Top > Responsible Care (RC) Activities

Basic Approach
In our role as a chemical corporation group with established business bases within Japan and abroad and supplying diverse materials, products and systems to a wide range of industries, stably supplying products and ensuring their quality and safety, offering safe and hygienic work environments and promoting businesses with lower environmental load are among our most important social responsibilities. Based on this philosophy, the Mitsubishi Chemical Group has participated in Responsible Care (RC) activities, which are self-initiated activities by the chemical industry for ensuring environmental conservation, health, and safety, since the foundation of the Japan Responsible Care Council in 1995. The five mainstay activities are process safety and disaster prevention, occupational safety and health, environmental preservation, quality assurance and chemical safety. By conducting activities that conform to the Mitsubishi Chemical Group RC Promotion Policy, we aim to build relations based on trust with the public and help in developing a sustainable society.

Mitsubishi Chemical Group RC Promotion Policy

1. Environment and safety are core focuses of our business activities Find out more 2. Committed to customer confidence and quality assurance Find out more 3. Targeting zero accidents and workplace injuries Find out more 4. Working to minimize waste and harmful chemical substance emissions Find out more 5. Working to conserve resources and energy Find out more 6. Developing technologies and products that contribute to the environment and safety Find out more 7. Working to strengthen our public reputation Find out more

Mitsubishi Chemical Group companies promoting RC Activities *

denotes subsidiaries of Mitsubishi Chemical as stipulated by the Japanese Companies Act, for which the Group performance data are collected and published in this CSR report. denotes (overseas) subsidiaries of Mitsubishi Chemical as stipulated by the Japanese Companies Act, which are outside the scope of Group performance data collection and publication in this CSR Report. Unmarked companies indicate those outside the scope of Group performance data collection and publication in this CSR Report.
* To further ensure promotion of Responsible Care (RC) activities, among domestic and overseas Mitsubishi Chemical Group companies, principally

companies with operating divisions that handle chemical products participate as Mitsubishi Chemical Group companies promoting RC Activities.

Performance products domain Shinryo Corporation Chuo Rika Kogyo Corporation Nippon Kasei Chemical Co., Ltd. Nippon Synthetic Chemical Industry Co., Ltd. Frontier Carbon Corporation Mitsubishi Chemical Analytech Co., Ltd. Mitsubishi-Kagaku Foods Corporation Mitsubishi Kagaku Media Co., Ltd. Yuka Denshi Co., Ltd. Tai Young Chemical Co., Ltd. Tai Young High Tech Co., Ltd. Mitsubishi Kagaku Imaging Corporation Mitsubishi Chemical Infonics Pte Ltd. Resindion SRI Healthcare domain API Corporation Mitsubishi Chemical Medience Corporation

Industrial materials domain Echizen Polymer Co., Ltd. Kashima-Kita Joint Electric Power Corporation Kashima Motor Co., Ltd. Kawasaki Kasei Chemicals Ltd. Kansai Coke and Chemicals Co., Ltd. San-Dia Polymers, Ltd. J-Plus Co., Ltd. TM Air Co., Ltd. Japan Polychem Corporation Japan Unipet Co., Ltd. Mitsubishi Engineering-Plastics Corporation Yupo Corporation APCO (Suzhou) Co., Ltd. Sam Nam Petrochemical Co., Ltd. Sunprene (Thailand) Co., Ltd. Sam Yang Kasei Co., Ltd. Ningbo Mitsubishi Chemical Co., Ltd. Beijing Ju-Ling-Yan Plastic Co., Ltd. Pt. Mitsubishi Chemical Indonesia Mitsubishi Chemical Performance Polymers, Inc. MCC PTA India Corporation Private Limited MCC Advanced Polymers (Ninbo) Co., Ltd. Others Mitsubishi Chemical Engineering Corporation Mitsubishi Chemical Group Science and Technology Research Center, Inc. Mitsubishi Chemical High-Technica Corporation Mitsubishi Chemical Logistics Corporation Rhombic Corporation Mitsubishi Chemical USA Inc.

Top > Responsible Care Activities > RC Management

Responsible Care (RC) activity promotion organization

The Mitsubishi Chemical Group RC Promotion Committee meets annually, chaired by the president of Mitsubishi Chemical with operating officers in charge of research, manufacture, operations, and common divisions participating. The meeting examines and finalizes RC activity plans for the entire Group and confirms the progress in the plan-do-check-act (PDCA) cycle for RC activities. Based on the activity policies and plans finalized at the meeting, divisions of Mitsubishi Chemical and Group companies develop activity plans fitted to the type and description of their businesses and conduct RC activities.

RC activities of the Mitsubishi Chemical Group

RC activity promotion organization of Mitsubishi Chemical and the Mitsubishi Chemical Group
The Mitsubishi Chemical RC Promotion Committee, chaired by the executive in charge of RC and bringing together the heads of manufacturing, research, sales, operations, common divisions, and other areas, meets annually to examine and finalize the outcomes of activities based on the fiscal year's RC Activity Policy, along with policies for the next fiscal year. All locations and divisions develop their own RC activity plans pursuant to the Mitsubishi Chemical RC Activity Policy, and then execute them. The annual Mitsubishi Chemical Group RC Promotion Committee meeting, chaired by the President of Mitsubishi Chemical, examines and finalizes the Mitsubishi Chemical Group RC Activity Policy. The Mitsubishi Chemical RC Promotion Committee examines and finalizes the draft of the RC Activity Policy brought before the Mitsubishi Chemical Group RC Promotion Committee.

RC promotion organization at Mitsubishi Chemical and the Mitsubishi Chemical Group

RC activity promotion organization of Group companies

Group companies have established organizations tailored to their business activities, and charged with efficiently promoting RC activities along with Mitsubishi Chemical. Mitsubishi Chemical conducts regular audits to confirm progress in activities at Group companies and to provide advice.

Developing databases for environmental conservation, safety and security

Mitsubishi Chemical configures the Environmental Protection and Safety Database as a system to support RC activities. Information related to RC is shared and managed using a database at each stage from product development to manufacturing.

Environmental Protection and Safety Database

RC audit
Mitsubishi Chemical conducts RC auditing at each facility and division engaged in manufacturing, research, and operations of Mitsubishi Chemical and Group companies. During fiscal 2010, the Environmental Audit Office was established in June 2010 within the Environmental Safety and Quality Department of Mitsubishi Chemical head office, as part of recurrence prevention measures for the inappropriate data processing incident during fiscal 2009 involving environmental analysis data at the Yokkaichi Plant. This was done for the purpose of intensifying audit functions with respect to environmental management. Comprehensive audits were also conducted, even for slips issued over the course of the past three years, to confirm that all domestic plants and research laboratories of Mitsubishi Chemical and Group companies have conducted appropriate environmental management. As the result, the audit revealed about 200 flaws in management aspects such as in-house regulations and methods of recording analyzed data, as well as organizational and other areas. Advice on improvement was promptly provided. During fiscal 2011, we plan to continue with comprehensive environmental audits, and to monitor improvements in the flaws pointed out during fiscal 2010.

Top > Responsible Care Activities > Process Safety and Disaster Prevention

Promoting Priority Measures for Zero Facility-Related Accidents

Recognizing that safety is the foundation of corporate activities, Mitsubishi Chemical undertakes safety activities that aim to achieve zero facility-related accidents. In fiscal 2010, as set forth in the APTSIS 10 mid-term management plan, and under a policy of reaffirming a safety-first awareness for production divisions, efforts were made to prevent accidents , such as full implementation of prevention measures against recuring accidents and trouble, and the announcement of specific measures that set near-misses and trouble as leading indicators. Fiscal 2011 marked the start of the APTSIS 15 mid-term management plan. From fiscal 2011, a new target of boosting awareness among professionals on the frontlines of production sites was added for attaining zero facility-related accidents, along with conventional targets to improve systems to prevent recurring accidents and serious trouble and implementing measures to prevent them, so that they will take hold in the consciousness of our workers.

