csr report 2018...basic policies to reinforce csr with environmental and social contributions,...

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C.I. TAKIRON Group

CSR Report 2018CORPORATE SOCIAL RESPONSIBILITY

Head OfficeNorth Gate Building, 3-1-3Umeda, Kita-ku, Osaka 530-0001, JapanTEL: +81-6-6453-3700 FAX: +81-6-6453-3884

タキロンCSR18_表紙_英.indd すべてのページ 2018/11/19 14:13:12

We are grateful for the last century and will continue to contribute to society as a corporate group highly regarded by all of our stakeholders in the future.

C.I. TAKIRON will celebrate its 100th anniversary in 2019.

C.I. TAKIRON CORPORATE SOCIAL RESPONSIBILITY 2018C.I. TAKIRON Group CSR Report 2018

32

Here is what we can do for today -In order to support the security of the world we live in, provide consistent

supply durable, easy-to-use products.

Here is what we can do for tomorrow -In order to make our lives more comfortable create products that meet

contemporary needs by using technologies and ideas.

Here is what we should do for today and tomorrow -Continue to explore the potential of plastics and create products that contribute

comfort and utility to our everyday lives

Make our products even more durable, lightweight, elegant and environmentally friendly.Utilize flexibility of thought in the continuing challenge of manufacturing new products.

We publ ish th is repor t for the purpose of deepening communication with all of our stakeholders by providing information about CSR management as well as the basic CSR concepts and specific initiatives of C.I. TAKIRON Group.

Contents/Editorial Policy ........................................................ 5

Message from the President ................................................. 6

Features

Process for Enhancing Corporate Value at C.I. TAKIRON Group ... 8

Contributions to Society Through C.I. TAKIRON Products ... 10

Relationship Between C.I. TAKIRON Group Products and Society ... 12

Management System

CSR Management ............................................................... 14

Corporate Governance ....................................................... 16

Sociability Report

Together with Stakeholders ................................................. 18

Together with Employees .................................................... 20

Health and Safety Initiatives ................................................ 24

Together with Local Communities and Society ................... 26

Environmental Report

In Harmony with the Global Environment ............................ 28

Environmental Index ............................................................ 30

Environmental Accounting .................................................. 32

Corporate Profile............................................................34

Third-Party Perspective ....................................................... 37

●Reporting Period

FY 2017 (April 1, 2017 to March 31, 2018)*This report includes some information outside of this reporting period.

●Reporting Organizations

C.I. TAKIRON Corporation and its Group Companies

●Publication Date

November 30, 2018

Introduction of Communication Tools

We cover basic information

about C.I. TAKIRON Group

on the company homepage

while comprehensive manage-

ment information is published

in the annual report.

Corporate Message CONTENTS Editorial Policy

Statement

Inquiries regarding this report:

CSR & Compliance Department.

Tel: +81-3-6711-3933Fax: +81-3-6711-3935

Company Information: https://www.takiron-ci.co.jp/english/

Annual Report: https://www.takiron-ci.co.jp/english/


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Awareness is growing about the challenges faced by society worldwide as demonstrated by the United Nations’ adop-

tion of the Sustainable Development Goals (SDGs) in 2015. We are also seeing new social issues arise, such as oceanic

pollution due to microplastics. C.I. TAKIRON recognizes the growing expectations for companies to solve social issues

through their businesses.

C.I TAKIRON Group aims to create a broad range of environmentally-friendly products and services as well as other new

value in addition to contributing to solve social issues and sustainable growth of society according to its mission of creating

a people- and earth-friendly future through plastics technology.

By expanding our business domains through the integration of management executed in April 2017, we further strength-

ened our products and services that address social issues from the deterioration of social infrastructure and the enhance-

ment of agricultural production to an aging society with a dwindling birthrate and frequent disasters.

We will continue to propel manufacturing to drive quality that is able to satisfy our customers and respond to the expec-

tations of society.

The Group has successfully begun the first year of the [Good Chemistry Good Growth 2020] medium-term

management plan set for fiscal 2017 to fiscal 2020. We will strive to actively invest management resources and strengthen

competitiveness by never wavering from each of our growth strategies in all regions, including new and growing sectors

to mature sectors, while maximizing the synergy brought from the management integration.

Additionally, in our medium-term management plan, we have positioned the promotion of CSR management as an

important theme. We believe sound governance functions, the health and safety of employees and a dialogue with stake-

holders are indispensable as the foundation to create new value and enhance corporate value. We will drive measures as

basic policies to reinforce CSR with environmental and social contributions, compliance, work-style innovation, health and

safety, and communication with society.

Merely one year has passed at C.I. TAKIRON since the merger, but C.I. TAKIRON will celebrate its 100th anniversary in

2019 since the founding of the Takigawa Celluloid Plant, which is the original form of Takiron.

We will continue to act as a people- and earth-friendly company able to earn trust from all of our stakeholders in the 100

years to come as we have in the 100 years which have passed.

Contributing to Sustainable Growth of Society

Good Chemistry Good Growth 2020Medium-term Management Plan

Contributing to society as the

industry’s leading company

by taking on new challenges and

continually implementing plans

Management Vision

�Strengthen market competitive-ness

�Create new business and develop new products

�Pursue beneficial effects of the merger�Expand existing business domains Increase asset efficiencyCreate a new corporate culture

Basic Management Policy

Four-year Medium-term Management Plan (FY2017-FY2020)

Management Foundation

Reinforce the management foundation through human resource integration and vitalization as well as spiritual awakening and operational efficiency

Mature Sectors Enhance market competitiveness through structural reforms and a synergistic effect

Growth Sectors Expand and strengthen business through capital investments

New Sectors Expand to new sectors by actively participating in industrial reorganization and M&A

FY 2017 FY 2020

Launch of C.I. TAKIRON Group 100th Anniversary

FY 2018 FY 2019

Message from the President

President and Representative Director

Yosuke Minamitani


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Process for Enhancing Corporate Value at C.I. TAKIRON GroupC.I. TAKIRON Group aims to resolve social issues and contribute to greater sustainable growth of society by gen-

erating value through environmentally-friendly products and services in the hope of realizing its mission to create a

people- and earth-friendly future through plastics technology.

Social Issues Creating ValueBusiness Fields of C.I. TAKIRON

Stakeholders

Shareholders and Other Investors

Business Partners

Administrations Customers

Local Communities and Society

Employees

Management Philosophy

Code of Conduct

CSR Management

Construction Materials BusinessPolycarbonate building materials,

housing mate rials, piping and

pluming equipment, floor ing

materials, decorative materials,

eva cuation and water damage

prevention materials.

Environmental Materials BusinessAgricultural materials, binding

materials, infrastrucure materials,

civil engineering pro ducts, liquid

chemical tanks, etc.

High Functional Materials BusinessPlastic plates, machining

mater ials, micro motors,

magnetic materials, etc.

Specialty Films BusinessHeat-shrinkable films, zi-

ppers, etc.

Medium-term Management Plan

Good Chemistry Good Growth

2020

Synergy in Management

Research & Development

Management Foundation

People Network

Synergy in the Supply Chain

Purchasing Production Sales Distribution

Generating Integration Synergy

Sustainable Growth

of Society

Corporate Governance

Coexisting with society

and the environment

Prevention and mitiga-

tion of disasters

Resource and energy

savings

Revitalization and en-

hancement of social

infrastructure

Contributions to lead-

ing-edge industries

Sound, prosperous de-

velopment of national

lands

Realization of a rich

living environment

Contributions to agri-

cultural vitalization

Enhancement of life-

style convenience

Deterioration of social in-

frastructure

Development of leading-

edge industries

Preservation and manage-

ment of national lands

Living environment

Self-sufficiency and safety

of food

Diversification of lifestyles

Deterioration of the global

environment

Increasing frequency of

natural disasters

Constraints of resources

and energy

Solutions to Social Issues


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PVC Cushion Back Sheet Series

Contributions to Society Through C.I. TAKIRON ProductsC.I. TAKIRON Group is furthering the development and sales of products which aid in solving environmental and

social issues through its business activities under the corporate philosophy to contribute to society by providing a

quality and price that will satisfy our customers.

This section introduces some examples of those activities.

Example of use in a greenhouseStructural composition of filmDrip-proofing comparisonAcid-resistant pesticide test

A layer

B layer

C layer

D layer

E layer

Coating

Strength Retention Elongation Retention

0

20

40

60

80

100(%)

Conventional TypeSKY COAT T-5/K-5

Retention

SKY COAT T-5/K-5 Conventional Type

Covered in Large Droplets

Agricultural Polyolefin Film

SKY COAT T-5/K-5 Hydrophiric Water Sealing Materials

Hydrotite

Mitigating the Risk of Accidents Due to FallingThe number of deaths due to falls while walking is increasing each

year. In 2010, the number of fatalities while walking surpassed the

number of deaths due to traffic accidents. In 2016, 5,788 people died

due to falls while walking*1.

