About the Front Covers A childlike curiosity is fundamental to realizing Kaneka’s long-term vision of building a more impressive and productive CSR Communication Book 2014 future. The three colored balls indicate that we are always there for the young, and graphically complement the special corporate social responsibility features in this report.
? Why CSR? corporate social responsibility !
Osaka Head Office 2-3-18, Nakanoshima, Kita-ku, Osaka 530-8288, Japan Tel: +81-6-6226-5050 Fax: +81-6-6226-5037 This printed matter is using FSC® certified paper includes sources from responsibly managed forests. Tokyo Head Office The environment-friendly vegetable oil ink is used for printing. 1-12-32, Akasaka, Minato-ku, Tokyo 107-6025, Japan Tel: +81-3-5574-8000 Fax: +81-3-5574-8121 Commitment of Top Management
Overcoming Existing Boundaries to Build Kaneka's Reputation Reputation throughthrough the Trust for People and Technology We will Continue Seeking to Make Make WishesWishes ComeCome TrueTrue
through Science “Go beyond the border !”
We are determined to pursue R&D • Increase the scale of our own and other 2013. Although none of the accidents that embraces the opportunities resulting companies, divisions, and organization were grave, we viewed them as a bad from such changes. through mergers and acquisitions, alli- omen. Management is greatly concerned ances, and other initiatives and determined to do whatever it takes to Launching a New Medium-term • Broaden markets by operating globally prevent further mishaps. Plan • Transform and accelerate R&D to pur- We know that there are no shortcuts sue sustainable growth and that we must remain true to our basic On April 1, 2014 we embarked on a safety principles. We will reinvigorate the three-year management plan that under- We will step up expansion beyond exist- risk awareness of employees involved in pins the Declaration of Kaneka United, ing frameworks by collaborating in a manufacturing and reconfirm our equip- which we deployed in 2009 as part of our range of diverse fields. ment safety measures. long-term management vision for 2020. By succeeding, we will build a To date, we have undertaken various trusted reputation among all stakehold- Kaneka Group will continue striving to efforts in the spirit of change and growth ers for bringing people and technology overcome boundaries in keeping with its and have evolved as an industry pioneer. together and optimize the value of our “Go beyond the border slogan,” leverag- Environmental Awareness is a veloped nations to a degree never be- work. Then there are the technological Under the new plan, we seek to acceler- commitment to leveraging science to ing diverse tools to improve communica- Key Management Priority fore experienced in human history. We integrations that are driving advances in ate our evolution and institute bolder make wishes come true. tion with stakeholders. As always, we therefore need to shift our focus from automotive informatics and smart houses. reforms. We will overcome existing appreciate your candid feedback on our I was appointed president on April 1, petrochemicals to the pursuit of social Such swift and dramatic techno- boundaries to capitalize on exciting new Safety above All activities. 2014 to lead the Kaneka Group. The sustainability. The aging of society has logical changes are paradigm shifts. An opportunities, drawing on the following world is changing rapidly, making it even raised many issues relating to medicine entity like Kaneka that seeks to develop five key drivers for growth. Safety is the foundation of manufactur- more important for management to iden- and nursing care. Other developments in- innovative technologies that resolve the ing and competitiveness. In the past few tify and tackle such transformations. clude the extraction and use of shale gas challenges of social developments must • Exceed customer expectations by fash- years, we have reiterated that safety is our From a global perspective, as the and oil within the United States, which refine its development capabilities so it ioning unique, market-leading products top priority. However, despite our goal world population continues to increase, has replaced its traditional oil-dependent can continue creating products that are • Expand our business to go beyond inter- of eliminating all accidents at Kaneka, Mamoru Kadokura President we are faced by aging societies in de- industrial structure with a new frame- high-tech and valuable. mediate materials manufacturing the number actually increased in fiscal Kaneka Corporation
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kaneka CSR 2014.indd 2 2014/09/08 17:25 kaneka CSR 2014.indd 3 2014/09/08 19:02 Kaneka Group CSR Communication Book 2014 Why do you need to CONTENTS • Commitment of Top Management 2 The Kaneka Group’s Corporate Philosophy and engage in CSR? CSR Positioning 6 Kaneka Business Operations 8 To operate globally, we have to • Special Features look beyond our own interests I Benefiting Customers Why do you publish the CSR Report? and consider the overall needs Providing Thermal Solutions that Enhance the of society. Compactness and Performance of Mobile Devices 10 What can we gain by reading it? II Safeguarding the Environment Protecting the Environment by Creating Advanced Manufacturing Sites 14 III Fulfilling Our Social Responsibilities Contributing to Malaysia’s growth by cultivating our manufacturing prowess and human resources 18 Stakeholder Highlights Corporate Social Responsibility Safeguarding the Environment 22 Benefiting Customers 24 Caring for Our Employees 26 Working with Business Partners 27 Many stakeholders use CSR reports Fulfilling Our Social Responsibilities 28 Why CSR? to reconfirm corporate value. This is Initiatives Related to the Great East Japan Earthquake 31 For the Kaneka Group to become a truly CSR-driven entity, all employees must ask themselves what they because they can measure the Group Company Initiatives 32 can do for society, and act accordingly based on the knowledge that both the Company and its employees business strengths, benefits, and Kaneka’s CSR Activity Performances and are members of society. Evaluations 33 Five years have passed since the Kaneka Group renamed the Responsible Care Report the CSR Report. problem-solving initiatives describe Third-Party Opinion 34 Editorial Afterword (Response to Third-Party In 2013, we renamed the digest version of the CSR Report the Communication Book and stepped up in the reports. Opinion) 35 dialogue with our stakeholders. Stakeholders responded to questions about what they expect from Kaneka Group and how well we are doing in that regard. In fiscal 2013, we continued groupwide initiatives to meet stakeholder expectations. This report seeks to enhance stakeholder engagement and present the Group’s CSR activities through its core businesses. We look forward to your feedback. Through its CSR activities, the Kaneka Group will continue generating new value for society by communicating closely with employees. CSR goes beyond social contributions. The satisfaction of our customers and From the next page, we showcase the other stakeholders resulting from our Kaneka Group’s CSR in the special business drives sustainable corporate features and highlights sections, as well Why is CSR necessary in as the positioning of CSR in the Kaneka growth. Group and its businesses. addition to donations, volunteer work, and other social contribution activities? Why do employees Organizational efforts alone are not enough to improve the corporate brand, because also need to engage stakeholders judge the actions of individual in CSR? employees. Employees must always keep ? !this in mind.
See the PDF version of this report for more details. Kaneka CSR Search
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kaneka CSR 2014.indd 4 2014/09/08 17:25 kaneka CSR 2014.indd 5 2014/09/08 17:25 The Kaneka Group’s Approach to CSR The Kaneka Group’s Corporate Philosophy and CSR Positioning In keeping with the Declaration of Kaneka United, the Kaneka Group’s Basic CSR Policy forms the foundation of employee action to realize our Corporate Philosophy. Based on this policy, the key stakeholders in the Group’s CSR activities are employees, society, customers, the environment, shareholders and investors, and vendors. We endeavor to improve enterprise value to enhance stakeholder satisfaction through business activities.
■ Management Philosophy Structure “Declaration of Kaneka United”
With people and technology growing together into creative fusion, we will break fresh ground for the future ① and tie in to explore New Values. Expresses our raison d’être and our social mission Corporate We are also committed to challenge the environmental issues of our planet and contribute to upgrade the quality of life. Philosophy Toward an Even More Impressive and Productive Future Hold in your hands the future you have always dreamed of. We are a highly perceptive and collaborative value-creating group or, as we like to say, a “Dreamology Company. (see note)” ② Note: "Dreamology" is an expression coined from 'dream' and 'logy' (science). Describes our key values Our "Dreamology Company" is a "highly perceptive and collaborative value-creating group." Corporate Ideals Basic CSR Policy
The Kaneka Group will fulfill our corporate social responsibility through the materialization of our corporate philosophy with the earnest and forward-looking efforts of each employee. 1. We will strive to fully understand the cultural backgrounds, manners and customs of the countries and regions where we do business as a means of actively contributing to local societies and communities. ③ 2. We will abide by all relevant laws and regulations and, in undertaking our business activities, conduct ourselves in a fair manner based on free competition. Provides an action agenda for each employee for 3. We will place high priority on communicating with all our stockholders and stakeholders, and will disclose all pertinent information. materialization of our Corporate Philosophy Basic CSR Policy 4. We will respect the personalities and individuality of all our employees to support and encourage the development and utilization of their abilities. 5. We will uphold safety as the top-priority concern of management as we dedicate our best efforts to securing a sound and safe workplace environment, offering safe products, and working to protect the global environment.
Kaneka Group’s CSR Activities Group CSR activities aim to increase stakeholder satisfaction through business activities, thereby boosting enterprise value.
■ Kaneka Group’s Stakeholders Employees Our employees include the people who work for the Kaneka Group, as well as their families. Employees We offer employees appropriate treatment, remuneration, self-fulfillment, and safe working environments.
Customers Society Our customers are the people who purchase Kaneka Group products. Customers Society Including citizens and consumers. We provide them with quality products and services, ensure product safety, and We can increase enterprise value by fulfilling our social responsibilities. disclose information. We consider such factors as plant operational safety from the perspectives of social contributions, welfare, and Kaneka community engagement. Group Shareholders and Investors The Environment They recognize the value of our corporate brand and own our shares. Shareholders The By this we mean the global environment. We offer appropriate returns and disclose timely information so we can increase and Environment We fulfill our social responsibilities by considering the environment in our business activities, including raw overall trust in the Group. Investors materials procurement, manufacturing, and transportation.
Vendors Vendors Raw materials suppliers and contractors. We build mutually beneficial relationships with vendors, ensuring that transactions are fair and that we offer equal opportunities to do business.
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Weather-resistant methyl Toughness-enhancing master batch for methacrylate film improves Extruded polystyrene foam epoxy resin contributes to more robust, long-term durability of exterior board for housing insulation Leveraging Our Science to lighter automobiles and airplane materials Contribute to the World— Creating a Sustainable Future through Our Environment and Energy Operations We produce innovative materials that reduce environmental impact by The programmable closed mitigating society’s carbon footprint while creating products and As a comprehensive chemicals producer, the Kaneka Group circuit cell culture system is Bonded magnets for used in the research of regenerative markets that can help resolve environmental problems around the world laser printers and copiers manufactures chemicals, functional plastics, plastic foam medicine and cell therapies products, food products, medical supplies and devices, Form meets function: Roof-integrated photovoltaic modules electronic materials, photovoltaic modules, and synthetic fibers. Our technologies and products enrich people’s lives the world over, contributing to a sustainable future. Kaneka will continue leveraging its science to make wishes come true. Health Care Information and We create materials and products that Communications ■ Important Strategic Domains contribute to health, medical treatment, We provide high-performance materials We face numerous global social challenges. and nursing care Reduced form coenzyme Q10 (Ubiquinol) that contributes to that underpin the information society These include reducing environmental impact, addressing food a healthy lifestyle shortages, and maintaining health care. The Kaneka Group will continue to fulfill its responsibilities as a
comprehensive chemicals manufacturer with worldwide operations by A blood purification system Ultra-heat-resistant polyimide film used Optical transparent film concentrating its resources on the strategic domains of the that selectively removes pathogenic for heat-resistant insulation for liquid crystal display Environment and Energy, Information and Communications, Health agents from blood in mobile devices substrates Care, and Food Production Support.
