CSR

Environment, Health and Safety, and Quality Assurance Management System

We prioritize health, safety and environmental matters in our management of the company as well as strive to reduce our impact on the environment through the reduction of environmental emissions across the entire Nippon Kayaku Group.

The Declaration on Environment, Health and Safety, and Quality

The Nippon Kayaku Group, under the spirit of its CSR philosophy and Responsible Care,*1 has formulated The Declaration on Environment, Health and Safety, and Quality, in order to maintain and enhance its environmental protection, health and safety and quality assurance practices. We are also implementing this declaration using organized activities.

Declaration on Environment, Health and Safety, and Quality

*1Responsible Care: A voluntary initiative under which companies that manufacture or handle chemical substances actively work on ensuring an operation that is aware of the environment, safety and health throughout its entire value-chain; from product development through production, sales, consumption, and disposal of chemical substances. The initiative began in Canada in 1985, and has now spread to encompass activities at companies in over 50 countries around the world.

Message from the Head of Technical Operations Group

The Nippon Kayaku Group has grown on the back of chemical technologies and today it develops and manufactures a truly broad range of products. To satisfy the needs of the market, we harness our long-standing technologies and the latest knowledge each and every day to provide stable supplies of high quality products.

We recognize that safety requires the awareness of individual workers and the continual enhancement of supporting systems. In order to establish a stable operating structure for the generational change of manufacturing workers and the globalization of our production sites, we are focusing a great deal of efforts on education, training and follow up.

Environmental measures such as reducing CO2 emissions, increasing recycling, and lowing waste emissions are necessary not only for regulatory compliance, but also for maintaining the future continuity of our business operations. We are currently working hard to find the best mix, technologically speaking, for our production processes and scale.

Going forward, we will continue constantly enhance quality and carry out Responsible Care activities in order to gain the satisfaction of all stakeholders.

Nippon Kayaku Group Responsible Care Policy Statement for FY2018

The every Nippon Kayaku Group company hereby commits to "Prioritize Safety Above All" in our efforts. And we agreed not only complying with related environmental and safety laws in Japan and Overseas, but also preventing environmental and safety accidents. Furthermore we ensured they can carry out activities together under The Declaration on Environment, Health and Safety, and Quality, with the ultimate goal of realizing the KAYAKU spirit.

In 2018, we will continue with these efforts and continued the following Policy throughout Nippon Kayaku Group.

Nippon Kayaku Group Responsible Care Policy Statement for FY2018

Company-wide System for Managing Environment, Health and Safety, and Quality Assurance

The Nippon Kayaku Group takes part in organized activities at all of its sites and certain Group companies including overseas plants to ensure employees are aware of the environment, health and safety, and quality assurance as well as to maintain and improve quality assurance. These activities revolve around the Environment, Health and Safety, and Quality Assurance Management Committee, which is led by the President of Nippon Kayaku.

Structure of Environment, Health and Safety, and Quality Assurance related Functions throughout the Company

Environment, Health and Safety, and Quality Assurance related Functions throughout the Company

Management Structure at Our Business Sites

Each of our business sites has a committee on the health and safety or the environment, health and safety headed by the head of that particular site. In addition, as a subordinate body, each business site also has a committee for promoting health and safety that consists of members representing each of the site's workplaces. Matters discussed by the Health and Safety Committee or the Environment, Health and Safety Committee are shared with all employees at roundtable meetings organized by the Health and Safety Promotion Committee. Conversely, matters discussed at roundtable meetings and by the Health and Safety Promotion Committee are communicated back to the Health and Safety Committee or the Environment, Health and Safety Committee as employee feedback.

Each business site's quality assurance (management) department leads Quality (Assurance) Committee meetings on a regular basis to check raw materials handled at each business site, examine customer complaints or quality issues concerning products made at that particular site, and deliberate on how to eliminate such complaints and quality issues. The committee also debates quality issues pertaining to new products, modified products and existing products to ensure that quality is constantly improved.

Environment, Health, Safety and Quality Assurance Management System at Our Business Sites

Certification of Environmental Management System

The Nippon Kayaku Group has moved forward with acquiring ISO14001 certification in order to develop, manufacture and provide eco-friendly products. We started acquiring ISO14001 environmental management system certification in 1998. Since then all six of our plants have obtained certification, while other Group companies, including those outside of Japan, are in the process of obtaining this certification.