Priority measures implemented in fiscal 2010

The following measures were implemented comprehensively and companywide for the purpose of maintaining zero facility-related accidents. 1. Comprehensive, companywide implementation of recurrence prevention measures for accidents and trouble (1) Facilities: improvement targeting more effective safety measures Verification was made on whether safety measures that were implemented to prevent the recurrence of accidents and trouble are effective, and whether measures against accidents and trouble implemented in the past have retained their efficacy. (2) Management: revisions to make standards persuasive and unified, and making ourselves proficient with them The standards were organized systematically, in addition to making a series of revisions to safety standards that need to be unified companywide. Application of the revised standards began at all plants. (3) Confirmation on measures: practical RC review Concerning the establishment of standards for safety measures and their operation status, along with the execution of measures, the review not only looked at progress at plants, but also examined the details and efficacy, to fully execute the planned measures. 2. Developing specific measures using near-misses and trouble as leading metrics

Number of facility-related accidents

Increasing the safety of processes, facilities, and work procedures by developing SA and SR activities
When starting to manufacture new products or improve existing processes, the Mitsubishi Chemical Group conducts safety assessments (SA) on manufacturing methods and processes at each stage of development, construction, and operation. For facilities and work procedures with existing processes, Safety Review (SR) instructors1 plants have evaluated potential risks comprehensively, systematically and continuously since 2003 to promote SR that further increases safety. One of the evaluation methods used is HAZchart analysis, developed jointly by Mitsubishi Chemical and Mitsubishi Research Institute, Inc. This is an evaluation method that enables process designers and those in charge to use at worksites and make decisions based on quantitative findings. It facilitates processes from accident scenario formulation to quantitative evaluation, allows worst-case scenarios to be easily assumed, enables common factors and phenomena to be easily handled, and offers a host of other features. By using supporting software, anyone can easily conduct safety evaluations. HAZchart analysis is currently being used at Mitsubishi Chemical in times of large-scale reform or establishment of plants with potential risks such as fire, explosion or leakage of toxic substances, and also at times of process safety review (total checking on process safety) at existing plants. In fiscal 2010, the supporting software was significantly improved to make the tool even easier to use and understand. Taking the situation as an opportunity, efforts will be made to disseminate the analysis tool even further throughout the Mitsubishi Chemical Group. We are also considering commercialization of the software in the future as PHAOrganizer Ver. 3.
1 SR instructors: Senior staff and engineers with ample knowledge and experience in processes and safety measures assume this role. Instructors take part in SR

for all plants conducted at the establishment they are in charge of. They identify and extract risks and utilizing risk analysis methods they conduct objective risk assessment in order to support efforts to reduce risk.

Flow of HAZchart analysis

Preparation of accident scenario using HAZchart Transformation to FT2 to calculate the occurrence probability Results are plotted on the risk matrix for evaluation, based on which safety measures are formulated
2 Fault tree (FT): Also referred to as a failure tree diagram, this is used for analyzing the causal relationship concerning accidents in systems and calculating

occurrence probability.

Boosting plant reliability by sophisticating and disseminating fire- and explosionprevention technologies
The Mitsubishi Chemical Group has established the Safety Engineering and Environmental Integrity Group within the Mitsubishi Chemical Group Science and Technology Research Center for enhancing existing technologies and measures related to safety. The group works to sophisticate technologies for risk forecast of chemical substances, verification and process risk evaluation in order to prevent fire, explosion and leakage of harmful substances, in each phase from research and development (R&D) to manufacturing, transport, use and disposal of the product. At the same time, a safety technology database is being developed at the group and disseminated among all Mitsubishi Chemical Group companies. The latest safety technologies and information are being used for enhancing plant reliability in R&D and SA and SR when a new plant is constructed or existing facilities are modified. If an accident or trouble occurs, the group investigates the causes from scientific viewpoints and proposes measures for recurrence prevention. Process safety education also began in fiscal 2009 for the middle-tier workers of each plant. Lessons may be applied to safety evaluation on substances and plants with which participants are involved in daily work. Over 250 people participate in the seminar each year and have applied what they learned in their duties. Education will continue being given in order to strength the workforce's abilities.

Accident-prevention drills focusing on logistics safety

Along with Mitsubishi Chemical Logistics Corporation, Mitsubishi Chemical also works to prevent accidents in logistics processes. Accident prevention drills are conducted at least once a year at major logistics centers, assuming various logistics accidents. Issues revealed through the drills are addressed promptly in order to make improvements, thereby also establishing organizations that can smoothly handle emergency situations.

Drill assuming oil leakage from tankers

Awarded 2010 Honorable Mention for Papers on Accident Prevention Measures with Hazardous Materials
Marika Higuchi Special Solvent Department, Production Division 2, Mizushima Plant Mitsubishi Chemical Corporation I was assigned to a production site, and through the three-shift practical training3 that lasted for about five months I learned a great deal. The paper that was awarded the 2010 Honorable Mention for Papers on Accident Prevention Measures with Hazardous Materials (hosted by the Hazardous Materials Safety Techniques Association) summarizes the safety activities addressed at the Special Solvent Department where I was given practical training. The specific topics discussed in the paper are thorough management of work procedure instructions (KY card) and utilization of work safety instructions. These two measures allow even workers with only a few years of experience to work independently, helping us to maintain plant safety and pass down technologies while increasing knowledge and sensitivity for duties assigned. The practical training deeply convinced me that safe and stable operations are vitally important for production divisions, thanks to the enthusiastic instructions by senior workers and detailed work procedure documents. Unexpectedly, I was able to attend the awarding ceremony for the paper, which gave me the chance to speak with the Commissioner of the Fire and Disaster Management Agency and other people from outside the company. In my conversations I was able to learn about safety activities conducted outside our company, and reaffirmed that safety does not come naturally but is realized only by thoroughly managing risk. I intend to effectively utilize this experience to continue contributing to our society through manufacturing with a strong belief in safety first.
3 Three-shift practical training: workers work on three shifts at chemical plants, because they operate 24 hours a day. Three-shift practical training is

With the Commissioner of the Fire and Disaster Management Agency (right)

Confirmation by pointing while calling out names

training on operations given while taking part in the three-shift work duties.

At Mitsubishi Chemical's Kashima Plant, thorough recurrence prevention measures against similar disasters are being implemented as a part of the lessons learned from a fire that broke out in December 2007. Initiatives have also begun for cultivating and disseminating throughout the plant a culture and climate that emphasizes safety, aiming to prevent all types of disasters and accidents. Starting with identification and analysis of trouble and issues inherent in organizations and staff at the Kashima plant, we decided on what our ideal state would be. Five priority measures were formulated for realizing the ideal, for which efforts are being vigorously taken.

Implementation structure
Progress in activities for promoting safety culture is being confirmed at the Safety Culture Promotion Meeting (held every month) chaired by the plant manager. The Safety Culture Promotion Office supports various activities and strives to disseminate safety culture throughout the plant. The diagram below shows the organization for safety culture promotion.
Five committees and the measures they implement

Specific activities and outcomes of each Committee for promoting safety culture
1. Personnel Development Committee - Transferred part of the authority to approve construction safety instructions - Reorganized each production department (greater independence for deputy manager) - Reviewed the structure of the Production Department (established Technological Study Team) - Formulated and implemented career plans for staff and foreman - Set targets for duties of Managers and conducted evaluation

- Conducted evaluation on Managers' skills (management actions) 2. Working Style Reform Committee - The following three priority measures have been promoted (1) Promoted measures for time creation (e-mail, conferences, etc.) E-mail reform: reducing e-mails to Managers and enhancing communication Conference reform: reducing burdens on Managers at meetings and boosting production efficiency (2) Continuing making small actions to improve efficiency (3) Supporting each worker increasing work efficiency 3. Rules Reform Committee - Configured more persuasive revision processes by having opinions and voices of employees and partner company workers reflected - Making reviewed and improved rules that have grown in scale and complexity easier to use (rule reform situations: cases being studied 75; cases resolved 64) 4. Enhanced Safety Capabilities Committee - Configured an improvement cycle of sensing, conveying, changing and confirming, and put the cycle into practical application - Continued generating new wisdom to also be shared by future generations (know-why collection) from near-misses in work and construction Number of near-misses submitted: 200-300 cases/month (first half of fiscal 2009) 800-1,000 cases/month (fiscal 2010) Number of awards to Section Managers: 10-20 per month (first half of fiscal 2009) 30-50 per month (fiscal 2010) 5. Enhanced Plant Management Capabilities Committee - Cultivating sensitivity that never overlooks signs of abnormality (implementing expert maintenance education, training based on examples, improvement in patrols, expert maintenance patrol, and other actions) - Recognition of importance of maintenance data and sharing (facility and maintenance divisions jointly conducted facility review) Number of abnormalities detected: 50-200 cases/month (first half of 2009) 400-600 cases/month (fiscal 2010) Number of awards to Section Managers: 5-10 per month (first half of fiscal 2009) 20-35 per month (fiscal 2010) To Mitsubishi Chemical Kashima Plant website (Japanese only)

Examination by Ibaraki Prefecture government In July 2010, Ibaraki Prefecture government officers for the second time monitored the efforts of Kashima Plant to cultivate a culture of safety. The officers noted that our activities were excellent and should be continued. The sixth investigation (April 2009) by the Accident Analysis Committee was the final one, and periodical progress confirmation by the prefectural government began in July 2009. Mitsubishi Chemical will continue its commitment to cultivate a safety culture.
Monitoring by Ibaraki Prefecture officers

Top > Responsible Care Activities > Occupational safety and health > Occupational Safety