The risk of accidents due to falling is expected to grow in the future

due to the progression of an aging society. C.I. TAKIRON developed the

PVC Cushion Back Sheet series to respond to the safety needs which

will be demanded by society in the future as a pioneer in non-slip floor-

ing materials. The PVC Cushion Back Sheet series provides flooring ma-

terials that are able to lighten the damage even in the event of a fall in

addition to the conventional non-slip performance. The inlaid structure

(allows long-term use with superior durability) that creates the same pat-

tern against friction and the foam layer that offers superior cushioning,

which are both unique to C.I. TAKIRON, are the greatest features of the

PVC Cushion Back Sheet series.

We succeeded in lowering the risk of accidents due to falling while

maintaining the fundamental durability and easy-walking surface of the

flooring by adjusting the density of the foam layer.

This series contributes to the safety and comfort of surfaces under

our customers’ feet in a wide range of places from condominium flooring

and childcare facilities to pools.

*1: Ministry of Health, Labour and Welfare Vital Statistics*2: 2016 Traffic Accident Fatalities: 3,904 according to the number of traffic

accidents during 2017 published by the Traffic bureau of the National Police Agency of Japan

Actively Developing Large Transportation InfrastructureWater cut-off measures are very important from the perspective of

not only safety but long-lasting structures for railways and roads sup-

porting the development social infrastructure, especially large-scale

tunnel construction deep underground with a large bore. Hydrotite is

a rubber water expansion and waterstop material molded by applying

heat to water absorption resins and synthetic rubbers. In addition to the

same level of impact resilience and restoration properties as standard

vulcanized rubber, Hydrotite offers superior water expansion properties

and has been used for more than 35 years as a waterstop material for

segments of tunnels.

From Japan to the WorldHydrotite materials have been adopted on many different construction

sites, including the section of underground tunnel of the Tokyo Outer

Ring Road (Misato Minami Interchange to Koya Junction), which opened

on June 2, 2018. In Southeast Asia where growth is remarkable, C.I.

TAKIRON has been recognized not only for building a long track record

and trusted technology but also for its adoption even in the construc-

tion of Indonesia’s first Jakarta Metro (scheduled to begin operations

in 2020) as well as the construction of Vietnam’s first Ho Chi Minh City

Metro. We have contributed to the development of transportation infra-

structure both in Japan and overseas to eliminate the traffic congestion

which has become a social issue with the rapid increase of automobiles.

Special Wear-resistant Vinyl Chloride Layer

(Highly infrared re�ection)

Middle Layer of Glass Mat

Bottom Layer of Foam Vinyl Chloride


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Greenhouses are indispensable infrastructure in Japan to adjust the

harvesting periods of crops and aid in the safe harvest of delicious veg-

etables. C.I. TAKIRON has been producing films to use as covering ma-

terials for these greenhouses since the 1960s. Today, we are proud to

hold the highest share in the Japanese market in coverage area. Among

the various agricultural polyolefin films, SKY COAT T-5/K-5 is the only

five-layered polyolefin film in Japan to provide many different function-

alities. In particular, SKY COAT T-5/K-5 leads functionally by applying a

hydrophilic coating to the surface of the film.

Greenhouses often generate condensation inside due to the tempera-

ture difference outside of the house when growing crops. Droplets from

the condensation fall onto the crops and spread unwanted bacteria. Ag-

ricultural chemicals are used to prevent the spread of diseases through

the crops. However, SKY COAT T-5/K-5 reduces the risk of droplets fall-

ing onto crops by ensuring the droplets produced by condensation flow

over the film thanks to the application of a hydrophilic coating on the

surface of the polyolefin film. This functionality contributes to mitigating

the spread of diseases caused by condensation.

Reduction in Agricultural Chemical UseIn paticular SKY COAT T-5/K-5 leverages the strength of a five layer

structure to sustain performance even in environments with extremely

hot temperatures, which had been a problem in conventional products.

This product contributes to reductions in the use of agricultural chemi-

cals by further lowering the frequency of droplets caused by condensa-

tion falling onto on crops.

Reduction in Waste PlasticsConventional agricultural film deteriorates more quickly in an envi-

ronment where acidic agricultural chemicals are used and needs to

be replaced quite often. SKY COAT T-5/K-5 dramatically improved the

durability of the film to stand up against acidic agricultural chemicals.

These innovations realized an environment where producers could use

bactericide such as sulfur that exists in nature in addition to extending

the lifespan (one year to five years). The extension in the product life

helps reduce the amount of waste plastics and contributes to reducing

the burden on the global environment.

Even OverseasOur hydrophilic coating technology has also been widely accepted over-

seas. We export SKY COAT T-5/K-5 broadly to Korea as it puts more of its

strength into exporting produce as well as China which has shown a growing

demand in safe food people can eat without worry. The durability and the

ongoing effectiveness in preventing condensation in particular have been

praised highly. In the future, we will also strive to contribute to the safety

of produce that people can be confident in eating around the world.

Relationship Between C.I. TAKIRON Group Products and SocietyC.I. TAKIRON Group has taken advantage of its wide-ranging dominance and characteristics in plastics such as

lightness and workability to realize a variety of plastic products packed with originality.

These products are used in a broad range of fields from agriculture, civil engineering, construction, worldwide social

infrastructure and leading-edge electronic industries in addition to the many things you use around you in daily life.

We contribute to the construction of a richer lifestyle environment and growth of society.

Ultrafine Particle Materials CleanroomsMicro Motors

Industrial PlatesWhite Board Sheets

Pipe Rehabilitation Work (Sewer Pipes) Howell Pipes (Civil Drainage Pipes)Waterploof Geomembranes (Industrial Waste Processing Facilities)

Multi-layered Plates Waterploofing PanelsTranslucent Plates (Polycarbonate Plates)

Small-scale Rainwater Storage and Filtration Tank Materials Plastic bags with Zip ClosureCatch Basins

Decorative Interior Films Rain GuttersFlooring for Condominium Corridors

Zipper Tapes Roof Materials for Parking EnclosuresShrink Wrap Labels for Bottles

Lifestyle

Social Infrastructure

Resin-coated Steel Colored Stakes Sprinkler TubesGreenhouse Films

Agriculture

Industrial Materials

Laser Shield Plates


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CSR Management

Mission of C.I. TAKIRON

Create a people- and earth-friendly future through plastics technology.

Management Philosophy of C.I. TAKIRON

1. We always try to protect the global environment and aim for permanent development and growth of the Company.

2. We will contribute to society by providing a quality and price that will satisfy our customers.

3. We will be ahead of social change and sustain enthusiasm for the challenge to the unknown.

4. We will give consideration to people and respect individual characteristics and ingenuity .

5. We will pursue legitimate profits and strive for fair distribution.

CSR Management

C.I. TAKIRON has strengthened CSR management from the perspectives below in the medium term plan with the aim of

contributing to the sustainable growth of society.

C.I. TAKIRON Group Corporate Code of Conduct

C.I. TAKIRON Group Corporate Code of Conduct encompasses every person who works in C.I. TAKIRON Group from all of the

corporate officers and regular employees to temporary staff. We are deeply aware of the corporate social responsibilities of C.I

TAKIRON Group as a member of society. Our Group complies thoroughly with the relevant laws and regulations as well as with

the articles of incorporation for each company in addition to defining the articles to adhere to for each item included below for

the purpose of taking action deemed suitable by social ethics.

Relationship with Every Stakeholder

C.I. TAKIRON sees shareholders, investors, business partners, administrations, customers, local communities, society,

and employees as its main stakeholders. We believe building a mutually prosperous and trusting relationship to coexist with

everyone through our business activities is vital. Therefore, the Group provides a wide range of information about its business

activities through mediums that include the official corporate website and CSR Report.

Shareholders and Other Investors

Communication Tools

Periodic financial statements/

summaries of accounts

Business reports/annual re

ports

Business Partners

C.I. TAKIRON material intro

duction and cu stomer sup

port forum (online)

Customers

Various product cata logs,

SDS, inquiry/ma terial re

quest forum (online)

Administrations

Local Communities and Society

Employees

Internal newsletter

Company intranet

Consulting services/in ternal

reporting desk

Points of ContactShareholder meetings/fi

nancial settlement briefings/

IR

Purchasing activities

Product sales/promotional activities/quality assurance supportAdvertising and marketing through exhibitions and various other mediums

Approval applications/va

rious notifications

Participation in activi ties

sponsored by the govern

ment

Participation in community

activities/events

Welfare volunteer activities

and fundraising/donation

activities

Labormanagement round

tables/labormanagement

joint coun cils

Various training

C.I. TAKIRON Group Corporate Code of Conduct (Overview)

Basic Approach to Corporate Activities

Develop sound corporate activities

Comply with laws and regulations

Contribute to society

Respect fundamental human rights

Social Responsibilities

Protect the global environment

Engage in responsible political contributions and endowment

activities

Eliminate antisocial forces and groups

Facilitate international cooperation

Support security export control

Code of Conduct for All Executives and Staff

Protection of Company Assets and Code of Conduct for Corporate Information

Protect tangible and intangible corporate assets

Provide proper information about each C.I. TAKIRON Group

companies, customers, and purchasing partners

Conduct appropriate accounting procedures

Conduct appropriate public relations campaigns

Properly manage intellectual property

Code of Conduct for Customers, Purchasing Partners, Competitors, etc.