Quality Assurance Management System Certified Workplaces

Certification of Quality Assurance Management System

The Nippon Kayaku Group has moved forward with acquiring ISO9001 certification in order to provide and develop products and services of superior quality.

We began acquiring ISO9001 quality assurance system certification starting with our plants in 1995 and later expanded this scope to include business divisions, R&D departments, and Group companies outside of Japan.

Our overseas Group companies involved in the auto industry are working on obtaining ISO/TS 16949 certification.

Environment Management System Certified Workplaces

*2ISO / TS16949: An international quality management system standard for the automobile industry that was developed jointly by members of the IATF (International Automotive Task Force) with assistance from ISO.

*3IATF16949: The latest revised version of the international quality management system standard for the automobile industry developed by IATF in 2016 as a replacement to ISO / TS16949.

Kayaku Safety Systems de Mexico, S.A. de C.V.(KSM)
Renewed ISO 9001 and TS 16949 quality management certification for the automotive industry

KSM is a Nippon Kayaku subsidiary established in Mexico in 2007 that manufactures automotive safety components.

KSM initially obtained ISO 9001 certification in 2010. Not long after, however, based on requests from customers, it revamped its quality system, trained employees and underwent screening in order to obtain ISO/TS 16949 certification in 2012.

In September 2013, KSM underwent the Stage 1 screening, followed by Stage 2 in November 2013. Later, KSM completed work on issues pointed out during the screening process and was able to obtain certification in February 2014.

In 2016, three years after obtaining certification, KSM underwent another screening to renew its certification, which it passed successfully. Currently, KSM is beginning preparations aimed at obtaining IATF 16949 certification, which is a new standard for quality management systems that will be introduced in September 2018.

ISO9001-TS16949

ISO9001-TS16949

KSM

GMP Authorization Status

The Takasaki Plant has obtained manufacturing approval under the Ministerial Ordinance on Standards for Manufacturing Control and Quality Control for Drugs and Quasi-drugs (GMP ordinance) and has obtained accreditation from the United States and Europe (EU).

GMP Authorization Status

*4GMP: A Japanese standard issued by the Ministry of Health and Welfare as a ministerial ordinance in 1980. Stipulates production control and compliance standards to ensure supply of high quality pharmaceutical and medical products.

Management of Chemical Substances

With countries around the world moving to tighten the management of chemical substances, we have seen a growing importance in complying with chemical related laws both in Japan and abroad and being able to aptly respond to customer requirements for chemical substances contained in our products.

The Functional Chemicals Group established the Quality Assurance Division  in February 2017 in order to reinforce quality management and the quality assurance system annually. Under this organization, it also established the Quality Assurance Department  and Chemical Management Department  (formerly the Chemical Management Office).

A representative of the Chemical Management Office has been assigned to the Functional Chemicals R&D Laboratories to closely monitor product safety and compliance with legal requirements from the development stage.

From now on in fiscal 2017, we will continue to comply with Europe's REACH*5 and CLP*6, and continue to positively promote the response to the new chemicals legislation and legal reform around the world.

*5Registration, Evaluation, Authorization and Restriction of Chemicals (REACH): An EU regulation for registering, evaluating, approving and restricting chemical substances.

*6Regulation on Classification, Labeling and Packaging of substances and mixtures (CLP): An EU regulation on the classification, labeling and packaging of chemical substances based on GHS.

GHS Compliance

With each country implementing GHS*7, companies are now required to provide SDS*8 compliant with local laws and regulations that are written in the local language. The Functional Chemicals Group has instituted an SDS compilation system (MSDgen) that contains a large database of bilingual documents as well as data on the laws of various countries and data on the properties and toxicity of chemicals. This system enables it to create SDS that are fully compliant with local laws and regulations. The 2013 system update complies with the US version of GHS, which complements its prior compliance with GHS in Japan, Europe and Asia.

The Functional Chemicals Group manages and uses a database of SDS and SDS history to ensure that it always provides the most up to date information on GHS compliance.

*7GHS: Globally Harmonized System of Classification and Labeling of Chemicals

*8SDS: Safety Data Sheet.

Sample GHS-compliant label

Sample GHS-compliant label

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