Responsible Care

ResponsibleResponsible CareCare ReportReport 20022002 EditionEdition EnvironmentalEnvironmental Preservation,Preservation, ProductProduct Safety,Safety, OperationalOperational Safety,Safety, WWorkplaceorkplace HygieneHygiene andand HealthHealth

For life, living, and the living environment. MESSAGE FROM THE PRESIDENT

The constant transformation which the continue our concerted effort for Group has undergone ever improvement in environmental, product, since its establishment is the result of a and operational safety throughout all the directed evolution and growth in accord corporate activities from R&D to with the times, and our products now find production and marketing. use in practically every field of human activity. On March 12, 2002, a fire occurred at our LeonaTM 66 plant in Nobeoka. The ecological sustainability of our wide- Though no one was injured, it forced a ranging operations is ensured in accord temporary suspension of with the Basic Credo of the Asahi Kasei intermediates, , and compounded Group adopted on January 1, 2001, which resins production. The utmost efforts are includes contribution to human life and presently being devoted to a thorough human livelihood as basic tenets. investigation of the cause and a clear assessment of the damage, and we are We have long been committed to the determined to implement proper measures securement of environmental, product, to ensure against the possibility of any and operational safety for our employees, such incident ever recurring. the communities in which we work, and society, through our comprehensive As a measure to build trust and environmental preservation, product understanding, an important aspect of our safety, operational safety, and workplace Responsible Care program is the open hygiene and health (ESH) efforts. We have provision of information regarding ESH reduced the environmental burden of our issues in the Asahi Kasei Group. This operations, improved product safety report describing the state of our ESH informed by careful determination of activities and efforts during fiscal 2001 potentially harmful effects, and enhanced (ended March 31, 2002) is the latest in a operational safety throughout the series of reports we publish each year, as corporation. In each of these areas, we a key element of our Responsible Care have committed our material and program. I hope you will find it informative, intellectual resources to the advancement and welcome any questions or comments of environmental protection, product you may have. safety, and workplace hygiene and health. Greater thoroughness and vitality was brought to the comprehensive effort through the introduction of our Responsible Care initiative, inclusive of all ESH-related issues, in 1995.

As an essential part of our corporate responsibility both domestically and Kazumoto Yamamoto internationally, and in concert with our President Responsible Care initiative, we will July 2002 Contents Responsible Care

Asahi Kasei Group Overview 1

History of Growth 2

Basic Credo of the Asahi Kasei Group 3

Asahi Kasei Responsible Care Principles 4

Responsible Care Activities of the Asahi Kasei Group 5

Environmental Protection 11

Product Safety 23

Physical Integrity and Safe Operation 27

Workplace Safety, Hygiene, and Health 30

Education and Training Systems 32

Awards Based on ESH Results 36

Community Outreach 37

Environmentally Efficient Products and Technologies 39

Asahi Kasei Group Locations and Plants 43

Frequently Asked Questions 45

Independent Review Report 48

Asahi Kasei Group 2002 Responsible Care Report The Japanese Ministry of the Environment’s Environment Report Guidelines, 2000 edition, were consulted during the preparation of this report. The content of this report is not limited to environmental protection, but comprises information related to all of our Responsible Care activities, including product safety, operational safety, and workplace hygiene and health. We have revised the content of the report based on the feedback that we have received from readers of previous years’ reports, and enhanced the presentation of information for greater ease of understanding. The purview of the report includes all domestic operations of the Asahi Kasei Group shown on p. 43. The most recent data contained in the report is for fiscal 2001 (April 1, 2001 to March 31, 2002). Data which is aggregated by calendar year is so indicated. This report is published each year in July. Our first ESH report was published in 1992, and we have published reports each year since 1997. This year’s report is our eighth. Asahi Kasei Group Overview Overview Asahi Kasei Group

Tokyo Head Office: 1-1-2 Yurakucho, Chiyoda-ku, Tokyo 100-8440 Phone: +81-(0)3-3507-2060 Fax: +81-(0)3-3507-2495

Osaka Head Office: 1-2-6 Dojimahama, Kita-ku, Osaka 530-8205 Japan Activities of the Responsible Care Asahi Kasei Group Phone: +81-(0)6-6347-3111 Fax: +81-(0)6-6347-3077

Paid-in capital: 103,388 million (as of March 31, 2002) Protection Environmental

Consolidated net sales Major products 1,500,000 1,269,414 1,194,462 1,195,393 1,200,000 Chemical and Chemical-related

•Ammonia, nitric acid, caustic soda, high-compound fertilizers, acrylonitrile Product Safety 900,000 (AN), styrene monomer, methyl methacrylate (MMA) monomer, polymethyl methacrylate, Suntec™ polyethylene (PE), Polystyrene (PS), Stylac™-AS 600,000 styrene-acrylonitrile, Stylac™-ABS acrylonitrile-butadiene-styrene, SB latex, Millions of yen synthetic rubber, thermoplastic elastomers (TPEs). 300,000 •Tenac™ polyacetal, Xyron™ modified polyphenylene ether (mPPE), Leona™ nylon 66, molding machine purging agent. •Adipic acid, cyclohexanol, Duranate™ non-yellowing polyisocyanate, 0 19992000 2001 aluminum paste, nitrocellulose, epoxy resin, acrylic latex, and other coating Physical Integrity

and Safe Operation materials. Fiscal year •Saran Wrap™ food wrapping films, Ziploc™ food storage bags, films, sheets, foams. •Ceolus™ and Avicel™ microcrystalline cellulose, industrial cleaning agents, Consolidated group employees bonded anchors, industrial explosives, defense explosives, metal cladding, APR™ photosensitive resins, AFP™ photosensitive plates, printing plate 30,000 making systems, Microza™ ultrafiltration and microfiltration membranes and 26,580 26,695 26,227 systems, Hipore™ fine porous membranes, ion-exchange membranes, 25,000

Workplace Safety, electrolysis and electrodialysis systems. Hygiene, and Health 20,000 Housing and Construction Materials

15,000 •Hebel Haus™ houses, Hebel Maison™ apartments, condominiums, remodeling real estate, residential land development. 10,000 •Hebel™ autoclaved lightweight concrete (ALC) panels, piles, Neoma™ Training foam insulation panels, artificial fish reefs.

Education and 5,000

0 1999 2000 2001 Fibers and Textiles Fiscal year •Cashmilon™ acrylic staple, Pewlon™ acrylic filament, polyester filament, Bemberg™ cuprammonium rayon, Roica™ elastic polyurethane filament, Net sales by sector Leona™ nylon 66 filament, Eltas™ spunbond, Bemliese™ nonwoven Awards in cellulose filament, Lamous™ artificial suede, Solo™ polytrimethylene ESH Results Recognition of Liquors, Services and Others terephthalate. 5% Health Care 8% Electronics

•Sunfort™ photosensitive dry film resist (DFR), Pimel™ photosensitive Electronics polyimide, LSIs, Hall elements, pellicles, glass fabric. Outreach

Community 5% Health Care Fibers and Textiles Chemical and Chemical-related 11% 37% •Elcitonin™, Bredinin™, and other pharmaceuticals, pharmaceutical intermediates, diagnostic reagents, feed additives, Planova™ virus removal filters, artificial kidneys, Sepacell™ leukocyte reduction filters, blood and plasma filters, contact lenses. Environmentally Efficient Products and Technologies Housing and Construction Materials 34% Liquors, Services and Others

•Fukumusume™ and other sake, shochu, Hi-Liki™ and other shochu fizz, salt. •Plant, equipment, process engineering. Plants Locations and Asahi Kasei Group

1 History of Growth

Responsible Care

The history of Asahi Kasei is a history of growth. membrane systems for ultrafiltration and The first three milestones came in rapid microfiltration. succession: the founding of Nihon Hiryou K.K. (Japan Nitrogeneous Fertilizer Company) by Housing and Construction Materials Shitagau Noguchi, the start of ammonia Construction materials operations began with the production by the Casale process at Nobeoka, production of Hebel™ autoclaved lightweight Miyazaki Prefecture in October 1923, and the concrete in August 1967, which was soon start of rayon production at Asahi Silk Weaving followed by the production of autoclaved high- Co., Ltd., Zeze, Shiga Prefecture in the following strength piles and then autoclaved concrete steel year. composite piles. Most recently, the Neoma™ high-performance phenolic foam insulation panel Utilizing this ammonia, Japan Bemberg Fiber Co., was commercialized in October 2000. Housing Ltd. began production of Bemberg™ rayon by the operations began in 1972 with the introduction of cuprammonium process in April 1931, and in May the quality Hebel Haus™ product line. From the of the same year the Nobeoka plant of Nihon beginning, their market leading design and ALC Chisso Hiryou was spun off and established as construction have brought rapid and continuing Nobeoka Ammonia Fiber Co., Ltd., the formal growth, throughout all targeted urban and establishment date of Asahi Kasei. metropolitan areas, led by innovations in three- story homes, two-generation homes, and most The first decades were a time of growth through recently the Long Life Home concept. expansion in the production of industrial chemicals and chemical derivatives such as Electronics caustic soda, chlorine, fertilizers, nitrocellulose A major milestone in the development of and industrial explosives, Bemberg™ and viscose operations in the electronics sector has been the rayon cellulosic fibers (viscose rayon production growth of Asahi Kasei Microsystems Co., Ltd., ended September 2001), and Asahi Aji* flavor since its establishment in 1983, driven by market enhancer. The years following World War II began leading innovations in LSIs, crystal oscillator ICs broader ranging expansion into new fields, which and other devices for mobile phone and other has brought Asahi Kasei to the forefront of the demanding applications. Materials produced by Japanese chemical industry. Asahi Kasei for the electronics industry include dry film resist, photosensitive polyimide, and glass Fibers and Textiles fabric. Bemberg™ and viscose rayon were complemented with Cashmilon™ acrylic staple Health Care fiber in May 1959, followed by nylon 6 filament in The development of an extensive range of bulk February 1964 (production ended June 1994), and intermediate pharmaceuticals began in 1970. polyester filament in June 1969, Leona™ nylon 66 Major developments included the introduction of filament in June 1970, Roica™ elastic our first anti-cancer agent in 1978 and first polyurethane filament in February 1971, and thrombolytic agent in 1991. In 1992, the spunbond nonwoven fabric in September 1973, pharmaceuticals operating base, market position, to establish Asahi Kasei as a comprehensive and R&D effort were reinforced and expanded by maker of cellulosic and synthetic fibers. In 1994, the acquisition of Toyo Jozo. Asahi Medical was Asahi Kasei Textiles, Ltd. and holdings in Nippon established in 1974 for operations in artificial Synthetic Fibers Co., Ltd. were absorbed, for kidneys and other medical devices. integrated fiber operations over the full range of Biotechnology-related products include fine R&D, production, and marketing, from materials chemicals and virus-removal filters. to textiles. Liquors, Services and Others Chemical and Chemical-related The 1992 Toyo Jozo merger also brought our We began commercial production of acrylonitrile entry into alcoholic beverages operations. monomer in 1962 and synthetic rubber in 1964. Operations in this sector also include engineering, With the start-up of our ethylene plant in April information systems, and salt production. Foods 1972, our Mizushima petrochemical complex operations, including the Asahi Aji* flavor became the key supply base for our operations in enhancer first marketed in 1935, were divested to petrochemicals and derivatives. Production of a Japan Tobacco Inc. in July 1999. variety of began in the 1960s and 1970s, including PMMA, HDPE, Tenac™ polyacetal, and Today the drive continues, for new advances in Leona™ nylon 66. In April 1975, we led the world both established and leading-edge perations that with chlor-alkali production using the ion- will write the future history of growth. exchange membrane process. In October 1982, the operations of Asahi-Dow in styrenic resins, TM Trademark or registered trademark of Asahi Kasei Corporation. Xyron™ m-PPE, LDPE, foams, and Saran * Registered trademark of Japan Tobacco Inc. Wrap™ and other polyvinylidene chloride resin products were merged into the rapidly expanding product stream.

Specialty Products and Systems operations include photosensitive resins, coating materials, and pharmaceutical excipients. Our first ion- exchange membrane plant in Kawasaki was completed in 1961, and other major milestones, marking world-leading advances, were achieved in the development of ion-exchange membranes and membrane processes for chlor-alkali and salt production since that time. Operations also include microporous membranes for use as lithium-ion battery separators and hollow-fiber Nobeoka Office.

2 Basic Credo of the Asahi Kasei Group Overview

Asahi Kasei Group The Basic Credo of the Asahi Kasei Group was formulated to clarify our identity, objectives, and principles of action as we move forward into the 21st century. Activities of the Responsible Care Asahi Kasei Group Basic tenets We the Asahi Kasei Group, through constant innovation and advances based in science and the human intellect, will contribute to human life and human livelihood. Protection Environmental Guiding precepts

1. We will create new value, thinking and working in unison with the customer, from the perspective of the customer. 2. We will respect the employee as an individual, and value teamwork and worthy Product Safety endeavor. 3. We will contribute to our shareholders, and to all whom we work with and serve, as an international, high earnings enterprise. 4. We will strive for harmony with the natural environment and ensure the safety of our products, operations, and activities. Physical Integrity

and Safe Operation 5. We will progress in concert with society, and honor the laws and standards of society as a good corporate citizen.

Action guideline

Breakthrough - Together Workplace Safety, Hygiene, and Health Move beyond the current limits, open the path, share the advance... • Focus - Customer ...... Act with the customer as the starting point. • Development - Global ...... Act in a global field of vision. • Dynamics - Group...... Act for a group structure of independent Training

Education and enterprises in mutual rivalry.

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

ESH Results Ensuring environmental protection, product safety, and operational safety throughout all Recognition of business activities has long been recognized as a fundamental obligation of the Asahi Kasei Group, and public interest has heightened as awareness of global environmental issues has grown. Environmental protection issues today, including global warming and endocrine disrupters, are worldwide in scope. The rational use of raw materials, energy Outreach

Community conservation, recycling, and minimization of wastes and effluents are essential for ecology and preservation of natural resources. Product development from the perspective of the customer, thoroughgoing quality control, and provision of safety information and guidance to ensure safe and proper product use are important aspects of product safety in recognition of our product liability obligations. Operational safety is an essential part of the corporate foundation. The level of safety Environmentally Efficient Products and Technologies is continuously heightened, with each employee bearing responsibility. All ESH activities of the Asahi Kasei Group are integrated in our voluntary Responsible Care program. We recognize that simply observing laws and regulations is not sufficient to effectively contend with certain ESH issues such as global environmental problems, and are determined to continue to improve environmental protection Plants measures on a voluntary basis. Locations and Asahi Kasei Group

3 Asahi Kasei Responsible Care Principles

Responsible Care

The basic tenets, guiding precepts, and action guideline of the Basic Credo of the Asahi Kasei Group are fulfilled in accordance with these Responsible Care Principles.

Throughout the product life-cycle from R&D to disposal, utmost consideration is given to environmental preservation, product safety, operational safety, and workplace hygiene and health as preeminent management tasks in all operations worldwide.

• Environmental preservation is achieved by ameliorating the environmental burden of operations while giving full consideration to the environment in the development of new technologies and products. • Product safety is ensured by evaluating the safety of products and providing safety information. • The safety of personnel and members of the community is secured through endeavors to maintain stable operation and improve technologies for safety and disaster prevention. •Workplace accidents are prevented through improvements to the workplace environment and plant modifications to achieve inherent safety. • Maintenance and promotion of employee health is supported by efforts to achieve a comfortable workplace environment.

In addition to maintaining legal compliance, continuous improvement is pursued through attainment of self-imposed targets based on results of risk assessment. Public understanding and trust is gained through proactive communication and information disclosure.

June 4, 2002

4 Overview Responsible Care Activities of Asahi Kasei Group the Asahi Kasei Group Activities of the

Responsible Care The Concept of Responsible Care Asahi Kasei Group Historically, progress in dealing with pollution and maintaining safety in Japan was achieved through legal regulation and administrative guidance. However, with technology becoming increasingly

Protection advanced and complex, and the pace of Environmental technological innovation rising, simple application Responsible Care of uniform rules is no longer sufficient. Responsible Care represents the commitment and At the same time, concern has arisen that global initiative to secure and improve safety and environmental problems such as global warming environmental protection at every step of the product and stratospheric ozone depletion may even life-cycle through the individual determination and threaten the future of human existence. As a responsibility of each firm producing and handling chemical products. Responsible Care also entails solution to such problems, recognition has measures to gain greater public trust through Product Safety emerged that corporations must not only satisfy communication and dialog. legal regulations but also voluntarily and proactively engage in environmental protection activities based on a comprehensive Responsible Care at Asahi Kasei understanding and awareness of the effects that their business operations have on the Environmental Preservation environment. ISO 14001

Physical Integrity It was against a background of such trends that and Safe Operation Product Safety Responsible Care was conceived in Canada in ISO 9000 Safety and Health 1985. In 1995 the Japan Responsible Care series Committee was established, with Asahi Kasei Community among the founding members. While Responsible Outreach Care originated in the chemical industry, the Responsible Care program at the Asahi Kasei Responsible Care

Workplace Safety, Group is implemented comprehensively Hygiene, and Health throughout all operations, including non-chemical operations. Training Education and Responsible Care Implementation Corporate regulations for Responsible Care the Asahi Kasei Group. The following figure shows

Awards in management have been enacted for efficient the roles of Responsible Care implementation ESH Results Recognition of implementation of Responsible Care throughout organizationally. Outreach Community Environmentally Efficient Products and Technologies Plants Locations and Asahi Kasei Group

5 Responsible Care

Responsible Care implementation

Presidents of internal company business units*

President General Managers, regional Offices*

General Managers, corporate-level administrative departments*

Responsible Care Secretariat Responsible Care General Manager, Environment, Safety & Environment & Safety Department, Committee Production Technology Administration Quality Assurance & Product Safety (responsible for oversight) Department *Responsible for implementation within their respective organizations.