Conduct fair and open business dealings

Engage in transactions with purchasing partners

Ensure product safety

Ensure appropriate gifts and entertainment

Ensure appropriate entertainment for government employees, etc.

Code of Conduct for Providing Information to Shareholders and Other Investors

Respect for the human rights of all executives and staff

Ensure a safe, sanitary work environment

C.I. TAKIRON responds to the requirements and expectations of every stakeholder while aiming to contribute to the sustain-

able growth of society through its businesses with the mission of creating a people- and earth-friendly future through plastics

technology.

We also provide safe, reliable products and services, promote fair business activities, respect human rights, execute environ-

mental measures as well as engage in CSR activities such as coexisting with local communities to enhance corporate value.

Environmental/Social Contribution

Reduce the environmental impact

Provide environmentfriendly products

Respond to social issues

Work-style Innovation/Health and Safety

Ensure employee health and safety

Respond to diversity

Develop human resources

Compliance

Promote Group compliance systems

Heighten compliance awareness

Strengthen internal reporting systems

Communication with Society

Actively disclose the proper information

Engage in a dialogue with stakeholders

Engage in a dialogue with local communities

Publish corporate information

Ensure no trading such as stocks based on insider in formation


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Increasing the efficiency and transparency of manage

ment is essential to earn the trust of stakeholders and

enhance corporate value. Therefore, we strive to strengthen

governance systems and enhance corporate governance

founded in the two points listed on the right.

1. The Board of Directors is made up of eight directors,

including two outside directors, who determine important

matters related to management and supervise the busi

ness execution of directors.

2. Each director participates in the decisionmaking pro

cess related to business execution in accordance with

their role determined by the Board of Directors.

Four audit & supervisory board members, including two out

side audit & supervisory board members, also supervise

the adequateness of the directors’ execution of business.

Compliance System

Society requires companies to first comply with laws and regulations but also to take action with a high level of ethics conforming to social norms and conventional wisdom. C.I. TAKIRON Group Corporate Code of Conduct was established recognizing these requirements from society so that every single employee will engage in their tasks in accordance with laws and regulations, social norms and the corporate philosophy.

C.I. TAKIRON Group Compliance Program was also formulated as a basic compliance policy founded in the three points below.

We actively strive for compliance by building management systems with the compliance committee at the core while appointing a person responsible for compliance even at Group companies.Basic Policy1. Create a sound organizational culture and climate2. Create systems and operational processes to prevent

scandals3. Penetrate an awareness about compliance in all executives

and employees and encourage the practice of compliance

Compliance System

Person in Charge of C.I. TAKIRON Compliance

Person in Charge of C.I. TAKIRON Compliance Applicable

Companies Besides C.I. TAKIRON

Compliance Subcommittees

Compliance Committee

Chief Compliance Of�cer President of C.I. Takiron

C.I. TAKIRON Board of Directors

C.I. TAKIRON Audit & Supervisory Board Members

Risk ManagementC.I. TAKIRON Group saw the management integration

as an opportunity to revise the Risk Management system to prevent the manifestation of various risks at overseas sites and throughout the rest of the Group.

We identify critical management risks after fully grasping the potential risks not only at each individual site but throughout the entire Group. Our system charges each

department concerned to formulate and execute crossdepartmental measures against risks.

We have also put in place a system to regularly monitor the progress and effectiveness of measures and developed the PDCA cycle.

Visualizing risk and clarifying countermeasures heightens our sensitivity to risk while simultaneously reducing risk.


4 Business SegmentsResearch &

Development Department

Production Division

Specialty Films Business Division

High Functional Materials Business Division

Environmental Materials Business Division

Construction Materials Business Division

Corporate Administration Division

Corporate Planning Division

Discussions of Important Matters on Operational Execution

Auditing

Management ConferencePresident

Chief Operating Of�cer

Compliance CommitteeInternal Audit Department

President

Business Execution

Accounting Audit

AuditingNomination/DismissalDiscussions of Important Matters

Business Execution Reports

Accounting AuditorReporting

Audit & Supervisory Board4 Audit & Supervisory

Board Members(2 of Which Are Outside Audit &

Supervisory Board Members)

AuditingBoard of Directors8 Directors

(2 of which are outside directors)

Decision-making/Supervision

Appointment/Dismissal



General Meeting of Shareholders

Super-vision

Corporate Governance System

Conduct Risk Surveys

Conduct Corporate Of�cer Workshop

Identify Potential Critical Risks

Formulate Measures Against Risks

Gain Management

Approval

Execute Measures Against Risks

Report to Management

Risk Assessment Risk Monitoring

Risk Management Scheme (Scope: Entire Group)

C.I. TAKIRON Group is enhancing corporate governance, strengthening corporate governance systems, and promoting the

optimal operation of risk management systems to provide sound and highly transparent management.


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Together with CustomersQuality Assurance Initiatives

C.I. TAKIRON promotes quality assurance activities to

fulfill the needs of customers and ensure quality at every

stage from the planning and development of products to

the production and after sales services to provide a quality

able to satisfy our customers under the motto to be the best

of the best.

We have first facilitate contact points as a means of com-

munication with our customers such as a contact form on

our homepage and a toll-free telephone number to our cus-

tomer service center in order to build better frameworks for

products and services by taking advantage of the feedback

that we receive from customers.

Each product site has acquired and operates the ISO

9001 as a basic system for our quality assurance activ-

ities, which functions as an important pillar of the Quality

Management System (QMS) that we have built.

We have prepared a framework to objectively verify the

operational progress of this quality management system

through internal audits by each production site and audits

by the head office.

Together with Shareholders and Other Investors

C.I. TAKIRON releases important information required

for disclosure by relevant laws, such as the Financial

Instruments and Exchange Act, as well as regulations stip-

ulated by the Tokyo Stock Exchange through the Company

Announcements Disclosure Service (TDnet) provided by the

Tokyo Stock Exchange in addition to public releases and

information published on the corporate homepage.

We also send shareholder reports that include a financial

overview and other topics to all of our shareholders every

six months. C.I. TAKIRON holds financial settlement brief-

ings by top management every second quarter and at the

end of the year as well for institutional investors and ana-

lysts in addition to communicating with these stakeholders

through individual meetings.

Safety InitiativesHandling Chemical Substances Contained in Products

We have not registered with the EU REACH Chemical

Compliance Services because more than half of the prod-

ucts at C.I. TAKIRON are molded products. However, C.I.

TAKIRON will communicate information to customers and

appropriately handle chemical substances based on the

191 chemical substances designated up until June 27, 2018

as well as substances of very high concern (SVHC) that will

be added in the future from our position as an intermediate

in the supply chain.

We will also handle other chemical substances contained

in products according to the handling procedure indicated

below and share that information with our customers.

In the same way, C.I. TAKIRON will also properly handle

various chemical substances in accordance with the amend-

ments to the Food Sanitation Act enacted on June 13, 2018

in addition to the various other laws and regulations.

Basic Purchasing Policy

Together with Business Partners

Our basic philosophy is to find harmony with the environ-

ment and provide people-friendly products to society in all

our activities founded in plastic materials and material pro-

cessing technologies.

We pursue partners able to persevere in product devel-

opment with us by exploring material procurement, plastics

related to material procurement, materials related to plas-

tics, metal materials for plastic composite materials as well

as a broad range of materials and technologies such as pro-

cessed products.

Sociability Report

Together with Stakeholders

Framework of the Quality Assurance System

Customers FeedbackCustomers Feedback

Products Planning

Products Design

Products Preparation

Sales Services

CustomersNeedsMarketTrends

Customers Satisfaction Complaints

Claims

Plan Do Check Act

Global Procurement-GLOBAL-

We will always explore materials and products that match the market

needs for products by widely pursuing procurement partners world-

wide.

Competition Open to All and Mutually Trusting Relationships

-FREE & FAITH-

We aim for business relationships founded in the principle of compe-

tition open to all regardless of affiliation, size of company or business

track record. We will also purse dealings based on a relationship of

trust by respecting the position of one another.

Fair and Impartial Dealings-FAIR-

We will always aim to build new business relationships regardless of

conventional business practices. We will also comply with all laws and

regulations relevant to purchasing and build relationships based on

fair and impartial dealings.

Environmentally-Friendly Procurement-GREEN PROCUREMENT-

We aim to realize a sustainable, recycling-oriented society. As a

means to this end, we will prioritize the selection of companies with

ambitious environmental conservation activities and promote green

procurement, which procures materials that contribute to the reduc-

tion of the environmental impact.