100%-plant derived biopolymer naturally ■ Corporate Profile degrades into carbon dioxide gas and water Name Kaneka Corporation Food Production Support Heat-resistant and Head Office Osaka Head Office Catheters for intravascular We aim to resolve food issues by providing materials light-resistant transparent resin for advanced optical 2-3-18, Nakanoshima, Kita-ku, Osaka 530-8288, treatment that support livestock farming and aquaculture Japan devices Tel: +81-6-6226-5050 Fax: +81-6-6226-5037 Tokyo Head Office 1-12-32, Akasaka, Minato-ku, Tokyo 107-6025, Japan Anti-freeze protein to Multifunctional yeast for Polystyrene foam made with bead method Tel: +81-3-5574-8000 Fax: +81-3-5574-8121 maintain the quality of all methods of baking for fish or vegetable containers Date of Establishment September 1, 1949 frozen foods Paid-in Capital 33,046 million yen (as of March 31, 2014) Number of Employees Consolidated 8,907 Domestic Facilities Sales Office Nagoya ■ Net Sales (Consolidated) ■ Net Income (Consolidated) ■ Consolidated Sales by ■ Consolidated Overseas Sales Plants Takasago (Hyogo Prefecture) Osaka (Osaka Prefecture) Business Segment (Fiscal 2013) by Area (Fiscal 2013) Shiga (Shiga Prefecture) (Millions of yen) (Millions of yen) Kashima (Ibaraki Prefecture) 600,000 524,785 15,000 Synthetic fibers and others 13,650 476,462 7.4% Research Institutes Frontier Materials Development Laboratories 469,289 500,000 Others Medical Device Development Laboratories 453,826 11,625 Electronic products Chemicals 412,490 11.2% Biotechnology Development Laboratories 9.1% 19.8% 400,000 10,000 9,325 Asia 8,406 Life science products Photovoltaic & Thin Film Device Research Laboratories 44.3% 9.0% Molding & Processing Development Center 300,000 Net Sales Europe Overseas Sales Functional plastics Thin-Film Process Technology Development Center 5,402 ¥524.8 billion 25.5% ¥189.2 billion 16.4% Process Technology Laboratories 200,000 5,000 Foodstuffs products Expandable plastics and products Overseas Facilities U.S.A., Belgium, Singapore, Malaysia, China, India, 100,000 25.6% North America 12.7% Taiwan, Korea, Australia, and others 19.0% 0 0 Kaneka Group 92 subsidiaries (including 34 domestic and 26 overseas 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 consolidated subsidiaries) (Fiscal years) (Fiscal years)
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Social Needs and Kaneka’s Plan The graphite sheet in the circle on page 10 is Providing Thermal Solutions attached on the back. Heat control is vital for mobile devices
There are two key IC-related heat issues that Enhance the Compactness with smartphones and tablet PCs. One is the need to avoid low-temperature burns when the skin touches the surface of a device. The other concerns the heat that and Performance of Mobile the IC generates, which degrades the chip and device performance. Satoshi Matakawa, who was a Team Leader of Marketing Group III in the Devices Electrical & Electronic Materials Divi- ■ Comparing diffusion conductivity of graphite sheets sion (at the time when we produced this A greater thermal diffusion than other materials. Performance changes according to thickness report), told us that, “TVs and PCs use Smartphones and other mobile devices have transformed our work and life- aluminum or copper foil, while laptop Sample Polyimide film Copper foil Graphite sheet Graphite sheet (Thickness: (Thickness: (Thickness: (Thickness: PCs and other equipment incorporate Temperature distribution 80 25 micrometers) 25 micrometers) 25 micrometers) 40 micrometers) styles, and wearables in the form of glasses or wristbands are just around cooling fans. However the metal foil is ℃ the corner. More compact and powerful information devices demand thermal too heavy and the thickness is a prob- lem for thin and lightweight devices such Thermal solutions, which has prompted Kaneka to explore the high thermal conductiv- as smartphones and tablet PCs. Accord- image ity of graphite. We have pioneered solutions by collaborating with a university Kaneka Graphite Sheet helps ingly, Kaneka offers graphite sheet as a dissipate heat from mobile thermal solution for mobile devices. The Maximum that is working on thermal control for satellites. devices sheet is far more thermally conductive temperature 25℃ 148.2℃ 80.7℃ 65.0℃ 60.3℃ than other materials. In fact it’s three * Measurements are not guaranteed. times more thermally conductive than copper foil. To put it another way, the sheet only needs to be one-third the be able to resolve the issue. Today, most Toshinori Mizuguchi smartphones use these sheets.” Manager, thickness of copper foil to exhibit the Marketing Group III, same capabilities. It is well suited to Electrical & Electronic applications where lightness is impor- Becoming a thermal solutions company Materials Division tant.” by leveraging close customer ties to cultivate the market
Kaneka Group’s Approach Mr. Matakawa says, “Kaneka is mainly in the business of selling materials, but we Launching the thermal solutions decided to market our graphite sheet di- Satoshi Matakawa materials business in 2007 after rectly to manufacturers of smartphones Team Leader of GS projecting that mobile device heat and other devices. This was because Materials Sales Team, we wanted to get in ahead of rivals at Marketing Group III, Customer would pose an issue Electrical & Electronic ground level to establish new business- Materials Division POLICY & VISION Graphite’s many properties include its es by talking directly with customers. (at the time) electrical conductivity, gas-permeability Our aim was to become a provider of all The Kaneka Group leverages science to help cre- and high thermal conductivity, so this sorts of thermal solution materials, not ate more comfortable and convenient societies. material offers business potential in just graphite sheet.” We go beyond providing highly functional materi- numerous fields. We began research- He adds, “Initially, no sales resulted als to identify customer needs and offer innovative ing graphite in 2003. As Toshinori Mizu- from any of our business proposals. optimal solutions. guchi, Manager of Marketing Group III Smartphone producers preferred not in the Electrical & Electronic Materials to use thermal solution materials, and Division, commented, “We realized some tended to think that using such in around 2006 that there would be a materials represented a failure in design need for thermal solutions, which was engineering.” when the heat of ICs became an issue “I had to report back the lack of in mobile phones that were becoming demand for graphite sheet. But my boss increasingly smaller and more powerful. at the time told me not to return to the Metallic or natural graphite was mainly office until I’d made my first sale, so I did used as the thermal solution material. what I had to do, standing around every However we believed that thin, highly day in the cafeteria of one of our cus- heat-conductive graphite sheets would tomer’s companies.”
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■ Basic properties of Kaneka Graphite Sheet requiring marketing personnel to often graphite sheet does not completely ■ History of the graphite sheet Compared with the random structure of natural graphite products, catch overnight flights from Japan to resolve IC heat issues because there business Kaneka Graphite Sheet features a crystalline layer. hand-deliver items from Tochigi Kaneka is a layer of air between the chips and 2003 Started basic research into graphite Surface corporation. Today, we have a prototype the sheet. We are working with Frontier 2006 Started market commercialization Cross Z manufacturing facility in Korea to accel- Materials Development Laboratories and section erate delivery to customer development New Business Development to jointly 2007 Secured benchmark facilities sites.” develop high-value-added solutions that (Frontier Materials Development Y Mr. Mizuguchi says that, “We origi- combine graphite sheet and thermally Laboratories of Osaka Plant), proposed business launch (August) nally manufactured graphite and pro- conductive RTV elastomer (see note 1). X cessed stickers in Japan. However we This would eliminate the space between 2008 Obtained first machine and initial Natural graphite products Kaneka Graphite Sheet began production in Malaysia in January the uneven surfaces of ICs and the work and launched new business 2014. Having two manufacturing loca- graphite sheet, and directly absorb heat 2014 Began production in Malaysia Kaneka Graphite Sheet has superior characteristics compared to natural graphite as follows. tions enhances supply stability.” from the chips.” 1. High thermal conductivity 2. Flexibility 3. Low water absorption 4. High purity Mr. Mizuguchi says, “Smartphone manufacturers are launching new mod- Natural graphite Kaneka Graphite Sheet Anisotropic Prospects products thermal els every three months or so. By talking conduction with customers, we can learn what types Thickness (micrometers) 40~250 25 or 40 Thick but with of model they plan to deploy, assisting Thermal conductivity Direction of XY plane 200 300 1500 Aiming to become the “go-to” thermal ~ high thermal us to formulate proposals for new ma- （W/m･K） conductivity solutions provider Direction of Z axis 5~10 5 terials. We will boost our capabilities so * Measurements are not guaranteed. Thermal solution materials have come a Kaneka becomes the “go-to” provider of long way since 2007, and they are now thermal solutions.” more commonplace in advanced infor- mation devices. Furthermore, companies Mr. Matakawa recalls that, “Design simulation in our technical services so are now seeking even more advanced Note 1: RTV (Room Temperature Vulcanization). engineers had a lot on their hands, and we can propose minimal sizes to cus- Thermal conductive RTV elastomer is a Kaneka thermal solutions. non-silicone vulcanizing elastomer that is Graphite Sheet it was virtually impossible to make ap- tomers to meet their performance re- Mr. Matakawa notes that, “Using thermally conductive at room temperatures. pointments with them. But I realized that quirements, thereby lowering their costs. This sheet delivers the same thermal conductivity as copper foil but is one-third they would have to eat lunch no matter Our customers are very happy with our the thickness. We start by proposing a how busy they were, so I stood firm in services.” ▶Response to Message version that matches a customer’s specific the cafeteria until finally I got noticed. application, then we deliver. Message ▶ Stakeholder Message We started selling our products around October 2008.” We will leverage feedback Heat is a common challenge for both satellites and smartphones. “The key to this business is main- from the extremes of space It is vital to provide the latest technology at reasonable prices taining close relationships with custom- to develop thermal solutions ers. You never know when an opportu- technology nity will come up. It’s important to be Hosei Nagano ready to serve a customer by promptly Associate Professor, providing a sample or proposing a solu- Department of Aerospace Engineering, Yasushi Nishikawa Nagoya University tion.” Electronic Materials R&D Group, Electrical & Electronic Materials Division Mr. Mizuguchi notes that, “The elec- We exchange opinions as part of our endeavors to offer products that customers need most tronics industry changes rapidly, so trial I first met Associate Professor Nagano at and error remains the order of the day. the Japan Aerospace Exploration Agen- Our value comes from the fact that we My research focuses on thermal control cy in 2004. It was the year after Kaneka built an organization that is keen to pur- Building prototyping and production for satellites. There is no air in space, so started researching graphite sheet. Our sue new challenges. We collaborate with systems alongside customers to as you cannot release heat with convec- collaboration blossomed in areas such manufacturing (Tochigi Kaneka Corpo- accelerate responses and stabilize tion you have to control it with conduction as measuring and assessing the thermo ration), research (Electronic Materials R supplies and radiation. In space, a lot of equipment physical properties of graphite sheet & D Group) and marketing. We wouldn’t is confined in a small space, so you have and identifying issues. We have a certain be here today without the assistance of The production of smartphones and to control heat without using electricity. In confidence in process engineering as a the people in the division who constantly other mobile devices is shifting from this sense the challenge is the same for chemicals manufacturer. Still, obtaining supported us when we were unable to China to Southeast Asia. Kaneka has satellites and smartphones. Kaneka tripled feedback on the use of this sheet in ex- make a sale.” responded to this trend by optimally the performance of graphite sheet from treme environments like satellites is very the initial version, attaining up to 10-fold From left: Yasushi Nishikawa, Associate Professor Mr. Matakawa says that, “Kaneka’s locating its prototyping and production Hosei Nagano, Toshinori Mizuguchi, and Kazuki useful for business development. We the heat conductivity of aluminum alloy. advantages are its organizational sites. Tsutsui of the Technology Management Depart- will continue to develop thermal solu- There are two key considerations from the strengths and its production of polyimide Mr. Matakawa says that, “Respon- ment in the Electrical & Electronic Materials Divi- tion technology by drawing on valuable film, which is a raw material in graphite siveness is one of Kaneka’s strengths, perspective of aerospace industry devel- sion opment. One is to supply the latest tech- ideas from satellites. film. We have the capabilities to manu- and it is the result of dealings with our nology at reasonable prices. The second facture graphite film in 18, 25, and 40 customers that have toughened us up. is to resolve the various heat issues, not microns and other thicknesses to satisfy For example, a Korean customer de- just provide materials. customer needs. We draw on thermal manded a very short delivery lead-time,
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Protecting the Environment by Creating Advanced Manufacturing Sites
