Management of Chemical Substances

Policy and Basic Approach

The Nippon Kayaku Group, in line with the GFC (Global Framework on Chemicals) international chemical substances management framework, is aiming to minimize the health effects on humans involved in the production and usage of chemical substances, and any negative environmental impacts. Living conveniently and abundantly while using chemical substances requires that we know the properties of each substance and manage them properly. The management and reduction of environmentally hazardous substances which give rise to concerns over human health and environmental impact is an especially important social responsibility for chemical manufacturers. As such, we are organizationally and systematically engaged in the reduction of hazardous chemical emissions through production process improvements and thorough value-chain-wide management of goods containing hazardous chemicals. Furthermore, to prevent industrial accidents caused while handling chemical substances, we are voluntarily advancing our oversight and safety management procedures through taking, for example, hazardous substance exposure prevention measures based on the strengthened risk management approaches of the revised Industrial Safety and Health Act.

Systems

Under our sustainable management system, Nippon Kayaku has set up an Environment, Safety, Quality Management Committee to promote groupwide Responsible Care activities.

With respect to business activities, each business unit, under the direction of its relevant person in charge, draws up its own chemical substance management-related key issues and specific action plans in order to manage chemical substances appropriately.

Audit

With our Responsible Care and Technology Division at the core of the initiative, Nippon Kayaku conducts audits of chemical substance management at each business site and certain group companies. These audits not only serve to confirm management systems and operation status, but also compliance status with respect to laws pertaining to chemical substance manufacture, importing and sales. We conduct inspections of reporting status for new chemical substances and feed these into improvements in the management levels at each business site. Matters of concern extracted from such audits are met with correction and corrective action, as appropriate and follow-up checks as we strive for continual improvement.

Initiatives

With a view to achieving zero accidents or disasters, Nippon Kayaku has set as one of its annual Responsible Care Targets the promotion of voluntary chemical substance management. To forestall the risks originating from chemical substances, we are mapping out upgrades to our risk assessment process and building a more detailed and effective evaluation system. We are also delivering boosts to site-level management systems and preparing systems which allow for every worker to voluntarily show awareness of, and properly manage, chemical substances. Such initiatives enable us to plan for early detection of latent risk factors and thorough appropriate measures as we aim to strengthen the platform for safe and sustainable business operations.

The flow from Chemical Substance Management to Product Development

Fine Chemicals Business Unit

Under internal regulations do we confirm the presence of prohibited or restricted chemical substances within each process from product development through to manufacture, sale and change. We designate the chemical substances to be either managed or prohibited internally, and in cases of newly-used chemical substances, conduct relevant checks at the selection stage. Meanwhile, changes to raw material or manufacturing laws, expansions in use, reassessments of laws and standards, and the emergence of new scientific observations lead us to conduct our own appropriate use reevaluations. Furthermore, in order to prevent prohibited or managed chemical substances being unintentionally mixed in during the transition from raw material to product, we conduct investigations into our raw material suppliers. Based on these investigation results do we formulate appropriate management and measures in the quest for product and worker safety, and environmental conservation.

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Development stage Main evaluation contents
R&D
  • Giving shape to product concepts based on customer needs and market surveys
  • Setting of targets for product quality and performance; evaluation of technical feasibility
  • Investigation and confirmation of related domestic and international laws and regulations, patents and environmental safety matters
  • The safety of raw materials used, possibilities for stable procurement, and initial cost evaluations
Exploration of mass production and production volumes
  • Establishment of product specification verification and the manufacturing process
  • Confirmation of suitability through customer evaluations
  • Confirmation and risk assessment of raw material and product quality, cost, and productivity through exploration of mass production and production quantities
  • Confirmation and evaluation of risks across the supply chain from raw materials procurement to provision to customers
Launch to market
  • Final confirmation of the final product specification and items agreed with customers
  • Confirmation of each preparation status for manufacturing, quality assurance, environmental safety and distribution
  • Final evaluation of definitive costs and profitability
  • Final confirmation of compatibility with related laws and regulations
Change control
  • Quality and supply impact assessment of all changes across the product lifecycle (equipment, machinery, manufacturing method, raw materials, testing methods, product specification)
  • Planning, implementation and documented information on changes in line with the agreed process, including verification and validation, as applicable
  • Prior customer contact and approval when the situation demands

Risk Management

Risk Management-based Anti-Exposure Measures

At Nippon Kayaku, when introducing new operations and equipment, or making changes to existing operations or equipment, we initially conduct a risk evaluation via safety inspection and construct safety policies around the ensuing results. We also evaluate the safety of each chemical manufacturing process and response equipment to analyze the causes of hazards. By way of measures to reduce risks in the manufacture and handling of chemical substances, and against the backdrop of the revised Industrial Safety and Health Act of 2016 which mandated risk assessments for workplaces either making or handling chemical substances, we have, through the conducting of safety inspections with respect to either new or altered operations that involve the handling of substances covered by the Act and other hazardous substances, constructed our own internal database on which to base our risk management and risk reduction measures. This database has been updated to include the expanded list of chemical substances subjected to risk management in the revised Industrial Health and Safety Act from 2024 onwards, enabling us to conduct risk management in line with the most current laws, promote it companywide, and centralize oversight. We have also put up GHS picture displays in each chemical-substance-handling workplace so that handlers can recognize the harmful effects of the substances to which they might be exposed.

