Osaka Office Kogin Bldg., 4-1-1 Koraibashi, Chuo-ku, Osaka 541-0043, Japan TEL : +81-6-6223-9111 FAX : +81-6-6201-3716 Tokyo Office Hibiya Dai Bldg., 1-2-2 Uchisaiwai-cho, Chiyoda-ku, Tokyo 100-0011, Japan TEL : +81-3-3506-7475 FAX : +81-3-3506-7598 CSR Report 2016 Providing affluence and comfort to people and society, with our unique technology. 2016.10.1300 Providing affluence and comfort to people and society, with our unique technology. P.04 P.06 P.08 P.10 P.12 P.14 P.15 P.22 Special Feature Message from Evolving as an Profile of Our Product Lines / Nippon Shokubai’s Earning Public Trust and Responsible Care innovative chemical company that Research & Development Corporate Governance the President provides new value for people’s lives the Nippon Shokubai Group Highlights CSR Concept Contributing to Society Activities Domestic Network Vision for 2025 General Meeting of Shareholders ● Nippon Shokubai ● Affiliate “An innovative chemical company Tokyo Fine Chemical CO., LTD. that provides new value Suita Research Center Japan Composite Co., Ltd. for people’s lives” Board of Audits Board of Directors NIPPOH CHEMICALS CO., LTD. Auditors Auditors: Board of directors: 8 members in total NIPPON NYUKAZAI CO., LTD. 4 in total (6 internal, 2 external) Himeji Plant NIPPON SHOKUBAI TRADING CO., LTD. Long-term Business Plan (2 internal, Himeji Research Center Reports 2 external) Tsukuba Research Center Reborn Nippon Shokubai ▲ NIHON METHACRYL MONOMER CO., LTD. 2020 President Accounting CHUGOKU KAKO CO., LTD. NISSHOKU TECHNO FINE CHEMICAL CO., LTD. Auditors NIPPON POLYMER IND. Co., Ltd. Tokyo Office Corporate Managing NS Green Co., Ltd. Kawasaki Plant Collaborates Committee Legal NISSHOKU ENGINEERING Provides support SERVICE CO., LTD. Umicore Shokubai Japan Co., Ltd. Advisors Global Network Audits CATOX Co., Ltd. Society Environment Risk Management Committee Osaka Office Nisshoku Butsuryu Co., Ltd. Economy Luxembourg CSR Management Committee Consultation ●Affiliate Community Government 1 NIPPON SHOKUBAI EUROPE N.V. Auditor Office RC Promotion Committee Belgium 1 2 Collaborates 2 USA Umicore Shokubai S.A. Shareholders Suppliers (Texas, Tennessee) Investors Korea 3 LG MMA Corporation 3 Compliance Committee Employees Customers China (Jiangsu) 4 4 NIPPON SHOKUBAI KOREA CO., LTD. 5 11 12 13 China (Shanghai) 6 5 Internal Control Committee USA NISSHOKU CHEMICAL INDUSTRY (Texas) (ZHANGJIAGANG) CO., LTD. 7 Taiwan USA (Texas) 6 NISSHOKU TRADING (SHANGHAI) CO., LTD. Executive Officers 8 9 7 SINO-JAPAN CHEMICAL CO., LTD. 10 Singapore 8 SINGAPORE ACRYLIC PTE LTD Singapore Nippon Shokubai 9 Code of Conduct Indonesia NIPPON SHOKUBAI (ASIA) PTE. LTD. Internal 10 PT. NIPPON SHOKUBAI INDONESIA Administration & Sales & Research & Production & Group Mission Audit Marketing Development Technology Internal Finance 11 American Acryl L.P. Management Commitment Office audit 12 American Acryl NA, LLC Corporate Credo 13 Nippon Shokubai America Industries, Inc. 2 NIPPON SHOKUBAI CO., LTD. CSR Report 2016 NIPPON SHOKUBAI CO., LTD. CSR Report 2016 3 Message from the President The “Reborn Nippon Shokubai” Emerges. Message from the President Special Feature We aim to become a company that everybody can be proud of. • A company that promotes work safety and peace of mind • A company that rewards people who make their best Profile of efforts and achieve results the Nippon Shokubai Group • A company that people can be proud to work for Masanori Ikeda, President Development Highlights Our Product Lines / Research & Achieving progress with our medium-term business plan and Developing an active corporate team and organization “Reborn Nippon Shokubai 2020,” our long-term business plan In January 2015, employing the slogan, “Think and act on make an effort to take the necessary steps to implement CSR Concept We have adopted a Group mission we call strategy and investment plan, we have addressed your own,” we launched initiatives intended to renew our these actions. In parallel with this, we initiated on-site visits Nippon Shokubai’s “ — Providing affluence and company-wide priority issues while strongly organizational culture. of executive officers to each workplace and small group comfort to people and society, with our unique demonstrating our sustainable management capabilities. We are currently implementing two initiatives: “reforming activities with interdivisional teams and the like. Moreover, technology.” At Nippon Shokubai, we are striving to In fiscal 2014 and 2015, we steadily achieved the awareness,” which focuses on all employees; and we are addressing organizational reforms in order to implement our vision for 2025, which is “to become an objectives of our medium-term business plan. “reforming the system,” which targets the entire company. transform the structure