The Kaneka Group has devoted considerable effort to building advanced plants that deliver ■ Saving energy high quality at low prices. In 2008, we started an energy-saving project at our four parent plants in Organize activity Analyze current data Organize and review Produce conceptual drafts Conduct final theme Japan, reducing energy consumption by 8% in 2013. We deployed material flow cost accounting infrastructure materials themes assessments Identify materials themes Materialize themes (MFCA) in 2013, and are pursuing manufacturing that lowers environmental impact through training The Takasago Plant conducts energy-saving presentations every year attended by plant personnel and and technological innovations. representatives of Group companies to promote energy-saving efforts throughout the organization
Naoki Furukawa, then a General emerged in-house as the driving force Energy-saving initiatives that have contributed to overall plant optimization Environmental Social Needs and Kaneka’s Plan Manager of the Corporate Technol- behind each project to provide support • Saving energy by using exhaust heat from other plants (Takasago Plant) ogy Administaration Department (and and implement measures and technolo- We consistently reduced the consumption of steam, making it challenging to implement further cuts POLICY & VISION a Director of the Process Technology gies. Adding energy-saving concepts to Aiming to lower environmental impact at a paste plant making vinyl chloride paste resin. The focus therefore turned to waste heat from Laboratories since April 2014), told us conventional small group activities made through participation by all and other plants. By using heat generated by an adjacent monomer plant and vinyl chloride resin facility, The Kaneka Group utilizes science that, “We deployed systemic and invest- the effort more satisfying and motivating harnessing diverse insights the paste plant slashed the amount of steam needed for the paste drying process, which consumes to develop and popularize materials ment measures to ensure the project’s for project members. Manufacturing and the greatest amount of steam. and products to assist in resolving Adverse circumstances for the energy success. To identify energy-saving top- engineering personnel make energy- environmental issues. We pursue usage of domestic production sites ics from new perspectives, we created saving presentations and share know- sustainable manufacturing by creat- ■ Heat recovery flow at a vinyl chloride paste plant resulted after nuclear power plants a team of facilities experts, including how with other plants through factory ing plants that consume energy and went offline after the Great East Japan Slashed steam consumption in the paste Monomer plant Vinyl chloride resin plant other resources efficiently. those in energy facilities and process visits.” Earthquake and because of high natu- technology, in addition to manufacturing Although it completed its energy- drying process (black line on the left) using heat from a monomer and vinyl chloride resin 97°C ral gas prices. Because we consume experts. We also secured help from an saving project in 2013, Japan’s energy facility (red line on the right). so much energy as a manufacturer, we external consultant.” situation suggests a need to accelerate Heat exchanger have deployed numerous measures to Mr. Furukawa says that, “The con- initiatives, which is why Kaneka is under- Paste plant secure diverse insights from contributors sultant estimated that we could still taking MFCA. throughout our organization. The idea is save 10% more energy. We had already Drain recovery to create quality products at low prices undertaken energy-saving initiatives Building on enhanced capabilities Dryer by consuming less energy and other and were certain that such a cut was through energy-saving projects by 53°C 21°C 65°C resources. impossible. To our surprise, we obtained leveraging MFCA to reduce 15,900 new ideas, as everyone partici- environment impact and plant costs pated in the initiative, optimizing energy Air blower Hot water tank Kaneka Group’s Approach sharing between plants and equating to Following the energy-saving project, the Steam a 10% reduction in consumption. We set Takasago Plant rolled out MFCA at three Our energy saving project generated aside 200 million yen annually to imple- model worksites from 2013 to lower the 15,900 energy-saving ideas and ment energy-saving ideas, the point environmental impact of manufacturing. enabled us to consume 8% less energy being to make funds available for mea- MFCA initiatives encompass not • Using waste heat from a production facility sures whose initial investments needed only raw material losses but also factor to conserve energy (Shiga Plant) In 2008, Kaneka launched an energy- time to be recouped. As a result, we in by-products and fixed system costs, The Shiga Plant focused on the issue of waste saving project at the Takasago Plant, ex- lowered energy consumption by 8% and waste heat and other loss costs that heat from the deodorizing furnace of an ultra- tending this initiative to its Osaka, Shiga, improved energy spending.” have been traditionally deemed accept- heat-resistant polyimide film production facility, and Kashima plants. We endeavored to Mr. Furukawa notes that, “We have able production losses. MFCA optimizes and promoted its use as a source of steam within cut costs as well as conserve energy, also made advances with training. overall production by revealing losses the plant. In 2012, we built a waste heat recovery strengthen our manufacturing capabili- As soon as the project started mov- from new perspectives and encouraging boiler to reduce the ratio of untapped waste heat Deodorizing furnace waste heat recovery steam ties and lower environmental impact. ing forward, energy-saving specialists the efficient use of resources and energy. from 53% to 15%. boiler
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Naoki Furukawa Hajime Iida, Administration Team have also stated that they can now en- Yasuhiko Saeki General Manager of Leader for the Administration Manage- gage in logical discussions and master Production & Process Maintaining manufacturing in Japan by improving the efficiency the Corporate Technol- ment Group at the Takasago Plant, says principles, and that they have started to Innovation Team, ogy Administaration Administration manage- of existing coal boilers while constructing a natural gas Department, Production that, “MFCA has traditionally been used see the point of process improvements ment Group, cogeneration plant Technology Division at processing and assembly firms where by breaking processes up and analyz- Takasago Plant (Director of Process (Kanekalon Division since Looking to secure Technology Laboratories it is easy to identify losses. It has been ing them with data. By augmenting the April 2014) Toshihiko Hayashi stable power supplies since April 2014) deemed harder for chemical manufac- participation of everyone, the deploy- Energy Department Director, Takasago Plant (at the time) through an energy turers to deploy MFCA. By securing the ment of MFCA has changed the attitude mix comprising power collective expertise of people in manu- of manufacturing workers.” utilities, natural gas, facturing, research, and other areas, and coal Hajime Iida Hiroshi Yuzawa Kaneka pursued efficient resource Administaration Team Prospects Business Process Innova- Leader, use and production cost cuts in terms tion Division (Planning & Administration manage- of “controlling production losses and Coordination) ment Group, wastes,” “reducing energy and other At the Takasago Plant, we plan to bring efficiency. Our energy mix will thus com- Takasago Plant Lowering environmental impact and manufacturing costs,” and “building generating economic results and on line a 30-megawatt gas turbine cogen- prise natural gas and coal and electricity innovative processes to optimize opera- contributing to the benefit eration system in December 2014. This from power utilities. This setup will under- tions.” manufacturing has on customers and setup is very efficient and can quickly pin manufacturing in Japan by covering Yasuhiko Saeki, formerly of the the environment shut off and flexibly supply electric power various risks, including those associated Production & Process Innovation Team, and steam because it uses what is basi- with summer power peaks and price cally an aircraft turbine. In addition, we hikes for natural gas, not to mention low- Administration management Group at Hiroshi Yuzawa of the Business Process will upgrade the existing 60-megawatt ering specific energy consumption. the Takasago Plant (and at Kanekalon Innovation Division (Planning & Coor- turbine coal boiler to improve generating Division since April 2014) says that, “At dination) says that, “MFCA is a waste model workplaces we produced material reduction activity that visualizes manu- flows, cultivated ideas, and formulated facturing processes and benefits both improvements. As a result, we were customers and the environment. We Mr. Yuzawa says that, “The strength achieved at the Takasago Plant. We able to identify ideas for cutting costs now focus on waste, which is difficult to of Kaneka’s manufacturing sites is that have lowered the environmental impact by more than the target of 10%, and are reduce in conventional manufacturing. they enhance the motivation of everyone and enhanced business performance by steadily making progress with improve- We improved awareness of waste by in production to constantly pursue new improving the 3Rs (reduce, reuse, and ments. People at the model worksites creating materials flows from new per- initiatives.” recycle) of discharged water and waste have informed us that collaboration and spectives. This change in awareness has He also commented that, “We as tools in MFCA activities, thereby con- a change in perspective has enabled encouraged people to come up with and will expand MFCA to other plants and tributing to manufacturing that is benefi- ▶Response to Message clarification of targets and issues. They materialize process improvement ideas.” group companies based on what we’ve cial for customers and the environment.” Enhancing precision in all processes and lowering the Comments from key Personnel overseeing deployment of MFCA at three environmental impact of model sites (from left): Tomohiro Asakura, Specialty manufacturing people at model Plastics Manufacturing Department, Hiroomi Message ▶ Stakeholder Message workplaces Tokimoto, Chemical Manufacturing Department (at the time), and Masaru Wakuda, Pharmaceutical Naoki Furukawa Manufacturing Department (at the time) Kaneka has taken a mature approach, making a significant General Manager of the Corporate Technology difference in society through its commitment to saving energy Administaration Department, Production Technology Division (Director of Process Technology Laborato- ries since April 2014) Keiko Fujioka • Ideas emerge once you understand that • Deploying MFCA clarified the focuses of • Vital to carefully prepare materials flows President of Functional Fluids Ltd. and an everything apart from the product is manufacturing process upgrades based on worksite data editorial and executive committee member of Kaneka conducts manufacturing on a waste the Japan Society of Energy and Resources global scale. One of its mother facili- ties is the Takasago Plant, which com- Tomohiro Asakura Hiroomi Tokimoto Masaru Wakuda Technical, Specialty Plastics Manufacturing Depart- Technical, Chemical Manufacturing Department, Technical, Pharmaceutical Manufacturing Depart- prises a complex that utilizes its own ment, Takasago Plant Takasago Plant (at the time) ment, Takasago Plant (at the time) energy supplies to produce chemicals, synthetic resins and fibers, foodstuffs, Our department’s offerings include impact Our department makes vinyl chloride mono- Our department makes coenzyme Q10 Functional Fluids Ltd. started out by effi- Any rational consideration of manufactur- and pharmaceutical products. We aim modifiers for PVC used in the packaging of mer for polyvinyl chloride. Presently we are and other products. Because we deal with ciently manufacturing plastic mold prod- ing processes leads to saving energy. to create an internationally competitive pills. We illustrated material flows that form upgrading aged facilities and have used microorganisms, it was hard for us to create ucts to conserve energy, and is involved Although Japan is a leader in energy con- production base by reinforcing col- the base of MFCA and visualized losses. It MFCA to identify issues. We discovered a materials flow that balances inputs and in the research of chemical heat pumps. servation, we still waste about 70% of our laboration between departments while primary energy. I think that communicating took some time until the idea sank in that that we were spending more on fuel in by- outputs. So, we collected data from the We have ties with Kaneka through the increasing precision in all processes at Society of Chemical Engineers, Japan. I corporate initiatives can make a difference everything apart from the product is waste. product processes such as recovery and worksites of individual operators in the areas the Takasago Plant. One of the plant’s Once we understood this, ideas began to purification instead of on actual manufactur- of research, technology, and manufacturing visited Kaneka factories and noted its very to how society views saving energy. strengths is that it undertakes initiatives emerge from one site after another. Ideas ing processes. MFCA highlighted the need and reflected that data in the materials flows. mature approach to thermal applications. to conserve energy and resources while from the research department helped us to to deploy facilities that control by-products We were able to measure waste volumes understand how to improve costs and pro- rather than just focusing on making by- and processing costs, promoting more measuring the outcomes of such efforts. tect the environment in the very foundations product processing more efficient. improvement ideas from operators and re- We will continue to engage in environ- of manufacturing. lated departments. MFCA enabled us to use mentally friendly production by creating worksite data to improve manufacturing. advanced manufacturing sites.
