporting.
● Greenhouse gas emissions: a 22% reduction at Showa Denko, a 20% reduction across entire Showa Denko Group (compared with 1990 levels)
● Implemented the plan to achieve Kyoto Protocol targets in promised period (by Showa Denko)
● 2010 unit energy consumption as designated shippers and reduction plans for 2011 reported to authorities.
[Policy]●Continuously reducing unit energy consumption
[Plans]●Creating energy conservation measures●Exerting all-out efforts to reduce power consumption
[Policy]●Achieving Kyoto Protocol targets for the Showa Denko Group
by itself; and preparations for post-Kyoto Protocol
[Plans]● Implementing reduction plans at each site
●
Occupational safety
Equipment safety
Global warming initiatives
Reducing industrial waste
[Policy]●Achieving zero emissions
[Plans]●Eliminating landfill waste through efforts such as more effective use of sludge Showa Denko: 2,200 t or less Showa Denko Group: 2,500 t or less
[Policy]●Contributing to a recycling-based society
[Plans]●Promoting recycling
● Landfill waste: 2,144 t (down 447 t from 2010) across Showa Denko Group; targets achieved.
●Plastic chemical-recycling production: up 2% from 2010.●Paper-recycling rate (head office): 85% (up 2% from 2010)● Aluminum can recycling: Group participation rate 92%, with each
employee bringing in an average of 189 cans over a three-month period.
[Policy]●Achieving zero emissions
[Plans]● Eliminating landfill waste through efforts such as more effective
use of sludge Showa Denko: 1,900 t or less Showa Denko Group: 2,100 t or less
[Policy]●Contributing to a recycling-based society
[Plans]●Promoting recycling
● Implemented preventive activities to reduce lifestyle-related diseases in accordance with Showa Denko Group Health 21 Plan.
●Current status were reported and opinions were exchanged concerning “Health checkup,” “Prevention and improvement of incidence of lifestyle-related diseases,” “Enhancement of mental healthcare” and “Measures against smoking” at an exchange meeting of worksites.
●Promoted participation in third-party seminars for improving skills of public health nurses and other nurses, and established a subsidy system for seminar expenses.
●Mental health care seminars planned and implemented by each worksite● Provided stress check sheets to employees during National
Industrial Hygiene Week●Oyama Regional Office won the THP (Total Health Plan) Council’ s
Promotion Award.
●
●
Chemical substance managemant
Quality assurance
Occupational health
Health management
[Policy]●Zero work-related illnesses 2
[Plans]●Enhancing sanitation management structure● Improving work environment and work methods
[Policy]●Addressing common priority targets specified in Showa Denko Group Health 21 Plan
[Plans]●Common priority targets
(1) Preventing or improving incidence of lifestyle-related diseases (BMI, blood pressure, fat, blood glucose)(2) Enhancing mental healthcare efforts(3) Reducing smoking rates
●Effectively applying health management system
● Zero work-related illnesses● Realized an improvement through measurement of working
environment such as chemical substances handled, and implemented exposure reduction measures.
◎
○
[Policy]●Zero work-related illnesses
[Plans]●Enhancing sanitation management structure● Improving work environment and work methods
[Policy]●Addressing common priority targets specified in Showa Denko Group Health 21 Plan
[Plans]●Common priority targets
(1) Preventing or improving incidence of lifestyle-related diseases (BMI, blood pressure, fat, blood glucose)(2) Enhancing mental healthcare efforts(3) Reducing smoking rates
●Effectively applying health management system
◎ : Fully achieved (100%) ○ : Achieved 80% or more △ : Achieved less than 80% (Numerical data without range indications apply to Showa Denko only.)
20
SHOWA DENKO CSR Report 2012
21
SHOWA DENKO CSR Report 2012
Very informative
Good
Very informative
Good
Good
Very informative
Very informative
The plant is clean.
The plant is clean.
Good
Very informative
Good
Impressions/feelings Business/product Issue of interest Issue of concern Other commentsExpectations for
Showa Denko
Customers
Localresidents
Shareholders,investors
Authorities
Schools
Employeefamilies
I understood the processes.
I understood the products.
I understood the products.
I understood the products.
I had a detailed understandingof the business.
I had a detailed understandingof the business.
I had a detailed understandingof the business.
I gained an understanding ofhow Showa Denko works.
I had a detailed understandingof the business.
I had a detailed understandingof the business.
Technology, Quality
Cost, Competitiveness
Environmental efforts
Environmental efforts
Environmental efforts
Technology, Quality
Technology, Quality
Cost, Competitiveness
Scale, Size
Chemical substances
Technology, Quality
Cost, Competitiveness
Environmental efforts
Environmental efforts
Environmental efforts
Environmental efforts
Technology, Quality
Cost, Competitiveness
Environmental efforts
Scale, Size
Technology, Quality
Cost, Competitiveness
Environmental efforts
Environmentalconservation
Environmental efforts
Environmental efforts
Technology, Quality
Cost, Competitiveness
Employees,Personnel system
Scale, Size
● I was surprised to know that Showa Denko manufactures world-class quality products.● I understood that Showa Denko’s products are commonly used around us.● I was relieved to know that good-quality materials are stably supplied and that
products are manufactured systematically under good quality controls. Positive product development efforts clearly demonstrate the serious attitude of the company.
●Explanation of the production lines was very easy to understand.●This guided plant tour has been an excellent opportunity to learn about the
operational sites of corporate activities.
● I understood that familiar products are made at a plant near our school.
● I want the Open Lab to be continued toward the future. I am grateful that the Company provided us with programs for children to enjoy.
● I understood that appropriate measures were prepared against any troubles to prevent negative impacts on the external environment (Drainage, noise, etc.)
● I was surprised to know that Showa Denko’s products were used in my car.● I was happy to know about the worksite where my family member works.● I was surprised to know the epoch-making recycling system during the tour of the
plastic recycling facilities, because I had thought plastics remained as waste.●As I participated in the weekday plant tour, I could easily understand how
people were working at the plant.
Each of us at the Showa Denko Group strives to build relationships of trust with our stakeholders.
In 2009, we began gathering the opinions, comments, and requests from stakeholders visiting our worksites. Although we have not
systematized the information-gathering procedures, introduced below are some of the viewpoints expressed during these visits.
(Following impressions and opinions were given to us mainly by those who participated in our guided plant tours.)
The information gathered will be organized by each worksite and by the entire Group and examined during reviews of our Group CSR
issues, improving our CSR performance and allowing us to incorporate these perspectives into our risk management activities.
Social Commitment ReportThe Showa Denko Group places great emphasis on continuous dialogue with customers, shareholders, local commu-
nities, raw materials and service providers, and our employees and their families. We believe the relationships of
mutual trust we have established with these stakeholders are critical assets of the Showa Denko Group.
We strive to ensure satisfaction with Group performance and continued shareholding.
We strive to maintain mutually ben-eficial relationships based on trust in transactions with the Group.
We strive to provide rewarding worksites in which employees and their families can take pride.
We strive to ensure that local communities and authorities have confidence in the safety and stability of our operations.
We strive to ensure satisfaction with Group products and services, thereby securing our customers' patronage.
CSR Activity Report: Social Commitment Report
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─
─
─
─
─
─
─
Relationships with Our Stakeholders
The Showa Denko Group communicates with its stakeholders in various contexts.
We believe it is important for us to review the Group's visions for the future with thorough understanding of our stakeholders' expecta-
tions and concerns for the Group, which are identified through this communication.
The views of our stakeholders can serve as another yardstick for the Group to determine the priority assigned to various risk manage-
ment issues. Understanding the Group's issues from the perspective of our stakeholders helps us correctly prioritize Group risk manage-
ment issues and makes it possible for us to respond to stakeholder expectations with more rationales, thereby permitting risk manage-
ment in the broader sense.
Communicating with stakeholders
Stakeholder perspectives
Contributing to local communities
Active information disclosure
Developing eco-friendly products
Energy and resource conservation efforts
Preventing accidents that could cause damage to surrounding areas
Preventing production stoppages that could inconvenience many parties
Preventing product liability accidents
Preventing environmental contamination and pollution
Preventing industrial accidents
Eliminating discrimination; safeguarding human rights
Preventing improprieties
Preventing misconducts
Preventing violations of the law
Responding toexpectations...
Failing to respondto expectations...
Risk management (in the narrow sense)Activities that safeguard corporate value by focusing on actions
that prevent damage to stakeholder expectations
CSRActivities to maintain and improve corporate value
by responding to stakeholder expectations
Increased sales
Growing numbers of business associates
SRI fund allocation
Improved fund-raising capabilities
Improved brand image
Improved reputation
CompensationLoss due to business suspensionLoss due to property damageSuspension of business transactionsBoycotts
Corporatevalue
Expectations for the company
Expanding over time
Expanding over time
Decline in asset valueDifficulty in finding new employeesImpaired fund-raising capabilitiesDamage to corporate image
Positive aspects
Negative aspects
Comm
unication
Consumers
SocietyNPOsNGOs
Administrativeoffice
Customers
Shareholders
Partners
Localcommunities
Employees
Customers
Shareholders and investors
Employees and their familiesLocal communities and authorities
Business partners
22
SHOWA DENKO CSR Report 2012
23
SHOWA DENKO CSR Report 2012
Employee relations
方 針
Percentage of handicapped employeesShowa Denko’s training system
Showa Denko
2008/6 2009/6 2010/6 2011/6
1.8%
2012/3
(%)
(Year/month)0
Legal requirement
2.5
2.0
1.5
My experience of participating in the training session for Chinese employees at the management levelSince 2004, I have engaged mainly in sales activities for Showa Denko’s business development in China as a member of Showa
Denko Group. To date, I became a manager from just a person in charge, and now I understand the significance of working
together with all members of the department.
Last year, I attended the training session for Chinese employees at the management level, and obtained knowledge on manage-
ment which I had lacked until that time, and comprehended how managers
should be. Now, I apply what I learned to my work. I will exert my efforts to
demonstrate the presence of Showa Denko in the Chinese market while not only
performing my duties but also providing my subordinates with guidance.
VOICE
Yong WangDirector
New Business HeadquartersShowa Denko (Shanghai) Co., Ltd.
Training session held in China for local employeesat the management level
Respect for human rightsPolicies and systems of respect for human rights
The Showa Denko Group exerts every effort to address
human rights issues with a firm belief that respect for human
rights underlies all our efforts to realize the vision stated in its
management philosophy, “a company contributing to the sound
growth of society.”
The Human Rights Committee of Showa Denko, chaired by
the director in charge of human resources, assesses the activi-
ties of previous fiscal year and determines medium- to long-
term action plans. In recent years, the Committee has consis-
tently provided assistance to the career development of female
and non-Japanese employees, and expanded job opportunities
for handicapped persons, while promoting these activities within
the Group companies.
In December 2011, Showa Denko’s sexual harassment con-
sulting desk and countermeasures were extended to other
domestic affiliated companies with the aim of strictly addressing
the problems of bullying and harassment at worksites including
sexual harassment problems across the Group.
As to human rights promotion activities, we exert our best
efforts to improve awareness of human rights among our
employees based on the policy determined by the Human
Rights Committee to implement group training programs and
lecture meetings.
Enhancement of personnel system and trainingRevision of training systems
Under the ongoing medium-term consolidated business plan
“PEGASUS,” the Showa Denko Group sets its policy to “assist
motivated employees to grow further by providing right roles
depending on their capabilities (OJT) and training opportunities
(OFF-JT).”
As part of the policy, we formulated new educational systems
for the entire Group in 2011. The chart below illustrates the rela-
tionship of the educational systems with the “Forest,” represent-
ing energetic and diverse people growing and evolving.
Communication-based personnel evaluation systemAs one of the management tools for maximizing the achieve-
ments of the organization by increasing the participation of all
employees in the management strategies, the Company has
developed an MBO (Management by Objectives) system.
Through candid discussions between a superior and a sub-
ordinate starting from setting objectives to evaluation, the mutual
understanding and satisfaction is enhanced. Furthermore, a
superior nurtures human resources by making his/her expecta-
tion known to the subordinate, providing assistance toward the
attainment of objectives.
Results of evaluation are reflected on the treatments (salary
and bonus) as contribution of the individual to the company.
Recruiting and fostering globally competitive personnelRecruiting and fostering competitive personnel who support rapid
globalization of our business activities is one of the most crucial
themes for us to remain as a company group with a distinctive pres-
ence in the international business community.
As part of such efforts, Showa Denko has been pursuing recruiting
activities to provide an environment in which outstanding human
resources can make full use of their abilities and capabilities, regard-
less of nationality. To that end, we hire non-Japanese university
graduates on a regular basis, not just foreign students graduating from
universities in Japan, but also those graduating from universities in
China, Thailand and Singapore by directly interviewing students at
those universities. Those global employees receive Japanese
language training after joining the company and apply their advanced
and specialized knowledge and skills to their work.
In the aspect of human resource development, Showa Denko
offers short-term study-abroad programs for learning foreign
languages (e.g., English and Chinese), as well as two-year programs
for research, investigation, and acquisition of advanced management
knowledge. The Company sends employees overseas based on
specific planning.
Furthermore, the Company conducted a one-year group training
sessions in 2010 for overseas non-Japanese full-time employees at
the management level as part of the medium- to long-term programs
of nurturing non-Japanese employees at overseas subsidiaries. In the
training period, the 17 participants applied their knowledge and skills
that they learned to the resolution of problems at their workplaces,
concluding the sessions
by making presentations
of the achievements.
