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 Evaluation by Outside Organization

Social Issues Attributable to JSR Group's Corporate Activity Other Environmental Impact Reduction Efforts

1. Protection of the Atmospheric Environment

(1) Boiler Emissions Countermeasures

At the Yokkaichi Plant, which generates its own power, we installed flue gas desulfurization Equipment to reduce emissions of sulfur oxides (SOx). We also substantially cut emissions of nitrogen oxides (NOx) by installing burners with low NOx emissions and denitrification equipment. In FY2013, the fuel conversion (from heavy oil to public utility gas) change implemented at the Kashima Plant (Kashima Joint Power Generator) resulted in a reduction of both SOx and NOx emissions, an achievement that was maintained in FY2017.
JSR will continue to adopt the best emissions reduction technologies, and will continue to make improvements.

SOx Emissions

JSR
SOx Emissions (JSR)
Domestic Group Companies
SOx Emissions (Domestic Group Companies)

NOx Emissions

JSR
NOx Emissions (JSR)
Domestic Group Companies
NOx Emissions (Domestic Group Companies)

(2) Initiatives for the Reduction of VOCs*1 Emissions into the Atmosphere

Having set a high voluntary goal for the reduction of emissions of volatile organic compounds (VOCs) by 75% from FY2000 levels, JSR undertook large-scale investment between FY2006 and FY2009 to install five dried-synthetic rubber waste incinerators in three plants. We also carried out meticulous maintenance and management activities, including enhancing the airtightness of release points, improving the working method by adopting a closed system for chemical sampling and preventing leakage from bulbs. As a result, our VOCs emissions in FY2017 were 912 tons (78% reduction as compared to FY2000), in so doing, we reached our internal target. As we ramp up our production volume, we will maintain the level of the current voluntary goal (75% reduction from FY2000) without large-scale investment by ensuring the proper operation of dried-synthetic rubber waste incinerators and finely tuned maintenance and management.

*1 VOCs = Volatile Organic Compounds.

Reference: VOCs reduction targets

  • 1) Air Pollution Control Act (enforced in April 2006): To achieve a 30% reduction in the amount of VOCs released into the atmosphere from the FY2000 level by FY2010 with the effective application of laws and regulations, along with operators' independent activities.
  • 2) Japan Chemical Industry Association: To prevent any further negative impact over FY2010 levels by FY2015.

VOCs Emissions

JSR

(Includes Techno Polymer Co., Ltd., Kraton JSR Elastomers K.K., and Japan Butyl Co., Ltd. Kashima Plant)

VOCs Emissions

*Techno Polymer Co., Ltd. merged with UMG ABS, Ltd. and became Techno-UMG Co., Ltd. on April 1, 2018.

(3) Measurement of Ozone-Depleting Substances

As part of compliance with the Act on Rational Use and Proper Management of Fluorocarbons established in April of 2015, all businesses that use designated products, including industrial air conditioners, refrigerators, and freezers, must perform basic inspections, periodic maintenance, and create inspection records. A total annual leakage of 1,000 tons or more of CO2 must be reported to the acting minister.
For this reason, JSR has created management standards for devices that use freon and is continuing a policy that such devices be managed in accordance with these standards. The amount of freon leakage in FY2017 was 632 tons of CO2.
We will continue to appropriately manage these substances in accordance with the act and tie this effort to reduced leakage.

2. PRTR Support

(1) PRTR*2 Activities

Based on the Act on Confirmation, etc. of Release Amounts of Specific Chemical Substances in the Environment and Promotion of Improvements to the Management Thereof, JSR aggregates the amount of designated chemical substances emitted into the environment (atmosphere, water and soil), transferred by manufacturing, or used in the previous year, and notifies the government of Japan of the results. We have systematically implemented a range of measures primarily for substances that are emitted in significant amounts and have a great impact on the environment. Such measures include enhancing the airtightness of substance release sources, rendering substances harmless by incineration, and improving manufacturing processes. In FY2017, as a result of taking such measures, we reduced emissions of the substances designated by the PRTR (290 tons) by 89% from the FY1995 level.

*2 Pollutant Release and Transfer Registers (PRTR): A system for registering the emission and transport of environmental pollutants

Amounts of Pollutants Emitted and Transferred in FY2017 (tons/year)

(Including Techno Polymer Co., Ltd.,* KRATON JSR ELASTOMERS K.K. Japan Butyl Co., Ltd. Kashima Plant)

Amounts of Pollutants Emitted and Transferred in FY2017

Amounts of Atmospheric Emissions of PRTR Applicable Substances

Amounts of Atmospheric Emissions of PRTR Applicable Substances

* Techno Polymer Co., Ltd. merged with UMG ABS, Ltd. and became Techno-UMG Co., Ltd. on April 1, 2018.