Note: Internal company business unit structure adopted June 28, 2001.

Responsible Care Management System The Responsible Care management system at the Based on these audit reports, the General Asahi Kasei Group employs a plan-do-check-act Manager of the Environment, Safety & Production cycle for systematic and continuous reevaluation Technology Administration, with ultimate and improvement of EHS activities. Internal responsibility for Responsible Care oversight, company business unit Presidents and General conducts audits of each internal company Managers of each regional Office are required to business unit and each regional Office, and reports conduct yearly internal audits of the Responsible the results to the Responsible Care Committee, Care system, execution, and results within their where they are used to guide revisions to the internal companies and regions, and prepare Responsible Care policies. yearly reports based on these audits for presentation to the Responsible Care Secretariat.

Responsible Care management system

President General Manager of the Environment, Safety Presidents of internal company business units, & Production Technology Administration General Managers of regional Offices Responsible Care Principles

Responsible Care Guidelines Policies and targets at each internal company Plan business unit and regional office Plan Plans Act RC Do Act RC Do Implementation

Audit Check Check Review Corporate Audit

Review (Responsible Care Committee)

Responsible Care Report

6 Responsible Care Activities of the Asahi Kasei Group Overview Asahi Kasei Group

Methods of Responsible Care Environmental management system Activities of the Responsible Care Asahi Kasei Group Implementation Quality management system Occupational health & safety management system The Asahi Kasei Group utilizes ISO 14001- Each of these is a system adopted voluntarily which utilizes compliant environmental management systems specified plan-do-check-act cycles for successive and and ISO 9000 series-compliant quality ongoing implementation - comprising policies and plans management systems as methods to implement and their execution and administration, inspections and corrective measures, and review by management. Protection Responsible Care activities. We are also adopting

Environmental occupational health & safety management systems (OHSMS) compliant with guidelines published by the Japanese Ministry of Health, Labor and Welfare.

Product Safety Specific Responsible Care Measures Group-wide Responsible Care Responsible Care Guidelines Principles Specific objectives based on the Responsible Care Group-wide Responsible Care Principles are Principles are defined in the Responsible Care determined by the Responsible Care Committee, Guidelines. Responsible Care Guidelines for fiscal

Physical Integrity chaired by the President. 2002 are shown below. and Safe Operation

Fiscal 2002 Responsible Care Guidelines

Environmental • Elimination of environmental pollution from accidents. Workplace Safety,

Hygiene, and Health protection • Reduction of final disposal volume of industrial waste by 20% (interim objective toward zero emission).

• Reduction of unit energy consumption by 1%. • Reduction of greenhouse gas emissions by 1%. Training

Education and • Reduction of hazardous atmospheric pollutant release by 25%. • Reduction of release and transfer of PRTR-specified substances.

Product safety • Elimination of product safety incidents. Awards in ESH Results Recognition of Operational safety • Elimination of industrial accidents.

Workplace safety and • Achieve frequency rate* for lost-workday injuries of 0.1 or less. hygiene • Achieve severity rate** for lost-workday injuries of 0.005 or less. Outreach Community Health • Systematize and unify base for health support. • Reduce proportion of employees receiving health cautions.

*Number of accidental deaths and injuries resulting in the loss of one or more workdays, per million man-hours worked. **Lost workdays, severity-weighted, per thousand man-hours worked. Environmentally Efficient Products and Technologies Plants Locations and Asahi Kasei Group

7 Responsible Care

Measures at Internal Company Corporate Responsible Care Audits Business Units and Regional Offices Responsible Care audits of each internal company Internal company business unit Presidents and business unit and regional Office are performed by General Managers of each regional Office the General Manager of the Environment, Safety & determine specific targets in accordance with the Production Technology Administration. For fiscal Responsible Care Principles and Responsible Care 2001, audits comprised the items shown below. Guidelines, and prepare medium-term plans to achieve these targets.

• Implementation of the plan-do-check-act cycle. • Implementation of critical measures based on Responsible Care Plans. • Progress in responding to issues designated for study as a result of the fiscal 2000 audit. • Incidence of environmental or safety accidents, and measures taken to prevent recurrence. • Product safety information and implementation of related measures. • Product safety inquiries and their responses. • Measures related to recycling of product, containers, and packaging. Corporate Responsible Care Audit • Zero-emission plans and progress of implementation.

Responsible Care Committee Review The 8th Responsible Care Committee Meeting (June 3, 2002) The Responsible Care Committee receives reports concerning Responsible Care implementation at Reports were presented on results of Responsible each internal company business unit and at the Care measures implemented in fiscal 2001. As a group-wide level, and determines any necessary result of deliberations, corporate Responsible Care changes to be applied to the Responsible Care Principles and corporate regulations for Principles for the following fiscal year based on a Responsible Care management were revised. review of these reports.

Closing remarks from the Chair

• To reduce greenhouse gas emissions, we must implement surefooted energy conservation measures. • We can expect the further regulation of environment-related issues. Each internal company business unit and each regional Office must keep abreast of relevant information to enable unhindered compliance. • Each internal company business unit has the responsibility to manage its own safety issues. • Preventing environmental and safety incidents is not just a plant maintenance issue, but also requires adequate systems for management and public response, with periodic training and drills. Responsible Care Committee

8 Responsible Care Activities of the Asahi Kasei Group Overview Asahi Kasei Group

Responsible Care Verification Activities of the Responsible Care Asahi Kasei Group To verify that the Responsible Care program of the Asahi Kasei Group functions appropriately and effectively according to the standards of the JRCC Responsible Care Codes, we commissioned the

Protection Responsible Care Verification Center, an

Environmental independent inspection body established by the JRCC, to examine our operations from March to April 2002. Measures implemented for environmental preservation, operational safety, chemical product safety, workplace safety and hygiene, and physical distribution safety, as well as the overall

Product Safety Responsible Care management system, were Inspection for Responsible Care verification. examined. Results received in a Responsible Care Verification Opinion Statement and Responsible Care Verification Report are being utilized as a guide to further enhance our Responsible Care program. Physical Integrity and Safe Operation Workplace Safety, Hygiene, and Health

Responsible Care Verification Opinion Statement.

Training Responsible Care Reports Education and In addition to the Responsible Care Reports for the Asahi Kasei Group prepared and published annually, several regional Offices are also publishing Responsible Care Reports. Offices which published regional Responsible Care Reports for fiscal 2001 are listed below. Awards in ESH Results Recognition of Outreach

Community Regional Responsible Care Reports. Kawasaki General Management Dept. +81-44-271-2021 Moriyama Safety & Environment Dept. +81-77-581-4081 Fuji Safety & Environment Dept. +81-545-62-2081 Mizushima Safety & Environment Dept. +81-86-458-5080 Environmentally Efficient Products and Technologies Plants Locations and Asahi Kasei Group

9 Responsible Care

ESH Milestones The Asahi Kasei Group has constantly adapted expectations and demands. Notable milestones and modified its ESH and Responsible Care are shown below. programs in accordance with current public

Milestones in the Asahi Kasei Group Public Trends and Developments 1967 Enactment of the Basic Law for Environmental Pollution. 1970 Establishment of Asahi Kasei Group organizations for safety and Antipollution measure session of the Diet. environmental management. • Enactment of environment-related laws. • Establishment of the corporate-level Safety and Environmental • Revision of the Basic Law for Environmental Pollution. Department. • Establishment of Environment and Safety Departments at each administrative and production center. • Enactment of the Environment and Safety Management Regulations as corporate-wide rules. 1971 Establishment of the Environment Agency. 1972 Enactment of the Law on Industrial Safety and Hygiene 1973 Establishment of the Corporate Environment and Safety Committee. Occurrence of several fires and explosions at petrochemical complexes. 1976 Enactment of the Law on the Prevention of Disasters in Petroleum Industrial Complexes and Other Petroleum Facilities. 1980 Establishment of the Environment, Safety and Health Administration, replacing the Safety and Environmental Department. 1981 Establishment of the basic corporate policy for operational safety. Establishment of the Product Safety Department within the Environment, Safety and Health Administration. 1982 Initiation of the first three-year program for safety and environmental Adoption of the Montreal Protocol on Substances That Deplete protection. the Ozone Layer. 1987 1988 First annual Asahi Kasei Group Environment and Safety Symposium. Revision of the Fire Laws (clarification of definitions of dangerous Certification for independent safety management of high-pressure gas plant objects). at Mizushima. 1989 Certification for independent safety management of high-pressure gas plant at Kawasaki. 1992 Awarded the Japan Industrial Safety and Health Association prize. The United Nations Conference on Environment and Development Publication of the first Environment Report. in Rio de Janeiro. 1993 Establishment of the basic corporate policy for environmental preservation. Enactment of the Basic Environment Law. Acquisition of ISO 9000 series certification of quality management systems begins.

1994 Establishment of the corporate-level Quality Assurance and Product Safety Department. Establishment of Quality Assurance Departments at each administrative and production center. Enactment of corporate regulations for product safety management. Establishment of the basic corporate policy for product safety. 1995 Became a founding member of the Japan Responsible Care Council upon Establishment of the Japan Responsible Care Council (JRCC). its establishment. The 1st United Nations Framework Convention on Climate Enactment of corporate regulations for Responsible Care management. Change in Berlin, Germany. Integration of environmental preservation, operational safety, and product The Hanshin earthquake. safety efforts in the corporate Responsible Care initiative. 1996 Confirmed commitment to give precedence to environmental preservation, operational safety, and product safety as an underlying operational policy. 1997 Acquisition of ISO 14001 certification of environmental management The 3rd United Nations Framework Convention on Climate systems begins. Change in Kyoto, Japan. Publication of the first annual Responsible Care Report. 1998 Initiation of the sixth 3-year program for Responsible Care activities. Promulgation of the High Pressure Gas Safety Law. Enactment of the Law concerning the Promotion of the Measures to Cope with Global Warming. 1999 Establishment of the Environment, Safety & Production Technology Enactment of the Law Concerning the Reporting of the Release Administration integrating the Environment, Safety and Health into the Environment of Specific Chemical Substances and Administration, Quality Assurance and Product Safety Department, and Promoting Improvements in Their Management (“PRTR Law”). Production Technology Administration. Enactment of the Law concerning Special Measures against Dioxins. 2000 Revision of basic corporate policies for environmental preservation, product Enactment of the Basic Law for Establishing a Recycling-based safety, and operational safety. Society. 2001 Adoption of internal company business unit configuration. Enactment of the Law concerning the Recovery and Destruction of Fluorocarbons.

10 Overview Environmental Protection Asahi Kasei Group

The Asahi Kasei Group endeavors to continuously review and seek improvements in our efforts to secure

Activities of the environmental preservation and human health and safety in every aspect of all business activities of Responsible Care Asahi Kasei Group the Asahi Kasei Group. Measures implemented with respect to global warming, energy conservation, PRTR, air pollution, water pollution, groundwater and soil contamination, and industrial waste are described below. Protection Environmental

implementation of measures to reduce the ISO 14001 Certification environmental burden. As shown in the table While environmental protection has always been a below, we have obtained ISO 14001 certification key element of our Responsible Care initiative, we at plants in each of our main production facilities. have adopted ISO 14001 standards for In fiscal 2001, the scope of certification at environmental management systems at sites Nobeoka was expanded to include the VDC Product Safety throughout the Asahi Kasei Group to facilitate the Polymer Plant, Asahi Kasei Microsystems, and reevaluation of the environmental effects of our Asahi Kasei Electronics. Progress toward operations advance the efficient and effective certification of additional sites is advancing.

ISO 14001 certification

Sites Date of certification Sites Date of certification Physical Integrity and Safe Operation Kawasaki 1997. 4.21 Ohito 1998. 8.28

Moriyama 1997.12.26 Matsudo Plant 1998.10.19

Mizushima 1998. 3. 6 Fuji 1998.12.25

Asahi Kasei Juko Co., Ltd., Shiga Plant 1998. 3.31 Chiba Plant 1999. 3.26

Asahi Kasei Metals Ltd., Tomobe Plant 1998. 5.18 Nobeoka 1999.10.22 Workplace Safety, Hygiene, and Health Suzuka Plant 1998. 8.21 Shin Nihon Salt Co., Ltd. 1999.10.25

Environmental Burdens

Training The main aspects of our operations which result in Education and environmental burdens are shown in aggregate below.

Main environmental aspects (fiscal 2001 results) Awards in

ESH Results INPUTS OUTPUTS Recognition of SOX: 7,500 tons NOX: 6,400 tons Soot and dust: 310 tons Atmosphenc Priority atmospheric Water 340 million m3 emissions pollutants: 280 tons Greenhouse gas emissions: 5.9 million tons (CO2 equivalent) PRTR release: 2,300 tons 820 million liters

Outreach Asahi

Community Energy* Products (crude oil equivalent) Kasei Group 3 plants Effluent volume: 350 million m Feed- Effluent COD of effluent: 2,200 tons stocks water PRTR release: 170 tons

Release PRTR release: 0 tons to soil Environmentally Efficient Products and Technologies Solid Effluent waste: 138,000tons wastes PRTR transfer: 2,000 tons

Final disposal (landfill): 28,000 tons On-site recycling: 44,000 tons

Plants Off-site recycling: 99,000 tons

Locations and * as defined in the Energy Conservation Law. Asahi Kasei Group

11 Responsible Care

Preventing Global Warming

• Curtailment of emissions of greenhouse gases Reduction in Greenhouse from production processes. Gas Emissions At the Third Conference of the Parties to the For fiscal 2001, greenhouse gas emissions (as United Nations Framework Convention on Climate converted to carbon dioxide equivalent) were Change (COP3) held in Kyoto in December 1997, reduced by 50% from the fiscal 1990 level, far accord was reached regarding the reduction in exceeding Japan’s national target for greenhouse emissions of 6 gases with the capacity to promote gas reduction of 6% from the fiscal 1990 level. global warming. The 6 “greenhouse gases” The reduction was achieved with equipment to targeted are carbon dioxide, dinitrogen monoxide, thermally decompose dinitrogen monoxide (N2O) methane, hydrofluorocarbons, perfluorocarbons, by-product at our adipic acid plant, which was and sulfur hexafluoride. Efforts at the Asahi Kasei brought on line in March 1999 to enable N2O Group for prevention of global warming are as emissions to be reduced by over 90%. Emissions follows: of CO2 from electricity and steam generation in fiscal 2001 were maintained at the fiscal 1990 • Curtailment of carbon dioxide (CO2) emission from level. electricity and steam generation.

Greenhouse gas emissions

14,000 13,200 12,700 SF6 Framework Convention on Climate 11,900 11,800 12,000 12,000 PFC Change 6% reduction The United Nations Framework Convention 9,100 HFC equivalent) 10,000

2 on Climate Change was adopted in 1995 with

2 the objective of stabilizing the concentration 8,000 N O 6,700 of greenhouse gases in the atmosphere to 6,200 6,100 CH4 6,000 5,900 prevent global warming. The Conference of the Parties (COP) to the convention is a CO2 4,000 regular meeting of signatory nations to promote smooth implementation of the

Global warning potential 2,000 accord. The “Kyoto Protocol” adopted at the Third Conference of the Parties (COP3) in

(thousands of tons CO 0 December 1997 defines emission reduction 1990 1995 1996 1997 1998 1999 2000 2001 2001 2002 targets for participating countries. Fiscal year Note: (forecast) •CO2 equivalent conversion in accordance with the Law concerning the Promotion of Measures to Cope with Global Warming. • Both actual results and original forecast for fiscal 2001 shown.

Clean Energy by Hydroelectric Generation The Asahi Kasei Group has seven hydroelectric power generation plants. The clean energy generated at these plants supplies 11% of our energy needs.

Electricity sources (fiscal 2001)*

Hydoroelectric 11% Purchased 18% Thermal Hydoroelectric plant. 71%

* For six main sites: Nobeoka, Mizushima, Fuji, Moriyama, Kawasaki, and Ohito.