Offering opportunities for diverse individuals to make full use of their abilities
Employment of the agedSkills and expertise that had been fostered by those who
mandatorily retired are assets valuable not only for themselves
but for the company. Therefore, Showa Denko has a reemploy-
ment system which was introduced in 2006 so that those retir-
ees can continue to make use of their precious assets for the
company, and contribute to the nurturing and passing on such
techniques to younger employees. Many of those reemployed
play active roles in the company using experience unique to
them while working the same way as in the past as reliable
instructors in the fields of their specialties.
Employing handicapped personsIn a bid to create workplaces where a wide range of indi-
viduals can work side-by-side, Showa Denko consistently
employs handicapped persons and provides them with career
advancement opportunities. Since 2006, the ratio of handi-
capped employees has consistently met the legal requirement.
By working with Public Employment Security Offices and
special-needs schools, Showa Denko continues to address
the development of job opportunities so that handicapped per-
sons can make the most of their own individual abilities.
Business nurturing course
Support for nourishing a breeding ground for growth and evolution
Programs by function/Support for self-developm
ent: Support for diverse technologies and individualities
Programs by role: Support for fulfilling the roles and implementing MBO according to growth of individuals
Programs by issue: Assisting to resolve problems in the environmental changes and obtain higher points of viewExternal
environment New seedsSelf-DevelopmentProgram (SDP)
Programs by issue of sector,plant and regional office
Coexistence
inheritance
ManagementLeaderCourse (MLC)
Run-up-Program
Study-abroad program
Specialized trainingby function
Support forself-development
Each sector and worksiteClass K training programs
Training for R1- appliedemployees
Career training programs
Each sector and worksiteClass S training programs
E-learning programs for those newlyassigned to management positions
Training for new managers and leaders
Training for new general managers
Training programs for managers ofsectors, plants and regional offices
Showa Denko Group’scommon training programs(management philosophy, CSR, human rights, common knowledge of the companies)
Superior postqualificationtrials
Class Squalificationtrials Management
qualificationtrials
Partners
New ideas
Contributiontargets
OJT for
TeamworkRoles assumed dependingon growthRight person for the right job
Evolution
Growth
Competition
Soil
Diversity
Career-planning system (CPS)Class K grade-up trials
Class Cselective trials
24
SHOWA DENKO CSR Report 2012
25
SHOWA DENKO CSR Report 2012
Employee relations
方 針
VOICE
Principal support systems for a sound work-life balance
Main systems Description
Childcare leave
Cumulative leave
Family care leave
Shortened workinghours for childcare/family care
Eligible: Employees with one or more years of continuous service who live with dependent children of less than two years of age. Available through the day preceding the child's second birthday.
Eligible: Employees with one or more years of continuous service and who have a child of preschool age or who are eligible for family-care leave. Eligible employees may choose to reduce standard working hours by up to two hours/day.
Eligible: Employees who have accumulated leave time (annual paid holidays carried over from year to year). Eligible employees may take leave to attend school events at day nursery, kindergarten, or elementary school until their child graduates elementary school, or to care for a child until the child graduates elementary school.
Eligible: Employees with one or more years of continuous service who have a family member requiring nursing care. Both short-term leave (30 days in total over a three-month period) and long-term leave (12 consecutive months or 12 months in total over a two-year period) are offered.
Number of employees who took the advantage of the work-life balance support systems (January to December 2011)Showa Denko K.K. (including employees on loan)
Male Female Total
Childcare leave
Family care leave
Cumulative leave *
Shortened working hoursfor childcare/family care
34
2
2
512
33
1
25
81
67
3
27
593
My experience of using Reinstatement Support ProgramIn 2010, I gave birth to my first son, and returned to my work after taking almost one-year maternity
leave before and after childbirth combined with a childcare leave. At that time, the reinstatement support
program was in the trial stage, and I was a little concerned about the program. However, I decided to
apply for the program in the hope that I would be able to maintain the motivation of returning to work.
At the regular interview, I felt easy to speak when I followed the “Interview sheet” and shared neces-
sary information with my boss. In addition, I was not worried about returning to work as I had been
informed of the work site by e-mail once a month.
I used to communicate well with my boss on a daily basis, but after taking advantage of this program,
I could consult with him more specifically concerning the compatibility of raising kids and working. Now I
am positive in thinking of my future career.
Hiring and developing female employeesShowa Denko provides all employees, regardless of gender, age, or
nationality, with opportunities to demonstrate their competence. It
promotes a management policy emphasizing respect for employee
diversity, with the goal of further vitalizing corporate organizations.
As part of these efforts, during the period from 2008 to 2012,
Showa Denko intensively seeks to create opportunities for female
employees in Japan on a non-consolidated basis to actively demon-
strate their competence.
During 2010, the company continued to implement policies to
actively employ and assign female employees to various positions, with
the goal of supporting career/ability development, raising awareness,
and creating an environment that furthers diverse work styles.
Consequently, the percentage of female employees at Showa
Denko as of the end of 2011 rose to 8.7% (an increase of 0.6 percent-
age point from the previous year) and to 9.7% (an increase of 0.4
percentage point from the previous year) on a consolidated basis in
Japan. On a globally consolidated basis, female employees accounted
for 19.5% (an increase of 0.5 percentage point from the previous year).
The number of female managers doubled to 14 as of March 2012 from
7 as of the end of 2007 on a non-consolidated basis.
Showa Denko continues to foster a corporate culture that allows a
diverse workforce, including women, to demonstrate their competence
and capabilities.
Creating a comfortable workplaceShowa Denko believes that it is essential for its future devel-
opment to encourage employees to work with vigor and enthu-
siasm, and in harmony with society so as to meet sensitively
the needs of society. We conduct employees’ opinion surveys
on a regular basis, and other questionnaires and interviews to
understand the needs of the employees, results of which are
used for our personnel management.
As part of these efforts, Showa Denko is working to reduce
working hours. We will also take various measures, including a
reexamination of ways of working, to link these efforts to further
reductions in total working hours as well as the rising percent-
age of annual paid holidays taken by employees.
Promoting mental and physical healthTo work vigorously without anxiety, it is important for employ-
ees to maintain and promote their own health and the health of
family throughout their lives. To this end, we have been pro-
moting diverse initiatives based on the Showa Denko Group
Health 21 Plan since 2005 with a focus on safeguarding the
health of employees. In 2011, based on the results of health
checkups, each employee received health guidance and
encouragement to prevent or improve conditions of lifestyle-
related diseases such as metabolic syndrome through the
Group’s common priority targets to (1) prevent or improve con-
ditions related to lifestyle-related diseases (BMI, blood pres-
sure, fat and blood glucose); (2) enhance mental healthcare
efforts; and (3) reduce smoking rates. Exercise and healthy diet
seminars were also held to motivate employees to better take
care of their health.
In 2012, we formulated a Mental Health Care Plan at 28
worksites nationwide, and established a mental health care
promotion system by positioning the Mental Health Promotion
as the first priority. We will continue to prevent Mental Illness by
holding seminars on job
line care and self-care pro-
grams, as well as using a
selfstress check table.
Relations with the labor unionShowa Denko and the Showa Denko Labor Union have built
relations of mutual trust through years of dialogue. For both
parties, the fundamental policies of labor agreements are: (1)
solving problems through dialogue; (2) pursuing employment
stability and rewarding work; and, (3) improving working condi-
tions by achieving together both company growth and improve-
ments in profitability.
Most recently, in order to materialize better personnel
system, a Personnel System Study Group was established by
the people both from labor and management sides, and
discussed on the ideal future of the personnel system of the
company.
Promoting a sound work-life balanceShowa Denko provides a variety of work-life support pro-
grams suited to diverse life stages of employees. Furthermore,
we promote the following measures to encourage both male
and female employees to take advantage of the childcare leave
program.
“Childcare leave campaign for fathers” (Started in 2008)
Toward the summer holiday season, the company explains
on the childcare leave program to qualified male employees
and their superiors, with an application form attached. To date,
more than 90 fathers took advantage of this program.
“Reinstatement support program” for those taking the childcare leave and the superiors (Started in 2011)
This program was introduced with the aim of encouraging
smooth reinstatement and acceptance at the workplace by
implementing regular interviews with the superior, communica-
tion with other employees on childcare leave using SNS, and
self-development through e-learning systems during the period
from pregnancy, childcare leave to reinstatement.
Labor-management Joint Responsible CareTraining (Tatsuno Plant)
“Mental health case study simulation” seminar
Yukiko IkawaOsaka BranchShowa Denko K.K.
Ms. Ikawa (Left) interviewed by Mr. Sasai, her superior (Right))
2011年の重点品質目標
Change in the number of employees on consolidated basis
2007 2008 2009 2010 2011
(persons)
0
1,000
2,000
3,000
4,000
5,000
6,000
7,0006,025 6,246 6,449 6,101 6,031
588575496
5,304 5,5105,115
5,496 5,511
566
1,792 1,695 1,625 1,638 1,663
414
Total number of employeesin Japan on consolidated basisTotal number of all overseasemployees on consolidated basis
Number of female employeesin Japan on consolidated basisNumber of overseas femaleemployees on consolidated basis
(year)
Change in working hours (per employee per year)
Annual paid holidays taken (per employee per year)
2,076.0 2,048.4 1,922.4 2,013.6
2,063.2 2,054.4 1,969.3 2,019.2 2,019.5
2007 2008 2009 2010 2011
2007 2008 2009 2010 2011
0
500
1,000
1,500
2,000
2,500Manufacturing industry averageShowa Denko (actual working hours)
Manufacturing industry average
(year)
(year)
Showa Denko (actual working hours)15
10
5
0
(hours)
(days)
9.9 9.9 9.89.6 10.0
13.3 13.9 14.2 13.1 12.8
1
2
1 The manufacturing industry average was prepared using the data in the “Annual report on the monthly labour survey” published by the Ministry of Health, Labour and Welfare.
2 The manufacturing industry average was prepared using the data in the “General survey on working conditions” published by the Ministry of Health, Labour and Welfare.
* Number of employees taking the advantage of cumulative leave includes those who
took this leave with qualification other than for work-life support system.
26
SHOWA DENKO CSR Report 2012
27
SHOWA DENKO CSR Report 2012
Customer relations
Trends in annual numbers of complaints (With a score of 100 representing the number of claims in 2006)
30%(compared to 2010)
0
20
2006 2007 2008 2009 2010 2011
40
60
80
100
(%)
(Covering Showa Denko K.K. only)
Year
Index
Ensuring product safetyObservance of relevant laws and internal rules
To make it possible for customers to use Showa Denko Group
products in full confidence, product safety must remain a top prior-
ity issue.
With this in mind, we have established the Quality Assurance
and Quality Control Rules (see illustration below) as company rules.
The Rules are periodically reviewed and revised to bring them up to
date with current conditions. We abide by them in the same way
as we do laws and regulations pertaining to products. See the chart below
These rules have been established to ensure the rational,
systematic implementation of product-safety activities through all
stages, including product design and development, commercial
introduction and manufacture, and sales, as well as after-sales
information management.
For products and ingredients that might be absorbed directly or
indirectly into or that come into contact with the human body, such
as raw materials for pharmaceuticals and cosmetics, we’ve estab-
lished effective systems to ensure the products we provide to our
customers are always safe. These include rigorous screenings of
Quality Assurance and Quality Control RulesThese rules have been established as the basics to
ensure the rational, systematic implementation of product-
safety activities through all stages, including product design
and development, marketing and manufacture, and sales,
as well as after-sales information management.
In the Quality Month in November 2011, the Quality Control Seminar
was held at Yokohama Plant. In the lecture given by a member of the
Quality Assurance Office, the attendees learned various statistical methods
required to the Group to prevent defects from occurring by e-learning.
Quality control seminar held at Yokohama Plant
An example of textbookTOPICS for 2011RULE
Product safety screeningProduct risk assessmentSafety tests
Management of after saleinformation
Screening before concluding contractsand specificationsScreening of sales and PR materials
New-product launch proceduresQuality assurance capability screeningProcedures for changes inmanufacturing conditions
Design and development
Sales
Marketing and manufacture
After-sale
Materials
Spine
Middle boneBig bone
Smallerbone
Smallbone
Manpower
Machines
Method
Priority quality targets for 2011●Ensuring implementation of product risk assessment●Ensuring establishment of corrective action systems
Conducting product analysis
products brought to market and mechanisms that require strict
compliance with specified procedures in the event of any change
in manufacturing conditions. These procedures thoroughly account
for the possible effects of changes on product quality.
The screening process does more than simply verifying product
safety: Screening committees and other organizations also under-
take thorough studies of potential risks associated with each item
and ways to avoid such risks. Corresponding to various stages of
product life cycle from design and development to after-sales,
these studies examine various aspects, including the properties of
each product, intended use, usage patterns, and user characteris-
tics and issues related to disposal.
Efforts to meet environmental and social demandsThere is growing sentiment worldwide, particularly among
customers in the information technology, electronics and auto-
motive industries, to select and procure products with the
lowest possible environmental impact, based on the philosophy
of caring for the Earth through all stages of a product's life cycle,
from production, through use, and all the way to disposal.
The Showa Denko Group responds appropriately and in
good faith to meet customer requests to reduce the use of
harmful substances and to reassure customers that the
Group's products do not use or incorporate harmful chemical
substances subject to regulations in the EU or other regions.
The Group also responds in good faith to CSR-related inquiries
and surveys from customers.
Improving quality assurance and quality control levelsQuality management system (Quality control scheme)
Rather than a defensive approach to quality assurance that
seeks to prevent defects from occurring, the Showa Denko
Group implements a proactive approach in which customer
satisfaction constitutes the key to the Group's own satisfaction.