FY2017 Emissions of Main Chemical Substances (PRTR)

Ordinance designated number Substance Name Amounts handled*3
(t)
Emissions Transfer Amount*4
(t)
Air (t) Water (t) Soil (t)
9 Acrylonitrile 43,014.9 7.8 0.0 0.0 7.9
186 Dichloromethane (also called methylene chloride) 11.4 1.8 0.0 0.0 7.2
240 Styrene 127,075.1 20.4 0.0 0.0 8.7
300 Toluene 2,993.1 63.2 0.2 0.0 247.4
351 1,3-Butadiene 582,081.5 9.7 0.0 0.0 0.9
392 n-Hexane 1,199.2 181.5 0.0 0.0 82.3
 
243 Dioxins*5 0.1478 0.0020 0.0000 0.0000

(See ESG Data for details on other chemical substances)

*3 The handling amount represents the value after base deduction (1 ton/year per place of business)

*4 The transfer amount is the amount committed to intermediate waste service companies plus the amount transferred to public sewers

*5 Dioxin category unit: mg-TEQ

3. Asbestos Measures

In accordance with the Ordinance on Prevention of Hazards due to Asbestos, JSR has conducted checks at all of its facilities (office, manufacturing, R&D and employee amenity areas), including those of all Group companies, where asbestos containing materials have been sprayed. Subsequently, at locations in plants where asbestos was found, we completed removal and enclosure projects in FY2006. In addition, we are investigating the replacement of asbestos containing gaskets with non-asbestos containing types and are progressively carrying out replacements when the safety of their use in production has been confirmed.
We will continue to act properly to prevent workers engaged in building demolition work from acquiring health problems caused by asbestos exposure in accordance with air pollution prevention laws and asbestos disability prevention regulations.
In order to accommodate requests from the Labour Standards Bureau of the Ministry of Health, Labour and Welfare to thoroughly inform our employees of various systems, including the issuance of the asbestos-related health care handbook and the provision of special benefits as industrial workers' compensation for bereaved families, we introduced the relevant leaflet released by the Ministry of Health, Labour and Welfare on our website.

4. PCB Management

JSR stores and manages PCB waste in an appropriate manner in accordance with the "Act on Special Measures concerning Promotion of Proper Treatment of PCB Wastes" and subsequently carries out detoxication treatment in accordance with the law.

Electrical devices Number of devices Oil containing PCB (liter)
Devices in storage (not in use) 6 10,166
Devices in operation 0 0
Total 6 10,166
Current treatment status
(%)
302
(98.1)
174,767
(94.5)

As of March 31, 2018

5. Improving the Local Environment

JSR values the opinions of people living near its manufacturing and research bases, and considers high transparency of plant operations to be the key to improving the local environment. With this in mind, we have strived to improve the local environment by implementing monitoring and tours of environmental equipment at regular intervals. In FY2006 and FY2007, we installed equipment to incinerate dry synthetic rubber dry exhaust (RTO*6) at the Yokkaichi, Kashima, and Chiba plants to prevent foul odors. In FY2008, a ground flare was installed at the Yokkaichi Plant to prevent noise and flashes. As a result, there have been no environmental complaints from FY2008 to FY2017.
We will continue striving to maintain our basic policy of improving the local environment.

*6 RTO (Regenerative Thermal Oxidizer): A device that combusts breaks down VOCs into water and CO2 to make emissions clear

Dried-synthetic rubber waste incinerator (Kashima Plant)

Dried-synthetic rubber waste incinerator
(Kashima Plant)

Ground flare (Yokkaichi Plant)

Ground flare
(Yokkaichi Plant)

Number of Environmental Complaints (JSR and Domestic Group Companies)

FY201220132014201520162017
No. of environmental complaintsOdor000000
Noise000000
Vibration000000
Other000000

6. Biodiversity Conservation

(1) Philosophy

JSR Group has formed biodiversity policies based on issues identified through conservation activities conducted in the past. We are currently promoting various activities in accordance with these policies.

(2) JSR Group Biodiversity Policies

To contribute to the establishment of a sustainable society, JSR Group strives to identify how our business activities depend on and impact biodiversity, and to promote efforts in consideration of biodiversity.