12 Environmental Protection Overview Asahi Kasei Group

Alleviating the Environmental Measures Related to Company- Activities of the Responsible Care Asahi Kasei Group Effects of Product Distribution owned Vehicles and Commuting

Throughout the Asahi Kasei Group, efforts to The Asahi Kasei Group owns about 2000 vehicles reduce energy consumption and moderate the for use in marketing activities and within plant overall environmental effects of product grounds. At present, about 5% of these, primarily distribution primarily comprise the following forklifts and other vehicles used within plant Protection

Environmental measures. grounds, are either natural gas or electric powered low-emission vehicles. We are increasing the • Increasing sales lot sizes to reduce the number number of low-emission vehicles through a phased of shipments. transition when older vehicles need to be replaced. •Implementing product swaps with other We are also encouraging employees who producers for commodity products with commute to work by car to use public common quality standards, to shorten shipping transportation instead. Where public transportation

Product Safety distances. is impractical or unavailable, we are encouraging • Changeover from shipment by road to shipment drivers to “stop idling” to reduce fuel consumption. rail and coastal sea lanes. Physical Integrity and Safe Operation

Energy Conservation For maximum effective utilization of limited natural conserve energy include production process Workplace Safety,

Hygiene, and Health resources, the Asahi Kasei Group constantly innovations, thorough recovery of steam, control strives to increase efficiency and thoroughly of energy losses, and installation of inverters to conserve resources and energy. control electric motors. As shown below, the Since fiscal 1993, we have had a target of 1% results have surpassed the target each year. average annual reduction in unit energy

Training consumption, as required by the Law Concerning

Education and the Rational Use of Energy (known generally as the “Energy Conservation Law”). Measures to

Unit energy consumption* 100

Target Awards in 90 ESH Results Recognition of

80

70

Index (fiscal 1993=100) 60 Outreach Community 50 1993 1994 1995 1996 1997 1998 1999 2000 2001 Fiscal year * In terms of kiloliters crude oil equivalent per tons product output, as converted to benchmark product. Environmentally Efficient Products and Technologies Plants Locations and Asahi Kasei Group

13 Responsible Care

PRTR In concert with Responsible Care, the Japanese chemical industry, centered on the Japan Chemical Industry Association, has since 1995 implemented a voluntary program for Pollutant Release and Transfer Register (PRTR). Efforts have been made to reduce release and transfer, and results have been reported each year. In April 2001, the PRTR Law came into effect, with mandatory reporting. In fiscal 2001, 103 applicable substances were handled in the Asahi Kasei Group, with 2300 tons released to the atmosphere, 170 tons released to water, no release to soil, and 2000 tons transferred as components of waste. Principal releases (of ten tons or more) and transfers are shown below.

PRTR Pollutant Release and Transfer Register Under the PRTR Law, releases to the atmosphere and off-site transfers of specific hazardous chemical substances must be monitored and recorded for each production facility and operating site. Results are reported to the government which publishes aggregate results.

Principal releases and transfers for fiscal 2001 (tons/year)

Releases to: Total Site Substance Transfers Atmosphere Water Soil release Nobeoka Carbon disulfide 630 2 0 632 0 Aqueous zinc compounds 0 51 0 51 38 1,1-Dichloroethylene 29 0 0 29 1 Ethylene glycol 0 21 0 21 153 Tetraflouroethylene 17 0 0 17 0 Trichlorotrifluoroethane 15 1 0 16 0 Hydrogen fluoride and its aqueous salts 0 16 0 16 2 Dichloropentafluoropropane 15 0 0 15 4 Vinyl chloride 14 0 0 14 0 N,N-dimethylformamide 0 14 0 14 0 Toluene 9 2 0 11 103 Mizushima Styrene 30 1 0 31 94 Acrylonitrile 8 6 0 14 21 Molybdenum and its compounds 0 10 0 10 0 Moriyama Dichloromethane 40 0 0 40 2 Fuji Tetrachloroethylene 49 0 0 49 2 Acrylonitrile 30 0 0 30 0 1,3,5-Trimethylbenzene 24 0 0 24 1 Xylene 21 0 0 21 4 Ohito Dichloromethane 27 0 0 27 135 Kawasaki Methyl acrylate 41 2 0 43 4 Methyl methacrylate 46 1 0 47 61 Other 1-Chloro-1,1-difluoroethane 450 0 0 450 0 sites Chloroethane 330 0 0 330 0 1,3,5-Trimethylbenzene 216 0 0 216 6 Dichloromethane 69 0 0 69 2 Xylene 62 0 0 62 0

14 Environmental Protection Overview Asahi Kasei Group Activities of the Responsible Care

Asahi Kasei Group Preventing Air Pollution

Reduction of Hazardous Atmospheric Pollutants achieving a 60% reduction in fiscal 2001. Protection Notable measures implemented to achieve this Environmental The Asahi Kasei Group implemented a voluntary reduction include reducing the relative gas program to achieve a 30% reduction from the composition of dichloromethane used as a fiscal 1995 level of hazardous atmospheric foaming agent component, and increasing the pollutant release by fiscal 1999. This target was capacity of equipment for the recovery of exceeded, and a 45% reduction was achieved for tetrachloroethylene. fiscal 1999. We then set a new target for 70% reduction from the fiscal 1999 level by fiscal 2003, Product Safety and we are well on the way to meeting this target,

Hazardous Atmospheric Pollutants Japan’s Air Pollution Control Law defines hazardous atmospheric pollutants as substances which, as sources of atmospheric pollution, are believed to damage human health in case of continuous Release of dichloromethane

Physical Integrity exposure. The Central Environment Council has

and Safe Operation 600 570 prepared a list of substances, and specified 22 540 substances for priority action based on evidence of a 500 495 490 high level health risk. The Air Pollution Control Law 480 also requires corporations to curtail and control 400 atmospheric release of hazardous atmospheric 340 pollutants on their own initiative. The following 12 300

substances have been identified for control due to Release (tons/year) the large amounts of their production and Workplace Safety, 200 Hygiene, and Health importation, relatively well established understanding 140 150 of their behavior in the atmosphere, and recognition 100 80 of their long-term toxicity: Acrylonitrile, acetaldehyde, 56 vinyl chloride monomer, chloroform, 1,2-dichloroethane, 0 dichloromethane, tetrachloroethylene, trichloroethylene, 1995 1996 1997 1998 1999 2000 2001 2001 2002 2003 1,3-butadiene, benzene, formaldehyde, and sulfides Fiscal year

Training (forecast) and sulfates of nickel. The Japan Chemical Industry Release of 1,3-butadiene Education and Association recommends substitution of ethylene oxide 600 in this list in place of sulfides and sulfates of nickel, as member companies only handle the latter in nominal 500 amounts. 420 400 370 370

300 Awards in Release (tons/year) ESH Results Recognition of 200

83 100 26 15 10 9 9 8 0 1995 1996 1997 1998 1999 2000 2001 2001 2002 2003 Fiscal year (forecast) Outreach Community Formaldehyde Release of priority atmospheric pollutants Release of tetrachloroethylene 1,400 200 Benzene 1,300 1,300

1,3-Butadiene 1,200 1,200 160 160 150 Ethylene oxide 150 1,000 Trichloethylene 880 120 800 730 Tetrachloroethylene 100 94 92 Release (tons/year) Environmentally 600 Release (tons/year) Efficient Products and Technologies 1,2-Dichloroethane 79 73 540 70 Dichloromethane 400 48 310 50 Chloroform 280 230 200 200 Vinyl chloride monomer 0 0 Acetaldehyde 1995 1996 1997 1998 1999 2000 2001 2001 2002 2003 1995 1996 1997 1998 1999 2000 2001 2001 2002 2003 Plants Acrylonitrile Fiscal year Fiscal year (forecast) (forecast) Locations and Asahi Kasei Group

15 Release of acrylonitrile Release of vinyl chloride 200 100 Responsible Care

80 150 63 60 61 110 110 110 60 53 100 100 84 40 Release (tons/year) Release (tons/year) 51 23 21 50 45 40 38 36 20 14 998

0 0 1995 1996 1997 1998 1999 2000 2001 2001 2002 2003 1995 1996 1997 1998 1999 2000 2001 2001 2002 2003 Fiscal year Fiscal year (forecast) (forecast) Release of benzene Relese of 1,2-dichloroethane 50 50

40 40

30 30

20 20 Release (tons/year) Release (tons/year) 12 10 10 99 10 10 9 9 10 8 6 6666 66 665 3 0 0 1995 1996 1997 1998 1999 2000 2001 2001 2002 2003 1995 1996 1997 1998 1999 2000 2001 2001 2002 2003 Fiscal year Fiscal year (forecast) (forecast) Release of ethyene oxide Relese of acetaldehyde 50 50

40 40

30 30

20 20

Release (tons/year) Release (tons/year) no data 10 10 6 55 5 5 4 4 4 4 33 3332 1 0 0 1995 1996 1997 1998 1999 2000 2001 2001 2002 2003 1995 1996 1997 1998 1999 2000 2001 2001 2002 2003 Fiscal year Fiscal year (estimated) (forecast) (forecast) Release of trichloroethylene Release of formaldehyde 50 50

40 40

30 30

20 20 Release (tons/year) Release (tons/year)

10 10 6 7 6 2 5 444 2222222 3 4 111 0 0 1995 1996 1997 1998 1999 2000 2001 2001 2002 2003 1995 1996 1997 1998 1999 2000 2001 2001 2002 2003 Fiscal year Fiscal year (forecast) (forecast) Release of chloroform 50 Other sites

Oita 40 Suzuka

30 Kawasaki

Ohito 20 Fuji Release (tons/year) 10 Moriyama Mizushima 0.3 0.3 0.3 0.2 0.3 0.2 0.2 0.2 0.2 0.2 0 Nobeoka 1995 1996 1997 1998 1999 2000 2001 2001 2002 2003

Fiscal year (forecast)

16 Environmental Protection Overview Asahi Kasei Group

SOX, NOX, Soot and Dust Total SOX emissions Activities of the Responsible Care Asahi Kasei Group 50,000

Sulfur oxides (SOX) are the most stringently 40,000 Permissible level* regulated air pollutant in Japan. The Asahi Kasei X Group has reduced SO emissions through 30,000 installation of flue gas desulfurization apparatus, Protection use of low-sulfur fuel oil, use of low-sulfur by- 20,000 Environmental product fuel from ethylene production, and 11,700 10,400 changeover from fuel oil to LNG (liquefied natural Emission (tons/year) 9,200 10,000 8,400 8,600 8,500 7,500 gas). As a result of such measures, total SOX emissions in fiscal 1993 were reduced to 30% of 0 the fiscal 1976 level. 1995 1996 1997 1998 1999 2000 2001 Measures to suppress emissions of Fiscal year oxides (NOX) include installation of apparatus for

Product Safety Total NOX emissions their removal from flue gas and improvements to the combustion process by using burners which 12,000 reduce NOX formation. Suppression of soot and Permissible level* dust emissions has been achieved through the 10,000 installation of electric dust collectors for their 8,000 removal from flue gas and the effects of 6,800 6,000 6,200 6,300 6,400 changeover to cleaner burning fuels. 6,000 5,800 6,100 Physical Integrity

and Safe Operation Emissions have been consistently maintained 4,000 well below regulatory limits, meeting the stringent Emission (tons/year) standards set in accords with local authorities and 2,000 voluntary corporate targets for emission control. 0 1995 1996 1997 1998 1999 2000 2001 Fiscal year Workplace Safety, Hygiene, and Health Total soot and dust emissions 6,000 Permissible level* Sulfur oxides (SOX) 5,000

Sulfur oxides are formed when crude oil, fuel oil, or coal 4,000

Training containing sulfur are used as fuel, or when industrial wastes containing sulfur are incinerated. Sulfur dioxide

Education and 3,000 (SO2) is most common, but some sulfur trioxide (SO3) also forms. The term SOX is inclusive of both of these. 2,000 Emission (tons/year) 1,000 420 450 400 Nitrogen oxides (NOX) 370 330 300 260 0 Nitrogen oxides are formed in nature and during 1995 1996 1997 1998 1999 2000 2001

Awards in combustion at thermal power plants, factory boilers, Fiscal year ESH Results

Recognition of internal combustion engines, and incinerators. The term NOX is inclusive of both nitric oxide (NO) nitrogen dioxide (NO2).

* At some sites, regulation by total pollutant amount Other sites Outreach

Community applies for some pollutants in addition to concentration limits. Permissible levels shown are the sums of gross Oita emission limits where they apply and concentration limits Suzuka times amount of emitted gas where they do not. Permissible levels therefore fluctuate from year to year with Kawasaki fluctuations in production volumes. Ohito

Fuji

Moriyama Environmentally Efficient Products and Technologies Mizushima

Nobeoka Plants Locations and Asahi Kasei Group

17 Responsible Care

Preventing Water Pollution Measures implemented throughout the Asahi Kasei Group have resulted in a significant Chemical oxygen demand reduction in the amount of pollutants in effluent (COD) water. As shown at right, chemical oxygen Chemical oxygen demand is an demand (COD) of effluent - which indicates the indicator of water pollution by level of pollution - has been maintained well organic matter. COD is expressed below permissible levels at all sites in terms of in terms of the amount of oxygen both COD loads and total COD. required to chemically oxidize the organic matter contained in the water by an oxidizer. During fiscal 2001, an operational error resulted in an abnormally large release of sodium hypochlorite into effluent waste water which Total COD of effluent flowed into a river, killing about 30 fish. Following 7,000 Permissible level* this incident, urgent instructions mandating 6,000 thorough control of effluent water were sent to all

/year) 5,000 Asahi Kasei Group facilities to eliminate the 3 recurrence of any such release. 4,000

3,000 2,200 2,200 2,000 2,000 2,000 2,000 2,100 2,000

Effluence (million m 1,000

0 1995 1996 1997 1998 1999 2000 2001 Fiscal year

Total effluent water volume Other 500

Oita 400 360 Suzuka 350 360 350 350 340 340 /year) Kawasaki 3 300

Ohito 200 Fuji

Moriyama COD (million m 100

Mizushima 0 Nobeoka 1995 1996 1997 1998 1999 2000 2001 Fiscal year

* At some sites, regulation by total COD applies in addition to COD concentration limits. Permissible levels shown are the sums of total COD limits where they apply and concentration limits times amount of effluent water where they do not. Permissible levels therefore fluctuate from year to year with fluctuations in production volumes.

Groundwater and Soil Contamination As described in our previous reports, groundwater To the extent possible, soil in the vicinity of the samples taken in fiscal 1998 near the boundary of buried wastes was immediately removed, and an the plant grounds at two sites in Nobeoka ongoing program to draw the affected exceeded the permissible contamination level for groundwater for purification by treatment with chlorinated hydrocarbons. The cause of this activated charcoal was begun. In addition, new contamination was determined to be by-product purification methods are being examined, and and residue containing chlorinated hydrocarbons implemented on a trial basis. which had been disposed of underground prior to their being designated as hazardous substances.

18 Environmental Protection Overview Asahi Kasei Group Activities of the Responsible Care

Asahi Kasei Group Reduction of Industrial Waste In addition to reducing the amount of waste target. Each internal company business unit and generation, efforts are also focused on recycling regional Office has prepared goals and plans and other measures to reduce the amount of toward this objective, and progress began in fiscal waste for final disposal. Loads of industrial waste 2001.

Protection for off-site treatment and disposal are recorded For fiscal 2001, off-site final disposal waste

Environmental and managed using manifests, and our personnel volume nevertheless increased from the previous periodically observe the operations of outside firms year. This was due to a number of one-time items consigned to treat and dispose of waste. including plant closure, new plant construction, and disposal of obsolete incinerators which could not be made compliant with emerging emissions Reduction of Off-site standards for dioxins.