Raising Safety Awareness

To strengthen occupational safety measures, the Mitsubishi Chemical Group Accident Prevention and Safety Management Guidelines were formulated in 2005. The Guidelines address topics such as the importance of risk prediction, and management items during regular work1 and non-regular work2 with the purpose of eradicating labor accidents. In line with the Guidelines, our Group companies have revised their in-house regulations and standards. However, the Mitsubishi Chemical Group in recent years has not been able to achieve its target of a maximum of 0.1 loss time injury frequency3. The figures remain high in fiscal 2010, at 0.32 for Mitsubishi Chemical alone and 0.31 for the entire Group. Of the loss time injury accidents occurring in the past five years, 53% were so-called behavioral accidents such as being caught and entangled, falls and drops, and 24% were chemical and thermal injuries distinctive in chemical plants. These two categories account for about 80% of all loss time injury accidents. They are attributed to lack of risk prediction in basic operations and body movements, as well as lack of communication when confirming instructions and conveying messages. The situation is believed to have resulted from a decline in practical abilities at worksites caused by the decreasing number of experienced workers. Given this situation, we have improved sensory training seminars (attended in fiscal 2010 by about 1,600 employees from the seven major plants and about 1,000 Group company employees) and hatto-hiyari activities, to enable workers to assuredly predict risks. Verification and sharing of accident information are also being promoted within the Group to use past examples effectively. Starting in fiscal 2009, minor labor accident examples are being shared within the Group along with important hatto-hiyari examples, so as to obtain accident information before the situation reaches a serious state, and to eradicate accidents at their initial stages.
1 Regular work: Work performed repeatedly on an ongoing basis 2 Non-regular work: Work that is rarely performed repeatedly on an ongoing basis 3 Loss time injury frequency: The number of casualties caused by loss time injury accidents that took place per 1 million total working hours

Loss time injury frequency

Categories of loss time injury accidents (Mitsubishi Chemical Group)

Categories of loss time injury accidents (total for FY2006-2010; Mitsubishi Chemical Group)

Thorough implementation of safety activities

Each Mitsubishi Chemical plant has traditionally established change management standards for tasks accompanying changes in production processes and safety and care standards for construction, maintenance, inspection and other tasks related to manufacturing facilities. In fiscal 2009, these were re-established as unified standards for the entire company. In fiscal 2010, the Mitsubishi Chemical Group Accident Prevention and Safety Management Guidelines and the unified standards were applied for the purpose of increasing accident prevention and safety. Also, Responsible Care (RC) audit has been conducted since fiscal 2008, to confirm whether Group companies are appropriately conducting safety activities pursuant to guidelines and standards, and to help these attempts take root. During fiscal 2010, RC audits were conducted with given priority to plants that need improvements. The safety level for the entire Mitsubishi Chemical Group has improved through specific improvement measures and guidance on activities.

All employees work together on the five safety activities

Hu Wei Department Manager Accident Prevention and Environmental Management Department, Accident Prevention and Environmental Management Division Ningbo Mitsubishi Chemical Co., Ltd. In 2010, Ningbo Mitsubishi Chemical conducted five safety activities under the spirit that people are the base of everything, and with all employees participating and maintaining mutual respect. The cooperative efforts of all employees resulted in Ningbo Mitsubishi Chemical recording zero accidents for two consecutive years. We are pleased with the result, but we should not relax our efforts. As the Department Manager of Accident Prevention and the Environmental Management Department, I will always be vigilant of risks, and continue to make efforts to completely eradicate unsafe factors while discussing issues with senior managers and associates for solving them. In this way, I hope to promote safety culture and further increase teamwork, making our company the best terephthalic acid plant, where people can work soundly and enjoyably, and with a sense of satisfaction.

Five safety activities at Ningbo Mitsubishi Chemical 1. Ensuring work safety by predicting risks and analyzing work safety 2. Increasing safety awareness by collecting accident example data 3. Increasing safety capabilities through education and drills 4. Improving working environment by implementing 5S activities 5. Creating safe workplaces through identification of local issues and making improvements

Top > Responsible Care Activities > Occupational safety and health > Occupational Health

Managing chemical substances properly in the working environment

Mitsubishi Chemical handles numerous chemical substances, including nanomaterials1. To protect the health of employees who handle these substances in their duties, human health impact assessments are conducted in the workplace environment in each stage, from basic research to manufacturing, implementing necessary precautions. Concerning conventionally handled chemical substances, we also carry out not only statutory workplace environment monitoring2, but also voluntary monitoring and exposure (amount of chemical substances with which an individual comes into contact) measurements to suit the conditions in which chemical substances are handled, as a part of ongoing efforts to manage the workplace environment.
1 Nanomaterials: materials in sizes of the order of one billionth of a meter 2 Workplace environment monitoring: conducted for clarifying the amount of harmful factors existing in the workplace environment, and to what extent people

working in the environment are exposed to them

Fostering emotional and physical health

Mitsubishi Chemical actively pursues activities for emotional and physical health. For maintenance of emotional health, training is being given to different tiers of employees on self-care and how to deal with subordinates who suffer from emotional disorders. The necessary training is given at each plant, while promoting a system where employees can feel free to consult with experts. For instance, at the head office, two commissioned physicians are available for consultation both during and outside working hours twice a week. For physical health, we offer specific health guidance3 in response to a request by Mitsubishi Chemical Health Insurance Union, as a follow-up to the standard health examination that businesses are mandated to conduct. The details of counseling and results of health examination are managed carefully, taking the privacy of each employee into consideration.
3 Specific health guidance: examination and health guidance for preventing lifestyle-oriented diseases, with a focus on preventing and eliminating metabolic

syndrome among the insured and their dependents aged 40 to below 75.

Ratio of workforce reaching the specific health guidance (Mitsubishi Chemical)

Work days off due to illness (2010, Mitsubishi Chemical)

Report on activities by Industrial Hygiene Team of Mitsubishi Chemical Indonesia

Mr.Erwin PersonnelSecurity Section Manager Doctor Wahyu and Mr.Dwi SHE Section Manager PT. Mitsubishi Chemical Indonesia manufactures a raw material of synthetic fibers (purified terephthalic acid). Its Industrial Hygiene (IH) team puts forth proposals for improving the workplace environment to the Chairman of Safety, Health and Environment (SHE) Committee, to provide a comfortable and healthy workplace environment and to prevent occupational accidents and work-related illnesses. The IH team consists of representatives of each section, and promotes activities under the guidance of industrial physicians. Since 2005, the IH Team has launched several projects for preventing work-related illnesses. One of these is the Noise Investigation Project (conducted in 2005 and 2006) for guarding workers from noise exposure that could impair hearing. In the project, noise levels in workplace were mapped and signboards were created showing noise levels and calling for workers to ensure they wear appropriate personal protective equipment in areas. Proposals were also made for redesigning facilities in order to reduce noise whenever applicable. From 2006 to 2008, the Heat Stress and Illumination Project was launched to protect workers from thermal stress and dazzling lighting that could cause excessive eyestrain. The project led to standardization of temperature and lighting intensity in the work environment. The Dust Investigation Project was also conducted in 2008-2010. Dust in the workplace was measured, calling for attention to its associated risks and urging workers to wear appropriate protective equipment in areas with the potential risk of lung disease. Proposals were also made to redesign facilities so as to reduce dust exposure whenever applicable. The team is currently surveying from ergonomic aspects the risks inherent in daily behavior and work methods.

Top > Responsible Care Activities > Environmental conservation > Environmental Management

Aiming to reduce the environmental load in all processes of business activities

Mitsubishi Chemical is proactive in seeking to protect the global environment. We strive to reduce the environmental load in all processes in our business activities by pursuing resource and energy conservation, reducing waste, and encouraging reuse and recycling, as well as conserving the environment and developing technologies for these purposes. In addition to preventing contamination associated with our business activities for the air, water, soil, and other natural features, we seek solutions to environmental issues on a global scale. Our efforts include measures to deal with global warming and resource depletion, preservation of biodiversity and development of environmentally friendly products and services.