Business Partners

Business Partners

Head Of�ceEach Production Site

Administrations/Industrial Associations

Business Divisions

Various Databases

Customers

SDS

Legal Amendments

Various ReportsApplicable Information Various Amendments

and Other Information

Browsing/Distribution of

Information

Product Information

Various Amendments and Other Information

Handling Framework for Chemical Substances Contained in Products

The business activities of C.I. TAKIRON Group rely on our relationship with all of our various stakeholders. We will share our

values and deepen the cooperation with all of our stakeholders to contribute to the sustainable growth of society through our

business activities based on mutual trust.


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Sociability Report

Together with Employees

Education and Training Programs

C.I. TAKIRON has put in place stratified training for the

purpose of long-term human resource development.

We also plan and manage educational programs linked to

annual targets of each department in occupational training to

learn the specialized knowledge necessary to execute opera-

tions. This offers the best education according to the educational

needs of the organization and the skills of the individual.

C.I. TAKIRON also supports employees eager to continu-

ally hone their skills by formulating programs for employees to

take distance learning and other courses that let them take on

the challenge of acquiring certifications and learning skills in a

wide range of genres to actively endeavor toward their goals.

Unique Training ProgramsLong-distance relay training

C.I. TAKIRON is furthering the creation of a new corporate culture and

nurturing human resources that hold broad perspectives by appoint-

ing senior employees who actively participate as teachers to lecture

and pass down the passion, knowledge and examples of successes

and failures in work to the next generation while building networks that

go beyond the barriers of the organization and departments.

New employees trainingNew employees training is one area of education training

C.I. TAKIRON Group is putting particular emphasis. We con-

duct training immediately after employees enter the company

and follow-up with training six months after employees have

joined C.I. TAKIRON Group with the human resource depart-

ment at the core to see the growth of individuals after those

six months and consider each person’s future career.

New employees mentor trainingThe new employees mentor training is a system to teach

senior employees the knowledge necessary to provide

medium- to long-term operational and psychological support

to new employees on a daily basis.

We hope to bring out the full potential of new employees

more quickly while strengthening a relationship founded in

trust by checking on the progress of new employee devel-

opment plans as well as their growth as professionals.

In addition, this training has been setup as a place to discuss the

development of all mentors by sharing concerns and problem points

when offering guidance, discussing better solutions and putting

those solutions into practice, which aids in the growth of each mentor.

New Employees Training New Employees Mentor Training

Work-Life Balance

C.I. TAKIRON has begun to engage in measures to reduce

the amount of overtime. Building systems to properly manage

overtime and promote more efficient operations has succeeded

in reaching a 55.4% rate of paid leave taken by employees in

fiscal 2017. We have designated every Wednesday as a day

to leave the office early and promoted this activity by posting

posters and running announcements in an effort to encourage

everyone to leave the office at the set time.

C.I. TAKIRON has also adopted a cafeteria plan as part

of its service and benefit programs to support work-life bal-

ance from an economic perspective. The effective use of

this cafeteria plan helps improve operational performance

to build a balanced lifestyle for each and every employee.

In addition, to encour-

age employees to take

paid annual leave, we

have begun looking into

the introduction of an

hourly leave program

and other specific mea-

sures to reach the 70%

target for fiscal 2020

advocated by Japan.

Properly Managing Work Hours

C.I. TAKIRON is furthering the primary measures below to

properly manage working hours and build a healthy work-

place environment.

Commitment to a overtime rule (36 agreement)Employees who have the potential to exceed the maxi-

mum amount of overtime and their supervisors commit to

a comprehensive overtime rule (36 agreement) which pro-

vides alert notifications in advance through the attendance

system.

Health management for employees who work long hoursC.I. TAKIRON requires employees who work long hours to

consult with an industrial physician and submit results of an

examination to verify their health.

Grasping overtime hoursC.I. TAKIRON is fully eliminating unpaid overtime by

clarifying the departure time and the time in overtime appli-

cations using the attendance system while also requiring the

submission of an attendance report through a supervisor.

Promoting Employment of Disabled Persons

C.I. TAKIRON has formulated Guidelines on the

Employment of Disabled Persons. We of course fulfill the

rate of employee of disabled persons stipulated by law but

also further the employment of disabled persons at the head

office and each production site in an effort to encourage

greater employment and heighten the employment rate.

モーかえる！

C.I. TAKIRON Group cultivates a climate to nurture human resources able to actively step up to challenges toward targets through-

out the entire group while understanding and respecting the corporate philosophy. We hope to always be an organization con-

tinually releasing innovative things and will clarify our desired human resources and actively invest in education and training to

realize our innovation goals.

C.I. TAKIRON Group respects the work styles of each and every employee always aware of work-style innovation, work-life

balance and the provision of an environment where diverse human resources can actively participate with the hope of building

a healthy workplace in which everyone feels at ease.

Health Management

C.I. TAKIRON Group provides regular physical examina-

tions to employees for the purpose of managing the health

of every employee and always maintaining a high-level of

organizational performance. We have set up health consult-

ing services at each business establishment to provide a

place to talk with industrial physicians as a place to seek

counsel about the results of physical examinations.

We are also promoting efforts to prevent mental health prob-

lems by encouraging employees to take stress tests to assess

their stress levels as well as raising awareness about the

importance of addressing stress and improving the workplace.

Moreover, employees and their families have access to a

wide range of consulting services to discuss various con-

cerns and worries which may impact their work performance,

such as the employee assistance program in which employ-

ees and their families can consult with professional consolers

by phone or email about a variety of worries and concerns.

These services aim to build a healthy workplace where all

employees can work with both mental and physical health.

Mental Health Course


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Parental/Nursing Care Leave Program

C.I. TAKIRON strives to build a workplace where diverse human resources can work enthusiastically. Eight employ-ees used the parental leave program (only at C.I. TAKIRON Corporation) in fiscal 2017 and 100% of the employees who

wished to return to work after their parental leave did.We are also investigating the introduction of a program for male

employees to take parental leave more easily and are planning an internal newsletter to deepen understanding about the program.

TOPICS

Motto Shaberoka! (Talk More!) is a project with employee participation that builds trusting rela-tionships in a welcoming workplace and promotes unity to move people toward the same goals.

Open communication is indispensable in pulling out the maximum potential rooted in human resources and heightening the level of performance as a new company.

Therefore, this project provides communication opportunities such as an opinion poll for all employees, gatherings for people with the same length of tenure at the company, and ideal human resource committees run as a cross-departmental effort by employees. These are some of the communication opportunities that have been established.

Let’s Talk More!

Project to Promote Unity at C.I. TAKIRON with Employee Participation

Q Could you please explain the progress in unifying the personnel systems and their basic concepts?

We started to work on revising the personnel systems right after the merger in April 2017. At the time, our strategy was to start from a blank page to formulate the ideal person-nel system as a new company rather than tending toward the policies of a particular company.

For example, we devised measures from scratch to support child and nursing care and enhance work-life balance in addi-tion to implementing a new position for local regular employees to eliminate transfers by limiting positions to local staff. This is a com-pletely new system unlike anything that existed at either company.

I had many meetings with the management team about the direction for these new personnel systems before we migrated to them at C.I. TAKIRON only one year later in April 2018.

Q Could you tell us about the ideal human resources for C.I. TAKIRON Group as the General Manager of Human Resources Department?

C.I. TAKIRON Group wants people who actively step up to challenges as employees. We live in a generation where change can occur in many ways. Employees who actively endeavor in their business are vital to overcome those changes. That is why we will always set high targets and nurture individuals who have a desire to work toward achieving those targets with constant strive for self growth.

Q Could you please tell us about systems for career as well as human resource development?

We have reflected human resource development strategies from a long-term perspective in our new personnel systems. C.I. TAKIRON will leverage the policies implemented through this management integration to encourage growth by consid-ering the career of each individual in the broad scope of the divisions supervised by each department. Human resource development is largely divided into two directions. The first is found in a concept to foster the growth of people through experience in a variety of jobs. Based on this concept, C.I. Takiron has implemented a new U-turn Transfer System to offer experience to human resources by rotating them to operations

in different departments under the condition that they will return to their original department in roughly three years. Each individual transfers with a clear purpose that aims for them to leverage the experience they gain through the transfer when returning to their original department. The second offers a path to enhance expert knowledge and skills in a particular field to nurture professionals extremely versed in their occupations. This human resource development system allows employees to choose the path that is right for them by considering their desired career and expectations of those around them.

The company has also introduced a career consultation system where employees are able to talk to their supervisors once a year about their respective careers. These systems actively support the growth of the entire company by fully involving superiors to assist in nurturing greater skills and growth as individuals. Employees can use this as an oppor-tunity to figure out their desired role while superiors can take advantage of this as a chance to foster the growth of employees from educational plans to assignments.