Product Safety Final Disposal Volume As the shortage of landfill sites in Japan has become increasingly serious, reduction of waste disposal volumes has become an urgent problem in recent years. In fiscal 2001, recycling-related efforts were heightened nation-wide as laws Zero emission of wastes associated with the Basic Law for Establishing a Achieving a final landfill disposal

Physical Integrity Recycling-based Society including the Electric

and Safe Operation volume of zero involves measures to Household Appliance Recycling Law and the Law minimize the amount of waste for Promotion of Effective Utilization of Resources generated, and reusing or recycling as came into effect. feedstock or material for other The volume of waste generated at the Asahi industrial processes. Kasei Group is minimized through processes optimization, and useful substances are recovered

Workplace Safety, for reuse or recycling as feedstock or material for Hygiene, and Health other production processes. As shown in the graph below, the volume of industrial waste transferred off site for final disposal was reduced by approximately three-fourths between fiscal 1993 and fiscal 1999. Training The Asahi Kasei Group has set the reduction of Education and waste emission to zero by 2010 as a stretch

Off-site final disposal waste, by category (fiscal 2001) Off-site final disposal waste volume Construction debris 120 4% Others 102 102 Awards in

ESH Results 8% 100 Recognition of 90 Sludge 38% 80 Plastic waste 68 62 28% 60 49 Glass, ceramics 40 22% 27 27 28

Outreach 20 Community Volume (thousands of tons)

1993 1994 1995 1996 1997 1998 1999 2000 2001 Fiscal year *Not including wastes generated from dismantling old homes when constructing new homes sold by Asahi Kasei Group housing operations. Environmentally Efficient Products and Technologies Plants Locations and Asahi Kasei Group

19 Responsible Care

Waste treatment and disposal (fiscal 2001)

On-site treatment Off-site treatment

Volume reduction Volume reduction Recycling (incineration, Recycling (incineration, dehydration) dehydration) 44(12%) 183(50%) 99(27%) 11(3%)

Effluent waste Waste generated

365(100%) 138(38%) Landfill Final disposal

028(8%)

(thousands of tons)

Recycling Throughout the Asahi Kasei Group, the amount of and minimizing use of packing materials. Wastes waste for disposal has been reduced by effective which are generated at the building site are utilization of resources through reuse and recycling separated and collected by material to facilitate of wastes. For example, sludge and coal ash is recycling. Supply agreements have been recycled as feedstock for cement. Recycling concluded with plasterboard makers and other efforts for construction material wastes and for construction materials manufacturers which can chemical recycling of PET bottles are described effectively utilize these wastes as feedstock below. materials. As a result of measures implemented thus far, wastes for final disposal were reduced Recycling of construction material wastes from 19,000 tons in fiscal 2000 to 12,000 tons in Wastes handled by our Housing internal company fiscal 2001. business unit include trimmings and packing materials from new construction, and waste Reduction of waste from dismantling of old homes generated from the dismantling of old homes to be In advance of the May 2000 Construction Material replaced. In each case, wastes are thoroughly Recycling Act coming into effect, we have begun separated by material to facilitate recycling and implementing dismantling of old homes and reduction of final disposal amounts. separating wastes by material to facilitate recycling. As with waste from new construction, Reduction of industrial waste generated in new we have concluded agreements with construction construction materials manufacturers for the effective utilization Generation of waste is reduced by precutting of these wastes. Waste for final disposal was materials and modular preassembly at the factory, reduced from 30,000 tons in fiscal 2000 to 18,000 tons in fiscal 2001.

20 Environmental Protection Overview Asahi Kasei Group

Chemical recycling of PET bottles disposal. A plant with a capacity of 3000 En

Activities of the Chemical recycling technology has long been used tons/year - equivalent to 100 million 500 mL PET Responsible Care Asahi Kasei Group to recover polyester feedstocks from waste fiber bottles - has been completed, with post- generated in the polyester filament plant of our consumer bottles for recycling to be obtained from We hav Fibers & Textiles internal company business unit. local government bodies and private-sector firms Environm Development of a large-scale process to recover in Nobeoka and surrounding areas. In fiscal 2001, Guideline polyester feedstocks from post-consumer PET 200 tons or about 6 million 500 mL PET bottles Accountin bottles was completed in fiscal 2000. This were recycled, and operation is growing. the Env Protection

Environmental outstanding new process enables the recovery of Polyester filament made from recycled PET bottles implemen feedstocks of purity equivalent to that of is being marketed as EcosensorTM, and sales are fiscal 20 feedstocks derived from the conventional polyester expanding. performe route. Further, reaction residue can be used as Chemical fuel in electricity generation and as a cement Home P feedstock, enabling operation with no wastes for classificat Environm

Product Safety increment based on

Environm Plastics Pollution costs rep

Physical Integrity Chemical and Safe Operation categorie Chemical recycling PET chips from Recycled feedstocks. Apparel made from expenses plant. used beverage bottles. recycled polyester. and wate cost inclu waste an industrial developm Workplace Safety, Hygiene, and Health developm and of tec solvent c Investments for ESH, Environmental Accounting mitigate pollutants Training and safety measures began in 1970, when the processe Education and Safety and Environmental Department (presently reduce ESH-related Investments the Environment, Safety & Production Technology Environm Administration) was established. As shown in the imposed Environmental protection and safety measures figure below, these investments averaged Damage C have long been an important priority in the approximately ¥4 billion per year. Figures do not Econom investment of management resources at the Asahi include the portion of investment in new plant and on sale

Awards in Kasei Group. A record of investments in plant and equipment related to environment and safety, or decrease ESH Results Recognition of equipment modifications related to environmental investment related to energy conservation. reduction expenses effects inc hazardou tetrachlor Investment in environmental and safety modification air and w

Outreach 140 14 X

Community NO emis permissib 120 12

100 10 Per year (right-hand scale) 80 8

60 6 Billions of yen Environmentally Billions of yen Efficient Products and Technologies 40 4

20 2

0 0 Plants 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00

Locations and Fiscal year Asahi Kasei Group

21 Responsible Care

Chamical and Plastics environmental accounting Environmental Accounting (Millions of yen) Investment Expense We have prepared Asahi Kasei Group Combined operating area cost 400 3,020 Environmental Accounting Guidelines following the Guidelines for Adoption of Environmental Pollution prevention cost 290 2,220 Accounting Systems published by the Ministry of Global environmental protection cost 20 100 the Environment in May 2000. Trial comprising: Resource circulation cost 90 710 implementation of environmental accounting for Upstream and downstream cost 0 20 fiscal 2001 based on these guidelines was Management cost 10 680 performed at two internal companies, the Research and development cost 40 530 Chemicals and Plastics Company and Fabricated Community outreach cost 0 70 Home Products Company. Results of cost classification through this trial are shown below. Environmental damage cost 0 150 Environmental accounting will be expanded Total 450 4,480 incrementally throughout the Asahi Kasei Group based on the results of these trials. Environmental accounting at Fabricated Home Products Environmental accounting at Chemicals and The most substantial costs for Fabricated Home Plastics Products in fiscal 2001 were for pollution Pollution prevention and the related management prevention, including maintenance and control costs represented a large portion of the cost for expenses for anti-pollution equipment and Chemicals and Plastics in fiscal 2001. These investments in equipment to curtail the release of categories included operating and management hazardous atmospheric pollutants, and for expenses for processing facilities to prevent air measures to reduce emission of wastes to zero, and water contamination. Resource circulation shown in the table as resource circulation cost. cost included expenses for processing industrial Research and development cost was for waste and for measures to reduce the amount of technologies for solvent changeover and industrial waste generated. Research and biodegradable film. Upstream and downstream development cost included expenses for cost was the cost to recycle Saran WrapTM development of environment-friendly products, packaging into new products in accordance with and of technologies for recycling waste plastic, for the Container and Packaging Recycling Law. solvent changeover and other modifications to Community outreach cost was mainly for mitigate the release of hazardous atmospheric gardening in plant grounds, and environmental pollutants, to conserve energy in production damage cost was mainly for purification of processes, for resource conservation, and to contaminated groundwater. reduce the amount of waste generated. Material effects included a 65% decrease in the Environmental damage cost was an assessment release of hazardous atmospheric pollutants such imposed pursuant to the Pollution-related Health as dichloromethane compared to fiscal 2000. Damage Compensation Law. Economic benefits included a ¥7.3 million gain Fabricated Home Products environmental accounting on sale of valuable material, a ¥1.3 million (Millions of yen) decrease in waste processing costs due to the Investment Expense reduction in waste, and a ¥85.0 million decrease in Combined operating area cost 410 590 expenses due to energy conservation. Material Pollution prevention cost 50 170 effects included a 60% decrease in the release of hazardous atmospheric pollutants such as Global environmental protection cost 0 20 tetrachloroethylene compared to fiscal 1999. All comprising: Resource circulation cost 360 400 air and water quality standards, including SOX and Upstream and downstream cost 0 10 NOX emissions were maintained well within the Management cost 0 100 permissible range. Research and development cost 0 330 Community outreach cost 10 30 Environmental damage cost 0 10 Total 420 1,070

22 Overview Product Safety Asahi Kasei Group

As an integral part of our Responsible Care organization and managerial activities focus all

Activities of the initiative, implementation of the product safety day-to-day operations on the achievement and Responsible Care Asahi Kasei Group effort is based in the Responsible Care maintenance of product safety. organization. In accordance, the corporate Product Safety Organization Implementation of Each internal company business unit holds Product Safety Activities Protection responsibility to implement and maintain the basic Each internal company business unit implements Environmental corporate policy and activities for the control of its product safety activities following its plans, targets own product quality and safety, as appropriate to and policies. Results of implementation are the needs and requirements of its product sector, audited and a plan-do-check-act cycle is applied while the General Manager of the Environment, based on their operations. Safety & Production Technology Administration Risk assessments concerning human safety and and the Quality Assurance & Product Safety health and the effects on the environment are Department promote and coordinate the performed for individual products, and product Product Safety implementation of product safety activities in safety is ensured by applying the results of these accord with this policy throughout the corporation. assessments. Whenever there is a change in a product, the results of risk assessments are Group-wide Product Safety System reviewed to ensure against any omission. Each internal company business unit prepares specific product safety plans and targets to be Securing Product Safety Physical Integrity

and Safe Operation implemented through a plan-do-check-act cycle in for the Customer accordance with corporate regulations, guidelines, In addition to ensuring the safety of products and standards for product safety, which are based themselves, product safety information is provided on the Asahi Kasei Responsible Care Principles to customers in the form of instructions for and Responsible Care Guidelines. product handling and use and material safety data Results of implementation are audited by the sheets as part of the effort to secure safety General Manager of the Environment, Safety & throughout the product life cycle from use to Workplace Safety,

Hygiene, and Health Production Technology Administration and disposal. reported to the Responsible Care Committee. Corporate regulations, guidelines, and standards for product safety are then revised to reflect these results. Training Education and

Risk assessment Material safety data sheet This is the quantitative evaluation of the effects on (MSDS) Awards in

ESH Results health and the environment. The evaluation and Data sheets containing Recognition of estimation of whether or not chemical substances in information related to the safety of the environment have effects on human health or the chemical products, MSDSs for environment comprises four processes: Hazard each product are provided by the identification, characterization of the relationship supplier to all firms involved in between doses of chemical substances and the use and handling to prevent severity of adverse health effects, exposure accidents involving the product. assessment, and risk characterization. In this sense, Outreach

Community “risk” means a combination of the probability and severity of injury or health damage occurring. Environmentally Efficient Products and Technologies Plants Locations and Asahi Kasei Group

23 Responsible Care

Managing Chemical Substances

Knowledge of All Chemical Providing Safety Information Substances Handled to Relevant Parties A comprehensive listing of all chemical substances Safety information for chemical substances and handled in the Asahi Kasei Group as feedstocks, chemical products are provided to employees, intermediates, products, and process materials customers, physical distribution firms, and other has been prepared. The list includes relevant related members of the public in the form of regulations in Japan and other countries, hazard MSDSs, Yellow Cards (Transport Emergency information, and premissible concentrations in the Cards), technical manuals, and product brochures. workplace environment. The list is utilized in the All safety information whose provision to daily ESH effort of each internal company business customers and other relevant parties is required by unit. Each year, specialist staff update and revise law is provided in MSDSs. MSDSs are being the list to ensure that information regarding the reformatted in accordance with the revised chemical substances handled, relevant recommendations of the Japan Chemical Industry regulations, and hazards are kept up-to-date. Association, with the changeover scheduled for completion during fiscal 2002. Collecting Safety Information for Each Chemical Substance

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

Corporate regulations for product An MSDS. safety management.

24 Product Safety Overview Asahi Kasei Group Activities of the Responsible Care

Asahi Kasei Group International Efforts for Chemical Safety Through our membership in the Japan Chemical research efforts to advance the safe management Industry Association (JCIA), the Asahi Kasei Group of chemical substances. is an active participant in voluntary international Protection Environmental (ICCA) HPV Initiative in fiscal 1999, with regard to High Production Volume (HPV) ten chemical substances. Chemical Initiative An international consortium has been established to perform the evaluation work of the The Asahi Kasei Group began participation in the HPV initiative, through the close cooperation of International Council of Chemical Associations participating companies throughout the world. Product Safety

The ICCA HPV Initiative In 1990, the Organization for chemical substances were subject to HPV Initiative in concert with the Economic Cooperation & evaluation, progress was slow to OECD. The ICCA designated the Development (OECD) began obtain: By the end of 1999 the completion of evaluation of all promoting the gathering of safety evaluation of only 150 substances substances produced in volumes of data for HPV chemicals (1000 was completed, with another 250 in 1000 tons/year or more in two or

Physical Integrity tons/year or more produced in one or progress. more countries by 2004 as a target. and Safe Operation more countries) for which existing Realizing the inadequate state of Work is now in progress coordinated safety data is inadequate to enable progress, in 1998 the ICCA by the chemical industry associations their risk assessment and determined to bring the efforts and of Japan, the US, and the EU. determination of the need for their resources of the world chemical control. However, as over 4000 industry to bear in advancing the Workplace Safety, Hygiene, and Health systems, administration, planning specific research Long-range Research Initiative (LRI) projects, and selection of research subjects. We continue to take a leading role in the advancement Through our membership in the Japan Chemical of LRI worldwide, including participation in

Training Industry Association (JCIA), the Asahi Kasei Group international conferences and discussions with

Education and is an active participant in the LRI. We have been a researchers at overseas universities. member of the LRI since its initial stage, and have contributed to the establishment of research

The LRI Initiative The LRI is a long-term research The JCIA is actively supporting LRI, has been limited to eliminate the Awards in

ESH Results program to increase scientific and research work began in fiscal possibility of bias. Recognition of knowledge regarding the effects of 2000. The actual research is carried out chemical substances on health and Because LRI relies on corporate- on consignment by independent the environment, carried out by the directed research, there is strong research institutions. With the chemical industry associations of public concern that the administration exception of work consigned Japan, the US, and Europe to of the initiative be impartial, that the supplementally to research already in promote the safe handling and use of subjects of research be proper and progress, subjects of research are chemical substances. LRI involves valid, that the research process be adopted after broad canvassing and Outreach Community research on a scale and depth that is transparent, and that the results be rigid screening, including by the beyond the capabilities of completely open. To ensure researchers of the peer-review corporations working individually. impartiality, a peer-review committee committee. In fiscal 2002, the JCIA The results of the LRI will be used to composed of researchers who have is advancing research in four fields: assist public policy decision-making, no conflict of interest with the Endocrine disrupter, chemical and are also expected to make a chemical industry has been carcinogenesis, hypersensitivity, and valuable contribution to the established, and the scope of activity neurotoxicity. enhancement of Responsible Care. of corporations participating in LRI Environmentally Efficient Products and Technologies Plants Locations and Asahi Kasei Group

25 Responsible Care

ISO 9000 Series Certification

Adoption of ISO 9000 Series Systems Compliance with ISO 9000:2000 The Asahi Kasei Group was one of the earliest in As a result of the transition to internal company the chemical industry to obtain ISO 9000 series and divisional business unit-scope certification, the certification for its quality management systems. Asahi Kasei Group was already substantially in During 1993 and 1994, we obtained ISO 9002 compliance with the ISO 9000:2000 standards certification for our production sites in Mizushima, when they were published. We nevertheless Nobeoka, Kawasaki, Fuji, Moriyama, and Suzuka. prepared corporate guidelines for compliance with Subsequently, to further enhance our quality the 2000 revision in order to further heighten the management, ISO-compliant systems were efficiency and effectiveness of our quality adopted for product design, development, management systems. In fiscal 2001, Fabricated marketing, and physical distribution functions. Home Products became the second internal Beginning in 1996, we began a transition of the company business unit to attain compliance with scope of certification to internal company and ISO 9000:2000, following Fibers and Textiles in divisional business units, and nearly all products fiscal 2000. Revision of quality management are now certified under ISO 9001 by business unit. systems throughout other internal companies is These quality management systems have also advancing toward compliance throughout the been valuable in the systematic review of a variety Asahi Kasei Group. of activities related to product safety.

ISO 9000 series certification

Registered entity Date of initial reg. Registration No. Chemicals & Plastics Company November 11, 1993 ISO9001-JQA0374 Internal company Performance Plastics & Compounds Company November 11, 1993 ISO9001-JQA3013 business units Fabricated Home Products Company December 15, 1993 ISO9001-JQA0344 Fibers & Textiles Company July 8, 1994 ISO9001-JQA0549 Industrial Membranes Div. February 21, 1994 ISO9001-JQAQM4618 Electronics Materials Div. April 7, 1995 ISO9001-JQAQM3841 Imaging Products Div. April 7, 1995 ISO9001-JQAQM5364 Divisions Ion Exchange Membranes Div. March 31, 1997 ISO9001-JQA1668 Metal Cladding, Explosives Div. August 1, 1998 ISO9001-98QR120 Industrial Explosives, Explosives Div. October 23, 1998 ISO9001-JQA2717 Fastening Products, Explosives Div. March 12, 1999 ISO9001-JQA3154 Defense Explosives, Explosives Div. September 27, 1999 ISO9001-BSK0041 Tohmi Plant, Huga Chemicals Plant, others (Nobeoka Office) August 7, 1998 ISO9002-JQA0350 Plants Production Control Dept., Construction Materials Works April 24, 1998 ISO9001-JQA2308 Wakayama Plant August 21, 1998 ISO9001-JQA2587 Asahi Kasei Microsystems Co., Ltd. June 9, 1995 ISO9001-JQA0899 Asahi Kasei Color Tech Co., Ltd. January 12, 1998 ISO9001-JCQA0278 Companies or Asahi Kasei Techno Plus Co., Ltd. August 5, 1998 ISO9001-SGS/J51/98 Divisions Shin Nihon Salt Co., Ltd. October 5, 1998 ISO9001-JCQA0376 System Integration Div., Asahi Kasei Jyoho System Co., Ltd. September 23, 1999 ISO9001-JQAQM3579 Asahi Kasei Finechem Co., Ltd. December 28, 1999 ISO9001-JQAQM4180 Mizushima Plant, Asahi Kasei Epoxy Co., Ltd. January 10, 1994 ISO9001-JQA0369 Oita Plant, Asahi Medical Co., Ltd. November 10, 1994 ISO9001-BSI Nobeoka Plant, Asahi Medical Co., Ltd. November 14, 1995 ISO9001-BSIFM32751 Plants Moriyama Plant, Asahi-Schwebel Co., Ltd. October 20, 1995 ISO9001-JQA1006 Subsidiaries and affiliates Tomobe Plant, Asahi Kasei Metals Ltd. April 22, 1996 ISO9001-JCQA0133 Nobeoka Plant, Asahi Kasei Electronics Co., Ltd. June 7, 1996 ISO9002-JQA1301 Mizushima Plant, Sanyo Petrochemical Co., Ltd. January 9, 1998 ISO9001-JQA0305 Note: Due to changes in scope of registration, dates of initial registration shown above do not correspond to certification date for all products handled by each entity registered.