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kaneka CSR 2014.indd 16 2014/09/08 17:25 kaneka CSR 2014.indd 17 2014/09/08 17:26 Special Feature Article III Fulfilling Our Social Responsibilities Contributing to Malaysia’s Growth by Cultivating Our HiHua Fiber Co., Ltd. Kaneka Korea Corporation Kaneka Eperan (Suzhou) Co., Ltd. Kaneka Asia Co., Ltd. Manufacturing Prowess and Kaneka Trading (Shanghai) Co., Ltd.
Kaneka Taiwan Corporation Human Resources Kaneka India Pvt. Ltd. Kaneka (Foshan) Chemical Industries Co., Ltd.
Kaneka Pharma Vietnam Co., Ltd.
Kaneka (Malaysia) Sdn. Bhd. Kaneka Singapore Co. (Pte) Ltd. Kaneka Eperan Sdn. Bhd. Kaneka Paste Polymers Sdn. Bhd. Kaneka Innovative Fibers Sdn. Bhd. In 2012, the Kaneka Group established Kaneka Asia Co., Ltd., Kaneka Apical Malaysia Sdn. Bhd. PT. Kaneka Foods Indonesia in Shanghai as a hub to oversee Asia. At Kaneka Malaysia, Undertaking initiatives to share corporate values and the Five S’s of workplace organization (Sort, Set in our biggest production base in Asia, we contribute to community progress order, Shine, Standardize, and Sustain), and posting Association of Southeast Asian Nations (ASEAN) member states safety reminders around workplaces by cultivating manufacturing and human resources. Brunei Malaysia Thailand Laos Singapore Indonesia Philippines Cambodia Myanmar Vietnam
air pollution. I am sure that people will people are reinforcing defenses against Minetoshi Marufuji Social Needs and Kaneka’s Plan consider Kaneka's health or environmen- Kaneka Group’s Approach the rising incidence of coastal flooding. President, Kaneka Asia Co., Ltd tal offerings beneficial.” There’s also rising interest in health and Employing an Asian manufacturing Kaneka is cultivating an Asian Creating plants that accommodate a rapid penetration of mobile devices approach to maximize local customer manufacturing ethos that emphasizes vibrant Asian demand in the region, and we can contribute in satisfaction local production and consumption. We these areas.” collaborate with regional employees to Kaneka Malaysia was established in Kaneka Malaysia has accommo- Asia accounts for more than half of the create products that match desired qual- 1995 in an industrial area of the State of dated vibrant demand by building new world’s population. Economic growth ity standards based on local needs and Pahang on Malaysia’s east coast. This plants and hiring more people since is encouraging the region’s four billion feedback, underpinned with attentive subsidiary manufactures everything 2011. As a result, around half of the Masahiro Kozai people to seek new products and ser- support. from plastics to electronic products company’s 400 or so employees joined Managing Director, vices. Mr. Marufuji says that, “We need and synthetic fibers. Its key markets are recently. To ensure everyone shares the Kaneka (Malaysia) Sdn. Kaneka has operations in eight much more than information from Japan China and India, the world’s two largest same corporate values, Kaneka Malay- Bhd. Asian countries. In 2012, we established to cater for local needs, which is why it nations. The Southeast Asian market is sia emphasizes 3C (Challenge, Concen- Kaneka Asia in Shanghai to oversee is vital to rely on people on the ground. also expanding dramatically. A vibrant tration and Communication) online, in Community these businesses. That company formu- We accordingly reviewed our person- middle class has emerged among its meetings, and on bulletin boards. lates strategies with regional operations nel system, emphasizing skills training. 600 million people, driving growth. Mr. Kozai says, “Malaysians come POLICY & VISION and supports local corporations. We look for Kaneka Malaysia (currently Demand is expanding in infrastructural, from Malay, Chinese, and Indian reli- Minetoshi Marufuji, president of a group of 5 companies) to build our health, and information technology gious and cultural backgrounds. I think A key Group CSR policy guides our Kaneka Asia, says that, “As Asian living regional presence. We will undertake ini- fields. communication is essential for internal globalization, stating that, “We will standards rising with economic growth, tiatives around Asia to create a new type Masahiro Kozai, Managing Direc- unity and sharing information.” strive to fully understand the cultural we believe that Kaneka can contribute of manufacturing approach that draws tor of Kaneka Malaysia, says that, “In backgrounds, manners and cus- much to better living. For example, the on Kaneka’s unique technologies.” inland areas of Southeast Asia, automo- toms of the countries and regions Chinese are becoming more health bile production has increased with the where we do business as a means of conscious as the population ages. Its development of transportation networks, actively contributing to local societies people are also more interested in the while the construction of stations and and communities.” environment these days because of the airports is underway. At the same time,
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kaneka CSR 2014.indd 18 2014/09/08 17:26 kaneka CSR 2014.indd 19 2014/09/08 17:26 Special Feature Article III Fulfilling Our Social Responsibilities Feedback from INSTEP and PSDC Trainees Feedback from Internship Trainees Contributing to Malaysia’s Growth by Cultivating Our Manufacturing Prowess and Human Resources
Syed Ahmad Syed Fostering employees to strengthen Contributing to youth development Idrus Alhabshi corporate capabilities Director, Plant General Manager, Since 2008, Kaneka Malaysia has coop- Kaneka (Malaysia) Sdn. While sharing values, Kaneka Malaysia erated with local universities and voca- Bhd. also emphasizes education and training tional high schools through its intern- Nurul Aida Tengku Ahmad Shafiq to foster leadership qualities. ship program. Although the company SHEQ engineer, Technician, With cooperation from Pahang Skills mainly accepts students with technical Kaneka (Malaysia) Sdn. Bhd. Kaneka Apical Malaysia Sdn. Bhd. Interns learning from a Kaneka Malaysia employee Development Center (PSDC) Kaneka background, it program provides experi- Malaysia created a program that focuses ence in various jobs, including human I have learned the basics of I attended a one-month course Ms. Fatasha Anis (left) Ms. Nor Shakiera (center) on manufacturing knowledge and safety resources affair and logistics, and is chemistry and electrical com- on industrial health and safety Ahmad Kamari Bin In my internship, I was assigned I finished the internship and im- to assist its many new employees. All of very popular. Sometimes, students from ponent for a month at the and handling chemical sub- Nordin Institute Technology Petroleum stances, mainly at the Pahang to a Career Seminar. I am grate- pressed with Kaneka's empha- them participated for around a month in Japanese vocational high schools take Senior Manager, PETRONAS (INSTEP). I was Skills Development Center. I ful for that experience, as I think sis on education and people. HR & SHEQ, this training program. Kaneka Malaysia part. Kaneka Malaysia conducts factory made acquaintances with now understand what work it was out of consideration for And I was surprised that the Kaneka (Malaysia) Sdn. additionally set up a re-training program. tours for nearly 300 university students Bhd. lecturers and friends outside is about, including the safety my aptitude, as my major is managing director eats lunch Upon completing their training program, every year. the company. I now have good aspects. I aim to apply my business administration. with everybody else. new employees took part in the Buddy Ahmad Kamari, Senior Manager of contacts for advancement. knowledge in the workplace System for three to six months, the idea HR & SHEQ at Kaneka Malaysia, says, and keep developing my skills. being to acquire skills from more expe- “Most people know little about chemi- rienced colleagues. Japanese staffers cals, and find them hard to understand. also helped train new employees as Recent business expansion has made us operators. A similar situation applied in more visible in the local community, so from Japanese expats to oversee pro- back office areas like accounting and more people are asking us about intern- Prospects duction lines. human resources. As well as rotating ships and plant visits. We aim to deepen Mr. Kozai says, “Localization is and re-training people, Kaneka Malaysia understanding of our company and do Contributing to Asian society through enhancing employee satisfaction. They had employees undertake global train- more for the community by encouraging localization have the most ideas, and will help them ing within the Group. young people to become interested in succeed. Our next step is to cultivate lo- Syed Ahmad, Plant General Manag- chemical technologies.” Kaneka Malaysia revamped its organi- cal leadership, thereby benefiting Malay- er at Kaneka Malaysia says, “Improving zation to accelerate a shift toward Asia. sia and, ultimately, the rest of Asia.” skills eventually enhances the com- For example, local employees took over pany's overall capabilities, so we spare no efforts in this regard. The long-term vision is for Kaneka Malaysia to spear- Message ▶ Stakeholder Message head the Group’s production in Asia . We’ve never experienced such a rush in Contributing to society by Many people attended POLISAS, plant and production line construction, engaging with Kaneka Malaysia employees so this is a new challenge. But we hope cultivating human resources to draw from our experience to progress in the years ahead.”
Mr. Mohd Anuar Bin Ali (left) Professor Dr. Zulkefli Bin Yaacob (center) Che Alias Mohd Yusof Mr. Mohd Nasrul (right) Ms. Mawarni Yismi Binti Mohd Yusop (left) Deputy Director, Polytechnic Sultan Haji Ahmad Shah Pahang Skills Development Center (Right) Ms. Wafty BT. Abd Rahman (POLISAS) Universiti Malaysia Pahang The Pahang Skills Development Center To date, we interacted with companies Our students are accepted as interns in was established by the federal govern- through plant visits. We recently launched various workplaces at Kaneka Malaysia. ment, the state, and private businesses to a unit to reinforce collaboration. Universi- Internships are great for student growth, so provide practical training programs. Since ties involve themselves in the latest aca- our school makes them mandatory. Intern- 2013, we have collaborated with Kaneka demic research, with corporations explor- ships are also very popular among stu- Malaysia to offer training on factory floor ing product technologies that contribute to dents because they value the experience work principles for new and experienced society. If we collaborate with each other, for preparing for their careers. Many are employees. we can help develop the nation. It is hard keen to enhance their practical experience. Ongoing education is crucial for countries for the public to understand the chemicals I hope that Kaneka Malaysia will continue and regions to grow. We hope that Kaneka business. So, I hope chemical companies to offer diverse internship programs that Malaysia will continue contributing the to communicate more with the public and contribute to student learning. community by training employees. offer plant tours. Conducting courses and deploying on-site training to enhance employee safety awareness
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kaneka CSR 2014.indd 20 2014/09/08 17:26 kaneka CSR 2014.indd 21 2014/09/08 17:26 Safeguarding the Environment Safeguarding the Environment Initiatives in Biodiversity Materials Balance of Production Activities Kaneka closely monitors the impact of its corporate activities on ecosystems. The Kaneka Group's fiscal 2013 energy and resource inputs substance emissions, While providing environmental technologies and products, and product commercialization are listed below. we endeavor to reduce the impacts stemming from production. A fire at an electrolyte facility of the Takasago Plant is outlined. As part of our social contribution efforts, we collaborate and support diverse external biodiversity initiatives.
