The Digest Edition 2011

Digest Version Osaka Head Office 3-2-4, Nakanoshima, Kita-ku, Osaka 530-8288, Japan Phone: +81-6-6226-5050 Facsimile: +81-6-6226-5037 Tokyo Head Office 1-12-32, Akasaka, Minato-ku, Tokyo 107-6025, Japan Phone: +81-3-5574-8000 Facsimile: +81-3-5574-8121 Editorial Policy Kaneka Group CSR Report 2011 Digest Version The Kaneka Group has issued its Responsible Care Report since 1999, renaming it the CSR Report Contents from the 2010 edition onward to include more socially responsible content. We are issuing digest and PDF editions from 2011. The digest is primarily for those en- countering Kaneka for the fi rst time or readers seeking an overview of our CSR eff orts. The PDF ● Top Commitment 4 edition discloses all of our CSR information. You can download a copy at the following URL: Kaneka’s Global Strategies 6 http://www.kaneka.co.jp/kaneka-e/csr/index.html ● Special Feature 1. Kaneka and Its Customers 8 The Environment Dedicated to the Pursuit of Health and Happiness Kaneka Society 2. Kaneka and the Environment 12 Group Biodiversity—Safeguarding Diverse Species 15 Customers 3. Kaneka and Society Winning Community Trust by Ensuring Safety ● CSR Approach of the Kaneka Group 18 This edition explains how Kaneka’s business activities relate to CSR, and features information ● CSR Tools 20 of particular interest to stakeholders, most notably our customer, environmental, and social Corporate Governance and Compliance initiatives. Responsible Care and Management In addition, there are sections specifi cally for stakeholders including the provision of Responsible Care Activities Check & Act columns, an overview of activities for the year under review, and our Plan-Do- ● Safeguarding the Environment 24 Check-Act (PDCA) goals for highlighted issues in the coming term. Measures to Prevent Global Warming and Conserve Energy Organizations Covered in this Report Materials Balance in Production Activities This report covers Kaneka Corporation and its domestic and overseas consolidated subsidiar- Reducing Waste and Preventing Pollution Cutting Chemical Emissions ies. The data on Responsible Care activities encompass the parent and all 35 Group production Environmental Effi ciency Indices Humankind is at a turning point. As people begin to focus subsidiaries and are detailed in the PDF version. more on the importance of life, people are uncovering the In this report, “the Company” or “Kaneka” refers specifi cally to Kaneka Corporation. The ● Benefi ting Customers 28 numerous relationships that underpin it. Th ey are eschew- “Group” or “Kaneka Group” encompasses Kaneka and its consolidated subsidiaries. References Product Safety and Quality Assurance ing materials in favor of emotional satisfaction, and are to “Group company/companies” do not include Kaneka Corporation. ● Working with Business Partners 29 Ensuring that Suppliers Fulfi ll their Environmental and now exploring the ways in which we should relate to the Language Versions Social Responsibilities environment. This report is available in Japanese and English. The PDF version is also available in both lan- ● Serving Shareholders and Investors 30 guages. Dividend Policy and Disclosure Th is paradigm shift makes it vital to leverage new thinking ● Fulfi lling Our Social Responsibilities 31 to build the future. Third-Party Verifi cation and Opinions Kaneka's Community and Social Contribution The Japan Responsible Care Council has verifi ed the environmental data in this report. Professor Initiatives Kaneka seeks to create completely new things as part of its Toshihiro Kanai, Dean of the Graduate School of Administration of Kobe University, has provided ● Caring for Our Employees 32 a third-party opinion of the overall content. long-term vision to build a more impressive and productive Cultivating Human Resources and Creating Comfortable Work Environments future. We have accordingly been supplying diverse prod- Report Period Occupational Safety and Health and Disaster ucts and technologies that enhance daily living in keeping This issue covers fi scal 2010 (April 1, 2010 to March 31, 2011) with some additional information Prevention with our position as a Dreamology Company. outside this period. ● Kaneka Group 34 Overseas Group Company Initiatives Domestic Group Company Initiatives Now is the time to put Dreamology to the test as Kaneka Date of Publication September 2011 Kaneka Group Profi le harnesses the power of chemistry to open the door to the Th ird-Party Opinion 38 future. Publication of the Previous Report Th ird-Party Verifi cation (see the PDF Version for Details) 39 August 2010 and Editorial Afterword Corporate Philosophy About the Front and Back Covers Next Report A childlike curiosity is fundamental to realizing With people and technology growing together into creative fu- September 2012 Kaneka’s long-term vision of building a more sion, we will break fresh ground for the future and tie in to ex- impressive and productive future. Th e three colored plore New Values. Reference Guidelines balls indicate that we are always there for the