26 Overview Physical Integrity and Safe Operation Asahi Kasei Group

Responsible Care at the Asahi Kasei Group Asahi Kasei Group which will eliminate the

Activities of the encompasses measures to prevent plant and occurrence of any such incident. July 2002 was Responsible Care Asahi Kasei Group equipment accidents. These measures include designated Operational Safety Month, with making safety a primary consideration both in the thoroughgoing and pervasive inspections to planning, design, installation, and control of plant expose all cases of dangerously aged plant and and equipment, and in training to ensure safe equipment, inspection lapses, and any other operation and proper response in the event of any potential source of danger; appropriate measures abnormality. are being implemented to rectify all problems Protection

Environmental Despite these efforts, a serious fire occurred at discovered. In addition, Operational Safety our Leona Plant in Nobeoka on March 12, 2002. Symposiums are being held at each site location Our examination of this incident has yielded to heighten alertness to and understanding of valuable lessons which will help ensure against any potential safety issues. recurrence, and has redoubled our determination to implement robust measures throughout the

System for inspection prior to capital investment Product Safety Pre-investment Inspection System Plans for new construction or plant expansion Our system for inspection prior to capital investment is an essential facet of our effort to secure safe, accident-free operation. When there Preparation of ESH management plan are plans for a significant investment in plant and equipment, we employ a system of checks to Physical Integrity and Safe Operation ensure sound accident prevention and response, Inspection by party with environmental protection, product safety, and responsibility for ESH oversight workplace safety, hygiene, and health. Any potential problem revealed in the checking process is resolved before initiating the Revision of ESH management plan investment. (when necessary) Prior to a significant land purchase, new plant Workplace Safety,

Hygiene, and Health construction, or plant expansion, an ESH management plan is prepared for inspection by Approval the General Manager of the Environment, Safety & Production Technology Administration, who inspects the plan from an independent perspective

Training in his responsibility for oversight of ESH. Plans

Education and only proceed upon gaining approval following this inspection. An ESH management plan comprises a description of the plans for construction, a list of the relevant regulations, a list of substances handled, and plans for crisis prevention and management, environmental management, Awards in ESH Results

Recognition of management of workplace safety and hygiene, an evaluation of safety (identification and evaluation of potential plant hazards), organization of operation (including relevant outside companies), and measures to be implemented at start-up. In fiscal 2001, twelve projects totaling ¥22.9 billion of investment were rigidly scrutinized through this Outreach Community system. Inspection of ESH management plan. Environmentally Efficient Products and Technologies Plants Locations and Asahi Kasei Group

27 Responsible Care

Training for emergency situations Crisis Management Training and drills for fire extinguishing, disaster prevention, evacuation, summoning needed Emergency response personnel, notification, and reporting in emergency Basic aspects of the emergency response system situations are periodically conducted at each (notification, reporting, establishment of corporate- operational region and plant. In addition, joint level Emergency Response Headquarters) are disaster response drills are periodically conducted specified in the corporate-wide Environment and with Fire and Police Departments, and nearby Safety Management Regulations which apply to petrochemical plants with whom we have the environmental and safety aspects of all phases established mutual assistance regimes. of every operation throughout the Asahi Kasei In fiscal 2001, our subsidiary Asahi Kasei Group. Newport Terminal Co., Ltd. and the four other In addition, each operational region and plant member firms of the Newport/Totoro district has prepared internal rules and regulations for their security association were honored with the Prime own specific measures to be taken in response to Minister’s National Safety Effort Award in disasters and emergencies, in accord with these recognition of their 33-year record of effective regulations. Our sites in Mizushima and Kawasaki, training and maintenance of exacting safety where the petroleum complex disaster prevention standards. law applies, have joined cooperative arrangements with nearby petrochemical plants for mutual emergency assistance, based on their respective Joint Emergency Response agreements.

Renewed evaluation of safety from ignition and explosion In September 2001, the General Manager of the Environment, Safety & Production Technology Administration issued group-wide instructions concerning renewed evaluation of safety from ignition and explosion, drawing on the lessons gained from the fiscal 2000 ignition and explosion incident at our explosives plant. In accordance with these instructions, rigorous inspections to elucidate potential hazards were performed at all plants, with redundant preventative measures devised and implemented. Most of the necessary measures were completed during fiscal 2001. These inspections also became a valuable source of information which will serve to enhance our overall program for operational safety.

Earthquake countermeasures Earthquake damage resistance and countermeasures have always been particularly strong at the Fuji, Ohito and Kawasaki plant complexes, in light of seismological estimates of the vulnerability of these regions to major earthquakes. Following the 1995 Hanshin Earthquake, the earthquake resistance and vulnerability were reviewed throughout the company, and Emergency Response Training at the Newport/Totoro district. reinforcement and modification were implemented.

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

28 Physical Integrity and Safe Operation Overview Asahi Kasei Group Activities of the

Responsible Care Physical Distribution Safety Physical Distribution Asahi Kasei Group Safety Conference The Asahi Kasei Group constantly strives to maintain and heighten safety in the physical To help ensure effective physical distribution safety distribution of harmful and hazardous materials. by reinforcing awareness of the importance of safety among the upper management of firms

Protection • Arrangements for physical distribution safety involved in physical distribution, the Asahi Kasei Environmental control are established in cooperation with firms Group holds a physical distribution safety involved in storage, loading, unloading, and conference each year. On July 17, 2001, a transportation, and these firms are given conference was held with approximately one instruction and guidance regarding physical hundred attendees, including the presidents and distribution safety. executive officers of environment and safety of 31 • Together with firms involved in physical firms involved in physical distribution, Asahi Kasei distribution, meetings are periodically held to Group personnel involved in physical distribution, Product Safety make all persons involved with physical and technical experts in the field. distribution thoroughly familiar with safety Recent ESH activities of the Asahi Kasei Group policies and plans, and to provide a forum to were explained, results of the previous year’s bring potential problems to light and discuss physical distribution safety activities were reported, preventative measures. specific examples of problems encountered in • Physical distribution safety control standards physical distribution were explained, and our specific to each product and mode of physical distribution safety guidelines for fiscal

Physical Integrity transportation are prepared, to be adhered to by 2001 were presented. As an incentive to heighten and Safe Operation firms engaged in physical distribution. the level of physical distribution safety, awards •We have assembled a compilation of know-how were presented to firms in commendation for related to accidents which have occurred in outstanding safety practices. connection to physical distribution. The compilation is used for physical distribution Physical distribution safety policy themes safety education and training. and safety awards for fiscal 2000 Workplace Safety, • Safety practices and activities of firms involved in Hygiene, and Health physical distribution are inspected regularly, and Points of ¥ Comprehensive inspection in the improvements are recommended as needed. focus: shipment of ISO containers: Eliminating • Commendation is given to firms in recognition of accidents in a period of deregulation. outstanding safety practices. ¥ Thorough safety education and training: • Transport Emergency Cards, known as “Yellow Raising awareness of safety among Training Cards,” which clearly indicate all information drivers. Education and which would be urgently needed in case of an Ongoing ¥ Enactment of safety verification. accident during physical distribution, are themes: ¥ Promotion of improved facilities and prepared for each product and mode of improved loading and unloading work transportation and provided to firms involved in among users. physical distribution. These firms are instructed ¥ Cataloging safety issues concerning in their use, and the drivers or parties Asahi Kasei Group facilities, and

Awards in implementing measures for ESH Results responsible for the product during transport Recognition of unfailingly keep the Yellow Cards on hand at all improvement. times during physical distribution. Safety ¥ Outstanding Safety Practices: Awarded awards: to 12 companies in 14 categories. ¥Continuous Accident-Free Record: Awarded to 6 companies in 6 categories. Yellow Cards Outreach

Community Notification procedures and specific measures to be For the Asahi Kasei Group, these conferences taken in case of accident provide a valuable impetus in the effort to during physical distribution are clearly indicated on constantly improve physical distribution safety by Yellow Cards, as are helping firms involved in physical distribution to physical properties and learn from accidents and problems which have hazards of the particular occurred, and encouraging them to thoroughly chemical substance, safety precautions, and educate and train their employees on safety issues Environmentally Efficient Products and Technologies warnings. In case of emergency, a quick look at the and practices. Yellow Card will enable proper measures to be taken immediately, to minimize any danger and prevent the occurrence of any secondary incident. In addition to physical distribution of products, Yellow Cards are also used for wastes which are transferred off site. Plants Locations and Asahi Kasei Group

29 Workplace Safety, Responsible Care Hygiene, and Health

Workplace Safety

An array of measures are employed in recognition For the second year in a row, we nevertheless that the maintenance of safety is fundamental to all failed to reach our targets, recording a frequency business activities of the Asahi Kasei Group. rate of 0.27 and a severity rate of 0.04 in fiscal Beginning in 1982, a series of three-year initiatives 2001. As shown in the graph below, after following (the sixth completed in fiscal 2000) have a generally downward trend for many years, the established the goals and impetus for safety frequency rate has recently begun to rise. It is training and education programs, preparation and clear that the workplace safety framework we have utilization of technical guidelines for safety and relied on is reaching the limits of its capacity to accident prevention, routine safety assessments obtain improved results. In this light, we have prior to equipment installation and modification, determined that a comprehensive Occupational and regular safety audits conducted by corporate- Health & Safety Management System (OHSMS) level management. will enable us to achieve further progress. In fiscal In fiscal 2001 we began a Medium-term 2001, we began implementation of OHSMS at Responsible Care Program as a new three-year three production facilities, and this was increased initiative to be completed in fiscal 2003. A to twenty in fiscal 2002. OHSMS implementation frequency rate* for lost-workday injuries of 0.1 or will be progressively expanded to facilities less and a severity rate** for lost-workday injuries throughout the Asahi Kasei Group, with a target of of 0.005 or less have been set as group-wide implementation at two-thirds of our facilities by targets, and each internal company business unit fiscal 2004. and each regional Office has prepared plans for workplace safety measures to achieve these targets.

Frequency rate Severity rate 4.0 0.6

Asahi Kasei 0.5 Asahi Kasei 3.0 Chemical Chemical industry, Japan industry, Japan 0.4 Manufacturing Manufacturing industries, Japan industries, Japan 2.0 0.3

Severity rate** 0.2

Frequency rate* 1.0 0.1

0.0 0.0 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 Calendar year Calendar year *Number of accidental deaths and injuries resulting in the loss of one **Lost workdays, severity-weighted, per thousand or more workdays, per million man-hours worked. man-hours worked.

Workplace Hygiene and Health

The maintenance of employee health is an The provision of a comfortable workplace important focus at the Asahi Kasei Group. To environment, so that employees experience a ensure a safe workplace environment, proper minimum of fatigue and stress, has become an measures are taken when chemical substances or important issue. In the Asahi Kasei Group, the other hazards are present, in accordance with the improvement of the workplace environment is Industrial Safety and Health Law. As many actively pursued through a closely coordinated chemical substances are handled at Asahi Kasei effort by labor and management. Group companies, the safe management of chemical substances is a particular point of emphasis.

30 Workplace Safety, Hygiene, and Health Overview Asahi Kasei Group

“emotional health checkup” developed by the Fitness Promotion Mental Health Research Institute of the Japan Activities of the Responsible Care Asahi Kasei Group Our 3-year Medium-term Responsible Care Productivity Center for Socio-Economic Program includes an objective to halt the increase Development, a non-profit organization advocating in the number of employees receiving cautions advanced industrial productivity. regarding their health following their annual To enhance measures to reduce the number of checkups. To achieve this objective, the program employees receiving cautions regarding their health following their annual checkups, our

Protection of fitness promotion through health-related advice

Environmental and exercise, tailored to the specific Department of Network Business has developed a circumstances and needs of each location, is personal diet management system which is being being enhanced and expanded with the guidance utilized beginning in fiscal 2002. The system, of physicians specializing in industrial medicine. shown schematically below, will provide a valuable As fiscal 2002 began, health-related concerns tool to help improve the health of employees with have heightened nation-wide, and the Ministry of diabetes, high blood pressure, or high cholesterol, Health, Labor and Welfare advanced its “Health or who are overweight.

Product Safety Japan 21 Project.” In the Asahi Kasei Group, a range of employee health maintenance and promotion measures are being enhanced, and we have established a Health Promotion Policy as part of the group-wide Responsible Care program. We are continuing implementation of the Physical Integrity and Safe Operation Health Promotion Policy • Systematize and unify base for health support. • Reduce percentage of employees receiving health cautions. Workplace Safety, Hygiene, and Health • Promote emotional health and care. Training

Education and Personal diet management system

User

Awards in Discussion with Meals photographed ESH Results Recognition of managing dietitian, if by digital camera necessary Dietary habits modified based on results of Digital photographs sent analysis and advice Internet Outreach

Community Personal diet management system

Results of analysis Nutrition of meals analyzed using and advice sent Advice prepared based on results of analysis

Dietitian, advisor Environmentally Efficient Products and Technologies Plants Locations and Asahi Kasei Group

31 Education and Training Responsible Care

Whatever organizational structures, systematic unrelenting, beginning with orientation of new hires processes, and physical assets we employ for and continuing throughout their career with us. In EHS purposes, effective implementation is addition to the company-wide training program, ultimately dependent on the constant awareness each internal company business unit and and comprehensive understanding of every single operational region implements a training program employee, which underlie the innumerable specifically tailored to their particular requirements. individual judgments and acts entailed in day-to- Education and Training is performed jointly with day operation throughout the Asahi Kasei Group. Asahi Kasei Amidas, our specialist subsidiary for Thorough and complete education and training human resources development. of employees thus provides the essential foundation for our EHS effort. The process is

Asahi Kasei Group ESH education and training Objective Course (summary) New hires ・Basic ESH knowledge. ・Safety and hygiene training upon hiring, based on the ・Observation of basic safety practices, company Industrial Safety and Health Law. rules. ・Public trends related to ESH. ・Managing one's health as lifestyle habits change. ・ESH ideals and responsibilities. ・Responsible Care, and the Asahi Kasei Group program. ・The basics of safety and hygiene. ・Environmental issues primer. Follow-up after hiring ・Follow-up to training upon hiring, when one has ・Responsible Care in the workplace. become accustomed to working life after a few ・Studying examples of plant accidents. months. ・Managing one’s health. Training prior to appointment ・ESH knowledge needed as a supervisor. ・Safety and hygiene training for supervisors, based on the as supervisor ・Awareness of duty and responsibility for safety. Industrial Safety and Health Law. ・Public trends related to ESH. ・Responsible Care. ・Relevant laws and regulations. ・Duty and responsibility for safety. ・Asahi Safety Training (AST). ・A comfortable workplace environment. Training upon appointment as ・Follow-up to training prior to appointment as ・Asahi Kasei Group safety technology guideline. supervisor supervisor. ・Studying examples of plant accidents. Training for candidate ・Operational safety knowledge needed as ・Public trends related to ESH. operation supervisors operation supervisor. ・Responsible Care, and the Asahi Kasei Group program. ・Awareness of responsibility as operation ・Duty and responsibility for safety. supervisor. ・Asahi Safety Training (AST). ・Learning safety evaluation techniques. ・Making equipment inherently safe. ・Safety evaluation techniques. ・Training by simulation. Plant and laboratory staff ・Plant and laboratory staff training ・Public trends related to ESH. training ・ESH knowledge needed as staff. ・Responsible Care, and the Asahi Kasei Group program. ・Relevant laws and regulations. ・Overview of environmental issues. ・ISO management systems. Training for managers ・ESH knowledge needed as manager. ・Public trends related to ESH. ・Awareness of responsibility as manager. ・Responsible Care, and the Asahi Kasei Group program. ・Duty and responsibility for safety. ・Asahi Safety Training (AST). ・Overview of environmental issues. ・Product safety issues. ・ISO management systems. Training for newly appointed ・Awareness of responsibility as section chief. ・Duty and responsibility for safety. section chiefs ・Emotional fitness. Training for newly appointed ・ESH expected of newly appointed general general managers managers Ordinary employees ・Raising sensitivity to ESH issues ・Training based on the Industrial Safety and Health Law. (by workplace or group) ・Awareness of responsibility to observe basic ・Studying actual incidents, using AST manual. procedures and rules. ・Duty to maintain safety. ・Environmental issues primer.

