Environmental Protection Policy Based on our Group Mission "TechnoAmenity - Providing prosperity and comfort to people and society, with our unique technology", we have established the following policies.

• We will work to reduce greenhouse gas emissions by actively promoting the use of renewable energy and biomass feedstock, as well as improving energy efficiency.
• We will contribute to the achievement of a recycling-oriented society by reducing waste and chemical substance emissions and promoting recycling and the effective use of resources.
• We will actively develop and provide products and technologies that contribute to the reduction of environmental burdens.
• We will work to minimize the negative impact of our business activities on ecosystems and strive to conserve biodiversity.
• We will proactively disclose information on environmental protection and deepen mutual understanding with stakeholders through communication.

Click below to move to each initiative.

• 1. Environmental Impacts of Our Business Operations
• 2. Initiatives for Tackling Climate Change
• 3. Initiatives for Eco-friendly Distribution
• 4. Environmental Protection through Our Products
• 5. Chemical Substances Control Initiative
• 6. Waste Reduction Initiatives
• 7. Pollution Control Initiatives Targeting Air and Water
• 8. Environmental Accounting

1. Environmental Impacts of Our Business Operations

We are engaged in various efforts to not only provide better products and services, but also to reduce the environmental impacts of our business operations, including in our supply chains. We make efforts to conserve energy and tackle climate change of course. We are also managing the water used in our manufacturing sites in order to use water resources effectively, conducting advanced recycling and thoroughly treating water before it is released into the natural environment. Moreover, we also commission odor monitoring as well as conduct odor patrols and regular noise measurements so that neighboring residents can live in peace. In fiscal 2020, we received no reports of environmental pollution incidents or environmental complaints.

Note: This fiscal 2020 data is for only Nippon Shokubai (including our head offices, research centers and other sites).

2. Initiatives for Tackling Climate Change

Click here for the TCFD report.

Promoting Greenhouse Gas (GHG) reduction

Formulation of a roadmap for reducing GHG emissions

Nippon Shokubai has formulated a roadmap for reducing GHG emissions by 2050. This roadmap concerns our "Strategic Transformation for Environmental Initiatives," which is one of our "Three Transformations," and is based on "TechnoAmenity for the Future," the long-term vision of the Nippon Shokubai Group announced in April 2021.
For our GHG emissions reduction target for 2030, which is the final year of our long-term vision, we set the GHG emissions reduction target for fiscal 2030 to be 10% or more compared to the level of fiscal 2014 by reference to the CO₂ emissions reduction target for fiscal 2030 set by JCIA in March 2019 (10.7% reduction compared to FY 2013), and we had been making efforts for the reduction. However, in April 2021, the Japanese government substantially raised the GHG emissions reduction target for fiscal 2030 to 46% compared to the fiscal 2013 level, and we first revised the GHG emissions reduction target for Nippon Shokubai Group in Japan, which account for about 70% of the Group's total GHG emissions, to 30%. Going forward, we will also proceed to examine the reduction targets for our group companies outside Japan.

Reducing energy use/CO₂ emissions

At Nippon Shokubai, in line with the targets set in the commitment to a low carbon society by the JCIA, the RC Promotion Committee, chaired by the President, has formulated the Medium-term RC Basic Plan. Based on this Plan, each plant, under the initiative of the energy management committee, implements activities to help mitigate climate change, including reducing energy consumption and CO₂ emission intensity.
In fiscal 2020, despite the efforts to conserve energy, the results were 109 L/t-production for energy intensity and 0.411 t-CO₂/t-production for CO₂ emission intensity, and 0.205 t-CO₂/t-production for energy source CO₂ emissions intensity, mainly due to a decrease in production volume.
From fiscal 2021, we started solar power generation (on-site power generation) at the Himeji Plant.