Top > Responsible Care Activities > Environmental conservation > Preventing Air, Water and Soil Pollution

Preventing air and water pollution by improving environmental facilities and establishing a management structure
The chemical industries handle a wide range of chemical substances, and consume large quantities of fossil fuels that are sources of nitrogen oxide (NOx), sulfur oxide (SOx), and other pollutants. Because of this, the Mitsubishi Chemical Group has addressed environmental issues with the policy of "walking hand-in-hand with regional communities," since 1968 when the Air Pollution Control Act and Water Pollution Control Act were enacted. By installing emission gas and drainage treatment facilities, we have slashed the environmental load on the atmosphere and public water bodies. During fiscal 2010, a number of initiatives were adopted, including a switch to cleaner fuels and incineration treatment of drains with a high environmental load, aiming to maintain the load levels from emitted gases and drains at the levels of fiscal 2009 even as the plant operation ratio began rising as the economy recovered. The particulate matter in emitted gases, NOx and SOx emissions, and chemical oxygen demand (COD) of drains were consequently kept at levels close to those of fiscal 2009. The figures are also considerably lower when compared to those in fiscal 1970. Regarding the management structure, working level personnel from all plants met at least twice during the year to convey and discuss societal trends regarding the environment, as well as companywide improvement targets and plans. The status of progress is reported at audits by management. Meetings to share information with environmental personnel of Group companies are also held regularly, and we have adopted even more practical measures, such as encouraging the acquisition of qualifications as pollution control managers at branch offices and offering repeated training related to environmental conservation to staff engaged in plant operations. Through these measures we pursue environmental management from a perspective geared toward fundamentals of pollution control. As a consequence, the Mitsubishi Chemical Group has fully complied with the requirements of the Air Pollution Control Act and Water Pollution Control Act in both environmental facilities and management structure. We have also established strict voluntary management standards that factor in prefectural ordinances at our production bases, ensuring comprehensive management.

Preventing air and water pollution

Purifying and monitoring soil and groundwater

All Mitsubishi Chemical production bases conduct voluntary surveys on soil and groundwater pollution. Production facilities where the surveys have revealed pollution provide notification pursuant to local ordinances or voluntarily, and continue purification and monitoring measures as instructed by the prefectural or city government. To date, seven of our plants have reported the survey results to local governments: in Kashima, Nagoya, Yokkaichi, Mizushima, Naoetsu, Kurosaki and Tsukuba. Each of these plants continues to implement appropriate measures as instructed by the local government. No new soil pollution was confirmed in fiscal 2010.

At the Mitsubishi Chemical Yokkaichi Plant (Japanese only) , a special investigation team made suggestions on recurrence-prevention measures concerning the inappropriate processing of environmental data revealed in fiscal 2009, involving the inappropriate handling of drainage data and omissions in emitted gas measurements. In June 2010, the plant submitted a final report to the Mie Prefecture and Yokkaichi City governments. Below is the status of progress in recurrence-prevention measures stated in the final report:

1. Strengthening management structure for environmental conservation Specific duties assigned to pollution control officers, supervisors and managers were made clearer, and pollution control managers were appointed from among members of the Responsible Care Department (currently Environment and safety Department). Environmental managers were appointed for Manufacturing Divisions, facilitating information exchange with worksite personnel and ensuring effective functioning of pollution control organizations. 2. More intensive environmental management processes (1) More involvement by pollution control managers and establishing places for discussion To prevent omission of measurements for emission gas analysis and other items, pollution control managers will approve measurement plans and set up meetings for confirmation among relevant personnel following the approval.

Measurement data obtained are cross-checked and confirmed by several people, which prevents tampering. The RC Committee also meets at each location every month to identify all issues and prevent trouble. We continue to build on these regular occasions for opinion exchanges. (2) Involvement by third-party analysis organizations To prevent data substitution and other inappropriate actions, third-party analysis organizations are involved when cross-checking measurement data. 3. Employee education (1) Thorough employee education During fiscal 2010, Plant Managers made a total of 38 advisory talks related to environmental matters, pursuant to the Basic Policy of Environmental Management for Preventing Recurrence and Recovering Trust, to 1,918 people, including employees of Group companies. Worksite patrol for confirmation and advisory talks continues to take place. (2) Compliance education To make the importance of compliance known, education was provided and showed violation examples. A total of 477 staff took lessons in seminars for different tiers of employees, 546 in seminars by the Internal Control Department of the head office and 1,886 via self-initiated seminars (e-learning). We will continue with thorough compliance education by giving advisory talks on environmental compliance at various seminars. (3) Environmental legislation education Seminars on legislation were held a total of 11 times for related personnel, on environmental laws, regulations, prefectural ordinances and pollution control conventions concluded with city governments. 4. Unifying drainage outlets Drainage outlets in 40 locations will be unified in four steps to 16 locations by 2012, for intensifying management at outlets. At the same time, management of pollutant sources at manufacturing facilities will be intensified. The management intensification in the two aspects will significantly reduce the risks of polluted water leakage into public water. The second step was completed during fiscal 2010, reducing the number of outlets to 25. To the Yokkaichi Plant website (Japanese only)

Top > Responsible Care Activities > Environmental conservation > Preventing Global Warming

Promoting energy conservation activities at different locations

In its APTSIS 10 medium-term management plan up to fiscal 2010, Mitsubishi Chemical focused energy conservation activities with a target of, by fiscal 2010, reducing unit energy consumption by 20% or more compared to fiscal 1990. Fiscal 2010 was the third year of the petrochemical plant energy conservation project that began at Mizushima Plant in fiscal 2008 for achieving the target, and the project is now underway at the Kashima, Kurosaki, and Yokkaichi Plants as well. In fiscal 2010, the heat recovery tactic devised at the Kashima Plant was also applied at the Kurosaki Plant, resulting in a reduction of steam consumption as a heat source. While it was about 12,000 tons of CO2 reduction as a result of energy saving activities in fiscal 2010, in-house power generation facilities were also optimized based on forecast future energy demand at the plant. Large-scale facility improvement that would bring cost savings and a reduction in CO2 emissions of about 45,000 tons is underway, with a December 2011 target for completion. To Kurosaki Plant website (Japanese only)

Utility (UTT) facilities 1 optimized at Kurosaki Plant

Hiroshige Sato Technical Group, Production Coordination Section, Petrochemical Production Department 1, Kurosaki Plant Mitsubishi Chemical Corporation At the Kurosaki Plant, the conventional large boilers are being replaced with small package boilers in efforts to streamline the utility supply systems. Even though these are small boilers, their scale is unprecedented for a chemical plant. Many issues needed to be solved, including dealing with the changing quality of steam being supplied. When the boilers are introduced, these issues are solved one by one in close contact with production sites, engineering divisions, and technical divisions. As a result, the boilers entered full-scale operation in May 2011, configuring an efficient utility supply system. Operation and administration at the plants are never lenient. In charge of utility supplies, we are always mindful of the need to reduce costs through energy savings and environmental load while ensuring stable supply, and we continually consider the optimal operations suited to the situations.
1 Utility (UTT) facilities: Auxiliary facilities generally used at plants for functions such as electricity (power reception, transformation and generation),

steam, compressed air, nitrogen, air conditioning (chilled water), water supply and drainage treatment

Reduction in energy consumption and greenhouse gas emissions in fiscal 2010

Compared to fiscal 2008, when production volumes declined significantly due to the global recession, production volumes recovered in fiscal 2009 and 2010, with unit energy consumption in 2010 up 4% from the previous year. The energy consumption amount was reduced from the previous year by 70,000 kiloliters-crude oil/year when converted to crude oil, due to continued energy conservation activities and reconsideration concerning fuel. Consequently, greenhouse gas emissions by Mitsubishi Chemical were 24% lower than in fiscal 1990. The entire Group's emissions also declined; down 1.3% from the previous year. The Mitsubishi Chemical Group will continue striving to reduce greenhouse gas emissions by the entire Group and develop and manufacture products that help conserve energy, thereby contributing to society's overall reduction of total greenhouse gas emissions.

Energy consumption (Mitsubishi Chemical)

Greenhouse gas emissions

Continuing with improvement measures for unit energy consumption in transport

Mitsubishi Chemical submits actual energy consumption amounts, energy consumption reduction plans and other reports to the Ministry of Economy, Trade and Industry each year, as a specified consigner2 stipulated by the amended Act on the Rational Use of Energy that went into force in April 2006. For achieving the Act's target of reducing unit energy consumption by an average of 1% or more annually, seen from a medium- to long-term perspective, Mitsubishi Chemical has sought effective energy usage together with transport contractor Mitsubishi Chemical Logistics Corporation. Attempts are also being made to reduce CO2 emissions. Mitsubishi Chemical has boosted the efficiency of coastal shipping vessels engaged in domestic sea transport and vehicles used for land transport by increasing lots (shipping lot volumes). Also, "friend" fins3 are attached to coastal shipping vessels, and about 300 transport vehicles are equipped with on-vehicle terminals that support eco-friendly driving, in addition to eco-friendly tires. Along with these measures, in fiscal 2010, coating for improving fuel efficiency was applied to coastal shipping vessels. However, highly fuel efficient coastal shipping and railway transport declined due to the effects of restructuring and the Great East Japan Earthquake that struck on March 11, 2011. The weighting of transport modes also changed. As a result, unit energy consumption increased by 0.6% from the previous year, and fell below the targeted 1% reduction in unit energy consumption. However, CO2 emissions were reduced by 13% from the previous year. Improving unit energy consumption seems difficult in fiscal 2011 as well, given the effects of the Great East Japan Earthquake. However, Mitsubishi Chemical will continue action to reduce fuel consumption and CO2 emissions by keeping up with the measures implemented so far.
2 Specified consigner: Business entity that transports 30 million tons-km of cargo in its possession each year 3 "Friend" fin: A tactic for obtaining large thrust force by attaching several fins to the stern in front of the propellers, thereby regulating the water flow to the

propeller. The propeller's torque is suppressed by the water flow-regulating function, enabling navigation with fewer rotations per minute. This method helps conserve energy and reduce CO2 emissions

Actual reduction in unit energy consumption (Mitsubishi Chemical)

Unit consumption excluding return voyages by empty vessels is shown in parentheses. The fiscal 2010 figure indicates unit consumption excluding return voyages.