The Group does this by developing and supplying products
that will satisfy our customers.
Nearly all Group member companies have undergone
inspection and registration of quality management systems
under applicable international standards, including ISO 1
9001 and ISO/TS 16949. These Group companies constantly
strive to improve the quality of their products and services by
applying and improving the effectiveness of their quality man-
agement systems.
Reducing complaintsTo minimize problems for our customers, the entire Showa
Denko Group works to reduce the number of complaints
received. In 2011, we significantly reduced customer com-
plaints by 30% from 2010, as shown in the chart below.
We intend to promote the implementation of the quality
management system in order to achieve even greater reduc-
tions in the number of complaints and maintain zero product-
related accidents for preventing any threats or damage to cus-
tomers' lives/health or their properties. We plan to seek to earn
even higher levels of trust from our customers and to further
increase corporate value.
Activities targeting improved quality management levels
The Showa Denko Group performs periodic audits group-
wide across business divisions and worksites to raise quality
management levels.
In 2011, we implemented vigorous audits at 46 sites, identi-
fying issues and providing advice on improvement on the chal-
lenges concerning corrective actions set as priority targets for
2011 (in particular, classifying clearly a modification treatment
and a corrective action). This year's audits will continue to
focus on increasing the effectiveness of the quality manage-
ment system in 2012.
In addition to annual periodic events such as training semi-
nars for internal auditors, ISO/TS16949 seminars, presenta-
tions on quality assurance and quality-control rules, and prod-
uct risk seminars, we held seminars to upgrade the capabilities
of internal auditors at five sites. Furthermore, in 2011, we
started e-learning programs on quality control and risk manage-
ment, etc., and will improve the contents of the education
materials. Thus, we undertake a wide range of educational and
training activities to improve the quality management levels
throughout the year.
1 ISO (International Organization for Standardization) :A private-sector international specialist organization established in 1947 to
promote international standardization of products and services. In 1987, it
established the ISO 9000 series of standards on quality control and assurance;
in 1996, i t began establ ishing the ISO 14000 series of environmental
standards. The ISO 26000 standard for social responsibility was announced in
2010.
sites46 (where audit was conducted in 2011)
CSR Actuvity List of Declarations and Certifications
Web
下図参照
28
SHOWA DENKO CSR Report 2012
29
SHOWA DENKO CSR Report 2012
Shareholder and investor relations Partner relations
Valuation of our IR activities Continuing and increasing CSR visitsShowa Denko has its IR websites for shareholders and investors,
on which financial results, presentation materials, news releases, etc.
are posted on a timely basis.
We also place an emphasis on information disclosure for our
overseas or non-Japanese investors by providing quarterly financial
results and annual reports, etc. on the English-version website.
We will continue to carry out our CSR visit
program with the aim of realizing dialogues
with as many supplier partners as possible.
Furthermore, we are considering an expansion
of this program to our domestic Group compa-
nies as well as collaboration with overseas
supplier partners as realistic measures.
“Although I didn’t think that CSR was for a small company like us, we have started our CSR efforts after the Showa Denko staff visited us.” (A construction company)
“I have participated in CSR presentation meetings of our clients in the past, but I used to just listen unilaterally. When they visited us recently, it was very easy to understand because we talked face to face.” (A construction company)
“After receiving a CSR visit, we made it obligatory to wear a helmet for the safety of employees.” (A packaging materials company)
“We started to implement CSR activities influenced by the CSR procurement of Showa Denko. All of us are working on those activities more positively than expected.” (A construction company)
Voices of our supplier partnersOur CSR activities for 2012TOPICS for 2011
companies225 (Past results of self-assessment:
Answers from the existing and newsupplier partners)* Self-assessment forms were sent to269 companies. Response rate: 84%
visits56 (Total number of CSR visits conductedcompanywide) * Targets for 2011: 50 visits
Responded: 995companies
(response rate: 78%)
Not responded
Total number of “Self-assessment”for three years
send to1,223
companies
This website won the “Fiscal 2011 Listed Company Quality
Website Award” of Nikko Investor Relations Co., Ltd., and the “Award
for Excellence in Internet Investor Relations 2011” of Daiwa Investor
Relations Co. Ltd. Also, we received the “Laudable Award” of the
2011 Awards for Excellence in Corporate Disclosure selected by
Security Analysts Association of Japan, as it was our third year in a
row to receive the same award.
Basic policy on information disclosureShowa Denko believes disclosure and investor relations play
a vital role in deepening shareholder and investor understanding
of our approach to various issues, including corporate manage-
ment, business activities, and strategy, helping these stakehold-
ers accurately assess our corporate value. Our information
disclosure measures are based on the following policies:
Basic policy on purchasingShowa Denko’s basic policies for the selection of supplier
partners are as listed below, under which we concentrate our
efforts in fulfilling our social responsibility while promoting CSR
procurement in collaboration with those supplier partners.
CSR procurement activitiesShowa Denko undertakes CSR procurement, attaching
importance to the society- and environment-conscious busi-
ness activities in the entire supply chains from the procurement
of raw materials to manufacture and sale. Our CSR procure-
ment aims to mutually improve corporate value of both supplier
partners and Showa Denko by sharing and complying with the
Showa Denko Group CSR Procurement Guidelines with sup-
plier partners through communication to further enhance
mutual trust.
In 2011, we focused our efforts on the expansion of “Self-
assessments” and “CSR visits” that had been initiated earlier to
further deepen the contents of those activities.
In the wake of the occurrence of the Great East Japan
Earthquake in March 2011, we were obliged to change our
Communicating with shareholders and investorsShareholder meetings
Showa Denko holds a regular general meeting of sharehold-
ers each year at the end of March. In addition to invitations
issued around four weeks before these meetings, we post
related information on our website to ensure shareholders have
enough time to consider various proposals. We have adopted
a system whereby shareholders can exercise voting rights via
the Internet, allowing even greater numbers of shareholders to
participate.
At the general meeting of shareholders, Showa Denko
reports the progress of
its medium-term con-
solidated business plan
and main topics of its
business, and demon-
strates products and
technologies of the
Group companies at a
display space created
for that opportunity.
Outline of the basic policies:We seek to communicate proactively with sharehold-ers and investors and to improve management trans-parency.
We strive to disclose information concerning Showa Denko in a clear, fair, timely, and accurate manner to deepen understanding of and trust in our company.
We will take a comprehensive approach in selecting most suitable supplier partners based upon economic rationality by taking into consideration quality, price, delivery period, credibility of management, safety, services, technological competence and attention to environment and society.� In selecting our supplier partners, we have an open-door policy for business opportunities with sincerity, fairness and honesty, disregarding the nationality, past records of transaction and the corporate group relationship of the candidate companies.
Our purchasing activities shall be in compliance with laws and regulations, as well as our internal rules.
1
2
Display at the venue of general meeting of shareholders
CSR visits
1
2
3
plan signif icantly, including a
two-month suspension. How-
ever, on the other hand, it turned
out to be an opportunity for us to
become strongly aware of our
collaborative relationships with
supplier partners, which resulted in more fruitful activities.
In the recent self-assessments, the response rate rose as
we contacted supplier partners more frequently which had not
answered before. As to CSR visits, our activities were con-
ducted with stronger awareness of enhancing trust relation-
ships with partners and improving mutual corporate values.
We look forward to your understanding and cooperation for
further development of our CSR procurement activities.
Cumulative number of CSR visitsconducted:
1
40
96
2009 2010 2011 (year)
(Number of visits)
0
20
40
100
Communicating with institutional investors and shareholders
We keep domestic institutional investors, analysts, and other
market participants informed in various ways, including meet-
ings to explain annual and semiannual financial results, net-
conferences for results announced for the first and third quar-
ters, and meetings to outline progress with business plans.
Overseas institutional investors and shareholders receive
English-language versions of our annual results and transcripts
of net-conferences, and other materials. In addition, several
times each year, the President and/or members of the man-
agement team visit Europe, North America and Asia to report in
person on various issues, including Group business results
and future business plans.
To communicate with individual investors, we participated in
seminars for private investors hosted by securities firms and
other organizations,
reporting on the results
of our business and
future business plans,
and answering ques-
tions raised by inves-
tors, while displaying
our products. Presentation meeting for institutional investors and securitiesanalysts on the progress of the medium-term consolidated business plan
Returning profits to investorsPayment of dividends to shareholders is one of our impor-
tant obligations, and it is our basic policy to determine the
details of dividends by taking into consideration profits of the
relevant fiscal year and retained earnings reserved for future
business development. Retained earnings will be applied to
capital expenditure and R&D activities for nurturing and acceler-
ating growth business, and to the improvement of financial
standing.
30
SHOWA DENKO CSR Report 2012
31
SHOWA DENKO CSR Report 2012
Community relations
Results of our local and socialcontribution activities
Number of sites*Details of the activities Results
14 cases; Dispatched 178.5 man-hours
25 events implemented; Accepted 66 interns.
Conducted for 5,986 hoursin total.
* Number of worksites that conducted the CSR activities: 16 worksites, head office and 3 branches
●Cleaning activities
●Dispatched employees as instructors.
●Accepted interns.
17
6
9
1
2
RESULTS
The Showa Denko Group checks the status of the CSR activities conducted by each work-site and the domestic and overseas affiliated companies to improve those activities and share the information on the CSR-related achieve-ments within the entire Group. The status of the activities in 2011 is shown on the right.
Education:
Improvement of the environment around the worksites:
We focus on giving knowledge on chemical substances, interest in chemistry, and relationship with environment and other aspects of “chemistry.”
We conduct cleaning activities by ourselves or together with local residents paying attention to the environment around the worksites.
Rented for 12,669 hours in total.
5,332 residents participated.
8,698 residents visited plants.
Spent 1,494,000 yen.
Spent 133,000 yen.Spent 5,818,000 yen.
●Facilities rented
●Holding events
●Offering guided plant tours
●Harmonizing with local economy
●Collaborating with NPOs and local organizations
●Cooperation for and granting subsidies to arts, culture and sports
11
11
16
16
418
4 Exchange with local communities
3 Promotion of arts, culture and sports
5 Community development and social welfare
We attach great importance to the exchange with the local communities by opening the Group’s facilities to local residents and holding events to which people are welcome.Furthermore, we publish worksite information magazines and invite local residents to participate in plant tours with the aim of realizing dialogues with local communities.
We will contribute proactively to the development of local economy by participating in the events hosted by the local community associations, and participating and cooperating in urban development planning and town vitaliza-tion activities, technical assistance to local medium- and small-sized companies, actively creating local employ-ment, and local procurement of merchandize and materials. Furthermore, our contribution to local communities also extends to a collaboration with NPOs and local organizations in the social welfare-related activities, etc.
We offer support to the promotion of arts, culture and sports.
Number of sites*Details of the activities Results
The Showa Denko Group contributes to society by providing
products and services and by making the most of the Group's
unique resources (technologies, human resources, facilities)
The Group participates aggressively in educational programs
for children, who will assume leading roles in our future society. It
also contributes to local communities through demonstrations and
lectures on chemistry and the environment, as well as guided
tours of the plants.
Contribution to chemistry/environmental educationClass-on-demand for making objects (Kitakata Plant)
Kitakata Plant held a “Class-on-demand for making objects”
on July 28, 2011. This class was jointly sponsored by Kitakata
City government, Fukushima Prefectural Kitakata Tooh High
School and the Kitakata Plant, intended to increase interest in
manufacturing and understanding of the activities of the local
company.
Participants selected in a drawing included 20 elementary
school pupils and nine high school students as instructors to
teach how to create robots.
After a guided plant tour, the participants engaged in making
robots for about two hours. They had a tournament of their own
robots, and a fifth-grader girl won first prize. Many participants
expressed their general
impression of the event,
“Mak i ng robo ts was
difficult, but I was excited
about it. I do want to join
the event next year, too!”
It is Showa Denko’s
wish to give dreams and
hopes to children toward
the future.
Participated in a chemistry experiment event for children: Chemistry Makes Our Dreams Come True:
Showa Denko's Head Office and Analysis & Physical Properties
Center participated jointly in the chemistry experiment event
"Chemistry Makes Our Dreams Come True" for elementary school
pupils and junior high school students, which was held at the
National Museum of Emerging Science and Innovation ("Miraikan")
in Odaiba, Tokyo on November 26 and 27, 2011.
We gave a class of experiment on the theme of "Making
candles from soap" as in the previous year. A candle can be
made in the following process: Put some lemon juice into soapy
water to generate small pieces of wax that will come up on the
surface of water; Collect these pieces of wax, and put them in a
container; Heat the container to melt the wax, and put a candle-
wick in it; Then, cool it until the wax becomes hard. We could
demonstrate how interesting chemistry is by using something
familiar to us. There were so many applicants for this class that
they reached the capacity in a blink of an eye.
“Chemistry Makes Our Dreams Come True” is an event initiated
in 1993 and hosted jointly by The Chemical Society of Japan, The
Society of Chemical Engineers, Japan, Japan Association for
Chemical Innovation and Japan Chemical Industry Association as
part of “Yume Kagaku-21” (dreams and chemistry toward 21st
century) campaign supported by the Ministry of Education,
Culture, Sports, Science
and Technology, and the
Ministry of Economy,
Trade and Indust ry .
S h o w a D e n k o h a s
participated in this event
as part of its CSR activi-
ties.