young, We are also committed to challenging the environmental issues and graphically complement the special features in this The Global Reporting Initiative’s Sustainability Reporting Guidelines 2006 and The Environmen- report. of our planet and contributing to upgrading the quality of life. tal Reporting Guidelines (2007 version) issued by the Ministry of the Environment of Japan. As in previous years, the back cover spotlights advanced technologies and Kaneka’s Corporate Ideals Inquiries products that stem from CSR Committee Kaneka Corporation Asahi Shimbun Building 3-2-4, Nakanoshima, Kita-ku, Kaneka’s approach. Th is Toward an Even More Impressive and Productive Future Osaka 530-8288, Japan year’s report focuses on the dynamic manufacturing Hold in your hands the future you have always dreamed of. Tel: +81-6-6226-5091 We are a highly perceptive and collaborative value-creating group or, as we process for Kanecaron, Fax: +81-6-6226-5127 which we discuss in one of like to say, a “Dreamology Company.” http://www.kaneka.co.jp/ the special features. 2 3 Top Commitment Great East Japan Earthquake Establishing a Corporate Culture of Innovation and Challenge A Time for Innovation Th e Great East Japan Earthquake on March 11 was a calamity of unprecedented scale for Japan, the larger society, and the Kaneka Two factors are key for Kaneka to be a highly evaluated company Group. We extend our deepest condolences to the victims and our that wins the trust of people from diverse cultures and customs heartfelt sympathy to the people in the aff ected areas. around the world: the development of new businesses in our four and Growth Founded on important strategic domains—Environment and Energy, Health We set up an Earthquake Disaster Task Force early the follow- Care, Information and Communications, and Food Production ing week through which our employees worked in unity to col- Support—and the capacity to manufacture, at low costs, prod- lect information on and restore safety to our customers, damaged ucts that by far exceed our customers’ expectations. To this end, CSR Activities production facilities, its employees, and their families. Th e Kaneka it is important that all employees, not only in research divisions Group has also given our utmost cooperation and support by do- but also production and sales divisions, including corporate staff , nating money and goods. innovate themselves toward R&D-oriented work styles. We will implement as planned the new personnel system we introduced As a result, our Kashima Plant, which had been forced to shut in April last year, and establish a corporate culture in which each down, gradually resumed operations at the end of March and was employee embraces self-innovation and meets new challenges. fully functioning by mid April. As a manufacturer, it is our duty to restore business to normal as quickly as possible and produce To move forward with the Group’s business expansion, we must and deliver the products needed by our customers. Although some also make innovations toward an effi cient management system. anxiety remains as to limits in power supply, the Group will com- We have set up Business Process Innovation Department and bine our eff orts and strive to fulfi ll our mission. started to implement concrete steps such as developing management processes that encourage forward-thinking organizational Medium-Term Management Plan “ACT2012” action, preparing a management administration infrastructure, —Execution and Realization and streamlining business operations. We will carry on with these initiatives as planned. Fiscal 2010 was the year that our 25th medium-term management plan “ACT2012” came into eff ect, based on the long-term manage- Positioning “Safety” as a Top Priority ment vision we introduced in 2009,” Declaration of Kaneka United” for the future. Kaneka has implemented various safety measures under last year’s Top Commitment to management that is thoroughly focused on It was also the year that our CSR Committee and its four sub- “Safety First.” We conducted plant safety inspections by top-level committees, which we set up in 2009, launched “check & act” managers each month, promoted risk management and the 3S activities, and full-fl edged CSR initiatives started at the Kaneka safety fundamentals (seiri, seiton, and seiso, which can be loosely Group. translated as tidying, organizing, and cleaning), and implemented compliance checks by the CSR Inspection Committee at our main During this time, the economies of developed countries have re- plants and Group companies. While we were able to prevent ac- covered somewhat from the Lehman shock, though its scars have cidents and disasters of a serious nature, we could not eliminate yet to be fully healed. As for the economies of emerging countries, them altogether. Both management and employees will refl ect on China and India showed strong growth of some 10% in 2010 and our actions and re-examine whether we have overlooked danger- are maintaining that growth rate in 2011.

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