We are raising awareness among workers of the harmful effects of the chemical substances to which they might be exposed.
We are raising awareness among workers of the harmful effects of the chemical substances to which they might be exposed.

Safety in Distribution

The Nippon Kayaku Group is engaged in initiatives to reduce environmental burdens connected to distribution and ensure safety during transportation. As the products we handle contain numerous hazardous materials, we forever place meticulous care on safety during transportation. We therefore carry out periodical drills on distribution accident scenarios, and are strengthening our management system for prevention of leakage and spillage of chemical substances. Our Agrochemicals Group, for example, with the aim of improving safe transportation of its chloropicrin soil fumigant, holds collective annual drills on Distribution Accident Emergency Response and Reporting at all three domestic chloropicrin manufacturers. The drills involve practical application of the chain of processes from the establishment of a Disaster Response HQ to transmission of information and requests for support. All participants join with a degree of healthy tension as we seek to prepare a speedy and precise response to real emergencies.

Reducing Chemicals of Concern

Reducing Emissions of Chemicals of Concern during the Manufacturing Process

So as to reduce emissions of chemical substances that must be registered under Japan’s Act on the Assessment of Releases of Specified Chemical Substances in the Environment and the Promotion of Management Improvement (PRTR Act), Nippon Kayaku is moving forward with the installation of exhaust gas treatment apparatus and the switching of raw materials. Our calculations for emission amounts of the chemical substances to be reported under the PRTR Act are as follows.

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Indicators Scope Unit 2021 2022 2023 2024*2 2025
PRTR substance emission amounts Air non-consolidated tons 25.2 38.7 32.9 27.2 18.5
Water regions non-consolidated tons 14.7 51.4 75.0 1.6 1.76
Soil non-consolidated tons 0 0 0 0 0
Total*1 non-consolidated tons 39.9 90.1 107.9 28.8 20.3
  • *1As figures have been rounded off, the totals in some columns do not exactly match the sum of each item above.
  • *2Since FY2024, only PRTR substances have been published(FY2023 revisions to the law saw changes to the list of substances, with Japan Chemical Industry Association Survey substances excluded)

Initiatives to Reduce, Replace and Eradicate Chemicals of Concern from Products

In order to appropriately respond to accelerating efforts to strengthen regulations across the globe, we are currently operating our own self-designed management structure based on the legislation and international standards relating to each business unit. By striving to reduce Chemicals of Concern in both raw materials and parts all the way from the product design stage, we are making every effort to minimize the risks to people and the environment.

Mobility & Imaging Business Unit

In its efforts to clarify the chemicals whose inclusion in products is banned, or whose presence should at least be grasped, our Safety Systems Group refers to the GADSL* when seeking to strictly manage or reduce the use of Chemicals of Concern in the development, design, procurement, production and distribution phases of the product life cycle. The GADSL* represents the industrial-standard Chemicals of Concern List for leading car makers, parts makers and chemical manufacturers in Japan, the US and Europe, with chemicals categorized as: “Prohibited,” “Prohibited depending on use or declarable,” and “Declarable based on usage exceeding a given threshold.”

  • *Global Automotive Declarable Substance List
Fine Chemicals Business Unit

Our Fine Chemicals Business Unit defines as “environmentally hazardous substances” those that appear in “Company Regulations for the Management of Chemical Substances in Products” and the “List of Environmentally Hazardous Substances” as threats to the environment and human health, and whose presence in our own products must be carefully managed. Based on the above, we apply proper handling methods to chemicals contained in each business unit’s products at every stage of the life cycle: design, development, purchasing, manufacturing, and shipping. The List of Environmentally Hazardous Substances is based on, and appropriately updated according to, domestic and international regulations such as REACH Annex XVII (Restricted Substances), REACH SVHC(Candidate List of Substances of Very High Concern), the RoHS Restricted Substances List, and Japan’s “Chemical Substances Control Law: Class 1 Specified Chemicals”. It proves of considerable help when gathering information on chemical substances present throughout our supply chain. This business unit, without exception, takes action to reduce, replace or eliminate Chemicals of Concern from its products as specified in Management of Chemical Substances in Products regulations.

Respecting Legislation and Presentation of Information

Responses to Laws and the Various Standards

We comply with laws and regulations governing the assessment and manufacture of chemical substances in Japan and other countries and regions, including the EU, the United Kingdom, the United States, China, South Korea, and Taiwan.