Breakdown of transport volumes by transport mode in fiscal 2010 (Mitsubishi Chemical)

Top > Responsible Care Activities > Environmental conservation > Reducing Overall Chemical Substance Discharge

Reducing overall PRTR 1 discharge

Mitsubishi Chemical annually publishes the emissions of substances regulated by the Specific Chemical Substances Act2, as well as the 480 types of substances specified by the Japan Chemical Industry Association (Nikkakyo) (including VOC3) and the transferred amounts of each. During fiscal 2010, the second phase of construction work for the benzene emission reduction measures4 (installation of an emission gas incineration kiln) was completed. We have continued to conduct this work as a measure against VOC. Because of the effects of this and other measures, overall discharge was 990 tons, down 90 tons, or 8%, from fiscal 2009. Overall discharge has declined steadily since fiscal 2005. Looking only at substances regulated by the Specified Chemical Substances Act, the discharge in fiscal 2010 was 330 tons, up 22% from fiscal 2009. This is due to significant expansion in the scope of substances regulated by the Specific Chemical Substances Act that resulted from amendments to the Act in fiscal 2010, and the fact that the regulated substances contained in the discharge were measured by microanalysis. We will continue to make efforts to reduce the discharge of substances regulated by the Specific Chemical Substances Act, mainly VOC discharge.
1 Pollution Release and Transfer Register (PRTR): A notification system for the released and transferred amount of chemical substances. This is a system for

clarifying, aggregating, and publicizing the data on the quantity of hazardous chemical substances released into the environment from each source, or the quantity taken outside facilities as a part of waste.
2 Specific Chemical Substances Act: The official title is the Act on Confirmation, etc. of Release Amounts of Specific Chemical Substances in the Environment

and Promotion of Improvements to the Management Thereof. The Act was introduced in 1999, with the aim of improving voluntary management of chemical substances by businesses by clarifying the discharged amount of specific chemical substances into the environment and having the businesses provide information, thereby preventing obstacles to environmental conservation.
3 Volatile organic compound (VOC): Typical substances include toluene and xylene. These compounds became subject to regulation by the amended Air Pollution

Control Act of 2006, as source substances of photochemical oxidants (photochemical smog).

4 Measures to reduce benzene discharge: Cleaning using simple removal facilities was conducted in fiscal 2008, and absorption facilities were installed in fiscal

2009 as a part of the first-phase work.

Total discharge and transferred amount of Nikkakyo specified substances (Mitsubishi Chemical)

Discharge of PRTR-regulated substances

Failure of the entire Group to achieve the targeted VOC discharge reduction

The Mitsubishi Chemical Group was targeting a 50% reduction of VOC discharge by fiscal 2010, compared with fiscal 2000 levels. Proactive measures for VOC reduction have been taken to achieve this target, such as installing flare incinerators5 and replacing tank covers with inner floating roofs. The VOC discharge reduction ratio for fiscal 2009 resultantly was 53% that of fiscal 2000, achieving the target a year ahead of schedule. Thus, the management target was set as maintaining the discharge in fiscal 2010 at the fiscal 2009 level. Notably, reduction measures through cleaning and absorption have been undertaken in a planned manner for the three years since fiscal 2008 for benzene (a hazardous air pollutant), a VOC. An incinerator was installed at the gas discharging outlets of plants in fiscal 2010, which enabled us to achieve the reduction target for benzene as planned. However, the total VOC discharge by the entire Mitsubishi Chemical Group in fiscal 2010 came to 4,650 tons, up about 800 tons from fiscal 2009. The reduction ratio was 44% less than fiscal 2000, preventing us from achieving our target. The major factors behind the failure are that the supply of products to users halted in fiscal 2010 due to large-scale regular repair work conducted every four years, and part of the VOC stored in tanks was released into the atmosphere due to the halting of flare incinerators that remove VOC. Since none of the large-scale regular repair work mentioned above is conducted during fiscal 2011, the targeted reduction of 50% or more compared to fiscal 2000 is expected to be achieved. Studies have already started from both facility and management viewpoints, regarding VOC measures that take the large-scale regular repair work scheduled for 2014 into consideration.
5 Flare incinerators: These detoxify discharged gases by incinerating them at the tip of the chimney, a sufficient distance away from production facilities, because

environmental pollution could result if discharged gases were released into the atmosphere as is.

Volatile organic compound (VOC) discharge

At Shinryo Corporation, the VOC discharge in fiscal 2010 was reduced by 1,100 tons, or 75%, compared to fiscal 2005, when businesses that generate VOC were started. The greatest difficulty in activities to promote reduction was in how to reduce isopropyl alcohol (IPA). This substance is released regularly into hot water while mixing, making discharge reduction extremely difficult. At Shinryo's laboratories, studies began in 2007 on alternative solvents and other matters

concerning both facilities and management. As a result, we were able to significantly reduce discharge into the air by semi-closing facilities, revising operation conditions and preventing volatilization of IPA. This

Semi-closed facilities

enabled us to achieve a VOC discharge reduction far above that targeted by the Mitsubishi Chemical Group, for a 50% reduction by fiscal 2010. Shinryo will continue making efforts to reduce VOC discharge. To the Shinryo Corporation website (Japanese only)

Top > Responsible Care Activities > Environmental conservation > Waste Reduction and Recycling

Continuing with waste reduction efforts to attain zero emissions

To contribute toward building a recycling-based society, the Mitsubishi Chemical Group has stepped up recycling of assorted industrial waste with a target of zero emissions* by 2010. The volume of industrial waste generated by Mitsubishi Chemical in fiscal 2010 was 128,000 tons, down 7,000 tons, or 5%, from fiscal 2009. The major factors behind the reduction were the decline in the Volume of sludge generated due to the halting of plants, which reduced the volume of drainage, and the reduction of incinerated ash because of a reduced volume of waste incinerated during the renovation period of incineration facilities. The recycling ratio of industrial waste improved by 5% compared to fiscal 2009, to 70%. This is a result of stepping up recycling of inorganic sludge and incineration ash into raw materials for cement, recycling wasted carbon and fireproof brick scrap into road subgrade materials, and recycling construction waste through sorted collection. Through these initiatives, the volume of industrial waste Mitsubishi Chemical generated that was ultimately disposed of as landfill was reduced by 400 tons from 2009, even when including landfilled transient construction waste totalling about 200 tons, to 4,000 tons (landfill ratio of 3.5%). However, we were not able to achieve zero emissions by the 2010 target. The major factors for this include: (1) excess sludge directly and temporarily landfilled at facilities where the volume of industrial waste generated exceeded the capacity of in-house incineration facilities, which resulted from a rise in the plant operation ratio; (2) some of the organic sludge and mixed organic and inorganic sludge was landfilled because it did not meet the acceptance standards of the recycling establishments and (3) recycling was not possible with the incineration ash of products judged as below the standard. Mitsubishi Chemical will continue striving to promote recycling during fiscal 2011 to achieve zero emissions, through continued research into recycling destinations for sludge and other waste. The Volume of industrial waste generated by the entire Mitsubishi Chemical Group was 280,000 tons, down 9,000 tons, or 3%, from fiscal 2009. The volume of industrial waste ultimately disposed of as landfill decreased by 6%, from fiscal 2009, to 8,000 tons (landfill ratio of 2.7%). The entire Mitsubishi Chemical Group also fell short of the zero emission target, so we will continue our efforts to increase recycling.
* Zero emissions: The Mitsubishi Chemical Group defines zero emissions as keeping the volume of industrial waste ultimately disposed of as landfill to a maximum

of 1% of the total industrial waste generated (landfill disposal ratio of 1% or less)

Volume of industrial waste generated

Volume of industrial waste ultimately disposed of as landfill and recycling ratio

Zero waste achieved at Kashima Plant

Masami Asaoka Environment Group, Responsible Care Department, Kashima Plant Mitsubishi Chemical Corporation At Kashima Plant, zero waste emissions targeted for fiscal 2010 were achieved a year ahead of schedule, in fiscal 2009. In response, we set a target of zero landfill waste for fiscal 2010. With respect to recycling of items that are generated after selecting and crushing by intermediate treatment companies, disposal of which is difficult, final disposal (recycling) establishments have to date been regarded as unacceptable based on past results and other factors. However, we negotiated patiently with these establishments on the grounds that Mitsubishi Chemical is instructing and supervising the intermediate treatment entities and that it guarantees to take responsibility. Recycling was consequently made possible for this waste, enabling us to achieve a zero total for final landfill waste. We will continue striving to maintain zero waste emissions.