Interaction with local community-Efforts to keep towns clean
Activities at Tokuyama PlantIn East Yamaguchi district, where the Tokuyama Plant is
located, the Shunan City Environment Preservation Council and
the 17 member companies of the Japan Responsible Care Coun-
cil (JRCC) jointly hold Responsible Care (RC) 1 community
dialogue meetings every year. This event is typically attended by
many local residents and students as well as administrative staff
members to exchange opinions proactively.
As part of the RC community dialogue meetings, we started
cleaning activity jointly in 2009 which had been requested by
many local residents. These volunteer activities are active coop-
erative works between the communities and companies, which
are attended by more than 1,000 people in total every year includ-
ing local residents (with administrative staff) and approximately 750
participants from those 17 member companies.
The said cleaning activity is conducted jointly by the Tokuyama
Plant, the neighboring two member companies and three commu-
nity associations of Hirano district (approximately 100 participants)
in community parks as well as flowerbeds owned by the commu-
nity associations at the request of the local community associa-
tions.
Other than the above, we
positively conduct cleaning
activities in Kano district,
Shunan City, such as tree
thinning operations (by forest
volunteers of the Town,
Forest and Water Network-
ing) in cooperation with the member companies of the Shunan
District Industrial Water Users Council with the aim of maintaining
the water source areas and cleaning the Nishikigawa River.
Interaction with local communities-Communication with residents of local communities
RC Community Dialogue Mini-meetingsOn February 27 and March 6, 2011, the Oita area community
dialogue mini-meetings were held at the Oita Complex, which
were attended by 50 residents. These mini-meetings are for the
residents of the Misa and Tsurusaki school districts near the Oita
Complex, and held in a year when the RC community dialogue
meetings are not held.
About eight people including participants from companies
seated around each table exchanged opinions frankly for approxi-
mately one hour and a half.
Many local residents gave us feedbacks that the dialogue
meeting was very fruitful, and some of them gave us a positive
impression, saying “I learned about what they were making at the
plant, as well as other things such as the odor released from the
plant and guided plant tours. I do want to participate in a plant tour
to learn more.” We are aware that the company image has
changed a lot as a result of holding mutual communication repeat-
edly. Therefore, we will continue to promote mutual understanding
on a community basis.
1 RC Community Dialogue Meetings:The RC community dialogue meetings, which are sponsored by the Responsible Care
Committee of the Japan Chemical Industry Association and held jointly by companies,
focus on dialogues with the public administration and the local residents concerning
community safety and the preservation of the environment.
Cleaning volunteers in Hirano district
Children struggling to make robots
volunteersparticipated
A total of approx.
750 (from 17 companies).
Forest volunteers
Chemistry Makes Our Dreams Come True: A chemistry experiment event for children
32
SHOWA DENKO CSR Report 2012
33
SHOWA DENKO CSR Report 2012
Community relations
1 Trident United Way :A non-profit organization working to strengthen communities in Berkeley, Charleston and
Dorchester counties, South Carolina, by focusing on education, financial stability and
health.
CSR activities in other countries -EducationP.T. Showa Esterindo Indonesia implemented an SEI’s Open
House program on November 17, 2011. This guided plant tour
was initiated in 2011 so that people living near the plant would
be able to understand about the company. In the first fiscal
year, about 60 local kindergarten children (of five to six years of
age), their parents and teachers were invited to visit and see
the plant. In the second year, we plan to invite junior-high and
high school students.
Since 2000, an internship training program has been imple-
mented. Under this program, the second-grader students of
the neighboring technical high schools (they will become the
third-grader in July when a new school year begins) are
assigned to various departments of the plant for two months
from June to July to experience practical operations.
In 2011, two students majoring in chemistry were invited
from SMKN 1 Pulo Ampel, and assigned to the Quality Assur-
ance Department where they experienced process analysis
and product analysis, etc.
The company has once hired a highly capable student who
had experienced the internship program upon graduating from
university as an employee, and plans to accept more interns
toward the future.
CSR activities in other countries-Interchanges with local communities
Showa Denko Rare-Earth Vietnam Co., Ltd.On November 6, 2011, a festival of the Japanese living in
Hanoi entitled “Sending the Vigor of Hanoi to Japan 2011” was
held in Hanoi, Vietnam. Showa Denko Rare-Earth Vietnam Co.,
Ltd. participated in the operation of this festival as volunteer
supporters. The main purpose of this big event is to introduce
Japanese culture, and is hosted by The Japan Business Asso-
ciation in Vietnam. There were Yosakoi Soran dance show and
dance by the children of Sakura Kindergarten on the stage, as
well as Bon festival dance by the members of a women’s soci-
ety. Over 3,100
people visited the
festival.
Environmental monitors’ meetingOn December 21, 2011, an environmental monitors’ meeting
was held at the Oita Complex. This meeting is intended to realize
an early resolution of environmental problems caused by the
Complex such as odor, noise and other phenomena of concern
that were pointed out by the local residents, and to raise control
levels, which is highly acclaimed
by the relevant authorities. The Oita
Complex commissions 20 moni-
tors. This time, 12 of them partici-
pated in the guided plant tours and
joined the meeting to exchange
views.
Development and welfare of the local com-munity -Disaster relief efforts
Relief efforts for the regions hit by the Great East Japan EarthquakeThe Showa Denko Group remitted a total of 100 million yen to
Fukushima Prefecture, Soma City, Shinchi-town, where the busi-
ness bases are present, and the Japanese Red Cross Society as
relief money in hopes of the earliest possible restoration of the
quake-hit regions.
In addition, heartfelt relief money of more than 10 million yen
was collected from among the employees and sent to the disaster
victims in collaboration with the labor union of Showa Denko.
Furthermore, the Chambers of Commerce of Aizuwakamatsu
City and Kitakata City, Fukushima Prefecture and Showa Denko
jointly held an event of “Fukushima and Aizu Foods and Products
Marché” at the Head Office (June 24), the Kawasaki District
Summer Festival (July 28), the Yokohama Plant (August 9) and the
Sakai Plant (September 9). In
addition, a mail-order service
for merchandise made in
Fukushima Prefecture was
conducted exclusively for the
employees of the Showa
Denko Group companies.
Responses to the major flood in ThailandOne of our affiliated companies, Showa Aluminum (Thailand)
Co., Ltd. (“SAT,” which was assigned to Keihin Corporation in
January 2012), also suffered damages due to the major flood that
broke out in Thailand in 2011. Showa Denko donated 10 million
yen as relief money for the affected region and the affected people.
TOPICS for 2011
For the development and welfare of localcommunities – Aluminum can recycling activities
As part of its CSR efforts, the Showa Denko Group asks employees
and cooperative companies to collect aluminum cans for recycling. In
2011, these efforts resulted in the collection of 6.07 million cans,
equivalent to approximately 98 t of aluminum.* The revenue generated
was donated to local councils active in social welfare, associations for
the physically challenged, and other organizations and used to promote
welfare activities in local communities.
(* Calculations assume 1 can = 16.2 grams)
The aluminum metal used to manufacture aluminum cans can be
obtained by melting and refining raw ore. Producing aluminum metal
from recycled aluminum cans cuts the electrical power required for
production, to as low as 3% of the power required for the production from
raw ore. The Showa Denko Group aggressively promotes aluminum can
recycling not just to contribute to regional communities, but to help
conserve energy and resources. As of the end of 2011, the employee
participation rate reached 92.3%.
Showa Aluminum Can Corp., a subsidiary, manufactured aluminum
beer cans for the first time in Japan in 1971. The company's employees
initiated voluntary aluminum can recycling activities in 1972. These activi-
ties have gradually expanded to involve the entire Showa Denko Group,
marking their 40th anniversary in 2011. We will continue to energetically
pursue these efforts to contribute to the environment and to our local
communities.
million cans collected.million cans collected.AboutAbout6.076.07(Equivalent to about 98 t of aluminum)
Energy-saving effect in aluminum (based on electrical power required for production)
3
100
Virgin metal Recycled metal Donated earnings from aluminum can recycling to the Public Health and WelfareSection of Ichihara city office (Chiba Plant)
Production needs only about 3% ofelectrical power.
On December 23, 2011, an exchange party of the liaison
council of Japanese companies in the Dong Van II Industrial
Park, where Showa Denko Rare-Earth Vietnam Co., Ltd. oper-
ates, was held. This party is held by each Japanese company
operating in this industrial park in turn. And in 2011, it was
Showa Denko Rare-Earth’s turn to organize the party, and
people of those Japanese companies and the deputy general
manager of the Corporate Liaison Council Administration
Bureau of Hà Nam Province were invited. The Liaison Council
activities were reported and several games were played, thus
the exchange was deepened.
Showa Denko Carbon, Inc.Showa Denko Carbon, Inc. (in the United States) participates
every year in the support activities of Trident United Way. 1
One of their activities, “Links to Success,” is an educational
program to help school children improve their school records
and life attitudes, in which individual volunteer instructors
recruited from private organizations or public team up with
students on one-on–one basis for one year to help learn the
subject the partner student is lagging after school.
In 2011, eight volunteers participated from Showa Denko
Carbon to assist pupils of Harleyville/Ridgeville Elementary
(HRE) School. HRE held a banquet at the end of the program
year, which was covered in a news program of local media.
Exchanging views at the environmentalmonitors’ meeting
Exchange party for of the liaison councilof Japanese companies (December 23)
Students under the internship training program
View of SEI's Open House
A view of the event held at the Yokohama Planton August 9
1
peopleparticipated.3,100
34
SHOWA DENKO CSR Report 2012
35
SHOWA DENKO CSR Report 2012
Environmental effortsCSR Activity Report: Environmental efforts
Recognizing environmental conservation as a high-priority management issue, the Showa Denko Group is committed to cutting emissions of chemical substances and reducing industrial waste generation to prevent global warming and other environmental problems. The Showa Denko management policy also includes safe, stable operations and thorough Responsible Care activities. All members of the Group work hand-in-hand to eliminate accidents and disasters.
Typical environmental impact index at Group companies
2006 2007 2008 2009 2010 2011
GHG emissions (kt-CO2)
Final landfill disposal (t)
Emissions of JCIA PRTR-listed substances (t)
Energy conservation
Resource recycling
Waste reduction
Other
Total
SOx
NOx
Soot and dust
COD
Total nitrogen
Total phosphorus
Landfill disposal
Unit energy consumption
494
1,715
76
431
212
61
456
1,540
68
429
1,341
90
406
1,120
69
233
768
5
0
1,006
3,698
3,522
283
786
607
51
19,723
100%
457
1,238
153
386
502
16
1,932
91.4%
1990 2011
435
201
62
7
6
1 Following the merger that took place in July 2010, the data for 2011 include the results of the former Showa Highpolymer Co., Ltd.
2 Greenhouse gases (GHGs):This term refers to atmospheric gases that have greenhouse effects.GHGs emitted in large volumes by human activity cause global warming. GHGs include carbon dioxide, methane, nitrous oxide, and chlorofluorocarbons. Infrared light radiated from the earth’s surface releaes heat brought by sunlight into outer space. GHGs trap this infrared light, resulting in higher atmospheric temperature.
3 Emissions of toxic atmospheric pollutants are included in emissions of PRTR-listed substances.
4 Waste water volume from designated facilities:Wastewater volume from business facilities designated under the Water Pollution Control Act.
5 Reductions:This term refers to reducing the volume of waste by dewatering, drying, burning, and other means.
6 Scope of the Showa Denko Group:Total for the ten consolidated manufacturing subsidiaries in Japan: Showa Denko Gas Products Co., Ltd., Showa Titanium Co., Ltd., Showa Aluminum Can Corp., Showa Denko Packaging Co. Ltd., Showa Denko Kenzai K.K., Niigata Showa K.K., Nippon Polytech Corp., Showa Denko Kenso Co., Ltd., Tohoku Metal Chemical Co., Ltd., and Showa Denko HD Yamagata K.K. GHG emissions include those for Showa Denko Electronics K.K. and Tsurusaki Kyodo Doryoku Co., Ltd. and exclude those for Niigata Showa K.K., Nippon Polytech Corp., and Showa Denko Kenso Co., Ltd., which are not required to report emissions as emitters designated under the Act on Promotion of Global Warming Countermeasures.
7 The figures given for final landfill disposal cover only waste generated by production activities in the respective years.
OUTPUTINPUT
Investment in the environment (cumulative total from 1990) Investment in safety and disaster prevention (cumulative total from 1990)
Economic benefitsReducing environmental impact
Energy
64.98Mm3
(-2,231m3)
Raw materials
Products
Waste reductions
59,291t(–2,453t)
Emissions of air pollutants
Greenhouse gases
SOx NOx Soot and dust JCIA PRTR-listed substances
JCIA Toxic atmospheric pollutants
(Showa Denko K.K. only)
(Showa Denko K.K. only)
(Showa Denko K.K. only)
(Showa Denko K.K. only)(Showa Denko K.K. only)
(t) (million yen)
The figures in parentheses represent increasesor decreases relative to the previous year.
Note: In principle, the data provided on this page represent total calendar year values. Data that must be reported to authorities represent total fiscal year values.