The Domestic and International Registration Laws, Regulations and Systems to which we Responded in FY2025

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Country/Region Chemical Substance Management Law / Regulation
Japan CSCL (Chemical Substances Control Law) and ISHA (Industrial Safety and Health Act)
European Union (EU) EU-REACH (Registration, Evaluation, Authorization and Restriction of Chemicals)
United Kingdom (UK) UK-REACH (UK Registration, Evaluation, Authorization and Restriction of Chemicals)
United States TSCA (Toxic Substances Control Act)
China MEE Order No.12 (Measures for the Environmental Management Registration of New Chemical Substances)
South Korea K-REACH (Act on the Registration and Evaluation of Chemicals)
Taiwan TCCSCA (Toxic and Concerned Chemical Substances Control Act)
Philippines RA6969 (Toxic Substances and Hazardous and Nuclear Wastes Control Act of 1990)
Australia Industrial Chemicals Act 2019
  • *This table covers the Fine Chemicals Business Unit.

Additionally, international laws and regulations pertaining to chemical substances are increasingly moving away from the erstwhile focus on substance toxicity itself and towards a combination of toxicity and exposure amounts. Furthermore, whereas individual countries’ chemical substance registration systems have previously tended to target new chemical substances, they now require appropriate evaluation and management of the toxicity and environmental impacts of existing chemical substances too. Presently, the EU’s REACH Regulation,※1 the UK’s UK-REACH Regulation, South Korea’s K-Reach Chemical Assessment Law※2, Taiwan’s Toxic and Concerned Chemical Substances Control Act all require the registration of both new and existing chemical substances. They also necessitate the gathering and management of all necessary information pertaining to manufacturing and imported amounts, applications, use methods and the supply chain. So as to respond to these added complications and upgrades to chemical substance management, our Fine Chemicals Business Unit has set up a Chemical Substance Management Section in its Quality Assurance Division which: responds to domestic and international chemical substance registration systems; grasps the trends and movements in each country’s chemical legislation and regulations, makes policy suggestions, and accordingly informs and instructs relevant managers; and both unifies and supports product SDS and label management.

  • *1REACH Regulations: EU regulations on Registration, Evaluation, Authorization and Restriction of Chemicals
  • *2Act on the Regulation of Manufacture and Evaluation of Chemical Substances: The law on chemical substance registration and evaluation

Conveyance of Information on Product Hazards via SDS and Labels

Whilst the GHS*1 may serve as the international standard for chemical substance classifications and labeling, the systems and standards for Safety Data Sheets (SDS) and labels differ from country to country. In addition, so that hazard information can be clearly conveyed to handlers of chemical substances, the relevant information is required to be submitted in each relevant country’s language.

Fine Chemicals Business Unit

Fine Chemicals Business Unit, through reliance on an abundance of translation skills, information pertaining to each country’s laws and regulations, and its system for creating SDS with information on physical and hazardous properties, is responding to the demands for SDSs and labels which correspond to the latest laws and standards of each country. In response to ongoing revisions of Japan’s Industrial Safety and Health Act and Japanese Industrial Standards, the EU’s CLP regulations*2 and the USA’s HCS*3, we are working towards stable operation of a system which allows for SDSs and labels to be updated efficiently and accurately. So that everyone may use our products safely and securely, we supply all our customers and relevant individuals with SDSs specifying the chemicals used in every single product, and convey all key information along our supply chain. Furthermore, you may use our enquiry form to demand an SDS whenever you desire.

Life Science Business Unit

So that its customers can appropriately grasp information pertaining to toxicity of Nippon Kayaku products, our Agrobusiness Group has published an SDS website as it prepares to make such information viewable and downloadable at all times. It has also developed its own Wrapping Specification Management Regulations so that all information displayed on individual product wrapping, labels and external wrapping conforms to relevant laws and is properly managed. It has furthermore strengthened its inspection and approval process for manufacturing and revisions, as well as implemented unified management via a database. The Group is therefore ensuring a system constantly capable of presenting the latest information, including on switchovers at times of revision and inventory management.

  • *1GHS: Globally Harmonized System of Classification and Labelling of Chemicals
  • *2CLP: European regulations for the Classification, Labelling and Packaging of Chemicals
  • *3HCS: Hazard Communication Standard for the USA

Training

We provide education programs at every plant, and for each workforce layer, aimed at improving safety consciousness. We are currently enriching the education contents on chemical laws and regulations, including the so-called “Three SDS Laws”: The Chemical Management Act, The Safety and Health Act, and the Poisonous Substances Act.

Industrial and International Initiatives

The Nippon Kayaku Group belongs to the Japan Chemical Industry Association and has signed up to Long-range Research Initiatives (LRI) since 1999. In addition to shouldering part of the research funding burden, we also sit on the committee.
The LRI proceeds under the umbrella of the Japanese, American and European chemical industries (The Japan Chemical Industry Association, The American Chemistry Council, and the European Chemistry Industry Council). A voluntary activity conducted by the International Council of Chemical Associations (ICCA), it focuses on increasing the accuracy of risk assessments for internal secretion and endocrine disrupting action, neurotoxicity, chemical carcinogenesis and immunotoxicity, and supports long-term research of the effects of chemical substances on the environment and people’s health.

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