32 Education and Training Overview Asahi Kasei Group

Training for new hires, supervisors, and Training by computer simulation

Activities of the managers Advanced safety systems and equipment are Responsible Care Asahi Kasei Group In order to raise the level of knowledge and important elements of safe operation at every management skills related to EHS issues to a chemical plant, but the key lies in the skill of highly uniformly high standard throughout the company, trained, professional operating personnel. The a tiered training program is implemented, operators must not only be capable of controlling beginning with orientation and training of new hires routine operation, startup, and shutdown, but and progressing through training for individuals must also be able to respond quickly and Protection

Environmental appointed to supervisory and managerial appropriately to any process abnormality or positions. emergency. By the end of fiscal 2001, nearly all production To aid in the training of skilled operators, we line section chiefs throughout the Asahi Kasei have developed computer models to simulate the Group had completed Asahi Safety Training (AST). behavior of actual plants, and used this simulation The training was expanded to include assistant as part of the operator training course since 1987. section chiefs in fiscal 2001, with approximately An advanced simulator at our Mizushima plant

Product Safety 110 of these personnel completing the training. complex is used to develop the skills of well- “Asahi Technical College” classes were held to trained operators. Practical hands-on training provide young engineers in Nobeoka with a broad related to machinery, electric power systems, and base of specialist knowledge. In addition to safety instrumentation are performed using miniature engineering, the curriculum included analytical plants. technology and patent regulations. Specialist instructors from outside the company were engaged to teach the intensive, high-quality Physical Integrity and Safe Operation classes. In fiscal 2001, 42 engineers completed the course on environmental safety engineering.

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

Education and By business division and operational region Education and training programs at the regional and divisional levels are implemented in parallel with the company-wide training program. Education and training related to product safety, ISO 9000 series quality management systems,

Awards in and ISO 14001 environmental management ESH Results Recognition of systems are performed at each business division. Education and training programs related to EHS issues specific to particular production processes and equipment are implemented by operational region. Process simulation facility at the Mizushima Process Training Center. Outreach Community Environmentally Efficient Products and Technologies

Plants Machine training room at the Mizushima Technology Training Center. Locations and Asahi Kasei Group

33 Responsible Care

Outside the company Officially certified qualifications To keep abreast of information, knowledge, and In conjunction with the corporate training program, administrative trends as they relate to EHS issues, the acquisition of officially certified qualifications is personnel attend various lectures and conferences encouraged and supported. As shown in the held by administrative authorities, industry following table, the total number of personnel who associations, and other relevant organizations. have obtained each class of qualification is well in Personnel also attend public classes and seminars excess of the regulatory minimum required for our to obtain the capabilities, skills, and qualifications operations. needed for specific work responsibilities.

Personnel with officially certified qualifications

Class of qualification No. certified* Regulatory minimum High-pressure gas manufacturing safety 2,223 440 Hazardous materials handling 6,927 1,044 Pollution prevention control 1,033 144 Energy management 196 56 Workplace health and hygiene 1,023 97 Mini-plant at the Mizushima Technology Training Center. Workplace environment analysis 121 20 Boiler operation 1,381 142 Electric power supervision 96 28

* Some personnel have more than one certification. Completion of ISO internal auditor training No. of personnel ISO internal environmental auditor 395 ISO internal quality auditor 733

Asahi Kasei Responsible Care Symposium Each year, production supervisors and researchers from throughout the Asahi Kasei Group gather for the Asahi Kasei Responsible Care Symposium, where technologies and management techniques related to ESH are exchanged. The 14th symposium was held in Mizushima on December 7, 2001 with five hundred attendees, including the president of Asahi Kasei, presidents of each internal company business unit, general managers of each division, and each regional office, presidents of affiliated companies, general managers of plants, production departments, and production sections, and labor union leaders. In addition to the President’s speech entitled Responsible Care in Corporate Management, The 14th Asahi Kasei Group Responsible presentations included an explanation of OHSMS, Care symposium. examples of outstanding environmental and safety practices at certain business units, and lessons learned from plant accidents. A specialist physician in industrial medicine gave a lecture on health, and Asahi Kasei Group Safety Awards were presented.

34 Education and Training Overview Asahi Kasei Group Activities of the Responsible Care

Asahi Kasei Group Asahi Safety Training (AST) AST is a manual developed by the Asahi Kasei awareness of accident prevention gained by Group for safety training. The objective is for thinking subjectively about the work they personnel to gain a heightened sensitivity to safety perform. issues and to anticipate potential problems and • Preparing preventive measures which take into respond proactively. The training, comprising the consideration origins of people’s blind spots, Protection

Environmental following, is employed as an essential element of such as illusions, operational mistakes, and the safety training curriculum throughout the Asahi mistakes in judgment. Kasei Group at each plant and workplace. • Analyzing past incidents to be able to foresee potential problems and think proactively to •All employees contribute to safety with an prevent accidents. Product Safety Physical Integrity and Safe Operation

Asahi Safety Training System

Accident analysis

Preventing Evaluating Workplace Safety, Hygiene, and Health recurrence present practices

Actual incidents Potential problems foreseen

Training I. Fundamentals of II. Gaining awareness of safety III. Techniques for reviewing safety

Education and accident prevention

Process Operational Implementation Utilizing examples of actual incidents at other sections, Review based on foreseen problem. Blind spot hypothesizing based on behavior analysis. incidents accidents Hypothesis cards

Four-step Asahi Disaster potential H cards (blind spot classification) TMH cards (diagrammatic analysis) TM card (statistical analysis) Mechanism Forced

Awards in method for ESH Results conceptualization Recognition of of occurrence accident analysis ・Asahi Kasei method for problem hypothesizing. State of State of State of State of ・Problem stability instability danger hazard Human Equipment System hypothesizing based on

Outreach operability study. Community

(blind spot)

Direct cause Operational Errors in mistakes judgment

Environmental Problems of causes awareness Environmentally Efficient Products and Technologies Plants Locations and Asahi Kasei Group

35 Awards in Recognition of Responsible Care ESH Results

Public Recognition and Awards Outstanding achievements at Asahi Kasei Group environmental protection, operational safety, and plants and locations resulting from the constant workplace hygiene and health were recognized effort to improve performance in terms of with the following awards for fiscal 2001.

Environmental Foundation and the Nikkan Kogyo The 33rd Annual Japan Chemical Shimbun in recognition of its outstanding Industry Association Technology contribution to enabling sustainable development Awards: Award for Environmental as a recycling process with a moderate Technology environmental burden. Dregs from the distillation of shochu - a Technology for thermal decomposition of nitrous traditional Japanese distilled liquor - have oxide developed by our Performance Chemicals conventionally been disposed of in the ocean. internal company business unit received an Asahi Kasei now collects shochu dregs from environmental technology award from the Japan throughout Kyushu and uses membrane Chemical Industry Association in recognition of its separation technology to remove useful solids, outstanding contribution to alleviating the which are then used to produce fertilizer and environmental burden of operations. animal feed. This remarkable process achieves a Nitrous oxide, which has been identified as a recycling rate near 100% at a running cost which “greenhouse gas,” is generated as a by-product is roughly half that of ocean disposal. from the synthesis of adipic acid by reacting cyclohexanol with nitric acid. High operating efficiency is obtained through multistage thermal decomposition. Prime Minister’s National Safety Effort Award Thermal Nitrous oxide gas decomposition Oxygen, nitrogen The five member firms of the Newport/Totoro Nitric acid recovery district security association, including our Asahi Kasei technology subsidiary Asahi Kasei Newport Terminal Co., Ltd., were honored with the Prime Minister’s National Cyclohexanol Adipic acid Safety Effort Award for their contribution to the prevention of industrial accidents and fires which Nitric acid pose a threat to people’s daily lives. The award comes in recognition of the exemplar The 29th Annual Hitachi establishment and maintenance of a mutual accident prevention and Environmental Foundation/Nikkan response system for 33 years, Kogyo Shimbun Environment including large-scale annual drills Awards: Award for Excellence involving the fire department headquarters, local fire A process for the recycling of dregs from distilled departments and fire brigades, the spirits using membrane separation technology coast guard, the police, and local received and award from the Hitachi residents. Presentation of Prime Minister’s Award.

Asahi Kasei Group Safety Awards The Asahi Kasei Group presents internal safety Asahi Kasei Group Safety Awards awards to plants and laboratories in recognition of President’s Fuji Electronic Components 15 years accident-free outstanding records of accident-free operation Safety Award Research Annex resulting from efforts to improve safety Safety Effort Detonator Plant 1.1 million man-hours accident- management and safety technology. Awards Awards free (Halfway to Ministry of Health, Labor and Welfare Class 1 presented for fiscal 2001 are shown below. accident-free record) Ion Exchange Membranes 1.65 million man-hours accident- Production Department free (Halfway to Ministry of Health, Labor and Welfare Class 1 accident-free record)

36 Overview Community Outreach Asahi Kasei Group

As part of our Responsible Care initiative, the encouragement and promotion of employee Asahi Kasei Group actively seeks to maintain a participation in community volunteer activities. Activities of the Responsible Care Asahi Kasei Group relationship of mutual understanding and Each regional Office and plant enjoys broad cooperation with the communities in which we latitude to determine their own community operate. The wide-ranging effort includes outreach program and activities, based on local communication with the public through a variety of circumstances. Following are some examples of forums, participation in environmental conservation community outreach activities and events in fiscal activities organized by public authorities, and 2001. Protection Environmental Information and Dialog

Plant Tours, School Visits Participation in Local Forums Product Safety Plant tours are held to allow members of the Representatives from our various plants actively community to gain a better appreciation of our participated in a variety of local forums and environmental and safety measures. Each assemblies for community discussion of regional Office and many separate plants invited environmental issues. Such forums not only local residents, elementary and middle school enable us to present our perspective, but also students, and community groups for tours of provide valuable opportunities for community

Physical Integrity plants and facilities and presentations describing members to express their concerns, leading to and Safe Operation our operations. Students visited our facilities in constructive discussions and exchanges of cooperation with local elementary school and opinion. middle school study trips, where production operations and environmental and safety measures were described. In communities where Expansion and Construction Plans we have regional Offices, Asahi Kasei Group Prior to construction for plant maintenance and

Workplace Safety, engineers visited local schools and other local

Hygiene, and Health expansion, public meetings were held to outline bodies to describe our technologies and ESH our construction plans and address community activities. concerns about external effects of the construction work, such as noise and electromagnetic disturbance. Training Education and Regional Responsible Care Forums The Japan Responsible Care Committee held regional public forums on Responsible Care issues in Kawasaki and Oita to explain Responsible Care and its results to representatives of local Awards in

ESH Results government bodies and members of the Recognition of community, and provide a forum for discussion and dialog. Representatives of the Asahi Kasei Group were also in attendance. Provision of Environmental

Outreach Pamphlets and Information Community At sites with ISO14001 environmental management systems, Environmental Policy pamphlets were prepared and made available to the public. In response to an inquiry from a nearby elementary school regarding environmental issues, our Kawasaki Office prepared an easy-to-

Environmentally understand overview describing environmental Efficient Products and Technologies aspects of our Kawasaki operations.

Newspaper article featuring Asahi Kasei lecture at a middle school. (Courtesy of Yukan Daily Shimbun) Plants Locations and Asahi Kasei Group

37 Responsible Care

Community Fellowship

Opening of Plant Grounds Area Environmental Councils Each year the grounds at the Tohmi Plant in Each year, representatives of many Asahi Kasei Nobeoka are opened to the public for the spring plants and regional Offices play an active role as tradition of picnicking under the cherry blossoms. members of various environmental councils The Suzuka Plant of Fabricated Home Products organized by Prefectural, City, Town, and Village has a similar tradition of opening the avenue in governments, participating in the planning and front of the employees residence complex to the administration of a variety of functions and monthly public during cherry blossom season. In addition, events. the area around the main gate of the Suzuka Plant In May 2001, Mie Prefecture held “Mie has been transformed into a garden path that is Environment Fair 2001” in Ise City as part of its open to the public throughout the year. The path movement to become an environmentally is adorned with laurel trees - the environmental advanced prefecture. Our Suzuka Plant hosted a symbol of the Fabricated Home Products internal booth with panel displays showing the Suzuka company business unit - and flowers are Plant garden path, zero-emission efforts, and the replanted for the four seasons. In fiscal 2001, Eco-Cleanup Campaign. The Asahi Kasei solar/wind-powered streetlights were installed, Responsible Care Report, describing contributing to heightened environmental environmentally efficient products and awareness in the community. environmental measures of the Asahi Kasei Group was also on display. The fair attracted over 60,000 visitors, about 2000 of whom visited the Suzuka Plant booth.

The garden path at the A solar/wind-powered streetlight Suzuka Plant. at the Suzuka Plant. Maintaining Neighborhood Cleanliness Employees at many sites periodically clear the plant vicinities of litter, rubbish and weeds. The Mie Environment Fair 2001. Fabricated Home Products internal company business unit held an “Eco-Cleanup Campaign” at its Suzuka and Nobeoka plants, Tokyo and Osaka Employee Volunteerism offices, and the Ageo, Ono, and Gunma plants of Throughout the Asahi Kasei Group, employees subsidiary Asahi Kasei Pax. This is a volunteer participate in a wide-range of volunteer activities event for employees, their families, and the public each year in their local areas. Examples include to remove, separate, and dispose of trash and litter “Clean Lake Biwa Campaign” in Moriyama in July from the area around the nearest train stations, the and Fuji City’s beech tree-planting on Mt. Fuji in plant surroundings, and nearby parks. April and “Clean Fuji River Campaign” in November. In October 2001, our Detonator Plant in Nobeoka held a “Beach Cleanup Campaign” involving all plant personnel. In addition, employees throughout the Asahi Kasei Group contributed in a variety of capacities in a range of volunteer activities including blood drives and traffic safety campaigns.

“Eco-Cleanup Campaign” at Asahi Kasei Pax.

38 Overview Environmentally Efficient Products Asahi Kasei Group and Technologies

Asahi Kasei Group has endeavored to develop wide range of environment-friendly products and

Activities of the technologies and products which contribute to technologies. Responsible Care Asahi Kasei Group environmental preservation throughout their life cycle of production, use, and disposal. As shown below, such development efforts have resulted in a

Protection Category* see page: For more, conservation Resource Other substances Chemical reduction Waste

Environmental Internal companies/ subsidiaries Product/technology Ecological aspects and affiliates

Fibers and Textiles Eutec™ oil-water separators Water treatment by filtration to separate oil from water.

Ecosensor™ Polyester filament chemically recycled from post-consumer PET bottles and other used PET products. 40 Bemberg™ and Bemliese™ regenerated cellulose Effectively utilizes natural resources, enables environmentally compatible disposal.

Product Safety Chemicals and AGI hollow plastic molding technology Reduced number of parts, reduced materials consumption, reduced weight. Plastics Clear Surface Molding technology Eliminates the need for painting, reducing paint and solvent use. 40

Long™ coated fertilizer and Ecolong™ Coated fertilizer enables controlled release of fertilizer to avoid excessive application. 40 environmentally degradable coated fertilizer Photodegradable, biodegradable coating is restored to the natural cycle. Halogen-free flame-retardant acrylonitrile- Flame retardance without using halogens. butadiene-styrene resins SB latex coating for moisture-resistant paper Enables the production of recyclable moisture-resistant paper and release paper. and release paper Physical Integrity and Safe Operation Suntec™ PAK coating powder Powder coating requires no solvents, for reduced atmospheric emission. Methyl methacrylate production process Eliminates ammonium sulfate by-product. by direct oxidative esterification Phosgene-free, methylene chloride-free Eliminates the need for the hazardous phosgene as reactant and methylene chloride polycarbonate production process as solvent.