COD
Total nitrogen
Total phosphorus
JCIA PRTR-listed substancesWastewater volume fromdesignated facilities
35,141 t (-1,053t)
Emissions of water pollutants
Waste discharge
Plants operated byShowa Denko
1.05Mkl(crude oil equivalent)
(-10,000Kl)
Water
Internal Utilization
3,714t(-1,844t)
2,254kt - CO2 (–52kt–CO2)
457t (–7t)
1,238t (–47t)
153t (+22t)
317t (+44t)
28t (–4t)
386t (–58t)
502t (–72t)
16t (+4t)
55t (+12t)
33,914,000t (+3,797,000t)
Use outside Showa DenkoReductions in volumeoutside Showa Denko
15,413t (+3,671t)
17,798t (–4,265t)
Landfill disposal 1,932t (–458t)
1110090807060504030201000
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
99989796959493929190 (year) 11100908070605040302010099989796959493929190 (year)
(million yen)
(million yen)
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
1
Detail Capital investment Expenses
(million yen)
(Showa Denko K.K. only)
Pollution prevention
Global environmental protection
Resource recycling
995
850
124
0
20
298
0
0
2,287
356
835
2,006
55
582
200
11
274
4,319
Cost within business site
Upstream and downstream costs
Administrative costs
R & D costs
Community outreach costs
Other
Total
Capital investments and expenses associated with prevention of atmospheric/water/soil pollution, noise, vibration, odor, etc.
Capital investments and expenses associated with energy conservation and combating global warming and ozone-layer depletion
Capital investments and expenses associated with resource conservation and waste treatment
Costs associated with reducing environmental impact in business operations upstream and downstream, including green purchasing and recycling of products and packaging
Administrative costs relating to environmental conservation, including environmental issues training, introduction of
environmental management systems, and environmental impact evaluations
Costs associated with research and development of environment friendly products and technologies
Environmental conservation costs for local community outreach activities not directly linked to business operations, such as environmental conservation projects in communities, dialogue with residents, and plant tours
Compensation for health damages resulting from environmental pollution, etc.
Cost
4
3
2
5
The diagram below summarizes the resource use and environmental impact associated with the operations of Showa Denko.To reduce our impact on the environment, the Group is currently pursuing the efforts described below.
2011 resultsShowa Denko is committed to ongoing environmental invest-
ment designed to reduce energy consumption and minimize envi-
ronmental impact of our operations. Since 2000, environmental
investment and associated expenses as well as their effects have
been subject to evaluation in the form of environmental accounting.
In 2011, the investments were made in countermeasures
against the decrepit facilities of the Oita Complex, the Kawasaki
Plant and the Higashinagahara Plant (hydroelectric power gen-
eration).
Environmental accountingResource use and environmental impact
36
SHOWA DENKO CSR Report 2012
37
SHOWA DENKO CSR Report 2012
Climate change efforts
Trends in unit energy consumption (Showa Denko K.K. only)
TOPICS for 2011
Energy use reduction measures Showa Denko Electronics K.K
Showa Denko Electronics K.K., a manufacturer of hard disks and
LEDs, continues its efforts to save energy as a member company of the
Showa Denko Group. In Fiscal 2011 the company focused its efforts on
all-out power saving in the entire plant due to tight power supply in the
wake of the earthquake disaster. Measures taken to address the power
shortage problem at the peak hours included consolidation of facilities,
review of the number of machines to operate, converting rotary
appliances into inverter-run motor drives, and shifting the processes of
waste liquid treatment and pure water production to night time,
realizing a reduction of 4,500 t in annual CO2 emission.
Kawasaki PlantAt the Kawasaki Plant, as a measure to reduce environmental
load and enhance competitive edge of the worksite, new facilities
were installed and started operation to supply bleeder steam of the
power generation boilers located in the Ogimachi district to the
Okawa district and the neighboring affiliated companies across
canals through an undersea tunnel.
These facilities were established using the subsidy from the
NEDO’s Energy Saving Operations Support Program. In the past, we
used small-sized boilers to generate steam in each operating areas,
but it is expected that we will be able to save fuels equivalent to
4,700 kl annually and cut CO2 emissions equivalent to 2,400 t by
consolidating these boilers.
TOPICS for 2011
Measures for c-LCA
●Continuing to improve unit energy consumption●Achieving Kyoto Protocol targets for the Showa Denko Group by itself; preparing for post-Kyoto Protocol
●Creating energy conservation measures● Implementing reduction plans at each site●Thoroughgoing power consumption reductions
Policy
Plans
Plans for 2012
●Unit energy consumption: 91.4% (compared to 1990 levels), up 0.1% from 2010●Greenhouse gas emissions: 22% reductions at Showa Denko, 20 % reductions across entire Showa Denko Group (compared to 1990 levels)● Implementing the plan to achieve Kyoto Protocol targets in promise period (by Showa Denko)●Unit energy consumption as designated shippers in 2010 and reduction plans for 2011 reported to authorities.
Policy
Plans
Achievements in 2011Plans for 2011
●Creating energy conservation measures● Implementing reduction plans at each site
●Creating energy conservation measures● Implementing reduction plans at each site●Thoroughgoing power consumption reductions
C-LCA (carbon-Life Cycle Analysis) is a methodology to assess
the CO2 emissions in the total lifecycle of products from the time
their raw materials are taken, they are manufactured, distributed,
used up to the time they are abandoned. Showa Denko has started
quantification of its contribution to the reduction in CO2 emissions
generated from the use of our chemical products by comparing the
CO2 emissions in the production processes of our chemical products
as well as in the use of those products, with the CO2 emissions in
10 11090807060504030201009990
(%)
0
60
70
80
90
100
(year)
10 1109080706900
2,000
3,000
2,500
3,500
(FY)(Reference year)
Amountdischarged
(kt-CO2)
Change in discharged amounts of greenhouse gases and target figures (Showa Denko Group*)
08~12Group's target
Thermal power (including IPP):20%
Power use rates by source (Fiscal 2011)
Hydraulic power:20%
Power purchase:60%
Electric energy1,733GWh
* The emission factor (0.559t-CO2/MWh) as provided by the Ordinance of the Ministry of Economy, Trade and Industry, and the Ministry of the Environment No. 3 was used.
●Continuing to improve unit energy consumption●Achieving Kyoto Protocol targets for the Showa Denko Group by itself; preparing for post-Kyoto Protocol
+1% –1%–6%
–16%–19% –20%
–6%
the use of alternative products in the assumption that those
chemical products did not exist.
From the perspectives of total optimization across the product
lifecycles, not to mention the reduction in CO2 emission in the
manufacturing processes of chemical products, we will focus on the
contribution to the reduction in CO2 emissions of our entire commu-
nity generated from the use of chemical technologies and chemical
products by applying this methodology.
Promoting energy conservationRegarding energy conservation as a major issue both for
preventing global warming and protecting resources, the Group
is currently advancing various measures to conserve energy,
including reviewing and optimizing production processes and
modifying facilities.
In Fiscal 2011, the unit energy consumption by Showa Denko
worsened by 0.1% on a year-on-year basis due to an increase in
energy consumed appearing in the data. This was attributable to
the limited effects of improvement in unit energy consumption by
the new cracking furnaces that faced a trouble at the Oita
Reducing greenhouse gas emissionsThe Showa Denko Group reduced its greenhouse gas
(GHG) emissions 13% from the reference year (1990), based
on the average figure for the commitment period (2008 to
2010). We have set a goal of 6% reductions from the reference
year specified in the Kyoto Protocol by itself and are pursuing
further reductions in greenhouse gas emissions. We have also
set reduction targets for the emission intensity of greenhouse
gases in our manufacturing and filling processes, including
carbon dioxide, nitrous oxide, and CFC substitutes (e.g., HFC
and PFC). To achieve these targets, we are systematically pro-
moting various emissions control measures, including the
recovery of gases emitted during filling processes and the
installation of GHG decomposition and treatment units.
Reducing environmental impact through supply chain management (SCM) Lessening environmental impact in transportation
Showa Denko K.K. is working to reduce its environmental
impact by improving transportation efficiency and by promoting
a modal shift throughout its supply chain, from the procurement
of materials, through production and sales, to delivery.
The unit energy consumption in fiscal 2011 decreased by
approximately 4% compared with the previous fiscal year. This
improvement is mainly attributable to the rising ratio of sea
transport, especially the ratio of transport by more fuel-efficient
ships resulting in the reduction of the unit energy consumption.
Impact of the Great East Japan EarthquakeAs our distribution center at Soma Port, which had been
used for sea transport of liquid ammonia, was destroyed by the
tsunami, we shifted entirely to transport by tanker trucks to
deliver products from the Kawasaki Plant to customers in the
Tohoku region. While this measure resulted in a year-on-year
deterioration factor in unit energy consumption figures in fiscal
2011, the impact on the entire company remained insignificant.
Complex at the end of the fiscal year, combined with a year-on-
year decrease in the energy used at the Kawasaki Plant which
did not appear in the data.
The value for the previous fiscal year has been revised as
definite value in accordance with the data.
Showa Denko also operates hydraulic power plants near its
inland sites as clean energy sources, supplying approximately
20% of its total electricity use. Compared with assumed power
purchase, we would cut CO2 emissions equivalent to 190,000 t*
annually.
* Note: Scope of the Showa Denko Group: See 6 at the bottom of page 36. Data for the reference year includes data for Showa Light Alloy Co., Ltd. (Plant No. 1) and Shunan Denko K.K. but excludes data for Showa Denko Electronics K.K., Tohoku Metal Chemical Co., Ltd., and Showa Denko HD Yamagata K.K.
38
SHOWA DENKO CSR Report 2012
39
SHOWA DENKO CSR Report 2012
Climate change efforts Reducing chemical substance discharge
●Naphthalene ●Acenaphthene●Others
●Toluene ●1,3-butadiene●Others
●Dichloromethane ●Xylene ●Others ●Boron compounds●Hydrogen fluoride and its water-soluble salts
●Styrene ●Vinyl acetate●Others
●Toluene ●Formaldehyde●Others
●Normal-hexan●Vinyl acetate ●Others
Omachi Plant Kawasaki Plant
Total emissions67.4t
Tatsuno Plant Oita Complex Isesaki Plant
Total emissions7.5t
Higashinagahara Plant Chichibu Regional Office
Total emissions31.8t
Total emissions13.2t
Total emissions10.4t
Total emissions3.7t
Total emissions3.4t
600
500
400
0
Freight ton-km
(million ton-km)
(FY)09 10 11
551 561
470
100
150
50
0
Annual electric power usage at the Head Office
(year)10 11
110
–18.5%
135
38
34
30
26
22
24232221201918
0 0
Transportation sector's CO2 emissions and energy consumption rate
(thousandtons)
(10 thousandkWh)
(㎘/kl per million ton-km)(crude oil equivalent)
(FY)1109 10
33.1
26.2
22.521.7
20.9
CO2 emissions by transport sector
CO2 em
issions by transport sector
Unit energy consumption for transport
100
80
60
40
20
0
FY2011 ratios for use of various modes of transport(%) ■ ■ ■Road Rail Sea
Freight tonCO2 emissions Freight ton-km
59%
1%1%
3%
32%
63%
40%
66%
36%
●Responding properly to amendments to laws at home and abroad, reducing emissions
●Thoroughly disseminating information on, and implementing PRTR revisions●Developing and implementing reduction plans for each worksite
Policy
Plans
Plans for 2012
●Total emissions of PRTR-listed substances: 372 t, up 15 t from 2010
Policy
Plans
●Reducing chemical emissions
Achievements in 2011Plans for 2011
●Thoroughly disseminating information on, and implementing PRTR revisions●Developing and implementing reduction plans for each worksite
18.5%
●Methyl (S)-7-chloro-2, 3, 4a, 5-tetrahydro-2- [methoxycarbonyl (4-trifluoromethoxyphenyl) indeno [1, 2-e] [1, 3, 4] oxadiazine-4a-carboxylate●Others
32.4
Promoting a modal shiftTo reduce the environmental impact associated with product
transport, Showa Denko has been promoting a modal shift from
truck transport to sea and rail transport, since the latter modes
generate less CO2 emissions. In 2011, we switched from truck
transport for shipments from Kanagawa Prefecture to Aichi Pre-
fecture to rail transport.
In fiscal 2011, the freight ton-km by rail and ship transport in
Japan was approximately 384 million ton-km which corre-
sponds to approximately two-thirds of our total freight ton-km in
Japan.
In addition to the modal shift, we are improving transportation
efficiency by increasing the size of delivery lots, improving the
loading ratio of trucks and containers, and reducing transport
distances. In cooperation with transport companies, we are
striving to reduce energy consumption by adopting low-
emission vehicles,digital tachographs, and eco-friendly tires, in
addition to encouraging eco-friendly driving.
Promoting energy saving in officeWith the status of power supply shortage triggered by the
earthquake disaster as a turning point, all-out energy saving
measures is under way in our offices as well. At the Head Office
building, we reduced the annual electric power usage by 18.5%
in 2011 compared with 2010 by implementing the measures as
described below.
We will continue our power-saving efforts as part of energy-
saving activities.
Power-saving measures at the Head OfficeFacilities-related:●Room air temperature is set at 28 degrees Celsius by the
air-conditioners, limiting hours of use.
●Lightings are thinned out as much as possible all-year round.
●Lighting apparatus is exchanged with LED lighting system step-by-
step.
●Hot water supply is suspended in the office kitchens and toilets.
● Lights are turned off in spaces where lighting is unnecessary, and
during lunch time.
●Energy-saving mode of personal computers and printers should be
used.
●Standby power requirement should be cut. (Unplug cables or shut
off the main switch.)
●Operation of some elevators are suspended.
●Use of coffee brewers and electric pots is prohibited.
●Use of copy machines should be limited to the minimum level
required.
●Put up a notice of the daily power use and implement other enlight-
enment initiatives
relating to work:●Office hours are recommended to be moved forward by one hour,
and work after 19:00 hours is prohibited, in principle.
