E2 Initiative - Society - Responsibility to Our Stakeholders - CSR Report 2012 - JSR Corporation

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CSR Report 2012

E2 Initiative

The E2 Initiative Concept

In 2009, JSR launched a project that investigated possible approaches to two major goals: addressing risks related to environmental and energy issues, such as regulatory requirements for global warming mitigation, and finding ways to create new business opportunities. The E2 Initiative is the product of this endeavor. Named after the two initiatives it comprises, Eco-innovation and Energy Management, the E2 Initiative shows the outlook of JSR's Group-wide effort to create value on both aggressive fronts, such as the development of environmentally-friendly products, and defensive fronts, such as CO2 emission reductions at Group plants.

Schematic Concept of JSR's E2 Initiative Schematic Concept of JSR's E2 Initiative

E2 Matrix

The E2 Matrix will serve as the benchmark for bringing the E2 Initiative into being. This illustrative tool shows how we added "environmental impact"—the assessment of a product's impact through lifecycle assessment (LCA), including end-use—to the set of confirmation items used in product development. In all future product development, both "environmental impact" and "economic performance" will be prerequisites, meaning that no products with a large environmental impact will be permitted even if it has great economic potential. In this way we will seek to expand our line of environmentally friendly products and instill the virtue of "environmental performance" into our corporate culture.

Environmental Management at JSR = Symbolic Benchmark of the E2 Initiative: The E2 Matrix Environmental Management at JSR

Aggressive Creation: Eco-innovation

Eco-innovation is our initiative aimed at creating new business opportunities by expanding our line of environmentally friendly products and thus providing society with the value of "environmental performance."

Thermal Management Materials

One technology we are currently positioning as an "aggressive creation" area is thermal management materials. Thermal management materials are products that help to reduce energy consumption by controlling (facilitating the effective use of) heat. We are currently undertaking the development of thermal storage materials that maintain constant temperature levels and thermal barrier coating materials that insulate heat.
The thermal storage materials we are developing are paraffin, a type of organic compound, combined with a JSR proprietary polymer. These materials allow for "thermal control," the trapping and release of heat, leading to more efficient use of energy. In addition, thermal insulation paints containing SIFCLEAR—a thermally insulating material developed by JSR—applied to a warehouse roof resulted in a 6-degree reduction in peak temperature in one test. These products make the most of JSR's expertise as the top maker of polymers.

Effect of JSR's "SIFCLEAR™" for thermal insulation plants Effect of JSR's "SIFCLEARTM" for thermal insulation plants

Lithium-ion Capacitor "ULTIMO™"

CO<sub>2</sub>-Monitoring buoy equipped with an LiC (Japan Agency for Marine-Earth Science and Technology)

At an early stage we began to work on the development of lithium ion capacitor (LiC), which is a next-generation power storage device attracting market attention. In 2008, ahead of other companies, JM Energy Corporation of the JSR Group successfully began mass production of the device. ULTIMO™, a lithium ion capacitor developed by JM Energy Corporation, is a next-generation power storage device that features high quality in terms energy density, output, safety, and durability. In the spring of 2011, JM Energy Corporation released onto the market a new version of this device with internal resistance decreased to one third of the previous version. In the autumn of the same year, the company completed expansion of its production capacity in order to meet a wide variety of needs from customers.

Characterized by their high-speed power storage and discharge compared to batteries, as well as by their much larger power storage than conventional electric double layer capacitors, lithium ion capacitors considerably increase storage efficiency for natural energy power generation, such as solar and wind power generation. Moreover, it is expected that these capacitors will be used in various applications required for industrial, construction, and transport machinery, such as energy regeneration, peak current assistance and storage, and backup power supplies, and will thereby contribute to the realization of a low carbon society.

Defense: Energy Management

In our efficiency promotion project, E-100plus, all companies in the JSR Group are deploying advanced energy-conservation technologies to reduce CO2 emissions. Monthly emissions for each division and product are now being quantified to help "visualize" progress, with recognition given to particularly successful divisions and products through a newly created award program. We are also aiming to make CO2 reduction a permanent part of business activities when starting new R&D projects or mass-scale production, for example by including the cost of CO2 emissions in their budgets.
And for newly developed products with energy-saving features, we are trying to combine such products with our "aggressive" strategy by first testing them internally and then marketing only those that demonstrated their effectiveness in reducing emissions.

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CSR Report 2012