Promoting for the reduction of the CO₂ emissions resulting from our entire supply chain

3. Initiatives for Eco-friendly Distribution

Promoting White Logistics, which will lead to reducing environmental impact

As a way of tackling climate change through our logistics operations, we are taking steps to reduce our CO₂ emission intensity and implement exhaust gas countermeasures to control air pollution.
Although changing economic conditions can affect the amount of goods we transport and our CO₂ emissions, we are advancing initiatives to reduce our CO₂ emission intensity. These include modal shifts, improved transport efficiency, introduction of digital tachometers interlocked with GPS and drive recorders, and energy efficient vehicle operation such as minimal idling and the installation of energy-efficient tires.
We adopted the Kawasaki eco-transportation system as an air pollution control measure (effective April 1, 2010) and introduced three initiatives: eco-friendly driving and display of "eco-drive" stickers, elimination of vehicles that do not comply with laws regulating NOx and PM emissions, and widespread adoption of lowemission and energy-efficient vehicles.
In response to the increasingly severe shortage of truck drivers in the logistics industry, Nippon Shokubai supports the "White Logistics" promotion campaign, a movement aiming to realize sustainable logistics. For the purpose of improving productivity and efficiency of transportation and realizing a "whiter" working environment that is friendly to women and drivers in their 60s, we are advancing various initiatives, including improving efficiency of transportation by promoting a shift from long-distance transportation by trucks to transportation using roll-on/roll-off ships or railroad or by introducing joint transportation with other companies in the same business field, and improving loading and unloading operations.
We believe that these initiatives will contribute also to reducing the impact on the environment.

An example of modal shift
(railway tank containers and loading and filling equipment)

4. Environmental Protection through Our Products

Environmental Contribution Products

Chemical products have an impact on the environment because they are produced using the Earth's resources and involve the discharge of CO₂ and other waste. However, looking at the entire product life cycle from raw material extraction to product disposal, in some stages chemical products contribute to a reduction in the environmental impacts.
We evaluate how our Group's products are used to reduce the environmental impacts through the supply chain to produce the various products in our daily life and as equipment to produce our products and in the social infrastructure.
At Nippon Shokubai, an internal certification committee certifies the Environmental Contribution Products after examining the checklist items and numerical data. In fiscal 2021, two products were newly certified.

Environmental Contribution Products

Promoting CO₂ emissions reductions throughout the product lifecycle

We employ the cLCA method to assess the degree to which our products contribute to reducing CO₂ emissions. The cLCA method assesses CO₂ emissions throughout the lifecycle of a finished product incorporating a specific chemical product compared with a product when assuming that the chemical products are not available. The difference in the volume of emissions is calculated as the net volume of emissions that would be avoided as a result of using that chemical product.

5. Chemical Substances Control Initiative

Reducing chemical emissions

In fiscal 1995, we participated in a voluntary PRTR survey undertaken by the JCIA and have set out to reduce our emissions of chemical substances into the environment.
In fiscal 2020, we released 83 tons of substances subject to the PRTR Law, which represents a 22.8% decrease in emissions compared to fiscal 2015 levels. However, we were not able to achieve our target of 25% reduction from fiscal 2015 levels.

6. Waste Reduction Initiatives

Reducing the amount of waste subject to final disposal at off-site landfills

Reducing waste is a necessary initiative to support the creation of a society committed to recycling. Toward the goal of achieving and maintaining "zero emissions" (defined as "reducing the quantity of waste subject to final disposal at off-site landfills to less than 0.1% of the total amount of waste generated"), we are introducing sorting for the recovery and recycling of our waste.
In fiscal 2020, we are continuing to implement our zero emissions policy by reducing the amount of waste subject to final disposal at off-site landfills. In addition to implementing comprehensive sorting for recovery and recycling, we are achieving this by redesigning our processes to reduce waste, reusing byproducts and processing product leftovers on site.

7. Pollution Control Initiatives Targeting Air and Water

Working to reduce the environmental impact by introducing waste gas treatment catalysts and high-performance activated sludge treatment equipment

We are monitoring our SOx, NOx and dust emissions, and we have installed denitrification equipment, which we developed in-house, for NOx and scrubbers for dust to prevent air pollution. For SOx, we are reducing our heavy oil consumption and progressing with converting fuel to natural gas to reduce emissions. We use the waste gas treatment catalysts we developed in-house for purification of unreacted raw materials and by products generated in the production processes.
To prevent water pollution, we are working to reduce the environmental impact of wastewater from production processes by using waste liquid treatment equipment. In addition to reusing cooling water for more effective use of our water resources, we have adopted high-performance activated sludge treatment equipment that can stably process even high impact substances and are working on reducing sludge waste as well.
All emissions are at levels below municipal and prefectural agreements.

8. Environmental Accounting

The values determined in our environmental accounting were aggregated according to the Environmental Accounting Guidelines for the Chemical Industry published in 2003 by the JCIA and the Japan Responsible Care Council. We also made reference to the Environmental Accounting Guidelines 2005 published by the Ministry of the Environment of Japan.