●Period for “Cool Biz” campaign is extended. (From May to the end
of October)
PRTRAs a member of the Japan Chemical Industry Association
(JCIA), Showa Denko since 1996 has voluntarily undertaken
surveys of the volumes of chemical substances it has
discharged and transported. In 2010, the Company performed
a survey of 590 substances, including substances subjected
to the PRTR Law, submitting a report to the JCIA on 160 sub-
stances (of which 103 were subject to the PRTR law). Total
emissions of PRTR listed substances were approximately 372
tons, approximately 15 tons higher than the previous fiscal
year.This was due to a plant in which the volume of solvent for
cleaning process use was increased. We are now considering
alternative cleaning agent.
Showa Denko will continue to make focused efforts to
reduce discharge volumes by preparing reduction plans for
each site for PRTR-listed substances and for substances with
high annual discharge volumes. The Company is currently
seeking to ascertain and assess potential impact in areas
surrounding its sites and improve communication with local
communities and governments concerning risks as it works to
reduce discharge volumes.
PRTR-listed substances released and transferred(Showa Denko K.K. only)
Release of PRTR-listed substances (Showa Denko K.K. only)
Emissions of PRTR-listed substances at respective sites in 2012 (Showa Denko K.K. only)
Volume transferred1,227 t
Total volume released372 t
Into soil0 t
Into water55 t
Into air317 t
Volumereleased/transferred
(t)
950
100
200
300
400
500
600
700
96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11(FY)
Oyama Regional Office Shiojiri Plant
Total emissions3.1t
42.3% 41.2%27.8%
30.9%
100.0%
81.1%57.4%
42.6% 36.8%
63.2%
18.9%
70.6% 36.9%
26.0%
33.4%
35.9%
27.2%
13.3%
16.1%
23.8%
Total emissions1.0t
33.9%
40.6%
40
SHOWA DENKO CSR Report 2012
41
SHOWA DENKO CSR Report 2012
Reducing chemical substance discharge Environmental considerations: Atmosphere, water and soil
●Reducing chemical emissions
●Developing and implementing reduction plans for each worksite
Policy
Plans
Plans for 2012
●Emissions of toxic atmospheric pollutants: 28 t, down 12% from 2010; target achieved
Achievements in 2011
Policy
Plans
●Reducing chemical emissions
Plans for 2011
●Developing and implementing reduction plans for each worksite
Reducing emissions of toxic atmospheric pollutantsOn completing the JCIA Phase 2 Voluntary program for
reducing discharged volumes of 12 harmful atmospheric pollut-
ants, the Showa Denko Group is now working to achieve a new
target: a 10% year-on-year reduction in pollutants released in
relatively large volumes. In 2011, the total amount discharged of
nine substances handled by the Company was 28 tons, a
decrease of 4tons (12%) from the previous year.
The Group remains committed to achieving steady reduc-
tions in the discharge of toxic atmospheric pollutants through a
combination of various measures, including switching to substi-
tute materials and boosting recovery and recycling rates.(All graphs apply to Showa Denko alone.)
Total amounts released of harmful atmospheric pollutants
400
350
300
250
200
150
100
50
001 02 03 04 05 06 07 08 09 10 11
(FY)
( t )
Acrylonitrile
10
8
6
4
2
0
( t )
Kawasaki
Tatsuno
01 02 03 04 05 06 07 08 09 10 11(FY)
Acetaldehyde
( t )
Oita
Tokuyama
Trichloroethylene( t )
Kawasaki
01 02 03 04 05 06 07 08 09 10 11(FY)(FY)
01 02 03 04 05 06 07 08 09 10 11(FY)
1,3-Butadiene
( t )( t )
Kawasaki
30
25
20
15
10
5
0
Oita
01 02 03 04 05 06 07 08 09 10 11
01 02 03 04 05 06 07 08 09 10 11
(FY)
Formaldehyde( t )
Kawasaki
Isesaki
4
3
2
1
0
4
3
2
1
0
4
3
2
1
0
2
1
0
(FY)01 02 03 04 05 06 07 08 09 10 11
(FY)01 02 03 04 05 06 07 08 09 10 11
(FY)
Chloroform( t )
Tokuyama
Tetrachloroethylene( t )
Omachi KawasakiOyama
01 02 03 04 05 06 07 08 09 10 11(FY)
Benzene
( t )15
10
5
0
Kawasaki
Oita
OmachiTokuyama
Dichloromethane
Oyama
Higashinagahara
350
300
250
200
150
100
50
0
4
3
2
1
0
01 02 03 04 05 06 07 08 09 10 11
276
274
18
372
325
217
324
129
363
169
378
83
32
384
366
1
35
14
105
343
393
283
4
121
15
385
30
284
206
244
75
273
300
24
317
183
307
342
302
300
15
400
351
240
349
134
392
186
405
430
80
30
411
395
1
32
12
104
374
420
308
4
127
13
412
28
309
232
272
75
299
321
20
342
207
332
373
29
20
16
12
10
10
7
6
4
4
0
3
3
0
0
0
0
1
1
1
0
1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
127
190
317
0
0
0
0
0
0
0
0
0
0
3
0
0
2
2
1
1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
11
44
55
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
23
30
15
12
12
12
9
5
5
4
4
3
1
2
2
4
2
1
1
1
0
1
1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
150
207
357
5
−10
1
−1
−1
−2
−2
0
0
−1
−1
−1
2
0
0
−2
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
−13
28
15
0
7
0
42
0
35
4
5
0
85
9
4
5
0
1
0
11
0
60
1
19
1
4
7
3
2
2
20
2
16
11
11
9
3
2
2
2
2
1
386
835
1,221
0
6
0
47
0
56
4
5
0
113
7
0
0
0
1
0
9
0
94
1
9
0
6
10
3
1
0
8
1
0
0
0
1
3
1
0
1
0
1
385
1,022
1,407
29
20
16
12
10
10
7
6
4
4
3
3
3
2
2
1
1
1
1
1
0
1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
137
235
372
91-20-3
108-88-3
83-32-9
71-43-2
106-99-0
100-42-5
108-95-2
108-05-4
110-54-3
75-09-2
−
173584-44-6
1330-20-7
−
50-00-0
−
−
120-12-7
75-07-0
75-45-6
−
80-62-6
7440-02-0
−
67-66-3
75-05-8
−
107-18-6
−
68-12-2
−
−
95-53-4, 106-49-0
−
141-43-5
110-86-1
128-37-0
−
88-60-8
Naphthalene
Toluene
Acenaphthene
Benzene
1, 3-Butadiene
Styrene
Phenol
Vinyl acetate
Normal-hexane
Dichloromethane
Boron compound
JCIANo
PRTRNo. To Air
FY2010Total
release (t/y)
The amount ofincrease ordecrease forFY2010 (t/y)
FY2011 Totalamount oftransfer (t/y)
FY2010Amount oftransfer (t/y)To Water To soil
CAS No SubstancesTotal
FY2011 Release (t/y)
Total of the PRTR-listed substances
Total of the other substances (including JCIA PRTR-listed substances)
Total
Formaldehyde
Water-soluble salts of peroxodisulfuric acid
Zinc compounds (water-soluble)
Anthracene
Acetaldehyde
Chlorodifluoromethane
Hydrogen fluoride and its water-soluble salts
Methyl methacrylate
Nickel
Acrylic acid and its water-soluble salts
Chloroform
Acetonitrile
Manganese and its compounds
Allyl alcohol
Nickel compounds
N, N-Dimethylformamide
Copper salts (water-soluble, except
complex salts)
Cadmium and its compounds
Toluidine
Vanadium compounds
2-Aminoethanol
Pyridine
2,6-di-tert-butyl-4-cresol
Arsenic and its inorganic compounds
2-2-tert-butyl-5-methylphenol
Xylene
Linear alkylbenzene sulfonate and
its salt (limited to those whose alkyl
group carbon number ranges from 10
to 14)
Methyl(S)-7-chloro-2, 3, 4a, 5-
tetrahydro-2- [methoxycarbonyl
(4-trifluoromethoxyphenyl) carbamoyl]
indeno [1,2-e] [1,3,4] oxadiazine -
4a-carboxylate
Note: The numerical sum of each column or raw and the grand total may not agree due to rounding.
FY 2011 List of PRTR-listed substances released and transferred
Substances subject to the PRTR Law, other than dioxin: 103 substances (Substances with 1 t or less emissions or transfer volumes are excluded.) (Showa Denko K.K.only)
42
SHOWA DENKO CSR Report 2012
43
SHOWA DENKO CSR Report 2012
Biodiversity efforts
Environmental considerations: Atmosphere, water and soil
Reducing atmospheric impactThe Showa Denko Group is working to reduce emissions of
pollutants such as sulfur oxides (SOx), nitrogen oxides (NOx),
and soot through the following measures:
●Shift in fuel●Modifying combustion processes (e.g., using low-NOx burners)●Appropriate operation and management of desulphurization and
denitration systems
●Reductions in fuel consumption through exhaust heat recovery systems
●Strengthening monitoring systems
Amounts of SOx and NOx declined from 2010 levels
whereas soot increased. The Group will continue to seek to
reduce its environmental impact on the atmosphere.
Reducing water quality impactThe Showa Denko Group continues in efforts to reduce its
impact on water quality in areas such as chemical oxygen
demand (COD), total nitrogen , and total phosphorus through
the following measures:
● Improvements in manufacturing processes● Improvements in wastewater processing equipment and operation and control factors
●Promoting water reuse●Strengthening monitoring systems
COD and total nitrogen decreased from 2010 levels in con-
trast to total phosphorus that rose slightly. The Group will con-
tinue in efforts to reduce its impact on water quality.
Measures to prevent soil andgroundwater pollution
On occasions such as changes in the uses of plant sites or
soil removal, the Showa Denko Group undertakes surveys and
other measures in line with the Soil Contamination Countermea-
sures Law and local government regulations.
The Showa Denko Group has aggressively pursued various
Responsible Care efforts in its business activities, including
activities that reduce greenhouse gas emissions or address
other environmental considerations. In 2011, we have begun to
organize the use of ecosystem services to better understand
the impact on ecosystems in our business activities from a
broader perspective.
Based on the following perspectives, we are investigating the
relationship between biodiversity and the Group’s business sites
and supply chain for products and services.
Based on the results of these investigations, we will deter-
mine the items to be addressed in our biodiversity efforts and
the urgency and priority of them.
Use of living organisms or raw materials of biological originUse of hydroelectric power and biomass fuelUse of natural fresh water
Wastewater purification andair protection using ecosystem servicesDischarge of organic (biodegradable) waste out of worksitesProcesses using ecosystem servicesUse of rivers and canalsUse of ecosystem services to prevent natural disastersWelfare measures and facilities using natural environment
Use of mineral resources and fossil fuelUse of materials derived from plantation cropsGathering information on discharge into closed water systemssuch as lakes and swampsEffects of discharge on ecosystemsProducts and services intended to preserve ecosystemsProducts and services intended to reduce impact on ecosystemsEnvironmental loads imposed by transport activitiesGathering information on relationships with endangered species
Raw fuel:
Wastewater:
Exhaust gas:Product:
Transport:Ground:
Materials:Energy:Water:Wastewater,exhaust gas:Waste:Process:Transport:Ground:Others:
●Achieving zero emissions●Contributing to a recycling-based society
●Reducing landfill waste through efforts such as more effective use of sludge Target: Showa Denko: 1,900 t or less Group companies: 2,100 t or less●Promoting recycling
Policy
Plans
Plans for 2012
●Landfill waste: 2,144 t in the Showa Denko Group (down 447 t from 2010); Target achieved.●Plastic Chemical-recycling production: up 2% from 2010
Policy
Plans
●Achieving zero emissions●Contributing to a recycling-based society
Achievements in 2011Plans for 2011
●Reducing landfill waste through efforts such as
more effective use of sludge Target: Showa Denko: 2,200 t or less
Group companies: 2,500 t or less●Promoting recycling
Reducing waste and encouraging recycling
Reducing industrial waste and encour-aging recycling
To reduce the volume of industrial waste generated and
disposed of, the Showa Denko Group seeks to curb waste
generation, encourage reuse, and identify ways for effective use
of wastes.
●Reuse of waste acids and waste alkalis
●Use of waste oil and waste plastics as fuels (heat recovery)
●Effective use of inorganic sludge (e.g., in cement)
The final landfill waste volume for fiscal 2011 was 2,144 tons
(a year-on-year decrease of 447 ton, 17%), consisting of 1,932
tons (a decline of 458 tons) for Showa Denko, and 212 tons (an
increase of 11 tons) for the Group companies, which achieved
the Group’s target of 2,500 tons. While some sites recorded an
increase in the landfill waste volume due to special factors such
as removal and disposal resulting from withdrawal from busi-
ness, the majority of the Group companies (16 sites) attained
the zero-emission (Final landfill waste volume is 1% or less of
the waste generation) by the effective use of inorganic sludge
for production of cement (at the Kawasaki Plant and the Tatsuno
Plant). In Fiscal 2012, we have set the Group target at 2,100
tons to increase the number of worksites capable of achieving
the reduction in landfill waste volume and zero-emission.
In addition, Showa Denko is currently assessing contractors
for intermediate processing and final disposal to ensure appro-
priate processing and disposal of waste generated from us.
With respect to the discharge of bauxite residue into the sea,
the Company in fiscal 2011 maintained the volume of this
discharge at 11% below fiscal 2000 levels. The discharge into
the sea will be terminated by 2015.
PCB controlBased on its PCB control checklist, Showa Denko K.K. regu-
larly checks the status of stored polychlorinated biphenyl (PCB)
waste. This waste is appropriately stored in suitable facilities to
prevent leaks. Additionally, each worksite submits an annual
report on the status of stored PCB waste and related matters to
the prefectural governor, as required under the Law Concerning
Special Measures Against PCB Waste.