Top > Responsible Care Activities > Environmental conservation > Material Flow

Continuously identifying and measuring material flows

To effectively reduce the environmental load, the Mitsubishi Chemical Group strives to identify material flows (the quantity of resource input and the environmental load generated from that). Below is a summary of the input (the amount of energy, water and raw materials put in) and output (production amounts of products and the amount of discharged waste), by business domain and final product use.

Top > Responsible Care Activities > Environmental conservation > Environmental Accounting

Investments in fiscal 2010 for environmental conservation amounted to about 4.6 billion yen, with expenses at about 26.4 billion yen
During fiscal 2010, a total of about 4.6 billion yen was invested for discharge and other water pollution countermeasures, reducing emission of volatile organic compounds (VOCs) and other atmospheric pollutants, as well as reducing waste, resource and energy conservation and other measures to conserve the global environment and promote greening at plants. Major investments for conserving the environment included: 700 million yen for countermeasures against water contamination, such as improvement and unification of discharge ports, strengthening of water resource management and installing monitoring devices; 400 million yen for reducing emission of atmospheric pollutants, such as adding benzene absorption facilities, installing floating roofs on storage tanks and adding and improving dust collecting devices; 300 million yen for renewing incinerators as a measure to deal with waste; 2.8 billion yen for conservation of the global environment such as in optimization of UTT facilities1 and recovery of waste heat; and 300 million yen for promoting greening at plants. Expenses include 4 billion yen for research and development on production efficiency enhancement, as well as total spending of 26 billion yen for repair of drainage treatment facilities and incinerators, while optimizing maintenance and management costs. The figure was 1.6 billion yen lower than in fiscal 2009. Outsourcing costs related to waste disposal, which are necessary for achieving zero-emission2, increased by 200 million yen from fiscal 2009 to 1.9 billion yen. We plan to continue making investments during fiscal 2011 for reducing discharge risk affecting public water areas, reducing smoke, VOCs and other emissions to the atmosphere, and intensifying monitoring and management. Major investments concerning accident prevention and safety include 100 million yen for safety enhancement measures for light oil recovery facilities from which leakage occurred in the past, and improvement of security measures at business establishments. Though the total expenses were reduced by 2.6 billion yen compared to the previous fiscal year, 9.3 billion yen was spent for purchasing nitrogen for accident prevention, statutory inspection for accident prevention, fire extinguishing facilities, etc.
1 Utility (UTT) facilities: Accessory facilities for electricity (power reception, transformation and generation), steam, compressed air, nitrogen, air conditioning

(chilled water), water, discharge treatment, etc. typically used at plants

2 Zero-emission: The Mitsubishi Chemical Group defines zero-emission as maintaining the final disposal volume of industrial waste at 1% or less (final waste

disposal ratio of 1% or less) of the total industrial waste volume generated

Investments and expenses for the environment, accident prevention and safety (Mitsubishi Chemical)

(million yen) Environmental conservation costs Category Environmental conservation costs for suppressing environmental load generated in business areas due to production and service activities (business area costs) 1. Pollution prevention costs Breakdown 1. Global environmental conservation costs 1. Resource recycling costs Environmental conservation costs in management activities (environmental management activities costs) Environmental conservation costs in R&D activities (R&D costs) Environmental conservation costs in social contribution activities (social contribution activities costs) Costs for dealing with environmental damage (environmental damage costs) Other environmental conservation costs (other costs) Subtotal Accident prevention and safety costs Category Legal measure costs for accident prevention and safety (legal accident prevention measure costs) Voluntary risk management costs for accident prevention and safety (voluntary accident prevention measure costs) Accident prevention and safety costs in management activities (accident prevention management activities costs) Subtotal Total 4,686 2010 Investment amount 4,294 1,192 272 2,831 0 0 267 9 0 4,571 2010 Investment amount 2 Expenses Expenses 2009 Investment amount 1,721 1,353 266 102 0 0 28 1 0 1,750 2009 Investment amount 270 Expenses Expenses

20,507 14,186 911 5,410 1,144 3,712 428 31 534 26,356

22,583 15,472 1,345 5,765 1,092 3,304 462 55 543 28,038

3,331

3,564

113

5,190

39

7,455

0 115

768 9,289 35,645 2,059

0 309

885 11,904 39,942

Top > Responsible Care Activities > Environmental conservation > Biodiversity Preservation

Began assessing impacts on ecosystems as a group

In recent years, recognition of the importance of biodiversity preservation at different levels, from ecological systems in oceans, forests, and wetlands to species of fauna and flora, as well as microbes, in addition to genetic diversity, has become widespread, motivated by the need to protect and nurture the diverse gifts that life forms provide. Against this backdrop, the Mitsubishi Chemical Group has conducted surveys on ecosystems within and around its facilities, and sought to protect them. Since fiscal 2009, the Group has also upheld the Nippon Keidanren Declaration on Biodiversity1 as a member of the Mitsubishi Chemical Holdings Group. In a consistent, self-initiated manner, our activities began with the objective of reducing impacts from our business activities on biodiversity. Specific activities were decided on with reference to the Corporate Ecosystem Services Review (ESR)4, tools developed jointly by the World Business Council for Sustainable Development (WBCSD)2 and the World Research Institute (WRI)3, and the Guidelines for Private Sector Engagement in Biodiversity prepared by Japan's Ministry of the Environment. In fiscal 2010, studies commenced at the Yokkaichi Plant as a model for evaluating management and reduction activities for chemicals within the plant, from the viewpoint of the impact on biodiversity. We plan to conduct companywide activities for assessing impact on biodiversity after establishing the assessment method with reference to the study results. We will continue concentrating efforts on business activities that are mindful of biodiversity preservation, mainly through environmental protection activities. At the same time, we will also assess impacts of our products and services on ecosystems throughout their life cycle. We maintain a policy of developing such activities to be effective for protecting ecosystems.
1 Nippon Keidanren Declaration on Biodiversity: Announced by Nippon Keidanren in March 2009, the Declaration comprises seven main policies including harmony

between the natural circulation and business activities and promotion of a resource-recycling style of business administration.
2 World Business Council for Sustainable Development (WBCSD): Established at the time of the United Nations Conference on Environment and Development

held in 1992, this is a council of private enterprises organized in its current form in 1995. With the participation of about 200 enterprises from over 30 countries, the Council has been active in 20 areas of industry, aiming at environmental preservation, economic development and sustainable development of fair societies.
3 World Research Institute (WRI): An environmental think tank established in 1982 and headquartered in Washington, D.C. 4 Corporate Ecosystem Services Review (ESR): Guidelines for supporting strategy formulation in management of business risks and opportunities arising from

companies' dependency and impact on ecosystems. Benefits from nature are defined as ecosystem services, and trends in global ecosystem services in the past 50 years have been categorized into supply (food, fresh water, etc.), adjustment (air quality, climate, etc.), cultural (recreation and eco-tourism), and platform (water cycle, etc.) services. Strategy formulation is made possible by checking each item pursuant to the guidelines.

Ecological survey at Mitsubishi Chemical's Tsukuba Plant

* Data for plants and animals are summarized in the survey results from 2000 onward. * The land lot surrounded by the red lines was sold to another company in 2004, but has been conserved as is.

Top > Responsible Care Activities > Quality Assurance

For further stabilization of quality

As a comprehensive chemical manufacturer supplying a wide array of products to customers in a broad range of industries, Mitsubishi Chemical feels it is its duty to strive to prevent quality and product liability (PL) issues, while at the same time increasing customer satisfaction by offering safe and secure products. To perform this duty, the company has worked to establish in-house organizations for complying with laws and regulations and fulfilling obligations and promises under contracts with customers. In fiscal 2010, the internal verification system (review on in-house regulations and audit) for quality inspection data was improved to strengthen our ability to satisfy customer trust. The measure was implemented as a part of efforts to put increased compliance on track; a top-priority business management issue. We have also begun reforming the quality inspection data management system for increasing data security. In this way we are working to improve the reliability of quality-related data along with the stabilization of product quality.