Participation in and Support for Biodiversity Initiatives ■ Materials Balance (Annual) Kaneka participates in the following activities. INPUT MAIN OUTPUT ● Declaration of Biodiversity by Keidanren Promotion Partners ● Keidanren Nature Conservation Fund Main raw ● Keidanren Committee on Nature Conservation ● Japan Business and Biodiversity Partnership PRTR Law-designated materials metric tons CO2 1,134,000 1,113,000metric tons substances 73.4 metric tons Energy (Crude oil kiloliters SOx metric tons COD metric tons equivalents) 431,000 74.7 289.7 Releasing Larva at Settsu-no-mori New Employee Training at Kaneka Proposing Sustainable Farming Four parent plants NOx 816.7metric tons Final landfill 6.7metric tons Kaneka Biotope Forestry for the Future in Vietnam Water 21.5 millon m3/year
In November 2013, we released larva Since 2012, the Takasago Plant has par- KSS Vietnam Co., Ltd., which processes ■ Energy Consumption (Crude Oil Equivalents) and Energy Intensity The Kaneka Group strives to conserve energy and at an event that we sponsored with ticipated in Hyogo Prefecture’s private herbs and spices, began organically culti- All parent plants Domestic Group companies Overseas Group companies otherwise prevent global warming to reduce its energy the Settsu Firefly Research Society at forest preservation project, undertaking vating peppers three years ago. Vietnam intensity (see note 1). The energy intensity of our four Energy intensity for all parent plants parent plants in fiscal 2013 was 87.0, up 2.4% from a the Settsu-no-mori Kaneka Biotope on maintenance and preservation at Kane- is the world’s biggest pepper producer, year earlier, due to reduced production volume and the premises of the Osaka Plant. We ka Forestry for the Future in the town of accounting for half of the global trade changes in the product mix and fuel mix. The five-year average was down 0.7%, which was below target. invited local children and their parents Taka. volume. At the same time, the usage of 100 87.0 Energy consumption declined 3.7% from a year earlier to to release firefly larvae in the biotope, In 2013, we began using the for- agrichemicals is rising in Vietnam, caus- 431,000 kiloliters. and showed them beetle larva before est as a site to conduct new employee ing concern about soil contamination. Energy consumption Note 1: Energy intensity is a numerical value calculated by the release. The children also planted training for graduates from high school, KSS Vietnam decided to cultivate pepper (10,000 kiloliters) 43.1 dividing the energy used in manufacturing by the active mass, tulip bulbs, making the event even more vocational high school, and university. organically because of the high demand and indexing this figure against the baseline year of fiscal memorable. Participants collaborated to trim and in Europe for organic product and grow- 33.5 1990. Active mass is a production volume benchmark. A biotope is an area with a brook transport trees from mountain areas with ing awareness of environmental issues. 7.6 where people can observe fireflies and poor footing. The program created team Masahiko Miyai, president of KSS other creatures. Our biotope is in a natu- solidarity and deepened ties between Vietnam, says that, “If you continue to 11.7 ral section of the Osaka Plant premises, the employees. use a large amount of agricultural chemi- 1990 2009 2010 2011 2012 2013 which we lease to Settsu City. We plan to undertake around 15 cals, you will damage the soil. We want (Baseline year) (Fiscal years) In a few years, we expect the bio- afforestation activities covering ap- to propose sustainable farming for future tope to become an oasis for the commu- proximately 15 hectares from June 2012 generations.” ■ Carbon Dioxide Emissions from Energy Consumption and Emissions Intensity The Kaneka Group strives to reduce carbon dioxide nity, with numerous fireflies and beetles. through to May 2017. This is the first organic farming ex- All parent plants Domestic Group companies Overseas Group companies emissions intensities by using the intensity index (see note 2) as a management indicator based on energy periment of its kind in Vietnam, and it has Carbon dioxide emissions intensity for all parent plants consumed during production. The carbon dioxide received recognition from the national emissions intensity index of the four parent plants was government. We will continue contribut- 81.9, which exceeded the fiscal 2013 target of 79.4 by ing to sustainable farming. 100 3.1%, based on a fiscal 2020 target of 74. The main 81.9 factor was the change in fuel mix. Carbon dioxide emissions from the four parent plants rose 2.9% from a year earlier to 1,113,000 metric tons. Another factor in the increases was an expansion in the carbon dioxide Carbon dioxide emissions 111.3 emissions coefficient in electricity purchased from (10,000 metric tons of carbon dioxide) power utilities, as nuclear power plants were offline.
86.5 Note 2: Carbon dioxide emissions intensity index: This 15.5 measure against a fiscal 1990 baseline of 100 divides activity amounts (which Kaneka calculated the fiscal 1990 coefficient on a fixed usage basis) by carbon dioxide emissions from 21.4 energy consumption in production activities. This made it easier to visualize the impact of the Company’s activities. We 1990 2009 2010 2011 2012 2013 set our fiscal 2020 target using that index. (Baseline year) (Fiscal years) Releasing the larva Pepper trees at a KSS Vietnam farm Fire at Takasago Plant Electrolyte Facility
At approximately 7:57 p.m. on March 16, cable of a device monitoring the electrolysis To avoid a recurrence, we will confirm 2014, fire broke out at an electrolyte facility tank. insulation everywhere with the potential for of the Takasago Plant (in Takasago, Hyogo After re-checking all lines within the fire when subjected to higher-than-allowable Prefecture). Kaneka employees immediately plant, we reported to Takasago’s firefighting currents within the plant. At the same time, contacted a local public firefighting team headquarters that we did not identify any we will share information with other plants and initiated their own firefighting proce- safety issues and were given approval to to help prevent similar accidents. A sample of dures. The cause was a short circuit in a resume operations. New employees working together to thin the forest the pepper harvest
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kaneka CSR 2014.indd 22 2014/09/08 17:26 kaneka CSR 2014.indd 23 2014/09/08 17:26 Benefiting Customers Benefiting Customers Developing Products to Reduce Bone From Quality Assurance to Quality Fracture Risks in the Elderly after Falls Management of Business Activities with Kaneka develops products that support healthy living for a growing number of elderly people. 100% Participation The Kaneka Group’s business extends beyond chemicals to include diverse domains such as the environment, food, medicine, and healthcare. We are experiencing downstream growth in growth areas and are diversifying into such fields as tissue regeneration and cell therapy. Thus it is becoming more important to reinforce customer communications and other overall operations, not just quality assurance.
Reducing Impact from Falls without Compromising Comfort PDCA Cycles Based on Quality Management Rules
Kaneka developed Kaneka Hip Protec- wear comfortably for long periods of Employee Feedback We are expanding from business- implementation as “Do,” internal audits Employee Feedback tor, which incorporates an impact-ab- time. to-business to business-to-consumer as “Check,” and management reviews sorbing pad and a dedicated inner wear. In spring 2014, Koyo Disposable Seeking to Help the Elderly domains. In both fields, the quality as “Act.” We have a larger PDCA cycle Heeding Customer Feedback Femoral neck fractures are a major Goods Co., Ltd., an adult paper diaper Lead Enjoyable Lives requirements include performance to cover each activity. “Do” is the and Gaining Trust cause of many older people manufacturer, adopted the pad in a new and features, safety, and reliability. In aggregation of each activity, “Check” becoming bedridden, with numbers of offering that protects the hips by Miaki Shibaya business-to-consumer areas, however, is for such companywide inspections such patients projected to reach 300,000 attaching one of our pads. The product Frontier Materials Development overall quality is more important than as CSR Safety and Quality Inspections, in Japan in 2030. Hip protectors could was unveiled during Barrier Free 2014 at Laboratories before, including technical support and the Product Safety Review Confer- help reduce this number of people. Intex Osaka in April 2014, and attracted claim and inquiry responses, as well as ence (see note 1) and Catalog Reviews However regular models are many industry participants. efforts to identify target customers, (see note 2), “Act” is improvement plan- uncomfortable because the impact-ab- Preventing bone fractures among product uses in the market, and ning for the next fiscal year in the Prod- sorbing pads are hard and thick, so they the elderly is a key social issue not just customer needs. uct Safety Subcommittee (see note 1) have not become popular. from the viewpoint of maintaining quality SIBSTAR is a thermoplastic elastomer We consider it important to reinforce and CSR Committee, and “Plan” is for Kaneka began joint research with a of life, but also from the perspective of based on Kanaka technology. It offers the management of overall business planning initiatives for the next fiscal university on a hip protector using reducing the burden of carers and activities, developing quality that year. Natsuki Mori, Manager of the Products excellent impact absorption and & Safety Quality Assurance Group of foamed SIBSTAR, a Kaneka-developed healthcare costs. We will look into chemical resistance and is easy to satisfies customers, with all employees resin. We studied fall patterns and developing products for males as well. participating in product supply, while the the Responsible Care Department in the process. We developed a foam version Note 1: The Product Safety Subcommittee is under innovated a pad that is thin but absorbs development, design, manufacturing, Production Technology Division of SIBSTAR by combining our the CSR Committee. The members of its (pictured on the right), says that, impact. We tested user comfort and technologies. procurement, and sales units undertake Product Safety Review Conference head other factors and evaluated the results, individual roles to improve operational the environmental, safety and quality “Kaneka’s business is becoming more After repeated computer simulations divisions, research and development, leading to a protector that people can quality. In keeping with this approach, oriented toward end-users, so we need and performance evaluation tests, we manufacturing activity, and legal affairs to focus more than ever on customer developed a hip protector pad (see we established our Quality Management units. Rules in 2013. Each division has its Note 2: A Catalog Review entails checking the feedback to maintain quality. At the photo). The pad five smaller and larger suitability of catalog text, instruction manual own PDCA cycle, which more precisely same time, we are ensuring product holes to optimize impact dispersion, yet contents, and labeling to ensure that cus- safety based on usage other than the represents the rule bylaws as “Plan,” tomers can use products correctly. the material is just 6 millimeters thin. original intent and use by children.” Through my involvement with this Kenji Yoneda, Products Safety & project, I became a qualified welfare ■ The Kaneka Group’s Quality Management (PDCA) Quality Assurance Group of the equipment counselor. It will be a Responsible Care Department in the pleasure to promote this product around Achieving and maintaining quality through participation of all employees Production Technology Division (pic- Hip protector pad Scene at Barrier Free 2014, Japan to help senior citizens live more Planning Research and Manufacturing Sales Development tured on the left), says that, “There are a comprehensive welfare enjoyable lives. exhibition many examples of businesses that jeopardized their existence by Activity policies of the CSR Committee and P (Plan) Product Safety Subcommittee introducing problematic products. Kaneka’s offerings must not cause D (Do) Divisional business activities problems for stakeholders. We have committed ourselves to quality Bylaws (P) Product Safety Subcommittee management to avoid such situations.” Management Implementation reviews (A) (D) Internal audits (C)
Including CSR Safety and Quality Inspections C (Check) and Product Safety Review Conference
Kaneka Hip Protector for female innerwear. Product Safety CSR Committee Employed in Koyo Disposable Goods’ hip bone guard Recommended by the Japanese Society for Fall A (Act) Subcommittee product by attaching it to a paper diaper Prevention
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kaneka CSR 2014.indd 24 2014/09/08 17:26 kaneka CSR 2014.indd 25 2014/09/08 17:26 Caring for Our Employees Working with Business Partners Creating a Culture in which Everyone Procuring Raw Materials from Multiple Thinks Seriously about Safety Sources to Stabilize Product Supplies In 1994, Takasago Plant began hands-on learning to improve the mindset of employees in regard to safety. Based on lessons learned from the Great East Japan Earthquake and accidents at the chemical plants of This training has expanded throughout the Kaneka Group. other companies, Kaneka procures raw materials from multiple sources to reinforce its supply chain.