Taking full advantage of the waste processing facilities of
Japan Environmental Safety Corporation etc., we are continuing
systematic disposal of PCB waste.
*Data for 2007 and earlier years represent total values for January through December. Data for 2008
and later years represent total values for April through March of the next year. (January through
December for the Kawasaki Plant)
90
Changes in final landfill volume
0
5,000
10,000
15,000
20,000
(t)
99 00 01 02 03 04 05 06
■ ■Showa Denko K.K. Group companies
07 08 09 10 11(year)
Use of ecosystem services
Controlling impact
on ecosystems
Change in discharged amounts of substances with water quality impact(Showa Denko K.K. only)COD and
totalnitrogen
(t)
Totalphosphorus
(t)
COD Total nitrogen Total phosphorus
(year)
1,000
800
600
400
200
0 0
20
40
60
80
100
Change in discharged amounts of substances with atmospheric impact(Showa Denko K.K. only)(t) SOx NOx Soot and dust
(year)90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
44
SHOWA DENKO CSR Report 2012
45
SHOWA DENKO CSR Report 2012
Disaster Prevention TOPICS for 2011
●Realizing zero equipment incidents
●Thoroughly implementing Active Safety activities●Organizing function-specific personnel meetings and preparing the guidelines●Ensuring the implementation of HRM examinations●Promoting voluntary safety initiatives
Policy
Plans
Plan for 2012
●Accidents: Four leaks in the entire Showa Denko Group (in contrast to seven leaks in 2010).●Active Safety activities expanded to and implemented by affiliated companies and research facilities.● Function-specific personnel meetings (electric, instrumentation, machinery, process) held.● Four HRM examinations implemented.●Oita Complex: Certified high-pressure gas operation continued.●The Oyama Plant of Showa Aluminum Can Corp. was awarded the Fire and Disaster Management Agency Commissioner award.
●Realizing zero equipment incidents
Achievements in 2011Plans for 2011
●Thoroughly implementing Active Safety activities●Organizing and applying function-specific personnel meetings●Thoroughly implementing HRM(High Risk Material) examinations●Promoting voluntary safety initiatives
Policy
Plans
CSR Activity Report: Safety Efforts
“We can prevent labor accidents, equipment accidents and environmental problems by learning from past accidents, by sharing information throughout the Group, and by implementing proactive countermeasures.” Based on the approach articulated in this way, Showa Denko launched its “active safety” initiative in 2008. Under the policy of “zero labor accidents, zero equipment incidents, and zero environmental problems,” each worksite has implemented this initiative in its own way, generally focusing on risk assessment activities based on checklists. The efforts are beginning to yield results.
Safety Efforts
Oita Complex: A conveyance and water discharge drill with a large-capacity foam release system
Equipment safetyBased on the policy goal of completely eliminating equipment
incidents, the Showa Denko Group has been proceeding with
its Active Safety initiative since 2008 by analyzing past acci-
dents and other problems to prevent their recurrence. As a
result, the number of equipment incidents in 2011 decreased to
four compared with seven in the previous year. All these inci-
dents were discovered in their early stages and did not cause
any human damage or external effects.
Including these cases, past incidents are systematized with
the active safety checklists in the Active Safety initiative, and are
used in all business sites to prevent future accidents.
In 2011, with the aim of further deepening the “Active Safety”
initiative, we classified, analyzed, reorganized the corporate MP
information 1 according to technical fields (machinery, electric,
instrumentation, process), and started to standardize the inher-
ently safe design by technical field, and prepare guidelines at a
study meeting combining members in the Head Office and busi-
ness sites. We also revised the fall prevention regulation, which
was informed of to all the employees of the Group. Toward the
future, we will continue these activities and cultivate next gen-
eration key persons, and improve the skills of the workers.
Precautions against earthquakesIn 2010, the Showa Denko Group started the prediction of
the scale of the ground motion in the event of an earthquake
expected in the future, risk assessment of the earthquakes and
consideration of earthquake-resistant measures for equipment
and buildings. We completed the assessment of 29 worksites
including affiliated companies by the end of 2011. We will
implement the earthquake-resistant measures for equipment
and buildings by setting a priority order depending on the earth-
quake risks.
On the other hand, the Great East Japan Earthquake that
occurred in 2011 was a massive interrelated earthquake in
which several earthquakes took place at the same time, and the
damage forms were different from those in the Great Hanshin
Awaji Earthquake. Based on this experience, we have added
countermeasures against tsunami and reinforced the measures
relating to liquefaction.
In 2012, we will continue to implement the risk assessment
of earthquakes as well as earthquake-resistant measures for
quick actions, paying close attention to the movements of the
government and municipal governments concerning the Nankai
Trough massive earthquake. In addition, we plan to consider
about how to secure our head office functions after a massive
earthquake which is anticipated to occur in the Tokyo Metropoli-
tan area.
On October 24, 2011, a conveyance and water discharge drill
with a large-capacity foam release system was conducted at the
Oita Complex. This is a drill of a system that is mandatorily
installed after the lesson learned from the full-scale fire at a float-
ing roof oil tank following the Tokachi Offshore Earthquake in
September 2003. In the Oita region, this system is installed jointly
in Shunan City, Yamaguchi Prefecture by the West Chugoku and
North Kyushu Wide Area Disaster Prevention Council.
In the morning, an installation drill was conducted for the
equipment transported by five large trucks. In the afternoon,
water was discharged in the direction of the sea, which showed
that the system had the predetermined capacity. Cooperation by
many people was important in the drill, and we finished the drill
safely with no accident or injury by checking each procedure very
carefully.
We will enhance the disaster prevention measures for the
Complex by continuing this kind of practical drills toward the
future.
Installation of a water pump Discharging water
by a 40,000-liter per minutewater supply system
Conveyance and extension of water hose
1 Maintenance Prevention (MP) information:
The Showa Denko Group has accumulated a database of accidents, troubles, significant
near-misses and countermeasures in and out of the Group, and now shares information
on approximately 4,800 cases among all employees.
46
SHOWA DENKO CSR Report 2012
47
SHOWA DENKO CSR Report 2012
Occupational health and safety
3
2
1
* Scope of Group companies (As of December 2011):Underlined companies are those added to the scope of industrial accident statistics in Fiscal 2011.): Tsurusaki Kyodo Doryoku K.K., Tokyo Liquefied Oxygen Co., Ltd., Showa Titanium Co., Ltd., Shinshu
Showa Co. Ltd., Showa Denko Packaging Co., Ltd. (Hikone and Isehara), Showa Aluminum Can Corp., Showa Denko Sakai Aluminum Co., Ltd., Showa Denko Electronics K.K., Showa Denko Kenzai
K.K., Union Showa K.K., Niigata Showa K.K., Showa Aluminum Can Recycling Center, HIPACK CO.,LTD., Showa Denko Gas Products Co., Ltd., Clean-S Showa K.K., Nippon Polytech Corp., Hamamatsu
Air Supply Co.,Ltd., STT Co.,Ltd., KANAE CHEMICALS Co., Ltd., Showa Denko Kenso K.K., Tohoku Metal Chemical Co., Ltd., Nagoya Kenmazai Kogyo K.K. (Nagoya and Shiojiri), Tokyo Aluminum Wire
Corporation, Showa Denko HD Yamagata K.K., and Fuyo Perlite Co., Ltd.
TOPICS for 2011
●Zero lost-time and non-lost-time injuries at each site●Establishing the chemical industry’s strongest safety management system
●Enhancing safety strength of worksites and personnel●Addressing equipment and process deficiencies● Improving safety management levels●Following up on special safety activities and strengthening measures to prevent similar incidents
Policy
Plans
Plans for 2012Achievements in 2011Plans for 2011
●Zero lost-time and non-lost-time injuries at each site●Establishing the chemical industry’s strongest safety management system
●Enhancing safety strength of worksites and
personnel ●Addressing equipment and process deficiencies● Improving safety management levels● Following up on special safety activities and strengthening measures to prevent similar incidents
●Expanded the scope of work-related accident statistics (12 worksites of affiliated companies were additionally included.)●Two incidents resulting in lost-time injuries (two in
2010) and zero non-lost-time injury (one in 2010) for the entire Showa Denko Group
●Rate of incidents resulting in lost-time injuries in Showa Denko Group: 0.13 (0.14 in 2010)
●Oyama Plant of Showa Aluminum Can Corp. won Accident-free Record Certification (Third-class) from the Ministry of Health, Labor and Welfare.
●Showa Titanium Co., Ltd. and Ohmuta Plant of Showa Aluminum Can Corp. recognized by third-party
safety awards.●Showa Titanium Co., Ltd. certified under the Occupational Safety and Health Management System (total of 12 sites now certified)
Policy
Plans
All Industries
Chemical Industries
Showa Denko K.K.
Showa Denko Group company*
1 Risk assessment:A series of processes intended to identify the risks and dangers inherent in a workplace;
to estimate the extent of damage and likelihood of occurrence based on such
identification; and to prioritize countermeasures and determine risk-reduction measures.
2 Occupational health and safety management systems:They are intended to allow organizations to reduce the likelihood of problems by
identifying, establishing, and implementing countermeasures against risks related to the
occupational health and safety of employees.
3 Frequency rate of lost-time injuries:Number of deaths and injuries occurring per one million working hours, as calculated by
the following formula:
Frequency rate of lost-time injuries = (Number of deaths and injuries) / (total working
hours) x 1,000,000
Showa Titanium Co., Ltd.Received the 2011 JCIA Grand Prix Safety Award
Occupational health and safetyTo eliminate workplace accidents, the Showa Denko Group
has been promoting active safety activities since 2008. These
activities are intended to prevent work-related accidents by
identifying and correcting risk sources based on risk assess-
ments . Specifically, in addition to using the active safety
checklists we prepared based on past accidents, our primary
sites have begun introducing the occupational health and safety
management systems that focus on risk assessments. As
of June 2012, 13 worksites in Japan and four worksites abroad
have acquired the relevant certification.
In 2011, the scope of work-related accident statistics was
expanded to include additional 12 worksites of affiliated compa-
AsbestosConditions related to asbestos were as follows.
Use of asbestosThe Group neither manufactures nor sells any products
incorporating asbestos.
The Group uses sealing materials containing asbestos for
certain production facilities, including those for chemicals. We
are currently replacing these materials with materials that do not
contain asbestos.
Health damageFor employees who have directly or indirectly handled
asbestos, we perform periodic health checkups as required by
relevant laws. No incidents of health damage have been
reported to date.
We also provide asbestos health checkups for former
employees of the Showa Denko Group, in addition to respond-
ing to various inquiries. In 2010, one cases (Latest edition
announced by Ministry of Health, Labour and Welfare) were
recognized as occupational accidents. We have received no
reports of injury or damage to health from families of employ-
ees, former employees, or residents of local communities.
In December 2011, Showa Titanium Co., Ltd. received the JCIA Grand Prix Safety Award. This award
recognizes exemplary worksites of business entities that implement excellent activities as part of voluntary
measures for safety and occupational health in the
chemical industry, and was selected upon on-site
investigations and deliberations by the safety
award committee consisting of experts.
Showa Titanium has continued to extend its
accident-free record through scrupulous safety
efforts such as risk assessments using common
databases, and the vitalization of “finger-pointing
checks” and “Attention! Thank you! campaign”
President (Right) and Manager of the Environment and Safety Dept.of Showa Titanium Co., Ltd. holding the award certificate.
70
10.0
9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.07271 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 9392 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11
nies to enhance the safety activities of the Showa Denko
Group. As a result, the rate of incidents resulting in lost-time
injuries in the Group reduced in 2011. During the period from
January to June 2012, one incident resulting in lost-time injury
and two non-lost-time injuries occurred. We will return to the
starting point of the Active Safety activities to disseminate them
in all worksites.
(Year)
Disaster prevention
Health and occupational safety
Fiscal 2011 THP Council’s Promotion Award
Japan Industrial Safety & Health Association Green Cross Award
Japan Industrial Safety & Health Association Green Cross Award
35th JCIA/JRCC Grand Prix Safety Award
The 36th JCIA Grand Prix Safety Award
2011 Fire and Disaster Management Agency Commissioner award (for superior facility in the handling of hazardous substances)
Fiscal 2012 Japan Association for Safety of Hazardous Materials President award (for superior facility in the handling of hazardous substances).
Fiscal 2010 Minister of Health, Labour, and Welfare's Award for business-facilitymanagers who place priority on safety
Special Award for Excellence, 2010 Japan Aluminum Association OccupationalSafety Awards
Accident-free record certificate from the Ministry of Health, Labour and Welfare (Third-class)
Fiscal 2011 Minister of Health, Labour, and Welfare's Award for business-facilitymanagers who place priority on safety
Award for Special Excellence, 2011 Japan Aluminum Association OccupationalSafety Awards
Award for Special Excellence, 2011 Japan Aluminum Association OccupationalSafety Awards
Oyama Plant of Showa Aluminum Can Corp.
Showa Titanium Co., Ltd.
Ohmuta Plant of Showa Aluminum Can Corp.
Oyama Plant of Showa Aluminum Can Corp.
Oyama Plant
Corporate R&D Center (Toke), Mr. Eiji Yoshimoto
Showa Titanium Co., Ltd., Environment and Safety Team, Mr. Yutaka Kuroda
Showa Titanium Co., Ltd.
Ohmuta Plant of Showa Aluminum Can Corp.