Q What does the Human Resource Department want to engage in over the long term in the future?

I think the Human Resource Department will continue to put in place flexible systems to facilitate diverse work styles while enhancing the work-life balance of employees as its long-term initiatives. In addition to the local regular employee positions and career consultation recently introduced, my department will examine implementing other systems such as stronger support for diversity and inclusion, hourly leave systems, and telework programs. I expect many employees will take this opportunity to use these systems to define their own work style and grow together with the company.

The growth of employees helps C.I. TAKIRON’s growth. I believe the hard work of each individual and repeated successful experiences through collaborative efforts with colleagues are important for employee growth. To refine the communication skills that build good relationships with colleagues, I want to provide more opportunities for train-ing and dialogue in addition to establishing a work-friendly environment.

INTERVIEW Questions for the General Manager of Human Resources Department

Direction of Human Resource DevelopmentThe integration of management brought with it the unification of

personnel systems, which came to fruition at C.I. TAKIRON Group

in April 2018. We asked the General Manager of Human Resources

Department about things from the basic concepts of these new per-

sonnel systems to the new measures that have been adopted and

the exceptions of an ideal human resource in C.I. TAKIRON Group.

General Manager of Human Resources Department

Ryojiro Ogawa

Promoting the Active Participation of Women

C.I. TAKIRON offers many fields in which women can ac-tively participate.

Women who have newly graduated in fiscal 2018 have been assigned to departments such as plant engineering and sales divisions and the scope of available roles is ever growing. (Number of new graduate hires in fiscal 2018: 8 men; 4 women)

We also conducted research to think about tomorrow's workplace over roughly four months in fiscal 2017 as part of our promotion for the active participation of women. Specific measures to address issues were presented to the President as well as other top man-agement at the final meeting for the purpose of identifying potential risks in each office and throughout the company from both the public and private perspectives of women. We are incorporating these proposals in action plans based on The Act on Promotion of Women’s Participation and Advancement in the Workplace as well as advancing efforts as part of promoting diversity.


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Sociability Report

Health and Safety Initiatives

Health and Safety System

Health and Safety Policies

Each company develops and promotes health and safety

activities according to the integrated policies under the

slogan for every person to always think about safety and

build a robust workplace. Sharing and using bilateral infor-

mation while realizing accident and recurrence prevention

establishes a system to continually reduce risk.

Activities at Production Sites

C.I. TAKIRON Group conducts various activities at each

production site with the health and safety committees at

the core. We are also working to vitalize these activities by

dividing production sites into five groups and conducting

mutual safety checks between plants to share information

across sites by incorporating efforts that point out problem

points and points of reference at other sites. In fiscal 2017,

C.I. TAKIRON conducted safety inspections at 9 plants, 17

group companies in Japan and 7 plants overseas as activi-

ties that have brought a sense of unity. In the future, we aim

to build a safety control system that embeds the effective-

ness of these activities.

Reports and an Exchange of Ideas for Points of Improvement On-site Patrols/Status of Mutual Safety Checks

C.I. TAKIRONHealth and

Safety Council

C.I. TAKIRON

Group Companies

Each Business EstablishmentHealth and Safety Committees

Each CompanyHealth and Safety Committees

I was able to experience the wide range of dangers in the plant through these

simulations in the safety sensory training, which improved my awareness about

safety. I was especially surprised by the unbelievable force of the machines in the

simulation to feel what it is like to become entangled using bamboo and chop-

sticks. It was a revolution knowing that I work next to such dangers. It was also a

realization to know once you become caught or entangled, there is not much you

can do. I also felt how extremely important anticipating the hidden dangers in the

plant is to prevent accidents.

In the future, I will ensure a safe working environment though risk prediction

activities and 6S activities (5S + safety) as a member of the Engineering Group. I

also want to value communication that is able to prevent accidents by sharing the

hidden dangers that surround us.

Ibogawa Plant

Engineering Group

Akemi Otagaki

Employee VoiceReflection on Safety Simulation Training

C.I. TAKIRON Group believes health and safety are the core of the company’s existence and knows the happiness of every

person working therein is only possible through a safe workplace as well as a healthy mind and body. We share that recognition

with all of our employees and work day-to-day in health and safety activities to ensure every employee acts responsibility. Zero

disasters is truly feasible. We aim to achieve a healthy workplace environment filled with enthusiasm and strive in activities to

continually reduce health and safety risks throughout the entire Group. Safety Simulation Training

C.I. TAKIRON introduced safety simulation equipment at

the Aboshi Plant in fiscal 2017 and conducted sensory train-

ing to heighten the ability of employees to anticipate danger.

We have conducted this sensory training 80 times since fiscal

2017 with a total of 774 trainees.

Our goal is to enhance the sensitiv-

ity of every employee about danger

and heighten awareness about safety

to achieve eliminate occupational accidents throughout the

entire C.I. TAKIRON Group by further expanding educational

simulators that conform to production equipment to cultivate

intuition of familiar dangers in the workplace.

Currently Available Safety simulators

① Sling entanglement safety simulator

② Broken rotation blade safety simulator

③ Pointing and calling safety simulator

④ Screw feeder entanglement safety simulator

⑤ V-belt entanglement safety simulator

⑥ Solvent explosion and combustion safety simulator

⑦Overcurrent and tracking safety simulator

⑧ Effective earth leakage breaker safety simulator

⑨ Sheet entanglement safety simulator

⑩ Roller entanglement safety simulator

⑪ Air cylinder entanglement safety simulator

⑫ Fine particle explosion safety simulator

⑬ Slip and fall safety simulator

Slip and Fall Safety Simulator

Fine Particle Explosion Safety Simulator

V-belt Entanglement Safety Simulator

Important Actions

① Penetrate safety awareness via activities with full participation

② Standardize basic safety activities

③ Quickly identify accident factors and execute measure to mitigate risks

④ Comply with relevant laws and regulations and fully respond to legal reforms

⑤ Share information and conduct safety education

⑥ Promote measures to prevent mental disorders

⑦ Properly manage working hours


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Sociability Report

Together with Local Communities and Society

Coexisting with Communities in Areas Around Business and Production Sites

C.I. TAKIRON Group has a proven track record of major

activities in fiscal 2017 that not only includes its engage-

ment in donation activities such as contributions to disaster

afflicted areas but also its active participation in environ-

mental conservation and beautification activities in local

communities as well as various other events held by its

neighbors.

We will continue these efforts in support activities in the

future to contribute to each region and assist afflicted areas.

Social Contribution Activities at Overseas SitesClose to 90% of the roughly 260 million people in Indonesia are

Muslim. Many of the events are associated with the Islam religion.PT TAKIRON INDONESIA has been engaged in philanthropic

activities for these events since 2003 in addition to distributing daily goods to local households before the Eid al-Fitr festival.

The more than 500 households in the local community are informed about the distribution of these daily goods to help gain understanding about our day-to-day business activities and show our appreciation for their cooperation. PT Takiron Indonesia also hand delivers these commodities to every household.

Local employees from SHANGHAI CIK ELECTRONICS CO., LTD. located in Shanghai, China also participate in reg-ular blood drives as part of the social contribution activities.

In the future, we will work to build understanding with the people in the local community while continuing to engage in social contribution activities alo-ngside our b u s i n e s s activities.

Promotion and Development of SportsC.I. TAKIRON concluded an official Japan swimming team

sponsorship agreement with the Japan Swimming Fede ration (JASF) in fiscal 2015 as a way to cheer on the Japan swim-ming team (TOBIUO Japan).

The Pan Pacific Swimming Championships were held in 2018 as one of three major world swimming championships leading up to the Olympic Games

C.I. TAKIRON sponsored the Pan Pacific Championships held in Japan for the first time in 16 years while also further backing

the promotion of competitive swimming.As a provider of non-slip flooring for

poolside safety and security, TAKIRON MATEX CO., LTD. also sponsors swimming tournaments held by the Japan Swimming Federation as well as provides broad sup-port of activities to promote swimming as an official sponsor of the Japanese Para-Swimming Federation.

Biodiversity Conservation Initiatives“Akane sasu murasakino yuki shimeno yuki nomori wa mizu ya

kimi ga sode furu”The Gromwell (gromwell means a plant of murasaki) depicted

in the Man’yo-shu (the earliest anthology of poetry existent in Japan) was chosen as the flower of Higashi Omi City and often used as a dye or herbal medicine since long ago. However, this rare plant has been designated an endangered species today due to global warming and other environmental changes.

Higashi Omi City decided to take on the challenge of cultivating Gromwell in the its cool valleys together with everyone from the community building cooperative, local high schools and local com-munity as part of the regional revitalization efforts.

DAIPLA CORPORATION (former TAKIRON PROTECH CO.,

LTD.) gave its cooperation to these activities as a business with pro-duction sites located in Higashi Omi City in Shiga prefecture, which has deep ties to this historic collection of ten thousand leaves.