Training to Ensure Safe Behavior and Prevent Accident Recurrences Creating New Production Processes to Fulfill Supply Responsibilities to Customers
Takasago Plant has experienced ing mock accidents more realistic. For Employee Feedback Kaneka ensures stable supplies to Because this is a proprietary offering, Employee Feedback explosions and other accidents before, example, we place work gloves on sticks customers by maintaining multiple it will be a top priority to strengthen the so it began hands-on learning about to function like arms or show actual It is Important for People to production units while multi-sourcing as supply chain through multi-sourcing so Optimizing Overall Global explosions and oxygen depletion as equipment or devices involved in ac- Understand that Occupational many of its raw materials as possible. we can fulfill our supply responsibilities. Procurement part of our commitment to prevent other cidents. We are endeavoring to educate Accidents are Not Someone Else’s We evaluate matches of alternative We will push forward with serious accidents. We try to identify workers about the importance of acting Problem raw materials with existing products and manufacturing based on multi-sourcing Shigeru Umeda workplace risks by showing workers safely. have customers assess prototypes from the product design and process Team Leader, how dust explosions and other mishaps We have installed the same hands- employing such alternatives. As it takes engineering stages to reinforce supply Purchasing Team II, Chemicals Purchasing occur and highlighting potentially risky on learning facilities at three other a lot of time and effort to confirm that stability. Department processes. Kaneka plants. The Takasago Plant has there are no issues, we install We are constantly updating training started training workers from neighboring manufacturing lines that can materials based on occupational companies. To date, we have trained accommodate multi-sourcing when accident cases, such as being caught in 1,500 people from approximately 50 starting up overseas production Because Kaneka seeks to deliver high machinery. We are extending the companies. facilities. quality at low prices, the key activities in training beyond Kaneka employees to We have mobile hands-on learning Kaneka Malaysia will begin produc- the Chemicals Purchasing Department include operators at partner companies. equipment to enable training for Group ing Kanekalon at a new facility in 2015. are to recommend alternative, Takao Okimi of the Environmental Pro- In hands-on learning, we ensure that companies around Japan. cost-reducing raw materials to workers realize the dangers by mak- tection & Safety Group in the ■ manufacturing units. Although securing Environmental Protection & Safety Multi-sourcing of raw materials by Kaneka division alternative raw materials is important Management Department (at the time, for stabilizing supplies, production sites pictured on the right), says that, “The would be reluctant to use materials that Takasago Plant makes chemicals, so 1 other division raise costs. Sites become eager to use while it might seem safe, there are many alternatives that can help lower unseen dangers. It is important to learn expenses. from the past so we all understand how 5 divisions yet to 8 divisions decide 18 As part of efforts to minimize expo- hard it is to maintain safety. Kaneka has divisions multi-sourcing sure to disasters and other risks, the experienced a fatal accident before, but Chemicals Purchasing Department gath- fewer and fewer people remember this. 4 divisions planning to ers information on the raw materials that So, we must avoid forgetting by educat- multi-source overseas plants procure and the ing people about earlier disasters.” suppliers they use. I believe that the Itsuro Ito of the Environmental Pro- Two-thirds of divisions currently multi-source or plan to do so. Chemicals Purchasing Department in tection & Safety Group in the Environ- Japan will play a central role in optimiz- mental Protection & Safety Management ing the Kaneka Group’s procurement Department (pictured on the left), says ■ Process toward multi-sourcing Training employees based on accident predictions to improve sensitivity worldwide. that, “I provide instruction in hands-on learning. I think it is important to cultivate Compares an ability to sense the risks and avoid Division plans to Considers issues approaches of other Starts multi- accidents. For example, it is important to multi-source by product companies and sourcing avoid pointing at things and calling out evaluates samples without a sense of purpose, because simply doing so out of habit can be very dangerous. When I was younger, I knew of the death of a worker younger than myself. It is my duty to communicate to Conveying accident risks more realistically by using Hands-on learning using the same equipment people that occupational accidents are Meeting of chemicals purchasing managers a stick modeled as an arm wearing a work glove involved in previous accidents to prevent recurrences not someone else’s issue.”
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kaneka CSR 2014.indd 26 2014/09/08 17:26 kaneka CSR 2014.indd 27 2014/09/08 17:26 Topic 1 Fulfilling Our Social Responsibilities The Kaneka Group’s corporate approach, including CSR activities based on core business activities and TV commercials to raise awareness. Stakeholder Dialogues Opinions of Kamisu Municipal Government Officials Kaneka’s Responses Kaneka conducts stakeholder dialogues to share differing opinions on common issues and ○ Kaneka makes its CSR activities very easy to understand by stating they are about ● We will continue to contribute to society through our core businesses. No single to deepen mutual understanding in the process. being useful to society. Many companies engage in CSR, but I think Kaneka is a company can strengthen the operations of an industrial complex, and we would Since 2011, the company’s business sites have continued to engage in dialogue, step ahead in its efforts. Although Kamisu considers it important to reinforce the like to move forward with the cooperation of the authorities. We believe it is focusing on local government officials. functions of the Kashima industrial complex, what is Kaneka’s position on this, important for the community to understand that materials producers like Kaneka particularly regarding post-quake initiatives? make the essentials of modern living. Our fourth stakeholder dialogues were with officials from Kamisu, Ibaraki Prefecture, which is home to the Kashima Plant. ○ I think that Kaneka’s TV commercial vividly links its slogan of leveraging science ● We started running TV commercials in January 2011. Some employees used to to make wishes come true to trust in its products. Has the mindset of employees think that advertising was unnecessary because it was fine for the general public changed since you started running these commercials? not to understand business-to-business enterprises like ours. However we now recognize the importance of activities that raise our profile.
○ Ibaraki Prefecture ranks second in Japan in terms of the value of its agricultural ● Our core Takasago Plant in Hyogo Prefecture maintains a demonstration facility output. Kamisu is first in terms of green pepper production, and it grows a lot of that can produce 1,000 metric tons annually of biopolymers and which is running other agricultural offerings. We use a lot of polyethylene plastics, and disposal at full capacity. The usage rates of multi-film applications are high in Europe, and Fourth Stakeholder Dialogue is an issue. We are very keen for you to develop technologies for plant-derived we have created techniques to adjust degradation periods. We will push ahead plastics that could be used in all areas of agriculture. with development to expand applications. In February 2014, we conducted our fourth dialogues with external stakeholders to learn more about their Topic 2 evaluation and opinions, and to seek Disclosure and environmental initiatives to enhance community trust. direct feedback about our CSR activities and confirm the direction of our efforts. Opinions of Kamisu Municipal Government Officials Kaneka’s Responses Stakeholder dialogues are about ○ I think the site visits by top management for CSR purposes are a wonderful ● Top management will continue to visit sites. We will continue to disclose sharing differing opinions on common approach. I sense a strong commitment to safe operations through such information on our safety efforts through our CSR report while disclosing issues, deepening mutual understand- other efforts as third party evaluations by other plant managers and university information to the community and other stakeholders. ing in the process. professors. Communities seek safety above all from companies, and we hope you We conducted a broad discussion will broadly publicize your safety initiatives. with local government officials about the CSR Communication Book 2013, which ○ I believe that Kaneka has made safety a top commitment as stated by the ● It is important for employees to have a disaster-prevention mindset. In trying to we issued in July 2013. president. I think that disseminating information as swiftly and accurately as protect themselves they also safeguard their families and the community. Good possible after an accident will contribute to the safety of citizens. What steps is examples of this are our ongoing emergency response drills, verification efforts Kaneka taking in terms of risk predictions and other aspects of safety? that include considering accident case studies at other companies, companywide Dates and Locations preparation drills, and reviews of manuals. February 19, 2014 at Kamisu City Hall, Ibaraki Prefecture ○ I think it’s wonderful to engage with the community through vehicles like this ● We conduct regular stakeholder dialogues every year to exchange opinions on our dialogue session. I also think your appreciation of employees will help to enhance CSR activities. The Kaneka Group will continue community confidence. conducting stakeholder dialogues about Participants exchanging different opinions CSR issues. Our response to stakeholder opinions of the Kaneka Group acceptable or to enhance enterprise value and fulfill ■ Kaneka’s stance on building trust through stakeholder dialogues and requests inadequate, and highlighted the areas our corporate responsibilities. We will requiring improvement. discuss the valuable points and opinions Model for building trust (through a type of PDCA cycle) Our fourth stakeholder dialogue We believe that pursuing CSR we received with related departments to revealed the extent to which through core businesses and enhancing bolster sustainable CSR activities. Perform Disclose stakeholders consider the CSR activities stakeholder satisfaction will help us
Appreciate Communicate Dialogue held on August 23, 2013, with the Union of Takasago Residents’ Associations We aim to reinforce trust through this PDCA cycle. The Takasago Plant conducted a stake- production processes. The plant manager holder dialogue with the Union of Takasago delivered a speech to the participants, say- Participating Kamisu Municipal Government officials Residents’ Associations to deepen under- ing that, “We implement thorough measures standing of Kaneka’s corporate activities. regarding safety, environmental protection, At the gathering, plant representatives and disaster prevention as the top priorities presented activities at the site and at Kane- of our corporate activities. We will continue ka, explained safety efforts at the plant, and doing our best in community initiatives as responded to questions. We received valu- a properly run facility”. The Takasago Plant able opinions and requests from resident will endeavor to operate even more trans- association heads. The plant then conduct- parently in building relationships with the ed a bus tour of its facilities, pointing out the community through ongoing dialogue. Plant tour participants viewed the mountain of salt, Osamu Noguchi Toshiaki Takayasu Tetsuo Yamaguchi Yoshio Noguchi Masanobu Noguchi Mitsumasa Nishino Hiroki Kaito which is a raw material in our chemical products Education Director Health and Welfare Industry and Planning Director Administration Civil Life and Urban Development mountain of salt as well as the oil and fat Director Economics Director Director Environment Director Director
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kaneka CSR 2014.indd 28 2014/09/08 17:26 kaneka CSR 2014.indd 29 2014/09/08 17:26 Fulfilling Our Social Responsibilities Initiatives Related to the Great East Japan Earthquake Fostering Youth Reconstruction Support to Date Kaneka does much to foster youth in the communities in which it operates and throughout society. and in the Future In fiscal 2013, we took part in the first Children’s Chemistry Show in western Japan. Since the Great East Japan Earthquake three years ago, the Kaneka Group has supported relief and reconstruction Core-Net, a nonprofit organization of retired executives, whose members include Kaneka efforts. Here, we present our support initiatives to date. We will continue to assist in various ways with reconstruction. retirees, provided educational assistance at elementary and junior high schools. (Please see the PDF version for details.)