Oyama Plant
Yokohama Plant
Extrusions/Specialty Products Division, Production & Technology ControlDept., Extrusion Section, Mr. Hidemichi Keino
Extrusions/Specialty Products Division, Production & Technology ControlDept., Extrusion Section, Mr. Koichi Sashikubi
June 2011
June 2012
November 2011
May 2011
August 2011
October 2011
October 2011
October 2011
December 2011
January 2012
May 2012
May 2012
May 2012
Name of award Recipient site and individual Year received
2011-2012 List of RC-related awards received by the Showa Denko Group companies
Changes in frequency rate of lost-time injuries
48
SHOWA DENKO CSR Report 2012
49
SHOWA DENKO CSR Report 2012
Chemical substances safety efforts
TOPICS for 2011
●Appropriate response to revisions of domestic and overseas laws
●Comprehensive implementation of compliance, education, and management structures●Promoting and disclosing information on GPS/JIPS risk assessments●Effective use of comprehensive chemicals management database
Policy
Plans
Plans for 2012●Zero violations of chemical substances legislation by Showa Denko Group●Comprehensive chemicals management database established●Chemicals Management Officer provided information on relevant legislation and follow-up training●Registration prepared concerning substances under the REACH regulations 1 before deadline for substances that must be registered by 2013●CLP-compliant 2 labels and SDS 3 amended
●Appropriate response to revisions of domestic and overseas laws
Achievements in 2011Plans for 2011
●Comprehensive implementation of compliance, education, and management structures●Collecting, assessing, and providing safety information●Establishing comprehensive chemicals management database
Policy
Plans
Intended effects
1
2
3
4
Customer
Public administration
ConsumerCompany’s own plant
Publicinspection
Introducing a comprehensive chemicalsmanagement system
International chemicals management activities
As it works to achieve the goal agreed to in the World
Summit on Sustainable Development (WSSD) “to minimize the
negative effects of chemical substances on people and the
environment by 2020”. The Showa Denko Group is seeking to
implement integrated management of chemical substances
under the International Council of Chemical Associations (ICCA).
The Group is also taking part in Japan Initiative of Product
Stewardship, the new voluntary chemical management initiative
by JCIA to enhance risk assessment and risk management with
consideration for supply chain. Through this initiative, the Group
is strengthening product stewardship in various ways, including
collection of information and safety assessment at each stage of
manufacture, sales, and use/consumption.
We plan to conduct risk assessments of chemicals accord-
ing to priority, the Safety Summary Sheet which will be posted
on the portal site of ICCA’s GPS.
Foreign laws and regulationsWe make sure to respond properly by paying close attention
to new movements in legislations and regulations in foreign
countries, including the REACH and CLP regulations of the
European Union, the amendments to laws of the Asian coun-
tries (South Korea, Taiwan, China, Malaysia and others) and the
under considerations on the TSCA 4 of the Unites States.
While sharing information with the members of various busi-
ness divisions, Group companies as well as staff sections at the
head office and overseas companies, and participating in vari-
ous activities as a member of the international laws working
group in the JCIA, we will ensure keen and proper responses to
new movements in foreign countries.
To help achieve goal of the 2020 World Summit on Sustainable Develop-
ment (WSSD)—To use and produce chemicals in ways that minimize
significant adverse effects on human health and the environment— the
Showa Denko Group has introduced a comprehensive chemicals manage-
ment system to provide the basic infrastructure for managing chemicals. The
newly introduced comprehensive chemicals management system will
integrate information management for all chemicals we use in and outside
Japan and allow information sharing Groupwide. The system will also ensure
response in compliance with EU/REACH regulations, CLP regulations, and
various notifications required under the amended Chemical Substances
Control Law and PRTR Law (Pollutant Release and Transfer Register Law).
Sharing of information on chemicals throughout the Showa Denko GroupIntegrated management of information, including information on production, sales, the supply chain (SC) and use.
Safeguarding against human error related to the enforcement or revision of related laws and regulationsAutomatic updates of information on laws and regulations concerning products, linked to the databases of Japanese and foreign laws and regulations
Streamlined procedures for chemicals managementAutomatic updating and output of SDS information Improved data precision and transparency for each business site for use in compiling various statistical reports
Establishment and automation of the systems relating to chemicals risk assessment such as GPS and JIPS.
GHS-compatible SDSThe Group provides its customers and consumers with
information on risks or hazards related to all of its products for
sale in Japan using the JIS-based labels and SDS. Furthermore,
we are in the process of reviewing all those labels and SDS to
meet the new JIS 7253 standard.
For overseas products as well, we are making progress in
including GHS-compatible information on labels and SDS in
accordance with the relevant regulations in each country.
Furthermore, the Group prepares yellow cards 5 as provisions
against accidents involving chemical substances during road
transport. We enforce tanker truck drivers to carry the cards at
all times when transporting hazardous materials.
●Link to existing systems● Building the production and import
volume notification system in compliance with the amended Chemical Substances Control Law
●Automatic data aggregation of the chemical substances designated under the PRTR Law
●Consideration of introducing automatic system to prepare the GPS/JIPS Safety Summary Sheets
●Multilingual support for SDS and labeling●Automatic SDS output and labeling system
●Risk assessments of chemicals, linked to existing evaluation tools
(Achievements in 2011) (2012) (2013)1st Step 2nd Step 3rd Step
Risk and harmfulnessinformation, physical
property information, etc.
Chemicals management system(Comprehensive EH&S management system)
CSR report
Productionsystem
Purchase andsales system
Internal WEB API platformSupplier
Japanese lawsand regulations
database
Foreign lawsand regulations
database
Chemicalsmanagement
database
Productand materialinformation
Purchaseand sales
information
Riskassessment
tool
CSA/CSRsystem
PRTRemissions report
Emission dataunder PRTR
SDS
Comprehensive chemicals management system
5 Yellow card :This refers to an emergency contact card briefly describing appropriate response
by transportation company personnel, police, and fire-fighters in the event of
accidents involving hazardous or toxic substances.
4 TSCA:Toxic Substance Control Act
6 CSA :Chemical Safety Assessment
6CSASDS (including
non-Japanese versions)
JIPS Safety Summary Sheet3 SDS : (Safety Data Sheet)
This is a document provided by the supplier to the user (customer) of a chemical
substance, covering such matters as its name, toxicity, and physical/chemical
properties; cautions concerning its handling and storage; and emergency
measures.
1 REACH Regulation :EU Regulation on Registration, Evaluation, Authorization, and Restriction of
Chemicals
2 CLP Regulation :EU Regulation on Classification, Labeling, and Packaging
Notification of quantityto public administration
(under CSC and PRTR laws)
Disclosurein the ICCA GPS
portal site
50
SHOWA DENKO CSR Report 2012
51
SHOWA DENKO CSR Report 2012
Third-party Verification/Assurance
We received the third-party verification/assurance about the contents of this CSR Report 2011 from SGS JAPAN INC.Adopting its opinions and suggestions into our plans for the next year, we will continu-ously strive to improve our CSR activities.
ASSURANCE STATEMENTThird-party Verification/AssuranceSGS Japan’s Report on Sustainability activities in the Showa Denko CSR Report 2012
NATURE AND SCOPE OF THE ASSURANCE/VERIFICATIONSGS Japan was commissioned by Showa Denko K.K. to conduct an independent assurance of the CSR Report 2012. The scope of the assurance, based on the SGS Sustainability Report Assurance methodology, included the text, and data in accompanying tables, contained in this report. Financial data was not included in this assurance process.
The information in the CSR Report 2012 of Showa Denko K.K. and its presentation are the responsibility of the govern-ing body and the management of Showa Denko K.K. SGS Japan has not been involved in the preparation of any of the material included in the CSR report 2012.
Our responsibility is to express an opinion on the text, data, graphs and statements within the scope of verification set out below with the intention to inform all Showa Denko K.K’s stakeholders.
This report has been assured at a moderate level of scrutiny using our protocols for: evaluation of content veracity
The assurance comprised a combination of pre-assurance research, interviews with relevant employees (Showa Denko K.K. head office and Sakai Plant); documentation and record review.
STATEMENT OF INDEPENDENCE AND COMPETENCEThe SGS Group of companies is the world leader in inspection, testing and verification, operating in more than 140 countries and providing services including management systems and service certification; quality, environmental, social and ethical auditing and training; environmental, social and sustainability report assurance. SGS Japan affirms our independence from Showa Denko K.K. being free from bias and conflicts of interest with the organisation, its subsidiaries and stakeholders.
The assurance team was assembled based on their knowledge, experience of the industry and qualifications for this assignment, and comprised auditors who are registered with Environmental, Quality, Occupational Health and Safety and Social accountability Management system Lead Auditors, and Greenhouse Gas Lead Verifiers.
VERIFICATION/ ASSURANCE OPINIONOn the basis of the methodology described and the verification work performed, we are satisfied that the information and data contained within Showa Denko CSR Report 2012 verified is accurate, reliable and provides a fair and balanced representation of the organisation’s sustainability activities during the reporting period.The assurance team is of the opinion that the Report can be used by the Reporting Organization’s Stakeholders.We believe that the organization has chosen an appropriate level of assurance for this stage in their reporting.
The audit team expresses the opinion for the approach in 2011 and 2011 fiscal year based on the information obtained by the above mentioned assurance procedure.
NOTEWORTHY EFFORTS AND FINDINGS ●Showa Denko K.K. revised the existing corporate code of conduct and published "Our Code of Conduct and Its Practical Guide" in 2011. Referencing ISO26000, this revision covered social responsibility core subjects in detail. The revision work, which was promoted by the working group primarily consisting of younger employees selected on a company-wide basis, has appropriately reflected opinions of people in the field. Therefore, the contents were specific and feasible. It is noteworthy that a code of conduct on the future of the organization has been developed through collaboration between employees and management. This code of conduct has been communicated through workshop-style training sessions and interviews regarding the code of conduct of people in the field. It is also worthy of note that the company has tried to cultivate employees' understanding that individual business operations are an integral part of CSR activities.
●It is remarkable that risk management continues to be implemented with special attention paid to details. Risk management at the company has run on the successive PDCA cycle, in which each risk related to organizational operations was clarified and weighted, countermeasures against the risks were developed and executed, and accom-plishments were reviewed. The company has managed potential risks by reducing it to an acceptable level.
FUTURE CHALLENGES AND EXPECTATIONS ●In addition to activities in Japan, the Showa Denko CSR Report 2012 provides information about efforts made by its overseas group companies to implement their social responsibilities. On the other hand, publicized performance data is limited only to that within Japan. Since Showa Denko K.K. is a global company where the ratio of its overseas groups' employee counts and sales is large, performance data from overseas companies is very important. In future, we expect that the company will disclose information regarding CSR activities of the entire group both in the CSR and other reports, by overcoming the difference in coefficients and regulations by country or region, making it public along with performance data of overseas group companies, or expanding the site report, which is currently issued for each business establishment inside Japan to overseas companies.
●Data on trends in social and environmental performance have been tabulated and reported. The above clearly shows the changes over the years, and continued disclosure is expected. However, the same descriptions that were used last year are used in the part of the report on performance-related activities. Besides the report, we have identified in the third-party assurance process that Showa Denko carries out activities worthy of disclosure, including the addition of measures against earthquake risk. Reporting on continuing activities is, of course, necessary, however, we expect in future that the company will evaluate the range of reported subjects on an annual basis and disclose a report that
clearly indicates the improvements and changes conducted as part of CSR management.
Signed:
For and on behalf of SGS Japan Inc.Masahiro Soga, Managing Director 13 July, 2012
52
SHOWA DENKO CSR Report 2012
53
SHOWA DENKO CSR Report 2012
CSR Report 2012 Response to Third-party Verification/Assurance
First published in 1997 as “Responsible Care Report,” the
present form of CSR Report of the Showa Denko Group was
released in 2005 after the overall layouts were revised and the
contents improved with the aim of describing a wide range of
corporate activities except for financial information.
The Showa Denko Group, as chemical companies, uses a
large quantity of natural resources as material, consuming a
huge amount of energy in the process of product manufacturing.
Therefore, the impact of our business activities on the environ-
ment is definitely significant. We regard the minimization of the
energy consumption and the resulting emissions as our
important social responsibility in the meaning of contribution to
sustainable society. To that end, this report devotes much space
to the accounts on our Responsible Care activities.
We also explained about our corporate governance system for
legal compliance as the basis of fulfillment of our corporate social
responsibilities as well as the establishment of “Our Code of Conduct
and Its Practical Guide.” As the Verification/Assurance report has
stated that this “Our Code of Conduct and Its Practical Guide” is
a “Noteworthy efforts,” we will use it not only from the standpoint
of corporate ethics but a regulation concerning the entire CSR.
Furthermore, this report contains how we implement the risk
management and the relationships with our stakeholders
including employees and the residents in local communities.
As in last year, we commissioned SGS Japan Inc. to conduct
the third-party verification to prepare the verification report. They
confirmed in detail the basis for the calculation, accuracy and
credibility of the figures herein, and provided us with valuable
opinions on the relevant descriptions from the viewpoint of a
third-party.
In this year, RIO+20 (United Nations Conference on Sustain-
able Development) was held, focusing again on the compatibility
between the maintenance of the global environment and the
promotion of development.
The Showa Denko Group will promote further the ongoing
medium-term consolidated business plan PEGASUS toward the
realization of "a chemical company with a distinctive presence in
the global market" by executing business and providing products
friendly to the global environment.
We welcome your candid comments and opinions on this
Report.
July 2012Yasumichi Murata
Director and Managing Corporate OfficerChief Risk Management Officer (CRO)
Showa Denko K.K.
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SHOWA DENKO CSR Report 2012