DAIPLA CORPORATION (former TAKIRON PROTECH CO., LTD.) pro-vided animal fences for cultivation areas to prevent animals like deer from feeding and damaging the crop in addition to the installation conducted by employees as a member of the community. We will help with these conserva tion activ-ities to preserve the Gromwell.

Support of Research Institutes and Organizations of the United NationsC.I. TAKIRON has provided ongoing support to research into the

mechanisms of climate change on a global scale, including global warming research conducted by the Atmosphere and Ocean Research Institute (Division Climate System Research), The University of Tokyo.

In May 2018, we also sponsored the WFP Walk the World 2018 charity event held in Minatomirai, Yokohama by the United Nations WFP with the voluntary participation of roughly 30 of our employees and their families to end the hunger of children

in emer ging coun-tries. Some of the participation fees for this event are donated to the Uni-ted Nations WFP Feeding Policy

Main Activity Results (FY 2017)

Activity Status

Participation in Cleaning and Planting Activities along Sagami River(Hiratsuka Plant)

Recourse Collection Activity(TAKIRON POLYMER CO., LTD.)

Provision of Relief Supplies after the Great East Japan Earthquake(NIPPON POLYESTER CO., LTD.)

Kasumigaura City Flower Road Planting Activity(Tokyo Plant)

Provisions of Internships for Foreign students(Okayama Plant)

Competes in Higashi Omi City Initial Fire-Fighting Tournament (DAIPLA CORPORATION (Former TAKIRON PROTECH CO., LTD.))

Participation in the Niimi Furusato Festival(Okayama Plant)

Higashi Omi Municipal Sawayaka Environment Development Conference (DAIPLA CORPORATION (Former TAKIRON PROTECH CO., LTD.) Sponsors)

Who’s THE FASTest!

チケット好評発売中！チケット購入は大会公式サイトへ

16年ぶりの日本開催！日本チームをみんなで応援しよう！

WFP Walk the World 2018 in Yokohama

Daily Good Distribution Before the Eid al-Fitr Festival

Letter of Appreciation

C.I. TAKIRON Group hopes to be a good neighbor to the local citizens of each community in regions where each business

establishment and production site is located. With this hope, we engage in a wide range of efforts, including participation in

various community activities and the provision of support to afflicted areas.

In addition, as a member of the community entrusted with society, C.I. TAKIRON actively works to support sports activities as

well as research institutes, organizations of the United Nations and other bodies in addition to biodiversity conservation and

other preservation activities.

Blood Drive Certification

Activity No. Activity No.

Local community beautifi-cation activity 23 Internship offerings 3

Donations to local com-munities 9 Blood drive 3

Participation in community events and activities 5 Provision of resources to com-

munity events and activities 3

Participation in traffic safety activity 4 Monetary donations to

afflicted areas 2

Resource collection 4 Resource contributions to afflicted areas 1

Total 57


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Environmental Policy Environmental Management System

C.I. TAKIRON states that it will always try to protect the

global environment and aim for permanent development

and growth of the company in its management philosophy

and engages in activities to comply with environmental

regulations, reduce the environmental impact, supply envi-

ronmentally-friendly products, save resources and energy,

and reduce waste.

Our environmental management system has been built to

formulate Group-wide policies and targets for these envi-

ronmental activities and manages the subsequent progress.

We have established a committee led by the Chief Operating

Officer of the Corporate Planning Division as a system to

periodically review the results and progress at management

conference.

Environmental Conservation Activities and Results

C.I. TAKIRON sets targets related to environmental issues

throughout the entire Group and endeavors in environmen-

tal protection activities.

Our activities and the results of a self-assessment for

fiscal 2017 are outlined below.


In Harmony with the Global Environment

Environmental Management System

Environmental Diagnostic Rules Environmental Management Regulations

Meeting to Promote Environmental Conservation

Meeting on the ProductionEnvironment Management Conference

FY 2017 Activities and Results(Self-Assessment (Achievement Level) More than 90%: ◎　70% to 90%: ○　Less than 70%: ■)

Target Item Progress of Activities Self- Assessment

① Promote activities to reduce the environmental impact

Reduce waste ● Improved manufacturing yield and sorted waste ■

Save energy ● Implemented energy-saving equipment and devices, etc. ■

② Manage and reduce chemical substances

Comply with laws and regulations●�Complied with laws and regulations, including the Law Concerning the Examination

and Regulation of Manufacture, etc. of Chemical Substances, the Law concerning Pollutant Release and Transfer Register, and the Industrial Safety and Health Act.

◎

Reduce emissions and trans-fer of PRTR-listed substances

●Conducted activities to reduce the use of listed substances ○

③ Publicly release environmental activities

Environmental Report●�Published information publicly through our CSR Report and on our

homepage◎

④ Evaluate activities through environmental accounting

Environmental Accounting●�Aggregated and assessed environmental accounting in accordance

with Ministry of the Environment Guidelines○

Environmental Philosophy

“We will strive to manufacture products that take into consideration the people, earth, and future while always

keeping the conservation of our planet in mind.”

Basic Environmental Policy

1. We will fully comply with laws and regulations related to the environment and strive to maintain harmony with society.

2. We will establish rules and systems for environmental con-servation activities and promote environmental conservation as a continuous cycle.

3. We will make efforts to reduce the environmental impact by reducing emissions of harmful substances, reducing waste, and conserving energy and resources in all of our corporate activities.

4. We will always keep the environment and safety in mind when providing products and services and developing technolo-gies.

5. We will promote communication with society through active environmental information disclosure, while making efforts to increase awareness of environmental conservation among our employees.

C.I. TAKIRON Group has formulated a new environmental policy for the purpose of conserving the global environment. We

strive to reduce the environmental impact across all of our business activities, such as improving production processes, devel-

oping environmentally-friendly products and providing services, in line with this policy. The Group will strengthen its environ-

mental management system while advancing environmental conservation efforts throughout the entire organization, such as

measures to address the problem of microplastics and other social issues.


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Environmental Index

Energy and Resources Saving Initiatives

We have slightly reduced the non-consolidated amount

of energy used at C.I. TAKIRON Corporation, which has

also led to a reduction in CO2 emissions in fiscal 2017. The

energy consumption rate was also reduced through the pro-

motion of energy-saving activities and other efforts.

However, incorporating data former C.I. Kasei Group

companies for fiscal 2017 from before the management

integration showed an increase in the energy use, energy

consumption rate, and CO2 emissions.

Initiatives to Reduce Emissions

C.I. TAKIRON defines the total weight of waste, waste

valuables and exclusive waste recyclables as total waste

emissions and sets targets for the reduction of the total

waste emissions.

Our Group has shown an increase in total waste emissions after

incorporating data for overseas former C.I. Kasei Group compa-

nies for fiscal 2017 from before the management integration.

In addition, we have begun activities as of fiscal 2017 to

grasp the recycling rate based on the ratio of weight recy-

cled from waste.

Chemical Substance Management and Reduction Initiatives

C.I. TAKIRON Group strives to find alternates to PRTR-

listed substances which have a large environmental impact

throughout the entire Group while working to reduce the use

of listed substances.

The amount of toluene emissions dramatically increased

due to a calculation of emissions from fiscal 2015 that

includes former C.I. Kasei Group companies, which used

solvents.

However, styrene emissions peaked and then declined as

of 2015 due to the introduction of processing equipment.

Bis phthalate (2-ethylhexyl) and organotin waste did

increase due to an increase in the production of products

that contain these chemical substances and, as a result, the

transfer amount rose.

Initiatives to Effectively Use Water Resources

C.I. TAKIRON Group accurately calculates the amount of

its water consumption and waste water for production sites

throughout the entire Group to effectively use limited water

resources.

Our Group has shown an increase in the amount of water

use and waste water after incorporating data for former

C.I. Kasei Group companies for fiscal 2017 from before the

management integration.

We will always strive to reduce the amount of water con-

sumption and waste water by furthering measures that

include the reuse of cooling water during production and

the introduction of water-saving equipment in the future.