Performance Plastics Asaclean™ purging agent for plastic molding Reduces the amount of waste during material changeover. 40 and Compounds machines Workplace Safety,

Hygiene, and Health Performance Duranate™ MF-K60K Enables low-temperature hardening (90˚C) so blocking agent is not diffused. Chemicals Cyclohexanol production process from cyclohexene Resource-efficient process with minimal waste gas and waste liquid. TM Fabricated Home Acclima™ Saran fiber biological membrane carrier for water treatment. Products OPS™ film (with recycled mark) Made from punch-out scrap from biaxially oriented polystyrene sheet. 40 Aspac Sarasara™ R Foamed polystyrene loose fill cushioning made from punch-out scrap from biaxially

Training oriented polystyrene sheet. Education and Specialty Products Halogen-free cleaning agent Metal cleaning, precision cleaning, electronics cleaning without ozone-depleting halogen compounds. and Systems Membrane electrolysis process Eliminates the need for asbestos and mercury in chlor-alkali production. 41 Microza™ MF and UF modules and systems Purification of drinking water, treatment of waste water; enables closed water 41 systems in industrial and commercial applications. Acilyzer™ electrodialyzers Removal of nitrates from drinking water, treatment of waste water. 41

Environmental reagent (Toyo Clean Chemical Microbial enzymes used to accelerate bioprocessing, for sludge volume reduction,

Awards in Co., Ltd.) and for deodorization. ESH Results Recognition of Construction Neoma™ foam High-performance home insulation panels, for energy conservation. Materials Suny Lite™ SD airtight insulation system Airtight, high-performance insulation system for energy conservation in wooden homes.

Housing Long Life Home products 60-year durability enables reduction of waste from demolition and rebuilding. 41 Electronics Apolarm™ C oil leak detector, Apolarm™ M waste Detection of oil leaks and monitoring of industrial waste water for surface oil. water monitor (San Denshi Industry Co., Ltd.) Exhaust gas treatment technologies Elimination of hazardous substances and recovery of useful substances from exhaust gases. Outreach Asahi Engineering Community Co., Ltd. Waste liquid treatment equipment Activated sludge treatment.High-performance fluorine adsorption. Waste liquid incinerator Treatment of highly concentrated organic waste liquids, and waste liquids containing 42 inorganic salts.

Shin Nihon Salt Fluorine and arsenic adsorbent High-performance adsorbent for water treatment. 42 Co., Ltd. Magnesium hydroxide for desulfurization Economic, efficient flue gas desulfurization without need for secondary treatment. Toyo Kensa Center Environmental analysis Capable of analyzing endocrine disrupters and dioxins in addition to ordinary environmental 42 Co., Ltd. analyses.

Environmentally 42 Efficient Products and Technologies Asahi Kasei Amidas Environmental consulting Establishment of environmental management systems. Co., Ltd. * Resource conservation includes energy conservation, water conservation, and reduced consumption of raw materials. Chemical substances indicates reduction in use or effluence of chemical substances, or removal of chemical substances by treatment of waste water or exhaust gas. Waste reduction indicates mitigation of the amount of waste generated or reduction of waste through recovery or recycling. Plants Locations and Asahi Kasei Group

39 Responsible Care

EcosensorTM Recycled AsacleanTM Purging Agent for Polyester Filament Plastic Molding Machines

In June 2001, we began production of polyester Processing loss from plastic molding in Japan filament from feedstocks using the world’s first amounts to almost 800,000 tons of plastic each process for chemical recycling of post-consumer year, largely during material changeover. PET bottles. The filament, marketed under the AsacleanTM enables loss from material changeover brand EcosensorTM, is used in a wide range of to be reduced by 90%. Another significant portion applications including uniforms, sportswear, of processing loss is the result of contamination innerwear, and artificial suede of polyester from heat-deteriorated material which adheres to microfiber. screw and cylinder surfaces. By cleaning the screw and cylinder prior to processing, AsacleanTM eliminates this loss as well, for a significant EcolongTM Environmentally reduction in wastes. Degradable Coated Fertilizer

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

AcclimaTM Biological Membrane Carrier for Water Treatment

Able to remove organic matter, ammonia, algae, and odors from contaminated water at a relatively low cost with simple operation, the biological membrane process for water treatment holds great potential for application in areas with water pollution problems. Microorganisms in the water Ecolongª. adhere to a carrier, where they form a biological membrane. Contaminants are decomposed by the microorganisms when brought into contact with Clear Surface Molding (CSM) the membrane. The AcclimaTM membrane carrier Molding Technology made of SaranTM fiber is used in a wide variety of forms due to the outstanding water purification Employing an insulating layer at the mold cavity performance enabled by its large microorganism surface so that the heat of the molten resin raises retention capacity. the mold surface temperature during molding, CSM improves surface transfer and enables the molding of parts with excellent surface appearance. This makes painting to improve appearance unnecessary, eliminating the associated environmental effects.

Acclimaª before and after use (scales differ).

40 Environmentally Efficient Products and Technologies Overview Asahi Kasei Group Activities of the Responsible Care Asahi Kasei Group Hebel HausTM Long Life Home MicrozaTM MF and UF

The “long life home” concept is part of a new Microza™ MF (microfiltration) and UF strategic vision for Hebel Haus™ products which (ultrafiltration) modules and systems bring benefits will maintain ownership satisfaction over more than of energy conservation and waste reduction in a half a century. Given the serious shortage of wide range of industrial processes in the fields of Protection

Environmental landfills, and that homes have an average life span biotechnology, chemicals, and electronics. of 26 years in Japan, “long life home” products Microza™ water purification systems also enable with the durability to last for over 60 years make a the recycling of water in closed systems at many valuable contribution to waste reduction by factories and resort centers. In addition, Microza™ reducing the need to demolish and rebuild. systems increasingly serve the public with safe, high-quality drinking water, as their use at municipal waterworks grows. Product Safety Physical Integrity and Safe Operation

The basic structure of steel framing and Hebel™ panels engenders outstanding durability.

Membrane Electrolysis Workplace Safety,

Hygiene, and Health Microza™. Asahi Kasei has long been a world-leader in the development and establishment of the membrane electrolysis process for chlor-alkali production, AcilyzerTM Electrodialyzers which eliminates the need for mercury and asbestos as process materials. At present, our Acilyzer™ electrodialyzers enable the efficient Training technology for membrane electrolysis is employed

Education and removal of ionic substances from various at 52 plants in 14 countries around the world, with solutions. Acilyzer™ systems contribute to the a total annual capacity of over 6 million tons of supply of safe drinking water by removing nitrates caustic soda per year. Ongoing technological from contaminated water, and enable resource advancement continues to bring greater efficiency conservation and waste reduction in the food and for energy conservation. biotechnology industries. Additional applications include treatment of industrial waste water and Awards in ESH Results

Recognition of ash swill from industrial waste incineration. Outreach Community

Membrane electrolysis. Environmentally Efficient Products and Technologies Acilyzer™. Plants Locations and Asahi Kasei Group

41 Responsible Care

Waste Liquid Incinerator Read-F Fluorine and Arsenic Adsorbent

The waste liquid incinerator developed by Asahi Read-F, made by Shin Nihon Salt Co., Ltd., Engineering Co., Ltd. is able to safely and efficiently removes fluorine and arsenic from water efficiently treat highly concentrated organic waste by adsorption. It features high performance to liquids and waste liquids containing inorganic enable compliance with the strictest water quality salts, which are ordinarily very difficult to treat. standards, low running cost, and reduction in the These incinerators feature fully automatic generation of sludge from water treatment. operation, and emission concentrations of dioxins, Fluorine adsorption applications are principally in carbon monoxide, and soot and dust all well within treatment of waste water from semiconductor the increasingly stringent regulatory limits. production and thermal power generation. Read- F is in use for fluorine adsorption at over 50 sites. Arsenic adsorption application, featuring extreme ease-of-use by simply passing water through a column filled with the adsorbent, is helping to protect health in Japan and overseas by removing arsenic from groundwater to produce safe drinking water.

Waste liquid incinerator.

Environmental Analysis

Read-F adsorbent. With a full array of high-precision analytical technology, Toyo Kensa Center Co., Ltd. serves the environmental protection effort by providing a variety of environmental analyses. Capability to Environmental Management Systems analyze extremely trace concentrations of environmental endocrine disrupters, dioxins, and Asahikasei Amidas Co., Ltd. has developed and coplanar polychlorinated biphenyls complement its made patent applications for a “Flow Chart and facilities for ordinary analysis of water quality, Format” (FCF) method to establish management atmospheric and soil pollutants, and industrial systems compliant with ISO standards. Many waste for regulatory compliance. Additional companies have employed the FCF method for capabilities include analyses related to sick house ISO 14001 environmental management systems syndrome, such as inspection of homes and and ISO 9000-series quality management testing of emanation from construction materials. systems, through the consulting services of ISO 9001 certification attests to the reliability of its Asahikasei Amidas. Clients have been pleased analytical results. with the results, as the FCF method enables the simple establishment of efficient, effective, and ultimately satisfying ISO management systems. The FCF method is also a powerful tool when modifying or improving established management systems.

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

42 Overview Asahi Kasei Group Locations Asahi Kasei Group and Plants

Our Responsible Care program is uniformly following page shows all locations and group

Activities of the applied throughout all locations, subsidiaries, and companies included in our Responsible Care Responsible Care Asahi Kasei Group affiliated companies of the Asahi Kasei Group. program. The map below shows the locations of the six regional offices and the plants of Asahi Kasei. The Protection Environmental Product Safety

Shiraoi Plant Physical Integrity and Safe Operation

Workplace Safety, Mizushima Office Hygiene, and Health Moriyama Office

Training Sakai Plant

Education and Hozumi Plant Matsudo Plant Oita Plant Tokyo Head Office Kawasaki Office Nagoya Plant Osaka Head Office Iwakuni Plant Wakayama Plant Kakegawa Plant Awards in

ESH Results Chiba Plant Recognition of Chikushino Plant

Ohito Office Suzuka Plant Outreach Community Fuji Office Nobeoka Office

Environmentally Efficient Products and Technologies Plants Locations and Asahi Kasei Group

43 Offices and Plants

Tokyo head office 1-1-2 Yurakucho, Chiyoda-ku, Tokyo 100-8440 Japan Tel. +81-3-3507-2060 Osaka head office 1-2-6 Dojimahama, Kita-ku, Osaka 530-8205 Japan Tel. +81-6-6347-3111 Responsible Care Region Plant Main products 6-4100, Asahimachi, Nobeoka, Miyazaki 882-0847 Japan Tel.+81-982-22-2011 Leona Plant Adipic acid, hexamethylenediamine, nylon 66. Polyester Plant Polyester filament. Bemberg Plant Cuprammonium rayon, nonwoven cellulose filament. Rayon Plant Viscose rayon. Nonwovens Plant Artificial suede, melt-blown/spunbond nonwoven fabrics. Chemicals Plant Nitric acid, caustic soda, chlorine, hydrochloric acid, fertilizer. VDC Polymer Plant Polyvinylidene chloride resin, polyvinylidene chloride latex. Tohmi Plant Explosives, nitrocellulose, microcrystalline cellulose. Detonator Plant Detonators.

Nobeoka Office Nobeoka Pharmaceuticals Plant Pharmaceutical intermediates. Hyuga Chemicals Plant Coating materials, industrial cleaning agents. FP Coil Development Dept. Fine-pattern coils. Planova Plant Virus removal filters. Aramica Plant Aramid film. Power Supply Dept. Utilities (electrical power, steam, water) 3-13, Ushiodori, Kurashiki, Okayama 712-8633 Japan Tel. +81-86-458-2111 Basic Petrochemical Production Dept. Ethylene, benzene. 1st Monomers Production Dept. Styrene monomer, cyclohexanol, ammonia. 2nd Monomers Production Dept. Styrene monomer, acrylonitrile. ABS & SB Latex Production Dept. Acrylonitrile-butadiene-styrene resin, styrene-butadiene latex.

Mizushima Office Suntec Production Dept. High density polyethylene, low density polyethylene. Tenac Production Dept. Polyacetal. Power Supply Dept. Utilities (electrical power, steam, water) 515 Kojimacho, Moriyama, Shiga 524-0002 Japan Tel. +81-77-581-4001 Spunbond Plant Spunbond nonwoven fabrics. Roica Plant Roica elastic polyurethane filament. Moriyama Industrial Membranes Plant Li-ion rechargeable battery separator membranes, filtration membranes and modules. Artificial Fishing Reef Development Dept. Artificial fish reefs. Moriyama Office Power Supply Dept. Utilities (electrical power, steam, water) 2-1, Samejima, Fuji, Shizuoka 416-8501 Japan Tel .+81-545-62-2111 Cashmilon Plant Acrylic staple. Pewlon Plant Acrylic filament. Photo Products Plant Photosensitive resins. Fertilizers Plant Fertilizer, nitric acid. Plastics Fabrication Plant Polymethyl methacrylate sheet. Fuji Plant, Construction Materials Autoclaved lightweight concrete panels, piles.

Fuji Office Fuji Industrial Membranes Plant Filtration membranes and modules. Electronics Materials Plant Photosensitive dry film resist, photosensitive polyimide. Fuji Pharmaceuticals Plant Pharmaceutical intermediates. Power Supply Dept. Utilities (electrical power, steam, water) 632-1, Mifuku, Ohitocho, Tagata-gun, Shizuoka 410-2321 Japan Tel. +81-558-76-7011 Ohito Pharmaceuticals Plant Pharmaceutical materials. Ohito Diagnostics Plant Diagnostic reagents. Ohito Liquors Plant Liquors. Kamishima Pharmaceuticals Plant Pharmaceuticals. Ohito Liquors Plant, Kyoto Branch Liquors. Nagoya Pharmaceuticals Plant Pharmaceuticals. Ohito Office Kakegawa Pharmaceuticals Plant Pharmaceutical distribution. Engineering Dept. Equipment design, construction, and maintenance; utilities management. 1-3-1,Yako, Kawasaki-ku,, Kawasaki, Kanagawa 210-0863 Japan Tel. +81-44-271-2021 Monomers Production Dept. Acrylonitrile, methyl methacrylate, 2,6-xylenol. ABS & SB Latex Production Dept. Acrylonitrile-butadiene-styrene resin, styrene-butadiene latex. Synthetic Rubber Production Dept. Synthetic rubber. Acrylic Plastics Production Dept. Polymethyl methacrylate. Ion Exchange Membranes Production Dept. Ion-exchange membranes. Power Supply Dept. Utilities (electrical power, steam, water) Kawasaki Office Chiba Plant Modified polyphenylene ether, polymethyl methacrylate, plastic optical fiber. 106 Oaza-Someya, Sakaimachi, Sashima-gun, Ibaraki 306-0493 Japan Tel. +81-280-87-5202 Iwakuni Plant Autoclaved lightweight concrete panels, piles. Hozumi Plant Autoclaved lightweight concrete panels. Matsudo Plant Autoclaved lightweight concrete panels. Sakai Plant Autoclaved lightweight concrete panels, piles. Shiraoi Plant Autoclaved lightweight concrete panels, piles.

Construction Materials Works Neoma Foam Plant Phenolic foam insulation panels. Oita Plant Explosives. Chikushino Plant Metal cladding. Wakayama Plant Acrylic latex, stencil paper. Suzuka Plant Polyvinylidene chloride wrapping films, biaxially oriented polystyrene sheets, polyolefin films, foams. Others Suzuka Wrap Film Plant Food wrapping films.

Company Business line/Main products Company Business line/Main products Asahi Kasei Eltas Co., Ltd. Spunbond nonwoven fabrics. Asahi Kasei Techno Plus Co., Ltd. Plastic molding, sale. Nobeoka Asahi Senni Co., Ltd. Cuprammonium rayon and polyester subcontracting, fish bait. Asahi Kasei Newport Terminal Co., Ltd. Storage of raw materials. Sanyo Petrochemical Co., Ltd. Petrochemical feedstocks. A&M Styrene Co., Ltd. Polystyrene. Asahi Kasei Color Tech Co., Ltd. Coloring and compounding of synthetic resins. Mizushima Sun Business Co., Ltd. Subcontracting. Japan Elastomer Co., Ltd. Synthetic rubber. Nippon Crenol Co., Ltd. 2,6-xylenol. Kawasaki Sun Business Co., Ltd. Contract work. Nobeoka Plastics Processing Co., Ltd. Nylon 66 compounding. Leona Kiko Co., Ltd. Packing and shipping of resins and fibers. Asahi Kasei Pax Corporation Fabricated plastic products. Asahi Home Products Co., Ltd. Sale of wrapping film and other household products. Asahi Kasei Finechem Co., Ltd. Nobeoka Plant Specialty chemicals. Suzuka Sun Business Co., Ltd. Plastic processing. Asahikasei Epoxy Co., Ltd. Mizushima Plant Epoxy resin. Wacker Asahikasei Silicone Co., Ltd. Silicone products. Asahi Chemitech Co., Ltd. Resin capsule anchors. Asahi Kasei Metals Ltd. Aluminum paste. Oita Sun Business Co., Ltd. Public welfare. Asahi Kasei Geotechnologies Co., Ltd. Industrial explosives. Asahi Kasei Construction Materials Co., Ltd. Construction materials. Asahi Kayaku Kyushu Co., Ltd. Industrial explosives. Hozumi Kako Co., Ltd. Construction materials processing. Asahi Kasei City Guy Co., Ltd. Installation of piles. Matsudo Kako Co., Ltd. Construction materials processing. Sakai Kako Co., Ltd. Construction materials processing. Asahi Giko Co., Ltd. Construction materials processing. Fuji Kako Co., Ltd. Construction materials processing. Matsudo Matt Co., Ltd. Construction materials processing. Kyowa Kako Co., Ltd. Construction materials processing. Tanaka Kiko Co., Ltd. Construction materials processing. Chuwa Kako Co., Ltd. Construction materials processing. Asahi Kasei Marinetech Co., Ltd. Artificial fish reefs. Hokkaido Shiba Kogyo Co., Ltd. Construction materials processing. Asahi Kasei Electronics Co., Ltd. Hall elements, pellicles. Asahi Kasei Microsystems Co., ltd. LSIs. Asahi Kasei Techno Systems Co., Ltd. Applied electronic equipment. Asahi-Schwebel Co., ltd. Glass fabrics. Asahikasei Aime Co., Ltd. Nobeoka Plant Contact lenses.