  • 1) We prioritize biodiversity conservation in procuring naturally derived raw and processed materials.
  • 2) We work to make the green spaces of our business establishments biodiversity-friendly.
  • 3) We strive to develop biodiversity-friendly products.
  • 4) We emphasize staff engagement and cooperation with local communities.

Policy Formulation Process

Utilizing the JBIB*7 Business and Biodiversity Interrelationship Map, we have clarified how our business activities depend on and impact biodiversity. We have since established JSR Group Biodiversity Policies on the basis of this clarification.

*7 JBIB = Japan Business Initiative for Biodiversity.

(3) Activity Progress Status

Policy 1 - We prioritize biodiversity conservation in procuring naturally derived raw and processed materials.

1) Investigation to clarify the naturally derived raw materials that may have an impact on biodiversity.

We discovered that there were no items among main raw materials, but there were some such items in some auxiliary raw materials. We conducted an investigation to determine the impact of these materials. We found no impact at this time. We will continue to conduct similar investigations when using raw materials that may have an impact.

2) Sustainable Paper Usage

CSPUWhile not a main raw material, paper is used for copies, publications, envelopes, and packaging material. As such, JSR Group is working toward sustainable paper use and has participated in the Consortium for Sustainable Paper Use, which was established to increase the use of sustainable paper in society, since its establishment in 2013.
We promote activities throughout the Group that prioritize the procurement of company envelopes, copy paper, and other materials made primarily from used paper, or paper with FSC or other forest sustainability certifications in accordance with the JSR Group Paper Procurement Guidelines, which were established in FY2013 to promote forest sustainability.
In FY2018, we announced our support for "Find the Mark and Protect Our Forests: FSC Forest Week 2018," an FSC Japan-sponsored campaign intended to raise awareness of FSC, and are assisting efforts to spread the FSC mark. The campaign aims to raise public awareness of FSC based on this concept: "Everyday purchases can help conserve forests. Find the FSC mark and protect our forests." Click on the link below to find out more about this campaign.
https://forestweek.net

Policy 2 - We work to make the green spaces of our business establishments biodiversity-friendly.

By FY2014, we were able to improve green spaces at our 3 domestic plants and the Tsukuba Research Laboratories based on the Green Space Improvement Plan that we created with the cooperation of experts as well as using the results of a green space survey conducted in accordance with the JBIB Guidelines for Sustainable Business Sites. Each office is continuing to conduct similar activities independently.

Yokkaichi Plant
Overview of Activities
  • Green space developed based on the 5-year plan to improve conservation of biodiversity at plant sites (FY2013-FY2017)
  • Maintaining a green space around company housing with an eye to protecting biodiversity
FY2017 Activities
  • Installation of 15 signs that help people walking on paths in the green space learn about the plants and animals living there
  • Upgrade of piles around undeveloped areas to allow before-and-after comparison of the plant's green space
Future Activity Plans
  • Active use of the plant's green landscape as a place for communication and environmental education
  • Holding of biodiversity-themed events for employees and their families
  • Maintenance and management of improved green spaces at the plant site and company housing
A sign explaining the plants and animals living in a green space

A sign explaining the plants and animals living in a green space

Chiba Plant
Overview of Activities
  • Green space was developed with regard to biodiversity at the entrance of the "Ikoi no Hiroba" (Relaxation Garden) that is part of the green space at the plant site. This space serves to make local residents as well as employees and their families more aware of biodiversity.
FY2017 Activities
  • Holding of family events using wood from "Ikoi no Hiroba" on the plant's grounds
Future Activity Plans
  • Holding of annual family events
  • Study of additional uses of Ikoi no Hiroba
Kashima Plant
Overview of Activities
  • Green space at the plant site was used to build a pond that recreates the local ecosystem. This space serves to make local residents as well as employees and their families more aware of biodiversity.
FY2017 Activities
  • Implementation of biological monitoring surveys on the plant's grounds (autumn and spring)
  • Additional planting of fruit trees (mikan, lemon, persimmon, yuzu)
  • Additional installation of birdhouses
  • Eradication of invasive plants (lance-leaved coreopsis)
Future Activity Plans
  • Planning to strengthen development of green spaces
A biological monitory survey

A biological monitory survey

Tsukuba Research Laboratories
Overview of Activities
  • Establishment of a biodiversity promotion area and wildlife-friendly green-space management
FY2017 Activities
  • Curtailed use of chemical substances (herbicides) within the area
  • Effective use of materials originating in the area
    • - Development of walking paths using chipped tree cuttings
    • - Creation of compost and soil from fallen leaves
  • Periodic monitoring and removal of nonnative species
Future Activity Plans
  • Continuation of existing activities

Photos
The photos show the area before activities began (June 2012) and now (June 2017).
Although the soil was exposed and almost entirely covered with moss in 2012, better diversity can now be seen as the result of five years of activity. (Undergrowth has filled in and soil is being created by fallen leaves.)