Changes in the Energy Use and Consumption Rate

11.0

10.0

9.0

8.0

7.0

12.0

13.0

14.0

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2013 2014 2015 2016 2017*

(GJ/Manufacturing Ton)(GJ)

(Fiscal Year)

Former Takiron + Former C.I. Kasei (Non-consolidated) Former Takiron Group companies

Former C.I. Kasei Group companies Non-consolidated unit consumption Consolidated unit consumption

Changes in PRTR-listed Chemical Substance Emissions

2013 2014 2015 2016 2017*

(Kilogram)

(Fiscal Year)

Toluene Bis phthalate (2-ethylhexyl) Styrene Normal hexane Dichloromethane

0

20,000

40,000

60,000

2013 2014 2015 2016 2017* (Fiscal Year)

Recycling Rate

80

85

90

95

100

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

(%)(Ton)


Former C.I. Kasei Group companies

Changes in Carbon Dioxide (CO2) Emissions

2013 2014 2015 2016 2017* (Fiscal Year)

(Ton)


Former C.I. Kasei Group companies

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Changes in PRTR-listed Chemical Substance Transfers

2013 2014 2015 2016 2017*

(Kilogram)

(Fiscal Year)

Bis phthalate (2-ethylhexyl) Toluene Manganese and manganese compounds Organotin compounds

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

DefinitionsWaste emissions: Waste, waste valuables and exclusive waste recyclables

emitted from plantsExclusive waste recyclables: Paper, paper fibers and scarp ironWaste valuables: Items collected from waste emissions which can be soldWaste : Anything other than exclusive waste recyclables and

waste valuables contained in waste emissionsTotal waste emissions: Weight of waste emissions (total weight of exclusive

waste recyclables, waste valuables and waste)

Recycling Rate = (1– Weight of waste reclaimed without recyclingTotal waste emissions ) ×100

C.I. TAKIRON Group collects and analyzes yearly data for each environmental index at C.I. TAKIRON production sites and

Group production companies as part of its initiatives to reduce the environmental impact and conserve the environment.

We also further the reduction of our environmental impact and environmental protection activities by evaluating the efforts to

reduce the environmental impact of the business activities of each Group site and the results of those efforts.

Changes in Total Waste Emissions

2013 2014 2015 2016 2017*

(Thousand m3)

(Fiscal Year)Water consumption

Waste water

0

200

400

600

800

1,000

1,200

1,400

Former Takiron + Former C.I. Kasei (Non-consolidated) Former Takiron Group companies Former C.I. Kasei Group companiesFormer Takiron + Former C.I. Kasei (Non-consolidated) Former Takiron Group companies Former C.I. Kasei Group companies

Changes in Water Consumption and Waste Water


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Environmental Accounting

Environmental Conservation Effect (Effect in Business Areas)

Our Group has shown an increase in figures for all of the

items after incorporating data for former C.I. Kasei Group com-

panies for fiscal 2017 from before the management integration.

In addition, we have begun activities as of fiscal 2017 to grasp

the recycling rate based on the ratio of weight recycled from waste.

Economic Effect of Environmental Conservation

We incorporate data for former C.I. Kasei Group companies for

fiscal 2017 from before the management integration, but our Group

has shown an increase in the amount of reductions for all of the items.

In particular, production improvement activities were very

effective in improving the recycling rate and resource savings

and recycling increased the cost reductions.

In the future, C.I. TAKIRON Group will continue to promote

a better yield and a higher recycling rate.

Environmental Conservation Costs

C.I. TAKIRON Group has incorporated data for costs

related to environmental conservation from former C.I.

Kasei Group companies from fiscal 2017 before the man-

agement integration. The upstream/downstream costs and

management activity costs attributed to an increase in

purchasing of materials such as packaging with a low envi-

ronmental impact increased, but the total costs decreased.

We reduced the amount of investment across almost all items.

Distribution Initiatives

C.I. TAKIRON is a specified shipper for more than 30 mil-lion tons annually.

We have been submitting rationalization plans and regu-lar reports to competent authorities while striving to review distribution sites and improve load efficiency, including that at each Group company, to achieve those plans.

As a result, we were able to lower unit emissions in fiscal

2017 thanks to the enlargement of trucks on main routes, effectiveness of measure to improve load efficiency, and a favorable climate in a business with high charge rate.

C.I. TAKIRON will continue to enlarge trucks on main routes and conduct measures to improve load efficiency in addition to implementing modal shifts for the purpose of fur-ther raising efficiency in fiscal 2018.

(Unit: Millions of Yen)

CategoryFY 2016 FY 2017

Cost Investment Cost Investment(1) Business area costs 549 217 307 (12) 148 (13)

Breakdown

(1)-1 Pollution control costs 53 43 26 ( 1) 10 ( 3)(1)-2 Global environmental protection costs 175 138 89 ( 5) 134 (10)(1)-3 Resource recycling costs 321 36 192 ( 6) 4 ( 0)

(2) Upstream/downstream costs 139 0 196 ( 4) 10 (10)(3) Management activity costs 73 20 117 ( 1) 0 ( 0)(4) Research and development costs 0 0 0 ( 0) 4 ( 0)(5) Outside activity costs 20 4 21 ( 0) 2 ( 0)(6) Environmental compensation costs 0 0 0 ( 0) 1 ( 1)

Total 781 241 641 (17) 165 (24)Data for former C.I. Kasei Group companies included in parenthesis

Effective Item FY 2016 FY 2017

1. Power consumption (thousand kWh) 158,625 217,141 (62,943)

2. Carbon dioxide emissions (t) 95,686 119,483 (24,134)

3. Waste water from plants (thousand m3) 851 897 ( 93)

4. Total waste emissions (t) 12,034 13,936 ( 2,906)

5. Recycling Rate (%) — 97.0 (90.1)Data for former C.I. Kasei Group companies included in parenthesis


Effective Item FY 2016 FY 2017

Income Income from sale of waste valuables 68 120 (11)

Cost re-ductions

Energy cost reductions from energy savings

34 40 ( 1)

Cost reductions from resource savings and recycling

152 226 (21)

Data for former C.I. Kasei Group companies included in parenthesis

Result Unit Reductions

Quantity of CO2 reductions 147 t-CO2 / year

Rate of CO2 reductions 43.4 Percentage (reductions)

Effectiveness of FY 2017 Ecoship and Modal Shifts

Ecoship Logo

The Recyclable Blast Coated Film Removal for Lead and PCB Waste Reduction. developed at the Eco Clean Blast Research Association, an organization C.I. TAKIRON has joined as a member, was presented the Minister of the Environment Award in 2018.

Blast methods are techniques adopted in construction to re-apply coatings on steel bridges by first blasting a griding material onto the coated surface to shave off and remove the old coating. However, the Recyclable Blast Coated Film Removal for Lead and PCB Waste Reduction takes advantage of recyclable metal grit material as a grinding material that can be sorted and reused without grinding. This blast method has been highly regarded for drastically reducing the industrial waste and fine particles produced by con-ventional grinding materials in addition to reducing costs through the reuse.

C.I. TAKIRON worked with the Eco Clean Blast Research Association to develop a curing sheet with superior durability and flexibility to use during blast construc-tion. We hope to release this curing sheet to the market during fiscal 2018.

Compared to the standard curing sheets that are used, our curing sheet offers. features able to reduce the unwanted byproducts for its durability and softness.

Accepting the Award

Exterior Picture of Installation

Picture of Installation Left: Competitor Sheet

Right: Developed Product

Developed Product

Competitor Product

C.I. TAKIRON Group has implemented environmental accounting for the purpose of accurately understanding and analyzing the

costs and cost effectiveness of environmental protection activities to promote more efficient environmental conservation activities.

Therein, we are calculating the amount of investment and costs for environmental measures, energy and resource saving

measures in addition to resource saving through production improvement activities and cost reductions through recycling.

C.I. TAKIRON is also actively working to diversify and improve efficiency of transport as designated shipments to reduce CO2

as additional measures besides its efforts in production.

2013 2014 2015 2016 2017 (Year)

Transportation quantity Unit Ratio (2012 not calculated due to a lack of data for the �scal year)

(Unit Ratio)(Ten Thousand Tons/Kilograms)

0.92

0.94

0.96

0.98

1.00

1.02

1.04

1.06

01,0002,0003,0004,0005,0006,0007,0008,0009,000

Changes in Cargo Loads

Environmentally-Friendly Method to Remove Coating from Steel Bridges


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Corporate Profile

Financial Highlights

Business Outline

Construction Materials BusinessThis business division builds comfortable housing centered upon housing materials, piping and plumbing equipment, and engineering materials and handles

housing material products to support urban development, polycarbonate building lighting material products with superior characteristics from shock resistance,

lightness, and lighting to weatherproofing in addition to flooring material products to support comfortable living on the feet, cosmetic film products with a great

tactile feel to use for decorative interiors and exteriors of buildings, and disaster prevention products to contribute to the prevention and reduction of disasters.

Specialty Films BusinessThis business division handles BONSET

used as heat shrink wrap labeling used for

commodities such as PET bottle beverages,

food and aroma containers, and SUNZIP

used as plastic zipper tape and zipper poly-

ethylene bags for packaging materials such

as food and medicines.

High Functional Materials BusinessThis business division handles high func-

tional materials such as vinyl chloride plates

that have chemical and heat resistance

properties, semiconductors such as various

high-function plastic plates which have fea-

tures such as anti-electricity, flame resistance

and wavelength control, and liquid crystal

products in addition to high-function materi-

als used in a broad range of industrial fields,

small-precision motors used for primarily

digital single lens reflex cameras but also in

medicine, measurement pumps and electronic locks as well as interiors, inspection equipment, and magnetic materials such as

magnetically responsive whiteboard sheets, tungsten sheets, and magnetic damping materials for environmental fields.