Reforming Green Information Management System

As exemplified by Europe's ELV Directive1, RoHS Directive2 and REACH regulation3, demand has risen globally on appropriate management and information disclosure regarding chemical substances contained in products, on a product-by-product basis, throughout their lifecycle. To respond to these directives and regulations precisely, Mitsubishi Chemical in fiscal 2006 began operation of the Green Information Management System for securely managing and conveying information on chemical substances requiring special management that are contained in products, on a product-by-product basis. In fiscal 2010, we announced we would obtain and provide information on chemical substances contained in products by using MSDSplus5, which is provided by the Joint Article Management Promotion-consortium (JAMP)4 and is being disseminated and standardized in Japan. This enables prompt and efficient communication of chemical substance information contained in products in the supply chain (processes from material manufacturers to final product manufacturer). During fiscal 2011, the initial year of the APTSIS 15 five-year mid-term business management plan, the Green Information Management System will be reformed so that MSDSplus may be created automatically from in-house survey data and MSDSplus and related information may be obtained and provided via JAMP-GP6, a network system of JAMP. Mitsubishi Chemical intends to contribute, together with raw material manufacturers and customers, to building social systems for managing chemical substances through the supply chain.
1 End of Life Vehicles (ELV) Directive: A European Union (EU) directive aiming to restrict the use of specified hazardous substances in vehicles, and yield smooth

vehicle disposal. The directive prohibits the use of heavy metals (lead, cadmium, mercury, chromium hexavalent) with new vehicles registered on and after July 1, 2003, except in components for which establishment of alternative technologies is difficult.
2 Restriction on the use of certain Hazardous Substances in electrical and electronic equipment (RoHS) Directive: Prohibits the use of specified substances in

electrical and electronic equipment sold in the EU, requiring manufacturers to fully abolish the use of heavy metals (lead, cadmium, mercury, chromium hexavalent) and specified bromine flame retardants (PBB, PBDE) (Went into force in EU nations in July 2006)
3 Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) regulation: A system for regulating registration, evaluation and permits on chemical

substances distributed inside the EU, along with chemical substances for which risk management is required and methods of their use, in order to protect human health and the environment from hazardous chemical substances
4 Joint Article Management Promotion-consortium (JAMP): A cross-industrial organization for promoting appropriate management, disclosure and communication

of information on chemical substances contained in components and molded products (articles) in supply chains
5 MSDSplus: A common sheet for communicating information on chemical substances contained in products to all parties from raw material manufacturers to

final product manufacturers

6 JAMP-Global Portal (JAMP-GP): A platform system for exchanging information on chemical substances

Green Information Management System

Top > Responsible Care Activities > Management of Chemicals

Our basic stance on safety management of chemicals

The Mitsubishi Chemical Group strives to accurately understand information on all the chemicals it handles; not only for chemical products it manufactures but also their raw materials, by-products and waste generated in the manufacturing processes, as well as their recycled products. Based on the information, the Safety Assessment Committee checks the impacts of chemical substances on people and the environment as well as the safety of manufacturing processes beforehand in executing stringent voluntary management.

Risk assessment flow on chemical substances in product development

International strategies for chemicals management

In response to the action target of minimizing adverse effects of chemical substances by 2020 agreed to at the World Summit on Sustainable Development (WSSD - commonly known as the Johannesburg Summit) held in 2002, chemicals management efforts have intensified worldwide in accordance with the international strategy Strategic Approach to International Chemicals Management (SAICM) adopted at the First International Conference on Chemicals Management (ICCM-1) held in 2006. The International Council of Chemical Associations (ICCA) has promoted Global Product Strategy (GPS) activities for attaining the WSSD target, as the voluntary efforts of industries. GPS activities emphasize risk-based chemicals management throughout supply chains, and disclosure of information of risk management on products.

International trends in chemicals management

Chemicals management by industries

Contributing to activities of ICCA and Japan Chemical Industry Association, mainly through promotion of GPS activities
The President of Mitsubishi Chemical assumes a role of setting directions for ICCA, as a member of its CEO group. Mitsubishi Chemical is also a member of the leadership group for chemical policy and health that plans and implements skill development programs and lectures in developing countries and for small- and medium-scale enterprises, geared toward attainment of the WSSD targets. The Japan Chemical Industry Association (commonly known as Nikkakyo), a domestic organization, also engages in voluntary activities for strengthening risk-based chemicals management at businesses (Japan Initiative of Product Stewardship: JIPS), for promoting ICCA's GPS activities. Mitsubishi Chemical is also a member of the committee for promoting and strengthening JIPS. As a part of strengthening of JIPS promotion, the risk assessment guidance was translated and briefings were held on JIPS activities during fiscal 2010.

Organization Chart of ICCA

In-house GPS activities

Mitsubishi Chemical began GPS activities voluntarily in 2009. These activities involve risk assessment on chemical substances manufactured by the company and management of them in accordance with the results, as well as publication of the results in safety summaries. During 2009 and 2010, trial GPS risk assessment was conducted for seven substances, for example acetone, while standardizing risk assessment methods. Priority (high, medium, low and out of scope) was set regarding the risk assessment on chemical substances contained in each product. Assessment is to be completed by 2015 for substances ranked as high and medium, and by 2017 for those ranked as low, and safety summaries will be published as necessary. Mitsubishi Chemical group companies also plan to complete GPS assessment for the subject substances concerned by 2018.

Promoting GPS activities along with Group companies

Nobuyuki Shimizu Environmental Safety and Quality Department Mitsubishi Chemical Corporation Mitsubishi Chemical's GPS activities have developed from conventional RC activities and are not entirely new, though a risk assessment viewpoint has been added. We believe it is important to engage in the activities while letting the plan-do-check-action (PDCA) cycle function properly. Bimonthly briefings for promoting GPS activities are being held at Group companies as well. About GPS activities

Communicating information on chemical substances contained in products

Mitsubishi Chemical compiles information on product constituents, hazards and handling in the form of an Material Safety Data Sheet (MSDS)1 presented to customers and partially disclosed on its website. In fiscal 2008, we introduced a system that automatically creates MSDSs, following the format of the Globally Harmonized System of Classification and Labelling of Chemicals (GHS)2, an international system for indicating hazards and toxicity of chemical substances. We are also a member of the Joint Article Management Promotion-consortium (JAMP)3 and utilize MSDSplus4 developed by the Consortium in efforts to provide data on chemical substances contained in products to all members of the supply chain.
1 Material Safety Data Sheet (MSDS): A safety database of chemical and other substances, and a document for providing information on the properties, hazards

and toxicity of chemical substances to other business entities when transferring or shipping chemical substances and products
2 Globally Harmonized System of Classification and Labelling of Chemicals (GHS): A system of international classification and labeling related to the hazards of

chemicals
3 Joint Article Management Promotion-consortium (JAMP): A cross-industrial organization for appropriate management, disclosure and communication of

information on chemical substances contained in components and formed products (articles) to supply chain members
4 MSDSplus: A common sheet for communicating information on chemical substances contained in products to all entities; from material manufacturers to those

of final products

Dealing with chemicals management regulations

Measures to cope with amended Act on the Evaluation of Chemical Substances and Regulation of Their Manufacture, etc.
Act on the Evaluation of Chemical Substances and Regulation of Their Manufacture, etc. (the "Act") was amended largely (the "amended Act") in two steps, in April 2010 and April 2011. The first-step of the amendment in 2010 also addressed highly degradable chemical substances, adding over 200 such substances to category 2 and 3 monitored chemical substances, of which detailed reports are mandated. In the second-step amendment of 2011, reporting has been mandated on the quantity of all chemical substances that are manufactured, imported and used, and it was decided that the national government will select the priority chemical substances for assessment based on information from business entities. Moreover, risk assessment is conducted on priority chemical substances to select Class 2 specified chemical substances on which restrictions are imposed on the manufacture and imported amount. The amended Act shifted the management method from conventional hazard management to risk assessment in order to attain the target agreed to at the WSSD. In line with the enactment of the amended Act, Mitsubishi Chemical has prepared for appropriately handling the situation by providing information from governmental organizations and industrial associations such as Japan Chemical Industry Association in-house and to Group companies. We have also participated in a study group for comprehensive management of chemical substances and working group on the amended Act of Japan Chemical Industry Association, and exchanged opinions with the Ministry of Economy, Trade and Industry and National Institute of Technology and Evaluation. We plan to strengthen in-house chemicals management by organizing information on the quantity and use of chemical substances in our products and utilizing the information in areas such as GPS activities.

Action for REACH regulation

To comply with EU Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) that came into force on June 2007, the Mitsubishi Chemical Group in 2006 established the cross-sectional MCC Group REACH Project. We conduct activities for ensuring compliance with REACH and performance of obligations from the viewpoint of a manufacturer outside the EU that brings products into the EU, while thoroughly analyzing each aspect of complicated legal systems and sharing specific measures to address the situation. To outline of REACH and activities to date In fiscal 2010, our focus was placed on registration of high production volumes or hazardous substances, in addition, management, maintenance and updating of legal information relating to products brought into the EU, and compliance with REACH and other regulations and performance of obligations by affiliated entities in the EU.