* A walking path created with tree cuttings and a beetle habitat made with dead branches can be seen in the 2017 photo.

Start of activities (June 2012)

Start of activities (June 2012)

Now (as of June 2017)

Now (as of June 2017)

Policy 3 - We strive to develop biodiversity-friendly products.

We are incorporating and promoting environmentally friendly product standards.

Policy 4 - We emphasize staff engagement and cooperation with local communities.

We hold various events at our offices as part of our business activities.

7. Environmental Accounting

  • Policy

    JSR introduced environmental accounting in FY1999 with the following two objectives

    1. To strive to quantify the amount of resources invested into the environment and implement sound measures for the environment.
    2. To publish environmental accounting and increase corporate transparency.
  • Scope

    JSR Corporation - JSR Head Office, Yokkaichi Plant, Chiba Plant, Kashima Plant and Research Laboratories

  • Target Period

    April 1, 2017 - March 31, 2018

  • Underlying Assumptions regarding Aggregation and Calculation

    1. Calculations are performed in accordance with the Environmental Accounting Guidelines, 2005 edition (Ministry of the Environment) and environmental guidelines used in the chemical industry (issued by the Japan Chemical Industry Association and the Japan Responsible Care Council).
    2. While the calculation of costs was based mainly on actual results, the calculation of some expenses was based on underlying assumptions.
    3. Economic effects were substantial and did not include conversions of risk aversion effects or deemed effects into monetary amounts.

    * Units of one million yen

    * Abbreviations - YP: Yokkaichi Plant, KP: Kashima Plant, CP: Chiba Plant

(1) Environmental Protection Costs

(Unit: one million yen)
Classification Content of main activities
Figures in parentheses express millions of yen.
Investment Expense
FY2016 FY2017 FY2016 FY2017
(1) Business area costs)   291 584 4,228 4,017
Breakdown (1)-1
Pollution prevention costs
Investments: Air pollution, water pollution, odor countermeasures, etc. (YP: wastewater facilities measures: 157; etc.)
Expenses: Air pollution prevention maintenance and management (586), etc.
197 346 1,773 1,577
(1) -2
Global environmental protection costs
Investments: Self-generation of power, etc. (YP: Upgrade of ancillary equipment for boilers (58), etc.)
Expenses: Self generation of power maintenance (798), etc.
45 75 866 890
(1) -3
Resource circulation costs
Investments: Upgrade of industrial waste processing facilities, establishment of recycle centers, etc.)
Expenses: industrial waste recycling, etc.
49 164 1,589 1,550

(2) Upstream/downstream costs

  0 0 0 0

(3) Management activity costs

Expenses: Environmental impact monitoring, ISO 14001 maintenance and operation, etc. 4 15 523 485

(4) Research and development costs

Expenses: Development of environmentally friendly products, tests for legal applications, etc. 0 0 1,380 1,384

(5) Social activity costs

Expenses: Donations to environmental protection organizations, support for ICETT, etc. 0 0 41 41

(6) Environmental pollution response costs

  0 0 0 0
Total 295 599 6,172 5,927

(2) Environmental Protection Effects

Effect Index Unit FY2016 FY2017 Difference*8 Related information
Environmental effects related to resources used in business activities Total energy consumption (crude oil equivalent) kL 267,500 266,300 -1,200 For more information
Use of resources designated under PRTR Act tons 880,814 903,081 22,267 For more information
Water consumption 1,000m3 14,400 14,200 −200 For more information
Environmental protection effects related to environmental impact and waste emitted from business activities CO2 emissions tons 657,400 652,800 -4,600 For more information
SOx emissions tons 5 5 0 For more information
NOx emissions tons 305 335 30 For more information
PRTR substance emissions tons 276 292 16 For more information
Total amount of waste water 1,000m3 12,161 12,108 -53 For more information
Chemical Oxygen Demand emissions tons 459 457 -2 For more information
Total nitrogen emissions tons 139 156 17 For more information
Total phosphorus emissions tons 0.7 0.7 0 For more information
Waste materials from plants tons 24,394 23,116 -1,278 For more information
Off-site recycling tons 23,977 22,445 -1,532 For more information
Reduced volume of waste treated off-site tons 417 670 253 For more information
Waste materials from plants disposed of by landfill tons 0 0 0 For more information
PRTR materials transported tons 342 536 194 For more information
Other environmental effects Products transported million ton-kilometer 562 534 -28 For more information
During transport CO2 emissions tons 25,495 24,437 -1,058 For more information
Number of environmental complaints (Odor, noise, and vibration) cases 0 0 0 For more information