To Date and in the Future
Kanecaron Monetary contributions at the time of the earthquake in 2011 (55,650,000 yen)
Supplies Participating in a Children’s Chemistry Show Kaneka Manufacturing Class Including solar power systems, carpets (for protection from the cold), insulation materials, in Kobe and soaps Iwate Prefecture The Children’s Chemistry Show in Kobe was held on January Pro bono activities leveraging professional expertise are be- Products supplied by swiftly restoring factories The earthquake damaged the Kashima Plant, which was making products in high demand 25 and 26, 2014 at the Kobe Science Museum. The sponsor of coming more popular in Japan. NPO Core-Net is part of the in affected areas, including materials for blood bags. We switched production to facilities this event for elementary and junior high school students was pro bono movement, passing down manufacturing knowhow in western Japan and swiftly restored plant operations (fully back on line 45 days after the Solar power generation Liquid hand soap Dream Chemistry 21. The Japan Chemical Industry Association to support elementary and junior high school education. earthquake) system is one of the organization’s four constituent members. This was In November 2013, we initiated the Kaneka Manufacturing the first Children’s Chemistry Show in western Japan, the pro- Class program for 80 students in the sixth grade at Takasago Volunteer activities gram having started in Tokyo and expanding to Natori, Miyagi Elementary School, which is located near the Takasago Plant. Participating in the Fukushima Sunflower Foster Parent Project Prefecture, in fall 2012. The second such class was for 50 students in the fifth grade The Shiga, Kashima and Osaka Plants have participated in the Fukushima Sunflower Foster The Kobe event attracted around 3,300 people. About 250 at Senrioka Elementary School near the Osaka Plant, where Parent Project to decontaminate radioative soils in Fukushima Prefecture. children visited the Kaneka booth to learn how to make erasers. participants assembled scroller kits. The children put on gloves and goggles, mixed hardening Kaneka participants on both days were mainly new plant Support at various events Support at various events chemicals and resin, and shaped the compound as desired. employees. They instructed and assisted the students, impart- Since 2012, we have expanded restoration support by undertaking Tohoku produce fairs at summer festivals and by engaging in donation drives. They initially wondered whether their creations would truly ing an interest in manufacturing and a sense of achievement Fukushima Sunflower Foster erase anything. After heat-treating the material, they and their from taking part. The students greatly enjoyed the experience. Miyagi Prefecture Parent Project parents were delighted to discover that they did. In fiscal 2014, we look forward to holding these classes at Participating in the IPPO IPPO NIPPON Project Since 2013, Kaneka has donated 500,000 yen every year for the earthquake support activi- We look forward to continuing to help foster youth by other schools near our facilities as part of our commitment to ties of the Japan Association of Corporate Executives, which entail providing educational participating in another Children’s Chemistry Show planned for contributing to society by fostering youth. equipment to vocational high schools in coastal areas of the Tohoku region. western Japan in fiscal 2014. Donating 12,700,000 yen to Kesennuma The Kesennuma Marine Resource Application Study Group will use these funds to create new local industries and employment opportunities (this initiative began in April 2014). Handing over a list of items donated to Kesennuma City (from left, Kesennuma Mayor Shigeru Sugawara and Ikuo Aoi, General Manager of the Foam Plastics and Plastic Products Division) Reconstruction Support Topics Children crafted their very own erasers Support through products Reconstruction support along the highways of disaster-affected areas A large engineering foam block for road foundations, Soil Block has been used for recon- Soil Block Children experiencing the marvels of Kaneka’s Unveiling scroller assembly kits in the gym struction in disaster-affected areas since 2012. materials Fukushima Prefecture Creating employment Reconstructing the sole polystyrene foam molded products plant in Kesennuma, Kanae Co., Ltd. re- Miyagi Prefecture sumes fish container A tsunami washed away the facilities of Kanae Co., Ltd. a Group company in Miyagi Prefec- production ture, forcing it to shut down. It was reconstructed in May 2013. We plan to generate local employment opportunities and support the rebuilding of local fisheries.
Support through products Kaneka employee instructing students Supplying Kaneka Biosurfactant, a radioactive decontamination detergent This biodegradable detergent made of bacteria related to the Bacillus natto washes away soil Decontaminating road washer particles contaminated with cesium and other substances. Since 2012, it has been used in areas designated for decontamination.
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kaneka CSR 2014.indd 30 2014/09/08 17:26 kaneka CSR 2014.indd 31 2014/09/08 17:26 CSR Promotion Kaneka Group CSR Promotion Kaneka's CSR Activity Performances and Evaluations Kaneka's CSR Activity Performances and Evaluations Kaneka's CSR activties performances and evaluations in fiscal 2013 are as follows. Group Company Initiatives (PleaseKaneka's see CSR the activties PDF version performances for details.) and evaluations in fiscal 2013 are as follows. (Please see the PDF version for details.) Significantly outperformed Achieved/nearly achieved Significantly outperformed Achieved/nearly achieved Group companies practice CSR in Japan and abroad. ■ Kaneka's CSR Activity Performances and Evaluations Underperformed Significantly underperformed While initiatives have a local focus, they all share the same objective of contributing to ■ Kaneka's CSR Activity Performances and Evaluations Underperformed Significantly underperformed society through chemistry. Key Stake- Results holdersKey Stake- Item Fiscal 2013 Results EvaluationsResults (Please see the PDF version for details.) holders Item Fiscal 2013 Results Evaluations All Stake- CSR Manage- Management CSR Safety ・We implemented management CSR Safety and Quality Inspections at all parent plants, 17 plants of 15 domestic Group holdersAll Stake- mentCSR Manage- andManagement Quality Inspection CSR Safety ・companies,We implemented and five management overseas CSRGroup Safety companies and Quality as scheduled. Inspections at all parent plants, 17 plants of 15 domestic Group holders ment and Quality Inspection companies, and five overseas Group companies as scheduled. CSR Implementation ・Held meetings of CSR Committee and four subcommittees as scheduled. CSR Implementation ・DisseminatedHeld meetings information of CSR Committee regularly and through four subcommitteesthe intranet and as fostered scheduled. employee understanding of CSR through the CSR ・handbookDisseminated (Practical information Guide). regularly through the intranet and fostered employee understanding of CSR through the CSR ・Conductedhandbook (Practical job-specific Guide). and other training 28 times. ・Conducted job-specific and other training 28 times. Bolster Governance and ・Conducted CSR suitability audits for Kaneka Group operations in Japan, the United States, and Europe. ComplianceBolster Governance and ・HandledConducted four CSR inquiries suitability through audits compliance for Kaneka consultation Group operations desks. in Japan, the United States, and Europe. Compliance ・ImprovedHandled four internal inquiries control through levels compliance through creation consultation of a holding desks. company. ・Improved internal control levels through creation of a holding company. Reinforce Risk Management ・Undertook drills to prepare for an earthquake in eastern Japan, with this initiative reflecting the results of the previous fiscal Undertaking development and sales Constructing an on-site product Aiming to become a solutions developer Reinforce Risk Management ・year’sUndertook drills drills to prepare to prepare for an for earthquake an earthquake along in theeastern Nankai Japan, Trough. with this initiative reflecting the results of the previous fiscal year’s drills to prepare for an earthquake along the Nankai Trough. actively to present socially beneficial recycling station to foster recycling and provider Sharehold- Timely and Appropriate Disclosure ・Issued business reports, financial results, interim reports for shareholders and other investors, and other investor relations new technologies ersSharehold- and Timely and Appropriate Disclosure ・materials.Issued business reports, financial results, interim reports for shareholders and other investors, and other investor relations Kochi Styrol Co., Ltd. Tamai Kasei Co., Ltd. Investorsers and materials. Kaneka Taiwan Corporation Investors The Envi- Environmental Reduction of Volatile Organic ・At 1,853 metric tons, we failed to meet our target for the year of 1,850 metric tons. ronmentThe Envi- ProtectionEnvironmental CompoundReduction of (VOC) Volatile Emissions Organic ・At 1,853 metric tons, we failed to meet our target for the year of 1,850 metric tons. ronment ImprovementProtection Compound (VOC) Emissions (reducingImprovement Reduction of Industrial ・Kept the final landfill rate to below 0.01% for all parent plants, attaining zero emissions, below 0.2%, for eight consecutive environmental(reducing WasteReduction of Industrial ・years.Kept the final landfill rate to below 0.01% for all parent plants, attaining zero emissions, below 0.2%, for eight consecutive impact)environmental Waste ・Domesticyears. Group companies attained a final landfill rate of 0.08%, down from 0.22% a year earlier, thus maintaining zero impact) ・emissions.Domestic Group companies attained a final landfill rate of 0.08%, down from 0.22% a year earlier, thus maintaining zero emissions. ・We checked compliance among waste contractors and confirmed the absence of problems. ・We checked compliance among waste contractors and confirmed the absence of problems. Prevention of Global ・Energy intensity (see note 1) was 87.0, up 2.4% from a year earlier, but the 0.7% average cut over five years was less than WarmingPrevention of Global ・theEnergy target intensity reduction (see of note 1% annually.1) was 87.0, up 2.4% from a year earlier, but the 0.7% average cut over five years was less than Warming ・Thethe targetcarbon reduction dioxide emissionsof 1% annually. intensity was 81.9, or 3.1% above the target of 79.4. Kaneka Taiwan Corporation functions as Kochi Styrol Co., Ltd. manufactures and Tamai Kasei Co., Ltd. was established as ・The carbon dioxide emissions intensity was 81.9, or 3.1% above the target of 79.4. ・Reached the energy intensity target (see note 1) with a reduction of 2.7%, while the average reduction over five years was a key Asian base for customer-focused sells expandable polystyrene products a manufacturing and processing maker ・3.5%,Reached enabling the energy Kaneka intensity to reach target this (see target note as 1)well. with a reduction of 2.7%, while the average reduction over five years was development and electronic materials in the Chugoku and Shikoku regions. of expandable polystyrene products. 3.5%, enabling Kaneka to reach this target as well. Preservation of Biodiversity ・Undertook initiatives as part of social contribution efforts centered at the Takasago and Osaka plants. sales. This subsidiary also surveys Expandable polystyrene conserves a lot Tamai Kasei is development-driven. We Preservation of Biodiversity ・Undertook initiatives as part of social contribution efforts centered at the Takasago and Osaka plants. markets and provides sales support for of resources as it is 98% air as a result are focusing on the commercialization Customers Customer Quality Management ・We consolidated the Quality Assurance Rules and Product Safety Management Rules into the Quality Management Rules. Customers SatisfactionCustomer Quality Management ・We institutedconsolidated the theChange Quality Management Assurance StandardsRules and toProduct oversee Safety all environmental, Management safety,Rules into and the quality Quality changes. Management Rules. other operations, including new of its manufacturing method. It is easy to of temperature management containers (ensuringSatisfaction ・We instituted the Change Management Standards to oversee all environmental, safety, and quality changes. quality(ensuring and Chemical Substance ・We ensured thorough compliance with regulations and obtained timely information on regulatory revisions in Korea, Taiwan, businesses. We emphasize compliance recycle and is an excellent material from that combined expandable polystyrene productquality and ManagementChemical Substance ・China,We ensured the United thorough States, compliance and Europe, with and regulations shared it and internally. obtained timely information on regulatory revisions in Korea, Taiwan, education for employees and look to an environmental perspective. Kochi with cooling and heat storage materials. safety)product Management China, the United States, and Europe, and shared it internally. help develop and market new Styrol built EPSY Plaza on its premises These are passive solutions that do not safety) technologies that benefit society. to support resource reycling. emit carbon dioxide. We will continue Vendors Bolstering Distribution Safety ・The Takasago Plant collaborated with transportation companies in patrolling sites to check that people carry Yellow Cards, Vendors Bolstering Distribution Safety ・whileThe Takasago the Osaka Plant Plant collaborated identified unsafewith transportation locations during companies cargo handling in patrolling and sitesexamined to check improvements. that people carry Yellow Cards, to develop socially and environmentally ・Wewhile conducted the Osaka legal Plant compliance identified checksunsafe locations and voluntary during inspections cargo handling of mobile and examinedtanks. improvements. ・We conducted legal compliance checks and voluntary inspections of mobile tanks. beneficial offerings in the years ahead. ・The Kashima Plant collaborated with transportation companies to check and reconfirm the emergency contact network. The Contributing to quality of life by devel- Raising quality assurance to the ・TakasagoThe Kashima Plant Plant undertook collaborated Hiyari withHatto transportation (identifying, reporting,companies and to checkeliminating and reconfirmworker danger) the emergency initiatives. contact network. The oping and supplying safe, high-quality highest level in the industry to respond Takasago Plant undertook Hiyari Hatto (identifying, reporting, and eliminating worker danger) initiatives. Proper Pro- Green Procurement ・Internally publicized and set up a structure for green procurement, undertook