Environmental Materials BusinessThis business division handles material pro ducts

for agricultural products such as high-quality, high-

performance industrial vinyl and polyolefin films that

boast the top share in the world, sprinkler tubes and

other agricultural products, and infrastructure produ-

cts for water shielding as well as waterstops that sup-

port the functionality and safety of social infrastructure

such as tunnels, dams and waste processing sites.

Corporate Profile

Changes in Net Sales (Consolidated)

FY 2017 Net Sales by Segment

Changes in Ordinary Profit (Consolidated)

2013 2014 2015 2016 2017

147,805147,805

(Millions of Yen)

(Fiscal Year)0

40,000

80,000

120,000

160,000

200,000

Former Takiron (Consolidated) Former C.I. Kasei (Consolidated)* Up to 2016

ConstructionMaterials46,772

ConstructionMaterials46,772

EnvironmentalMaterials60,478

EnvironmentalMaterials60,478

High FunctionalMaterials

19,519

High FunctionalMaterials

19,519

Specialty Films20,169

Specialty Films20,169

Other867Other867


2013 2014 2015 2016 2017

8,204

(Millions of Yen)

(Fiscal Year)0

2,000

4,000

6,000

8,000

10,000

Former Takiron (Consolidated) Former C.I. Kasei (Consolidated)* Up to 2016

PresidentPresident and Representative Director Yosuke Minamitani

Fiscal Term March 31

Capital ¥15,189,138,561

Stock Listing First Section of the Tokyo Stock Exchange

Employees3,420 (Consolidated as of June 30, 2018)1,139 (Non-consolidated as of June 30, 2018)

Trade Name C.I. TAKIRON Corporation

Head OfficeNorth Gate Building, 3-1-3Umeda, Kita-ku, Osaka 530-0001, Japan

Established October 10, 1919

Incorporated December 20, 1935


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C.I. TAKIRON and Group Companies (As of October 1, 2018)

C.I. TAKIRON■Head Office: Kita-ku, Osaka

■ Tokyo Head Office: Minato-ku, Tokyo

Sales Offices■ Sapporo

■ Sendai

■ Tokyo

■Nagoya

■Osaka

■Hiroshima

■Kochi

■ Fukuoka

■Kagoshima

Plants and R&D Centers■ Tochigi Plant/Sano Plant (Tochigi Prefecture)

■ Tokyo Plant (Ibaraki Prefecture)

■Hiratsuka Plant (Kanagawa Prefecture)

■ Shiga Plant/R&D Center (Shiga Prefecture)

■ �Aboshi Plant/Ibogawa Plant/Yasutomi Plant (Hyogo

Prefecture)

■Okayama Plant (Okayama Prefecture)

■Kyushu Plant (Kumamoto Prefecture)

Group CompaniesConstruction Materials Business■ SANWA SIGNWORKS CO., LTD.

■NIPPON POLYESTER CO., LTD.

■ TAKIRON KC HOME IMPROVEMENT CO., LTD.

■ TAKIRON MATEX CO., LTD.

■BONLEX EUROPE S.R.L.

■ SHANGHAI C.I. KASEI TRADING COMPANY LTD.

Environmental Materials Business■HOKKAIDO SANPLUS CO., LTD.

■ PT. TAKIRON INDONESIA

■ YOKOBI CO., LTD.

■C.I. MATEX CORPORATION

■C.I. AGRO CO., LTD.

■DAILITE CO., LTD.

■DAIPLA CORPORATION

■HOKKAI DAIPLA CO., LTD.

■DAIPLA TEC. CO., LTD.

■DAIPLA WINTES CO., LTD.

■ TAKIRON ENGINEERING CO., LTD.

High Functional Materials Business■ TAKIRON POLYMER CO., LTD.

■CIK NANOTEK CORPORATION

■ TAKIRON-ROWLAND LIMITED

■ SHANGHAI CIK ELECTRONICS CO., LTD.

■ TAKIRON PLASTICS (CHANGZHOU) CO., LTD.

Specialty Films Business■BONPACK CO., LTD.

■BONSET AMERICA CORPORATION

■BONSET LATIN AMERICA S.A.

■ SHANGHAI SANPLUS PLASTIC CO., LTD.

Manufacturing Companies■ TAKIRON TECH CO., LTD.

Logistics Companies■C.I. TAKIRON LOGISTICS CO., LTD.

Head Office Tokyo Head Office

C.I. TAKIRON GroupThird-Party Perspective of the CSR Report 2018President of Sustainable ConsultingAdjunct Professor of Seikei University Masatoshi Ikari

Masatoshi Ikari graduated from the School of Engineering at Tohoku University. He worked at a major metal manufac-turer and think tank before stepping into his current position. Masatoshi Ikari has been involved in many different things from consulting on the creation of CSR and sustainability reports and a third-party perspective to ISO 14001 assess-ments, consulting and teaching of seminars.

C.I. TAKIRON Group came into existence on April 1, 2017. I have closely read this report, which is the second CSR Report published by C.I. TAKIRON Group. My third-party perspective is as outlined below.

Commendable Points

1. C.I. TAKIRON Group vows to create new corporate value through its- products and services toward resolving social and environmental issues and to contribute to the sustainable growth of society after stating the Sustainability Development Goals (SDGs) for its top commitments. In fact, these top commitments are explained even in sections other than Process for Enhancing Corporate Value at C.I. TAKIRON Group and Cont ributions to Society Through C.I. TAKIRON Products, which are the key concepts through this CSR Report.

2. The CSR Report (English Edition) does not include information about the round-table discussions, but the following points in particular have left quite an impression as a CSR report. The PVC Cushion Back Sheet flooring material contributes

to ensuring safety for the children who are entrusted with the next generation and elderly who are unsteady on their feet as a product from C.I. TAKIRON. These are wonderful exam-ples of solutions to social issues through Group business. In Considering Our Ideal Form for the Future, C.I. TAKIRON dis-

cusses an ideal form of a future-oriented company that adapts to social and environmental changes, such as a declining Japanese population, an aging society with a dwindling birthrate, the prev-alence of robotics and AI, the acceleration of globalization and many other ever more dire environmental issues.

3. I myself have experienced several management integrations during my time working in the corporate world. I respect the work it took from everyone involved to establish new personnel systems merely one year after the merger. Ryojiro Ogawa, the General Manager of Human Resources Department, spoke about reflecting human resource development strategies from a long-term perspective in the new per-sonnel systems and the ability for employees to use these systems to define their own work style and grow together with the company. I expect to see even further growth with a future-oriented approach.

Toward the Future

1. Only a very short amount of time has passed since the inception of C.I. TAKIRON Group and the scope of environmental data collection will surely expand. This will result in an increase in the total amount of the environmental impact. However, my biggest concern is the lack of disclosure for environmental targets over the next three to five years for example (not results from past data). In the future, the same environmental targets need to be released before engage in efforts via the PDCA cycle and pub-lishing the results of those efforts.

2. In the environmental report, the results (e.g. CO2 emissions, PRTR-listed chemical substances) are included after describ-ing the management system and various initiatives from the objective perspective of data trends. However, in the sociabil-ity report, the content has a wealth of explanations of policies and various initiatives, but the information faces a problem in regards to the results (e.g. numerical data for occupational health and safety, rate of employees taking physical exam-inations). I recommended the sociability report also takes an objective perspective with numerical results in the same way as the environmental report.

3. The Ministry of the Environment amended its Environ mental Reporting Guidelines for the first time in six years based on the SDGs, the adoption of the Paris Agreement and ESG investments that are increasing year-on-year. One of these amendments lays out the need to include future-oriented non-financial data by indicating the direction of management (long-term vision, strategy, and business models). This revision expects companies to draft and release a future-oriented long-term vision or strategies (targets for 2030 and 2050 in addition to the inclusion of past data).

I am very pleased for the praise given to us for our work in the process for enhancing corporate value, synergistic effect of the management integration and the new personnel systems as an organization putting great emphasis on creating synergy through the management integration in April 2017. We will continue to aim to maximize this synergistic effect.

I think the proposal to provide information related to medium- and long-term environmental targets as well as the disclosure of objective information in the

sociability report in addition to the formulation and disclosure of a future-oriented long-term vision and strategies that incorporate perspectives such as SDGs, the Paris Agreement and ESG investment will give us clear direction for CSR in the future.

As we approach our 100th anniversary in 2019, our Group will strive forward to forge sustainable growth of society and find solutions to social issues by incor-porating the feedback today and achieving each and every CSR activity for the next century to come.

Reflecting on the Third-Party Perspective

Director and Senior Managing Executive Officer

Takahisa Miyake


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C.I. TAKIRON Group

CSR Report 2018CORPORATE SOCIAL RESPONSIBILITY

Head OfficeNorth Gate Building, 3-1-3Umeda, Kita-ku, Osaka 530-0001, JapanTEL: +81-6-6453-3700 FAX: +81-6-6453-3884

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