of our Company. Through these innovative chemical company that provides new value for We are now facing very difficult social conditions, At first, we initiated an activity by which all employees and activities, we are transforming our culture into one that people’s lives.” We have formulated and launched marked by a destabilizing global situation and a decline executive officers swear to “my action declarations” and promotes active discussions and adopts new challenges. “Reborn Nippon Shokubai 2020,” our long-term business in the global economic growth rate. Despite this plan spanning the period from fiscal 2014 to fiscal 2020, somewhat tense situation, we intend to push forward to Corporate Governance and our medium-term business plan, which we are achieve our objectives in fiscal 2016, the final year of our Strengthening Group management implementing for the three years beginning in fiscal 2014. medium-term business plan. We recognize that it is even more important to strengthen utilize the Group’s core competencies in order to Under our growth-oriented business foundation the business foundations of Group companies that are maximize the synergy of Group companies and boost operating under volatile business conditions, including corporate value. increasing competition in worldwide markets. We will Safety takes priority over production Alongside our Group Mission and Management we will complete all related efforts and will undergo a Contributing to Society Conclusion and Trust Earning Public Commitment, we accord the highest priority to our third-party inspection by outside experts that will corporate credo of “Safety takes priority over production” examine our past initiatives. The results will drive forward We will strive as a team to achieve the “Reborn Nippon With this edition, we are introducing the corporate and work to strengthen our corporate culture of the progress of the initiatives that we will begin to Shokubai” — a company that everybody can be proud of. social responsibility (CSR) initiatives of the Nippon prioritized safety while improving our safety awareness, implement in fiscal 2017. We will continue with our 1. A company that promotes work safety and peace of Shokubai Group in a manner that is easier to understand. knowledge, and skills. diligent efforts toward ensuring safe and reliable mind We welcome your continued support and candid Since the accident that occurred at our Himeji Plant in operation in order to become “a company gaining further 2. A company that rewards people who make their best opinions, and we greatly appreciate your cooperation 2012, we have been focused on safety measures and on public trust as a responsible chemical company.” efforts and achieve results with our initiatives. further strengthening our safety activities. In fiscal 2016, 3. A company that people can be proud to work for June 2016 Responsible Care Activities 4 NIPPON SHOKUBAI CO., LTD. CSR Report 2016 NIPPON SHOKUBAI CO., LTD. CSR Report 2016 5 Strengthening Our Business Foundation by Implementing Our Long-term Business Plan Special Feature In fiscal 2014, we launched “Reborn Nippon Shokubai 2020,” pillar will be built on functional chemicals, new energy, and our long-term business plan. This plan encompasses our health and medical businesses. At the same time, we will corporate strategy, in which we set out what we envision for further strengthen our existing businesses, which include Message from the President 2020, particularly the milestones we must reach to attain the ethylene oxide as well as our flagship businesses of acrylic goals of our long-term plan, our “Vision for 2025.” Our first acid and superabsorbent polymers. We aim to be a company Evolving as an innovative strategy is “to further strengthen our existing businesses and that continually nurtures the seeds of emerging businesses. By core products;” our second is “to raise a pillar of new business 2020, we will have made more proactive investments in Japan that will power our next surge of growth.” Specifically, our new and around the world. chemical company that Special Feature Our Core Business Our Himeji Plant is constructing a superabsorbent polymer plant capable of producing provides new value 50,000 tons/year that is scheduled for completion in summer 2016. Meanwhile, our subsidiary Nippon Shokubai Europe N.V. (NSE) is constructing a superabsorbent polymer plant as well as a plant that produces its base material, acrylic acid. These two plants will each have a capacity of 100,000 tons/year and are scheduled for completion in 2017. for people’s lives The Company foresees a substantial increase in demand for superabsorbent polymers Profile of primarily in Central and Eastern Europe. Therefore, through capital investments that increase our capacity