efforts to help suppliers obtain ISO 14001 and products to customer demand curementProper Pro- Green Procurement ・otherInternally certifications, publicized andand setinitiated up a structureaudits of thefor greencontamination procurement, of raw undertook materials effortswith prohibited to help suppliers substances. obtain ISO 14001 and curement ・Institutedother certifications, Green Procurement and initiated Standards. audits of the contamination of raw materials with prohibited substances. Kaneka Pharma Europe N.V. Kaneka Sun Spice Corporation ・Instituted Green Procurement Standards. Employees Reinforcing Occupational Safety ・All four parent plants reinforced near-miss and hazard prediction efforts. Employees OccupationalReinforcing Occupational Safety ・DomesticAll four parent Group plants companies reinforced used near-miss hands-on and learning hazard equipment prediction to efforts. enhance safety sensitivities and bolstered hazard predic- SafetyOccupational and ・tionDomestic activities. Group companies used hands-on learning equipment to enhance safety sensitivities and bolstered hazard predic- HealthSafety and tion activities. Health Management Systems ・The CSR Safety and Quality Inspections of domestic Group companies clarified strengths and weaknesses by undertaking Management Systems ・assessmentsThe CSR Safety with and benchmarks Quality Inspections that indicate of domestic the maturity Group levels companies of initiatives. clarified strengths and weaknesses by undertaking assessments with benchmarks that indicate the maturity levels of initiatives. Occupational Health ・Held seven mental health training courses for 266 participants. Occupational Health ・SurveyedHeld seven mental mental healthcare health training at domestic courses Group for 266 companies participants. and identified issues. Patthermo refrigerant and heat-retention materials ・Surveyed mental healthcare at domestic Group companies and identified issues. Emphasis on Respect for Human Rights ・Educated 109 new employees in april 2013 and 44 newly promoted executives about human rights. Held seven inter- are used for the temperature management DiversityEmphasis on Respect for Human Rights ・culturalEducated communication 109 new employees classes in during april 2013 the year. and 44 newly promoted executives about human rights. Held seven inter- transportation packages. They are also used for Diversity cultural communication classes during the year. As a Euorpean base for life sciences Kaneka Sun Spice Corporation’s main the fixed temperature transportation of medical and Employing, Training, and ・Instituted research job rankings in April 2013 after conducting around 80 briefings to oversee and ensure understanding of products, Kaneka Pharma Europe N.V. business is powdered spices processed other products RecruitingEmploying, Diverse Training, People and ・theInstituted system. research We hired job six rankings foreign in nationals April 2013 (four after technical conducting and two around clerical) 80 briefings in April 2014 to oversee under thisand setup.ensure understanding of Recruiting Diverse People the system. We hired six foreign nationals (four technical and two clerical) in April 2014 under this setup. recently started supplying such using proprietary sterilization and Work-life Balance ・Continued to assess the need for a work-at-home system to promote the interests of women (particularly from a work-life high-quality functional food materials as powdering technologies. We lead the Work-life Balance ・balanceContinued perspective). to assess the need for a work-at-home system to promote the interests of women (particularly from a work-life balance perspective). reduced foam coenzyme Q10 market in commercial peppers. Labor and Management ・Held labor and management meetings at almost all business sites during the 2013 spring wage negotiations. RelationshipsLabor and Management ・Held labor and management meetings at almost all business sites during the 2013 spring wage negotiations. (Ubiquinol). In the medical equipment Maintaining good relationships with Relationships field, the Liposorber System, a communities near production facilities is Society Reinforcing Process Safety and Disaster ・Engaged with third parties in efforts to ensure the safety of hazardous substance storage tanks and identified process risks. Society PreventionReinforcing Process Safety and Disaster ・RespondedEngaged with to thirdsafety parties evaluations in efforts by identifyingto ensure the the safety strengths of hazardous and weaknesses substance of security storage andtanks disaster and identified prevention process setups. risks. hyperlipidemia treatment device, is essential and we thus focus on Prevention ・Responded to safety evaluations by identifying the strengths and weaknesses of security and disaster prevention setups. commanding great attention in Europe communicating with these communities. Improving Communication with Society ・Issued a CSR report and posted it on our website. Improving Communication with Society ・ContinuedIssued a CSR to engage report andin shareholder posted it on dialogue. our website. Held youth events. and elsewhere. In addition, it developed We are also promoting various initiatives ・Continued to engage in shareholder dialogue. Held youth events. ・Issued site reports for all parent plants and posted them on our website. and secured market approval for a cell to attain the industry’s best quality ・Issued site reports for all parent plants and posted them on our website. separation device, in which we look assurance by improving product safety. Note 1: Energy intensity is a numeral value calculated by dividing the energy used in manufacturing forward to enhance medical practice. Note 1: Energyby the active intensity mass is aand numeral indexing value it against calculated the baselineby dividing year the of energy fiscal used1990. in manufacturing by the active mass and indexing it against the baseline year of fiscal 1990.
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kaneka CSR 2014.indd 33 2014/09/08 17:24 kaneka CSR 2014.indd 32 2014/09/08 17:26 kaneka CSR 2014.indd 33 2014/09/08 17:26 ● Editorial Policy Third-Party Opinion Editorial Afterword The Communication Book presents simplified content for those learning about Kaneka for the first time or those wishing to gain an overview of our CSR activities. My Impressions from Reading Editorial Afterword This edition explains how Kaneka’s business activities relate to (Response to Third-Party Opinion) CSR, and features information of particular interest to CSR Report 2014 stakeholders, most notably the Kaneka Group’s relationships with customers, the environment, and society. The PDF edition discloses all of our CSR information. You can download a copy at the following This is the second year since we renamed the digest URL:http://www.kaneka.co.jp/kaneka-e/csr/index.html version the Communication Book to position it as a tool for communicating with stakeholders. Chieko Minami ● Organizations Covered in This Report In the opening Top Management Commitment section, Doctor of Commerce and Professor of Marketing, This report covers Kaneka Corporation and its domestic and Graduate School of Business Administration, Kobe University. the new president expressed his intent to overcome overseas consolidated subsidiaries. existing boundaries to build a trusted reputation for Graduated from the Faculty of Letters of Kobe University. The data on Responsible Care activities encompass the parent bringing people and technology together, thereby Completed a Master’s Degree in Communication from the Graduate School of Michigan State University. and all 38 Group production subsidiaries. Completed the first semester of a doctoral course at the Graduate School of Business Administration, Kobe University. contributing to social progress. We consider it In this report, “the Company” or “Kaneka” refers specifically to Left late in doctoral course. important to emphasize the inherent concept of CSR Assistant Professor, Faculty of Economics and Business Administration, Yokohama City University. Kaneka Corporation. The “Group” or “Kaneka Group” as contributing to social progress through core encompasses Kaneka and its consolidated subsidiaries. businesses. With that in mind, we inserted the Why References to “Group company/companies” do not include Presenting Evidence and Providing On the other hand, the Top Management such as a mobile phone or tablet. The article CSR? section in a Q&A format style early in the report. Kaneka Corporation. Explanations to Secure Commitment section describes Kaneka’s explains how changing the internal material could We will continue to enhance stakeholder satisfaction Stakeholder Understanding commitment to technological development that is dramatically improve performance, highlighting by conveying CSR activities through core businesses ● Language Versions driving social progress. The subsequent Why the struggle of a salesperson to grow the market. and providing specific examples. We publish the Communication Book in Japanese and English. In preparing to write my second third-party CSR? pages properly explain Kaneka’s CSR I found the story an interesting example of how a For the 2014 version, we again asked Professor Chieko opinion for Kaneka, I went back over what I wrote objectives, using a Q&A approach to overview materials company can offer new value to a Minami to write the Third-Party Opinion. She indicated ● Third-Party Verification and Opinions for the fiscal 2013 version. I laud Kaneka’s efforts, social contributions through its core businesses market through sales activities and thereby several improvements that she would like to see. These The Japan Chemical Industry Association verified the as I noted many improvements. They were not as a chemical company. contribute to social progress. include presenting the bases of numerical targets for environmental data in this report. Professor Chieko Minami of the just for the issues I raised but also as a result of The term CSR seems to have become part of the CSR activities and their backgrounds and Graduate School of Administration of Kobe University provided a reader questionnaire feedback and stakeholder social fabric, but I think many people still think Manufacturers today have to provide new “value” communicating a globally valid message about how third-party opinion of the overall content. dialogues. that CSR is just about volunteering or donations to resolve social issues by moving one step away Kaneka delivers value by contributing to society That said, as the Administration Office has also and do yet fully realize that CSR is about from conventional manufacturing. This reality also through its core businesses. We will make these ● Report Period indicated as requiring improvement, Kaneka still contributing to social development in the course applies to materials producers. changes accordingly in our next CSR report. This issue covers fiscal 2013 (April 1, 2013 to March 31, 2014) with needs to explain its criteria for setting up CSR of business. It is important to continue Given such a situation, it is very common to We would appreciate on any feedback on the initiatives some additional information outside this period. activity targets and self-assessments. For communicating clearly and presenting specific review corporate philosophies and visions to we have introduced in the report, and appreciate you example, why was it unable to attain its work-life examples, in order to gain stakeholder answer several questions. Why do companies taking the time to read it. ● balance objectives in its initiatives for employees? understanding. exist? How are they useful to society? And in Date of Publication September 2014 How might the company address this? I could not what direction do companies wish to head? There Administration Office find the answers. So, I would like to see the bases Continuing to Contribute to is a growing need to demonstrate corporate value CSR Committee ● Publication of the Previous Report for the numerical targets. This is because people Society through Core Businesses internally and externally. Kaneka Corporation may mistakenly conclude that Kaneka only and Globally Conveying Kaneka’s September 2013 formulates goals that are easy to reach. Value Kaneka’s message of making wishes come true ● Particularly in the environmental arena, it must through science, presented at the start of the Top Next Report have been very hard for Kaneka to formulate I specialize in business-to-business marketing, so Management Commitment section, properly September 2015 numerical targets for Japan, which is advanced in what I found the most interesting in this year’s conveys Kaneka’s value. I expect the company will ● environmental requirements. A lack of background report was Special Feature Article I on thermal more broadly communicate a globally valid Reference Guidelines explanation on the significance of goals for solutions. The article discusses how Kaneka’s message about how Kaneka delivers value by The Global Reporting Initiative’s Sustainability Reporting reducing environmental impact indicates that new graphite sheet has contributed to thermal contributing to society through its core Guidelines 2006 and The Environmental Reporting Guidelines Kaneka is not sufficiently conveying to readers its solutions for mobile devices. businesses. (2012 version) issued by the Ministry of the Environment of Japan. strenuous efforts to reach its objectives. As consumers, we think of the finished product, ● Inquiries Kaneka Corporation Suggestions and Improvements from the 2013 Report Administration Office CSR Committee 2-3-18, Nakanoshima, Kita-ku, Osaka 530-8288, Japan Kaneka made the following improvements in response to Professor Minami’s suggestions regarding the 2013 version. Tel: +81-6-6226-5091 Fax: +81-6-6226-5127 1. It would be better to provide more → In the PDF version, we tried to present the bases as http://www.kaneka.co.jp/kaneka-e/ background information on how much as possible for setting targets. We think this is we set up targets for activities. still insufficient, and we aim to expand the relevant content.
2. It would be better to change the → We followed Professor Minami’s advice and pagination on the Kaneka Group’s positioned CSR after the Top Management Meeting between a member of the Administration corporate philosophy and position Commitment section to convey the importance of Office CSR Committee and Professor Minami CSR to describe the value that the CSR in the Kaneka Group. We also endeavored to Group creates. convey the connections between our businesses and CSR through the Special Features and Highlight Note: We have included a questionnaire form with this report and articles. invite you to record your opinions and impressions to help us improve our initiatives and disclosure in the years ahead.
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