*8 Improvement from previous years has not been corrected in terms of the production volume.

(3) Economical Effects of Environmental Protection Measures -Substantial Effect-

(Unit: million yen)
Effect (for one year) Benefit
FY2016 FY2017
Cost reduction By saving energy 64 185
By saving resources 130 51
By treating waste on-site 588 397
Total 782 633

(4) Consolidated Accounting

(Unit: one million yen)
Investments Expense Benefit
FY2016 FY2017 FY2016 FY2017 FY2016 FY2017
JSR 295 599 6,172 5,927 782 633
Group companies 102 157 2,216 2,112 428 399
Total* 397 756 8,388 8,040 1,210 1,032

*Total of JSR Corporation and 13 JSR Group companies

(5) Development of New Environmental Protection Technologies

Amount of Capital Investment

1) Amount of Capital Investment

JSR makes continuous investments in the environment and safety. Investments made in FY2017 reached 8.4 billion yen. This consisted of plant and facility investment aimed at various environmental improvements such as energy-saving equipment, and safety improvements such as workplace accident prevention. JSR will continue to make ambitious investments to maintain and improve the environmental, safety, and health aspects of operations in accordance with its medium-term capital investment plan.

2) Main Areas of Environmental & Safety Capital Investment (Year in parentheses represents the investment year)

  • Full-scale anti-seismic measures for facilities (FY1995-)
  • Sludge dryer system (FY2012)
  • Installation of safety equipment to eliminate industrial accidents (FY2014-)

3) Development of New Environmental Protection Technologies

Led by its Process Development Center, JSR is actively engaged in the development of new technologies to promote environmental protection. The following are recent themes in technological development approached by JSR. We deploy technologies as they are developed.

4) Main Areas of Environmental & Safety Technology Development

  • (1) Development of Energy-Saving Processes
    • Computer-assisted optimization of heat recovery (pinch technology)
    • Computer-assisted optimization of energy use in control systems
    • Energy-saving through changes in heat recovery and solvent types across multiple plants
  • (2) Other Technologies to Reduce Environmental Impact
    • Development of solution polymerization manufacturing facilities and a new solvent recovery process (to reduce hydrocarbon emissions into the atmosphere)
    • Development of synthetic rubber manufacturing facilities and dry exhaust systems (to reduce odors near plants and hydrocarbon emissions into the atmosphere)
    • Development of polymerization technologies to combat total nitrogen emissions (measures to prevent eutrophication of ocean waters)
    • Development of environmental technology through more effective use of microbes (to reduce odors near plants and to improve the quality of wastewater)
    • Incineration technology for dry synthetic rubber dry exhaust (measures for harmful atmospheric pollutants)
    • Installation of a sludge dryer system (to reduce CO2 emissions and promote effective utilization of waste)

8. Maintenance Management Information Regarding Waste Treatment Facilities, By-Product Reduction Plan

* Only Japanese version available.

(1) Maintenance Management Information regarding Waste Treatment Facilities (Yokkaichi Plant)

1) Maintenance Management Information

2) Periodic Inspection Notifications

  • Incinerator #1 (primary reactor) Industrial Waste (PDF 272KB)
  • Incinerator #2 (Fluidized bed incinerator #1) Industrial Waste (PDF 260KB)
  • Incinerator #4 (Fluidized bed incinerator #2) Industrial Waste (PDF 259KB)
  • General Waste (PDF 263KB)

3) Licensing

  • Industrial Waste Disposal Permits (PDF 453KB)
  • Special Control Industrial Waste Disposal Permits (PDF 422KB)
  • Specific Waste Treatment Facilities License (PDF 911KB)

(2) By-product Reduction Plan Based on Laws Promoting the Effective Use of Resources

  • By-product Reduction Plan Based on Laws Promoting the Effective Use of Resources (PDF 128.9KB)