Subsidiaries and Affiliates Asahi Medical Co., Ltd. Artificial kindneys and other medical devices. Mitaka Pharmaceutical Co., Ltd. Ohito Plant Animal health products. Asahi Vet Japan Co., Ltd. Animal health products. Fukumusume Sake Brewery Co., Ltd. Alcoholic beverages. Koyo Fudosan Co., Ltd. Real estate brokerage, subcontracted office work. Sun Associates Co., Ltd. Patent-related subcontracting. Asahi Kasei Amidas Co., Ltd. Personnel placement, agency, and training; ISO consulting. Asahi Kasei Ability Co., Ltd. Printing, bookbinding, and office work. Asahi Kasei Fukuri Service Corporation Management of welfare facilities. Sun Foods Co., Ltd. Provision of employee meals. Asahi Research Center Co., Ltd. Information and analysis. Sun Trading Co., Ltd. Sales of fibers, chemicals, and medical devices. Shin Nihon Salt Co., Ltd. Table salt. Asahi Salt Co., Ltd. Table salt for food processing. Ako Kaisui Co., Ltd. Table salt. Asahikasei Jyoho System Co., Ltd. Computer software. Asahi Finance Co., Ltd. Investment, finance. Asahi Engineering Co., Ltd. Plant, equipment, process engineering. San Denshi Industry Engineering of electronics, control, and information systems. Nobeoka-sizai Industry Co., Ltd. Warehousing raw materials. Asahi Kasei Kankyoujigyou Co., Ltd. Disposing of industrial waste. Moriyama Sun Business Co., Ltd. Subcontracting. Sun Business Services Co., Ltd. Subcontracting. Toyo Clean Chemical Co., Ltd. Environmental chemicals, antipollution equipment. Toyo Kosan Co., Ltd. Welfare, insurance, advertising. Toyo Kensa Center Co., Ltd. Environmental and other analyses, clinical testing, soil pollution evaluation.

44 FREQUENTLY ASKED QUESTIONS

We receive many inquiries covering a wide range of subjects related to ESH concerns. Our response to some of the most common are given below

evidence, “it is not necessary to proscribe Q What is being done at polystyrene use,” and “there is no particular need to

1 perform further tests.” the Asahi Kasei Group with Further, the Environment Agency (presently Ministry

regard to endocrine disrupters? of the Environment) stated, “we see no reason for any

further scientific study on styrene dimers and trimers” in its Environmental Hormone Strategic Plan “Speed Efforts at the Asahi Kasei Group The Japan Chemical Industry Association (JCIA) is ’98” announced in May 1998. Styrene dimers and working in cooperation with Japanese governmental trimers were deleted from the list of “chemical bodies, academia, and industry associations in substances suspected of having endocrine disruption Europe and North America to advance the necessary activity” in the November 2000 revision. research and investigation to increase scientific understanding of endocrine disrupters (also called Ongoing efforts endocrine modulators, environmental estrogens, or Nevertheless, because so much unclarity remains exogenous hormonally active agents). The Asahi regarding the endocrine disrupter hypothesis, we Kasei Group has taken an active role in promoting the believe further investigation based on sound scientific JCIA’s work in this area. principles is essential. The Asahi Kasei Group will In July 2001, the JCIA published 36 Questions and continue to promote the advancement of studies to Answers about Endocrine Disruptors (Chuokoron address outstanding questions, while closely Jigyo Publishing) to provide the public with accurate following the progress of the various investigations information in this field. A committee member from and research ongoing worldwide, and we are Asahi Kasei played a leading role in the preparation of prepared to swiftly implement appropriate risk this publication. management measures which are deemed necessary during the course of this process. Endocrine disruption is one area of priority for Measures regarding specific substances The relevant manufacturers associations are working research being conducted by the JCIA as part of the to advance research, experiments, and other Long-range Research Initiative (LRI), with a delegate concrete measures in response to concerns about from the Asahi Kasei Group involved from the outset. the endocrine disrupting potential of specific chemical We also actively participate in international substances. As a member of the Japan Styrene conferences on endocrine disruption. Industry Association (JSIA), the Asahi Kasei Group is involved in efforts related to styrene oligomers. Because polystyrene is commonly used in food Q What measures is the Asahi containers, it was feared that styrene dimers and 2 trimers may be extracted and ingested in harmful Kasei Group taking to comply amounts. The JSIA has commissioned independent with mandatory recycling of studies to investigate the biological effects of styrene containers and packaging? dimers and trimers. The Netherlands Organization for Applied Scientific Research (TNO), an independent testing authority, was commissioned to conduct Containers and packaging make up a large portion of animal tests to confirm whether or not styrene dimers post-consumer waste. The Law for Promotion of and trimers displayed estrogenic activity. The results Sorted Collection and Recycling of Containers and of these tests indicated no estrogenic activity. The Packaging was enacted to reduce the volume of Shokuhin Yakuhin Anzen Center (Food and Drug waste for disposal through measures to recycle post- Safety Center) was commissioned to conduct animal consumer containers and packaging. At present, tests to confirm whether or not styrene dimers and measures to recycle bottles made of glass and trimers resulted in any adverse reproductive or polyethylene terephthalate (PET) are being behavioral effects. The results of these tests implemented, and beginning in April 2000, indicated no adverse effects. implementation will expand to include other Based on the results of these and other tests containers and packaging made of paper and plastic. conducted worldwide, the Japanese Ministry of Consumers, producers, and local governments Health and Welfare (presently Ministry of Health, each play a role in the recycling system established Labor and Welfare), Environment Agency (presently with this law. Consumers have the responsibility to Ministry of the Environment), Ministry of Agriculture, separate recyclable materials from other wastes, and Forestry, and Fisheries, and Ministry of International present them for collection in accordance with local Trade and Industry (presently Ministry of Economy, guidelines. Local governments then are responsible Trade and Industry) have clearly concluded in interim for collecting the recyclable materials. Producers are reports and other documents that on present obligated to recycle and reuse these materials. As an

45 alternative to recycling the materials themselves, incinerators exceeded the regulatory limit. In producers may consign recycling work to the Japan anticipation of the structural and control standards Container and Packages Recycling Association which will come into effect in November 2004, we (JCPRA). The Asahi Kasei Group fulfills its obligation have reduced the number of incinerators to 22, and to recycle packaging for its consumer products an program to achieve full compliance with the new through a consignment agreement with the JCPRA. standards is progressing.

Q What is the Asahi Kasei Group Q What measures is the Asahi 3 doing to promote the recycling 5 Kasei Group taking related to of plastics? the control and management of PCBs? We are working in cooperation with a wide variety of related parties to promote the establishment of a Condensers, transformers, and ballasts from disused practical recycling system, and are participating in the fluorescent lamps have been recorded in a ledger Plastic Waste Management Institute’s research on and stored under strict control. In light of the technology. At the same time, we guidelines published jointly in fiscal 2000 by the are independently working to develop easily Ministry of the Environment and the Ministry of recyclable materials, and technologies for the Economy, Trade and Industry for surveying the use utilization of recycled materials. and storage of ballasts with PCBs, we conducted a We have also sought to develop technologies to renewed survey which indicated that there is a enable a reduction of the amount of plastic waste possibility that some fluorescent lamp ballasts still in generated during the production process, and use may contain PCBs. We will systematically replace technologies to recycle plastic waste as feedstock for these fluorescent lamps, and ballasts with PCBs will reuse. be stored safely until an effective means of disposal is For example, many common plastic moldings such available. as TV housings use halogen compounds as flame retardants for improved safety. Plastic wastes containing these compounds are difficult to recycle, and so have generally been landfilled. The Asahi Q What is the Asahi Kasei Group Kasei Group has developed flame-retardant plastics 6 which use no halogen compounds as flame doing with regard to the retardants. control of stratospheric ozone We are also developing compatibilizers which will layer-depleting substances? enable scrap plastic to be mixed with virgin plastic for recycling. As an example of plastic recycling in commercial use, scrap polyethylene terephthalate Of the stratospheric ozone layer-depleting (PET) resin from bottles and film is broken down into substances defined by law, those handled in the its constituent monomers, which are then used for Asahi Kasei Group are mostly used as freezer the production of polyester filament at our Polyester refrigerants. Some are also used as solvents and Plant in Nobeoka. cleaning agents. Refrigeration equipment is being replaced or modified with the latest technology for operation without refrigerants specified as ozone- depleting. We are also conducting research on the Q What is the Asahi Kasei Group substitution of solvents and cleaning agents, and plan 4 to cease using ozone layer-depleting substances doing in relation to the issue of when technology for their substitution is established. dioxin emissions from incinerators? When new waste disposal regulations were enacted What is the Asahi Kasei Group in 1997 specifying dioxin emission levels from Q industrial incinerators, we surveyed emissions from all 7 doing to advance “green 48 incinerators operated the Asahi Kasei Group, procurement”? including small-scale incinerators (50 kg/hr capacity or less) to which the 1997 waste disposal regulations did not apply. To ensure that emissions from all of “Green procurement” is an aspect of our Responsible our incinerators would comply with the regulatory Care program which forms a natural extension of our limit, we decided that we would cease using any long-standing safety management system for incinerator which could not be brought into procurement. When purchasing feedstocks, the compliance. dangers and hazards of the material and relevant Results of our survey indicated that none of our regulations are researched and confirmed, and where

46 deemed necessary purchase is foregone or conservation, energy conservation, and waste appropriate strict control measures are instituted to reduction. Asahi Kasei also supports research related ensure environmental integrity as well as legal to environmental preservation conducted by compliance. universities and other research bodies. “Green procurement” as presently implemented includes the following measures: • Selection of suppliers who demonstrate outstanding efforts for environmental preservation. Q Is the Asahi Kasei Group • Purchase of “green” office supplies, such as 100% 9 implementing life cycle recycled paper. • Use of recycled feedstocks, such as purchase of assessment (LCA)? post-consumer PET bottles for chemical recycling to produce polyester filament. To further advance “green procurement” In the Asahi Kasei Group, we have performed studies measures, we are preparing a Green Procurement using LCA and life-cycle energy assessments for our Guideline. In determining the standard for “green” food wrapping film and housing products. Based on products appropriate for the Asahi Kasei Group, a product's function and performance characteristics, points of reference include products bearing the “Eco LCA is a method of evaluation of the environmental Mark” logo, the database of the Green Purchasing burden of a product throughout its life cycle - from Network, and the purchasing specifications set forth the procurement of raw materials, through in the Law on Promoting Green Purchasing. production, distribution, and use, to disposal. We believe LCA is potentially an effective tool for comparing the environmental impact of different products. Q What research and development Recently, purchasers have begun including 8 is the Asahi Kasei Group consideration of environmental impacts in the selection of products, but an objective determination performing related to of which among several products is most environmental protection? environment-friendly can be difficult. Concepts such as LCA can be very useful in assisting this process. The Asahi Kasei Group has long worked to develop Unfortunately, LCA is still under development, and technology which would contribute to environmental sufficient data has not yet been compiled for its use protection, and as shown in the Environment-friendly to be practical at present. Products and Technologies section of this report, Despite the challenges, we believe that concepts these efforts have yielded a variety of results. In such as LCA to evaluate the environmental impact of addition, the Corporate Research and Development products over their life cycle are important, both for Administration is presently conducting research in consumers when they choose products and for several areas which are relevant to environmental manufacturers when they develop new products. protection. These include development of basic technology for water treatment using microorganisms with water purifying activity in place of chemical agents, and development of an anisotropic conductive film used for electrical connections in place of solder to prevent lead pollution. To mitigate the amount of waste, a variety of applications in addition to construction materials have been developed to effectively utilize sludge generated in the production of autoclaved lightweight concrete panels. For energy conservation and clean energy, we have commercialized a phenolic foam insulation panel with outstanding thermal insulation performance in construction applications. We are also developing a proton exchange membrane for use in polymer electrolyte fuel cells, a promising next-generation clean energy source. In addition, microanalysis technology which enables analysis of samples of extremely low concentration has been established. Applications will include endocrine disrupters and substances associated with sick house syndrome. Our Corporate R&D Administration is guiding all effort in R&D and new business development by the concept of “green and sustainable technology” to achieve resource

47 Independent Review

[translation from Japanese]

June 28, 2002 Responsible Care Verification Center Chief Director Yasuo Tanaka To: Kazumoto Yamamoto, President Asahi Kasei Corporation

Scope and Objectives of Verification This Responsible Care Report Verification is performed with respect to the Responsible Care Report 2002 Edition (“the Report”) prepared by Asahi Kasei Corporation, with the scope of verification as shown below, with the objective of expressing an opinion from the perspective of a chemical industry specialist. The Responsible Care Verification Center also holds the objective of contributing to a heightening of the level of Responsible Care activities of the corporation subject to examination, as the Report is positioned as reporting on the state of implementation of its Responsible Care activities. In fiscal year 2002, the verification system is in a period of preparation, and verification is implemented as part of a pilot phase. Further, environmental accounting has not been included in this verification.

Scope of Verification 1. The appropriateness and reasonableness of methods of calculation and aggregation of performance indices (numerical values), and the accuracy of numerical values. 2. The accuracy of information other than performance indices (numerical values). 3. Evaluation of Responsible Care activities.

Verification Procedures • At the corporate level: Examination of methods of aggregation and compilation of performance index data reported from each site. Confirmation of the veracity of reported information by interviewing management and compilers of the Report, and examining internal documents. • At the site level: Evaluation of methods of calculation and aggregation of performance index data and accuracy of numerical values by interviewing each responsible party and examining internal documents. The Fuji Office was selected for verification of performance indices by sampling.

Opinion 1. The appropriateness and reasonableness of methods of calculation and aggregation of performance indices (numerical data), and the accuracy of numerical values. • Performance indices contained in the Report have been disclosed following a reasonable and proper process of calculation and aggregation. No important matters warranting correction are believed to exist. • Regarding the scope of energy consumption, consideration of energy aside from that subject to the Energy Conservation Law has been left as a matter for further study. 2. The accuracy of information other than performance indices (numerical values). • Information contained in the report has been confirmed to be accurate with respect to supporting internal documents. Some slight inaccuracies were found in the draft stages but have already been corrected, and no important matters warranting correction are believed to exist at present. 3. Evaluation of Responsible Care activities. • The Asahi Kasei Responsible Care Principles, the review of the results of Corporate Responsible Care Audits by the Responsible Care Committee, the Asahi Kasei Responsible Care Symposium, and the Responsible Care Management System are functioning properly, and various performance indices are improving as a result. • Notable leading-edge Responsible Care measures include chemical recycling of PET bottles as a measure for environmental preservation, and the personal diet management system as a measure for workplace safety, hygiene, and health.

48 Hibiya Building 1-2 Yurakucho 1-chome, Chiyoda-ku Tokyo 100-8440, Japan Please direct any questions or comments regarding this pamphlet to: Environment & Safety Department Phone: +81-3-3507-2192 Fax: +81-3-3507-2452 URL: http://www.asahi-kasei.co.jp/

Published October 2002

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

Printed on recycled paper 02.10 (SN) Your comments and opinions are welcome.

We publish this report in the hope that it will serve to bring greater understanding and appreciation for the ESH efforts which constitute our Responsible Care program, the results we have achieved, and the progress which is under way. Our primary objective is that information be presented fairly and accurately; compromises have inevitably been made in terms of scope and comprehensiveness for the sake of concision and clarity.

If there are any questions or points of interest which we have failed to answer or address, or if you find this report or our ESH program lacking in any regard, we would appreciate if you would take the trouble to let us know by fax (a fax form is provided on the reverse of this page for your convenience). Any feedback would be most welcome.

Asahi Kasei Corporation Environment & Safety Department Fax: +81-3-3507-2452 www.asahi-kasei.co.jp/ Asahi Kasei Corporation FAX : +81-3-3507-2452 Environment & Safety Department Re: Responsible Care Report 2002 Edition: Environmental Preservation, Product Safety, Operational Safety, Workplace Hygiene and Health

Do you find the content of the report in any way insufficient or in need of improvement? Is there any subject matter which you would like to see treated in greater detail? Please comment:

What is your impression of our Responsible Care program?

Is there any aspect of our Responsible Care program which you would like to see changed or improved? Please comment:

Other comments or questions:

How do you rate our Responsible Care Report? Please circle one: 1. Poor 2. Below average 3. Average 4. Good 5. Excellent

Thank you for your cooperation. We would appreciate if you would also fill in the following:

Name

Address

Occupation