Implementation in fiscal 2010

1. Registration of high production volumes or hazardous substances November 30, 2010, was the 1st registration deadline under REACH of the existing chemical substances that are handled at 1,000 tons or more per year or have high hazard levels. The Mitsubishi Chemical Group carefully examined the matters to be registered through close information exchanges and regular meetings with the only representative appointed by us. Applications for registration of all substances the Group was planning were made by the deadline and accepted by ECHA. 2. Management, maintenance and updating of legal information on products brought into the EU REACH also mandates management, maintenance and updating of information on the hazards and uses of related substances after completion of registration procedures. To fulfill the obligation, the Mitsubishi Chemical Group strives to obtain the latest information for the registered substances and offer our customers updated information by explaining requirement intentions and descriptions to them. For example, we inform REACH registration numbers to related importers through the supply chain. In response to the revision of REACH Annex II that stipulates the SDS5 that came into force on December 1, 2010, we also revised the SDSs for the substances concerned and distributed them to customers. 3. Compliance by affiliated entities in Europe with REACH and CLP regulations and performance of obligations Mitsubishi Chemical Europe GmbH (MCE), headquartered in Germany, is directly obligated to abide by REACH. MCE collects and provides information on all only representatives, registration numbers, etc. relating to imported products in order to comply with the regulations. The company has also completed notification on the classification and labeling of chemical substances involved with imported products by the deadline for notification under the CLP regulations6.
5 Safety Data Sheet (SDS): A safety database of chemical and other substances; a document for providing information on the properties and hazards

of chemical substances to other business entities when the chemical substances and products are transferred or shipped
6 Classification, Labeling and Packaging of substances and mixtures

Future measures
Measures for registration of substances for which registration is due from fiscal 2010 In the EU, with some of the substances of which registration is due from fiscal 2010, currently the activities at Substance Information Exchange Forum (SIEF) are still unclear or no leader is found for joint registration. Assuming that more work would be needed with applicable substances to be registered, the Mitsubishi Chemical Group will continue exchanging information closely with our only representative and proactively conducting technical discussions for registration. At the same time, we aim at completion of registration for all the substances to be registered by sharing the latest information on REACH with those in charge at Group companies, including operational divisions and entities in the EU, and asking for cooperation from related customers.

MCE: Sharing Japanese experts' experience and knowledge with customers in the EU
Marion Ives Compliance Manager Mitsubishi Chemical Europe GmbH Our activities for complying with EU regulations Mitsubishi Chemical Europe GmbH (Germany) must comply with European Union regulations such as REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) and CLP (Classification, Labelling and Packaging of substances and mixtures). To keep our knowledge up to date in this area, several times a year we participate in workshops by the European Chemicals Agency and national authorities. EU Member State authorities are responsible for REACH inspections. Enforcement in Germany is delegated to its federated states and regional governments visit companies and check on-site compliance. Successful REACH inspections require that the company has prepared a REACH system for all manufactured or imported chemical products. Mitsubishi Chemical Europe is tasked with showing what party is responsible for which REACH obligations in our supply chain, and Mitsubishi Chemical Group product supply chains outside the EU are often complex and compliance is challenging to prove. To achieve compliance with EU regulations, Mitsubishi Chemical Europe receives strong support from the secretariats of the MCC Group REACH Project Team and MCC departments in Japan. Communication with our EU customers REACH and CLP compliance is mandated by law but also expected by our customers for maintaining reliable business relationships. To prevent any additional work for customers, like so-called downstream user reports, we ask or already know in advance how they use the Mitsubishi Chemicals Group product. Mitsubishi Chemical Europe maintains long-term lines of communication with its customers to ensure that products are used properly. Information service for appropriate risk management measurements Communication down the supply chain via Safety Data Sheet (SDS) is necessary for informing our European customers about potential hazards and appropriate risk management measurements for the safe use of Mitsubishi Chemical Group products. SDSs are currently changing and becoming more complicated in Europe, and following REACH registration they often contain exposure scenarios to help the assessor develop estimates on exposure, dose and risk. Preparing adequate exposure scenarios for our products requires expert judgment. We are eager to provide our products safely to our European customers with these scenarios and with the appropriate risk management measures. For this task, we receive a great deal of expert assistance from colleagues in the MCC Group REACH Project Team in Japan.

Top > Responsible Care Activities > Chemicals Management > Outline of REACH Regulation and Our Activities to Date

Outline of REACH regulation

Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) refers to European regulations that came into force in June 2007 and have been applied since June 2008, ensuring a high level of protection of human health and the environment, while maintaining and strengthening competence in the chemicals industry in the European Union (EU). REACH mandates that companies which manufacture or import one ton or more of chemical substances that are placed on the market in the EU register them in a succession of steps. The authorities evaluate the submitted data after the registration and methods of safety management concerning the substances for which the business applied for registration, and grant approval on the use of specified hazardous substances indicated on the application. These regulations clearly demand that businesses conduct extremely complicated and extensive chemicals management. REACH obligates all companies in the EU that handle chemical substances (manufacturers, importers, and users) to properly manage them based on risk assessment, maintain the management processes, and exchange information among all members of supply chains (from manufacturers of raw materials to those of final products). The first step in the procedure is registration. Companies intending to register the same chemical substances jointly conduct a risk assessment for registration application, comprising technical documentation that mainly summarizes information on hazards of the substances and management methods based on risk assessment, and considers uses and applications of the substances. The Mitsubishi Chemical Group recognize the three priority issues in its efforts to comply with REACH, such as (1) formation of the Substance Information Exchange Forum (SIEF), (2) promotion of communications, and information exchange among supply chain members.

Features of REACH regulation Demands new and existing chemical substances be handled in almost the same way Substances contained in articles also create an obligation in some case, if applicable Mandates that industries conduct risk assessment on chemical substances Requests information on safety and handling of substances to be communicated to all members of the supply chain Requests entities handling the same chemical substance to share the safety data

Schedule for REACH

Process flow to REACH registration

Activities to date
1. Building project organization for the Mitsubishi Chemical Group to comply with REACH REACH is extremely complicated and requires extensive knowledge and comprehension. In some instances, one company alone may not fully comply with the regulations. Therefore, in 2006, Mitsubishi Chemical configured the MCC Group REACH Project, a cross-sectional organization of the Mitsubishi Chemical Group. The organization aims to strengthen knowledge and comprehension on REACH through sharing of information, and the Environmental Safety and Quality Department of Mitsubishi Chemical serves as its secretariat.

Organization of MCC Group REACH Project

2. Held briefings for the entire Mitsubishi Chemical Group for explaining REACH legislation and its guidance, as well as ways to deal with it The project secretariat has held briefings every two months to deepen understanding on the extensive REACH regulations and various types of guidance issued by the European Chemicals Agency (ECHA) for ensuring compliance. To fully comply with REACH, each concerned party needs to think of specific measures and take action, so the briefings held discussions while proposing ways to communicate with customers, specific items in preparing for registration and other matters of caution, in addition to explaining the provisions. Briefings continue to be regularly held.
Briefing organized by the project secretariat

3. Established a helpdesk for Departments and Group companies to consult with Substances need to be dealt with one by one in the registration work required for REACH. Since procedures and issues differ with each case, the project secretariat offers individual consultation in serving as a helpdesk for the Mitsubishi Chemical Group, and answers customers' questions and provides them with explanations.

Q&A session at the helpdesk

4. Opinion exchange with an only representative about registration activities and current situations in the EU

For a manufacturer from outside the EU, an only representative is essential not only for complying with REACH but also for maintaining and expanding business in the EU. The Mitsubishi Chemical Group exchanges detailed information about specific action items and plans for registration with the only representative, and has participated in the formation processes of the Substance Information Exchange Forum (SIEF) on substances to be registered and technical discussions held therein.

5. Information exchange among members of supply chain To comply with the REACH regulation, the key issues are in how rationally and efficiently we can collect information on uses and applications of substances in Europe, which is necessary for registration. We have almost no experience in information exchange among members of the supply chain, which starts with raw material manufacturers and reaches the final users via manufacturers, retailers and logistics operators. Currently there are no official guidelines or tools, so we have endeavored to exchange information with customers in relation to REACH, at the same time explaining the REACH requirements to them and taking inventive actions such as generalizing information on uses and applications.

6. Cooperating with activities of chemical and other industrial organizations such as Japan Chemical Industry Association Mitsubishi Chemical participates in the working group of the Japan Chemical Industry Association for dealing with REACH, in efforts to understand the provisions and find solutions to questions and issues. We have also strived to communicate as much information as possible and share recognition by actively giving lectures offered by various industrial associations, with the hope of providing our REACH activities as a example of practice.

7. Information exchange for registration work through domestic consortium activities In relation to the registration of certain general-purpose chemical substances, some of the companies in our industry involved with registration have established several domestic consortiums for information exchange. Mitsubishi Chemical has also presented opinions at consortiums in the EU, as a domestic consortium leader for certain substances. This made it possible for us to complete the registration procedures for existing substances without any trouble by the registration closing date of November 30, 2010, fulfilling the aim of these activities.